The Complete English Tradesman (1839 ed.) by Daniel Defoe

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The French nation are eminent for making a fine outside, when perhaps
within they want necessaries; and, indeed, a gay shop and a mean stock
is something like the Frenchman with his laced ruffles, without a shirt.
I cannot but think a well-furnished shop with a moderate outside is much
better to a tradesman, than a fine shop and few goods; I am sure it will
be much more to his satisfaction, when he casts up his year's account,
for his fine shop will weigh but sorrily in his account of profit and
loss; it is all a dead article; it is sunk out of his first money,
before he makes a shilling profit, and may be some years a-recovering,
as trade may go with him.

It is true that all these notions of mine in trade are founded upon the
principle of frugality and good husbandry; and this is a principle so
disagreeable to the times, and so contrary to the general practice, that
we shall find very few people to whom it is agreeable. But let me tell
my young tradesmen, that if they must banish frugality and good
husbandry, they must at the same time banish all expectation of growing
rich by their trade. It is a maxim in commerce, that money gets money,
and they that will not frugally lay up their gain, in order to increase
their gain, must not expect to gain as they might otherwise do;
frugality may be out of fashion among the gentry, but if it comes to be
so among tradesmen, we shall soon see that wealthy tradesmen will be
hard to find; for they who will not save as well as gain, must expect to
go out of trade as lean as they began.

Some people tell us indeed in many cases, especially in trade, that
putting a good face upon things goes as far as the real merit of the
things themselves; and that a fine, painted, gilded shop, among the
rest, has a great influence upon the people, draws customers, and brings
trade; and they run a great length in this discourse by satirising on
the blindness and folly of mankind, and how the world are to be taken in
their own way; and seeing they are to be deluded and imposed upon in
such an innocent way, they ought to be so far deluded and imposed upon,
alluding to the old proverbial saying, '_Si populus vult decipi,
decipiatur;' _that it is no fraud, no crime, and can neither be against
conscience, nor prudence; for if they are pleased with a show, why
should they not have it? and the like.

This way of talking is indeed plausible; and were the fact true, there
might be more in it than I think there is. But I do not grant that the
world is thus to be deluded; and that the people do follow this rule in
general--I mean, go always to a fine shop to lay out their money.
Perhaps, in some cases, it may be so, where the women, and the weakest
of the sex too, are chiefly concerned; or where the fops and fools of
the age resort; and as to those few, they that are willing to be so
imposed upon, let them have it.

But I do not see, that even this extends any farther than to a few
toy-shops, and pastry-cooks; and the customers of both these are not of
credit sufficient, I think, to weigh in this case: we may as well argue
for the fine habits at a puppet-show and a rope-dancing, because they
draw the mob about them; but I cannot think, after you go but one degree
above these, the thing is of any weight, much less does it bring credit
to the tradesman, whatever it may do to the shop.

The credit of a tradesman respects two sorts of people, first, the
merchants, or wholesale men, or makers, who sell him his goods, or the
customers, who come to his shop to buy.

The first of these are so far from valuing him upon the gay appearance
of his shop, that they are often the first that take an offence at it,
and suspect his credit upon that account: their opinion upon a
tradesman, and his credit with them, is raised quite another way,
namely, by his current pay, diligent attendance, and honest figure; the
gay shop does not help him at all there, but rather the contrary.

As to the latter, though some customers may at first be drawn by the gay
appearance and fine gilding and painting of a shop, yet it is the well
sorting a shop with goods, and the selling good pennyworths, that will
bring trade, especially after the shop has been open some time: this,
and this only, establishes the man and the credit of the shop.

To conclude: the credit raised by the fine show of things is also of a
different kind from the substantial reputation of a tradesman; it is
rather the credit of the shop, than of the man; and, in a word, it is no
more or less than a net spread to catch fools; it is a bait to allure
and deceive, and the tradesman generally intends it so. He intends that
the customers shall pay for the gilding and painting his shop, and it is
the use he really makes of it, namely, that his shop looking like
something eminent, he may sell dearer than his neighbours: who, and what
kind of fools can so be drawn in, it is easy to describe, but satire is
none of our business here.

