New Britain Herald Newspaper, October 7, 1922, Page 13

“INFLATION,” CAUSES IS DISCUSSED BY ROGER BABSON ‘Wellesley Hills, Mass., Oct, 7.—Dis- cussing the statement of certain bank- ers that the country is headed for another period of inflation, Roger W, Babson today issued the following statement from his statistical olflcen at Wellesley Hills: “For readers who are not bankers and economists, let me first explain In a simple language, what {s meant by inflation. Men who are acquainted with the Babsonchart of business con- ditlons know it s made up of two lines—Arst a normal line, represent- Ing the permanent growth of the country which looks like a simple up- hill grade and a second line which looks like the outline of hills and valleys. This second line represents temporary business conditions. Fora tew years it is above the normal line eand then for a few years it is below the normal line. When the two lines colnclde, business Is normal; but when the second line is above the normal line, bankers say we are having infla- tion, while when this line is below the normal line, bankers say we are hav- Ing deflation. Just now they say that we are threatened with another per- lod of inflation. “The normal line of business is de- termined by the honesty, intelligence, industry and thrift of the people. Compaging the health of business with the health of a person, we would say that the normal growth depends upon how we behave and how we take care of ourselves. The temporary husiness line, however, {s affected by stimuli the same as our body. A stimulant may greatly exhilirate us, but we know the effect is only temporary and the reaction afterwards is very de- pressing—we feel much worse in a few days. This is the scientific- ex- planation of the common saying, ‘I feel like the morning after. There are several reasons why the bankers may be right in saying that a tem- | porary period of inflation is at hand. | The country during the past year has been given three distinct stimulants, which should artificially help business and thereby cause inflation. “The first of these stimulants was the immigration law, passed a year #go and which was recently re-enact- ed. This is known as the 3 per cent. law, which limits the emigration from any country in one year to 3‘per cent. of the people now here from that country. It is practically a tariff on manual labor and on common labor. If continued, it will cause a famine of common labor in this country. It is the reason why the United States Steel corporation and other concerns are Increasing the wages of common la- bor. If this law continues very much longer, it will cause an inflation in the wages of common labor and there- by tend to bring about a general in- Qation. “The tariff bill, which was passed last month, is a second cause of infla- | tion. Whether or not such a tariff is good for the country is a political question and is not for me to discuss, but all students are agreed that it is largely a temporary stimulant. The tariff helps the manufacturer the same as the immigration law helps the wage worker, But neither the tariff nor the immigration law increases pro- duction or makes two blades of grass grow where only-one grew before, The tarift will cause an increase in the/ price of goods the same as the uami- | gration law will cause an increase i“i wages. Increasing prices and increas- | {ng wages, however, do not make the | country any richer. The country be- comes richer only as it has more| houses, more bushels, more tons, and more yards of goods. Marking up the price of goods accomplishes nothing. ‘With about a thousand dollars you can today buy a million German marks and become a’ millionaire, but you are no richer than before. “The third event that will help bring on the inflation, happened last week when England gave in to Tur-| key. England has been the one great country outside of America which has stood for law and order; for the pay- ment of debts and sound currency. The lack of France and Italy to back up England on the Turkish matter has shaken the confidence of the world in Furope and European securities. Even some Englishmen themselves are say- ing, ‘What's the use. If no one will Taxes Insurance Interest These three items call for a large portion of most every man’s earnings. If you start a Savings Ac- count here, and put away a certain portion each week, you will not only have the money when you need it, but you will also receive interest at4%: per Where can you find a better proposition? cent. Open Saturday Evenings—7 to 9 P. M. urritt Savings Ban Corner Main and Church Streets Turkish victory is a victory for the in- entering