Evening star., 1922-09-16

WELLESLEY HILLS, Mass, Sep
tember 16-Roger Babson evidently
is not upset by labor difficulties and
the threatened coal shortage. In
statement issued today he forecasts
good business for the next few
months.
go after business now" says Mr.
Babson Buyers during these past
two years have been following hand
to mouth policy. Every one has pur-
chased as little as possible, because a
delay has meant lower prices and a
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 fol-
lowing the more conservative policy.
An analysis of rs basic materials, for
instance, shows that 48 are higher to-
day than they were a year ago, "a are
lower than year ago, While 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 practi-
caHy all lines will show some
Strengthening during the next few
months.
ut is particularly important that
retail merchants fully grasp this
change in the situation. They must
turn with the tide. The retailer
should plan on 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 transportation te-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 change in
the attitude of the general public. In
spite of tho strikes and labor unrest
there is relatively little unemploy-
$1,000 figures show that As per cent
of the purchasing power of the coun-
try comes to the individual as wages
and salaries. This makes up the bulk
of the purchasing power upon when
the average business man must de-
pend. A drop in the cost of living
and prospect Of steady work is rap
idly turning a majority of these peo-
pie 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
accupulated needs should absorb a
chinery and supplies. The plans of
the business world accumulated dur
ing these past two years will also be
put into operation this fall.
The combination of these several
factors points to a merchandising
shortage If 1 were a retailer l
should certainly buy all goods neces-
sary for Christmas trade now and
insist upon early deliveries.
This general increasN business
activity will lead in turf to the in
creased business and indH Trial profits
that are already being reflected 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 gradually downward, reliev-
ing both individual and business
house in the matter of overhead.
Banks have ample funds to meet all
commercial and investment require
ments. In many localities money is
drug Non 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 ac-