Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-10-07
BABSON INDICATES
PROSPERITY PERIOD
Says Temporary Check Has
Been Made in Down.
ward Trend.
CONDITIONS IMPROVED
Chart Shows General Business
at Highes, Point in
Over , Years.

ESPECIAL TO The Tincs-Dispa,ch.1
WELLESLTY HILLS. MASS. or,
s.-DIscusaing the statement Of c.r-
'a'h bankers that the country is
headed for another period Of in
hation. Rogcr ". Babso:I today tssucd
'he Following statement from his
statistical offices at WeIlcg.y HIls:
fnr rcadcrS who aEe.not bankers
ana economists, let me frs, explain
IN simple language. what tx meant
.! i"'"t'on Men who are acquainted
WIN IN. Babson chart @! buslness
coalitions fnow II Is made up %,
w" !!n.s--:irsi II normal line. repre-
S"AtinS the permaucnt growth OF tho
country which look. likn a slnluIo
vh-h!li grade. and sacor0 limo
"h!th looks liz. the outline OF hiIl.
"Hd valleys. This second line r.nr.
.enis temporary business conditions.
f"s i:i? years /, IS above the nor
nal Iine and then fgor few years
= is Dciow the normal line. When
N'c 'No lines cpiuoidc trssnt., .s
normal: bui whom tn. second limo ,s
above ~. normal line. bankers say
We ar" having Imitation. while when
thus line Is below the normal linz
p"nNers say Nc are having d.na,ion.
'hst nov they say tha, We are
threatened with another period OF
Initiation
People Regulate business.
IN" normal ii1e of business is
nctermincG by the honesty. in,eIIi-
Renc-, industry and thrit, Of the peo.
PIE comparing the health of busi-
ness With Tho health o. person. We
would say that the normal growth
depends upon how We behave and
r
temporary business line, however. Is
affected by stimuli tho same as our
touy y SIiruiant may greatly .1-
a'i!hra'. us. but we know the efIcc.
~ oi'i! temporary and tho reaction
ai'rrWardS !s very depresStne-w.
'ee! much worse in a few DAYS. This
: TIE scientific explanation of the
common saving. J feel like the morn
ihE "lt"r. There are several r.asons
why the bankers may he righ; in
SAVING 'hit temporary period OF
ih"at'"i is AT hand Tho country
"ur'hS inc past year has been given
'n'cc distinct s,iniulants. which
should artiticaily help business ana
thereby cause imitation.
The first OF these stin,ulsn;. wac
tho immigration law passed "a wear
ago. and which was recently rn
enacted This is known an th. 2 n.r
cent law. which limits the cm!grntion
from any country IN one year "a 2
per cent of the people now here
tro'n that country. II IL practically
TAIN on manual labor and on com
mon labor. If continued. II will
cause famine OF common labor In
this country. 1t Is the reason whv
the United States steel Corporation
and other concerns are increasing
the wages OF common labor. IL this
law continues very much longer II
VIII cause an imitation in the wages
OF common labo. and thereby tend
10 bring about general imitation.
Tariff Bill In Rinmed.
The tariff bill. which was passed
last month. is second cause of in
nation. Whether or not sucn n tariff
rs good for the country Is a political
question and Is not for me to dis.
cuss, but all students are agreed that
II is largely temporary stlmulant.
The tariff helps the manufacturer the
same as the immigration law helps
the wage worker. But neither the
tarin nor the immig ration law in :
oreases production or makes two
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