THE CREDIT SYSTEM.

Wairarapa Age, Volume XXX, Issue 8496, 27 July 1907, Page 5

THE CREDIT SYSTEM.

(To the Editor). Sir,—My attention has been drawti to a remark made by the Official Assignee in a recent bankruptcy case in Wellington, pointing out how easy it is for people starting business to incur debts without practically having any capital to start on. It is my opinion (hat if all the large warehouses doing business with small ones were not too eager after business they would insist on their travellers or the head of the firm enquiring as to the small man's financial position, before lettirg him get "too deep in the mire," as the saying is. It would be better for the man in small business generally, and the firms themselves. It only means that as business is conducted at present that the unfortunate man who gets wholesale credit from many of the firms is often only struggling, and is continuously worrying, and goes on until he has to seek the only way left jfor him, and that is to file his schedule in ths Bankruptcy Court. Then the heads of firms attend and ask the bankrupt all sorts of questions, which you will admit are not too they become published. Now, Sir, my contention is that if the merchants sell goods to a'man just starting in business without enquiring into his position they deserve to lose their money. But what is the use of complaining when the man has gone through the Court? In conclusion, I think the credit system is carried on to a much greater extent than is desirable amongst the shopkeepers in the smaller towns, who should combine upon business lines to prevent unscrupulous people from "running up bills all over the place"—bills which they have no intention of paving. This could ba done by any shopkeeper informing others in business when one of his customers has ceased to deal with him, and has failed to pay his account. Some system such as I propose would largely curtail the wholesale credit system at present ri vogue, and would, possibly, lead to honest people] obtaining their goods at cheaper prices ;? than they do at present, while retailers' profits would be in no way diminished, if not enlarged.—l am, etc., BUSINESS.