The Press. WEDNESDAY. JULY 17, 1895. THE CREDIT SYSTEM.

Press, Volume LII, Issue 9159, 17 July 1895, Page 4

The Press. WEDNESDAY. JULY 17, 1895. THE CREDIT SYSTEM.

There are several Bills before Parliament just now, the effect, if not the intention, of which is greatly to limit the credit given to working men. No one wiil deny that the more the working classes, or indeed any other classes, can he induced to deal for cash the better for them. There is nothing like a cash system for ensuring economy and promoting mental peace and material prosperity. But of course unless people are to starve they must sometimes deal on credit unless they can at all times be guaranteed the possession of an adequate supply of cash. The workman who is so fortunate as to be always employed, and who is prudent and economical, can of course always deal for cash, and profit by it. Having the money he can make use of it advantageously, being another example of the truth of the statement that to him that hath shall be given. But then unhappily all workmen are not so favoured. To begin with they are not all able at all times to command employment, as we know only too well at present. Bad times are responsible for depriving many decent men of cash. Illness either of themselves or in their family may absorb cash and so may other causes for which the workman is not responsible. It is then that his capacity to obtain credit stands him in good stead. The small tradesman is then his best friend. small tradesman naturally makes many bad debts amongst the working classes but not more in pro-

portion than are made amongst other classes. Now if tho credit system is abolished and the tradesi man's debts are made debts of honour only it must follow that the tradesman will have to diminish very much the numbers of those to whom he gives credit. He will then only trust the most honourable of his customers. There are many whom he cau rely upon to pay him, but only because they know that he can enforce payment by law. They may be decent enough people in many ways, but if they kaow payment is only optional on their part they will either not pay at all or they will take a very long time to pay. When such men feel the pinch of hard times they will regret the loss of the power to buy on credit for present necessities. This question is entirely one for workmen and small tradespeople. If they wish the abolition of the credit system by all means let it be abolished ; but let us be sure that they do want it. The Wages Attachment Abolition Act pro vide 3 that no order can be made by any Court attaching wages. We admit all that can be said in favour of this Bill. But let it be clearly understood that this will mean a considerable limitation of the credit given to workmen, for it will mean that, no matter how high the wages a man may be earning, there will be no means of ensuring that his creditors shall get any hold over any portion of them. Then, there is the proposal to abolish imprisonment for debt. Here, again, the effect of the passing of the Bill would be to curtail very much the credit given to workmen. The law at present says that ni one shall be imprisoned unless it > '■ shown that he could pay the debt and did not do so. If the power to compel people to pay when they are able to pay is taken away, it is evident that tradespeople will be far more careful than heretofore how they give credit. It is no exaggeration to say that a large number of the debts due to tradespeople now would not be recovered if it were not that the debtors know they may be compelled to pay under pain of imprisonment. Let those, therefore, who desire the passing of this Bill realise its effect.

Then there is the Debts Recovery Limitation Bill. It deprives tradespeople of the right to recover for goods sold and delivered unless the price of the goods exceeds J. 20. In other words, the small man who makes small purchases is deprived of the right of buying on credit unless his tradesman is prepared to trust his honour, while the man who makes big purchases is under no such disability. The rest of the Bill is not so objectionable. It limits the time within which all actions of debt, unless evidenced by specialty, must be brought to two years from the date of the cause of action, or in case of existing debts to two years after the commencement of the Act. The present period of limitation is six years. There is more to be said for this part of the Bill than for any of these measures, for we think a reduction in the period of limitation might well be made in the case of debts hereafter incurred. But though we sympathise with the motherly desire of our rulers to induce us all to buy and sell for cash, and generally speaking, to be good and virtuous, we much doubt whether they will not do a great deal of harm in their attempts to force these view 3on us by legislation.

; fntbo interests of tho colony a number ought to be procured and distributed throughout the country. Wo have, indeed, heard it said that some of these recorders were procured years ago, and were never used because the Meteorological Department refused to supply the necessary paper on which the record is marked. If this is the case these instruments should be hunted up and put into use as soon aa possible. The aggregate duration of bright sunshine during the greater part of the year in moat places in the colony inujt be very high, and gg we have said, we believe if English people knew of it, a gre.it inducement would be offered them to pay vi a visit, during the months when the suu is brightest here and least visible at Home.