The Dawson news. (Dawson, Ga.) 1889-current, 1925-07-14
The Value of Credit.
From the Macon News.

We seldom pause to realize how much the
worlds business depends upon confidence and
good faith Every time man accepts dol
lar bill in return for his labor or his goods
he shows his faith that the government or
the bank of issue will redeem that bill IN
coin on demand. On the other hand the buy
er makes his purchase on the strength OF his
faith that the goods are what they are rep
resented to be.
If we had to verify the facts every time
we made a transaction we would come close
TO starving to death. Nobody would accept
bank note until he had carried it to the
hank OF issue and satisfied himself that 1t
was good. and yet the bank might be on the
other side of the continent Nobody would
accept a piece Of goods until he had subject
ed it to whatever test might be necessary TO
prove it was what it was supposed to be- and
in many cases that would be a tedious and
expensive process
In view of these facts we see that breach
Of confidence is indeed a serious ottense
against society Thoughts such as these have
been suggested in many quarters by the re-
cent convention in Washington OF the Nation
al Credit Mems Association. The Washington
Star says:
THE members OF this association are
the executives of large industries and
commercial establishments who are IN
charge of the suspended payments OF
customers. They are in effect the custo-
dams of the good faith of the buying
public. Upon their judgment depends IN
great measure the prosperity, even the
solvency of corporations.
I'm an address to the association yes
terday Secretary Hoover praised the
credit men for their campaign against
fraudulent business practices, saying,
don't know of any worse waste than that
which comes from commercial CRIME.
The three principal methods OF lmprov-
ing the credit procedure OF the country,
he said, are the extension OF credit to
good people, the refusal of credit to I'M
reliable and incompetent people and jail
for the bad
4 osses from bad credits are remark
ably small in proportion to the entire vol
ume OF business which is done upon the
deferred payment system, not the install
ment plan, but that Of payments within
a certain period. Misfortune, OF course,
overtakes customers. Merchants who buy
their stocks on credit and who sell large
~ on credit are sometimes themselves
victims OF losses or unduly delayed pay
ments by retail purchasers.
This association now in session here
has for its purpose the strengthening OF
the credit system, which means the de-
velopment of business. Perfection OF
methods for checking up the buyers OF
goods LOT WIOltSdlG anu lCldll - OliS VI
the practical objects Exchange OF lntor-
nation is effected by cooperative organ
ization. Business ratings are utilized.
Banks are consulted. Losses are made
known privately for mutual information
AN individual or firm a corpora
ton with good credit possesses an asset
OF great value A faithful discharge of
obligations, a scrupulous regard for
promises constitute veritable capital in
business. Impairment of credit is heav-
Ter loss than the amount directly in
volved.
"Those who betray condolences are not
guilty of waste, they are enemies OF bus
mess prosperity. 1t is the job of the cred
it men now meeting here to purge So
ciety of these people, for whom there is
no place in the modern economy of
trade"
Now and then man finds himself really
unable to pay owing to circumstances over
which he has no control, but it would be a
better world if every man lived up to his
obligation to the best of his ability.