CHAPTER VIII.

PRICES.

The great mass of consumers are always anxious to know the _price_ of a commodity. To them it is the most essential consideration in a purchase. The thoughtless rich care little about the price, and those who don’t intend to pay, care still less about it. The most knowing of this latter class, indeed, often deceive the vigilance of honest tradesmen by affecting a peculiar earnestness about cheapness. It is quite true that many well-known articles in great demand have a certain market price, and some a certain fixed price; as for instance, a penny roll. In this latter case the judgment of the purchaser is directed to its size, or its goodness, or to both those qualities together.

§ It may be useful to trace out the course of purchases by retail, and to show the fine gradations of impediment which are insensibly interposed between the vendor and consumer, as obstacles to a full examination of the article by the latter. Of course neither an article of daily consumption ought to be taken as an example, nor yet one immediately wanted by a consumer, whose time is so valuable that it would be cheaper to go into the first shop he finds and purchase it at any price.

§ Let us suppose that a lady having some leisure goes out in search of a fan. She passes several shops in which they may or may not be kept for sale.

She sees some fans in a shop window, but as they are _not open_ she passes on, intending to return to them if she cannot suit herself elsewhere.

A few doors beyond there are some fans _open_, but none of them exactly suit her taste, and she does not like to give the owner of the shop the trouble of opening a number of fans, none of which may please her.

In the next street she sees in the window of a shop some fans, which _are open_. One of these appears to suit her, but there is no price marked on it. She does not like to go into the shop and examine more minutely whether the subtle implement she requires has sufficient strength to withstand its ball-room trials, lest it may be too expensive for her purse.

A short distance beyond another set of _opened_ fans present themselves to her notice in the window of another shop, each of them with its price distinctly marked upon it. One of these the hesitating lady prefers, _a little_, to the last she had approved, and she resolves to enter this shop and examine the fan. But perceiving before she enters, that there is no attendant in the shop, she thinks the mistress may be at dinner, or have gone up stairs to her baby, and she says to herself, “It is of no consequence; I will not disturb her now.”

Still passing onward she finds a shop in the window of which is a pretty fan, although not quite so good as the last, and within there sits the shopkeeper—but the door is _shut_.

Although the fan was not the most suitable the lady had seen, yet had that door been open, she would have entered, hoping that the fans exposed in the window were samples of classes kept in store within.

At last she finds all these impediments removed; a fan that will nearly suit her lies open in the window, with its price clearly marked, an attendant is in the shop, and the door is hospitably _open_. She enters and examines it, and finding it well made, asks whether there are others of the same class of pattern, to which the reply is that it is the only one remaining. Upon this she purchases the fan, although had she entered several of the former shops, she might have found fans both more exactly suited to her taste and at a less price. The _marking_ has decided her choice. It is not to be imagined that all, or even the greater part of these impediments, ever occurred to one person at the same time: but there are few who have not at different times felt the effects of most of them.

§ It is said that _ladies by education and birth_ occasionally amuse themselves by entering shops and giving interminable trouble, having no intention of making any purchase. This doubtlessly is a libel.

§ Several other minor impediments deter purchasers from some shops, and incline them to frequent others; amongst these may be mentioned an over officiousness in the attendants to recommend to the attention of the purchaser other articles than those he requires. This pressure to induce purchases is peculiarly offensive, and drives away the best customers.

The absence of a marked price upon an article, tends to defeat the effect of competition, as well as to produce loss of time both to consumer and vendor. It is therefore, to a certain extent, a cause of increase of price.

Its effect is to cause the same article to be sold at different prices in the same neighbourhood, thus counteracting that uniformity of price at considerable distances, which is consequent upon rapid and cheap communication.

§ As the extent to which this is carried even in a great city, may not be known, the following occurrence will afford an illustration:—

A gentleman wishing to make the light of his reading lamp approach more nearly to day-light, looked out for a lamp-glass of a blue tint. Having observed one of the wished-for colour in a shop window marked at 1_s._ 6_d._ he purchased it. After a considerable trial he was so satisfied with the comfort it afforded to his eyes, that he wished to have other lamps in his house similarly furnished. On returning to the shop at which the blue globe was purchased, he found that its proprietor had retired, and his successor was in a different line of business. Seeing in the window of another shop in his own neighbourhood, a coloured globe of the same size, he entered and inquired the price. To his great surprise the price was stated to be 3_s._; and on asking if any reduction would be made if he took a dozen or two, the answer was that in that case the lowest price would be half-a-crown each.

