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Chapter 07 - New Product Planning and Development
7-1
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education.
Chapter 7
New Product Planning and Development
High-Level Chapter Outline
I. New Product Strategy
II. New Product Planning and Development Process
A. Idea Generation
B. Idea Screening
C. Project Planning
D. Product Development
E. Test Marketing
F. Commercialization
G. The Importance of Time
III. Some Important New Product Decisions
A. Quality Level
B. Product Features
C. Product Design
D. Product Safety
IV. Causes of New Product Failure
A. Need for Research
Detailed Chapter Outline
I. New Product Strategy
• Authors C. Merle Crawford and Anthony DiBenedetto have developed a useful definition
of new products based on the following categories.
o New-to-the-world-products—products that are inventions and create a whole new
market.
o New-to-the-firm products—products that take the firm into a category new to it but
not to the world.
o Additions to existing product lines—these are products that extend existing product
lines to current markets such as Bud Light, Apple’s iMac and Tide’s liquid detergent.
o Improvements and revisions of existing products—these are current products that are
Chapter 07 - New Product Planning and Development
7-2
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education.
made better. Virtually every product on the market has been improved, often many
times.
o Repositionings—products that are retargeted for a new use or application.
o Cost reductions—these are new products that simply replace existing products in a
line, providing the customer similar performance but at a lower cost.
• The best strategy is the one that will maximize company goals.
• A second approach to the new product question is the one developed by H. Igor Ansoff in
the form of growth vectors (Figure 7.1).
• Market penetration denotes a growth direction through the increase in market share for
present product markets.
• Product development refers to creating new products to replace existing ones.
• Market development refers to finding new customers for existing products.
• Diversification refers to developing new products and cultivating new markets.
• Market penetration and market development strategies use present products. A goal of
these types of strategies is to either increase frequency of consumption or increase the
number of customers using the firm’s product.
• Product development and diversification can be characterized as product mix strategies.
• Policy-making criteria on new products should specify:
o A working definition of the profit concept acceptable to top management
o A minimum level or floor of profits
o The availability and cost of capital to develop a new product
o A specified time period in which the new product must recoup its operating costs and
begin contributing to profits
• It is critical that firms do not become solely preoccupied with a short-term focus on
earnings associated with new products.
II. New Product Planning and Development Process
• Ideally, products that generate a maximum dollar profit with a minimum amount of risk
should be developed and marketed.
• Refer figure 7.2 for the new product development process.
A. Idea Generation
• Every product starts as an idea. Some estimates indicate that as many as 60 or 70 ideas
are necessary to yield one successful product.
• The problem at this stage is to ensure that all new product ideas available to the
company at least have a chance to be heard and evaluated.
• Since idea generation is the least costly stage in the new product development process,
Chapter 07 - New Product Planning and Development
7-3
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education.
it makes sense that the emphasis be placed first on recognizing available sources of
new product ideas and then on funneling theses ideas to appropriate decision makers
for screening.
• Top-management support is critical to providing an atmosphere that stimulates new
product activity.
• Both technology push and market pull research activities play an important role in new
product ideas and development.
• By taking a broad view of customer needs and wants, basic and applied research
(technology push) can lead to ideas that will yield high profits to the firm.
• Marketing, on the other hand, is more responsible for gathering and disseminating
information gained from customers and other contacts.
B. Idea Screening
• The primary function of the idea screening process is twofold:
o To eliminate ideas for new products that could not be profitably marketed by the
firm
o To expand viable ideas into full product concepts
• The organization has to consider three categories of risk (and its associated risk
tolerance) in the idea screening phase prior to reaching a decision:
o Strategic risk: It involves the risk of not matching the role or purpose of a new
product with a specific strategic need or issue of the organization.
o Market risk: It is the risk that a new product will not meet a market need in a
value-added, differentiated way.
o Internal risk: It is the risk that a new product will not be developed within the
desired time and budget.
• In evaluating these risks, firms should not act too hastily in discounting new product
ideas solely because of a lack of resources or expertise.
• Instead, firms should consider forming joint or strategic alliances with other firms.
• A strategic alliance is a long-term partnership between two organizations designed to
accomplish the strategic goals of both parties.
• Potential benefits to be gained from alliances include:
o Increased access to technology, funding, and information
o Market expansion and greater penetration of current markets
o De-escalated competitive rivalries
C. Project Planning
• This stage involves several steps.
Chapter 07 - New Product Planning and Development
7-4
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education.
• Various alternatives exist for creating and managing the project teams.
• Two of the better-known methods are the establishment of a skunkworks, whereby a
project team can work in relative privacy away from the rest of the organization, and a
rugby or relay approach, whereby groups in different areas of the company are
simultaneously working on the project.
• The common tie that binds these and other successful approaches together is the
degree of interaction that develops among the marketing, engineering, production, and
other critical staff.
• A key component contributing to the success of many companies’ product
development efforts relates to the emphasis placed on creating cross-functional teams
early in the development process. (Marketing Insight 7-6 explains why cross-
functional product development teams can work.)
D. Product Development
• At this juncture, the product idea has been evaluated from the standpoint of
engineering, manufacturing, finance, and marketing.
• If it has met all expectations, it is considered a candidate for further research and
testing.
• In the laboratory, the product is converted into a finished good and tested.
• A development report to management is prepared that spells out in fine detail:
o Results of the studies by the engineering department
o Required plan design
o Production facilities design
o Tooling requirements
o Marketing test plan
o Financial program survey
o Estimated release date
E. Test Marketing
• Test-market programs are conducted in line with the general plans for launching the
product.
• Test marketing is a controlled experiment in a limited geographical area to test the
new product or in some cases certain aspects of the marketing strategy, such as
packaging or advertising.
• The main goal of a test market is to evaluate and adjust, as necessary, the general
marketing strategy to be used and the appropriate marketing mix.
• Throughout the test market process, findings are being analyzed and forecasts of
Chapter 07 - New Product Planning and Development
7-5
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education.
volume developed.
• In summary, a well-done test market procedure can reduce the risks that include not
only lost marketing and sales dollars but also capital—the expense of installing
production lines or building a new factory.
• Upon completion of a successful test market phase, the marketing plan can be
finalized and the product prepared for launch.
F. Commercialization
• This is the launching step in which the firm commits to introducing the product into
the marketplace.
• During this stage, heavy emphasis is placed on the organization structure and
management talent needed to implement the marketing strategy.
• Procedures and responsibility for evaluating the success of the new product by
comparison with projections are also finalized.
G. The Importance of Time
• Time to market can be defined as the elapsed time between product definition and
product availability.
• Successful time-based innovations can be attributed to the use of short production
runs.
• Several U.S. companies, including Procter & Gamble, have taken steps to speed up the
new product development cycle by giving managers, at the product class and brand
family level, more decision-making powers.
III. Some Important New Product Decisions
• In the development of new products, marketers have several important decisions to make
about the characteristics of the product itself.
• These include quality level, product features, product design, and product safety levels.
A. Quality Level
• Both consumers and organizational buyers consider the level of product quality when
making purchase decisions for both new and existing products.
• In designing new products, marketers must consider what criteria potential customers
use to determine their perceptions of quality.
• An important indicator of a number of the criteria listed in Figure 7.3 is the presence
Chapter 07 - New Product Planning and Development
7-6
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education.
and extent of a new product warranty.
• A warranty is the producer’s statement of what it will do to compensate the buyer if
the product is defective or does not work properly.
• A guarantee is an assurance that the product is as represented and will perform
properly.
• Figure 7.3 presents some criteria for determining perceptions of quality.
B. Product Features
• A product feature is a fact or particular specification about a product.
• Marketers may identify a need for new features that target markets have not yet
thought of and may not even understand.
C. Product Design
• Designing new products with both ease of use and aesthetic appeal can be difficult, but
it can clearly differentiate a new product from competitors.
• Good design can add great value to a new product.
D. Product Safety
• New products must have a reasonable level of safety.
• Safety is both an ethical and a practical issue.
• Ethically, customers should not be harmed by using a product as intended.
• Some products are inherently dangerous and can result in injury to users.
• Other products such as patented medicines can harm a small portion of users.
• Hopefully, the benefits such products offer outweigh their risks.
IV. Causes of New Product Failure
• Many new products with satisfactory potential have failed to make the grade for reasons
related to execution and control problems. Some of the more important marketing causes
of new product failures are as follows:
o No competitive point of difference, unexpected reactions from competitors, or both
o Poor positioning
o Poor quality or product
o Nondelivery of promised benefits or products
o Too little marketing support
o Poor perceived price/quality (value) relationship
Chapter 07 - New Product Planning and Development
7-7
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education.
o Faulty estimates of market potential and other marketing research mistakes
o Faulty estimates of production and marketing costs
o Improper channels of distribution selected
o Rapid change in the market (economy) after the product was introduced
A. Need for Research
• Top management has a responsibility to ask certain questions, and the new product
planning team has an obligation to generate answers to these questions based on
research that provides, marketing, economic, engineering, and production information.
• Some of the specific questions commonly raised in evaluating product ideas are:
o What is the anticipated market demand over time? Are the potential applications
for the product restricted?
o Can the item be patented? Are there any antitrust problems?
o Can the product be sold through present channels and the current sales force?
What number of new salespersons will be needed? What additional sales training
will be required?
o At different volume levels, what will be the unit manufacturing costs?
o What is the most appropriate package to use in terms of color, material, design,
and so forth?
o What is the estimated return on investment?
o What is the appropriate pricing strategy?
KEY TERMS
Commercialization: Stage of the new product development process that involves the actual
launch of the product and the implementation of the marketing strategy.
Cross-functional teams: Members from many different departments come together to jointly
establish new product development goals and priorities and to develop schedules.
Diversification: A strategy that seeks to develop new products and cultivate new customers. It
often leads the organization into new businesses, sometimes through acquisition.
Guarantee: An assurance by the producer that the product is as represented and will perform
properly. If not, the organization making the guarantee replaces the product or refunds the
customer’s money.
Idea generation: Stage of the new product development process at which the goal is to ensure
Chapter 07 - New Product Planning and Development
7-8
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education.
that all new product ideas considered by the organization have the opportunity to be heard and
evaluated because the success of the process will depend greatly on the quality of the ideas
generated.
Idea screening: Evaluation of an idea based on strategic risk, market risk, and internal risk for
the purpose of eliminating ideas that could not be profitably marketed and expanding viable
ideas into full product concepts.
Market development: A strategy that seeks to find new customers for existing products. An
organization pursuing this strategy seeks to establish footholds in new markets or preempt
competition in emerging market segments.
Market penetration: A strategy that denotes a growth direction through the increase in market
share of present products in present markets. An organization pursuing this strategy hopes to
capitalize on existing markets and combat competitive entry or incursions.
New product development process: Stages include idea generation, idea screening, project
planning, product development, test marketing, commercialization.
Product development: A strategy that seeks to create new products to replace existing ones. An
organization pursuing this strategy hopes to capitalize on existing markets and combat
competitive entry or incursions.
Product development stage: Stage of the new product development process at which the
product idea has met all expectations and is considered a candidate for further research and
testing. In the laboratory, the product is converted into a finished good and tested.
Project planning: Stage of the new product development process at which the idea is evaluated
further and responsibility for the project is assigned to a project team. The idea is evaluated in
terms of production, marketing, financial, and competitive factors. A development budget is
established, and preliminary marketing and technical research is undertaken.
Rugby or relay: An approach to creating and managing product development teams that
involves groups in different areas of the organization working simultaneously on the project.
Skunkworks: An approach to creating and managing product development teams that involves
team members working in relative privacy, away from the rest of the organization.
Test marketing: Stage of new product development process at which the product is no longer a
company secret. Test marketing is a controlled experiment in a limited geographical area to test
Chapter 07 - New Product Planning and Development
7-9
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education.
the new product as well as elements of the marketing mix.
Time to market: The elapsed time between product definition and product availability. It is
important because history has shown that organizations that are first in bringing their product to
market often gain a competitive advantage in terms of profits and market share.
Warranty: The statement of the producer of what it will do to compensate the buyer if the
product is defective or does not perform properly.
ADDITIONAL RESOURCES
Adamson, Allen P. The Edge: Fifty Tips from Brands That Lead. New York: Palgrave
Macmillan, 2013.
Bender, Michael. A Manager’s Guide to Project Management. Upper Saddle River, NJ: FT
Press, 2010.
Biyalogorsky, EyaI, William Boulding, and Richard Staelin. “Stuck In The Past: Why Managers
Persist in New Product Failures.” Journal of Marketing, April 2006, pp. 108-122.
Estrin, Judy. Closing The Innovation Gap. NY: McGraw-Hill, 2009.
Knight, Joe, Roger Thomas, and Brad Angus. Project Management for Profit. Boston: Harvard
Business Review Press, 2012.
Macintosh, Julie. Dethroning the King. NY: John Wiley and Sons, 2011.
Mack, Ben. Think Two Products Ahead. NY: John Wiley, 2007.
Siegel, Eric. Predictive Analytics. Hoboken, NJ: John Wiley and Sons, 2013.
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of it in the detail. I addressed myself to the retailers of rice, and
from them received a mixture of truth and error, which I was unable
to sift apart in the first moment. Continuing, however, my inquiries,
they produced at length this result: that the dealers here were in the
habit of selling two qualities of rice, that of Carolina, with which they
were supplied chiefly from England, and that of Piedmont; that the
Carolina rice was long, slender, white and transparent, answers well
when prepared with milk, sugar, &c., but not so well when prepared
au gras; that that of Piedmont was shorter, thicker, and less white,
but that it presented its form better when dressed au gras, was
better tasted, and therefore preferred by good judges for those
purposes; that the consumption of rice, in this form, was much the
most considerable, but that the superior beauty of the Carolina rice,
seducing the eye of those purchasers who are attached to
appearances, the demand for it was upon the whole as great as for
that of Piedmont. They supposed this difference of quality to
proceed from a difference of management; that the Carolina rice
was husked with an instrument that broke it more, and that less
pains were taken to separate the broken from the unbroken grains,
imagining that it was the broken grains which dissolved in oily
preparations; that the Carolina rice costs somewhat less than that of
Piedmont; but that being obliged to sort the whole grains from the
broken, in order to satisfy the taste of their customers, they ask and
receive as much for the first quality of Carolina, when sorted, as for
the rice of Piedmont; but the second and third qualities, obtained by
sorting, are sold much cheaper. The objection to the Carolina rice
then, being, that it crumbles in certain forms of preparation, and this
supposed to be the effect of a less perfect machine for husking, I
flattered myself I should be able to learn what might be the machine
of Piedmont, when I should arrive at Marseilles, to which place I was
to go in the course of a tour through the seaport towns of this
country. At Marseilles, however, they differed as much in account of
the machines, as at Paris they had differed about other
circumstances. Some said it was husked between mill-stones, others
between rubbers of wood in the form of mill-stones, others of cork.
They concurred in one fact, however, that the machine might be
seen by me, immediately on crossing the Alps. This would be an
affair of three weeks. I crossed them and went through the rice
country from Vercelli to Pavia, about sixty miles. I found the machine
to be absolutely the same with that used in Carolina, as well as I
could recollect a description which Mr. E. Rutledge had given me of
it. It is on the plan of a powder mill. In some of them, indeed, they
arm each pestle with an iron tooth, consisting of nine spikes hooked
together, which I do not remember in the description of Mr.
