Arbitrage as Daily Instinct, Not Abstraction

“David Sassoon had soon discovered the advantages of having his capital and interest repaid in goods which he could then resell for an additional profit. His policy was more than justified, but it demanded harsh routine. In this new country he had first to master a primitive system of weights and measures which often varied from district to district. With a world market in prospect far beyond his previous experience, he familiarized himselfwith a wider range of prices and commodities and even started to explore the intricacies of the Stock Exchange. He acquired a working command of Hindi which he spoke with the measured diction ofone naturally fastidious with words. He was almost as sparing in the use ofHebrew and Arabic, his two natural languages. A number of his letters have been preserved; they are incisive, very much to the point, and written in a clear script unusually free from the typical flourishes and affectations of the period.”

“'We went to the office (i.e. Reuben and I) yesterday at 11 and remained till 1, while he signed the Hebrew and Arabic letters. While we were there, Bishop called and offered some Persian opium and he said there was a margin of more than $100 between the price here and that in Hong Kong, so we thought we might as well buy a small lot and make a little money. (Five days later they bought 67 chests.”