The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1884-01-24
The Cash System.

The failures that have taken place
among farmers and merchants during
the past year would not have been 80
general had it not been for the loose and
unbusiness.like methods which are 80
prevalent. Ever since the war there has
been mania for engaging in large trans.
actions, and the idea of acquiring sudden
wealth has become so firmly fixed in the
minds of the people that its eradication
is matter of extreme difficulty. The
phenomenal success of a comparatively
small number seems to have set the rest
on fire, and they rush into all kinds OF
enterprises and speculatious without q
proper knowledge of the unyielding laws
of trade, and without being able to see
far enough into the future to avert the
disasters that even the ordinary vicissi.
tudes of the times render inevitable.
No business can have reasonable
probability of success unless it is founded
on adequate capital and is conducted
with prudence. A man who would be
certain to succeed in an enterprise which
corresponds in extent with his means,
only invites disaster when he initiates his
business by use of the fictitious capital
which an unwise credit system renders
only temporarily available. There are
instances OF the success of men who
have begun business without substantial
cash foundations, but they are few in
number, and should only serve to call at
tent;on to the risks involved in such ca.
ses. and to warn the many from hazard.
ing their all on such uncertain chances.
The man who goes in debt without
having q reasonable certainty of being
able to meet his payments when due,
does a wrong not only to his creditor,
but to himself, his family, and to the
community There is degree of IN.
certainty 10 all human transactions, and
it is altogether too common for men to
become oversanguine, and involve them
selves in debt in the hope of making
lucky hits and in anticipation of fortu.
nate contingencies which are of rare oc-
currence.
Credit is always dearly bought, even
where the security is ample. Interest is
a consuming fire that burns day and
night, and the percentage is always in
creased in proportion to the risks the
creditor takes, and in this those who will
pay are expected to cover the Losses oc-
casioned by those who do not.
A farmer enlarges his operations he.
yond his means. Land, stock and sup
plies are bought on credit; money is
borrowed to pay current expenses, and
perhaps be may do we'll for year or
.wo. This tempts him to greater risks.
In such cases it is only 8 question OF
time when the seasons will be unfavor-
able, crops short, and everything he has
will be forced on the market when there
is little or no demand, and he is ruined.
The same is true in regard to the mer'
chant. He buys largely on a credit or
with borrowed money. He is anxious to
sell, and is tempted to take great risks
by the high prices obtainable; Crops
are short, his collections fail, and bridg'
ing over his troubles from year to year
only postpones and intensifeS his dis
tress.
"NIisfortune, like a creditor severe,
rises in demand for her delay nothing
can be more true. Borrowing dulls the
edge of husbandry," and buying on
credit is the most extravagant kind OF
borrowing. There is but one absolutely
safe rule to insure success-let every one
pay as he goes, and he will be not only
sure to live within his income, but it will
not be long before basis for q perma,
ncnt prosperity will be laid that will
prove blessing through life.-Sauannah