Rutledge. I therefore had a tooth made, which I have the honor of
forwarding you with this letter; observing, at the same time, that as
many of their machines are without teeth as with them, and of
course, that the advantage is not very palpable. It seems to follow,
then, that the rice of Lombardy (for though called Piedmont rice, it
does not grow in that county but in Lombardy) is of a different
species from that of Carolina; different in form, in color and in
quality. We know that in Asia they have several distinct species of
this grain. Monsieur Poivre, a former Governor of the Isle of France,
in travelling through several countries of Asia, observed with
particular attention the objects of their agriculture, and he tells us,
that in Cochin-China they cultivate six several kinds of rice, which he
describes, three of them requiring water, and three growing on
highlands. The rice of Carolina is said to have come from
Madagascar, and De Poivre tells us, it is the white rice which is
cultivated there. This favors the probability of its being of a different
species originally, from that of Piedmont; and time, culture and
climate may have made it still more different. Under this idea, I
thought it would be well to furnish you with some of the Piedmont
rice, unhusked, but was told it was contrary to the laws to export it
in that form. I took such measures as I could, however, to have a
quantity brought out, and lest these should fail, I brought, myself, a
few pounds. A part of this I have addressed to you by the way of
London; a part comes with this letter; and I shall send another
parcel by some other conveyance, to prevent the danger of
miscarriage. Any one of them arriving safe, may serve to put in
seed, should the society think it an object. This seed too, coming
from Vercelli, where the best rice is supposed to grow, is more to be
depended on than what may be sent me hereafter. There is a rice
from the Levant, which is considered as of a quality still different,
and some think it superior to that of Piedmont. The troubles which
have existed in that country for several years back, have intercepted
it from the European market, so that it is become almost unknown. I
procured a bag of it, however, at Marseilles, and another of the best
rice of Lombardy, which are on their way to this place, and when
arrived, I will forward you a quantity of each, sufficient to enable
you to judge of their qualities when prepared for the table. I have
also taken measures to have a quantity of it brought from the
Levant, unhusked. If I succeed, it shall be forwarded in like manner.
I should think it certainly advantageous to cultivate, in Carolina and
Georgia, the two qualities demanded at market, because the
progress of culture, with us, may soon get beyond the demand for
the white rice; and because too, there is often a brisk demand for
the one quality, when the market is glutted with the other. I should
hope there would be no danger of losing the species of white rice,
by a confusion with the other. This would be a real misfortune, as I
should not hesitate to pronounce the white, upon the whole, the
most precious of the two, for us.
The dry rice of Cochin-China has the reputation of being the whitest
to the eye, best flavored to the taste, and most productive. It seems
then to unite the good qualities of both the others known to us.
Could it supplant them, it would be a great happiness, as it would
enable us to get rid of those ponds of stagnant water, so fatal to
human health and life. But such is the force of habit, and caprice of
taste, that we could not be sure beforehand it would produce this
effect. The experiment, however, is worth trying, should it only end
in producing a third quality, and increasing the demand. I will
endeavor to procure some to be brought from Cochin-China. The
event, however, will be uncertain and distant.
I was induced, in the course of my journey through the south of
France, to pay very particular attention to the objects of their
culture, because the resemblance of their climate to that of the
southern parts of the United States, authorizes us to presume we
may adopt any of their articles of culture, which we would wish for.
We should not wish for their wines, though they are good and
abundant. The culture of the vine is not desirable in lands capable of
producing anything else. It is a species of gambling, and of
desperate gambling too, wherein, whether you make much or
nothing, you are equally ruined. The middling crop alone is the
saving point, and that the seasons seldom hit. Accordingly, we see
much wretchedness among this class of cultivators. Wine, too, is so
cheap in these countries, that a laborer with us, employed in the
culture of any other article, may exchange it for wine, more and
better than he could raise himself. It is a resource for a country, the
whole of whose good soil is otherwise employed, and which still has
some barren spots, and surplus of population to employ on them.
There the vine is good, because it is something in the place of
nothing. It may become a resource to us at a still earlier period;
when the increase of population shall increase our productions
beyond the demand for them, both at home and abroad. Instead of
going on to make an useless surplus of them, we may employ our
supernumerary hands on the vine. But that period is not yet arrived.
The almond tree is also so precarious, that none can depend for
subsistence on its produce, but persons of capital.
The caper, though a more tender plant, is more certain in its
produce, because a mound of earth of the size of a cucumber hill,
thrown over the plant in the fall, protects it effectually against the
cold of winter. When the danger of frost is over in the spring, they
uncover it, and begin its culture. There is a great deal of this in the
neighborhood of Toulon. The plants are set about eight feet apart,
and yield, one year with another, about two pounds of caper each,
worth on the spot sixpence sterling per pound. They require little
culture, and this may be performed either with the plough or hoe.
The principal work is the gathering of the fruit as it forms. Every
plant must be picked every other day, from the last of June till the
middle of October. But this is the work of women and children. This
plant does well in any kind of soil which is dry, or even in walls
where there is no soil, and it lasts the life of a man. Toulon would be
the proper port to apply for them. I must observe, that the
preceding details cannot be relied on with the fullest certainty,
because, in the canton where this plant is cultivated, the inhabitants
speak no written language, but a medley, which I could understand
but very imperfectly.
The fig and mulberry are so well known in America, that nothing
need be said of them. Their culture, too, is by women and children,
and therefore earnestly to be desired in countries where there are
slaves. In these, the women and children are often employed in
labors disproportioned to their sex and age. By presenting to the
master objects of culture, easier and equally beneficial, all
temptation to misemploy them would be removed, and the lot of this
tender part of our species be much softened. By varying, too, the
articles of culture, we multiply the chances for making something,
and disarm the seasons in a proportionable degree, of their
calamitous effects.
The olive is a tree the least known in America, and yet the most
worthy of being known. Of all the gifts of heaven to man, it is next
to the most precious, if it be not the most precious. Perhaps it may
claim a preference even to bread, because there is such an infinitude
of vegetables, which it renders a proper and comfortable
nourishment. In passing the Alps at the Col de Tende, where they
are mere masses of rock, wherever there happens to be a little soil,
there are a number of olive trees, and a village supported by them.
Take away these trees, and the same ground in corn would not
support a single family. A pound of oil, which can be bought for
three or four pence sterling, is equivalent to many pounds of flesh,
by the quantity of vegetables it will prepare, and render fit and
comfortable food. Without this tree, the country of Provence and
territory of Genoa would not support one-half, perhaps not one-
third, their present inhabitants. The nature of the soil is of little
consequence if it be dry. The trees are planted from fifteen to
twenty feet apart, and when tolerably good, will yield fifteen or
twenty pounds of oil yearly, one with another. There are trees which
yield much more. They begin to render good crops at twenty years
old, and last till killed by cold, which happens at some time or other,
even in their best positions in France. But they put out again from
their roots. In Italy, I am told, they have trees two hundred years
old. They afford an easy but constant employment through the year,
and require so little nourishment, that if the soil be fit for any other
production, it may be cultivated among the olive trees without
injuring them. The northern limits of this tree are the mountains of
the Cevennes, from about the meridian of Carcassonne to the
Rhone, and from thence, the Alps and Apennines as far as Genoa, I
know, and how much farther I am not informed. The shelter of these
mountains may be considered as equivalent to a degree and a-half
of latitude, at least, because westward of the commencement of the
Cevennes, there are no olive trees in 43½˚ or even 43˚ of latitude,
whereas, we find them now on the Rhone at Pierrelatte, in 44½˚,
and formerly they were at Tains, above the mouth of the Isere, in
45˚, sheltered by the near approach of the Cevennes and Alps,
which only leave there a passage for the Rhone. Whether such a
shelter exists or not in the States of South Carolina and Georgia, I
know not. But this we may say, either that it exists or that it is not
necessary there, because we know that they produce the orange in
open air; and wherever the orange will stand at all, experience
shows that the olive will stand well, being a hardier tree.
Notwithstanding the great quantities of oil made in France, they
have not enough for their own consumption, and therefore import
from other countries. This is an article, the consumption of which
will always keep pace with its production. Raise it, and it begets it
own demand. Little is carried to America, because Europe has it not
to spare. We, therefore, have not learned the use of it. But cover the
southern States with it, and every man will become a consumer of
oil, within whose reach it can be brought in point of price. If the
memory of those persons is held in great respect in South Carolina
who introduced there the culture of rice, a plant which sows life and
death with almost equal hand, what obligations would be due to him
who should introduce the olive tree, and set the example of its
culture! Were the owner of slaves to view it only as the means of
bettering their condition, how much would he better that by planting
one of those trees for every slave he possessed! Having been myself
an eye witness to the blessings which this tree sheds on the poor, I
never had my wishes so kindled for the introduction of any article of
new culture into our own country. South Carolina and Georgia
appear to me to be the States, wherein its success, in favorable
positions at least, could not be doubted, and I flattered myself it
would come within the views of the society for agriculture to begin
the experiments which are to prove its practicability. Carcassonne is
the place from which the plants may be most certainly and cheaply
obtained. They can be sent from thence by water to Bordeaux,
where they may be embarked on vessels bound for Charleston.
There is too little intercourse between Charleston and Marseilles to
propose this as the port of exportation. I offer my services to the
society for the obtaining and forwarding any number of plants which
may be desired.
Before I quit the subject of climates, and the plants adapted to
them, I will add, as a matter of curiosity, and of some utility too, that
my journey through the southern parts of France, and the territory
of Genoa, but still more the crossing of the Alps, enabled me to form
a scale of the tenderer plants, and to arrange them according to
their different powers of resisting cold. In passing the Alps at the Col
de Tende, we cross three very high mountains successively. In
ascending, we lose these plants, one after another, as we rise, and
find them again in the contrary order as we descend on the other
side; and this is repeated three times. Their order, proceeding from
the tenderest to the hardiest, is as follows: caper, orange, palm,
aloe, olive, pomegranate, walnut, fig, almond. But this must be
understood of the plant only; for as to the fruit, the order is
somewhat different. The caper, for example, is the tenderest plant,
yet, being so easily protected, it is among the most certain in its
fruit. The almond, the hardiest, loses its fruit the oftenest, on
account of its forwardness. The palm, hardier than the caper and
orange, never produces perfect fruit here.
I had the honor of sending you, the last year, some seeds of the
sulla of Malta, or Spanish St. Foin. Lest they should have miscarried,
I now pack with the rice a cannister of the same kind of seed, raised
by myself. By Colonel Franks, in the month of February last, I sent a
parcel of acorns of the cork oak, which I desired him to ask the favor
of the Delegates of South Carolina in Congress to forward to you.
I have the honor to be, with sentiments of the most perfect esteem
and respect, Sir, your most obedient, and most humble servant.
TO F. HOPKINSON, ESQ.
Paris, August 1, 1787.
Dear Sir,—A journey into the southern parts of France and northern
of Italy must apologize to you for the length of time elapsed since
my last, and for the delay of acknowledging the receipt of your
favors of November 8 and December 9, 1786, and April 14, 1787.
Your two phials of essence de l'Orient arrived during that interval,
and got separated from the letters which accompanied them, so that
I could not be sure which was your first preparation, and which was
your second. But I suppose, from some circumstances, that the
small phial was the first, and the larger one the second. This was
entirely spoiled, so that nothing was distinguishable from it. The
matter in the small phial was also too much spoiled for use; but the
pearl merchant, from whom I got my details, said he could judge,
from what remained, that it had been very good; that you had a
very considerable knowledge in the manner of preparing, but that
there was still one thing wanting which made the secret of the art;
that this is not only a secret of the art, but of every individual
workman who will not communicate to his fellows, believing his own
method the best; that of ten different workmen, all will practice
different operations, and only one of the ten be the right one; that
the secret consists only in preparing the fish, all the other parts of
the process in the pearl manufactory being known. That experience
has proved it to be absolutely impossible for the matter to cross the
sea without being spoiled; but that if you will send some in the best
state you can, he will make pearls of it, and send to you that you
may judge of them yourself. He says the only possible method of
making anything of it would be for a workman to go over. He would
not engage in this, nor would he buy, because he says it is their
custom to have contracts for nine years' supply from the fishermen,
and that his contract furnishes him with as much as he can sell in
the present declining state of the pearl trade; that they have been
long getting out of fashion, polite people not wearing them at all,
and the poor not able to give a price; that their calling is, in fact,
annihilating; that when he renews his contract he shall be obliged to
reduce the price he pays twenty-five per cent.; that the matter sells
from five to eight livres the French pound, but most generally at six
livres. He showed me a necklace of twelve strands, which used to
sell at ten livres, and now sells for two and a half. He observed that
the length of time the matter will keep depends on the strength of
the spirit of wine. The result is, then, that you must send me a
sample of your very best, and write what you would propose after
weighing these circumstances. The leg and feathers of the bird are
also arrived; but the comb, which you mention as annexed to the
foot, has totally disappeared. I suppose this is the effect of its
drying. I have not yet had an opportunity of giving it to Monsieur de
Buffon, but expect to do it soon. I thank you for the trouble you
have taken with Madame Champne's letters, and must give you
another, that of enquiring for James Lillie, belonging to the privateer
General Mercer, of Philadelphia, the property of Iroon, Carsons and
Semple. Richard Graham & Co., merchants of Philadelphia, seem to
have been also interested; and Isaac Robinson, Graham's son-in-law,
to have commanded her. For the details I refer you to the enclosed
paper I received from a Madame Ferrier, sister to James Lillie, from
which you will perceive he has not been heard of since 1779. I
receive many of these applications which humanity cannot refuse,
and I have no means of complying with them but by troubling
gentlemen on the spot. This, I hope, will be my apology. I am
obliged to you for subscribing to the Columbian Magazine for me. I
find it a good thing, and am sure it will be better from the time you
have undertaken it. I wish you had commenced before the month of
December, for then the abominable forgery inserted in my name in
the last page, would never have appeared. This, I suppose, the
compilers took from English papers, those infamous fountains of
falsehood. Is it not surprising that our newswriters continue to copy
from those papers, though every one who knows anything of them,
knows they are written by persons who never go out of their garret
nor read a paper? The real letter alluded to was never meant to
have been public, and therefore was hastily and carelessly dictated
while I was obliged to use the pen of another. It became public,
however. I send you a genuine copy to justify myself in your eyes
against the absurd thing they have fathered upon me in the
Magazine. Mr. Payne is here with his bridge, which is well thought of.
The Academy, to whom it is submitted, have not yet made their
report. I have shipped on board the Mary, Captain Howland, bound
from Havre to New York, a box containing the subsequent livraisons
of the Encyclopedie for yourself and Doctor Franklin from those
formerly sent you to the twenty-two inclusive. I think there are also
in it some new volumes of the Bibliotheque physico-economique for
you. I had received duplicates of some books (in sheets) for the
colleges of Philadelphia and Williamsburg. Whether I packed one
copy in your box, and one in Madison's, or both in his, I do not
remember. You will see and be so good as to deliver the one to the
College of Philadelphia, if in your box. The box is directed to Doctor
Franklin, and will be delivered to Mr. Madison at New York. I will
send you either by this occasion or the next, the cost, expenses, &c.,
&c. Present me in the most respectful and friendly terms to Dr.
