2199. I suppose the reason for paying in goods is really, that you manage to make two profits: the profit upon the drapery, and then the profit upon the re-sale of the hosiery?-For the most part, we have to be content with one profit. No doubt, like all other men, we would be glad to make two profits if we could; but I think it is a rule in the Shetland hosiery trade, that [Page 44] the dealer is quite content if he gets the price for the hosiery goods which he would have paid for them in cash, even with a very good discount off; that is to say, with £10 worth of Shetland hosiery, for which he had paid that sum in goods, he would be willing to sell them for £10 in cash, and 5 per cent. off for cash. He would not expect to get a profit on the hosiery also. 2200. Do you mean to say that a lot of hosiery purchased for £10 you would sell to a merchant in the south for £10, and give him 5 per cent. discount besides?-Yes. 2201. Then you would make a loss?-No; because we have paid the £10 in goods at retail prices, and we have the retail profit on them, which is more that 5 per cent. 2202. You mean that you have a profit on the goods?-Yes; the goods amounting to £10, for which we have got the hosiery. Perhaps the profit on these goods is 15 per cent.; and if we sell the hosiery afterwards for £10, and take off 5 per cent. for cash, we still have 10 per cent. for our trouble. 2203. That comes to this: that, keeping it apart from your trade in goods, you make no profit upon the hosiery at all, but you will pay 5 per cent. discount to a wholesale merchant in the south for paying it promptly?-Yes; and I believe, in some cases where the dealers in Shetland don't have good connections in the south and good markets, they generally sell at a much lower price. I believe it is quite common in the Edinburgh auction-rooms for parcels of Shetland hosiery to be exposed for sale, and sold at a rate much lower than they could be sold for in Shetland. That, I suppose, is done by dealers who are pressed for cash; and they have to sell their hosiery stocks at any sacrifice, at what they can get for them, because they cannot get them sold in the regular market at a profit. 2204. Does it not seem to you that it would be a more reasonable way, in such a state of matters, to reduce the price of your hosiery?-It would be better to introduce a system of cash payments. 2205. But, whether there was a system of cash payments or of payment in goods, would it not look better in your books, and would it not be the natural way of dealing, to purchase the hosiery only at such figures as would enable you to make a profit upon it?-Yes; that would be better, decidedly. It might practically make very little difference to the dealer; it would just be taking it out of the one pocket and putting it into the other, but it would be more business-like, and a simpler plan.