Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-28

DuI WGdIII6I~
ing the storm. The
b stability of the
- business and in
pov,. dustrial structure
and its tenacity of
purpose, its strength and endurance
were fully eXemplifled.
weakness in Distribution.
The year started with business men
in hundreds of industries pledged to
such business and industrial programs
as had never before been undertaken.
They had every intention Of fulfilling
those pledges. They did their utmost
to do so, but what was not realized was
the fact that those pledges and those
programs represented not a normal
prSSperity, but an artificial stimulus to
production with consequent employment
and maintenance of buying power.
Before the year was over it became
evident that business could not be arti-
ficially stimulated and still be normal.
This resulted largely from a world con-
dition which involved practically every
nation on the globe in business recess
sion which made it impossible for other
nations to purchase and pay for prod
ucts from the United States in the same
volume in which they had previously
been absorbed.
From 1925 to 1929 American business
devoted itself almost exclusively to the
development and perfection of mass
production. Mass production in this
country attained a volume and an eff
cheney never known before in any other
nation, but distribution did not keep
pace. While factories, mills and pro-
ducers of raw materials turned out the
products, the selling organizations were
unequal to the task of dispoSing of
them. This was not owing so much to
lack of buying power as to inefficient
methods and lack OF adequate retail
outlets.
This trend was intensified when it
became certain that the other nations
of the world could not and would not
absorb the surplus produced under mass
production methods in this country.
The nation was producing more ma
tertals and products than could be alb
sorbed here and the other markets of
the world were practically closed. This
resulted in an excess which necessary
had to be absorbed.
BY mid-year business men realized
this fact and readjusted their schemes
of production, revamped their programs
Of distribution, intensified their sales
efforts and by the close of the year put
the country on such a basis that 1t was
| in a position to benefit from any de-
| velopment in the scope of the business
world.
Curve Turned Upward.
According to the foremost executives
Of industry and finance the end of the
year has seen the depth of depression
The curve has turned upward. This
accomplishment has been effected by
the readjuStment of production to con-
sumptive demands. Excess stocks OF
goods In most industries have been well
depleted. The shelves of the merchants
are almost empty. The buying power OF
the nation has not been seriously men
aced despite the assertion that unem-
ployment today involves over 100000
workers.
The head of the largest retail dis
tributing organization in the Middle
west declares that retail merchants are
almost out of stocks. Either they must
buy more and buy more Immediately OF
they will have nothing to sell. That
means either they will have to go out
of business or buy more goods. If they
but more goods there will be an i'm.
mediate stimulus to the production Of
more goods, which in turn will lead Il
increased employment, increased ship.
nents and start in the opposite direc.
ton Of the wheel of business towarc
prosperity.
Agriculture Suffered Most.
Perhaps the industry to suffer most
was agriculture. Every nation in thu
world is working toward the goal o!
Self-suflciency in raw products. Pur.
chasers abroad of raw materials are
diminishing. Production of raw ma.
teriaS in America so far as agriculture
Is concerned has been gaining insteac
of declining. Until that condition /,
corrected the position of the farmer /!
pound TO be precariouS from year Il
year. There can be no doubt that thu
Federal Farm Board did much towarC
aiding the Systematized marketing O.
agricultural products, but the Farm
Board was unable to convince the agri
cultural population that restriction O
acreage and reduction of production
was essential
Some OF the governmental as we'll a
the independent authorities on agricul
ture do not hesitate to declare that tn
future OF agriculture must follow tn
course taken by all business, that farm
ing must be done in large units, an,
that the day of the independent SINAI
farmer is almost over.
II addition to the drop in prices, tn
farmers OF many States We're desper
ately hurt by the drought of the lat
Summer. This undoubtedly will neces
state relief measures. However, tn
drop in the farm purchasing power ha
not been a major factor In the bushes
depression. Farmers as well as indus
trialists have to eat and they have d
wear clothes and their purchases hav
been almost up to normal. Whethe
those purchases were carried by thei
. bankers in the local communities. b
the merchants in those communities o
were paid for in cash is a question
! which has nothing whatever to do witt
the effect on the general bushes
, situation.
The Improvement statistically uaks.