Southern standard. (McMinnville, Tenn.) 1879-current, 1890-12-13

note is secured by mortgage. He has
been in his present business thirty
years and has been successful, and is
considered a shrewd business man.
He is a subscriber to both Dun's and
Bradstreet's commercial agencies, and
he does not give credit without an
investigation of his own. Certainly
few will have fewer bad debts or less
trouble and expense in collecting.
Yet he loses about eight per cent. of
his total sales, and the expense of his
collection department is fully as
much. 1t is time that a note for 800
be paid. 1t is sent to a bank 500
miles away, near the maker of the
note. The bank fails to collect. The
note is put in the hands of an attor-
ney, who will charge at least ten per
cent. if he collect without suit. Per-
haps suit must be brought, land when,
after months, the note is collected,
the manufacturer gets for his share
perhaps half of it. During these
months he is out the use of his mon-
ey and at the expense of frequent COR
respondence with his attorney. And
every sale made on credit makes adj
ditional bookkeeping necessary.
1t will be hard for readers ofsuch
paper as this, who pay cash or meet
their obligations promptly, to believe
to what expense and loss manu>
facturers are put by the credit system.
l have a friend whose business it is to
collect claims of distant manufacturers
of farm machinery. He makes $4,000
per year clear; the manufacturers
get about $4,000; his expenses are
81, 900, and court costs 81 500, while
s., 900 is nOn-collectible.
Perhaps now the reader will be
able to perceive enough of the inside
workings of the farm-machinery
trade to see that between cash and
credit there is a difference of nearly
90 per cent. of total sales-worth OF
money, bad debts and expenses OF
collection Who pays this 20 per
cent? The farmers. 1t is added to
the price they pay; and the trouble
is that the manufacturer, jobber OF
State agent cannot discriminate be-
tween the farmer that pays cash and
the one that does not, and both alike
pay the added 20 per cent. You,whC
pay cash, pay share of the expense
and loss occasioned by your neighbol
who buys on time.
Frequently the credit system add;
more than 20 per cent. to the price
you pay. The local agent meets with
bad debts, and is put to an expense
to collect. He must add to the price
enough to cover this. The county
agent meets with bad debts and il
put to expense to collect. He mus
add to his price enough to cover this
So with the State agent and the job
Der, and the expense of every one o
them for bookkeeping, correspon
dence and stationery is multipliec
by the credit system. When al
have made their addition to tn
price, it has swelled nightly.
The credit system and its effect
are not confined to the farm-machin
cry trade; they appear in the trad
of nearly everything that we buy
You doubtless pay cash for the gro
ceries and other things that you bu
at the village store, but your neigh
. Dor does not. BY his action he add
to the price you must pay. Nearl
everything we purchase is thus a
fected. Twenty or even ten per cen
; Of our yearly purchases would be
handsome saving; hence we ma
well be deeply interested in aremed
D for the effects of the credit system
! whether we buy for cash or not.
q JOHN M. STAHL.
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