A third restriction that has fettered the exchange has been the
geographical limitation imposed by many organizations. Many receive
no consignments from outside the state, some New England exchanges
limit consignments to that section, a few restrict consignments
to residents of the city, and others, while having consigners in
all parts of the country, congratulate themselves, as does one
association, that “two thirds of the proportion of money paid out
goes to the ladies of this city.” Still another exchange, on the
Pacific coast, complains bitterly of the fact that articles have been
sent to it by persons outside the state, and not dependent on their
own labors for support, “but who would speculate upon the charitable
spirit of the public,” and its president’s report recommends that
it “prohibit exhibits from the East altogether.” This restriction
undoubtedly grows out of the idea that the exchange is a dispenser of
charity and should therefore aid first its own friends and neighbors.
It is a spirit akin to that which in mediæval and even in modern
times has resented the entrance of new workers into any occupation
or community. But it must again be insisted that while the exchange
is theoretically only a benevolent association, it is practically a
business house, and as such must be judged by business principles.
The most successful business firm that should adopt the policy of
purchasing its supplies only within the state or city would soon
find its trade decreasing, while for a new house to adopt the policy
would be suicidal. Even the present high protective tariff is not so
absolutely prohibitory as is this provision of many of the exchanges.
Aside from other disadvantages, the plan prevents the infusion of
new ideas so necessary to healthy growth, and it renders almost
impossible that market criticism which secures the best industrial
results. It is in distinct violation of that principle of commercial
comity between states which led the framers of the Constitution
to prohibit both import and export duties on all goods exchanged
between the states, and to that extent is out of harmony with the
recognized policy of the country regarding interstate exchange of
commodities.
Public-domain text, read in full here on John Shaqi.
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