Commercialism

“ The system, in fact, is a gigantic one, and its professors are legion. It is as thriving an industry (save the mark) as any in the world. It is as perfectly organised in every department as any legitimate business. Its markets are regulated by the same inexorable laws of supply and demand, competition and coöperation, which govern the development of every branch of commerce. It has its manufacturers, its wholesale houses, its canvassers and retail dealers, all in regular form. ”

“ Produce something that somebody else wants, whether it be a shoe string or a savings bank, and the purchaser or patron will not trouble himself to ask who the seller is. This same great economic law runs through every line of industry, whether it be farming, manufacturing, mercantile or professional pursuits. Recognize this fundamental law of trade; add to it tact, good manners, a resolute will, a tireless capacity for hard work, and you will succeed in business. ”

“ If this custom were universal, and strictly adhered to, competition indeed would still operate, but the consumer would not derive any benefit from it, at least as to price; the way in which it would diminish the advantages of those engaged in the retail trade, would be by a greater subdivision of the business. ”

“ I buy, dispense, and disperse human labor. I create wants, and I satisfy them. I will establish honest laws of trade. What I do shall be rated as commercial law. What I say shall be quoted as a way of equity and probity. That man is a King of Trade. His throne is set upon hills and seas. His subjects are all men with needs, and all men with products of the land, the coasts, the sea, or brain, or skill. This is the lawful King of Trade. He represents God's mart of exchange. Primarily, goods are not bought and sold in the market. They are first transferred in that man's brain. ”

“ While theoretical economists abroad, of course, applaud every movement in the economic policy of the United States which they consider as emanating from sound principles, I know, from personal observation, that European manufacturers who understand their business look forward with grave apprehension to the time when American industry will be relieved of the clogs which now hamper it and enter the markets of the world to compete with them. ”

“ Particularly they may concur with us in reciprocating the duties to be levied on each side, or in compensating any excess of duty, by equivalent advantages of another nature. Our commerce is certainly of a character to entitle it to favor in most countries. The commodities we offer are either necessaries of life, or materials for manufacture, or convenient subjects of revenue; and we take in exchange either manufactures, when they have received the last finish of art and industry, or mere luxuries. ”

“ It must not however be forgotten, that even in the countries of most active competition, custom also has a considerable share in determining the profits of trade. There is sometimes an idea afloat as to what the profit of an employment should be, which though not adhered to by all the dealers, nor perhaps rigidly by any, still exercises a certain influence over their operations. ”

“ This is the constant multiplication of intervening agents—middle-men, factors, brokers, speculators, contractors, and distributors of every sort—between the producer and the consumer, or between the primary owner and the ultimate owner of almost everything which is the subject of ownership and trade. Those two, who are the actual persons brought chiefly into relationship by the thing in question, are put quite out of sight of one another in most of the transactions of modern industry and commerce ”

“ The producer furnishes the goods, the consumer the money. Trade furnishes credit, [54] founded on little or no actual capital, and the different members of the commercial body are in no way responsible for one another. ”

“ These laws are founded upon the natural action of the system of exchange, carrying forward all its operations by the natural action of the great principle of demand and supply. When capital and labour know how to accommodate themselves to the direction of these natural laws, they are in a healthy state with respect to their individual rights, and the rights of industry generally. They are in that state in which each is working to the greatest profit in carrying forward the business of production. ”

“ In all commercial communities there is a commercial mart, or a capital, where exchanges are effected, cargoes disposed of in gross, and where all the great interests of trade concentrate, as the blood flows to and from the heart. In identified governments, like that of England, for instance, legislation may respect this natural tendency to concentration in commerce, and enact laws for its especial benefit and protection. ”

“ The price at which the manufacturer sells his goods is regulated on the one hand by the amount of competition with other manufacturers with which he has to contend, and on the other hand, by the larger or smaller supply of labor. ”

“ The trade thus carefully ordered and regulated, assumes, in the course of time, all the dimensions of a vast and increasing commerce. Abundant capital is invested in it, talent and ingenuity are exerted to make its resorts attractive and luxurious, and an insatiable demand arises for fresh young articles of commerce. ”

“ Trade and commerce are an abbreviation of this long process; a scheme invented and set on foot by merchants, from a principle of gain, supported and extended among men, from a principle of general utility to every individual, rich or poor, to every society, great or small. ”

“ If from investigation it appears that there is a market for one’s goods in any section or universally, that quality and prices can be such as to make competition favorable, that the market can be enlarged, or should there be none that one can be created, and a determination is therefore formed to enter export trade, the next question is how the goods shall be sold. ”

“ When companies are not established, and when trade is open, our merchants, by their eagerness to profit of the new trade, betray the secrets of it, they enter into competition for the purchase of the foreign produce, and this raises prices and favours the commerce of the most ignorant savages. ”

“ Of course, in all exchange of commodities between two countries, besides that supply of the respective wants of each which constitutes the foundation or sustaining element of the commerce, a certain portion of what the consumer pays must fall to the share of the persons by whose agency the commerce is carried on. It is this that properly forms the profits of the commerce, as distinguished from its mere advantages or conveniences. ”

