The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-10-31

The country Is going into foreign trade. com.
petition at home is keener. percentages Of profit
have come down toward the worlds normal.
Sllpshod. inexact methods 10 longer suffice.
The other great commercial and industrial ma
lions operate on a scientific basis; commerce.
and industry in the United States cannot afford
to do otherwise.
Exact cost keeping and accountancy methods,
Mr.. Hurley argues, are absolutely necessary to
a sound system Of credits. His plan. as outlined
to the commission. in part provides for the es-
adjustment Of standard forms of balance sheets,
or statements. for presentation to banks from
which credit Is desired.
Character. the late J. Tierpont Morgan said.
IL the great element In determining credit but
character in the business world Is only the rec
ord Of past performances. the business mans
form chart. as 1t were. and the essential data
Of such performances should find their place in
the approved form of standard statement to be
presented to the bank.
Here Is an illustration which Mr.. Hurley used
many times In talking with business men on
the long tour last summer OF the commission
through the country
John Smith is q business man In n prosperous
community. He understands his business. he
turns his stock over frequently, he never de-
faults on his bills. his bills receivable are sound
but he needs credit in order to expand his bust
ness and to operate IN a more economical basis.
For instance. he wants to buy stock in Quanti-
ties In order to- purchase ut Il lower figure.
The bank knows very little about his bust.
ness. and he. standing in awe Of the bank. does
not know how to tell his story. In other words.
he does not speak the language Of the banker.
He stands on the bank records as. say, a two
hundred dollar credit. simply because he hap
pens to belong to the same lodge and the same
church as the banker and Is rated as a good
citizen. From time 10 time he has borrowed
that much on his note and always paid. But
the bank would hesitate about lending him more.
Should he try to get a larger line OF credit
from the houses which supply him those houses
would write to the bank and would get a report
indicating that he Is a fair risk" which is not
calculated to awake any enthusiasm In the
breast of the credit man. John Smith does not
get the credit he needs and To which the con.
dition Of his business entities him. His lie.
climate operations are curtailed.
But In reality he may he a safe risk for a
several thousand dollar credit. The bank. not
being curious 10 pry into his affairs. does not
know that. So his credit remains on the basis
Of his church and lodge associations with the
bank president.
one may apply the same thing to the grow
ing factory, which has found its genesis in an
inventors idea. a perfectly good idea. result
Ing In the manufacture Of an article for which
the demand is strong and certain. 1t Is axio-
matte that the little business man. the strug.
CLING inventor of to-day. is the big business
man and captain II industry Of Tomorrow
But the struggle toward Tomorrow Is need.
lessly difficult. To make IL easier Is the thought
OF MIR. Hurley. lie knows. He has been