The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1840-05-20

The merchants OF this city begin to dscovs
that their true interest does not consist in m
bounded and extravagant credits. They begir
to discover that the only true policy for then
! to pursue il short credit, u moderate amount q
trade. small profits and quick returns. How
different, how many thousand times better OF
would the mercantile business men Of this city
/ he If they had pursued the course for the lss
five years that they are now pursuing, al leas
such rs are able to do any business az all. How
different would have been the effect also upon h,
country at large. Those who believe. or afec
to believe, that tho countrymen are ignorant .
the causes that have produced these sad effects
upon lrado aud commerce, will find thcmselve,
woiuIly mistaken in the sequel To show how
well they understand the cause, | will state the
| conversation OF a country merchant IN my store
this morning. | asked him how the merchants
stood in his section Of the conntry--ifthey were
going TO pay up well, il their collections were
good. &c. tle replied thus:
Sir, :he merchants OF this city have not on
ly ruined themselves. but ruined the country
also. You cannot collect your debts from your
customers we cannot collect from ours, aud 1t
has all been brought about by the Same system
Of extravasant sales Of goods In the first place
your banks have given such facilities 10 the inn
porter, that three times the amount Of goods
have been brought he,e that were required. In
srdef TO get rid OF them, the importer has ex-
tended greater facilities to the iobber. The
iobber or Wholesale dealer has Kept his ennis
sariss travelling through the country. drumming
up customers; his clerks werc watching with
eagle eve their arrival in the city, when they
pouneed upon them with all the aviditv of half
fed ticers-stullod them with good dnners-o-
pened for them their rich and sparkling cham.
pa,gne eonduSted them 10 the theatres. aud
TO places less mendable, and finally 10 their
dry goods store; displayed to them in endless
variety their crowded warehouse Of foreign and
domestic goods. and inportnned them to buy
II SIX months credit WAS not enough, nine,
twelve, fifteen and even eighteen months were
offered. aud with such extended credit. they
bought invariably three, four npd five times a,
many goods as they ~auied or could ever pay
for They take them homo and hold out 10
the consumer the same extended facilities Ia
buy-buy and pay Tor them when they get rea.
dy; which very naturally induces the people o.
I the country TO run eN,rayasautly-ru il
debt TO the country merchants. When the,
are finally called npon to pay they Of eours,
cannot do il. Then it follows the country mer
chant cant pay the city merchant; ne OF cours,
I can't pay the importer; the importer esnno
pay his foreign debt; so they all tumble to tn,
ground Ikea row Of bricks set on end strik,
one. and they all go.''
Although this vas nothing new to me, wa
pleased to find the subject so well understood
by my sountry friend, aud il the whole commu
nifty would bur take the same correct view o
( the subject as he did, they would be ere" g,in
srs in the end. CAUTION.