, 1923-03-04


These states were once wholly
agricultural, but are rapidly chang.
ing into an Industrial section. New
factories r springing up every day
the younger generation are leaving
farming for building. manufacturing
and rade. Yet the total area under
cultivation continues to hold its own.
Every section OF America says
Mr.. Babson. has its best barometer
Of business. For New England It IS
the number Of spindles in operation
for Pennsylvania the number Of
blast furnaces. for New York the
total foreign trade. etc. The best
barometer for the Industrial West
Is the total car Ioadings at Chicago.
These since January /. 1923. are rum
ming well ahead OF the corresponding
weeks Of 1922-and compare well with
the total al loadiuEs for the entire
country. For the current month OF
1922 the net car loadings were about
$500. 900. For the current month Of
1898 the chr loadings will show fig
ures over 10 per cent greater, pos
Eibly Anal figures viii show an in
crease of 500, 900 cars. Moreover. OF
this increase only 6 $4,000 were OF an
increase in GOAL loadings. In other
words, n the car loadings OF the cur.
rent month are $500, 900 only about
500. 900 Of these will be coal cars com
pared with over 74O, 900 coal cars
loaded during the same period in
1922. This shows that the great in.
crease is in building materials. live
stock. merchandise. etc. there being
no appreciable change in grain car
loadings. 1t is true hat these figures
apply to the entire country; but pro.
~portlonally they also apply TO this sec
ton Of which Chicago is the center.
1.-THE middle cities n states are
recording increases OF from 10 to 80
per cent over n year ago. South
Bend. Indiana. leads compared with
last year, but Des Moines. Iowa
Peoria, Illinois. and Kalamazoo.
Michigan are closely catching up.
indianapolis and Terre Haute are not
doing as well as they should do.
owing TO some unknown reason. The
largest cities of this section-such as
Chicago. st. Louis. Detroit and Nil
waukee-are reporting about the
same as last year. Some think this
is due to the natural lag of the large
cities; but others believe that the
medium sized cities are due for a
much larger proportional growth. 1
am inclined to this belief. II so, the
best opportunities during the next
few years win be in the medium sized
cities which have better available
labor. lower rents. and pleasanter
living conditions. The heavy increase
in railroad freight rates and the de-
velopment OF good roads should also
help the medium sized city.
1.-THE automotive industry which IS
largely located in this section con
tinues &c thrive. Many talk about
this industry reaching a point OF
s%aturation. OF course. 1t will some
day; but when thnt time It will
require fully as many persons as are
now engaged in the industry, 10 sup.
ply the cars and parts needed for
requirements in order to keep the
market saturated. 1t is true that
some Of the smaller companies will
be forced out OF business and all
companies viii tend TO build lighter
and cheaper cars. but the industry as
a whole viii continue prosperous for
many years 10 comc. This means
much 10 Michigan, Illinois, and In
diana 1929 viii be a good automobile
year.
This section tributary to Chicago
is also %prohting from the great resi-
dental building boom now on
throughout the country. I have al
ready referred to the cause Of this
boom-namely, tho exodus OF people
from the cities to suburbs and the
country due to the convenience OF the
automobile. Tho first industries to
benent from the building boom were
the cement and brick people, then the
lumber and steel interests began 10
prosper. Now the copper. paints. and
other industries are picking up.
This sequence is invariably true
although when the boom eliminates
and the turn comes, the cement and
brick people Will be the first to feel
tho decline. The new roads in
process OF construction are also tenn.
porarily helping this section. although
] fear that some OF the sections VIII
not feel so prosperous when tho