The General Merchant then should learn,

1. To write properly and correctly.

2. All the rules of arithmetick, which have any affinity or relation to commerce. 3. To keep books of double and single entry, as journals, ledger, &c.

4. To be expert in the order and forms of invoices, accounts of sales, policies of insurance, charterparties, bills of lading, and bills of exchange.

5. To know the agreement between the monies, weights, and measures of all parts. 6. If he deals in silk, woollen, linen, or hair manufactories, he ought to know the places where the different sorts of merchandizes are manufactured, in what manner they are made, what are the materials of which they are composed, and from whence they come, the preparations of these materials before working up, and to the merchandizes after their fabrication.

7. The lengths and breadths which silk, woollen, or hair stuffs, linens, cottons, fustians, &c. ought to have, according to the diverse statutes and regulations of the places where they are manufactured, with their different prices according to their times and seasons, and, if he can add to his knowledge the different dyes and ingredients which enter for the formation of the various colours, it will not be useless.

8. If he confines his trade to that of oils, wines, &c. he ought to inform himself particularly of the appearances of the succeeding crops for his government in disposing of what he has on hand, or to learn, as exactly as he can, what they have produced when got in, for his direction in making the necessary purchases and engagements.

9. What are the sorts of merchandizes which are found more in one country than another, them which are scarce, their different species and qualities, and the properest method for bringing them to a good market, either by land or sea.

10. Which are the merchandizes permitted or prohibited, as well entering as going out of the kingdom or estates where they are made.

11. The price of exchange, according to the course of different places, and what is the cause of its rise and fal'.

12. The customs due on importation or exportation of merchandizes, according to the usage of the places, tarifs, and regulations, that he trades to.

13. The best manner of folding up, embaleing, or tonning the merchandizes for their preservation.

14. The price and condition of freighting, and insuring ships and merchandizes. 15. The goodness and value of all necessaries for the construction and repairs of shipping, the different manners of their building, what the wood, the iron, the masts, the cordage, the anchors, cannons, sails, and all requisites may cost.

16. The wages commonly given to the captains, officers, and sailors, and the manner of engaging with them.

17. The foreign languages (or at least as many of them as he can attain to) which may be reduced to four principal ones, viz. 1. The Spanish, which is in usage in almost all the East, particularly on the coasts of Africk, from the Canaries to the Cape of Good Hope. 2. The Italian, understood on all the coasts of the Mediterranean, and in many parts of the Levant. 3. The Teutonick or German, which is understood in almost all the northern countries. And 4. French, which is now become almost universally current, fashionable, and useful.

18. The consular jurisdiction, with the laws, customs, and usages, of the different countries he does or may trade to; and generally all the ordinances and regulations which have any relation to commerce, either at home or abroad.

19. In fine, although it is not precisely necessary that a merchant be very learned, it is, notwithstanding, very proper that he knows something of history, particularly that of his own country, geography, hydrography, or the science of navigation; and that he has knowledge of the discoveries of the countries where trade is established, in what manner it is settled, of the companies which are formed to support those establishments, of the colonies that they have sent out, of which he need not want memoirs, as almost all are inserted in this work, and which he may also learn from the relations of travellers; all these things are of a very great utility for the enterprizes of commerce, which he may have a design to undertake.

We may add to the foregoing requisites for forming a merchant, that he ought on all occasions to have a strict regard to truth, and avoid fraud and deceit as corroding cankers to his reputation and fortune; for, however cunningly the mask is wore, chance may, or time certainly will, discover the cheat, and render the wearer exposed to the contempt and insults of those he has imposed on; and, to what has been said, permit me to subjoin the advice, that he who undertakes a foreign trade should do it with great caution and circumspection, observing several circumstances tending to secure him success: as first, to make himself master of that branch of commerce he intends to engage in; and, if he does not transact this business personally, to be cautious in his choice of factors; above all, that they be noted for their capacity and integrity, otherwise the best laid scheme may be rendered abortive, and produce a considerable loss, instead of an expected advantage, through the treachery, neglect, or ignorance of the agent; for which reason a trader should not be drawn in to employ a factor, with whose character he is unacquainted, from any motive whatsoever, even from that most prevailing one, of serving for a less commission than what others commonly do, as I am sure no trade is worth carrying on that will not afford the allowance generally made to those the merchant thinks proper to substitute and employ. His first care, therefore, should be the choice of such a correspondent as he can depend on, whose integrity will naturally lead him assiduously to solicit and promote the interest of his principal, unbiassed by any sinister views of his own. But as merchants, who engage in foreign trade, as well as those who confine themselves to one at home, transact a great part of the business themselves, I shall here add some valuable remarks for their government in purchases and sales, partly extracted from Mons. Savary's Parfait Negociant, and partly what my own experience has furnished me with, as they may be equally serviceable to an English and French reader, though Mr. Savary's share of them was principally intended for the latter.

Trade becomes more or less troublesome, according as it is more or less extensive; and it is for this reason that merchants ought to appropriate different maxims and considerations for the conduct and management of their affairs.

