To the Editor of the "Nowru-Ciuwa Darty News"
Sin—The extension of credit referred to in "Cash Only's" letter appearing in yesterday's issue is not granted in the easy, loose manner Suggested by your correspondent.
To my knowledge it is now the general custom {o request bank references or recommendations from responsible persons before granting credit to applicants who wish to open a charge account, except in those cases where applicant's position in the community is such that it would be an affront to ask for praiseworthy intention to live well within their income, but many find thatthe world-renowned attractions of Shanghai sooner or later upset their calculations, with the inevitable result that they soon run Into debt, Legal action is resorted to in many cases but not until all other methods have failed. No doubt it is annoying to "Cash Only" to be asked to bring pressure on his employees, but Seems to me that, apart from. the Question of debt collection, this very faction on his part might possibly have the salutary effect of bringing the backslider to his senses Shanghai, July 27, Five Instances of Requests To the Editor of the "Nowtu-Cinna Dany New:
Sin~In reply to "Retailer," it is bbecatiso of the loose and easy manner in' which credit, is extended that T Wrote, to the "North-China Daily Out of the last five instances in which assistance has been asked of me by retailers in the collection of debt, only one could be described as excusably incurred. Two were for bar and cabaret chits, one was for rather expensive piece of silver, tone from a wine merchant, and one (probably excusable) for rent.
When an employer is asked to bring pressure to bear on an employee (0 pay his debts it is usually too late: his debts are too heavy. "Retailer" must be aware that it is illegal to deduct outstanding debts from salary; the only other alternative is dismissal, and this, however regrettable, perhaps the soundest course to adopt.
The accumulation of debt can only be prevented by the seller, who is too often tempted to take a chance when asked to "charge it up." Admittedly it may be good policy to do so ant write off the bad debts incurred, when, for instance, 300 or 400 per cent. profit can be made on the sale of a Bottle of beer or a cocktail—but the purchaser's employer should not be called in to collect the bill.
Shanghai, July 27.
Text read from the printed page and cleaned; old type leaves the occasional error.