The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1873-11-05
THE WORTH OF MERCANTILE
INTEGRITY

That " a good name is a pearl of great
price" is an old, trite, thread-barc saying,
but it is true nevertheless. 1t has, more
over, just had splendid illustration in
that great, selfish, busy emporium of the
country. In New York city, we expect to
find nothing bat selfish, exacting greed
everyone caring for himself, and letting his
friends and neighbors go where they pleas
ed. AS long as his own financial condition
was sound, the most cherished friend
might go to the wall for all the aid that
would be rendered, save upon the most am
pie security-and then it would be given
grudgingly and with hesitation amounting
to almost denial. Commercial honor and
mercantile integrity are, it proves, worth
something, even there. 1t is well known
that ii. b. Clatlin & Co. were financially
embarrassed, but before the bank presi-
dents could decide whether or not to grant
them the aid needed-reported at some
three millions of dollars-the danger was
over and they were us sound as ever. Their
friends and creditors, rs soon as it was
known that aid was wanted, stepped for
ward, without solicitation, and bridged
over the whole difficulty. Security was not
asked or required. And why? Because
they had established name for CONNER
cial honor and mercantile integrity which,
mt the present time, was of more value than
bonds, notes, mortgages or bank stock.
The effect of their safety from temporary
suspension was almost instantaneous upon
the market. Notwithstanding the Bank of
England had raised its rate of discount to
the almost unprecedented rate of eight per
cent, the market became buoyant," and
prices of stock advanced from one to five
per cent; and the close of business hours
showed more cheerful and hopeful phase
than has been witnessed since the first days
OF the panic A leading financier of New
York city related to reporter of the 7riJ-
me, an instance of the street business
honor and integrity of the firm, and of its
leading member-H. b. Claflin-which we
cannot forbcar quoting and we commend
it to the young men Of the country for their
instruction and imitation
In speaking of their embarrassments, be-
fore the aid was rendered, he said that the
faction of Claflin in 1867 was sufficient
guarantee that the creditors would not suf
Ter for any accommodation. When the
crash came in that year the firm of Clatiin,
Mellen " Co. suspended payment, like
hundreds of Others A meeting of the cred
itors was held, and the proposition was
made by committee, to whom the terms
of settlement were referred, that the firm
should give its notes for seventy per cent.
running from three to six months; when
these were paid, If the firm was able, it was
to give notes for the remaining thirty per
cent Then, when these were paid, inter
est was to be paid on the seventy per cent
and afterwards on the thirty per cent
These terms were deemed to be very liberal
toward the creditors, and the greater num-
Der unhesitatingly acceded to them A
few, however, demanded seventy per cent
in cash. Their claims against the firm were
purchased by the speaker and others at this
figure, and the settlement was made ON the
terms proposed by the committee. The firm
resumed business and the creditors were
paid in full, with interest More than this.
Mr.. Clafiin procured a list of those who had
sold their claims for less than their value.
visited them, and paid the difference, with
interest. He paid in this manner to per-
sons who had no legal claim against him,
$240, 900. When demonstrated with by his