South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-02-11

be probably employed as a perma-
nent feature OF our future industrial
life.
owing TO the exigencieS OF the
war and necessity for a concentra-
ton OF our credit resources for the
use Of the government. the shorten
ing OF sales terms and the CONVEX
sion OF much credit business into
cash. has been very prevalent as
has a lsO been the adjustment OF
much open account business upon a
more liquid basis by the use OF trade
acceptances. situation which
should continue TO WELD a benef-
cent influence upon our entire COM
mercial future.
We. as credit men, have a duty
TO perform, If we Will preserve in
tact the credit Of our country. Ours
is a nation wealthy beyond measure;
conditions are fundamentally sound
and the future lies bright before US
Upon US develops the duty Of follow
ing a safe and sane policy, of pre-
serving intact the sacred traditions
Of our government as established by
our forefathers. and Of so keeping
our own houses in order that we
may be enabled 20 meet in a credit
able manner any emergency which
may confront Us.
Morgan Makes Talk.
Mr.. Morgan, the other speaker,
said in part:
with decline in commodity
prices which is almost inevitable,
history will no doubt repeat itself
statistics show that business failures
decrease proportionately TO a rising
market and the reverse is true on
declining market-credit must there
fore keep their finger on the pulse of
business and restrict credits when
necessity demands it, Property state
ments must be closely watched be-
cause declining market may quick
" cause assets to shrink below the
safety point, whereas liabilities are
all wool and never shrink.
Overseeing or Overstocking
merchant should be closely guarded
against, especially in these times for
the merchants own good, so that he
will not have TO absorb an abnormal
loss on the decline-because many
merchants did not possess the bust
ness foresight and moral courage 10
assure himself the necessity profit
on the advancing market 10 take
care Of the losses he must Of neces-
sity absorb on the decline.
Should Help Merchants.
NO opportunity should be neg
lected to assist merchants who need
it in efficient bookkeeping and cost
accounting methodist that sale
price may be determined with &C
curacy rather than by guess.
"As 70 keeping the credit facilities
of the nation equal 10 the require
ments of business after the war.
there are two great factors; first, the
prevention of waste, both from fire
and insolvency; secondly, the keep
ing Of our assets in a liquifed condi-
ton.
"Of the fire waste we are all ia
miliar. the insolvency waste assumes
enormous proportions, almost in
comprehensive. Much conservation
in this direction could be accom-
plished by friendly adjustments
through creditors committee, or a
trustee acting for the creditors
Bra dstreet tells us that failure for
the last 80 years disclose only six
per cent due to fraud-these are the
cases for the bankruptcy court. the
other % per cent, If handled as sug-
gested, would conserve for the bust
ness world a vast sum now spent IN
the bankruptcy court, from which
the creditors get no returns.
Favors Trade Acceptance.
I'm keeping our house in order so
far as liquid assets are concerned.
there seems but two answers, shorter
terms and trade acceptances. Per-
haps the most important part is the
trade acceptance, a form Of LIQUID