Connecticut western news., 1922-04-27
WORST IS OVER r FOR NEW ENGLAND
Roger w. Babson, Famous Sta
 tistician Sees Northeast .L.a Ready for Prosperity

IT you were to SLuuy CnarI showing the path of a business de- precision you would note its striking resemblance to weather map out lining the path of storm. The present depression was first evident in New England and has spread southward and westward until it centers today in the wheat growing section of the middle west.
 !. 'New England being the first to feel the depression, is according to the great basic law of action and reaction, the first to show signs of recovery. From a study of statistics I am convinced that the foundation of fundamental conditions necessary for the period of improvement Is practically complete as far as New England is concerned. During this coming year manufacturers, mer- chants and bankers of this section of the country will struggle with their
 individual problems. While I do not expect to see anything like period of prosperity for this section in 1929 I do feel that the worst is over and that a gradual improvement will De evident from now on.
 "In activity the more important industries are already refiecting decided improvement. The textile industry for instance, which is by far the most important in New Eng land, is much buster than a year ago. Activity in cotton goods for instance is 8096 of normal at present, where as year ago it averaged 50e6. Wool en goods were operating at full ca- pacity during the early fall, and are still running near 1t. A year ago most of the woolen mills in this sec- tion were running between 35go and 402o of normal activity. Fun damentally the textile industry has turned its corner and is already in it's period of improvement. The exe- cutives of New England face two problems. First, the fact that the cotton center of the United States Is rapidly moving South In 1914, 18,500,0e0 spindles reported in the northern states as against 12,200,000 in the southern section. At present the report shows 19,500,000 in the northern states, and increase of 5To and 15,500,000 spindles in the south, and increase of over 259o. If the executives of these northern mills are to keep the textile center of the United States in the northeast they must meet this. competition.
 "The other factor that is keeping them from full operation are rather heavy imports of both cotton and woolen goods from England. These resources, of course depend largely upon the tariff legislation. The safest way to meet this flood of med i. ium priced foreign made goods is to increase efficiency and produce bet ter quality textiles in this country. x
 "The. boot and, shoe industry has also turned corner, and it's present activity is, improving steadily each month, The shoe men are also fac- ing the same problem as the textile people. The shoe center of the United States is gradually moving ...,,
 "In 1914 New England produced 53q6 of all the shoes made in the United States, this decreased to 48eo in 1919 and the latest figure shows that production of all grades of shoes during November 1921 was only 3715 % of the total United States production. The western have increased their share of total business by producing priced, good quality shoes, which can be made and marketed in quantity. I cannot help but feel that this competition with other sections of the country present one of the most serious problems that the New England manufacturers must produce better goods, lower prices, and more efficient organixa- tions.
 "The paper industry is experience ing a marked improvement, but is now in the trough of slight decline. Heavy stocks are still proving a to this industry. However conditions are great deal better
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