THE CREDIT SYSTEM.

Tuapeka Times, Volume VI, Issue 328, 7 February 1874, Page 3

THE CREDIT SYSTEM.

( To the Editor. )

Sib, — In your issue of the 28th inst. is a letter signed '• Limited Liability " anent the credit Bystom, also an article on the same subject by -yourself. I would like to devote several columns to this subject, but your hint to correspondent* forbids. There is no doubt the system is bad, but how to remedy it- is another question. It would appear from " Limited Liability's" letter that the worst feature of the question at Lawrence is having to dun people for payment, but in the long run payment is made. With us the business men are not so fortunate. They have all the annoyance of the dunning, and in a number of cases get no cash ; and should you threaten to take proceedings "to recover, you are politely told " Oh, I shall take the benefit of the Act." There are parties who have been living here (so report says) 13 years, and have actually taken the benefit of tho Act twice within that time, and not paid as much as a farthing in the pound on .either occasion. The worst feature of it is they make a boast of the same, and advise their friends to follow suit. That is the way to make business men afraid to take proceedings against you. No doubt I will be met with " Oh, it's the business men's own fault to allow such parties to get on their books a second time." The fact of the matter is that you often see sqch men with extra good wires, who go out to nurse and take in washing, and so keep the pot boiling until they gradually get on the business men's books again, and having once got there it is all right. As a rule, yon see such parties dressed in the top of fashion, swelling about on horseback and in buggies. They can be found principally at public house bars, and appear to enjoy tho respect and confidence of the loafing iraternity. This no doubt is a rotton state of things, and in my opinion the only place to look for a remedy is in the bankruptcy law. It is a well-known fact that to oppose anyone who takes the benefit of the Act is very expensive, and parties do not like throwing good money after bad for the mere sake of placing an individual in jeopardy of his liberty. It is also known that business men in general look to the matter thus as regards giving people credit a seconds or third time ; they can't possibly be in debt just at present, consequently there is some show of getting paid ; but the time comes round when they have to grin and bear it. I would suggest to our law-makers that they should so alter the bankruptcy law that no one person shall be allowed to take the benefit of it more than once in 21 years, or in the event of anyone doing so and not paying a substantial dividend, that he should be struck off the roll of voters not only for Superintendent, M.P.C., and M.H.R., but also the municipal roll; neither would I allow any such parties to be the holders of any license of any kind — no not even an auctioneer's license. If such a law were in" force, I am of opinion^ there would be fewer insolvencies — more particularly those pettifogging ones. lam further .of opinion there would be less " Yankee grab," cards, and dice played than at present. I will now leave this subject to an abler pen, trusting it will not be allowed to drop until something tangible is done to alter the present state of things. I am one of those that do not consider competition legitimate when the competitor does not pay twenty shillings in the pound. — I am, &c., ' A Sufferer. Alexandra, 31st January.