New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1845-02-11
CASH AND CREDIT--Al WORD TO THE
COUNTRY.


COUNTRY.
We have long been moved to say something
directly TO the Farming, Manufacturing and La
boring People generally Of our Country on the
extent to which they tax themselves by buying on
credit articles for which they should pay down.
Let us illustrate:
There are few wholesale merchants in this
City who sell goods for cash only, and these
charge their customers, ov er and above the cash
cost the articles purchased profit of IRE per
cent The large. majority of City dealers, how
ever, arc required to give credit to the country
merchants who buy Of them, and these sell their
goods ut an advance Of Twenty-Five per cent on
the cash cost To speak Of the increased charge
as profit would be a very incorrect use of Ian
guage-but small part of it is actual profit, the
bulk OF it being absorbed in losses by bad debts,
shavcs' on notes discounted, low costs, collect
ors travelling expenses and pay, salaries OF book
keepers, and all tho various charges of the cunl-
brous and wastcful machinery of mercantile debt
and credit. tits no fault of our City Merchants
that these enormous expenses are incurred
They would gladly sell all their goods for cash
down and at corresponding prices, bu, their Gus
toners demand and obtain credit and must of
course pay accordingly Goods cannot be sold
on credit for any thing like cash prices no matter
how solvent tho buyers.
Let us sec how gigantic is the loss incurred
by our Laboring People through this preference
Of crcdi, to cash in mercantile TRANSACTIONS
The average value OF goods imported into the
country ind not reexported is about Ono Hun
drcd and Twenty Millions; while the value Of
Domestic Productions which arc bought and sold
through the morchants must be at least twice us
much, OF Two Hundred and Forty Millions. OF
the aggregate probably 10, less than Three Hun
drod Millions worth, arc sold 10 the consumers
on credit, ut charge OF twenty per cent. or Sixty
Millions per anuum moro than if all goods were
bought for ready pay. Hero is an annual charge
Of Sixty Millions per aunum-more than the cost
of our Federal aud all our State Governments
levied each year upon the. productive industry
of the Country by the system Of Mercantile Credit
Its paid mainly by the Farmers and Planters, who
DGrSlSt III paying tHOii NoouS vi SICU!t,
and thus compelling tho Merchants TO charge an
average Of at least twenty-five per cent, moro for
them than if they wore uniformly paid Tor on de-
livery, Many farmer, many neighborhood,
many County, is falling deeper and deeper IN
debt every year BY reason Of this very error. For
ins,ance:-a Coun,yin Michigan turns of a sur
plus of 100000 worth of Wheat, Cattle, Potash,
sc. annually. This produce is invariably sold
for ready pay, and al cash prices. That same
County buys land consumes products every year
which cost 800 600 originally, and which it might
obtain 70, S95, 900, ready pay. But its merchants
buy on credit, and so nre charged Sll5,0OO, be-
cause its consumers insist on having credit, and
arc charged $4,000 to Sl5O,os0. The rcsul,
is that both merchants and farmers are every year
running deeper in debt; and, though each, look
ing at their ledgers or their farms, believe they
are getting ahead, yet in the emu the merchants
will be bahkrup,s and the farmers. selling cut at
u sacrifice or sold out by the Sheriff. will in few
years ben.aking tracks for Iowa o. Nebraskie.
The remedy for all this is very simele-cash
up. Let the farmer, having sold off his las,
wears crop to pay his store Dill, give note
for the balance, If any, and resolve never again
10 run in debt for goods. Let him rcrench his
purchases, and turn off butter, eggs, stock, any
thing in short, to pay for what he must buy, un-
I'll his next crop comes in, and let the girls wear
their old dresses till then. They will look all the
better for il, in the eyes Of men and women Of
sense-,he only eyes they should care for. When
hsrves.comes round, let the farmer pay whatever
balance be owes, sell his produce ior cash-tnevcE
TO those who will pay his own price for i,-nex,
spring}-and then Insist on having his tea aud
coffee, his cloths and wares, at an average OF
twenty per cent cheaper by the quantity than
when he bought by dribles and agreed to pay
sometime or other. Ii bis old merchant will no,
do this, he will find enough who will be glad 20.
- WHAT says qnestiones, wond you de-
stroy the crsdi System 2 Neser bit, sir; bat
we protest agains, the credi, Ri.sO,a system. We
cherish true Credit System, and glory in proper
credit, but tho rust extended by merchants to
Tom, Dick and Hurry is not and never was of
- - s,as...iss--