The Clayton news. (Clayton, N.M.) 19??-1954, 1922-09-15

GOOD BUSINESS THIS FALL SAYS
BABSON

Wellesley Hills, Mass, September
is. i922-Roger W. Babson evidently
is not upset by labor troubles and
the threatened coal shortage. In a
statement issued today he forecasts
good business for the next few
months.
Go after business nowl' says Mr.
Babson. Buyers during these past
two years have been following a.
hand to mouth policy. Everyone
has purchased as little as possible
because a delay has meant lower
prices and consequent saving. With
the turn of the business tide, how
ever, prices again tend up and both
business man and individual will
make more money by buying ahead
rather than by following the more
conservative policy. An analysis of
76 basic materials for instance
shows that i8 are higher today than
they were d year ago. "a are lower
than year ago, while I commodi-
lies show no change Price increase
Will be felt most on the raw mater
ials that have been completely de-
rlatcd, hut finished goods in prac-
lically all lines will show some
strengthening.
ut is particularly important that
retail merchants fully grasp this
change in the situation They must
turn with the tide. The retailer
should plan on substantial increase
in trade between now and Christ
mas. If he does not he will he caught
with shortage rather than sur
plus of goods, and a transportation
| tic-up will make il difficult to get
more on short notice
This increase in business will be
due to combination of increased
purchasing power and change in
| the attitude of the general public.
In spite of The strikes and labor
trouble there is relatively little uu-
employment at present On incomes
over 5000 figures show that IS of
the purchasing power of the Coun-
Try comes to the individual as wag-
es and salaries. This makes up the
bulk of the purchasing power upon
which the average business man
must depend. A drop in the cost OF
living and prospect OF steady work
is rapidly turning a majority Of the
| people into ready buyers.
''In the farming field, bumper crop
and better prices promise to class
the farmer as a good prospect He
has bought very little since 1920 and
his accumulated needs should alb
sorb tremendous quantity of farm
machinery and supplies. The plans
Of the business world accumulated
| during these past two years will
also be put into operation this fall
The combination of these several
factors points to a merchandising
shortage. If | were a retailer
should certainly buy all goods nec-
essary for Christmas trade now ant
insist upon early deliveries,
This general increased business
1 activity will lead in turn TO the in
creased business and industrial pro
fits that are already being reflect
ed in the action of the STOCK mar
ke. Increased profits, Of course
mean more money for expansion anC
equipment. Rents and money rates
in the meantime, are tending grad
ually downward, relieving both in
/ diVidual and business house in tn
matter of overhead Banks hay
ample funds to meet all commercial
and investment requirements. Il
many localities money is a drug OF
the market The slight seasona
tightening will doubtless be exper
fenced at crop moving time, hu
taking the fall season as who'll
money throughout the south an
west should come nearer to the New
York level
an the investment market, price
Of good bonds promise TO rule stron
this fall, AS investment capital ac
I cumulates the interest rates eas
off bond prices automatically rise
, AS profits and incomes increase tn
non-taxable issues will again be il
demand. The affect of commodit
prices will be more than offset 70
The time being by the quantity O
money available.
Continue TO hold your bonds.
Whether or not we shall have
reaction in the stock market th
& fall is not the point, We may 81
the break that the bears are hoI