Mohave County miner and our mineral wealth., 1922-08-11
|QABSUN, statistician t. fil'Gca
 ID on Business Conditions

Wellesley Hills, Mass, August lZ, 1922. The German question was dis cussed today by Roger w. Babson, statistician, who has been entangling the international and financial situa tion.
 Germany has failed to meet her obligation on the indemnity pay ments," says MT. Babson, land like any otherneoncern is judged bank rupt. We face the same situation that we find when business can not pay its debts. We either have. re- organization and try to get it back on to its feet or we call in the referee and judge it bankrupt and sell its as- sets and put it out of business.
 "The world is now having credi- tors meeting to decide what is to be done with Germany. Up to the pres ent time France, the largest creditor, has been taking the pound of flesh. It is only within the past few days that she has offered any other prop osition. Now, however, France sees that if she will let Germany off that England will let France off. It is understood that French Ambassador is deahng with the United States Government at this time, in the hope that the repuollc may be released rruni some of the debts she owes to us.
 Il4ese 'later ueve,oplnenrs are Iavor- able indeed, and strongly suggest that a friendly reorganization of German finance Is possible.
 "If France on the other hand were to march an army to Berlin, and to collect the pound of flesh by force, it is quite possible that this might align Russia, Italy and even possibly Eng land with Germany and bring about another war. This, of course, would be an undesirable situation from every point of view. Such action would undoubtedly cause a panic in our stock market ,and would serious ly embarass our big banks. It would upset business generally. We would not even experience the business boom that we had at the beginning of the last European war. The new gases and chemlcal weapons of warfare de- veloped since 1918 can be made just as we'll in Europe as over here. "lf, however, Germany has friend ly reorganization of her finance it would mean much and boom Ameri- can business. Such a reorganization would clear the air and overcome the fear of repudiation which keeps all our foreign transactions in a muddle. It would do away with the uncertain ty of the situation and if arranged to the mutual satisfaction of all parties concerned it would give the whole world the confidence 1t needs at this particular time. It would strengthen business everywhere. The greatest part of the benefit would be felt in America. I certainly hope that this will be the outcome.
 "ln the meantlme," concluded Mr. Babson, i've must remember one thing more, there is distinct diff ference between Germany's govern mental finances and the finances of German firms and corporations. The credit of Germany's government is al- most nil because of the tons of paper marks which it is obligated to re- deem. The banks are also in a rather uncertain position because their cash assets are of very uncertain value. The private firms of Germany, how ever, hold real property, factories, machinery, land equipment and mer- chandise. Most of them are in a sound condition because these things are of actual and permanent value. The re- organization of Germany's finance would upset the Germany govern ment's financial bureau and might call for considerable readjustment in Germany's banking circles. It.needs nave little affect on the real credit of private firms.'
 General business is maintaining it's recent improvement in spite of un- favorable sentiment created by coal and rail strikes. The index of the babsonchart shows that business is but 9% below normal. No change