Every evening, Wilmington daily commercial., 1920-03-11
SYSTEM OR CHAOS
IN BUSINESS WORLD
70 Average Man Economics ID
Dry Subject, but It's Study
Bccomess Fascinating.

Homer Hoyt, professor of Economics
and business Administration in Delaware
rnllcue has contributed to ''Thc Nations d
business an interesting paper, which
appears in tho March number of that
n,blcation. The article is well worth
pcrsuing and portions of it arc given
here.
Is business a game or a frce-for-all
fight? asks Prof. Hoyt. Is there system
in the business world, or is there nothing
but chaos? He says that IL depends on the
point of view.
First, there is the point of view OF the
man in the street He sees men hurrying
TO work, pushing and jostling, each man for
himself and the poorbouse take the hind
most. There is constant strife between
consumer and producer. between labor
and capital, between rival industries and
between different men in the same indus
try. In time of peace there is no law
prescribing how men shall cooperate in
business, there is no War Industries
Board to separate the o'essentiaI' sheep
from the "nop-essential" goats no Rail-
road Administration to decide who shall
have the right Of way. On the contrary,
there seems to be complete industrial
Independence. A manufacturer can devote
his plant to the production of neroplapes
or cosmetics, pianos or tootbbrushcs,
ms he sees fit. A boy can train himself
To be n doctor, lawyer, minister or a
carpenter, and he is not doomed by the
accident of birth to follow a given pro-
fessior.
In fact there seems to be no central
power house to direct our business actiyi-
ties so that they will work together rs n
single unit. Then why don't we run off
the track complotelyp Why doesn't
out industrial system fly to piecesY For
an answer we must take bird s-eye view
of the world of commerce. A philosopher
of business gazing at the throngs of New
York City from an aeroplane would see
many evidences of order in the business
world The erratic human element would
be dwarfed and he would see only the
business impulses of masses of men. He
would see definite currents of humanity
moving along grooved paths. some shunted
off into brokers' offices, and others switch
ed off into stores, shops and factories with
almost automatic precision. The man who
ON the level of the street appeared TO be
a detached and independent organism
is now seen to be playing as definite a
position in the game of business as If he
were following the orders OF a commanding
officer
w iuR iS Ailt fFHtlhl DoNtI lohrt itdt
drives this tremendous world maohine7
1t is nothing but for the desire of every
man to make profit. or, as it is often CALI
ed. private initiative. Without any di-
rectlon from an outside authority each
man is lied "bv an invisible hand to CO.
operate with his fellows in a worldwide |
team-plhy. 'The invisible hand" is the |
business instinct of q man which prompts /
him to seek the branch of industry that /
pays the highest profit and that also causes |
him to abandon a losing enterprise.
The result of every one following this
instinct is to distribute labor and capital
throughout the various industries of the
world so that all of the basic wants of man
are provided for. For instance, suppose
there is q great shortage of wheat Under
BUR present organization Of society this
shortage will At once be indicated by a rise
in the price df wheat. Higher wheat prices
mean more isrofit IN wheat-growing. and
farmers will Immediately bc attracted to
wheat production. The flow of labor and |
capital to the wheat sections Will increase
the productidn of wheat to the point |
where there is enough to satisfy the hunger
for wheat.
But why IS wheat production not carried
TO excess7 Why is the market not glutted |
with wheat Gor the simple reason that
when too much wheat Is produced the price
Of wheat falls, and the profits of growing
wheat decline likewise. The farmers conse-
quently restrict the acreage planted TO
wheat. with the result that labor and
,apital power is ar omatically shut off
rom wheat production and turned to
Dther industries.
Thus the world business machine auto
maintains a proper balance be-
iween all of its lntricately adjusted parts
,y means of price and profit levels, and no
me man or board of men seems to be
killed enough In the technique of the
Machine to run it as well as it will run it.
elf In fact, SO delicately balanced are the
wheels of our present business society
hat the attempts of the Government
o regulate 1T may stop the movement of .
he works together. No one man or board
# men seems to he skilled enough in the
of the machine TO run it az well
IS 1t viii run itself. For the business
machine has almost a magical capacity for
correcting its own deficiencies.