The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1910-03-24
ritter SAYSAVO|D
AUTOS AND CREDIT
President of DeSeret Savings
Bank Gives Financial Max
inns to Merchants.
ADVOCATES CASH BUSINESS
ABUSE OF BORROWING PRIV.
LEGEs PREsENT-DAY EVIL.

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MAxIMs BY w. w. RITTER. !
Conduct business without credit. =
Leave automobiles alone. =
He content with old home.
= Discount all your bills. =
= Let the dividends wait. !
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W. W. Ritter, president of the Des-
eret Savings bank, told the Retail Mer-
chants association last night that bust
ness can be conducted without credit
and in the course of his address enun-
ciated the foregoing maxims. He spoke
at length on the unwise extension OF
credit. which he regarded ar unjust
principle as well as an unwise one.
He said that his hearers would find
that the man who pays his debts and
pays for his goods as he goes along
has to suffer to make up the losses
! they sustained by unwisely c-editine
others who do not pay. Continuing
along this line Mr.. Ritter said:
But you may ask me, is 1t possible
TO do business without extension OF
credit, and / unhesitatingly say, yes
There are many people who do not want
il and do not ask for it. and l know of
whole communities where business is
done or a purely cash basis.
Borrowing is Dangerous.
Another evil. and one that shortens
the lives of business ventures is trying
to do business the volume of which is
dispropOrtiOnate to your capital and
seeking to borrow money to help you
out which should be a part of your
capital There are times when the
borrowing of reasonable amounts is
entirely justifiable, but the borrowing
of part of your capital will bring you
into deadly peril. And when it amounts
to considerable you are simply working
70 "a nfb nj :
tion TO yourself, and paying your own
board.
Another cause of weakness TO your
business, even il you have technically
made a profit, is the paying of toe
large dividends to yourself. if alone. OIL
TO your stock holders, If you are cor
poration. You should strengthen your
self from year to year. instead of de-
plotting yourself by sapping the life
blood of your business by paying the
dividends when you need the money to
fortifv yourself against unforeseen ca
lamities. Accumulate until you have
cash on hand so that You can discount
all bills. Fvudently conducted business
may make a large part of its profits
from discounts on its bills by paying
cash down. | could cite you one sue
cessful business In this state that made
last year s per cent of its capital stock
from discounts alone.
Men are frequently tempted if they
think they are doing prosperous bust
ness to build a fine house They i'm
agine they must put on appearances
comparing with the dignity of prom
inent merchant and the result is they
take active capital and make it wholly
Inactive. and thus very frequently lay
the foundation for a financial wea kness
that may end in collapse. Be content
with your old home where you have
snent so many hanpv years until you
cen build home with money not need
ed in YOUR business. and then you may
be happier still
"Leave Autos Alone"
above all leave automobiles alone
until you nave plenty of means to
spare for such extravaganza. The pos
session of an automobile when you can
not afford 1t will but weaken your
credit, and credit is sometimes capital
and il Is suicidal to weaken that,
Drive the old horse of flesh and
blood until you can well afford to drive
the coal-oil horse. and be we'll assured
of this fact before you indulge in this
expensive luxury.
"One of your hest assets is honesty
be perfectly frank with your custom
ers Do not represent goods s being
goods of which YOU have no knowledge
TELL what you know and do not say
You are selling them below cost when
sensible people will know that you
are lying or else you are doing bust
ness at q loss.
Keen abreast of the times. Don't
fossilize. Keen q clean store and keep
clean yourself. Don't let your store
berome 2 junk shop by holding on to
out f-da te goods. Sell them and re-
place them with up-to-d date ones. BE
industrious. sober. honest. economical
and then after Won have observed all
that have set before Won. and others
wiser than / NAV set before You. Won
OUGHT to succeed and Won viii succeed. -
After Mr.. Ritter had finished. n. F.
Collett Of the Merchan ts and Manufac-
turers' asSociat ton made brief address
I'm which he urged the retail association
to take IN the question Of the encour-
agement Of home industry.
Tt was decided 70 invite the Ner-
chants and Mamma cturers' association
t. n conference April c. when mea sures
will be taken toward the formation of
a home industry league.