The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1910-08-05
Retailers VIII Follow With In
auguration of "Spot Cash"
System to Apply to All the
Consumers in the City.
SWEEPING CHANGES IN
METHOD OF TRADING
Jobbers Demand Pay Within
a Week-MerchantS Start
Move Which viii Eventually
Cut Off Credit to Purchasers
INCLUDES ALL NECESSITIES

TT II the announced intention of the
wholesaler as well as the retailer
TO reVOiutiOniEe, IL not entirely
eliminate, the credit system, as IL ap-
plies to the necessities of life In Salt
Lake.
The opening wedge for the ultimate
inauguration of the "spOf-eash" sys-
tenn between the wholesaler and the
retailer was slipped In yesterday when
the latter was notified by the whole
sale produce dealers that on and after
Aug. 10, one week will be the limit on
all credit accounts between them.
II is said that II viii naturally fol-
low lhat the consumer at the retail
stores will be requested TO get the
habit" and that he Will either have TO
pay his bills weekly or slap down the
mazuma" on delivery OF a bill OF
goods.
The work Of educating the consumer
20 the cash or shOrt-time credit sys-
TEN will devolve upon the storekeeper.
The retail dealers assert that If the
cash or short-time credit system IL
strictly observed all around. much via
have been accomplished toward redue-
ing the cost Of living.
The argument is advanced that those
who are paying cash at the grocery
stores are paying from 10 to 20 per cent
more because their neighbOrs are con
stantiy running accounts in which they
are nearly always behind, and in some
instances never pay.
Makes Quick Settlement.
The wholesaler and jobber says he
is obliged TO pay sight drafts, which
are attached to bills of lading, for goods
purchased, and hence has TO have a
quick settlement in order TO avoid the
necessity of overdrafts at the banks
and high rate of interest
The retailer argues that he must
either have his money TO pay the
wholesaler or go out of business. The
consumer who earns but S2.25 a day
and with the present high prices has
to pay $3.50 a day 10 live, is trying 10
figure out how he is going TO exist.
The advice OF the retailer 10 the
working man is to either learn to live
strictly within his daily stipend or de-
mand higher wages.
Cash From Customers.
F. H. Weight, president of the Re
tail Merchants association, says that
il is his belief that the action of the
wholesalers in demanding weekly set
Elements OF accounts viii Of necessity
oblige the retail dealers TO exact the
same arrangement with their con-
sumers.
There are few retail grocery and
produce dealers in Salt Lake who are
financially able to carry delinquent
customers and long overdue balances
on accounts" said Mr.. Weight THE
the situation as 10 the credit system
as it now stands is getting 10 be dras-
tic
IF the retailer has to pay for his
goods at a certain time. 1T necessarily
follows that the customer must pay
his dealer at a certain time. The eon-
sumner must under the present cOndi-
ttOn of high prices, either learn TO live
within his income, or insist upon an in
creased wage from his employer
hal har oh
even the weekly payment system
would result in a reduced cost OF liV-
ing expenses.
ut is easy enough 10 understand the
situation which has brought the COM
mission men to the point where they
demand weekly payments OF accounts
II is because so many people come &C
Salt Lake and open up small grocery
stores with little or no capital The
commission men solicit his trade. He
pays his bills promptly for a while
then he falls behind more and more
until he is finally forced TO make an
assignment"
The proposed revised credit system
OF course, Is viewed from various an
Continued on Page Eleven.)