The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1871-06-17
High prices ca Again.

subject. but after O careful perusal Of "Res Pub-
lica's > letter in your issue Of June 10th, and 0 re-
perusal of his first letter, I think it needs II reply,
and as YOU did me the honor to select my conn uni
cation from many, l will write once more, and hen
leave the subject to those who may have the til oF
patience TO carry on a discussion in which, from
quiet observation, L now feel sure that the g iefai
public feel little or no interest.
I find that 80 Res Publica " credits me with saying
that the average profit Of a Honolulu merchan Is
forty per cent. If he will sit down and read Ia az
ticle once more, he will find that | used an illustra-
ton of 40 and 10 per cent. to show the necessity ofa
much larger percentage at this distance from a sup
ply market, than would be necessary at points n,arer
to the place of manufacture, and that l did say ex-
pressly that they did not make any such profit. Vow
if l had used an illustration Of j and 4 per cent.
would he say that l had said the Honolulu merchants
only made a profit Of 4 per cent, or how If i had
used 100 and 400 per cent. for an illustration 7
Again, I do not think he read that letter carefully,
for if he had, he would have seen a paragraph near
the close, stating that if the retailer bought his goods
of an importer, as is nearly always the case, hey
would cost him still more than if he imported uen
direct, and the supposition was made in that way in
order to give " Res Publica >" every advantage, bat
no chance to go back Of my argument by saying that
dealers ought to import direct instead of buying at
second hand. 1 find from his second letter tina the
real complaint is-that goods are sold here to cOa-
sumers for leo per cent. more than in Austr ga,
and not in any other place under the sun. My hrst
letter was written to give him reasons, for which he
inquired, for goods costing more here than in the
generality of other places. | think that sutfl ieut
reasons have been given for that already, and h il
known that the only cause of complaint laidlln the
difference 'twixt Honolulu and Australia, l sh I-
not have taken up the pen to write, as l am will NJ
to own up a general ignorance of that market. IL
Res Publica wants an estimate from me Of Poe
average profits of business in Honolulu, | should aY
that it was between 10 and 20 per cent, and lave
not a doubt in my own mind but that he coulC g
from store to store and buy the profits of each 70 lu
per cent, and at that figure, about one-half Of ule
shopmen would be willing TO assume, theInsel es,
any losses that might accrue from bad debts. And mis-
profit is not a net profit, but a gross profit, out Of
which all store and living expenses have TO be paid.
But 80 Res Publica's - main argument is founled
upon the fact that Australia is as far from HON ~
Honolulu, and that consequently, goods ought TO 80
consumers no more in Honolulu than ia AustrIha.
Now that argument is wholly unsound, but stu Iat
to such an extent as to make goods sell here for 100
per cent. advance on Australian prices. | accept his
statement in regard to the 100 per cent, and l AK
him also to accept mine in regard TO Homo ia
traders profits. My statement is made from export
ence, both as a bOok-keeper and afterwards O. IA
trader. These two points being allowed.-for there
is no way of proving either in a satisfactory manner,
1t remains only TO account Tor the difference. IhiH
can be done only in two ways. First, that the llo-
nolulu merchants invoices are oil - sailed " before
they are shipped, or in other words, the British
trader and manufacturer charges the Honolulu mer-
chant 80 TO so per cent. more for their goods to-
any one else. Or, secondly, it can be accounted for
by the use in the two countries spoken Of, (AustrGha
and the Hawaiian Islands) of different qualities and
styles of the same general articles.
The first reason L cannot for n moment think or,
as l believe British merchants to be as honorable aud
upright in their dealings as any body Of men on the
face of the earth and we are therefore reduced TO
the second, where L think we will find the true solu-
ton Of this mystery. There have two or three cases
come under my notice which lead me TO think 70. In
one case, a gentleman just from Sydney, walked
into a shop and asked the price Of certain tweeds and
~cassimeres on the counter. On being told the puce
from $3.50 to $500 per yard-he exclaimed We
hemently against the extortion, saying that he could
obtain Just as good in Sydney for 3 shillings per
yard. The shopman replied that there was no extor-
ton, and that there was very little profit on them.
This led to an exhibition Of the invoices, which salts
fed the Australian, but not the shopman, and some
further conversation disclosed the fact that the gen.
tleman from Sydney had a portion Of his 3 shilling
goods on his back. This at once led TO "A COMPARE
of the two varieties Of goods, and the sbOpmnn
speedily convinced the other that there was fully Ms
much difference in the quality as in the price Of the
goods. the Honolulu goods being a fine article, close
wove from a fine wool, while the Sydney article was
of a coarse make from a coarse wool. La this case,
the Sydney man was satisfied with an article which
twenty-four out Of twenty-five never select for THEN
own wear, preIerrlnR the nlgner cost article. huOtntf
case is that of my worthy friend RES Publica, - and
his boots. He exclaims against the imposition u
$40 for a pair of boots, and says that he can OBJ
tain as good a pair in Australia for "a, and forth
with he sends of for them, and writes TO a newspaper
denouncing the merchant as trying to make an out
rageous profit out of all his trade and traffic. But
upon a little investigation, it appears that he could
buy a pair of boots for 81, not like those offered him
by the Honolulu m~eachant, but a pair that be thinks
will answer his purpose just as well. Now l might
with just as much justice, buy a pair Of American
brogans for 80 or 2. 90 here and going TO Australia,
denounce all traders there because they might ask
me the price he quotes for their boots, l. e. 81. II
4" Res Publica - wishes the Honoluluans to change
their habits, and buy such styles and qualities OF
goods as are used in Australia, he had better 20 to
the next Legislature and try-as he seems 10 think
he will have a very powerful infuence-to get a
good ~ sumptuary law passed. Untilh does 50, /
am afraid he will have to remain content to let Ha-
waiians buy $12 boots instead Of English ones.
if it suits them to do 50. 1t is a notable fact that
merchants in all parts of the world cater in all cises
to the wants Of their customers, as far as lays ia
their power TO do, and my little experience has taught
me that Honolulu traders are no exception TO the
general rule.
9" Res Publica " finds that retail traders in Homo
lulu all stick to about the same prices, and conse-
quently comes at once to the conclusion that they
are all in one grand combination to obtain an unfair
of customers. The exact OPP site Of that
is true competition is 50 close in this place that
prices have fairly reached low-water mark, and AZ a
matter Of course, can not come down any lower with
out causing the trader an actual loss. And as Tor
combinations, | will say for X. P.'s benefit tina /
never knew a Honolulu " combination " to ts1d
more than n few days at the outside
| confess to an utter ignorance Of the CONNER ,ial
principles upon which my opponent desires me 20
buy my goods at second hand aud thereby be enabled
to sell them at a less price than when purchased az
hands.
Heretofore, 1 have always considered IL to be an
axiom Of commercial life, that the nearer 10 manu-
hands you are able 70 buy your goods, the
cheaper you can afford to sell them.
Res Publica in his first communication de
clares that he is about to smuggle n pair Of boots
that will cost him $500, and on which the very
light duty Of 40 cents would be due TO the Govern
ment. Now taxes and duties are collected for tn
joint benefit of all, and L should strongly advise him
either TO pay those duties or else take some other
name than % Res Pubica." As L have n strong ven
of compassion Mr.. Editor, If be still insists on Snug
Cling those boots, will you pay him 40 cents aud
charge it to my account, as / should not like to sec
him suffer-in case he got caught two years i'm