Middletown transcript., 1868-03-07
- w.
Aublit affairs.

4ablit affairs.
The Credit system.
hsmtH 3. s. 1seaemisf and D,y' Good Rspo1se4s
Tits our purpose to portray the pecuni.
afy and moral evils which the Credit Syss
tenn inficts on the whole community, con-
sidefed in the relation sf cohs6sierss; svils
which, We believe are, Very sinaperfectly
realized or APPRECIATED.
Awe.ase. .toisrably familiar lMith The real
Or reputed advantages Of the, Credit Sys-
temsss but soveraagainst these asserted adj
vantages, which are monopolized chiefly by
individuals, must be placed unquestioned
evils, which staay escape our notice. be-
cause they are divided amongst the whole |
community. .RDssa SasRH sxlnu,.R |
1t is to the system of mercantile credits |
that we owe al the ankfuptci9s thsA oc-
cur amounting ofrsmninstg to ninety |
FIVE per cent, Of all persons engaged in
mercantile pursuits The existence of
meSitfeanpek good customers to pay for
losses incurred by bad ones. 1t makes it
possible fqS swipdlipg to become branch
- cuoAhSoS, W VIC oPPoleunluco ~ diioius
forthd upprhdipted sepreS UPON theo III
dustriops. y taxes labor to the amount
of many millions ANNUALLY, no man Being
able TO sell as low for credit as for cash
This additional tax occasion led by ''Sad
debts, delay m payment, AM" expense in
collecting contingent and doubtful debts,
is finally paid By thef e6As6mer. It causes
capital to become unproductivd.i = Bylcngi
credits, capital is withdrawn from the
handslof the prod bctivemardhsht lapd me-
chanie, with whom it would bring quick
raturnss and becomes maetiyesin the hands
I6f'sdelinquent' debtor.as Hsspreads ainet-
work of credit taoverathe wheIe eolninunity,
one credit necessitating An6the f;;s thus dif-
fnsing widalyithe eyils,incident Basthe re-
latien 'ofadebtoraand screditory until these
evils culrninpte in athe periodical CONNER
cia1 crises, in moral and financial ruin r /, i
Indeed the financial crisis may, be called
the happy death of the Credit SYSTEM. 1t
is that to which it leads, us lnattl4al and
suitable end CfeditlhAt6rallS stimulates
prices by facilitating sales; increased de-
mand, whether NecasiQpad by the axtspsien
of credits or the abundance of, money
being always followed By the Appreciation
of commodities; and 1appfeciation is fol-
lowed by speculation, and speculation by
bankruptyyJspsh universal " u 1dsistrpst, which
bankruptcy, With all the distress ana ruin
of character which accompany IL ySwould
.bs SRfap1y pnrhased II III would occasion
not pnersU temporary suspensions butt
lasting aestrpetipn Of al private and ,mer.
captile credits. Whoever might have rea.
son u. lament such destfuctioa, all consu.
mers wssld hove sss oastegasise.
wT The large percentage ofb9nk nkrppts among
mercantile men, proves cthdt tYtref is, SOM
radical defect in the Credit System. o
the amount Of this pereentage, all persons
who have beehlong eAgagedl dliainiefedntik
life have formed -an>epinien, Sometime,
this opiAienisenly q snr1nseypsodnced b,
the successive repetition every few year
of the spectacle of financial a1iin .soIscneral
.that bankruptcy among the merchants 0
their acquaintance is the rule, and solven
cy iscthe exception 4 But many accurat
estimates have been maae, based on tn,
statistics of different mercantile commu
mites. -.
hatbe,yeara as9QJa istogasonsdo o
every merchant doing business on Lon,
Wharf, Boston. III 1910 similar lis
was made, and whena the two were com
pared, it was found that only FIVE in on
hundred had not either failed or died ldes
titute of propertysAa A4 director of tn
Union Banklof Boston, which was starte
in 1898, states, that of thousand persons
whaopensdi Accounts Hith tlfgs Bmk a
that time, all except fifty, % forty years
had faih Or died without property. G
bank directors, more than one-third wer
found to have, failed IN forty years. Sue
was the percentage Of Bankfapts aiao
the most substantial smerchants of Bostor
aad Aatza time when the system of credit
was comparatively undeveloped; when bu
,iaess swss senaaeted on better sprip eipi'
than it Is now.
Now to what were these failures, an
al1failures, due? Simply to the fact tn;
these merchants made promises to pa,
and Then failedto pay . They Fatitin deb
and when theirs obligations matured, the
were unableto meet them. No man ca
possibly be bankrupt, who does not run
debt With solyspcy in, business, it
sohewhat The asan1e as 1t isAmith solvenc
e'of effaTacters- wssmay ysaetsinsuohsa@w a. WI
as will make it impossible for us to be d
Espised, ,tpnds inevitable that we shall be .
dspseteaass So weamayg transact basinessI
such anway as will make it impossible I
us to fail. 1t is by never taking or giviii
credit. .&9TsEgzxsE
-hsw Easssd M NJ zzzF -----7fTsA
tqsta es si Hhs Tsrtiam anids. ass.
"a, New York letter to the, Phi1adelph
Ledge,ssays; The newest political ram
atioat here is that arrangenelftsear oa,fc
for a third party, to be COMPOSED of I