Daily capital journal. (Salem, Oregon) 1903-1919, 1919-05-29

naneing our enormous exports to Eu.
rope, which must continue for some
time to come. The conditions Of our
export trade are strikingly abnormal.
The total Of exports for April was
$7l5, 900. 600, an increase OF 500, ,0000.-
600 over the previous high record. 1t
was also $4,000, 900 above the pre-
vious month. Compared with the same
month last year, they were s2l4 ,000,-
600 larger. These figures left an ex-
cess Of exports over imports of S442,-
0oo, ,O00 in April, against 1921, 600 900 4
year ago. For the ten months OF the
fiscal year exports were S5,T05, 600, :
00o an increase Of sSl2,000,000 over
1918. and imports reached only 81
4T4, 100000. an increase Of Sll2,000,-
000 These figures left an excess of ex-
ports for the ten months of S3,23l,-
100000, against 1881 100000 last year
No wonder the exchange market is de-
morahzed. Such abnormal conditions
require unusual precautionary peat
ment. Foreign indebtedness is growing
at a tremendous rate; and If in order
to place Europe upon its feet, further
credits are to be granted, they must
be placed under the control of skilled
banking experts. Fortunately our gov
ernment has shut down upon giving for
eign credits, and applicants are now
coming 10 domestic bankers, who are
better judges than any government Of
fieials. Europe needs and must have
the food and raw materials which we
have TO spare; and the soundest way
of securing payment is to encourage
industrial rehabilitation. so that we
may receive payment in commodities
rather than in instruments of credit,
which only postpone settlement.
Monetary Conditions
Somewhat easier conditions at pres
ent exist in the money market, owing
mainly to favorable banking posi-
tion and relief Of pressure incidental
to floating Of the liberty loan. The
government, however, is by no means
out Of the money market. Federal ex-
penses continue upon an enormous
scale and there is little indication Of
early retrenchment. Heavy taxes and
continuous borrowing in the form of
short term treasury certificates are ex-
pected for another year, at least. This
means heavy demands upon the banks.
To pressure from this quarter must be
added the probability of great indus
trial and business activity. Our crops
win require very unusual sums for
their handling. New enterprises and
urgent foreign borrowing will also have
to be satisfied. When all these unpre-
cedented and extraordinary require
ments are considered, also that price
initiation diminishes banking power, it
will be recognized that easy money Is
not likely to be permanent and that
later on funds viii command good rates
and may be less abundant than now.
A Brilliant Future
DesPite somewhat lessened activity,
stock exchange transactions continue
largely in excess Of million shares
daily. Owing chiefly to unsetthng ru-
mors arising from delay in a peace set
tlement with Germany, the buying
hesitatcd, and more or less
profit taking followed. Liquidation,
however, was confined to few special
ties among the industrial. in which
speculation has been upon a heavy
scale. Oils and shipping issues suffered
the most severely. Whether the reac-
ton has run its course or not, remains
to be seen, and the selling movement