New-York tribune., 1908-08-23
LONG CREDIT INJURIOUS.
Controller Nets Says abuse OF Gus
tom Has Hurt Business.

..rt,nss IN. the business and financial world are
on a better basis now than for some thlie,
Controller Metz. who is in an excellent poSi'"i
fudge for I'm addition TO his official posi'Ioh ie
tho head of H A. Metz & Co and the Cohsoii-
dated Color and Chemical Company. mahui0'
ers of chemicals and colors. with orahc"e @
over the North American continent aiSo oi -
Ettrick Mills of Worcester, Mass nlaiui
of carpets and yarns a.,
THE reports get from all our branches are ot
tinctly favorable. and show a steady increase W
business" continued Mr.. Metz. and you hioN
we cater TO pretty nearly every line ihcluuii'9
food products.
We make colors for the cotton woollen ana
silk trade. leather paper and paint lines IN rae.
any line that requires chemicals ana coio''
year ago the falling off was heavy, but no" o'u
are coming along In much the old way. The palllc
did some good TO business in general as II "eeueu
ont the shakv concerns and the field is now much
stronger. Then the panic resulted In puilils III
of credits and I hope in future the mahuIac'U-ei
will not run riot and give such pror1lsCuous 0ieuit
and along sucn lines have prevailed the Iasl
few years Prosperity Of such greatness iii"u'
manufacturers prodigal in the conduct OF pusl-
ness many taking unheard-of risks ana eral'iiis
such terms as made them in reality the real flnar-
cial hackers of retailers and even wholesalers anu
iobbers throughout the country.
Long credit Is the curse OF business to-udH' anu
there should be united action on the part of man
ufacturers in competing lines TO reduce IL "here
the custom is four months dating ana louI
months time making eight months ana tAeii VI -
10 be Obliged TO accept three to four months
note n wear is covered That is not right, for we
must meet regular weekly payroll buy materials
and pay in thirty days. and in order to carry GUS
toners we have TO become borrowers NOW, thli y
davs is long enough time any bill. and If mer-
chants only realized it they would prefer sholteF
credit and lower prices 10 long credit and higher
prces-prices that must cover the interest Tor
carving a retailer for six months to a year
short credit would also prove an excellent alo
in averting panics. for in times OF unrest the
manufacturers and merchants would not find them
selves with credit overextended at their banks
l believe that in the new currency law steps shouid
be taken to embody the French custom OF making
bills receivable bankable That would help some,
and not make a hardship in carrying the load our
credit habits build up for US.
1t we'll known that some retailers-yes, and
whoesalers-buy of manufacturers on long time,
sell the goods virtually for cash. and thereby MAKE
the capital Of the manufacturer their capital
The evils o. credit system now conducted
favor the large manufacturer and act against the
small fellow, and yet il is the latter who is likely
to give the longer terms. 1t is great mistake
and | hope each trade establish its credits
on short time and all stick to it. OF course.
any such movement must start with the larger
firms and strict adherence to short credit would
soon result in all in the trade following suit. IL
is only equitable and just that the manufacturer
should sell the finished product upon the same
terms he is compelled to pay for the raw
article; that is, thirty TO sixty days
Time means extra risk. For instance. mer-
chant buying sixty days has just twice as long
which meet disaster one buying on thirty
DAYS and owes twice as much. and so up
the fellow who wants a year to pay his bills in
and sells the stuff for cash Under this system
the retailer has opportunity TO cash that really
belongs the manufacturer jobber. and tiIe
latter must carry him by borrowing from the
bank"
Mr.. Metz says that In his business he has found
that the slump has been worse in Canada than in
the United States. but due parity the tariff
schedule which recently went into effect. However
his branch houses in Montreal and Toronto report
the outlook favorable Similar and encouraging re-
ports from the branch houses of the firm in
Boston. Philadelphia. Providence Chicago At
lanta, Charlotte. San Francisco and other points.
Prosperity is ali right exclaimed Mr.. Metz
But with it let have safe. and equitable
arrangement Of our commercial credit system"