Sea Trading

Cost Of South

What “Small Man” Has To Meet

Interesting Items From

Solomons

From Our Own Correspondent

Tulagi, May 19.

AS a result of the recent increase in the price of tobacco, brought about by exchange and extra duty, the small trader was compelled to pass the difference on to the native and, where he had been giving 3 sticks for a shilling there was nothing for it but to reduce to two, though this showed him a slight extra profit, bringing it up to about 85 per cent, on cost in the local supply stores.

Quite naturally there was, and still is, a lament amongst natives, but unfortunately this finds backing amongst a section of whites, who are always ready to denounce the small trader as an exploiter of the native, without the slightest consideration of facts.

Perhaps, if these people were shown what gross profits they themselves pay on many articles, especially smokes, when they visit “civilisation,” they would hasten to modify their opinions.

Tobacco is one of the trader’s most profitable lines, but, being an absolute luxury there is surely nothing to cavil at in that. Against this there are many articles which show very little profit, as well as a fair proportion which cannot be sold at all. There are bad debts, which also have to be taken into consideration and, thanks to extensive Chinese competition, this is no small item.

Of course, if the natives on outlying islands had means of getting in to the central supply or wholesale stores, they could buy their goods much cheaper, especially if they brought their produce along with them. But, with few exceptions, they cannot do this, so it follows that someone has to go to them.

The system of the larger suppliers running numerous small trading stations and boats has been tried in the past, and had to be given up, after huge losses, as a hopeless failure; and they were only too glad to leave the go-between business in the hands of the small man.

Expenses To Be Met

Now let us consider the small trader’s net profit as it is (or is not) to-day.

To start with, he has to find a 3 to 10 ton vessel, which may put him on the debit side of the books anything up to £1,500. On this and his overdraft for goods he pays 8 per cent. interest.

The boat must be insured, another 10 or 15 per cent. He must allow 10 per cent, depreciation on his boat and anything from 10 to 50 per cent, on his engine, the running repairs of which are a nightmare, unless he is able to do them himself, and he seldom is. He has to recruit and maintain a boat’s crew of about 6, at a cost of £12 per month or more. There are endless other outgoings, including a trading licence for his boat of £5 per year, and £10 for a trading station for which latter he also pays about £5 per year ground rent. He often finds it necessary to take out a number of these station licences. He is now about ready to begin trading.

He sets off on a round which will possibly take him 400 miles, more or less, and the time occupied may be a month. On tallying up results after the trio he is lucky (these days) if he has sold £20 worth of goods and has bought two tons of produce. He certainly does not average 2 tons of trochus, which is about the only line of produce worth handling at all. For this, he is very lucky to show a gross profit of £5 per ton. The “denouncer” can rest assured that competition takes good care of this.

Thus it will be seen that trading in a small way is in a particularly bad state, and, to heap coals on the fire, the trader is now up against a grow-

ing tendency on the part of his suppliers to sell goods to the native retail at the same price which they charge him wholesale. It goes without saying that this short-sighted policy is directly opposed to their own benefit, since it debars the trader from buying those lines at all, or else it encourages him to import his own goods from overseas.

Planters Turning Traders

One other important point which has not rendered the lot of the trader any easier is the fact that a number of planters, owing to the frightful state of the copra market, have come into the game to try and stall off bankruptcy.

On top of all this it is a notorious fact that, where one man has made a success of trading worth mentioning, 19 have gone to the wall or got out before the bump.

High Commissioner’S Visit

The main topic of conversation in the group just now is the visit of the High Commissioner from Fiji. Coming by the New Zealand R.N. Sloop Laburnam, he is timed to arrive at Tulagi on July 6, and after a trip around the group, to leave on July 24.

If preparations for deputations are any indication he will be well advised to provide himself with a pair of seaboots to enable him to wade through the sea of tears which awaits him.

Treasurer Returns

The return from furlough of Mr. (Treasurer) Johnson, who has so ably managed the finances of the Government for a number of years, is looked forward to by many, but it is to be hoped he has not learned any of the Lang-Theodore tricks with the intention of completing the slaughter of a staggering community.

Thanks largely to his ability, the Government balance sheet still shows a substantial credit. But, by the present state of the copra market and the outlook as set out by the P.I.M., Mr. Johnson’s ablest efforts will be taxed to the utmost in the near future.

Hotelkeeper’S Bad Luck

One of the three hotels in Tulagi has had to put up the shutters. Sympathy is felt for the unfortunate licencee (Robert Stirling) who, for the past 12 months and over, has been in Brisbane and Sydney hospitals undergoing a string of operations, what time his affairs here became more and more involved.

It is rumoured that he is left with sufficient “chits” to paper the walls of a room. In view of the circumstances it is hoped that those who tendered them will have the manhood to redeem them. ===