New Britain herald., 1923-08-31

Quoted Locally Only BY The Herald.
wellesley Hills. Mass. Aug. 31.--
Roger w. Babson today gives his
monthly review of general business
conditions. Mr.. Babson is not bulish
on the immediate outlook believing
rather that we have begun in earnest
10 complete the period OF readJust-
ment which was started in 1919. He
insists, however that this completion
will clear the decks for real prospect
ty In the future. His statement is as
follows:
Business is beginning to feel the
shock of President Harding's death
which SO stunned the American peo-
pie. Although there is consolation In
the fact that his successor, Calvin
Coolidge, has had great administrative
experience, yet shifting from one
president to another must break many
connections 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 a 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 agricultural
products.
THE best immediate business op-
portunities are believed to be in the
south. Although current cotton re-
ports 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 balance of the sea-
son and current prices, the south will
add greatly to its wealth and purchas-
ing power. The northwest, however, is
handicapped by the European farm
ers who are raising more grain every
year. which naturally reduces our ex-
ports of cereals. Wheat prices have
shown no material change recently;
but corn prices are softening, al
though this softening Is only natural
as the new corn crop approaches ma
turity.
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 manufac-
tured goods must come down. There
fore, the present readjustment move
ment Is healthy and good for all of us
in the long run. This readjustme nt
will be accomplished by reduction in
the prices of raw materials, an in
crease In the efficiency of labor, and
q reduction In overhead and selling
expenses
The unemployment which is
certain industries, on ac-
count of foreign competition, should
make labor more reasonable, On the
other hand, indications are that the
wage earners in those monopolies
such as transportation, coal, ETC., are
still greatly tempted to make trouble.
Certain of the railroad unions are
about to make drastic demands for
what they were at the peak following
the war and prior to the cut July 1,
1921. Considering that the dollar of
1918 ia now worth about 81 cents
with only 40 cents in May
1920 and only so cents In the spring
of 1921 these demands on the part of |
labor for a restoration of war time
wages seem very unjust.
Bank clearings have definitely
turned the corner and are declining; |
mail order sales may have again APP
parently reached a maximum; the de-
mand for iron and steel is slackening. |
Crude oil is piling up in Pennsylvania,
Oklahoma. Kansas and Texas. People |
scramble to buy advancing markets, |
but refuse to buy on declining mar
kets. AS the result, the decline in
normal as the previous advance went |
above normal. This is unfortunate; |
but being in accordance with the law
Of action and reaction, 1t is inevitable. |
This further explains the current de- |
crease In retail buying and the conse-
luent falling off in the orders OF |
and jobbers. When we |
are in a bear market prices always de-
cline to abnormally low figures ire
,pective of merit or the cost of pro-
iuction.
However, these are optimistic signs
+ studied with the long pull In view
although they naturally affect the |
Index, which Is today 10 |