The Portland daily press., 1884-05-08
FINANCIAL AND COMMERCIAL


Mercantile paper has again been marked up in
New York, while strictly call-money is cheap.
though the rates are better The failure of the ORR
entail Bank in London shows the same causes OF dis
trust and liability to panic exist this side.
similar disaster twenty years ago was the beginning
of a wide spread commercial overturn; and though
possibly the conditions ale not alike to-day as
then, yet old discerning spirits view with great ap-
prehension, the various straws which show the ten
dency of the business world towards lower values
and realizations.
JAS. R. Keene's failure shows that millionaire ia
not infalibe and is surprising inssmuch as this is
about the first failure of man thought to be very
rich. The great losses in stocks must have been
met by the street rather than by the public Close
ly folio wing upon these comes the failure of the
Marine Bank of New York, and the highly respect
able firm of Grant Ward. Prices Of stocks fell off
rapidly and for the moment it looked as if a big
overturning was to come. With such omens, he
must be daring man who can see other than very
critical appearance in all the financial Skies
We have received from a respectable source the
following letter, upon which We propose to com
ment.
To the Editor Of the Press:
Sir,-In several recent money articles published
In your paper, the financial writer has shown him
self a bitter opponent of the system of commercial
travellers. With his conclusions 1 be o to diff
fer and enter an emphatic protest The pres
emf system, in the opinion of many. is supe-
chant TO Judge OF his customers credit by
actual ontrAct through his salesmen This Al.
though only clerks estimate of credit is counter
the spot where his customer lives and second trade
is increased, and more customers added to the mer
chants list. am, yours truly,
COMMERCIAL, STREET
We are aware that the position we take is ssri
ousy questioned by many eminent traders. At the
same time they are like some drunkards. they
would like to abandon their pernicious practice if
they could. But they claim, that while the tempta
tions are so mighty they cannot get away from the
old habit. The writer has yet to find one single
firm which justifes the bad practice under consid-
Grafton and yet as ''they all do it," why-"we
must"
In the first place the system of drumming is very
expensive. Granted that all statesmen are honest
and industrious, there are railroad fares and hotel
bills and team, and salaries to be paid for Every
country town is infested by men who crowd their
wares too frequently upon traders who scarcely feel
their inability to handle many goods but through
the competition of prices and the persistence of the
salesman, the trader loads up with more than the
village needs. And as logical result the country
trader is not as careful to whom he SELLS for no
sooner are goods bought than the inevitable re
hinder comes in that they must be paid for. This
shows again that the system is dangerous as well rs
expensive. Bills of goods are sold to parties in
their stores, when If the parties visited the dealer
direct, no such credit would be granted The result
Is disastrous to two parties; goods sold with too
small profit; and are re-sold to people whose ability
to make prompt cash payment is very questionable.
We are confr nted then by this fact that fully one
half of the smaller stores nothing but branches
or retail shops for a wholesale dealer And the
wholesale dealer is the party who underneath all
argument taxes all the chances. We further state
that our wholesale trade does get that fair
centage upon sales which is Just compensation
The large dealer works for nothing He has to
keep up considerable machinery AMI routine for
avery small return. And again the system is de .
ceptive. runner sells all he can because his sal.
airy depends on his energy. His views of his cus
toners worth apt to be coored and brought
into frequent relations with the dealer he fosters
sympa by and Partially for him. The partners
views are too much dependent upon the drummers'
prejudices to governa well regulated counting
m;and every and then bad failure is a live
ly eye-opener. One of the best commentaries upon
the system is to watch how pay their notes. In
stead of sending their money in to the bank which
holds the the note the money given to the runner
on account no fixed responsibility is felt part of the
note is paid part is added in to the NJ t SALE and
kind of continuous FLAPS and slams' is kept nm he
tween dealer and customer.
We do not endorse the argument that trade is in
creased thereby 1t is for while; but when panic
comes too much of this good thing is more than
enough. The times not propitious for extended
credits 1t is good time to shorten sail and sound
bottom. It matters not how much is made if the
percentage of loss eats IL all up by and by. We
venture the prediction that one result of the next
commercial disaster will be the withdrawal of
many of the present methods, by conservative
houses, who will prefer to do less business and
make what shey know they can keep,