On the contrary, the customers, who are the substantial dependence of a
tradesman's shop, are such as are gained and preserved by good usage,
good pennyworths, good wares, and good choice; and a shop that has the
reputation of these four, like good wine that needs no bush, needs no
painting and gilding, no carved works and ornaments;[31] it requires
only a diligent master and a faithful servant, and it will never want a
trade.

FOOTNOTES:

[29] [In another place, the author recommends a light stock, as showing
a nimble trade. There can be little doubt that he is more reasonable
here. A considerable abundance of goods is certainly an attraction to a
shop. No doubt, a tradesman with little capital would only be incurring
certain ruin having a larger stock than he could readily pay for. He
must needs keep a small stock, if he would have a chance at all of doing
well in the world. But this does not make it the less an advantage to a
tradesman of good capital to keep an abundant and various stock of
goods.]

[30] [It is really curious to find in this chapter the same contrast
drawn between the _old_ and the _new_ style of fitting up shops, and
carrying on business, as would be drawn at the present day by nine out
of every ten common observers. The notion that the shops of the past age
were plain, while those of the present are gaudy, and that the tradesmen
of a past age carried on all their business in a quiet way and with
little expense, is as strongly impressed on the minds of the present
generation, as it is here seen to have been on those of Defoe's
contemporaries, a hundred and twenty years ago, although it is quite
impossible that the notion can be just in both cases. The truth probably
is, that in Defoe's time, and at all former times, there were
conspicuous, but not very numerous, examples of finely decorated shops,
which seemed, and really were, very much of a novelty, as well as a
rather striking exception from the style in which such places in general
were then, and had for many years been furnished. So far, however, from
these proving, as Defoe anticipates, a warning to future generations,
the general appearance of shops has experienced a vast improvement since
those days; and the third-rate class are now probably as fine as the
first-rate were at no distant period. At the same time, as in the reign
of the first George, we have now also a few shops fitted up in a style
of extraordinary and startling elegance, and thus forming that contrast
with the general appearance of shops for the last forty years, which
makes old people, and many others, talk of all the past as homely and
moderate, and all the present as showy and expensive.]

[31] [The author seems here to carry his objections to decoration to an
extreme. Good usage, good pennyworths, good wares, and good choice, are
doubtless the four cardinal points of business; but a handsome shop also
goes a considerable way in attracting customers, and is a principle
which no prudent tradesman will despise.]

CHAPTER XX

OF THE TRADESMAN'S KEEPING HIS BOOKS, AND CASTING UP HIS SHOP

It was an ancient and laudable custom with tradesmen in England always
to balance their accounts of stock, and of profit and loss, at least
once every year; and generally it was done at Christmas, or New-year's
tide, when they could always tell whether they went backward or forward,
and how their affairs stood in the world; and though this good custom is
very much lost among tradesmen at this time, yet there are a great many
that do so still, and they generally call it _casting up shop. _To speak
the truth, the great occasion of omitting it has been from the many
tradesmen, who do not care to look into things, and who, fearing their
affairs are not right, care not to know how they go at all, good or bad;
and when I see a tradesman that does not cast up once a-year, I conclude
that tradesman to be in very bad circumstances, that at least he fears
he is so, and by consequence cares not to inquire.

As casting up the shop is the way to know every year whether he goes
backward or forward, and is the tradesman's particular satisfaction, so
he must cast up his books too, or else it will be very ominous to the
tradesman's credit.

Now, in order to doing this effectually once a-year, it is needful the
tradesman should keep his books always in order; his day-book duly
posted, his cash duly balanced, and all people's accounts always fit for
a view. He that delights in his trade will delight in his books; and, as
I said that he that will thrive must diligently attend his shop or
warehouse, and take up his delight there, so, I say now, he must also
diligently keep his books, or else he will never know whether he thrives
or no.

Exact keeping his books is one essential part of a tradesman's
prosperity. The books are the register of his estate, the index of his
stock. All the tradesman has in the world must be found in these three
articles, or some of them:--

Goods in the shop; Money in cash; Debts abroad.

The shop will at any time show the first of these upon a small stop to
cast it up; the cash-chest and bill-box will show the second at demand;
and the ledger when posted will show the last; so that a tradesman can
at any time, at a week's notice, cast up all these three; and then,
examining his accounts, to take the balance, which is a real trying what
he is worth in the world.

