Profiteering

“ Why should a poor, half-starved, half-stupefied, barking seal command exactly the same price, for instance, as the incalculable treasures of the World’s Fancy Fair? On what mercantile principles does an enterprise, whose cost is reckoned by hundreds of thousands, rely for its success upon the identical sum as that which is calculated to pay for the weekly hire of a small back room? Why, in short, should neither the quality nor the cost of the entertainment offered affect in the slightest degree the price demanded or the readiness with which it is paid! ”

“ The fortunate few, who do combine them, are thus generally able to extract in the form of profits a high price for their services, a price which covers not only the strict reward of risk-bearing, and the necessary remuneration of their own service, but a handsome payment for the special qualities and advantages which have been indicated. Profits, moreover, may vary between one industry and another, not only in accordance with the real risk which is entailed, but with the degree to which the supply of special knowledge, etc., is scarce or abundant. ”

“ Profits an element in Cost of Production. Thus far of labor or wages as an element in cost of production. But in our analysis, in the First Book, of the requisites of production, we found that there is another necessary element in it besides labor. There is also capital; and this being the result of abstinence, the produce, or its value, must be sufficient to remunerate, not only all the labor required, but the abstinence of all the persons by whom the remuneration of the different classes of laborers was advanced. The return from abstinence is Profit. ”

“ If it is strong and increasing, he will feel sure that the consumers will repay the whole cost of production, interest and capital included, and in addition the legitimate profit attached to the business. ”

“ Of the net profits of persons in business, a part, as before observed, may be considered as interest on capital, and of a perpetual character, and the remaining part as remuneration for the skill and labour of superintendence. ”

“ The owners, however, of those portions of the produce enjoy a privilege; they obtain a value which yields them more than the ordinary profit. If this advantage depends upon any special exemption, such as being free from a tax, or upon any personal advantages, physical or mental, or any peculiar process only known to themselves, or upon the possession of a greater capital than other people, or upon various other things which might be enumerated, they retain it to themselves as an extra gain, over and above the general profits of capital, of the nature, in some sort, of a monopoly profit. ”

“ If he knows what he buys, and how to put it off, he buys a thousand pounds' worth of goods at once, sells them for less time than he buys at, and pays them with their own money. I might swell this discourse to a volume by itself, to set out the particular profit that such a man may make of his credit, and how he can raise what sums he will, by buying goods, and by ordering the people whom he is to pay in the country, to draw bills on him. ”

“ But for the most part it is the first, namely, the effort on the part of the merchant to obtain larger profit (so called) by buying cheap and selling dear. Some part, indeed, of this larger gain is deserved, and might be openly demanded, because it is the reward of the merchant's knowledge, and foresight of probable necessity; but the greater part of such gain is unjust; and unjust in this most fatal way, that it depends first on keeping the exchangers ignorant of the exchange value of the articles, and secondly, on taking advantage of the buyer's need and the seller's poverty. ”

“ Profit, another form of interest, is an expensive process of your money system. The Romans had a saying, Caveat Emptor, 'Let the buyer beware.' History shows that your industrial, and commercial business, and services have always been based on hard bargaining. The desire for more money gain was and is so deeply impregnated in you that it has blunted and broken down your ethical standards. You have always tried to get the most gain for the least value. ”

“ The manufacturer supplies the wholesale dealer; the wholesale dealer provides the retail tradesman; and the retail tradesman carries on his business with his customers upon the sure foundation of credit. Not a coin is seen in the hands of either party from one year’s end to the other; and a man’s wealth is known not by the mere exchangeable property he possesses, but by the extent of the credit he is allowed. Political economy is a wonderful science, sir; and the ancients were entirely ignorant of its true principles. ”

“ With such, and so many additional charges, how can there be any profit, if the goods are sold customers at a fair price that will attract them?
There is only one way to cover possible loss and that is in getting rid of the goods at a small profit. ”

“ Profits defined.—Profits may be defined as the indefinite returns for exertion, including all risks, which any manager of his own or others' industry secures by bringing his products into open market. In general the term includes the recompense for any kind of labor, however rendered, if the uncertainty of demand and supply belongs to the one who renders the service. Thus even the fees of a lawyer or a doctor come under the general principles of profits, whenever the conditions of payment in any respect depend upon success. ”

“ 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. ”

“ Now it is well known that under present conditions the retail price of any manufactured article comprises about one-third for actual cost of production, one-third for manufacturer's profits and accounting costs, and one-third for selling costs. In other words, every such article, when it reaches the ultimate consumer, is weighted down with a load of barnacles of trade-profits of innumerable middlemen, rents, dividends, cost of advertising, and other trade-getting devices, etc., etc. ”

“ A person having the reputation of capital enough for his regular business, and enjoying good credit in his trade, if he takes a sanguine view of the prospect of a rise of price of the article in which he deals, and is favoured by circumstances in the outset and progress of his speculation, may effect purchases to an extent perfectly enormous, compared with his capital. ”

“ Thus, neither in its common meaning nor in the meaning expressly assigned to it in the current political economy, can profits have any place in the discussion of the distribution of wealth between the three factors of production. Either in its common meaning or in the meaning expressly assigned to it, to talk about the distribution of wealth into rent, wages, and profits is like talking of the division of mankind into men, women, and human beings. ”

