Merchant company

“ The regulated companies for foreign commerce which at present subsist in Great Britain, are the ancient merchant-adventurers company, now commonly called the Hamburgh company, the Russia company, the Eastland company, the Turkey company, and the African company. ”

“ Most wholesale merchants are content to confine themselves to one branch of trade: lumber, iron, wool, leather, grain, etc. Most of these merchants, moreover, rely further on specialists to help them with certain parts of their business. They depend constantly on the banker, the speculator, the broker, the forwarder, the warehouseman, the commission merchant, and agents of many different kinds. It is impossible, in this book, to do more than suggest the complex commercial organization which has grown up in the course of the century. ”

“ The merchant or manufacturer protects himself against his risk of loss by making another addition to the price of the goods he sells. Usually the goods pass through several hands; those of the jobber, the Western or Southern wholesale dealer, and the retailer, before they reach the consumer. ”

“ It is no more 'an account,' and no more connected with 'the trade of merchandise,' than a bill of exchange or a contract for the rent of a house, or the hire of a carriage, or any other single transaction which might take place between individuals who happened to be merchants. An entry of it on the books of either could not change its nature, and convert it from an insulated transaction between individuals, into an account concerning the trade of merchandise, between merchant and merchant. ”

“ The circumstance I here have in my eye, is the difference I find in the effect of competition, when it takes place purely among merchants on both sides of the contract, and when it happens, that either the consumers mingle themselves with the merchant-buyers, or the manufacturers, that is, the furnishers, mingle themselves with the merchant-sellers. ”

“ The general retail merchant is compelled to transact business with a great number of wholesale dealers, to whom he pays cash in hand, or agrees to pay it at some future period, say, in four, six, nine, or twelve months. ”

“ Those brutes of keepers who beat you told me that at the first touch of the lash you gave a terrible jump the length of your chain. But, you see, friend Bull, if I offer you to the purchasers with the dangerous account which you give, I shall find few customers. An honest merchant should not boast his merchandise too much, no more should he underestimate it. ”

“ Once the merchant has opened his store or shop and purchased his goods he seeks to establish trade relations with as many individual customers as he can attract. Mercantile business is carried on in two kinds of stores, those which supply one kind of goods in wholesale or retail quantities, like groceries or dry goods, and those which maintain numerous departments for different kinds of manufactured goods. ”

“ The great development in stock-exchange business in recent times is due chiefly to the sale of foreign and colonial bonds, and the remarkable growth and spread of joint-stock companies since the Joint-Stock Company Act of 1862. ”

“ The company were to be enabled to purchase lands, &c., and to exercise all the usual powers of bodies corporate; but were not to trade in the buying or selling of any goods or merchandise, except that they might deal in bills of exchange, and in buying and selling of bullion, gold, or silver, and in selling of any goods or merchandise which should be pledged to them for money lent thereon, and might also sell the produce of their own lands. ”

“ The business of this place is conducted with great regularity, and the dealers and collectors of old clothes meet at a certain hour of the afternoon to make sales and exchanges, so that it is managed almost upon the same plan as the Royal Exchange, only that the dealers here come loaded with their goods, which must undergo inspection before sales can be effected: while the Merchant carries with him merely a sample, or directs his Purchaser to the warehouse where his cargo is deposited. ”

“ From being a body concerned in trade on their own account, and employing their servants as factors, the servants have at one stroke taken the whole trade into their own hands, on their own capital of 800,000l., at their own risk, and the Company are become agents and factors to them, to sell by commission their goods for their profit. ”

“ Now therefore let the learned Lawyer fall cheerfully to his books again, for the Merchant cannot put him down, if he have no more skill than is in his Exchange. Are these such admirable feats, when they may be so easily know and done in the course of trade? ”

“ By this arithmetic, for present convenience, all grades of merchants are reduced to one denomination —men who live by buying and selling.
All these four classes run into one another. The same man may belong to all at the same time. All are needed. At home a merchant is a mediator to go between the producer and the .manufacturer; between both and the consumer. On a large scale he is a mediator who goes between continents, between producing and manufacturing States, between both and consuming countries. ”

“ Good organization is the trend of modern business, and this is good organization—saving two or three handlings, truckage, some bookkeeping, et cetera.
II. The Manufacturers. Next to the country merchant, the manufacturer will be the largest beneficiary of the postal parcels delivery. Take, for instance, the hardware business. The manufacturer is obliged, under the existing conditions of trade, to maintain large stocks in an endless number of cities scattered over the country, or do what is the equivalent of directly maintaining the stocks—that is, to give extended credit. ”

“ It certainly cannot, I submit, with reason, be said that there is not the same unity between the operations of a manufacturer who makes his goods in one state, and sells them in another, as there is between the operations of an express company. The sale of the manufactured goods is as essentially necessary to the profits of the manufacturer as is the manufacture of the goods themselves. ”

“ Mechanics and manufacturers will always be inclined, with few exceptions, to give their votes to merchants, in preference to persons of their own professions or trades. Those discerning citizens are well aware, that the mechanic and manufacturing arts furnish the materials of mercantile enterprise and industry. Many of them, indeed, are immediately connected with the operations of commerce. They know that the merchant is their natural patron and friend ”

“ This warehouse-keeper, or wholesale-man, sells the goods which he buys of the merchant—I say, he sells them to the retailers, and it is for that reason I place it first there. Now, as they buy in smaller quantities than he did of the merchant, so he deals with more of them in number, and he goes about among them the same Saturday, to get in money that he may pay his merchant, and he receives his bag full of promises, too, every where instead of money, and is put off from week to week, perhaps by fifty shopkeepers in a day ”

