New-York daily tribune., 1845-02-18
CASH AND CREDIT.

10 The Editor ~ idc IIfOHW
In your paper Of Tuesday last an article appeared
headed, "Cush and Credit-a word TO the Coun-
try" which is calculated, in my humble opinion, to
give q most encneousi impression as regards the sys
ten of credit business in this City. 1t was therein
stated that all engaged in this branch were in The
habit from necessity of charging % per cent profit
on their goods, while those doing cash business
were glad 10 dispose of their wares at an advance
of one-6fth that sll,n, thereby making difference
in favor OF the latter OF 20 per cent. II does appear
to me, sir, that the writer o! the article in question
could not Rave displayed more ignorance on the
subject above alluded TO than is therein eyinced.-
During residence of 2S years in this City, all OF
which time has been devoted TO mercantile pursuits,
have never known bill Of goods sold to pay this
said profit of y per cent, and do not believe there
is a merchant in our City q mean that class who
spolv country Dealers who would BIZ wiling TO, or
who could admit, thai there Is any tru'h In the
statement | am willing 10 admit that there Is II
Mays difference made between Cash and Credit
no cne will deny ths--tliS uterence = made by
all, Your article, however, ;oes 10 show that a
purchaser must go 10 get his supplies II he wishes
Il make the most advantageous use Of his money,
10 those who designate themselves as sellers Tor
cash only--a class who ere so busy III cir
cuatins their p!acards at sieamhoGis and no
tSl>--tlertpV cnutuNpfluS ~ SH4i 'HS pVuitS
with he idea thai WHO stays III b counting
house and looks diligently after ms atla!rS, whose
means e ample, acquired by pers@Yer'ns and lio!-
est industry ana fair dealing, that such an udiyid-
nal Is not able 10 compete with his nelghbor who
thinks for his interest to put the designation over
bis door, Cash Store" Experience has shown
that far as the Interests OF our package merchants
sre concerned, this sad cash business has been 10
them most disastrous. There are vast number of
merchants in the country who entitled to credit
| from the means and character they possess, who
can purchase goods IN TINS market 10 any extent
they wish credit OF sX months, at less than lC
per cent profit. An individual of ordinary busi-
ness CAPACITY who has been thoroughly educated in
the branch he follows, can, provided he has rea-
sonable capital (and is required any raie) do
profitable credit business without suffering those
heavy slaues on his assets OF which YOU speak and
that by selling his goods al profit OF l0per cent He
must exercise prudence IN the selection Of his Gus
toners and not be SO avaricIouS 10 make money as
to take risks which are hazardous. Il is libel OH
the Mercantile community, the article IN question:
and hope you VIII do justice ana proclaim to the
world the ignorance OF hlm who peAned II, so
far as relates 10 the portion here alluded 10.
AN OLD SUBSCRIBER.
hrt- The man who penned the article here alluded
TO is the responsible and ,olerably we'll known Ed.
tor of The Tribune, who never received d sugges-
ton with regard TO It from any quarter whatever,
ana who is still so grossly Ignorant as 10 believe
that the average cost 10 the consumer of goods
bough, in the Cites on credi, and sold again in
the Country on credit (he usual course) is at least
twenwp percent. more than If the trade were in each
case for pay down. That there are instances in
which goods are sold on credit al less advance on
their cash value, and men who know how 10 pur-
chase at such lower rates, wa never doubted but
we were not writing with view TO individual
cases but 10 the general OF mercantile credits,
On this point, We must say that our darkness has
no, been ilumined by our correspondent Ed. Ii1b.