ON BANKRUPTCY.

New Zealand Mail, Issue 889, 15 March 1889, Page 14

ON BANKRUPTCY.

TO THE EDITOR OE THE NEW ZEALAND MAIL. g IR> _I noticed in your paper a few remarks falling from Mr Cock, at a meeting of the Chamber of Commerce, advocating shorter terms as a euro, a 3 I take it, for bo many cases of bankruptcy. In my opinion the merchants are mostly to blame themselves for losing so much money, by giving credit so easily, and to men of no means whatever very often. For inptance, a young pushing fellow has been with a master for several years ; he is either discharged, perhaps, for want of trade, or some other cause, or leaves on his own account to start business in opposition. All he has to do is to go to a merchant that does not supply his former master and he will get credit, or could get it at one time easily. The merchant wants to get rid of -his goods, and ho takes the risk, thinking the old fossil is too slow, and the pushing young man will do a large amount of business. Knowing all the other’s customers, and cutting down the prices for a time, he often succeeds in making a business to the loss of the merchant nine times out of ten. After a year or two this energetic man finds he is a long way behind. The merchant then tries no doubt to get out of the difficulty by getting him to deal some where else, and so relieve him. By this time his credit is somewhat established, but after struggling along for some time he finds it impossible to meet hiß liabilities, and compounds for 108 in the pound, after perhaps ruining his late employer or compelling him to compound or file. The merchant, seeing his losses were heavy for the year tries to put up his prices to those who do pay. Of course competition keep them down somewhat unless a trader is in the hands of some house. These are the things that the Chamber of Commerce should look into and not the terms, as that might bring hardship to a struggling honest trader. Every business man knows that what I state hero is true, and of .almost weekly occurrence. I think that some of the larger retailers should be in the Chamber, as I think they have as much brains and business ability as the merchants. —I am, &c., Trader.