The Idaho recorder. [volume] (Salmon City, Idaho) 1886-1927, 1914-06-11
FAULTS
OF CREDIT
SYSTEM


Several of the business hrms Of
Salmon a.e adopting the cash basis
for the conduct OF their business
and others are contemplating such
movement. Tie following article
from the Northeastern Stockmau
ana Farmer gives very comprehen-
siye review uf the evils oft he credit
system:
The credit system, as IL y used !
4 In mnst cases Ii snare and delusion 4
Ii not only ruins many men hut |
seriously Injuries the country. When
times are good business meb ex-
/ tend unlimited credit with litil II
any investigation. A quiet period
follows aud everybody IL called on
for what he owes. with demand on
everyone for money, property de
ellnss and the man who Is compelled
To pay up tnds he Is unable TO real
iEe from his assets except at ruin
business man becomes sadly aware
that he cannot collect from n number
af his customers. What he owes l.
not decreased Ia proportion Ia his
problem Of how tn overcome these
losses or be over whtlmed In the
seeLhinv whirlpool OF caiis for cash
when cash is not 10 bi had. OeneF'
t.li h.. fNi. IN a.
charging u higher price for his goods,
The fesul, rs injustice 10 good aIen
the m-n vino pay cash.
Under the system In vogue Ia most
places We will suppose man buvs
loaf OF bread. lie may pay cash fnT
II aud take it with him or h- may
have II charged; or, he may have
il delivered and charged, ] { the lat
ten the business man must take time
TO enter the ctafge on his books aud
IL the loaf OF bread Is the only puT'
chase at the time, the cost 81 de-
> liyery will equal the charge, so
: the merchant has nothing TO pay Tor
his work or his goods, with the risk
Of losiog the amount he has paid to
effect the delivery.
IL would seem that the person
'"ho pays cash for what "s buys aud
!. takes his purchase with him should
he quoted "A better price than the
person who has goods charged and
sent home by delivery. II certainly
Is not iair that cash customers should
make ny the losses . business man
= suffers through those that hs trusts.
y Within 10 Ia 30 miles OF every city
! there are fAmers who drive Ia and
make their purchases, which they
take home ~ithuut expense 10 th'
}, storekeepef. Should not these per
ie sons he given better price thar
It sh"se wh0 put the merchant Ia th'
= expense 81 delivering and " they pal
II cash To better price than when pur
~ chasing on 70 days timer Il II no
j. often times true that a dollar IL
10 cash IL worth two on the road.
Under our present credit svsten
Il the good customers are punished 10
al the dslinqusncies OF Others. A pre-
i. milm IL offersi ID the msn wb'
doesn't pay his bills, u by hook o
~ crouk he can manage To- keep frou
~ doing so.
Ia A radical change n needed whereof
~ the good cash customer viii be glssI
such advantage A will sncourag
ot others TO pay as they go.
t. THE writer RENE nibers the tim
aben bills came In from the store
i, ssepefs once year IL vi" time q
terror. They we're always muc
largsr than anticipated. Why should
1T ihey bsf What need had tisT
is-en f0 self denial or the practic
~s - er0n0my When all one had TO q
~ Aas /" go ia the store Tor Whist h
.antsd and have IL ehArsedf
- In business later on he vas a.
Vi nrst uBs in the place 10 make at
hs "a. biiis the arst 0f esrrg moBti
nd nd OCCASIONALLY some bills ssss -,
at. collectubie. But IL gas bsttsT
al and this out when thsy we're suiA
ca instead % t-slng thsn large
"a. M0ting to another place. "hel
the, toOk yearI, hlll rendering, 81
.nu the practice he tn'k hDld
X. to0ks shsfe there Nsfs castotDs
,fu ou lng ihs house Thousands ~ dOiia
Al Mere th1~s bills paid On p'-ssnt
IA, ilonf Nstsr. ln sumo instaBc
a touk years % collect tie b~St
ibsm. In tie nssntin=, tbOss ~
ssn. trrAnssrred their business
k., other bousss.
80, BuVins or essh makes . a An u,
-, ana thInk bsfors asking pufciass
b. must go Ia deo( ~. 4 tsr
his barksr Shy should tue bnstns
ssf. nan borrow a.onsy st . god rate
! Of inisr-si sDd tfust his eustoesfs ~
nd. gnoi, puled At th- ssais prices
In, aaotss etsb customer When
Sol. doe. tlis he simply o1sD prsmil
.t8s on disi0Bsssy.
ore
-, ft.r a. Cssansfl has uiuYeg into I