, 1923-10-07
USINE TRAVELLING
SIDEWISE, is CLAIM
Roger W.. Babson Provides Interesting Review For
First Nine Months of Year; Readjustment
to Continue, He Asserts

of tho cotton farmer this year is IS
1929. The corn belt is practically
ms well on as It was last year as far
MS purchasing power is concerned.
Corn prices for December delivery
are quoted at 70 cents n bushei
while production is indicated at a.
076. 00o. 900 bushels which gives a re-
turn TO the corr fermer of S2.214,-
100 900 compared with last years.
revenue of s2.11o.2 2o. 900. In other
words. the returns to the corn
farmer in total r actually higher
than they were last year.
at is the wheat farmer who's in
come has beer greatly reduced and
It is his story that has colored tho
whole agricultural outlook in the
mind Of the general public. The
combined production OF winter
wheat and spring wheat will be
about Ts9. 000, 900 bushels. It should
produce ss2s,45O,oo0. figured on the
basis of s1.05 a bushel quoted for
December deliveries. Figures for
last year were S62 .091 900 bushels at
S1.23 a bushel with n total return 20
tho wheat farmer of s1.060.3 72 900.
This mean that the wheat grower
realizes an average of 22 per cent
less han he did a year ago.
THE farmers difficulty these
last two years has been due to the
abnormal spread between agricul-
turai prices and industrial prices.
This situation is gradually Fighting
itself. So far. tho adjustment has
been affected by the lowering of the
industrial prices rather than the In
crease of income to the farmer. This
balancing tendency may be inter
rupted from time to time by diver
gent movement of either group but
will continue over the next few
years until n more equitable adjust.
ment has been. reached between the
prices Of the things the farmer has
to buy and the things the farmer
has to sell. While we are not out
of the woods ms yet. by any means.
the worst is over We may be
thankful for that.
'"The slackening of general indus
trial activities has been duo in a
measure to increased foreign com
petition. This OF course has been
felt in the manufacturing fields and
has not as yet reached the retail
trade which is running about Is
per cent above n yea ago. The fact
that goods are moving to the con.
sumers in tremendous volume is In
Dictated by the figures for freight
car ioadlngs. which have continued
to make new records during the
past three months. In fact. during
the week of September l there we're
more cars loaded with merchandise
and sem over the rails than any
previous week in history. Retail
trade is still good but will no doubt
reflect to some extent the slacken-
ing which occurred recently in the
business of manufacturing.
AN influx of foreign made mer-
chandise. a steady stream of which
is now going over our tariff wall.
will tend TO keep general business
here from any activity which could
be characterized as a boom. because
of the foreign exchange situation
and general chaotic financial condl-
tons abroad. 1t is impossible for the
American manufacturer to compete
with low cost foreign made goods
on an even footing. During the
next IS months. however. this situa-
ton should adjust itself to a con.
siderable extent.
General business activity, Mt the
first of the year" concluded Mr..
Babson, was running at 10 per sent
above normal. A slight slackenlng
in February gave way to another
rise to approximately the same
point in March. By midsummer we
had crossed the normal line and
gradually worked down to n point
8 per cent below normal by August
L. Our present position is 10 per
cent below normal"
Present indications are that gem
eral sidewise movement with orderly
reimbursement will continue for the
remainder OF the year.