This naturally led him to suppose that the cheapness of the first glass arose from the accident of its proprietor being about to retire from business, and he therefore decided upon confining his indulgence in the luxury of white light to his single reading lamp. One day, however, he accidentally saw in another shop window a similar globe of blue glass. On inquiring within, he was informed that its price was 1_s._, and that the price per dozen was 11_s._

Under these new circumstances he provided a blue globe for every lamp in his house.

Now it is necessary to observe that these glasses, charged at 3_s._, 1_s._ 6_d._, and 1_s._, were offered for sale at three different shops not distant from each other a mile and a half, and were not only of the same size, weight, shade of colour and quality of glass, but had each the same maker’s stamp upon them, and may possibly have been taken from the same pot of glass. It is remarkable also that the cheapest glass globe, although exposed in the shop window, had no price attached to it.

§ It is obvious, if it were the custom invariably to mark the price upon each article exposed for sale, that such unreasonable differences of price in the same article could not exist. It is certain that, if the Royal Commissioners were to consult the dealer who charged 3_s._ for an article sold by his neighbour at 1_s._, they would be informed that it would be absolutely ruinous to have prices affixed to articles exhibited. Such a tradesman would assure them, and with perfect truth, that it would entirely destroy his trade. But if he cannot live upon the ordinary profits of capital employed in his trade, are the unwary public to pay two hundred per cent. beyond the market price, in order to support a tradesman unfit for his business? If, on the other hand, the Commissioners were to ask the opinion of the tradesman who sold the glass at 1_s._, he undoubtedly would not object to the general practice of affixing prices to each article. The opinion of the vendor of the glass at 1_s._ 6_d._ was sufficiently expressed by its being attached to that article.

§ There are several causes assigned for the admitted repugnance of shopkeepers to allow the price of any article they sell to be marked upon it.

It is broadly asserted that the public, being unable to judge of the article, will be guided too much by the cheapness of its money price, neglecting its other qualities, and will thus be induced to purchase worthless things.

It is always somewhat suspicious when the vendor volunteers to take care of the interest of the purchaser. It reverses the decision of the common sense of mankind, expressed in the ancient proverb, “_caveat emptor_.” Besides, it is by no means true that the public are so ignorant or incapable of appreciating all those other qualities. In some articles the difficulty is undoubtedly great, whilst in others it may require time to be spent in their examination even by those who are as conversant with the articles as the vendor himself. But why should the time of both parties be wasted by an examination, when the price may be such as to preclude its purchase, whatever may be its other merits?

§ Of all the various qualities which contribute to the excellence of any given article, that which it is most easy to ascertain—that which it is impossible to falsify—and that without the exact knowledge of which no purchase can possibly be made, is the very one which it is wished to withhold from the knowledge of the purchaser, until through the art of the vendor, the finer feelings of the customer induce him to think himself in some measure committed to purchase that of which he does not entirely approve.

It is from circumstances like these, that the prejudice against retail dealers arises and is confirmed in the public mind. There is no reason why that class should not be as highly respected as the possessors of extensive domains. To deserve that respect they have only to insist upon all persons in their employment abstaining from the slightest deception in serving their customers; to which rule it would be desirable to add, that the leading members of each trade should unite in discountenancing those who are guilty of any such practices.

§ The effect upon the sale of an article by the absence of its price may be illustrated by another example. Some years ago a large bazaar was held for some charitable object at the Hanover Square Rooms. It was patronised by the highest rank, and the beauty of the fair shopkeepers was even more attractive than the wares they had to dispose of. A collector thought this a favourable opportunity of adding to his collection a vase of porphyry: having paid the admission fee of 5_s._, he entered, and soon perceived some beautiful specimens of the object he desired. Having looked at them for some time, he selected in his mind one which he would willingly have purchased if it were within the limit (10_l._) which he had assigned for the gratification of his taste. There was, however, no price attached to any of the vases, and fearing that they were all beyond his means, he reluctantly departed without the wished-for acquisition. It happened that he mentioned in the course of the next year the circumstance to a friend who was acquainted with the history of the vase in question. The vase for which he would willingly have given 10_l._ was not sold at that bazaar, but some time after it appeared at a less fashionable bazaar And was sold for 5_l._

§ Most of those who visit the Exposition will each according to their means wish to retain some memorial of it. Many will have been economising during the previous year in order to purchase some object of utility or of pleasure either for their own use or to take back as remembrances to their family and friends. It would be very difficult amidst the vast variety of attractions, even if the price of each were marked upon it, to select the most desirable article within those limits of expense to which each purchaser is confined. But by forbidding the marking of prices, this difficulty is converted into an impossibility. The first step according to the decree of the Commissioners, would be to go round and ask the price of at least a hundred, if not a thousand articles. These must be written down by each inquirer unless the Exhibitors supply him with printed lists. Even if he make a selection out of these, it is a hundred to one that some other article in the enormous collection would, if he had known its price, have pleased him better.