It cannot be satisfactory to any tradesman to let his books go
unsettled, and uncast up, for then he knows nothing of himself, or of
his circumstances in the world; the books can tell him at any time what
his condition is, and will satisfy him what is the condition of his
debts abroad.

In order to his regular keeping his books, several things might be said
very useful for the tradesman to consider:

I. Every thing done in the whole circumference of his trade must be set
down in a book, except the retail trade; and this is clear, if the goods
are not in bulk, then the money is in cash, and so the substance will be
always found either there, or somewhere else; for if it is neither in
the shop, nor in the cash, nor in the books, it must be stolen and lost.

II. As every thing done must be set down in the books, so it should be
done at the very time of it; all goods sold must be entered in the books
before they are sent out of the house; goods sent away and not entered,
are goods lost; and he that does not keep an exact account of what goes
out and comes in, can never swear to his books, or prove his debts, if
occasion calls for it.

I am not going to set down rules here for book-keeping, or to teach the
tradesman how to do it, but I am showing the necessity and usefulness of
doing it at all. That tradesman who keeps no books, may depend upon it
he will ere long keep no trade, unless he resolves also to give no
credit. He that gives no trust, and takes no trust, either by wholesale
or by retail, and keeps his cash all himself, may indeed go on without
keeping any books at all; and has nothing to do, when he would know his
estate, but to cast up his shop and his cash, and see how much they
amount to, and that is his whole and neat estate; for as he owes
nothing, so nobody is in debt to him, and all his estate is in his shop;
but I suppose the tradesman that trades wholly thus, is not yet born, or
if there ever were any such, they are all dead.

A tradesman's books, like a Christian's conscience, should always be
kept clean and clear; and he that is not careful of both will give but a
sad account of himself either to God or man. It is true, that a great
many tradesmen, and especially shopkeepers, understand but little of
book-keeping; but it is as true that they all understand something of
it, or else they will make but poor work of shopkeeping.

I knew a tradesman that could not write, and yet he supplied the defect
with so many ingenious knacks of his own, to secure the account of what
people owed him, and was so exact doing it, and then took such care to
have but very short accounts with any body, that he brought up his
method to be every way an equivalent to writing; and, as I often told
him, with half the study and application that those things cost him, he
might have learned to write, and keep books too. He made notches upon
sticks for all the middling sums, and scored with chalk for lesser
things. He had drawers for every particular customer's name, which his
memory supplied, for he knew every particular drawer, though he had a
great many, as well as if their faces had been painted upon them; he had
innumerable figures to signify what he would have written, if he could;
and his shelves and boxes always put me in mind of the Egyptian
hieroglyphics, and nobody understood them, or any thing of them, but
himself.

It was an odd thing to see him, when a country-chap, came up to settle
accounts with him; he would go to a drawer directly, among such a number
as was amazing: in that drawer was nothing but little pieces of split
sticks, like laths, with chalk-marks on them, all as unintelligible as
the signs of the zodiac are to an old school-mistress that teaches the
horn-book and primer, or as Arabic or Greek is to a ploughman. Every
stick had notches on one side for single pounds, on the other side for
tens of pounds, and so higher; and the length and breadth also had its
signification, and the colour too; for they were painted in some places
with one colour, and in some places with anther; by which he knew what
goods had been delivered for the money: and his way of casting up was
very remarkable, for he knew nothing of figures; but he kept six spoons
in a place on purpose, near his counter, which he took out when he had
occasion to cast up any sum, and, laying the spoons in a row before him,
he counted upon them thus:

One, two, three, and another, one odd spoon, and t'other | | | | | |

By this he told up to six; if he had any occasion to tell any farther,
he began again, as we do after the number ten in our ordinary
numeration; and by this method, and running them up very quick, he would
count any number under thirty-six, which was six spoons of six spoons,
and then, by the strength of his head, he could number as many more as
he pleased, multiplying them always by sixes, but never higher.

I give this instance to show how far the application of a man's head
might go to supply the defect, but principally to show (and it does
abundantly show it) what an absolute necessity there is for a tradesman
to be very diligent and exact in keeping his books, and what pains those
who understand their business will always take to do it.

