Spirit of Jefferson. [volume] (Charles Town, Va. [W. Va.]) 1844-1948, 1891-06-02
MISCELLANEOUS.
! Cash vs. Credit.

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Aside from the accident of the Rebellion,
which he took advantage Of to the fullest ex-
tent, nothing contributed to the success of the
the system of purchasing aud selling for cash.
In all the markets of the world his 6rm se-
cured the lowest priees and most favorable
consideration. His enormous purchases and
his prompt payments combined were match-
less arguments With the worlds menufactur-
ers, for close prices. Attached to his name
with any other in mercantile history. He has
been accused of harshness In his dealings. and
unnecessary severity in exacting TO the fullest
ex tent the precise requirements of q contract,
but this had its advantages, even If 1t car
ried with it no halo of mercy.
This man left an example and plan illus
trated by his own career, that viii have vast
influence on our domestic commerce. Already
wesee in nearly every important village the
t'cash'' store, or Its equivalent without the ae-
tnal designation. and upon further examina-
tion we ascertain that that class of merchant
is generally the leading progressive, money
making man in his line. .s
In the large cities the same principle Is OBJ
served with regard to merchants of q larger
GROWTH the large jobbing merchants with the
old-fashioned method of buying and selling on
long time ..credits prices that must necessarily
be attuned to the loss 10 interest aud the risks
is giving way to the man of modern methods
who buys and sells for cash.
This is very gratifying in every way, and es-
PecialIy as the plan is rapidly spreading. Re-
dect upon the dangers and uncertainties of the
credit system. The manufacturers must pur-
chase of the grower the raw materials ON cred
1t; another loss. The merchant sells to his GUS
toners on credit, who in turn sen on credit
Each vendor has necessarily included In his
price percentage for certain and probable
loss.
These percentages, when added by the con-
sumner, would be from twenty-five to one huu-
dred per cent above the intrinsic value of the
goods had they been sold thro' out for cash, on
the basis OF a reasonable profit. 1t may be too
strong astatement to mako that the CONNER
cial supremacy OF Europe is due to its manu-
facturers receiving cash for their work, but it
certainly is a most powerful auxiliary.
The man who mortgages his crops Of cotton
and tobacco while he Is planting them, to an
other man who will advance him his living
supplies, muat expect his advancing factor,
over and above legitimate pFofit, q certain
percentage for the risk OF tho venture and ac-
tual loss ofinterest. Owning the planter.
asit ik called in business, the factor generally
arranges his prices on the supplies advanced
TO the utmost limit allowed by the circum-
stances.
Were this Same planter to begin at the bot
tom and cultivate only so much as his reseur-
ees would allow him to manage with his own
capital. and buy for cash, he would soon be
his own master. Purchasing for cash Is pow
erful check upon extravaganza, and It's infu-
encein lowering prices cannot be disputed.
Stewart blazed the way, and the merchant
nowadays who would succeed must follow his
path, with but little hope Of friyaling the splen-
did mark he made. Those who lave most
closely followed his methods are those who
have made the most money and achieved the
best results.
The mammoth retail houses in our large
cities are those that buy and sell exclusively
for cash.
This principle OF buying for casb and selling
on the same terms enables the modern each
store to compete successfully in lines hitherto
deemed specific aud distluct.
The largest cash retail stores offbe cities now
keep such contrasting lines as druggists sun.
dries, ,Icauned meats, aaddlery, glassware, and
with their restaurants arc enabled TO supply
every requirement. II was o boast Of Stewart
that in his retail establishment he kept every
thing necessary for the wear of the outer
woman.
Mr.. Thurber, the great Wholesale grocer,
matched that condensed staternent by saying
that his establishment kept. everything nee.
essary for the inner man.
cash store to outdo them both, by combining
their separate cxeellenees.
The system Of selling for cash at small un-
form profit, II followed conscientIonsIy, re-
snIts Ia quotations. in odd figures, which are
sometimes, accidentIy or Intentionally, carried
to amusing absurdity. For instance, articles
are sometimes quoted d ninety -nine dollars
and NINETY y-nine cents, lacking one cent Of .
hundred dollars. This sYatem Of uneven price
Is not fully developed in the West, where the
copper cents are not freely employed, but in
the East the system il general, and whether d
not the firms using the uneven pliees really
charge q smaiI uniform and undesi4ting per
centage ofprofti they at least wish to convey
that idea
While this idea Of small uniform pfoht II
confederation Of an immediate cash payment
has hnd marvellous growth in the. retail dc
paLtmeut of trade, fts accepfancs by the whole
sale merchant has been slower for seYefnl rea
SONS. the principal being that the present ~
tenn Of whoIesaling dry goods Is one which can
mot be feyoIutionized quickly without almos
complete disoEg anizatiou of the individual
firms, but the Inevitable change Is not far dIs-
.tant and is aeeomp piishment wiz be m i'm
lmense step forward IN onr natl fOnal pro perity