The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1874-04-23
A Financial Operation.

The following story is told by the Bos.
ton Commercial Bulletin of financial
operation by which e3OO were made to
pay bills Of 1000:
"a financial transaction took place
during the war, at the Cape de Verde
Islands, 10 accomplish which, with the
means at hand, required some shrewd
maneuvering and q general disposition to
'lend hand all around. 1t seems that
on one occasion, during the war, the
Tuscarora, then cruising in those waters
in search of the Alabama and other crafts
of that ilk, put into little port in one OF
the above-named islands, out of coal, out
of provisions of many kinds, and, worse
than all, out of money, for the crisp green
backs which they had were not looked
upon by the benighted inhabitants of that
land as legal tender Something must
be done. The ship had credit with the
Barings, then the Governments financial
agents, aud the Captain had the authority
to draw for funds, but who was to cash
over s3O0 and the purchases already con-
tracted for amounted to nearly round
thousand.
"The Captain and the purser called on
the English Consul, who proved to be a
wellto-do and good.natured individual,
possessed of some small means and of
the confidence of the little community in
which he represented Her Majesty's Gov
eminent. 1t was arranged that he should
at once borrow every gold coin that he
could find in the island. This he Pro-
ceeded to do, and at the end of two or
three days he had got together about
e3OO. Then the Captain drew on Earrings
for this amount, in favor of the Consul,
who handed over the gold, about enough
to pay the coal bill. The Paymaster set
tied this and took his triplicate receipts.
Then the coal people loaned the whole
amount, $500, to the Consul, who again
gave it to the Captain, taking another bill
Of exchange on Barring for the same
amount. This time the Paymaster had
enough for three or four bills, which he
settled, leaving the gold behind him, but
was followed about by the Consul, who
Immediately borrowed it again, only to
turn it over again to the United States
officers, and take another bill of exchange
in return.
"This made nine hundred pounds. Bills
amounting to some seventy five pounds
remained; 80, the last time, the Captain
drew on the exhaustless Consul for q
round hundred, paid up everything, and
was about to leave for his ship when
complaint was made that the Americans
were taking gold out of the island. Sure
enough, the Captain and Paymaster had
kept the change, some twenty-five pounds,
and, to satisfy the public, the invaluable
Consul drew his draft ON Barings, where
he had not q penny of deposit, but on
whom he had drafts for $1,000, for just
the amount, giving it in return for the
cash, which remained on the island.
"Thus the Tuscarora was coaled and pro-
visioned for her cruise at an expense of
some $1,000, without bringing dollar
into port or carrying dollar away. This
is long story, but some of our financial
wlseacres, if they study it intelligently,
may get from it some ideas and sugges:
lions as to the value of confidence and
credit, and as to the immense amount of
business that can be safely done upon q
small basis, provided the basis is sound"