THE DAILY CAPITAL JOURNAL, SALEM, OREGON, SATURDAY. SEPT. 23, 1916.
C
sWmi ST OSX rr(2'V I BOSS'WUSX SWEET SONG OF
mtomatlonal Cartoon Ca., .N. jgr I OsyX- Z?7f
STENOGRAPHERS
Why Not U
Columbia QUALITY Carbons?
Mads in Oregon
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Each Sheet.
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NEW HOUSTON HOTEL
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Rates: BOc, 73c, $1, $1.50 per day
Journal Wunt Ads Get Results.
ft. S. MUST PLAN TO RAISE MORE WHEAT
f.C
f
3f 1915 fiftfcfri "i
S WHEAT VlELD I -wheat yield.' T ,i
! VWPoql P TO
I J, - bu. M 1.50 v . IWfSY
il-- PR,CE,:1 -'tWst
Situation After War Ends
Discussed by Financier
New York, Sept. 10. Tlie f iiuiiiciul. plies of munitions must continue to
markets have presented unmistakable! leave r ports, to such of the belligcr-
vi mm ii iisi-u ilium: interest and ents ns imiii arrmun. r..r t,m.,,.i.i;..
nn .......I. 1 .1. :.. At.- J! I i . .. .. ... .1 lnwu.
in inis way tnere is not Iikclv to be a
The settlement of the railroad freight and be moved along; with per
atrike prevented what would have ishable food products. With the ad
probably been a serious shortage inljustment of the situation, such ap
next year'B wheat crop, with result- j peals were) unnecessary and fertilizer
inR higher prices for Hour and bread, (shipment are now gome; forward in
according; to experts who have com-1 plenty of time for use this fall on the
piled statistics showing wnat wouiu winter wneui crop,
have been the results upon the na
tional food sunnlv if the fall ship.
menu of fertilisers for the winter
In Germany, fertilizers are eiven
preference over all other kinds of
freight with the exception of food
wheat crop had not been possible on products and war munitions for the
account of the strike. soldiers at the front It is because
Already America faces a wheat Ol uermanys attitude toward tne.
hortafreof nearly half a billion bush-1 production of large yields and to
els over last year a production, which ' even greater attention to the use of
has caused prices to soar and which 1 f ertilieers than ever, since the beirin
will probably mean higher prices1 ning of the war, that the Teutons
than ever for wheat and flour before 'have been able to withstand the rig-
next year's crop is harvested. W ith
out fertilisers, next year's yields
would be decreased from eight to ten
bushels per acre on approximately
ten million acres. The estimate is
based upon the finding of the In
diana Experiment Station and other
experiments throughout the country,
where differences of eight bushels
orous blockade and demonstrate that
their country has been able to pro
duce enough food products to make
them self-supporting. As much fer
tilizer is used in Germany as in the
entire United States, with over
seven timed as much land under cultivation.
Census reports issued by the D-
nd over per acre have been found in 1 partment of Commerce show that the
favor of wheat that has been riven i United States in 1914 used 49.8 per
i average application of fertilizer.
Organizations of farmers, granges.
agricultural papers and other agen
cies concerned with the prosperity of
cent more fertilizers than in 1SG9.
Of this amount, more than half was
1...- rrk.. : i
I cunipit'iv it-riuixvrs. auv uicrcaso
eies concerned witn the prosperity or. . me ubb oi lerimzers 10 ins extent oi
the farmers wore preparing to appeal almost tuty per cent in rive years in
to the railroad presidents, the Inter- dicates how American farmers are.
state Commeree Commission ond setting about to increase their yields
President Wilson, to ask that f er- and profit from the high prices being
Jilizerj be considered as preferred paid for farm, product
SIKH"
participation this week both in the di
rect ion of investment nnil speculative
operations. For several weeks there
mis been evidence of a broadening
Tendency, nut the nnmpilinte incentiv
for the period of enthusiasm that has
so distinctly developed seems to have
nceii tile definite result of the Jliiiue
election, mis result in many cpiarters
is interpreted and accepted us a respon
sible forecast of the success in No
vember of the political party identi
fied with the advocacy of n protective
tariff, I'ndor current conditions the
tariff prospects may be expected to ex
orcise an important bearing on the
price level of securities of our great
industrial combinations. Since the war
began there have boon piienoinenul in
creases in our export trade not nlone in
the torm of munitions, but also ot
peace exports to neutral countries that
lormerly were served by one or more
of the present belligerents. All will
concede that when peace is restored
there is to be intense activity display
ed by foreign manufacturers in the di
rection of re establishing themselves in
former markets. This is a development
that increased tariff rates at home can
hardly be expected to chock. Presum
ably our manufacturers, finding their
export business assailed then will en
deavor to conceutrate more freely on
domestic business. They become in this
way more susceptible to tariff protec
tion. In this light the results nt the polls
in Maine last Monday have been ac
cepted quite widely as n favoring mar
ket influence. In addition, industrial
securities have been sustained by evi
dence of a growing belief that recent
interpretations that the war will end
in the near future have been to some
extent modified. Publie officials in
the entente countries are to some extent
responsible for this elinnse since they
have been advising against overconfi
deuce a n probable forerunner of dis
appointment. If it unfortunately should!
