Connecticut western news., 1922-06-08
LABOR DISPUTES HOLDING BUSINESS BACK-BABSON Babsonchart Index Now 16%o
 Below Normal as Against
 22%o in 1921


 which are responsible for the slow ness of business recovery. tThe floods still continue to trou- ble the Southwest, said MT. Babson. Nearly four million acres of land are said to be submerged. This tends tc delay planting as we'll as to inter- fere with transportation and general buying. With the exception of this flood situation and the lateness of spring, the crops are coming along very well. A little scare in the case of cotton will do no harm Scares do not affect crops but only straight- en prices and make for business ac- tivity. -E-.
 "The four industries which are the most active at the present time are the building industries, railroad equipment, public works, and auto mobile manufacturing. They are all industries of a fundamental nature. Not only is development of these industries giving temporary employ ment, but they provide permanent and productive capital for the coun- try. This is especially true in the first three instances; building, rail- road equipment, and public works.
 Every hopeful reports come from the Michigan district. Mines which have not been opened for year or two are now running on full time. Thousands of men in the mining sections are now going back to work, and the whole Michigan district, looks more prosperous. Altho the copper situation is still very flat, it is like man flat on his back. There is only one way he can look and that is upward. Michigan during the next two years is apt to be very busy state.
 '"The mill situation in New Eng land is upset Thousands of people are still out on strikes. Altho both sides claim decided advantages, sta- tistics are rather in favor of the employers. It is believed that cut is inevitable, and it is only uues- tion of what the cut will be. When the mills are opened, wage reductions will run from 10 to 20 per cent; altho these reductions will do little good unless the workers feel right and are happy As some mills re- open, they will reopen on an open shop plan, altho | believe that in many instances these manufacturers will go back again and deal with the union as soon as business becomes good and help scarce.
 Wage reductions apply net only to the textile industries but to the shoe industries and in some eases to the building industries. The Struc- tural Iron and Steel Workers Union 2 in Syracuse, N. r., have reeently ac- cepted a wage scale of dollar an hour for all work. I emphasize that these labor whichever side may be to blame-are the one impor- tant factor preventing business from coming back to normal. Both pro- fits and wages must be cut and all connected with industry from the president of the concern to the office boy must give more service per dol lar received.
 "The Babsonchart index now stands at 16 per cent below normal as against minus 22 per cent as it was at this time in 1921. This chart is really a chart of production and values. To have prosperity people must be at work; to have people at work there must be h demand for goods; and to have demand for goods, people must be prosperousl Hence, the soundness of the Golden Rule and why we all-whether em- ployers or wage workers-should be interested in having the other fellow prosperous. Yes, concluded the sta tistician, "there is real connection between religion and business. The sooner we realize it the sooner we'll be back to normal"
 Cheaper Money Ahead
 Roger w. Babson issued the fol- lowing statement today regarding the Money Situation:
 For the past few years banks, mortgage companies, and others en- gagged in the loaning of money have been educating people to pay high rates of interest. Manufacturers, business men, home builders and others are today paying high rates of interest which few years ago they believed never would be paid. this has, handicapped em- especially building opera tions. These people now wonder this is to be a permanent or whether these high rates are only temporary. Statistics lead me to believe that the high money rate period of the past few years has passed for many years to come. All ready money rates have declined greatly in the wholesale market. year. ago-the banks were Ioaning money on call to the broker age houses at from six to eight per cent they are now loaning at about four per cent. Even three to six paper can be sold at. from A % to 4H@o discount. These are