Evening star., 1922-07-29

WELLESLEY HILLS, Mass. July
29.-When interviewing Roger W.
Babson regarding the railroad and
coal strikes, Mr.. Babson did not seem
surprised with recent developments.
He believes that things are working
out in a natural way, and all inter-
ests are doing the best they can with
bad situation. What seems to in
terest Mr.. Babson most is the possi-
BILE effect on prices in general fol-
lowing the strike settlements. Dis
cussing this possibility, he says:
The strikes. while in progress, nat
urally put general damper on bust
ness They have a disneartening ef-
feet on producers, jobbers and re-
tailers. Wage-workers have less to
terested in pushing their business.
All OF this tends to hold up trade in
general Yet during this period OF
strikes people are living, eating and
dressing just as If no strike existed.
Houses are deteriorating, young folks
are getting married, children are be-
ing born, clothes are wearing out and
merchandise in general is being con-
sumed. If deterioration and con-
sumption were suspended during the
depression of labor strikes, then
strikes must be good for the country
deterioration and consumption goes
on even though retail purchases de-
cline.
Rush Follows Strikes.
This means that after strikes are
settled there is general rush 20 buy.
The wage-workerS when returning to
work again feel prosperous They
and their families rush to the stores
and purchase goods. The group of
in the strike Immediately receive an
avalanche of orders. They in turn
feel prosperous and order new ma
chinery and quantities of supplies
This sudden increase in business from
both. Wage-workers and employers is
quickly felt by the jobbers. who in
turn pour in orders upon the manu-
facturers.
The immediate effect of this is to
cause temporary scarcity of goods,
which in many instances results in
the raising of prices. Therefore, I
crease in the wholesale prices of
many products this fall. In some sec
tions of the country there will be a
distinct shortage in some lines of
goods. Merchants, therefore, are jus
titled in stocking up now for fall and
" inter tTdut. nose VINO nave con-
tracts to fill should see that these
contracts are well covered. When
business is SO dull, as it is at present.
it is hard to believe that few
months can see a radical change in
the situation. Such is possible al
though price increase may be more
or less of temporary nature. / say
temporary because after the next
squirt in commodity prices there will
probably be another break, which
will make the general level even
lower than it is at present. After
this next upward movement the gem
eral trend of commodity prices may
be downward for some years to come
Upward Tendencies.
Some of the basic commodities are
already showing an upward tendency.
Sugar, for example. which has been
such drug on the market during the
past two years. has already begun to
strengthen, and people are well justi-
fed in again buying sugar by the
barrel. Llnseed oil is firmer The de-
mand has greatly improved and the
outlook is very much brighter.
predict further advances for Hnseed,
and should not be surprised to see
raw linseed oil sell for 81 or over,
This is the general result of the large
amount of building now in progress