The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-06-21
The Ultimate Basis of Credit.

On the last day of the Credit Mems
annual convention, recently held in
New York, E. D. Page read paper
on the subject of credit and character
which proved to be feature of the
meeting.
Mr.. Page took up the old arguments
that have been good ever since man
first began to trade with man, but put
them into new form and made them
fit in with present-day conditions SO
cleverly as to impress his hearers
forcibly. The gist Of it all was that,
whatever may be the methods en-
ployed in modern business, however
improved the credit systems In use,
however strict the rules applied and
the skill of the men who have made
the work of passing upon credits a
| profession in itself, the fact will al
ways remain that ability to judge the
| true inward character of an applicant
| is the keynote of it all, for honesty
and relia bility are as much funda-
mentals, today as they have always
| been. -.. ..a.
What makes this thought timely
and gives 1T local application is the
| suit to be tried later on in North Da-
kota in which a local grain firm is IN
terested and which may bring out
some fine legal points as to the l1abll-
ity of insurance companies In cases OF
doubt on their part as to the business
of a peculiar claim. The business OF
lending money on grain in store IN the
country is of large proportions. Inc
Minneapolis grain firms loan large
sums, the aggregate outstanding In
the northwest running to millions in
the height of the season. Very otten
the. country applicant has only linn
tied credit, but SO long as grain plies
! up in his elevator he can promptly
borrow upon it, for next to actua
money itself wheat is about the
: quickest asset a man can hold. ~
Having taken in wheat, therefore
= he has only to offer it as security fol
: a loan to find the money forthcoming
: but obviously the. lender must demand
= that the grain be insured. and tn
= policies assigned to him as a measure
of protection. .e5st.
). Occasionally a house, goes up il
T smoke. Then. appears the innocen
g holder of the policies, who, havin
loaned upon them in good faith, nov
: asks the insurance companies to pa
s him. The question is whether he ha
o any rights that the insurance com
: panies are bound to respect over an
above those accorded any ordinary in
Il surer, and whether the companies l
i the event of not being already salts
~ fed with the proofs of loss submitte
may not hold up settlement and fore
the holder Of the assigned policies
bring suit for his money, as was dor
is in some late instances.
=, It may be that the grain trade n;
= been a little less strict in this respe
, than in ordinary rules Of trade. Eia
= ing loaned upon certain number
~, bushels of grain the lender mas a s
20 curity not only capable OF bell
do turned into cash on very short motto
he but a security whose value may
he determined to nicely any day or
"a any time Of day. Hence he knows
IT, solutely that he is secure in collater;
on and when additional to this he holds
policy assigned to him covering t
grain in store, his risk would appe
40 to be reduced to a point so low as
" make it practically nonresident
in' Yet even this is not perfect ris
'oo Under it all lies the honesty and
m tegrity of the original insurer, I
lao nothing can ever replace character
son an asset. 1t is a young mans CAPT
and an old mans chief reliance. He
esty underlies the whole business s!
tenn, and character is thing II
he should enter into consideration
ing every business transaction Of VIII
,er ever nature.