Economic phases of the wholesale market

Wholesale trade occuples an important position in American economle life. The industry as a whole handied a volume of business valued at more than 869,000,000,000 in 1929. Employment was given to 1,605,042 people and more than $3,000,000,000 was distributed in the form of salaries and wages. Wholesale trading is an ancient institution with its roots deeply imbedded in the beginnings of civilization. That the wholesale merchant continues to flourish today in spite of a number of developments which tend to eliminate him is an interesting example of the survival of economic institutions. The rise of chain-store systems and the spread of "direct selling" by manufacturers have given the old-line wholesaler severe competition. His ability to survive rests upon the economic principle of special ization. If he will take full advantage of his position as a specialist with all that this implies, his elimination is not as certain as his critics have been so ready to predict. The available facts indicate that he has certain potential advantages over competitors, which are evidenced in relatively low operating costs, and which seem to justify the conclusion that he will continue to play an important rôle in the modern distribution system.