108 BUREAU OF AMERICAN ETHNOLOGY [RuU. 188 



characterization of Navalio society as overwhelmingly matrilocal, in 

 which a basic distinction is made as between hereditary female "owner- 

 ship" and contractual male use-right (cf. Keichard, 1928, pp. 91-92; 

 Thompson, 1950, pp. 143-145) is probably an oversimplification in 

 any case, and cannot be applied to modern Shonto. It is residence 

 and not sex which per se determines economic participation. Resi- 

 dence itself may or may not be determined on the basis of sex, but 

 such determination is never automatic; it is always subject to contrac- 

 tual adjudication. 



CBEDIT 



Credit extended by the trading post is as much an integral part 

 of Shonto's modem-day economic life as is household interdependence. 

 It is the ultimate institution which frees the community's living 

 standards from the vicissitudes of a seasonal economy (see "The Eco- 

 nomic Cycle," p. 141), as household interdependence frees them from 

 discrepancies in productive capacity. Eighty-six of Shonto's 100 

 households regularly draw credit at the trading post during part or all 

 of every year. This figure refers only to "book credit" (see "Types of 

 Trade," pp. 186-201), which is drawn by and in the name of house- 

 holds. If individual credit against pawn is added, members of every 

 household in Shonto community drew credit in some amount at Shonto 

 Trading Post in 1955. 



It is estimated that Shonto community annually spends between 40 

 and 50 percent of its income before it is earned. Of income which 

 actually reaches the community (i.e., excluding wages of railroad and 

 other off-reservation workers which are spent while on the job), as 

 much as 67 percent is likely to be owed in advance. Particularly 

 during the winter months, the entire community lives largely on credit. 

 Since Shonto Trading Post normally extends credit only in the form 

 of merchandise, and also pays for native products wholly or par- 

 tially in merchandise, it follows that cash transaction is not a major 

 feature of Shonto's economy. 



Capital plays only a limited role in the credit structure. Insofar 

 as jewelry is always pawned with the full intention of redeeming it, 

 and is in fact redeemed in well over 99 percent of instances, the 

 community lives on its future earnings rather than on its principal. 

 This consideration is inlierent in the trading post's credit policy, 

 wherein credit limits are determined on the basis of anticipated future 

 earnings rather than by the value of the collateral (see "Types of 

 Trade," pp. 186-201). The special function of pawn is primarily to 

 raise strictly individual income which is unencumbered by household 

 claims. At most it may also serve as a basis for very limited credit 

 in emergencies, when no other resources are at hand or anticipated. 



