Wichita eagle., 1890-03-06
OvERBALANCED PRODUCTION,
a Plausible Theory and New Way Out
Of the Present Dilemma.
To the Editor Of the Eagle.

To the Editor of the Eagle.
Referring to an article in the Eagle oil
the 27th ultimo. desire to say that it i:
clear that the western farmer is disap-
pointed with the results obtained from
the crops of 1889, and especially the
corn crop.
The Kansas farmer and more es.
pecially the farmer of Sedgwick and
adjoining counties, after four not over
abundant crops of corn, is sorely disap-
pointed that this the first full crop out OF
five should be but as the apples of
Sodom. They are grievously disap-
pointed because this great crop does not
enable them to meet their obligations as
they expected and desired. They are
disappointed because their families in
many cases, must continue to endure
serious priyations, and badly disappoint-
ed because this great crop has caused no
rift in the dark cloud. While the price
being realized for this great corn crop is
SO unsatisfactory, it can be accounted
Tor without assigning it to anything but
natural causes, and is clearly not due to
any lack of money or any other abstract
or obscure cause. In an experience ex-
| tending over nearly half q century ]
! have never known the time when there
was not an abundance Of money in
| circulation 10 buy and pay for such OF
| the wares Of the farmer as We're requir-
ed by the consuming element. Such
| he's been the case in times of the great
est stringency in the financial world as
well as in times that were flush, and so
it is always likely TO be.
The very plain truth about money is
that it is not wealth, but only its repre-
sentative; dollars, be they of gold, silver
or paper. are at best but counters, and
simply represent so many bushels Of
corn and wheat, and measurable guam
titles of other products Of labor, and
when products are low in price, be
they breadstuffs, meats, metals,
or house, is it not a fact that q much
smaller volume of the instrument of ex-
change (denominated money! is neces-
sary than when products are high IN
price:
At this time one dollar buys and pays
for eight bushels OF Sedgwick county
corn, whereas two years since one dollar
would buy and pay for but two and one
half bushels and but one year ago the
dollar would but four bushels, hence the
corn dealer in February, 1889, would
require twice as much money as now to
handle a given amount of this product.
This is an undeniable statement and SO
far as the corn crop is concerned shows
that one dollar now performs exactly
firm 1nr1fC Cf
eXchange-as did two but a year
obtain IN buying nearly all products
degree. For instance, it takes given
time-say thirty days-in curing room
to convert the carcass OF the hog into
merchantable product. and the packer
who daily slaughter 1000 hogs. or 25,-
coo per month. which cost So, each
must, in order to carry the product until
ready TO enter into consumption, COM
mand a capital (of his own or bOrrowed)
of $375, 900 90, but if the hogs cost him
but $40 each, the capital required will
be but $3.50, 100000, thus lower prices
enabling him to handle-buy, cut and
Sell-the same amount of product with
50 (or countersl where, in the first case,
three were required. Does it not follow
that in times of low prices less money is
required than in times when prices are
on n higher level! The quantity of
money Is subject, as rule, to the law of
supply and demand and in the world of
commerce and the demand is measured
by the quantity and price OF the pro-
ducts to be exchanged.
After all that may be said about the
sufficiency of the supply of money it has
had no material part IN causing the crop
of 1899 to sell at lower prices than those
of 1898. as can, think. be most readily
shown, and a moments reflection should
satisfy Us that such is the case.
When 2. ID. Armour and others of his
ilk We're flooding the country with low
priced limitations of butter the real arti-
Gle was in excessive supply and only
specially fine qualities could be sold at
a fair price. Then money was not so
scarce as some people claim it TO be now,
still over production (Or artificial over
prOductiOn) of an article III universal use
caused the price 20 recede nearly out of
sight; but just as soon as Phil
ArmourS COWS were properly labelled the
price of butter advanced and the genu-
Inc cow once more had a mission in life
The fictitious surplus was disposed of by
act of congress but we cannot, most I'M
fortunately, so dispose Of the realistic
surplus of corn.
To show shat the amount Of money in
circulation has no appreciable effect on
prices we may venture TO mention so
humble u product of the modest and in
duStrious hen. When the hen is dispos-
ed to do her level best in the way OF
fruit the prices drop to low point and
were all the gold and silver ever mined
dumped into Sedgwick county eggs
would be cheap at certain seasons, SIM
ply because more are produced than are
required for current use: but about New
Year, when the hard worked hen
takes her annual vacation,
the price goes up (and the money is
found somewhere to pay for them) SIM
ply because there are not quite enough
eggs to go around. This will be the
case with corn in the good time surely
coming when there will not be any more
than corn enough to so around.
There Is abundant data 10 show that
fifteen years since, when farm products
brought good prices, the product of corn
was equait TO Pa bushels of corn for
each unit of population. and all demands
were fully and promptly met. Since
then, however. the increase in the ex-
portation of animals and animal pro-
duets, and an extension of the use OF
this cereal in the manufacture of pure
maple and other syrups and beer, !
coupled with the greatly increased !
amount required to feed the con-
stantly augmenting number Of
kept in town, the
per capita requirements have risen to
twenty light bushels, and the same con- !