34 PREVENTION OF PRIVATE TRADE book ii
of silk. He ascertained by this test that his broker, having an understanding with the master of the mint, cheated him of 1 1/2\ or
2 per cent, on the quality of the gold and silver which was brought to
him from Japan, either in bar or in coin, and that the Company had been
defrauded of considerable sums.
The
broker is also able to defraud by having an understanding with the
master of the mint, or with the person who weighs the gold and silver
in bars, coin, or dust, by employing too heavy weights, or scales which
are not true. It is easy to prevent this fraud if the Commander,
assisted by his Council, has them weighed in his presence with a scale
and weights proved and stamped, which he keeps by him for the purpose.
One
of the most important observations that is to be made on the commerce
of the proposed Company and the discipline of its factors is this :—It
should forbid the merchants, sub-merchants, the scribes, and
sub-scribes, who serve under the Commanders, and the brokers, and also
these superior officers, from doing any trade on their own private
accounts, because having communication with all the artisans, and
obtaining by the correspondence from the other factories information as
to the articles of merchandise which will be saleable in the following
year, they do not fail to purchase them on their own account, and ship
them on the vessels of the Company to the addresses of their
correspondents, who share the gain.
The
Commander being himself interested, either by closing his eyes, or by a
too great laxity, permits them to make this profit on account of their
poor salaries.1 The captain of the vessel is in league with
them, because he secretly derives some advantage for allowing them to
load and unload. And inasmuch as these officers have little capital,
and desire to receive the price on the return of the vessel, they
direct their correspondents to sell at from 8 to 10 per cent, below
market price, which they can easily do, because, as I shall explain
further on, they do not pay custom dues either at Surat or at Gombroon,
and because they gain by this means about 26 per cent. ; and so this
causes a considerable injury to the Company, and particularly to
foreign merchants.
To remedy this disorder it is requisite to profit by the mistake 1 See p. 37.
