The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-11-01
and COmAerchaI Ag0nctoD 9
New York.

hns Mercantile and COmnercla Agencies %
New York.
TIE Present financial crisis has attracted the gen.
cal attention Of the business community at least
mat portion Of 1t which Is engaged In the credit
system, to the mercantile and commercial agencies
Of New York. The prominence which has thus been
given to these establishments will render an account
Of them st this particular time peculiarly interesting
The object Of the mercantile or commercial agency
Is to afford such information to merchants and CON-
mission dealers as viii enable them to discriminate
between those who are and those who are not worthy
Of credit They are, in fact, nothing nor less
than intelligence Offices on an extensive scale, in
which the business qualifications and characters Of
the various dealers and obbers throughout the
try are entered record for reference by the mer
chants Of whom they may desire to purchase goods
On credit. The system originated in England where
i is, however, conducted on . somewhat diff.
ferent plan, and where it is 80 modified as
TO suit the laws and institutions of that country
AZ present there are four cOmmerc ial and mercan
tile agencies in this city, the first of which was es
tablishd about the year l840 and thus under differ
ent superintendents has existed to the present time
and is now doing an extensive business The origin Of
the business far this country is regarded dates
~ far back as the year 1927 when one Of the most
active travelling agents Of the New York merchants
employed exclusively in travelling throughout
large section Of the Union for the purpose Of report
ing the traders who were in the custom Of purchas
ing their goods in New York and other Northern
cities. His reports in regard to the means, the
character and business prospects Of these men were
Tor q time confined exclusively to the dry goods
trade; bat after few years he was engaged by the
merchants in other branches Of business to extend
his investigations to theirs also, and to report the
reliability of such as desired to enter iato
business relations with Them. The extern
iye field which was thus opened up
for this peculiar business led to the establish
ment Of q fixed agency in this city about thirteen
years after this gentleman entered upon this occnpa
lion. This establishment was commenced by law
yer Who with rather limited means for the collection
of such information prepared books OF reference for
one two States. 1t was his design to establish
sfice at which all who wished could procure infor-
nation as to the reliability OF purchasers who de-
sired to open an account with them. For the priv
lege thus afforded the merchant was required to pay
Q small annual subscription, which was partly ex.
pended in the employment OF travelling and local
agents. Till within the last ten or twelve years,
however, the operation of these commercial and
mercantile agencies has been confined to very few
States, but during this period they have extended
agents in every city and town of any consequence
throughout the country. This remark applies only
70 two Of the four agencies the Others being some
what circum scribed in their limits which embrace
q very few States. The business OF the first two,
however, has increased to such an extent that they
have been obliged to establish branches in Europe,
Of which four are in England one in Paris, aDd one,
we understand, is about being started in Bremen.
The travelling and local agents OF each OF the
larger establishments number about three thousand,
ana the whole force employed by all is about seven
thousand. II must not be supposed, however, that
these are engaged exclusively by the agencies, 81
the expense thus incurred would be far beyond their
means. These travelling agents receive the priDci-
pal part of their remuneration from the merchants
and commission houses in this city, in the fora OF
psr centage for the collection Of bills, and some
have been known to make mnch as 50 900 ont Of
one transaction In addition to this they are paid
according TO their services by the commercial and
mercantile agencies. The qualifications OF the loo
agents are thorough acquaintance with the bust
ness OF the different towns in which they reside;
they must also abjure politics, and the mo nent
they are known to be biased BY favo-
ritism or prejudice towards persons whom
they reoort to the agency. they are imme-
iiafey dismissed from its service. Delnquen-
sies Of this description however, are SAID 70 De- very
agencies do not lay claim to infabiity yet the In
formation they have furnished has been generally
correct Their local and travelling agents make out
list of the dealers in each city-that 49, OF ell who
do business from four to twenty thousand dollars
. year and upwards-with their liabilities, their
means OF payment the extent Of their business and
their reputation in the community II man Ia
known TO be inattentve or careless he is report
ed and IL, the contrary, he attends TO his bust
ness, 10 honest, and bears good reputation among
those who know him, 30 much the better Tor him
self 50 far az the books OF the agency bear tes
tmony. These books are the record of the business
character OF over five hundred thousand merchants
and dealers all over the country but are not thrown
open as has been supposed TO all who may apply for
information. At least we have been told.
The mode of operation in this particular is expa-
nation and an illustration Of the character OF the
whole concern. The local travelling agent reports,
&C., mat ha at twl m the record of
the agency, and both OF which are duly inserted
under the head Of the town where they reside. The
one Is unreliable-is not only unreliable, but has
been perhaps in the State prison, has run mp bill
with former creditors TO the amount of thirty or
forty thousand dollars, and possesses, in word,
number Of other qualities which render him an I'M
bad points are duly entered upon the register Of the
agency, and when the merchant OF whom he asks
credit desires to be informed in regard TO hts reia-
bility, he Is simply informed that he Is not TO be
trusted Should no .ever ne desire 70 be minutely
Informed OF the reasons, he applies to the supenn-
Scndent of the agency, through whom, and through
whom alone. he obtain the particulars the clerks
being permitted TO deal only In generaties. III, on
the other band, dealer who has applied for goods
ON credit il favoraby reported by the local or ira
yelling agent, the clerk has full permission TO give
the whole record of his business merits and to rem
der full justice TO his many good qualities, so far a.
The register hears witness Those registers In them
selves very extensive documents, aud we were
told that in esta bishment they 50 nu nerous
ana 10 NAluhbie tnat bney hrt cssiHhtu NJ hhtIAy
thousand dollars. Each State In divided OF into
counties, and the counties again into towns aud all
are arranged In alphabet al order, that the names
OF ell who are entered can be found In legs than a
minute. AS despatch Is essential requisite In
this business, the necessity OF such an arrangement
In at once obvious.
The numser of clerks employed In the various
branch agencies over the country is from ten 70
twelve hundred, Of which about two hundred and
fifty are employed In this city. The entire cost Of
working these different establishments estimated
a between 100000 and 100000 year OF which,
m has been insimated, a large portion cones
out OF the pockets Of the merchants. But although
these establishments derive their support from the
merchants, who pay them from fifty TO five hundred
dollars per each, according TO the exten. OF
their business and their demands upon the agency,
they do not rely altogether upon the information
which they obtain from their record. A good bust
,... an frusa an mnch III not more IN hs percpp-