The Fort Worth gazette. (Fort Worth, Tex.) 1891-189?, 1891-05-07
THAT oyERPRODUCTIoN STUFF.

really be no such thing as overproduction-
the world stands in need of everything the
agriculturlst can produce, and is ready to
pay FOR it; indeed the world cannot help
paying for it owing 10 the fact that il is an
indispensable True the prices paid may at
times appear unproiitably low, but this
condition of affairs is never due to over
production but rather TO competition. A
high price paid for oar products is born of
deficiency and nothing else; 4 low price
may be accepted as representing the
regular standard-nothing more nor less.
Even AT the lowest price paid some pro-
Guccrs OF the articles on the market are
making money. IL would not be possible
for prices TO run so low as not 10 admit of
ihis. in other words somebody is raising
what the world wants cheaper than the
zane articles are being raised by somebody
else and when the supply is well up TO the
demand those cheaper producers set the
selling figures, but they invariably do it
with an eye single to fair profits for them
selves. So long Us their supply holds out
their selling figures must rule, of course,
ana il is not 10 be wondered at that they
should rule 70 the ruin Of the parties who
cannot produce so cheaply as they do.
This is merely 4 working out in accord
aure 70 business principles. You find the
same kind of thing prevailing in the com
mercial world well as in the farming
Fgorld. There are hosts of merchants in
every city who cannot make money selling
goods, so thCs say the mercantile business
= ovcrdonc. The supply Of goods in the
place is far above the demand, they CON
tend, and Yet there are other merchants in
that same place who are actually getting
rich on their business. They may not APP
pear TO have more patrons than the failing
merchants have. The character and prices
of the goods exposed TO sale may be pre-
rsely the same in both cases. AT first
thought how these different results should |
occur would seem a little mysterious. OF |
course you Will know that one man IS sell |
Ing his goods at 4 fair profit. while the |
d her, who must sell at the prices set by |
his neighbor. IS selling at no profit al all. !
everything considered, and often at di- |
rect loss. You cannot attribute it TO an |
over supply of goods on the market, for |
was this the case the gaining merchant |
would be in the same boat with the loser !
No, it is MOI over supply, and yet |
it Is something. If you could get at the |
bottom of everything figuring in the prem
i-es you'd soon find out what it is, That |
gaining merchant has a lnack of buying
his goods cheaper than has the loser in
The same business, and upon this he sets !
his selling figures at a isir rate of profit
over his purchase figures, thus shaping the
market to his own reasonable gain and TO
the loss of the man who pays higher for his
goods
Precisely the same rule holds good with
reference TO farming. Prices of farm pro
duets never seem so low as to leave every
farmer selling without reasonable profits, |
while, at the same time, there is very
large representation of farmers who never
make money of their products save in ease
Of 4 supply so short as TO force the con-
sumner into paying what might with no |
great degree of improperly be termed
figures for what he buys.
Under these circumstances it ought TO be
plain TO every thinking mind that the thing
Tor US TO study is not how we shall regulate
the supply TO starvation figures for the
consumer but rather how to raise more
Than we are now raising, and do it at less
cost 10 ourselves. Overproduction cuts no
Kind Of figure in the case-with expensive
production lies all the trouble
Let Us take the article of cotton, for in
stance. 1t is quite generally understood
That the cost Of producing pound of cotton |
is about eight and half cents. Doubtless
he production costs 4 large per cent of our |
planters fully that much. If the selling |
price happens to rule At ten cents pound |
hose producers get along rather well, |
though even at this price they have nothing
in particular 10 Drag of: but if ii happens TO
get down 10 nine cents they are merely |
making ends meet. If it goes below nine |
.ents they are on losing grounds decidedly.
NOW. if no one could produce cotton at less
han eight and a half cents Il pound, the
selling price of the staple would never fall
below ten cents. but here comes i'll the rub |
There are plenty of planters who can pro- l
luce cotton n six cents pound, as avail ,
able statistics abundantly show. In light /
'rop year these planters have regular boz
l-uza, aud they get along well enough in 4
,rAS"n of heavy crops, FOR three OF even
wo and half cents clear profit on every '
5ound OF their product is regarded as not !
Il oil = bad thing, even for farming. They |
\ IL! set the selling price and run off all | !
heir product ut what I merchant would | :
.onSider Z decidedly good per cent, while | !
he other fellow who is out eight and half | !
eHts on each pound must come TO that | i
cling price and let his product go
= loss, or at least without !.
,rofts. Yet there has been no a
'yerproduc,ioH, as must beevinced in the i
set that all the cotton raised viii find ready '
ale al the prevailing figures. There has n
ever yet been such glut in the market as i
+ f cotton wholly ont OF dcmaud-there |
ever viii be; nor has the market ever !,
lied 50 low that the man producing his /
'aple At six cents pound did not make 4 | o
pod business profit on its sale.
Then away with all this twaddle about | il
Fer production. and substitute cheaper n
reduction as the most sensible theme for | :,
sensible people. Level up and never s,
own" was the advice Of one of Americas | l
reatR5t statesmen. and il WAS certainly | {