298 Textiles and Textile Materials Trades 



cluthier b}' partiality in the time of sales and in the longer or shorter 

 period during which they retained the proceeds; naturally they favored 

 the richer and larger dealers/ and the poorer became very subservient 

 to their factors. 



The factors developed an extensive system of business credit, which 

 in turn furthered their dominance in the wool and woolens trade. The 

 first occasion of this arose through the necessities of foreign trade. 

 A six-months' credit was given to the merchant for the payment of 

 the cloth he bought at the Hall. The merchants paid their purchases 

 by drawing drafts on their foreign correspondents, but it was needful 

 that the bills of lading be received abroad before the drafts could be 

 accepted with safety. During this interim the credit was allowed.^ 

 But it appears the standard rule of six months' credit was not adhered 

 to and payments to the clothiers were dilatorily made in nine, twelve, 

 or fifteen months. The clothier was forced in turn to buy his mate- 

 rials on credit; and so on through a succession of buyers.^ In case the 

 clothier fell into such straits that he was compelled to draw upon the 

 factor before the sales' proceeds were due or before the factor saw fit 

 to make payment, the factor was in a position to assess extravagant 

 rates for the advance. ■* The holding-up of these proceeds was a 

 source of much profit. They were invested in Spanish wool ; a monop- 

 oly of the purchase of this article was gained by them; the clothier 

 was then constrained to secure his Spanish wool from the factor's 

 warehouse and have it charged on his account; since a clothier used 

 on an average about eighty packs a year and the factor demanded 

 £4 per pack for service, the factorage for the foreign wool alone 

 averaged £320 per annum per clothier; and this was really a charge 

 paid by the clothier upon his own money.'' On the other hand, 

 this delay in turning over the proceeds of sales gave the factors a 

 like economic control over the merchants "for the Factors ha\dng so 

 great a stock of the West Country Clothiers in their hands . . . 

 can give what credit they please, and can, and do make whomsoever 

 they please Merchants, or turn Merchants themselves . . .'"^ 



1 "Ancient Trades deca3ed," 11, quoted in Smith, INIemoirs, I, 322. 



* J. B., Interest of Gr. Br. Considered, 22. 



^ "Clothiers Complaint," 9; "Abstract of Grievances," 6; Smith, Memoirs, II, 

 311. 



*■ "Case of the Clotliiers and Weavers," quoted in Smith, Memoirs, II, 312. 



^ For the facts see "The Case of the Clothiers and Weavers," quoted in Smith, 

 Mem., II, 310-12. 



° "Trade of England revived," 12. 