This tradesman was indeed a country shopkeeper; but he was so
considerable a dealer, that he became mayor of the city which he lived
in (for it was a city, and that a considerable city too), and his
posterity have been very considerable traders in the same city ever
since, and they show their great-grandfather's six counting spoons and
his hieroglyphics to this day.

After some time, the old tradesman bred up two of his sons to his
business, and the young men having learned to write, brought books into
the counting-house, things their father had never used before; but the
old man kept to his old method for all that, and would cast up a sum,
and make up an account with his spoons and his drawers, as soon as they
could with their pen and ink, if it were not too full of small articles,
and that he had always avoided in his business.

However, as I have said above, this evidently shows the necessity of
book-keeping to a tradesman, and the very nature of the thing evidences
also that it must be done with the greatest exactness. He that does not
keep his books exactly, and so as that he may depend upon them for
charging his debtors, had better keep no books at all, but, like my
shopkeeper, score and notch every thing; for as books well kept make
business regular, easy, and certain, so books neglected turn all into
confusion, and leave the tradesman in a wood, which he can never get out
of without damage and loss. If ever his dealers know that his books are
ill kept, they play upon him, and impose horrid forgeries and falsities
upon him: whatever he omits they catch at, and leave it out; whatever
they put upon him, he is bound to yield to; so that, in short, as books
well kept are the security of the tradesman's estate, and the
ascertaining of his debts, so books ill kept will assist every knavish
customer or chapman to cheat and deceive him.

Some men keep a due and exact entry or journal of all they sell, or
perhaps of all they buy or sell, but are utterly remiss in posting it
forward to a ledger; that is to say, to another book, where every parcel
is carried to the debtor's particular account. Likewise they keep
another book, where they enter all the money they receive, but, as
above, never keeping any account for the man; there it stands in the
cash-book, and both these books must be ransacked over for the
particulars, as well of goods sold, as of the money received, when this
customer comes to have his account made up; and as the goods are
certainly entered when sold or sent away, and the money is certainly
entered when it is received, this they think is sufficient, and all the
rest superfluous.

I doubt not such tradesmen often suffer as much by their slothfulness
and neglect of book-keeping, as might, especially if their business is
considerable, pay for a book-keeper; for what is such a man's case,
when his customer, suppose a country dealer, comes to town, which
perhaps he does once a-year (as in the custom of other tradesmen), and
desires to have his account made up? The London tradesman goes to his
books, and first he rummages his day-book back for the whole year, and
takes out the foot[32] of all the parcels sent to his chapman, and they
make the debtor side of the account; then he takes his cash-book, if it
deserves that name, and there he takes out all the sums of money which
the chapman has sent up, or bills which he has received, and these make
the creditor side of the account; and so the balance is drawn out, and
this man thinks himself a mighty good accountant, that he keeps his
books exactly; and so perhaps he does, as far as he keeps them at all;
that is to say, he never sends a parcel away to his customer, but he
enters it down, and never receives a bill from him, but he sets it down
when the money is paid; but now take this man and his chap, together, as
they are making up this account. The chapman, a sharp clever tradesman,
though a countryman, has his pocket-book with him, and in it a copy of
his posting-book, so the countrymen call a ledger, where the London
tradesman's accounts are copied out; and when the city tradesman has
drawn out his account, he takes it to his inn and examines it by his
little book, and what is the consequence?

If the city tradesman has omitted any of the bills which the country
tradesman has sent him up, he finds it out, and is sure to put him in
mind of it. 'Sir,' says he, 'you had a bill from me upon Mr A.G. at such
a time, for thirty pounds, and I have your letter that you received the
money; but you have omitted it in the account, so that I am not so much
in your debt by thirty pounds, as you thought I was.'

'Say you so!' says the city tradesman; 'I cannot think but you must be
mistaken.'

'No, no!' says the other, 'I am sure I can't be mistaken, for I have it
in my book; besides, I can go to Mr A.G., whom the bill was drawn upon,
and there is, to be sure, your own endorsement upon it, and a receipt
for the money.'

'Well,' says the citizen, 'I keep my books as exact as any body--I'll
look again, and if it be there I shall find it, for I am sure if I had
it, it is in my cash-book.'

'Pray do, then,' says the countryman, 'for I am sure I sent it you, and
I am sure I can produce the bill, if there be occasion.'

