New Britain herald., 1920-12-08
.BABSON OUTLINES
 DEPRESSION CURE
Thrift and UnSelfShneSS Remedy,
 Says StatiStiCian

Thrift and unselfishness constitute the cure for business depression, said | Roger w. Babson, noted statistician and economist. speaking last night before the Hartford Advertising club, | at the Hotel Garde, on What Is the Matter With Business
 The so-called business barometers | such as diminishing bank clearings | and reserves, and falling market stocks, merely registered the under lying determining caNses, said MT. Babson. These deeper causes were two-fold. First. the amount of money reserve held by the people would show whether they were thrifty or extrava- garlt, and secondly, the attitude of the people. toward living.
 1.-The matter now with business is spiritual" asserted Mir. Babson. ''It Is Fundamental. Since the middle of 1918 the attitude of men has changed Thrift and self-sacrifice has given way to extravaganza and selfishness, and now many of the people would rather ride in the cart than pull it,
 Mir. Babson opened his address by citing ten factors that point to con- tinued prosperity.
 First, he said that wage earners and farmers today hold so per cent of the
 
 a big reserve buying power.
 Second, prohibition had resulted in great saving. Up to July 1, three billions of dollars had been spent an- nually on drink, and now 20 per cent. of that amount had gone into the banks, and the remainder into home building. Mir. Babson predicted no change in prohibition legislation next year.
 Third, our banking system is very flexible. During the last thirty to sixty days the system had greatly inn prove proved; |, n There sn,s wili be no financial
 Fourth, manufacturing has been standardized, and seasonal fiuctuation has been considerably eliminated. For instance, the man who is iceman in the summertime is coal dealer in the wintertime.
 Fifth, we have the largest crop in history. In considering crops, the amount raised. not the price, per bushel was the important fact.
 Sixth, our merchant marine, the second largest in the world, had in- creased our foreign trade. Mir. Bab- son made here significant statement by Rointing out that if all our foreign tradel(~ tied up in American ports, the most we could lose would be , per cent. of our total business.
 Seventh, reduced taxation would come in 1921 bringing with it the elimination of the excess profits tax and the reduction of surtaxes. Busi- | ness would be less handicapped. |
 Eighth, the new republican admin | istration will demonstrate what it can | do to help business.
 Ninth, we have become the richest | country in the world, and since the | war have become the great creditor nation.
 Tenth, advertising would. help to steady business, and it was already be- coming the economic force ir the pro- ! duction ana distribution Of goods.
 In the face of these factors that would make for good business. Mir. said there is repression and that we are in the midst Of the most radical adjustmeht ever witnessed. The peak O good ou. mess was resched in January Of this yAar and there mas been a decline sfnce.",
 | The regular meeting of the Ladies Auxiliary, U. s. N. V. will be held evening at the State Armory |