Connecticut western news., 1922-05-04
CENTRAL STATES s..... FAIR SAYS BABSON
Famous Economist Sees 1922 Better Than
 1921

Contlnulng ms personal survey of the business of the country Roger W. Babson statistician and business advisor to 16,000 of the country's leading executives reports his find- ings on the central eastern states as follows:
 ''New York, Philadelphia, Balti- more, and the other large cities, south of New England, prosper large ly from three sources.
 l. Foreign Trade, the sale of goods to foreign countries even aItho the goods came from the interior of the country. @ 2. Jobbing, that is the distribu- tion of merchandise to retailers in the tributary territory.
 8. Investments, including the interest received from stocks and bonds together with the profits in- volved in purchases and sales of securities.
 ,"There is of course certain amount of manufacturing in these
 subsequently, of garments and clothing, but they are not primarily lnuusLrlal clues.
 Foreign trade is severely crippled
 for sometime to come. Certainly
 1922 will show no better than 1921. Therefore we may expect very little income from this source.
 "The jobbers will hold their own in 1922 and should have an increase in orders. Altho retailers are doing comparatively little business yet their stocks are low, and they must buy q
 certain amount of goods whether they want to or not. If the retailers would only cut prices further, which could be done by a decrease in oper- ating expenses, the jobbers would have good business in 1922.
 'The real improvement, however, which New York and these other cities are to witness will come about thru financial conditions. The bond business should be very good in 1922 The stock market should work up- wards and there may be even an old fashioned boom before the year comes to a close. Deals and consoli- dations will be put thru, dividends will be resumed and other things will happen which should enhance the wealth is really produced by these increased prices, but they affect the prosperity on these cities. All stock market activity always brings money from the interior of the country into the. cities and most of it fails to re- main there. The small interior towns furnish the lambs; the cities do the shearing; and the wool remains in the cities to swell the bank clearinzs and be registered as prosperity. The eastern cities will see much more of this money in 1922 than they have seen for some years. 9-.
 'Tn similar way the entire states of New York, Pennsylvania and those others in this eastern group prosper likewise, With the exception of steel cities which will find another quiet year in 1922, the rest of this eastern section should feel better. Agricul- turally these states simply feed their own cities with dairy products, vege- tables and some grain. The central part of New York has considerable manufacturing and most of these cities will fare better in 1922. The same is true of Pennsylvania and the other sections.
 -"The electrical industry of Sche- nectady and Pittsburg should soon begin to feel the good effectsl of easy Railroads and public utilities of various kinds are only waiting for low interest rates in order that they may sell bonds before giving large orders for electrical equipment. This is also true of the railroad equipment industry. However, money rates should enable the railroads to buy. It should sbe remembered that after New England, the next section to be hit by the depression of 1920-21 was this portion of the country of which I am writing today. For this very reason, however, New York, Pennsyl- vania and adjoining states will be the (Continued on uara N