may temporarily be checked and even money may be scarce for a AND EFFECTS, back us up we had better let nature tuke its course’ This means that Europe, instead of checking its bad leaders, has given in to them, The flationists of Europe, The backing down of Fngland s defeat for the sound money interests of the world. This is bound to have an unfortunate effect in this country and cayse higher interest rates, The cheapér interest rate period in which we have been short time. As the immigration re- strictions cause an inflation in wages, and the tariff an inflation in prices, so this Turkish episode may cause an in- flation in interest rates, “These three factors may cause temporary inflation. None of them, however, affect the long swings of business which are determined by fundamental economic law. So far as the long swing goes, we are in a per- fod of deflation which will continue for some years to come. Over the long period of years the tendency of wages, prices and interest rates will continue downward. However, it is very likely that %his tendency has temporarily been checked and we shall probably have all the ear marks of a period of prosperity during the next few months."” General business as reflected by the index of the Babsonchart is at the highest point in over two years. Ac- tivity this week is but 6 per cent. be- low normal as compared with 7 per cent, below last week and 19 per cent. below a year ago. Calls en Georee s et € SRV | | | B i o 1l cads, sergeant Major Walter Wagstaft calls on Pre- mier Lloyd George at 10 Downing street to ask aid for needy ex-service men. City Items Viking Fair tonight, advt. The Moose club has leased the third floor of a building at 242 Main street, | from 8. W, Menus, et al, for five years. The annual rental is $100, Tabs' fair open Fri, Oct. 20.—advt. There was a large attendance at the benefit dance of the Knights of Pyth- ias lodge held at the Y. W. C. A, last evening. The proceeds of the affair will go towards defraying the ex- penses of the convention to be held in this city on October 16 and 17. Bungalow.— |any governor, as their candidate These 3 * TDAHO ELECTIONTo BE CLOSEST OF ALL Direct Primary Paramount Issue Expected to Dominate Bolse, Idaho, Oct. 7.—The direct primary system of nominations, which played a prominent part in the pre- convention campaign of the republi- can party in Idaho, is expected to be one of the hardest fought issues in the contests at the November elec- tion in this state. The issue involves the two princi- pal parties and the progressive party, comprising the farmer-labor element. U. 8. Senator Borah has taken a stand in favor of abandoning the present state convention system of nomina- tions in Idaho for a direct state pri- mary, Refuses Leadership. Although he had the support in this position of the delegation from Ada county, in which Boise s located, the republican state convention refused to accept his leadership, and declared for the present system of state con- vention system of nominations in Idaho for a direct state primary. Reposes Leadership Although he had the support in this position of the delegation from Ada county, in which Boise is located, the republican state convention , re- fused to accept his leatlership, and declared for the present system of state conventions, preceded by county primaris at which candidates for county officers and delegates to the county conventions are selected. The county conventions in turns elect dele- gates to the state conventions. The republican convention called for amendment of the present system to require the voter to declare his party affiliation when he votes in the prim- ary. The democratic and parties in their state platforms ee- clared for the abandonment of the convention system and the return to the state primaries. New Issued Expected. Another issue which is expected to be prominently featured is the cabinet form of state government, which has been 1n effect in Idaho for four year: during the administration of Gov nor D. W. Davis. The republicans endorsed administration of Govern Davis, who was not a candidate fox re-election, while the democrats and the progressives demanded aboltion of the cabinet system. The state bank guarantee act is another issue on which the republl- cans and the democrats split in their platforms. All three of the conven- tions declared for abolition of the state constabulary system. Progressive Issue. The progressive convention plat- form also called for public ownershiy of railroads, public centrol of natural resources and the initiative, referen- dum and recall, together with elee- tion of membere of the state public