Great Falls tribune., 1922-04-15

Are coal strikes, textile strikes, men 8
clothing strikes, responsible for the
falling off in business during the last
few weeks?
Answering this question and the
general question of whether recent in
dustrial unrest will postpone prosper
ity by a full year. Roger w. Babson,
statistician, outlines the situation as
follows:
Business men should not get faint
hearted because of these strikes.
Strikes are not always an economic
loss. If the country were today using
coal as fast as it could be mined and
the coal strike resulted in shutting
down factories, such a strike would be
ali economic loss. Strikes, however,
which occur during periods Of depres-
sion are usually not economic losses.
1t is not an economic loss to have this
coal strike continue until the great
surplus stocks of coal are used up. 1t
is not an economic loss to have the
textile strike continue so long as the
supply of manufactured goods exceeds
the demand. We are simply using our
surplus stock and the unemployment is
coming all at once in punches instead
Of being distributed over long period.
Like Uamn1lng Stredm.
"A strike today in most industries is
good deal like damming a stream of
water. The water is not destroyed,
but it is simply being held back. The
water could be damned for a month or
three months; but when the dam final
~ is opened the water will flow down
stream and do its work. The situation
in the basic industries today might be
compared with that stream of water.
The strikes are having the effect of
damming up the flow of business: of
retarding the flow of the stream, but
they are not destroying the markets.
Until these reserve piles of coal, cot
ing are used up, there is little economic
loss.
"A factor that has retarded business
this spring is the condition of the
weather. Reports from all sections of
the country show that the weather the
last few weeks has been very unusual.
To certain extent irregular weather
conditions are also damming the
stream. You may delay the purchase
of that new summer suit, but you will
get it just the same. The weather is a
great factor in determining when wom
en- make their purchases but does not
ultimately prevent sales.
Weather An Obstacle.
"The weather this spring has been
point of view. Probably no one thing
would aid so much today in settling the
textile strike in New England as about
two weeks of good warm weather.
Another factor bearing upon this
same situation is the lateness of Eas-
ter this year. Easter comes the 10th
of April, which is very late. Easter or
the week before Easter, is the opening
of number of lines Of industry and
this lateness of Easter has delayed
such business. Hence, cotton industry
is quiet. the sales of raw wool have
fallen off. Leather, household furnish
ings. iewelry and number of those in
dustries which are closely connected
with the person and the home are ex-
ceptionally quiet this spring and more
so than around the first Of January.
'Yet. there is more activity today in
steel, iron, copper, and the metals as a
class than there has been for some
The lumber market is in q
stronger position than it was year
ago, especially the better grades Of
lumber Hardware and other building
materials are IN greater demand. 1T
appears that the railroads are coming
in again into the market. The rail
roads are the greatest purchasers in
the country In normal times and to
have the railroads come into the mar
ket would distinctly help business.
Two Groups Of industry.
when one takes a cross section Of
business today, he divides all industry
into two main groups: One group 10 en-
gagged in manufacturing clothes, house.
hold furnishings and the various things
that we buy this month or next month
Just as we see fit. The industries en-
gagged in making these things have
been quieting down the past few weeks.
The other group consists Of those in
connected with the permanent
Of cities, railroads and
public utilities, there Is more activity
today in these industries which supply
to these constructive forces
than there has been. A man may
make more money in selling shirtwaists
to women than in selling bricks to men.
but fundamentally the country Is much
better off in having labor used to make
bricks to erect buildings of permanent
value.
Crop reports are just beginning to
come in so that we can Judge some
thing regarding the 1922 crop situa-
ton. From apparent figures 20 far the