Evening star., 1924-12-31
Varo,v Profit Margins; Europe Makes Steady improvement

of the country will suffer from this
world readjustment OF markets.
However, these sections will be
those that have benefited most dur
ing the past 10 years, so that the net
result will be fair all around. The
particular industries that suffer will
be those depending upon hand labor
rather than those that prosper
through great mass production. More
over, these will be in certain indus
trial sections OF the East rather thar
the great viriie,i agricultural sections
of the Central West and South
Offsetting this one disadvantage
we have better conditions of the Cen
trail West, the South and other agri-
cultural sections The Northwest
which has been suffering for some
years, should have a distinctly better
year in 1925 than It had In 1924. This
will also be true OF many other. farm
ing sections Of the United States
The farmer Is once more coming into
his own, and, given fair growing
weather, 1926 should be better year
for him than 1924. As the farmer /.
the foundation of prosperity and tht
basis of progress. this should fore
tell prosperity for the Nation as 6
whole.
South Facing Splendid Year.
The South especially is looking for
ward to splendid year in 1925. The
1924 cotton crop will probably reach
100000 bales. and perhaps, 13,300,-
900. Up to the time of writing this
report the dry and warm weather ir
the South has been very propitious
for the next cotton crop, and every
thing now is favorable. OF course
the boil weevil is still doing busin ess
but we are learning more and more
to control il, both directly through
spraying and fertilization and midi
rectly through diversified crops. With
the Dawes plan under way, ths for
eign consumption of cotton should In
crease, and with a readjustmenr Of
wage scales among the textile lmills
OF this country, domestic cpnsump
ton should. increase Hence, Ws face
year of good prices. stimulated ,by
an active growing demand.
The fact is that 7 am very hope
full for the entire South. Surely, the
South has turned the corner. and
what has happened to the West dur
ing the past 40 years is likely TO
happen in the South during the next
40. | also am very hopeful fer the
Pacific coast, believing that my
grandchildren will see the largest
city in America on the Pacific coast
and the worlds trade carried on the
Pacific Ocean rather than. on the At
lantic. IT will take time TO arouse
the hundreds of millions of people in
China, India and the Far East, but
sooner or later they will come into
the market as the worlds greatest
consumers of goods.
Suggests Policy for 1928.
Two years ago, at our Summer con
terence at Babson Park. the late DIR.
Steinmetz was answering questions
in the auditorium. Some one asked
whether he thought our present
civilization was due to follow that
of Greece and Rome into decay and
oblivion. Whether or not our pres
ent civilization is going to pieces"
answered the doctor, depends very
largely upon your digestion" 1t is
much the same with the crop of mis-
cellaneous business prophets who
take the stump at this particular sea-
son of the year. Their findings de
pend largely upon the condition of
their business livers, and their con-
clusions are drawn to a great extent
from the figures on their own balance
sheets.
Many financial writers are, pooh
pooling foreign competition and see
ing only the improved conditions in
this country and other nations of the
world. They are preaching a great
bull year for 1925. Then we have the
other group which is pessimistic, re-
fusing to recognize the better con-
ditions and pointing only to the in
equalities existing throughout our
YlA
as a whole. This group is pessimistic
as to 1925. Personally. 1 believe that
1925 is year when we should all let
nature take its course and neither
artificially stimulate the situation
nor unnecessarily hamper develop
ment. If we attempt artificially to
stimulate business now and bring
about a period of imitation, we GER
tainly will have a severe reaction in
1925, because the great readjustment
period following the World War has
not yet been completed Certain in
dustries and sections have been
thoroughly readjusted, but other in
dustries and sections have not.
Sterilization Vital to All.
1 should feel very badly to see any
sudden squirt In general business and
commodity prices similar to what has
been witnessed on the Stock Ex-
change, On the other hand, If we
will let nature take it's course and
let the readjustment, which is now
about 75 per cent completed. run it's
course, then we can gradually enter
into period of prosperity which
should last us for some time. II so,
1925 will become a year of stabiliza-
tion, a year when wages could be
cf q Sry tr,1n nyte -
prices stabilized, and, most of all, the
hearts OF men stabilized. Therefore,
can't we make "stabilization" the
watchword for 1926?
Let US forget the bull marllets and
the bear markets. Let us cease TO
try to artificially stimulate or arti-
ficially depress. Let eus not try to
prove this or that, but let US be con-
tent with the middle of the road.
Then we shall have completed in a
natural way the great readjustment
period and be preparing ground for