The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1923-01-04
p1rsINESS AND SECURITIES
IN 1928

IN 1923
Wellesley Hills, Mass, Dec. 30, 1922
aWhat's going to happen in 1927"
That question is uppermost in the
minds of 100000 American business
,.ar and investors who are facing the
,roblem of making plans for the New
Year.
signs are not clear and the usual
harometers seem to contradict one
another
In the face Of this general con-
fnsion we had best fall back on the
facts and figures. After thoro
study of the fundamental conditions
that govern our markets, Roger w.
Babson today issued statement that
clears the air and furnishes basis
Of fact for your plans.
eve are now at point in the
business cycle" says Mr.. Babson,
sWhere you can get almost as many
different opinions as there are BUSH
ness men. Some are very bulish
for the coming year, and others cam
not see much hope for business. The
reason for such situation is that
We are at present neither at the top
Of boom nor at the depth Of de-
preston. If we were at either Of
these extremes there would be no
question of what the next move
would be. As it is, we are about
half way between them.
During the past year United
States business has steadily advanc-
ed until the average for the whole
country is what we usually call "nor-
mali business. Having advanced
thus far, shall we Immediately con-
tinue into great prosperity period
or shall we go into. another period
Of depression and poor business as
some predict?
IF you will only remember the
five years preceding 1921 and recall
what an enormous orgy Of expan-
sion existed, you can see for your
self that it will take some time to
get proper foundation for really
good business. We danced during
those years, and now we must pay
the fiddler his complete bill Bust
ness has really been like q convalesc-
ing patient. Everything will go well
with the patient if he does not try to
get out Of bed too soon. If he tries
to overdo he will have relapse. We
now have passed the most painful
part of the readjustment. The crisis
is over, but process of cost reduc-
ton and re-balancing is necessary"
Price Spread is Wide
rToday a wide disparity exists be-
tween prices of different commodi-
ties, and particularly the spread be-
tween producers and consumers
goods. This is brake on trade.
One half of the people cannot earn
enough to buy the goods that the
other half has to sell. There are
one hundred and six million people
IN the United States and fifty per
cent of them get their living from
producing or distributing raw ma
teflal. 1t has thus far been inn
possible to reduce the prices Of fin
lsned consumers goods to meet the
cuts on these raw materials The
purchasing power Of these people il
out OF its natural proportion.
1t is not entirely matter of re-
ouclng wages, altho labor costs are
: large factor, nor is it entirely a
matter of inefficient management
No, the problem Of high costs is not
: problem of any one element, and
feadjustment can come in only one
way-drastic competition. All this
VIM take further time.
Does this mean that there will be
no opportunities in 1928? Not a bit.
mere will be just as many chances
!" make money as in any year you
ever lived. 1t will be possible for
you to make as much during the next
WE'VE months as ia any year of
your business life, but it will not be
slong the lines which made money in
1919 and 1920, nor in any other boom
year. The profits in 1923 will come
W giving attention to details, by
stopping the little leaks, by saving
aere and there thru new labor-sav-
ING inventions and most Of ALL, by
ueVising new and more economical
means OF distributing goods. This
was not at all the situation during
Tue business boom. Then the man
VINO stopped to prevent small leaks
.ound himself caught by the momen-
'eous rise in prices and changes IN
general conditions.
those days have Dassed They