The Feilding Star. THURSDAY, FEBRUARY 4, 1886. A Creditors Association

Feilding Star, Volume VII, Issue 101, 4 February 1886, Page 2

The Feilding Star. THURSDAY, FEBRUARY 4, 1886. A Creditors Association

In Auckland a society has been formed called The New Zealand Mutual Creditors Association for the purpose of protecting all mercantile and trading insterests against fraud and dishonesty, and to afford to subscribers the advantage of selling goods at cheap rates — being relieved from the necessity of reserving a margin of profit to cover bad debts ; and, as the credit system, unfortunately now in the colony, has caused the downfall or retirement of many an excellent business man, it is hoped that the society will receive the support and co-opera-tion of all business classes to reduce the possibility of dishonest and fraudulent persons obtaining credit. The necessity for such an organisation has been apparent for some time, owing to the facilities afforded by the Bankruptcy Court for laborers and persons in the receipt of limited salaries, to wipe off their liabilities at a comparatively small expense. The honest debtor who pays his way and lives within the limits of his income has to bear his share of the extravagance of those persons who indulge in luxuries to which they have no right, as well as the storekeeper who has to wipe off at the end of the year, a large percentage of his profits to cover bad debts. A tradesman who makes no bad debts can afford to sell cheaper to his customers than one who has to make provision for such "neer-do-weels" as prefer gratifying their selfish appetites to paying the butcher, baker, tailor, shoemaker, storekeeper, and other tradesmen The practical working of this association is thus exemplified by the Napier Telegraph : • — "A man of respectable appearance enters a store and asks for credit ; the storekeeper makes |a few enquiries, and grants his request. Presently the account runs up to an amount the storekeeper does not like, and immediately the man seeks a fresh victim , and obtains further credit from some one who is altogether ignorant of the first debt. This process is repeated until the various creditors begin to press and one of them appeals to the R.M. Court. Then comes the inevitable bankruptcy, liabilities so much, assets nil. Now, had the storekeepers belonged to a mutually protective association the second man who was applied to for credit could easily have obtained information of the non-pay-ment and stoppage of the first debt, and the little swindle would have been nipped injthe bud withjadvantage to all concerned." How often this practice has obtained on this coast need not be quoted by us, but every business man here .has had bitter practical experience of the wholesale robbery inflicted by unscrupulous persons who appear to accept the Bankruptcy Court as an excuse for dishonesty. We hope Feilding and Palmerston will join in establishing a branch of this association.