The Fargo forum and daily republican., 1907-04-12
N. D. MERCHANTS
ARE PROSPEROUS
GENERAL FINANCIAL coNpI-
TloNs THROUGHOUT STATE AT
PRESENT TIME ARE VERY FA-
voRAHLE = LOSSES TO JOB
BERs EXCEEDINGLY LIGHT.


Financial and credit conditions in
North Dakota are unusually good, and
there Is. every evidence that the state
'is most prosperous. according to a
prominent credit man OF the twin
cities who recently visited Fargo. In
spite Of the crop losses which have
been experienced in the Red River
valley in recent years. very few OF
the local merchants have fallen be-
hind in their payments. and there is
no locality where the big iobbers and
wholesalers of the country are more
ready to extend credit.
The losses to jobbers In North
Dakota have been kept at a mini-
num-" said. the, credit man, in dis
cussing the matter and this fact is
remarkable, for the conditions have
been rather favorable to heavy losses.
With new towns building up all over
the state and new firms starting up
everywhere. many OF them with in
sufficient, capital 1T is surprising that
there have not been more failures to
meet bills This. Is especially true be-
cause many farmers who had pre-
viously had no business experience
and mo business training have during
the past few years sold their farms,
moved into town and gone into busi-
ness In fact, these former farmers
make up, a large percentage of the
present business men of the state.
The fact that these Inexperienced
merchants have been so generally
successful is only to be accounted for
by the growth and general prosperity
of the state
But the credit man, who, on account
of his wide acquaintance throughout
the state and his business connec-
.tions, asked that his name be not
used did not fail to sound a note of
warning. He said that people in
North Dakota as elsewhere are be-
coming altogether too prosperous, and
that 1t was a good time to put on the
brakes and retrench.
There are many merchants in the
state who are living right up to their
income. while a few are living beyond
lit. The business of the merchants
has increased and their incomes have
grown within the last few years, but
they have. allowed their personal ex-
spense habits and their business ex-
.penses to increase in greater proper
ttion until in some cases. they have run
ahead of their incomes.
When IA man has small business
in a town Of say 500 inhabitants, he
can. afford to take out $40 or $50 a
month to live on, and make money,
but when it comes to taking out from
$I00 to $l50 a month to live on he is
treading on dangerous ground, for he
should remember that the present
great prosperity may not always
last
%The same thing applies not only in
North Dakota but all oyer the north
west. i have recently been invests
eating a number Of firms for jobbing
houses and found that in several in
stances the members of these firms
were living nsmuch better style than
they could really afford, considering
the amount of business they are do
ing.
People now travel three times
as much as they did few
years ago. Many not satisfied
with the educational advantages
at home, are sending their
Echildren away from home. They thus
incur considerable extra expense, but
instead of cutting down their ex-
penses at home to balance this extra
expense they continue to spend money
[atsthe same old rate.
These are only few instances. !
might mention a number Of others to
show the extravagant tendencies OF
the tines