Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-08-15
ALL PRODUCTION CURBED
so MAN CAN KEEP PACE
Economist Sees Trustlike Danger in
High Industrial Technique Over
supplying Worlds Needs.

LIKING the prices of the commodities
| produced
The truth is that industry in the
United States could produce all the
American people could use in from
eight to nine months Of the year II
| plants operated to maximum capacity.
| The principle that is actuating in
dustry in thus curtailing production
is uncontrolled. business has found
| that the market becomes highly un-
stable. prices decline and profits ex-
ceedingly precarious. Therefore, busi-
| ness has been forced to restrict pro-
duction in self-defense.
Ruled by Trade Groups.
| Question. What is the means by
which this production is regulated?
| When did the regulation begin?
| Answer. Production in most of the
| larger industries of the country is
regulated through trade associations.
| The trade association as we now
know it was largely the outgrOwth
of war experience. All the plants of
the various industries were organized
| into associations for the purpose of
| co-Ordinating and stimulating indus
| trial output. After the war they did
not dissolve They proved their use
lulficSo NY gathering IdClS anu co
| covering market conditions, and In
periods of industrial disorga nization
| they have undoubtedly proved a
stabiliZing influence.
Question. What do you think about
this policy of restricted production?
Is it a good thing? Does It hold
real trust menace for the American
| people?
Answer The American people in
sense are between an upper milestone
Of too much production and unstable
prices and a neither milestone of too
little production and unreasonable
prices. If industries were to open up
full blast there is no doubt that the
| immediate consequences would be to
cause Industrial pandemonium. There
| would be violent price fluctuations,
| business depression and unemploy.
ment. Such would be the immediate
consequence.
But apart from such temporary
crises-a real race is all the time 60
ing on between mans powers of con-
sumption and the Whirlwind progress
of production. To some 1t may seem
foolish to imagine a state of glutted
production where to have to eat more
would be uncomfortable, or to have
to use several automobiles or wear
seven suits during the week would
be a nuisance. But the truth Is that
if our population continues to in.
crease slowly and our powers of enor
nous production continue to increase
as rapidly AS they have In the past
few generations, l feel that it Is quite
possible to produce so much that con-
sumption would become a tyrant-
stomachs would be impressed to save
no
Communicated to rescue unworn cloth
ing from moths, feet would be con-
scripted to take shoes off of shelves
and the human being would have real
work on his hands to prevent con-
sumption capacity from tagging
waStefully behind productive powers
of industry.
Middle Course Sought.
On the other hand. if industry
should restrict production generally
the Nation would Immediately suffer
from scarcity. That would lead to
savage attacks against the monopo-
liStic restriction of production.
Trade associations must. therefore,
steer a careful course between the
Scylla of too little production and the
Charybdis of too much production.
AS | was coming out of the office
building Where DIR. AlOultOn did his
daily work, a sort of resume of his
tory passed rapidly through my mind
throwing into high relief the startling
conclusions of the doctor. Many
times in the history of the world
great nations have filled the stomachs
of the few. In the course of history
the masses have generally been little
more than paupers at the table of
aristoCratic plenty catching eagerly
at the bread crumbs Of excess that
was patronizingly thrown to them.
But the United States is the first
great Nation to ever approach that
ancient dream of paradise of
plenty for all'' that has animated
thinkers for centuries. While the
wheels of industrial toll in the other
quarters OF the globe are striving for
greater speed. ours alone are faced
with the problem of surfeit and sur
plus. While others sweat in the
CRIME of trying to get production to
catch up with the urge of consump-
ton. we bask in the bliss of having
to put the check reins on the horses
of production for fear they will out
strip the powers of the masses to con-
SNno