Arizona republican., 1922-02-06
Rx Roqar W. Rabson

II YOU were to study a chart show
ing the path of a business depression,
you would note It's striking resen1-
blance to a weather map outlining the
path OF a storm. The present de-
preston was first evident in New
England and has spread southward
and westward until it centers today
in the wheat growing section Of the
middle west.
New England being the first to feel
the depression, is, according to the
great basic law Of action and reac-
tion, the first to show signs of re-
covery. From a study of statistics
1 am convinced that the foundation
of fundamental conditions necessary
for the period OF Improvement is
practically complete as far as New
England is concerned. During this
coming year manufacturers. mer-
chants and bankers of this section
OF the country will struggle with
their individual problems. While ]
do not expect to see anything like a
period Of prosperity for this section
in 1922, do feel that the worst is
over and that a gradual improvement
will be evident from now on.
In activity the more important in
dustries are already reflecting de-
cided improvement. The textile In
dustry, FOR instance, which is by far
the most important in New England,
is much buster than a year ago. Ac.
tivity in cotton goods. for instance,
is so per cent OF normal at present,
whereas a year ago it averaged so
per cent. WOolen goods were operat-
ing at full capacity during the early
fall. and are still running near it. A
year ago most of the wooden mills in
this section were running between
35 per cent and 40 per cent of nor
NAL activity. Fundamentally, the
textile industry has turned its cor
nes- and is already in its period OF
Improvement. The executives of
New England face two problems.
First. the fact that the cotton center
of the United States is rapidly NOV
ing south. In 1914, 1S.500.000 spindles
reported in the northern states as
against 12,200000 in the southern
section. At present the report shows
1s.500,000 in the northern states, an
increase of per cent, and 15.500.00O
spindles in the south. an increase of
over 25 per cent. II the executives
of these northern mills are to keep
the textile center of the United States
in the northeast, they must meet this
competition.
TIE other factor that is keeping
them from full operation are rather
heavy imports of both cotton and
wooden goods from England. These
resources, OF course, depend largely
upon the tariff legislation. The SAT-
est way to meet this flood of medium
priced foreign made goods is to in
crease efficiency and produce better
quality textiles in this country.
The boot and shoe industry has
also turned a. corner. and its present
activity is improving steadily each
month. The shoe men are also fac
ing the same problem as the textile
people The shoe center of the Uni
ted States is gradually moving vest
ward.
In 1914 New England produced So
per cent of all the shoes made in the
United States; this decreased to 4S
per cent in 1919, and the latest figure
shows that production of all grades
of shoes during November. 1891. was
only 37h per cent Of the total United
States production. The western
manufacturers have Increased their
share of total business by producing
medium priced good-quality shoes,
which can be made and marketed in
quantity. I cannot help but feel that
this competition with other sections
of the country presents one of the
most serious problems that the New
England manufacturers must produce
better goods. lower prices, and more
efficient organizations.
The paper industry is experiencing
a marked Improvement. but is now
in the trough Of a slight decline.
Heavy stocks are still proving
handicap to this industry. However,
conditions are a great deal better
than they were a year ago. and 1922
should be better than 1921.
The labor conditions in New Eng
land are experiencing a considerable