If 100 ells at Amsterdam are equal to 120 ells at Hamburgh, and 30 ells at Hamburgh make 21+ ells at St. Gall, and 86 ells at St. Gall are equal to 60 ells at Geneva, and 15 ells at Geneva are worth 28 ells at Dantzic; Quere, how many ells at Dantzic are equal to 45 ells at Amsterdam? Answer, 50%. With the preceding, I finish the examples of arbitrations, having therein given an instance of every case that can happen in this curious branch of arithmetic, so that any addition would be superfluous, and unnecessarily encroach on my reader's time, with out adding any thing to his instruction; which I believe he will find more truly promoted in this short tract, than he would by consulting the many volumes published on the subject; as he has here the reasons for all the operations proposed, added to the solutions, which other authors have contented themselves with giving alone. I have only one remark to add to this chapter, which is, that those who are well skilled in this business generally agree to support their correspondent's commission free on all sides; wherefore, when it is considered what opportunities the merchant, or remitter of general credit and correspondence has, the benefits, by a judicious combination, or comparison of the exchange throughout Europe, are far more considerable than most people imagine. Those, who are shrewd exchangers themselves generally make choice for these negociations of correspondents not less so; and then they are certain of the profits they have in view, for they know that their orders will lie by unexecuted till the advantageous crisis arrives. CONCERNING BANKRUPTCY. Felix quem faciunt aliena pericula cautum. THE preceding chapters contain the whole theory and practice of commerce; and I hope I have been so plain and explicit in them as to render myself intelligible, and to answer my design of conveying instruction to those who have given themselves the trouble of seeking it in this work. I have now gone through every branch of commerce, and purposely reserved this catastrophe of an imprudent or mistaken conduct to the last, as the properest place for it. And I could wish that the misfortunes, consequent to an ill judged and indiscreet course or management, did not render this additional chapter necessary for the guidance of those who have unhappily incurred the want of it, through the gloomy vale of trouble: for could trade be always carried on with that credit which is necessary to support it, and with that success which every one hopes for, by adventuring in it, it would be the most pleasant as well as the most beneficial employ that any could undertake; but as we are all subject to the uncertain fluctuating state of humanity, our serenity will sometimes be interrupted, and our calms and sunshine be obscured and ruffled by the clouds and tempests of adversity, as well in this as in all other walks of life, and the smoothpaths of business will often become rugged and strewed with thorny troubles, to the utter change of the pleasing scene, by introducing inevitable losses and misfortunes, instead of the advantages we flattered ourselves with the hopes of reaping from our commercial engagements. Thus the best laid scheme may be overset by some intervening occurrence, for a trifling accident frequently demonstrates the weakness of our judg ment, and the shallowness of our designs; though whilst we submit our actions to the directions of prudence, and suffer our steps to be guided by her, we may justly be said to act like reasonable men; and however providence, for our punishment, may dispose otherwise, we certainly take the best and likeliest method of securing to ourselves that success and prosperity which we are soliciting: and in order to guard against their reverse, permit me to intrude so long on your patience as to expatiate a little on the subject of bankruptcy, and to shew the causes which naturally drive men to split on that rock, where so many thousands have been wrecked, reminding you of my motto, where you will see the great poet from whom I have taken it, pronounce that man happy who has been made wise by the misfortunes of others. Mr. Savary says, in his Parfait Negociant, that the failures of merchants oftener proceed from ignorance, imprudence, and ambition, than from malice and design; and I am entirely of his opinion, more especially in this kingdom: for, whoever reflects on the consequences of fraud and deceit under a statute of bankruptcy here, I should think would avoid it with the utmost care; as he not only exposes himself to the penal laws, but can never expect to be cleared by his creditors, though he should not be convicted under the former, and consequently is rendered incapable of making any thing his own for the future. But as I hope none of my readers are of this number, I shall direct my advice to those on whom I am in hopes it may prevail, and endeavour to guide them from running on the afore-mentioned shoals, by persuading them to aim at the dissipation of the fogs of ignorance by the sunshine of learning; to correct imprudence, and to banish vain glory or ambition. The first may be done by a strict application to business, whilst under the tuition of a merchant in an apprenticeship; or if this has been neg lected, and my reader comes into trade without such usual form and instruction, I hope this work will supply the deficiency, not only by teaching every one how to act in the branch of commerce he has elected, but by displaying to him a general trade, that he may have all the variety possible to chuse out of: sound judgment and common sense duly applied, will be too hard for imprudence; and ambition, I should think, would be checked by displaying the fatal consequences of it; and thus a failure proceeding from all or any of the above-mentioned causes may be prevented; though still there remains one, from which no foresight or care can defend us, I mean the immediate dispositions of Providence; whereas the above are but secondary, to which we ought cheerfully to submit with a perfect resignation, and never murmur nor repine at any of his dispensations, in a full assurance that he will afford support and comfort under the affliction, to every one who sincerely trusts in him, and when he sees con venient, will give a happy release from it. It is true these are hard lessons to mankind, and rendered more irksome by the barbarous treatment the unhappy too commonly meet with; for though it is natural to imagine, that a man who has been truly honest in all his dealings, and esteemed for his integrity, should on a reverse of fortune meet with that pity and kind usage he has shewn to others under similar distresses; yet experience convinces us that this is rarely the case; on the contrary, it is generally found that though friends may seem many and staunch in the time of prosperity, yet on a change of circumstances they will drop off like blasted fruit, quite forgetful of favours shewn to and kindnesses done them, and at the time you become bankrupt in your