“The net result of the present-day purchasing 
methods of distributors is very naturally an unequal 
division of the commercial load. Under the present 
methods the producing element in business is carry- 
ing the major part of the load. . .. 
"As indicated in your letter, viewing the situation 
from the standpoint of the distributor, it is, of 
sourse, good judgment from many angles to pursue 
the present-day methods, but it seems to us to be an 
open question as to whether or not in the final 
analysis the economies effected are real, when the 
complete problem of production and distribution is 
-onsidered as a whole. In other words, there is a 
~ertain burden to be carried, and if that burden 
is shifted entirely, or even very largely onto one 
zlement it becomes oppressive, and in the case of 
institutions without ample capital may readily pre 
sent an impossible situation. . . . 
‘You can readily understand that lacking either 
ample capital or ready and ample credit no manu- 
facturing institution could operate on such a basis. 
This, however, is exactly the situation under which 
underwear and hosiery is today being produced and 
sold. The result is that the risk is all of it carried 
by a comparatively few manufacturing institutions, 
0 each of which the burden is rather appalling, 
-ather than as formerly, being divided by forward 
commitments partially between these same compara- 
ively few manufacturers, and hundreds of thou- 
sands of distributors, each of whom were individu- 
lly carrying a comparatively small part of the 
otal load. 
SoLuTiON SEEMS DIFFICULT 
“I confess that a solution of this problem seems 
almost impossible, due to the fact that the operation 
of human nature does not readily lend itself to any 
argument as to equity, unless perchance there is 
some distinctive ultimate benefit. It is particularly 
difficult to solve such a problem when we are in a 
distinctly buyers’ market, where competition is 
great, transportation facilities good and every factor 
contributing to feasibility of the methods now fol- 
lowed bv distributors. 
“I believe something could be accomplished, if the 
thought of a community of interest between the 
sroducing and distributing elements, based on pure 
=conomic principles, could be brought home forcibly 
enough to the distributing element. I believe that 
anything that can be done to promote intelligent 
thinking on this problem is very much worth while, 
for only by a study of problems are solutions found. 
From the standpoint of the banking element in the 
business game it seems to me that the extension of 
rredit under present-day methods is, and will con- 
stantly become more hazardous than under former 
methods. This seems to me to be logical by virtue 
of the fact that a widely scattered risk in small blocks 
is surely less hazardous than one in larger units 
among a smaller group; therefore I feel that the 
banking element has a very vital interest in this 
sroblem.” 
Berieves IN CURTAILMENT OF 
ProDUCTION 
Mr. W. C. BrapLey, the president of the 
Eagle & Phenix Mills at Columbus, Georgia, 
which are large manufacturers of cotton and 
woolens, and who is also chairman of the 
>oard of the Coca Cola Company, has the 
‘ollowing comment to make: 
“Manufacturers, as a rule, have suffered greatly 
‘rom the adoption of hand-to-mouth policy by buy- 
»rs within the past five years, and this has been 
sarticularly true in cotton textiles during the past 
wo years. My own feelings on the subject are that 
1wothing can remedy or improve the situation except 
1 drastic curtailment in production, which policy the 
majority of mills have very largely been forced to 
1dopt within the past year, and I am very pleased 
0 advise you that we have been having an improved 
demand for our merchandise since July 1, and 
‘hings now look more nearly normal than at any 
time within the past three vears.” 
Sxourp Keep iN ToucH wiTH 
ConsuMER DEMAND 
Mgr. Epwin F. Greene, treasurer of the 
Pacific Mills, which are large manufacturers 
of cotton and worsted goods, with mills and 
print works in New England and the South, 
advises that “hand-to-mouth™ buying is but 
one of the serious problems which the textile 
industry has been facing. In commenting on 
the situation he advises as follows: 
*I am inclined to think that on the whole it is 
much wiser for the mills, wholesale distributors and 
retailers not to buy as far ahead as they were for 
merly accustomed to do and thus keep more closely 
in touch with the real consumer demand. This 
works a peculiar hardship on woven colored goods 
mills who require more time to prepare their lines 
and is a distinct detriment to all mills, but our ex 
perience has tended to show that in the past our cus 
‘omers in placing large orders frequently could not