Franklin and his grandson, to Mr. Rittenhouse and family, Mrs.
Hopkinson the elder and younger. My daughter (my elder one I
mean, for both are here now) presents her respects also to your
mother. I am, with sentiments of sincere affection, dear Sir, your
friend and servant.
TO R. IZARD, ESQ.
Paris, August 1, 1787.
Dear Sir,—I am to thank you for the laws and newspapers sent me
by the M. de Chateaufort. Your favor of April 4th, has also been duly
received. I am happy to find that the idea of diverting the rice trade
from England to France is thought to be impracticable. A journey
which I made from Marseilles lately, in Lombardy, in order to acquire
information relative to their rice, has corrected the misinformation
which the retailers of rice in this capital had given me. I am satisfied
that the rice of Lombardy is of a different species from yours. The
exportation of it in the husk being prohibited, I could not bring with
me but as much as my pockets would hold, which I have sent to
your society of agriculture. It may serve to raise seed from. I have
taken measures for a couple of sacks, but I do not make sure of
them, nor rely so much on their quality as on the parcel I brought
myself. I have written so fully on this subject to Mr. Drayton, that,
without repeating it here, I will take the liberty of referring you to
that letter. I have endeavored to prevail upon the merchants in this
country to engage in the rice trade. I enclose you the proposals of
Messrs. Berard & Co., for that effect. They are a very solid house.
One of them resides here. Their principal establishment is at
L'Orient, where they would prefer receiving consignments of rice;
but they will receive them anywhere else, and should suppose
Honfleur the best port, and next to that Bordeaux. You observe they
will answer bills to the amount of twelve or fifteen livres the French
quintal, if accompanying the bill of lading, and will pay the surplus of
the proceeds as soon as received. If they sell at Havre or Rouen,
they may receive ready money, and of course pay the balance soon;
if they sell at Paris, it must be on a year's credit (because this will be
to the retailers). The money, therefore, will be received later, but it
will be at least six livres the quintal more; a difference well worth
waiting for. I know of no mercantile house in France of surer bottom.
Affairs in Europe seem to threaten war. Yet I think all may be settled
without it. The Emperor disapproves of the concessions made to the
Netherlands by their governors, but called for deputies to consult on
the matter. They have sent deputies without power to yield a jot,
and go on arming. From the character of their Sovereign, it is
probable he will avail himself of this deputation to concede their
demands. The affairs of Holland are so thoroughly embroiled, that
they would certainly produce a war if France and England were in a
condition for it. But they are not, and they will therefore find out
some arrangement either perpetual or temporary to stop the
progress of the civil war begun in that country. A spirit of distrust in
the government here, and confidence in their own force and rights,
is pervading all ranks. It will be well if it awaits the good which will
be worked by the provincial assemblies, and will content itself with
that. The parliament demand an assembly of the States; they are
supported by the ministers of the nation, and the object of asking
that assembly is to fix a constitution, and to limit expenses. They
refuse to register any edict for a new tax. This has so far lessened
the credit of government, that the purse of the money lender is
shut. They speak here as freely as Junius wrote. Yet it is possible
that in the event of war, the spirit of the nation would rise to support
a cause which is approved—I mean that of Holland.
I have had the Messrs. Le Coulteux sounded on the subject of
lending money. I had before tried the same thing with others. But
nothing is to be obtained for persons on our side the water. They
have no confidence in our laws. Besides, all the money men are
playing deeply in the stocks of the country. The spirit of "agiotage"
(as they call it) was never so high in any country before. It will
probably produce as total deprivation of morals as the system of law
did. All the money of France is now employed in this, none being
free even for the purposes of commerce, which suffers immensely
from this cause.
Before I conclude, I must add, on the subject of rice, that, what
cannot arrive here a month before the careme, would miss its sale,
and must therefore go to another market. The merchant, however,
to whom it is consigned, will be competent to this measure
whenever he finds it a necessary one. I beg leave to be presented
very respectfully to Mrs. Izard and your family, and to assure you of
the sincere sentiments of esteem and attachment with which I am,
dear Sir, your friend and servant.
TO JAMES MADISON.
Paris, August 2, 1787.
Dear Sir,—My last was of June the 20th. Yours, received since that
date, are of May the 15th, and June the 6th. In mine I
acknowledged the receipt of the paccan nuts which came sealed up.
I have reason to believe those in the box have arrived at L'Orient. By
the Mary, Captain Howland, lately sailed from Havre to New York, I
shipped three boxes of books, one marked J. M. for yourself, one
marked B. F. for Dr. Franklin, and one marked W. H. for William Hay
in Richmond. I have taken the liberty of addressing them all to you,
as you will see by the enclosed bill of lading, in hopes you would be
so good as to forward the other two. You will have opportunities of
calling on the gentlemen for the freight, &c. In yours you will find
the books noted in the account, inclosed herewith. You have now
Mabby's works complete, except that on Poland, which I have never
been able to get, but shall not cease to search for. Some other
volumes are wanting too, to complete your collection of
Chronologies. The fourth volume of D'Albon was lost by the
bookbinder, and I have not yet been able to get one to replace it. I
shall continue to try. The Memoires sur les droits et impositions en
Europe, (cited by Smith,) was a scarce and excessively dear book.
They are now reprinting it. I think it will be in three or four quartos,
of from nine to twelve livres a volume. When it is finished, I shall
take a copy for you. Amelot's travels into China, I can learn nothing
of. I put among the books sent you two somewhat voluminous, and
the object of which will need explanation; these are the Tableau de
Paris and L'espion Anglois. The former is truly a picture of private
manners in Paris, but presented on the dark side, and a little
darkened moreover. But there is so much truth in its ground-work,
that it will be well worth your reading. You will then know Paris (and
probably the other large cities of Europe) as well as if you had been
there for years. L'espion Anglois is no caricature. It will give you a
just idea of the wheels by which the machine of government is
worked here. There are in it also many interesting details of the last
war, which, in general, may be relied on. It may be considered as
the small history of great events. I am in hopes, when you shall
have read them, you will not think I have misspent your money for
them. My method for making out this assortment was, to revise the
list of my own purchases since the invoice of 1785, and to select
such as I had found worth your having. Besides this, I have casually
met with and purchased some few curious and cheap things.
I must trouble you on behalf of a Mr. Thomas Burke, at Loughburke,
near Loughrea, in Ireland, whose brother, James Burke, is supposed
to have died in 1785, on his passage from Jamaica, or St. Eustatius
to New York. His property on board the vessel is understood to have
come to the hands of alderman Groom at New York. The enclosed
copy of a letter to him, will more fully explain it. A particular friend
of mine here applies to me for information, which I must ask the
favor of you to procure, and forward to me.
Writing news to others, much pressed in time, and making this letter
one of private business, I did not intend to have said anything to you
on political subjects. But I must press one subject. Mr. Adams
informs me he has borrowed money in Holland, which, if confirmed
by Congress, will enable them to pay, not only the interest due here
to the foreign officers, but the principal. Let me beseech you to
reflect on the expediency of transferring this debt to Holland. All our
other debts in Europe do not injure our reputation so much as this.
These gentlemen have connections both in and out of office, and
these again their connections, so that our default on this article is
further known, more blamed, and excites worst dispositions against
us, than you can conceive. If you think as I do, pray try to procure
an order for paying off their capital. Mr. Adams adds, that if any
certain tax is provided for the payment of interest, Congress may
borrow enough in Holland to pay off their whole debts in France,
both public and private, to the crown, to the Farmers, and to
Beaumarchais. Surely it will be better to transfer these debts to
Holland. So critical is the state of that country, that I imagine the
moneyed men of it would be glad to place their money in foreign
countries, and that Mr. Adams could borrow there for us, without a
certain tax for the interest, and saving our faith too, by previous
explanations on that subject. This country is really supposed on the
eve of a * * * * Such a spirit has risen within a few weeks, as could
not have been believed. They see the great deficit in their revenues,
and the hopes of economy lessen daily. The parliament refuse to
register any act for a new tax, and require an Assembly of the
States. The object of this Assembly is evidently to give law to the
King, to fix a constitution, to limit expenses. These views are said to
gain upon the nation.[E]
* * * * * * * * *
A final decision of some sort should be made on Beaumarchais'
affairs.
I am, with sentiments of the most perfect esteem, dear Sir, your
friend and servant.
TO THOMAS BARCLAY.
Paris, August 3, 1787.
Dear Sir,—I am now to acknowledge the receipt of your several
favors of June the 29th, and July the 6th and 8th.
I am of opinion that the affair of Geraud and Roland in Holland had
better be committed to Mr. Dumas in Holland, as lawsuits must be
always attended to by some person on the spot. For the same
reason, I think that of La Vayse and Puchilberg should be managed
by the agent at L'Orient, and Gruel's by the agent at Nantes. I shall
always be ready to assist the agents of L'Orient and Nantes in any
way in my power; but were the details to be left to me, they would
languish necessarily, on account of my distance from the place, and
perhaps suffer too, for want of verbal consultations with the lawyers
entrusted with them. You are now with Congress, and can take their
orders on the subject. I shall, therefore, do nothing in these matters,
in reliance that you will put them into such channel as they direct,
furnishing the necessary documents and explanations.
* * * * * * * * *
With respect to the French affair, being perfectly satisfied myself, I
have not ceased, nor shall I cease, endeavoring to satisfy others,
that your conduct has been that of an honest and honorable debtor,
and theirs the counterpart of Shylock in the play. I enclose you a
letter containing my testimony on your general conduct, which I
have written to relieve a debt of justice pressing on my mind, well
knowing, at the same time, you will not stand in need of it in
America. Your conduct is too well known to Congress, your character
to all the world, to need any testimonials.
The moment I close my despatches for the packet, which will be the
9th instant, I shall, with great pleasure, go to pay my respects to
Mrs. Barclay at St. Germains, to satisfy her on the subject of your
transactions, and to assure her that my resources shall be hers, as
long as I have any. A multitude of letters to write, prevents my
entering into the field of public news, further than to observe, that it
is extremely doubtful whether the affairs of Holland will, or will not
produce a war between France, on one side, and England and
Prussia, on the other.
I beg you to accept assurances of the sincere esteem and respect
with which I have the honor to be, dear Sir, your friend and servant.
TO MR. BARCLAY.
Paris, August 3, 1787.
Dear Sir,—As you have acted since my arrival in France, in the
characters of Consul-General for that country, and Minister to the
Court of Morocco, and also as agent in some particular transactions
for the State of Virginia, I think it is a duty to yourself, to truth, and
to justice, on your departure for America, to declare that, in all these
characters, as far as has come within my notice, you have acted with
judgment, with attention, with integrity and honor. I beg you to
accept this feeble tribute to truth, and assurances of sincere
attachment and friendship from, dear Sir, your most obedient, and
most humble servant.
TO HIS EXCELLENCY EDWARD RANDOLPH.
Paris, August 3, 1787.
Dear Sir,—A journey into the southern parts of France, and northern
of Italy, has prevented my sooner acknowledging the receipt of your
private favors of July 12th, 1786, and January 28 and May 3, 1787. I
am anxious to hear what you have done in your federal convention.
I am in hopes at least you will persuade the States to commit their
commercial arrangements to Congress, and to enable them to pay
their debts, interest and capital. The coercive powers supposed to be
wanting in the federal head, I am of opinion they possess by the law
of nature, which authorizes one party to an agreement to compel
the other to performance. A delinquent State makes itself a party
against the rest of the confederacy.
We have at present two fires kindled in Europe; 1, in Brabant. The
Emperor, the moment of his return to Vienna, disavowed the
concessions which had been made by his governors to quiet the
Brabantines. They prepared, therefore, for regular resistance. But as
the emperor had, at the same time, called for deputies to be sent to
Vienna to consult on their affairs, they have sent them, but without
power to conclude anything, and in the meantime they go on
arming. The enterprising, unpersevering, capricious, Thrasonic
character of their Sovereign renders it probable he will avail himself
of this little condescendence in the Brabantines to recede from all his
innovations. 2. The Dutch are every now and then cutting one
another's throats. The party of the Stadtholder is strongest within
the confederacy, and is gaining ground. He has a majority in the
States General, and a strong party in the States of Holland. His want
of money is supplied by his cousin George. England and Prussia abet
his usurpations, and France the patriotic party. Were England and
France in a condition to go to war, there is no question but they
would have been at it before now. But their insuperable poverty
renders it probable they will compel a suspension of hostilities, and
either arrange and force a settlement on the Dutch, or if they cannot
agree themselves on this, they will try to protract things by
negotiation. Can I be useful to you here in anything in the purchase
of books, of wines, of fruits, of modes for Mrs. Randolph, or
anything else? As to books, they are cheaper here than in England,
excepting those in Latin, Greek, or English. As to wines, I have the
best Vignerons of Bordeaux, Burgundy and Frontignan. Genuine
wines can never be had but of the Vigneron. The best of Bordeaux
cost three livres the bottle, but good may be bought for two.
Command me freely, assured that I shall serve you cheerfully, and
that I am with respects to Mrs. Randolph and attachment to yourself,
dear Sir, your most obedient, and most humble servant.
TO HIS EXCELLENCY THE GOVERNOR OF VIRGINIA.
Paris, August 3, 1787.
Sir,—I am to acknowledge the receipt of your Excellency's letters of
January 28th, and May 4th, which have come to hand since the date
of mine of February 7th. Immediately on the receipt of the former I
caused enquiry to be made relative to the bayonets, and found that
they had certainly been packed with the muskets. Your Excellency's
favor of May 4th renders unnecessary the sending the proofs. There
have been shipped in the whole from Bordeaux 3,400 stand of arms,
and from Havre 3,406 cartouch boxes, which I hope have come
safely to hand. Besides these there has been a shipment from
Bordeaux of powder, &c., made by Mr. Barclay. This was but the half
of what was intended, and of what Mr. Barclay had contracted for.
But his bill on Mr. Grand was protested on a misconception of Mr.
Grand's, who, by a mixture of your account with that of the United
States, had supposed he had but about 12,000 livres of your money
in his hands. I was absent on a journey, and happened in the course
of that to meet with Mr. Barclay at Bordeaux, and we concluded to
send you half the quantity. Since my return, I have not been able to
have your account exactly settled so as to render it now; but am
able to say in general and with certainty, that everything sent you
has been paid, and that after paying Houdon 3,000 livres for the
second bust of the Marquis de La Fayette now nearly ready to be
sent off for you, and 10,000 livres the second payment due towards
General Washington's statue, there will remain enough in Mr. Grand's
hands to pay for a quantity of powder, &c., equal to that sent you by
Mr. Barclay from Bordeaux, which shall accordingly be done. This
balance on hand includes 5,300 livres paid by Mr. Littlepage, which,
though he has sent us a bill for, six or eight months ago, we had
refused to receive till the arrival of your Excellency's letter informing
me it had not been paid in America; it was therefore applied for and
received by Mr. Grand a few days ago. Mr. Barclay drew on me for
the balance of his account with the State of Virginia, 2,370 livres,
which I paid; besides these he afterwards discovered an omission of
108l. 8s. in his account, which I pay also, so as to leave your
account with him balanced. There is, however, the articles of
expenses for young Mercier, which he has neither entered in your
account, nor charged to me in my private account. It yet remains
due to him, therefore, and I shall pay it to him if he applies to me. I
should have called for it, but that he was gone to America before I
discovered the omission. Should the State have further occasion for
arms, your Excellency will be able to judge, combining quality and
price, whether those of Liege or of France are to be preferred. I shall
with cheerfulness obey your future orders on this or any other
account, and have the honor to be, with sentiments of the most
perfect esteem and respect, your Excellency's most obedient, and
most humble servant.
