Connecticut western news., 1922-09-14
GOOD BUSINESS THIS .
 FALL SAYS BABS0N
The Statistician Gives Reason for Substantial Improve
 ment
ARMOUR CONVERTED
Babson Institute Issues a Remark able Statement on the Capital and
 Labor Question by J. c. Armour

Roger Babson evidently is not up- set by labor difficulties and the threatened coal shortage. In state ment issued today he forecasts good business for the next few months.
 "Go after business nowp, says Mir. Babson. Buyers during these past, two years have been following hand to mouth policy. Everyone has pur- chased as little as possible because a delay has meant lower prices and 8 consequent saving. With the turn of the business tide, however, prices again tend up and both business man and individual will make more money by buying ahead rather than by fo!- lowing the more conservative policy. An analysis of 7e basic materials for instance shows that .iS are higher today than they were & year ago, 2s are lower than a year ago, while { commodities. show no change. Price increase. will be felt most on the raw materials that have been completely defated, but finished goods in prac- tically all lines will show some strengthening during 5he next few months.
 ''It is particularly important that retail merchants fully grasp this. change in the situation. They must turn with the tide. The retailer should plan on a substantial IncreAse in trade between now end Christmas. If he does not he will be caught with shortage rather than surplus of goods, and a transportation tie-up will make it difficult to get more on short notice.
 "This increase in business will be due to a combination of increased purchasing power and a change in the attitude of the general public. In spite of the strikes and labor un- rest there is relatively little unem- ployment at present. On incomes over 5000 figures show that 4Sco of the purchasing power of the country comes to the individual as wages and salaries This makes up the bulk of the purchasing power upon which the average business man must depend. A drop in the cost of living and prospect of steady work is rapidly turning a majority of these people into ready buyers.
 "In the farming field, bumper crops And better prices promise to class the farmer as a good prospect. He has bought very little since 1920 and his accumulated needs should absorb a tremendous quantity of farm. machinery and supplies. The plans of the business world accumu- lated during these past two years will also be put into operation this fall. .#..
 "The combination of these several factors points to a merchandising shortage. If l were retailer I should certainly buy all goods nec- essary for Christmas trade now and insist upon early deliveries.
 "This general increased business activity will lead in turn to the in- creased business and - industrial profits that are already being re- hected in the action of the stock market. Increased profits, of course, mean more money for expansion and equipment. Rents and money rates, in the meantime, are tending gradu- ally downward relieving both indi- vidual and business house in the matter of overhead. Banks have ample funds to meet all commercial and investment requirements. Tn many localities money is a drug on the market. The slight seasonal tightening Yill doubtless be experi- enced at crop moving time, but talk ing the fall season as aNwhole money turnout the West and South should come nearer to the New York mar ket level. .H
 "In the investment market, prices of good bonds promise to rule strong this fall. As investment capital accumulates the interest rates ease off, bond prices automatically rise. As profits and income increase, the non-taxable issues will again be in prices will be more than offset for the time being by the quantity of money available. Continue to hold your bonds.
 "Whether or mot we shall have a reaction in the stock market this fall is not the point, We may get the break that the bears are hoping for or stocks may climb suddenly. The point of importance, as l see it, is the fact that we have just turned the corner at the bottom of period of depression, and that the stock mar ket has never reached its high point until early in the period of prosper ity. Those who own good stocks outright need do no worrying about the market.
 In spite of rail and coal difficult ties, general business as reflected in the index of the Babsonchart is
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