Knoxville weekly chronicle. [volume] (Knoxville, Tenn.) 1870-1875, 1872-03-13
The Credit System.

EDITORS CHRONICLE: VIII you allow n
constant reader an opportunity to express
himself on the above named subject. As
every one knows the advantages of the
system, it will be my object to show some
of the disadvantages arising from il. In
business life many men seem to think,
when they get the upperhand of neigh
Dor, they show how sharp (?) they are, aud
felicitate themselves on the superstition
that they are getting on in the world. The
most frequent plan adopted TO carry out
their designs is to buy everything they
need on time, vainly imagining that the
use of the money will inure to their profit
Let US see how this works: Mr.. A. gets
trusted for all he buys and Mr.. b. pays
cash. Mr.. A. has to pay u good round
price for all he gets, because the man he
trades with can not afford to wait two or
three months for his money and sell at cash
prices. Thus, A. loses where Il. gains.
Again, Mr.. AIS grocer does not seek such
customers as he Is, and he will not show
him his best goods He will sell him
an inferior article, for he says / do not
care if he does go somewhere else, and this
is good enough for him! But when Mr..
b. comes in, the grocer is all smiles and at
once produces the choicest of his stock,
and puts the price at the lowest figures,
for Mr.. Ii. pays cash and can trade where
he pleases. 1t Is easy to multiply evil
dence showing il is really to the advantage
OF the individual to pay cash, but with one
thought we pass Oh. How many business
men have been ruined by the credit sys-
tenn how many honest men have been
made rogues by it? No tongue can tell,
and yet some of our best bushes men argue
IN favor of IL. A city firm paid for n bill of
goods twenty days before it was due.
" Very foolish" said their neighbors, but
that firm made fifty dollars by the tran
saction more than they would had they
held the money the full time, besides es-
tablishing name for prompt dealing.
Now, see how the system effects the dealer.
Mr.. A. comes in and buys q bill of goods,
says he will pay at the end of the month.
The dealer goes to his Book keeper,
and has the charge entered, it is then post
ed to the ledger, and at the end Of the
month the bill Is made out and the collect
or starts out to find his man. Goes once,
twice, three times before he finds him, and
then gets-put off for few days. At the
end of another month he calls again but
fails to get his money, and the end is, Mr..
A. gets sued and the lawyers have a job.
Well. eventually the dealers collects his
money-if Mr.. A. does not,die or take the
bankrupt act as a shield for his rascality-
but what has it cost him? Manifcstly he
had gained by the transaction had he
made Mr.. A. present of the goods at the
outset. The credit system causes a waste
OF thousands on thousands yearly in sums
paid for books, book-keepers, collectors,
lawyers, &c. Let us suppose that all these
persons were producers, and what differ
ence there would be in the general adj
vancement of the country But we can
hardly look for this consummation until
business men learn to do business on the
cash basis only, when there will be more
business and greater prosperity for all.