Chapter 17

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I found the processes at the warehouse quite as interesting as Edith had described them, and became even enthusiastic over the truly remarkable illustration which is seen there of the prodigiously multiplied efficiency which perfect organization can give to labor. It is like a gigantic mill, into the hopper of which goods are being constantly poured by the train-load and shipload, to issue at the other end in packages of pounds and ounces, yards and inches, pints and gallons, corresponding to the infinitely complex personal needs of half a million people. Dr. Leete, with the assistance of data furnished by me as to the way goods were sold in my day, figured out some astounding results in the way of the economies effected by the modern system.

As we set out homeward, I said: "After what I have seen to-day, together with what you have told me, and what I learned under Miss Leete's tutelage at the sample store, I have a tolerably clear idea of your system of distribution, and how it enables you to dispense with a circulating medium. But I should like very much to know something more about your system of production. You have told me in general how your industrial army is levied and organized, but who directs its efforts? What supreme authority determines what shall be done in every department, so that enough of everything is produced and yet no labor wasted? It seems to me that this must be a wonderfully complex and difficult function, requiring very unusual endowments."

"Does it indeed seem so to you?" responded Dr. Leete. "I assure you that it is nothing of the kind, but on the other hand so simple, and depending on principles so obvious and easily applied, that the functionaries at Washington to whom it is trusted require to be nothing more than men of fair abilities to discharge it to the entire satisfaction of the nation. The machine which they direct is indeed a vast one, but so logical in its principles and direct and simple in its workings, that it all but runs itself; and nobody but a fool could derange it, as I think you will agree after a few words of explanation. Since you already have a pretty good idea of the working of the distributive system, let us begin at that end. Even in your day statisticians were able to tell you the number of yards of cotton, velvet, woolen, the number of barrels of flour, potatoes, butter, number of pairs of shoes, hats, and umbrellas annually consumed by the nation. Owing to the fact that production was in private hands, and that there was no way of getting statistics of actual distribution, these figures were not exact, but they were nearly so. Now that every pin which is given out from a national warehouse is recorded, of course the figures of consumption for any week, month, or year, in the possession of the department of distribution at the end of that period, are precise. On these figures, allowing for tendencies to increase or decrease and for any special causes likely to affect demand, the estimates, say for a year ahead, are based. These estimates, with a proper margin for security, having been accepted by the general administration, the responsibility of the distributive department ceases until the goods are delivered to it. I speak of the estimates being furnished for an entire year ahead, but in reality they cover that much time only in case of the great staples for which the demand can be calculated on as steady. In the great majority of smaller industries for the product of which popular taste fluctuates, and novelty is frequently required, production is kept barely ahead of consumption, the distributive department furnishing frequent estimates based on the weekly state of demand.