The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1877-04-11
THE CREDIT sYsTEs-.

lulilSS nc uttu SoOu ucAi 10 cay ABOUT
the credit system, approving it and
coudemning the cash plan az being i'm
practicable.
Not agreeing with him in his views
upon that subject, We have thought it
not amiss to say word or so about n
oursclf.
The cash system is better for every
body, the credit system has been the
ruin, financially, of almost every man
who has ever failed.
- The merchant who sells on n credit,
has of necessity, TO charge more, be-
cause he will eventually lose many of
his debts, and will be kept out of the
use Of the proceeds of many Others a
long time and must charge n profit
that will cover all this, otherwise his
failure is only matter of time. Many
of his customers will not keep accounts
of the goods purchased, and will buy
much more than they suppose, and
whom settling time comes, difficulties
and disputes arise about the correct
ness of the accounts, which often end
in tedious law suits (and not unfre-
quently in quirrels, fights and such
like, which take up the time and
money of the merchant, and all of
which nc must arrange TO make up in
his profits or bankruptcy is his new
table fate.
lie must OF necessity charge from
fifteen TO twenty-five per cent. profit
10 cover all these losses.
A merchant Of any ordinary means
who sells on credit is forced TO buy
on credit from the wholesale mer-
chants at Louisville, Evansville or
Cincinnati, or wherever he may buy,
and has to pay five to fifteen per cent
moro for bis goods.
These wholesale merchants by rea-
son thereof are in turn under necessity
to ask indulgence of the manufacturers
and jobbers in the Eastern market,
and consequently have to pay for that
indulgence. Here is, say FIVE per
cent. mere charged by the manufac-
turer or jobber for selling OH credit
to the wholesale man, ten per cent.
more charged by the wholesale mer-
chant to the retail merchant and an
average Of about fifteen per cent. more
charged by the retail merchant to the
consumer, making a total of at least
thirty per cent the consumer paws OH
an average for the Messed privilege of
thecredit system. Again, the consumer
will buy more when buying ON credit
than he would if the cash was required
down, and will, positively, frequently
buy things be does not need and could
well do without, and would do without,
if cash was required. just because the
pay day is in the future.
He estimates that his income on his
stock or crop or business whatever it
may be, will be so much and will aim
TO trade accordingly. In nineteen
cases out OF twenty he will discover at
the end of the year, that his account
at thes stores are about fifty per cent.
larger than expected, and his income
not beG'fyHlly but nliserdbly less than he
had anticipated, and the consequence is
he cannot make both ends meet. Then
follows suits, mortgages, notes, high in
terest, discouragements, &c.
This is the rock upon which the
financial ship of large portion of our
citizens have been wrecked. Young
men, shun the credit system. as the
experienced mariner does the fearful
maelstrom. Do not listen to the syren |
music and pleasing Aattery that you
are regarded as honest and that your
credit is good.
Pay day acM come, and if you do not
meet your obligations you will hear
quite different tune sung by the same !
musician. If you never buy except
when you have the money to pay, you |
will, lst get only what you need. I'd. !
get it from ten TO Fifty per cent. cheap
er. ia. you will never fall behind and
be sued and have costs to pay, have
your property sacrificed at public sale |
and have the modification attendant
upon all this. 4th. you will by this
course always keep your credit good, |
80 that II sudden disaster of some kind
orertakes you, you are in a condition
to obtain help. 9Th. you will never !
have any quarrels, fights, disputes, or |
tedious Law, suits about account. 9th.
you will only pay for what you get
and have nothing charged to You by
mistake or Otherwise. Never draw ON .
your future strength and labor for
present needs, for at maturity the bill
maybe protested because of no funds
on ha''d' to msetit. The credit system
has hoa,, tIa ,o,,,,o ~