The Washington times., 1922-11-12
REAL B00M|S
STILL TOCOME,
AYERS SBAbSON
Will Take Two or Three Years
To Mature Real Prosperity,
He Declares.
III WILLIAM RANDORF.
Cosmopolitan News Service staff
(arrespondent


Correspondent.
NEW YORK. Nov. ll.-There is
no real boom period under way today
and real prosperity is not In sight Tor
two or three years. Roger Babson'
business analyst. told a large Cooper
Union audience in discussing the
business outlook for 1928.
big business corporations will not
again roll up large surpluses on their
books until at least another TWO
years. They are now entering the
last, or fourth, phase Of the business
cycle-the period of Improvement
and il will be two or three years be-
fore we get back to normal condi.
TONS" he said,
Sees Higher Prices.
While predicting stiffening OF
prices in the primary markets in the
next few months. and seeing an up
ward swing in the prices In the
wooden and worsted markets. Mr..
Rabson forecasts that people would
use less clothing and mere automo.
biles in the next few months.
People today" he said, buy
necessities last. They buy things to-
day that give them caste in the COM
munity. Automobiles are one OF the
outstanding items in this category
A special plea for the retailer was
made by Mr.. Babson.
"Offhand critics are fond of knock
ing the retailer as a man OF limited
foresight and ability" he said. Il
do not agree with this view.
Defends Retailers.
we have all learned many Dhings
in the recent period OF depression.
One is that no one Of us can have
lasting prosperity except as those
whom we serve prosper likewise. The
crying need OF the hour Is that we
get behind the retailer and help him.
If his methods are wrong, II Is our
misfortune, and il is up to the rest OF
US to show him better way
Mr.. Babson then said that while
support should be given the retailer,
the latter must realize that the idea
he must fight the chain store and
cooperative buying is wrong, and
that he must adopt improvements OF
hose systems to prevent the field
from being dominated by them.
Now we are on the very eve Of
general business improvement, but
lhe retailer must get IN better men
tai attitude to capitalize this oppor'
tunity," Babson said. "He should be
going into it like a lighting cock. but
instead his attitude is fearful and de.
fensive. Our problem is TO show him
the facts and show him that we are
on the upward side Of the business
cycle.
"A period of Improvement is ahead
i'm which he is certain 10 share II ne
will only seize the opportunity, adopt
modern methods, render real service,
cooperate with his competitors. and
invest his savings In the securities
of the corporations with which he
deals"
Cites His Reasons.
Five reasons for his belief in better
business in 1928 were. given by Mr..
Babson as follows:
/. Social, economic and spiritual
conditions affecting business have
improved, furnishing a basis for
genuine prosperity.
2. The crop outlook is the best in
the history Of the country from
profit standpoint.
3. Loans throughout the country
nave been reduced. and the trend OF
interest rates is down.
4. The position of business houses
- decidedly better. failures are less,
and the peak of losses is past.
5. Employment conditions are i'm.
proved, with less than a million men
unemployed today. while last year
.Lo.... .uors. fi.,o million rnen idle