New Britain herald., 1923-03-30

shouuNiu AAhtf FtoEiuas &iaiSu oN
--Itoger " Babson is resting here
having Just ccsnpletcd his long trir
OF inspection throughout the different
sections OF the United States. He
leaves here next week for his home
In Wellesley Hills Mass. This morn
ing he issued the following state
ment regarding the business pros
poets of the Pacific coast He added,
however. that he was unfortunately
unable to visit the coast on this trip
and this statement Is based upon
statistical data and reports from his
correspondents.
THE Pacific Northwest" says Mr..
Babson. lis looking forward to better
business, Prospects are encouraging
for lumber. fishing, shipping, and
agriculture. Practically all Of the
large sawmils of Washington and
4 Oregon arc now operating. and pro-
duction Is above normal A number
OF mills are even operating two or
/, three eight-hour shifts. Orders for
lumber are averaging larger than
production In spite OF strengthening
prices. Many mills have sufficient
business on their books to keep them
running at capacity for some months.
On the whole the lumber outlook Is
good for some time. or course, the
building boom is largely responsible
for this active demand. Later, there
may be let-up, but look for &C.
tive residential building throughout
the greater part Of 1923.
Salmon Outlook Good.
a nj 1or fotr ri a
outlook. Plans have been made for
substantial increase in the pack this
year. The employment Of more men.
and the purchases from ships chan
dlers, can-making plants. machinery
houses, and food and clothing estab-
lishments, will continue to contribute
towards better business. From an
agricultural standpoint, Washington
and Oregon are in a better position
than most states. Crop diversified
ton is an outstanding factor. More
over. the crop yield each year is ex-
ceptionally heavy Apples, hops.
berries and small fruits all bring
wealth to the grower. Under these
conditions, the farmer of the Pacific
northwest enters the new crop year
y
crops cannot be fully forecast, but
wheat came through the winter in ex-
cellent shape and the canneries ap-
pear to have contracted for large
amount of berries and small fruit
Lumber Production.
with lumber production at high
levels. with more active cannery
operations than a year ago, with con-
sidera bic ready cash in the fruit, |
sheep. and farming country. and |
with an increase in shipping trade, !
the Pacific northwest is headed to- |
wards A gratifying Increase in bust |
ness. Uniform and complete pros
perity cannot be expected for some
time and there will be intermediate !
reactions. The outlook is relatively
good. however, and advertising and !
ceiling campaigns in this section
should produce generously. The
prosperous Wanatcbee Valley is most |
attractive: but Seattle. Tacoma, Port
land. and other Washington and Ore
Eon cities also merit attention.
II Regarding California" Mr.. Bah
Son says. the northern part Of Cali
fornia has, been settling down with
the rest OF the country
LAUNDERING, mining, stockraising.
wool growing, canning and other
lines, have been quite thoroughly
Ilauidated San Francisco and the
Lay region have been dull for over
wear. For this part Of the state
slow but steady Improvement is In
prospect. Southern California, on
The other hand. did not reach the
peak of the present cycle until the
latter part of 1921. 1t will doubtless
escape the critical phases of the de-
pression:. nevertheless, it may not
have completed its period of read
justment.
MANY factors suggest this outlook
for Southern California. l see moth
ing in any of these factors, however,
~ occasion alarm. The great diver
XIV of crops and industries upon
which California depends and the
efficient marketing characteristic of
the state should tend to prevent any
serious depression. I emphasize the
of further moderate
LIQUIDATION, as I know from my cor
respondence that many look for I'M
expansion. For the long
null. California is unquestionably,
but during 1928, business may
mark time. Southern California
should be included In all sales cam
paigns. but as the years progress
both sales and credit departments
should proceed carefully.
I'm explaining the reason for this
Mr.. Babson continued, IF you pic
lure the country as placid lake and
imagine that somebody drops rock
INTO New York, you will get a vivid
dea of how an economic movement
begins and develops. The ripples Of
depression and prosperity spread to
he north, the west and the south.
Take the recent depression, for ex-
ample. It started in the northeast.
With a decline in the stock-r market
md slowing down of New England
actories. Then came the Clash in
he agricultural west and south. Can.
ida held up for some time after dc.
preston appeared in the states. The
Pacific coast was among the last
lreas to be effected. Improvement
s going to follow much the same
:ourse.
Many Factors Involved.
THE northern parts Of the Pacific
coast district is running true to eco
ionic form. There was a distinct
ecline in Washington. Oregon. and
lorthern California. Moreover this
Iecline did not develop until some
line after the onslaught of the de-
,ression in the northeast. All this