Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1879-12-10
Cash Against Credit.
TIE COST OF CREDIT.

Credit is a remarkable commodity
and costs the purchaser precisely what
Il is worth 10 the s,llrr In esiima-
ing its cost, there are several things
To be taken into acc. unit besides the
mere mater OF interest. Interest is
d~fned by the scien i6c political econ
mist as remuneration tor the use Of
mooe?, which is properly accumula-
lated by lab'r, just as a house, or
cleared land. or ship, is property
produced by labor, For the use of a
house or land, rent is paid;tor the use
of ship, freight is charged; and for
the use of money interest is charged.
This is just as inevitable. When a
person obtains The use of any money
OF moneys va ne, he is called upon to
pay, and is morally bound to pay
reasonable sum fer this use, and from
time immemorial, this has been called
interest. But delays in payment in
cur many other expenses than this.
Itevery debtor were certain to pay his
debt when due, there would be no
necessity for the seller of goods or
lender of money 10 cnlcul ste upon, or
quire, any other charge than the ln-
.terest But debtors fall to pay in an
Uncertain proportion to the number
of them but every year there are
more or less # them who do not meet
their engagements in time, or fail to
pay at all; and actually speaking
literally and the point-chrat their
creditors. perhaps no. intentionally,
but none the less 'ffrolir'ly out OF
their just dues. In business this risk
Of loss enters into the estimates Of ex.'
prnscs as Inevitably as interest upon
the use of the money, AMI must be
provided for out Of tie cost price of
goods made and sold.
Again \ credit business involves
the use Of a greatly increased capital ;
sea'f1E times larger than would b res
a ar~sh were paid on dcliyery.
q iient and can be made Fsain
ffner who would for moment
c"n'ider what would h1ppen ifcircpm.
stances were oh nged, and he were
obliged to wait "a whole year for lhe
money FIR his pork, wheat, bctfer;
:heese aud other products. tie would
nave to double that part Of hR CAPT
IA which represents al this p operty;
that is certain. or he could not pay
wages. meet expenses, provide seed
md Fertilizers and sustain the nam
beilesS charges which fall upon lis
business in the course Of year. Ihe
people-from whom he buys arc then
plaeed igprec.ely tbs predicAmeut,
v hen he buys on a years credit. 1t
Is pssissary thatthey should purchase
= ysrry two years stock of materI-
ais, a.ifAipd money to pay for two
years s6or, and this also involves
llrger buildings; the risk Of deprecia-
ton IN value; cost OF extra insurance
aud other onerous chrgaes. No busi-
uess man can afford to take risks I: Sc
curily is the lite OF business, and he
must provide against whatever event
might bring a loss to him, and it is
ouly corlnon Prudence that would es-
innate the Oh rges W II thus arise,iu
a suficicntlyliberal 'er to be on
the right side, an, ID uncertain
~. Then, a We CT dit involves
the necessity .or the keeping OF ma
nyssbts, aud these are Troublesome
aud g. nsive services dcne for the
deb. fer w ID, Of course, he must.
pay ~ ~a
poiut further Any thougAsfql per-
son can see through it, aud slize
TO what large extent it enters into
all kinds of business, Sc
Le' such man put himself in Che
place OF another forced to do large
credit business: to suffer constant
IbazTassing anxiet;es, to be ever on the
llytly watch; to Ike p himself in
iesiaN' continually on hundrefs Of
iIap5rtant points; to meet huYlreds
Of otherwise needless expenses and
he will acknowledge readily the seri-
business Of this consideration. What
all This cots the purchasers, can
hardly be told But one can finn an
ilea Of its cost, if he will Thick of it
in this light; Let him 'ell COW 10
this man; bush,l Of wheat to that
a load OF col to another; aid &c dis
tribute his year, produc'i"n among
thousand Pc pie. opening accounts for
evrry one, watching Ghcn thes" come
due, wiring off lost accounts of de-
citing debtors ard, in fact. selling
just q q. be buys, and then figure up
The result This will be The cost of