380.  A combination, of another kind, exists at this moment to a great extent, and operates upon the price of the very pages which are now communicating information respecting it.  A subject so interesting to every reader, and still more so to every manufacturer ofthe article which the reader consumes, deserves an attentive examination.

We have shown in Chapter xxi, p. 144, the component parts of the expense of each copy of the present work; and we have seen that the total amount of the cost of its production, exclusive of any payment to the author for his labour, is 2s. 3d.(1*)

Another fact, with which the reader is more practically familiar, is that he has paid, or is to pay, to his bookseller, six shillings for the volume.  Let us now examine into the distribution of these six shillings, and then, having the facts ofthe case before us, we shall be better able to judgeofthe meritsofthe combinationjust mentioned, andtoexplainits effects.

 Distribution of the profits on a six shilling book

 Buys at; Sells at; Profit on capital expended
 s. d.; s. d.

No.  I—­The publisher who accounts to the author for every copy received; 3 10; 4 2; 10 per cent No.  II—­The bookseller who retails to the public; 4 2; 6 0; 44 Or, 4 6; 6 0; 33 1/3

No.  I, the publisher, is a bookseller; he is, in fact, the author’s agent.  His duties are, to receive and take charge of the stock, for which he supplies warehouse room; to advise the author about the times and methods of advertising; and to insert the advertisements.  As he publishes other books, he will advertise lists of those sold by himself; and thus, by combining many in one advertisement, diminish the expense to each of his principals.  He pays the author only for the books actually sold; consequently, he makes no outlav of capital, except that which he pays for advertisements:  but he is answerable for any bad debts he may contract in disposing of them.  His charge is usually ten per cent on the returns.

No.  II is the bookseller who retails the work to the public.  On the publication of a new book, the publisher sends round to the trade, to receive ‘subscriptions’ from them for any number of copies not less than two These copies are usually charged to the ‘subscribers’, on an average, at about four or five per cent less than the wholesale price of the book:  in the present case the subscription price is 4s. 2d. for each copy.  After the day of publication, the price charged by the publisher to the booksellers is 4s. 6d.  With some works it is the custom to deliver twentyfive copies to those who order twenty-four, thus allowing a reduction of about four per cent.  Such was the case with the present volume.  Different publishers offer different terms to the subscribers; and it is usual, after intervals of about six months, for the publisher again to open a subscription list, so that if the work be one for which there is a steady sale, the trade avail themselves of these opportunities ofpurchasing, at the reduced rate, enough to supply their probable demand.(2*)