The advocate and Topeka tribune., 1893-01-18
MONETARY COMMISSION.
Report Of the United States Monetary
Commission, Appointed by Act Of'OOn-
greg August l5, 1879.

The real cause of the present universal
arrangement Of commerce and industry
must be ascertained before the proper
remedy can be devised. The causes
assigned are various and contradictory,
Many Of them never had any existence in
fact. Others are inadequate or absurd
in themselves, or by reason Of being con-
fined to narrow localities or special
interests, cannot have produced mis-
chief which reaches all places and all
productive interests.
Overproductlon is one Of these alleged
causes, although food, clothing, houses
and everything useful to mankind, are
and probably always will be in deficiency,
as compared with the needs of them.
The constant effort OF the human race is
and ought to be to multiply production.
The aggregate effective demand for pro-
ducts, that is to say, the aggregate de-
mand accompanied by an ability to
purchase, always increases with produc-
tion. Supply and dcmand mean sub
stantially the same thing, and are
nothing but two faces of the same fact.
Every new supply Of any product Is the
effective basis Of new demand for some
other product. The capacity to buy is
measured exactly by the extent Of pro-
duction, and there is practically no other
limit to consumption than the limit Of
the means of payment. Overproduction
of particular things may occur, but that
is soon corrected by the loss Of profits in
producing them. Overproduction in the
general and in the aggregate is impossi-
BILE. The contrary opinion will be- held
only by those who regret the discovery of
the steam engine, the spinning-jenny,
and the sewing and thrsshing machines,
and who believe that while mankind
have the skill to devise methods of in
creased production they have no capacity
to provide for the distribution Of the
products Of industry. Production is the
sole and only source Of wealth, and in
fact is but another name for wealth.
Overproduetion must therefore mean
superabundant wealth, and the idea that
either superabundant wealth or super
abundant facilities for producing it can
be the melting cause Of rapidly spread
ing poverty is repugnant to the common
sense of mankind. All reputable authori-
ties concur in treating the idea Of gen.
eral oVerproduction as the idlest Of
fancies, and wholly unworthy Of serious
notice.
Too many railroads are said to have
been built, when it is clear that there is
an urgent need for more. Undoubtedly
too rapid construction may create an
abnormal demand for and rise in the
price Of the special materials required in
railroad building and may possibly cause
an abnormal advance in the interest on
money by absorbing too much floating
capital in fixed form, but such evils
are self. corrective. Railroad building
will always halt under such Circum-
stances until the cost OF materials and Of
capital ceases to be excessive. The ten
dency of industry and enterprise to take
profitable directions, and to withdraw
from those which are found to be un-
profitable, needs no other regulation
than to be let alone.
Money sunk in railroads premOturely
built and at present unproductlve 10