“ The interest of the mercantile class may happen to differ from that of the whole community. For example; it is, generally speaking, the interest of the merchant to import and export every thing; the interest of manufacturers to lessen imports in order to raise the price of domestic fabrics, and to check exports, where they may enhance the price of raw materials. ”

“ An endeavour was made to convince the Duke that at the price named there could be no risk of loss, because the fur-trade could be separated from the land and rights, and after the purchase a new joint-stock company could be organized to take over the trading-posts, the fleet of ships, the stock of goods, and the other assets, rights and privileges affecting trade. ”

“ Retail dealers, selling the merchandise of others at prices prevailing at particular localities and times shall hand over to the wholesale dealers as much of the sale proceeds and profit as is realised by them. ”

“ They have all the force of those tabular accounts of sales which mercantile men are in the habit of transmitting to their correspondents—containing not the exact dealings of any one merchant, which would be in a great measure useless, but communicating the actual state of the existing market. ”

“ The company, on the other hand, says they have no idea of selling goods out of their own stores, for the purpose of enabling others to enter into competition with them, and that they will spare no expense to keep the trade as long as they can, in their own hands. ”

“ In compliance with your desire, we have reflected on the business & expence which will attend the sale of and remitting for such teas as the East India Company may ship to North America, and considering that none but gentlemen of known property, integrity and of experience in trade can, with propriety and safety to the Company, be employed therein, we humbly conceive that five pr cent. commission, and one pr cent. for truckage, warehouse rent, brokerage, and other incidental charges, making in the whole six pr cent. on the gross sales, is as little as the business can be transacted for. ”

“ All these items are present in varying degree, whatever the size of the business, except where a merchant has capital enough of his own to carry on a small business and can attend to the wants of his customers alone or with the help of his family. The temptation of the merchant is strong to use every possible means to make a success of his business, paying wages as low as possible, in order to cut down expenses, and offering all kinds of inducements to customers in order to sell his goods. ”

“ No one who is not a member can trade on the exchange, and every member is bound to follow certain rules in his dealings, but every member keeps his capital and profits distinct from those of the others.
The larger part of the early English commercial companies146 were regulated companies of this kind. To a certain extent they attained the objects of association which have been enumerated above; some of the worst evils of individual trade were impossible so long as the company adopted wise regulations and could force members to live up to them. ”

“ If the merchant has given to the agent corn, wool, oil, or any sort of goods, to traffic with, the agent shall write down the price and hand over to the merchant; the agent shall take a sealed memorandum of the price which he shall give to the merchant. ”

“ Hence there is opposition between the merchant and the manufacturer on the one hand, and between merchant and customer on the other. This is why the merchant is led to depreciate the article he buys, and to praise that which he is selling. ”

“ This occasions the merchant, or the wholesale-man, to go about, as they call it, a-dunning among their dealers, and which is generally the work of every Saturday. When the merchant comes to his customer the wholesale-man, or warehouse-keeper, for money, he tells him, 'I have no money, Sir ”

“ If a travelling merchant brought his wares to the town the citizen might claim the right of buying whether the owner wished to sell or no, and might insist on a share in the profits of any mercantile venture. ”

“ The merchant pays a duty upon importation, which he does not receive again till he sells the commodity, perhaps at the end of three months. He is therefore equally entitled to a profit upon that duty which he pays at the customhouse, as to a profit upon the original price which he pays to the manufacturer abroad ”

“ Hence there was nothing to hinder a merchant from entering into contracts with organized consumers, to sell his business to them, and retain the management at an agreed salary, under such rules and regulations for the conduct of the business as they might adopt. ”

“ Merchant or Mechanic. If the Merchant demands too much Profit on imported Shoes, they buy of the Shoemaker; and if he asks too high a Price, they take them of the Merchant; thus the two Professions are checks on each other. The Shoemaker, however, has, on the whole, a considerable Profit upon his Labour in America, beyond what he had in Europe, as he can add to his Price a Sum nearly equal to all the Expences of Freight and Commission, Risque or Insurance, &c., necessarily charged by the Merchant. ”

“ They can never show, even at the time the Company had their shop and magazines there well supplied, that the goods were sold at more than fifty per cent. profit, in conformity with the Exemptions. The forestalling of the goods by one and another, and their trying to get this profit, cannot be prevented by the Director, the more so as the trade was thrown open to both those of small and those of large means. ”

“ The argument supposes the corporation to have been originated for the management of an individual concern, to be founded upon contract between individuals, having private trade and private profit for its great end and principal object. ”

“ This is the constant multiplication of intervening agents—middle-men, factors, brokers, speculators, contractors, and distributors of every sort—between the producer and the consumer, or between the primary owner and the ultimate owner of almost everything which is the subject of ownership and trade. Those two, who are the actual persons brought chiefly into relationship by the thing in question, are put quite out of sight of one another in most of the transactions of modern industry and commerce ”

“ The only real saving which buying direct from producers insures is the eliminated profit of the wholesaler, with a possible reduction of the expense for salesmen whom wholesalers must employ. Competition in buying has forced the joint creation by small concerns of buying organizations which, united, represent as large a buying power as the chain or department stores. Coöperation in buying certain classes of goods has strong advantages both for dealers and consumers. ”