CASH TRADE IN BREAD.

Dominion, Volume 1, Issue 191, 7 May 1908, Page 5

CASH TRADE IN BREAD.

° Sir, —I am sorry to see so much adverse „ Criticism directed against the proposed ' adoption of a system of cash - trade ' in j bread. lam not connected with the trade „ in any way, hut I am so much impressod with tho evils arising out of the „ system of credit now prevailing that I" am 0 highly pleased to sco any step taken for the y introduction of a cash system. TJnder tho credit system, bakers mako bad debts, probably moro than any other class of traders, besides which tho system facilitates dishoneist practices by employees. All such losses havo to be made good, in tho lone, run, by those who pay their bills, and everyone in that class has therefore reason to rejoice at tho introduction of a cash system, under which they will only have to pay for their own consumption, and not to make good tho deficiencies or robberies of others. ■ Tho chief objection of the critics seems, - however, to bo directed against the idea of f paying in advance by the purchase of s coupons. This has been described as allow- . , irig your baker to become your banker, and giving him tho uso of your money without • security and without interest. Well, if I 1 understand ■ tho proposals aright, no one 0 need do that unless h-a chooses. He can j always pay his 3Jd. a loaf on delivery. If, however, he can spare the money for a few s days,' and is willing to secure a liberal r . discount, he can buy a dozen coupons for Y 3s. 4d. THoto is no need, as one objector o suggested, to buy ten shillings worth at 0 onoo; As the customer would probably , always take, at least, one loaf when buying coupons ho need nover bo in advance to a " greater amount than 3s. ■ Old.' If he has - not enough confidence in his baker to trust .- him .to that extent ho can pay cash for his purchases, or change his baker. If, 1 however, ho buys the coupons, his risk diminishes day by day as he gets his dozen 5 loiivos. By that time his average daily t risli would. have amounted to Is. Gd., and .- hp would have saved 2d. If ho only takes B six loaves a week ho will be saving Id. per week, • or' 4s.~ 4d. a year, for an averago advance of Is. Gd., and a maximum risk of 3s. Ojd. If; his weekly consumption is heavier than'six loaves his gain will bo moro in proportion, but there will bo no increaso * in his averago or maximum risk. J So far from getting "no interest" on his * advances, ho gets tho fairly good gain of 289 per cent, per annum. If ho is not coni tent with that, however, he. has always f tho option of investing capital at a 3 higher rate, if ho can get it, -and. paying 1 for his bread day by. day on delivery.' For 1 myself, I am satisfied with 289 per cent., ' and only wish my butcher, grocer, etc., 3 would start tho samo system. ; • 'It is true you havo-no'security for your " advance of 3s. OJd. boyond the character of 3 your baker, and the fact that if he is doing 6 a fair business it would scarcely pay him J to run away, with oven one thousand ad- " vances of 3s. Old. Meantime, you are J saving 2d. on each dozen loaves, and it will " not bo long before you will have a reserve r fund. of, say, 3s.' in hand from 'these sav-. 3 ings, after which you cannot be _ a loser, 3 evon if your baker runs away with your " advance at its maximum, ■or becomes bank--3 rupt or dies. I can understand tho proposal being op--3 posed by thoso who havo hitherto managed F to get bread without paying for it, hlit not j by those who,-always pay twenty shillings ' in the pound.—l am, etc., ; May 1. PATERFAMILIAS.