The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-04-08
BENEFIT must Be
SHOWN TO BUYER
This Has Not Been Brought Out
i'm Campaign for Use of the Trade
Acceptance.

| Discussion of the benefits to ba
derived from the substitution of trade
acceptanees for the ordinary system
of open accounts has been confined.
strangely enough. to the advantages
which would accrue to the seller II
the change were made. The fact
seems to have been lost sight OF that
unless the buyer is willing to adopt
the new plan of payment there Is
small chance of a change in the pres
ent method. In other words, unless
! the buyer can see some advantage
| to himself in thestrade acceptance all
! the advantages in the world that the
{ seller may gain will not win him
! from the open to the closed account
( system.
Beside the lack Of advantage to the
buyer. the trade acceptance cannot
very well be applied to certain trades
where payment now is made in Il
very short space Of time. The man
ager of an association of ready-to-
wear manufacturers In the women
apparel trade pointed out yesterday
that. with bills paid as a rule In
thirty days. there would be little use
I for the trade acceptance Only
few houses in this line give sixty
days for the settlement Of an account.
There are pun1her of details
connected with this business" he said.
that initiate against the adoption of
the system Of closed accounts. No
doubt the manufacturers would he
very pleased to see n change made.
but the retailers would in my opinion.
be opposed to the plan from the start.
II Is hard enough now to get some re-
tailers TO stand by the orders they
have rriVpn Mt ON e Nay
else the privilege they think belongs
to them OF returning merchandise
they cannot use. Under the circum-
stances promise 10 pay on a certain
fixed date would be the last thing
these buyers would want"
The executive Of large retail
clothing store frankly stated that. in
order to get merchant to change
from the open to the closed account.
II would he necessary for the seller
to offer him some inducement in the
form of d discount
In business today" he said. there
is very little sentiment. Everything
gets down in the final analysis to IA
question Of dollars and cents. The
wholesaler can keep on talking for
ever OF the prestige ii retailer Will
gain through paying his bills with
notes. He can also describe the in
fiuence which the trade acceptance
may exert in preventing the retailer
from over-ext ending himself or from
purchasing beyond his ability to meet
his obligations promptly. But all this
vague talk of imaginary benefits Will
non count for Il minute alongside OF
some tangible gain in dollars and
cents.
As far as the argument of tho
VII ~ los 1ayS In
trade acceptance should prove II
means 10 the small merchant of at
tanning high standing as a credit risk.
there is much to he said against
this statement as for II. How easy
ii would be for the dishonest mer-
chant 10 establish a reputation as an
excellent credit risk by paying sight
drafts for 4 time. The retailer who
has always been considered in good
standing would gain nothing by
changing his method of payment. The
Wholesalers will always he willing to
! extend him credit and yield him every
! privilege due to good customer.
III those who are urging the
adoption of trade acceptances believe
that all merchants who adopt them
will Immediately have the best bust
ness Judgment conferred rrpon-tffeft4,
then there might be something in the
suggestion that the new system will
help out retailers in their business.
But ii is quite certain that the re-
taller of poor merchandising ability
Will not become high grade mer-
chant just because he has to meet hts
bills at a certain stated time. The
market Spectator will remain q
gambler and the retailer who over
buys will continue to make such mis-
takes.
so. all things considered. be-
lieve that II trade acceptances are 10
become popular with retailers n dis
count must be offered. At the pres
ent time a number of buyers take of
discounts for cash when the bill has
run past the time when such a dis
count is allowed. Attempts made TO
correct this abuse have met with
only a fair amount of success When
ever the buyer takes an unwarranted
discount the seller is so much In tho
hole. Even the wholesalers that are
strict in holding buyers TO their
terms | imagine. lose something in
this way.
There is no doubt that the trade
acceptance, if generally adopted,
would settle this trouble once and for
all The wholesaler. then. could af-
ford To give certain indueement TO
his customers who met their bills
promptly. The discount for the trade
acceptance would in this way be
made almost self-paying."