Business: Inventories

To John Businessman inventories mean one thing only—unsold goods. When production outstrips consumption, inventories pile in warehouse and on shelf, and sales-managers grow obstreperous. When inventories pile as high as they did in 1929 a depression follows. When they pile as high as they did last summer a "recession" is the aftermath. There are innumerable theories (generally monetary or social) to explain why buyers rarely outnumber sellers but few economists dare ignore the storm warnings of mounting stocks. By last week it was clear that ever since April 1 inventories have been...

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