The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1916-12-16
OHIO BANKER ON
INVENTORY BASIS
EDWIN BAXTER, CASHIER OF The
CLEVELAND RESERVE BANK,
SPEAKS.
Tells Credit Men and Merchants Sys-
tenn to Be Used-local Men
Also Discuss Subject.

1.-THE Basis on What Manner lnren-
tory Should Be Taken" was the SUD
iect of q brief, technical but interest
ing and instructive talk given last
night in the Hotel Windsor by EDWIN
Baxter, cashier of the federal reserve
bank of Cleveland, Ohio, before more
than 50 members Of the Association
of Credit Mems branch OF the Wheel'
ing Commercial association and sew
eral invited guests. Mr.. Bakers talk
was OF especial interest to manutac-
turers and jobbers in view OF the TACT
that 4 move, which is gaining momen-
tum in business circles, 10 take lnVen-
tory on the invoice price rather than
on the market value, which Is belng
encouraged by the large business deal
crs throughout the country. The I'M;
certainty of the present day market is
given as the cause OF the cnanse
which is rapidly coming into vogue.
The speaker declared that inventory
should be taken Mt the cost value, in
asmuch as in many Of the smaller
businesses the merchandise on hand
is the only asset that the dealer has.
Mr., Baxter went into detail relative
10 what constituted credit among the
merchants. especially the smaller
dealers. He said that America was
the only country in the, world that
the banker and the merchant cooper
ated so literally; that in all other
countries the merchant has TO ME
with the banker a record OF the value
of his merchandise, but the banks IN
America take a mans reputation into
consideration first above all other
things.
Mr.. Baxter told Of the reasons of
panics, saying that they were brought
about principally by the uncertainty
of credit. He disapproved of the cash
discount system in the board manner
it Is extended to the big dealers and
not 10 the smaller business man, who
is unable at many times to take ad'
vantage of the discount and when he
is, it is not usually granted as liber-
ally as to big dealers. He paid trtb-
ute TO the bankers. who work cooper
atively with the business man, and
told how the banks have adopted the
safe method in this country in pro
tecting their interest In extending
! credit. He declared that the mer-
chant was both a buyer and seller
and he has 10 be proficient in both
lines to be successful. He attacked
the banking system promulgated by
Andrew Jackson. saying that it had
long been proved to be wrong, but
that the credit system of banks was
different in those days.
! Mr.. Baxter was followed by Stanley
! Floyd. who told Of the complication in
inventory taking at present when mar
ket prices were in the balance. lie
said that according to the federal in.
surance commission that stock lnven-
tory should be taken at cost.
| j. r. Brennan said that inventories
could have been taken week ago bet
ter than at present, because of the
peace rumor afloat. My policy has
been enumerated no goods more than
. they cost, regardless of the high prices
paid at present" he declared. He
! said that the reason Of the high cost
, of merchandise was not the lack Of
material but the want of workmen in
! foreign countries. and that the reason
such high prices are asked is that thc
! American dealers are willing to pay
such for prompt delivery. The ques,,
: ton of fire insurance on goods at old
/ prices and new was discussed b.
! proSont