Law of Action And Reaction
True In Business and Physics
A Story of How This Truth M ao Discovered Only Twenty
^ ears Ago I# One of Intense and Al>
/ sorbing Human Interest
The Bahsonchurt
Boston, Sept. 28.? (Special).?Twenty years ago a young
man walked into the office of a Boston banker and resigned the
job that was paying him $100 a month. Then he immediately
offered to do the same work for $12.50 a month!
When the banker had recov-|
ered from his astonishment he
found that the young man in
question proposed to do the
same work for eleven other
bankers at $12.50 a month each.
The deal was made and Roger
W. Babson became statistician
for a dozen Boston tankers at a
combined income of $151) a
month. Today he is the most
widely quoted man on business
conditions in America.
Ho collected figures on~citiferal bu
siness and financial conditions, co
pied them longhand, and delivered
the in daily to his customers. being
a graduate engiucer it was natural
that he should try to analyse these
figures?to chart and study them.
They were a part of general business
conditions aud the business world
had been beset by alternate periods j
of good times and bad times since j
there hadn't been any 'business to
prosper or Buffer. There might be
some connection.
Two years' charting and study in
the back room of a house in Welleg
ley Hills. Massachusetts, brought out
Just one fact?that each of these In- i
dividual factors when charted evi
denced a sort of wave movement.
Newton's Law of-- Action-Reaction ?
might govern here, as it did in phys
ics and mathematics. On the strength 1
of the supposition Roger Babson !
went to England and studied all the ?
writings of the great scientists that (
were available. He came back con-'
vinced?in fact he had found New
ton's own prediction that some day
men would realize that business and
I human relations wero governed by
this same fundamental law.
Another year's work and a dozen J
of these figures on fundamental bu-.
siness, which evidenced clearljf the
governing principle of Newton's Law.
Since "every action is followed by an
equal reaction" it .became possible
to Judge coming events by our pre- (
sent position?and business fore
casting was born!
Tho tremendous Importance of
this discovery and application is ap
parent when you realize that for
hundreds of years business men had
been the victims of a treacherous
current that favored them with pros
perity only to turn suddenly and
bring ruin and panic upon them.
Great businesses were . built up?
largely by luck?only to bo smashed
like a house of cards when caught
by an unexpected depression. The
economic Ipss of such an uncertain
system was bad enough but the hu
man. suffering It caused was much
worse. Men spent their live \ in
building a business only to see it car
Tied down by a current beyond their
control. Falling prices mean unem
ployment. hunger and suffering. The
history of every depression his been
written in blood. Now all this was
to be changed" for the businessman
could know which wajt_obe tide of
general business conditions would
}. run and could plrtn to take advan
tage of the current Instead of trying
| to run counter to It. The great fun
| dameutsl forces that govern busl
f ness. beyond the control of any
group of men. no longer threatened
| but could be made to do constructive
(> work.
It was not as easy as that for the
man who discovered It. His friends
| and business acquaintances Judged
I him ptBzy. The Idea that anyone
could tell what was going to happen
in business, In Investments or in the
stock market was preposterous! The
i?<rsities scoffed and tho general
public Jeered.
S nee then the theories have been
pro* d. the scoffers have been con
vinced and the business world at
Bradley
Sweaters
?For ladles unci Rlrln. Theao
gwefttcrs hav? nold fa&t and
our focond shipment has Just
arrived.
Mitchell's
large has accepted business forecast
ing as a fact.
Just now, Roger \V. Babson is bu
sy building a great educational insti
tution; namely, the nabson Institute
which is to perpetuate this work. It
is endowed and operated under a
non-profit making charter. In facr,
the project is so promising that tho
several hundred acres surrounding
it just outside of Boston is develop
ing into the town of Babson Park,?
a future center of information and
education to the entire business
world. Colonel John Decrow?o
of the leading citizcns of Wellesley I
?recently 4-eforred to it as "the sta
tistical City," a rather fitting tri- (
bute, we think, to the father of busi-,
ness forecasting.