utilities commission and graduatea progressive income and inheritance taxes. ‘The republicans, among other planks called for reduction of taxea and endorsed the Smith-McNary re- clamation bill, Neither senator is subject election this year. The incum- bent congressmen, Burton L. French of Moscow and Addison T. Smith of Twin Falls, were renominated by the republicans, and to oppose them George W. Waters of Weiser and W. P. Whitaker of Pocatello were named by the democrats and W. W. Deal of Nampa and Dow Dunning o? Boise by the progressives. The republicans named Charles C. Moore of St. Anthony, present lieuten- for governor, and the democrats chose Moses Alexander of Boise, former governor of the state. The progres- sives nominated H. F. Samuels of Samuels. to re- The chances of an oak tree being struck by lightning are 57 times greater than those of a birch. AT PAN- PABIFIC CONGRESS OCT. 25 Many Men Prominent in World Alfairs to Speak There Honolulu, Oct, 7.—Many persons in the public life of the United States and foreign countries have been invited to address the Pan- Pacific Commercial congress to be held here October 25-31, Among the Americans scheduled to speak are Theodore Roosevelt, assist- ant secretary of the navy; Edwin E. Slosson, science service, Washington; 0. K. Davis, secretary of the national foreign trade council; Dr. Julius Kleln, director of the bureau of for- eign and domestic, commerce of the department of commerce, Washing- ton; L. 8. Rowe, director of the Pan- American Union; D. W. Evermann, director of the museum of the Ca fornla Academy of Sefences, and K. C. T. O'Hara, deputy minister of trade and commerce of the Dominion of Canada., Others who will speak are John Earl Baker, adviser to the minister of communications, Peking, and Julian Arnold, United States commer- cial attache, Shanghai. Those who plan to attend as dele- gates include James A. Farrell, pr dent of the National Foreign Trade leading Council; Dr. Charles Hodges, New York School of Commerce; Philip B. Kennedy, First Federal Reserve Bank, New York; Dr. Francis B. Holley, bu- reau of commercial economics, Wash- ington; Rear Admirat H. J. Zieg- meier, director of naval communica- tions; Walter S. Rodgers, state d partment, Washington; Represents tives Frank Murphy, Harold Knutsen and E. K. Browne and Hugh &mith, chief of the bureau of fisheries Washington. A comprehensive entertainment program will enable the delegates to view most of the interesting and his- torical spots of Oahu. Surf-board and outrigger canoe exhibitions will be held and luncheons and dinners will be given by the Ad club, Rotary club, Chinese Merchants' association, Hawaiian Civic club, Chamber of Commerce, Japanese Merchants' asso- ciation, University, Commercial and Pacific clubs. The American pected to sail in a body Francisco on the steamer Oct. 18. WOULD STABILIE RAW SILK TRADE Much Speculation Believed to Hamper Conditions delegation is ex- from San Maui on Yokohama, Oct. T.——An increasing amount of attention has been paid to the importance of stabilizing the raw silk trade so that the market may be made free from the violent fluctua- tions to which it is frequently sub- ject, says Diamond, a financial news- paper. “When the market slumps the merchants and manufacturers try to keep the price of raw silk at certain level and among these means are e restriction of output, and withhold- ing of sales under a certain figure,” says the newspaper. Ask Government Aid. “If these devices fail, they ask for government assistance on the ground that raw silk is the most important article of export in the country. The government has been doing every- thing to propitiate them, “As the 1920 stock is being dis- posed of a new situation has arisen which promises to develop into diffi- culty as the season advances. When the spring cocoons appeared on the market the raw silk market at Yo- kohama maintaned great activity and high price with the consequence that manufacturers bought cocoons at a very high price. The market, since has suffered a decline and raw silk is now quoted in the neighborhood of 1,800 yen. The cutting down of out- put and the restriction of shipments to Yokohama have been agreed up- on, but it is thought doubtful wheth- er these artificial means will be effec- tive in turning the tide of a declining market in the manufacturer's favor. Much Speculation, “Those who have carcfully studied the causes are of the opinion that speculation enters too much into such an important industry and trade. For this reason they suggest that the speculative spirit be eliminated to a large extent if the trade Is to be placed on a secure and sound