Price Gouging

March 23

Carl Robert Keyes Daily Advert Update , , , , , , ,

What was advertised in a revolutionary American newspaper 250 years ago today?

Providence Gazette (March 23, 1776).

“No advantage is meant to be taken.”

As spring approached in 1776, James Green took to the pages of the Providence Gazette to advertise “GARDEN-SEEDS” that he sold “At his little Shop.”  He had done so in recent years, though the Continental Association, a nonimportation agreement devised by the Second Continental Congress that went into effect on December 1, 1774, and the outbreak of hostilities at Lexington and Concord on April 19, 1775, seemingly had an impact on his business.  He previously promoted a “Fresh Assortment of Garden Seed, just imported in the last Ships from London,” in the spring of 1773 and a “Fresh Assortment of Garden Seeds, imported from London …, warranted to be all of the last Year’s Produce,” in the spring of 1774.  In 1776, on the other hand, he stocked some seeds that he described as “English, the Growth of the Season before last,” meaning that they arrived before the Continental Association went into effect.  This time around he also had seeds for a variety of “American Produce,” adapting his business to the changing times.

As was often the case, Green took the opportunity to hawk other merchandise, including “a few articles of English goods,” presumably imported more than a year earlier, “a small assortment of glass, stone and earthen ware,” and “loaf and brown sugar, coffee, chocolate, indico, rice, [and] flour.”  Tea was conspicuously missing from the list of groceries that Green stocked.  The shopkeeper did not merely list his wares.  He also assured prospective customers his merchandise “will be sold at as cheap a rate as the times will afford.”  In other words, he set reasonable prices, yet he acknowledged that the nonimportation agreement and the war resulted in higher prices.  Still, he sought to avoid suspicion that he engaged in price gouging: “No advantage is meant to be taken.”  In making that statement, he echoed the ninth article of the Continental Association.  It dictated that “such as are Venders of Goods or Merchandise will not take Advantage of the Scarcity of Goods that may be occasioned” by this agreement.  Green wanted the entire community to know that he dealt fairly with his customers.

October 19

Carl Robert Keyes Daily Advert Update , , , , ,

What was advertised in a colonial American newspaper 250 years ago today?

Pennsylvania Gazette (October 19, 1774).

“I … am really sorry that my Fellow-Citizens should be so unfriendly to me.”

Tensions rose in the fall of 1774 as the harbor in Boston remained closed and blockaded due to the Boston Port Act and the rest of the Coercive Acts went into effect as punishment for the Boston Tea Party.  Yet that port was not the only place that experienced discord.  John Head’s advertisement, published in both the Pennsylvania Gazette and the Pennsylvania Journal on October 19, revealed his frustration with rumors and accusations that he sought to take advantage of the situation through unscrupulous business practices.

He reported that “a Number of unkind People have industriously propagated through this City, Philadelphia, “I made it my Business to purchase a large Quantity of several Sorts of dry Goods, in order to sell them again at an advanced Price.” Head, like many other colonizers, anticipated that the First Continental Congress, meeting in Philadelphia at the time, would enact some sort of nonimportation agreement in response to the Coercive Acts.  His critics accused him of attempting to sidestep such measures by stocking up on merchandise in advance, thus not having to make the same sacrifices as truly patriotic merchants.  To make matters worse, they insinuated that once goods became scare because of a nonimportation agreement that Head would jack up his prices and gouge consumers who did not have the usual range of choices available to them.

Head vigorously denied those rumors.  That “Report,” he asserted, “I do declare to be false.”  Furthermore, he challenged “any Person to appear to my Face, and prove that I have bought to the Amount of One Shilling’s Worth of Goods from them, since the Arrival of said Ships.”  Continuing to make his case, Head declared that “on a cool Reflection, I cannot recollect that I have bought to the Amount of Fifty Pounds Worth of dry Goods on Speculation since I have been in Trade.”  He did not have a history of acquiring goods in large quantities, nor had he done so recently, despite whatever his adversaries claimed.  Head expressed his disappointment over the gossip that made it necessary to take to the public prints to defend his reputation.  He lamented that “my Fellow-Citizens should be so unfriendly to me, and unjust to themselves, as to propagate a Report of this Sort.”  In so doing, he positioned himself among the ranks of citizens and patriots, confirming his fidelity to their cause.