Evening star., 1914-08-10
WAR WILL CHEAPEN
| FOOD, SAYS EXPERT
R. w. Babson Asserts Lack of
Ships Will Increase
Supply Here.
ANY ADVANCED PRICES
WILL BE ARTIFICIAL
Big Crops and Impaired Export Fa-
cilities Mean Lower Living Cost
in His Opinion.

| BOSTON, August 1O.-Roger W. Bah
| son, business statistcian. forecasts 6
| golden opportunity for investment by
| men of small means. a boom in the cot
ton and wooden industries, but the re-
verse In the price of luxuries and some
necessities as the result of the European
| war.
There is absolutely nothing to war
rant the recent increase in the cost OF
! -four said Mr. Babson I'VE have the
biggest wheat crop in the history of the
country We don't import that COM
modify. There are no ships to export 1t.
BY every law of supply and demand the
prices should go down.
Neither is there any reason for an in
crease in the price of beef or in the by
products of cattle. The prices Of these
should be lower. if anything. And after
peace is declared in Europe and ships are
available to transport beef across. there
is no reason to anticipate sudden de-
mand for beef that will send the price
up again. On the contrary. beef ship
ments should be below normal, for there
is bound to be a prolonged era of econo-
my among the nations engaged in war.
Shoes Should Be Cheaper.
Where New England is bound to be
hit hard is in her boot and shoe in
dustry. The European demand is going
to fall off SO heavily that I am afraid
many men will be thrown out of work
For the general public. however, there
Is a silver lining to this cloud. for it
means surplus Of shoes on the market
and consequently cheaper prices.
Every article containing rubber is
going to jump in price, for the world 8
rubber supply is no longer enjoying its
dependable source in Brazil. This means
that automobile tires are going to cost
more. But because navigation is at a
standstill there's consolation for auto
mobile owners in the assuption that gaso-
line will go lower.
Sugar, Rice, Tea Up.
Sugar. rice and tea are going to cost
more than ever. The price Of potatoes
probably will go up because a large
portion Of our supply of potatoes comes
from Denmark. Ireland and Germany.
Cotton goods should be cheaper and
woolen goods higher. We have had an
excellent cotton crop, and the price will
drop because it cannot be exported just
now. The war is the finest kind of a
high protective tariff for the cotton and
woolen industry, inasmuch as 1t has
caused the mills in Great Britain to close
down. I confidently look to a big boom
in the New England mills.
Apples should sell for about 81 a
barrel. On the other hand, pineapples
are likely to be selling for 81 each.
Bank Deposits Safe.
Bank deposits in this country are
absolutely safe. Money Is easier now
than it has been for many months. To
understand why the war has caused this
1t must be borne in mind that banks are
required to KEEP 20 per cent reserve Of
gold or legal tender against their loans.
That means to loan S5,O0O,O0O bank
must have S1,OO0.OOO in gold on hand.
With financial relations with Europe cut
off, the outflow of gold has ceased. and
we are able to conserve our gold here.
Never was the time more opportune
for investment by men with small
means than now. for securities are just
now at their lowest point since the panic
of 19U7 The market is loaded with first
class securities that are an excellent
purchase at bargain prices"