32 DUTCH SYSTEM OF CREDIT book ii
on
account of their power, the frequent opportunities, and the absence of
their superiors from whom it is easy to conceal the truth, a Company is
able to remedy this evil, by making a careful selection of these two
officers, and by removing the pretext which the Dutch Commanders and
brokers urge, which is that they are constrained to sell quickly to the
merchants, wholesale, to avoid the costs of delay.
The
fault the Dutch make is, that their officers order all the goods they
wish to export from the Mogul Empire, to be made on credit from year to
year according to the instructions they have received from Batavia. The
cost of this advance is sometimes 12, sometimes 15 per cent., so that
as soon as their vessels, laden with merchandise, arrive at the port
where they are due, the goods must be sold promptly at the price which
the wholesale merchants offer to the brokers, in order to obtain
immediate funds to repay the advances made for the preparation of the
goods which their vessels carry away, and to obtain credit for the
manufacture of the following year.
It
is this which gives an opportunity for the understanding between the
Commanders and their brokers with the merchants, who profit by the
necessity which forces the sales, and besides, this private profit
diminishes that of the Company, and a part of the clearest gain is
expended in paying the interest of the loan of which we are about to
speak. For this interest mounts, from time to time, more or less,
according as the Commander and the broker agree to make it increase. In
the event of French vessels carrying the same goods as the Dutch, they
should carry in addition money for the advances to the artisans who
work in the provinces, and for a part of the price of the goods which
are being made for the following year. The Company by making this
advance escapes payment of the high interest on the loan, namely 12 to
15 per cent., which the Dutch pay ; and it will obtain the very best
goods at the lowest price. All the artisans will work more willingly
for it on account of this ready money.
The
cargo for the vessels should be in readiness before they arrive in
port. Being quickly laden they will be able to seize the good season
for their return. The Company will not be compelled by necessity to
sell at a low price to three or four
