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Show todws i.;coxo:.no kitcatiox. I I "There is a way really lo hoi" j business during this perio'.l of read- j juwtmtfiit! The reason that the variour campaigns to cheer up bus- i iness have failed is because, in the early part of a period of depression, business needs something more than cheering up. These periods of hard limes are not merely a state of mind. They are the result of excesses, exces-ses, the same as a spell of sickness, j They can be cured only by first re- ! moving the causes So-called "sun- j shine" and "boos! ing" campaigns are j as futile as -trying to cure a patient j with stimulatiants when what he j needs is a dose of physic! j "The present 'depression in business bus-iness was not an accident. If you were watching fundamental conditions condi-tions during 1010 or 1020, you knew full well i hat a depression would result. re-sult. Moreover, you knew approximately approx-imately how serious the depression would have to be. "If some one starts borrowing money at the bank, neither we nor any one else can tell how much he will borrow. When, however, lie lias gone the limit, i: is simple mat-l..r mat-l..r of ari hnietie lo figure how much he will have to pay back. Just so with a country's business. In the period of expansion we were borrowing borrow-ing and (lie im'la.ion of all business 'statistics .,!ums approximately how much we borrowed. Now we arc 'paying back and the extent of the depression shews that so far we have not quite paid back half of the total The whole sum must be paid back . before we can hope for a period of full prospe:i!y. "We can, however, reduce the waste of this readjustment period. We cau have very much better times ;hau we have now. We can do this if we. increase the production ol i ery person I do not refer to mass production. It would help nothing lo double your output by doubling your labor force. This, simply runs up expense, pushes up, pi ices and creates more goods than ' you can sell. If, however, you can double your own individual output and the output of each of your em-; ployees. the readjustment problem lor your particular plant will be solved: ' "Get this fact clearly in mind. There is no such thing as a genera, i uversurply of goods. All of tlie present talk about overproduction is fallacy. Both here and abroad I there are millions now in great need of goods. There never will be a ) general overs-upply of goods until everyone has more than he can use profitably. "What we do see is a larger supply sup-ply of goods than the consumeTs can buy-first, because the price is too high, second, because the consumer himself has not produced enough to earn the right to buy your goods. The second cause you yourself can do very little to remedy, except as you can influence the people with whom you come in contact The first cause, however, namely the price of your goods you alone can change. . If you can pro'duce and sell our prrj- duct a little cheaper than others are jdoing, you have no trouble In finding find-ing a market. I can point to certain concerns today which are working' at capacity to 'fill" orders, while : others in the same industry are suffering suf-fering depression. Remember, high prices do not make prosperity; it is the amount of service rendered which makes prosperity! Tlie most hopeful sign today is that an increasing number of business busin-ess menare beginning to realize the above fact This is fundamental improvement. Alrtady it is being reflected in increased confidence and a more stable tone in general business busin-ess conditions. The outlook for business in nearly every line is better. We are now laying the foundation upon which a great period of prosperity later will be built. |