Page:The Economic Journal Volume 1.djvu/299

 RICHARD CANTILLON 277 intrusted them with his Trade, subject to his control and for his profit. In other words, he remained as commandite. He then went into Italy, leaving his House ' in as good credit and busi- ness as any House'; but on his return to Paris, February 1720, 'having some reason to repent the great confidence he reposed in Mr. Loftus,' he turned him out, and appointed one John Hughes, who had been a banker in London, but was then resident in Paris, to manage the House. Cantilion had a nephew and namesake, Richard Cantilion, at that time about four years of age; and ' with a view to bring his nephew into Business and credit in the said House when he should come of Age,' he established a partnership between Richard Cantilion the younger and John Hughes, for twenty years. Cantilion senior found the whole capital, 50,00Q, livres Tournois, and was to have two-thirds of the profits, Hughes taking one-third. Hughes was to manage the whole business, and sign ' Cantilion and Hughes.' But Cantilion senior was to be in every respect supreme, and might oust Hughes or determine the partnership at his own pleasure. The nephew was to get nothing but what he might expect from his uncle's bounty. The uncle was not to be liable for any debts of the firm beyond his capital. own use when in Paris. commandite, ' which is known He reserved part of his House for his This, says Cantilion, was the relation of to all Merchants and Traders in Foreign parts to be a person who erects and fixes a House in business which he is supposed to encourage and support without his name being concerned in the said House or being himself liable to any transactions therein.' He opened a cash account with the firm, or made them his Paris bankers, and was so active and solicitous about the success of the House that probably few persons suspected the Richard Cantilion of the partnership to be the penniless nephew instead of the wealthy uncle. One of the first great strokes of business of the firm was on the 11th April, 1720, to lend to Lady Mary Herbert, daughter of the Earl of Powis, 215,333 13s. 8d. on two bills, payable at London on the 1st January following, amounting to 223,850, and accepted by the Hon. William Herbert, commonly called Lord Montgomery, brother of the borrower. Lady Mary was an in- trepid speculator in Mississippi stocks, and this operation was carried out by her with the object of avoiding a sale of stock, which she expected to rise. She therefore deposited eight hundred primes or ninety-three actions in the French India Company with the firm as security for the advance. Lord Montgomery borrowed 5,000 from Cantilion senior, and Joseph Gage, husband of Lady