Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1886-07-31
OYERPRODUCTION or FAULTY
DISTRIBUTIONS

UiO NIB u IJONs
There Is still widespread depression in |
business, not only in this country, but in
several states Of Europe, notably France |
and Germany. Many manufacturing es-
adjustments in the United States are run !
ming on short time, and some are closed. !
OF course this means that many of the
laboring classes are out Of employment. |
The reason usually assigned for this con-
dtion of things is overproduction.
Whether this reason be the true one is
an inquiry worthy OF the consideration
of the wisest and most patriotic states
man. Oyerproduction of what? The
articles and commodities of which
there appears to be superfuity
In the United States at this time
are breadstuffs, cotton and wooden goods,
clothing and iron fabrics of several kinds.
At the same moment that there is said to
be an overproduction of these things
there are hundreds Of thousands OF peo-
pie only precariously employed or en-
tirely out Of work and clamoring for en-
ployment They want bread, wooden and
cotton goods, clothing and those various
fabrics OF iron of which there is said now
to be an oversupply. Then it Is not true
that there IL overproduction. There is
only faulty distribution and imperfect
economical conditions. There stand on
one side The possessors of commodities
of which there is said to be a surplus,
and on the other an array of people
demanding work, and who, II they could
produce commodities in day, would
turn their labor into the very Identical
things already said to exist in too great
quantity. Another anomalous phase Of
the situation Is that II the holders OF the
surplus could dispose of it at the prices
they demand they would forthwith invest
the money they receive In the labor of the
people who are seeking employment.
What is IT that interposes between these
two classes OF persons and prevents both
from getting what they desire, which
stops sales on one side and keeps waiting
laborers out or employment on the other,
and thus causes Industrial and financial de-
presslon2 Here is the difficult factor in the
problem. By considering the direction
practical minds turn for relief, we may
get glimpse OF the truth. We observe
that the FIRST step taken by the over
; stocked producers-overstock IS the
! market Isis to curtail production unit
: the apparent surplus can be worked off
/. The cotton and wooden mill men, th,
foundry men, the iron manufacturers
come together and agree to run on shoT
> time or shut down number OF the mills
: till the demand revives for their stocks
when the stock on hand is consumed
i. The reason offered and usually accepted
!, for this method of Keeping up prices Il
that the goods have been produced
= at cost that will not permit reduction
without loss to the manufacturer. Thi
Is not universally true. The business o
+. a mill or mandatory that can be rul
q with moderate profits or without loss
. being shut down or run on short time
/ part Of the year, during which curtail
ment the interest on its plant and tn
ordinary decay continue undated, is alb
Q solutely capable Of being run on
3 smaller per cent of profits II its opera
q tions should constantly be kept up to II
0 full capacity. This proposition is self
evident II then follows that manu-
iacturers who adopt the practc
/. OF thus limiting production coul'
r AFFORD TO sell their products a
$ lower prices, provided they would in
o crease their productions. What wouldb,