"BRIGHT OUTLOOK FOR BUSINESS WORLD" SAYS ROGER BABSON

Roger Ward Babson, President of the Babson Statistical Organization, and one of the recognized authorities on business conditions in this country, delivered a speech on the present business situation at an open meeting of the Graduate Schools Society of the University in Peabody Hall, Phillips Brooks House, last evening. He gave ten reasons in support of his statement that the business outlook in the United States is favorable and that the business public should assume a more optimistic attitude.

"First,' he said, "the working people in this country are in possession of the great majority of the bonds issued by the United States Government during the war. This is a very favorable sign for it shows that the great mass of people are in a sound financial condition.

"Second, that as a result of the coming of national prohibition, two and one-half billion dollars, previously wasted in this industry yearly, are now available for business projects that are more useful and more likely to promote the welfare of the people.

"Third, that in spite of the widespread opinion to the contrary, the Federal Reserve Banking System has been successful and has proved to be an important factor in stabilizing financial conditions in this country.

Advertising a Force for Stability

"Fourth, that advertising is now an influential means of molding public opinion. This profession has now reached such an advanced and scientific stage in its development that it is a logical means by which the people of the country can be convinced that, contrary to their present opinion, business is really on a firm basis and that there is no cause for the present depression.

"Fifth, that the argument that the falling-off of our foreign trade will prove ruinous is ill-founded for such trade only constitutes 5 percent of the total. What little stoppage there may be in this field, therefore, is of little or no consequence and will have no noticeable effect on the general business outlook.

"Sixth, that recently the standardization of manufacturing processes has been increasing with such amazing rapidity that there has been a considerable reduction in the cost of commodities. This is a permanent influence of no mean importance and should not be slighted in any consideration of the future of industries, in general.

Seasonal Fluctuations Decreasing

"Seventh, that all statistics gathered recently offer overwhelming proof that seasonal fluctuations in production in this country are rapidly decreasing. This will prove to be very beneficial as it will tend to make the demands for labor more constant."

"Eighth, that taxation will be radically reduced in the near future.

"Ninth, that rapid progress is being made in industrial education with the result that the men employed in industrial plants are much better trained for their tasks and are performing them with far greater efficiency. The trade schools that are now established in all sections of the country are accomplishing wonders in this way.

"Tenth, that the United States as a result of the war is, now a creditor nation instead of a debtor nation and therefore is in a very powerful position in the business world."

Mr. Babson maintained that as all these reasons are well-founded there is no cause for the widespread feeling of pessimism in the United States and urged everyone to do what he could to rectify the false impressions about the outlook in the business world.