“ The salient facts for us to note are, that among the manufacturers of this country there has arisen a widespread movement to partially or wholly avoid competition in the production and sale of their goods; that in a very great number of manufacturing industries these combinations have progressed so far that their managers have been able to advance prices and check production ”

“ The result of all this has been to produce a state of affairs in which competition, so long considered the life of trade, is practically eliminated from many branches of industry, while the opportunities for individual enterprise, which have been active for so many centuries, have in great part vanished. ”

“ In the higher grades of economic society the advantages of the recent changes were more distinct, the disadvantages less so. The rise of capital and business enterprise into greater importance, and the extension of the field of competition, gave greater opportunity to employing farmers, merchants, and manufacturers, as well as to the capitalists pure and simple. ”

“ Should the price of one article rise by attempted monopoly to a prohibitive basis, another product is called in to supply its place, which, by intrinsic merits, or by combination with others based on scientific authority, supplants the previous competitor. ”

“ By freeing commerce from the fetters of mercantilism, our Founding Fathers released the creativity and entrepreneurial spirit of the American people. Small merchants and businessmen provided the simple beginnings of what has become a vast and innovative economy. ”

“ To abasement at the footstool of this triumphant wickedness, everything venal and sordid in the yet Free States would inevitably and intensely gravitate: commerce seeking customers; manufactures eager for markets ”

“ It does not belong to our purpose to trace the history of this change; it is enough that we should observe the fact that the profit-seeking motive has become the real driving force of modern commerce, and that historical circumstances, such as the introduction of large scale processes, the world-wide ramifications of commerce through improved facilities of travel and transportation, the invention of the telephone and the telegraph, the growth of trusts, combines, and monopolies have made possible fabulous increments and accumulations of profit. ”

“ Thus it proposes that the control of industry should be in the hands of the producers, and not, as at present, in the hands of consumers through capitalists catering for their custom, or through co-operative societies of consumers, or through the State acting on behalf of citizens who are consumers. ”

“ Industries manufacturing comparatively inexpensive articles for the retail trade, put them up in packages which become well known to customers; and those industries whose goods are sold under brands or trade-marks, or in some other form so that they are familiar to buyers, afford an example of competition of an entirely different kind. ”

“ An economic arrangement between companies performing similar functions in the production or sale of comparable goods or services is characterized as 'horizontal.' The effect on competition of such an arrangement depends, of course, upon its character and scope. ”

“ The objections to the pursuit of manufactures in the United States, which next present themselves to discussion represent an impracticability of success, arising from three causes—scarcity of hands, dearness of labor, want of capital. ”

“ This secondary life of commerce is mainly parasitical and feeds upon the other, and its vitality depends as much upon the success with which demands are ingeniously created as upon the power to produce the supply profitably. Added to this vast business of production is an enormous machinery of distribution ”

“ The common expressions of trade afford still further evidence. We often hear the expression: "A healthy competition." But the very existence of the phrase implies that there may be an unhealthy competition, and if so, what is it? ”

“ We do not find in strictly commercial undertakings the tremendous aggregations of men and capital which have become characteristic of modern transportation and manufactures. Modern trusts, it is true, have invaded the field of commerce to a certain extent, and have effected some of their chief economies in improved methods of marketing their products. ”

“ To these worthy pioneers belongs the credit of laying a secure40 foundation for a trade that from humble beginnings has developed into one of the most prominent industries of the country, requiring extensive capital, liberal business capacity, and one that gives employment to a large, intelligent and skillful class of people. ”

“ The capital thus thrown out of employment in an industry in which we had no comparative advantage (when competition became free) would necessarily be employed in the industries in which we had an advantage, and would supply—and the transferred capital would be the only means of supplying—the commodities which would be sent abroad to pay for those, which by the supposition are now imported, but were formerly produced at home. ”

“ We have the power, gentlemen, of going back to the time when protection was in full and unchecked force, and of examining the effect which it produced313 upon the wealth of the country. How, will you say, do I mean to test that wealth? I mean to test that wealth by the exports of the country, and I will tell you why, because your prosperity depends upon the wealth of your customers—that is to say, upon their capacity to buy what you produce. And who are your customers? Your customers are the industrial population of the country, who produce what we export and send all over the world. ”

“ The products of all quarters of the globe are placed at our disposal, and we have only to choose which is the best and the cheapest for our purposes, and the powers of production are intrusted to the stimulus of competition and capital. ”

“ They, even at the present time, take the place, frequently, of freedom of competition in retail business, in the book business, and in the determination of lawyers' and doctors' fees, as well as in the distribution of a nation's income among the three great branches of its general economy,671 deciding, instead of competition, how much shall go to each. ”

“ But in modern industry, when the market is world-wide, the technique most complex, and the competition most severe, when inventiveness, sagacity, courage, and decision in initiative, and skill in management, are factors so important, no such exclusive place as has been claimed can be assigned to labour. ”

“ In seeking for employment to a capital, manufactures are, upon equal or nearly equal profits, naturally preferred to foreign commerce, for the same reason that agriculture is naturally preferred to manufactures. ”

“ I saw a business system which had grown up under free competition and equality of opportunity passing into trusts and other combines derived from the acquisition of lands containing the best supplies of coal, iron, oil, and other important raw materials, supported by railroad and banking connections and by tariffs directed against outside competition. ”