8. Is interest demanded on time accounts? No. 9. With what classes are the evils of credit most conspicuous? With the shopkeepers. 10. What kind of produce commands cash returns? Sugar-cane. 11. Are credits of record (mortgages, judgments, &c.) prevalent ? Yes. Among what classes? All owners of real estate. 12. When a person in business has once failed or been discredited, can he resume? Yes. What are the obstacles to such resumption? Very few, and these are rarely enforced. 13. Is bankruptcy frequent? Yes; during the last ten or fifteen years, owing to the decreased production of wine, the chief export. 14. To what extent do relief acts in bankruptcy prevail? Relief is extended to almost any one. 15. Are fortunes readily made? There are no fortunes to be made in Madeira since the decline in the wine trade. Everybody is poor. 16. What are the general effects of credit? Frequent loss to the creditor, encouragement to the debtor to increase his debts, and general laxness in the transaction of business. L. DU PONT SYLE, UNITED STATES CONSULATE, Consul. Funchal, July 10, 1883. MAURITIUS. REPORT BY CONSUL PRENTIS, OF PORT LOUIS. 1. Does credit stimulate trade? Upon this point opinions differ. As a rule, though not without exceptions, I am of opinion that it does. Without it wholesale transactions would be accomplished with difficulty. As in other countries, the import and export trade are based both upon bona fide credits with well-known firms and hypothecation of shipping documents with others. Hypothecation, again, is based upon need of money on shipper's side and want of confidence in the stability of the consignee. With regard to the internal trade of the island, the banks and credit companies trust the merchant and the planter; the merchant trusts the shopkeeper; the shopkeeper, with exceptions, trusts his customer. 2. Are people averse to contracting debts? Yes and no. There are persons who sedulously strive to keep out of debt; but, as a rule, the majority are ready to contract debts. 3. Are there any sumptuary laws or regulations concerning credits? I am not aware of any special enactments in this direction. 4. To what extent does credit prevail in proportion to the volume of business? To a very considerable extent. The trade of the island rests upon the manufacture of sugar, and three-fourths, at least, of the plantati work upon the system of "advances." Proof: all the sugar manuf ured comes up to town as quickly as made and goes into dock wa houses, the warrants of which are handed over to banks and ot creditors. 5. To what extent do losses incidental to business prevail? In wholesale transactions to a less extent than in many other pla The failure of a large house is uncommon. Failures generally o amongst the Chinese, Arab, Indian, and retail traders. The Chinese occasionally given to swindling. But, considering the great numbe retail dealers, I consider the number of failures compare very fav bly with those in many other countries. 6. Do tradesmen extend credit to mechanics and laborers readily As a rule, no. The bulk of this class deal with the Chinaman, wh their grocer; the Indian or Arab, who are their drapers and clothi whilst meat, fish, fruit, and vegetables are purchased in the public ket, and always for cash. The Indian, I believe, trusts rarely. Chinaman trusts those he knows to the extent of a dollar-perhaps dollars; that is all. 7. What advantage have cash buyers? In the wholesale trade, the usual discount; in the retail trade, advantage of choosing the cheapest establishment. Retail disco are unknown here. 8. Is interest demanded on time accounts? Rarely, if ever. 9. With what classes are the evils of credit most conspicuous? The middle classes; the tendency amongst them being to live far yond their means until credit is stopped, and then the usual stru begins. 10. What kind of produce or manufactured articles command returns? The answer to this question will be found in my reply to query N 11. Are credits of record (mortgages, judgments, &c.) prevalent; if so, among what calasses? I cannot say. 12. When a person in business has once failed or has been discred can he resume, and what are the obstacles to such resumption? The usages prevailing in the United States, England, and sin countries with regard to such cases may be accepted as holding here. 13. Is bankruptcy frequent? My answer to query No. 5 may serve as a reply to this question. 14. To what extent do relief acts in bankruptcy prevail? I cannot say without reference to numerous local ordinances. it may be stated generally that the bankruptcy laws of the colony commonly inveighed against as being far too lenient. 15. Are fortunes readily made and lost? Speculation is almost unknown here. Hence, it follows that wh fortune has been made the process has been gradual; the same rul plies to its decay. 