Alma record. (Alma, Mich.) 1878-1928, 1922-05-04
bABS0N REPORTS
ON THE EASTERN
CENTRAL STATES
NOTED ECONOMIST SEES 1922
BETTER THAN 1921 IN MOST
OF LOCALITIES.
Bond Business
Good He Says

Continuing his personal survey of
the business of the country Roger
w. Babson statistician and business
advisor to $4,000 of the country's
leading executives reports his find
ings on the central eastern states as
follows:-
New York, Philadelphia, Balti-
more, and the other large cities,
south of New England, prosper large
ly from three sources.
!. Foreign Trade, the sale of
goods TO foreign countries even altho
the goods came from the interior
of the country.
2. Jobbing, that is the distribu-
ton Of merchandise to retailers in
the tributary territory.
3. Investments, including the in
terest received from stocks and
bonds together with the profits in
volved in purchases and sales of Sc
curities.
There is of course certain
amount of manufacturing in these
cities-especially of garments and
clothing, but they are not primarily
industrial cities.
Foreign trade is severely crippled
for sometime to come. Certainly
1922 will show no better than 1921.
Therefore We may expect very little
income from this source.
THE jobbers will hold their own
in 1922 and should have an increase
in orders. Altho retailers are do
ing comparatively little business yet
their stocks are low, and they must
buy certain amount of goods
whether they want to or not. If
the retailers would only cut prices
further, which coulo be done by
decrease in operating expenses, the
jobbers would, have good business in
1922.
THE real improvement, however,
which New York and these other
cities are to witness will come about
thru financial conditions. The bond
business should be very good in 1922.
The stock market should work up
wards and there may be even an old
ldSHlOiltu DOOHl OClOAC bIt gNoA
comes to a close. Deals and consoli-
dations will be put thru, dividends
will be resumed and other things
will happen which should enhance the
value of securities. OF course, no
wealth is really produced by these in
creased prices, but they affect the
prosperity of these cities. All stock
market activity always brings money
from the interior of the country into
the cities and most of it fails to re-
main there. The small interior
towns furnish the lambs; the cities
do the shearing; and the wool re-
mains in the cities to swell the bank
clearings and be registered as pros
perity. The eastern cities will see
much more of this money in 1922
than they have seen for some years.
'In a similar way the entire states
of New York, Pennsylvania and
those others in the eastern group
prosper likewise. With the ex-
ception of steel cities which will find
another quiet year in 1922, the rest
of this eastern section should feel
better. Agriculturally these states
simply feed their own cities with
dairy products, vegetables and some
grain. The central part of New
York has considerable manufactur-
ing and most of these cities will fare
better in 1922. The same is true
Of Pennsylvania and the other Sec
tions.
"The electrical industry of Sche.
nectady and Pittsburg should soor
begin to feel the good effects Of easy
money. Railroads and public utili.
ties Of various kinds are only wait.
ing for low interest rates in order
that they may sell bonds before Civ
ing large orders for electrical equip
ment. This is also true of the rail
road equipment industry. However
money rates should enable the rail
roads to buy. 1t should be remem
bered that after New England, tn,
next section to be hit by the depres
sion Of l920-21 was this portion o.
the country Of which | am writing
today. For this very reason, how
ever, New York, Pennsylvania an,
adjoining states will be the first t
follow New England in her recovery
Hence the outlook in these state.
will be fair. Sales opportunities il
these states will be better in 1872.
than in 1921. They perhaps hav
not turned the corner, but they sure
ly are turning the corner.
"As to industrial conditions will
say that the state Of New York hav
the best statistics on employment o
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