Evening star., 1926-06-12
BY ROGER w. BABSON.

BABSON PARK, Mass, June H.
Undoubtedly one factor in the decline
OF general business in the last few
months has been due to the abnormal
weather conditions. The four great
est factors in trade are: 0) Necessary
food, shelter and clothing; (2) specu-
lation and the desire for profit; (3)
style and the instinct Of imitation;
a. weather conditions. Weather con
ditions are not only factor in de-
termining what people buy, but also
great factor in determining when
people buy. Trade in the North not
only demands a Spring season, but 1t
demands that the Spring season
comes on schedule. If the season is
late, this is almost as harmful as If
the season did not come at all.
Therefore. ii Is safe to say that the
action Of the Babsonchart in dropping
from Is per cent January l to per
cent at the present time is largely
due to the abnormal weather condi-
tions.
Merchants are now approa ching
Summer weather, carrying heavy
lines of Spring goods. Many stores
are endeayoring to solve the problem
with radical mark-down sales while
some merchants are going into bank
ruptcy. Owing to the fact that stores
are heavily stocked with merchandise
which they have been unable to move
owing to weather conditions, they
now have no money with which to
buy a normal amount of Fall goods.
Hence, wholesalers and jobbers are
handicapped in getting business,
which in turn affects mills and fac
tories. This weather condition. added
to the short skirt. bobbed hair and
various other radical style changes.
have played havoc with many lines
Of business.
The Farming Situation.
The farmers are especially upset.
Ever since the war the wheat-raising
section Of this country has been com
planning. For a short time last year
there was an increase in prices which
gave ray OF hope but this was found
to be Of only temporary benefit. Those
who have been following the discus
siOns at Washington must realize that
the farmer has real problems, even
though a solution Of these problems is
not in sight. The farmer would not
complain il the prices OF his products
rose and fell with the prices of the la
Dor and supplies which he must buy.
To have the price Of what he has to
sell go down and the price of what he
buys go up Is a situation which he can
stand only SO long. This is the condi-
tion which he faces today. The Gov
ernment farm product index number
last Summer was 1863 compared with
100 for all commodities with d spread
OF points I'm favor Of the farmer. In
January this year the farm index
number was 152 compared with fig
ure for all commodities OF 1876 or 4
points against the farmer. Now the
situation shows farm index number
OF 145 compared with a general index
number of 1853, or points against the
farmer. OF course, the situation may
change at any time in favor of the
farmer. but the trend today is very un-
satisfactory.
However, the farmers courage was
good the first of April, and they en-
tered the Spring season with hope and
determination. The constant back
wardness Of the season. however. WAS
very discouraging. The farmer was
late in his plowing, late in his plant
ing, and his crops are late today. The
prophecies floating about that we are
to have a cold Summer with early
frosts naturally disturb him further
and make him wonder where he is
coming out. OF course, all these
prophecies may be wrong. With sat
isfactory Summer weather crops catch
up very quickly, and 1925 may be the
best year that the farmers have had
since the war. The present uncer-
tainty. however, has retarded pur-
chasing on the part Of the farmers
Thus business has been harmed by
weather conditions in the farming sec
ttOnS in the same way-although from
an entirely different reaSon--as 1t has
been harmed by weather conditions In
the industrial sections.
A Cold Summer Ahead?
'The forecasts OF cold Spring and
Summer are based on the theory that
the temperatures of ocean currents
change with the variations in the