The Richmond Virginian. (Richmond, Va.) 1910-1920, 1916-11-12
The Retailer S Side

4Ae following article. showing the
onntty for using sound. impartial
a1o1Enent In granting credits, was FUR
N11nod The Atlanta Retailers Journal
&ocoutly by z. l. Adams, one OF the
I fnAaine wholesale grocers OF Atlanta,
Ia ! director Of the Southern Whole
80 0rocers Association:
Merchants OF all classes are neither
uwoducers nor consumers. so far as
GSolr avocAtions are concerned. and
4 &>o&f Ouly claim to the right OF exist
- = IN the fact that they serve the
rFOducfng and consuming classes. This
q done By economically assembling
Ne necessities Of life from those who
pfoduce them ana the economically
distributing them TO those who con-
osme them, for which service they are
entitled TO at least reasonable COM
sensation for both the labor aad capt.
~ involved. Whether or not that
compensation has been received can
only be determined after all expenses
are paid, all shrinkages OF every ma
Hnfe are charged or and all losses
&fjsinE out OF failure TO receive pay
tor Goods handled and services rem
0ered are covered.
by Tar the most important. a. be-
tween assembling and distributing. Is
thu latter. as II Is 10 that feature of
his work that a merchant must look
Tor returns that viii guarantee TO him
tust remuneration.
Credit a Convenience.
"A consumer receives for his labor
a. skill compensation in money. He
must have the necessities of life, and
- he needs these worse than he does
HIS money he must exchange his
money for them. He, therefore. seeks
cut place where he can make such
IN exchange, and the merchant who
prepAres 10 make the exchange for
HIN - performing a service for which
~ 10 supposed to receive . margin
~ profit over cost sufficient to reim-
burss him, and no more than that
should be exacted When the ex-
change has been made the transac-
ton is closed and there should rest no
further obligation on the part of one
% the other Unfortunately however.
there seems for some cause or other
(which cause we will not undertake
% discuss here) to have sprung up
VASTLY too many merchants as COM
pared with the consuming demand
which fact has resulted In an over
anxiety on the part OF merchants for
business. and this anxiety has fostered
and crystalized sentiment on the
part of the merchants OF obligation
70 their customers that should not
exist It Ia the recognition of this
false theory Of obligation that Is re-
sponsible for the lax and utterly un-
buuin ess-like system of credits that
has been built up and which Is such
q burden upon merchants. and more
part1culariy upon retail merchants.
There 10 no excuse for the extern
n1on Of credit on the part of a retail
merchant except that of convenience,
~ previously stated. merchandising
consists In exchanging the necessities
Of life tor money. and II the receipt
Of the money by the merchant is TO be
deferred to d dnte subsequent to the
delivery Of the goods the merchant
should have every reasonable assur-
ax,c0 that ho will be al sure to get his
money q the customer was to receive
the merchandise. In order TO have
this assurance the merchant must rely
upon ut least two distinct qualities in
the customer-ability to pay and IN
clination to pay. These two qualities
prssupposs the having of capital and
character. Capacity also Is an Inn
portant factor In the granting OF
credit. but for the purpose of retail
much importance AZ tho first two quail
tt1es.
Losses From Credit Must BE Paid
III q merchant in extending credit
does 30 without proper regard for
these fundamental principles, the In
ovitable result will be an extra bur-
den laid upon his business by losses
on accounts which loss must be borne
~ soma one--either he must operate
without proper compensation for him.
DoH OF he must charge the customers
who pay an extra margin Of profit
Du10clont to cover such losses. or he
must ultimately fail In business and
On3oAA the loss on his creditors. All
1one Of thess results are unjust and
- A4xer two fall on innocent shout
AnR The 1rst would not be so bad
9 0ondned there's 1t Is a natural
1nW that one must suffer for his sins
TT the system that makes the inno-
0o0t suffer for the sins of others Is all
wong. Unfortunately. all three of
1870 results go hand in hand.
The annual waste IN bad debt loss
- appalling amount for the year
31ne 30. 1914. to June so. 1915. that
WuD cleared through the bankrupt
eoarts OF the United States being re-
yorted at s245. 900, on which
Gg0ditors received net about $4,000
-, leaving net loss of s225.000.00,
- while It may not be diplomatic to
- 70 in this article. yet feeling 1t to