§ If we examine the history of the earlier stages of society, we shall see the constant tendency of its institutions to facilitate the mutual exchange of commodities between its members, and to remove every obstacle impeding their interchange. When the population was thinly scattered over the country, the possessor of a fowl, wanting a pound of butter, was obliged to go some distance to a neighbour either to purchase the butter or to get it in exchange for the fowl. But it would have cost him more time than the worth of the butter if he had visited several neighbours to find out where it was the cheapest. To remedy this inconvenience, market days were established in the villages and towns at more or less frequent intervals. On these occasions each farmer sent one of the family to the periodic market, who sold the produce of the farm and purchased whatever might be required of their neighbours, who were each represented by one of their own family at that common market. Itinerant vendors of various manufactured articles flocked to these markets because they there met their customers with less loss of time and less fatigue.

Whilst these hawkers thus gained on the one hand, it must be admitted that they lost on the other those occasionally extravagant profits sometimes levied on the necessities of their isolated customers. But on the whole they derived from their trade a more regular rate of profit, because the competition side by side of rival goods and rival prices, rendered that profit much less fluctuating. Their greatest gain, however, arose from the time saved by all parties, which largely increased the consumption of their respective articles of produce.

§ When towns became enlarged, the same principle of mutual interest led to the selection of particular streets or quarters of the town by particular trades. In many cities on the continent, the jewellers, as well as some other trades, still occupy entire streets by themselves.

The next step seems to have been to hold a general exchange in a fixed spot at certain periodic times. This was necessary for the merchants and larger dealers, and for international exchanges. In great cities this was again subdivided into various branches of business, as—The Corn Exchange—The Coal Exchange, &c.

§ At these marts a class of men called brokers arose, whose business it was to sell on commission for the producers, and to purchase on commission for the merchants or other middle men.

The economy of time produced by this arrangement is very great. Let us suppose an exchange or bazaar attended by a hundred purchasers and a hundred sellers. Each purchaser, in order to become fully acquainted with the state of the market, must ask at least two questions of each seller—

1st. What is the price?

2d. What quantity have you for sale at that price?

This alone gives rise to _twenty thousand questions_. If, on the other hand, a broker is employed, each of the two hundred persons who constitute the market, will have to answer those two questions only to his own broker; consequently, there will only be four hundred such questions. If there are twenty brokers, these may meet together at the market, and each stating his commissions both for purchase and for sale, a list may be immediately formed by which the state of the market as to supply and demand becomes known, and in the event of there being but little difference in the quality of the articles, it becomes easy for the brokers to arrange the requisite exchanges at prices which are equitable for all parties.

§ Great, however, as this advantage is, it is small compared with another which we shall now consider. When a bargain is made directly by the two individuals interested in it, there usually occurs on both sides an attempt to appear more or less indifferent about it, in order to secure advantageous terms. Thus price is made to depend partly upon the personal feelings and qualities of the parties, and the less impulsive and more sagacious will gain considerable advantage over the hasty and inexperienced. A certain degree also of misrepresentation often occurs, and the price demanded is frequently greater than that which the seller is willing to take: thus the quantity of time consumed by parties themselves in bargaining, is always much greater than that in which their brokers can do the business for them on more advantageous terms.

Again: the broker has an interest in effecting sales, because he is paid in proportion to their amount. But he has no interest in favouring one class of his customers more than another: his profits depend entirely upon his knowledge, his industry, and his integrity. The necessity of the intervening broker arises from the imperfections of mankind, and when rigidly honest his services are invaluable. If one party is perfectly aware of all circumstances relating to the state of the market, he has no need of any broker, because he can acquire no new information: on the other hand, those who treat with him may as well save themselves the expense of a broker, because nothing can be communicated on the subject which is not already known.

When these principles, which are found to prevail in large transactions, are applied to the retail concerns of everyday life, the intervention of the broker is not required. This arises from the multitude of the transactions, the smallness of the individual amount of each, and the immense variety of the articles of exchange.