Those who traffick in the merchandizes of our own manufactories, or confine their trade to the consumption of one city only, run less risques, and carry on their business easier than those who dispose of their goods, not only in the place of their residence, but to dealers and retailers in other parts of the kingdom, or abroad; this shall be explained after treating of the manner which merchants ought to observe in the purchase of commodities, and the establishing fabricks themselves.

And for this it is to be remarked, that in places where any considerable manufactories are settled, there are generally associated merchants, who supply the fabricators with the necessary materials for their works, which they sell them, and in payment take their goods, which they afterwards dispatch in other places, or on the spot, to supply commissions given them.

Though there are some of the artificers so opulent, as to buy and procure the ingredients they want for the supply of their manufactories from the first hands; yet

conduct in his par

chases.

there are others, who (being masters of less stock) sell their goods to the first purchasers that ask after them.

Now merchants must govern themselves in their dealings with these three sorts of men, according as the times and seasons shall dictate; for in those, when the merchandizes are scarce and in demand, they must buy of all as well as they can, and according to the advantages that may present; but, when commerce is dead, or little stirring, and abundance of goods lying on hand, they should then act with circumspection, and observe the following maxims in all their purchases.

Merchant's 1. When goods begin to rise in price (which commonly proceeds from these two causes, either that the value of the materials is considerably augmented on account of their scarcity, or that there are but few goods ready made, to supply a brisk demand) it is natural for those that are perfected to encrease in esteem, in proportion to the want and paucity of them; but it is prudence in him that would buy under such circumstances, to examine the causes that produce this augmentation; and, if the goods are of silk, enquire whether the crop of that commodity has been good or bad, though, if the season has been moist and rainy at the place of its growth, he may be assured of the latter, and that the scarcity of the merchandize proceeds from this of the principal material.

It is equally the same in the manufactories of cloth, and other woollens, when wools are scarce and risen in price; and the same with linens under the shortness of the crop of hemp and flax, and indeed of all sorts of materials, which compose the manufactures of the different sorts of merchandizes, current in trade; because the scarceness of these (as has been said) augments their price, and consequently that of the commodities made of them.

There is no doubt, that when the augmented price of merchandizes proceeds from the scarcity of their materials, that it not only remains so long, but that it daily rises by little and little, and in this case affords the merchant no room for deliberation, who ought immediately to buy and make his bargain, to receive yet afterwards (in a certain time) the quantity he judges he may want to sell.

If the rise of goods comes from there being few in the fabricks, and a great demand for them, and not through a want of the materials which compose them, the buyer ought to act with sagacity and prudence in their purchase; because this probably is a fire that will soon pass, and this augmentation last no longer than the warmth that occasioned it, for two reasons; the first, because it may be chance effect it, proceeding from some merchants of different places accidentally giving their commissions at the same time; or that they happen to meet at their manufactories, which makes the fabricators stand firm to their prices; though, when these merchants are supplied, things return to the same state they were in before, and such an occurrence makes them sometimes even diminish greatly in their value, because the workmen, seeing themselves sought after, engage deeply in their fabricks, and the abundance then occasions a cheapness in the same manner as a scarcity before produced the reverse; and these considerations are very important towards successful purchases.

2. The second maxim necessary to be observed in the buying of merchandizes, is to be extremely circumspect in his words, that his desire of having the goods he is treating for, may not appear; and he should not slight or undervalue them, in order to be thought not to want them, as this cunning only serves to embarrass the mind of the manufacturer, and make him more firm and tenacious under the uncertainty, whether this is a feint or not, and is a means of his not so soon resolving to part with his goods at the price offered, for fear of being surprized: on the contrary, he ought to act with sincerity and frankness, accompanied, however, with prudence, workmen liking better to deal with such sort of chapmen than with those who use tricks and subtlety.

3. The third is to consider whether the merchandize has diminished in price from a higher degree to which it was before mounted, or whether it augmented in price from a lower one, at which it was, by reason of a dullness in trade, or by the too great abundance that there has been in the fabricks: this is the greatest nicety in the buyers.

For if it is at the height of its dearness, and it comes to fall, then you ought not to buy, because it is certain, that if the cause which made it mount to so high a price ceases, that it will daily diminish, till it returns to the point of its just value.

On the contrary, if the goods are at their lowest value, and the price begins to rise, it is then a time to buy, because it is certain that it will daily augment, so long as the cause which gave room for its augmentation lasts.

And though what has been said may appear a paradox, it is however a truth founded on experience, and by which the most skilful and ingenious merchants have greatly lost or gained, according as they have timely taken their measures or neglected them.

4. The fourth maxim in the purchase of goods is, both to know and reflect where they will meet the best sales, and then suit their quality to the taste of the inhabitants. 5. The fifth maxim is to buy of the poorest workmen, because they, not having the means to lay up their manufactures, must sell cheaper than the more powerful ones will, who have substance, and can keep their goods till a fit opportunity offers for a more advantageous sale.

