Phenix gazette. [volume] (Alexandria [D.C.]) 1825-1833, 1826-10-04

II
illus. whatever may be its momentary effect on
the department Of industry to which 1t is APP
plisd, is Immediately disadvantageous to others,
and ultimately ruinous to that which it was IN
tended TO promote No arbitrary regulation,
no act Of the Legislature, can add any thing 10
the capital of the country; it can only force II
into artificial channels. Besides, after suftl-
cient supply of capital has flowed into these
/ channels reaction must commence. There
can be no foreign vent for their surplus pro-
duce: and, whenever any change OF fashion, or
Auctuatiou in the taste Of the consumers, occa-
sions falling off in the demand, the warehous-
| es are sure to be filled with commodities which
in state of freedom, would never have been
produced. The ignorant and the Interested
always ascribe such gluts to the employment
of machinery, or to the want OF sufficient pro-
lection against foreign competition. Inc ruin
is. however, that they are the necessary and IN
evitable result Of acting on an artificial ana e1
clnsiye system; and of the application OF those
poisonous nostrums, by which the natural and
healthy state Of the public economy is yltlated
and deranged
| II will be observed, that the foregoing remarks
apply only 10 the case OF an excessive produc-
| ton il, some particular Branch OF industry we
have on several previous occasions, endeavour-
ed to show, that an universal glut OF all sorts OF
commodities is quite impossible Indeed, the
very idea of such glut involves contradiction
| and an absurdity. 1t is admitted on all hands,
that however much the powers of production
nav be increased such commodities as are pro-
duced in the view of being directly consumed
by their producers, without the Intervention OF
an exchange, can never be in excess;-for to
| supDose that MeY should be in excess, would
really be to suppose a production without a
mo,iye-an effect without cause! 1t is only
when commodities are carried 10 market, and
offered in exchange for others, that they can be
in excess But such commodities as are carrl-
ed to market, are produced only in the view OF
obraininp others in exchange for them; and The
fact, that any description of them is in excess,
is Of itself au unanswerable proof that there is
corresponding deficiency in the supply OF
those they were intended to exchange Tor, or
buy. The fault is not in too great aggregate
production; but in producing particular Com
modities; which are either not in demand by
those to whom we wish to sell them, or which
we cannot ourselves consume. III we attend 10
these two grand requsites-if we produce such
commodities only as can be taken oil by those
to whom we offer them for sale, or such as are
directly available to our own use, we may IN
crease the powers Of production ten, or ten thou
sand times, and we shall be quite as Tree OF all
excess as if we diminished them in the same
ratio. A glut invariably originates In the cir
cumstance Of those who are engaged IN par.
,icular business having increased the supply oil
their peculiar produce beyond its due proper
ton. The distress of the West India planters
in 1907, of the agriculturists in 1916, and, more
recently. of the silk manufacturers, were all
consequence Of their having added disportlon-
ally TO the quantity of their peculiar produce
It was this that sunk its value as compared with
other things, the supply Of which had been
more carefully adjusted to the effectual demand
and involved the producers in difficulties.
Besides establishing system of free trade,
the next best thing that could be done to avoid
the chances of gluls, or OF improvldent produc-
tons in particular departments, would be a de-
termination on the part Of Government to with
hold all relief, except in cases of extreme neces-
sity, from those who have had the misfortune
to be involved in them. We acknowledge that
this seems, at first sight, rather harsh doc
,rine: but we are satisfied thar. on examination,
it will be found to be the only safe and really
practicable line Of conduct for the government
OF great country 10 iOiio"' ~EhiiiioSe an ''iN
restrictions and prohibitions which now tetter
our commerce, and restrict the spirit OF enter
prise, have been occasioneG by Government
stepping out Of its proper province, and inter-
fering for the relief Of those who had got them
selves entangIed in difficulties. BY this means
very large proportion of the industry OF the
country has been placed on an insecure founda-
ton; & merchants and manufacturers have been
delivered from that natural responsibility under
which every man ought to act, & been tempted
to trust to the extrinsic support usually afforded
by Government in the event Of theirspecula'ions
giving way. Were it possible, indeed, to grant
such assistance without infictng real In
Jury on the rest Of the community, none would
object TO it, but, as this cannot be done, we con-
ess it appears to us, not only that sound policy,
bur also that real humanity would dictate the
proprie,y of its being withheld in all but extreme
cases. We are glad too to be able to state that
this line of policy is sanctioned by the highest
practical authori,y-by that of a gentleman
who if not at the very head, certainly ranks IN
the foremost class Of mercantile men. tn his
able pamphlet on the Orders in Council, pub
lished in 1903, Mr.. Alexander Barring has ex-
pressed himself on this subject as follows
"The only beneficial care government can
take Of commerce, is to afford it general pro-