The Washington times., 1927-12-21

may affect our daily lives.
What Is Remedy?
We used to have fierce indus.
trial competition, with prices and
wages in one industry booming
for q period, followed by disas.
trous depression and painfully
widespread unemployment, Then
there began to develop moves to
ward co-operation--you may recall
the famous Gary dinners before
they were banned. The world war
inspired supreme efforts to ex
pand production extraordinarily.
Peace brought immense surpluses
of products. And since then the
United States has suffered from
over.production--suffered In some
directions quite severely.
How could this new evil be
remedied: So
The need for corrective &C
tion was dire. For example, oil
was being rushed out of the
ground by the most wasteful meth
DDS in quantities far beyond our
consumptive capacity. with the
consequence that this previous ma
tional asset has been and IL being
deplorabIy wasted and millions oi
investors in oil shares have sui
fered acutely.
War stimulated inordinately the
growing of sugar. Again, peace
brought very awkward oversup
ply. ruinously low prices foi grow
ers and. consequently, far-reach
ing troubles.
Our productive capacity wal
found to exceed demand, in such
other industries as steel, shipbuild
ing. copper. coke. chemicals. cot
ton and woolen manufacturing
lumber, cement, shoemGking, pack
ing, automobiles, cotton growing
coal, agriculture.
Price Levels Fell
The terrible business collapse o.
1920-21 was one fruit of the a.
normal conditions created by oul
excess productive capacity. Tit
general price level fell drastically
So did security quotations. Unem
ployment became widespread. Ag
riculture suffered severely. Bank
ing failures and commercial fail
ures soon were strewinE the coun
try>
Although partial recovery wal
not long in setting In because o.
the natural figure and wealth
and initiative and enterprise o.
this wonderful land, there wal
still left surplus productive facil
tiles in many Industries.
What we are now witnessing
although many people have hardly
noticed it's a most significan
movement aimed at restriction O.
output.
Stopping Waste
The oil people have figured
most prominently In this funda
mentally important movement
They have made no secret o
their purpose.
The newspapers lately I1av,
recorded international efforts t,
reach an agreement looking {,
the curtailment of sugar produc
ton.
There are now institutes" o.
associations" or other compre
hensive bodies, interested in elm
mating or at least modifying over
production and. other evils affIict
ing various basic industries. Sec
retary of Commerce Hoover's &C
uvities directed at stopping vast,
and bringing about standardiza
ton and simplification in Variou
industries have been crowned witt
far-reaching results, Yet one ei
feet of this particular phase o
the dynamic Secretary's work ha
been to make it possible for dit
ferent industries to increase tn
production of the relatively limite,
number of sizes, qualities, etc., o
products, included in the standar
lied lists.
However, the many meeting
held under the auspices of the De
partment of Commerce have mad
it easier for leaders to come tc
gether and talk over the prob
lens of their particular industry
The question arises: Will thi
whole movement looking towar'
restriction bring inevitably
fresh measure of Government
regulation? Are we facing tn
liberalizing of the Sherman Law
and other statues against com
binations tending to restrict trad
and, as corollary, the enactmen
of new laws to make sure tha
the public shall not suffer from &C
operative action designed to effec
restriction of unnecessary output
Up to Business Leader
The question, the problem,
many-sided. One thing can b
said: If any industry or indus
tries so act that restricted outpu
results in unfair prices to tn
public, then those guilty can ex
pect ruthless, punitive action b,
Z Congress and by the courts.
Over-production admittedly is al
evil. Restriction can be SO con
Quoted as to become either a bless
ing or q worse evil than over
production.
1t is up to our business leader
to decree which it shall be.
Copyright, 1927, by 3. c. Forbesl