Decorah public opinion. (Decorah, Winneshiek County [Iowa]) 1895-1928, 1921-10-05
SMALLER TOWNS
DISCARD CREDIT
Merchants In Several Villages Try
ing Out Cash Payment System
And Trying To Make il Go.
OTHER MERCHANTS SAY
PLAN WILL NOT WORK
Cite Several Reasons Why Friend
Bill Can Not Refuse Credit To
Friend Jim Without Loss of
Trade and Good Will.

Union, Iowa-In several of the
small towns of central Iowa an at
tempt is being made by merchants
and other business men, to operate
on strictly cash basis. At Colo in
Story county several business CON
Germs put the plan into effect about
three months ago. New Providence
and Lawn Hill in Hardin county,
Sheffield in Franklin and Albion in
Marshall have also decided to try out
the pay-as-you-go plan. 1t is said
that in Sheffield the penalty of
breaking the rule Of requiring spot
cash is a fine of $500.
A local business man can see moth
ing but serious loss of business for
the small town dealer who attempts
to enforce strictly cash rule, and
he gave a few instances of the way
the plan works. In one town a mer-
chant has married brother living
on farm. One day the wife of the
latter sent one of the children to the
store for some small article and
failed to send along the money to
pay for it. That incident resulted in
the loss of one good customer for
that store.
Another man has position with
"Uncle Sam and receives his pay
twice month. When his merchant
went to a cash basis he asked if he
might not continue to settle every
two weeks, and meeting with neg
alive reply paid the "a cents he al
ready owed and walked out, saying
that he would not return. There was
mail order catalog in his house and
much larger town only few miles
away.
A coal dealer in a certain town
sells fuel to asmerchant. Coal deal
er's wife and children do most of the
buying. At monthly intervals the
coal man brings in his bill and the
merchant settles and the bills are
receipted. The merchant doesn't care
to disturb the arrangement, which is
satisfactory. A farmer working in
| his field nearing the road sees a
neighbor passing in his car his
way to town, and needing some
thing from the store where he trades
asks the neighbor to stop at Jim's"
and get it for him, adding that he
will "be in tomorrow and pay for
it." Too good customer to refuse.
NO" concluded the local business
man, | don't believe the average
merchant in the small town, where
he and his customers call each by
their first names can afford to go
to real cash business basis. Much
better for all concerned would be
thirty day plan, for with that no
reasonable customer can find any
fault. The merchants has unans-
werable argument for a monthly
settlement and tactful one can en-
force the method without injuring
the would-be-cuStomer's feelings, but
with modern facilities for trading in
large towns and by mail the small
town merchant to hold his trade
must make everything as convenient
as possible to that trade. This
doesn't mean, of course, that he
should attempt to carry every town
customer till work opens up in the
spring" nor the farmer "till the next
crop is sold" At least not without
a good interest bearing note which
can be cashed at the bank enabling
Mr. Merchant to meet a few of his
cwn bills that some customers APP
pear never to take into considera-
ton.