Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1885-10-14

hoosier" and ''sell HIM a bill, but also the
cause and effect of laws governing trade
and commerce. We, the merchants, were
not opposed to the opening out of the new
road. The fact is, we never bothered our
heads about anything outside of selling
some one BILL We left all other matters
in the hands of our political economist
D. Kearney-as told you before. Hence,
we cannot be held responsible-don'ty you
see? But now things are taking turn,
and we begin to see the necessity of
| broadening our views and ideas so much
| so that We can now see the necessity of the
new
ROAD TO OREGON,
And stranger yet, We also begin TO realize
that no more slickens should be dumped
into the watercourses of California.
Gro.-Now, to come back to our former
| subject; can you not confine your energies
TO the market at your command?
! Mer-So l do; but the game is scarce
ly worth the candle, for it requires I'M
usual skill and energy 10 make even ordi-
nary interest on the capital invested. and
many scarcely make that. Besides, trade
being confined to smaller area. and with a
marked decrease of purchasers it leaves US
in position not unlike q case in point A
certain party engaged in the humble pur-
suit of keeping restaurant meets with
success. He ventures q step further. and
builds hotel TO accommodate ten board
ers success again crowns his effort, and he
builds an addition so as 10 permit him to
accommodate twenty-five. In course of
time, finding that he could as easily obtain
a hundred guests, he tears down the old
| building and constructs one to accommo-
date one hundred; his calculations fall
short. however. He did not allow enough
margin to cover probable extras. The fur
niture and general appurtenances require
much costlier outlay, in order to harmon
| lze with the now more pretensious establish
ment. This leads him into debt. He opens
the new hotel, and meets with success /;
but in place of paying off his debts, he
buys costly piano, plate-glass mirrors, and
other things to harmonic. All goes well,
and our successful hotel man wonders if he
really did not make 4 mistake in not hay
ing doubled the capacity of his hotel. But
alas for human hopes The principle en-
terprise of the town removes to another
locality, and the town loses half of its
| population, and our friend, the hotel man,
| loses half his boarders. and the idea forci-
| bly, comes to his mind that he has "too
| much hotel, too much appurtenances.'
AND so IT Is WITH OUR TRADE
And commerce. While we had the mining
| interests in active operation, and when we
had the entire control of the trade of the
North and South Pacific Coast, all was well.
but with these removed we find ourselves
in the position of the unfortunate hotel
keeper; We have too much stock on hand
too much commercial machinery in pro-
| portion to the number of customers. Hence
1t leaves US with heavy investments that
scarcely pay ordinary interest. and it has
created an Legitimate competition.
Gro.-What do you mean by an illegiti-
mate competition?
Mer.-Ordinarily, q lively and healthy
competition, such as we had when trade
was in normal state, is conducive to the
| interest OF buyer and seller, but when there
Is great shrinkage of buyers, as is the
case now, the sellers in their eagerness to
push trade, resort to means other than
legitimate. Buyers are too eagerly sought
for. They are dined and wined.
are loaded down with presents, not
alone for themselves, but for their families,
their aunts, uncles, strangers, and even
mother-in-laws. Country dealers who have
the appearance and education of "boors ="
are promenaded to the drawing room of
the Wholesale merchant; they are enter
tanned in royal style. The daughter is COM
PEELED to play the piano for them; the son
takes them to the saloon, and the old man
holds tight to them-all because they want
to sell them a bill" Well. what is the
result? The country dealers buy their
calico at three cents per yard when it costs
the merchant five cents, but don't YOU
forget it, the hoosiers have it all charged
on their bills-the saloon, the piano-play-
ing the presents, and even the old mans
familiarity. Yes sir; every item is charged.
But our country cousin gets even by failing
IN business every now and then, and |" set
tlpq nm " ~ no
little major. tell you, doing wholesale
business in San Francisco is not the most
agreeable occupation in the world
WHO IS TO BLAME?
Gro.-Was not this state of affairs brought
about by the merchants themselves? For
it appears to me that if they had been &C.
tive and energetic in avoiding and oyercom-
ing the obstacles which led to this down.
ward tendency, the results might have been
more hopeful.
Mer.-Undoubtedly, the activity and
energy was used in wrong direction, but
our merchants if they cannot boast of much
hereditary tendency" in that direction,
are yet happily " evoluting." They were
mistaken. They took land to great ex-
tent yet take) the country retail dealer as
the source and cause of trade, whereas the
retail dealer is but factor in the cause, and
ID SSA eoiiiiy iiOt tuc SOufCc, LOT ne neither
buys nor sells but what he believes some
one else may need; that some one else.
therefore, is the cause. Thus the retail
dealer is shorn off all apparent importance.
HIS functions and virtue consists solely in
thls-he anticipates the supposed wants of
others. These Others, are they not the
residents of his locality? Now when
speaking of residents collectively, the term
population may properly be used Thus
we trace the source of trade to the popula-
ton and not to the country retail dealer.
Nor can we rest here The volume. value
and permanency of the trade of commu-
NIFTY depends almost altogether upon GER
tam conditions. Favorable conditions pre-
supposes satisfactory results and the re-
verse may be expected if the conditions are
reversed. The most disastrous results may,
however, be expected, if a community
heretofore uniformly prosperous, meets
with sudden blow of adversely, for here
NEw LAWS COME INTO OPERATION
Requiring the skillful management of the
highest order of talent. Thus it will be
seen that the two real factors governing
trade are First, population. Second, the
conditions of the population. The San
Francisco merchants made a serious mis-
take when they mistook the country retail
dealer for the cause and source of trade.
They have sowed the wind and are now
'reaping the whirlwind.
Gro.-Well, how is it, if things are so
disagreeable and Improbable, that YOU con-
tinue in the wholesale business? WHY
don't you sell out?
Mer.-lt is an easy thing to say sell out,
but practically ninety per cent out of
hundred established business houses would
be left without dime if they made the
attempt. You may readily transfer bonds
and mortgages any day, but not business
besides, who wants to buy out disagree
able and improbable business
Gro.-How is it then that SO few whole
sale merchants fail
Mer.-Because they work on heavy cap
ital, made in the early days, when times
were flush; but if the present state Of
affairs continue you will see shrinkage.
and when that time comes the shrinkage