fortune, you will certainly find them so in affection and returns of gratitude: favours seem no longer regarded than while you are in a capacity to continue them, and obligations are thrust among the number of the non-entities, or at least are become such unfashionable things, as only to be owned by the conscientious and benevolent. Acts of beneficence are not to be expected from creditors, whose losses generally sour their tempers, and keep their resentments warm against the unhappy occasion of them, even to the extinction sometimes of humanity. But one should think that the lamentations of a fallen familiar and intimate, frequently heightened by the tears of a tender wife, and affecting cries of their innocent children, would be prevailing objects to excite compassion from those who have always experienced a courteous and gentle treatment from the unhappy sufferers; but philanthrophy is almost lost among us, and mankind are grown so degenerate, as to become insensible to the distresses of others; the unfortunate man is now equally shunned with the infected one, and the best usage he finds is coldness and reserve from almost every individual of his acquaintance, whilst the worst is swelled to an immoderate height by the insults offered him; contumelies and reproaches are thrown out against him; and abuses, invectives, and unmerited aspersions are frequently added to complete the catalogue, and augment his miseries; few regard him, fewer still caress him, and the paucity of those who protect or assist him, is reduced to the lowest degree of comparison. This is generally the case with those whom Fortune has prostrated and laid low; though there is still a small remnant of men among us, who are actuated by every tender sentiment of humanity, and, as opportunities offer, exercise every social virtue; whose compassion at least is extended to all afflicted objects, and their charity stretched to the utmost limits that prudence and discretion can warrant; they remain uninfluenced by the example of their neighbours, and continue fixed and immoveable in the principles of goodness and benevolence; but these guardian angels are scarce, and even when found can, at best, only alleviate, and in some degree mitigate and take off the sharp edge of affliction, but they cannot restore lost credit and reputation; this is only to be done by the man himself, and the sole means is the making all the satisfaction to his creditors that his abilities will permit, either at present or in future, till his whole debts are discharged; for so long as any part of these remain unpaid, that obligation subsists. This lesson, honesty and a just reflection on things will teach men; and as the miseries subsequent to, and attendant on a failure, are extensive, it is natural to suppose the bare description will render every other persuasive superfluous, for avoiding the causes of such great unhappiness; therefore, I shall conclude this introduction with my best and sincerest wishes, that none of my readers may ever experience it, by adding one to the number of the unfortunate. The derivation of the word Bankrupt I have given under that of Banks and Bankers; ruptcy in and though, according to our laws such insolvents are generally esteemed a crafty, fraudulent, deceitful, and extravagant sort of persons, yet experience evinces the unjustness of this assertion, and that many unhappily fall into this dilemma through the badness of trade, or some inevitable accident, without bringing it on themselves either by extravagance or knavery. The laws of bankruptcy in England are therefore justly considered as laws calculated for the benefit of trade, and founded on the principles of humanity as well as justice; and to that end, they confer some privileges not only on Of Bank England. the creditors, but also on the bankrupt himself. On the creditors, by compelling the bankrupt to give up all his effects to their use, without any fraudulent concealment : on the bankrupt, by exempting him from the rigour of common law, whereby his person might be confined at the will of his creditor, though in reality he had no effects to satisfy the debt: whereas the law of bankrupts, taking into consideration the sudden and unavoidable losses to which men in trade are liable, has given them the liberty of their persons, and some pecuniary allowances, upon condition they surrender up their whole estate to be divided among their creditors.* But still it is cautious of encouraging prodigality and extravagance by this indulgence to debtors, and therefore it allows the benefit of the laws of bankruptcy to none but actual traders; since that set of men are, generally speaking, the only persons liable to accidental losses, and to an inability of paying their debts, without any fault of their own. I shall give a transcript of the acts now in force, and of the best reports and pleadings I can collect on the subject; and shall in the first place shew, What Persons may, or may not, be Bankrupts. Any person using the trade of Merchandize by way of Bargaining, in gross or retail, Exchange, Rechange, Bartery, Chevisance, 13 Eliz. c. 7. or otherwise, Or, seeking his trade or living by buying and selling, being a natural-born subject; 21 Jac. 1. An inn-keeper as such can be no bankrupt. Nor one victualling the fleet, though he sells the overplus to merchants. c. 19. 276. 291. 1 Show.96, A mere buying and selling brings not a man within the statute (for buying and sell- Skinner, ing of land will not make a man liable to be a bankrupt) but it is intended of such who 3. Mod. gain the greatest part of their living both by buying and selling of personal effects. 327, 328. Having a share in a ship, being a farmer, or keeping a boarding-school, makes not a 268: 3 Lev. bankrupt; buying only, or selling only, makes not a bankrupt, but buying in England, 309. Mich. and selling in Ireland does. I W. and Littleton, 1 Vern. John Ashley went from England in 1720, and resided in Barbadoes till 1735, where The case of he was a factor and a planter, and traded to England, by sending goods from his Sir Thomas plantation, and receiving goods back again bought in England, and he disposed of Mr. Papilgoods sent from England in Barbadoes, for merchants in England as a factor, and being greatly indebted came to England in 1737, and committing an act of bankruptcy, a 687. Raym. commission issued, and upon a question, whether he was within the statutes of bank 375.1 Syd. rupts; upon the authority of Bird and Sedgwick (where a Gentleman of the Temple Hardw, going to Lisbon, turning factor, trading to England, and breaking) was adjudged a Mich.1797. bankrupt. 411 per Chan. 1 Sal. 110. Crisp. and Where a man buys and sells under a particular restraint, as a commissioner of the Mar. 35. navy, or a farmer, he is not a seller within the statute. Pratt. Cro Sir Anthony Bateman had been a great merchant, and was Mayor of London, but Car. 549, had left off trade fifteen years; the court held he could not be a bankrupt upon a debt |