§ Another class of middle-men now come into existence, namely, Shopkeepers. The evils already pointed out still exist. One of the questions, it is true, need not be asked, for the quantity of an article held by a retail dealer, is usually much larger than the wants of any individual customer; but the question of price still remains. The removal of all these difficulties may be accomplished by the adoption of one simple plan—let the price be affixed to each article.

Other advantages result from the publicity thus given to price. Many who would not otherwise inquire the price, thinking it might be above their means, will now become purchasers. Others, not themselves intending to purchase, may incidentally cause their friends to purchase by quoting the prices they have seen affixed to certain articles. Others again, may be induced by the cheapness of an article to purchase it for uses for which it was not originally intended,—as, for instance, a beautiful chintz for papering a room.

§ In almost all works of industry, whatever may be the kind of excellence of an article exhibited, it is possible to produce one of greater excellence.

Take for instance a sheet of window-glass; its size might be adduced as the ground of excellence. The beautiful process of “_flashing_” by which it is made, is preceded by another in which the workman blows a large globe of glass. The size of the expanded flat circle of glass, called a “_table_,” depends on the magnitude of this sphere, which again is limited by the power of the workman’s lungs. But when larger tables were wanted, an observant workman found that if his mouth had been previously washed out with water, a greater sphere was produced. In fact, a small portion of the water, carried over with his breath, became converted into steam by the heat, and thus increased the pressure within. This led to a new limit, and there can be no doubt that by means of expensive mechanical contrivances, still larger spheres might be blown.

§ Now the whole merit of any such new process, in the eye of the manufacturer, would depend on the _price_ at which the produce could be sold.

The same principle prevails in almost all works of the civil engineer. With the talent now existing in that profession, scarcely any undertaking is impossible. The real and most important limitation is the _price_ of execution.

§ In the fine arts also the ultimate object still is the acquisition by the public of the productions submitted to their examination. If, however, the price is not stated, it may happen that a person of moderate means, more capable of appreciating a work of art than richer men, might be prevented from acquiring it by a feeling of delicacy. For not liking to ask the price, and thinking probably that it is beyond his means, the object may be sold to a richer competitor at a lower price than he would himself willingly have given.

This consequence of the absence of price is injurious both to art and to artists: it occasionally removes from the field of competition the best judges of real merit. It is true that in several professions a certain delicacy respecting money matters exists which is wanting in others. Medical men and artists are peculiarly subject to its influence; but it is not reported of any lawyer that he ever refused a fee, and it is recorded of some Secretary of the Admiralty that he claimed _a quarter of a year’s war salary_, on account of the two days interruption of peace by the combat of Algiers.

§ Another result of the prices not being marked upon objects is, that the public are unable to form any just estimate of their commercial value; consequently, no proper public opinion arises to assist the juries in their decisions. This is a matter of considerable importance: the duty of a juror at an exposition is quite different from that of a juror in a legal question. It is the business of the Industrial juror to avail himself of the knowledge and the observations of all around him. Much of what he thus hears he may be able himself to verify by examination or experiment, and thus public opinion will be more matured, and the decisions of the juries have greater weight.

§ Many of the qualities of the articles exhibited can only be ascertained by use, or even by their destruction. In such cases a single sample would often be purchased if it had its price affixed to it.

Another class, small indeed in number, but important from its functions, suffers the greatest inconvenience from the absence of price. Those engaged in studying the commercial and economical relations of various manufactures, either for the gratification of their own tastes or for the instruction of the public, are entirely deprived of the most important element of their reasonings.

If _every article_ had its price affixed, many relations would strike the eye of an experienced observer which might lead him to further inquiries, and probably to the most interesting results. But it is quite impossible for him to write to any considerable portion of 15,000 expositors for their list of prices, or even to go round and ask for it in the building itself.

§ Price in many cases offers at once a verification of the truth of other statements. Thus, to a person conversant with the subjects,

The low _price_ of an article might prove that it had been manufactured in some mode entirely different from that usually practised. This would lead to an examination of it, in order to discover the improved process.

The _price_ of an article compared with its weight, might prove that the metal of which it is made _could not_ be genuine.

The _price_ of a woven fabric, added to a knowledge of its breadth and substance, even without its weight, might in many cases effectually disprove the statement of its being entirely made of wool, or hair, or flax, or silk, as the case might be.

