South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-02-10
CREDIT MEN HEAR TALKS
ON NEW PROBLEMS
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basis Of liquidation. Customers have
been INDUCED in terms-the prin-
cipal promise for credit i'm many
cases has been the sO-called moral
quality of the risk-the disposition
quality is still highly valuable-but
it will need support-that Of the
ability as we'll as the will to meet
the obligation. During the last few
years credit surveillance relaxed and
credit always cheap in this country
became still cheaper. There is no
room ahead for catch as-catcfR-can
credits. Deeper analysis is essential
~ necessary. The customer who
pleads some general business condi-
lions as the cause of non-payment
Of his bills is well known. Credit
men have analysed a few such cases
and found that this condition touch
ed the customers affairs only re-
motley if at all. and even then the
difficulty could generally have been
overcome If they had not been
brought up in the habit Of following
the line OF least resistance. The
trouble is that these excuses have
not been tested often enough. It is
likely that the industry will be con-
fronted with many of such custom
ers as business adjustment goes on.
and while there will be still liberal
consideration the debtor must prove
his case. The former habit of hold
ing a brief for him will be out OF
date.
Statements are Important.
Financial statements should be
more freely given and taken. Their
analysis should extend much further
than a mere reduction of net worth
or quick assets versus quick liabili-
ties The chara cter of the business,
the ability Of the management, are
going 10 be larger factors than for
merly in determining the duration of
that net worth. What a business has
done in the past is not going to be a
safe guide what il will do in the flu
ture. The ability of management as
has been evidenced in the past will
carry business farther during these
times than the net worth alone. An
other question which credit men will
have to consider will be the financ-
ing of the excess profit tax. This
will be more difficult for those bust
nesses which have made good earn
ings but are confronted with unfav-
IL. IL
ture of the business. There are many
questions which will arise as each
case presents itself, and n good plan
would be TO make note Of each in
dividual case for future reference
and never to rely on memory. Every
one has had accounts disastrous for
himself as well as the debtor where
a knowledge Of the situation in it's
frank discussion would have saved a
good business and a good customer
About Trading Liberty Bonds.
Recently some business houses
have advertised that they would take
Liberty bonds in settlement of sale.
We all realize the economic import
ance of these bonds being held as
widely as possible. Aside from this
consideration is il ethical in view
of the high purpose of these bonds
to reduce them TO the medium OF
barter, common currency? If a Gus
toner must or will give up these
bonds they should be sold through
channels Recent world de-
velopment indicate that civilization
is in the melting pot. and from IL
may be expected political, social and
economical changes for which his
tory furnished no precedent"
2. Einecke. credit manager OF the
MiIler-Parrott Baking Co. Terre
Haute, spoke upon the Responsible
ity of Credit Man TO His House.
His Customers and Himself"
THE credit man of today" said
Mr.. Einecke. cannot in any sense
be a figurehead. but must be a
trained specialist upon whom de-
ponds largely the success of his en-
terprise. Fortunately for the credit
man. there has been in recent years
the fine transition from the old
method whereby it was his principal
duty 10 pull the wool over the eyes
OF his customers TO the more fra
ternal spirit which now exists OF
working for each others mutual
benefit"
The speaker mentioned many quail
ifcations necessary to a credit man
who is capable OF fulfilling his OBJ
legations 10 his house. Among these
he emphasized real affection for his
work. adaptability the ability 10 read
mems chara cters and determine
their chances for success through
their actions and expressions. Keen