THE FARMER AND THE TRADESMAN. 183 



the business is to be profitable. As the volume of business 

 increases, the percentage of expense runs down very rapidly, 

 and in such wholesale trades as I am most familiar with, may 

 not exceed five per cent. A gross profit of ten per cent on 

 staple goods is quite satisfactory to wholesale merchants. 



The retailer who sets out to make his profits average 

 twenty-five per cent of his sales, must charge a very much 

 greater profit on many of his goods, since competition compels 

 the sale of many staple goods so low. The large profits are 

 made on goods whose cost is not generallj'^ known, such as 

 olive-oil, extracts, "repairs" to farm machinery, and num- 

 berless other articles of the kind. Upon the whole, it seems 

 to me that the small retail tradesman is about in the situation 

 of the farmer. His invested capital is the price which he pays 

 to assure himself permanent employment. If he ever sells out 

 his business, he will be luck}'^ to get his money back. Very 

 few accumulate mucl), although the percentage of accumu- 

 lating men in retail trade is doubtless in excess of that among 

 farmers. 



A good retail dealer is a great convenience in a country 

 neighborhood. If it were not for one in the vicinity of my 

 home, we might sometimes have to send twenty miles for a 

 spool of tliread — the seamstress meantime waiting. But if the 

 retailer is to stay there, he must live, and if the most of the 

 trade goes to larger towns, or to wholesale stores in the city, 

 he must necessarily charge roundly for whatever goods he does 

 sell. Especially, if the most of those who can pay cash carry 

 tlieir trade to the city, leaving him only the trade of the slow, 

 pay or never-pay customers, eked out by odds and ends from 

 the better class, he is absolutely compelled to charge prices 

 to cover the risk, and he does. Some dealers of this class 

 are very shrewd, and encourage indebtedness until the time 

 finally comes when they demand a mortgage, which, later, 

 they foreclose. 



The real question for farmers to consider is, how they can 

 best assure the convenience of good retail stores in their 

 vicinity, without paying exorbitant prices for their goods 

 There are two courses open : they may continue to take their 



