Alma record. (Alma, Mich.) 1878-1928, 1922-05-18
CENTRAL WEST
IS REC0VE RING
DIVERSITY SALVATION OF THE
FARMING DISTRICTS Is VIEW
OF BABSON.


Roger w. Babson, famous economist,
outlines his findings in the ives
tern central States as follows:-
"A year ago | found the worst con
ditions i'm 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 de
preston area The storm center
having moved west from New Eng
land during 1920. Today, however,
find conditions in this section Of
the country much improved. The
worst is over. While definite i'm
provement is not yet evident business
gradually but steadily is turning
upward.
1.-THE best sections Of this district
as far as sales are concerned are
found in the states supported by
diversity of interests. Ohio for IN
stance 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 eX-
perienced during the recent period
of prosperity, other smaller cities
with automobile industries are doing
-, Ia.
basic truth | have reiterated during
the past years, namely that COM
munities should not be exclusively in
dustrial or exclusively agricultural
Industrial communities should seek
to develop agricultural environments
while agricultural communities
should develop industries.
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 great
er this coming spring. A large pro-
portion of these mines are unorgani-
zed. This group should be especial
ly prosperous in ease Of strike
"Froduction Of bituminous coal
during 1921, by the way, was only
1900, 100000 tons or 27fc 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 bituminous coal
will be in order. Altho this will
mean lower wages and lower profits
for the operators it should mean
more days of work ana ultimately
benefit all interests
"The ircn and copper districts Of
the lake regions are still very dull.
The finished product industries Of
these lines are running only 1000 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 / prophesy 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 suf-
fering the headache-thc inevitable
a.
the prosperous years OF the war. One
with any heart cannot help but be
moved by the stories Of disappoint-
ment and loss encountered by the
farmers Of these western central
states. Corn and wheat are bring
ing less than nothing. The banks
are pressing the farmers for payment
Of interest and there is little pros
pect for higher prices in sight. But
the handwriting on the wall was very
clear and the farmer who took the
trouble to watch conditions closely
forcsaw the inevitable and saved his
money, hence, he is not in trouble to-
day. Instead Of unloading his "casy
money" for high priced land or low
vi obONho, G1NNi IL anu -
not suffering today. The salvation
of the farmer must be wrought thru
the diversity of interests. The far
mer 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
CANDLES in wheat on some enc 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 18T,
below normal compared with low OF
20Po a few weeks ago. Cincinnati
Chicago and Cleveland, are operat-
ing at about 500 of their normal
capacity. Canton and Akron are ur
to $50, while Columbus and Toledo
Ohio are back to 95ft Of normal. Oh
all the cities in these western central