The Ontario Argus. (Ontario, Or.) 1???-1947, 1922-12-28
BUSINESS AND SECURITIES
DURING THE YEAR 1928

oV' A'NH. WHAT going TO nap
pen in 1927"
That question is uppermost in the
minds of 100000 American busi-
nessmen and investors who are fac
ing the problem of making plans for
the New Year.
Signs are not clear and the usual
barometers seem to contradict one
another.
In the face of this general con-
fusion we had best fall back on the
facts and figures. After a thoro
study of the fundamental conditions
that govern our market, Roger W.
Babson today issued statement
which clears the air and furnishes
basis of fact for your plans.
I'VE are now at point in the bust
ness cycle" says Mr.. Babson, where
you can get almost as many differ
ent opinions as there are business
men. Some are very bullish for the
coming year, and others cannot see
much hope for business. The reas-
on for such situation is that we
are at present neither at the top of
boom nor at the depth of depres--
sion. If we were at either Of, these
extremes there woud be no question
of what the next move would be.
AS it is, we are about half way be-
tween them.
During the past year United
States business has steadily ad-
vanced until the average for the
whole country is what we usually
call normal business. Having ad-
vanced thus far, shall we immedi-
ately continue into a great prosper
ity period or shal we go into an
other period of depression and poor
business as some predict?
IF you will only remember the
five years preceding 1921 and recall
what an enormous orgy of expansion
existed, you can see for yourself
that it will take some time to get
proper foundation for really good
business. We danced during those
years, and now we must pay the |
fiddler his complete bill. Business
has really been like a convalescing
patient. Everything will 60 well |
with the patient if he does not try |
to get out of bed too soon. If he
tries to overdo he will have a re-
lapse. We now have passed the |
most painful part of the readjust-
ment. The crisis is over, but a pro-
cess of cost reduction and re-bal-
ancing is necessary"
Price Spread is Wide
To-day wide disparity exists
between prices of different COM
modities,and particularly the spread
between producers and consumers
goods. This is brake on trade.
One half of the people cannot earn
enough to buy the goods that the
other half has to sell. There are
one hundred and six million people
in the United States and fifty per
cent of them get their living from
producing and distributing raw ma
terials. 1t has thus far been i'm
possible to reduce the prices of fin
fshed consumers goods to meet the
cuts on these raw materials. The
power of these people is
out of its natural proportion.
ut is not entirely a matter of re-
ducing wages, altho labor scots are
large factor, nor is it entirely mat
ter of inefficient management. No,
the problem of high costs is not
problem of any one element; AMI re-
adjustment can come in only one
way-drastic competition. All this
will take further time. !
docs this mean that there will be
no opportunities in 1928? Not a
bit! There will be just as many
chances to make money as in any s
year you ever lived. 1t will be pos |
sible for you to make as much dur {
Ing the next twelve months as in p,
any year of your business life, but G
It will not be along the lines which z,
made money in 1919 and 1920, or q
IN any other boom year. The pro- {
hts in 1928 will come by giving at I
IGNITION to details, by stopping the '
little leaks, by saving here and {
here thru new labor-saving inven-
ions. and most of all, by devising G
aew and more economical means of G
goods. This was not 7
It all the situation during the busi- c
ness boom. Then the man who a
stopped to prevent small leaks found t
himself caught by the momentous t
rise in prices and changes In gen. t
,ral conditions.
"Those days have passed They I