El Paso herald. (El Paso, Tex.) 1901-1931, 1910-04-08

on a credit basis. A few of our mer-
chants have started out on q cash basis
and have followed it out consistently
and have made it pay, but these may
be counted on the fingers OF one hand
But, whenever a concern once does
credit business and then goes on cash
basis its, Jays are numbered-ere long
It has to close its doors and retire from
the field. There have been two recent
examples of this kind here in FL Paso.
Facilitate Trade.
The object of credit dealings is 10
facilitate trade. Undoubtedly it is han
der to send out goods charged and
have them left than it is to send a
c. o. d. to the housewife. and then find
she is not at home or else has a $40
bill that no one in the neighborhood
can change. Then if the delivery Is
made and the money paid, the delivery
boy has 10 make an accounting upon
his return to the store during the bus
Jest part of the day.
A c. o. D. customer is not a regular
customer. Our best business me1 have
found that a large and steady business
cannot be built up along these lines.
Most People Pay Their Bills.
It is clear. then, that thorough
knowledge of credit ratings is essen
records of the Business Mems Protec-
tive association, of which I have had
the honor to be secretary since its Or
ganizatfon. show that over 80 percent
OF the people of FL Paso pay their bills
promptly. 1t is to take care of the 10
percent that are either slow pay or
totally bad that has called this asso-
citation into being.
It's effect has been during the two
years and half OF its existence, to
make difficult if not impossible the
abuse Of this credit privilege 1t is
protection not only to the business
men. but to the 80 percent of custom
ers who pay their bills when due.
Through its good offices it enables
responsible man that may come TO re-
side among us to establish credit
standing by furnishing the associa-
ton with credentials from those who
knew him from whence he came
Theory of Credits.
The theory Of credits is that the fu-
ture is to be read by the past II |
man has always met his obligations
promptly, heretofore he will most like |
~ do so in the future. This like all |
other theories does not always work /
out in practice
Tt is said that some customers will |
a store; after a month or two they |
will ask for little accommodation |
until pay day. and, when due, may |
pay up promptly. A good credit is /
thus esta blished- But pretty soon this !
individual pays part only Of his ac-
count, giving as an excuse that his |
house ren had to, be paid In the |
course off three or four months such 1
customer can owe a merchant for
SIS or $50. and then-Jnove to some other
part eff town and de- the-same thing
over. >------
Cooperation of Merchants.
Formerly. merchants Of our city have
let such customers go ahead with their
work saying, They have stung me, let
them do my competitor also. But now
such cases are reported to the Protec-
tive association. which is merely a
clearing house Of. credit information,
and such work is prevented.
]. myself, saved $3.50 which 1 am
satisfied / would have lost on one per-
son had 1t not have been for the asso-
citation, and in another case / trusted
a young "spurtif for SIS, although
warned by the association that he
would not pay others. Isfancied, how
ever. that he would certainly pay me
but ne didn't
toners. and cause you to lose them.
They will avoid your place of bust
ness when they have the cash to spend. |
On the other hand If you force them
to pay you, you not only gain the
money they pay. but you also gain
their respect and future patronage.
Spare the rod and spoil the Gus
TONER"
The Cause of Bad Debts.
The cause of the majority of delin-
quencies is laziness or vicious habits.
Moving picture shows and automobiles
have been the cause of more bad debts
than anything else-whisky included
AS Mr. McCawber said: Your income
one pound per week, your expenses one ,
pound one shilling-result misery.
Your income one pound. your expenses :
10 shillings-result happiness" Z
Credit is something sacred. and the
man who abuses it deals blow TO the q
very life of business. He forces the
merchant to charge up his losses d
against the customer who pays his {
debts. He is nothing more than a h
confidence man'Hone VINO violates
the confidence placed in him. IAN
honest man is the noblest work Of F
God" and the prompt paying customer
Is like a shining jewel. Be careful Of
your fool friends-you watch your enc 4
mics already
The chamber of commerce can well
take up the question Of remedial legis-
lation. which Texas sadly needs. To 7
you. 1 would recommend the 10 per-
cent garnishment law, which is in force
in some of our states Have it so a
mans wages could be garnisheed to the
amount of 10 lpercent Of what he
makes. This would bring bat little c;
hardship upon his family and wou'd Ct
stop a great deal Of loss from bad L
credits. Il
Small LOSSES. a
The records of the most successful d
merchants show the smallest amount &
Of loss from bad credits. One Of our
largest business houses, whose deal :,
ngs on a credit basis amount to hun a
lreds of thousands per year. proudly .
boasts that its losses amount to bur K
Dne-fourth of one percent of its credit r
business. Needless to say it is con-
slant user Of the services of the Pro- \
tective association and its credit man
S active in its support
cho,116 he 4