Away goes the tradesman to his books, which he pretends he keeps so
exact, and examining them over again, he finds the bill for thirty
pounds entered fairly, but in his running the whole year over together,
as well he might, he had overlooked it, whereas, if his cash-book had
been duly posted every week, as it ought to have been, this bill had
been regularly placed to account.

But now, observe the difference: the bill for thirty pounds being
omitted, was no damage to the country tradesman, because he has an
account of it in his book of memorandums, and had it regularly posted in
his books at home, whatever the other had, and also was able to bring
sufficient proof of the payment; so the London tradesman's omission was
no hurt to him.

But the case differs materially in the debtor side of the account; for
here the tradesman, who with all his boasts of keeping his books
exactly, has yet no ledger, which being, as I have said, duly posted,
should show every man's account at one view; and being done every week,
left it scarce possible to omit any parcel that was once entered in the
day-book or journal--I say, the tradesman keeping no ledger, he looks
over his day-book for the whole year past, to draw up the debtor side of
his customer's account, and there being a great many parcels, truly he
overlooks one or two of them, or suppose but one of them, and gives the
chapman the account, in which he sums up his debtor side so much,
suppose L136, 10s.: the chapman examining this by his book, as he did
the cash, finds two parcels, one L7, 15s., and the other L9, 13s.,
omitted; so that by his own book his debtor side was L153, 18s.; but
being a cunning sharp tradesman, and withal not exceeding honest, 'Well,
well,' says he to himself, 'if Mr G. says it is no more than L136, 10s.
what have I to do to contradict him? it is none of my business to keep
his books for him; it is time enough for me to reckon for it when he
charges me.' So he goes back to him the next day, and settles accounts
with him, pays him the balance in good bills which he brought up with
him for that purpose, takes a receipt in full of all accounts and
demands to such a day of the month, and the next day comes and looks out
another parcel of goods, and so begins an account for the next year,
like a current chapman, and has the credit of an extraordinary customer
that pays well, and clears his accounts every year; which he had not
done had he not seen the advantage, and so strained himself to pay, that
he might get a receipt in full of all accounts.

It happens some years after that this city tradesman dies, and his
executors finding his accounts difficult to make up, there being no
books to be found but a day-book and a cash-book, they get some skilful
book-keeper to look into them, who immediately sees that the only way to
bring the accounts to a head, is to form a ledger out of the other two,
and post every body's account into it from the beginning; for though it
were a long way back, there is no other remedy.

In doing this, they come to this mistake, among a great many others of
the like kind in other chapmen's accounts; upon this they write to the
chapman, and tell him they find him debtor to the estate of the deceased
in such a sum of money, and desire him to make payment.

The country shopkeeper huffs them, tells them he always made up accounts
with Mr. G., the deceased, once a-year, as he did with all his other
chapmen, and that he took his receipt in full of all accounts and
demands, upon paying the balance to him at such a time; which receipt he
has to show; and that he owes him nothing, or but such a sum, being the
account of goods bought since.

The executors finding the mistake, and how it happened, endeavour to
convince him of it; but it is all one-he wants no convincing, for he
knows at bottom how it is; but being a little of a knave himself, or if
you please, not a little, he tells them he cannot enter into the
accounts so far back--Mr G. always told him he kept his books very
exactly, and he trusted to him; and as he has his receipt in full, and
it is so long ago, he can say nothing to it.

From hence they come to quarrel, and the executors threaten him with
going to law; but he bids them defiance, and insists upon his receipt in
full; and besides that, it is perhaps six years ago, and so he tells
them he will plead the statute of limitations upon them; and then adds,
that he does not do it avoid a just debt, but to avoid being imposed
upon, he not understanding books so well as Mr G. pretended to do; and
having balanced accounts so long ago with him, he stands by the balance,
and has nothing to say to their mistakes, not he. So that, in short, not
finding any remedy, they are forced to sit down by the loss; and perhaps
in the course of twenty years' trade, Mr G. might lose a great many such
parcels in the whole; and had much better have kept a ledger; or if he
did not know how to keep a ledger himself, had better have hired a
book-keeper to have come once a-week, or once a-month, to have posted
his day-book for him.

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