CORRESPONDENCE.

Star (Christchurch), Issue 9303, 1 August 1908, Page 4

CORRESPONDENCE.

BUILDERS AND BANKRUPTCY.

TO THE EDITOR,

Sir, — Your readers no doubt have observed tho many cases of bankruptcy of late, most of which have been of local builders. The general public may not be awaro of tho fact that most of these men are strangers in the community, whilst others have been journeymen belonging to various unions. From a business point of view it appears incomprehensible how easy it is for men of straw to obtain ciedit from the merchants to such a large extent, apparently without question as to their stability. The ovils of such a method of doing business have " a more farreaching effect than appears on the surface. The timber and brick merchants, ironmongers and others have lost large sums of money during the last year or so through those who have filed their schedules and others who have compromised with their creditors. Under such a system of credit trading, successful business can only be maintained by putting the prices upon material and making those who are doing a legitimate business pay for the deficiencies of those who do not meet their"engagements. The continuance of such practices must culjainate in the restriction of the progress of legitimate building, on account of the great expense necessitated through this and other causes. One would think that in the interests of the community the merchants, before opening an account with any one, would require to know ihis financial position. By such means a- mere adventurer -without capital would be prohibited from entering into business. — I am, etc., %0 DUTY ON OREGON. July 31, 1908.