Macon beacon. [volume] (Macon, Miss.) 1859-1995, 1886-10-23
PAYING CASH.
A system of Doing Business Which should
lie Enforced nv Merchants.

A system of Doing Business hich Snoulo
lie Enforced by Merchants.
Perhaps in the millennium. of which
those who dream dreams have had fair
visions, people may pay as they go,
and thus the accounts Of the world
will be vastly >impliied; but until that
time comes we may look 10 see the old
credit system prevail, with all its vices.
And these vices are many. Theirchief
result is that they make existence 4
hard struggle for thousands Of honest
and en- crgctic busiues' men; that they
put a premium on dishonesty; that they
waste many a good estate in litigation,
and that they force the men who pay
cash to bear a portion of the burden
caused by the improyidence or knavery
of those who live on credit. 1t is per-
haps true, as asserted by political
economists, that credit has many adj
vantages when properly extended, but
the tendency is always in the direction
of carelessne>S. If men could always
Judge the integrity Of their neighbors
accurately. the credit system would be
deprived Of half its dangers. But as
we are all liable 10 be deceived. the
cash plan seems the only safe he. II
adopted it would put an end to the
speculative ventures which 50 frequent
~ disturb the equilibrium of trade, and
it would largely restrict the numbered
men engaged in all kinds of business,
and would force these men into more
productive branches of industry. One
Of the worst evils of the large cities, in
this as in all other countries, is the
oyercrowding of all branches Of mer-
| camille business, Ten men desire, TO
keep a store and earn an easy living
where there is Legitimate business for
| one merchant. Thefruit of this is ruinouS
competition and a heavy percentage of
| failures. Every failure means loss to
creditors, frequently the gripping of
fine business houses carried on tor
years in an upright and honorable
manner. The general adoption Of the
cash system would do much 10 prevent
this oycrcrowding, and it would COM
pei honesty in trade.
But even granting that in wholesale
trade the credit system offers many adj
vantages to merchants, Of which 1t
would be a hardship to deprive them.
the same argument can not be adj
yanccd in regard to the retail trades.
Here it is the direct meeting OF the con-
sumner with the merchant, and there is
no good reason why the cash system
should not prevail, We have inherited
the credit system from England. It is
a relic Of an aristocracy which argues
that the plebcian trader must be kept
IN proper subjcctiou, and the best
means to do this is to withhold as long
AS possible the coin which righttuliy
belongs to him. The wealthy classes
in our large Eastern cities have adopted
the same ideas. 1t isno uncommon in
cident to find butchers, groccrs and
other retail dealers Of New York with
unpaid accounts OF millionaire custom
crS. running over two or three wears.
These men will tell YOU that they are
perfectly sure to be paid in the end,
unless their customers fortunes ,hould
suddenly collapse. but that they ar
: constantly hampcred for the caef
which these wealthy customers coulc
+ pay with ease, but apparently never
I dream OF doing. save at long intervals
| The dealers send in their bills rcgu
larly every three II six months, bu
+ those limitations are received as a mcr,
matter of routine, and it is seldom tina
, any attention is paid to them. Retail
. dealers in almost every department o
trade could parallel this instance
There was a case recently Of a deale
in rare books in New York who talle'
because he was unable to collect tn
accounts on his books. many OF Their
belonging to wealthy bibliophiles. !
a he could have collected these debts
which represented only a fair profit o
e what he paid for the books, he woul
have escaped the disaster that over
d whelmcd him after a quarter of n cen
fury of active business life.
ii Retail dealers there are, few and IA
5 between, who enforce the cash systcl
and who give to purchasers with tn
20 ready coin the advantages which sue
20 payment ought to bring, But the grci
g majority of retail dealers are bound /
l. conservative tradition, and 90 on
the old way, losing a liberal percentaa
of their profits in bad debts, and rca'
iusting matters by putting an exit
-. burden Of charge on the shoulders
the cash purchasers. The system, pu
IN sued in nearly all branches of trad
" makes living dear ever where the ia