British market

“ Then the demand fell off, the British market became over-stocked, and as the British makers declined to consider the wants of foreign customers, their store-rooms remained crowded with machines that could not be sold. ”

“ The superior importance of the home market for all that the manufacturing industry of Great Britain produces, compared to what the foreign market, including even the colonial, takes off, furnishes one of the strongest arguments against the abolition of the Corn Laws.... The home consumpt, not the foreign, is undeniably that which the great mass of British manufacturing labour and capital is engaged in supplying. ”

“ Purchase British articles with British articles, and you create two such aggregate values, and two such markets for British industry. Whereas, on the contrary, the entire value of every foreign article imported is net income to the foreigner and sustains foreign markets. Purchase foreign articles with British articles, and you only create one value for your own benefit instead of creating two, and only one market for British industry instead of two. ”

“ The monopoly of the colony trade, besides, by forcing towards it a much greater proportion of the capital of Great Britain than what would naturally have gone to it, seems to have broken altogether that natural balance which would otherwise have taken place among all the different branches of British industry. The industry of Great Britain, instead of being accommodated to a great number of small markets, has been principally suited to one great market. ”

“ This step was a natural sequence to the repeal of the Corn Laws in 1846, and the glorious dawn of Free Trade, by which every British subject was permitted to purchase whatever he required in the best and cheapest market, and so was able to work at a moderate wage, and to have continuous employment. Thus Great Britain, with few natural advantages, became the great workshop of the world and controlled every market upon the globe in which her manufactures were not excluded by the barrier of Protection. ”

“ Plenty or scarcity of money, indeed, has no necessary connexion with a prosperous condition of commerce, or the reverse, any more than plenty or scarcity of leather or of hats. In so far as the fact is general, it is merely a consequence of the existing condition of the market of money, which is affected by the same causes that produce fluctuations in all other markets, and also by some peculiar to itself, arising out of the financial institutions and arrangements of different countries. ”

“ The awkward English monetary system is alone responsible for a large percentage of the [Pg 291] world-wide diminution of British trade. All other nations have shown greater adaptability to the characteristics of foreign markets, and the capabilities and peculiarities of the peoples who compose those markets. The Germans, French, and Americans circulate their catalogues and price lists in the language of the country where they seek a market and quote prices in its coin, giving the equivalents in francs, marks, and dollars. ”

“ This establishes, I think, the truth of what I had the honour of saying in this House on a former occasion: that there is a great difference between that plenty and low price which are produced by abundance of home production, and that which is produced by unlimited foreign importation; that the one quickens, the other deadens the home market; that England is England’s best customer; and that the contemporaneous exportation from England in return for foreign corn would be chiefly in British gold. ”

“ Now, the British manufacturers may not have received for the whole Twenty Millions’ worth of Goods over Fourteen or Fifteen Millions; but what of it? Whatever it may be is clear profit on their year’s business in cash or its full equivalent. All their established markets are kept clear and eager; and they can now go on vigorously and profitably with the business of the new year. But more: they have crippled an active and growing rival; they have opened a new market, which shall erelong be theirs also. ”

“ The total amount of British manufactures annually produced is about £180,000,000 worth, of which only £47,000,000 is taken off by the whole external trade of the world put together, while no less than £133,000, 000 is consumed in the home market; and of the foreign consumption, fully a third is absorbed by the British Colonies, in different parts of the world. ”

“ The very necessity of laying a duty on British manufactures, in order to find a sale for those of other countries, was a proof that the first could be purchased on better terms, or were better adapted to the market. ”

“ The manufacturers of protected nations, themselves, secure from England’s competition, market their surplus output in England at prices which may not cover the costs, much less the profits, of production. It is cheaper to do this than to break prices in the protected market at home; it kills the English industries and enables foreign manufacturers in the long run to raise prices to a profitable level in the English market. ”

“ It is the great error of our country manufacturers, in many, if not in most, parts of England at this time, that as soon as they can finish their goods, they hurry them up to London to their factor, and as soon as the goods are gone, immediately follow them with their bills for the money, without waiting to hear whether the goods are come to a market, are sold, or in demand, and whether they are likely to sell quickly or not ”

“ She paid less because he used his capital to serve her better and at less price than anybody else could. England takes 60 per cent of all our exports. We sell, first, wheat and provisions, prime articles of food; second, cotton, the most important raw material now used by mankind; third, tobacco, the most universal luxury and the one for which there is the intensest demand; fourth, petroleum, the lighting material in most universal use. These are things which are rare and of high demand. We are, therefore, strong in the market. Protection only robs us of part of our advantage (§ 116) . ”

“ The trade of England is to a great extent based on the property of foreigners, in the form of wool, silk, cotton, tobacco, sugar, and other commodities, sent there for sale, and these furnish much of the capital of her merchants. While holding this vast amount of foreign capital, they supply iron and cloth, for which they take the bonds of the people of other nations; and whenever the amount of these bonds becomes too large, there comes a pressure in the money market, and the prices of all foreign commodities are forced down, to the ruin of their distant owners. ”

“ In 1899 it had increased to 815,000,000 pounds,--an increase of 1200 per cent in the volume of trade.
For nearly one hundred years England has been producing surplus value. She has been producing far more than she consumes, and this excess has swelled the volume of her capital. This capital has been invested in her enterprises at home and abroad, and in her shipping. In 1898 the Stock Exchange estimated British capital invested abroad at 1,900,000,000 pounds. But hand in hand with her foreign investments have grown her adverse balances of trade. ”

