Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1884-10-11

concerning credits were long ago repealed,
but some limited enactments remain; as,
that supplies can be furnished infants III
the law (minors) only according to their
station in life, and even ratification on at
tainment of majority will not give legal
claim beyond that limit. AS to the extent
of credit compared with the volume of
business. there is less of the former in pro-
portion 20 the latter than there was ten or
twelve wears ago. In retail business the
cash system has been rapidly gaining
ground, and ii is promoted by the cooper
alive systems These latter are growing
marvelously, and are of vast benefit to the
laborinS and middle classes. The elabora-
ton on this topic in many of the reports is
so frarght with new interest that we shall
make it the subject of distinct article.
AS to the classes of evils of credit, the
report shows that within proper limits
credit is recognized in England, as in all
modern communities, as useful, and the
evils of it reside in its excess. Invariably
the lower classes suffer most from the ills
OF credit. The large class of men who
come into small legacies, or hoard up small
sums and seem possessed of an uncon-
trollable desire to ego into business, are
great sufferers. They lack experience,
they sell upon credit, their customers are
largely bad in repayment; the manage
ment is apt to be loose, and, as their small
capital is tied up largely in supplies Grip
pied by credit, they soon come to grief. To
all such the granting of credit is positive
evil There is no single commodity dealt in
at Manchester that commands cash return
in preference to any other, but raw pro-
duce is more truly cash article than when
| manufactured, since the former may be
sold at any moment or money be borrowed
upon il, but the manufactured article must
await Il demand.
We must pass for the present, the con-
sideration Of credits of record, Us mortgages,
| judgements, etc; bankruptcy and dis
charge from debt; resumption by the bank
and the general effects of credit, as these
subjects present in hundred phrases &C
cording TO the conditions of trade III Yari-
Gus countries the laws, customs and con-
trolling factors of commerce.
There are considerations as to the stimu-
ating effect of credit that rise into philo-
sophical importance according to some Of
the reports Thus, we are told that in
Auckland the confidence IF the public in
the honesty and capacity of merchant is
proportional to his ability to secure credit.
He who gives credit takes part of the risk
OF the debtors enterprise, and is thus in
terested in It's success, and does all he can
to forward IT, But there seems TO be no
account taken, according to this report of
and capabiity which is elsewhere extended
TO the man who pays cash, and whose sue
cess is not dependent upon obtaining credit.
Yet the fact of cash-down arguments being
invariably made, measures the ability TO
obtain credit Hence Consul Griffin should
have stated the latter premise as part of
his syllogism.
From Spain comes the statement that
bankruptcy is less prevalent than in any
other country in the whole of Europe.
From Holland we learn of sumptuary
laws relating to credit, under which
the creditor may be punished
by Imprisonment for any of these
acts of bankruptcy extravaganza in house
hold expenses; losing at gaming, or in
hazardous operations depending merely on
chance; raising money, or selling goods az
q loss and below market price, when the
assets amount to less than 60 per cent of
the debts; issuing commercial paper for
more than three times the amount of assets.
One of the most interesting papers in the
volume is by an expert on chartered ac-
countants in England. These constitute an
association of over 200 skilled account
ants, acting under royal charter, and by the
aid of which any firm or individual for
small sum can have the books, accounts
and details of his business supervised, cx-
ported. detected and reported upon in the
most thorough and rapid manner 1t is
conceived 20 be an almost certain check
upon dctalcaiion, upon false ideas of ones
business condition, false balances and pecu-
lation by subordinates, and is looked upon
i'll England as an Indispensable system. 1t
is learned that this method is to De intro
duced into the United States where, if all
that is claimed for it is sound, there is Il
wide field For its operation.