Evening star., 1927-04-12
MEN AND MONEY
By NJ. S. Rukeyser.
(Convripht 1921

Big and small business men in the
present period are puzzled by the
sweep of unfamiliar economic forces.
They are operating in a new world,
in which the old pre-war yardsticks no
longer apply.
At it's fifteenth annual meeting,
scheduled to be held in Washington
on May 8, and 5, the Chamber of
Commerce of the United States will
attempt to formulate the new busi-
ness standards. 1t has invited leading
practitioners Of business to contribute
to the new orientation. The theme of
the congress of men Of commerce will
be "The New Business Era"
There is a widespread belief that
the new efficiency of American busi-
ness and banking will tend to mitigate,
If not abolish, downward swings in
the trade cycle. However, Bernard NJ.
Baruch, former chairman of the War
Industries Board, who thinks things
out for himself, irrespective of current
fashions of thought, is a little skepti'
cal of the golden age theory.
Problems In Production.
American genius" says Mr.. Ba'
ruch. in Forbes, has solved tremen-
question before us now is whether we
can solve the problem of overproduc-
tion. We have learned how to create
wealth, but we have not learned how
to keep that wealth from choking us
and from bringing on widespread pow
erty to the producers in the midst OF
their abundance.
This problem of overproduction
has ever been the most bathing prob.
lem of our industrial civilization.
Heretofore we have always permitted
1t to solve itself. relying upon the law
of supply and demand to recover our
industrial balance again. The law has
always worked, but II has worked
havoc. Has the time come. l wonder,
when we can relate production to con-
sumption in such a way as to assure
an even and continuous flow OF pros
perity from our marvellous industrial
machine, or must we continue to have
great ups and downs in industry, with
the resulting economic wastes and So
cial upheavals?"
Overproduction rather than scarcity
Is raising serious problems for Ameri-
can business managers.
Although any perfect coordination
OF supply with demand may be i'm
possible, American business concerns
have been moving in this direction.
There is on the part Of capable man.
ayers an increasing disposition to at
tune production schedules to actual
orders. Moreover, manufacturers are
keeping their inventories Of raw ma
terials and parts low and. like their
customers, are buying things as
needed instead of far in advance.
Good Railroad Service.
Excellent transportation service
the absence of fears concerning car
shortages and railroad jams--has. Of
course, been a decisive factor in MAX
ing 1t possible to keep on current
basis.
Moreover, the rapid shrinkage OF
inventory values during the commodity
price debacle in 1920 taught merchants
the wisdom OF handto-mouth buying
instead of the older policy Of accumu.
lating merchandise on the shelves
against fture sales.
With commodity prices declining,
despite the large volume Of trade,
there Is every inducement to cautious
buying. Whether merchants would
adhere so uniformly to a p0licy Of
hand-to-mouth buying at a time when
commodity prices were rising instead
of falling remains to be seen.
Meantime, despite the softening Of
commodity prices. wages are holding
steady and are in some special in