Show U. U S. S S BUSINESS US NESS I IN N GOOD WAY AY I Economist Views New Era of Prosperity In I America I Special cP ni JH p latch i a Ich 1 I PARK Mass a Sept 25 26 I Inh h This week Roger W. W Babson bs gave a lit its nh annual outlook of business at att t I Ise tc 1 Twelfth annual business b con con- conr cony I IlIr r y nee He lie specially I prepared for our lIr Bader a summary I o from the tho thon I v n x which I Is I as follows During the past year ear the read read- read read-I ii au II Tient ment follo Collo n the war inflation 1 lion tion I on has hns been going on In a I The war scar Inflation boom I 6 a 3 aa a d 1 in the Ihl latter part of 1915 1916 ju HI continued through 1919 In 1 0 o the period p of deflation dc start start- it t h In ln and with the exception of Dm nu Interruption In 1923 has con through 1924 I SHOWS J DInO II T Most olost economists e are arc agreed arted that t lection Ie of Coolidge In Novem November ber bIr of or 1924 marked the 1114 ending o I ot or ort ott oft t its eta II deflation period and since h n n we WC have peen cen making con con- contin contIn tin nd rd Improvement Of or course h h improvement e t has not been t te ev- ev e ee rn J I II r In all lines of Industry t or r In Ina a I i it sections of or the country but t I Ing on nn average l avera o of or eHr we w c f iH 1111 a 1 distinct improvement ement in n npr I IJ pr J press Fress I I at the present time lime Tak- Tak Tak-I Tak in sn the ten lea leading barometers of ua ni e ness and comparing the eight of o m with V the t corre- corre fl g go eight ii months s of t 1924 11 r wo we I fin an Increase of o er IS 12 1 per perv pere v e nl nt In to bank clearings an Increase I 01 6 per cent In do pig Iron ion an Increase of oC 34 per pr cent In Inn m n nl corporations an Increase ot or oft oti i t per cent in new building an ann anIn In n T r ace ue of 6 per leI cent in freight r loading an nn Increase of 9 per Ter peri perr i T r In in prices price an nn In In- yo CTr crl se of oC 12 I per pur cent In Imports an all Increase rease of or 14 per cent tent In cx- cx exnor of oC 2 27 i cent V nor or an increase per ti II new capital raised rall d and a de deer de- de dec deer er c r in failures allures Surely Sur l this this this-is is isn Isn n a record and ant should o oi 01 Iv ly Iv clae cI the mouths of or 1 In tin I i s who ar sr howling l about atthe the present u II in m conditions at t i It eIt e IL It rue TUG that the good old days da II v w n people P were I Ia able a to t get tome some 11 I II 11 ilig I g for nothing are over v It is must musi sell a a. ag tru tr Hi that at volume and that II g g. g 1 nl I ar r more volume i r TI rs must m tat URt produce inder in o 0 oder der to lo make malce any profits to- to tot loll to toil il ll j It is tru t that people r In I and andU must usa usi their r brains a U IJ n to make a living and cannot I e g on o merely e e oy ny Y their I wits as a was I 11 fl ase a few years yeara ago Those merchants and I 11 n v m III workers who ere are attending 3 1 business have no difficulty in ini I 10 1 e I i ng nl a living The volume ot or i ness toddy today tod is s greater Ire ater than ever I statistics show ore are nr and certainly 1925 Is going gom to be a fairly fair will- will who are t for those thoe ear I. I year work nork and an deliver a dollars dollar's t g o to i- i or h of or materials material and tind labor for Cor forr r dollar received d fi It Is dangerous to make one onelo J lo to apply to all commodities all III locations For Instance I 1 would not advise one to buy commodities such sucha certain i lead n a hogs and These products product are all selling very ry much r Ie ic than production costs and andi they the will willII itself repeals repeats i I nil II orv or V ti II r before very long On On t I n 0 h II r I hand nand bituminous coal j jont uch as J i a l ont ant h II ather and potatoes pOl aloes are arc i tHin too low lose These rhese are vre nil all I Iem mir m rt d' d I u which w are entitled lf I o 0 o r am in price difference seems to toa I my 9 a a- pl o 0 o Indu In l Ship binding i- i r p r fining some branches ot or lot lot ing Industry and meat I IV p V ill II Il seem to lo be relatively I Iule ule to In n trend tr nd The manufacturer i and woolen goods er J of If cotton colton oot tin shoes and the like low Inow the Ine ne effect Hect of or hard times recent tendencies arc are more loun These Industries have wui wu ti h tio o 0 0 contend with and may ma hov ho a 1 decline for the year Onne On Onic OnIe ic ne other hand the iron and ande e I 1 I I Industry la is picking up the thea a aunt U implement business I I I o a id i d the fertilizer III business S arc rap rap- rapa Idly l l' l co The hosiery and I. I 1 Ir II goods manufacturers rs arc are do- do do dot I while the people are arec arec t 11 better blIer I Ic that man man- c molting for rayon so 50 can- can products 31 II of rayon sat 11 1 supply the demand man man-I COMI COSi fITl si When hen it comes to a discussion of or the different localities we find j I jat at certain set actions ions such as ns the theal al districts are suffering with I II Itar tar I present conditions of the coal rado rade Mines are arc p shut down j i ith md d 1 ar are oui o or of work ork th retaIl trade Is very vey bad In I sections of the south crop 1 to tho I alues arc are