r;

protective system to a great extent. In Saxony, where there are, comparatively speaking, the most manufacturers, and five-eighths of the whole of the spindles within the union, there are but the spinners in its favor the manufacturers have expressed themselves in very decided terms against it. The agricultural countries, such as Brunswick, Hessen, and several Prussian provinces, as Pomerania, East and West, Prussia, are all in favor of free trade. The Bavarian newspapers, as well as the Wurtemberg, Baden, Aix-la-Chapelle, and Berlin papers, all favor the protective system; formerly the Cologne papers did also, but they remain at present neutral; the Leipsic, Frankfort-on-the-Maine, Breslau, Stettin, and Koenigsberg papers, on the contrary, stick up for free trade. Of the governments, Bavaria, Wurtemberg, Baden, and Thuringen, are more or less inclined to the protective system, while Prussia, Saxony, Hessen, Brunswick, and Nassau-Frankfort (both having only one vote,) are for the existing system. Saxony was always in favor of free trade, but particularly in the last Custon-Congress it spoke decidedly against all increase of duty upon cotton and woollen yarn, and gave its refusal. It did make some mediating proposals concerning the duty upon cotton yarn, but Bavaria, Wurtemberg, and Baden, did not agree to them, nor the other governments to theirs, so it remained as it was. The government of Saxony has since published its intention to take the matter into serious consideration, whether in any future session it shall revert to its above-mentioned mediating proposals. There were, it says, considerations not to be overlooked, both in regard to raising the import duties upon cotton and linen yarn, and the measures now in question concerning drawbacks. Several numerously signed petitions from the manufacturing districts of Voightland, Upper-Lansitz, and the Erzgebirge, had been presented, showing how injurious advanced import duties would be. The assertions made in these petitions were confirmed by experience. And the language Saxony will use at the meeting, which takes place in Berlin, concerning yarn, may easily be supposed.*

Art. V. CAUSES OF FAILURE AMONG MEN OF BUSINESS.

IN the Merchants' Magazine for July, we published a few passages from the lecture of the Hon. Thomas G. Cary, with reference to the late Luman Reed, a grocer of New York, who, besides acquiring a large fortune, while actively engaged in trade, found time to cultivate a taste for the fine arts, and the means to encourage the artists. A variety of subjects are discussed in the lecture referred to, but by far the largest portion of it is occupied with an inquiry into the causes of frequent failures among men of business. The mercantile habits, and large experience of Mr. Cary, the author of the lecture, will doubtless secure for the subjoined remarks, on this subject, the attentive perusal of the man of business.

A crisis, as it is called, comes over us, and our new world seems to be coming to an end in common bankruptcy. But our experience, thus far, enables us to say that if the troubles have no immediate connection with any general change of public policy, they soon pass away.

The earth gives forth her increase annually. It is to be prepared for use, and taken for consumption; and that makes up the great business of the year, all over

* London Economist, June 20th, 1846.

the world; and, in the main, this business is always done. But occasionally there is too much of one thing, or too little of another, or some portion has been put in a wrong position, and there is temporary inconvenience, perhaps great alarm. But it is soon over.

When the derangement arises from a change in the policy of the government which requires a corresponding change in the habits of the community, great prudence and care are certainly required for a time, to avoid serious embarrassment. Yet those who have conducted their business on certain sound principles, which every person of common sense can understand, and who mean to adhere to those principles under all circumstances, are generally able to stand firm through the whole.

In truth, the failures that arise from inevitable misfortune alone, are not so numerous as they are generally supposed to be. In most cases insolvency is caused by mistakes that originate in personal character, and which would be seasonably corrected, if their dangerous tendency were clearly understood.