The llabnoncliai't
We reproduce, herewith, the Bab
sonchart of American Business Con- J
ditions for those who may ibe inter
ested in it8 construction. I
Statistics on tho twelve leading ba- j
rometers of business?building, bank !
transactions, failures, labor condi
tlons, money conditions, , foreign
(TOdje, ?<>iii movements and money j
rates, commodity prices, investment |
statistics, crop conditions, railroad i
earnings, and social factors, -are com
bined to determine the course of the
parlous lines of the chart.
The line X-Y, for instance, that
marks the natural growth of Ameri
ca is determined by bank transac
tions.
The line which bounds the various
areas above and below the X-Y line
is a combination of all these barom
eters. It shows the actual path of
business.
It is the areas between these lines
that demonstrate Newton's Law and
make, scientific forecasting possible.
You will note that the black space j
above the line marked "B" Is appro*-j
imatelv equaled in area by the period
of depression below the line marked
"C". Likewise "D" is equaled in j
area by "E". "F", the great period |
of war and post-war Inflation, is.
rapidly being offset by the depres
Imatcly equaled In area by the period
flation having been completed.
The qulckenljng of business last
spring could not last because it got
started before the readjustment was
finished. The chart indicates that
business will not boom again until
1925,?but that 1024 will be much
better than 1921 or early 1922 be
cause the worst of the depression is
over.
There is no way of telling how
high the next period of prosperity
will take us hut as it nears its peak
It will be easy to tell just how much
readjustment must take place. It
I Is exactly like borrowing from a bank
i because business actually borrows
;from the bank of prosperity. Nobo
dy knows how much you will borrow
but when it comes time to pay .back,
one can easily figure how much you
mtttt pay back. Just so. business in
flation must be paid back In defla
tion, but the country as a whol$ g?>ts
i gradually more prosperous as is indi
cated by the long trend of the X-Y
j line.
A few moments study of the chart
will convince you that good business
11" not world prosperity, that must he
'paid hack in economic headache, but
rather business near tho X-Y line of
| normal growth that Is neither "too
j good to last" nor so bad as to cause
! suffering and hardship. Normal bu
jsiness Is sound business.
We asked Mr. Babson what makes
?Use?
PASTEURIZED MILK
fiuftrd the health of the lit
tle one* bjr u?.ln? ruftteurlzeri
Milk. Delivered twice dully to
any part of the city.
The Winekream Co.
PHONE 078.
NEW FALL STYLES
ARRIVING IMILY
Owens Shoe (iompony
1! Inton liullrilng
these continuous change*?those up*
and downs. He answered. "Because
people try to run counter to the Ten
Commandments and the Multiplica
tion Table. Whenever 51ri of the
people try to ride in the cart and let
the rest pull it. then business begin*
to decline. But when 51*7 of the
people, actuated by the spirit of ser
vice. are pulling the cart, then busi
ness improves. Hence, even poor bu
siness has its silver lining.?it makes
people see the errors of pleasure
seeking. indifference to work and
wasteful extravagance. All Ameri
ca needs now is honest Industry and
a general desire to serve?then bu
siness will be better than ever.'*
Encouragement in
Tuberculosis Work
South llenilv and Willing to Increase
KlYiHem v In This liiu
Fltttat
Sanatorium. Sept. 28.?That the
?outh is ready and willing to take
almost any step that will increase
its efficiency In the fight against tu-|
herculoss was the spirit manifested
at the informal meeting of the South
ern Tuberculosis Conference held re
cently in Asheville. Two of the more
important steps taken by the confer
ence were the decisions favoring the
reorganization of the Southern Tu
berculosis Confidence which met
last in 1920. The representatives
which registered from nearly every
Southern State agreed on all meas
ures that meant progress and suc
cess in the tuberculosis work.
One of the most interesting and
helpful discussions at the conference
was that on Standards for Classify
ing and Rating Tuberculosis Sanator
ia. Enlightening studies of this sub
ject made by the National Tuberculo
sis Association were given.
