Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-09-17
Babson Not Bothered
by Labor Trouble on
Coal Industry Mess

Wellesley Hills, Mass, Sept. 10
Roger Babson evidently is not upset
by labor difficulties and the threatened
coal shortage. In a statement issued
today he forecasts good business for
the next few months.
Go after business now!" says Bah
son. Buyers during these past two
years have been following a hand to
mouth policy. Everyone has purchased
as little as possible because a delay
has meant lower prices and a con-
sequent saving. With the turn of the
business tide, h~Fever, prices again
tend up and both business man and
individual will make more money by
buying ahead rather than by following
the more conservative policy. An
ANALYSIS of 76 basic materials for in
stance shows that As are higher to-
day than they were a year ago, II are
lower than a year ago, while 4 com
modities show no change. Price in
crease will be felt most on the raw
materials that have been completely
Debated. but finished goods in prac-
tically all lines will show some
Strengthening during the next few
months.
1t 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 and Christmas. II he does not he
will be caught with a shortage rather
| than a surplus of goods, and a trans
portation tie-up will make it difficult
to GET more on short notice.
This increase in business will be
due TO q combination of increased pur-
chasing power and a change in the at
titude of the general public. In spite
of the strikes and labor unrest there
is relatively little unemployment at
present. On incomes over $1,000 fig
ures show that IS per cent of the pur-
chasing power Of the country N
to the individual as wages and salaries.
This makes up the bulk of the pur-
chasing power upon which the average
business man must depend. \ drop in
, the cost of living and prospect OF
| steady work is rapidly turning a ma
jority of these people into ready
buyers.
I'm 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 accumulated during these past
two years will also be put INTO ope-
ration this fall.
'fThe combination of these several
factors points to a merchandising
shortage. If | were q retailer | should
certainly buy all goods necessary for
Christmas trade now and insist upon
early deliveries.
This general increased business ac-
tivity will lead in turn to the increased
business and industrial profits that are
already being reflected in the action
of the stock market. Increased prof
j its, of course, mean more money for
expansion and equipment. Rents and
money rates, in the meantime, are
tending gradually downward relieving
| the matter of overhead. Banks have
ample funds to meet all commercial
and investment requirements. In
many localities money is a drug on the
market. The slight seasonal tightening
will doubtless be experienced at crop
moving time, but taking the fall season
as a whole money throughout the west
and south should come nearer TO the
New York market level.
"In the investment market. prices
of good bonds promise to rule strong
this fall. As investment capital &C
cumulates the interest rates ease off
bond prices automatically rise. A:
profits and income increase, the non
taxable issues will again be in demand
The effect of commodity prices viii
be more than offset for~the time bein,
by the quantity of money available
Continue to hold your bonds.
whether or not WI shall have a re
action in the stock market this fal
ia not the point. We may get til
break that the bears are hoping TO
, or stocks may climb suddenly. TIL
point of importance, as / see it, is tn
fact that we have just turned h cor
ner Mt the bottom of a period of &c
! preston and that the stock marke
-. has never reached its high point unit
; early in the period of prosperity. Thos
> who W good stocks outright need d
; no worrying about the market.
! la spite of rail and coal difficultie:
, general business as reflected in the in
: deg of the Babsonchart is holding 1t
own. Activity is now running at
, per cent below normal.
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