November, 1931
13
A u t o m a t ic A g e
B R IN G B A C K S M A L L B U S IN E S S
T he
past
fe w
years
ha ve
w itnessed
a
w ild n a tio n a l tr e n d to w a rd b ig business a n d
la rg e co rpo rate m ergers.
I n th e face o f
a ll th is th e a u to m a tic tra d e f o r som e reason
s till re m ain s a n in d u s tr y o f s m a ll m a n u
fa c tu re rs a n d s m a ll business m e n as oper-
tors.
T he fe w a tte m p ts to g et c o in
ope rate d m a c h in e s in to th e re a lm s o f b ig
a u to m a tic tra d e
can feel t h a t it is h e lp
in g solve th e g re a t p ro b le m o f h a r d tim e s
b y g iv in g w o rk to s m a ll in d e p e n d e n t b u s i
ness m e n as o pe ra to rs a n d jo b b e rs , a n d
to m a n y s m a ll m a n u fa c tu re r s over th e
c o u n try in m a k in g th e v a rio u s ty pes o f
m ach in e s.
A v e ry in te r e s tin g a n d sug ge stiv e e d i
b u s :ness som eh ow have n o t fu lfille d th e
dre am s o f th e back ers o f such efforts.
M e c h a n ic a l difficulties f o r th e tim e b e in g
to ria l app e a re d in th e N e w Y o r k J o u r n a l
o f C o m m erce on th e th e m e o f th e “ s m a ll
m ay
he re :
e x p la in
w h y v e n d in g m a c h in e s have
n o t yet entered th e re a lm s o f b ig business.
B u t a t a tim e w h e n all in d u s tr y is h a n d i
capped
by
a
g e n e ra l
depression, it
is
a
f ittin g tim e to in q u ire a b o u t th e g en e ra l
fitness a n d efficiency o f s m a ll business
enterprises, since th e a u to m a tic tra d e is
m ad e u p a lto g e th e r o f s m a ll firm s.
A f t e r a ll th e e co n o m ic reasons an d ex
p la n a tio n s
fo r
any
p a n ic
are
in,
it
s till
re m a in s tim e t h a t th e c h ie f cause fo r
fin a n c ia l tro u b le s is t h a t v icio us c h a in
w h ic h d ra in s th e m o n e y fr o m th e b o tto m
laye rs o f
fe w a n d
society in to th e h a n d s o f th e
m ig h ty , w ith ever in c re a s in g
ra p id ity .
T here
are
m any
reasons
w hy
m o n e y te nds to flow in th is d ire c tio n , b u t
w h e n th e flo w becom es too s w ift a n d in
too la rg e q u a n titie s th e n a d estructive re
a c tio n m u s t com e sooner o r la te r. W h a t
ever b usiness c usto m s a n d policies th a t can
be a d op te d to keep a m o re even d is tr ib u
tio n o f m o n e y a m o n g th e lo w e r classes a n d
s m a lle r business enterprises, a n d also serve
m a n u fa c tu r e r ” a n d w e are re p ro d u c in g it
A conference w as in session a t S ilv e r B a y ,
N . Y ., re c e n tly to co nsider th e p ro b le m s
o f th e
s m a ll m a n u fa c tu re r s
try , n u m b e r in g som e 190,000.
o f th e
coun
I n his g re e t
ings P re s id e n t H o o v e r m ade one s ta te m e n t
over
w h ic h
th e
people
m ig h t p r o fita b ly po n d er.
of
th is
c o u n try
H e sa id :
“ T he sig nificance o f y o u r c o nference is
clear. B usiness s ta b ility w ill be b u ilt n o t
o n ly o n th e fo u n d a tio n s o f th e in d iv id u a l
efficiency o f th e in d u s tr ia l u n it, la rg e a n t
s m a ll, b u t u p o n th e ir u n ite d e ffo rt in
a n a ly z in g th e ir c o m m o n p ro b le m s a n d th e ir
c o o p e ratio n in a s o u n d p r o g r a m .”
F o r som e years p u b lic a tte n tio n has been
directed la rg e ly to bigness.
I n c o n te m p la
tio n o f m a m m o th c o m b in a tio n s a n d co m
b in a tio n s o f c o m b in a tio n s , m a n y o f us
fo rg e t th e im p o rta n c e o f th ose s m a lle r
u n its w h ic h , i f n o t th e b a ck b o n e o f th e
business o f th e c o u n try , are a t a n y rate
a g re a t fa c to r in its s tre n g th . Size is n o t
essential in a ll th in g s . T he v illa g e tr u c k
as a check on th e s w iftn e ss w ith w h ic h
th e m o n e y d rain s b a ck in to th e h an d s o f
th e m ig h ty ric h w ill have to be encouraged,
man- m a y fu n c tio n as p e rfe c tly in p e r fo r m
in g his p a r t o f th e tr a n s p o r ta tio n business
or society m a y e v e n tu a lly destro y its e lf
b y b e c o m in g to o rich a t th e to p.
A rece n t c o n v e n tio n ha s served to in v ite
a tte n tio n to th e s m a ll m a n u fa c tu re r , a n d it
sho uld be cle a rly rec o gn ized th a t a n y
policies, or a n y in d u s tr y t h a t encourages
the s m a ll b usiness m a n a n d th e sm a ll e n te r
prise is ju s t t h a t m u c h h e lp in k e e p in g
m o n e y m o re even ly d is trib u te d w here it
sho uld be.
P e rh a p s th e o n ly reasonab le
in its la rg e r sphere.
T he s m a ll m a n u fa c
tu re r o fte n c o n trib u te s m ore to th e w a lfa re
o f th e c o u n try in p ro p o rtio n to th e v o lu m e
o f business he tra n s a c ts th a n does th e
g re a t c o m b in a tio n w ith executives a n d
super-executives a n d b a n k in g a n d ti*ans-
p o r ta tio n c o nn e c tio n s an d a n a r m y o f e m
w a y ever to m a k e pan ics less severe w ill
be to a d o p t a n a tio n a l p o lic y o f g iv in g
every possible e n c o u ra g e m e n t to s m a ll
business enterprises. F o r t h a t reason th e
© International Arcade Museum
o f th e c o u n try as th e r a ilro a d system does
ployees f a r rem ove d fr o m th e ir e m ployers
in spite o f a ll th e efforts th e em ployers
m a y m a k e to effect closer re la tio n s . The
so-called s m a ll m a n u fa c tu re r is o fte n th e
m a in s ta y o f th e s m a ll c o m m u n ity , th e m a n
w hose e n erg y b rin g s in the c o n s ta n t s tre a m
o f m o n e y fr o m th e o utsid e w o rld w h ic h
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