DOI Page / Citation link:
https://doi.org/10.11588/diglit.22140#0101
THE DEVELOPMENT OF CRED FT AGENCIES. 85
energetic defender of the landowner's rights, would not allow these
sentiments and sympathies to warp his judgment, when he got
into his bank, turned over his ledger, and noted the ominous
growth of his farming customers' liabilities.
There are occasions when the acuteness of a trader or a class
of traders in the same commodity leads them to anticipate a
scarcity, and that rise in prices which follows on a scarcity. Such
persons strain their credit to get a command of the market, and
sometimes succeed. But they more frequently fail, and for
the reason which I have quoted from Adam Smith. But their
failure may involve great losses to those who have unwisely assisted
them. Such was the case with the great leather failures some
twenty years ago. It is the fashion—I believe the use of the word
is transatlantic—to call these transactions rings or corners. Some-
times, again, persons have divided great gain from the operation
of an economical law, which I believe that I was the first person
to announce a quarter of a century ago. I noticed in collecting
prices that when there was a scarcity in an article of prime
necessity, the rise in price is always greatest in the commoner or
cheaper kinds of the article. The cause is plain enough. The
stint in the article causes a greater demand for inferior kinds.
Now I have known persons who have greatly prospered by dealing
on such occasions in what had previously been cheap goods. I
do not think that they formulated the law, but they got hold of
the fact.
More fortunate still is the person who by divination or private
information gets information that a change is meditated in the
customs. Some time ago the Government reduced the tea duties by
6d. in the pound. The intended change came to the knowledge of a
dealer in Mincing Lane. How the knowledge was obtained was
never, I believe, publicly divulged. Suspicion, however, fell on a
prominent official, who suddenly and completely escaped from
known embarrassments. The innocent or guilty recipient os the in-
telligence at once strained his capital (a large one) and his credit,
which naturally stood high, in the purchase of tea. He knew that
the lessening of the duty would be followed by a rise in price.
Suppose that 2d. in the sixpence went to the dealer, and the
public saved the 4d. It would not be disficult for a large and
energetic defender of the landowner's rights, would not allow these
sentiments and sympathies to warp his judgment, when he got
into his bank, turned over his ledger, and noted the ominous
growth of his farming customers' liabilities.
There are occasions when the acuteness of a trader or a class
of traders in the same commodity leads them to anticipate a
scarcity, and that rise in prices which follows on a scarcity. Such
persons strain their credit to get a command of the market, and
sometimes succeed. But they more frequently fail, and for
the reason which I have quoted from Adam Smith. But their
failure may involve great losses to those who have unwisely assisted
them. Such was the case with the great leather failures some
twenty years ago. It is the fashion—I believe the use of the word
is transatlantic—to call these transactions rings or corners. Some-
times, again, persons have divided great gain from the operation
of an economical law, which I believe that I was the first person
to announce a quarter of a century ago. I noticed in collecting
prices that when there was a scarcity in an article of prime
necessity, the rise in price is always greatest in the commoner or
cheaper kinds of the article. The cause is plain enough. The
stint in the article causes a greater demand for inferior kinds.
Now I have known persons who have greatly prospered by dealing
on such occasions in what had previously been cheap goods. I
do not think that they formulated the law, but they got hold of
the fact.
More fortunate still is the person who by divination or private
information gets information that a change is meditated in the
customs. Some time ago the Government reduced the tea duties by
6d. in the pound. The intended change came to the knowledge of a
dealer in Mincing Lane. How the knowledge was obtained was
never, I believe, publicly divulged. Suspicion, however, fell on a
prominent official, who suddenly and completely escaped from
known embarrassments. The innocent or guilty recipient os the in-
telligence at once strained his capital (a large one) and his credit,
which naturally stood high, in the purchase of tea. He knew that
the lessening of the duty would be followed by a rise in price.
Suppose that 2d. in the sixpence went to the dealer, and the
public saved the 4d. It would not be disficult for a large and