Memoir of the Life of Eli Whitney. 21 o 



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. 



One of 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- 

 ney 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 

 per cent, premium in addition to the lawful interest. This was in J 794. 

 In consequence of the numerous speculations in new lands into which 

 so many of our countrymen were deluded, and the want of confi- 

 dence created by the very application for a loan, the pressure for 

 money was continually increasing. In 1796, Mr. Whitney applied 

 to a 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- 

 kers, who are preying on the purse strings of the industrious, and was 

 informed, that he can procure the sum you wish at a premium of 

 twenty per cent, on the following conditions, viz. — You must make over 

 and deposit with hira public securities, such as funded stock, bank 

 stock, or any kind of State notes, or Connecticut reservation land cer- 

 tificates, sufficient, at the going prices, fully to secure the debt and 

 premium." In a more embarrassed state of Mr. Miller's private af- 

 fairs, several years afterwards, he paid the enormous interest of five, 

 six, and even seven per cent, per month. 



We have said that the loan contracted by Mr. Whitney in 1794, 

 at a premium of five per cent, in addition to the lawful interest, was 

 regarded as peculiarly favorable ; this is evident from the fact that, 

 during 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 it could be extended over a year. 



