Evening star., 1938-08-23

consequent increased output and en-
ployment. An economic system func-
tions in satisfactory manner only
when high level OF production finds
its complement in a distribution sys-
tenn which meets the needs of the
people for their proper development.
The control function in distribution,
as we'll as in production, does not,
under normal conditions. rest in gov
ernment. but with private enterprise.
In eauging their own operations the
distributor and the producer must rely
upon the buying power and attitude
Of the consumer. Unless a satisfactory
commodity is produced and marketed
through fair practices at q price the
consumer can afford to pay, produc-
ton inevitably slows down with ad-
verse results throughout our economy.
Many business leaders have initiated
policies which, while not generally
accepted throughout their respective
industries, have produced significant
results. illustrate with an actual
case. An Eastern corporation, having
business amounting to $4,000, 900 per
annum. was able through constant
research to eliminate waste in produc-
| ton. keep in touch with the changing
taste and requirements OF its GUS
toners and at the same time main
tain quality at the lowest possible
cost. Furthermore. this corporation
has been continuously operating six
days a week in manufacturing and
distributing its product
The public is gradually gaining a
better understanding of the practical
operating problems of modern busi-
ness Yet there needs to be a greater
realization of the fact that American
business men. as class, are not all
selfish, grasping individuals seeking
every opportunity to take advantage
OF labor, stockholders and consumers.
Business men of such constructive
ideals should be encouraged and not
discouraged in the pursuit Of this OBJ
jective. The effort should be to extend
understanding and broad, sympathetic
cooperation among all groups, to the
end that the interviewer problems shall
be wisely and equitably adjusted for
all. In this way our civilization will
be preserved against all modern "isms"
that would destroy industrial and
political freedom. We have the tools
to work out our problems. Do we
have the vision to use-and not mis-
use-them?
AS early as 1920. prompted by public
Indignation over prevailing malprac-
tices and rising distribution costs, the
Congress ordered an investigation into
the marketing and distribution of i'm
portant products of farm and factory,
The report growing out of this in
quiry was one of the most constructive
contributions to contemporary knowl-
edge on this subject. The revelations
OF excesses, needless Intermediates
and high costs were astounding, and
these revelations gave a severe shock
to public confidence. From these
studies there developed a more gen.
eral recognition that the problems
OF distribution were manifold. In
reality, 1t meant the entire category
OF activities that exert an influence
on cost after the raw materials have
been processed Distribution costs not
only include preparation for shipping,
packaging. wrapping, labelling and ad-
vertising, but credit facilities and the
various marketing methods.
Some Evils Corrected.
Many modern business and indus
trial leaders have taken a realistic
view OF their own vulnerability and
have corrected some Of the grosser
evils, yet this attitude has not been
sufficiently general.
An uniformed or unethical minority
can demoralize the entire system. I'm
perfections and injustices still serve
as brake on the wheels Of activity
and deprive workers of their rightful
opportunity to earn a livelihood, and
the consuming public OF access to
needed goods. There can be no COM
promise with practices that operate
10 THIS end. even on the part of q
small minority, when the welfare Of
all is involved.
The distribution system, as well as
the system of production, must be
purged Of uneconomic and wasteful
practices and function at less cost.
The modernization of policies will seek
a more uniform but less spectacular
rate OF profit for those engaged in pro-
duction and distribution to the end
that people generally may enjoy more
OF the fruits of sustained mass pro-
duction efficiency.
Since mass production falls short
OF its objectives without the support
OF mass consumption, prices must be
better aligned with demands and pur-
chasing power. The proper balancing
requires constant adjustment 30 that
shifting needs and demands may be
promptly met through proper changes
In the production and distribution
functions.
Goods must be offered 50 as to meet
as broad need as possible. When
the prices are so high that volume
is sacrificed, the needs of the con-
sumer go unsatisfied. Not only must
the price of individual commodities be
in proper relationship, but the re-
wards of various factors Of production
must be proportionate to their con-
tributions. 1t is not in the interest of
maximum efficiency that the prices
OF either goods or services be held at
q level which precludes full employ
ment, but the objective of wage, as of
other policies, should embrace full and
continuous employment. Thus wage
rates should be in proper relationship
to other costs and prices If the sys-
tenn is to function effectively.
It is the amount in the pay en-
velope and its relation to the exist
ing price structure-not hourly rates
of pay-that determines purchasing