b: “Thei carryng out of a government monopoly or raw silk may be one of the means that will secure stabiliza- tion of the silk market. This would not only guarantee the interest of cocoon raisers and silk manufactur- ers but the foreign importers al-zo| would be protected against loss as at present they are frequently the vie- tims of a fluctuating market.” SOVIETS SEND GREETINGS Tiflis, Republic of Georgia, Oct. 6. (By Associated Press)—"The Turkish proletariat has won a great vietor: says a telegram sent by the federated soviet republics of the Caucasus to Mustapha Kemal Pasha at Angora, congratulating him on the military successes of the nationalists. “Your triumph,” adds the message, “will consolidate the friendship be- tween Turkey and bolshevist Russia The citizens of Georgia, Armenia and Azerbaijan wish you the same suc- cess in the conclusion of peace as in war, with the full realization of your national pact. Long live the new Turkey, the conquering Turkish sol- diers and Turco-bolshevist friend- ship.” —_—_———ee——————————— E. C. Benson Barker Correct Modern Instruction on Mandolin, Banjo, Tenor Banjo and Ukulele, Studio—259 Main St. Open Evenings |Week-end profit N B Machine N Niles-Be-Pond com North Russ Scoville Mfg Co South Standard Screw . Stanley Works Stanley Works pfad Torrington Co com Traut & Hine Travelers Ins. Co Union resentative lican passenger ships engaged commerce three-mile limit shipping lines WA[L STREET STOCK EXCHANGE REPORTS Quotations furnished by Putnam & Company. Wall Btreet—Operations of oppos- ing speculative forces gave a degree of irregularity to today's stock market but the ultimate trend was upward taking alded the short Interests who centered their at- tack on shipping shares. Temporary weakness also was noted in Corn Pro- ducts, Atchison, Norfolk and Western, Ass'd and Tidewater oils. American Tebacco, American Car, Pullman and IFamous Players but the iist turned upward before noon in response to another demand in Htanlard O} stares, New Jeriny was pushed up 7 3-8 to 228 8-3 u new high record and gains of 1% t) 4 points were reg- fetered by Binclair pfd., also at a rew high, Standard Oi! of California, Mex. Pet. Fisher Bod. Gulf States steel, U. 8. Rubber, Keily Springlield and Southern Railway common and pfd. the latter at a new top. The closing as firm. Sales approximated 450,000 shares, Am Can Am Am 6534 188 26% 126 % 62 80 39% 12314 162 Cot Oil Am Loco .. Am Smelt & Ref € AmSug Ref com 80 Am Sum Tob ...30% Am Tel & Tel ..124% Am Tob ... 162 Am Wool ... 100 Anconda Cop 621% Atch Top & S F.186% At Gulf & W I., 303 Bald Loco L137% 137y Balti & Ohio 553 5613 Beth Cteel B 5% T4 Can Pacific L147 1455 Cen Leath Co .. 413 41% Ches & Ohio T4l 3% Chi Mil & St P 32% 321 Chi Rock I & P 44% 43% Chile Copper .. 261% 26 Chino Copper 29 Consol Gas 1371 Corn Prod Ref. . 123% Crucihle Steel 85 Cuba Can Sug.. 13% Bndi-John 841 E:ie ’ 16 Erie 1st pfd 25% Gan Motors ... 148% Goodrick (BF) 35 Gt North pfd 9254 Inspir Cop ... 381 Interbor Con 134 Interbor Con ptd 31 Int Mer Mar L 15% Int Mer Mar pfd 638 603 Allis Chalmers Pacific Oil Int Nickel 17 Int Paper 5834 Kelly Spring T'r 435 Kennecott Cop.. ? Lacka Steel Lehigh Val Mex Pet \hd\aln Steel 106% 3014 57 591 35 811 8715 1801 331 1845 335 33% 21% 98 9674 30 % 3084 1193119% 861, 86% 321, 32 78% 76y 481, 48y 6014 514 Pac 2114 NYNHG&H Norf & West North Pac Pure Ol 5 Pan Am P & T. Penn R R .. Pitts Coal Ray Con Cop Reading Royal D, ) Sin Oil Ref Souh' Pac™, .0 Sonth Rail Studebaker Texas Co Tex & Pac Tob Prod Trans con Oil Union Pac United Fruit United Re St U S Indus Also U S Rub Co U S Steel U S Steel pfd 1224 Utah Cop 668 Willys Overland 7 Mid States Oil.. 133 Westinghouse 625 (Putnam & Co.) Bid 655 104 373% 941 273 Co .133 1061 Aetna Life Ins Co Am Hardware Am Hosiery Rige-Hfd Cpt Co mm Billings & Spen com. . Billings & Spen pfd .... Bristol Brass oxw Colt's Arms Conn Lt & Pow pfd Eagle Lock . I"afnir Bearing Co .. Hart & Cooley H!d Elec Light Landers, F. 1. R. Montgomery com ] R Montgomery pfd. N B Gas o | = oo ® D s e - £ B Machine pfd & Peck, Stow Judd & Wil el Mfg Co N E Tel Mfg Co PROPOSE Washington, LIQUOR SALES. Oct. 7.