The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1920-10-19
in the vicinity which had previously
been most liberal In their loans
paeuIiarItv In FInanoInu,

Peculiarly In Financing.
As q matter OF fact, the restriction OF
credit was bound 10 hurt the automo.
bile business more than most otner
nnes because Of the Rsculaisr -. way S,, IN
pay a deposit when he orders his cara
and must pay the rest OF the bill when
he takes each machine from tho freight
cars Yet he has not always sold the
machines for cash and must take nls
payment in installments from the pur-
chaser. When he went 70 tho bank.
therefore, and said the purchasers were
sound financially and that II was sure
payment, the bankers on the other
hand agreed with him as TO the sound:
ness OF the transaction, but polnteo
out that the purchaser OF the car would
soon come along 10 borrow the money
wherewith 10 pay the dealers SO Gor-
rowing money for automobiles was re-
duced to q minimum. and as q conse-
auenca the manufacturers found the
dealers reluctant to buy. Similarly.
used cars have been accommodating In
vacant lots and in some cases have
which also has retarded purchasers OF
new machines.
Meanwhile the automobile concerns
have taken advantage OF their situa-
ton TO reduce their labor Overhead.
They have laid off thousands OF men.
Many Being Laid on.
The figures are not available. but
often men are given two weeks vaca-
ton and when they come back sre tolo
they cannot have the same Jobs. ou.
others that pay less. One concern mao
been employing twenty-one mon 10 per
form a certain operation that was NM
ished daily at I pm. II reduced inc
number OF men TO sixteen and Is get
ting the work done by 1880 pm. Rem.
edies OF this sort are being practced
both In the factories ana on tne c'eTIcaI
side. The automobile companies nave
been In the habit OF hiring practically
snVbody they could get. As result
they have acquired much inefficient or
unskilled help One well-known factory
cut down the number OF It's WORKERS ~
10 per cent. and the production prompt
ly Jumped from ninety to l2o cars per
day. ~ 49,.
1t isn't being generally admitted. but
the manufa cturers OF automobiles are
actually reducing their labor cost either
by eliminating inefflciency or hiring
smaller number Of men. Not much pcs"
simistic talk is heard. The manufac.
turers say they are assured OF mo
money TO finance their winter manu-.
featuring program. In only one ease
and the banks are said to be ready to
prevent that company from going un"
der. 49,.
The solution seems TO be found In re-
ducinR the cost OF labor or getting more
production out OF the same number Of
workers. One concern reported ina,
| 50, 900 men were not turning out az
many cars as 10000 men did before The
war. 1t wasn't entirely due TO laxity
| or idleness, but to the creeping In OF I'M
skilled workers who retard the car max
| ing process. Ono man can slow up nttS
| men. 80
The era ahead OF the automobile busi'
ness is one OF greater economy and o.
fciency. II the cost OF living can b
reduced and prices OF necessity commo
dities continue to drop. the cut In labo
prices will not be felt SO far az he
troit is concerned, its economic read
justment seems to be. relatively speak
Ing, without much pain. II could b.
worse. The working men have an ide'
| that a change OF administration VIII rc
store their former wage status an
bring more Jobs, But persons outsid
OF politics arc not preaching that doc
| trlne.