CONSTRUCTIVE REMEDIES NEEDED 281

Unfortunately, however, it is in the manner in which distribution
 gathers sales volume that the factors of antagonism
lie. Distribution in the search for volume employs all the
devices at its command—and those devices are exhaustive
sither in themselves or in their effect upon production.
In developing sales volume, distribution has amplified and
intensified its advertising and selling appeal. Such methods
are expensive; and the resulting charges are part of the
present high cost of selling. The installment plan has been
an important factor in selling automobiles and other high unit
cost articles. While the result in terms of volume has been
gratifying, in terms of distribution, there have been significant
 additions to the cost of creating volume. To the degree,
obviously, that the unit sales cost increases. the economy of
mass production is offset. . . .
Since, however, the forces of production and distribution
can never have complete compatibility, the solution of the
problem lies in a reasonable compromise between the two.
And it is this compromise between the needs of production
and the requirements of high-pressure distribution which will
mark the new era of American business.

The problem of the next era in industry, he concludes,
will consist in the proper adjustment of the new forces
of production and distribution. As stated in his own
words.

The future holds the development of a new science—the
study of the most effective balance between production and
distribution. Undoubtedly, industry will be compelled to add
to the two great agencies of sales and production a third
organization mechanism—a department of merchandising. In
‘his unit there will be prejudice toward neither sales nor production,
 but an interest in both. Here will be balanced the
needs and desires of both the selling and the manufacturing
ends of industry for the best interest of the net profits of the
business as a whale