The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1873-06-20
COLUMBIA, S. G..
Friday Morning, June 20. 1873.
Producer and Consumer.

Friday Morning, June 20. 1873.
Producer and Consumer.
Commenting on the Efforts OF the
Western farmers to reduce the cost Of
transportation, the Utica IN. " Herald
says:
THE question OF markets is over
looked. Ii transportation were cheaper,
would it benefit the producer or the
consumer? II produce could bo sent
East at lower rates, would it secure the
Western producer more for his crops7
We suspect not Tue reduction in
freight would have to be taken from the
selling price in the Eastern market. and
the producer will set no moro for his
product than he does now. Suppose
transportation were absolutely free.
Would not the f1tst effect be- to over
stimulate production III the West and
glut the market in the Eaat, so that the
producer would get much lower price
than he does now, il he could sell at all?
Again, would he get the bspeft Of free
transportation, whatever prices might
be, by taking his grain to an Eastorn
just as he does now-sell to tho specula-
to throw it upon the market, provided
they were strong enough financially to
hold it,"
The purport of tho Argument Of the
Utica HardM is, that as the Western
producer gets for his wheat its market
value, minus the cost OF transportation,
and as the Eastern consumer buys the
game wheat at its market value, inclusive
OF the cost OF transportation, the bur-
den Of this cost falls wholly upon the
consumer; and evon its complete aboli-
ton would not materially improve the
position Of the producing Glasses in re-
spect to the prices OF thhir. products.
The mere statement OF. snoh theory
is sufficient to fefute it In all minds
grounded in economical prinoiplee and
accustomed to deal with economical
problems. The cost OF transportation is
simply one OF the difficulties OF produc-
tion. 1t may affect industry as inju-
riously as poor land does. as drought or
excessive moisture does, as inferior ma
terials of manufacture do. as defective
mechanical implements do. And just as
industrial prosperity is promoted by i'm
provement in regard to any OF these diff
6culties of production, it must be pro-
NOTED by increased facility of transpor-
tation.
The .fa!lacy which we are combating
would possess not the least speciousnesf
if there we're not 20 much obscurity and
inaccuraoy of thought Us to what is
meant by tho terms producing and con.
suming classes. These distinctions are
commercial, and not fundamental. In
their economical relations, buyers and
sellers are all producers, or represent
pro uotion. Iu the final economical
equation, buyer aud solleT, producer and
consumer. must stand. for good or evil.
upon the same footing. The Eastern
consumer of Western wheat is its indi-
rect producer. And. similarly, the
Western farmer indirectly produces tie
goods or the money which ho gets in *
change for his wheat from the Eastern
consumer. Consequently, each is iate-
rested in augnenting, and, in a COM
mercial sense. cheapening the immediate
production Of the other. SO as to profit
by corresponding increase Of his own
indirect production.
How preposterous it is, then, to sup
pose that the Western farmers would
have no share in the gain of consumers
by cheaper, transportation, and that ono
OF the great difficulties OF production
may be removed without benefit TO tie
producing classes!
Cuba.