2191. You were not previously aware of the existence of such a practice?-No; I was not aware of it until I heard it deponed to yesterday.
2192. You say there are periods of depression in the Shetland trade?-Yes; for many months there is little or no demand for Shetland goods, and at such times our stocks lie over and accumulate.
2193. In such a period of depression I presume that your prices, whether in money or in goods, are lower than at other times?- They naturally tend downwards, as in all other trades, because in many cases we really don't want the goods. Having quite sufficient and more than sufficient of the article, we don't want any more of them; but very often we take them, just as you may say, to oblige the women, and give them tea for them, or things which they may actually be requiring, although we may have no prospect of selling these articles for a year or so.
2194. Is there not a difficulty in the trade also from the nature of the articles which are made?-There is a very great difficulty in that respect, owing to the want of uniformity in the articles, and the great variety of them. You can never get two shawls alike; you cannot even get a dozen pair of half-stockings alike. If you were to get an order for twenty dozen socks of a particular colour, size, and price, you would not be able to get that number of socks alike in Shetland.
2195. The result of that is, that you cannot give a large order?- We cannot undertake to execute it; and it is only such houses in the south as are acquainted with the Shetland trade, and who know that, when they give an order for a certain quantity of goods, they must get them varied in colour and in quality, and who make up their minds for that, and don't expect anything else it is such houses who generally deal in Shetland goods.
2196. Does that fact, and the want of knowledge of that fact, restrict the number of houses in the south with which you can deal?-There is no doubt of it. Suppose an English house, who had never done anything in Shetland goods before, were to send down an order for a certain quantity of goods, they would expect to get them as uniform as if they were sending that order to Leicester, or any hosiery district in the south.
2197. In what way does that affect the system of paying in goods?-There are limits to the demand. It affects the market. We don't have such a large market.
2198. And it increases the inducement to merchants to make their payments in the drapery goods which they sell, and upon which they have another profit?-Exactly.
2199. I suppose the reason for paying in goods is really, that you manage to make two profits: the profit upon the drapery, and then the profit upon the re-sale of the hosiery?-For the most part, we have to be content with one profit. No doubt, like all other men, we would be glad to make two profits if we could; but I think it is a rule in the Shetland hosiery trade, that [Page 44] the dealer is quite content if he gets the price for the hosiery goods which he would have paid for them in cash, even with a very good discount off; that is to say, with £10 worth of Shetland hosiery, for which he had paid that sum in goods, he would be willing to sell them for £10 in cash, and 5 per cent. off for cash. He would not expect to get a profit on the hosiery also.
2200. Do you mean to say that a lot of hosiery purchased for £10 you would sell to a merchant in the south for £10, and give him 5 per cent. discount besides?-Yes.