The Lakeland evening telegram. (Lakeland, Fla.) 1911-1922, 1919-04-07
MAKING ENDS MEET
lBY BiddY RYe.l

ment took up the discussion or ar
guments for and against the credit
system in the purchase and payment
for goods used by the family This
article will discuss the advantages
ard disadvantages of purchase and
payment on the so-called "instalment
plan"
There is a fundamental difference
in the credit system and the install
ment plan which is not always under
stood. Credit is extended to a firm
or individual because he already pos
sesses property, bank account, or
character and earning ability which
are absolutely security for the pay
mcnt Of debts. The credit extended
is secured by some possession Of the
purchaser.
Purchase and payment on the In
stalment plan, Is, in effect. a mort.
gage upon the future both for the
creditor and the purchaser. The buy
er counts upon his prospective ability
to pay-and the merchant trusts that
ability and risks the uncertainties
which may render his customers un-
able to pay.
But instalment buying is not the
undesirable and shiftless system
many persons think 1t. The system
itself is good, and the abuse OF the
system-like the abuse of credit
should not be allowed to discredit the
system itself. Here follow in outline
the chief advantages and disadvant-
ages of the instalment system-disad-
vantages first.
The general use of the instalment
system springs from the inability of
families In moderate circumstances
tc pay for certain expensive Recessi-
ties--such as the furnishings for a
house-in a lump sum. Instalment
payments permit the purchase and
delivery of all goods at one time
with payments spread over long
period. Inscriptions merchants
took advantage of the needs Of such
instalment customers to palm off on
them goods of inferior quality at ex-
cessive prices. That custom led the
instalment system in disrepute Al
so, the system is somewhat liable to
tempt the inexperienced and hasty
buyer into making purchases too
costly, or unnecessary to family well
fare because deferred payments are
permitted. Many times families in
dulge in i'll considered Injuries such
as pianos, automobiles, etc., paid for
In instalments which demand that
some real necessity Of food, clothing
or education be sacrificed. The dan
gers Of the instalment system exist
only for those persons or families
who use poor Judgment in the ex-
penditure Of their earnings and who
cannot discriminate well between
Injuries and necessities.
For the thoughtful and thrifty fam
lily or person who is hampered only
by temporary lack Of ready cash
the instalment plan has distinct adj
vantages. When used in moderation
the instalment plan is a legitimate
method Of family finance and may ac-
tually be made the basis Of economy
instead of extravaganza. It enables
many families to realize their ambi-
tons for comfortable furnished
home or for plano much sooner
than they might II they waited to
save the full cost price OF the pur-
chase, ana the necessity for meeting
the regular payments is a training in
saving and planning ahead which en-
courages thrift. Often when goods
bought on instalment are paid Cor the
saving habit is so firmly flxed that
the sum formerly paid for goods goes
to start a bank account and the foun-
daions for prosperity are thus laid
The purchase and proper furnishing
Of a family home are laudabIe and
natural ambitions and IL they cannot
be gratined because Of lack Of ready
cash they may well be attained BY a
wise use Of the instalment system
and no hesitation or false pride
should prevent its use.