MECHANICAL CONDITIONS.--So much depends, and will always depend upon skilled handicraft in the Jewellery trades, that there is not much to record in the way of mechanical progress. Still, in some tools there are notable improvements. The ingenuity manifested in the mechanical production of gold and silver “parts,” to be afterwards put together into great varieties of patterns, is remarkable. “Sand blast” is a new mechanical means used for producing the rich dead surface so much admired on gold and silver. The lathe, draw bench, die stamp, and press, effect much more than they did for the trade 20 years ago. Gas engines are now commonly used, even in small shops. PRECIOUS STONES.--The gem and precious stone business together with that of the lapidary form a most important element of the jewellery trade. We have some 35 local stone dealers and lapidaries. Besides these, Birmingham is visited constantly by dealers from London, Paris, Hamburg, and elsewhere, who do large trades here. Diamonds and other gems in the rough are also sold here increasingly. Compared with date of last report, the sales of diamonds and other gems to the trade in this town is probably twenty times larger. Single firms will each buy and mount up £20,000 or £25,000 worth of gems in a year. It is now a recognised and distinct name of this branch of the trade, “Diamond and Gem Mounter,” and the Directory gives about 25 of those who do not ordinarily interfere with other jewellery. Many Birmingham factors now carry magnificent stocks of diamond goods manufactured here, which was not the case twenty years ago. PRICES AND CHEAPNESS.--Any comparative notes which did not recognise the cheapness of modern jewellery would be incomplete. This cheapness is a real thing and not a delusion. Genuine gold and silver brooches, rings, bracelets, &c. set with gems, are now offered throughout the country, at prices which often cause doubts of their quality. Gold, it is true, remains at the same standard value; but silver is one-fifth lower in price. Several causes have acted together, resulting in this considerable reduction in retail selling prices of both gold and silver goods. First, workmen’s prices are much lower, although their total weekly earnings are not materially altered. This is effected by mechanical improvements; by the larger quantities of one pattern made at once; and by the employment of girls and youths under men. Secondly, the rates of profit realised by manufacturer, factor, and shopkeeper are lower. Lastly, diamonds and some other gems extensively used are much lower in price, especially their second and third qualities, than at date of last report.