—There was a suggestion today that congress might be asked to take up the bill intro- duced more than a year ago by Rep- Edmonds, Penna., repub- would permit American in foreign liquor beyond the At hearings on the representatives of American contended they could with foreign vessels on which to sell bills not compete which liquor was sold Officers of the anti-Saloon League vigorously opposed the measure de- claring it was their intention to ex- tend the American drought to the seven seas, After the hearings fight for the bill suddenly ended the explanation being made privately that the “problem had been solved" by the action of the shipping board in stock- ing its ships with the things a thirsty traveler demandad. Considering the dry temper of the house, leaders declared there was no chance for the bill. the ( PUTNAM & CO. Members New York Stock Exchange Members Hartford Stock Exchange (Successors to Richter & Co.) Stanley F.. Eddy, Manager 81 West Main St., Tel. 2040 WE OWN AND OFFER— 50 SHARI'S International Silver Co. Preferred DIVIDENDS 7¢, PER ANNUM Price On Application, JUDD & CO. Members New York Stock Exchange MEMBERS HARTFORD STOCK EXCHANGE HARTFORD: Hartford-Conn. Trust Bldg., Tel. 3-6320 NEW BRITAIN: 23 West Main St., Telephone 1815, We Offer: 50 Shares LANDERS, FRARY & CLARK 50 Shares STANLEY WORKS 50 Shares I'ORTH & JUDD | Thomson; NEW BRITAIN New Britaln National Bank Bldg. Telephone 2580 Thenn & To. Hartford 10 Central Row Telephone 2-4141 Members Members Hartford Stock Exchange New York Stock Exchange Donald R. Hart, Mgr. We Offer— NORTH & JUDD Price On Application We Do Not Accept Margin Accounts —_—— JOHN P. KEOGH Member Consolidated Stock Exchange of New York Danbury prl NBlvyfiw" Middletown BONDS Sepx'ingfi'e.icliI Direct Private Wire to New York and Boston G. F. GROFF, Mgr.—Room 509, N. B. Nat'l Bank Bldg.—Tel. 1018 Waterbury The Hartford-Connecticut Trust Company Corner Main and Pearl Streets, Hartford, Conn. Capital $2,000,000.00. Surplus Funds $2,000,000.00 Safe Deposxt Boxes, $5.00 and upwards. Settlement of Estates. Foreign Exchange to all parts of the world. LETTERS OF CREDIT — GENERAL BANKING Bank by mail. It is safe and saves time. T0 BAR POLITICS AT PACIFIC MEET Questions on Economics Only at Honolulu Congress Session Honoluluy, T. H., Oct. nomic questions and no political mat- Savings Bank of New Britain Organized 1862 RESOURCES OVER $13,000,000 T.—Only eco- ters will be discussed at the Pan-Pa- | cific Commercial Congress which will hold its gessions here October 25 to| October 31, according to a statement | the Pan-Pacific sponsor of the congress, issued by union, | replying to a Jiii, Japanese language newspaper here, to | the effect that the Japanese delegates would ask the conference to recom- | mnd abolition “of the discriminator; laws of the United States against for- eign shipping.” | The dispatch, from Tokio, was taken here to mean that the Japanese delegates would as that the con- gress recommend repeal of the pres- ent coast-wise shipping laws permit- ting only Is of American reg- istry to engage in traffic between two American ports. “It is the settled policy of the Pan- Pacific union not to disc in the conferences held under its auspices, matters which should properly be left to established governmental agen- ' Dr. . I, Bunker, executive sec- | retary of the organization in | commenting on the dispatch. Program Made. “The program for the congress, an- nounced by the union, provides for an address on ' ificant Pan-Pacific Commercial Problems of My Country” from one representative of h na tion represented, on the opening day “Transportation and Communication,” divided into three the second day, and “Development and conservation of natural resources, the general topic for October Finance and investments wi cupy the congress on October 80 The closing day will be devoted to inter-nation relations in tk Pan- Pacific area, including the discussion | of the arbitration of commercial mis- | understandings and the need for co. operation among the various agencies special dispatch to the Nippu 178 Main Street Deposits in this bank are receiving 41,00 Interest. Interest begins the first of each month, ves Open 9 a. m. to 4 p. m. Saturdays 9 a. m. to 12 m. Monday Evenings 7:30 to 9 (s ] GREEKS MAKE SUGGESTION said eac " London, Oct. 7.—The British today cab- tele- phone communication from Lord Cur- Fubfects inet meeting received a zon in Paris outlining the negotiations with France regarding the Near Bast. It v said one point in the Paris conference was consideration of a proposal by ex-Premier Venizelos for the immediate evacuation of Thrace by the army, that army to be replaced by inter-allied troops in or- der to guarantee the safety of the Greek population. This proposition of Greek interested in Pan-Pacific problems. Reports of special committees and the consideration of resolutions in- cluding recommendations for legisla- tion will close the congress. M. Venizelos, it is pointed out, is of« ficial from his government and is in accordance with the British view but it had not yet appeared whether the French government would accept it.