The Temuka Leader TUESDAY, MARCH 22, 1887. THE CREDIT SYSTEM.

Temuka Leader, Issue 1568, 22 March 1887, Page 2

The Temuka Leader TUESDAY, MARCH 22, 1887. THE CREDIT SYSTEM.

The following Wellington telegram .appeared in last Saturday morning's papers : The Colonial Secretary intends to introduce into the Legislative Council eaily in the coming session a Bill providing that tradesmen's accounts under £2O for goods sold and delivered cannot be recovered in a l.esident Magistrate's Court. This step is to bo taken, because the Government consider that the Magistrates' Courts throughout the colony are being used simply as machinery for collecting debts. From a return whioh they have prepared, it appears that the number of summonses issued last year in the colony by Magistrates' Courts for sums under £2O was 20,380; for suras ranging from £2O to £SO the number was 2325 ; and from £SO upwards, 674. Should the Bill become law, it is expected that a great saving will be made in working the Courts. The first conclusion we came to on reading this was that itwasallahoax,but we find that the Wellington correspondent of the Lyttelton Times refers again to it in yesterday mornißg's paper. He says that the idea was suggested by a contributor to the Evening Post, who condemned the credit system, and urged upon the Government to introduce a bill making trademen'a accounts up to £2u irrecoverable by law. The Government have taken the hint, and will introduce the measure with the view : j first, of lessening the costH of maintaining Resident Magistrate's Courts ; and second, of striking a blow at the present credit system. It is difficult to treat i this matter in serious, sober language jj

it is the vory acme of absurdity, and would result in the ruin of many. It would, moreover, strike a blow at the poor ; no one would gi7e them credit if this became law, and the result would be that a great hardship would be inflicted. But if debts under £2O are to be regarded as debts of honor, why should not debts over that amount be similarly treated? Why should the blow be struck at the poor trader and the poor creditor, while the rich can carry on business as formerly? The answer is simple: The poor have no influence ; they can be treated with irapunity in whatever way public men like, but the rich will stand no curtailment of their liberties. The proposal to render small debts irrecoverable by law is an unwarrantable interference with trade, but as the country will never sanction such a proposal it is not necessary to pursue the subject further. But there is a lesson to be gained from this that people would do well to. sturly. When the proposal to establish a National Bank was at first submitted, public men at ouce jumped to the conclusion that it would interfere with private enterprise, and that to do so was not within the functions of Government. The moment soma stupid " fadist" who thinks the credit system the curse of the "country, puts forth his Senseless idea of rendering small accounts irrecoverable by law, oar wise statesmen jump to the conclusion that it would be a very good thing »nd they determine upon giving legal effect to i'. The National Bank proposal was directed against monopoly, and it would not be wise to touch that; the proposal re small debts aimed at small storekeepers and the poor, and there was nothing to be feared from their opposition. It is most extraordinary that for the Government to become its own banker is an interference with private enterprise, while to regulato by law the amount a tradesman shall give on credit to a customer is not. We hope the Colonial Secretary will see through his fr Hy ; and go no further with this matter, el*e he will bring upon himself the ridicule of the colony.