2201. Then you would make a loss?-No; because we have paid the £10 in goods at retail prices, and we have the retail profit on them, which is more that 5 per cent.
2202. You mean that you have a profit on the goods?-Yes; the goods amounting to £10, for which we have got the hosiery. Perhaps the profit on these goods is 15 per cent.; and if we sell the hosiery afterwards for £10, and take off 5 per cent. for cash, we still have 10 per cent. for our trouble.
2203. That comes to this: that, keeping it apart from your trade in goods, you make no profit upon the hosiery at all, but you will pay 5 per cent. discount to a wholesale merchant in the south for paying it promptly?-Yes; and I believe, in some cases where the dealers in Shetland don't have good connections in the south and good markets, they generally sell at a much lower price. I believe it is quite common in the Edinburgh auction-rooms for parcels of Shetland hosiery to be exposed for sale, and sold at a rate much lower than they could be sold for in Shetland. That, I suppose, is done by dealers who are pressed for cash; and they have to sell their hosiery stocks at any sacrifice, at what they can get for them, because they cannot get them sold in the regular market at a profit.
2204. Does it not seem to you that it would be a more reasonable way, in such a state of matters, to reduce the price of your hosiery?-It would be better to introduce a system of cash payments.
2205. But, whether there was a system of cash payments or of payment in goods, would it not look better in your books, and would it not be the natural way of dealing, to purchase the hosiery only at such figures as would enable you to make a profit upon it?-Yes; that would be better, decidedly. It might practically make very little difference to the dealer; it would just be taking it out of the one pocket and putting it into the other, but it would be more business-like, and a simpler plan.
2206. Is it not one result of that system, that as the merchant runs two risks,-a risk upon the hosiery and a risk (not so great, but still a risk) upon his goods,-he is obliged to make a larger profit upon his goods than he otherwise would?-I believe that is so.
2207. So that the goods are really dearer to the retail purchaser here than they would be if another system were adopted?-I think
2208. You say you are quite ready to adopt a system of cash payments, and to carry it out if it were usual in the trade?-Quite ready.
2209. Is there any difficulty in a single house proceeding to act upon that system?-There has been no proposal made for it.
2210. Do you mean there has been no demand made for it by the sellers of hosiery?-I mean there has been no proposal made among the dealers in hosiery to adopt such a system; and it would be difficult for one house to begin to attempt it unless there was some plan agreed upon, and some tariff of prices. I think it would be necessary, in the first place, to have some scale fixed.