The Cincinnati daily star. [volume] ([Cincinnati, Ohio]) 1875-1880, 1875-07-30
THE GRANGE AND THE CREDlT
SY6TEM

One of the most important results Of
the Grange movement is to be it's effect
upon the credit system heretofore exist.
Ing between the merchant ana the pro-
aucer. The credit system has grown to
such proportions and suffered 80 great
abuses that it proved the principal
agent in the disatfection between the re-
tail merchant and the farmer. The
Grangers, though not recognizing this
lact, have fortunately struck upon the
system which is to remedy the evil and
reduce to normal condition the relation
between trade and productive labor.
The custom everywhere existing
lmong merchants of selling con time" to
farmers, and among farmers of buying
On credit, to pay ''after harvesr or at
some indefinite future time, had become
30 prevalent that no merchant could
expect to be popular without yielding to
1t, while in fact it was with the utmost
difficulty and with the highest possible
percentage OF profit that he succeeded
In business while doing so. Though the
farmers, as a class, are both willing and
anxious to pay their honest debts, there
Is still a part of the country merchants
accounts which he is never able to col
1ect. A much larger proportion is only
obtained after long delays and then with
no recognized payment for the use of the
funds on the part of the purchaser.
A very large proportion of the
"eharged" sales of the retail dealer in
the farming regions are only collected
alter delay of from three months to as
many years, and in too many cases are
never obtained. The fault of this is not
usually in the intentions of the farmer,
but the result of unforeseen difficulties
IN the loss Of crops, or of error in es-
inmates or failure in prices. The mer-
chant, although frequently foreseeing
Mis-, is by the force of the general GUS
lom and the dread of loss of popularity
and patronage unable to avoid the re-
Iults, and is Obliged to sell on credit or
lose mis- trade.
The result of all this is that in order
10 cover the losses, pay for the use OF
ihe money invested in the goods, and
make living profit, the retailer is
Dbiiged to sell at very large advances
IN cost prices.
Not only is this the case, but the same
ules relating to retailers and farm pur-
.shassrs hold good between wholesale
merchants and retailers. The universal
credit system, practiced by retailers,
forces them to ask the same from the
Wholesale merchant, and the result is,
from like circumstances and probabili- :
des, a like advance in prices charged.
This is in turn, Of course, entailed upon
she consumer, who thus pays doubly the
cost Of the ruinous system which he de-
Mands at the hands OF the retailer.
). On the other hand the farmer, in many
bases, is obliged to sell the products of
his labor at unfavorable times and low
rates in order to meet liabilities thus in
spurred, and the consequence is double
Joss to him, in the prices received for his
products and the rates paid for his pre-
Fious purchases. Especially has this
been the case In the South and West
whence the loudest complaints have
GONE, but the evil effects Of the system
hare, to q greater or q less extent,
teached all over the land.
This condition OF things, although un.
recognized, has really been at the bot.