The custom of dating, that is, dating bills a certain length of time ahead of the actual shipment of goods, is in effect a method of granting extra credit by the manufacturer or jobber in order to induce retailers to make their purchases before the season opens. For instance, a manufacturer sells a bill of goods on March 1, with a dating of sixty days - terms 2 per cent, ten days, net, thirty days. This bill will not be due until June 1, as the dating carries it forward to May 1, after which the buyer has thirty days in which to pay it. The seller cannot demand payment on this bill before June 1, but of course the purchaser may settle it earlier if he chooses. If he pays cash before the end of the ten days (March 10) he can deduct two per cent discount and also interest at the rate of six per cent for the unexpired term of sixty days (the dating).1 Of this practice of dating, Prendergast says: "From a concession on the part of the wholesaler and jobber, the idea of dating seems to have become a right demanded by the merchant, and a settled principle in commercial practice or credit. It has led to an undue anticipation of wants on the part of those engaged in all divisions of trade from the manufacturer to the retailer; and in lines where the element of fashion is a leading one, and subject to sudden changes, it has been the cause of considerable loss to many"2 Dating transfers the risk from the manufacturer and the wholesaler to the retailer. It tends, moreover, to encourage dealers to overstock and to take larger risks in anticipating trade conditions. As a consequence heavy and frequent losses are likely to result. There seems to have been a disposition in recent years, especially on the side of wholesalers, to discourage the practice of dating. The tendency is toward shorter terms of credit.