ECONOMY IN DISTRIBUTION.

We had lately occasion to proceed by an omnibus from a country town to

a station on a railway, by which we were to return to the city where

we have our customary abode. On arriving at the station, we learned

that we should have to wait an hour for an _up_ train, the omnibus

being timed in relation to a _down_ one, which was about to pass. Had

this arrangement been the only one readily practicable, in the case,

we should have felt it necessary to submit uncomplainingly to the loss

of our hour; but it really was not so. We had come in one of three

omnibuses, none of which had more than two or three passengers. Why

should not one have come at this hour with _down_ passengers, and

another come an hour later with _up_ ones, thus by the same trouble

giving more accommodation? We found that the three omnibuses are run

by so many hotels, and that an arrangement for general convenience was

impossible, as it might have interfered with the hotel business. On

the continent, the government would have ordered matters otherwise:

with us, the genius of _laissez faire_ permits them to be as we

describe.

It is in the same part of the country that a system exists amongst

bakers, which we described many years ago in these pages. There are

three towns, triangularly arranged, about ten miles from each other.

One or more bakers in each has a van, in which he sends bread every

day to the other two. As there is no witchcraft in the making of

bread, it might be as well for the inhabitants of each town to be

supplied by the bakers of their own place exclusively, and then the

expense of the carriage would be saved. Such, however, is the keenness

of competition in the case, that each baker strives to get supporters

in the neighbouring towns, and willingly pays for van, horse, and

driver in order to retain their custom. We presume each van goes

thirty miles a day, and that there is not much less than 2000 miles of

this unprofitable travelling weekly in connection with the three

towns.

Any one who has a sincere respect for the principle of untrammelled

industry, must lament to see these its abuses or drawbacks. But our

commercial world is full of such anomalies. The cause is readily

traced in the excessive number of persons engaged in the various

trades. Not many years ago, the number of bakers in a town known to

us, of the same size as one of those above referred to, was fourteen,

while everybody acknowledged that four might have sufficed. In such

circumstances, it is not wonderful that expedients like that of the

van are resorted to, notwithstanding that it can only diminish the

aggregate of profit derived by an already starving trade.

Few persons who walk along a street of nicely-decorated and apparently

well-stocked shops, have the slightest conception of the hollowness of

many of the appearances. The reality has been tested in part by the

income-tax inquisition, which shews a surprising number of

respectable-looking shops not reaching that degree of profit which

brings the owner within the scope of the exaction. It may be that some

men who are liable, contrive to make themselves appear as not so; but

this cannot be to such an extent as greatly to affect the general

fact. In the assessing of the tax, no result comes out oftener than

one of this kind: Receipts for the year, L.2200; estimated profit at

15 per cent., L.330; deductions for rent of shop, taxes, shopmen's

wages, and bad debts, L.193; leaving, as net profit, L.137. The

commissioners are left to wonder how the trader can support his family

in a decent manner upon so small a return, till they reflect that

possibly a son brings in a little as a shopman, or a daughter as a

day-governess; or that possibly an old female relative lives with the

family, and throws her little income into the general stock. It is,

after all, a fact capable of the clearest demonstration, that a vast

number of shopkeepers' families maintain decent appearances upon an

income below that enjoyed by many artisans--what goes, in the one

case, for the decent appearances, being enjoyed in substantial

comforts in the other, or else misapplied, to the degradation of body

and mind.

The evil primarily lies in an erroneous distribution of industry.

Where twenty men offer themselves to do a duty to society for which

three are sufficient, it cannot be good for any party; whereas, were

the extra seventeen to apply themselves to other departments of the

labour required for all, it would be better times for the whole

twenty. The light, easy, and pleasant occupations are those most apt

to be beset by superfluous hands. Shopkeeping is generally easy, and

often pleasant; hence the excessive number of individuals applying

themselves to it. In the difficulties of the case, conspicuousness of

situation, extravagant decoration, and abundant advertising, are

resorted to, as means of obtaining a preference. Many, to help out

profits, resort to tricks and cheating. The expense thus incurred,

above what is necessary, in distributing certain goods, must be

enormous. To bring most articles to the hands of the consumer should

be a simple business. Every member of the public must feel that his

clothes will be as good, coming from a wareroom on a third floor at

L.30 a year, as from a flashy corner shop which costs L.300. He will

feel that to make him buy a new hat when he needs one, it is not

necessary that an advertising van should be continually rumbling along

the streets. His tea and sugar from the nearest grocer cannot be any

better because of there being fifty other grocers within two miles of

his residence, and forty of these not required. Yet, by reason of the

great competition in nearly all trades, these vast expenses, which do

nothing for the public, are continually incurred. Means misapplied are

means lost. The community is just so much the poorer. And we must

pronounce the superfluous shopkeepers, those who live by the rents of

fine shops, and those who are concerned in the business of advertising

beyond what is strictly necessary for the information of the public,

as incumbrances on the industry of the country.

