Every evening, Wilmington daily commercial., 1922-03-18

Continuing his personal survey OF
buSiness conditions throughout the
country Roger w. Babson, economist,
furnishes tho following exclusive state
ment to the Every Evening on con-
ditions In tho Mountain States.
up to recent weeks one could not
honestly write optimtstically OF condi-
uons In tho Mountain States. Condi-
tions now look better. however. from
several angles. With the exception OF
Colorado the situation 10 pretty spot
ty. The emergency tariff Is helping to
some extent the wool growers. but all
stock raisers have been obliged to
take tremendous losses on their herds.
The banks In Montana, southern Idaho,
wyoming. eastern Colorado. SOUTH
eastern Utah, northern Arizona and
eastern New Mexico arc forced to
renew nearly all their paper and are
very fortunate to get interest. The cit
uation 10 rapidly righting itself how
ever. and from present indications
stock rasers and wool growers will
get very favorable prices for their
products this year. Their position will
also be strengthened by reduced op-
Grating expenses and by avoiding spec
ulation.
The mining situation was exceed
ingly dull throughout 1921. The copper
mines OF Utah and Arizona have been
almost completely shut down, while
the lead. silver and other mines have
been running at a very low ebb. The
only activity has been in the coal and
iron sections OF Colorado due TO the
persistent operation OF the Colorado
Fuel and Iron Company. Today there
Is not on hand the tremendous stock
OF copper that there wac a year ago.
l really believe that the copper situa-
ton has turned Fhe corner and am
bullish both on the price OF the metal
and the price of the good copper
stocks.
| zinc ana lead aave not progressed
so far in readJustSnent as copper. Gold
production ts at h very low level on
account OF the SMALL purchasing pow
er OF the metal inf terms OF other com
modities. FAVORABLE Congressional ac-
ton. in the form OF a bonus, may
help the gold producers, but this is
problematical.f ffrhe silver situation Is
much better, owing TO the sustaining
influences Of the Pittman Act, which
provides for the purchase OF 27I,O 900.
600 ounces of new dom.stio silver nj
one dollar an ounce, TO replace a sim
liar amount in silver dollars melted
down during the war. II will take sew.
eral years TO complete these purchases
Most producers obtain silver as a by.
product of copper. gold. lead. and zine
Hence the favorable factors surround
ing silver will be over-shadowed ii
most cases by the weakness in othe
metals.
The worst conditions are found I,
be in Arizona and New Mexico. Manu-
facturers and merchants cannot ex
pect 10 sell many goods In these State
during 1922.
All money which these people ge
they must use for paying their bills
BeinK a director OF a very large Ian,
company operating IN these states
know that many of these stock rails
ers have not the funds with which {,
pay for the rent Of their lands, O
course, Il "a very ead that these nel
VIII not save money during good time
Tor certainly they made profits only .
few years ago. However, the onl,
business thing TO do Is TO extend cred
II 10 these people. They come up quick
ly as they 90 down quickly. The,
some day viii be making money agail
and will loyalty remember those VIII
have been lenient TO them during tht
period OF stress. Moreover. the condi
ton OF the range is fair and 1922 ma
be a good rainy year.
"One Of the important industries G
the Mountain States is numbering. Llk
mining and stockraising. however
numbering also is very dull. There ha
: been a great drop In the price of lurn
Der AZ the mill like the price OF every
thing else. There is no immediate out
look for higher lumber prices. tn
lumber people. however, are great
reducing their operating expenses. la
Dor has been cut 509o In many section
d and the efficiency OF the men is rnuc
greater. The Boshev1st element whic
so upset the camps q few years ag
has largely subsided. The entire labo
situation has greatly improved. Build
ing. however. Will pick up and the de
mand for lumber will increase. Nor
$ lumber should be sold in 1922 tha
was sold In 1921. Hence, lumber peopl
I should keep their orga nizations tc
= gether and not get dlscourag ged. on
y thing Is certain. timber Is growing q
4 the time. This means that the tract
I will gradually become more yaluabl
v Everytime ! take a trip throughol
= the country ] an aetonished at III
e fewer and fewer forests that remain.
y The brightest spots are those ses
tions where oil Is being found. In neai
n ly all these Mountain States there a,
: certain sections where oil develoY
d ments either exist or are contempla
ed. The very act OF boring for O
creates a temporary prosperity. A
people come into the territory a d,
mand for supplies and labor is crea
ed While general optimism pervad,
the community. IL oil rs finally disco,
cred this means a real new source ,
wealth. These towns wDere oil develcI
j ments are being carried on are III
= ones that statesmen should seek. r,