Between the years 1811 and 1831, three hundred and forty-eight steamboats were built on the Mississippi and its tributary streams. During that period a hundred and fifty were lost or worn out.
Of this hundred and fifty: worn out 63
lost by snags 36
burnt 14
lost by collision 3
by accidents not ascertained 34
Thirty six or nearly one fourth, being destroyed by accidental
obstruction.
Snag is the name given in America to trees which stand nearly upright in the stream with their roots fixed at the bottom.
It is usual to divide off at the bow of the steamboats a watertight chamber, in order that when a hole is made in it by running against the snags, the water may not enterthe rest of the vessel and sink it intantly.
Chapter 24
On Over Manufacturing
284. One of the natural and almost inevitable consequences of competition is the production of a supply much larger than the demand requires. This result usually arises periodically; and it is equally important, both to the masters and to the workmen, to prevent its occurrence, or to foresee its arrival. In situations where a great number of very small capitalists exist—where each master works himself and is assisted by his own family, or by a few journeymen—and where a variety of different articles is produced, a curious system of compensation has arisen which in some measure diminishes the extent to which fluctuations of wages would otherwise reach. This is accomplished by a species of middlemen or factors, persons possessing some capital, who, whenever the price of any of the articles in which they deal is greatly reduced, purchase it on their own account, in the hopes of selling at a profit when the market is better. These persons, in ordinary times, act as salesmen or agents, and make up assortments of goods at the market price, for the use of the home or foreign dealer. They possess large warehouses in which to make up their orders, or keep in store articles purchased during periods of depression; thus acting as a kind of flywheel in equalizing the market price.
285. The effect of over-manufacturing upon great establishments is different. When an over supply has reduced prices, one of two events usually occurs: the first is a diminished payment for labour; the other is a diminution of the number of hours during which the labourers work, together with a diminished rate of wages. In the former case production continues to go on at its ordinary rate: in the latter, the production itself being checked, the supply again adjusts itself to the demand as soon as the stock on hand is worked off, and prices then regain their former level. The latter course appears, in the first instance, to be the best both for masters and men; but there seems to be a difficulty in accomplishing this, except where the trade is in few hands. In fact, it is almost necessary, for its success, that there should be a combination amongst the masters or amongst the men; or, what is always far preferable to either, a mutual agreement for their joint interests. Combination amongst the men is difficult, and is always attended with the evils which arise from the ill-will excited against any persons who, in the perfectly justifiable exercise of their judgement, are disposed not to act with the majority. The combination of the masters, on the other hand, is unavailing, unless the whole body of them agree, for if any one master can procure more labour for his money than the rest, he will be able to undersell them.
286. If we look only at the interests of the consumer, the case is different. When too large a supply has produced a great reduction of price, it opens the consumption of the article to a new class, and increases the consumption of those who previously employed it: it is therefore against the interest of both these parties that a return to the former price should occur. It is also certain, that by the diminution of profit which the manufacturer suffers from the diminished price, his ingenuity will be additionally stimulated; that he will apply himself to discover other and cheaper sources for the supply of his raw material; that he will endeavour to contrive improved machinery which shall manufacture it at a cheaper rate; or try to introduce new arrangements into his factory, which shall render the economy of it more perfect. In the event of his success, by any of these courses or by their joint effects, a real and substantial good will be produced. A larger portion of the public will receive advantage from the use of the article, and they will procure it at a lower price; and the manufacturer, though his profit on each operation is reduced, will yet, by the more frequent returns on the larger produce of his factory, find his real gain at the end of the year, nearly the same as it was before; whilst the wages of the workman will return to their level, and both the manufacturer and the workman will find the demand less fluctuating, from its being dependent on a larger number of customers.
287. It would be highly interesting, if we could trace, even approximately, through the history of any great manufacture, the effects of gluts in producing improvements in machinery, or in methods of working; and if we could shew what addition to the annual quantity of goods previously manufactured, was produced by each alteration. It would probably be found, that the increased quantity manufactured by the same capital, when worked with the new improvement, would produce nearly the same rate of profit as other modes of investment.