The Greeley tribune., 1906-01-11

The editorial reIerreu 10 was puo'
lished in good faith and with the
best OF motives. 1t was written
with a view to bringing to the at
teption of debtor and creditor the
Injustice to both Of the excessive
credits being granted in this county.
1t is perhaps unfortunate for the
Tribune's editorial that a Greeley
merchant who is doing only a cash
business should have seen tit to have
it reprinted as an advertisement for
his store. The business men seemed
to have seen only good in this same
editorial until this happened. AS a
matter OF fact, If nothing went into
a newspaper except what would
please everybody, or at least dis
please nobody. we would have moth
ing but obituaries, drawn up by a
commission Of sorrowing relatives,
lust after deceased had been success
fully buried.
The figures as printed were simply
rough estimates, OF course. and II
the credit men say they are too high,
they ought to know, so we stand cor
rected. But we would have taken
the rebuke with a better
grace If the gentlemen had ac-
companied their resolution with a
few figures telling just what the loss
from the credit system in this COM
munity really is. Here are some
figures of the Tribune's making:
A merchant, neither lumberman
nor doctor, but grocer, say, has
IS, 900 average credits on his books;
a very conservative sum. If he bor-
rows money he pays ten per cent for
it,. II he owns it, it is still worth
ten per cent. Interest one year,
$500. If he has 5000 average
credits he will have close to 500 ac-
counts. To care for these will take
half the time of a fifteen dollar a
week bookkeeper. or 1890 year. 1t
will take a collector at least three
days every month to look after COL
lections. SO days at $3.50, or 800.
Statements will be mailed at least
four times year, calling for 1000
2-cent stamps, $40. Stationery,
$3.50. Now, let's see:
Interest, $500 at 10 per cent. $4,000
Bookkeeper half time. ............3 $4,000
Collector three days each month. 5000
Postage and printing .......... 475C
Total. sl,o27.5(
or loss Of over 20 per cent yearly on
his average credits. OF course the
above does not constitute a twenty
per cent loss on all credit business,
for not all nor even half the average
accounts run year, though many
run double or treble that time. In
some cases the merchant really col.
lects interest, though he is usually
glad enough to get the principal that
he willingly ignores the interest.
But, please note that the above
figures make no allowance whatever
for bad debts, and if only small
per cent be added to cover the fire.
quent total losses of this sort it will
be found that the Tribune's guess
wasn't so false and ridiculous as ii
looked. 1t would seem that even
the credit men saw something in it,
in spite of the above resolution, fol
before they adjourned they passed
the following:
Owing to the fact that the mem
bers of the Weld County Credit
Mems Association believe the exten.
sions of credit now existing has been
usurping the functions of the bank
ing business, and that further it has
been a detriment to both the pur.
chaser and the dealers of Weld
county, therefore be it
Resolved, that the extension O.
credit be limited to 30, 60 and 80
days, according to the nature of the
business involved, and at the end Of
that period the account must be
closed either by cash or ten per cent
interest bearing note. and that any
account running longer than these
periods shall be reported to the
secretary Of this association for ad-