The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1915-07-11

PLANS To HELP
BUSINESS
VICE PRESIDENT OF FEDERAL
TRADE COMMISSION EMPHASlZ-
Es TWO METHODS FOR CON-
sTRUcTIvE HELP TO BUSINESS.

man Erdward n. Hurley of the fed
eral trade commission, in a statement
today suggesting plans by which the
commission may give constructive
help to American business, emphasiz-
ed two methods which he considered
of particular Importance.
Zone of these said Mr.. Hurley, in
his statement, "is to aid the business
men of the country in obtaining the
additional credits to which their busi-
ness operations may entitle them. The
second is to aid in establishing a stan
dard system of bookkeeping and cost
account. 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 a 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
business men in many respects, as
those of larger operations. They have
brains, ability knowledge of their
wares and of their customers, but they
do not speak the. language of the
banker in that they are not able to
present a statement showing their
true assets and liabilities.
Frequently a business man with
credit of 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
along sound lines. Failing to obtain
it. his business is limited and con-
fined.
Bankers are in business to loan
money to business men, and recog-
nize that loans made on balance
sheets that are sound are desirable
loans. The banker will welcome any
standard of statement that will per
nit him easily to ascertain the exact
liabilities and assets of his customer.
at is recognized that no one stan
dard form of accounting can be ap-
piled to all classes of business, and
that special forms must be devised
for each group or class of commerce
or industry. For example, the coal
industry can use one standard system
of accounting. Among others, the
country store and general store re-
taller. the wholesale grocer, the boot
and shoe wholesaler, the boot and
shoe retailer, the drug store, the ma
nufacturer of textiles, the manufac-
turer of machinery, the wholesale
clothier. the retail clothier, each must
have his own special system. But it is
true that a great many of these forms
could be adapted for use in lines other
than those for which they are original
~ arranged, as certain fundamental
principles underlie the general struc-
ture of accountancy and must be rec
ognized by each group.
THE fact must be admitted that
in order to put selling price on
your products you must, if you be
manufacturer first know exactly what
it costs you to manufacture and sell
them. When business was done on
large percentage of profit this was
not so essential, but in most lines of
industry today the large percentage
of profit has passed. We are working
on a smaller margin and we must abb
solutely know what our goods cost
Any old and out-of-date method OF
arriving at cost figures, with our mar
gins of profit so close, must be elimi-
mated.
at is a fact well understood among
| business men that the general demo
ralization in a large number of indus
tries has been caused by firms who
cut prices, not knowing what their
goods actually cost to manufacture;
and the cost of selling, which is equal
ly important, is almost wholly lost
sight of.
How can the federal trade commits
sion help cure these conditions? By
no compulsory methods. The conn
mission has no power and no desire
to use such methods. But the com
mission does hope to reach the de-
| sired end by putting at the service of