There seem to be two or three definite causes, to one or all of which, disasters of this nature may frequently be traced, all of them founded in a desire to get forward too fast. But whatever the causes may be, it is, at any rate, of peculiar importance to those who grow up in a country so free as ours to ascertain what they are, and to remember them. Under other governments, where the several classes of society are distinctly divided, and where it is difficult to change from one to another, the modes of business and of life in each class are established by customs and forms that have been founded in the experience of ages. The son commonly follows the steps of the father in the same way of life, and his ambition is usually limited to the desire of being foremost in his craft, whatever that may be. Landmarks appear everywhere to guide him in a course that has been well tried by others, and he can hardly leave it without being soon reminded that he is deviating. Here, it is not so. Each one is likely to take his own course, and to devise a method for himself; sometimes a very good one, but often defective, and generally without strict regard to any experience but his own. It is, therefore, the more important that he should carry with him, everywhere, those sound principles of action that serve as guides under all circumstances.

A leading cause of failure, is the mere ambition to be rich, which often defeats itself, and, as is well known, sometimes leads to ruin.

Another cause, probably, is aversion to labor. It was a maxim among the ancient heathens that the gods have sold to mankind everything that is desirable but existence, and that the price is labor. The sacred scriptures instruct us that labor is our lot for life, and our daily experience admonishes us of the truth of this. Yet there are many who mean not to work if they can avoid it. Without reflecting, perhaps, that they are setting themselves in opposition to a great law of our nature, they begin life with various plans, of their own invention, for shortening their term of labor as much as possible. Their whole scheme of action is founded in an ignoble desire to enjoy a large share of the good things that are accumulated solely by the labor of man, without making a fair contribution to the common stock by work of their own. The prospect of wealth obtained by lucky chances, in a lottery, or otherwise, appears as agreeable, in their view, as if it were the result of skill and of laborious services rendered to mankind; perhaps more so, because it comes speedily. They may be active in their occupation, perhaps, but their mode of proceeding is very different from what it would be, if a wise performance of duty, rather than an early escape from it, were their first object. Visions of great and sudden changes in the value of property, by which fortunes are rapidly made, and which they hope to have the sagacity to foresee, float in their view, and invite to overtrading and speculation that often prove in the result to have been by no means sagacious. They are the very people who are most wanting in the accurate and patient observation that foresees what is to come. There is some reason to hope that we are undergoing a favorable change in this respect. The tendency of our institutions, as has been observed by an able writer, to give to labor a degree of consideration and honor which it has never received elsewhere, is producing perceptible effects. The acquisitions of industri

ous exertion already obtain greater deference among us than estates of inheritance; while inactive leisure seems to be losing some of its attractions.

A third cause of mischief is the impatient desire to enjoy the luxuries of life before the right to them has been acquired in any way. The facilities of obtaining credit put it in the power of a large portion of the community to indulge their wishes, if they choose to do so, before the means of indulgence have been earned. Shallow, cant sayings, that have no foundation in truth, such as that "the world owes every man a living "-give countenance to misuse of this credit; and the virtues of prudence and frugality are put to an early test. But the world owes us nothing; and they who urge such idle claims upon it, usually receive, in the end, the repulse that is due to unjust demands.

In the fable of the pilgrim, it is said that when he became weary and disheartened at difficulties which he encountered, and doubted whether he could proceed in the rugged path that he was pursuing, he applied for advice to a hermit, who offered him a staff of wonderful virtue, that would give him all the aid that he needed, if he had but the courage to lean boldly upon it. The pilgrim almost shrank from the touch of it, for this staff was covered with sharp thorns, and the blood trickled from his hand as he grasped it. But, assured as he was of its marvellous power, he persevered with determination; and as he advanced, he found that, notwithstanding the pain, a surprising vigor was imparted to his frame. The thorns, too, became loosened, and fell off as he proceeded. The wounds in his hand soon healed, and he went cheerfully forward on his way. It was the staff of Self-Denial that had been given him; a main support to all those of us who have to make their own way through the rugged paths of life.

