Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-07-11
Plans to Better Accounting
Systems and to Extend
Credits.
VICE CHAIRMAN HURLEY
POINTS OUT U. S. NEEDS
Services of the Government Experts
Will Be Offered to Merchants
and Manufacturers.

Two methods by which the federal
trade commission may give construct
i've help to American business are EN-
phasized by Vice Chairman Edward y.
Hurley of the commission. in a state
ment given out today.
''One of these" said Mr.. Hurley. in his
statement, us to aid the business men
of the country in obtaining the addi-
tional credits to which their business
operations may entitle them. The sec
ond is to aid in establishing a standard
system of bookkeeping and cost ac-
count. The two are interdependent."
The commission has in mind, Mr.
Hurley announced, dividing the coun-
try into zones and maintaining in each,
experts in accounting, costs and manu-
featuring. upon whom manufacturers,
merchants and business men may call
for advice and assistance in establish
ing economies
The small manufacturer. the coun-
try storekeeper and the retail mer-
chant as rule" he said, do not get
all the banks credit that they ought to
receive, owing to the fact that they are
unable to present balance sheets In
accordance with good business prac-
tice. These men are Just as good bust
ness men, in many respects. as those
OF larger operations. They have brains.
abiiity, knowledge Of their wares and
OF their customers. but they do not
that they are not able to present a
statement showing their true assets
and liabilities.
frequently business man with a
credit OF a few hundred dollars at his
bank. based wholly on personal
grounds. could, if he could produce a
reliable balance sheet, readily obtain
several thousand dollars, which would
enable him to expand his business
aiohs sound lines. Failing to obtain it.
ms business is limited and confined.
BANKERS are in business to loan
money TO business men. and recognize
tnat loans made on balance sheets that
are sound are desirable loans. The
oanher VIII welcome any standard of
statement that will permit him easily
10 ascertain the exact liabilities ana
assets of his customer.
Need Accounting Standard.
1T is recognized that no one standard
form or accounting can be applied tn
an classes OF business, and that special
forms must be devised for each group
or class OF commerce and industry. For
example, the coal industry can use one
standard system of accounting.
among others. the country store and
sneru store retailer. the wholesale
grocer. the boot and shoe Wholesaler
.ne boot and shoe retailer, the drug
mannfs sn ntu manufacturer of textiles. the
sale clothier. the retail clothier. each
must have his own special system
But 1t is true that a great MANY NJ
~ hnes ss forms could be adapted for use
they are originally arranged. as GER
tain fundamental principles underlie
the general structure of accountancy
ana a.,l must be recognized by each group. q.
order e r. TACT nut must 6s admitted that in
roducts you must, II you be a manu-
facturer. first know exactly what n
costs you to manufacture and sell
mem, mem Wnen business was done on a
30 essential. but in most lines OF in
dustry today the large percentage of
proht has passed. We are workinxr on
2 smaller margin and we must abso-
old and out-of-date method of arriving
at cost figures. with our margins Of
profit SO close. must be eliminated.
1t is a fact well understood among
business men that the general de-
moralization in a large number Of in
dustries has been caused by firms who
cut prices. not knowing what their
goods actually cost to manufacture:
~ important, is almost wholly lost
sight Of.
Commissions idea.
How can the federal trade commits
sion help cure these conditions? By
no compulsory methods. The commits
sion has no power and no desire to
use such methods. But the commits
sion does hope to reach the desired
end by putting at the service of the
and merchants who
have not had the experience or advan-
tages that larger firms possess, the
In cost of production that are employed
by the commission, and in that way to
help strengthen American industries
where they are weak. These services
will be rendered only on the request
Of the individual merchant or manu-
facturer who desires them.
I'm European countries manufactur-
ers and merchants, aided by their
state Of efficiency. which enables them
to sell their goods in the markets
If the world. The federal trade COM
desires to do what it can to
ers and merchants on equal terms with
.hese foreign competitors in order
that we may be able to get and hold
our share of foreign trade.
the organization for aiding
business, any manufacturer or mer-
chant, on request. may receive (a) an
approved form for presentation to his
,ank when seeking credit: OBJ a form
designed to show accurately and con-
.isely his assets and liabilities, stock
IN hand, etc. (c) a form OF double
,ntry bookkeeping adapted to his class
# business. as well as (d) a form and
method of arriving at costs, also
ldapted to his line of business. All of
hese sample forms will be simple in
character and can be supplied by the
ocal printer 1t is hoped that the diff
erent banks throughout the country
will carry supplies of these forms for
he benefit of their customers"