The Western news. [volume] (Libby, Mont.) 1933-current, 1941-01-02
Roger W. Babson Reports On
Business Outlook For 1941

Continued f
ferent war. The building of hum
bred thousand-do airplane does
not take much material, but rather
labor, skill, and time. 1t is true
that we must enter a shipbuilding
of naval vassels and
merchant ships-but otherwise,
there is nothing to interfere with
home building. /, therefore, fore
cast that residence construction in
l94l will show an increase of near
ly 20 per cent over 1910.
Presumably, it will cost a little
more to build a home in 194l than
il has in the past few years, but
there is a reasonable available sup
ply of building materials. Besides,
masons, carpenters, plumbers, and
painters are primarily interested in
their years income rather than
their hourly wage. Therefore, if
they can be sure of finding work
every day they should be content
with present wages. Another thing:
During World War |. there were no
such available funds as there are
today. 1t was then impossible to
borrow government money for the
building of homes All the condi-
tions are entirely different now
Hence, | disagree with those who
say that BODYBUILDING will be shut
off in l94l.
WHAT ABOUT CONGRESS?
1g41 will witness a different Con-
gress than has ever been seen be-
fore. This is a very rash state
ment, but you wait until the year
is over. 1t will be neither brave
Congress nor a rubber-stamp Con-
gress. II will be a paralyzed Con-
gress. 1t just will not know what
to do, or what not to do, except
to spend money. It will want to
help Great Britain, and yet sees SO
much havoc ahead for both Great
Britain and Europe that it will
dread getting into the mess. Ger
tainly Congress will be in no mood
to vote for declaring war against
Germany, Japan, or any other ma
ton. 1t will be bewildered and
afraid to fish, cut bait, or &c
ashore"
The new Congress is a conserva-
tive body, although it is democratic
1t not only breads war for its own
sake, but believes that if we enter
World War II, we really will emo
up with dictator. This, moreover
is not merely third term" cam.
naign talk. There is latent dreac
of this among the labor and farm
/ ing elements as we'll as business
men. All groups are beginning t.
see that special legislation-start
ing with protective tariffs fit,
years ago-has led from one thini
to another until the cure is worse
than the disease. They wonder i
the answer may not be to wipe al
out and start over again.
COST OF LIVING
Perhaps the most important fig
ures for readers to watch in l94l are
\ those on the cost of living. During
World War |. the cost of living
increased greatly; but the price.
of farm products went up with thu
prices of manufactured goods. Since
then, however, the prices of farm
products have fallen 60 per cent
while the prices of manufactured
products dropped only 80 per cent
Prices may increase slightly NOR
during 194l, but need not do SO i
no group kicks over the applicant
We are now asked to supply onl.
Great Britain with food and goods
while during World War |, we hat
to supply France, Italy, Russia
Japan, and other nations in add
ton The airplanes, which Eng
land needs most, do not take
large amount of raw materials. Thi
applies as well to many of our othe
exports although not to the ship
which England must build here
Concerning food products, whic
England will need in large quaint
ties, we already have an exces.
: Certainly there is no fear of
: shortage in 194l of sugar, which i
1920 sold at q cents a pound; {
] wheat, which in 1918 sold at $2.3
per bushel Perhaps most impol
tant of all is that we have learne
. much about controlling prices.
WHAT ABOUT WAGES?
In certain lines such as anon
tool makers, shipbuilders, and plar
:. makers, there will be wage increa
es in l941 If by chance the nun
Der of unemployed is reduced fro
!, 100000 to a normal figure of 4
100000, then other wage increas'
!. are inevitable. Generally speal
{, ing, however, the cost of livir
should be the answer to the wal
! question, If the government &C
; sanely about taxes and if emplo.
}. ers are reasonable about profit
then improved manufacturing pr
7 cesses should keep down the a
|, erage cost of living. Certain mat
rails, for which there is a gre
! foreign demand, will increase
;, price, but other items, like cotto