, 1923-02-25

LAS New England was the first
section to be hit by the depression
and the first to recover" says Mr..
Rabson, so New York. Pennsylvania
and Ohio being the second section TO
be hit, naturally is the second section
to V In 1920 the center of the
depression was at Bridgeport. Conn;
but by 1921 the center of depression
had moved to Akron, Ohio. From
Connecticut TO Ohio. however. bust
ness is today in fair shape. The
steel industry IS bach to SIS per cent
of its capacity; coal mining is very
active: the carpet factories and tex
tile mills are exceedingly prosperous;
the agricultural sections and the
numerous small factories Of these
states are getting on much better
New York City is feeling fairly
optimistic. The hotels are full n
the retail stores are doing n good
business. There, however, is no such
riotous spending of money in the
restaurants and theatres as during
boom times. The principal industry
OF New York City is banking and job
bling. The bankers are not especially
optimistic owe the prospect OF lower
money rates for 1929, excepting those
who sell bonds. OF course, as none
rates decline the demand for bonds
increases and bono prices strengthen.
Certain banks have already been
Obliged to reduce their dividends and
more reductions may be expected by
other institutions.
The jobbers OF New York City
are facing soEle uncertainty. Their
work is very largely importing and
exportinE. The tariff has hand
capped them considerably. notwith'
standing the optimistic figures on for
eiGn trade which the Department OF
Commerce Is Issuing. Whatever the
figures may show, these exporters
and importers find 1t much more df'
fcult to do business. This, OF course,
means a smaller margin OF proht for
all concerned. However, there has
been a distant feeling for h better
throughout the east since President
Harding's message on the British
debt payment plan. In the MIDST OF
all of his talk about the cancellation
of debts, Reputation of contracts, &C
companied by a general depreciation
of foreign bonds. It surely was stimu
lating to have the British come FOR
ward and fatty state that they are
determined 10 pay 10 AN+PN $500
interest in full. Considering that Of
the SIC. OO0. 900 900 owed to the United
states over one.half of it was by
England, this is n tremendous step
toward the restoration of inter
rational confidence and commerce.
The general impression in the east
today is hat in return We shoul
now help England and give her all
--..IsN rra ran fn nnahln her TO
buy our farm products. Now is u
chance for us to demonstrate that II
pays for a.nation to meet her obliGa'
tons and protect her creditors. In
view of this md other events, the
keenest bankers of New York City
look for a rather active stock market
during the year 1928, believing that
the market will swing both ways be
tween very broad limits, thus giving
us both higher prices and lower
prices than we saw in 1922.
Every time that I visit the Mo.
hawk Valley of New York State I
am more impressed with its great
activity and its potential
I should not be surprised to see the
country, lying between Albany and
Buffalo. traversed by the New York
StlLI IL III vest oAlulb dllh Nllt
Erie Canal. become the greatest
manufacturing section of the United
States. Its climate is ideal: its labor
conditions are good; it abounds IN
agricultural resources, thus assuring
a reasonable cost of living; the great.
est bitum,nojIs coal mines of the
country are located to the south and
the greatest number OF available
water powers are located to the north.
These conditions are certainly ideal
for general manufacturing OF all
kinds. This valley is close not only
to our great American cities, but it is
well located for export trade.
I'm case we ever establish re
ciprocity with Canada. this would still
further help the states Of New York,
Ohio, and Pennsylvania. Moreover,
let me add that we do not appreciate
our Canadian opportunities. Canada
is a wonderful country, and both
Canada and the United States are
making a great mistake in erecting
tariff walls. The United States
should freely purchase raw materials
from Canadn who should reciprocate
by buying manufactured goods OF us.
The Creator expected such reciprocity
TO AXE place and both countries are
making a great mistake by trying to
block thu natural flow of commerce.
"OhIo is coming along slowly. but
surely. OF course, the agricultural
interests OF Ohio ave suffered severe.
~ the past two years. but the indus.
tries Of the state are so diversified
that Ohio has not suffered like states
further west. There, however, Is less
activity in Ohio today than in New
York or New England. Ohio. how.
over. Is a wonderful state and has
.Bome wonderful cities. These cities
ARE not only well located and con
Ftructed. but they are peopled with
men and women having vision,
energy, and dos!re to do something
worth while. Hence, I am very
optimistic for Ohio in the long run.
My reaction in Pennsylvania was not
so good. Philadelphia. Pittsburgh,
and some Of tho other cities arc doing
very well. but there seems to me q