Perth Amboy evening news., 1923-03-31
BabSOn'S Weekly Article
On Business Conditions
OF Interest To Nation

! this" Ms. Babson continued: at
you picture the country as a. placid
lake and imagine that somebody
drops a rock into New York, you
will get a vivid idea of how an sco-
nomic movement begins and de.
velops. The ripples of depression
and prosperity spread to the North,
the West and the South. Take the
recent depression. for example. 1t
started in the Northeast, with a de-
cline in the stock-market and a slow
ing down Of New England factories.
Then came the crash in the Agricul-
tural West and the South. Canada
held up for some time after depres-
sion appeared in the States. The
Pacific Coast was among the last
areas to be effected. Improvement
is going to follow much the same
course.
The northern parts Of the Pacific
Coast district is running true to eco
decline in Washington, Oregon, and
decline did not develop until some
preston in the Northeast. All This
was entirely typical and easily fore
cast. In the southern section Of
California, however, the trend ,as
been greatly modified. Reaction has
taken the form of a pause IN growth
rather than any prolonged down
ward movement. In Los Angeles,
for exam ple. during the boom year
of 1919, business nearly doubled. But
in 1921 and 1922 it about held its
own. It is possible, OF course, that
some weakness may develop later;
but in view Of the industrial progress
of the locality, such a recession
should not be severe.
''I hesitate when in Florida" con-
tinued the statistician. ito forecast
definitely for California. First, be-
cause l am apt, to be mis-quoted by
some of the Florida enthusiasts: and
secondly, because love and believe
in the Pacific Coast. California nay
some day have population OF 49,
600, ,000--or perhaps more. 1t has
the possibilities of a great empire.
On the other hand, it has no monop-
oily of sunshine and it's more rapid
growth is due to the fact that Flor
ida has been asleep. However. I say
this as a friend OF California because
I want California to realize that dur
ing the next ten years it will have
more competition than 1t has had
during the past ten years. Trees DO
not grow to the skies and this ap-
plies to orange trees as we'll as to
every other specie. Little does CAL
ifornia realize the tremendous
orange paintings in Florida during
the past few years. These will come
into bearing almost at one time
about 1927. Beginning then, there
is bound to be tremendous struggle
for eastern markets between these
two states. ! want my friends
California to be prepared for the
flood when it comes.
California has thus far been sort
of immune from the great business
depressions." added Mr.. Babson in
This is due to the
great influx each year Of new peo-
pie with money. People who made
money in other states have been
carrying 1t to California. When busi-
ness in California would have fallen
off. this natural decline was offset
by new people and new money COM
ing from other states. Can this al
ways continue? I simply ask the
question and urge my good Califor-
mia friends to think about 1t. In IT
meantime, let me say that business,
taking the country as a whole, is
making an exceptionally good show
ing. The Babsonchart stands today
at S per cent. above normal compar-
ed with 10 per cent. below normal
wear ago today"