P. S. The original of the report on the inauguration of the bust of the
Marquis de La Fayette accompanies this.
TO WILLIAM HAY.
Paris, August 4, 1787.
Sir,—I am now to acknowledge the receipt of your two favors of
April 26, and May 3. I have forwarded, by a vessel lately sailed from
Havre to New York, a box marked W. H., containing the livraisons of
the Encyclopedie subsequent to those Dr. Currie has delivered you,
to the 22d inclusive. They are sent to the care of Mr. Madison at
Congress, who will forward the box to you. There is in it, also, the
same livraisons to Colonel Monroe. I will continue to forward them
once or twice a year, as they come out. I have stated in a letter to
Dr. Currie the cost and expenses of the first twenty-two livraisons, to
enable yourself and himself to settle. The future shall be charged to
you or him, as your agreement shall be. It is really a most valuable
work, and almost supplies the place of a library.
I receive from too many quarters the account of the distresses of my
countrymen to doubt their truth—distresses brought on themselves
by a feebleness of mind which calculates very illy its own happiness.
It is a miserable arithmetic which makes any single privation
whatever so painful as a total privation of everything which must
necessarily follow the living so far beyond our income. What is to
extricate us I know not, whether law, or loss of credit. If the sources
of the former are corrupted, so as to prevent justice, the latter must
supply its place, leave us possessed of our infamous gains, but
prevent all future ones of the same character.
Europe is in a moment of crisis. The innovations by their sovereign in
the Austrian Netherlands have produced in the people a
determination to resist. The Emperor, by disavowing the concessions
made by his governors to quiet the people, seemed to take up the
gauntlet which they had thrown. Yet it is rather probable he will
recede, and all be hushed up there. The Dutch parties are in a
course of hostilities which it will be difficult to suspend. A war would
have been begun before this, between this country on one side, and
England and Prussia on the other, had the parties been in a
condition for war. Perhaps England might have raised supplies, but it
would be on a certainty of being crushed under them. This country
would find greater difficulty. There is, however, a difference in her
favor which might reduce her on a level with England: that is, that it
would be a popular war here, and an unpopular one in England.
Probably the weakness of the two countries will induce them to join
in compelling a suspension of hostilities, and to make an
arrangement for them, or if they cannot agree in that, they will spin
the matter into length by negotiation. In fact, though both parties
are arming, I do not expect any speedy commencement of
hostilities. I am, with very great respect and esteem, Sir, your most
obedient, and most humble servant.
TO DR. RAMSAY.
Paris, August 4, 1787.
Dear Sir,—I have to acknowledge the receipt of your favors of
November 8 and April 7, and the pleasure to inform you that the
translation of your book sells well, and is universally approved.
Froulle will send you some copies of it, by the first opportunity. I am
happy to hear you are occupied on the general history. It is a subject
worthy your pen. I observe Stockdale in London has printed your
work and advertised it for sale. Since I wrote to you on the subject
of rice, I have had an opportunity of examining the rice-fields of
Lombardy, and having committed my observations to writing, in a
letter to Mr. Drayton, as President of the Agricultural Society, I will
take the liberty of referring you to that letter, in which probably there
is little new to your countrymen, though all was new to me.
However, if there be a little new and useful, it will be my reward. I
have been pressing on the merchants here the expediency of
enticing the rice-trade to Bordeaux and Honfleur. At length, I have
received the enclosed propositions. They are a firm and very solid
house. I wish they may produce the effect desired. I have enclosed
a copy to Mr. Izard, but forgot to mention to him, on the subject of
white plains and hoes (particularly named in his letter to me), that
this house will begin by furnishing them from England, which they
think they can do as cheap as you can receive them directly from
England. The allowance made to wholesale purchasers will
countervail the double voyage. They hope that after a while they can
have them imitated here. Will you be so good as to mention this to
Mr. Izard? I fear that my zeal will make me expose myself to ridicule
in this business, for I am no merchant, and still less knowing in the
culture of rice. But this risk becomes a duty by the bare possibility of
doing good. You mention in your letter, your instalment law as
needing apology. I have never heard the payment by instalment
complained of in Europe. On the contrary, in the conferences Mr.
Adams and myself had with merchants in London, they admitted the
necessity of them. It is only necessary that the terms be faithfully
observed, and the payments be in real money. I am sensible that
there are defects in our federal government, yet they are so much
lighter than those of monarchies, that I view them with much
indulgence. I rely, too, on the good sense of the people for remedy,
whereas the evils of monarchical government are beyond remedy. If
any of our countrymen wish for a King, give them Æsop's fable of
the frogs who asked a King; if this does not cure them, send them to
Europe. They will go back good republicans. Whether we shall have
war or not, is still doubtful. I conclude we shall not, from the inability
of both France and England to undertake a war. But our friend
George is rather remarkable for doing exactly what he ought not to
do. He may, therefore, force on a war in favor of his cousin of
Holland. I am, with very great esteem, Sir, your most obedient
humble servant.
TO E. CARRINGTON.
Paris, August 4, 1787.
Dear Sir,—Since mine of the 16th of January, I have been honored
by your favors of April the 24th and June the 9th. I am happy to find
that the States have come so generally into the schemes of the
federal convention, from which, I am sure, we shall see wise
propositions. I confess, I do not go as far in the reforms thought
necessary, as some of my correspondents in America; but if the
convention should adopt such propositions, I shall suppose them
necessary. My general plan would be, to make the States one as to
everything connected with foreign nations, and several as to
everything purely domestic. But with all the imperfections of our
present government, it is without comparison the best existing, or
that ever did exist. Its greatest defect is the imperfect manner in
which matters of commerce have been provided for. It has been so
often said, as to be generally believed, that Congress have no power
by the Confederation to enforce anything; for example, contributions
of money. It was not necessary to give them that power expressly;
they have it by the law of nature. When two parties make a
compact, there results to each a power of compelling the other to
execute it. Compulsion was never so easy as in our case, where a
single frigate would soon levy on the commerce of any State the
deficiency of its contributions; nor more safe than in the hands of
Congress, which has always shown that it would wait, as it ought to
do, to the last extremities, before it would execute any of its powers
which are disagreeable. I think it very material, to separate, in the
hands of Congress, the executive and legislative powers, as the
judiciary already are, in some degree. This, I hope, will be done. The
want of it has been the source of more evil than we have
experienced from any other cause. Nothing is so embarrassing nor
so mischievous, in a great assembly, as the details of execution. The
smallest trifle of that kind occupies as long as the most important
act of legislation, and takes place of everything else. Let any man
recollect, or look over, the files of Congress; he will observe the most
important propositions hanging over, from week to week, and month
to month, till the occasions have passed them, and the things never
done. I have ever viewed the executive details as the greatest cause
of evil to us, because they in fact place us as if we had no federal
head, by diverting the attention of that head from great to small
objects; and should this division of power not be recommended by
the convention, it is my opinion Congress should make it itself, by
establishing an executive committee.
* * * * * * * * *
I have the honor to be, with sincere esteem and respect, dear Sir,
your most obedient, most humble servant.
TO DR. CURRIE.
Paris, August 4, 1787.
Dear Sir,—I am favored with your letter of May the 2d, and most
cordially sympathise in your late immediate losses. It is a situation in
which a man needs the aid of all his wisdom and philosophy. But as
it is better to turn from the contemplation of our misfortunes to the
resources we possess of extricating ourselves, you will, of course,
have found solace in your vigor of mind, health of body, talents,
habits of business, in the consideration that you have time yet to
retrieve everything, and a knowledge that the very activity necessary
for this, is a state of greater happiness than the unoccupied one, to
which you had a thought of retiring. I wish the bulk of my
extravagant countrymen had as good prospects and resources as
you. But with many of them, a feebleness of mind makes them
afraid to probe the true state of their affairs, and procrastinate the
reformation which alone can save something, to those who may yet
be saved. How happy a people were we during the war, from the
single circumstance that we could not run in debt! This counteracted
all the inconveniences we felt, as the present facility of ruining
ourselves overweighs all the blessings of peace. I know no condition
happier than that of a Virginia farmer might be, conducting himself
as he did during the war. His estate supplies a good table, clothes
himself and his family with their ordinary apparel, furnishes a small
surplus to buy salt, sugar, coffee, and a little finery for his wife and
daughters, enables him to receive and to visit his friends, and
furnishes him pleasing and healthy occupation. To secure all this, he
needs but one act of self-denial, to put off buying anything till he
has the money to pay for it. Mr. Ammonett did not come. He wrote
to me, however, and I am making inquiry for the town and family he
indicated. As yet, neither can be heard of, and were they to be
found, the length of time would probably bar all claims against
them. I have seen no object present so many desperate faces.
However, if inquiry can lighten our way, that shall not be wanting,
and I will write to him as soon as we discover anything, or despair of
discovering. Littlepage has succeeded well in Poland. He has some
office, it is said, worth five hundred guineas a year. The box of seeds
you were so kind as to forward me came safe to hand. The arrival of
my daughter, in good health, has been a source of immense comfort
to me. The injury of which you had heard, was a dislocated wrist,
and though it happened eleven months ago, was a simple
dislocation, and immediately aided by the best surgeon in Paris, it is
neither well, nor ever will be, so as to render me much service. The
fingers remain swelled and crooked, the hand withered, and the
joint having a very confined motion. You ask me when I shall return?
My commission expires next spring, and if not renewed, I shall
return then. If renewed, I shall stay somewhat longer; how much,
will not depend on me altogether. So far as it does, I cannot fix the
epoch of my return, though I always flatter myself it is not very
distant. My habits are formed to those of my own country. I am past
the time of changing them, and am, therefore, less happy anywhere
else than there.
I shall always be happy to hear from you, being with very sincere
esteem, dear Sir, your friend and servant.
TO MR. HAWKINS.
Paris, August 4, 1787.
Dear Sir,—I have to acknowledge the receipt of your favors of March
the 8th and June the 9th, and to give you many thanks for the
trouble you have taken with the dionæa muscipula. I have not yet
heard anything of them, which makes me fear they have perished by
the way. I believe the most effectual means of conveying them
hither, will be by the seed. I must add my thanks, too, for the
vocabularies. This is an object I mean to pursue, as I am persuaded
that the only method of investigating the filiation of the Indian
nations is by that of their languages.
I look up with you to the federal convention for an amendment of
our federal affairs. Yet I do not view them in so disadvantageous a
light at present, as some do. And above all things, I am astonished
at some people's considering a kingly government as a refuge.
Advise such to read the fable of the frogs who solicited Jupiter for a
king. If that does not put them to rights, send them to Europe, to
see something of the trappings of monarchy, and I will undertake
that every man shall go back thoroughly cured. If all the evils which
can arise among us, from the republican form of government, from
this day to the day of judgment, could be put into a scale against
what this country suffers from its monarchical form in a week, or
England in a month, the latter would preponderate. Consider the
contents of the Red book in England, or the Almanac royale of
France, and say what a people gain by monarchy. No race of kings
has ever presented above one man of common sense in twenty
generations. The best they can do is, to leave things to their
ministers; and what are their ministers, but a committee, badly
chosen? If the king ever meddles, it is to do harm. Adieu, my dear
Sir, and be assured of the esteem of your friend and servant.
TO COLONEL MONROE.
Paris, August 5, 1787.
Dear Sir,—A journey of between three and four months, into the
southern parts of France and northern of Italy, has prevented my
writing to you. In the meantime, you have changed your ground,
and engaged in different occupations, so that I know not whether
the news of this side the water will even amuse you. However, it is
all I have for you. The storm which seemed to be raised suddenly in
Brabant, will probably blow over. The Emperor, on his return to
Vienna, pretended to revoke all the concessions which had been
made by his Governors General, to his Brabantine subjects; but he,
at the same time, called for deputies from among them to consult
with. He will use their agency to draw himself out of the scrape, and
all there, I think, will be quieted. Hostilities go on occasionally in
Holland. France espouses the cause of the Patriots, as you know,
and England and Prussia that of the Stadtholder. France and England
are both unwilling to bring on a war, but a hasty move of the King of
Prussia will perplex them. He has thought the stopping his sister
sufficient cause for sacrificing a hundred or two thousand of his
subjects, and as many Hollanders and French. He has therefore
ordered twenty thousand men to march, without consulting England,
or even his own ministers. He may thus drag England into a war, and
of course this country, against their will. But it is certain they will do
everything they can to prevent it; and that in this at least they
agree. Though such a war might be gainful to us, yet it is much to
be deprecated by us at this time. In all probability, France would be
unequal to such a war by sea and by land, and it is not our interest,
or even safe for us, that she should be weakened. The great
improvements in their constitution, effected by the Assemblée des
Notables, you are apprized of. That of partitioning the country into a
number of subordinate governments, under the administration of
Provincial Assemblies, chosen by the people, is a capital one. But to
the delirium of joy which these improvements gave the nation, a
strange reverse of temper has suddenly succeeded. The deficiencies
of their revenue were exposed, and they were frightful. Yet there
was an appearance of intention to economise, and reduce the
expenses of government. But expenses are still very inconsiderately
incurred, and all reformation in that point despaired of. The public
credit is affected; and such a spirit of discontent has arisen, as has
never been seen. The parliament refused to register the edict for a
stamp tax, or any other tax, and call for the States General, who
alone, they say, can impose a new tax. They speak with a boldness
unexampled. The King has called them to Versailles to-morrow,
where he will hold a lit de justice, and compel them to register the
tax. How the chapter will finish, we must wait to see. By a vessel
lately sailed from Havre to New York, I have sent you some more
livraisons of the Encyclopedie, down to the 22d inclusive. They were
in a box with Dr. Currie's, and addressed to Mr. Madison, who will
forward them to Richmond. I have heard you are in the Assembly. I
will beg the favor of you, therefore, to give me, at the close of the
session, a history of the most remarkable acts passed, the parties
and views of the House, &c. This, with the small news of my
country, crops and prices, will furnish you abundant matter to treat
me, while I have nothing to give you in return, but the history of the
follies of nations in their dotage. Present me in respectful and
friendly terms to Mrs. Monroe, and be assured of the sincere
sentiments of esteem and attachment with which I am, dear Sir,
your friend and servant.
TO THE HONORABLE COMMISSIONERS OF THE TREASURY.
Paris, August 5, 1787.
Gentlemen,—In my last of June 17, 1787, I had the honor of
communicating to you the information I had received from Mr.
