The Pamphlet Collection of Sir Robert Stout: Volume 30
Their Baneful Influence on Trade
Their Baneful Influence on Trade.
Herbert Spencer's remarks as to the tendency of artificially obtained credit to lower prices and ruin legitimate traders are so trite and so pertinent to the subject of this paper that I cannot refrain from appending them:—"Forgers of credit are habitually instrumental in lowering prices below their natural level. To meet emergencies, they are obliged, every now and then, to sell goods at a loss; the alternative being immediate stoppage. Though with each concern this is but an occasional occurrence, yet, taking the whole number of them connected with any business, it results that there are at all times some who are making sacrifices—at all times some who are unnaturally depressing the market. In short, the capital fraudulently obtained from some traders, is, in part, dissipated in rendering the business of other traders deficiently remunerative; often to their serious embarassment."