Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1886-10-07
PAYING CASH.


Some OF the Evils of the Credit system In Re-
tail Business
G Perhaps in the millennium Ct those
who dream dreams have had fair visions,
people may pay as they go, and thus the
accounts may be vastly simplitied says
The San Francisco Chronicle. But until
that time comes we may look to see the
old credit system prevail, with all its
vices. And these vices are many. Their
chief result is that they make existence
hard struggle for thousands of honest
energetic business men; that they put q
premium on dishonesty; that they waste
good many estate in litigation, and that
they forcee tn men who pay cash to bear
a portion of the burden caused by the
improvidence or knavery of those who
live on credit. 1t is perhaps true as as
serted by political economist, that credit
has many advantages when properly
extended, but the tendency is always in
tho direction of carelessness. 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 to be deceived,
the cash plan seems the only safe one.
If adopted it would put an end to the
disturb the equilibrium of trade; and it
largely restrict the number of men engag-
ed 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 overcrowding of all
branches of mercantile business. Ten
men desire TO keep store and earn an
itk4tt, ooh. :,
mess for only one merchant. The fruit
of this is ruinous competition and
heavy percentage of failures, Every
failure means loss TO creditors, frequent
ly the Gripping of fine business houses
carried ON for years in an upright and
honorable manner. The general adoption
of the cash system would do much TO pre-
vent this overcrowding and it would com
pei honesty beside.
But even granting that in wholesale
trade the credit system offers many ad-
yantages TO merchants, of which IL would
be hardship TO deprive them, the same
argument can not be advanced in regard
to the retail trades. Here is the direct
meeting of the consumer with the mer-
chant, and there is no good reason why
the cash system should not prevail. We
have inherited the credit system of Eng
land. 1t is a relic of aristocracy which
argues that the plebean trader must be
kept III proper objection and 60 do this
is to withhold as long as possible the coin
tha4 rightfully belongs TO him. The
wealthy classes of our large eastern
cities adopted tho same ideas. II is no
uncommon incident TO find butchers,
grocers, and other retail dealers with UNI
paid accounts of millionaire customers
running over two or three years. These
men will tell you that they are perfectly
sure TO be paid in the end, unless their
customers fortunes should suddenly col
lapse, but that they are constantly ham
pered for the cash which these wealthy
customers could pay with ease, but APP
parently never dream of doing, save at
long intervals. The dealers send in their
bills regularly every three or six months,
but those limitations areee received as a
mere matter of routine, and il Ia seldom
that any attention is paid to them. Re
tail dealers in almost every department
of trade could parallel this instance.
There was a case recently of a dealer in
rare books in New York who failed be
cause he was unable TO collect the nc
counts on his books, many of them be-
longing to wealthy bibliophiles. If no
could have collected these debts which
represented only fair profit on what he
paid for the books, he would have escap-
ed the disaster that overwhelmed him af-
ter quarter of century % active bus
mess life