We are assured on high authority that we greatly over-rated
last week the capital needed by a grocer, when we assumed that it would be equal in amount to his purchases. " Any grocer will tell you," writes our correspondent, " that in practice it varies from one-fifth to one-tenth. Consequently, he can sell, and does sell, his goods, in a moderately well conducted trade, everywhere else than at the West End, for about a penny in the shilling advance on their prime cost." If so, he must give no credit, or very little. Many retail grocers give nearly a year's credit, and as we presume they do not usually get nearly so much as this from the merchant, we should think one-fifth of his purchases a very low estimate for the needful capital. But when it is so, of course a very much lower rate of profit would suffice.
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