The exchange of commodities between those to whom such exchanges may be desirable, being the great and ultimate object of the Exposition, every circumstance that can give publicity to the things exhibited, should be most carefully attended to. The price in money is the _most important element_ in every bargain; to omit it, is not less absurd than to represent a tragedy without its hero, or to paint a portrait without a nose.

It commits a double error: for it withholds the only test by which the comparative value of things can be known, and it puts aside the greatest of all interests, that of the consumer, in order to favour a small and particular class—the middle-men.

The composition of that Commission must be most extraordinary, where an error so contrary to the principles and so fatal to the objects of the Exposition, could have been committed. It is not too late to apply at least a partial remedy to the evil, and it is scarcely credible that those with whom it rests, can remain unconscious of the mistake into which they have been led.

§ At the eighth meeting of the Commissioners, on the 28th Feb. 1850, further conditions and limitations were submitted to them by Col. Reid, one of which was—

“A price may be attached to the objects exhibited, and the objects, if sold, may be marked; but no sales will be permitted within the building.”

This judicious recommendation was, however, not adopted, for on the 11th April, 1850, the following rule was published—

“The Exhibition being intended for the purposes of display only, and not for those of sale....

“For the same reason the Commissioners have decided that the prices are not to be affixed to the articles exhibited.”

Several strong remonstrances were addressed to the Commissioners against the rule forbidding the affixing prices to the articles exhibited. Efforts were made both in public and through private representations to some of its individual members, by persons competent to advise, and anxious for the success of a great and meritorious undertaking.

In the report of the Leeds Committee to the Commissioners the following passage occurs:—

“They are, further, most strongly of opinion that the statement of price is essential, _if the Exhibition is to be of any real utility_. To the manufacturer or merchant price will be the test of comparative value and excellence in the majority of cases; and the inspection of particular fabrics, especially the products of other districts or countries, for the purposes of information or improvement, will be of no avail to them if price as well as style and finish is not before them.”

From the secretary to the Hamburg Commission a communication was received stating that—

“In consequence of the decision of the Commissioners with respect to the prohibition to attach prices, it is the opinion that there will be an _incurable deficiency_ in the Exhibition.”

From the Central Danish Commission a letter was sent, stating that—

“By reason of the regulation of Her Majesty’s Commissioners that prices may not be attached to articles sent for exhibition, and Danish goods being chiefly remarkable for their cheapness, a space of about 450 square ft. will be sufficient for Denmark.”

The Chevalier Bunsen transmitted a despatch from the Prussian government, _objecting to the decision_ of the Commissioners which _prohibits the affixing of prices_ to articles exhibited.

§ On the 14th November, 1850, an answer to this letter was approved, and ordered to be sent to all foreign commissioners.

The following are extracts:—

“The arguments advanced by you in favour of authorizing the affixing of prices to the articles exhibited, have received the maturest consideration of Her Majesty’s Commissioners, who are fully sensible of the great importance of the subject.

“At the same time, every wish is felt on their part, to give to each exhibitor the _benefit_ to be derived by him from the knowledge on the part of the public, of the cheapness of the articles exhibited by him. They feel, however, as they have already intimated, that by allowing the affixing of the actual prices to articles themselves, they should be making themselves responsible for the accuracy of those prices in all instances, and they would not consider themselves warranted in assuming this responsibility in the case of an Exhibition of the productions of all the nations in the world (however perfect may be the machinery in an individual country, like Prussia, for ensuring that accuracy, and for preventing the liability to deception). But Her Majesty’s Commissioners authorize the attachment of a notice to those Goods, of which the merit consists in the low price at which they can be produced, to the effect that they are _exhibited for cheapness_, and they have made it a condition that all persons making this claim must send the prices in an invoice to the Commissioners, who will instruct the juries to make this an essential element in their determination of their awards.”

The Decision No. 16 was then altered as follows:—

“Prices are not to be affixed to the articles exhibited, although the articles may be marked as shown for economy of production. But as the cost at which articles can be produced will, in some cases, enter into the question of the distribution of rewards, the Commissioners, or the persons intrusted with the adjudication of the rewards, may have to make inquiries, and possibly to take evidence, upon the subject; still they do not consider it expedient to affix a note of the price to the articles displayed. When the Exhibitor considers the merit of his article to consist in its cheapness, and founds a claim on this ground, he must state the price in the invoice sent to the Commissioners.”

This rule is a model specimen of what very clever men united in a large committee can assent to.

