Trading

“ Seeking to free itself from the shifting influence of speculative trading, by taking the business out of the hands of middlemen at home, the Exchange found it quite as important to maintain the control of its own affairs in the markets. ”

“ I make no doubt but there is as much trade now, and as much gotten by trading, as there ever was in this nation, at least in our memory; and if we will allow other people to judge, they will tell us there is much more trade, and trade is much more gainful ”

“ This general trading, which, on the one hand, seriously threatens the small trader, and on the other hand offers greater possibilities of profit to the proportionately small number of persons who can undertake business on so large a scale, becomes infinitely more formidable when the general dealer endeavours not only to attract the trade of a town, but to make his place of business a centre from which he distributes by post his goods to remote parts of the country. ”

“ When the profits of trade happen to be greater than ordinary over-trading becomes a general error, both among great and small dealers. ”

“ This happens in trading, both because it is directed to worldly gain, which clerics should despise, and because trading is open to so many vices, since "a merchant is hardly free from sins of the lips." ”

“ The income accruing from these services, such as banking and trading commissions, insurance premiums, and all the profits of our indirect trade, viz., trade not touching our shores at all, must amount to very large figures indeed. ”

“ When he says that the main influence in any day’s trading is a legitimate and widespread demand for sound securities, in lots small enough to be within reach of the investor of moderate means, he is talking facts and not theories. ”

“ The merchant always advanced the goods or money with which to trade, and the fact that he could, if he wished to do so, fix his own profit at double the value of the capital, is an indication of the very satisfactory returns obtained at this period from foreign commerce. ”

“ Trade cannot exceed the bounds of the goods it can sell; but while trade can increase its stock of cash by credit, it can increase its stock of goods for sale, and then it has nothing to do but to find a market to sell at ”

“ Those which, without engaging in trade, aim at providing facilities for the transaction of commercial or financial operations. They chiefly take the form of exchanges, bourses, public sale rooms, &c., such as the Baltic, Lloyd’s, the Stock Exchange, the Corn and Coal Exchanges, the Commercial Sale Rooms. ”

“ We recognize a short-loan market, a stock exchange, a number of "markets" where lenders and borrowers are brought together by the aid of various intermediaries, such as banks, bill brokers, and stock jobbers, who correspond to dealers in commodities. ”

“ The manner in which the wealth created by the toiling millions, passed through the channels of trade, into the possession of a few wealthy speculators, was illustrated by pictures and printed explanations, in almost endless variety, so that even the most obtuse observers, could not fail to get a clear idea of the practical workings of a system of commercial exchange, under the operation of which, interest, profit and rent were always added to the market price of the product, every time it changed hands. ”

“ Here is more poor stuff; for when I know the current prices of my Wares, both here and beyond the Seas, I may easily conjecture whether the profit of the Exchange or the gain which I expect upon my Wares will be greater. And again, as every Merchant knows well what he gains upon the Wares he buyeth and selleth, so may any other man do the like that can tell how the said Merchant hath proceeded: But what is all this to make us admire the Exchange? ”

“ The sum of the doctrine of the writers of the work on the subject of foreign commerce is given in the following words:—"That trade which makes money flow in most plentifully upon us, enables our people to subsist themselves better by their labour, raises the value of our lands, and occasions our rent to be better paid, must always be reckoned the best trade; for these are the only rules by which it is possible to state and determine the value of any particular trade, or of the general trade of the whole nation." ”

“ Thus trade becomes both import and export. The first step is for the tradesman or his representative to travel about peddling goods, or for an owner of wares or money to offer capital to an itinerant merchant with the object that the latter may divide the profits with him later on. ”

“ Enthusiasm for commerce had arisen with the recent expansion of the world-market, and men, seeing trade continually produce large fortunes, instinctively came to the conclusion that in trade—that is, exchange—is to be found the source of wealth, and that its symbol and agent, money, was its sole repository. ”

“ But every branch of trade in which the merchant can sell his goods for a price which replaces to him, with the ordinary profits of stock, the whole capital employed in preparing and sending them to market, can be carried on without a bounty. ”

“ The trade thus carefully ordered and regulated, assumes, in the course of time, all the dimensions of a vast and increasing commerce. Abundant capital is invested in it, talent and ingenuity are exerted to make its resorts attractive and luxurious, and an insatiable demand arises for fresh young articles of commerce. ”

“ All allocations of Wealth, from the two primary ones—Wages and Rent—to the least of all that are secondary to either of those two, are made through Trade, and in the course of Trade are measured by comparisons of Value, which is the universal regulator of Trade. And as in Production so in Distribution, for Value measurements Money is the more or less stable yardstick and Money terms the spokesmen. ”

“ Stock exchanges, produce exchanges, chambers of commerce and boards of trade are all essentially identical in character, the principal point of difference being the nature of the commodities bought and sold. ”

“ In the first place, the word 'trade' is often, and indeed generally, used in a broader sense, as equivalent to occupation, employment, or business, whether manual or mercantile. Wherever any occupation, employment, or business is carried on for the purpose of profit, or gain or a livelihood, not in the liberal arts or in the learned professions, it is constantly called a trade. ”

