The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1912-12-26
ON PAYING BILLS PROMPTLY

ci1uS OI DuSiucSS Heu Wnen TUG UlS-
cussion turned upon the subject OF
collecting accounts. We heard some
stories, m being omitted, Of
course, about the hardness of some
people meeting their obligations that
surprised us, or would have done so II
we had not had some experience our
self.
Every business man present said
without hesitation that the most ser
ious difficulty in business today is in
collecting accounts from people who
are we'll able to pay. These men stat
ed that people have become accustom-
ed in recent years, more than ever
J before, to running sore accounts.
This is largely attributable to the use
Of the telephone and the delivery sys-
tenn. They also stated that very few
people are in the habit OF coming into
a store once a month and settling up
without Formally of a statement.
This practice Of allowing accounts
to run is one to be seriously criticised.
1t Is no answer to say that a state
ment has not been rendered. Every
one knows what he owes, or should
know, within a few dollars. He can
secure a statement by asking for 1t.
Prosperous people have no excuse for
being tardy in paying their bills.
On the side Of the merchant the
matter Is a very serious one. Bust
ness today Is conducted on very small
margins of profit. Groceries, meat,
and | n fact, household supplies of all
kinds, including clothing, are sold so
close to cost" today that everything
that goes out of a store counts as SO
much cash going out. The merchant
usually buys his goods for cash, or on
a thirty day clause. He must keep his
credit good by paying promptly. He
must do more than this. II he Is to
make a reasonable profit, he must take
advantage of his cash discounts"
That is, he must pay his bills almost
by return mail.
The expense Of conducting even a
small business takes a large share OF
the gross income. The payroll has to
be met. The over head expenses, in
GLIDING fuel, rent, interest, taxes, in
surance run rapidly into money, and
to meet these bills the business man
must have the cash when the bill Is
presented. Many a man has to do
some very lively scrambling to gather
in money which he knows will be
called for by some one of his creditors
ais soon as It Is collected. Big business
today Is conducted on a cash basis
and all business men are operating
on the outside rim of the wheel OF big
business. This makes it necessary
for them to do their business accord
ing to the standards of big business
the most important of which is to
pay their accounts without delay.
If the people would pay cash, or at
beast, pay instantly on receiving their
statements of account, there would
be much rejoicing on the part of bust
ness, for example. The price OF one
subscription Is only a small sum-. In
the aggregate, the sum Is a consider
able one. At the close of the month
We receive OUT statements for our sup.
plies. We have our pay roll to meet
promptly. We have our overhead ex-
pense, light, power, telephone, taxes,
insurance. We might stand Off" a
creditor for a short time, but 1t is con.
trary to good business principles to do
so. 1t would be a great relief IL every
person who receives a statement Of
his account would at once arrange to
forward the amount due US.
The chief trouble Is not with people
who cannot pay, for there are really
very few of these. The difficulty Is
largely with prosperous people who
could as well pay one time as another.
They receive a statement and lay 1t
away and forget about 1t.
When an account is placed in a col
lector's HANDS the lying begins. Then
the creditor will affect surprise. He
didn't know he owed the account! He
had never received a statement, or he
had never had the goods! He does
not know perhaps that the collector
knows the entire history Of the trans
action. He should know, however.
chat no man would hire q lawyer to