Grand, that your funds here were out, and he considerably in
advance. I took occasion to mention to him the paragraph in your
letter of February 17, wherein you were so kind as to say your
attention should be immediately turned to the making a remittance.
However, I understood soon after that he had protested a draught of
Mr. Carmichael's, as also a smaller one of five hundred livres. He
called upon me, and explaining to me the extent of his advances,
observed that he should not be willing to add to them, except so far
as should be necessary for the private expenses of myself and
secretary, which he wished to be reduced as much below the
ordinary allowance as we could, until remittances should be
received. He will send you by this packet a state of his accounts, by
which he informs me that your account is in arrear about thirty-two
thousand livres, advanced by him, and about fifteen thousand livres
from a fund of the State of Virginia, placed here for the purchase of
arms, making General Washington's statue, &c. In examining his
accounts, I found by the one he had sent you formerly, that you
were debited two articles of ten thousand livres and two thousand
seven hundred and twenty-four livres and sixty-six sous, which
belonged to the account of the State of Virginia. This I must explain
to you. That State had directed me to have the statue of General
Washington made, and given me assurances such as I could rely on,
that I should receive funds immediately. Doctor Franklin was setting
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Preface to Marketing Management 14th Edition Peter Solutions Manual

  • 1. Preface to Marketing Management 14th Edition Peter Solutions Manual download https://testbankdeal.com/product/preface-to-marketing- management-14th-edition-peter-solutions-manual/ Visit testbankdeal.com today to download the complete set of test bank or solution manual
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  • 5. Chapter 07 - New Product Planning and Development 7-1 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 7 New Product Planning and Development High-Level Chapter Outline I. New Product Strategy II. New Product Planning and Development Process A. Idea Generation B. Idea Screening C. Project Planning D. Product Development E. Test Marketing F. Commercialization G. The Importance of Time III. Some Important New Product Decisions A. Quality Level B. Product Features C. Product Design D. Product Safety IV. Causes of New Product Failure A. Need for Research Detailed Chapter Outline I. New Product Strategy • Authors C. Merle Crawford and Anthony DiBenedetto have developed a useful definition of new products based on the following categories. o New-to-the-world-products—products that are inventions and create a whole new market. o New-to-the-firm products—products that take the firm into a category new to it but not to the world. o Additions to existing product lines—these are products that extend existing product lines to current markets such as Bud Light, Apple’s iMac and Tide’s liquid detergent. o Improvements and revisions of existing products—these are current products that are
  • 6. Chapter 07 - New Product Planning and Development 7-2 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. made better. Virtually every product on the market has been improved, often many times. o Repositionings—products that are retargeted for a new use or application. o Cost reductions—these are new products that simply replace existing products in a line, providing the customer similar performance but at a lower cost. • The best strategy is the one that will maximize company goals. • A second approach to the new product question is the one developed by H. Igor Ansoff in the form of growth vectors (Figure 7.1). • Market penetration denotes a growth direction through the increase in market share for present product markets. • Product development refers to creating new products to replace existing ones. • Market development refers to finding new customers for existing products. • Diversification refers to developing new products and cultivating new markets. • Market penetration and market development strategies use present products. A goal of these types of strategies is to either increase frequency of consumption or increase the number of customers using the firm’s product. • Product development and diversification can be characterized as product mix strategies. • Policy-making criteria on new products should specify: o A working definition of the profit concept acceptable to top management o A minimum level or floor of profits o The availability and cost of capital to develop a new product o A specified time period in which the new product must recoup its operating costs and begin contributing to profits • It is critical that firms do not become solely preoccupied with a short-term focus on earnings associated with new products. II. New Product Planning and Development Process • Ideally, products that generate a maximum dollar profit with a minimum amount of risk should be developed and marketed. • Refer figure 7.2 for the new product development process. A. Idea Generation • Every product starts as an idea. Some estimates indicate that as many as 60 or 70 ideas are necessary to yield one successful product. • The problem at this stage is to ensure that all new product ideas available to the company at least have a chance to be heard and evaluated. • Since idea generation is the least costly stage in the new product development process,
  • 7. Chapter 07 - New Product Planning and Development 7-3 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. it makes sense that the emphasis be placed first on recognizing available sources of new product ideas and then on funneling theses ideas to appropriate decision makers for screening. • Top-management support is critical to providing an atmosphere that stimulates new product activity. • Both technology push and market pull research activities play an important role in new product ideas and development. • By taking a broad view of customer needs and wants, basic and applied research (technology push) can lead to ideas that will yield high profits to the firm. • Marketing, on the other hand, is more responsible for gathering and disseminating information gained from customers and other contacts. B. Idea Screening • The primary function of the idea screening process is twofold: o To eliminate ideas for new products that could not be profitably marketed by the firm o To expand viable ideas into full product concepts • The organization has to consider three categories of risk (and its associated risk tolerance) in the idea screening phase prior to reaching a decision: o Strategic risk: It involves the risk of not matching the role or purpose of a new product with a specific strategic need or issue of the organization. o Market risk: It is the risk that a new product will not meet a market need in a value-added, differentiated way. o Internal risk: It is the risk that a new product will not be developed within the desired time and budget. • In evaluating these risks, firms should not act too hastily in discounting new product ideas solely because of a lack of resources or expertise. • Instead, firms should consider forming joint or strategic alliances with other firms. • A strategic alliance is a long-term partnership between two organizations designed to accomplish the strategic goals of both parties. • Potential benefits to be gained from alliances include: o Increased access to technology, funding, and information o Market expansion and greater penetration of current markets o De-escalated competitive rivalries C. Project Planning • This stage involves several steps.
  • 8. Chapter 07 - New Product Planning and Development 7-4 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. • Various alternatives exist for creating and managing the project teams. • Two of the better-known methods are the establishment of a skunkworks, whereby a project team can work in relative privacy away from the rest of the organization, and a rugby or relay approach, whereby groups in different areas of the company are simultaneously working on the project. • The common tie that binds these and other successful approaches together is the degree of interaction that develops among the marketing, engineering, production, and other critical staff. • A key component contributing to the success of many companies’ product development efforts relates to the emphasis placed on creating cross-functional teams early in the development process. (Marketing Insight 7-6 explains why cross- functional product development teams can work.) D. Product Development • At this juncture, the product idea has been evaluated from the standpoint of engineering, manufacturing, finance, and marketing. • If it has met all expectations, it is considered a candidate for further research and testing. • In the laboratory, the product is converted into a finished good and tested. • A development report to management is prepared that spells out in fine detail: o Results of the studies by the engineering department o Required plan design o Production facilities design o Tooling requirements o Marketing test plan o Financial program survey o Estimated release date E. Test Marketing • Test-market programs are conducted in line with the general plans for launching the product. • Test marketing is a controlled experiment in a limited geographical area to test the new product or in some cases certain aspects of the marketing strategy, such as packaging or advertising. • The main goal of a test market is to evaluate and adjust, as necessary, the general marketing strategy to be used and the appropriate marketing mix. • Throughout the test market process, findings are being analyzed and forecasts of
  • 9. Chapter 07 - New Product Planning and Development 7-5 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. volume developed. • In summary, a well-done test market procedure can reduce the risks that include not only lost marketing and sales dollars but also capital—the expense of installing production lines or building a new factory. • Upon completion of a successful test market phase, the marketing plan can be finalized and the product prepared for launch. F. Commercialization • This is the launching step in which the firm commits to introducing the product into the marketplace. • During this stage, heavy emphasis is placed on the organization structure and management talent needed to implement the marketing strategy. • Procedures and responsibility for evaluating the success of the new product by comparison with projections are also finalized. G. The Importance of Time • Time to market can be defined as the elapsed time between product definition and product availability. • Successful time-based innovations can be attributed to the use of short production runs. • Several U.S. companies, including Procter & Gamble, have taken steps to speed up the new product development cycle by giving managers, at the product class and brand family level, more decision-making powers. III. Some Important New Product Decisions • In the development of new products, marketers have several important decisions to make about the characteristics of the product itself. • These include quality level, product features, product design, and product safety levels. A. Quality Level • Both consumers and organizational buyers consider the level of product quality when making purchase decisions for both new and existing products. • In designing new products, marketers must consider what criteria potential customers use to determine their perceptions of quality. • An important indicator of a number of the criteria listed in Figure 7.3 is the presence
  • 10. Chapter 07 - New Product Planning and Development 7-6 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. and extent of a new product warranty. • A warranty is the producer’s statement of what it will do to compensate the buyer if the product is defective or does not work properly. • A guarantee is an assurance that the product is as represented and will perform properly. • Figure 7.3 presents some criteria for determining perceptions of quality. B. Product Features • A product feature is a fact or particular specification about a product. • Marketers may identify a need for new features that target markets have not yet thought of and may not even understand. C. Product Design • Designing new products with both ease of use and aesthetic appeal can be difficult, but it can clearly differentiate a new product from competitors. • Good design can add great value to a new product. D. Product Safety • New products must have a reasonable level of safety. • Safety is both an ethical and a practical issue. • Ethically, customers should not be harmed by using a product as intended. • Some products are inherently dangerous and can result in injury to users. • Other products such as patented medicines can harm a small portion of users. • Hopefully, the benefits such products offer outweigh their risks. IV. Causes of New Product Failure • Many new products with satisfactory potential have failed to make the grade for reasons related to execution and control problems. Some of the more important marketing causes of new product failures are as follows: o No competitive point of difference, unexpected reactions from competitors, or both o Poor positioning o Poor quality or product o Nondelivery of promised benefits or products o Too little marketing support o Poor perceived price/quality (value) relationship
  • 11. Chapter 07 - New Product Planning and Development 7-7 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. o Faulty estimates of market potential and other marketing research mistakes o Faulty estimates of production and marketing costs o Improper channels of distribution selected o Rapid change in the market (economy) after the product was introduced A. Need for Research • Top management has a responsibility to ask certain questions, and the new product planning team has an obligation to generate answers to these questions based on research that provides, marketing, economic, engineering, and production information. • Some of the specific questions commonly raised in evaluating product ideas are: o What is the anticipated market demand over time? Are the potential applications for the product restricted? o Can the item be patented? Are there any antitrust problems? o Can the product be sold through present channels and the current sales force? What number of new salespersons will be needed? What additional sales training will be required? o At different volume levels, what will be the unit manufacturing costs? o What is the most appropriate package to use in terms of color, material, design, and so forth? o What is the estimated return on investment? o What is the appropriate pricing strategy? KEY TERMS Commercialization: Stage of the new product development process that involves the actual launch of the product and the implementation of the marketing strategy. Cross-functional teams: Members from many different departments come together to jointly establish new product development goals and priorities and to develop schedules. Diversification: A strategy that seeks to develop new products and cultivate new customers. It often leads the organization into new businesses, sometimes through acquisition. Guarantee: An assurance by the producer that the product is as represented and will perform properly. If not, the organization making the guarantee replaces the product or refunds the customer’s money. Idea generation: Stage of the new product development process at which the goal is to ensure
  • 12. Chapter 07 - New Product Planning and Development 7-8 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. that all new product ideas considered by the organization have the opportunity to be heard and evaluated because the success of the process will depend greatly on the quality of the ideas generated. Idea screening: Evaluation of an idea based on strategic risk, market risk, and internal risk for the purpose of eliminating ideas that could not be profitably marketed and expanding viable ideas into full product concepts. Market development: A strategy that seeks to find new customers for existing products. An organization pursuing this strategy seeks to establish footholds in new markets or preempt competition in emerging market segments. Market penetration: A strategy that denotes a growth direction through the increase in market share of present products in present markets. An organization pursuing this strategy hopes to capitalize on existing markets and combat competitive entry or incursions. New product development process: Stages include idea generation, idea screening, project planning, product development, test marketing, commercialization. Product development: A strategy that seeks to create new products to replace existing ones. An organization pursuing this strategy hopes to capitalize on existing markets and combat competitive entry or incursions. Product development stage: Stage of the new product development process at which the product idea has met all expectations and is considered a candidate for further research and testing. In the laboratory, the product is converted into a finished good and tested. Project planning: Stage of the new product development process at which the idea is evaluated further and responsibility for the project is assigned to a project team. The idea is evaluated in terms of production, marketing, financial, and competitive factors. A development budget is established, and preliminary marketing and technical research is undertaken. Rugby or relay: An approach to creating and managing product development teams that involves groups in different areas of the organization working simultaneously on the project. Skunkworks: An approach to creating and managing product development teams that involves team members working in relative privacy, away from the rest of the organization. Test marketing: Stage of new product development process at which the product is no longer a company secret. Test marketing is a controlled experiment in a limited geographical area to test
  • 13. Chapter 07 - New Product Planning and Development 7-9 Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. the new product as well as elements of the marketing mix. Time to market: The elapsed time between product definition and product availability. It is important because history has shown that organizations that are first in bringing their product to market often gain a competitive advantage in terms of profits and market share. Warranty: The statement of the producer of what it will do to compensate the buyer if the product is defective or does not perform properly. ADDITIONAL RESOURCES Adamson, Allen P. The Edge: Fifty Tips from Brands That Lead. New York: Palgrave Macmillan, 2013. Bender, Michael. A Manager’s Guide to Project Management. Upper Saddle River, NJ: FT Press, 2010. Biyalogorsky, EyaI, William Boulding, and Richard Staelin. “Stuck In The Past: Why Managers Persist in New Product Failures.” Journal of Marketing, April 2006, pp. 108-122. Estrin, Judy. Closing The Innovation Gap. NY: McGraw-Hill, 2009. Knight, Joe, Roger Thomas, and Brad Angus. Project Management for Profit. Boston: Harvard Business Review Press, 2012. Macintosh, Julie. Dethroning the King. NY: John Wiley and Sons, 2011. Mack, Ben. Think Two Products Ahead. NY: John Wiley, 2007. Siegel, Eric. Predictive Analytics. Hoboken, NJ: John Wiley and Sons, 2013.
