New Britain herald., 1922-09-16

| Wellesley Hills. Mass, Sept. 16.- i Roger Babson evidently is not upset by labor difficulties and the thre/ ened coal shortage. In statement issued today he forecasts good busi- ness for the next few months.
 Go After Business.
 Co after business. now!" says Mir. Babson. Buyers during these past two years have been following a hand to mouth policy. Everyone has pur- chased as little as possible because a | delay has meant lower prices and consequent saving. With the turn of the business tide. however, prices again tend up and both business man and individual will make more money by buying ahead rather than by fol- lowing the more conservative policy. An analysis of 76 basic materials for | instance shows that 4S are higher to- day than they were year ago, 24 are lower than a year ago, while four commodities show no change. Price increase will be felt most on the raw materials that have been com pletely deAated, but finished goods in practically all lines will show some strengthening during the next few months.
 Turn With the Tide.
 Tt is particularly important that retail merchants fully grasp this change in the situation. They must turn with the tide. The retailer should plan on a substantial increase in trade between now and Christmas. If he does not he will be caught with shortage rather than a surplus of goods, and a transportation tie-up will make 1t difficult to get more on short notice.
 This increase in business will be due to a combination of increased purchasing power and a change in the attitude o: che general public. In spite of the strikes and labor unrest there is relatively little unemploy- m'ent at present. On incomes over s1, ,0oo figures show that 4s percent. of the purchasing power of the coun- try comes to the individual as wages and salaries This makes up the bulk of the purchasing power upon which the average business man must depend. drop in the cost of liv- ing and prospect of steady work is rapidly turning a majority of these people into ready buyers
 Farmers Prospects Good.
 "In the farming field, bumper crops and better prices promise to class the farmer as a good prospect. He has bought very little since 1920 and his accumulated needs should absorb a tremendous quantity. of farm ma chinery and supplies. The plans of the business world accumulated dur ing these past two years will also be put into operation this fall.
 "The combination of these several factors points to merchandising shortage. If I were retailer should certainly buy all goods neces-. sary for Christmas trade now and insist upon early deliveries
 h'This general increased business activity will lead in turn to the in- creased business and industrial profits that are already being reflected In the action of the stock market. 1n- creased profits, or course, mean more money for expansion and equipment. Rents and money rates, in the mean time, are tending gradually down. ward, relieving both individual and business house in the matter of over head. Banks have ample funds to meet all commercial and investment requirements. In many localities money is a drug on the market. The slight seasonal tightening will doubt less be experienced at crop moving time, but taking the fall season as a whole money throughout the west and South should come nearer to the New York market level
 Investment Market.
 "In the investment market, prices of good bonds promise to rule strong this fall. As investment capital ac- cumulates the interest rates ease on' bond prices automatically rise. AS