LOOSE CREDIT.

Waikato Times, Volume X, Issue 740, 15 March 1877, Page 2

LOOSE CREDIT.

Poverty Bay, like other districts in New Zealand, appears not to be exempt from the evils, social and commercial, attending the system of loose and indiscriminate credit given by its traders. During the months of January and February of the present year, we learn from the ‘ Standard,’ there were no fewer than ninety-one summonses issued from the Resident Magistrate's Court at Gisborne for the recovery of unsatisfied claims. This is, certainly, a lively state of things for a small trading community, in which, as our contemporary say, “ trade operations are well defined, and where there is little or no field for speculation.” The injustice of the system to those who do pay, and its demoralising effect on those who do not, are both ably dealt with by our contemporary. The latter are tempted to become extravagant beyond their means, the former are made to pay for the extravagances of the latter. “ The giving of indiscriminate, or, a long extended credit, says the ‘Standard,’ causes an injustice to ramify through all graces of the community. The tradesman, in order to cover losses incurred by those who do not pay him, charge them to the account of those who do. The cash purchaser, or he who pays his accounts punctually is held practically responsible for the “ bad marks.” “ I loose twenty-five per cent, by defaulting debtors,” says a tradesman. “ I cannot afford to do this. Some one must make good my losses. Those who can pay must answer in increased charges for those who cannot or will not. Our traders scarcely affect to conceal this. We have in more than one instance heard it openly admitted. The rule is a bad one. It is not right, nor is it honest.” He then proceeds to point out the remedy, at least so far as affects the interst of the solvent portion of the community What we demand on behalf of those who desire to ‘ pay as they go ’ is that there shall be a marked distinction made in their favour, as against those who take long credit, or do not pay at all. Let those who have heretofore done what is known as a ‘ booking business ’ make it clearly and emphatically understood that the cash price for goods is so much and credit price so much more. Traders will very soon learn how much the principle will be appreciated, and how many will only be too ready to ava:l themselves of such an arrangement. There should be no evasions on the part of those who sell and no excuses for departure from the rules laid down to those who buy. ‘So much for cash payment ; so much for credit.’ ” The article, which extends to some length, winds up with the following shot:— “ A feeling has of late been growing up among those who are able and willing to pay their way that they will no longer allow themselves to be the victims of those of the oppo Site classes. Unless tradesmen draw a line, and a very well defined one, it is quite probable; that in a short time they will find the ready money paying portion of the community adopting among themselves the co-operative principle, leaving the tradesman with a list of bad customers only on his hands.” This has apparently not been fired without in effect, for in a subsequent issue of the same journal, just received, we find the editor congratulating his readers on the fact, that a change was to be at once adopted, by which “ cash or short credit buyers were to be placed on one footing, while those who continued to avail themselves of almost unlimited credit were to be placed on another.