Evening star., 1925-04-04
SOUTH TO OUTSTR|P
WEST IN BUSINESS
Babson Compares Sectional
Trade Outlook for Next
Few Years.
BY ROGER w. BABSON.


Special Dispatch to The Star
BABSON PARK Fla, April A
few days ago William G.. McAdoo Wis
tied me here at my Winter Offices With
him he brought John Shelton Williams,
former controller of the currency. Mr.
McAdoo is from California and Mr. Will
liams is from the South They are both
enthusiastic about the future of their
own sections, and their discussion
brought up the question as to which
Will develop the most rapidly, the Far
West or the South.
South to Build Faster.
As boy shows a greater percentage
OF growth than a mature man, it is
only natural that certain new sections
of the South will grow more rapidly
during the next few years than will the
Pacific coast, since the latter has al
ready had such great growth during
the past 90 years. The DEVELOPMENT
which the Pacific coast has enjoyed
during the past decade will be witnessed
In the Carolinas Georgia. Florida and
the Gulf States during the next decade
While the South will benefit from its
climate, natural resources and trade
with Latin America, the Pacific coast
will likewise benefit from these three
and other factors.
In addition, the Pacific coast has the
advantage of trade with China, India,
Japan and the Far East People who
have not visited China and India fail
TO realize the hundreds of millions of
people there who lie dormant, only
waiting to be awakened When these
people finally arise from their slum-
bers, they will become tremendous con-
Sumers of American goods We then
will see the Pacific Ocean take the place
OF the Atlantic Ocean as the center of
the worlds trade.
Great Orient Possibilities.
The latent possibilities in the Orient
are beyond the realm of statistics to
portray. All three of the Pacific
Coast States will benefit greatly from
this oriental awakening. The great
financial and industrial undertakings
in the Orient will be launched from
the Pacific coast, and | believe that
ultimately the largest American city
Will be in California, Washington or
Oregon. Already Los Angeles has be-
come the second port in America
considering both coastwise and for
egn trade: San Francisco has the
finest harbor in either North or South
America. while Seattle is nearer Chi
ma than either of these other two
cities.
Conditions in Other Sections.
Considering all lines of industry,
and all sections of the country, con-
ditions certainly average up better
today than they did a year ago. This
is shown statistically by the Babson-
chart, which today stands at per
cent above normal, compared with l
per cent above on January 1, and 6
per cent below normal a year ago. 1t
however, is true that the stock mar
ket is one of the factors making up
this chart, and is doubtless respon-
sible for its recent high point.
Were it not for the high stock mar
ket prices, the chart would probably
be just about normal at the present
time, and possibly it might be a lit
tie below normal, although only a lit
tie. Thus without the stock market,
the other factors making the Babson-
chart would average up better than t
any time during 1924
Slow Growth Preferable.
Personally, 1 am glad to see busi- |
nesSNimprove slowly, rather than too
rapidly. If commodity prices and gen.
eral business had jumped up like the
stock market, there surely would be
a reaction which would hurt every
one. We still should remember that
a terrific imitation took place during
the war and that this imitation has
not yet been fully readjuSted. There
fore, although business has seen its
worst and 1925 will be better year
than 1924, yet the recovery should
be slow and orderly. Manufacturers
and business men must not expect
too much from 1925.
Excess in Production.
There continues to be an excess of
production capacity, and it will take
time for consumption to catch up.
Those who are patient, reducing over
head and keeping down prices, will
ultimately have a good volume of
business: but all must continue to dig
for sales and be content with small
profits. At least this is the conclusion
which 1 have reached after very
careful survey of conditions in 4S