On the Economy of Machinery and Manufactures, Charles Babbage [classic romance novels .TXT] 📗

services and skill, are remunerated by

being allowed to place a high charge upon their medicines, which

are confessedly of very small pecuniary value. The effect of such

a system is an inducement to prescribe more medicine than is

necessary; and in fact, even with the present charges, the

apothecary, in ninety-nine cases out of a hundred, cannot be

fairly remunerated unless the patient either takes, or pays for,

more physic than he really requires. The apparent extravagance of

the charge of eighteen pence for a two-ounce phial(1*) of

medicine, is obvious to many who do not reflect on the fact that

a great part of the charge is, in reality, payment for the

exercise of professional skill. As the same charge is made by the

apothecary, whether he attends the patient or merely prepares the

prescription of a physician, the chemist and druggist soon

offered to furnish the same commodity at a greatly diminished

price. But the eighteen pence charged by the apothecary might

have been fairly divided into two parts, three pence for medicine

and bottle, and fifteen pence for attendance. The chemist,

therefore, who never attends his customers, if he charges only a

shilling for the same medicine, realizes a profit of 200 or 300

per cent upon its value. This enormous profit has called into

existence a multitude of competitors; and in this instance the

impossibility of verifying has, in a great measure, counteracted

the beneficial effects of competition. The general adulteration

of drugs, even at the extremely high price at which they are

retailed as medicine, enables those who are supposed to sell them

in an unadulterated state to make large profits, whilst the same

evil frequently disappoints the expectation, and defeats the

skill, of the most eminent physician.

 

It is difficult to point out a remedy for this evil without

suggesting an almost total change in the system of medical

practice. If the apothecary were to charge for his visits, and to

reduce his medicines to one-fourth or one-fifth of their present

price, he would still have an interest in procuring the best

drugs, for the sake of his own reputation or skill. Or if the

medical attendant, who is paid more highly for his time, were to

have several pupils, he might himself supply the medicines

without a specific charge, and his pupils would derive

improvement from compounding them, as well as from examining the

purity of the drugs he would purchase. The public would gain

several advantages by this arrangement. In the first place, it

would be greatly for the interest of the medical practitioner to

have the best drugs; it would be in his interest also not to give

more physic than needful; and it would enable him, through some

of his more advanced pupils, to watch more frequently the changes

of any malady.

 

190. There are many articles of hardware which it is

impossible for the purchaser to verify at the time of purchase,

or even afterwards, without defacing them. Plated harness and

coach furniture may be adduced as examples: these are usually of

wrought iron covered with silver, owing their strength to the one

and a certain degree of permanent beauty to the other metal. Both

qualities are, occasionally, much impaired by substituting cast-for wrought-iron, and by plating with soft solder (tin and lead)

instead of with hard solder (silver and brass). The loss of

strength is the greatest evil in this case; for cast iron, though

made for this purpose more tough than usual by careful annealing,

is still much weaker than wrought-iron, and serious accidents

often arise from harness giving way. In plating with soft

solder, a very thin plate of silver is made to cover the iron,

but it is easily detached, particularly by a low degree of heat.

Hard soldering gives a better coat of silver, which is very

firmly attached, and is not easily injured unless by a very high

degree of heat. The inferior can be made to look nearly as well

as the better article, and the purchaser can scarcely discover

the difference without cutting into it.

 

191. The principle that price, at any moment, is dependent on

the relation of the supply to the demand, is true to the full

extent only when the whole supply is in the hands of a very large

number of small holders, and the demand is caused by the wants of

another set of persons, each of whom requires only a very small

quantity. And the reason appears to be, that it is only in such

circumstances that a uniform average can be struck between the

feelings, the passions, the prejudices, the opinions, and the

knowledge, of both parties. If the supply, or present stock in

hand, be entirely in the possession of one person, he will

naturally endeavour to put such a price upon it as shall produce

by its sale the greatest quantity of money; but he will be guided

in this estimate of the price at which he will sell, both by the

knowledge that increased price will cause a diminished

consumption, and by the desire to realize his profit before a new

supply shall reach the market from some other quarter. If,

however, the same stock is in the hands of several dealers, there

will be an immediate competition between them, arising partly

from their different views of the duration of the present state

of supply, and partly from their own peculiar circumstances with

respect to the employment of their capital.

