Commission Merchants and Factors
COMMISSION MERCHANTS AND FACTORS
COMMISSION MERCHANTS AND FACTORS. The factor or commission merchant was one of the significant figures in the early commercial life of the country. These merchants were responsible for all facets of exchange and took responsibility for transporting and disposing of goods themselves, as well as providing credit to their customers.
The factor age system was known through the colonial and early national periods but was of most importance from 1815 to 1860. During these years cotton, tobacco, sugar, and rice from southern plantations were sent to urban centers in the Northeast and in Europe. Southern planters then purchased manufactured goods and supplies from these cities. Commission merchants advanced money to planters and manufacturers; in return, the products of farm and factory were consigned to them for sale. The planter and manufacturer were thus freed from the expense and trouble of selling and could devote their time, capital, and energy to the production of goods.
Frequently, however, the proceeds of the sales did not equal the sum advanced by the merchant, leaving the planter or manufacturer in debt. Southern planters especially resented that their trade and credit went through northern merchants. Consequently, there were numerous attempts by southerners to bypass northern commission merchants and build up direct trade connections between Europe and the southern ports. All of these attempts failed, and only the development of the commodity exchanges, the tremendous increase of industrial capital, and the improved methods of transportation and communication ended the dominant position of the commission merchant in American economy.
Porter, Glenn, and Harold Livesay. Merchants and Manufacturers. Baltimore: Johns Hopkins University Press, 1971.
T. P.Govan/t. d.
"Commission Merchants and Factors." Dictionary of American History. . Encyclopedia.com. (February 22, 2019). https://www.encyclopedia.com/history/dictionaries-thesauruses-pictures-and-press-releases/commission-merchants-and-factors
"Commission Merchants and Factors." Dictionary of American History. . Retrieved February 22, 2019 from Encyclopedia.com: https://www.encyclopedia.com/history/dictionaries-thesauruses-pictures-and-press-releases/commission-merchants-and-factors
Encyclopedia.com gives you the ability to cite reference entries and articles according to common styles from the Modern Language Association (MLA), The Chicago Manual of Style, and the American Psychological Association (APA).
Within the “Cite this article” tool, pick a style to see how all available information looks when formatted according to that style. Then, copy and paste the text into your bibliography or works cited list.
Because each style has its own formatting nuances that evolve over time and not all information is available for every reference entry or article, Encyclopedia.com cannot guarantee each citation it generates. Therefore, it’s best to use Encyclopedia.com citations as a starting point before checking the style against your school or publication’s requirements and the most-recent information available at these sites:
Modern Language Association
The Chicago Manual of Style
American Psychological Association
- Most online reference entries and articles do not have page numbers. Therefore, that information is unavailable for most Encyclopedia.com content. However, the date of retrieval is often important. Refer to each style’s convention regarding the best way to format page numbers and retrieval dates.
- In addition to the MLA, Chicago, and APA styles, your school, university, publication, or institution may have its own requirements for citations. Therefore, be sure to refer to those guidelines when editing your bibliography or works cited list.