Connecticut western news., 1922-07-06
CENTRAL WEST RECOV-
 BRING SAYS BABSON
Economist Sees Diversity as Only Salvation of Farming
 Districts

Roger w. Babson, famous economist outlines his findings in the western central States as followss
 "A year ago I found the worst conditions in these western central states, the section of the country lying between Buffalo, Pittsburgh and Atlanta on the east, Chicago and St. Louis on the west
 Detroit, Michigan and Akron, Ohio were then the center of the depression area. The storm center having moved west from New England during 1920 Today, how ever, l find conditions in this section of the country much improved, The worst is over. While definite inn provement is not yet evident business gradually but steadily is turning upward
 "The best sections of this district as far as sales are concerned are found in the states supported by a diversity of interests. Ohio for instance is in very fair condition. Northern Indiana and Illinois also look relatively good. Medium sized cities such as South Bend and Fort Wayne offer good sales possibilities.
 "Altho Detroit has been severely hit owing to the unnatural boom it experienced during the recent period of prosperity, other smaller cities with automobile industries are doing well. This simply illustrates the basic truth have reiterated during the past years, namely that communities should not be exciu- sively industrial or exclusively agri- cultural. Industrial communities should seek to develop agricultural environments while agricultural communities should develop indus tries.
 "The coal mining regions of the central western states have been quiet for some months. Now, how ever, in face of the threatened strike business is picking up. The miners make relatively large earnings when they work. The purchasing power of these coal centers should be greater this coming spring. A large proportion of these mines are unorganized. This group should be especially prosperous in case of a strike.
 Production of bituminous coal during 1921, by the way, was only 4,000,0OO,O tons, or 272 less than the previous year. Let me say, however, that after it is evident that there will be nothing to fear from the threatened strike, further de- clines in the price of bitumnious coal will be in order Altho this will mean lower wages and lower profits for the operators, it should mean more days of work and ultimately benefit all interests.
 "The iron and copper districts of the lake regions are still very dull. The finished product industries of these lines are running only 40Go of their capacity. Many manufacturers are shut down entirely. Statistics, however, indicate that as money rates decline, railroad, public utilities and municipalities will be able to sell bonds for permanent improvements. The demand for iron and copper will increase accordingly. With this in view I prophecy that 1922 will show a great improvement over 1921 in this section. A stimulous will first appear with the opening of the lakes when the ice goes out in March or April.
 "The farming sections are still suffering the headache--the inevi- table result of their intoxication during the prosperous years of the war. One with any heart cannot help but be moved by the stories of disappointment and loss encountered by the farmers nf these western central states. Corn and wheat are bringing less than nothing The banks are pressing the farmers for payment of interest and there is little prospect for higher yI.cSJ in sight, But the handwriting cn the wall was very clear and the farmer who took the trouble to watch conditions closely foresaw the inevi- table and saved his money, hence, he is not in trouble today. Instead of his "easy money" for high priced land or low priced oil stocks, he saved it and is not suffering today. The salvation of the farmer must be wrought thru the diversity of interests. The farmer who raises stock, sells cream and grows four or five different crops, is not at the mercy of the sudden price shift in any one line. The man who gambles in wheat on some one elses land is playing a margin and if the market happens to go against him he loses everything he has.
 "An analysis of the figures making up the Babsonchart shows that the trade of the western states run lS1o below normal compared with low of 20Gc few weeks ago. Cincinnati, Chicago and Cleveland, are operating at about 80G6 of their normal Canton, and Akron are up to 85Gc of their normal capacity.
 (TnrN;ruaI np voua GN