The Delaware farmer., 1883-12-28
NEW YORK LETTER.
FALL TRADE-UNsATIsFAoroRy REsUITs-LossEs
--FAILUREs-cHANGEs IN NODE OF DOING BUS
NEss-Low PRICES, ETC.


the season as the case may be. As a genera
thing the result has not b-en satisfactory. lew
have made mnncy-a larger number have JUST
held their own and many have only losses to
foot up Over production, which has been in
creasng for several years, in dry goods and
woolens, has been ruuous in many cases 10
manufacturers. wholesale dealers and retailers.
The large sales by auction TO reduce stock on
hand. made by two prominent firms, in the after
part OF the summer, threw a large quantity OF
goods on the market, at prices somewhat below
the regular rates ard this so demoraized the
mark t. both wholesale and retail, thar all the
ordinary rules regu ating percentage OF proht
were thrown aside and merchants sold. in many
cases, the best ;hey could without regard to
cost. True VIC have had good many failures,
and some Of them among old established houses
OF reputed wealth AID high standing.
The mode o. carrying on the wholesale trade
has undergone some great changes during the
last ten years. And these changes have increased
the expenses both in buying and selling goods
and decreased the percentage Of profits. Form
ery the manufacturer and the wholesale dealer
came together and made their own bargains,
with OUT the intervention of middle men or brok-
ers and were at no expense for commissions.
Now the buying is mainly done by wholesale
men through the agency Of brokers aud the sell
ling IS mainly done through the agency Of bum
nlers, more genteely called commercial travel
ers and the commissions and expenses in both
cases have to come out of the profits or to be
added to the losses as the case may be. The ex-
~ al sc
heavy one, intending railroad fare, hotel bills
salary, and IN many cases a commission as0,on
all sales effected; aud The competition between
the various houses, represented by these trav
elers, is often so kee ), that goods are sold on
very narrow margin, and this fact has become
so well know 10 country merchants, that many
of them take advantage of it and buy of the
agent in preference to dealing with the princi-
pal. One oil the main causes of the failure Of
several OF the old established and wealthy
houses, has been their persistent refusal TO EN-
plOy travelling statesmen, dsIainng to employ
such means in carrying on their business. Hav-
ing built up a large and profitable trade by years
of integrity and upright dealing, they supposed
that they had hold on their customers which
could not be broken by any new competitors, |
but they have found to their sorrow that they /
were mistaken. Buyers, in the main, so |
where they can do the best irrespective of all
other considerable S. Profit is now held to be a |
matter of more importance than friendship, old /
memories, associations or iormer customs
Hence no man is entirely safe in these days OF
close competition in relying alone on his reputa-
tion in matters of trade. Reputation is goo1 |
thing, but there must be superadded to it cease
less vigilance, good judgment, quick perception
and persistent energy and adaptation to tbs de.
mands and whims oil buyers.
Hisa singular fact that while the percentage
of profit has been greatly reduced OF late years,
the percentage Of expense in selling so IDS has
increased considerably. This expense is greater
than is generally supposed. A gentleman con-
nectcd with large house Oz Broadway engaged
in the importation and manufacture Of gentle
mems furnishing goods told the writer recently
that it cost the firm eighteen per cent. On gem
eral ACREAGE of the invoice pice (not including
duties) to sell their goods Il required that
amount simply to meet store rent, insurance,
freight, clerk hire, etc. No profits coa.d be
looked for until eighteen per cent. was realized
for expenses. Heace to successfully run a
wholesale house in any line of goods in this city
at the present day requires great deal OF eXscu-
tive ability, as well as a clear head ans good
Judgment.
The price of cotton and woollen goods has
been lower this tall than ever before known in
this country. Manufacturers say that in some
lines of goods the price obtained is not more
than the cost OF the raw material. This state of
things is bad both for employers and employees.
Both arc dissatisfied and the outlook for the COM
ing winter is not encouraging With our abund-
ant yield of gram aud provisions Of all kinds
with an unlimited stock of raw material and with
the best machinery in the world for the manu-
facture OF all kinds of goods, and with the most
intelligent and skillfu operatives. ever employed
it is a strange and humiliating fact that we can
not find a remuneratve market for our surplus
manufactured goods abroad. THERE'S evidently
something wrong. otherwise this state OF things
should not exist. It is not the object OF this let
ter however to point out the obstacles with which
our manufacturing industries have to contend at
present. Il is sufficient for our present purpose
simply to call attention to the fact that there are
obstacles. Our facilities for manufacturing
greatly exceed tne uehaha lOi ou' PiOu"S'S AZ
home; consequently every few years our marx
cts become glutted and then there is a general
stagnaton IN all branches Of business, and heavy
losses to the parties interested, unit the market
is closed and the wheels of industry are started
again. Our political doctors at the last session
of Congress supposed that they had discovered
and applied panacea, in the way of revised
tariff which wOuld proVe sovereign remedy for
all our industrial ills, but Judging from the pres
ent condition of things and from thu outlook for
the future, the remedy has not proved satisiae