Part 97 (1/2)

3392. Does Mr. Smith make frequent supplies to Mr. Sinclair's work-people?-No; it has not been done very frequently.

3393. To what cla.s.s of work-people are these supplies made?- Chiefly to the party who has been already examined, Mary Ann Sinclair, and that has not been done of late. These girls have not been so dependent on their knitting lately, because they have got help from another quarter.

3394. Then this payment for meal, and that payment to W. Smith for meal, were really so much taken out of Mr. Sinclair's profit?- I think so, because their knitting was estimated at the goods price, not at the cash price.

3395. I see that in the same account there are other two entries of purchases of meal?-Yes, that was merely put down because the parties said they wanted meal, and for a considerable time they had just a weekly allowance.

3396. The entries of these two purchases of meal are really equivalent to entries of cash?-Yes; sometimes when it is said, 'Cash, for meal,' they got the cash into their own hands.

3397. And sometimes it was entered in the account with Mr.

Smith?-Yes.

3398. Was that account of Mr. Smith's a personal account of Mr.

Sinclair's?-I suppose it was just made out as an account of R.

Sinclair & Co.

3399. What was the nature of the dealings with Smith? Have you seen his account?-I cannot remember. I saw the account when it was handed in, but I cannot say what was in it.

3400. You don't know about it personally?-No.

3401. Is there anything you wish to state on the subject of this inquiry?-I wish to state that, supposing a new system of cash payments is adopted, there will be a change, which I don't think will be altogether in favour of the worker. No doubt it would be to some extent.

3402. What difference would there be?-I shall suppose that a woman comes in with a shawl, say to-day, while the present system exists, and gets 20s. in goods. She wants grey cotton, and she will get forty yards of it for her 20s. To-morrow she comes in, and the system is changed, and she must be paid in cash. Well, she gets the cash, and she requires the same kind of goods, but she thinks there is no need for going out of the shop, as the goods here are as cheap as anywhere else. Then she will get for her cash the usual discount of 5 per cent. That would be 16s. 91/2d., and she would only have then about thirty-three yards of cotton instead of forty yards.

3403. But in the case you have supposed, would not the cotton be sold cheaper, because the merchant would not require to put all his profit on the cotton, as you say he does now, but he would also put a profit on the hosiery; and therefore he could afford to sell the cotton at a smaller profit?-The merchant would not have two profits on his hosiery.

3404. If he was buying for cash, he would?-No, it would merely be embarking his capital a second time.

3405. If he were buying the shawl for 16s. in cash, would he not sell it for 20s., as he does just now?-Yes; he would embark that cash again.

3406. That allows a profit of 4s. upon the hosiery, perhaps under deductions for certain contingencies; but it certainly allows a profit which on your own statement, he does not have now.

According to your own statement, there is no profit on the hosiery now, because it is bought for the same price in goods as it is sold for; but if he were paying 16s. in cash for it, there would then be a profit upon the hosiery of 3s. or 4s. Now, would not the fact that a profit is taken upon the hosiery enable him to sell his cotton goods with a somewhat less margin of profit than he does just now?-It might.

3407. Besides, the case which you have put just now implies that the woman wants something which Mr. Sinclair has in his shop?- Yes.

3408. It does not allow at all for a case in which she wants something different and in order to get which she might perhaps have to part with the goods at a loss?-Viewing it in the light I have stated would perhaps be a disadvantage to the knitter; but there would certainly be an advantage to her, as she would have cash with which to go and buy groceries or other things wherever she wanted,

3409. Then that would be an advantage?-It would be an advantage; but another disadvantage to her might be, that the merchant would not take her goods at all unless he actually wanted them and he had orders for them, and unless they were of good quality. There would thus be only one advantage against two disadvantages.

3410. But if one merchant did not take her goods, another would, if they were worth buying at all?-Perhaps he might; but I was only speaking about how the thing might act if such a system were introduced. There might be a second advantage, in this way: that more encouragement might be given to the trade in the south, as the cash system might be a means of producing better articles.

The knitters might be induced to bestow more pains on the manufacture of their goods and then there would not be periods when the market was in a dead, dull kind of state, as it sometimes is now.

3411. Is it ever in a dead, dull kind of state?-Yes, at certain seasons it is.

3412. Is there ever a time when you refuse to take Shetland goods?-Yes; at this very season we cannot buy veils at all, because we have no market for them. The market is blocked up entirely. But if the manufacture was improved, and the goods were somewhat [Page 77] better than they are now, there might be a regular flow of goods into the market.

Lerwick, January 6, 1872, ROBERT SINCLAIR, recalled.