Arizona republican., 1921-12-23

speaking to an audlence or rom 35,000 to 50,000 people from the wire less telephone station at Medford Hillside, Mass, Roger W. Babson, foremost business statistician of America, last night delivered the first business address ever given via the radiphone, to the largest audience which has ever heard a business talk
 Mir. Babson' spoke on When Shall We Return to. Prosperity pointing out the fundamental conditions which underlie the prosperity of a nation and the things which America must do to return to a sound, healthy busi- ness basis, for the benefit of the bus mess man and tle laboring man alike.
 The talk was sent out from the powerful Medford Hillside station of the American Radio and Research corporation and was picked up by stations in all parts of the United States, east of the Mississippi river, in southern Canada and at sea. It was estimated that he was heard by at least 35,000 people. and as his talk was received by newspapers In all parts of that territory it will reach millions of Americans.
 On several previous occasions con- certs and sermons have been deliv- cred by prominent persons by wire less telephone, but this is the first
 occasion on which a business talk has been transmitted in this manner. Mir. Babson's Address Mir. Babson's address follows:
 Economists and some of our so- called business authorities are be- coming befuddled by the prevailing pessimism and are issuing statements | to the effect that business will not | improve until 1923 or 1924. I should | like to go on record as contradicting | such an opinion. Fundamental con- l ditions indicate at the present time that the low point and the turn up ward will arrive in 1922. That you
 may get a clear idea of our exact
 present position as a basis for the solution of our problems, I shall re- | view briefly the causes for the pres | ent depression.
 "Tor Is months we have suffered the natural result of war time pros | perity-we have experienced the | operation of the great law of action | reaction which governs our busi- | ness world exactly as it governs our | scientific and mechanical world causing business to travel its in- l evitable cycle made up of succeeding l periods of prosperity. decline, de- | pression and improvement.
 | | slight depression when war was de-
 clared in 1914. Almost immediately we were called upon to feed and mu- | milton half of the world. Business | was decidedly brisk. Prices began to rise under the keen competition of ! the buyers. Help became scarce and 1 so the fear of losing a job disap- peared and the worker gradually slackened his pace.
 Enter World War
 'Tn 1917 we entered the great 1 World war, gradually, three to four l million men were taken out of indus
 stry and put under arms. Orders iE- | creased, patriotic incentive was add | ed to the natural drive. Our depleted | working forces were called upon to l produce more and more-to work al l high speed and overtime. Wages and | prices Ose still higher. At the same l time we were asked not to buy luXu- | ries on the ground that even if the
 material were not needed, the labor
 necessary to manufacture these luxu- | ries was. Instead of spending money | we bought Liberty bonds. and built up a great reserve purchasing power 1 Prices, meantime became quite un- 1 bearabie and everyone looked for | ward to the end of the war as the day on which we would return to the
 good old days" with prices and | everything else just as they were 1T | 1913 and 1914.
 When Armistice day finally came l however, a slight reaction gave way | almost immediately to the peak ol | prosperity such as you have never | seen, Released from the patriotic 1 necessity of working long hours ev'
 eryone went on a holiday and pro- duction fell off. Simultaneously tho
 public assumed that the patriotic necessity for holding Liberty bond:
 was passed. The millions of dollar: of war loans became purchaslns
 power. The inevitable happened
 Prices scared and we went on a spre'
 of speculation. Manufacturing ca
 pacity was increased by half to tr!
 and meet the demand. This pros
 perity of course was not sound. Tn, inevitable crash came.
 Go on Buying Strike "When prices began to sag In tn
 early part of 1920, the long -sufferinl : !