The first and last sentences of the oracular writing pronounce that—

Prices must not be affixed to any article exhibited for the judgment of the public, _even though_ there should be _no other reason_ for exhibiting it than its price.

The intervening sentence reveals to us that even Commissioners may in some cases be themselves unable to judge without a knowledge of the price—that it may perchance be so important that they must take evidence upon it. Yet, with a very flattering deference to the sagacity of the public, they seem to think _it_ can, without that information, form as good an opinion as their own.

It may be remarked that the permission to ask of the attendant the price of an article, on which much stress has been laid, depends on several contingencies, namely:—that every article has an attendant;—that he is at all times at his post;—and also that he _knows_ its price.

It is admitted that the Commissioners wish “to give each exhibitor the _benefit_ to be derived by him from the knowledge [of price] on the part of the public,” and also that the public cannot judge without that information, and yet, with singular inconsistency, they forbid the simplest and most natural mode of accomplishing this object, placing in fact an impediment in the way of their own wishes.

The only argument which is urged in favour of this rule, occurs in the reply to the Prussian application, in which it is stated, “after the maturest consideration on the part of Her Majesty’s Commissioners,” they feel “that by allowing the affixing the actual price to the articles themselves, they should be making themselves responsible for the accuracy of those prices in all instances.” This singular timidity in fact involves the Commissioners in far larger responsibility, since according to their own argument they admit that they are “_responsible_” for any statement they “_allow_” the exhibitors to make; it follows, therefore, that any statement they _command_ the exhibitors to attach to the articles exposed must be still more firmly _guaranteed_ by the Commissioners.

But they have very rightly ordered that every article shall have attached to it a statement of the _reason_ for which it is exhibited. Consequently _they guarantee the statements made by exhibitors_.

If, therefore, a piece of calico is exhibited entirely for the sake of the _permanence_ of the beautiful colour with which it is dyed, the beauty it is true may be evident to the eye, but the merit will consist wholly in the _permanence_. If this is stated by the exhibitor, the Commissioners themselves are responsible for its truth.

Again, some beautiful damasked fabric is exhibited; the only merit consists in its being made entirely of flax. This statement must be appended, or there is no use in exhibiting it; but if stated, the _Commissioners are responsible_ that there is no silk intermixed: multitudes of similar cases might be adduced.

But the truth is, that no such responsibility as that which they have assumed, ought to be placed on the Commissioners; their duty is sufficiently arduous, and their previous experience very limited. A certain per centage of error and accident, will necessarily occur, even to the most highly informed, and if they industriously exercise the knowledge they may acquire in carrying on this undertaking, the public ought to be grateful for their labours—to assist them in carrying out their regulations, and remonstrate strongly only when their rules violate the very foundations of those principles on which the whole advantage of the Exposition rests.

§ Nothing could have been more simple than to have repudiated any such guarantee, and to have left the public to trust to the integrity and honour of the exhibitors, which, considering the danger and facility of detection, would have been a sufficient security. The Royal, and almost all other scientific Societies, place at the head of each volume a distinct declaration that their authors alone are responsible, both for the facts as well as for the reasonings contained in their respective memoirs.

§ If the alternative were proposed, Shall the rule rigidly laid down be?—

“No article shall have its price marked on it”—or,

“Every article must have its price marked upon it,”—the disadvantages would be far less under the latter rule. The essential principle of the Exposition being the increase of commerce and the exchange of commodities, it might even be contended that sales should be permitted on the premises. The chief objection to this arises from the impediments it might offer to the free access of visitors to the examination of the articles exhibited.

Means, however, might be suggested by which that objection would be considerably removed. It might, for instance, be permitted to all those exhibitors of articles of moderate size, that they should bring in with them each morning a sufficient number of such articles, done up in paper ready to be delivered to the purchaser on his handing over the money price. This would apply to a large number of articles, as shawls, dresses, &c.

In other articles, sold by weight, packets might be previously made up of various weights, as one pound, three pounds, six pounds, &c. In those sold by length, parcels of fixed numbers of yards might be prepared.

If this system were still thought to be inconvenient from causing crowds in particular spots, it might be permitted to the attendants to take orders for articles to be sent home in the evening, and paid for either at the time or on delivery.

It is quite certain that under either of these conditions a much larger quantity of merchandize would be sold immediately.

Many would purchase on the spot who could never return for that purpose, or who were on the point of leaving London, and much trouble would be saved to a large class of purchasers.

