FILING A SCHEDULE.

Observer, Volume XXXIV, Issue 24, 21 February 1914, Page 3

FILING A SCHEDULE.

A Common Occurrence

THIS is a period when the official assignee is probably working overtime and the too trustful and optimistic tradesman is seeking the sanctuary of the Bankruptcy Court. The speculative tendency of the get-rich-quick person often induces him to begin business without capital. A mere visit or even a glance in the shon windows of small traders in city and suburbs will convince anyone that they are often untutored persons, without training of any kind, but filled with a beautiful optimism that conceives general ignorance to be the essential asset for business. A large number of small traders have trusted to the small number of large merchants and the hesitation of the big man to keep some small man going has been the cause of much sorrow to them. The late strike caused Auckland merchants to issue a mandate to little retailers to "pay up so that the striker, in smiting the merchants smote the little man much harder.

Innumerable little businesses in Auckland are, of course, successful, but there are many of them that exist only because of the absurd extent to which the " Oh, that'll be all right !" credit system has grown. The trader who suddenly becomes anxious about the money that is " out " and expects customers to pay him is, of course, interfering with horseracmg, the Exhibition, and the that are so necessary to the people. The small trader who insists in doing a cash business is nota small trader for long. The difficulties small shopkeepers have to face can be estimated by a perusal of statements made at meetings ol creditors. Invariably the book debts" are large in proportion to the liabilities or assets and the "had" and "doubtful" are the best indication of the prevalence ol +.he "n«d mark." The Magistrates' Court is not of great utility to the suing tradesman n™*? magistrate is aware of the futility of trying to get " blood out of m a stone " and thousands of Magistrates' Court summonses for debt in New Zealand represent mere waste of Court fees, and lawyers' charges, '"to accomplished debtor knows the futility of the summons to extract what'he doesn't possess and that a "judgement summons" is very often an expensive and useless luxury to the man who sues.

T-he real hope for the small trader who "starts" on nothing, has t vaguest idea of business, and who wants to be a millionaire is a federation to kill the credit system If the small trader does not meet his liability to the merchant at due date, the merchant stops supplies.

The small man in his turn is frightened to act similarly to his customers and he is generally not constructive enough to bond together to protect himself effectually against the " bad egg" by a cash system that all his kind insist on. The credit system flourishes exceedingly in New Zealand because it is the State system. We are a nation of borrowers. We don't pay for anything "on the nail " and the mortgage business is one of the most flourishing industries the country has. Very naturally the man who observes a Government borrowing millions to pay off existing debts feels justified in insisting that a small trader, who is

dependent on a large trader (who has a bunch of mortgages himself) shall supply him with the necessities he desires on a long credit. Meetings of creditors are more frequent throughout New Zealand at present than for a long period, mainly because the wholesaler demands the cash he needs as much as any one else. Cruel as it seems in individual cases, where small men, are crushed, it "is useful as an inducement for people to live within their means. It is a habit that is less common in New Zealand than in any other country, mainly because the State has never shown any intention of paying its way.