Perfect Diamonds and Trade Unions in the Nineteenth Century Diamond Industry

The Perfect Diamond

By a perfect diamond is meant in the trade a diamond without flaw or spot which can be discovered by using an ordinary watchmaker's glass by a person whose eyes are ordinarily strong. Scientifically the perfect diamond does not exist, as all diamonds must show imperfections if a glass powerful enough be used. Imperfections, termed flaws or feathers, are due to carbon spots or minute cracks. Commercially, perfect diamonds or slightly imperfect and even imperfect diamonds are equally staple and salable. The actual value of the stone is of course determined by its color, brilliancy, freedom from discernible imperfections or conspicuousness of flaws if they exist, and size.

Can Diamonds be bought best from European Cutters or American?

The question often comes up whether diamonds used in the United States can best be bought by diamond merchants from cutters in America or from the cutters in Europe. To those who have made a study of the question there can be no doubt that in sizes from one half a carat and larger, the American cutters, if properly equipped, are able to produce and deliver finished diamonds to the trade in the United States cheaper than the same goods could be bought and landed, duty paid, from European cutters. The following letter from Mr. Ernest G. H. Schenck, of Schenck & Van Haelen, explains the condition of the cutter in America and Europe as it is today.

"Regarding wages ruling in American as against European diamond cutting centers, the difference which some fifteen years ago existed and had a bearing upon preference of purchase being given to Europe, has today become so small a factor that the tables have been efficaciously turned in favor of the United States for all purchases of diamonds of value and size, not excluding some melees.

"The progress made here in economic handling of rough merchandise has almost reached the point where, should the duty be removed from the cut as well as it is removed from the rough diamond, I firmly believe the industry would, in the United States, through better workmanship, triumph and grow over all others, even on an equal footing.

"Several causes lie at the bottom of this: fifteen years ago the cost of manufacture represented, say, about fifteen per cent of the price of the finished article; today, with the doubled value of the rough material it represents only about ten per cent (allowing, of course, fully for increased wages paid for improved work during that period).

"Furthermore, if some dozen years ago, at a time when protection to industries was thought necessary, an average duty of less than ten dollars per carat (ten per cent ad valorem) was found more than sufficient, what is the obvious conclusion to be drawn today, when this same duty means on the same goods not less than double or twenty dollars per carat?

"On the other hand, trade unionism has increased in Europe even more and with greater reason than it has in the United States; and the demands have become more urgent in full ratio to the abuse of labor that has been practised in the old countries. The result has been that the few good artisans who had not emigrated to more hospitable shores, together with the mass of poor workers remaining over there, have gradually found better terms granted them, with shorter hours of work, than had ever been the case heretofore. In consequence there is today a constant narrowing down of the difference between the two scales of wages, and it will not be long before almost equal compensation will prevail in Antwerp and Amsterdam, as well as in America, for the best workmanship in diamond cutting.

"In a general way, this wage question could heretofore be summed up as follows, taking two hundred dollars as an average value per carat:

1 Carat, $200.00 U. S. A...paid wages $20.00

1 Carat, $192.00 Europe...paid wages $12.00

Difference $8.00

or four per cent in favor of Europe.

"Duty ten per cent on $192 is $19.20, from which, deducting balance in favor of Europe equaling $8, leaves $11.20, or 5.6 per cent in favor of the United States.

"With the going into effect of the new Underwood Tariff this percentage of difference remains the same, owing to the fact that the ratio in duties between cut and rough diamonds brought into the United States also remains the same, that is, the duty on cut diamonds has been increased to twenty per cent, whereas the duty on rough diamonds is now ten per cent ad valorem."

Melees