The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1914-12-19
PAYMENT OF DEBTS.
Consumer Holds the Kcy to the Sit
uQtiOE.

uatiOE.
To the Editor Of The Sumter Item:
Goods Sold for Cash Only. After
January l."
wonder how the consumers of the
State of South Carolina would like to
see this sign L~er the doors OF most
of the retail stores In the State?
wonder II the average consumer
realizes that 80 to 95 cents out of
every dollar he owes the groceryman,
the dry goods man or the hardware
man Is due In turn from him to those
who supply him with goods. own the
store he occupies. or help him to con-
duct the business?
wonder how a farmer would feel
toward q merchant. If he were to sell
him his cotton and then the mer-
chant were to refuse to pay him 80
that tho land and home of the Sarmer
would be sold to pay debts that he had
expected to pay with the money from
his cotton? He would feel he had
been very badly treated. Is this any
worse than the farmer or consumer
treats the merchant when he refuses.
or fails. to pay debts he owes for
goods he purchased and used; es-
pecially when, as Is often the case,
such failures. by few farmers or
consumers. results in store and often
other property of the merchant being
sold by the courts to pay debts the
merchant could easily have paid with
the money he expected, and should
have received. from the consumer
who owed him for goods they had
received and used?
We often hear the assertion that
farmers can not afford to borrow
money on their cotton to pay their
debts. that the interest costs too
much. Can the merchant any more
afford to borrow money at banks to
pay his debts. which he must do, IL
he can not collect on the accounts
due him?
Business In the South is dead
locked" and the consumer holds the
key to the situation.
II consumers were to pay their OBJ
legations to the retailer. or even a con-
siderable part Of 1t. the financial strain
would be relieved. and business grad
ually return to normal. II farmers
would sell part Of cotton or borrow
money on 1t, after storing 1t in public
warehouses. and pay part at least of
their obligations. or even give mer-
chant notes. secured properly by
receipts II necessary. for
80. 60 or 80 days. 1t would greatly
relieve the merchant and would be
appreciated.
Retail merchants Of the South vii,
be compelled to greatly restrict their
credit sales for next year, probably
less than half as much goods will be
sold on credit in 1915 as In 1914.
The farmer who expects a line Of
credit In 1915 would do we'll to make
arrangements to satisfy his obligations
for 1914.
II would be impossible for most
to accept cotton at 10 cents
per pound on account, as is often de-
because many have accounts
due them which amount to several
times the capital invested, and the
difference between 10 cents and mar
ket price today on tho cotton they
would have to take on accounts, would
more than equal their profits on sales
and In many cases their entire capi-
tai invested. To illustrate, suppose q
merchant has a capital of $1,000 and
his credit sales have been say. $4,000
which Is not an unusual proportion.
SUPPOSE he took cotton at 10 cents
per pound. To hold this cotton, with
? view Of an advance. is impossible,
that Is to hold all of 1t. To sell at
present market price. around 7 cents,
would bring $4,000 net cash. II
credit sales were $4,000 probably
cost of goods and expenses Of doing
business were about 10 per cent. less,
or $4,000. Very few merchants make
more than 10 per cent. net profit on
sales. Thus the merchant with obli-
gatons OF $4,000. actually has re-
,eived only $21 900 net cash from his
accounts. or Sc 900 less than he has