Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1914-04-02
CREDIT MEN At DINNER
Character the Basis of the Sys-
tenn, Says Prof. GrOat.
President smith Thinks That New
Currency Inv VIII Prevent
Repetition of the Crises of
1893 md 1907.

very enthusiastic and interesting
meeting of the Burlington Association
of Credit Men was held Saturday even
ing at dinner at the Ethan Allen
club house. S. II. Henry. PRECEDENT of
the association, presided.
After reading n telegram of regrets
from Charles e Meek. vice-president
of the National Association of Credit
Men, that business prevented his com
ing to burlington as promised, the
secretary, H. s. Howard. announced
that the national convention would
take place this year at Rochester, N.
Y, in June, and that the national Off
GERS are at present in California ar
ranging for the annual convention of
1915, to be held in san Francisco dur
ing the exposition.
Prof. c. G. Groat Of the University |
OF Vermont was the first speaker, |
dwelling on the rapid growth of cred |
it's in the last 80 years and the spe- |
cializing of organizations to foster and |
strengthen credits He ran over the |
history of credit extension, and con- |
cluded in the final analysis that the
basis OF all credit is character. Prof |
Groat said in teaching credit he found
it hard for the student to grasp the
difference between credit and capital.
1t is not capital but really a debt, and
it might be that we may have debt
ors' association" to offset the credi
tors association. but he thought a
larger growth of credit extension
would he found in the future In new
fields of self-interest and community
interest, which must go hand in hand
nf iyi
The careless rich must be made to
fulfil their obligations to the small
tradesmen; and more and more credit
will be given in the. future to help the
deserving and prudent poor in order
that they may purchase more economi-
cally. with better profit to the seller as
well as to themselves.
{. i. Smith, when called upon. gave
some very Interesting "reminiscences. this
June being the fiftieth anniversary Of
| his leaving school and entering the re-
| tail business and the twenty-fifth ami
versary of his entering the presidency
| of the Burlington Savings bank He
| called attention to the bank crises of 1893
and 1907. due to lack of confidence under
the American system of doing business
on Gre with only five per cent OF
! that business in available cash, and in
way of expanding the currency to meet
the demand. The new banking and cur
rency law is to prevent such a crisis that
| upsets all lines OF business. Some con-
sentative bankers fear the law will allow
TOO much credit and thus cause imitation,
and too much credit is az dangerous as
not enough credit, but Mr. Smith thought
that difficulty would be carefully govern
led by the five members of the federal
| reserve board Of experienced men that
President Wilson Is to appoint in a short
time. He also thought that the new
plan would operate to help all business,
as the central control by board OF the
L. s. government will act very largely like
a central banks giving and Withholding
credit. Mr.. Smith pointed out tho diff
Guilty the government Will have in adapt
ing European methods of farm credits
to this country, showing by illustration
that the conservative European farmer
uses his credit to operate small
acreage by his own hand, while the GUS
tom of the American farmer has been
to purchase a large and larger number
of adjoining acres, as much as he could
be trusted for, and thus try to do too
| Il q.
Another great difference between Europe
and the United States is that in the
former large loans and payments are
made in cash, while we use checks almost
entirely.
> The Rev. T.. q. Guthrie agreed with
the former speakers that character was
the basis of credit, but he thought one
thing further was necessary. the ability
to repay the loan made and that circum-
stances and conditions should be so ar
ranged to enable a person to meet his
obligations. He expressed his delight
that the clergy were invited to such
gatherings Of business men and said the
clergyman has to be a many-sided man.
He pointed out the necessity for men ia
meet their financial obligations to the
church. the greatest institution Of man.
Kind with the same exactltude as they
do in their commercial life: and showed
that children should be taught to be
accurate In accounting for the selling OF
entertainment tickets to prevent the
formation of careless habits which later
In life might ruin them in business selec-
tions. Mr.. Guthrie said he did not need
to congratulate such an organization as
the Burlington Association of Credit
i, | Men, which was a branch of the Ma
, ! tional association, because the results of
this splendid organization in its construc.
tive work for a higher type of business
methods in making and meeting financial
obligations speaks for itself but he
. thought firms of manufacturers and
wholesale houses, eligible to member.
ship. should join and contribute their
share to the whole thus enabling this
national association to accomplish it.
work of going forward and not backward
in tho commercial world.
Among others present representing tn,
E banks, manufacturers and jobbcrs OF
1 Burlington We're A. II. Rutter vice
{ president OF the Burlington association
II. V. Hall, f. II. Thornton, II. II. Shu
felt, A. l.. Walker, j. L. Miles, j f
Whalen, s. L. Gale r. r. Kimball, VII
= liam H. Ramsey, w. " Scully, E. 4,
r Smith, II. T. Rutter H. T. Tweed, W. O
h Lane, ~. W. Whtcomb, b. b. Baldwin
4 r. d. Bartlett and L. o. Todd OF Fulton
$ y. Y.