St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-05-27

patton of payments. We do just the
same thing, only we sell the time pur.
chaser at the same price as the cash
purchaser, and add the bare cost OF car
lying his account. viz. S per cent, at the
same time specifying that pr0p0rtionate
rebate will be allowed for anticipated
payments, while, it full payment is
made within sixty days, full rebate is
made.
All the above is simply intended to
make plain the reason why we believe
we are uhprejudic ed. and can be
thoroughly impartial in our judgment
regarding the merits Of the installment
or contract plan; for it is absolutely i'm
material to US whether we sell for spot
cash or otherwise. II one pays cash we
thank him and give him Il receipted bill.
If he pays part cash only. and the bal
ance per month. We thank him just as
much. He gets the same price as the
spot cash customer. while paying us the
bare cost of handling his deferred pay
ments; with this difference that his re-
celpted bill does not come to him until
his final payment is made.
AS this article is not intended as
communication of our plan of doing
business, but simply as an expression
OF our Judgment regarding the desirable
lty of the contract or credit plan to
those who find it impossible or incon-
venlent to pay spot cash, we will state
| that it is. i'll our minds, simply all
| extension to private individuals of the
credit plan in use by merchants, manu-.
facturers, capitalists and all those who.
being in business and having soIue
rated commercial responsibility, are
| entitled to more or less credit. If in
| dlvldual wage earnerS were possessed
J OF that fixed commercial rating which
would enable merchants to sell them
their goods and take their bare promise
i to pay, things would be very much sim
| plified; but a moments thought will
| convince thinking person Chat the
! great bulk of the community
HAS NO FIXED BASIS OF CREDIT
| and. therefore, the merchant who
would take the simple promise TO pay of
| anyone and everyone to whom he offered
| his wares would be Ill business for
i himself but very short time. 1t has
| therefore been found necessary to have
some legal instrument as simple as pos
| sible, which would protect the mer-
chant; save the purchaser the annoy
ance and delay OF an investigation of
| his personal responsibility there being.
| as before stated, 10 fiXedand advertised
basis or credit Of Individually. and
which, while securing the merchant
against loss resulting from indefinite
credit (thus protecting his own credit).
| would enable the purchaser to secure
| immediate possession aud use of the
goods.
Very few appreciate the magnitude of
the contract or installment business. or
! the immense volume of merchandise
distributed under it. 1t is undoubtedly
no eXaggeration to state that were
| things regulated to the cash basis pure
and simple (and we are not speaking
now OF mercantile credit. but of pur-
/ ctases under the contract or INSTALL
| meut plam over 0ne-half of the business
now done IN household goods, musical
| instruments, sewing machines, to say
nothing Of farm machinery, and, in fact,
| everything except the most peIisha bic
| kind of merchandise, would stop in
! stantly.
| One thing appears here at once, viz. !:
That there is a natural demand for the
accommodation granted by the plan.
! Ii, therefore, there Is demand, and if
| this contract or installment plan simply
means an extension to individuals of
| mercantile credit, 1t would appear that,
properly handled, it was great bless
| ing.
1t is true that occasionally a person,
through misfortune or otherwise, is un-
| able to meet his payments exactly as
| promised.
There can possibly he but two "outs"
| to the lnStallment plan. One is that its
very convenience may lead to a larger
incurred obligation on the part of the
| purchaser than his circumstances and
i prospects warrant. The other that,
through cause beyond his control. he
may be unable to meet his payments,
| and thereby be placed in danger of
losing what he has already paid.
| 10 the first of these objections we
| would state that with from 5000 to 5000
=, customers constantly or our books to
| judge from. it is not one in hundred
who overbuys. People who earn their
| money by the sweat of their brows are
| the ones who know its value, and, as
| demonstrated by our experience, are
the ones who use the most care in incur
| ring future obligations. 1t is only
| those of speculative turn of mind who
! purchase more than they can pay for
and even then, with promise to pay
staring them In the face, are usually far
| more conservative i'll their purchases
| than If il was a simple open account,
: pay-as-yOu-pleaSe transaction, or even a
| cash transaction, pure and simple.
! The second objection, that, through
| unforeseen causes, it is possible in very
exceptional cases to lose what one has
paid, through inability to continue
promised payments. is valid. provided
| the merchant always insists on the
strict fultillment of the letter of his con-
| tract with his customer.
| The same objection could be made,
| however, to mortgages on real
estate; in fact to all obligations
with connected contingent
| penalty. Our books will show, and we
have no doubt that Commissioner Pow
| ers will substantiate our statement as
! the result of recent and most thorough
Investigation of some thousands of con-
tracts. that those contracts which ars
defaulted are infinitesimal as compared
| with the total number entered into, and
that the great bulk of these are closed
at the request of the purchaser
himself. when, for various PERSONS,
removal or otherwise, he prefers to dis
continue paying, and surrenderS the Sc
curity.
The fact is that the merchant will ex-
haust every resource and remedy, will
grant extensions, reduce payments. do
anything rather than resume possession
of the goods covered by contract, for two