The advocate., 1890-07-30

law Of supply and demand alone controls
prices.
These people seem to forget that sup
ply and demand are predicated on some
thing else, Of which they have lost sight
Of altogether Supply is dependent ON
the energies and intelligence Of the peo-
pie who produce; and demand rests upon
the ability to buy. Hence they mean
practically the same thing, for the pro-
duction Of one thing gives ability 10 buy
another, and hence stimulates n demand.
AS demand is coupled with the ability to
buy, and the ability TO buy rests upon
production, we can readily see that there
is no limit TO demand under an equit-
able system OF distribution except as II
is limited by production. Therefore
there can be no such thing as over-pro-
duction. In this connection we quote
the following from the report Of the sill
YER commission:
OyerproductiOn Is one Of these alleged causes,
although food, clothing, houses and everything
useful 10 mankind are, and probably always VIII
be, In deficiency rs compared with the needs or
them. The constant effort Of the human race ls,
and ought 10 be- 10 multiply production
The aggregate effective demand for products,
that Is 10 say, the aggregate demand accom-.
panied With the ability to perchase, always IN,
nVNfImnIInm
mean substantially the same thing, and are
nothing but two faces TO the same flCt. Every
new supply OF any product is the effective hnSlS
OF new demand for some other product. The
capacity 10 buy Is measured exactly by the eX-
tent Of production, and there Is practically no
other limit TO consumption than the limit TO
the means Ot payment. Oyer-prOduCtlOn Of par
tlcular things may occur, but that Is soon cor
reCted by the loss Oi profits I'm producing them.
OveT-prOduCtlOn I'm the general and In the aggTe-
held only by those who win regret the discovery
OF the steam engine, the Splnnlng.IennY and the
sewing and tlreshlng machines, ana who believe
that while mankind have the skill TO devise
methods Of Increased production they have no
capacity TO provide for the distribution Of the
products Of Industry.
Production Is the sole and only source NJ
wealth, and In fact Is hut another name for
wealth. Oycr.prOduCtOn must therefore mean
supeTabundant wealth, and the Idea that either
superintendent wealth or the facilities for pro-
ducing It can be the melting cause Of rapidly
spreading poverty Is repugnant % the common
sense Of mankind. All reputable authorities
concur I'm treating the idea as The idlCSt OF Gin-
cles, and wholly unworthy OF serious notice
The experience and observation Of the
writer has been that those who advocate
that over production IL the cause Of the
present industrial depression are either
wholly ignorant Of the relation existing
between supply and demand and the
laws which govern both, or that their in
terests are such that any change in the
present economic system Of the govern
ment would be, in some degree, disas-
trous to their interests. It will be OBJ
served that bankers, lawyers, ,bondholders,
brokers, owners Of railroads and all
classes whose income is In the shape OF
interest, fees or salaries, are inclined to
apply the Over-prOduction theory as the
cause Of the present depressed condition
Of agriculture.
Another very important point In this
connection TO which we wish 10 call at
tention is That while these people are