3866. You don't think the existence of such cases inconsistent with your denial of Mr. Walker's statement with regard to bad debts?-I have referred to his statement on that subject, simply for the purpose of pointing out the absurdity of it.
3867. Of course if you speak of the debts as being absolutely bad debts, the statement is absurd, as you point out but suppose that a man starting business in Shetland gets a number of fishermen into his debt to a certain amount, has he not a hold, over these fishermen, so as to compel them to deliver their fish to him in future?-He has no hold over them whatever for that purpose. He has just this hold over them that if he chooses, he can go into the court with them and prosecute them; but after they have fished to him for some time, and find that they can get no further supplies from him, they are very likely to go away and offer their services to some one else.
3868. But suppose that at the end of the season a merchant has 100 fishermen who are in debt to him to the extent of £2 or £3 or £4, and whom he can prosecute at once for recovery of that money, do you think the fishermen have no inducement to continue to deliver their fish to him, rather than allow him to prosecute?-It may induce some of them to do so, but some of them may be frightened and leave him, in case he were to prosecute them. We generally find that when a man gets into debt, to us, we never see him again.
3869. Do you mean in debt to that extent, or to larger extent?- When he gets into our debt to the extent of £6 or £8, he very soon leaves us, and we never see him again. In many cases they know very well that the prosecutor might have to pay the law expenses and would get no return.
3870. May that not arise from the fact that you deal more leniently with your debtors than other merchants?-I don't think we do. I think other merchants carry on their businesses on much the same principles as ourselves.
3871. Does it not strike you that the statement you are contradicting about the value of bad debts to a Shetland business, although it might be exaggerated in the terms which it is put, has nevertheless a certain amount of truth in it?-I know quite well, that if a man with small capital lays out that capital in buying goods to supply fishermen, and delivers these goods to the fishermen, and then has to pay for the goods and has nothing to pay them with, he must shut his shop and become bankrupt.
3872. But if he has sufficient money to carry on for a little,-or if he gets his bills renewed for a certain time, and manages to get the fishermen bound to him by the fact that they are in his debt, and by the fear of being prosecuted for that debt,-may he not have a very good season next year, and be able to get a large supply of fish, which he can sell at a profit, and so gradually make his way?- Fish are not like ready money. You may have a pretty large number of men fishing to you, but you cannot convert their fish into money until perhaps the end of twelve months. You only get your fish sold once a year, and you won't get any person in the south to give you goods on credit for twelve months. Besides, a fish-curer must always have a certain amount of debts standing in his books against fishermen, and stock which he cannot make available.
3873. Do you mean shop goods?-Yes, he must have shop goods, and he must have debts in his books to a pretty large amount before he can carry on extensively.
3874. I am assuming always that the man, although his capital may be limited, has a certain amount of capital which will carry him on for a couple of years?-Well, then the end would be sure to come.
3875. But he may manage to make a good business, and to carry it on successfully; if he gets a certain number of fishermen under an obligation to fish for him; or if he can induce them by offering premiums and gratuities to fish for him rather than for others,- can he not?-But in the meantime he is giving them supplies; and while they may have got into his debt to the extent of £5 or £6 each man this year, on the understanding [Page 94] that they are to fish to him next year and pay off their debt, yet when he comes to settle with him he may find that they have not only not paid up their old debt, but that there is something more added to it, as he has been giving them supplies all the time.