Evening star., 1921-06-25
BY ROGER W. BABSON

war. The number Of designs were
decreased and the product increased
field of activity not only OF enter
prise. but also of men. It Is the con-
finiifg of human activity to special
ICED field. Its underlying principle Is
the division of labor. By standardiza-
tion Is meant the reduction of any one
line to fixed types and sizes. A stand
ard is simply carefully thought out
method of performing function. The
standard method of doing anything Is
simply the best method that can be
devised at the time the standard Is
product. BY Standardization during
the war, plants were able to effect
economy in patterns to shorten the
time Of production. minimize prelimi-
nary work and decrease the cost OF
production.
Along with this INCREASE in stand
ard-tation has come the elimination
of many seasonal business fiuctua-
tio2s. The ice man has gone into
the coal business and the coal man
haa gone intosthe ice business. New
England manufacturers who formerly
sent out their statesmen only twice a
year are now sending them out quar-
terly. Those who sent them out quar-
terly are now sending them out
monthly. They are also sending their
men into the district where the de-
mand exists rather than where the
hotels operate, Standardization and
elimination Of seasonal fluctuations
have done much to decrease the costs
of production and to stabilize busi-
ness.
National Advertising.
In the past few years a new pro-
feSsion has come into existence. This
profession is national advertising.
The advertising man who fully ap=
preciates his position realizes that he
is a professional man just the same
as the doctor or the lawyer. Those
advertising men who instruct their
clients in proper advertising, rather
than take instructions from their
clients, can exert and are exerting
a great influence on the proper pro-
duction and distribution Of goods.
It was only ten or fifteen years ago
that men advertised when they had
money, not when they needed busi-
ness. Today advertising is being
used to create demand when demand
Is needed. When used in this fashion.
national advertising has greA possi-
conditions and in the elimination Of
these dangerous rises apd' falls of
business activity that are now SO evil
dent.
Reserve Buying Power.
, Not long ago an investigation was
madewhich indicated that of the lib
erty bond issues approximately SO per
cent, purchased by the middle class, Is
still in their hands. Large corpora
tions have in many instances been
forced to sell their liberty bonds, but
the great mass Of people, still have
the greater portion of their original
purchases. SO long as this continues
the middle class people will possess
a great reserve buying power. Sooner
or later, as demands press themselves.
this buying power will exert itself.
Savings are also very evident In other
channels. A period of depression can
not last long. when there Is q large
latent buying power.
As we have already seen, crop fall
ures are becoming thing OF the past.
A few years ago. when the Washing
ton crop reports were released. the
telephone and telegraph wires In our
Wellesley Hills Office were kept
busy BY those seeking the first word
on the crop outlook. Now no one
seems to give the crops any particu-
lar concern. We have had. our con-
cepts of value. and business. condi-
tions so distorted in the last few years
OF aDnOrmanIy CndC we 6Ie . lOSlh8
sight of a great many Of our funda-
mental barometers We are produc-
ing more than ever before and this
is greatly TO the nations benefit. Ex-
cepting for. the fraction of our crop
which is exported. it makes little diff.
ference to the country as to the price
of wheat-whether it is 81 per bushel
or 50 per bushel. The number Of
bushels is the important thing. AS
the bushels increase the nations
wealth. increases, and therefore we get
stronger fundamentally.
Prohibition. =,
Another optimistic factor in our
present business situation is national
prohibition. Before the prohibition
act was passed $1,000. .000, 900 were
spent annually for drink. Now this
$4,000. .ooo, 900 that was formerly spent
for drink. goes to the buying Of mer-
chandise, the building Of homes. the
furnishing Of homes, and the starting
of savings accounts. No matter what