Evening star., 1924-11-22
BUSINESS FEARS
HERE D|SS|PATED
BabSon Declares He Finds
Conditions Satisfactory and
People HAPPY

Business conditions in Washington to-
day are much more satisfactory than
has been the case for the past two
years in the opinion of Roger w Bah
son, prominent economist of Wellesley
Hills, Mass. Mr.. Babson has made a
study of business conditions in the Cap
ital during the last few days and finds
the situation much clearer.
"A year ago" he said, there was
great fear on the part of bankers and
the more conservative interests that
Washington was becoming overbuilt. II
the Democrats had been successful III
the last campaign. this might have been
true: but Washington real estate in
terests and merchants are now safe for
another four years. The only danger
facing Washington today is the cramped
condition of the boundaries. Congress
should do something either to enfran-
chise the District OF Columbia or else
to extend its boundaries"
Wages Reach Peak.
Mr.. Babson declared that the i'm
proved farming situation in the West
will have a direct effect on d much
better feeling in Washington during
the next two years. Easy money con-
ditions, he said. will also help the far
ners as well as the real estate inter
ests in Washington and vicinity, adding
that it looks as if wages have reached
their peak for the time being. especially
in textile and building trades. This, he
said should also be beneficial TO Wash
ington and its permanent and better
interests.
Mr. Babson found that retail prices
in Washington stores compare very ia
vorably with those in the &c other cities
where statistics have been compiled by
his organization. Washington mer-
chants, he said, are not overstocked and
can therefore take advantage OF any
market declines in merchandise which
may come about. He looks for a very
good Christmas business in Washington
next month.
Sees Power Consolidation.
The economist found considerable
interest among investors regarding
the violent activity" on the stock
exchange in New York, during the
past few days. He gave as his opin-
ion regarding these securities the fol-
lowing statement: High-grade tax
able corporation bonds may be tenn
porarily rather high. Moderate re-
action is expected with ultimately
higher prices next year. High grade
non-taxable bonds are, however. still
a purchase, and will ultimately sell
at considerably higher prices.
Many stocks are still purchase.
Although selling at higher prices
than before the presidential election,
they are now a safer purchase even
at the slightly higher prices. 1t is
worth the difference to have the
political situation clarified. Public
utilities are where the railroads were
75 years ago, when one was obliged
to change cars five times and travel
partly by water in going from Wash
ington to Chicago. The present power
systems are destined to be consoli-
dated into the great superpower sys-
TENS the same as were the individ-
ual railroads more than half CEN
tury ago"
Says People Here Happy.
Mr.. Babson said the copper stu-
alton will be benefited by acceptance
of the Dawes plan by Europe, whie
both domestic and European CoL-
sumption should greatly increase dus-
ing the next few years.
Let me say" he concluded, that
during the 25 years that l have been
visiting Washington L have never
before found the best people of the
city so happy with the situation as
they are at present. Irrespective of
politics, there is a feeling of thank
fulness and confidence in the city
which has not existed for years.