Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-08-12
NEW lIERCANTILE PLAN.

The plan reported in an item published
elsewhere, of the Farmers Alliance of Kan
sas, in organizing a system within the alli-
ance for the marketing OF the farmers
products, and the purchase of their supplies,
is a strictly legitimate one. Its merits
or dement's as a plan for benefting the
farmers, will depend entirely on its success
or failure in cheapening the cost of exchang-
ing the products Of the farmer for those of
other producers. But it should be recog-
nized IL Il il is within the line of effort that
the ia Eers have a perfect right to make,
and is entirely distinct from efforts to secure
profits or benefits for one class that are de-
n ed other interests.
y 1t is intimated in the report Of the organ
ization of the alliances mercantile depart
ment that merchants and dealers complain
of its work in taking away business from
them. People who find themselves losing
business from new competition generally
do complain; but they have no right to. The
only right to existence which the middle
men as a class have in enconomic morals, is
that they can perform the work OF exchang-
ing products more economically than by
any other system. II a new system is able
to take away business from the ordinary
merchants and dealers, it is a proof that it
does the work of exchange more economically
and has therefore the superior right ofexist-
ence. If the mercantile system cannot take
the farmers products to market and return
with their supplies as cheaply as the alli-
ance can, it is just that the mercantile sys-
tenn should die and the alliance shall take
its place.
But is that likely to be the result? 1t
may have such an effect temporarily and in
some respects. With regard to the market
ing of grain, il is doubtful if the alliance
can do the work of transporting grain to
market and selling it more cheaply than
the present system, does. That business
under the competitive system has reduced
margins to minimum, as should be the case
where staple products are handled in large
quantities with the risk of loss reduced to a
minimum. On the other hand in the
purchase of supplies, it is quite probable
that the reign of combination price-lists
and other means OF obstructing competition
have raised merchants margins to an extent
that makes their business peculiarly liable
to such attacks. The very fact alleged in
this report that the alliance method has
taken away half the business of merchants
is proof that the merchants profits were
excessive. Probably the best work of the
new plan will be in breaking down the
practice of merchants in getting farmers in
debt to them and using that lever to ensure
low prices for agricultural products and
excessive prices for the supplies which the
farmers buy. All such devices are shown
to work economic injustice when another
system comes in that can do the work of the
middleman more cheaply.
1t is not likely, however, that the new
plan will prove more than method OF
checking excessive mercantile profits. Its
inability to permanently perform the work
it undertakes more cheaply than the regular
system may be predicated on its own nature.
1t is proposed to include under single or
esnization the WORK Of selling all kinds Of