, 1921-06-28
Individuals Behind Industry
GEORGE HUNTINGTON HALL.

High price OF construction is the
real. original, and underlying cause Of
the mysterious Industrial depressions
which ave occurred in the industrial
nations when these depreszfons have
come in the absence OF external and
recognized causes-
Adam Smith told the world more
than a hundred years ago. In that
magnificent work entitled The
Wealth % Nations" tina high prices
retarded consumption. and the world
a believed It. theoretically. ever
since: but he people have not believed
II practically. except to the extent
they have seer and realized its VERT
ncation and that has been confined 10
such things as were sold for immedi.
ate delivery. In these the advanc IN
prices, and the falling Off in demand
and in delivery. were seen and rccor
nized. because they all came At the
same time. Now. in construction. IL is
very different In all TIE Industrial
booms which n taken place. The
people have seen n volume OF actual
construction and delivery Of materials
not only Increase as prices advanced.
but have seen IL keep on increasing for
many months. even after prices had
advanced from so to 100 per cent. and
80 they ave believed that high prices
did not retard construction. The peo-
pie have simply taken ara
for facts. and have failed 10 realize
that high prices have their retardinx
effect on cach thing at the time the
high price is fixed on that thing
whether II is fixed by n verbal pur.
chase OF an article for Immediate de-
livery. or by a written contract Of
purchase for an article for future de-
livery; and so they have not believed
that high prices retard tho
ton OF iron. lumber. brick. stone.
cement Inc all the other great staples
which are consumed In the construc-
ton Of buildings. railroads. ships. and
the other great construction projects
which make up the bulk OF all the
manufacturing and mechanical indus
tries OF a nation.
There seems to be an underlined i'm
preston that the idustries OF a nation
ara The result OF some gigantic force
that nothing but a great external
calamity, such as war. pestilence. or a
financial panic can check. and so.
when depressions come without a rec.
ognized cause. the public looks for
some great or mysterious thing to &C.
count for them. A careful analysis
shows that the industries of a nation
are nothing more than an aggregation
of the acts OF individuals. An indi-
v.dual's act may be of as little impor-
lance to h whole industries of a ma
tion as a drop of water to an ocean
but the ocean is made up of nothing
but drops of water. When an individ-
ual acting Tor himself. or for the bust
ness which he directs, contemplates an
expenditure for n permanent improve
ment. he plans and specifica-
tons, n on these asks for bids on
the work. When the bids are received,
and he has determined on what he
considers for his best interest, or the
best interest OF the company n di.
recta. he acts. and II that action is the
acceptance of one of the bids, then the
ocean Of industrial prosperity has re-
ceived n more drop to swell Its
volume. II that action is to curtail or
abandon some existing business, then
the ocean of Industrial depression has
received one more drop to add to its
gloom.
This individual act may not be
known outside of a few people. and
may attract no more notice at the
time than the drop of water which
falls into the ocean. but it is the ag-
gregation of just such acts that makes
up the mighty force which turns the