prove that tne tact tuat war still is to
claim hundreds of thousands of addi
tional victims it will mean that sup-
sudden termination of the foreign or
ders for American made supplies such
as has been so greatly feared and to
smiie exreiii discounted m stoek ex
change circles.
While not disposed to underrate the
imortaiice of such coneededly adverse
influences as the unrest in labor that
is so nationwide nt the present time,
ami is exemplified by the recent eight
hour railroad legislation and the cur
rent troubles in the local traction field,
largo market interests arc inclined to
base their transactions os developments
of a larger character. There seems roa- since the beginning of May, that it is
, uiuiiiv oi sccuricies wuicii are TO oe
borrowed from their holders by the
British treasury, not purchased outright
is to be used as collateral for loans.
Our own center is the most natural one
to which the British treasury would
turn. Hence, to be successful these is
sues must be made attractive to Ameri
can investors. If the collateral be en
tirely composed of .foreign securities,
the results may hardly be expected to
e as lavorauie as it, as in the ease
with the recent loan, a good siirinkling
or nign grade American investments
be included. Jt seems reasonable to
suppose, therefore, that the British of
ficials will be disposed to continue to
hold a large supply of our securities
for use in the preparation of this class
of mixed collateral. It was on this
basis that the probabilities do not seem
to favor further important sales by for
eign holders of American securities.
(old from the British treasury is
flowing Into New York so actively.
lose to ifWOO.OOO.OOO having arrived
Pale, SaJow Cheeks
!lir.'hiit:te.bk,5Kl Is impoverished and that the stomach Isnnt
pimpics, sanownessordull
Tell the Need Of
prop.
Iways
eyes all
son to believe, for instance, that so
far as direct sales are concerned, the
foreign liunidation of American securi
ties resulting from the war has in a
broad sense been virtually completed.
Floating supplies abroad oE stocks were
freely disposed of during the Balkan
wars. Whatever roiriaiucd of them came
bacK quite freely when the larger war,
which has been so appropriately styled
the war of F.urope, began. After' the
floating supplies had been sold, invest
ment holdings in flreat Britain, which
was the largest foreign holder of our
securities, were first forced out by in
ventions to deposit them with the gov
ernment (on attractive terms) and fin
ally by imposing an arbitrary and
heavy tax on the incomes derived by
holders from such securities as tlie gov
ernment desired should be deposited.
Hence it seems reasonable to believe
that private holdings abroad have in a
difficult to realize the object unless
it be a matter of prudence to have it
here as a safeguard against the aeci
dents of war. Or it may be sent here
tor its ettect upon the domestic money
situation as well as upon the stabiliza
tion of the sterling exchange. Hold is
in such active supply that it is not
needed on any basis of nearlv normal
demands. The 2iO.OOO.OOU represent
ed by the proceeds of the latest British
loan, nave become available and are
so far as their buying power is con
eerned, the equivalent of gold. The
gold, however, will unquestionably as
sure a continuance of easy money con
ditions on this side of the Atlantic
conditions that are especially necessary
to British" finance at the present mo
ment. British short term borrowing
has assumed such large proportions
(there are, for instnnrc, no less than
m)l),0UU,0U0 lbs. m short term treasury
large sense either been sold outright! bills outstanding) that some more per
or deposited with the British and ; manent form of borrowing must sooner
trench governments, for the French or later oe entered upon, such tor
NO HALF HEARTED
Preparedness
will i) If you expect to conquer a
spell of
INDIGESTION
DYSPEPSIA
OB MALARIA
BE WELL PEEPARED TRY
HOSTETTER'S
Stomach Bitters
areasury made similar demands upon its
natioi.ais. There undoubtedly is a
large volume of American securities
still in the custody of the British treas
ury. Tiiese, however, are not likely to
be sold since they have a greater value
if used as collateral for American loans.
