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CIVIL: ADMINISTRATION, POLITICAL ECONOMY, FINANCE,
COMMERCES, LAWS AND SOCIAL RELATIONS,
TEE NEW YORK PUBLIC LIBRARY
ST. MARTIN'S I ANE.
FACTORY FACTOR is a mercantile agent, who and factors are governed by the laws of buys and sells the goods of others, and the place in which they are domiciled ; transacts their ordinary business on com- and any contract which may be made by mission. He is intrusted with the pos- either of them must be governed by the session, management, and disposal of the law of the place where it is made; and goods, and buys and sells in his own name, these rules are acted upon by the courts in which particulars consists the main of justice of every civilized nation. Thus, difference between factors and brokers. since the passing of the above-mentioned [BROKER.)
statute, a foreign merchant cannot recover The chief part of the foreign trade of his goods from the pledgee of the factor every country is carried on through fac- in England, though he may be totally tors, who generally reside in a foreign ignorant of the change which has taken country, or in a mercantile town at a dis- place in the law. Again, if a bill be tance from the merchants or manufac accepted in Leghorn by an Englishman, turers who employ them; and they differ and the drawer fails, and the acceptor from mere agents in being intrusted with has not sufficient effects of the drawer in a general authority to transact the affairs his hands at the time of acceptance, the of their employers. The common duty | acceptance becomes void by the law of of a factor is to receive consignments of Leghorn, and the acceptor is discharged goods, and make sales and remittances, from all liability, though by the law of either in money, bills, or purchased goods England he would be bound. (See 2 in return; and he is paid by means of Strange's Reports, 733; Beawe's Lex a per-centage or commission upon the Merc.; Bell's: Commentaries i Paley, : ; money passing through his hands. It is Principal and Agent.)." usual for a factor to make advances upon FACTORY. The name of factory was the goods consigned to him, for which, and formerly given only, to establishments of also for his commission, he has a general merchants and factors, resídeat in foreign lien upon all the property of his employer countries, who were governed by certain, which may at any time be in his hands. regulations adopted for their mutual sun;
Previously to the stat. 6 George IV. port and assistance. against the, undue c. 94, a factor had only authority to sell | encroachments or interference of the gothe goods of his principal, and if he vernments of the countries in which they pledged them, the principal might recover resided. In modern times these factories them from the pledgee. But by this sta- have, in a great measure, ceased to exist, tute the pledgee of a factor, when he lends because of the greater degree of security his money without notice that the factor which merchants feel as regards both the is not the actual owner of the goods, is justice of those governments and the proenabled to retain them for his security; tection, when needed, of their country. and even when he has such notice, the The Venetians, Genoese, Portuguese, lender has a lien upon the goods to the Dutch, French, and English, have all had same amount as the factor was entitled to establishments of the nature of factories.
The rights and liabilities of merchants in China the Portuguese established a VOL. U.