The effect of the purchases made in the earlier days of the Exposition, would act as so many advertisements to attract visitors on the succeeding days; some articles thus purchased would probably be sent into the country by friends, and others be taken home by visitors, and many additional country visitors would thus be attracted before the end of the season.

Another and a very important advantage would also accrue from such an arrangement. The manufacturers acquire their knowledge of the demand for their productions from the factors and agents; these again from the shopkeepers who sell by retail to the public. Under the proposed circumstances, this knowledge would be acquired much more rapidly, and in the course of the first two or three weeks the opinion of the public would be known upon all the articles of most popular demand.

§ Upon the whole, the best plan seems to be that the rule should be—

“Every article must have its price attached.”

The exception should be exemptions granted by officers of the Commission, and the ground of those exemptions should be stated on the respective articles.

At the Exposition at Paris, in 1849, the general rule was that upon each article its price should be marked. Certain exceptions occurred, and in two instances the writer of these pages wishing to purchase specimens, although assisted most willingly by M. Le Dieu, the indefatigable head of the management always present on the spot, was unable, after some correspondence and much inquiry, to purchase or obtain samples of the objects he desired.

§ Perhaps the best way of complying with the rules of the Commissioners, and yet giving the public what they tacitly admit the public will demand, would be that the exhibitor should fix on each of his articles, in a conspicuous manner, a letter or a number,[9] and that he should have on the printed bill or card of address all the corresponding numbers or letters, and opposite to each the price at which it was to be sold at his warehouse or place of business. Each expositor might have a quantity of these addresses hung up or placed upon his stall, with an indication to the public that they were at liberty to take away these cards or bills.

It may be worth while to make a few observations on the reasons which probably influenced and misled the Commission on so important a point.

The tradesmen of London had been unduly and rather indelicately pressed to subscribe towards the Exposition; many were compelled to subscribe against their wishes. They saw few or none of the advantages which would accrue to them from it, and they believed, (erroneously,) that it would inundate the country with foreign and cheaper articles that would supplant their own trade.

It was thought that, when the public became acquainted with the wholesale as well as with the retail price of articles, such knowledge would lead to a reduction of the retail profits. The public, it was argued, would be reluctant to make a fair allowance for the various items which contribute to swell the amount of the difference between the wholesale and retail price of commodities.

§ It may be useful then to state broadly the principle, that it is greatly for the advantage of the public, both as regards economy of time and of money, that there should always exist a sufficient number of middle-men of various orders.

The shopkeeper, who is the one in immediate contact with the public, and therefore liable to the greatest misrepresentation, has, amongst others, the following expenses to add to the cost of production, which must necessarily increase the retail price:—

1. Commission to broker or other middle-man.

2. Cost of carriage from manufactory to shop.

3. Rent of shop itself, and perhaps, also of a warehouse.

4. Insurance of stock against fire.

5. Attendants to sell in shop.

6. Sending goods home to purchasers.

7. Expense of paper, string, &c. for packing goods delivered.

8. Loss by plunder of servants.

9. Expense of taking stock to diminish this loss.

10. Goods soiled or injured by exposing to sale.

11. Goods going out of fashion, cheapened by improved manufacture, or superseded by new inventions.

12. Giving long credit.

13. Bad debts.

14. Payment for his own personal services, as retail trader.

15. Interest on capital employed.

§ Admitting, however, that these grounds fully account for a large difference between the wholesale and retail price, they will by no means justify several practices which are too frequent at some shops at the west end of the town.

Different prices for the very same article are often demanded by retail tradesmen, according to the supposed position of the purchaser. Fish, for example, which varies much in price, and is at times very cheap, will seldom be found charged in the household bill much below the average price, unless the housekeeper is honest and looks sharply after the matter. Few circumstances more annoy a customer or are more injurious to the tradesman than this offence of having two prices.

When the same prices are charged equally to all customers, it often happens that it is much higher in the western than in less fashionable localities. This may arise from a vicious system of giving credit, and the extra price is necessary to compensate for risk of loss, and of capital lying unproductive. The effect, however, is injurious to the tradesman: many of those who pay ready money and would therefore be his best customers, desert the shop. Those whose means are small, go to a greater distance for the daily or weekly purchases; whilst those possessed of larger incomes, purchase the same articles, not only at a cheaper shop in the city but in larger quantities, and therefore more nearly at the wholesale price.

