184 Early History of American Ah 



buyers; and they found the jobbers became more accommodating 

 in the face of the competing' auctions.'^ The overstocking of the 

 seaports tended to force the goods into the interior "generally 

 on extended credits"*" ; in the mercantile world the East tended 

 to become creditor to the West. It was complained at the time 

 that the New York auction tax had the effect of making the 

 consumers of taxed goods in all states subject to New York tax 

 laws.*^ The American manufacturers did not object so much to 

 wholesale sales of foreign goods provided they were made through 

 the regular jobber channels, but sales at auction obstructed their 

 distributing system by eliminating the jobber.^^ 



Besides the country merchants, the small city retailers were 

 advantaged by auction sales. They were able to procure their 

 supplies without the necessity of paying the intermediate jobbers' 

 profits, which were commonly estimated at 15 or 20%.®^ A con- 

 temporary estimated that in New York City in 1831 there were 

 about 7.000 persons engaged in the retail dry goods business 

 most of whom made their purchases at auction piece sales.*** 

 The retailer with small capital, either on his sole account or 

 jointly with others of his class, was able to buy direct and free 

 himself from jobber monopoly.*'' A common complaint, however, 

 of the retailer was that he had to spend so much time in auction 

 rooms.*'' 



The two middlemen who were hurt most were the importing 

 merchants and the jobbers. A majority of the American dry- 

 goods importing merchants, formerly the most numerous and 

 important of the mercantile class, gave place to, or became them- 

 selves, agents of British manufacturing houses.*^ If an Ameri- 

 can merchant sent an order with description or samples the 

 British manufacturer frequently sent by the same ship a large 



'"Annals of Congress, l6th Congress, 2d session, p. 1530. 

 ^"Annals of Congress, i6th Congress, ist session, p. 2302. 

 " Niles, 34 : 259. 



^Annals of Congress, i6th Congress, ist session, p. 2198. 

 '^Annals of Congress, i6th Congress, 2d session, p. 1531. 

 " "An Examination of 'Remarks on Auctions," " 4. 

 *^ Ibid., 6; Annals of Congress, i6th Congress, 2d session, p. 1531. 

 '"Niles, 34: 350. 



*' "Observations on the Report of the Committee of Ways and Means," 

 1828, p. 23; Niles, 34: 218; 35: 241; 23: 130. 



