The patron of husbandry. (Columbus, Miss.) 1875-1883, 1879-06-21
THE CREDIT SYSTEM, FOR FAR
.MERS


THE CREDIT SYSTEM, FOR FAR
t.o.-. r.... MERS,
iH It is doubtless imnprracticable for mer-
chants and manufacturers to do business
strictly onthe cash planlid But the credit
system which has been the ruin of so
many traders, is still worse as a policy of
farmers, If merchant would succeed in
business on the credit plan he must in
clude in his calculations certain amount
for loss from bad debts. The profits of
his trade. must enable him to. pay his ex-
penses and meet all his losses. If they
are more than enough to do this, he gains
so much. The losses and personal ex-
penses of many traders, however, iare
much beyond their profits So long, as
their credit remains good they can live in
fine style, not on their own earnings but
on the earnings of others who have conf
dence in their integrity and financial sta
bility.# Our substantial merchants are
able, by prudent management, hard work
and large sales, to bridge over their losses
and make steady progress. farmers
cannot afford, to- make calculations, on
losses to any great extent. They must
get their pay for what they have to SELL
With farmers produce at present prices,
they cannot bridge over many bad debts
Hence they should aim to trade on the
cash plan So far as possible If they get
cash down for their beef, and pork, and
butter, they can pay cash for their groce-
ries and dry goods, and frequently buy at
better advantage. Farmers should be-
ware of long store bills. Iti is very much
better to do without certain things that
may be desirable than to get trusted for
them when there is doubt about being
able toIpay. ID mgsl naat siqo4g a#l !
Farmers, especially at the west, are fire.
quently obliged to hire money and mort
gage their farms for security. This is a
Legitimate transaction and does not prop
erly belong to the credit system A man
sells his farm or a part of it and takes the
money for it, but reserves the privilege of
refunding the money and keeping the
farm. Many men have been deprived of
their farms in this way at a very great
sacrifice. Unless one can see his way
clearly to reasonable prospect of having
the wherewith to meet the payments, he
should be cautious about making purchas-
es of real estate when he has not the
money to pay for it. ai' l-2T1fa 1iat'f
The credit system is costly; it involves
the use ofa greatly increased capital. If
a farmer must wait year for the money
for his beef, pork, wheat and other pro-
ducts, he would have to double that part
of his capital which represents all this
property,or heicould notpay wages, meet
expenses, provide seed and fertilizers and
sustain the numberless charges which fall
upon his business in the course of year
The people of whom he buys are in the
same predicament. They must have lar
ger buildings, greater risks, more insu7
rance, and otheF-extra- expenses. No
business man can afford to take risks;
least of al, can farmers afford it.. Security:
is the life of business and people should
provide against whatever event might
bring a loss to them, and make their esti-
mates SO. as to be sure of being on the safe
side, When one comes. to count up all
the time, money, anxiety and discourage
ment which it costs to recollect old debts
scattered here and there in small sums, he
will readily see that the credit system is
too costly a luxury for any farmer to af-
ford. .ADirgo Ruyak, Bangor, Maine. 4