There is still another cause, arising from the want of some deeper principle, for distinguishing between right and wrong, than a reference merely to what is established as honorable in the society in which one happens to live. While most people are sufficiently upright for ordinary times, there are seasons, such as we have seen within the last ten years, when the very corner-stones of society seemed to be shaken, and those on whom a man may have relied for aid in case of difficulty are themselves in trouble; when the alternative before him is the humiliation and terror of immediate insolvency, or a resort to new hazards which could not be justified if explanation should become necessary. It makes a wide difference then, whether the course decided on be prompted by dread of the world, or by dread of self-condemnation. In one class of cases, there has been, through fruitless attempts to escape exposure, total wreck and destruction of property, with ruin to many around. In the opposite class, seasonable disclosure has led to preventive measures. Careful liquidation, and a just appropriation of what remained, have diminished evil consequences, and amounted, in some instances, to a full and honorable discharge of obligations. Results have shown, too, sometimes, that the resolute adoption of that course which was dictated by an unflinching adherence to integrity and truth, has proved it to be the very course that was the best, even in a mere worldly view, for skilful management in difficulty, and for avoiding failure altogether.

But the effect of this principle is not felt merely under desperate circumstances. It is constantly in operation to prevent their approach. Without it, a man who purchases goods is very apt to sign the promise that he gives for the payment with as little consideration as he has in passing over a bank-note, or the promise of another person. If people are willing to trust him for what he wishes to buy, he is not troubled with scruples in taking the credit, even if he doubts his own ability to pay; although the same man, perhaps, would refuse to promise verbally the performance of any specific act, if he doubted his ability to keep his word. He would regard that as a breach of honor.

But to a man who acts habitually on the deeper principle of integrity, other considerations arise in the giving of a note which runs in this way-" For value received, I promise to pay, &c."-He does not view the act as the mere execution of a formal instrument to complete a transaction in business. He is binding himself by a promise. If a doubt arises whether he shall be able to perform it, that doubt is by no means quieted within him by the reflection that, in case of failure,

he may obtain a legal discharge from the engagement. That broken promise would remain, to disturb his peace at the latest hour of life, although his creditor might forgive the breach, and the world forget it, as is often the case. And the consideration has its effect. The extent to which he desires credit is not the full extent to which the world are willing to give it. It is rather the extent of his own ability to pay, if the purchase should prove to be a bad one. Just because he is in earnest and means to perform, when he promises, by hard work and stern self-denial, if he cannot otherwise, he is cautious in imposing tasks of this nature upon himself. And this moderation, founded in principle, often proves to be a safeguard; for in numerous cases, those who make the largest purchases, find that, through unforeseen changes, they have the most to regret before their engagements become due. It is true that this cautious integrity may get on but slowly; but it has an accompaniment that pervades the character, and that shows itself in temperance, in frugality, in resolute untiring exertion; and it generally succeeds in attaining an independence that is honorable and happy, though it may be humble.

The man who is prepared to work through life, takes his labor with cheerful ease. The Saturday evening, which brings repose to man and beast, is not more agreeable to him than the renewal of his occupation on that Monday morning that lowers so gloomily over one, who has before him a week of embarrassment in meeting obligations that have been entered into with the delusive hope of rapid gain, and which he would rejoice to cancel, by returning his purchases, if he could retrace his steps.

The man of regular industry, too, and of principle, while he is free from deep anxiety for the future, usually gives it that due care which gradually improves his condition. As only a small portion of the world can ever be rich, he may not be likely to become so. Yet he has his chance. As he advances in life, he sees some of those who at times have almost excited his envy at their seeming prosperity, becoming involved in difficulty and falling far behind him. When the crisis comes, perhaps he finds, to his surprise, that he is looked to as a strong man; for he has something at command, and appears at ease, when almost every one about him, who has been more ready to give promises than he, is straitened, and must sell at a loss.

When property, then, seems to be losing its value and is neglected, opportunities rise around him of using what means he may have with an advantage that he had never anticipated, and his possessions begin to extend. Pursuing the same steady course, his strength increases. Without much calculation about it, he finds himself, perhaps, becoming comparatively rich. Causes are at work that may, possibly, make him quite so, without endangering his independence or tranquillity. If wealth comes, he makes sure of it. His spirit is not intoxicated, though his views expand with his acquisitions. The temptation to advance finds no treacherous ally within him, in a spirit of rivalry, ambition, or envy, urging him on to risk all that he may have, in grand undertakings, that are to outdo all who are before him, and dazzle his little world with the magnitude of his operations. Yet from no better spring of action, many a man, who acts without regard to the principles that we have been considering, inflated by early success, has plunged, or suffered himself to be drawn, with all that he has, into a sea of trouble, where he must eventually sink.

