BAD DEBTS.

Auckland Star, Volume XXX, Issue 78, 4 April 1899, Page 2

BAD DEBTS.

(to the Editor.)

gjr,—Very few retailers find they e_i do a sufficient trade on a cash basis' te make a payable business, and conse, quently are forced into the credit system. They then become acquainted with the greatest curse to business in New Zealand viz., the 'bad debt account,' which combined • with long standing accounts that are considered good, but are the means of lockipg up a tradesman's capital, is oftentimes the cause of sending; many a good and upright man to thf bankruptcy court. Now, Sir, an associa* tion is proposed to cope with the vampirfc and like all good causes it is at once cried down, harmful effects are credited to it that cannot exist, and ugly riameS thrown at it. All business people must acknowledge that gambling at race nieetin?s on the part of their customers is often the cause of many small (o.t.n large) accounts being transferred to fi.D. account. Then why should it not be right to combine and like many wholesale houses consult each other regarding the condition of certain risky customers' accounts.. J.M. has proposed a plan lit the 'Star'; let it be carried out, ftni like J.M. let us take little notice of remarks such as Mr Albert Perm's. If a meeting is called at a suitable time we feel convinced that the retailers of Auckland will respond in large numbers; and find that a few shillings spent in this way will save pounds. It is dene even now in a small way, for we have been consulted by tradespeople as to whether certai-. people were good marks or not, so Jerit be done in a larger way, and the spendthrifts, gamblers, and rogues Will soon find they have only their own rao'aey t t_ make away with, and cannot live on the retail trades like many of them do at the present time, going from one shop to ''_j_. dther and dealing (they call it, thieving i_ nearer the mark) from each until thfelr credit is stopped. Trusting you will give this cause a good Chance in your valuable columns.—l am, etc.,

A RETAIL FIRM..;

'■'■■- * ito the Editor.) ' '; '■ Sir,-I have read with Jntert'st the eorre_ponddnce relating to the 'above'/. I think the writers are not attacking the matter at the right end. Mow, Mr Edi-: tor, who is to blame for these bad debts? Simply the grocers, bakers, and tradespeople. I have been in business for a great number of years and lost hundreds; of pounds in bad debts. It seems to me in New Zealand, that from the gentleman down to the. lowest class, they would.rather buy .on credit, even if they have the money, to pay for tho articles they want. It is the. system that is to blame. Let tradespeople band theia» selves together and burn their bpojcs and sell for cash only, or if they trust a few shillings to a person hard up.let it be for One' week, and treat it as an affair Of honour. Let our. prohibition friends, Christian Endeavourers, and all social movers add another clause to their pledge, 'I will endeavour to pay cash for' all I buy and discountenance among all _ persons the buying of goods on credit.*' By such an effort on the part of each individual will the future well being of: the colony depend. Many tradesmen friends of mine -have been driven to drink by their inability to get the money due them for necessaries supplied, and being dunned by the flour merchant and Wholesale dealer. -If the Premier of New Zealand will abolish the 'recovery of debts,' which Is a sad misnomer, which the_e th.it have tried it In the Magistrate's Court have found out, for all necessaries supplied, he Will earn the undying gratitude of thousands of tradespeople who like myself only are waiting to get some valid reason for denying credit to applicants without offending them by saying or hinting that they might not pity for them. Besides, there Js a great many tradespeople who keep giving, credit with the idea that they can- force payment in the courts, and find out too late that it is impos*. slble to. do so in seventy five per cent of the cases, and while they are literally giving away the roerchaiit's good., it is no use their next door neighbour trying to sell for cash, no matter how cheap he sells at

This credit system causes more lying and dishonest practices than anything;', else that I know of. Do our mrat-tersof religion do anything to improv|e thls state of aftairs? The Wesieyans, I notice by the papers, have passed a.ban , against all thoso that traffic or infiultfm* the use of alcoholic liquors. . Thft ' Pi«ibytte__-i_i-t alSo preach ah annual sermon against the use Of intoxicant-. and the other religious bodies are end*P*T°Wlnf to stem the tide.of ipferapsranc?. But »re they doing anyv-thig' to Inculcate the principle of 'Pay wfiftt thou owest,' and 'Owe no man anythlngf' If they do, I em unaware of it,and I have for years attended various <jhlhshes *?<* h^ard .eloquent sermons on variou* . topics, but not, once have I heard the preacher: speak abpuf the evil pf incur-' ring'debt and making no attempt to pay, it off. And here may I mention a not*' able exception, a sermon by the Rev. Father Haekett, fully reported in vouf valuable paper some years back, in which he pointed out th» great evil ok getting goods and I not paying for then*, and said that his Church was very clear on this matter, and that no member of their Chiircb who incurred debt and made ho attempt to liquidate it, would be forgiven, o_ -nch similar expression. If all the leaders of Social questions Would take tftlS matter up, I think it would caus^lß revulsion, against this canker which # growing worse day by day, and is at t~e bdttom Of nearly all our bankruptcies* suicides, etc., etc. I hope now that this matter has been broached, that something will be done to place the tradesman on a satisfactory footing.—l a"*' etc., '.;•■ y-z tR NEW -SBSALANDBR.