Arizona republican., 1922-03-20

Continuing his personal survey Of
business conditions throughout the
country Roger w. Babson, economist,
furnishes the following exclusive
statement to The Arizona Republican
on conditions in the mountain states.
"Up to recent weeks one could not
honestly write optimistically of con-
ditions in the mountain states. Con-
ditionS now look better. however,
from several angles. With the eX-
ception of Colorado the situation is
pretty spotty. 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 southeast
ern Utah, northern Arizona and east
ern New Mexico are forced to renew
nearly all their paper and are very
fortunate to get interest The situa-
ton is rapidly righting itself how
ever. and from present indications
stock raisers and well growers will
get very favorable prices for their
products this year. Their position
will also be strengthened by reduced
operating expenses and by avoiding
speculation.
"The mining situation was exceed
ingly dull throughout 1921. The cop
per 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 tre-
mendous stock OF copper that there
was a year ago. really believe that
the copper situation has turned the
corner and am bullish both on the
price Of the metal and the price Oh
the good copper stocks.
"Zinc and lead have not progressed
so far in readjustment as copper.
Gold production is at very low level
on account OF the small purchasing
power of the metal in terms of other
commodities. Favorable congression-
al action, in the form OF a bonus, may
help the gold producers, but this is
mathematical. The silver situation
is much better, owing to the sus-
tanning influence of the Pittman act,
which provides for the purchase OF
271 ,O00, 900 ounces of new domestic
silver at 81 an ounce. TO replace
similar amount in silver dollars melt
ed down during the war. 1t will take
several years to complete these pur-
chases. Most producers obtain silver
as a by-product of copper, gold. lead
and zinc. Hence the favorable FAC
tors surrounding silver will be over
shadowed in most cases by the weak
ness in other metals.
"One of the important Industries OF
the mountain states is numbering.
Like mining and stockraising, how
ever. numbering also is very dull.
There has been a great drop in the
price of lumber at the mill like the
price of everything else. There is
no immediate outlook for higher
lumber prices. The lumber people,
however. are greatly reducing their
operating expenses. Labor has been
cut so per cent in many sections ana
the efficiency of the men is much
greater. The bolshevist element
which so upset the camps a few
years ago has largely subsided. The
entire labor situation has greatly i'm
proved. Building. however, will pick
up and the demand for lumber VIII
increase. More lumber should be
sold in 1922 than was sold in 1871.
Hence. lumber people should keep
their organizations together and not