The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1870-01-05

OF the SehSQn-
And now. that the year has fairly COM
menced, and all are busy with quarterly
collections, we have a word to say on the
occupation Of the day.
We have been told that, in early times,
it was the custom Of everybody to make
full settlements, on the first of January
of all outstanding debts. Merchants
squared their accounts with each other,
books were written up and new point
Of departure was taken for the years
work. Families paid up their bills men
met their obligations, and adjusted their
running accounts. so that everyone became
adv sed of his financial position, and could
start the year with fair understanding
of the relation Of his income to bis prob
able expenses. This was a wise custom.
and so productive of mutual confidence
and good results that failure was a sur
prisins event. and bad debts formed an
insignificant item in business. Quarterly
settlements were the rule, and yearly set
Elements, at least, were considered impera-
tive.
This business custom has, in measure,
descended to our times, so that in theory
it still obtains recognition, although rather
out of joint in practice. 1t is true that
every quarter-day, bills are regularly made
out, and faithfully presented TO debtors,
and many meet them fully and promptly:
yet we may say that the majority of bills
are not met, and are suffered to lay over
from one quarter-day TO another. to the
sore Inconvenience of all concerned, and
the manifest arrangement of sound and
safe business.
There is still recognition Of the yearly
settlement custom of the first day of JAN
uary, but so imperfectly is it observed,
that although larger proportion of bills
are paid, and accounts adjusted, than on
other quarter days, yet only an approx
nation to a full settlement is secured,
after all. The day has ceased to become
certain point of Departure clearing
up of the books, and day Of satisfaction,
from the clear knowledge that ought to
be obtained of ones own. and his neigh
boris business, or financial standing.
1t would be well for our community,
and for our island prosperity, if the Gus
tom Of yearly settlements, at least, could
be kept up. and be bonored in the OBJ
servance." A legitimate and limited credit
enlarges the scope Of business, and ex-
tends commercial transactions but in
terminable credit. and deferred settle
ments, are almost sure to end in disaster.
However great the general prosperity
may seem that comes from an undue ex-
pansion of credits, it is an unsouEd
prosperity, that may disappear in a mo-
ment, with the first wave of an unexpected
adversely. This may be asserted. not
only regarding home credits, which, in
measure, are under our constant surveil-
lance, but of those credits we are obliged
to give abroad, by reason Of our exporta-
tions Of home products.
We consider it, therefore, every mons
duty, both to himself and the community,
at the beginning of the year to make
such q settlement of bis liabilities as shall
demonstrate to himself and others his
claim to renewed credit, and his ability 70
meet obligations which it may be either
convenient or necessary for him to assume,
in the prosecution Of his business or
ordinary calling. He ought TO know, by
actual adjustment Of accounts, whether
the prospects of the year viii permit of
expansion, or call for retrenehment and
shortening Of expenses
The growth of loose credit that has
gradually sprung ap among US; the habit
Of letting notes pass their maturity un-
needed, until note has become synoDy-
nous with book account as to time of
payment, and the allowing of quarterly
bills to pass along without prompt quar-
terry discharge. is neither 3 safe nor a
pleasant mode Of conducting business
In the current expenses Of daily life,
such practices lead to carelessness and
extravagance, and men with limited BUSH
ness, or fixed incomes, who ought to be
careful and economical in order to be just
aud honest, simply because they lose track