tell so far ahead what would be wanted and were 
left with a large stock of unsold goods which not 
only handicapped them in continuing an active, 
ap-to-date business, but reacted on the mills. 
“Perhaps the same thing is true of this problem 
which applies to so many others—that there is some 
compromise. I have not the slightest doubt but 
what the ‘hand-to-mouth’ buying policy has been 
~arried to an extreme and the wholesalers and re- 
‘ailers will be forced to carry a somewhat larger 
stock than has been necessary during the past two 
or three years, when they were reducing accumu- 
lated stocks of goods. . . . 
“To sum up, I am quite sure that the Pacific Mills 
would be better off to so organize our manufacturing 
and selling that we can quickly supply our customers 
with the varying and changing kinds of goods which 
‘hey really need to satisfy the fickle fashions of mod- 
ern times, but with it all we must necessarily run a 
considerable amount of business in fair volume and 
[ thifkk this will be possible, too. 
“I think you will find that many would agree 
with me in the thought that some of the largest 
osses are taken by manufacturers and merchants in 
vetting rid of goods which are no longer in demand 
-ather than in our inability to make money on goods 
which have a higher cost but which are produced 
ind offered at a time when they are in demand.” 
FreQUENT STYLE CHANGES RESULT OF 
PresENT CONDITIONS 
Mr. Epwin S. Baver, the president of 
Julius Kayser & Co., manufacturers of silk 
gloves, fabric gloves, silk hosiery, silk and 
cotton goods, dress nets and veilings, states 
that the *“hand-to-mouth™ buying problem 
has been a continual source of perplexity to 
manufacturers in this country. He writes as 
follows: 
“For the manufacturer whose productive facilities 
limit him to the manufacture of only certain articles, 
it is not so easy to operate in the manner of the re- 
tailer. With advance orders not forthcoming, he 
must take chances and speculate in the manufacture 
of his products. Of course, he will do this to as 
small an extent as possible. There is no question 
but that this interferes seriously with the economies 
which result from mass production, but he must 
seek to obtain mass production within the limitations 
thus imposed. The result must be a certain increase 
in the cost of manufactured articles. The price 
which the manufacturer is able to obtain for his 
sroduct does not depend solely upon cost, but upon 
a competitive condition, which has been rendered 
more acute by the national tendency to overproduc- 
tion of articles in which business may be active. 
Therefore it is often dificult for him to make the 
retailer bear any portion of the increased cost. 
“Personally, I cannot look forward to any im- 
sortant modification of the ‘hand-to-mouth’ buying 
solicy as long as manufacturers continue in their 
sractice of overproduction. Merchandise managers 
who control the buying of the larger department 
stores have been so successful with this policy that 
aly a serious shortage of many articles of manu- 
facture can influence them to change it. As there 
Joes not seem to be any prospect of such a shortage 
we must accept the present condition as a continu 
ing fact.” 
Must Co-orRDINATE PRODUCTION 
AND DEMAND 
Mr. Epwarp FrescHL, the president of the 
Holeproof Hosiery Company, also regards 
the hand-to-mouth buying problem as most 
perplexing. He states that he believes the 
present condition will continue for a genera- 
tion, and that he cannot see anything ahead 
that could be expected to change the situation: 
“This being the case there is nothing for the 
manufacturer to do but to make up his mind that he 
is up against a real gamble. If he plays safe and 
surtails his production, he is on the other hand going 
to be unable to give service to his customers and will 
>ventually be out of business. If he piles up inven- 
:ories in order to give adequate service, thus meeting 
competition, he is going to be sure to guess wrong 
at some time or other and take a tremendous loss 
either as regards style fluctuations or costs of ma- 
rerial. 
“Summing this up, it looks to me as though the 
manufacturer is in a position where he will have to 
axert all the ingenuity he possesses to co-ordinate 
his production with the demand which he may be 
in a position to expect” 
In conclusion, Mr. Freschl remarks: “It 
seems to be a situation that calls for comment 
similar to Mark Twain's remark about the 
weather, namely: ‘Everybody is discussing it, 
but nobody does anything about it,’ ” and the 
only solution of the problem as far as he can 
see is for each manufacturer to exercise eter- 
nal vigilance in the matter of his production 
and sales.