Connecticut western news., 1922-07-13
ROGER BABSON TELLS OF
 ECONOMIC SITUATION The Outlook for Business in
 Nearly Every Line IS Better

There is a way really to help
 business during this period of readjustment! The reason that the various campaigns to cheer up busi- ness have failed is because, in che early part of a period of depression, business needs something more than cheering up. These periods of ha~d times are not merely state of mind. They are the result of excesses, the same as spell of sickness. They can be cured only by first removing the causes. So called sunshine" and boosting" campaigns are as futile as trying to cure a patient with stimulants when what he needs is a dose of physic!
 "The present depression in busi- ness was not an accident. If you were watching fundamental cohdi- tions during 1919 or 1920, you knew full we'll that a depression would result. Moreover, you knew approximately how serious the depression would have to be.
 eff some one starts borrowing money at the bank, neither we nor anyone else can tell how much he will borrow. When, however, he has gone the limit, it is a simple matter of arithmetic to figure how much he will have to pay back. Just so with a country's business. In the period, of expansion we were borrowing and the imitation. of all business statistics shows approximately how much we borrowed. Now we are paying back and the extent of the depression shows that so far we have not quite paid back half of the .ctal The whole sum must be paid back before we can hope for period Of full prosperity.
 "We can, however, reduce the waste of this readjustment period. We can have very much better times than we have now. We Can do this if we increase the production of every person. I do not refer to mass production. It would help nothing to double your output by doubling your labor force. This simply runs up expense pushes up prices and creates more goods than you can sell. If, however, you can double your own individual output and the output of each of your employees, the readjustment problem for your particular plant will be solved.
 "Get this fact clearly in mind. There is no such thing as a general oversupply of goods. All of the present talk about overproduction is fallacy. Both here and abroad there are millions now in great need of goods. There never will be a general oversupply of goods until everyone has more than be can use profitably.
 What we do see is larger supply of goods than, the consumers can buy-first, because the. price is too high, second, because the consumer himself has not produced enough to earn the right to buy your goods. The second cause you yourself can do very little to remedy, except as you can influence the people with whom you come in contact. The first cause, however,-namely the price of your goods-you alone can change. If you can produce and sell your product a
 
 you have no trouble in finding a market. I can point to certain concerns today which are working at capacity to fill orders, while others in the same industry are suffering depression. Remember, high prices do not make prosperity; it is the amount of service rendered which makes prosperity!
 The most hopeful sign today is that an increasing number of busi- ness men are beginning to realize the above factl This is fundamental improvement. Already it is being reflected in increased confidence and a more stable tone in general busi- ness conditions.
 / The outlook for business in nearly every line is better We are now laying the foundation upon which a great period of prosperity later will be built.