Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-08-31
Famous Statistician De-
cIares, in Statement
Broadcast Exclusively in
South by WSB, That Intel
Iigent Buying Is Need

/
lean needs in his or her daily life,
and intelligent buying of everyday
essentials right now will mean an in.
evitable saving, says Roger w. Bah
son, eminent business analyst, in his
radio message broadcast exclusively
in the south by The Journal radio:
| phone Monday as a regular weekly
| feature.
In the following authoritative fore
| cast, the head Of the Babson's sta
| tistical organization outlines his
| views on the fundamental causes as
to why the. time has passed for post
poning buying with the idea OF get
| ting better bargain later:
For the past two years we have
| been used to waiting for lower
| prices. All Of us knew that if we
| put off buying until a little later we
would save money. No. of us have
| got into the habit of waiting for
prices to come down farther. This
| fall, however, we are going to run
into different situation. Present
| indications point to a rise in nearly
all commodity prices. The only ex.
| ception which I would make at the
moment would be possibly in bread
stuffs and other grain products. 1t
behooves us all, therefore, to wake
UP if we want to buy to the best adj
| vantage. My studies convince me
| tina tanything which you must buy
between now and Christmas had bet.
| ter be bought at once. If you need
a new suit don't swait until cold
weather to get it. The same applies
straight through the line of necessi-
ties which we ordinarily buy.
The Main Reasons
There are two main reasons why
prices should be higher: ~ Be.
cause work is more plentiful and
people nave more money TO spend.
| ~ Because the lack Of sufficient
| freight cars is likely to delay deliy-
cries and create a shortage of goods
where they are needed. If the tar
| iff bill finally is enacted in it's pres,
ent form it will furnish a third rea-
son for higher prices.
"As stated above, the buying pow
| er Of people in the United States will
be decidedly Increased during the
next few months. Whereas a year
ago many people were out of work
and jobs were scarce, the outlook
| at present is that during the fall
months we shall have an actual
| shortage in most classes of labor.
Certainly this applies to common Ia
Dor, to the building trades and, GER
| tain specialized groups of skilled
workers. For the time being we
shall hear very little talk about I'M
employment. Everybody who really
wants a job will be able to get one.
! All this, of course, means that the
| buying power of the great majority
of people will be increased and will
| Immediately be reflected in a larger
retail demand for goods.
! Regarding the car shortage, the
| latest figures available show less
| than 10000 box cars available in the
| United States and Canada, whereas
a year ago we had 125,000. Coal
cars are more plentiful, but we must
| remember that practically all of the
| winters coal, which ordinarily is
moved during the summer, must be
taken care of this fall. Moreover,
this is the beginning of the crop
moving season and the harvests this
year are abnormally large. Clearly,
therefore, a shortage of freight cars
is very likely to develop. Unless your
retailer has been careful to get in
his stock early, he is likely to find
! himself short Of goods between now
and Christmas. When this happens
prices usually advance, and certainly
there are no bargain sales.
Effect of Tariff
! AS to how much the new tariff
| bill may affect commodity prices /
can hardly make any suggestion un-
til we know in just what shape the
bill will finally be passed. AS the
senate bill stands it is very drastic
! indeed. The idea of tax of thirty
| three cents a pound of wool and
other levies equally high is so ex-
IRENE that it is difficult to calculate
| the final result. We may be sure
Of this much, however, that the tar
iff bill, if enacted, will increase the
prices of nearly all commodities.
| Hence we must keep this in mind as
another reason why it will be well.
to buy what you need now rather
than to wait for lower prices later.
Those who are wise will have good
part Of their Christmas shipping
done by the first of October. rather
than wait until the twerty-fourth of
December.
Remember what I've said about
prices applies only to the rest OF
this year. I'm not yet ready to COM
NIT myself as to the trend which
we must expect after December 81.
That will depend very largely upon
events between now ans then
Fundamentally the position of
United States business is sound.
| We've come through a period OF
drastic liquidation. Our banks have
Strengthened out their accounts, most
Of our business concerns have got
back onto a sound financial basis.
and the majority of people axe salts
fled that the best way to make a
living is to work for It. Hence, if
we have only moderate increase
in prices during the next few mouths
and if people as a whole continue
the habits of thrift and industry
which they have had to practice
during the hard times, then we max
expect a continued Improvement in
business next year.
"If, however, we forget the les
sons we have learned, if prices shoot
upward to an extravagant level, and
if business tries to come back all at
once, then we must look for another
relapse few months hence. In
short, the business situation today
is much like an automobile which
has been stalled. At last we've got
the engine started. If we are con-
tent to start in low gear and then
gradually shift to second and then
to high, we shall get along all right
If, however, we insist upon trying
to start in high gear first, we are
likely to be stalled again. Therefore;
in advising people to buy now rather
than later I mean to buy carefully
| rr-icnl,r l. az &c,