low compared and cotton colton will b ea en dis I la is Io also an an- I There which I agricultural section St her contrasted with a n year fear ago ORO nay may be due for n n. disappoint disappointment strip starting In namely a the he north from Minnesota and the Dako Dako- Dakota running Inning down through Nebraska and Texas ta as i. i Kansas In certain sections o 0 fines states be bo com eom- compared will poor values ared with last year ear and retail I trade made will suffer Buffer the other e hand Tennessee T Te e I On n an rl Mississippi IlIS Louisiana OUI and Ar Ar- Arkansas ot or the finest I kansas s may mn have one I situations situation In their the It history crop p white the Pacific northwest should prosper exceedingly ly Most lost of or the central west nest states should do better bet het- hett beter I t ter er r than last lat year ear and the entire country shows an nn Improvement Although money mCney may Hay be a n next few Ce little Ittle firmer 1 the tho months there should be sufficient I funds for all nil legitimate enter This means that there should still be a 11 good or bonds bond Most stocks however howe seem pretty high and I expect to see lower prices It H 11 also possible possible ble that there may ma be he moro more labor difficulties during the the next 12 months but tills this Is cannot be fore fore- foretold foretold foretold told with certainty We e hope however tr that both wage wae workers and employers will be wise enough work of to a- a that a 1 suspension Is 15 detrimental c to all concerned con and will wilt ultimately reduce the Income In Income In- In Income come of oC both bothA A study of or the situation sug sug- suggests suggests reaching a per period that we are arc iod lod where there will not be the violent booms and depressions that we have had in the past paRt 40 years Of or course If IC something unforeseen like the tho great rent war happens these violent will take tae place but otherwise we should keep more normal There arc are various arlou reasons r for this The Tho first Is that the Fed Fei- Federal Federal I eral Reserve fleser Board Boar has hns the finan situation well in hand and first job Is to steady st ad the not let It tip lip too loo much one second rea ren- reason reason side elde or the outer other The son Is that prosperity areas are made up of ot two factors namely the product of oC price and production tion Economists seem to to have agreed d that during durin the next few rei reiNUS years jears NUS as no production increases the will decrease and as the price Increases s production will Ill decrease thus keeping the product t of or and production fairly constant B POLICY The to mouth buying which has become go so popular with merchants although dangerous may also al tend lend e 1 to stabilize t a comB condi ions n s. s Tills This II is because ec hand to mouth buying means m less Ie IS charm chance of overproduction business being belne taken tak taken talt-I talt en n on an order basis basis- Although I Ido Ido do not approve of the e growth of Iso the l' l tI tu business e yet Ot this al also n al- al also so may have the tendency of or spreading t purchasing over a long period and thus lops Iron out the peaks and valleys alleys of or e ie sales sale curve of oC many manufacturers and mer mer- chants The spirit of or co operation between manufacturer and mer mer- merchant merchant merchant chant the development nt of or the chain store and many similar fac factors factors' ac- ac tore tors' are all tending tend In to make busi busi- business business business ness less Iss speculative sp and more ala sta ta- ta table ble A spirit of live and let live H HeIs Is developing and this is distinct distinct- distinctly ly a healthy sign IlIIn Added to all this Is I. I the fact net that business men e are r becoming Inter inter- Interested interested fat ested more o and n more n In statistics I Almost J every banker manufacturer er and merchant to some sorn statistical service and end reads and studies the same It Is true that Wat the business man Is still doing his own thinking and an l Is not buying and selling commodities on I i I I a le of or any nn an y protestor or ala sta On the other othel hand bust bust- men today tolay have h facts fact 16 to guide In their Judgments which h they th y before rE possessed All AI of this tho the next 12 moans means two things for Cor I 1 l. TUP Tle great rent profits profit and the losses of or the past paRt 20 o years ye ls l's will not again he he- evident c for some sometime time lime e to come This means that the he I next few years ears will viii not otter offer such Ruch opportunities s to the speculator or any other othel man who Is trying tr to get something for nothing 2 2 Business 4 will be healthier more stabilized and more mort satisfactory for those tho e who lire are will willing ing lo to render real service and give gl glea a dollars dollar's value In commodities and for every ry dollar doHar received recI The general gene Improvement In business Is well shown by the Dab Bab- which registered 9 per percent rent cent below normal norm a 1 year ago this time lime and reached the low point of ot Ills year yar In InIa say May Ia registering 2 per percent rent cent nt below normal These figures figures' compare with 11 per cent tnt above c normal at present time lime |