Imperial Valley press., 1923-09-04

WELLESLEY HILLS, Mass, Sep
tember 4.-Roger w. Babson today
gives his monthly review of general
business conditions. Babson is not
bullish on the immediate outlook,
| believing rather that we have be-
gun in earnest to complete the per-
iod of readjustment' which was
started in 1919. He insists, how
ever, that this completion will
clear the decks for real prosperity
in the future. His statement is as
follows:
Cuisines is beginning to feel
the shdck of President Harding s
death which so stunned the Amer
lean people. Although there is con
ISOLATION in the fact that his sue
cessor, Calvin Coolidge, has had
great administrative experience, yet
a shifting from one President to
another must break many connec-
tions and change many plans. The
first people to feel the results of
this change are the retailers. Retail
sales fell off Immediately following
President Harding's death and have
not yet resumed. Hence, wholesale
buying is on only moderate scale.
Buyers are not inclined to purchase
beyond their immediate needs. The
people are also awaiting the size
of crops and the prices of agricul-
tural products.
South Best Now
"The best immediate business OPP
portunities are believed to be in
the south. Although current cotton
reports are somewhat disappointing,
yet the good prices promised should
make the South prosperous during
the next twelve months. Given the
right kind of weather for the 0al-
ance of the season and current
prices, the south will add greatly to
its wealth and purchasing power.
The northwest, however, is handi-
capped by the European farmers
who are raising more grain every
year, which naturally reduces our
exports of cereals. Wheat prices
ihave shown no material change
recently; but corn prices are soft
ening, althoought this softening is
only natural as the new corn crop
approaches maturity.
''Iron, steel, petroleum, copper,
wool, and certain other basic com
modities are declining in price, but
this is not an unhealthy sign. The
great difference in the level of
farm products and manufactured
goods must be eliminated sooner
or later. The price of agricultural
products must come up and that
of manufactured goods must come
down. Therefore, the present read
justment movement is healthy and
good for all of us in the long run.
This readjustment will be accom-
plished by a reduction in the prices
of raw materials, an increase in the
efficiency of labor, and a reduction
in overhead and selling expenses.
"The unemployment which is
threatening certain industries, on
account of foreign competition,
should make labor more reasonable.
On the other hand, indications are
that the wage earners in those mon
opOlies such as transportation, coal,
etc, are still greatly tempted to
make trouble. Certain of the rail
road unions are about to make
drastic demands for wage increases,
restoring wages to what they were
at the peak following the war and
prior to the cut July l, 1921. Con
sidering that the dollar of 1913 is
oow worth about 81 cents compar-
ed with only 40 cents in May 1920,
and only about so cents in the
spring of 1921, these demands on
the part of labor for a restoration
of war time wages seem very un-
just.
Inevitable Law
"Bank clearings have definitely
turned the corner and are declin-
ing; mail order sales may have
again apparently reached max
imum; the demand for iron and
steel is slackening. Crude oil is
piling up in Pennsylvania, Oklaho,