Chapter XVII: Appendix: B

_LETTER OF COUNSEL TO YOUNG PARTNERS IN BUSINESS._

The following letter, received while the fourth edition is passing through the press, has reached us too late to be incorporated with the third chapter, to which it naturally belongs. It so strikingly illustrates the principles by which Alexander Balfour regulated his commercial affairs, that, with the consent of the firm, it is given entire. We hear a good deal, in our day, of the difficulty of carrying on business on strictly Christian principles. This was a difficulty to which Mr. Balfour never for a moment yielded, and which indeed never seemed to present itself as a difficulty to his noble nature.

“LIVERPOOL, _25th February 1869_.

“Messrs. ROBERT BALFOUR, ALEXANDER GUTHRIE, AND ROBERT B. FORMAN.

“DEAR SIRS,--We now submit for your signature the formal Deed,
constituting us partners jointly in the proposed new firm at San
Francisco. Permit us to offer a word or two of explanation and
counsel thereupon.

“1st. We have to remark that it may be useful to ascertain at New
York the name of an experienced lawyer. We suggest that you show
him the circular proposed to be issued, and please consult him also
regarding the formalities to be observed in the State of
California, in opening a house of business there. We are aware that
in America it is usual to register the partners’ names at a public
office, and to state the proportion each party contributes towards
the capital of the concern; which details are subsequently
advertised in the newspapers. We suppose such public announcement
is indispensable when the partners restrict the sum for which each
is liable. When the partners are content to assume an unlimited
liability, (as in our own case), the formality may not be needed.
On either supposition we are prepared to act as may be required;
and await the necessary information.

“2nd. Observing, as you will do, that we are prepared to identify
ourselves with all your business acts, it may be proper now to
refer to the manner in which these shall be undertaken. You will
narrowly scan the instructions and limits which may be transmitted
with orders, and take care you act strictly within these. And in
dealing with the consignments which may be forwarded to your care
for sale, you will also carefully follow the indications which the
owners of the merchandise transmit.

“In acting on behalf of constituents, while you would be free of
blame by fulfilling orders to the letter when it is in your power
to do so, yet in certain cases, from the ignorance of your
correspondents regarding facts which you may have ascertained,
there might be an element of danger to the interests of your
friends, by operating as if no such dangerous element was in
existence. In all such circumstances, it is our express request,
that you act upon the orders, as you think they would have been
framed, had your correspondents obtained all the additional
information you possess. No business is to be undertaken but that
which is likely to result in common benefit.

“3rd. While it is thus thought needful to allude to the
responsibilities involved to ourselves and others, pecuniarily, in
your business acts, we must draw your attention, far more gravely,
to the importance we attach to your sustaining the name and honour
of your firm in every undertaking in which you engage. Every
engagement must be uprightly fulfilled by you, and the rights both
of neighbours and constituents strictly defined and faithfully
guarded by you. In your dealings you will permit no dereliction of
right principle to pass unnoticed either in yourselves or others,
and carry out fearlessly, under all circumstances, the golden
rule--

‘Do to others, as you would be done by.’

In your intercourse with others you would of course never mislead,
but we hope there may be few occasions on which you will have to
refuse any information which neighbours may ever request from you.
Should you decide to maintain the same open communication regarding
facts, that we believe is to be extended to you in San Francisco,
we shall ever rejoice.

“4th. In any matter upon which you have difficulty in arriving at a
decision, you can always reckon on having our best assistance and
advice; and we encourage you to communicate your impressions on all
matters as fully as possible, either in general or private letters.
These last, when on business topics, must always be addressed to
the firm and one of us will take care to afford as early reply as
possible.

“5th. While we have only brought under your consideration, in the
above, certain principles of conduct which would suggest themselves
to your own and all candid minds, we nevertheless think it good to
bring them under your notice at this time, that your purposes may
be fortified by the express sanction we now bestow upon them. It is
said,

‘Righteousness exalteth a nation,’

and we want, as a firm, to stand or fall upon that quality in our
actions. It will be our trust, that, through obtaining a better
strength than your own, which is to be had by asking for it, your
transactions may be distinguished by Christian principle; and, as
each year of our intercourse commences, we encourage you to review
the past and resolve for the future in the sight of Him who
searches our hearts. Thus we are sure will it be best for all of us
here; and in saying good-by to our friends leaving us, our
strongest wish would be, that they go and strive to glorify His
name, whose we are, and who has done everything for us.

“We are,

Dear Sirs,

Your faithful friends and partners,
(Signed) BALFOUR, WILLIAMSON, & CO.”

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