“ Trade is at present carried on between Britain and the rest of Europe, at a profit of 15 or 20 per cent. Were that profit raised to 400 per cent., would not their home market, in case of such a fall of prices, be so exhausted by exportation, and in case of such a rise of prices, be so overstocked with foreign commodities, as immediately to restore the general equilibrium? ”

“ If the manufactures of Great Britain, however, have been advanced, as they certainly have, by the colony trade, it has not been by means of the monopoly of that trade, but in spite of the monopoly. The effect of the monopoly has been, not to augment the quantity, but to alter the quality and shape of a part of the manufactures of Great Britain, and to accommodate to a market, from which the returns are slow and distant, what would otherwise have been accommodated to one from which the returns are frequent and near. ”

“ This estimate does not take into account Britain's joining the Common Market, either; when she does so, as it seems she must, the Common Market boom will be a spectacular one; the member countries will then be serving a market of more than 200 million people. ”

“ The assumption, that an exclusive hard money circulation is best for the laborer, best for the manufacturer, best for the country, is against all the experience of the world. Beyond all doubt, England is the most prosperous of all the nations of the old world, and England is the greatest paper money country that exists. Her manufactures find a market in every portion of the globe; her operatives and laborers are paid better, and fed better, than any in Europe. ”

“ The market advanced by leaps and bounds, until finally the price in London reached one hundred and sixty-seven pounds sterling per ton, with an equivalent value in all other markets. This represented an advance of more than one hundred per cent.
Then the members of the syndicate awakened from their pleasant dream to find a nightmare.
The hand of every man in the trade throughout the world was raised against them. They were in the meshes of an endless chain. For every ton they could sell they must buy five, or more, in order to sustain the price. ”

“ Surely the superior capital, ingenuity, application, and integrity, of the British manufacturer would command new markets for the produce of his industry, to an equal amount, when this should be no more. ”

“ Every consumer and dealer in the country was bare of supplies and a very active demand from all sources set in immediately.
When we abandoned the brokerage business to become importers and dealers, our relations with our London friends changed. We bought of them all that we imported and they sold to no other American firm. If they bought in this market, their orders came to us. With their movements we worked in sympathy. If they advanced the price in London we did the same in New York and vice-versa. ”

“ The variety of goods of which the importation into Great Britain is prohibited, either absolutely, or under certain circumstances, greatly exceeds what can easily be suspected by those who are not well acquainted with the laws of the customs.
That this monopoly of the home market frequently gives great encouragement to that particular species of industry which enjoys it, and frequently turns toward that employment a greater share of both the labor and stock of the society than would otherwise have gone to it, cannot be doubted". ”

“ Our merchants frequently complain of the high wages of British labour as the cause of their manufactures being undersold in foreign markets; but they are silent about the high profits of stock. They complain of the489 extravagant gain of other people, but they say nothing of their own. The high profits of British stock, however, may contribute towards raising the price of British manufacture in many cases as much, and in some perhaps more, than the high wages of British labour. ”

“ Bounties upon exportation are, in Great Britain, frequently petitioned for, and sometimes granted, to the produce of particular branches of domestic industry. By means of them, our merchants and manufacturers, it is pretended, will be enabled to sell their goods as cheap or cheaper than their rivals in the foreign market. A greater quantity, it is said, will thus be exported, and the balance of trade consequently turned more in favour of our own country. We cannot give our workmen a monopoly in the foreign, as we have done in the [Pg 206] home market. ”

“ England has a special machinery for getting into trade new men who will be content with low prices, and this machinery will probably secure her success, for no other country is soon likely to rival it effectually. ”

“ To protect ourselves from loss in our sales for London account we had to take from time to time an interest in the market and this made us dealers. To complete our sales we were compelled to import the material and thus became importers.
With the opening of the year 1889 we found ourselves possessed of fairly large capital and a firmly established credit with bankers. These facts, combined with the best facilities for doing the business, decided us to eliminate the brokerage phase entirely, except in our transactions with our speculative clients. ”

“ By our greatly increasing the demand and consumption of British manufactures, their price is considerably raised of late years; the advantage is clear profit to Britain, and enables its people better to pay great taxes ”

“ If there shall be found a competitor with Great Britain for our consumption, the great object will be attained, as it must be accompanied by a corresponding consumption of American productions. But we are told that there will be a conflict of commercial regulations between this country and Great Britain, and that the consequence will be, the loss of the market she affords us. ”

“ When merchants export goods, say from New York to London, or vice versa, they do not wait for their pay till the goods be actually marketed abroad, but draw at once Bills of Exchange to the amount of the home value of the goods on the parties to whom the goods are sent, and then put these bills on present sale with brokers or middlemen at home. There thus becomes a market or prices current in New York for commercial bills drawn on London, and similarly a market in London for bills drawn on New York. ”

“ Although the solidity of the credit of the English public securities is not surpassed by that of our own, strong as it justly is, when have we seen English stocks sold in our market, and regularly quoted in the prices current, as American stocks are in England? An unfavorable balance with one nation, may be made up by a favorable balance with other nations; but the fact of the existence of that unfavorable balance is strong presumptive evidence against the trade. Commerce will regulate itself! ”