Merchant firm

“ 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. ”

“ 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? ”

“ English merchants will soon enough feel the pressure of slack business and force ministers to another line of conduct. A good plan enough for the man of independent fortune, for the judge whose income was assured, or the thrifty merchant who, signing a non-importation agreement, had laid in a stock of goods to be sold at high prices. But the wage-earner, the small shopkeeper who was soon sold out, the printer who lived on his weekly margin of profit, the rising lawyer whose income rose or fell with his fees: such men were of another mind. ”

“ The true office of commerce is to facilitate exchanges of articles between men, to the amount that their wants and interests require; but as every transfer of property leaves a profit with the merchant, he has a disposition to increase his gains, by pushing his transactions beyond the just limits 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. ”

“ 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 ”

“ The Trading Company.—English pioneers in exploration found an instrument for colonization in companies of merchant adventurers, which had long been employed in carrying on commerce with foreign countries. Such a corporation was composed of many persons of different ranks of society—noblemen, merchants, and gentlemen—who banded together for a particular undertaking, each contributing a sum of money and sharing in the profits of the venture. ”

“ 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 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. ”

“ 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. ”

“ 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. ”

“ 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. ”

“ 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. ”

“ 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. ”

“ Subject to these rules, each merchant traded as he pleased, and there was no pooling of profits. The regulated company, the first form of the commercial company, was encouraged by the king. He could charter such a company, grant it a monopoly over a certain district, and trust it to develop the trade as no individual could, and there was no evasion of taxes as by independent merchants. ”

“ Each merchant could ship on his own a certain number of cloths each year, the number depending on the length of his membership in the company. He could sell them himself or by his factor at the place where the company had privileges of market. Strict rules governed the conduct of each member. He was to make sales only at certain hours on specified days. All disagreements were to be settled by the company's governor, or his deputy in residence, and those officials dealt with such disputes as arose between members of the company and continental officials and buyers. ”

“ 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. ”

“ 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. ”

“ Dearborn, a prominent citizen of Chicago, declared that not more than three per cent. of the individuals who embark in trade end life with success. The success meant, doubtless, is unbroken solvency during the business experience of the merchant, and the final accumulation of a competence. The mercantile ranks in the United States afford many instances of individual merchants and firms who have settled or compromised with their creditors several times, and finally succeeded—succeeded at the expense of their creditors. ”

“ 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. ”

“ We were told the business could not be given to us, no matter how advantageous our terms might be, and our inference was that the object of the trust was not to get the material at the lowest price, but to give the business to a favored firm without competition.
This large contract naturally excited much interest in the trade and great efforts were made to ascertain its terms. The generally accepted theory was that the firm supplied the material as wanted and the price for each month's deliveries was fixed by the average of the market for the last ten days of the month. ”

“ 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. ”

“ 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. ”

“ The manufacturer supplies the wholesale dealer; the wholesale dealer provides the retail tradesman; and the retail tradesman carries on his business with his customers upon the sure foundation of credit. Not a coin is seen in the hands of either party from one year’s end to the other; and a man’s wealth is known not by the mere exchangeable property he possesses, but by the extent of the credit he is allowed. Political economy is a wonderful science, sir; and the ancients were entirely ignorant of its true principles. ”

“ 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. ”

“ 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 ”

“ 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 ”

“ To protect ourselves from loss in our sales for London account we had to take from time to time an interest in the market and this made us dealers. To complete our sales we were compelled to import the material and thus became importers.
With the opening of the year 1889 we found ourselves possessed of fairly large capital and a firmly established credit with bankers. These facts, combined with the best facilities for doing the business, decided us to eliminate the brokerage phase entirely, except in our transactions with our speculative clients. ”

“ 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. ”

“ The wholesale dealer, by affording a ready market to the manufacturer, by taking his goods off his hand as fast as he can make them, and by sometimes even advancing their price to him before he has made them, enables him to keep his whole capital, and sometimes even more than his whole capital, constantly employed in manufacturing, and consequently to manufacture a much greater quantity of goods than if he was obliged to dispose of them himself to the immediate consumers, or even to the retailers. ”

“ He has capital invested also in the raw material which he intends to convert into some article of utility. He works up his raw material; he makes advances for the labour required in working it up. The article is at length ready for the market. The wholesale dealer, who purchases of the manufacturer, sells to a retailer, who is in the habit of buying upon credit, long or short, because the article remains a certain time in his hands before it reaches the consumer, who ultimately pays for it. ”

“ Third Case.—The third case shows the firm in a position to demand something more than book values as the basis for admission of the new partner. The presumption is that the old firm is favorably known, has an established trade and patronage, built by fair dealing and judicious advertising, by its favorable location, and the numerous other ways in which a substantial business may be developed. Its standing in the community is a factor of value to the firm because it brings trade to its doors. ”

“ Now he sells his goods before he makes them, borrows credit at the bank to buy his raw materials, even to pay his labour through the processes of manufacture, and when the customer pays on delivery of the goods with credit which he also has borrowed at the bank, the manufacturer settles with his bank and keeps the difference. An exporter was formerly one who bought commodities with his own money, loaded them on ship, sent them on chance to a foreign market, and waited for his capital to come back with a profit. ”