New Britain herald., 1922-10-07

t.-
 cussing the statement of certain bank
 CTS that the country is headed for
 another period of imitation. Roger W,
 Babson today issued the following
 statement from his statistical offices
 at Wellesley Hills.
 For readers who are not bankers
 and economists, let me first explain
 In simple language, what is meant
 by imitation. Men who are acquainted
 with the Babsonchart of business con-
 ditions know 1t Is made up of two
 lines-hrst normal line, represent
 Ing the permanent growth of the
 country which looks like a simple up-
 hill grade and a second line which
 looks like the outline of hills and
 valleys. This second line represents
 temporary business conditions. For a
 few years 1t is above the normal line
 and then for few years 1t is below | the normal line. When the two lines
 coincide. business Is normal; but when
 the second line Is above the normal
 line, bankers say we are having infla-
 ton, while when this line is below the
 normal line, bankers say we are hav-
 Ing deflation. Just now they say that
 we are threatened with another per-
 tod of imitation.
 "The normal line of business is de-
 termined by the honesty, intelligence.
 industry and thrift of the people.
 Competing the health of business with
 the health of person. we would say that the normal growth depends upon
 how we behave and how we take care
 of ourselves. The temporary business
 line, however. is affected by stimuli
 the same as our body. A stimulant
 may greatly exhilirate us. but we know the effect is only temporary and
 the reaction afterwards Is very de-
 pressing-we feel much worse in a few days. This is the scientific eX-
 planation of the common saying, I feel like the morning after There are several reasons why the bankers may be right in saying that tenn
 porary period of inflation is at hand. The country during the past year has been given three distinct stimulants, which should artificially help business and thereby cause imitation.
 The first of these stimulants was the immigration law. passed year ago and which was recently enact ed. This is known as the 3 per cent. law, which limits the emigration from any country in one year to 3'per cent. of the people now here from that country. It is practically a tariff on manual labor and on common labor. If continued, it will cause a famine of common labor in this country. It is the reason why the United States Steel corporation and other concerns are increasing the wages of common la bor If this law continues very much longer, it will cause an imitation in the wages of common labor and there by tend to bring about a general in 1ation.
 "The tariff bill, which was passed last month, is a second cause of infla- ton. Whether or not such a tariff is good for the country is political question and is not for me to discuss, but all students are agreed that it is largely a temporary stimulant The tariff helps the manufacturer the same as the immigration law helps the wage worker, But neither the tariff nor the immigration law increases pro- QuCLlOH or I1ldAeS lWO DlddSS Ol 6ioSo grow where only one grew before. The tariff will cause an increase in the price of goods the same as the tElmi- grafton law will cause an increase in wages Increasing prices and increas- ing wages, however, do not make the country any richer. The country be- comes richer only as it has more houses, more bushels, more tons, and more yards of goods. Marking up the price of goods accompishes nothing. With about a thousand dollars you can today buy million German marks and become a millionaire, but you are no richer than before.
 The third event that will help bring on the imitation, happened last week when England gave in to Fur key England has been the one great country outside of America which has stood for law and order: for the pay ment of debts and sound currency. | The lack of France and Italy to back up England on the Turkish matter has shaken the confidence of the world in Europe and European securities. Even some Englishmen themselves are say ing, Whats the use. If no one will H.s-----.-----------l-