| Show Cost of Living Must BeI Be i Lower Soon With Not So Soi I Much such Wasting Wasting Wasting-Babson Babson r r I special Dj p i BABSON PARK lARK PARK Mass Mass May 21 21 Roger ROJer W Babson when today toda asked what Is the th most Ing business event of the first Quarter of o 1926 quickly replied as follows folios Aside from the stock market marketa decline the event of o the tho the past three months which should most mosi- mosi interest business men Is the X de-X de- de declining dining clining tendency of commodity prices Such prices began to ad advance ad- ad advance vance yance directly after the election of in r 1924 With the exception of a small dip Hl 1 In the spring last year the ad- ad advance advance ad advance vance was continuous until the Close cloe of 1925 Since late In Jan Jan- January Jan January uary this year ear there has been a 0 constant declining tendency j CROP DETECTED Since the war Europe has fast tut come back as a 0 producer of both rains grains rains and commodities As AI a re-ault re re- re result sult the demand for tor our food tood products has hn been greatly cur curtailed cur cur- curtailed tailed Domestic wheat supplies are small but there Is plenty of wheat ta taking ng tho the world as a at k ak whole Moreover the thIS worlds world's D 11 acreage Is constantly being in- in increased In 1 creased We Ve have an excess of corn In the United States Corn CornIn CornI I in 11 hogs is the most profitable In years but the majority of farm farm- farmers tarm 1 q ers ere had llad previously sold most of their Ir sur lus Corn Is now 1 i selling nt at about the year five av- av art avi t crage rage price prior to tho the war warl Considering the fact tact that farmers Costs are considerably higher than before the war this Is a a serious matter Rye flaxseed and ond other crops are In abundance Hog prices are s still high but cattle t tow prices prices ares are fairly low ow Shrewd farmers cannot no now see ee higher prIces Immediately tor for any Im- Im Important Im Important farm products and lear even lower prices for some During tho the war the producIng producIng producing ing capacity of our plants plants-in plants in the United States and was Canada Canada greatly Increased above normal requirements Hence Immediately following the war there was a great at decline In prices This Tills de cline was checked cheked with the Re- Re Republican Republican Re Republican publican victory which put heart Into wholesale buyers of mer- mer Retail sales however have Ia c ave not come up to expectations J merJ There was as again developed amon among manufacturers and Jobbers a a hesi hesi- I besl-I hesitant hesitant tant attitude Many leading leD In- In In are curtailing operations Competition is become more se- se severe se severe vere ere every day da Thi This competition corn com peti- peti petition tion Is not only local but local local- but Europe Is becoming a II a real real real- competitive factor and each month is sending t f more and more manufactured n Into 1010 the United States andI and I l CanadaS Canada FOREIGN COMPETITION S i H H SR t As to what Europe Is doing Is best lesi expressed by by the following estimated figures of o our foreign L trade during the first three months ot of 1926 l Million Dollars l Balance a H Balance Against p l Exports Imports U Us UI Jan Jan i Hi 20 t POet teb 36 25 HS 70 t s Totals 1125 S These Thes figures arc not Import Import- Important Import tant yant ant of oC themselves We c have so much t cont goldon gold on the American con- con that we can well afford afford- even to our own well being well being send Bend more of It back to Europe S In settlement of an unfavorable trade balance The Importance J of oe these thes figures Is largely In what they they Indicate namely Indicate namely t that Euro Euro Iuro European t manufacturers are arc ly constant constant- ly Iy selling more and more more In the United States and Canada and t twill will soon become serious tors tori tor i f Business failures suggest that I competition both competition both competition both local and for for- forI for Is Is beginning to hurt The f death rate among new concerns which have never been through a business depression 1 is 18 now IncreasIng Ing very rapidly The truly suc suc- suc successful successful t Ping captain of Industry Is la he who can weather a hard gale Any Any- Anone Anyone Any J one can sail call a II business ship when the seas are calm calm Moreover t when prices are rising It Is merely like I-like like sailing with Ith the wind Ind From now on some sonic careful tacking will willbe willi be necessary even en If It there are no no- no torms storms Overhead must mu t be cut expenses reduced and competition must be met by working hard and attending to business Outside things must be cut out Hand to mouth buying will continue for some time lime to com come 1 GOOf GOOD OLD PATS YS I am sin often otten asked I ked It If the good goo old when days days when prices were WE're low and everyone worked-will worked worked will ever return It was not so so 50 many years ago that we could get a l square meal for could buy a 0 suit ot of clothes for tor 15 could buy good shoes at 13 3 per pair could get et board and room for 1700 a a week and ond when we wo pal pail l only U ICO O for forthe forthe forthe the first row seats seals In the tha but best theatres Then milk mille was five cents cent a 0 quart were five cents per package with a picture thrown In la street car tares fires were five c per ride and Ice cream sodas were five cents per drink and we all went to the thc or a cent five movie movie for our fun tun The doctor doctor In those days charged only 1150 per visit the dentist pulled a tooth for tor a quarter quarter quarter ter steak was 25 cents per pound sugar sold at 25 pounds for a 0 a dol- dol dollar dolt dol dollar tar lar lar and the butchers used to give us liver for the tile dog Of 01 course wages were vere then much lower and everybody worked People then thc bought ought washboards Instead of ouia 0 boards and developed farms Instead of golf Jolt courses ses and sub sub- su sub 1 divisions ion Will ever again return Frankly I do not know but surely there has hns been bee a ten tendency ten ten- tendency tendency dency In this direction during the past few months Living expenses must come down or 40 per cent of our tam families Illes wilt wind up In the bankruptcy courts Whether this decline in living costs will come come about through h declining prices or I through getting on with less gasoline gaso- gaso gasoI gasoline gasoline I line less leas new clothes and less leu amusements only the future con can cantell cantell tell Something however Is sure to happen Wo We e cant can't continue long at the present pace pare with wasting loafing and speculating so preva preva- prevalent prevalent prevalent lent This decline In con mo commodity prices during the past few months has been reflected In the th trend ot of business as a whole The Bab- Bab which stood at 15 per percent percent percent cent above normal January 1 1926 now registers 8 S per cent above normal Of Ot course January this Is mighty tine fine when compared w with tl 23 per r cent below and with normal only a a year ear ago Business Is still good taking an average ot or all lines and all 1111 sec sections sec sec- sec sec-I anI I lions Les ics very ver very good You however Cr asked me what Is the most event of the first quarter ot of 1926 and I have hate tried to honestly answer the Question It Is the declining ten ten- tendency tendency ten tendency dency In commodity prices which In many lines Jines may cause revolts revolts- revolutionary revolutionary changes I |
