3398. Was that account of Mr. Smith's a personal account of Mr. Sinclair's?-I suppose it was just made out as an account of R. Sinclair & Co.
3399. What was the nature of the dealings with Smith? Have you seen his account?-I cannot remember. I saw the account when it was handed in, but I cannot say what was in it.
3400. You don't know about it personally?-No.
3401. Is there anything you wish to state on the subject of this inquiry?-I wish to state that, supposing a new system of cash payments is adopted, there will be a change, which I don't think will be altogether in favour of the worker. No doubt it would be to some extent.
3402. What difference would there be?-I shall suppose that a woman comes in with a shawl, say to-day, while the present system exists, and gets 20s. in goods. She wants grey cotton, and she will get forty yards of it for her 20s. To-morrow she comes in, and the system is changed, and she must be paid in cash. Well, she gets the cash, and she requires the same kind of goods, but she thinks there is no need for going out of the shop, as the goods here are as cheap as anywhere else. Then she will get for her cash the usual discount of 5 per cent. That would be 16s. 91/2d., and she would only have then about thirty-three yards of cotton instead of forty yards.
3403. But in the case you have supposed, would not the cotton be sold cheaper, because the merchant would not require to put all his profit on the cotton, as you say he does now, but he would also put a profit on the hosiery; and therefore he could afford to sell the cotton at a smaller profit?-The merchant would not have two profits on his hosiery.
3404. If he was buying for cash, he would?-No, it would merely be embarking his capital a second time.
3405. If he were buying the shawl for 16s. in cash, would he not sell it for 20s., as he does just now?-Yes; he would embark that cash again.
3406. That allows a profit of 4s. upon the hosiery, perhaps under deductions for certain contingencies; but it certainly allows a profit which on your own statement, he does not have now. According to your own statement, there is no profit on the hosiery now, because it is bought for the same price in goods as it is sold for; but if he were paying 16s. in cash for it, there would then be a profit upon the hosiery of 3s. or 4s. Now, would not the fact that a profit is taken upon the hosiery enable him to sell his cotton goods with a somewhat less margin of profit than he does just now?-It might.
3407. Besides, the case which you have put just now implies that the woman wants something which Mr. Sinclair has in his shop?- Yes.