Perth Amboy evening news., 1923-07-28
SHOWS
GREATEST NEED
Warning is Given Despite Sta
BILE Conditions in Business
and Industry

WELLESLEY HILLS. Mass, July
2S.-Roger w. Babson was today
asked why 1t is that he is not so
optimistic on the general business
situation when so many of the ba-
rometers of business indicate great
prosperity. The optimistic forecasts
of prominent bankers, manufacture
ers, and financial advisors were call
ed to Mr.. Babson's attention and
he was frankly asked why a warn
ing was needed under present stable
conditions. is reply was as follows:
1T is true that a number of the
barometers of business are distinct
ly favorable at the present time. In
order to be absolutely fair to every
n / even took pains to enumerate
these in a published statement only
a month ago. The merchants are
not over stocked; manufacturers
have not been specializing In raw
material; railroad earnings are ex-
~ceptionally good; and our great in
dustries are apparently on a sound
basis. My critics are correct in their
statement that surface indications
point to a wonderful business this
fall, and perhaps two or three years
of rising prices. / realize these ris-
ing figures as well as anyone and
it is very hard for me to sound a
warning while so many are so opti-
mistic and so contented.
MY reason for sounding a warn
ing is two-fold. First, the Babson-
chart of business conditions shows
clearly that the period of r~eadjust-
ment is only about so per cent COM
pleted, and that further ~readjust-
ment is inevitable. Second, that the
attitude of the younger generation
Is distinctly harmful to the present
situation. That is to say, my warn
ing is based both on statistics and on
a study of the spiritual forces I'M
derlying business. OF course, in
reality, the spiritual or moral forces
are by far the more important as
they really determine what statis-
tics and the chart will later show.
The attitude of the people bears the
same relation to the Babsonchart
and to statistics that the tempera-
ture bears to the thermometer, or
as car-loadings bear to railroad
earnings.
II have Offices in twenty-six large
cities and correspondents in two
hundred other cities. In every To-
cality l find that the average man to-
day is interested only in spending.
PeCcle not only want to get rich
quick, but without working. People
r buying recklessly without any
thought about where the money is
coIIing from with which to pay.
Our young people seem to have the
idea that dollar bills grow on trees
and all they have to- do Is to pick
than off. Almost no one wants to
work. Very few want to produce.
Earnest and industrious manual la
borers, such as we had twenty-five
years ago, are almost an unknown
quantity. Everyone wants to ride
in the cart and no M wants to pull.
Our percentage of producers is
steadily decreasing and the percen-
tage of middlemen is steadily in
creasing.
such conditions cannot continue
forever. A dog may live on his tail
for awhile, but it cannot continue
this process indefinitely. People
may for a while get a living doing
one anothers washing, but after the
clothes are worn out there will be
no washing to do. A certain num-
Der of people can exist as middle
men. Middlemen are a necessity
and serve a valuable economic func-
ton, but Americas great need is
producers, especially men and wo-
men filled with the desire to produce
and with the joy of production. AM
erica's great need Is a revival of the
joy of work. Americas great need
is a revival of the desire to serve
Americas great need is a revival of
the habit of saving.
II am not fearful for America in
the long run: but rather ! am a
great optimist on this country and
the people of this country. My love
of America causes me to issue the
warning that the attitude of the av-
erage young person today is not
right toward his or her work. A
doctor is not friendly to his patient
if he blindly shuts his eyes to his
patients disease. One cannot be a
rue friend of the United States by
blindly shutting his eyes to the
wrong attitude of the generation
toward industry, service and thrift.
1t is this wrong attitude which has
already caused business-as indicat-
ed by the Babsonchart-to decline.
The chart today stands at 3 per cent
below normal compared with 1 per
cent below normal at the beginning
- H. 100