Show Business Expansion Threshold Is Reached Says Roger Babson gyp 4 I r-i r 1 L Roger W. W Babson In 1929 he predicted the crash Editors Editor's I notes notes' not On pt September 5 3 1920 1929 nOIr Roger Steger r W. W Babson Bab on predicted the stock tok market crash ra h. h hf which came Arne 48 day e later I Today odar he te tells tells Is how he be slew lewi the he central cen eral business situation In the light of ur current wage Increases dividend declarations declara declara- tion and sharp harp harp advances In Wall street By ROGER W. W BAB BABSON ON Copyright 1936 by Un United ted Press Current headlines flash the news that the country is being swept by bya a a. wave of dividend distributions bonuses and wage Increases increase These extra disburse disbursements are swelling to suc such vast totals that people are are beg beginning beginning be be- g ginning nning to ask ask- as themselves some serious questions Is today's boom In stocks and business jt justified The answer depends wholly upon your viewpoint If you are thinking of the long pull the the the- answer is yes According to fundamental statistics business has has' just returned to normal normal normal nor nor- mal volume Today we are just on on the threshold of a period of business business business busi busi- ness expansion It is even possible that during this period of good times we shall exceed the peak volumes volumes volumes vol vol- umes of ot business activity recorded in 1929 Although the stock market for the long pull should work up to higher levels it has already scored some sharp adv advances nc s. s From now on the advance in stock prices will be bemore bemore bemore more selective With such a sharp spurt in the stock market it is only logical to look for some temporary setback It would not surprise me me meto to see see some recessions before congress convenes in late January Likewise it is possible that there will be some let-downs let in business over the year Holiday trade however should reach record pro pro- portions This good log back-log of Christmas business should tend to bolster business conditions conditions conditions- and sustain sustaIn sus sus- tain the long pull upward trend Another question is on the minds of b business iness men and Investors Are the many wage increases justified by basic business conditions LookIng LookIng Looking Look- Look Ing ahead the sounder policy would be to postpone sweeping w wage ge changes at least until any ny uncertainties uncertainties accompanying an election year have calmed down and the attitude of ot congress can be deter deter- mined Moreover any wage Increases increases increases In in- in- in creases made now should be for those who have nave only time part-time or seasonal work rather than for those who have time full-time employment In upping of wages under present conditions we should look at the annual income of a worker instead of the daily or hourly wage This is a time when both workers and managements should look beyond current flurries Be patient Do not force or overdo the situation Keep in mind the fundamental outlook |