“Inasmuch as we are a chain store organization, 
amploying what we term ‘mass buying,” we natur- 
ally prefer to buy from manufacturers who have 
what is termed ‘mass production,’ and, except in 
those few departments where changes in style be- 
come an important factor, we encourage on the part 
of our manufacturers by our method of buying the 
>pportunity for mass production. 
“However, our business is hardly comparable to 
retail businesses in which rapid changes of style 
sause serious depreciation in inventories. 
“It appears to me that since 1920 all retailers have 
been more cautious regarding the size and amount 
of inventories on hand—and correctly so, but, on the 
other hand, I think that in many instances, this has 
been carried to an extreme. 
“This country, in my opinion, with the high cost 
of labor which many of us. sincerely hope will con- 
tinue to be high, can only hope to compete in eco- 
nomic and world markets on a basis of quantity 
production. 
“Eliminating those lines of merchandise which 
are subject to frequent style changes which neces- 
sarily must be merchandised on as nearly a hand-to- 
mouth basis as possible, it seems to me that the 
pendulum must swing back towards the method of 
buying which will enable the manufacturers to fabri- 
cate in quantities. In other words, there must be 
ind will be developed by economic adjustment, the 
mending of the ways between the manufacturers 
ind the retailers.” 
MANUFACTURERS SLow TO RECOGNIZE 
CHANGE 
Mr. Horatio S. Rusens, chairman of the 
board of the U. S. Industrial Alcohol Com- 
pany, who are manufacturers of cologne 
spirits and pure and distilled alcohol, after 
commenting upon the overstocked conditions 
of both manufacturers and dealers in the late 
summer of 1920, and the unprecedented scale 
of cancellation of orders which were subse- 
quently placed with manufacturers, goes on 
to say: 
“Obviously, stocks must be carried, and the sole 
question is, shall the manufacturer or the dealer take 
the risk. Formerly the dealer took his chances, and 
apparently the manufacturer prefers this policy con- 
tinued rather than take any risk himself. 
“The only defense of the dealer, who by his past 
experience feels that he must shun this risk, is to 
maintain the policy of hand-to-mouth purchasing. 
On the other hand, the manufacturer must, if he de- 
sires a large turnover, assume the risk formerly for 
the account of the dealer. 
“Reduced to the simplest form, the complaint of 
the manufacturer may be thus stated: that he asks 
the dealer to continue to take the risk which he 
yimself refuses to assume.” 
Points Out A PossiBLE DANGER 
Mr. renee pu Pon, the vice-chairman 
of the E. I. du Pont de Nemours and Com- 
pany, whose wide range of manufacture is 
well known, remarks that— 
“There is no question but that hand-to-mouth buy- 
ing has become the fashion; that this has resulted in 
he release of a great deal of capital from working 
:apital accounts of manufacturers and others, which 
apital has been put to work in other directions. All 
his is beneficial. 
“There is some danger that carrying this fashion 
00 far will result in shortages which will hamper 
yutput. Such a condition has not vet appeared.” 
HAND-TOMOUTH BUYING AS 
VIEWED BY THE STEEL INDUSTRY 
Mr. B. F. Jones, Jr., chairman of the board 
of Jones & Laughlin Steel Corporation, ad- 
vises that the change in the buying methods 
of their customers has been very pronounced. 
He states that— 
“Today the customer is buying for his immediate 
wants and is, apparently, very well satisfied with 
the results. We have attributed this change to two 
‘actors; the first is the very much improved service 
which the railroads are giving, and the second is 
‘hat during war-time the production was so in 
:reased in all steel lines that it is now considerably 
thead of the consumption. It is our opinion that 
this latter condition will be overcome when the 
-onsumption catches up with the increased produc- 
tion. I do not know of anything that would change 
hese conditions, as today in the steel business the 
narket belongs, to a great extent, to the buyer and 
he can do about as he pleases in his purchases” 
Mr. Arex. Grass, chairman of the Wheel 
ing Steel Corporation, questions very much 
whether the present practice of hand-to- 
mouth buying can be overcome to any great 
extent, although he remarks that, of course, 
there will be times when an unusual demand