Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-07-30

Wellesley Hills, Mass, July %
When interviewing Roger ". Babson
regarding the railroad and coal strikes,
Mr.. Babson did not seem surprised
with recent developments. He believes
that things are working out in a ma
tural way and all interests are doing
the best they can with a bad situation.
What seems to interest Mr.. Babson
in general following the strike settle
ments. Discussing this possibility ne
says:
The strikes while in progress ma
%turally put a general damper on bust
ness. They have a disheartening effect
on producers, jobbers and retailers.
Wage workers have less to spend and
manufacturers are less interested in
pushing" their business. All of this tends
to hold up trade in general. Yet during
this period of strikes. people are liv-
ing. eating and dressing just as if no
strikes existed. Houses are deteriorat-
ing. young folks are getting married,
children are being born. clothes are
wearing out and merchandise in gen
eral is being consumed. If deterioration
and consumption were suspended dur
ing the depression of labor strikes.
then strikes might be good for the
country at times. Unfortunately, how
ever, the deterioration and consump-
ton goes on even though retail pur-
chases decline.
This means that after strikes are
settled there is a general rush to buy.
The wage workers when returning to
their families rush to the stores and
purchase goods. The group of indus
tries which have been involved in the
strike Immediately receive an avail
anche of orders. They in turn feel
prosperous and order new machinery
and quantities of supplies. This sud
den increase in business from both
wage workers and employers is quick
ly felt by the jobbers who in turn
pour in orders upon the manufacturers.
The immediate effect of this is to
cause a temporary scarcity Of goods
which in many instances results in the
raising of prices. Therefore. / should
not be surprised to see an increase in
the wholesale prices of many products
this fall. In some sections of the coun-
try there will be a distinct shortage
in some lines of goods. Merchants,
therefore, are justified in stocking up
now for fall and winter trade. Those
who have contracts to fill should see
that these contracts are well covered.
When business is SO dull, as it is at
present, it is hard to believe that a
few months can see a radical change in
the situation. Such is possible. although
price increase may be more or less of
a temporary nature. | say temporary
because after the next squirt in com
modify prices there will probably be
.An 1 xrh.,1 I'LL -~.I
eral price level even lower than it is
at present. After this next upward
movement. the general trend of COM
modify prices may be downward for
some years to come.
Some of the basic commodities are
already showing an upward tendency.
Sugar, for example, which has beer
such a drug on the market during the
past two years, has already begun to
strengthen, and people are well justi- !
fled in again buying sugar by the bar
rel. Linseed oil is firmer. The demand
has greatly improved and the outlook
is very much brighter. | predict |
advances for linseed and should
be surprised to see raw linseed oil
sell for one dollar or over. This is
the general result of the large amount
of building now in progress and the
consequent demand for paint. Cotton
is still Strengthening. The recent esti-
published shows that the 1922
crop will scarcely be sufficient for
the worlds needs. Still higher prices
for cotton may be expected.
Steel prices are firm with rising
cost Of production and a fair increase /
in demand. Both coal and coke prices
are strong. Pig iron is in fair demand
and strong. Zinc is more active. While
prices are low, they are firm. The
applies to tin and especially cop
per. Copper is the last metal to feel
the effects of price movements and
is sure to sell higher during
this coming year following the strike
The basic commodities
which now look weak in the market
are lead, rubber and probably petro-
cum. Petroleum is in a very interest
ng position. The market is controlled
and there never was q time, even dur
ng the palmiest Standard Oil DAYS.
the oil price situation was so
the absolute control of a few
nexs On the other hand, there is a
amount Of oil in storage
md statistically the oil situation il