The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1869-07-23
GOING IN DEBT:
Suggestions for business Men.
....Ftom the PhtlaelelpAta Ledaer.

us-FronI the Philadelphia Ledger.
Financial Editor Of the Led0er:-I would
What amount OF Indebtedness ought a
merchant carry who is doing business OF
ness upon the lst of last February was 80 000,
invested as follows: e3 900 in the property he
occupies, and 81 600 in bills receivable, or
rather running accounts on his books. His
whole expenses for this year including
everything, interest, personal, store ex-
Sc 900 or SO 500.
he buys goods on 80 days only, and is
be E would increase @ S his Purchases he Would @ d
corespondingly increase his sales, but he Is
afraid to take tne risk, fearful that he would
not be as prompt in his payments.
These are the whole circumstances. What
advice would you give him? as he IS uncer-
tain from the tenor OF your article in ques-
crease his sales (Which he thinks would be
the etfect) or take risk, increase his credit
and sales.
Please answer and use your own judg.
ment whether TO state tho case Hs nave
gwen II 10 you or not. Business, retail dry
goods, and one OF your advertiser1.
Philadelphia, July l9, 1869.
Our correspondent asks us "what
amount ofindebtedness ought a merca-
ant to carry" on certain specified
means, which he enumerates. That
would depend so much on circumstan-
condition of the currency, &C., that 1t
would be impossible to establish any
rule that would be universally applica-
BILE. Some kinds OF business admits of
frequent turning of capital, the profits
from which result more from the in
duBtry and tact of the operator than
from the amount of capital used; while
other kinds of stock in trade are turn
ed infrequently at large percentage
OF profit. Each individual in business
should feel his trade, day by day, and
graduate it by his best judgment, OBJ
serving these general rules: When the
currency Is at it's lowest point-when it
is least in volume, other things being
equal, and most appreciated in value,
that Is the time to produce and run in
debt, II you will; for as the currency OF
this country is never fixed, but ever
contracting or expanding, 1t follows
that when It is dearest 1t will buy most
labor, and the products of labor, and
therefore those who produce then do so
at the lowest cost and are ready for the
rising market which gradually follows
as the currency expands and its value
per dollar lessons. It is, as the rule,
safest and bost to avoid debt as much
as possible, but If debts are made, let
it be when money is dear, fixing the
time of their maturity and payment
when the currency is cheap-for how
eV6E IL may 6O 4OuS 90
it is current, it will pay dollar for dol
lar, though the dollar ofdebt may have
had half as much more of purchasing
power as the dollar of payment. The
impression with very many shFewd
observers OF the times is, that the
currency is just now about as
much expanded and as cheap as
the country will bear. Prices have
ruled extravngantly high, mainly in
consequence of this cheap cur
rency, for the last three or four years,
and, in the nature of things, turning
point must be reached sooner or later.
There are certain uniaillng signs that
this time is now nearly upon us. III
this be so, it is the period of all others
to AVOID debt, for while the debt will
stand good for its number OF cheap dol
lars, when payment is demanded 1t may
feuuire half as much more of labor or
of the product of labor to command the
requisite mum Der of dear dollars with
which to discharge 1t. Those persons
in business who extend credit when the
currency Is inflated and deprecated
runs greater risk of losing the amount
than II they should extend credit when
the currency is appreciated, for the rea-
son that they take all the risk of the
solvency oftheir debtors that follows
the transition from cheap to dear
currency, and which appreciation car
ries with it heavy percentage ofnomi-
nal values, loss in which debtors suf-
fer most. = III .tf ri. 4