The Eastern merchant seldom enters into hazardous speculations, but
limits his transactions to the extent of his capital. Credit to a great
amount is obtained with difficulty, as affairs of individuals are in
general much more publicly known than in Europe; failures are,
therefore, of rare occurrence; and when a man becomes embarrassed either
from an unsuccessful speculation or inevitable losses, his creditors
forbear to press their demands, and are generally paid after a few
years patience;
[p.40] thereby saving the merchants credit, and preventing the
consequences of bankruptcy.
On the other hand, however, the Eastern merchants are liable to the
imputation of uncertainty in their payments, which they often delay
beyond the stipulated periods. Even the most respectable among them do
not hesitate to put off the payment of a debt for months; and it may be
stated as a general rule in Egypt and Syria, that assignments are never
fully paid till after a lapse of nearly double the time named. But this,
I was often assured by the best informed people here, has only become
the practice within the last twenty or thirty years, and is a
consequence of the universal decay of commerce and diminution of capital
in the Levant. At Djidda, as I have already observed, almost all
bargains are made for ready money.