Our foreign visitors naturally ask how it happened that in the country of Adam Smith so strange a mistake could have been made: they inquire why none of the eminent disciples of that school were placed on the Commission? They will learn with surprise that our Minister of Commerce took, as befitted his office, an active part in it; that the great economist, to whose profound views and extensive experience in monetary affairs more than one minister has been indebted, was also a member; that even the apostle of _free trade_ himself, whose successful exertions have been crowned with merited reward, sat on the same commission; and yet that the talents, the knowledge, and the eloquence of such men, failed to convince the understandings of their colleagues, who, in violation of the first principles of “_Free trade_,” deliberately raised an obstacle against _competition_.

Since the first edition of this work was printed, the Crystal Palace has been filled by the industry and peopled by the nations of the earth. The fears of the ignorant, the hopes of the selfish, the vaticinations of the shallow, have proved alike groundless. Opinions expressed by the few who were competent to judge, which were then scouted as the ravings of visionaries, have now become realized as facts.

However great the admitted advantages resulting from the Exposition have been, still it has failed to produce anything like the information which it was calculated to afford. Many of those who most rejoice in its success regret that so much perseverance and energy have not, owing to one fatal error, been permitted to accomplish the full amount of good which they so well deserved to have achieved.

The public have now had ample opportunity of forming their own opinion upon the question of _price_; and they are almost unanimous in their decision that without having the _price_ on the articles they examine, the collection is of little intrinsic use to them, although it is a very agreeable and splendid show.

No attempt to answer the arguments on that question contained in the first edition of this work has yet reached me. An entirely different reason has now been assigned for the omission of _price_.

It is asserted that the shopkeepers of London persuaded the Commissioners that if _prices_ were permitted to be fixed upon articles, they, the shopkeepers, would destroy the Exhibition, by not exhibiting anything themselves, and by their determination ruin the producer, if, by affixing prices to his produce, he should expose the “_secrets of trade_.”

One of the proverbs most frequently appealed to is—deprecation of _protection_ by one’s _friends_: few cases have ever occurred in which its application is more necessary.

These friends thus maintain that the reason for _forbidding prices_ to be placed upon articles, stated by the Commissioners to have been arrived at after mature consideration, and _officially_ communicated by them to foreign governments,—was not the _real reason_.

The motive of the rule laid down by the Commission seems to have been a conscientious wish not to mislead the public, and was at most only an error of judgment.

The _friends_ of the Commission, however, have imputed to them a line of conduct which, to use the mildest form of expression, is highly undignified, and have suggested that they were driven to the adoption of the rule by fears which were absurd.

Some of the fashionable shopkeepers at the West-end may have endeavoured to alarm their too credulous customers by holding out such exaggerated estimates of their own power; but the mass of London tradesmen are a shrewder race, and estimate more truly their own influence. They well know, in the present state of rapid communication throughout the land, that any such attempt must necessarily fail. Imagine for a moment the present race of butchers attempting to starve London by combining to withhold meat. The utmost they could accomplish, if so inclined, would be to put their customers to some small and temporary inconvenience, at the expense of certain ruin to themselves.

The practical effect of forbidding prices has been very unfortunate. The great and meritorious efforts by which the plan has been carried out, have been shorn of much of their utility. A building of half the size, containing only articles _each_ of which had attached to it a short and clear statement of the grounds on which it was exhibited, and the price at which it could be acquired, would have conveyed far more instruction to the public, and have been far more effective for the promotion of commerce, thus fulfilling much more completely the two great objects of the Exposition.

To reply that prices may be obtained on inquiry, betrays a childish ignorance of the whole subject. It is practically impossible to obtain the required information; and those who have made the effort, have found that even in the cases where an attendant is present to explain the articles, he is often entirely ignorant of their price.

The effect of the absence of price on visitors is a source of painful annoyance to themselves, and of loss to the manufacturers and shopkeepers, from whom they would otherwise have purchased largely.

Foreigners are so sensible of this defect, that they have in many instances printed priced catalogues of their own articles. Their interpretation of our refusal to allow prices to be affixed is, that we are unable to compete with other nations in economy of production.

The philosopher and the economist, by whose researches and comparisons the public might have been instructed, wander through the lofty avenues and splendid galleries of the Crystal Palace, tantalized by expectations, raised but to be disappointed. They at last are compelled to abandon their mission in hopeless despair, wilfully deprived, by the managers of this industrial feast, of that information on which all their conclusions must ultimately rest.

[9] As by one of the rules each separate article exhibited must have a number, the same numbers might be used in the bills.