The Lehi sun. [volume] (Lehi, Utah) 1913-1949, 1922-01-26

action implies and how Il Affects the
welfare OF the buyer and seller are
seldom considered Along big lines,
the business of the Nation has suffer.
ed a number OF relapses and merely
because credit was not properly used
The interests OF men became very
tense in some kinds OF commodities
IN real estate perhaps, or in securities.
Believing that chances favor making
good profits, they would buy largely on
credit and either thru rapid shrinkage
In value or from other causes, finding
themselves unable to redeem the
promise OF payment, they would
default on the obligation and when
this occurrence is duplicated many
times disturbances or panlcs occur.
No one should ever ask or be given
credit who does not know what II is
and how the confidence implied in the
credit extended should be protected.
Buying on mere chance with the hope
that something may arise to help the
buyer meet the obligation is a very
poor way OF handling credit and fire.
quently leads to default and failure.
Credit and Value lnseparable.
Credit isn't something that can be
manufactured. Every commodity pos
sesses inherently the power of Great
ing credit. The pair OF shoes bought
by an individual, or a large line OF
goods bought by q merchant, possess
In themselves the inherent ability Of
creating credit transaction. The
credit thus created is not itself a value,
yet II reflects the value of the pair
OF shoes or the commodities bought
Credit, therefore, can never be sep
arated from value. IL must have an
underlying value TO be a real credit.
When the. commodity which created
the credit Is consumed, the credit
should be extInguished. To have The
credit live longer than the life OF the
commodity. creates a situation which
makes the position OF the credit ex-
tremely dangerous, and this is what
we technically call a credit imitation
Il seems so perfectly simple for people
to buy anything they want either for
personal or home consumption or for
their business. upon merely saying. 81
will pay you at such and such time"
Should the commodities bought be
transferred to the buyer on this simple
promise of payment. just moments
reflection will show what a delicate
operation II is. and how much conild
ence has been expressed by the seller
Because OF our Ignorance, credit has
been roundly abused The individual
has bought without considering the
payment. The merchant has bought
without reckoning OF the conting-
oncies that might arise in the hand
ling OF the goods bought and because
OF this condition, and as we have not
thot enough on the subject, the de-
faults and failures make an aggregate
each year OF many millions OF dollars.
Certain Kinds Of Credit Unsafe.
The principles OF credit, its proper
uses and the ease with which II may
be abused. lead us to believe that
credit should neither be asked nor
given for articles which win immedi-
ately be consumed. The pass book
for the corner grocery, the freedom
with which credit is granted for home
supplies OF all kinds. represents a type
OF credit which Ia not at all safe and
which ought to be curtailed.
Bear in mind that credit touches the
life OF every man and woman in the
nation. The fluency OF credit has more
to do with the prosperity OF business
and consequently with the prosperity
Of the people than any other feature,
not excepting money. Clogging credit
channels leads to business depression;
keeping credit channels free acceler-
ates business. What we have passed