The Birmingham age-herald., 1923-10-15
MIDDLE WEST SAID
 TO BE IN BETTER SHAPE THAN EAST
Roger w. BabSon Doesn't Think Predicted Boom For
 1924 Will MateriaIize
By JAMES M'CLAINs Geased Wire To The Age-HeraId) CHICAGO, Oct. 14-The middle

CHICAGO, Oct. 14.-The middle west is in much better condition financially and industrially, than the east, according to Roger w. Babson. noted economist, of Wellesley Hills, Mass, who arrived here Thursday after a five-week tour of western states.
 The farmer of the middle west and west was hit first, but he has taken his licking and Is coming back strong" Babson declared. Its a different story in the east. Eastern manufacturers haven't had their licking yet, but they are going to get 1t.
 Babson made an extensive survey Of economic conditions in practically all middle western states, especially in Wisconsin, Minnesota Iowa. Ne braska, Kansas and Montana.
 With the exception of Montana, all of these states have turned the corner and are now financially on thelr feet, the statistician said 'Three-fourths of the farmers, who bought their land 20 years ago for about $40 an acre, are making money. It is the man who bought land for $20O an acre during the last five years and the one renting his farm who are in trouble. The renters are out of luck, and the only thing for them to do Is quit"
 Doesn't See Boom.
 Babson does not agree with Judge Gary, Prof., Irving Fisher of Vale and others that 1924 will be a year of booming business, he told the As sociation of Commerce Thursday. He warned that the Ruhr settlement will mean the flooding of this country with German goods and the closing or many eastern factories. Precau- tionary measures were urged.
 lie gave ten reasons for continued optimism.
 1. High point of production in steel and pig iron.
 Z. Increase in oil production.
 5. Record production of automo- piles in 1923.
 4. Record construction of homes this year.
 ,: Record production of iocomo- tives and railroad equipment.
 6. Record car loadings in 1923. '. Increase in retail sales.
 <. Savings and national bank de posits will reach record figure at the end of 1923. 9 Return of wages almost to war tune peak and the resulting tncrea sed purchasing power.
 national wealth.
 These, however, are only the sur race indications. Babson said, He ti9HSu " olHef IactorS, on which he bases his cautionary outlook for 1924 They are:
 |; Unsettled conditions in Europe, with most countries bankrupt and new wars threatening daily.
 2 Low wages in Europe and ability to sell manufactured goods here at less than 1t costs to prodnce them in the United States.
 5. Fixing of wheat price in Liver pool and resulting competition of American with European farmers labor. ei'S
 D. Tremendous amount American people are spending on automobiles
 b. Increase in contraction costs. which have made building invest ment unwise.
 z. Increase in wages, taxes and rents with subsequent cost of 100 10 zoo per cent for retailers to distri bute merchandise.
 s. Radical activity in political par ties.
 9. An indication of a concerted drive on the railroads by Congress.
 10. Too many people have the wrong attitude toward life. Peoplo are using their current earnings for food and amusement and are pledg- Ing their future earnings in order to buy. During the last Is months sa curities issued total more than sl1.- 900 100000. almost equal the war time issues for year. r
 Babson said that during tho next year he would rather buy western farm land than eastern manurac- turing stock.