Credit | AdventAI

Pacific Seventh-day Adventist Publishing Association · Oakland, California · May 8, 1879

Credit.

THE question is sometimes raised whether giving credit to the poor, be on the whole a benefit? Or, whether the evils do not exceed the advantages, to those who borrow? Like most practices introduced into society, credit may be used for good or for evil, according to the extent in which it is used. It may be abused by excess, like food or pleasure. In some conditions, the honest, the industrious, and the frugal, may be greatly benefited by credit. Their means of wealth are thus increased. And without such aid they might have plodded and struggled for years and acquired no estate. And yet without prudence and great caution, they may make an improper use, of their good credit; and obtain loans which they are unable afterwards to return. The best plans will sometimes fail; and he who calculates on making fifty per cent. with a loan of one or two thousand dollars, may lose by the speculation. Many an honest and frugal man has been ruined in his estate, by his facilities for borrowing. In this, as in all things else, moderation and prudence are excellent guides.

To a man fond of show, and without habits of industry and economy, the credit system is still more dangerous. So long as he can borrow, he will indulge in his expensive living, and in the parade of which he is so fond. At first, he means to pay; and that in a few months, when his rents and dues come in. But when they come, they are not enough to meet the demands of his creditors; and he must borrow again. He cannot think of retrenchments; his mode of living has become necessary to his happiness, and his standing in society, and he finds it necessary to live on credit. He now merely hopes to pay; for on calculation he cannot justly expect to do it. His expenses are greater than his income; and his only way to keep on in the style he has lived, is to obtain more credit and loans. The system to such a man and his family, is full of mischief. He must soon fail; and the longer it is kept off the greater it will be.

There may be circumstances under which the credit system may be beneficial; but those who venture do well to remember that the day of payment will soon arrive; and that, should they be led to extravagance or idleness by the extention of credit their condition would be far less desirable than that of poverty, with sobriety and economy.