They possess large warehouses in which to make
up their orders, or keep in store articles purchased during
periods of depression; thus acting as a kind of flywheel in
equalizing the market price. 285. The effect of
over-manufacturing upon great establishments is different. When
an over supply has reduced prices, one of two events usually
occurs: the first is a diminished payment for labour; the other
is a diminution of the number of hours during which the labourers
work, together with a diminished rate of wages. In the former
case production continues to go on at its ordinary rate: in the
latter, the production itself being checked, the supply again
adjusts itself to the demand as soon as the stock on hand is
worked off, and prices then regain their former level. The latter
course appears, in the first instance, to be the best both for
masters and men; but there seems to be a difficulty in
accomplishing this, except where the trade is in few hands. In
fact, it is almost necessary, for its success, that there should
be a combination amongst the masters or amongst the men; or, what
is always far preferable to either, a mutual agreement for their
joint interests.
Pages:
293
294
295
296
297
298
299
300
301
302
303
304
305
306
307
308
309
310
311
312
313
314
315
316
317