River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1911-07-27
Overproduction
and Cooperation


magazines are continually advocat-
ing increased production of agricul-
tural products. If the feeders of
cattle, sheep or swine are making
money, or if wheat, corn or sugar
beets are making money, those facts
are put before us in large type and
we are urged to get busy and com
pete with our successful neighbors.
This would divide up the business
and produce such large quantities
that all of us must lose money, ex-
cept the men who urge the matter.
Those would would make money on
account of increased traffic.
When we have over production in
farm products and the farmer is los
ing all the fruits of his labors, then
everything is booming in a bust
ness way. While the farmers are
losing several billion dollars worth of
labor, the business system is max
ing it. When we have over produc
ton in manufactured products, in
stead of reducing prices to enlarge
consumption, as the prices on farm
products are reduced, the manufac-
turer closes down production and
throws the laborer out of employ
ment. Then in short time, al
though there is plenty of demand
for farm products, there is no money
to buy. There are hungry
people on the, street looking for
work and naked, starving children
at home. The farmers remain at
home patching mp their old clothing
trying to make things last until
dark clouds lift The bankers, the
mortgage companies and the loan
ing institutions Gall of the toilers
creation) are working for dear life
to collect their loans or increase
their securities to make safe.
Someone cries out, whats the
matter?" Someone says, PANEL"
Someone cries, What caused it,"
Someone says, "Over- production.
1t seems to me that a crosSeyed
Egyptian mummy could plainly see
that there is something wrong from
the farmers standpoint.
We see a large hardware store do.
ing an extra large business on
reasonable profit. We rent a room
and enter into competition and divide
the business on a reasonable profit.
Then enter two more men and rent
rooms and again divide up the
business, and when it is divided we
find that we must increase our pro-
fits to make living. So we all get
together, cooperate and fix prices
and make money. Then four more
men enter town, rent rooms and go
into the hardware business for they
see the prosperity of those that are
in it.
Now we have overdone it. We
must make prices so high that the
consumer can not reach them. We
form a trust. We put all eight
hardware stores under one manage
ment. We issue bonds and stock
four times or more the, value of our
old machinery or shelf-worn out-of-
style goods, and we attempt TO pay
dividends or interest on the bonds
and stock. When we find that we
cannot possibly sell enough goods
at high enough prices to pay the in
terest and dividends, we say, Let
us nationalize our big business.
Let the Government supervise our
business by naming prices that we
shall pay for the raw material and
labor, also set the peice at which we
shall sell, allowing a reasonable
profit on our capitalization. This
will make our securities as good as
Government bonds"
Will that not be soft snap? But
who will guarantee the farmers a
reasonable profit? ]. u Shade
Breeders Gazette.