Middletown transcript., 1868-03-14
-; '|a5Hf swans, 80
TA. c..s.s syss.m--cs.s,,ness TO Consumers.

Il would be folly to suppose that .mer-
chants would transfer values, the RETURN
service for which il q, be rendered in the
futare, if inch system Of making ex-
changes were not for their interest IN
diyijoals might deem such . system aayan-
tageous, and be mistaken; but successive
generations would not continue to make
exchanges. Ain confidence Of fqturegpay-
ment, II they did not find it advantageous.
The long existence, therefore, of the Credit
System, and its gigantic develdpement
within the last few years, prove that it is |
rooted in the interest of those, who perpet-
aate it, - Il may even be admitted that the |
Credit System, as it exists especially in
England and the United States il 4 proof
of the high ,charactersofathe anerehaHts of
lence among them aofS fher Virtues which
beget con6dence, wlIiohlies at the basis Of
credit. The Credit System, in this point
OF view, may be regarded as a proof of the
civilization of nation. But, whoever
finds his interest promoted by shch sys-
tenn ofyexchangcs, it is not the consumer.
To the consumer, whether he pays cash,
or buys on credit, the existence of the
Credit System is an unmixed evil. 1t lays
stax on labor greater, probably, than all
thesother taxes paid by the consumer to
the State and national governments.
This tax is made up Of several items.
There is the enhanced price Of the COM
modify sold, equal to the interest on the
price Of the goods for the time for which
credit is given. , No one supposesthat one
merchant can allow another the use of his
capital, TO trade with it for his own, ad-
vantage, without interest, That such in
terest is charged, is proved by the discount
that is made among merchants on cash
transactions. e. A commodity, therefore,
comes to the consumer with its price en-
HANGED, mot taonly by the legitimate. profit
of each merchant through whose hands ii
has passed, but swollen likewise. blythe
successive credits, which the manufacturer
or importer, and the wholesale dealer Oh
jobber, have given.
The increase Of price occasioned by
credits is invevitable' where payments are
made punctually But some debtors will
be dilatory in meeting their obligations
apd thus impose q loss on their creditors
the interest charged being unequal to the
value to their creditors Of the money the
payment of which is postponed! Anl
some debtors will only pay after Large
percentage of the amount due has beer
spent in the cost Of collecting some debt
ors will never pay. d And for this delay II
payment for the trouble and Iex pelise b
collecting doubtful debts, and for all losse
incident to the Credit System the creditor
is paid By exacting d higher price for hi
goods from those who do pay. - ~:
For any trade or business to be rcmu
nerative there must, on the whole, be
balance on the profit side Of the account
And the margin of profits must be suffi
ciently large, not only to cover all losses
but all the expenses of every kind inciden
to the Credit System. Those. who pa,
their bills, not only settle ethe bills of tlos
who do not pay, but make good the 'losse
occasioned by delay in payment, or com
pulsive payment Thus honest and hon
orfble debtors, are systematically taxed t.
support the vicious and the idle On
part of the world is assiduous, in labor
abstenlious in indulgences, and econoihico
in expenses, in order TO maintain in idle
ness and vice the other part. And, 70
this, we have to thank the Credit System
1t makes the industry of the industriou
less valuable to them by the amount tha
they are taxed to make up the frauds {
the vicious and idle.
1t is impossible for the creditor, alyay
to judge 'dncrringly Of the character an
solvency of the person he trusts. Wit
the best use Of every source Of information
under the stimulus of self-int,rest, he wi
often give credit TO the unworthy and su,
fer loss. There are no checks in existence
none which can be devised, which wi
prevent property from thus passing int
the, possession of the -unprincipled. lie,
is'a dealer, whose capital will warrant
credit of five thousand dollars. He OF
tains, credit for that amount, from on
house, and similar credit from another
and a similar from another, and another
He repeats these transactions in differel
cities until he has effected purchases to q
extent fifty or one hundred times great,
than his capital. And then after havin
taxed his credit 10 the utmost, he prof
ably fails, and honest debtors make goc
the loss, and in turn exact it from the
customers. -.. -.,..,.
AAiSi 2 is ucaltI, nho mltl uosuisloi
est intention has been tempted to ,sontu
beyond his depth. In times of speculati'
excitement both rstalsrs sands wholesa
dealers wish to extend their operations,
order to realize the greatest gains. I'll
creditor urges on the buyer goods exees
ivein proportions to the regular demant
of his trade, and unsuitable for his inarke
the payment Of which depends on the col
currehee of many contingencies, any OF
OF which may fail. The debtor becom
insoivent, and his Indebtedness after beir
liquidated by more fortunate or prudeI
dealers, is repaid ~ them by the gre;
mass pfFustomers. TygT f2g3Ql
There are other sources created by u
Credit System, too remote to be brief
traced, which swell the tax laid On it /
labor. How great that tax is can only