  • 14. Discovering Diverse Content Through Random Scribd Documents
  • 15. of it in the detail. I addressed myself to the retailers of rice, and from them received a mixture of truth and error, which I was unable to sift apart in the first moment. Continuing, however, my inquiries, they produced at length this result: that the dealers here were in the habit of selling two qualities of rice, that of Carolina, with which they were supplied chiefly from England, and that of Piedmont; that the Carolina rice was long, slender, white and transparent, answers well when prepared with milk, sugar, &c., but not so well when prepared au gras; that that of Piedmont was shorter, thicker, and less white, but that it presented its form better when dressed au gras, was better tasted, and therefore preferred by good judges for those purposes; that the consumption of rice, in this form, was much the most considerable, but that the superior beauty of the Carolina rice, seducing the eye of those purchasers who are attached to appearances, the demand for it was upon the whole as great as for that of Piedmont. They supposed this difference of quality to proceed from a difference of management; that the Carolina rice was husked with an instrument that broke it more, and that less pains were taken to separate the broken from the unbroken grains, imagining that it was the broken grains which dissolved in oily preparations; that the Carolina rice costs somewhat less than that of Piedmont; but that being obliged to sort the whole grains from the broken, in order to satisfy the taste of their customers, they ask and receive as much for the first quality of Carolina, when sorted, as for the rice of Piedmont; but the second and third qualities, obtained by sorting, are sold much cheaper. The objection to the Carolina rice then, being, that it crumbles in certain forms of preparation, and this supposed to be the effect of a less perfect machine for husking, I flattered myself I should be able to learn what might be the machine of Piedmont, when I should arrive at Marseilles, to which place I was to go in the course of a tour through the seaport towns of this country. At Marseilles, however, they differed as much in account of the machines, as at Paris they had differed about other circumstances. Some said it was husked between mill-stones, others between rubbers of wood in the form of mill-stones, others of cork. They concurred in one fact, however, that the machine might be
  • 16. seen by me, immediately on crossing the Alps. This would be an affair of three weeks. I crossed them and went through the rice country from Vercelli to Pavia, about sixty miles. I found the machine to be absolutely the same with that used in Carolina, as well as I could recollect a description which Mr. E. Rutledge had given me of it. It is on the plan of a powder mill. In some of them, indeed, they arm each pestle with an iron tooth, consisting of nine spikes hooked together, which I do not remember in the description of Mr. Rutledge. I therefore had a tooth made, which I have the honor of forwarding you with this letter; observing, at the same time, that as many of their machines are without teeth as with them, and of course, that the advantage is not very palpable. It seems to follow, then, that the rice of Lombardy (for though called Piedmont rice, it does not grow in that county but in Lombardy) is of a different species from that of Carolina; different in form, in color and in quality. We know that in Asia they have several distinct species of this grain. Monsieur Poivre, a former Governor of the Isle of France, in travelling through several countries of Asia, observed with particular attention the objects of their agriculture, and he tells us, that in Cochin-China they cultivate six several kinds of rice, which he describes, three of them requiring water, and three growing on highlands. The rice of Carolina is said to have come from Madagascar, and De Poivre tells us, it is the white rice which is cultivated there. This favors the probability of its being of a different species originally, from that of Piedmont; and time, culture and climate may have made it still more different. Under this idea, I thought it would be well to furnish you with some of the Piedmont rice, unhusked, but was told it was contrary to the laws to export it in that form. I took such measures as I could, however, to have a quantity brought out, and lest these should fail, I brought, myself, a few pounds. A part of this I have addressed to you by the way of London; a part comes with this letter; and I shall send another parcel by some other conveyance, to prevent the danger of miscarriage. Any one of them arriving safe, may serve to put in seed, should the society think it an object. This seed too, coming from Vercelli, where the best rice is supposed to grow, is more to be
  • 17. depended on than what may be sent me hereafter. There is a rice from the Levant, which is considered as of a quality still different, and some think it superior to that of Piedmont. The troubles which have existed in that country for several years back, have intercepted it from the European market, so that it is become almost unknown. I procured a bag of it, however, at Marseilles, and another of the best rice of Lombardy, which are on their way to this place, and when arrived, I will forward you a quantity of each, sufficient to enable you to judge of their qualities when prepared for the table. I have also taken measures to have a quantity of it brought from the Levant, unhusked. If I succeed, it shall be forwarded in like manner. I should think it certainly advantageous to cultivate, in Carolina and Georgia, the two qualities demanded at market, because the progress of culture, with us, may soon get beyond the demand for the white rice; and because too, there is often a brisk demand for the one quality, when the market is glutted with the other. I should hope there would be no danger of losing the species of white rice, by a confusion with the other. This would be a real misfortune, as I should not hesitate to pronounce the white, upon the whole, the most precious of the two, for us. The dry rice of Cochin-China has the reputation of being the whitest to the eye, best flavored to the taste, and most productive. It seems then to unite the good qualities of both the others known to us. Could it supplant them, it would be a great happiness, as it would enable us to get rid of those ponds of stagnant water, so fatal to human health and life. But such is the force of habit, and caprice of taste, that we could not be sure beforehand it would produce this effect. The experiment, however, is worth trying, should it only end in producing a third quality, and increasing the demand. I will endeavor to procure some to be brought from Cochin-China. The event, however, will be uncertain and distant. I was induced, in the course of my journey through the south of France, to pay very particular attention to the objects of their culture, because the resemblance of their climate to that of the
  • 18. southern parts of the United States, authorizes us to presume we may adopt any of their articles of culture, which we would wish for. We should not wish for their wines, though they are good and abundant. The culture of the vine is not desirable in lands capable of producing anything else. It is a species of gambling, and of desperate gambling too, wherein, whether you make much or nothing, you are equally ruined. The middling crop alone is the saving point, and that the seasons seldom hit. Accordingly, we see much wretchedness among this class of cultivators. Wine, too, is so cheap in these countries, that a laborer with us, employed in the culture of any other article, may exchange it for wine, more and better than he could raise himself. It is a resource for a country, the whole of whose good soil is otherwise employed, and which still has some barren spots, and surplus of population to employ on them. There the vine is good, because it is something in the place of nothing. It may become a resource to us at a still earlier period; when the increase of population shall increase our productions beyond the demand for them, both at home and abroad. Instead of going on to make an useless surplus of them, we may employ our supernumerary hands on the vine. But that period is not yet arrived. The almond tree is also so precarious, that none can depend for subsistence on its produce, but persons of capital. The caper, though a more tender plant, is more certain in its produce, because a mound of earth of the size of a cucumber hill, thrown over the plant in the fall, protects it effectually against the cold of winter. When the danger of frost is over in the spring, they uncover it, and begin its culture. There is a great deal of this in the neighborhood of Toulon. The plants are set about eight feet apart, and yield, one year with another, about two pounds of caper each, worth on the spot sixpence sterling per pound. They require little culture, and this may be performed either with the plough or hoe. The principal work is the gathering of the fruit as it forms. Every plant must be picked every other day, from the last of June till the middle of October. But this is the work of women and children. This
  • 19. plant does well in any kind of soil which is dry, or even in walls where there is no soil, and it lasts the life of a man. Toulon would be the proper port to apply for them. I must observe, that the preceding details cannot be relied on with the fullest certainty, because, in the canton where this plant is cultivated, the inhabitants speak no written language, but a medley, which I could understand but very imperfectly. The fig and mulberry are so well known in America, that nothing need be said of them. Their culture, too, is by women and children, and therefore earnestly to be desired in countries where there are slaves. In these, the women and children are often employed in labors disproportioned to their sex and age. By presenting to the master objects of culture, easier and equally beneficial, all temptation to misemploy them would be removed, and the lot of this tender part of our species be much softened. By varying, too, the articles of culture, we multiply the chances for making something, and disarm the seasons in a proportionable degree, of their calamitous effects. The olive is a tree the least known in America, and yet the most worthy of being known. Of all the gifts of heaven to man, it is next to the most precious, if it be not the most precious. Perhaps it may claim a preference even to bread, because there is such an infinitude of vegetables, which it renders a proper and comfortable nourishment. In passing the Alps at the Col de Tende, where they are mere masses of rock, wherever there happens to be a little soil, there are a number of olive trees, and a village supported by them. Take away these trees, and the same ground in corn would not support a single family. A pound of oil, which can be bought for three or four pence sterling, is equivalent to many pounds of flesh, by the quantity of vegetables it will prepare, and render fit and comfortable food. Without this tree, the country of Provence and territory of Genoa would not support one-half, perhaps not one- third, their present inhabitants. The nature of the soil is of little consequence if it be dry. The trees are planted from fifteen to
  • 20. twenty feet apart, and when tolerably good, will yield fifteen or twenty pounds of oil yearly, one with another. There are trees which yield much more. They begin to render good crops at twenty years old, and last till killed by cold, which happens at some time or other, even in their best positions in France. But they put out again from their roots. In Italy, I am told, they have trees two hundred years old. They afford an easy but constant employment through the year, and require so little nourishment, that if the soil be fit for any other production, it may be cultivated among the olive trees without injuring them. The northern limits of this tree are the mountains of the Cevennes, from about the meridian of Carcassonne to the Rhone, and from thence, the Alps and Apennines as far as Genoa, I know, and how much farther I am not informed. The shelter of these mountains may be considered as equivalent to a degree and a-half of latitude, at least, because westward of the commencement of the Cevennes, there are no olive trees in 43½˚ or even 43˚ of latitude, whereas, we find them now on the Rhone at Pierrelatte, in 44½˚, and formerly they were at Tains, above the mouth of the Isere, in 45˚, sheltered by the near approach of the Cevennes and Alps, which only leave there a passage for the Rhone. Whether such a shelter exists or not in the States of South Carolina and Georgia, I know not. But this we may say, either that it exists or that it is not necessary there, because we know that they produce the orange in open air; and wherever the orange will stand at all, experience shows that the olive will stand well, being a hardier tree. Notwithstanding the great quantities of oil made in France, they have not enough for their own consumption, and therefore import from other countries. This is an article, the consumption of which will always keep pace with its production. Raise it, and it begets it own demand. Little is carried to America, because Europe has it not to spare. We, therefore, have not learned the use of it. But cover the southern States with it, and every man will become a consumer of oil, within whose reach it can be brought in point of price. If the memory of those persons is held in great respect in South Carolina who introduced there the culture of rice, a plant which sows life and death with almost equal hand, what obligations would be due to him
  • 21. who should introduce the olive tree, and set the example of its culture! Were the owner of slaves to view it only as the means of bettering their condition, how much would he better that by planting one of those trees for every slave he possessed! Having been myself an eye witness to the blessings which this tree sheds on the poor, I never had my wishes so kindled for the introduction of any article of new culture into our own country. South Carolina and Georgia appear to me to be the States, wherein its success, in favorable positions at least, could not be doubted, and I flattered myself it would come within the views of the society for agriculture to begin the experiments which are to prove its practicability. Carcassonne is the place from which the plants may be most certainly and cheaply obtained. They can be sent from thence by water to Bordeaux, where they may be embarked on vessels bound for Charleston. There is too little intercourse between Charleston and Marseilles to propose this as the port of exportation. I offer my services to the society for the obtaining and forwarding any number of plants which may be desired. Before I quit the subject of climates, and the plants adapted to them, I will add, as a matter of curiosity, and of some utility too, that my journey through the southern parts of France, and the territory of Genoa, but still more the crossing of the Alps, enabled me to form a scale of the tenderer plants, and to arrange them according to their different powers of resisting cold. In passing the Alps at the Col de Tende, we cross three very high mountains successively. In ascending, we lose these plants, one after another, as we rise, and find them again in the contrary order as we descend on the other side; and this is repeated three times. Their order, proceeding from the tenderest to the hardiest, is as follows: caper, orange, palm, aloe, olive, pomegranate, walnut, fig, almond. But this must be understood of the plant only; for as to the fruit, the order is somewhat different. The caper, for example, is the tenderest plant, yet, being so easily protected, it is among the most certain in its fruit. The almond, the hardiest, loses its fruit the oftenest, on
  • 22. account of its forwardness. The palm, hardier than the caper and orange, never produces perfect fruit here. I had the honor of sending you, the last year, some seeds of the sulla of Malta, or Spanish St. Foin. Lest they should have miscarried, I now pack with the rice a cannister of the same kind of seed, raised by myself. By Colonel Franks, in the month of February last, I sent a parcel of acorns of the cork oak, which I desired him to ask the favor of the Delegates of South Carolina in Congress to forward to you. I have the honor to be, with sentiments of the most perfect esteem and respect, Sir, your most obedient, and most humble servant. TO F. HOPKINSON, ESQ. Paris, August 1, 1787. Dear Sir,—A journey into the southern parts of France and northern of Italy must apologize to you for the length of time elapsed since my last, and for the delay of acknowledging the receipt of your favors of November 8 and December 9, 1786, and April 14, 1787. Your two phials of essence de l'Orient arrived during that interval, and got separated from the letters which accompanied them, so that I could not be sure which was your first preparation, and which was your second. But I suppose, from some circumstances, that the small phial was the first, and the larger one the second. This was entirely spoiled, so that nothing was distinguishable from it. The matter in the small phial was also too much spoiled for use; but the pearl merchant, from whom I got my details, said he could judge, from what remained, that it had been very good; that you had a very considerable knowledge in the manner of preparing, but that there was still one thing wanting which made the secret of the art; that this is not only a secret of the art, but of every individual workman who will not communicate to his fellows, believing his own method the best; that of ten different workmen, all will practice
  • 23. different operations, and only one of the ten be the right one; that the secret consists only in preparing the fish, all the other parts of the process in the pearl manufactory being known. That experience has proved it to be absolutely impossible for the matter to cross the sea without being spoiled; but that if you will send some in the best state you can, he will make pearls of it, and send to you that you may judge of them yourself. He says the only possible method of making anything of it would be for a workman to go over. He would not engage in this, nor would he buy, because he says it is their custom to have contracts for nine years' supply from the fishermen, and that his contract furnishes him with as much as he can sell in the present declining state of the pearl trade; that they have been long getting out of fashion, polite people not wearing them at all, and the poor not able to give a price; that their calling is, in fact, annihilating; that when he renews his contract he shall be obliged to reduce the price he pays twenty-five per cent.; that the matter sells from five to eight livres the French pound, but most generally at six livres. He showed me a necklace of twelve strands, which used to sell at ten livres, and now sells for two and a half. He observed that the length of time the matter will keep depends on the strength of the spirit of wine. The result is, then, that you must send me a sample of your very best, and write what you would propose after weighing these circumstances. The leg and feathers of the bird are also arrived; but the comb, which you mention as annexed to the foot, has totally disappeared. I suppose this is the effect of its drying. I have not yet had an opportunity of giving it to Monsieur de Buffon, but expect to do it soon. I thank you for the trouble you have taken with Madame Champne's letters, and must give you another, that of enquiring for James Lillie, belonging to the privateer General Mercer, of Philadelphia, the property of Iroon, Carsons and Semple. Richard Graham & Co., merchants of Philadelphia, seem to have been also interested; and Isaac Robinson, Graham's son-in-law, to have commanded her. For the details I refer you to the enclosed paper I received from a Madame Ferrier, sister to James Lillie, from which you will perceive he has not been heard of since 1779. I receive many of these applications which humanity cannot refuse,
  • 24. and I have no means of complying with them but by troubling gentlemen on the spot. This, I hope, will be my apology. I am obliged to you for subscribing to the Columbian Magazine for me. I find it a good thing, and am sure it will be better from the time you have undertaken it. I wish you had commenced before the month of December, for then the abominable forgery inserted in my name in the last page, would never have appeared. This, I suppose, the compilers took from English papers, those infamous fountains of falsehood. Is it not surprising that our newswriters continue to copy from those papers, though every one who knows anything of them, knows they are written by persons who never go out of their garret nor read a paper? The real letter alluded to was never meant to have been public, and therefore was hastily and carelessly dictated while I was obliged to use the pen of another. It became public, however. I send you a genuine copy to justify myself in your eyes against the absurd thing they have fathered upon me in the Magazine. Mr. Payne is here with his bridge, which is well thought of. The Academy, to whom it is submitted, have not yet made their report. I have shipped on board the Mary, Captain Howland, bound from Havre to New York, a box containing the subsequent livraisons of the Encyclopedie for yourself and Doctor Franklin from those formerly sent you to the twenty-two inclusive. I think there are also in it some new volumes of the Bibliotheque physico-economique for you. I had received duplicates of some books (in sheets) for the colleges of Philadelphia and Williamsburg. Whether I packed one copy in your box, and one in Madison's, or both in his, I do not remember. You will see and be so good as to deliver the one to the College of Philadelphia, if in your box. The box is directed to Doctor Franklin, and will be delivered to Mr. Madison at New York. I will send you either by this occasion or the next, the cost, expenses, &c., &c. Present me in the most respectful and friendly terms to Dr. Franklin and his grandson, to Mr. Rittenhouse and family, Mrs. Hopkinson the elder and younger. My daughter (my elder one I mean, for both are here now) presents her respects also to your mother. I am, with sentiments of sincere affection, dear Sir, your friend and servant.
