86 PRESENT STATUS OF THE INDUSTRY. 



rise because the demand exceeds the supply; this is 

 determined by the market. It may rise also, because, 

 for reasons beyond the control of the market, the cost 

 of production is increased. It may fall because the 

 consumption declines and the marketman, who in 

 order to save himself from loss of interest, or of prin- 

 cipal, or of both, is willing to make a slight sacrifice, 

 lowers the price so as to reach a class of customers 

 less able to pay the customary price than his regular 

 patrons. It may also fall because the producer has 

 cheapened his processes, or has a large quantity upon 

 which he is willing to make only a small profit. Every 

 item of evidence points to the fact that the supply of 

 American ginseng is decreasing; therefore, the diffi- 

 culty and consequently the expense of obtaining the 

 root are growing greater each year. Under such con- 

 ditions an increased price must result, and has resulted. 

 On the other hand, the demand for ginseng is decreas- 

 ing because, being a luxury and a drug, people of small 

 means find they cannot afford to purchase it. 



Third. The case thus far detailed is fair and 

 should cause no complaint on the part of either seller 

 or buyer, but, regardless of the reduced demand and 

 the legitimately high price caused by lessened supply, 

 the price is forced higher still, and the market, already 

 threatened, shows signs of paralysis, which when it 

 occurs will be followed by a considerable reduction in 

 prices and a consequent sale, "in a hurry," of the 

 supply of ginseng on hand. 



Fourth. A period of readjustment must follow 

 and the industry must assume a more healthy form. 

 With the crash, and with the decline in price, the 

 hunters of the wild root, who already find difficulty in 

 obtaining a supply, will become discouraged and very 

 many of them will stop collecting the root. This will, 

 of course, reduce the quantity of wild root exported, 

 and the demand, which wiU have been stimulated by 



