Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1883-07-19

TRADE


Although the generally sound condition OF
trade is matter for congrstulation, certain 1t
il that there are details where much 10 waut-
ing. In several departments in trade there
is complaint Of overpfoduction, there are
large stocks OF goods on hand and only a
light demand for them. The rush and hum
of that kept everything active
three or four years ago has sub-ided. AS q
necessary consequence Of goods being more
plentiful than buyers, prices have fallen and
profits become small. Toe secret OF all this
lie that in certain departments the productive
power Of the nation has gone beyond lie
consumptive wants. Before we can apply a
remedy for the evil, 1t is necessary that
this fact De we'll understood. There is
no diminution in the wants OF the
nation, sad no falling of IN its
ability to buy. There is simply, "a
far al this country Is concerned, a larger pro-
duction than toe needs Of the country re-
quire. Iron is one OF the markets that Is
eyersupplied, and there is existing product
i've DO yer in these States TO turn out twice %
much manufactured iron material IN some
divisions Of the trade 80 the country mas
reed for. Early 10 1879 %pig-irou sold at
SIS per ton. R4ilrosd extension brought a
strong demand and Inc price increased until
10 1880 ~pig-iron was selling It S4l a ton.
IRE big price and the immense profits at
tracied capital TO iron, with the result upon
the supply, and the power 10 suppl, named
above. 10 the spring Of 1879 there were
24l furnaces in blast. In one year alter
ward there We're ADJ, and iron was SLING at
S25 12.to S28 80 a ton. Looking for the de-
msnd TO increase, manufacturers did not stint
their output, and for two years the product
was doubIed-65S iufnaces we're in blast.
That overproduction was the consequences
was G thing OF course. In wooden manu-
features q similar course produced
the same results. In dry goods at a time
when the country possessed more wealth than
ever before, the market became inactive and
the manufacturers were crowded with unsold
stock. Thee results led necessarily to the
suspension Of work at furnaces, mills and
factories. Less money WAS paid out IN wages
and consequently there Was an additional
Telling of in purchases just when the POSI-
ton OF stocks required their custom moot.
The papermakers complain OF aslmiiar sta'e
of AFFAIR.", and talk of feeling it necessary
either 10 cut down production or collapse
Glsssm akers aud porcelain manufacturer
find Themselves in the same position, and
competition is reducing prices, Tue coal and
coke men have ceased to work full regular
time, and this 8 ate OF things has become
general. OF course to run a large bust
ness awhile and stop it awhile i
q ruIaous proceeding. Capital lies idle
machinery deteriorates, and skilled opera
tors sstk other homes; what then is to b
done? Lured on by large profits, IN whict
every capitalist wished to have a share, tn
producing power Of the country has been mon
strously increased without any correspondent
increase 10 cousumptivs demand, and ovei
supply, large stocks, and low profits Is th
complaint. Is there no remedy? There i
because the complaint ia incorrect. 1t Is nc
oversupply that is the matter, but restrictio
of the markets. Mexico, Central aud Sout
America would spend the millions they sen
to England, Frapoe and Germany every yes
with US, if we did not close their marke
against ourselves. We place heavy duti'
apon first materials, and thus make our pr
ducts 50 high in price that Europe ca
send goods inferior TO ours from 5000 mil
of and beat US in the market with our mex
door neigbbors. The continent between Of
southern boundary and Cape Horn has fe
manufactures, and the markets lie open
American enterprise and American SKI
Let US take their cheap raw material al
send them our manufactures, and We sh'
hear 10 more complaining Of oveFProds
tion, inadequate demand, and no sale I
stocks on band.