Litchfield enquirer. [volume] (Litchfield, Conn.) 1829-current, 1843-03-30
CASH AND CREDIT.


n CASH AND CREDIT. w. ~. p
Trade in this country has hitherto appear
ed to run its course of triumph and disaster
periodically. There would be few years
Of spe,ning success, in which business
Of every description would rise by RAPID amt
REGULAR grHdntiOnS 10 the very pinnacle Of
prosperity, to be follow, d by as regular and
sudden decline landing every thing in tho
lowest depths Of mire.
We have lust passed through one IF these
periods 1t can hardly be doubted that we
are now fairly through it--that we ar" nj the
bottom of the hill, and need have no appft-
henSion of finding "a lower deep" The
next thing then is to commence a new as
cent. to enter upon another cycle. and open
another business camptign How shall
this he done What principle shallwe act
upon These, il appears TO us, are itnpor-'
tant questions for the consideration of the
new race nf commercial men who are get.
ting under wav. Will they follow the exam
pie of their immediate predecessors Is
there any thing in their example and in their
experience which is very attractive? qsit
desirable thus to
"Snar the solar height.
To set in such endless night ?"
Bv commencing rightly by looking hack,
over the path troll by those. who have gone
before us, and marking the rocks upon which
they have split, the new race Of merchants
will save themselves from sirnilarfHte. We
do not propose now to travel over the whole
of this extended subject; the necessary lin
it's of newspaper article will not permit US
to do so; but we propose TO call attention to
a single point-to practice which in our
opinion is the fountain OF all mischief We.
allude to the practice which has been almost
universal, Of giving credit at the retail stores
both in CITY and country These retail
merchants are in effect the agents OF the
manufacturers, importers and johhers for
distributing goods TO consumers. No man
should wish to buy or be permitted 10 huv
goods for consumption on credit. If he is
not able to pay for them he is not able to
have them There is vast difference be-
tween buying goods to sell again AT a profit,
and buying them to use, and consume. II"
the former case credit may frequently be
necessary and proper,but in the latter never.
Asbusiness has heretofore been conducted,
the operation Of is in this fashion the for,
eign houses sell to the importer or credit,
the importer sells to the jobber OH credit, tho
iohher sells to the retailer on credit. and the !,
retailer distributes the goods in small items
among all Classes the community on credit
and thus they stand like n row OF bricks one
infer another Allthis credit Is we'll enough
until YOU arrive at the last stage Here
the mischief begins, and the stream rolls
backwards carving destruction and Desc
iation in us course. :"
The ratailers anxious 10 DO n large bust
ness, nnd completing sharply with each 9th.
or, urge the farmer, the mechanic and the
Iaborer. 10 huy whatever they want TO eat.
drink ar wear, and offer TO credit ,hem.-
The offer Is fatterng 10 their pride. as il
shnws how much confidence the store keep
or has in Them, they consequently run up
large scores on the books Of the retailer
When pav day comes the money Is seldom
ready. Mortgages on farms or notes at the
hank are resortri to for the purpose of keep.
ing of the evil day. Bv endorsing them,
and getting his friends 10 endorse them nj.
81. some accommodating bank lifts the retail.
or along for the time being. The same thing
is repeated again and again. until the bank
j. compelled 10 shut down the cute, and then
comes Il forerlosing Of mortgages and sue.
ing of notes. the failure of the retailer and
ruin ofhis customers. 'r
A general Tumble now commences in the
row of bricks which we have described.-
The consumers fall against the retailers,thev
agains, the importers, and so until all tum.
Bile to ruin together .
There is not on intelligent merchant who
has not Observed this whole series of advan.
cling credit and returning ruin. Let the re-
taiIers do a cash business, and the mischief
will all be remedied When they give cred