478 DISPOSAL AND SALE OF WOOD. 



One of the most important points is whether cash-payments 

 should prevail, or credit be given. The question is regarded 

 from different points of view in different countries. In most 

 German State forests, except quite recently, cash-payment was 

 the rule, but this has been modified considerably of late. 

 Credit increases the work of accountants, often encourages 

 swindling and indiscretion on the part of certain purchasers, 

 but all this shady side of the credit system disappears com- 

 pared with the disadvantage of reducing competition by 

 demanding ready money. Credit is now-a-days such a neces- 

 sary condition of all trade and business, that the forest-owner 

 cannot avoid it. Sufficiently long credits, up to a half-year 

 and even longer, in the case of trustworthy large dealers, are 

 conditions which long experience, far from verifying the 

 fears of extensive loss which have been expressed, has proved 

 thoroughly justifiable in the interest of forest-owners.* 



It is self-evident that credit can be given to doubtful pur- 

 chasers only on sufficient security (after payment of 25 per 

 cent, of the purchase money, deposition of valuable docu- 

 ments, promissory notes on good banking houses, etc.). In 

 the different German States and in Austria, various systems 

 of credit prevail, for instance, in Baden, 3 per cent, discount 

 is given for cash payment, otherwise three to eight months' 

 credit. 



[In India, deposition of Government promissory notes, on 

 which interest continues to be payable to the depositor, is the 

 best form of security in wood-sales. It can be stipulated also 

 that in sales of standing trees, one-third of the purchase 

 money is payable after the wood is converted, and the balance 

 on removal of the wood from the forest, more than sufficient 

 wood being retained in the forest to cover the balance of the 

 purchase-money. Tr.] 



The date fixed for removal of the wood from the forest or 

 depot is also an important condition of the sale. If the limit 

 allowed is too short, or not fixed with due reference to the 

 cost of transport ; if carts and beasts are few and are required 



* The accountant's office at Aschaffcnburg, which receives payment for the 

 oak wood from the Spessart. had to receive between 180373, 111,400, of 

 which only 27*. was a bad debt. 