In the discussion of tiie subject
"Sanatorium Cure of Negroes" it
was clearly noted that great pro
I
the past few years in treating the tu
berculous negro. Tuberculosis and
th?' negro I* uo longer a hopeless con
dition. Negroes themselves are be
coming interested In their problem,
uliieh fact alone is the frsu step
leading t?? the solution of the prob- ?
lem. That the negro is seeking san
atorium treatment wa* pointed out I
to be a most hopeful sign.
KKNO STIl.Ii DIVOIM'K C APITAL
Reno. Nev.. Sept. 2S.?-This city,
famed throughout the world as a di
vorce enter, ran true to form in
19 22 when there were 74 3 divorces,
compared with 4S5 marriages, ac
cording to statistics compiled by
state officers.
For the entire state of Nevada
there were 1.026 divorces in 1922.
compared with 9.15 marriages. Fi
gures fur 191 r?. tiie only one avail
able for comparison, show l.Oftl
jmarriages as iigainst 64S divorces in
that year.
NOTICE!
The City Revenue Act re
quired each owner of an Au
tomobile to purchase u City
! License Tag. These License
Taj;* are now on sale and the
| time for securing same will
! expire September 30th.
J. H. SNOWDEN,
City Auditor.
represents the latest achievement In typewriter
construction, gives the greatest measure of satis
factory service and a quality of work that Is un
surpassed.
Consider tliese farts: The Woodstock means more for the
money, has many superior features and excels in every parti
cular.
Price nnd terms most attractive*?full particulars on request.
Ask for Demonstration.
WOODSTOCK OFFICE SALES & SEKVICE CO.,
121 West Tazewell Street
Norfolk - - - - Virginia
Tlewtbcupe
An entirely new body design lend* distinction In
appearance.adds measurably to individual comfort,
and provides greater convenience In the new ford
Coupe.
Streamline body, windshield visor, and nickeled
fittings make this new Coupe highly attractive.
Deeply cushioned seats, improved interior arranft
ment, and cowl ventilator providein creased comfort.
Wide doors that open forward, revolving type
window lifters, enlarged rear compartment and a
recess shelf for parcels, back of the seat make for
greater convenience.
Srt tht m Ford Comp* snJ othrr body typ?
II your Stmttt! Ford DemUr'i $Jm?roem.
Auto & Gas Engine Wks. Inc.
CARS ? TRUCKS ? TRACTOHS
PREPARED
A
We are prepared to serve our
friends in anything in the way of
home furnishings. We have on hand
the largest stock of furniture and
household goods of every description
we have ever carried, and the most
complete and up-to-date lines. If
there is anything you want, see us.
Our slogan is:
Cash if you have it
Credit if you want it
If you want anything in our line,
there is no reason for not buying.
Follow Our Slogan
M.G.Morrisette&Co
ALKRAMA Today
He was walking along
the Street
and Hloppcil to watch a group of children dancing
lo tin- liiii<* of a violin.
He noticed the musician and stood ughust! The
musician was a erip|ile! Yet he smiled and gave
the little children happiness.
In return lie. received love.
And So "The Kingdom
Within"
will warm your hearts in a true exposition of life,
love and happiness.
It has the grcutcst heart tug and the highest punch
yet screened.
ADMISSION
Matinee 10c & 35c; Night 15c and 35c
Famo and Lebanon Belle Flour
tr* ?b?olot?l7 riour? of quality (old by tha leadloi froear*
?Olitrtbnted Bt?
A. F. TOXEY & COMPANY
Water fttraM
FREE VOTING COUPON
GOOD FOR 100 FUEE VOTES
? In The ?
Daily Advanre "Kvorylioily Win*" Big Automobile
(!nin puign
I hereby cant 100 FREE VOTES to the credit of
Minn (Mr. or Mrs.)
Addrp**
This coupon, neatly clipped out, nam* and address of (hp candi
date filled In, and mailed or delivered to th*? Election Depart
ment of the Dally Advance. Elizabeth City, N. C., will count an
100 FREW VOTES. It doea not cont anything to cast these
coupons for your favorite candidate, and you are not restricted
In any arn^ In voting. Do not Roll or Fold. Deliver In flat
package. Not good after October 13.