The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-09-16
txTRAVl c lNCt NOT
OWING To CREDIT
Present Conditions said To Can for
Wise Spending Rather Than
FarEiEnony,

A'AE+IfBpbN-
Notwithstanding the things that
have been said by men In high places
about the need Of economy on the part
Of the American people as result Of
this country's entrance into the war
there could hardly be a greater handi~
cap on business al this time. accord
ing to W, II. J Taylor, credit manager
for Franklin Smith x Co. and president
of the Retail Credit Mems National as
soctation, than would De imposed by
the general tightening Of retail credit
granting.
Il see no reason for more than the
usual caution In granting credit 10 con-
sumers" said Mr. Taylor yesterday.
but. as opposed 10 this, ! see many
reasons vhy retail credit should he
made as elastic as possible ara by
no means advocating Ia%lty in cFedit
giving, but where il can he given be
lieve X should be extended 81 Nhera}5V
as the circumstances OF the consumer
warrants.
My frst reason for assuming this
position It's that. q spite % The war !
think retail business IS going 10 see ore
OF the very best fail seasons In years
IL not ever There is no denying the
increased prosperity OF The American
public as whole. and there have been
indications IN the last several months
that the additional money obtained
is being spent by those who have f.
One OF the best indications ! can
cite OF the increased prosperity 81 the
country. as il is reflected IN consumers
dealings with retail stores, is the way
payments OF slow accounts are improv-
ing. Collections have never been bet
ter which in itself proves that money
is easy In June. July and August
Payments were In every case larger
than In the corresponding months OF
1918, and each month showed gain
over the preceding one.
Not only have pawn ents shown up
exceedingly well. but purchases also are
increasing. People OF moderate means
are spending more Of their money.
and the weather. class are increas-
ing their expen dltures as well. The
former is shown by the steady increase
in cash sales that have marked recent
months, which might indicate that
more ard more women are looking to
Fifth avenue as their source of supply
My belief in prosperity is further borne
cut by the way the number Of small
limit accounts has decreased aud the
1arger-Ilm4t ores have gained The
ma jority al accounts now call for Ii
tion o. increased sales largest on the
higher limits
From this # can be seer that am
not in Symapthv with what has been
said and printed about the need Of do
ing retail bushes or cash basis on
the ground that the Rad debt waste
amounting 70 millions Of dollars yearly.
would be saved, and. further. that.
were charge accounts eliminated. every
hA : 1 ~.~FT ~ ia Glsz
means. Furthermore, In answer 10
the argun ent that charee accounts
tempt many people TO live bebyena
their means can say two things The
Arwtfts thar where woman is extraw~
zgant with credit she will be eXtrav-
aganf with cash. The second Is that
the general percentage Of bad debt
losses on the total annual business
done is so small as TO indicate that
extrava gance is the exception and not
the rule. II is the business of the
credit man to see that this is the
ease.
IT the retail merchants OF the eorn-
try generally were to do business
only on q cash basis during the war
period few Of them would be able to
stay In business because ~ the great
falling of in the volume of sales that
would occur This would result in
t4Q0Sa8AE "a @itNiE ana Which, SWfli@
thrown out Of work and cause as un-
told amount OF hardship.
Statistics prove that ss per cent Of
all the business in the United States Is
done on credit, notwithstanding the
fact that in retail lines the percentages
are about forty for cash and sixty for
credit An interesting thing came up
IN relation to the latter figures at
the recent convention the Retail
~
Cleveland. ] mentioned them In the
course Of an address | made, and two
other speakers gave the same figures,
though not one OF us had had an OPP
rortunity Of seeing the data Of the
other two. cite this merely to show
that the forty-sixty division is APP
parently general
What is back OF the great amount
~ credit business that IL done In
this country in the course OF a year ?
In thu first place there is the com
hsree wealth of the nation, which
is estimated to amount TO about $3.50
100000 900 and which Includes all
kinds Of equipment. buildings, mer-
chaniiiee, etc. Secondly. not ONLY
has the United States q sixteenth Of
al me land in the world. but II has
nne-fourth OF al the wealth Of the
world In the face of these facts.
would not the abandonment Of selling
on credit appear ridiculous?
To try 70 change quickly the fixed
habits o. the American people, ~
GLIDING both business men ard CON
suners, would not ne good thing 20
do. even were il possible As has been
said. we are not e nation Of wooden
shoes and calico dresses though IL
must be admitted that there has been
quite run on the latter In the last
several months However, this can
De attributed 70 fashion and not 20
poverty IN any. event. the women Of
This country will not 90 around look
Ing dowdy, neither will they dress in
CONES SO resem bling each other that
fhey look like uniforms The Arneri-
can woman Is Intensely individual. and
nowhere does this TRAIT show more
strongly than in her dress
There js one thing that must ne
pressed home on the calamity howlers
aud that is that there is q difference
between economy and parsimony. OPP
unlsttc, as / m concerning the future
OF business IN this country, ] do not
recommend mans spending nonsy
mat he cannot afford in order to keep
business good. That is no more econ
ory than is. IN the long rum the parsf-
r1onlour spirit that urges man 70
wear his shoes until his feet are
practically on the ground. Millions OF
people depend for their living on the