  • 25. TO R. IZARD, ESQ. Paris, August 1, 1787. Dear Sir,—I am to thank you for the laws and newspapers sent me by the M. de Chateaufort. Your favor of April 4th, has also been duly received. I am happy to find that the idea of diverting the rice trade from England to France is thought to be impracticable. A journey which I made from Marseilles lately, in Lombardy, in order to acquire information relative to their rice, has corrected the misinformation which the retailers of rice in this capital had given me. I am satisfied that the rice of Lombardy is of a different species from yours. The exportation of it in the husk being prohibited, I could not bring with me but as much as my pockets would hold, which I have sent to your society of agriculture. It may serve to raise seed from. I have taken measures for a couple of sacks, but I do not make sure of them, nor rely so much on their quality as on the parcel I brought myself. I have written so fully on this subject to Mr. Drayton, that, without repeating it here, I will take the liberty of referring you to that letter. I have endeavored to prevail upon the merchants in this country to engage in the rice trade. I enclose you the proposals of Messrs. Berard & Co., for that effect. They are a very solid house. One of them resides here. Their principal establishment is at L'Orient, where they would prefer receiving consignments of rice; but they will receive them anywhere else, and should suppose Honfleur the best port, and next to that Bordeaux. You observe they will answer bills to the amount of twelve or fifteen livres the French quintal, if accompanying the bill of lading, and will pay the surplus of the proceeds as soon as received. If they sell at Havre or Rouen, they may receive ready money, and of course pay the balance soon; if they sell at Paris, it must be on a year's credit (because this will be to the retailers). The money, therefore, will be received later, but it will be at least six livres the quintal more; a difference well worth waiting for. I know of no mercantile house in France of surer bottom.
  • 26. Affairs in Europe seem to threaten war. Yet I think all may be settled without it. The Emperor disapproves of the concessions made to the Netherlands by their governors, but called for deputies to consult on the matter. They have sent deputies without power to yield a jot, and go on arming. From the character of their Sovereign, it is probable he will avail himself of this deputation to concede their demands. The affairs of Holland are so thoroughly embroiled, that they would certainly produce a war if France and England were in a condition for it. But they are not, and they will therefore find out some arrangement either perpetual or temporary to stop the progress of the civil war begun in that country. A spirit of distrust in the government here, and confidence in their own force and rights, is pervading all ranks. It will be well if it awaits the good which will be worked by the provincial assemblies, and will content itself with that. The parliament demand an assembly of the States; they are supported by the ministers of the nation, and the object of asking that assembly is to fix a constitution, and to limit expenses. They refuse to register any edict for a new tax. This has so far lessened the credit of government, that the purse of the money lender is shut. They speak here as freely as Junius wrote. Yet it is possible that in the event of war, the spirit of the nation would rise to support a cause which is approved—I mean that of Holland. I have had the Messrs. Le Coulteux sounded on the subject of lending money. I had before tried the same thing with others. But nothing is to be obtained for persons on our side the water. They have no confidence in our laws. Besides, all the money men are playing deeply in the stocks of the country. The spirit of "agiotage" (as they call it) was never so high in any country before. It will probably produce as total deprivation of morals as the system of law did. All the money of France is now employed in this, none being free even for the purposes of commerce, which suffers immensely from this cause. Before I conclude, I must add, on the subject of rice, that, what cannot arrive here a month before the careme, would miss its sale,
  • 27. and must therefore go to another market. The merchant, however, to whom it is consigned, will be competent to this measure whenever he finds it a necessary one. I beg leave to be presented very respectfully to Mrs. Izard and your family, and to assure you of the sincere sentiments of esteem and attachment with which I am, dear Sir, your friend and servant. TO JAMES MADISON. Paris, August 2, 1787. Dear Sir,—My last was of June the 20th. Yours, received since that date, are of May the 15th, and June the 6th. In mine I acknowledged the receipt of the paccan nuts which came sealed up. I have reason to believe those in the box have arrived at L'Orient. By the Mary, Captain Howland, lately sailed from Havre to New York, I shipped three boxes of books, one marked J. M. for yourself, one marked B. F. for Dr. Franklin, and one marked W. H. for William Hay in Richmond. I have taken the liberty of addressing them all to you, as you will see by the enclosed bill of lading, in hopes you would be so good as to forward the other two. You will have opportunities of calling on the gentlemen for the freight, &c. In yours you will find the books noted in the account, inclosed herewith. You have now Mabby's works complete, except that on Poland, which I have never been able to get, but shall not cease to search for. Some other volumes are wanting too, to complete your collection of Chronologies. The fourth volume of D'Albon was lost by the bookbinder, and I have not yet been able to get one to replace it. I shall continue to try. The Memoires sur les droits et impositions en Europe, (cited by Smith,) was a scarce and excessively dear book. They are now reprinting it. I think it will be in three or four quartos, of from nine to twelve livres a volume. When it is finished, I shall take a copy for you. Amelot's travels into China, I can learn nothing of. I put among the books sent you two somewhat voluminous, and
  • 28. the object of which will need explanation; these are the Tableau de Paris and L'espion Anglois. The former is truly a picture of private manners in Paris, but presented on the dark side, and a little darkened moreover. But there is so much truth in its ground-work, that it will be well worth your reading. You will then know Paris (and probably the other large cities of Europe) as well as if you had been there for years. L'espion Anglois is no caricature. It will give you a just idea of the wheels by which the machine of government is worked here. There are in it also many interesting details of the last war, which, in general, may be relied on. It may be considered as the small history of great events. I am in hopes, when you shall have read them, you will not think I have misspent your money for them. My method for making out this assortment was, to revise the list of my own purchases since the invoice of 1785, and to select such as I had found worth your having. Besides this, I have casually met with and purchased some few curious and cheap things. I must trouble you on behalf of a Mr. Thomas Burke, at Loughburke, near Loughrea, in Ireland, whose brother, James Burke, is supposed to have died in 1785, on his passage from Jamaica, or St. Eustatius to New York. His property on board the vessel is understood to have come to the hands of alderman Groom at New York. The enclosed copy of a letter to him, will more fully explain it. A particular friend of mine here applies to me for information, which I must ask the favor of you to procure, and forward to me. Writing news to others, much pressed in time, and making this letter one of private business, I did not intend to have said anything to you on political subjects. But I must press one subject. Mr. Adams informs me he has borrowed money in Holland, which, if confirmed by Congress, will enable them to pay, not only the interest due here to the foreign officers, but the principal. Let me beseech you to reflect on the expediency of transferring this debt to Holland. All our other debts in Europe do not injure our reputation so much as this. These gentlemen have connections both in and out of office, and these again their connections, so that our default on this article is
  • 29. further known, more blamed, and excites worst dispositions against us, than you can conceive. If you think as I do, pray try to procure an order for paying off their capital. Mr. Adams adds, that if any certain tax is provided for the payment of interest, Congress may borrow enough in Holland to pay off their whole debts in France, both public and private, to the crown, to the Farmers, and to Beaumarchais. Surely it will be better to transfer these debts to Holland. So critical is the state of that country, that I imagine the moneyed men of it would be glad to place their money in foreign countries, and that Mr. Adams could borrow there for us, without a certain tax for the interest, and saving our faith too, by previous explanations on that subject. This country is really supposed on the eve of a * * * * Such a spirit has risen within a few weeks, as could not have been believed. They see the great deficit in their revenues, and the hopes of economy lessen daily. The parliament refuse to register any act for a new tax, and require an Assembly of the States. The object of this Assembly is evidently to give law to the King, to fix a constitution, to limit expenses. These views are said to gain upon the nation.[E] * * * * * * * * * A final decision of some sort should be made on Beaumarchais' affairs. I am, with sentiments of the most perfect esteem, dear Sir, your friend and servant. TO THOMAS BARCLAY. Paris, August 3, 1787. Dear Sir,—I am now to acknowledge the receipt of your several favors of June the 29th, and July the 6th and 8th.
  • 30. I am of opinion that the affair of Geraud and Roland in Holland had better be committed to Mr. Dumas in Holland, as lawsuits must be always attended to by some person on the spot. For the same reason, I think that of La Vayse and Puchilberg should be managed by the agent at L'Orient, and Gruel's by the agent at Nantes. I shall always be ready to assist the agents of L'Orient and Nantes in any way in my power; but were the details to be left to me, they would languish necessarily, on account of my distance from the place, and perhaps suffer too, for want of verbal consultations with the lawyers entrusted with them. You are now with Congress, and can take their orders on the subject. I shall, therefore, do nothing in these matters, in reliance that you will put them into such channel as they direct, furnishing the necessary documents and explanations. * * * * * * * * * With respect to the French affair, being perfectly satisfied myself, I have not ceased, nor shall I cease, endeavoring to satisfy others, that your conduct has been that of an honest and honorable debtor, and theirs the counterpart of Shylock in the play. I enclose you a letter containing my testimony on your general conduct, which I have written to relieve a debt of justice pressing on my mind, well knowing, at the same time, you will not stand in need of it in America. Your conduct is too well known to Congress, your character to all the world, to need any testimonials. The moment I close my despatches for the packet, which will be the 9th instant, I shall, with great pleasure, go to pay my respects to Mrs. Barclay at St. Germains, to satisfy her on the subject of your transactions, and to assure her that my resources shall be hers, as long as I have any. A multitude of letters to write, prevents my entering into the field of public news, further than to observe, that it is extremely doubtful whether the affairs of Holland will, or will not produce a war between France, on one side, and England and Prussia, on the other.
  • 31. I beg you to accept assurances of the sincere esteem and respect with which I have the honor to be, dear Sir, your friend and servant. TO MR. BARCLAY. Paris, August 3, 1787. Dear Sir,—As you have acted since my arrival in France, in the characters of Consul-General for that country, and Minister to the Court of Morocco, and also as agent in some particular transactions for the State of Virginia, I think it is a duty to yourself, to truth, and to justice, on your departure for America, to declare that, in all these characters, as far as has come within my notice, you have acted with judgment, with attention, with integrity and honor. I beg you to accept this feeble tribute to truth, and assurances of sincere attachment and friendship from, dear Sir, your most obedient, and most humble servant. TO HIS EXCELLENCY EDWARD RANDOLPH. Paris, August 3, 1787. Dear Sir,—A journey into the southern parts of France, and northern of Italy, has prevented my sooner acknowledging the receipt of your private favors of July 12th, 1786, and January 28 and May 3, 1787. I am anxious to hear what you have done in your federal convention. I am in hopes at least you will persuade the States to commit their commercial arrangements to Congress, and to enable them to pay their debts, interest and capital. The coercive powers supposed to be wanting in the federal head, I am of opinion they possess by the law of nature, which authorizes one party to an agreement to compel
  • 32. the other to performance. A delinquent State makes itself a party against the rest of the confederacy. We have at present two fires kindled in Europe; 1, in Brabant. The Emperor, the moment of his return to Vienna, disavowed the concessions which had been made by his governors to quiet the Brabantines. They prepared, therefore, for regular resistance. But as the emperor had, at the same time, called for deputies to be sent to Vienna to consult on their affairs, they have sent them, but without power to conclude anything, and in the meantime they go on arming. The enterprising, unpersevering, capricious, Thrasonic character of their Sovereign renders it probable he will avail himself of this little condescendence in the Brabantines to recede from all his innovations. 2. The Dutch are every now and then cutting one another's throats. The party of the Stadtholder is strongest within the confederacy, and is gaining ground. He has a majority in the States General, and a strong party in the States of Holland. His want of money is supplied by his cousin George. England and Prussia abet his usurpations, and France the patriotic party. Were England and France in a condition to go to war, there is no question but they would have been at it before now. But their insuperable poverty renders it probable they will compel a suspension of hostilities, and either arrange and force a settlement on the Dutch, or if they cannot agree themselves on this, they will try to protract things by negotiation. Can I be useful to you here in anything in the purchase of books, of wines, of fruits, of modes for Mrs. Randolph, or anything else? As to books, they are cheaper here than in England, excepting those in Latin, Greek, or English. As to wines, I have the best Vignerons of Bordeaux, Burgundy and Frontignan. Genuine wines can never be had but of the Vigneron. The best of Bordeaux cost three livres the bottle, but good may be bought for two. Command me freely, assured that I shall serve you cheerfully, and that I am with respects to Mrs. Randolph and attachment to yourself, dear Sir, your most obedient, and most humble servant.
  • 33. TO HIS EXCELLENCY THE GOVERNOR OF VIRGINIA. Paris, August 3, 1787. Sir,—I am to acknowledge the receipt of your Excellency's letters of January 28th, and May 4th, which have come to hand since the date of mine of February 7th. Immediately on the receipt of the former I caused enquiry to be made relative to the bayonets, and found that they had certainly been packed with the muskets. Your Excellency's favor of May 4th renders unnecessary the sending the proofs. There have been shipped in the whole from Bordeaux 3,400 stand of arms, and from Havre 3,406 cartouch boxes, which I hope have come safely to hand. Besides these there has been a shipment from Bordeaux of powder, &c., made by Mr. Barclay. This was but the half of what was intended, and of what Mr. Barclay had contracted for. But his bill on Mr. Grand was protested on a misconception of Mr. Grand's, who, by a mixture of your account with that of the United States, had supposed he had but about 12,000 livres of your money in his hands. I was absent on a journey, and happened in the course of that to meet with Mr. Barclay at Bordeaux, and we concluded to send you half the quantity. Since my return, I have not been able to have your account exactly settled so as to render it now; but am able to say in general and with certainty, that everything sent you has been paid, and that after paying Houdon 3,000 livres for the second bust of the Marquis de La Fayette now nearly ready to be sent off for you, and 10,000 livres the second payment due towards General Washington's statue, there will remain enough in Mr. Grand's hands to pay for a quantity of powder, &c., equal to that sent you by Mr. Barclay from Bordeaux, which shall accordingly be done. This balance on hand includes 5,300 livres paid by Mr. Littlepage, which, though he has sent us a bill for, six or eight months ago, we had refused to receive till the arrival of your Excellency's letter informing me it had not been paid in America; it was therefore applied for and received by Mr. Grand a few days ago. Mr. Barclay drew on me for the balance of his account with the State of Virginia, 2,370 livres, which I paid; besides these he afterwards discovered an omission of
  • 34. 108l. 8s. in his account, which I pay also, so as to leave your account with him balanced. There is, however, the articles of expenses for young Mercier, which he has neither entered in your account, nor charged to me in my private account. It yet remains due to him, therefore, and I shall pay it to him if he applies to me. I should have called for it, but that he was gone to America before I discovered the omission. Should the State have further occasion for arms, your Excellency will be able to judge, combining quality and price, whether those of Liege or of France are to be preferred. I shall with cheerfulness obey your future orders on this or any other account, and have the honor to be, with sentiments of the most perfect esteem and respect, your Excellency's most obedient, and most humble servant. P. S. The original of the report on the inauguration of the bust of the Marquis de La Fayette accompanies this. TO WILLIAM HAY. Paris, August 4, 1787. Sir,—I am now to acknowledge the receipt of your two favors of April 26, and May 3. I have forwarded, by a vessel lately sailed from Havre to New York, a box marked W. H., containing the livraisons of the Encyclopedie subsequent to those Dr. Currie has delivered you, to the 22d inclusive. They are sent to the care of Mr. Madison at Congress, who will forward the box to you. There is in it, also, the same livraisons to Colonel Monroe. I will continue to forward them once or twice a year, as they come out. I have stated in a letter to Dr. Currie the cost and expenses of the first twenty-two livraisons, to enable yourself and himself to settle. The future shall be charged to you or him, as your agreement shall be. It is really a most valuable work, and almost supplies the place of a library.
