The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1896-08-13

contrary, from prices unduly inflated by
artiflcially restricting production the
public in general is grievously injured,
for on the one hand the consumer is
obliged to pay prices much above the cost
Of production and on the other hand the
wage Garner is obliged TO accept smaller
wages.
Those organizing trusts and combina-
tions to repress domestic competition have
a two-fold purpose in view. BY restrict
ing production they ourtail the supply Of
such articles as they monopolize in the
hope of raising prices, and at the same
time they are enabled to reduce the cost
OF production, for the lower wages can
be forced as the resrl 1t of thus arbitrarily
restricting the employment of labor the
smaller must be the cost of production.
And 1t is obvious that II, by the combina-
tion Of great industrial establishments
into trusts, prices can be advanced while
the cost of production can be reduced
the profits of those organizing such trusts
will be unduly large, and they will rapid
ly accumulate such wealth and power as
will enable them to crush out the efforts
Of independent producers to compete
with them.
But as injurious to the public veal as
has been the formation of trusts and COM
binatlons, their rapid growth, Of late
years, is not surprising. AS gold has
gone on appreciating, consequent on the
growing scarcity of money as compared
to the increasing demands Of a growing
population, prices have fallen, and falling
prices have cut into the profits of indus
try. In the face Of a rapid and oontinu-
ors fall Of prices no manufacturer who is,
by the nature of his business, obliged to
carry a large stock of goods in various de-
grees Of manufacture, can prosper, for the
constant depreciation of his stock rapidly
absorbs his expected profits.
= RSuch manufacturers are irresistibly i'm
PEELED to seek around for some means
Of checking the fall of prices which to
them is so disastrous. They feel the
curtailed demand for their goods, to which
the profit absorbing fall of prices is at
tributable, but IL is not In their power to
increase such demand while money is
growing scarcer, for it is the quantity OF
money in the hands of those, or that can
be controlled by those deslrous of making
purchases that makes the demand for
goods. When the quantity of money Is
restricted, when trade is dull, when EN-
ployment is slack, and when comparative
ly little money Is being dispensed a:
must be propcrtionately restricted, fol
no matter how much one may be in neet
of an article, unless he possesses thu
wherewithal, the money or credit will
which to purchase 1t, his desire for sucl
article will not make an effective de
mand.
So it is that, with falling prices, manu-
faoturers have found demand for thei
goods slackening and their products ac
cumulating on their hands. Such slack
ening of demand of necessity results il
ruinous losses to them, for they ar
unable to dispose of their products say
by cutting prices. To get higher price
for their products is to them a necessity
But how to do itP This Is the question
they are called upon to solve-on the righ
solution of which their very existence
dependent. 1t is clear the fall in price
, can only be checked by increasing the dc
mand or decreasing the supply. AS "
, have said, 1t is not in the power of manr
2 facturers to increase the demand for thei
Q goods while money is growing scaroer an
= dearer. They have strenuously striven I
A extend their markets, to find new buyel
a for their goods, only to find that buyer
are everywhere restricting their purchase
< not increasing them; and that the onl
a possibility of making new market
Q by displacing the goods Of some oth'
manufactures by underselling him.
q they have turned to the other alternativ
They have aimed to restrict produotio
and thus by artifcially curtailing I'll
: supply, to raise prices. But only
combination can prices be raised by r
: strioting production, for where there
no agreement among producers, thereto
:. of some to raise prices by restriotir
y their output, will inevitably be nullih,
by others increasing their product ii
moment orders are sent to them in larg
!, number as the result of restricted produ
tion on the part of others. Thus 1t is tn
8 only by the formation of trusts and col
a binations can those deciding on curtailil
!, production with view to raising pric
r. successfully carry out their purpos
II Consequently we see the formation
J. trusts and combinations with startlil
d rapidity. The growth of trusts is inju,
ous TO the public veal and dangerous
the body politics but, as we have said,
J.. view of the constant fall in prices, it
not surprising.
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