16. What are the general effects of credit? See my replies to queries Nos. 1, 4, and 9. UNITED STATES CONSULATE, THOMAS J. PRENTIS, Cons Port Louis, September 18, 1883. SIERRA LEONE. REPORT BY CONSUL LEWIS. 1. Does credit stimulate trade? In my consular district credit does not stimulate a healthy and permanent trade. 2. Are people averse to contracting debts? Not at all. Nine-tenths of the population will contract as many as they can, and they are not like the man who walked his room all night because he had a note to pay next day and no cash to pay it. 3. Are there any sumptuary laws or regulations concerning credits? There are none. 4. To what extent does credit prevail in proportion to the volume of business? From 30 to 40 per cent., as near as I can judge. 5. To what extent do losses incident to business prevail? In many cases very heavy losses occur from giving credit, and particularly when the giving of credits is intrusted to agents lately arrived and who are anxious to do a large trade. This class make for their principals the heaviest losses, but a cautious man, who has resided here two or three years and knows the people and their ways, can frequently give large credits with safety, but he must know with whom he is dealing. 6. Do tradesmen extend credit to mechanics and laborers readily? They do not, but quite the reverse. They are like the burned child; they have done it, but don't want to do it again. Experience teaches them it does not pay. 7. What advantage have cash buyers? They are always welcome, and can buy goods from 5 to 20 per cent. less than credit purchasers obtain the same goods. 8. Is interest demanded on time accounts? Bill-heads read so, but to my knowledge it is not enforced unless a man asks for long credit and makes a special arrangement. 9. With what classes are the evils of credit most conspicuous? With the poor class, and particularly small traders, as the risk is greater with them; and as they have everything to make and nothing to lose, they chance it without regard to prices or consequences. ever, credit is disadvantageous to all, more or less, as its tendency is to encourage extravagance in quarters where strict economy should be practiced. It also tends to make purchasers less careful of what they buy, and the amount; consequently they soon find themselves incumbered with a surplus of unsalable and perishable goods, occasioning inevitable loss, whereas if they had bought for cash they would have purchased less and selected more suitably. The tendency of the system is bad. 10. What kind of produce or manufactured articles command cash returns? All African produce sells in Sierra Leone readily for cash at market rates-India rubber, gum copal, palm oil, palm kernels, benni seed, ground nuts, dry hides, raw gold, chilly peppers, ginger root, ivory, coprah, cane wood, &c. There is not much in the way of manufactured articles, excepting for local use. 11. Are credits of record prevalent; and, if so, among what classes? The security of credits by mortgages of real estate is common. Su mortgages are generally given by the local traders or purchasers to t importer of foreign goods, or by the importers to the parties who su ply them with goods abroad, or upon the loan of money. 12. A person who has failed in business and passed the examinat of the insolvent debtors' court may resume business upon obtaining certificate of discharge, which the court will grant upon the assets the insolvent satisfying at least 6s. 8d. in the pound, or upon the jority of creditors agreeing to the grant of such certificate when t proportion of assets to liabilities is not secured. The absence of t certificate, however, does not as a matter of law restrain the right resumption of business by an insolvent, but his after-acquired prope will not be free from past liabilities. 13. Bankruptcy or insolvency is not frequent. 14. Relief in bankruptcy or insolvency is afforded in all cases, subj to the conditions mentioned in answer 12; but in addition a punishm not exceeding two years' imprisonment is inflicted on the insolvent wh it shall appear to the court That such insolvent has contracted any of his debts fraudulently, or by mean breach of trust, or by means of false pretenses obtained the forbearance of any of debts by any of his creditors, or has put any of his creditors to any unnecessary pense or any vexatious or frivolous defense or delay to any suit for recovering debt or any sum of money due from such insolvent, or is indebted in costs incurre any action or suit vexatiously brought or defended, or is indebted for damages red ered in any action for criminal conversation with the wife or for seducing the dau ter or servant of the plaintiff in such action, or for breach of promise of marriage m to the plaintiff in such action, or for damages recovered in any action for a malici prosecution, or for a libel, or for a slander, or assault, or battery, or malicious arr or in any other action for a malicious injury done to the plaintiff therein, or in action of tort or trespass to the person or property of the plaintiff therein, wherei appears to the satisfaction of the said court that the injury complained of was licious, or if it appears that the insolvent's whole debts so greatly exceed his me of providing for the payment thereof during the time when the same were being tracted, reference being had to his actual and expected property, as to show gross conduct in contracting the same. 15. Are fortunes readily made and lost? Neither. 