Jasper County Democrat, Volume 17, Number 86, Rensselaer, Jasper County, 3 February 1915 — LIVING ON OTHER PEOPLE’S MONEY. [ARTICLE]

LIVING ON OTHER PEOPLE’S MONEY.

How many people of this community are riving- on their own money? If the question was put; to each person individually he unquestionably would answer that he is living on his own funds. And he doubtless would be entirely sincere in his statement. "* But ar e we really living on our own money? Let’s dig down under the surface and see What-wo find. For the sake of argument we will assume that you are running an account with the grocer, and the butcher, and possibly other merchants. You pay, of course, but perhaps you make settlement only every sixty or ninety days. Some even pay their bills only twice a year. Now was it your money that paid the wholesaler for the goods you are using and for which you have not paid, or was it the merchant’s? ' And if it was the merchant’s, and you have not paid him, is it your money you are living on- until Settlement day, or is it his? Perhaps fully one-half the people are living from day to day on other people’s money, and by doing so they are themselves directly contributing to the present High cost of living. Now control your rising anger for a moment, and we will humbly endeavor to show you why you are keeping prices up., The average mercantile stock costs several thousands of dollars, and it must He paid for in cash or the merchant must obtain a line of credit from the wholesaler. And when he buys his goods on credit he pays a higher price for them. In turn you buy your goods from the merchant on credit, and he in self defense must add an additional “Safety” profit. In other words, he must charge more than a cash price in order to protect himself from the certainty of ’oss consequent upon slow collections, bad debts and other annoyanges. Thus two “safety” profits are added to the original selling prices of the article. Do you see how it works—how the price is boosted? If every customer paid spot cash for his goods the merchant in turn could do the same thing with the wholesaler, thereby securing from the latter a discount for cash of possibly li/ 2 to 10 per cent. And then the merchant > himself would not be required to add the “safety profit” to his goods, which would mean another substantial reduction in the price of th§ article, and all because of the simple expediency of handing the cash over the counter. Now doesn’t it look as though this practice of living on other people’s money is costing us considerably more than we are justified in paying for such a doubtful privilege? It might require some slight inconvenience and a little temporary retrenchment in order to change over to a cash system, but if a merchant made you a flat offer of a fifteen or twenty per cent discount for cash you would jump at the opportunity. Doesn’t it appear to be to the advantage of everybody to wipe out the baneful credit system and buy and sell for cash? It certainly looks that way to us. How does it appear to you?