  • 35. I receive from too many quarters the account of the distresses of my countrymen to doubt their truth—distresses brought on themselves by a feebleness of mind which calculates very illy its own happiness. It is a miserable arithmetic which makes any single privation whatever so painful as a total privation of everything which must necessarily follow the living so far beyond our income. What is to extricate us I know not, whether law, or loss of credit. If the sources of the former are corrupted, so as to prevent justice, the latter must supply its place, leave us possessed of our infamous gains, but prevent all future ones of the same character. Europe is in a moment of crisis. The innovations by their sovereign in the Austrian Netherlands have produced in the people a determination to resist. The Emperor, by disavowing the concessions made by his governors to quiet the people, seemed to take up the gauntlet which they had thrown. Yet it is rather probable he will recede, and all be hushed up there. The Dutch parties are in a course of hostilities which it will be difficult to suspend. A war would have been begun before this, between this country on one side, and England and Prussia on the other, had the parties been in a condition for war. Perhaps England might have raised supplies, but it would be on a certainty of being crushed under them. This country would find greater difficulty. There is, however, a difference in her favor which might reduce her on a level with England: that is, that it would be a popular war here, and an unpopular one in England. Probably the weakness of the two countries will induce them to join in compelling a suspension of hostilities, and to make an arrangement for them, or if they cannot agree in that, they will spin the matter into length by negotiation. In fact, though both parties are arming, I do not expect any speedy commencement of hostilities. I am, with very great respect and esteem, Sir, your most obedient, and most humble servant. TO DR. RAMSAY.
  • 36. Paris, August 4, 1787. Dear Sir,—I have to acknowledge the receipt of your favors of November 8 and April 7, and the pleasure to inform you that the translation of your book sells well, and is universally approved. Froulle will send you some copies of it, by the first opportunity. I am happy to hear you are occupied on the general history. It is a subject worthy your pen. I observe Stockdale in London has printed your work and advertised it for sale. Since I wrote to you on the subject of rice, I have had an opportunity of examining the rice-fields of Lombardy, and having committed my observations to writing, in a letter to Mr. Drayton, as President of the Agricultural Society, I will take the liberty of referring you to that letter, in which probably there is little new to your countrymen, though all was new to me. However, if there be a little new and useful, it will be my reward. I have been pressing on the merchants here the expediency of enticing the rice-trade to Bordeaux and Honfleur. At length, I have received the enclosed propositions. They are a firm and very solid house. I wish they may produce the effect desired. I have enclosed a copy to Mr. Izard, but forgot to mention to him, on the subject of white plains and hoes (particularly named in his letter to me), that this house will begin by furnishing them from England, which they think they can do as cheap as you can receive them directly from England. The allowance made to wholesale purchasers will countervail the double voyage. They hope that after a while they can have them imitated here. Will you be so good as to mention this to Mr. Izard? I fear that my zeal will make me expose myself to ridicule in this business, for I am no merchant, and still less knowing in the culture of rice. But this risk becomes a duty by the bare possibility of doing good. You mention in your letter, your instalment law as needing apology. I have never heard the payment by instalment complained of in Europe. On the contrary, in the conferences Mr. Adams and myself had with merchants in London, they admitted the necessity of them. It is only necessary that the terms be faithfully observed, and the payments be in real money. I am sensible that there are defects in our federal government, yet they are so much
  • 37. lighter than those of monarchies, that I view them with much indulgence. I rely, too, on the good sense of the people for remedy, whereas the evils of monarchical government are beyond remedy. If any of our countrymen wish for a King, give them Æsop's fable of the frogs who asked a King; if this does not cure them, send them to Europe. They will go back good republicans. Whether we shall have war or not, is still doubtful. I conclude we shall not, from the inability of both France and England to undertake a war. But our friend George is rather remarkable for doing exactly what he ought not to do. He may, therefore, force on a war in favor of his cousin of Holland. I am, with very great esteem, Sir, your most obedient humble servant. TO E. CARRINGTON. Paris, August 4, 1787. Dear Sir,—Since mine of the 16th of January, I have been honored by your favors of April the 24th and June the 9th. I am happy to find that the States have come so generally into the schemes of the federal convention, from which, I am sure, we shall see wise propositions. I confess, I do not go as far in the reforms thought necessary, as some of my correspondents in America; but if the convention should adopt such propositions, I shall suppose them necessary. My general plan would be, to make the States one as to everything connected with foreign nations, and several as to everything purely domestic. But with all the imperfections of our present government, it is without comparison the best existing, or that ever did exist. Its greatest defect is the imperfect manner in which matters of commerce have been provided for. It has been so often said, as to be generally believed, that Congress have no power by the Confederation to enforce anything; for example, contributions of money. It was not necessary to give them that power expressly; they have it by the law of nature. When two parties make a
  • 38. compact, there results to each a power of compelling the other to execute it. Compulsion was never so easy as in our case, where a single frigate would soon levy on the commerce of any State the deficiency of its contributions; nor more safe than in the hands of Congress, which has always shown that it would wait, as it ought to do, to the last extremities, before it would execute any of its powers which are disagreeable. I think it very material, to separate, in the hands of Congress, the executive and legislative powers, as the judiciary already are, in some degree. This, I hope, will be done. The want of it has been the source of more evil than we have experienced from any other cause. Nothing is so embarrassing nor so mischievous, in a great assembly, as the details of execution. The smallest trifle of that kind occupies as long as the most important act of legislation, and takes place of everything else. Let any man recollect, or look over, the files of Congress; he will observe the most important propositions hanging over, from week to week, and month to month, till the occasions have passed them, and the things never done. I have ever viewed the executive details as the greatest cause of evil to us, because they in fact place us as if we had no federal head, by diverting the attention of that head from great to small objects; and should this division of power not be recommended by the convention, it is my opinion Congress should make it itself, by establishing an executive committee. * * * * * * * * * I have the honor to be, with sincere esteem and respect, dear Sir, your most obedient, most humble servant. TO DR. CURRIE. Paris, August 4, 1787. Dear Sir,—I am favored with your letter of May the 2d, and most cordially sympathise in your late immediate losses. It is a situation in
  • 39. which a man needs the aid of all his wisdom and philosophy. But as it is better to turn from the contemplation of our misfortunes to the resources we possess of extricating ourselves, you will, of course, have found solace in your vigor of mind, health of body, talents, habits of business, in the consideration that you have time yet to retrieve everything, and a knowledge that the very activity necessary for this, is a state of greater happiness than the unoccupied one, to which you had a thought of retiring. I wish the bulk of my extravagant countrymen had as good prospects and resources as you. But with many of them, a feebleness of mind makes them afraid to probe the true state of their affairs, and procrastinate the reformation which alone can save something, to those who may yet be saved. How happy a people were we during the war, from the single circumstance that we could not run in debt! This counteracted all the inconveniences we felt, as the present facility of ruining ourselves overweighs all the blessings of peace. I know no condition happier than that of a Virginia farmer might be, conducting himself as he did during the war. His estate supplies a good table, clothes himself and his family with their ordinary apparel, furnishes a small surplus to buy salt, sugar, coffee, and a little finery for his wife and daughters, enables him to receive and to visit his friends, and furnishes him pleasing and healthy occupation. To secure all this, he needs but one act of self-denial, to put off buying anything till he has the money to pay for it. Mr. Ammonett did not come. He wrote to me, however, and I am making inquiry for the town and family he indicated. As yet, neither can be heard of, and were they to be found, the length of time would probably bar all claims against them. I have seen no object present so many desperate faces. However, if inquiry can lighten our way, that shall not be wanting, and I will write to him as soon as we discover anything, or despair of discovering. Littlepage has succeeded well in Poland. He has some office, it is said, worth five hundred guineas a year. The box of seeds you were so kind as to forward me came safe to hand. The arrival of my daughter, in good health, has been a source of immense comfort to me. The injury of which you had heard, was a dislocated wrist, and though it happened eleven months ago, was a simple
  • 40. dislocation, and immediately aided by the best surgeon in Paris, it is neither well, nor ever will be, so as to render me much service. The fingers remain swelled and crooked, the hand withered, and the joint having a very confined motion. You ask me when I shall return? My commission expires next spring, and if not renewed, I shall return then. If renewed, I shall stay somewhat longer; how much, will not depend on me altogether. So far as it does, I cannot fix the epoch of my return, though I always flatter myself it is not very distant. My habits are formed to those of my own country. I am past the time of changing them, and am, therefore, less happy anywhere else than there. I shall always be happy to hear from you, being with very sincere esteem, dear Sir, your friend and servant. TO MR. HAWKINS. Paris, August 4, 1787. Dear Sir,—I have to acknowledge the receipt of your favors of March the 8th and June the 9th, and to give you many thanks for the trouble you have taken with the dionæa muscipula. I have not yet heard anything of them, which makes me fear they have perished by the way. I believe the most effectual means of conveying them hither, will be by the seed. I must add my thanks, too, for the vocabularies. This is an object I mean to pursue, as I am persuaded that the only method of investigating the filiation of the Indian nations is by that of their languages. I look up with you to the federal convention for an amendment of our federal affairs. Yet I do not view them in so disadvantageous a light at present, as some do. And above all things, I am astonished at some people's considering a kingly government as a refuge. Advise such to read the fable of the frogs who solicited Jupiter for a king. If that does not put them to rights, send them to Europe, to
  • 41. see something of the trappings of monarchy, and I will undertake that every man shall go back thoroughly cured. If all the evils which can arise among us, from the republican form of government, from this day to the day of judgment, could be put into a scale against what this country suffers from its monarchical form in a week, or England in a month, the latter would preponderate. Consider the contents of the Red book in England, or the Almanac royale of France, and say what a people gain by monarchy. No race of kings has ever presented above one man of common sense in twenty generations. The best they can do is, to leave things to their ministers; and what are their ministers, but a committee, badly chosen? If the king ever meddles, it is to do harm. Adieu, my dear Sir, and be assured of the esteem of your friend and servant. TO COLONEL MONROE. Paris, August 5, 1787. Dear Sir,—A journey of between three and four months, into the southern parts of France and northern of Italy, has prevented my writing to you. In the meantime, you have changed your ground, and engaged in different occupations, so that I know not whether the news of this side the water will even amuse you. However, it is all I have for you. The storm which seemed to be raised suddenly in Brabant, will probably blow over. The Emperor, on his return to Vienna, pretended to revoke all the concessions which had been made by his Governors General, to his Brabantine subjects; but he, at the same time, called for deputies from among them to consult with. He will use their agency to draw himself out of the scrape, and all there, I think, will be quieted. Hostilities go on occasionally in Holland. France espouses the cause of the Patriots, as you know, and England and Prussia that of the Stadtholder. France and England are both unwilling to bring on a war, but a hasty move of the King of Prussia will perplex them. He has thought the stopping his sister
  • 42. sufficient cause for sacrificing a hundred or two thousand of his subjects, and as many Hollanders and French. He has therefore ordered twenty thousand men to march, without consulting England, or even his own ministers. He may thus drag England into a war, and of course this country, against their will. But it is certain they will do everything they can to prevent it; and that in this at least they agree. Though such a war might be gainful to us, yet it is much to be deprecated by us at this time. In all probability, France would be unequal to such a war by sea and by land, and it is not our interest, or even safe for us, that she should be weakened. The great improvements in their constitution, effected by the Assemblée des Notables, you are apprized of. That of partitioning the country into a number of subordinate governments, under the administration of Provincial Assemblies, chosen by the people, is a capital one. But to the delirium of joy which these improvements gave the nation, a strange reverse of temper has suddenly succeeded. The deficiencies of their revenue were exposed, and they were frightful. Yet there was an appearance of intention to economise, and reduce the expenses of government. But expenses are still very inconsiderately incurred, and all reformation in that point despaired of. The public credit is affected; and such a spirit of discontent has arisen, as has never been seen. The parliament refused to register the edict for a stamp tax, or any other tax, and call for the States General, who alone, they say, can impose a new tax. They speak with a boldness unexampled. The King has called them to Versailles to-morrow, where he will hold a lit de justice, and compel them to register the tax. How the chapter will finish, we must wait to see. By a vessel lately sailed from Havre to New York, I have sent you some more livraisons of the Encyclopedie, down to the 22d inclusive. They were in a box with Dr. Currie's, and addressed to Mr. Madison, who will forward them to Richmond. I have heard you are in the Assembly. I will beg the favor of you, therefore, to give me, at the close of the session, a history of the most remarkable acts passed, the parties and views of the House, &c. This, with the small news of my country, crops and prices, will furnish you abundant matter to treat me, while I have nothing to give you in return, but the history of the
  • 43. follies of nations in their dotage. Present me in respectful and friendly terms to Mrs. Monroe, and be assured of the sincere sentiments of esteem and attachment with which I am, dear Sir, your friend and servant. TO THE HONORABLE COMMISSIONERS OF THE TREASURY. Paris, August 5, 1787. Gentlemen,—In my last of June 17, 1787, I had the honor of communicating to you the information I had received from Mr. Grand, that your funds here were out, and he considerably in advance. I took occasion to mention to him the paragraph in your letter of February 17, wherein you were so kind as to say your attention should be immediately turned to the making a remittance. However, I understood soon after that he had protested a draught of Mr. Carmichael's, as also a smaller one of five hundred livres. He called upon me, and explaining to me the extent of his advances, observed that he should not be willing to add to them, except so far as should be necessary for the private expenses of myself and secretary, which he wished to be reduced as much below the ordinary allowance as we could, until remittances should be received. He will send you by this packet a state of his accounts, by which he informs me that your account is in arrear about thirty-two thousand livres, advanced by him, and about fifteen thousand livres from a fund of the State of Virginia, placed here for the purchase of arms, making General Washington's statue, &c. In examining his accounts, I found by the one he had sent you formerly, that you were debited two articles of ten thousand livres and two thousand seven hundred and twenty-four livres and sixty-six sous, which belonged to the account of the State of Virginia. This I must explain to you. That State had directed me to have the statue of General Washington made, and given me assurances such as I could rely on, that I should receive funds immediately. Doctor Franklin was setting
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