82 Commercial

.» . . K ‘ . . _ _ . ~ A. -. . ~‘fi'fi’q _. jig: ('uumny l‘v‘tures of the Paul by [raids \ A MacKay (,ar

Reginald H. Sterns ofCharlottetown behind the wheel ofa MacKay car. His daughter Elinor appears to be enjoying her ride.

Banking:

Lack of cash is always a problem when the barter system is left behind. Early settlers could exchange goods or labour with their neighbours for something of equal value. Even in the twentieth century, a barn raising bee, wood cut on the halves or sharing machinery are examples of convenient exchange.

The early merchants operated on a system similar to the barter. But, somehow, the results were not the same. They extended credit to a farmer in exchange for his oats, potatoes and other commodities. The farmer. in turn, was able to buy sugar. salt, hardware and other imported goods from the merchant’s store.

A letter to the editor of the Islander of February 28, 1860 from East Point had this to say:

A farmer buying on credit pays 10 to 30% more than a cash customer. The amount ofdebt in Lots 45, 46, and 47 is beyond belief. I could name scores who have been obliged to mortgage their lands and stock. Merchants who carry on the fishing business must have men, and few would sell fish for the price generally given for it ifcircumstances did not compel them to accept the terms of their creditors.

Many ofour country merchants ruin themselves in a few years by dealing out credit to all who will take it in order to