Thursday, August 18, 2016

Credit Cards and Oliver Lee

I wanted to pull out another section of the previous blog post - another same shit, different day issue... This article was written in 1884. The author is talking about buying things on credit. Our modern day credit cards which allow a consumer to spread their liability around, rather than in this circumstance when one knew the proprietor of the general store.

About that time there was a large amount of lumber from the south east towns of this county and from portions of Cattaraugus County being hauled here for a market. There were several parties here paying cash for lumber most of which went to New England. Many of the parties who came here with lumber left half or three-forths [sic] of their receipts for it with the merchants for goods. At that time we had no rail road connection with Buffalo so that every woman that was in need of a calico dress or two or three spools of thread and a paper of pins could not very conveniently go to Buffalo to shop. Then four or five general stores were better supported and had a larger trade than one or two now have. Hence the system of doing business at that period was quite different from the present. Then every farmer and every man of any business who was regarded as any responsible was allowed to run a bill at the stores. It is a well known fact that many people are prone to purchase articles they do not require or could get along without when they can be bought on time. They do not appear to appreciate that a pay day is coming at some future period and may come when they are least prepared for it.
[Emphasis mine.]

This Oliver Lee was a shrewd businessman, wasn't he? As I was reading this account all I cold think of was the HBO show "Deadwood" and the guy who owns the tavern/bordello, Al Swearengen. From the television show's website, they describe him thusly:



The proprietor of The Gem Saloon was six months ahead of everyone else in Deadwood, and he runs the town like a corrupt riverboat captain. He knows every move that every person in town makes, anticipates problems and eliminates them. His girls aren't exactly the class of the town, but he controls the most successful bar and whorehouse in all of Deadwood—bringing in $5,000 a day in 1876—and anybody that threatens his sources of income may well end up fed to Mr. Wu's pigs.

How would we view Oliver Lee? I mean one hopes he was a kind and generous man who helped everyone, but what if he were more like Al Swearengen? History is written by the victors... could this article, being written 50 years after the circumstances, be written by a beneficiary of Oliver Lee's legacy? Man, do I have a pernicious mind? To think ill of people... maybe I should imagine that everyone is sweetness and light... A cheery attitude makes for a much rosier picture.

I mean, at what interest rate? Did Mr. Lee have thugs to break the legs of those people who couldn't pay when the bill came due? (Ok, I have to confess, I am writing this blog as I read the article. I see that perhaps I hit the nail on the head... wouldn't you say that there is a bit of a defense going on in this next paragraph? This just makes me laugh out loud!)

Mr. Lee was always liberal in giving credit to his customers. He generally gave them to understand that at the end of six months or at least once a year that their account must be settled up, and then if they were unable to pay and the party was responsible, a note on interest was taken. When customers paid no attention to the notice that their accounts must be settled, the accounts were generally placed in the hands of a collector. From this fact some of this class endeavored to create the impression that Mr. Lee was severe on those who were not in condition to pay, when in fact all he required was for them to live up to their agreement or the conditions under which they obtained credit. It is a fact that cannot be denied that it would be far better for all parties if the system of credit was entirely wiped out and all parties were compelled to pay for what they purchase on the receipt of the goods.

Hahahaha! Collector - that's a polite term, right? Severe? Hahahaha, he was probably a cruel brute! Live up to their agreement! Yes, the law is on his side. I reemphasize: Same shit, different day!

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