The recent 'Jj0,000,000 British loan is
an example in this respect. In that
transaction collateral having a market
value of $300,000,000 was deposited to
secure the $250,000,000 issue, thus pro
viding a margin of 20 per cent. Of the
eollatecal one third or $100,000,000, con
sisted of Americau investment securi
ties, which at once removed that im
portant amount from the probability of
sale within the two year period covered
by the loan. Meanwhile it is under
stood that the loan transaction In ques
tion was merely the first of a series
of similar ones. The British chancel
lor has extended the original mobiliza
tion scheme by applying it to bonds of
neutral Kuropean and South American
countries that are in the possession of
British investors. The total value of
English holdings of the specific secur
ities wnose deposit thus has been in
vi ted is understood to be about $3,
stance as a new long term war loan.
It would not be in keeping with their
skillful financial management of the
war if the English authorities were to
otter such a long term loan on a Lon
don money situation indicated by a 6
per cent Bank of England rate." But
if ratss are lowered the English treas
ury is at once confronted with the fact
that American financial institutions
and individuals who have on deposit in
London at lucrative rates large sums
will, not unnaturally, withdraw these
funds in the event of rates at home
proving equally as attractive. Such a
withdrawal of funds could hardly fail
to iufluence unfavorably the sterling
exchange and create an undesirable sit
uation. Hence if rates in London are
to be lowered the present difference
that exists between London and New
York rates must in some measure be
maintained. In these circumstances the
phenomenal importation of gold that is
taking place would not be as difficult
to understand, especially when it is re
called that under the new federal re
serve banking law banks are obliged
to carry a reserve of only 18 per cent
against deposits, as against - per cent
T5 . .
X tooS, ?"1 Their mild and thorough actioVquickly
ia me swn of blemishes, improve the circulation and help the digestion.
Every woman should know the comfort, and experience the help of
ieechafn's Fills
virtually
formerly
thus making the loaning ability of the
"nuns upon gold as reserve
sixfold against fourfold as
was the case.
Trade and industrial conditions con
nine active. Leading steel authorities
have been quoted in newspaper inter
views as declaring thu situation mmru.
edentedly active and as expectin a full i
continuance of current conditions fori
at least many months to come. Bank I
exchanges bear out these ontimisHn!
.-.iii-uiriiis. ror tne month of
Tints thy CAPSULES
re superior to uium
of Copaiba, Cutxos or
InjtctioM.indN
RELIEFS In (MIBt)
24 HC'JnS the
same dieeaiet with
out Inconvenience.
SofiS by all drufftHttt,
bortunities fnr nlurt niiorn ts-ai Tkaa
in nearly all American center, hiuV;,;:. : !T,'" " aovm ". important fmaa-
ord totals have been established the1 lulcre"s recently nave been heavy
,,i ,i .:. : ,,D" "ea' buyers and are inc ne,l tn minnnrt th
comparing; market
l
I
total tor the entire count ry
"Uil u .cur llgo. SUOWIllL! nil lncrtna..
of 38 per cent, while for the eight
months of the calendar rear 1H1U a gain
of 41 per cent over Iir. is shown and
441... ,,er C011t over lj)U The
general trend of testunnnv i. ,..,;...
ed iu the latest reports of railroad on.
mgs. as compared with the first six i
months of 191S gross earnings of Ainer-j I
nan roads for the first half of lulil in. I
creased no less than ;'.lN,012.000, equiv-II
alent to 23 per cent, while the net "earn-' I
nigs increased lb-li,ir.l,OuO, or 4" per1 1
eeut. Our country unquestioual.lv isjl
passing through a period of inflation I
that seems destined to increno .,k. .T
Mautially before the final check comes. I
The foreign liquidation seems to have! I
neen responsin.e for some measure of'X
me iauure or securities to join fullv
in this admitted inflation. Th
rent wave of enthusiasm suggests op-
HENRY CLEWS.
WAS MAY CAUSE A
REVIVAL OF WAYSIDE
SHRINES IN FRANCE
AND ENGLAND
London, Sept. 23. The war
may cause a revival of way
side shrines and wayside pray
er. Churchmen are clamoring for
road shrines since the Tommies
have taken to praying before
them in France. This has long
been done in Russia, but it is a
custom long dead nmone the
English.
Try the Journal Classified Ads.
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ed. pinaud:s ulac
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7 ,h c?nui" 8 it H wonderful value TnH.
rrtA 9 KNAUD'S LILAC. Aa W
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FABTU3MIE ED. PINAUD. Dcpt M EdTpKAIT) HdfcNewS