Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1884-01-08
SIX-PAGE EDITION
oVERPRopUcrIoN.
A Review Of the Recent Article Of Renry
George,

cember appears characteristic artlcIe Oh our
old friend Henry George, under the above
caption. If understand the scope of the
reasons set forth in the article for the de-
preston in certain branches Of industry,
and the consequent lack of employment for
the producers, it is the want OF an equal
distribution of production, and not that OF
"overproduction." He says: owe hear
so much, and from 80 many quarters, of
this overproduction, that it is no wonder
that there are many who hold more or less
definitely that the great improvements IN
machinery and industrial processes have
brought & dull times that the difficulty SO
many find in making living is due to the
increa sed capacity given to labor by dis
covery and invention, which have so re-
duced work that there is not enough to go
around" "What the laborer
wants is the things that labor produces,
and the manufacturers see no
better remedy for dizziness of trade than
curtsiling production"
Mr.. George also says If there really
be such a thing as overproduction, If we are
really suffering from a plethora of wealth,
then the remedy lies in the destruction of
wealth." This is a reauctiO Gd dbSardun.
He also instances that " during the period
of the civil war, when the greatest de-
struction of property this country ever
saw was going on, was time Of great
business prosperity and industrial activ-
ity." He also denies that this apparent
prosperity was the result of borrowing
of the future" and further adds ITO
borrow of the future is a physical lmpos.
sibility."
To all these positions of MIR. George, the
statement of the premises of reply ls
reply itself Overproduction means more
than is wanted. When a farmer raises
more wheat than his own wants require,
he seeks market for it. If there be one
found equaling the cost of production, then
there is no overproduction. But If by
combination of circumstances all markets
are supplied before our farmer has mar
keted his wheat, then there is an overpro-
duction of wheat to the extent OF his
surplus. Using a smile of Mr.. George,
there is more than is wanted to g go round.
While the remedy does not rest in limiting
the amount of labor to that which will
produce the exact amount of wheat neces-
sary to supply the demand by statutory
enactment, yet the fact remains that pro-
ducing more than the demand requires of
any commodity is overproduction. and
cannot be anything else. Mr.. George
holds, as has already been quoted, " that
there can be no such thing as overproduc'
ton, and that if there were, then there
must be a plethora of wealth, and the
remedy lies in destroying it. We need
not inaugurate civil war to destroy, nor
enact a statutory code to equalize, over
production, because there is a universal
law of supply and demand, as unalterable
as the laws of the Medes and Perslans, that
does destroy the value Of surplus products
as effectually as if they were cast into the
sea. If the farmer produces, by the apph.
cation of modern inventions, $50 centals OF
wheat, and there is a demand for only 100
centals, the universal law of supply and
demand, will give him no more for the
whole than he would obtain for the 100
centals. Hence the products OF industry
are destroyed to restore the equilibrium
between production and consumption.
Consumption itself is destruction OF wealth,
hence there cannot be anything very alb
surd in the destruction of wealth, if there
is no more destroyed than is produced.
When such an event occurs, as IN war,
famine, or other great calamity, then it is
that " borrowing of the future" which
Mr.. George characterizes as "a physical
impossibility," occurs. Borrowing OF the
future is nothing more nor less than doing
business on credit.
But, says Mr.. George, "by no process OF
financial jugglery can anyone eat to-day
the egg that is to be laid tomorrow" As
a statement OF a ply steal fact, this is true.
But if anyone asserts that the value OF the
egg to be laid tomorrow cannot be eaten
to-day by the system of credit which COM
mercial law sanctions, it is very absurd as
well as a silly assertion. The Federal
Government during the civil war was en-
abled to discount the future industries OF
the people to provide the ships that were
sunk, and other property, the destruction
of which the exigencies OF war made neces-
sary. What better evidence of the fact of
borrowing off the future than the present
national debt, and the Thousand millions
paid off since the close of the war? This
latter sum has all been earned since the
war ended, and the former sum remains to
be earned.
Again, production of any species is not
wealth, beyond what there is demand for
NrOIu anu bllNGTt tiG liiCaSNlto VI NSAAOS5 oAS
no exceptions to the law of supply and de-
maud When there is more OF these COM
modities than is required for the transac-
ton of the business of the world, their
purchasing power decreases. When there
is less than commerce requires. then their
purchasing powers increase. Overproduc'
ton decreases the value of products under
production increases such value.
a. ~ -. =.
admits. If there be any kind of productive
industry that is not related, directly or IN
directly, to some other productive indus
try, have failed to discover it yet, be-
cause the various industrial pursuits are
mutually dependent upon each other, 1t
does not follow that too many OF the
various industrial commodities may not be
produced. Each is a source Of wealth so
long as there is demand for it. When
there is no demand, the product ceases to
be valuable When coal is made cheap by
Overproduction, those engaged in that in.
dustry must turn their attention to some
other pursuit or suffer for the want OF
something for which the oyerproduct of
their labor cannot be exchanged, for too
much labor has then been directed to the
production of coal In other words. the
purchasing power of the coal product has
been reduced by overproduotion.
Every one engaged in any industrial pur-
suit, so far as human judgment can fore
cast the future produces with view of
meeting the actual needs of commerce.
Overproduction, like overtrading, usually
causes depression in all branches of pro.
ductive industry. Overproduction in coal
produces depression in connection with
supplying those engaged in that industry.
This depression is felt by the small trader,
the merchant who supplies the small
trader, the manufacturer who supplies the
merchant, the importer and others who
supply the manufacturer. All are affected
by the memorable law of supply and de-
mand. All that is produced from any in.
dustry in excess of the worlds wants is
the same as if it had never been produced.
The want of food is what makes it val.
liable. So OF everything that is produced.