“ There are certain Merchants which deal onely upon all advantages in th' Exchange, and neither export nor import wares into the Kingdom, which hath caused some men to affirm, that the money which such mere Exchangers bring in or carry out of the Realm is not comprehended in the ballance of our forraign trade ”

“ Legitimate trade, that is, the equitable exchange of the raw materials and the finished products between the producer and the consumer by means of a third person, the trader, who makes a profit on the goods he handles, giving them to the last buyer at a larger or smaller increase in the selling price over the cost, in these days rarely leads to the accumulation of great wealth. ”

“ If I remember right, there are two there which do a regular country trade, and have a general stock of dry goods, groceries, crockery, clothing, stationery, etc., etc., etc. Here he will learn two {709} things—detail and economy—without a practical knowledge of which, no man can succeed in mercantile business. ”

“ It may be true, as some allege, that we cannot drive a trade for more goods than we have to trade with, but then it is as true, that it is by the help of credit that we can increase the quantity, and that more goods are made to trade with than would otherwise be; more goods are brought to market than they could otherwise sell; and even in the last consumption, how many thousands of families wear out their clothes before they pay for them, and eat their dinner upon tick with the butcher! ”

“ 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. ”

“ But in addition to the amount of foreign money thus employed in these bills of exchange, our vast foreign trade must result in the temporary employment here of the proceeds either of these bills or of goods sold in our market, to be used in the purchase of goods here, for investment, or for safe-keeping in time of trouble, and must greatly add to our available resources. ”

“ Those gentlemen who carry on their poetical trade in a joint stock, would certainly do what they could to sink and ruin and unlicensed adventurer, notwithstanding I disturbed none of their factories, nor imported any goods they had ever dealt in. ”

“ Beneath that surface we first find Trade, for which Money is the medium or the means of expressing relative values and adjusting balances. Trade consists essentially in interchanges of commodities, inclusive of natural resources and of human service. It is not an arbitrary custom or set of customs, but a phenomenon of natural law through which artificial objects are produced to completion and final delivery. But Trade, though lying beneath the Money surface of Economics, is not a basic fact of that science. ”

“ The second is, the want of trade, which seldom falls under common observation, although it be equally true: for, where trade is altogether discouraged, there are few borrowers. In those countries where men can employ a large stock, the young merchant, whose fortune may be four or five hundred pounds, will venture to borrow as much more, and can afford a reasonable interest. ”

“ So long as foreign trade, and expence kept equal, exchange was at the par: but when a people imported for a greater value, or had other occasions abroad, more than their export, and the expence of foreigners among them would ballance; there was a necessity of sending out the ballance in money or bullion, and the merchant or gentleman who owed, or had occasion for money abroad, to save the trouble, expence and hazard of sending it out, gave so much per cent to another, as the trouble, expence and hazard was [Pg 39] valued at. thus exchange rose above the par, and became a trade. ”

“ If from investigation it appears that there is a market for one’s goods in any section or universally, that quality and prices can be such as to make competition favorable, that the market can be enlarged, or should there be none that one can be created, and a determination is therefore formed to enter export trade, the next question is how the goods shall be sold. ”

“ The merchants, therefore, who came from other countries were now reduced to the necessity of either directly bartering their commodities for the produce of the kingdom, or, if they sold them for money in the first instance, of investing the proceeds in other goods before they could be permitted to return home. ”

“ Heavy purchasing movements of our own or foreign securities, on the other side, are the second great influence making for high exchange. There come times when, for one reason or another, the movement of securities is all one way, and when it happens that for any cause we are the ones who are doing the buying, the exchange market is likely to be sharply influenced upward by the demand for bills with which to make payments. ”

“ Those who lived near a town were permitted to sell their products in the market place within the walls on condition that they sold directly to the consumers. They might not dispose of their whole stock to one dealer, for fear that if he had all there was of a commodity he might raise the price above a just one. ”

“ The first branch of foreign trade, which is the export and import of goods, depends on the money. if one half of the people are imployed, and the whole product and manufacture consumed; more money, by imploying more people, will make an overplus to export: if then the goods [Pg 24] imported ballance the goods exported, a greater addition to the money will imploy yet more people, or the same people before employed to more advantage; which by making a greater, or more valuable export, will make a ballance due. ”

“ And hence trade has become Trade, and each trader is involved in the comfort, success, and prosperity of many others. A single commercial transaction to-day involves the lives of hundreds of thousands, competes for their toil and life-blood, carries the decision of their destiny.
A great merchant is the real Kris Kringle. He stands at the centre of exchange, distributes from the tropics and the arctic zones. ”

“ When, however, balances are to be made, exchange becomes intricate; and merchants, being engaged in their particular branches of trade, commonly intrust these complicated calculations to certain agents, who are thence called exchange-brokers, and have made this a most lucrative employment. ”

“ And if in two Neighbouring Countries the Traders of one, by Reason of a greater Plenty of Money, can borrow it to trade with at a lower Rate than the Traders of the other, they will infallibly have the Advantage, and get the greatest Part of that Trade into their own Hands; For he that trades with Money he hath borrowed at 8 or 10 per cent cannot hold Market with him that borrows his Money at 6 or 4. ”