The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1910-08-20
CASH OR CREDIT.

Others besides the Salt Lake pro
duce dealers have raised the question
OF more prompt payment Of bills. II
has been attracting attention all over
the country, and great light is being
shed by some Of the interested par
ties.
At a meeting in Brooklyn the other
night the president Of the New York
Wholesale Grocers' association de-
clared that indiseriminate credit
helped to increase the cost Of living.
The indianapolis News takes note Of
this assertion and says:
There is no doubt that many persons
who run bills buy less econOm-
ically and Discriminatory than
they would If they paid cash.
They are surprised at the size
of the bill when they get II, but
II seems impossible for them 10
learn caution. so they continue
10 be surprised at each bill as IT
is received. Furthermore, there
are the people who get credit and
then do not pay their bills. The
Oretically this is a loss TO the
dealer, but practically all these
bills are paid by the people who
keep their credit good by paying
their own bills. Prices are fixed
at figures that viii provide
profit even after the dealer sur
fers the losses caused by dead
beats.
Nor is this the only way in which
some people help to pay the liv-
ing expenses of others. Nearly
all retailers encourage patrons 10
open accounts. The theory Is,
and undoubtedly it is in the main
q correct one, that such people
will buy more literally than if
they paid cash. Most of them,
OF course, pay their bills, but
sometimes they are a long time
about doing so. If, however, they
intend TO pay and eventually 10
pay, their cOnsciences are clear.
One factor, however, they do not
consider and that is that any
money in the form OF a loan is
required 70 pay interest in some
way. They do not realize that
they are in fact borrowing the
dealers money for whatever time
they allow their bills TO remain
unpaid. Now the dealer could
use such money TO advantage In
his business. If ne could get the
cash he could discount his own
bills and thus effect a saving
which, If il were general, would
probably be reflected in his prices
10 consumers.
AS IT is, he cannot discount his bills.
and in order to meet the greater
OutgO, he must make his prices
higher BY this means the people
who pay cash or pay promptly
are compelled through higher
prices, to help pay the interest on
the money which is lent by the
dealer in the form of credit.
OF course, this is an established GUS
tom. 1t has existed from time
immemOrial, and viii doubtless
continue to exist as long as re-
tail business is done. But it
might make people. who would
scOrn to accept a loan without
paying interest land in fact could
not get a loan without paying in
terest) less Indifferent if they
would realize that their cash
paying neighbors are helping TO
pay the interest on the money
thus borrowed from the dealer
in the form OF credit purchases.
If it be true that the merchant fig
ures in his bad bills when fixing the
price of his goods in order to come
out even. it is time the fellow who
pays once in a while. instead Of spot
cash, begins to figure out his losses
under that careless system. Credit is
ofttimes a curse, instead of an ac-