“ If the supply is either more or less than this, it is so accidentally, and affords either more or less than the ordinary rate of profit, which, under free and active competition, can not long continue to be the case. ”

“ So employed, it yields, like any other capital, wages of labour and profits of stock. The profit is shared between the banker, who receives interest, and a succession of borrowers, mostly for short periods, who after paying the interest, gain a profit in addition, or a convenience equivalent to profit. ”

“ The teaching of the canonists on rents and partnership shows clearly that the owner of capital might draw a profit from another's labour, and the central point of the usury teaching was that money which has been lent, and employed so as to produce a profit by the borrower, belongs not 'to another,' but to the very man who employed it, namely, the borrower. ”

“ Why should there be any profits at all, I should like to know. And if profits there must be, well then, the profit grabber isn’t going to get ten times as much as the wage-earner, just because he had a few screwing forefathers. ”

“ On the other hand, by the exact sum which is divided among them, more than their present wages, the fortune of the man who, under the present system, takes all the profits of the business, will be diminished; and the acquirement of large private fortune by regular means, and all the conditions of life belonging to such fortune, will be rendered impossible in the mercantile community. ”

“ The effect will be, that the same profit of business will be divided among double the number of men, while, at the same time, rents and the price of provision in market will be double. The clear profit of the merchant will therefore be reduced to one fourth part of what it was two years ago. ”

“ All these items are present in varying degree, whatever the size of the business, except where a merchant has capital enough of his own to carry on a small business and can attend to the wants of his customers alone or with the help of his family. The temptation of the merchant is strong to use every possible means to make a success of his business, paying wages as low as possible, in order to cut down expenses, and offering all kinds of inducements to customers in order to sell his goods. ”

“ All these miscellaneous services, differing in arduousness, duration, skill, cannot be paid for in money or produce while there exists neither currency nor market in which the relative values of articles and labors may be established by competition. ”

“ Returning to the question of interest on actual capital,—i.e., the excess of value produced over the cost of production,—the question as to what determines the value of a product leads to the assertion that capital-profit must be due to an advantage which the producer possesses over the marginal producer. ”

“ That which is now called profit and interest cannot exist, as such, in connection with equality of exchanges, for producer and distributor would be alike remunerated, and the sum total of their labor would determine the value of the article created and brought to the hands of the consumer. ”

“ By his knowledge of the right times and best modes of purchasing, by his enterprise and sagacity in maintaining intercourse with and between distant markets, and by his outlay of capital and skill as a carrier of commodities from the place of their production to the place where they are needed for use, he cheapens the goods that pass through his hands by a greater amount than the toll he levies upon them, which—however large—is his rightful due. ”

“ Now, it is quite clear that if the consumer and he stood face to face with each other, he would receive all that was paid, and that while the one bought at lower prices, the other would sell at higher ones, and both would grow rich. ”

“ The distribution of provisions, money, and merchandise in just proportions, according to times and places, is the true secret of finance and the source of wealth, provided those who administer it have foresight enough to suffer a present apparent loss, in order really to obtain immense profits in the future. ”

“ That is, the price of the finer goods runs back to the very beginning, and remunerates the workman as well as the merchant. Indeed, the whole laboring community is as much interested and profited as the mere merchant, in this buying and selling of the higher grades in the greater varieties and quantities. ”

“ It is common to speak of two kinds of revenue. That which we have mentioned,—the profits of capital,—is called neat revenue; while the name of gross revenue is given to the whole return made to the capitalist; that is, his reproduced capital and his profits together make his gross revenue, and his profits alone make his neat revenue. ”

“ The primary division of the produce of human exertion and frugality is, as we have seen, into three shares—wages, profits, and rents; and these shares are portioned out, to the persons entitled to them, in the form of money and by a process of exchange; or, rather, the capitalist, with whom in the usual arrangements of society the produce remains, pays in money, to the other two sharers, the market value of their labor and land. ”

“ The dearer the consumers in one country pay for the surplus produce of another, the cheaper they necessarily sell that part of their own surplus produce with which, or, what comes to the same thing, with the price of which they buy it. ”

“ The underlying motive behind it all was that each man wanted to make a little profit on the trip—not much, but just enough to call it a profit; and so each one of them refused to sell full rights to anything. ”

“ The third source of great wealth is manufacturing on a large scale. In this case the owner or borrower of capital plunders his employés who sell him their daily labor. The difference between the actual value of this daily labor, as expressed in the price of the articles it produces and the wages paid for it, forms the profit of the manufacturer, allowing of course, for raw material and other running expenses. ”

“ Here we see a proprietor, not only encouraging industry by every ordinary means, but absolutely risking, and losing, large sums of money, in the most laudable and noble exertions to maintain and support a trade most valuable for the country and the people engaged in it. ”

“ Ring up the revenues and make the dear people pay it in added purchase price!
The people have a few dollars stored away in savings accounts or stockings, and if they want a thing they will broach their hoardings. They have the money. We want it.
One of the surest and easiest ways to get it is to make them pay more for what they consider essentials to their subsistence, to the comforts and the pleasures of their lives. They have been buying some splendid monthly periodicals at twelve and a half cents to fifteen cents. If they want them, why not make ’em pay twenty or twenty-five cents? ”