16. What are the general effects of credit? Bad. Every man, woman, and child, with or without capital, desi to trade. They want credit, and if they sell the goods given them a profit, and, after living out of the same, there is anything left, they pay it in on account, taking more credit. In this way all poor ped are enabled to live, not infrequently to the merchant's loss. When o credit is given to irresponsible parties, the tendency is to keep on givi in hopes to finally get paid all; but the debtors are usually smart eno to keep well in debt, and at last a dead loss ensues. Many people, ev who have money will keep it lying idle and run in debt, purchasing credit, paying higher rates than though they bought for cash, and k you out of your money until the goods they have purchased are s The quickest way to lose customers is to give credit, for when they hopelessly in debt they leave you and go elsewhere and pay ca There are many objections to the credit system. UNITED STATES CONSULATE, JUDSON A. LEWIS, Consu Sierra Leone, September, 1883. SOUTH AFRICA. REPORT BY CONSUL SILER, OF CAPE TOWN. In reply to your circular-letter of May 15, and the interrogatories contained therein, I have the honor to state: I. There has long existed a six months' credit system in commercial transactions throughout South Africa, which has certainly given some stimulus to trade, though trade based on this system has generally been regarded as unstable and precarious. Purchasers, however, as a rule, have availed themselves of the benefit of the custom, there being no sumptuary laws or regulations governing credits. II. It would be safe to estimate that four-fifths of the larger commercial transactions and the greater part of the small ones of this colony have for several years past been conducted on this system. III. There are no data on which to base any near approximation of the losses incidental to this credit system, but they have been very great, more especially within the last two years. IV. Tradesmen extend credit to mechanics and laborers only who are known to have regular employment and are permanently settled. V. Cash purchasers have the advantage of 5 per cent. discount on all sums over one pound sterling, though no interest is exacted on time accounts. VI. The evils of the credit system are probably the most conspicuous with builders, manufacturers, and shopkeepers, but all classes are to a greater or less degree affected by it. VII. Ostrich feathers, wool, forage, and nearly all kinds of farm produce command cash returns. VIII. The mortgaging of real estate is of common and frequent occurrence here, and is resorted to by all classes of owners thereof for the purpose of effecting cash loans. The custom is probably the most prevalent with the farmers, who frequently require funds with which to carry on their work or for the purpose of restocking their farms. IX. One who has formerly been recognized as a careful and upright business man, and who becomes insolvent through no alleged fault of his own, experiences no difficulty in resuming business, provided he can procure the necessary capital; indeed, it is not unusual for his creditors to furnish him the wherewithal for such resumption, with the hope that he may eventually be enabled to liquidate all his liabilities. X. During the last eighteen months the insolvency courts of this colony have been overrun with business, and the amount of insolvencies embraced within that period aggregates several million pounds sterling. Under the existing law of bankruptcy a creditor may claim everything, real and personal, belonging to the delinquent, except his personal wearing apparel, though this extremity is seldom resorted to. The law as it now stands is regarded as very deficient in many respects, and the present parliament has under consideration a bill designed to remedy these deficiencies. XI. Vast fortunes have been made here in a wonderfully short period of time, and not unfrequently lost in less than was employed in making them. This, I may say, is specially applicable to those who speculated largely in diamond-mining stock. By steady, legitimate business pursuits many large fortunes have been accumulated here, and are still in the hands of their founders. But the mania for acquiring sudden affluence has caused many to abandon the more certain but less attractive |