Show Business Indicators Show v Pacific Coast Is ls Having Era of Stable Prosperity Newspaper Advertising Is Sensitive Pulse of Trade California's Resources Mean Economic Supremacy By fly ROGER W V BABSON DA SOY BABSON PARK FILL Fla Feb 26 Special Dispatch Prosperity le Is the sun I It rises In the th east swings across cross the tha middle west welt and up In the far west wt t A business reaction follows follow the th same course first affecting tho the Indus indus- industrial Industrial trial centers of tho the Northeast and n Atlantic slates then spreading through the agricultural sections and nd at last tb throwing rowing lis Ita It shadow h dow over the r coast I believe this Is tS now being followed and that ii II ia will remain active for tor or some lome sometime tIme after other parts of ot the tho country have havo begun to experience difficulties Certainly this state ts Is now making II a a relatively favorable favor tavor- able blo record At the rate rat Indus indus- industrial Industrial trial enterprises are aro ro developing on the Pacific coast the th time timo may como come soon oon when the th lag lac in will vili disappear busIness changes Jn In fact tact the th line ot of o normal growth In this section even now is la strong strong- strongly y ly Jr upward Statistics Statistic show much that Is encouraging for tor California In 1926 general business In this thia state held an even course at a level even en higher than tho the peak of the war war post boom In 1920 1 20 Compared Compared ed with Ith various other Important states this la Is an excellent show show- showIng showing ing tag for for tor California Again Arain look look- lookIng looking inc Ing at the tho shorter swIngs s I find that California during the last two years has made a distinct increase every month over the corresponding month of the th pre pre- preceding ceding an year year an unmistakable symptom of ot strength The Tho Th pres- pres present pres-ent pres cut ent trend of ot California business although it described as anything an like a boom Is In the right upward direction direction upward In con con- contrast contrast contrast with the th declines suffered by by- many many- other localities BUSINESS INDICATOR Certain Indicators suggest that business is quiet along alone certain lines Building permits do not noton noton noton on the th whole show so co favor favorable ble a trend as does docs general business Number of permits and their dol- dol dollar dol dollar lar Jar value has been averaging a 10 per cent or more below the level of the tho preceding year ear Hardware sales show how some evidence of weakness Though automobIle sales ary ary noticeably from month to month they have hav a I tendency on the whole to fall somewhat below those of ot a II year ago aso Em- Em Employment Em Employment plo statistics have been steady In the main but in some ways the th recent figures appear less favorable While ThUe no mark mark- marked marked marked ed Increase is reported business failures are numerous Other Indicator dhow v I a a good volume of business Electric pow pow- power power power er production makes continued and marked growth Postal re- re receipts re receipts indicate unmistakable and maintained well maintained expansion Life Insurance sales sale have hav averaged about the th same as a a year ear ago Dank Bank deposits show a moderate continued growth crowth Retail sales during the past pant twelve twel months show a fairly good trend Some may find this hard to be- be believe be believe lieve but statistics show how that reo re- retailing r tailing is on the Increase even though tho the rate of ot growth has not been large larg-e Wholesaling hows moderate but sustain sustain eil ed ad growth Newspaper advertis advertis- advertising advertising advertising ing Is a sensitive ulso p-ulso of ot busi busi- busi business business ness conditions and 2nd the trend is favorable fa in the main TOURIST TRAFFIC The reports that I have been rec 1 estimate that the tourist business Is 1 well above normal and materially ahead or of o last year The considerable increases in southern California should be b both a stint stint- stimulus ulua ulus to sentiment and a real eco eco- economic eco economic help Real estate Is spot spot spot- spotty ty For the state as a I whole the market is rated more mor active than normaL My conclusion Is that the tho fore fore- foree tore tore-e g e me ng factors factora very far tar fromn from IL ii complete list l t of ot California ac- ac ac tl are arc air air- consistent with the trend of General business as pre pre- previously pre previously previously discussed In other words word although there are various cross cross- crosscurrents crosscurrents currents cross currents local business in generalIs general Is resisting the d decline suffered by man many localities and Is ts still moving in a moderately upward direction over More California busIness men without doubt dOlbt feel better than do business men in inmost Inmost Inmost most other states In considering the th building In- In Industry In Industry two thIng must be bi be re- re remembered re remembered In the first place building activities may fall tall be- be below below be below low 1926 6 and still make mak a a fairly good comparison with or overages averages In the tha second place California is 1 making makine an earnest effort erfort to put the th building and real estat estate Industries on a a sound and aDd sane basis Adjustments In any Industry may be b welcomed as favorable rather than unta unfavOrable rable It if their ultimate result I is greater er great great- greater er stability liability and permanence It ItIs Itis ItIs Is a far policy to do doa a away way with the th merely specula specula- speculative tive and spectacular pond and nd to put the real in real estate In California as In nil all localities progress will wilt be b punctuated punctuated punctuated by action and re reaction but butth the underlying trend the th net growth the normal lico lIno of o ad- ad advance adVance ad advance vance Is ts pointing surely steadily and steeply upward Whilo Call Call- California Cali California fornia may my h have ve been featured most widely as a playground of the tho nation a land for rest reft and recreation this is not all With the great creat Industrial developments now under way the expansion of electric power the tb enlargement of with commerce with all these move move- movements movements ments going coins forward I anticipate tha that California will wm otter offer Increasing me mg ing inducements for tor the tho active as well as WI th the retired for work as well an as pia play for a a career as aswell aSwell aswell well as a home horne for accumulating ItS as well as enjOYing NATURAL 1 IESO There are s several veral reasons why I am Lm optimistic on California for forthe forth the long lone pull They can be bo sUm aunt sUmmarized urn merited briefly b as lIB follows California has almost limitless possibilities for the tho production of electric power ower on one of the master keys to economic supremacy This state slate is the tho natural gate gate- gateway way late way to tho the Orient Orient a 0 fact which will become tremendously Import Import- Important important Important ant during the ext ten years From the viewpoint of the aiTay ong Industry the th appeal of ot California's climate may maybe maybe maybo be warmth The Th broader Ic conom-Ic te IC viewpoint Ie WI however emphasizes the extra extraordinary ordInary variety and di- di diversity diversity di diversity of o its climate nn climate n asset et of tar reaching Importance The Th The state stat has hIlS an immense line coast and great treat shipping fa- fa facilIties fa facilities duties both for tor ocean shipping on and traffic Tho Th agricultural possibilities of California aro are world renowned world What impresses tho the economist Is the wisdom of ot this state stat In study study- studying ing Lug distribution as well as production production tion LIon and in seeking adequate di- di diversity di diversity and proper balance balanc of ot the different crops and livestock prod prod- products products UcLa In oil and other mineral mineraI re- re resources resources re resources sources California holds a com corn commanding commanding manding position Textile and other Industries are being developed Tins Tills was need need- needed needed needed ed to round out California's d de- de deI I and aud It la is one on of o the tho prime primo factors factor In tho pull long out out- out outlook look bolt Intense natural beauty and in- in interest In Interest terest of ot this slate represent real leal realand realand I and enduring values area Is I greater than tho the combined area of eleven other states which might be list list- listed listed ed d In population California has been advancing year by year first equalling and then surpass surpass- surpassIng surpass surpass-ine lug Ing state stat after stat tati It ranks high In wealth Income resources and other measurements of eco ceo economic eco economic power power Copyright 1 1027 7 publishers Financial Bureau Dureau |