One unfortunate concomitant of competition is, that it prompts in the

individual trader an idea which places him in a false position towards

the general interest. It is the general interest that all things fit

for use should be abundant; but when a man is concerned in producing

any of those things, he sees it to be for his immediate interest that

they should be scarce, because what he has to sell will then bring a

greater price. It is the general interest that all useful things

should be produced and distributed as cheaply as possible; but each

individual producer and distributer feels that the dearer they are, it

is the better for him. It is thus that a trade comes to regard itself

as something detached from the community; that a man also views his

peculiar trading interest as a first principle, to which everything

else must give way. It might, indeed, be easily shewn, that whatever

is good for the whole community, must be in the long-run beneficial to

each member. He either cannot look far enough for that, or he feels

himself unable to dispense with the immediate benefit from that which

is bad for the public. In short, each trade considers the world as

living for it, not it as living for the world--a mistake so monstrous,

that there is little reason to wonder at the enormous misexpenditure

to which it gives rise.

The idea essentially connected with these false positions, that

_because_ there are certain persons in a trade in a particular place,

they _ought_ to be there, and that the primary consideration regarding

them is how to enable them to continue living by that trade--as if

they were fixed there by some decree of Providence--is one of the most

perverse and difficult to deal with in political economy. The

assertion of any principle ruling to the contrary purpose, seems to

the multitude of superficial thinkers as a kind of cruelty to the

persons, the severity of the natural law being, by an easy slide of

thought, laid to the charge of the mere philosopher who detects and

announces its operation. In reality, those are the cruel people who

would contentedly see a great number of their fellow-creatures going

on from year to year in a misery, which, being brought upon themselves

by ignorance, and the want of a right spirit of enterprise, can only

be banished or lessened by their being rightly informed, and induced

to enter upon a proper course.

If there were a right knowledge and just views of these subjects

diffused through the community, a man would be ashamed to enter upon a

business in which a sufficient number of persons was already engaged,

knowing that he was thereby trifling with his time and fortunes, and

perhaps encouraging in himself a love of ease, or some other desire

which he was not entitled to gratify. He would rather go to some new

country, where he might eat in rough independence the rewards of an

actual toil. What is really required, however, is not that men should

leave their own country, but enter upon such pursuits there as may

preserve an equal instead of an unequal distribution of industry

throughout the various fields in which there is something to be done

for the general advantage. Distribution should be less a favourite

department, and production more so. With more producers and fewer

distributers, the waste we have endeavoured to describe would be so

far saved, and there would be fewer miserable people on the earth.

Even amidst all the delusions which prevail upon the subject, it is

curious to observe that there is a strong current towards a

rectification of what is amiss. The interests of the individual, which

produce so much fallacy, after all bring a correction. The active,

original-minded tradesman, seeing that, with an ordinary share of the

entire business of his department, he can scarcely make bread and

butter, bethinks him of setting up a leviathan shop, in which he may

serve the whole town with mercery at a comparatively small profit to

himself, looking to large and frequent returns for his remuneration.

The public, with all its sentimentalisms, never fails to take the

article, quality being equal, at the lowest price, and accordingly the

leviathan dealer thrives, while nearly all the small dealers are

extirpated. Now this is a course of things which produces partial

inconveniences; but its general effect is good. It lessens the cost of

distribution for the consumer, and it decides many to take to new and

more hopeful courses, who otherwise might cling to a branch of

business that had become nearly sapless. Underselling generally has

the same results. When in a trade in which distribution usually costs

43 per cent., one man announces himself as willing to lessen this by

15 or 20 per cent., his conduct is apt to appear unbrotherly and

selfish to the rest; but the fact is, that for goods of any kind to

cost 43 per cent., in mere distribution, is a monstrosity; and he who

can in any measure lessen that cost, will be regarded by the community

as acting in the spirit of a just economy, and as deserving of their

gratitude. These may be considered as the rude struggles of

competition towards a righting of its own evils. The public sees two

selfishnesses working in the case, and it naturally patronises that

which subserves its own interest.

The waste arising from an over-costly system of distribution, will

probably lead to other correctives of even a more sweeping kind than

that of underselling, or the setting up of leviathan shops. For the

greater number of the articles required for daily use, men begin to

find that a simple co-operative arrangement is sufficient. A certain

number agree to combine in order to obtain articles at wholesale

prices; after which a clerk, shopman, and porter suffice to distribute

them. They thus save, in many trades, as much as 15 per cent. So far

from their being under any peculiar disadvantage as to the quality of

the articles, they are rather safer than usual in that respect; and

indeed a freedom from the danger of getting adulterated or inferior

goods is one of the recommendations of the system. It would probably

extend more rapidly, were it not for the difficulties attending the

law of partnership, which, however, will in all likelihood be speedily

removed.

We make these remarks on distribution mainly in the hope of saving

individuals from entering upon a career in which, not being truly

useful to their fellow-creatures, they have little to expect of good

for themselves. At present, shopkeeping is limited by what an able

writer of the day calls the _bankruptcy check_;[1] that is, men go

into it, and remain in it, while they can just barely sustain

themselves, not regarding that they do not and cannot thrive, and that

they are only adding to a mass of idleness already burdensome to the

community. What we desire is, to see men so far enlightened in the

principles of economy, that they will be at least less apt to rush

into fields where their help is not wanted. We wish to assist in

creating a public opinion on this subject, which, fixing on

shopkeeping in such circumstances the odium of a masked idleness, will

tend to send the undecided into courses of real activity and

serviceableness; thus securing their own good by the only plan which

can be safely depended upon--that of first securing the good of the

entire community.

Chambers's Edinburgh Journal, No. 445 Volume 18, New Series, July 10, 1852 · 第 3 / 22 题