Arizona republican., 1922-04-02
BUICK HEADS, On
COAST, DECLARE
BUSINESS GOOD

Addressing some eighty Buick
dealers from all points OF Southern
California, at a luncheon held in Los
Angeles. II. Fl. Bassett, president and
E. T. Strong, general sales manager,
of the Buick Motor company, held
the close attention of their audience.
Mr.. Bassett's address was survey
OF general business conditions
throughout the country, and filled his
hearers with optimism, because it
bore the stamp of authenticity from
sources that could not be doubted.
Mr.. strong dwelt in detail on some of
the problems confronting the motor
car dealers of today and the methods
now in force, and planned to increase
efficiency of the already unique auth
oriZed Buick service system which
now covers the entire United States.
81 have been firmly impressed"
said Mr.. Bassett, "by the general inn
proved business conditions and the
increased optimism on the part of our
dealers eyerywhere-an optimism. by
the way, which has been more marked
during the past two months. In every
section there has been sound fun
damental reason for this. In many
cases it is thea improvement in the
market value OF wheat, corn, oats,
=,
ducts that are vitally important to
the sections in which they are grown.
For instance, fifty-cent corn and $40
hogs in Iowa mean an additional $4O,-
100000 to the state
"One of the most important indi-
cations of a resumption of normal
conditions in business is the increased
buying of freight cars. In January
and February the railroads OF TINS
country purchased $4,000 new freight
cars while in all of 1921 the number
was but 10000. railroad, by the
way. Is a wonderful barometer OF
general business conditions.
Farmers are starting to purchase
automobiles The public, in general,
is realizing there will be no more
vertical price drops. Retail prices for
cars have remained relatively firm
for the past sixty days.
Reports of the comptroller OF cur
rency show that the financial affairs
/ of the country are better than they
have been since 1919, and indicate
conclusively that the peak of liquida-
ton was passed between September
6 and December 81. The War FL
nance Corporation reports progress
sive liquidation of its loans and
very general Improvement of condi-
tons in the entire agricultural in
dustry.
"As regards. continued high prices
in many commodities, manufacturers
are doing their share Materials are
cheaper and labor cheaper than for
a number of years, but ] believe re-
tail merchants associations must do
their part, swallow g. little loss and
thus help adjust the matter of prices.
I 'Tf other manufacturers would be
content with as small a margin OF
profit as the makers of automobiles
it would effect a further drop in
price Our profits are smaller than
ever before and we are giving greater
value for every dollar than ever be
fore in the history OF the automotive
business. In fact so many are run
ming on such a. small margin of profit
that L look for a strengthening of
prices in the future, rather than a
| further reduction.
! "The used car problem has about
solved itself Six months ago it con-
| stituted a troublesome situation, due
to the fact that many dealers were
inclined to allow such a long price in
trade that their profits were pracl-
cally wiped out. AS a result, thou
sands of dealers all oyer the country