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THE PROBLEM OF THE UNEMPLOYED
wealth to be effectively distributed without any considerable
increase of the labour or capital engaged in distributive
industries. Even if some increase of distributors be
economically necessary, it will not be denied that the
actual increase of all classes of middle-men and retailers
has passed far beyond this wholesome necessary limit.
A diminishing proportion of commercial effort is expended
in the actual work of distribution, an increasing proportion
in the work of getting business. A proof of this is the
phenomenal growth of commercial travellers, local agents,
jobbers, touts, and the enormous expenditure in every
form of advertisement. The actual energy given out in
trades, directly or indirectly concerned in distribution, is
thus swollen far beyond the demands of such wholesome
and effective competition as will ensure for the consuming
public a cheap and rapid service of supply. The keenness
of competition among rival distributors is admittedly responsible
for much of the adulteration and other deceitful
practices which tend to the deterioration of commodities.
Unfortunately, we possess no official or reliable records
of the general movements in retail trade, which we can
compare with the statistics of wholesale prices prepared by
Mr. Sauerbeck. It is, however, generally believed, and such
fragmentary evidence as we possess accords with the belief,
that the great fall of wholesale prices since 1873 has not
been attended by a commensurate fall of retail prices.
§ 12. Why Waste takes a Different Form in
Distribution and in Manufactures.
Nor is it unreasonable that this should be the case.
The effects of competition are somewhat different in
manufacturing and in distributing industries. In the former