 

192. The expense of ascertaining that the price charged is

that which is legally due is sometimes considerable. The

inconvenience which this verification produces in the case of

parcels sent by coaches is very great. The time lost in

recovering an overcharge generally amounts to so many times the

value of the sum recovered, that it is but rarely resorted to. It

seems worthy of consideration whether it would not be a

convenience to the public if government were to undertake the

general conveyance of parcels somewhat on the same system with

that on which the post is now conducted. The certainty of their

delivery, and the absence of all attempt at overcharge, would

render the prohibition of rival carriers unnecessary. Perhaps an

experiment might be made on this subject by enlarging the weight

allowed to be sent by the twopenny post, and by conveying works

in sheets by the general post.

 

This latter suggestion would be of great importance to

literature, and consequently to the circulation of knowledge. As

the post-office regulations stand at present, it constantly

happens that persons who have an extensive reputation for

science, receive by post, from foreign countries, works, or parts

of works, for which they are obliged to pay a most extravagant

rate of postage, or else refuse to take in some interesting

communication. In France and Germany, printed sheets of paper are

forwarded by post at a very moderate expense, and it is fit that

the science and literature of England should be equally favoured.

 

193. It is important, if possible, always to connect the name

of the workman with the work he has executed: this secures for

him the credit or the blame he may justly deserve; and

diminishes, in some cases, the necessity of verification. The

extent to which this is carried in literary works, published in

America, is remarkable. In the translation of the Mecanique

Celeste by Mr Bowditch, not merely the name of the printer, but

also those of the compositors, are mentioned in the work.

 

194. Again, if the commodity itself is of a perishable

nature, such, for example, as a cargo of ice imported into the

port of London from Norway a few summers since, then time will

supply the place of competition; and, whether the article is in

the possession of one or of many persons, it will scarcely reach

a monopoly price. The history of cajeput oil during the last few

months, offers a curious illustration of the effect of opinion

upon price. In July of last year, 1831, cajeput oil was sold,

exclusive of duty, at 7 d. per ounce. The disease which had

ravaged the East was then supposed to be approaching our shores,

and its proximity created alarm. At this period, the oil in

question began to be much talked of, as a powerful remedy in that

dreadful disorder; and in September it rose to the price of 3s.

and 4s. the ounce. In October there were few or no sales: but in

the early part of November, the speculations in this substance

reached their height, and between the 1st and the 15th it

realized the following prices: 3s. 9d., 5s., 6s. 6d., 7s. 6d.,

8s., 9s., 10s., 10s. 6d., 11s. After 15 November, the holders of

cajeput oil were anxious to sell at much lower rates; and in

December a fresh arrival was offered by public sale at 5s., and

withdrawn, being sold afterwards, as it was understood, by

private contract, at 4s. or 4s. 6d. per oz. Since that time, 1s.

6d. and 1s. have been realized; and a fresh arrival, which is

daily expected (March, 1832) will probably reduce it below the

price of July. Now it is important to notice, that in November,

the time of greatest speculation, the quantity in the market was

held by few persons, and that it frequently changed hands, each

holder being desirous to realize his profit. The quantity

imported since that time has also been considerable.(2*)

 

195. The effect of the equalization of price by an increased

number of dealers, may be observed in the price of the various

securities sold at the Stock Exchange. The number of persons who

deal in the 3 per cent stock being large, any one desirous of

selling can always dispose of his stock at one-eighth per cent

under the market price; but those who wish to dispose of bank

stock, or of any other securities of more limited circulation,

are obliged to make a sacrifice of eight or ten times this amount

upon each hundred pounds value.

 

196. The frequent speculations in oil, tallow, and other

commodities, which must occur to the memory of most of my

readers, were always founded on the principle of purchasing up

all the stock on hand, and agreeing for the purchase of the

expected arrivals; thus proving the opinion of capitalists to be,

that a larger average price may be procured by the stock being

held by few persons.

 

NOTES:

 

1. Apothecaries frequently purchase these phials at the old

bottle warehouses at ten shillings per gross; so that when their

servant has washed them, the cost of the phial is nearly one

penny.

 

2. I have understood that the price of camphor, at the same time,

suffered similar changes.