New-York tribune., 1915-07-11
Federal Trade Commits
sion Plans Corps of EX-
pert Accountants.
WILL SHOW WAY
TO BETTER CREDITS
Standard Balance and Cost
Sheets Made Basis of
Expansion.
IFrom The Tribune Bureau

Washington, July 10.--A corps Of &C
countants. bookkeepers and experts In
the cost Of production will shortly be
placed at the disposal Of the smaller
business men Of the country by the
Federal Trade Commission. Announce
ment to this effect was made to-day by
Edward y. Hurley. vice-chairman Of the
commission. who declared that the in
stallation Of up-to-date bookkeeping
methods on the part of the small bust
ness man would result in increased
credits and naturally an expansion of
business.
"The small manufacturer. the coun-
try storekeeper and the retail mer-
chant as a rule" SAYS Nice-Chairman
Hurley. do not get at 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 practice. These men are just
as good business men. in many re-
spects. 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 statement showing their true
assets and liabilities.
Better Credits Possible.
Frequently a business man with a
credit Of few hundred dollars at his
bank based wholly on personal ground
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 10 obtain it. his busi-
ress is limited and confined.
ability TO borrow at the bank has
farreaching effect on all credit, be-
cause to the bank, primarily, are di-
rected inquiries for a rating Of man
ufacturer or merchant seeking credit for
goods An unfavorable or nOn-com-
initial report from the bank results in
q curtailment Of opportunity. 1t also
checks expansion.
Bankers are in business TO loan money
TO business men, and recognize that
loans made on balance sheets that are
sound are desirable loans. The banker
will welcome any standard form OF
statement that will permit him easily
to ascertain the exact liabilities and
assets of his customer.
"In European countries manufactur-
ers and merchants, aided by their gov
ernments, have developed a high state
of efficiency, which enables them to
sell their goods in the markets of the
world The Federal Trade Commission
desires to do what it can to help
bring the American manufacturers and
merchants on equal terms with these
foreign competitors in order that we
may be able to get and hold our share
of foreign trade.
Plan Standard Forms.
"When there is completed within
the commission the organization for
aiding business, any manufacturer or
merchant, on request, may receive (a)
an approved form for presentation to
his bank when seeking credit; (b) a
form designed to show accurately and
concisely his assets and liabilities,
stock on hand. etc; (c) a form of
double entry bookkeeping adapted to
his class of business, as well as cd
a form and method of arriving at
costs, also adapted TO his line of busi-
ness. All Of these sample forms will
be simple in character, and can be
supplied by the local printer.
an addition TO preparing these
forms, the commission has in mind
dividing the country into zones and
maintaining in each zone experts in
accounting, experts in costs and ex
,perts in manufacturing, upon whom
the manufacturers, merchants anC
business men may call for advice anC
assistance in establishing economies
in their plants and business houses