Alma record., 1922-10-19
SITUATION IN
STOCK MARKET
ROGER BABSON DISCUSSES THE
STOCK MARKET STU ALTON
FOR RECORD.

Babson today said the SERIOUSNESS OF
the European situation is greater
than most people realize!
at is really surprising that the
stock market has held up SO we'll dur
ing the past two weeks. OF course
the break vas due to the gravity Of
the Turkish situation which was m-
derstood only by the big bankers in
New York. The rol facts are that
France is today in ito a similar po-
sition as that held by Germany in
1914.
"The real seriousness Of the danger
has somehow been hidden. The
change has come swiftly. A few
weeks ago England was in the sad
die Az conferences she was the die
tator. She did the talking and
France did the worrying Today the
situation is just the reverse. Eng
land is now in hole. France delib-
erately put her there.
"'ngland alone Of all European
nalors has stood for law and order.
she aone has stood for the payment
al BIS, and the fulGllment of OBJ
ieaf'ne. Germany and Austria are
bankn. Gh IS gns in Russia.
alF on ne re Of bankruptcy.
France N4r au-ing. England IS
d., ont iy.who has told US that
he ai ,g he debts with interest
policy with Germany
g
la England has wanted to get
roi &c as much out of Germany
a~ bic without killing the goose
Ha the golden eggs. France
killing the goose, but still for
lding the eggs England wa
oe's big brothcr and upon her
81, nc'al world has relied.
av England is faced with fight
u 0e because she stands prac-
alone. The now government
aoce is not with her Germany
al.fe, in case Of war, is her only pos
G ally. The Germany Of today is
on friendly terms with the Tur-
~ of today. Should, however, Ger
lany go in with England, there
would have to be an entirely new in
terpretation placed on many European
relationships and the problems Of
those relationships. There is the
matter Of reparations, for instance.
All international finances would be
rpset.
"Yes, ENGLAND stands practically
alone. Italy will back Turkey Rus
will back Turkev And, Of course,
.rea. vii back Turkey Hence it
m4 be kept clear that the real is
not between Great Britain and
lg'h y. but between Great Britain
aud france. France has been back
ing Turkey. England has been back
ing Greece. Turkey and Greece, how
ever, have been but pawns on the
chessboard.
when the last war was on, Rus
sia was promised Constantnople
Russia withdrew Then, il was de-
cided to keep Constantinople free, out
of the power Of either France or
England. Eng and slowly cot a bit
of the uprar hand. This hurt the
pride Of Franc Who patiently await
ed her opportunity. Last month it
came. Then France played her cards.
In few hours the entire European
situation changed. Today France
holds the trumps
1T is not merely a war on paper,
Turkey is fortifyng her
self by putting guns and troops at
strategic points. Frankly, England is
in a hole and this is what caused the
stock market to break and foreign
bonds to tumble. Her own people are
againet war. There is the memory Of
the recent bloodshed. There is still
the warning mark Of great sorrow.
An Englishman, too, cannot see him
self going to Turkey to fight. When
Germany Numbered in Europe right
at England's door, the English Tom
my 'sas on fire to fight. But TODAY
t IS different. The Englishman re-
sadly what happened at
Iallipoli. He remembers the fearful
cost of conquering a few Beers in
South Africa He knows that there
70 over 2O0,0OO,000 Mohammedans
Turkeys back door.
en- the Engishman, who hasn't
son that is already lost or son to
es1 has taxes to pay. England, with
'es Intention Of paying her debts, is
hc o1ly European country that real
iaxed her people severely. The
fdiuary English tradesman is up to
'ls chin in taxes. ENGLAND has the
q -hrst tax rate in the worldly He is
re eager for more, the weight Of
'fich would almost break him. This
$ TIE proposition with which Eng
apd is faced. She has either got to
light the Turks at a tremendous cost
# men and money, without the full
'o-opei alton Of her own people. or
lea she has to lose India, Egypt.
ersia and the Holy Land. Do YOU
'onder the stock markets broke?
What will happen? | do not know:
ut what ever happens, there will be
10 check on business. The farmer
vill be helped by higher prices for
vheat. Manufacturing and shipping
will become more active. The cost of
living will go up. Money will be firm
r and scarcer. People will sell their