Imperial Valley press., 1923-03-05

BaDSOn today released the Inlfu III
stallment of his annual survey of
business conditions in the United
States and Canada. He herein
treats of what he calls the "Indus
trial West that great section i'm
mediately tributary to Chicago in
Guiding Indiana, Illinois, Iowa, Mis-
souri,, Michigan, and Wisconsin.
"These states were once wholly
agricultural, but are rapidly chang
ing into an industrial section. New
factories are springing up every
day-the younger generation are
leaving farming for building, manu-
featuring and trade. Yet the total
area under cultivation continues to
hold its own.
Business Barometers
Every section OF America, y
says Mr.. Babson, "has its best bar
ometer of business. For New Eng
land it is the number of spindles in
operation--for Pennsylvania the
number of blast furnaces, for New
York the total foreign trade, etc.
The best barometer for the 'Indus-
trial West is the total car loadings
+at Chicago. These since January
IL, 1928, are running well ahead of
the corresponding weeks of 1922
and compare we'll with the total ear
loadings for the entire country.
For the current month of 1922 the
net car loadings were about $780,
900. For the current month of 1923
the car loadings will show figures
over 10 per cent greater, possibly
final figures will show an increase
of 100000 ears. Moreover, Of this
increase only 10000 were of an in
crease in coal loadings. In other
words-if the car loadings of the
current month are 100000 only
about 100000 of these will be coal
cars compared with over 100000 coal
cars loaded during the same period
in 1922. This shows that the great
increase is in building materials,
live stock, merchandise, etc-there
being no appreciable change in
grain car loadings. 1t is true that
these figures apply to the entire
country; but proportionately they
also apply to this section of which
Chicago is the center.
Increase Noted
"The middle cities and states are
recording increases of from 10 to 50
per cent over a year ago. South
Bend, Indiana, leads compared with
last year, but Des Moines, Iowa :;
Peoria, Illinois, and Kalamazoo,
Michigan, are closely catching up.
Indianapolis and Terre Haute are
not doing as we'll as they should do,
owing to some unknown reason. The
largest cities of this section-such
as Chicago, st. Louis, Detroit and
Milwaukee-are reporting about the
same as last year. Some think this
is due to the natural lag of the
large cities; but others believe that
the medium sized cities are due for
a much larger proportional growth.
/ am inclined to this belief. If so,
the best opportunities during the
next few years will be in the medi-
um cities which have better avail
able labor, lower rents, and pleas
anter living conditions. The heavy
increase i'll railroad freight rates
and the development of good roads
should also help the medium sized
city.
"The automotive industry which
is largely located in this section con
tinues to thrive. Many talk about
this industry reaching point of
saturation. Of course, it will some
day; but when that time comes it
will require fully as many persons
as are now engaged in the industry,
to supply the cars and parts needed
for requirements in order to keep
the market saturated. 1t is true
that some of the smaller companies
will be forced out of business and
all companies will tend to build
lighter and cheaper ears, but the
industry ass whole will continue
prosperous for many years to come.
This means much to Michigan, Him
ois, and Indiana. 1928 will be ii
good automobile year.
Chicago Area Building
lHiS scctloi tributary 10 Nnlcd-
go is also profiting from the great
residential building boom now on
throughout the country. | have al
ready referred to the cause of this
boom-namely, the exodus of people
from the cities to suburbs and the
country due to the convenience of
the automobile. The first industries
to benefit from the building boom
were the cement and brick people,
then the lumber and steel interests
began to prosper. Now the copper,
paints and other industries are pick
ing up. This sequence is invariably
true-although when the boom cul-
inmates and the turn downward
comes, the cement and brick people