Some fifteen or twenty years ago, a great change took place, here, in the management of foreign commerce. It was through an invention for substituting a bill of exchange on London, which would be accredited in distant countries, in place of the usual outfit of money or goods on which foreign voyages had been conducted before. It was no longer necessary for a man to gather up his property and put it in hard money, or in a cargo newly purchased, on board ship. He was no longer reminded by every difficulty that he met, in providing the requisite funds, that he was putting at risk, perhaps the accumulations of his life, and led, therefore, to consider well what he was about. It was only necessary for him to satisfy the agent of some European banker that he was able to bear any positive loss that might occur at the end of a voyage; or, if not so, to give security

for a small portion of the credit which would cover such loss, and the whole business of the outfit was done in an hour. The right to draw the bills was given. and he had only to hire a vessel, if he did not own one, and dispatch her; or to join, as one, in making up a voyage, although the whole business was new to him. The vessel might be sent to Canton, for instance, for teas and silks. To pay for them, bills or orders to receive money in London would be given. Although the Chinamen would not want such bills for their own use, the English, from whom they purchase manufactured goods, would readily take the bills in payment; and the parties here would receive their vessel back with a full cargo, for which they would have to make payment in London after it should be sold.

The consequence was, that great facilities were offered to people to engage in business in which they had no previous experience; and for which they have, in many cases, suffered severely themselves, besides causing the downfall of several important banking houses in Europe, who had injudiciously supplied the means, and tempted them to such dangerous folly.

Within the same period there has been, on the other hand, great expansion of currency in this country. The value of real estate appeared to be increasing surprisingly, and men whose proper business is foreign commerce, have been tempted to withdraw their capital from its previous uses, while this contrivance of bills enabled them to continue their usual trade, and make great speculations in lands, in hopes of sudden wealth.

Failures have succeeded, and the unsuspicious creditor, who supposed that he had been selling his goods to a person employed solely in domestic manufactures, for instance, finds that it depended entirely upon the success of a Calcutta voyage, in which the purchaser had secretly engaged, whether he was ever to be paid. Or he finds that, while he supposed that he had sold his goods to a merchant whose attention was devoted to foreign trade, the real capital that was believed to be in that trade had been diverted to the purchase of prairies at the west, or cotton lands at the south; and that, in truth, it depended upon the tide of emigration to some new settlements in a wild country whether he was ever to get his payment.

If we suppose the principles of scrupulous integrity to have been in action among these parties, what would have been the effect? The purchaser would have said "I cannot subscribe a promise to pay for goods that I have bought under appearances which are likely to deceive others, without disclosing the truth. I must disclose the fact that my solvency is at risk from causes not generally known; or decline the purchase, although it is offered to me." But a spirit to do that would have operated sooner, and prevented the first entanglement in the new business, from a sense of justice to those to whom he was then indebted. And clearly it would have been for his own interest as well as theirs, that it should have been so. Experience has generally shown that any principle which would deter a man from diverting the capital from regular business before it can be easily spared, to make such new investments in a spirit of speculation, would operate fortunately for himself.

But when particular instances are adduced of advantages that seem to arise from a practical regard to conscientious scruples, the sceptical are apt to smile, as if the narrator were indulging his imagination, in order to make out something of poetical justice for the good, or as if he were asserting the intervention of a miraculous Special Providence, which diffidence of their own merit leads them to suppose could never be exercised in favor of persons so unworthy as themselves. We are now speaking, however, of matters which lie very much within the limit of our own control over events. "They are not sketches of poetical fancy, but well ascertained facts, founded in definite causes, just as sustenance and enjoyment begin with husbandry and gardening.

Instances may certainly be found of men who disregard the rules of wisdom and virtue, and yet become rich and powerful. But where one such man can be pointed out, a score of others who resemble him in everything but shrewdness and energy, may be mentioned who have disgracefully failed.

It may be, on the other hand, that among twenty men who act with strict re