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34
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THE DIAMOND
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ily as the diamond. At a forced sale it will realize more in proportion to its value, on an average, than real estate even.
Since
the diamond syndicate secured such perfect control of the trade, the
profits, after the diamonds leave first hands, have been much
curtailed. Cutters will sell large parcels to houses of undoubted
credit for a net profit of five per cent., after deducting interest on
the note given in payment. Importers will sell on time for a profit of
eight to fifteen per cent., according to the commercial standing of
the buyer and the length of time given. Retailers of the East will not
average over twenty-five per cent, profit. As cutters and importers
sell on six to ten months' time, and sometimes spread a large bill, by
a division of the amount in notes bearing no interest, over a period of
from six to eighteen months, it will be seen that quick sales, large
amounts, and good judgment in credits, are necessary to successful
business.
The
frequency with which the syndicate has advanced the price, has been the
diamond dealers' good fortune during the past ten years. Never
sufficiently large to check trade — the advances have usually been five
per cent., occasionally seven and one half per cent.— they have
stimulated trade with a money-making public, and encouraged speculation
among dealers, who were able to market the goods and make at least part
of the advances in addition to regular profits. Curious anomalies
have arisen from the conditions. During that period, small dealers,
who buy about once a year, have frequently found when the time came to
lay in their stocks, that to duplicate what they bought last, they had
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