The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1877-07-05
HARD TIMES.
Present Relation Between Production and
Consumption.

Present Relation Between Production and
Consumption.
lFrom the Popular Science Monthly for Julyl
Production and consumption do not
have that intimate relation to each other
they once had. In old times the weaver.
for instance, was in contact with his Gus
toners he wove cloth as he discovere1
the need; he cautiously set up a second
loom when it became fully evident that
it could be kept employed; and thus
supply and demand went, as it were.
hand in hand. But now gigantic mills
filled with many spindles have little
accurate relation to consumption. The
power OF production by means of i'm
proved machineryis something immense,
and it is exercised with no very watchful
or cautious regard to the immediate
needs OF the community. Goods are
piled up In vast quantities in waiting for
future market, or for an anticipated
change in price, or they are pressed
upon the market at such low rates or on
such long credits that buyers are Sc
duced into over-purchases. In favora-
BILE times these establishments are run
at high pressure. The old-fashioned
nice relation between producer and con-
sumner disappears. Speculation takes
the helm. Much more is produced than
there is corn, leather, or other goods, to
exchange for it. The resources of the
mills are great; they can borrow
from the banks while they pile
up their fabrics in their ware
rooms; they can by means of
their concentrated capital keep their
machinery running, even at loss, if by
SO doing they can crush out rival or
manipulate the market. But in the
height of this prosperous run there is a
check-no matter for what cause-and
suddenly the work stops. There is lit
tie sale for goods produced; the fires
must be put out, the doors closed, and
thousands of operatives are deprived of
This would not be so I'M
fortunate if this over production had |
been diffused among the work-people. |
But it had not. Notwithstanding the
high pressure and the excessive manu-
tacture, wages have been kept down
while producing in six months as much |
as could be exchanged in q year, the |
workmen have not been paid in this
way-their wages have been upon the
basis of the whole years works. re-
suit, they are turned empty handed upon
the street. And. what is particularly
unfortunate, they are reduced as con-
sumers to the minimum point. Here
the evil works both ways. The excessive
production which has shut up the mill /
has weakened the power of the COM
munity to absorb this production-the
goose that laid the egg has been slain.
Inevitably the recovery from hard times
brought about in this way must be
slow. The spindles cannot be set in
motion until the stock of goods on hand
is reduced and fresh demand revives
this demand cannot revive because the
great body of consumers are in a state of
lmpoverishment. This condition of
things is entirely sufficient to explain
the genesis and the prolongation of
business prostration. Capital is not i'm
paired it is locked up in machinery
that is silent, in goods that cannot be
in money that has no bor-
rowers. 1t is the paralysis Of consump- |
ton that is the cause.