Evening Republican, Volume 59, Number 75, Rensselaer, Jasper County, 30 March 1917 — In the Matter of Extending Credit. [ARTICLE]

In the Matter of Extending Credit.

In all business not done on a strict ly aash basis the matter of credit is a very important one. Much of the business of the country is done on a credit basis. In all large businesses that matter is handled in a systematic way and careful ratings furnished by competent sources are required. Evety business man must furnish a full statement of hie financial condition if he desires to buy goods on credit. This statement is then very carefully gone over and experts in this line make a rating that is dependable. I If anything unfavorable happens to a business man, such as a fire or loss of any kind, or if be mortgages his porperty and in any way makes a move which seems to be detrimental to his credit a pink slip is instantly sent by the retting company jtd all creditors.' . j The very first essential to obtain ‘ credit is the possession of property.. Other points considered are the kind of business entered or engagetL lbi and no small item is that of the reputation for paying debts.

Local retail merchants do not have th i s protect ion and consequent! y there are many losses in their business. An examination of the ledgers of the firms doing a retail business and extending credit would reveal the fact that there are a- considerable nurhber of people who receive credit but wno do not deserve it. There are a very large number of people in this and every other locality who are thoroughly honest and who pay their obligations promptly. Bpt there are entirely too many people in this and possiblv in many other localities who make it a practice to obtain credit and when payment is demanded to become offended and trade with another merchant. When they have gone the entire round they either move or must pay cash. Go to any merchant in the city of Rensselaer and ask him for a list of the people who owe him old bills long past due and which he

has discontinued attempting to collect. If this is a grocer take his list to the dry goods merchant and he has the same list of names. Take the same list to the butcher and but few names will be added and none subtracted. Take it to the coal man and you will find that he has the same list. The newspaper man has the same list. Every business which extends credit has the same list. What does this mean? It simply means that a number of people have simply beat the merchants out of a very considerable amount of money. In some cases the amount is so large that it . has ruined the merchant. In other cases the merchants have reported the parties to their fellow merchants and the party instead of beating every merchant in town has l>een stopped at the second attempt. Merchants have what they call “Dead Beat List.” This means that persons on thsi list cannot be extended credit. '

A very careful study of the “Dead Beat iList” reveals some peculiar conditions. One man will be working for a wage. He will have an average size family. He will feed and clothe himself and family, at least comfortably, and will save a little money. He will possibly buy a home on installments. He meets his obligations promptly and every businessman in the city is anxious to have hds trade. By the side of this man may be another with the same size family* led and clothed about the same, no better anyway. He rents property and moves uite often with some rent unpaid. He owes most if not all the businessmen of the city. He must pay cash because he is on the dead beat list. He does not save a cent. What becomes of his money ? No matter how hard he works, and many of them are excellent workers, he is always broke. —In-other words, his skill—in evading his honest debts does not add to his fortune, his happiness or his reputation. He does not lighten his own but he makes every other person’s.burden heavier., He teaches_ and practices dishonesty and brings dishonor upon himself and ruin upon his fellow man. Better than property is a reputation for honesty. Without the assistance of his fellowman no one has ever made a success in life. The energetic, honest young man has before him the open door of oppdrtunity. He will succeed, for everyone is his booster. The man who does not meet his obligations is doomed to be a miserable failure. He is despised and everyone is his knocker.