Storage and Stability: A Modern Ever-Normal Granary

"Storage and Stability: A Modern Ever-Normal Granary" is a book written by Benjamin Graham in collaboration with David Dodd, first published in 1937. The book focuses on the concept of a "granary," a metaphorical term for a system that provides stability and security to farmers and traders by maintaining a stock of goods during times of abundance to sell during times of scarcity.

The authors propose the implementation of an "ever-normal granary" system, which would ensure stable prices and reduce the impact of seasonal variations in supply and demand. This would be accomplished by setting up a government-sponsored agency that would purchase surplus products during periods of high supply and store them for later sale during periods of low supply.

Graham and Dodd argue that this system would not only benefit farmers and traders but also the overall economy by stabilizing prices and reducing market fluctuations. The authors provide historical examples of countries that have successfully implemented similar systems, such as China's "grain-saving operation" and the United States' Agricultural Adjustment Act of 1933.

In addition to discussing the practical implementation of an ever-normal granary, the book also covers broader economic topics such as market cycles, speculation, and the role of government in regulating markets. The authors argue that a free market can often lead to market failures and economic instability, and that government intervention is necessary to maintain a stable and productive economy.

Despite being written over 80 years ago, "Storage and Stability" remains relevant today as a pioneering work in the field of agricultural economics and market stabilization. The book's insights and proposals have influenced policies and practices around the world and have served as a foundation for modern-day discussions of food security and economic stability.

In conclusion, "Storage and Stability: A Modern Ever-Normal Granary" is a valuable contribution to the field of economics, particularly in the area of agricultural economics and market stabilization. Its focus on the concept of a granary and the proposal of an ever-normal granary system provide practical solutions to issues of price stability and economic security. The book's historical examples and economic analyses provide a framework for understanding market cycles and the role of government intervention in regulating markets.