Arizona republican., 1922-06-19

threatened strikes and labor unrest,
Roger w. Babson, statistician, today
issued the following statement re-
garding the general industrial situa-
tion:
For some time" said Mr.. Babson,
business in the east has been re-
viving. Were it not for the textile
and other strikes in New Hampshire,
Massachusetts, and Rhode Island,
business conditions in New England,
New York state, and Pennsylvania
would be very good today. During
the past year the central west has
been the weakest spot in the business
situation. The abrupt drop in the
farm products left the agricultural
sections of our country in a very bad
condition. You will remember the
farmers conference at Washington
and various forms of aid enacted by
congress and different state legisla
lures.
"The rise in agricultural products
however, which occurred a few
months ago, accompanied by the
good weather conditions of the past
few weeks. has made the farmers
feel very much better. Reports
which | am receiving from CORE
spondents in the west are truly en-
couraging. This applies not only to
the agricultural districts but also to
the mining and lumber business.
Even the automobile industry, which
is such factor throughout Ohio and
Indiana, is feeling much more en-
couraged. OF course the union coal
fields are quiet but the non-union
fields are more active each week
THE cut in freight rates should
help the coal and lumber business.
The demand for cotton continues
strong and the south is gradually
feeling better This better feeling
throughout the west and south is
reflected by the Improvement in the
business of the mail order houses.
The customers of the mail order
houses are largely in the rural dis
tricts. This shows that the farmers
have again begun to buy. This is
very gratifying and is one of the rea-
sons for the continued strong stock
market
Owing to the change in the for
eign trade situation and the, sale of
foreign bonds in this country, ster-
ling exchange is much stronger Al
though 1t may be only a temporary
movement the whole foreign situa-
for some time. Private advices tell
me that settlement is being APP
preached between Germany England
and France, regarding the German
reparationS. If this is so, it should
be distinct impetus to business,
both by causing Europe to buy from
this country and giving this country
confidence TO loan Europe. Although
no change has taken place in the
Russian situation during the past
week, yet signs even in Russia are
favorable at the moment. For the
first time in many years, things look
encouraging in Europe.
"The strike situation in New Eng
land is gradually clearing up. The
strike in Providence is about over
and production in all the mill cities is
gradually increasing 1t is believed
that mills will have all the men they
desire after the Fourth of July. An
other factor helping the mill situa-
ton is the fact that many of the dis
satisfied employees are getting posi-
tions elsewhere. There is consider
able demand for common labor today.
Many of the striking employees from
the textile and other mills have been
able to get a satisfactory wage in
connection with the building and 9TH
er trades. Thus there is very little
suffering or hardship in these mill
cites. The strikes may never be Of
ficially declared off, They may be
ended by the mill owners securing
other employees from the country dis
tricts, who have never before worked
in the mills, and by the old mill
workers getting positions in other
lines of activity. The strike is devel-
oplng largely into a swapping of
jobs. So far as the general welfare
of the country is concerned, this is
as satisfactory as to have the
strikers go back. The average busi-
ness man is primarily interested in
having people employed, and to bust
ness a S a whole, it makes little diff
ference for whom individuals work.
Il prophesy that the threatened
railway strike will end by the men
shifting jobs. These men engaged in
the maintenance of way, are largely
men who have not been able to Sc
cur positions in trades. Under pres
ent business conditions the cut is
justified, as these men could not Sc
cure elsewhere a wage equivalent to
what the railroads are now paying
them. If. however. business begins
to improve this summer and the de-
mand for labor increases, it is very
probable that the best of these main
tenance- -of-way men will get posi-
tons in the building and other trades
while the railroads will import new
lot of men from the country.
For the past year or two We have
seen in the papers accounts merely
of wage cuts. Reductions have run
all the way from 1919 to 500, with
an average of about 25%. | should
not be surprised to see some adj
vances from this time on. The Fire
stone Tire and Rubber company of
Akron, Ohio, has already advanced
wages 1919. Other concerns which
are temporarily short of labor are
offering more money. It is, however, !.
to note that the labor
unions were not successful in holding
up wages at the time of the decline
and are not forcing increase at this
time. History is simply repeating it
self. The Law of Supply and De-
mand determines wages as it deter
mines prices. IL business begins to
pick up this summer, as | anticipate