March 16, 2007
The cost of raising a dollar - Federal Government Edition c. 1907

In this case, it's not even a dollar.

From the March 16, 1907 NYT:

As a result of a public auction fully advertised in advance, the United States Government added 10 cents to its revenues yesterday when two bottles of sauce officially described as "unclaimed perishable merchandise" found a purchaser after some difficulty.
The sauce had been discovered on the steamship Maranhense and was unmatched to any passenger thereon. The government seized the sauce and the appraiser appraised the sauce at 25 cents a bottle.
Deputy Collector Storey then reeled off the usual amount of red tape. Col Storey certified to Collector Stranahan that he had received the sauce from the steamship company. The next step was to send out advertisements announcing the sale and summoning the official auctioneer to be on hand. When the sale was declared open yesterday morning there was a dearth of bidders. Auctioneer J.B. Sheldon wore a sad look. His compensation from the Government is at the rate of 5 per cent. on sales.

Nobody would bid 50 cents for the bottles and things were looking serious when Casper Scheffer, an attache of the Seizure Room came to the rescue with a bid of 5 cents a bottle. It was accepted with thanks. The auctioneer has not completed his calculation of commission accruing on the sale.

Posted by Craig Depken at 10:07 PM in Economics

The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. -Adam Smith

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