6. The sixth maxim is, not to be drawn in to engage beyond your capital by the tempting bait of a cheap purchase, and from a wrong calculation of your ability to pay at the time agreed on; as a failure of punctuality herein will occasion a loss of credit among the fabricators not to be recovered.

7. The seventh maxim is not to employ, as factors at the fabrick, any who act as merchants, and sell the materials to the manufacturers; for they always buy the goods dearer than others who have nothing to sell, because they give a part in payment, and very often to recover from their debtors, they take of them merchandizes in payment, which are neither so good nor handsome as those bought with ready

money.

8. The eighth and last maxim which I shall mention on this subject, is, that if the buyer has a partner, one of them should be on the spot, for two reasons; first, because, being interested in the trade, he is more diligent, and takes better care of what he does, than a factor, who often regards nothing more than his own interest, and who, having commissions from several merchants, favours those he pleases: the second is, because affairs are transacted more secretly, and, many times, opportunities offer for good purchases, which one commissioned doth not dare to engage in, though. on such adventures large profits are frequently to be made.

These maxims also hold good in the purchase of all other commodities, and, if carefully attended to, will lead the merchant in the steps he ought to tread, to secure success; and as these have been directed to guide him in laying out his money to the best advantage, I shall now borrow the assistance of the same author to furnish him with proper directions for his management in conducting his sales.

conduct in

1. The merchant should avoid many words and circumlocutions in his dealings, as Merchant's this looks more like a retailer than one who is not so; and, supposing he is treating his sales. with one of this last distinction, he may be assured, that the buyer understands the value of the goods, so that the merchant only occasions himself unnecessary trouble to ask much out of the way; therefore, what is principally to be observed in sales on trust is, that his debtor be one noted for his punctuality and honesty, and also dispatches large quantities of goods, as these motives should induce a preference to be given one so qualified, (though with less profit) rather than to another with an inferior credit and a shorter trade.

2. If the merchandizes dealt in are such as are dependant, in some sort, for their value on the mode, seasons ought to be consulted for advantageous sales, so that, if those proper for the winter are asked for at the latter end of it, it is not reasonable to expect so much then as in the beginning, neither is it consistent with the owner's interest to keep them, as he may have no other offers till the returning year, and he then risks their continuing in fashion, so that it will be prudent to embrace any tolerable offer, under these circumstances, that is made him.

, 3. He ought not to trust too much to any one person; for, in case of a failure, it may straiten him, and, in the end, bring him to the same misfortune; therefore prudence will direct him to disperse his effects in many hands, that, if one or two miscarry, he may be less sensible of his loss, and better able to support it: this is a very necessary maxim to be observed by those who have large dealings, as the sufferings by a contrary practice are innumerable, and there is no one article of misconduct that has brought so many to ruin as this.

4. A merchant should not inconsiderately engage with young men, who have little more to recommend them to credit than being the children of rich parents, as a trust on this account is the product of a very false maxim; because, if they do otherwise than well, their fathers would hardly pay their debts, as the creditor may have flattered himself, neither is it reasonable to expect it, no more than to think they should incommode themselves, or hurt their other children, purely to support a son, which gaming, debauchery, or at best imprudence, has reduced.

5. If it happens, that debtors omit paying what they owe at the time agreed on, the creditors should not oppress them with an extravagant interest; for, though necessity obliges them seemingly to submit, it is a sure canker to their fortunes, which too often at last involves both the trusted and him that trusts, in ruin. Besides, if the latter escape a failure he has drawn the other into, I should think he could not avoid the lashes of conscience, when reflected on his occasioning the debtor's misfortunes, by the extortion he had imposed.

6. The sixth maxim is never to lend to any sort of persons whatsoever on an unjustifiable security, nor to take an unwarrantable interest; for this is a detestable act, and exposes the usurer to the penalty of the law, and renders him abominable both in the sight of God and man.

It is, however, both reasonable and prudent for a merchant to take pledges or securities from his debtors, and to be cautious of what they consist; for, if they are in merchandizes, the colours, fashions, &c. of them may change, or the quality may suffer by keeping, so that whilst he imagines he has the value of what is owing him in hand, he may be mistaken by the half: and in these cases of lending or selling on trust, and taking pawns instead of notes for security, the seller or lender should add to the above precaution, that of making the terms of the deposit very clear and apparent, in case of a failure in the debtor, and a consequential claim of the goods by the other creditors, as a joint property, otherwise he may be accused of endeavouring to abscond the bankrupt's effects; and if he has not taken the prudent steps he ought in his dealings, may be obliged to give up what he has received as (and esteemed) a security, besides suffering in his reputation, for being unable to justify what he asserted and pretended; it would therefore be very proper to have the affair transacted before witnesses, or at least to have all the goods that are pledged particularly expressed, in the note or obligation given for the trust or loan, by which means the afore-mentioned inconveniences would be avoided.

7. A merchant should always endeavour to make sales of such goods as are decaying, damaged, or growing unfashionable, as soon as he conveniently can; and if money is not obtainable for them, he should truck them, if he can do it, on a tolerable footing; regarding, however, in this case, not to make the exchange, as one may say, with his