Memoir of the Life of Eli Whitney. 213 
had laid open to them. Nor did they at first, in general, contem- 
plate availing themselves of the invention unlawfully. But the minds 
of the more honorable class of planters were afterwards deluded by 
various artifices, set on foot by designing men, with the view of rob- 
bing Mr. Whitney of his just right. To these we shall advert more 
particularly hereafter. 
eof the greatest difficulties experienced by men of enterprise, 
at the period under review, was the extreme scarcity of money. In 
order to-carry on the manufacture of cotton gins, and to make ad- 
vances in the purchase of cotton, and establishments for ginning, to 
an extent in any degree proportioned to their wishes, Miller & Whit- 
hey required a much greater capital than they could command ; and 
the sanguine temperament of Mr. Miller, was constantly prompting | 
him to advance in hazards, much farther than the more cautious spir- 
it of Mr. Whitney would follow. But even the latter found it ne- 
cessary sometimes to borrow money at an enormous interest. The first 
loan (for two thousand dollars) was made on terms, which were deem- 
ed at that time peculiarly favorable ; yet the company were to pay five 
Percent. premium in addition to the lawful interest. This was in 1794. 
In Consequence of the numerous speculations in new lands into which 
80 many of our countrymen were deluded, and the want of confi- 
dence created by the very application for aloan, the pressure for 
ioney was continually increasing. In 1796, Mr. Whitney applied 
0a friend in Boston to raise money for him on a loan, and received 
the following reply. ‘I applied to one of those vultures called bro- 
Xets, who are preying on the purse strings of the industrious, and was 
formed, that he can procure the sum you wish at a premium of 
enty per cent. on the following conditions, viz.—- You must make over 
and deposit with hin public securities, such as funded stock, bank 
Stock, or any kind of State notes, or Connecticut reservation land cer- 
tifcates, Sufficient, at the going prices, fully to secure the debt and 
Premium.” In a more embarrassed state of Mr. Miller’s private af- 
lars, Several years afterwards, he paid the enormous interest of five, 
SX, and even seven per cent. per month. 
We have said that the loan contracted by Mr. Whitney in 1794, 
‘a premium of five per cent. in addition to the lawful interest, was 
regarded a8 peculiarly favorable; thisis evident from the fact that, 
“ating the same year, Mr. Miller urges him to contract a new loan, 
if Possible, for three thousand dollars at twelve or fourteen per cent. 
Provided jt could be extended over a year. 
