The exposition of 1851 : $b or, Views of the industry, the science, and the government, of EnglandBabbage, Charles
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The exposition of 1851 : $b or, Views of the industry, the science, and the government, of England
Babbage, Charles
Great Exhibition (1851 : London, England)
The class _Producer_, therefore, is not only comparatively small, but
has really a very divided interest, arising only from the difference
between the personal and the class interest of the individual.
§ The class _Middle-man_ is more extensive, comprising merchants,
brokers, factors, wholesale and retail shopkeepers, hawkers, &c. The
profits of this class are generally regarded by the public with some
degree of suspicion. It is often thought that their profits are
exorbitant. But in truth this is not frequently the case. The division
of employments necessarily produces middle-men, and the public in the
long run obtain the articles they require with more convenience and
economy, and at a less fluctuating price, than it would be without such
agency. But the number of intermediate agents in any commerce is itself
subject to change, in different trades and at various times: it is quite
possible that these changes may not have taken place with sufficient
promptitude, and thus the public may have suffered for a time either by
an excess or a defect in the number of middle-men.
The interests of middle-men are, individually, the same as those of
consumers. As a class, the extension of commerce is for their advantage,
because they are paid according to the amount of exchanges made. But
they have also another and a very powerful interest. They fear that if
the public were acquainted with the manufacturing price of articles, it
would consider the difference between that and the selling price as a
tax imposed by the middle-man upon the consumer. The middle-man
therefore has a direct interest in preventing the public from arriving
at a knowledge of the prices charged by the original manufacturer. It is
also the interest of the middle-man that the manufacturer should not
know the price at which his produce sells by retail: but, as it is in
most cases impossible to prevent this, few attempts at concealment are
made.
§ It appears, then, that the interests of these classes may be thus
summed up—
Consumers, including every human being, have a strong interest in the
freest competition as producing the lowest price.
Producers have an interest in selling their produce in the dearest
market, and therefore claim free competition. But they have no advantage
in selling it at the highest price: because a high price limits the
extent of the sale. Their object is that the profit on each article,
multiplied by the number sold, shall be the greatest possible.
Middle-men, although usually adverse to competition, have yet a direct
interest in the amount sold.
CHAPTER VI.
LIMITS.
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