Illustrations of political economy, Volume 6 (of 9)Martineau, Harriet
History
Illustrations of political economy, Volume 6 (of 9)
Martineau, Harriet
Didactic fiction, English; Political fiction, English; Social problems -- Fiction
Heins rose as he replied that, in order to do so, he must hasten away to
consult his partner on the whole affair, and make arrangements for
diverting some of his capital from other channels in order to engage in
this new object. But he would see what could be done in a few hours.
Slyk assured him that there was no haste about the advance of capital,
as there was abundance in hand; that he had better view the ground
before he decided anything, or troubled his illustrious partner at so
busy a time with an important affair, of which all the details could not
yet be presented. Heins agreed not to trouble his partner further at
present than to send him a note of excuse for an absence of a few days
on a visit to Winkel.
Slyk told the truth when he said that he had at present abundance of
money for the carrying on of his enterprise. It by no means followed
that it was his own. Whose it was depended upon circumstances yet
future; depended, not only on whether the speculation should terminate
favourably or unfavourably, but on the length of time that it could be
carried on.
Slyk's plan was one very common among adventurers. It was to raise money
by drawing and re-drawing inland bills of exchange, in combination with
two men of a genius of as high an order as his own. The Dutch banks were
not all like the great bank of Amsterdam. There were some in every large
town in the states which were very like banks in general, and which were
subject to imposition from adventurers. From the coffers of two or three
of these banks Slyk's friends contrived to extract capital for his
purposes, taking the chance of the enterprise turning out well enough to
enable them to replace what they now borrowed on false pretences.
Slyk drew a bill upon honest Hugo Cats of Haerlem, payable two months
after date. Not that Cats owed Slyk anything; but in consideration of
being allowed to draw in his turn for the amount, with interest and
commission, he permitted the supposition of a debt. In order to avoid
suspicion, the re-drawing was done through a third party, Cats drawing
his bill, before the expiration of the two months, on Geysbuk of
Rotterdam; who, in his turn, was to draw on Slyk before the expiration
of the further two months. The bill returned on Slyk must bear, of
course, a great accumulation of interest and commission, but he trusted
to his enterprise to pay off all; and his immediate object was answered
in the bankers' gold being obtained which was to enable him to make his
first payments to his labourers, and to the proprietors of the vein of
turf from which he expected so much wealth. Interest was low, at this
time: a sure sign that the profits of stock were also low; but Slyk
intended that _his_ profits should be unlike those which followed every
other investment of capital, and justify, by the issue, his plan of
raising money by circulation.
Public-domain text, read in full here on John Shaqi.
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