The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1907-10-31
Cash Against Credit.
Cash Trade the Only Basis Of Sound
Trade-There Really is Nothing
to Warrant the Credit System
and it Ought be Abolished
Present Method Works Hardship
to Retail Merchant Who Has His
Own Obligations to Meet.
New Bern Journal.

New Bern Journal
How often is seen the notice in the
local newspaper, that those who owe
Mr.. Groceryman, Mr.. Butcher, or
Miss Dry Goods, will please call at
once and make payment of their ac-
counts, as the money is needed, and
the credit has been too long extended.
The meaning of this request needs
no explanation. The situation is,
that the merchant has given credit
to some customer, has been imposed
upon. What is the result of the credit
system? Except the merchant may
discount his own purchases and have
ample money to carry accounts the
end is bankruptcy.
And each month the merchant who
gives credit, that is credit beyond 80
days, or credit that has to be
chased by a collector, is finding the
situation growing more desperate.
The announcement of another rise in
the price of breadstuffs, is going to
make the merchant who does business
on a ten per cent. or less possible
profit margin, look sharply that his
books are not filled wit h articles
charged on account.
Thirty per cent. advance in the
butchers and grOceryman' bills, for
the consumer to pay over last years
prices. Fruits, vegetables, milk, but
ter, eggs, because of decreased sup
plies. Canned goods and dried fruits
have been steadily advancing the
past three years, and this year an in
crease of 20 per cent. has been made.
The tomato crop will be 60 per cent.
and the prices OF the canned articles
are expected advance from IS cents
| to 5 a dozen in wholesale lots. Sweet
corn in the can already has gone from
40 to Is cents per dozen. Prunes, con-
stituting the largest tonnage of Cali
| fornia dried fruits will advance 33
| 1-3 per cent. over the average price
for the last five years. The produc-
ton is little more than one-third of
| last season. There will be an advance
in price of California peaches of 10
per cent. Pacific coast beans will cost
% per cent more than usual, while
Eastern beans will advance even
more.
This is startling advance for the
family provider, for any consumer,
but from the retail merchants side,
can he any longer continue the cred
it system, and hope to remain in
business, much less expect to make
even living? In New Bern, the cred
it business ought to Igo. The la
borer gets cash for his labor, and
every wage Garner has his or her
money when it is due. Every week,
Or not over thirty days is the pay
day for all who work, and they can
settle any account made within that
| time. The local merchant should ar
range his business upon the cash
basis, and not give a credit for a
week, much less thirty days, that is
not certain of cash settlement in
that time, not by the merchant hav-
ing to plead, chase or threaten, but
by the customer visiting the store
and Justly settling by cash payment
for the goods that came over the
coulter to him or her. There is
nothing to warrant any credit sys-
tenn. The money,is behind every pur-
chase, or it ought not to be made,
and the merchant who credits such
buying is going to lose.
There is no chance for mercantile
success, with credit the basis. Cash
trade, is the honest and only sound
basis. There is no reason why New
Bern cannot get down to a cash
| basis. Those who do SO will find
their burdens drop away, and their
depression over past due accounts a
vision of the past.