New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-06-11
PAPERS BEFORE THE CREDIT MEN.
CREDITS AND THE PRACTICE IN
LARGE CITIES

Kansas City. Mo. June Io-hn open parliament
following the reading Of papers was the programme
to-day Of the National convention OF the credit
men The first paper was by a. l.. Reddan. OF
New Orleans on Mercantile Agencies and Report
OF Committee Thereon" G.. J. Hoovey. OF Chicago
took for his topic business Literature" and 8 s.
Conover of New-York. Credit Department
Methods" In the numerous discussions that fol-
lowed the reading OF these papers the representa-
tives OF the mercantile agencies had an oppor.
tunity 10 address the convention.
James g. Cannon vice-Dresdent OF the Fourth
National Bank Of Ncw-York. delivered an address
on individual Credits" Among other things he
said:
individual credits properly dispensed call for tho
exercise Of diplomacy mature Judgment and eter-
nal vigilance, and one should be especially conserVa-
ye IN extending liberal credits on the lux ,res OF
secure Information touching d b sPS
feticent about their affairs that IT is not deemed
prudent to ask questions You YOU'D De sur.
Substantial houses in the larger cities will seek
for DATA through the fundamentally OF janitors Of
a. retailers are fearful Of making TOO many IN.
qu.ries direct and driving away trade tnat Is
not De necessary. and prejudice against giving IN
formation on the part OF individuals VIII be over
iuctance to give Information the par, Of Dor;
rowers IS being removed by the requirements OF
Omshng should Be knSwn 5ssa 5Sb ss The hin
formation respecting business men can be secured
WITH Comparative ease but in the case Of profess
lem is not so simple. Therefore. references should
be required In all cases, and they should DC looked
pnrchase may be small the account. once opened.
may increase IN Importance without attracting at
from other sources inquiry should be made TO
whether his payments are Satisfactory Wnen real
sbouid he gatnered Ate The investigation is
hand. credl; limit should be carefully axed and
beyond this point the account should not be
research that the increased line can be safely ex-
tended
The custom of allowing people Of means TO su!t
their own convenience IN making payments mas
gradually grown until 1t seems to me mat re,orm
that the mere fact that they possessors .;
wealth does not entite them 10 eXccptonal prlvi-
sItuated I would ay special emphasis upon the
Importance OF retailers rendering their bis prompt
collections and will also have the effect OF edu-
eating their customers as TO proper business
Extreme care should BE exercised in trusting peo
pie OF narrow means. dependent upon Inoaerste
selorios that are received with a regularity ina;
renders continuous credit unnecessary for the mere
fact that they seeking creG except II rare m
yond their means Extrayagani naoits are nor
course should be discouraged as much possible
The drift: in the retail line al present seems % te
in the direction Of closer terms and ii H. now gen,
orally considered that account that IS not settled
in thirty days IS not desirable. whereas wears ago
retail 70 merchants carried on their books a great
many credits that ranged from six months to a
year In some quarters there IS an apparent ten
1encv 10 DO away with the credit system entirety
| and reduce retail trade to a cash basis.
During the last few years we nave .Deen slilerihS
| not alone from a failure of business hrna ara
CORPORATIONS but from the straining OF individnal
credit which in my opinion. has been reSpotl.iDle
in a large degree for the prevalent unSatls iaStoty
/ conditions In business affairs. Many people nave
been living beyond their means. ana since we
panic OF 1893 especially individual credit has been
extended far beyond its normal limits ana ;'s re-
| suit the whole line Of credit has been disturbed
and the slow undermining of the foundation mas
gradually weakened and finally destroyed many or
/ our noble institutions of trade and commerce w e
have been passing through an era OF extraVaeahce
tnat has been more pronounced than perhaps at any
| period OF our history. The credit structure has
! been reared upon faith and superstition rather
than upon tangible property and nnancai strength
The following resolution was submitted oy the
Minnesota Delegation. read and unanimously
| adopted by tie convention:
To the Senate and House OF Representatives OF tho
United States: -. ,..
Men most respectfully but earnestly call the az
tnntion OF your honorah bic body 10 the unsatis-
factory condition OF the currency and banking
laws Of the United States ana in consequence OF
the evor-presert danger OF financial DISTURBANCE
ard distress all the business interests OF inc
Nation The last election unmistakably expressed
the anxious desire of the people OF the Inlted
states for rectihcation OF the cCrrenc! anu
banking laws and to that end we beneve tnGe
such reform must he In well-digested and deiio-
| by authorizing the President 10 appoint a COM
mission as proposed by the Indianapolis Monetary
! Convention. Therefore have the honor 10 re-
| quest that you favor the granting Of such au-
thority to the President during the present extra
session.