Perth Amboy evening news., 1922-08-28

goods readily. IhlS was the Conci-
ton in which American banks found
themselves up to a few months ago
There were thousands or failures
of storekeepers who owed money 10
the banks and there Vas no one on
whom the goods securing the loans
could be unloaded. Ihe nau
to take the goods.
The story Is told OF a fur mer-
chant in Chicago who had borrowed
large sums on a stock of furs. He
had bought before the price fell, in
The expectation of selling in a lew
weeks and paying his bank ioans.
| The depression came, business Tell
away to nothing, his notes came due
| and the bank called him in. lie
asked the president of the bank for
a removal Of his notes. The banker
said this was impossible. The fur
merchant thought the matter over
for a few moments and then said to
the banker:
Have you ever been in the fur
business"
OF course, the banker answered
NO"
We'll, you are now" SAID the
bankrupt merchant.
And the bank was. The mer-
chant could lot pay the loans so
the bank had to take the security,
which vas a stock of furs.
This has been repeated in ali lines
Of business, and banks in every state
have found themselves in actual pos
session of goods because the notes
which the goods secured could not
be paid.
The great New York banks have
even found it necessary to estabilsh
separate departments and at least
one New York banking institution
has what almost amounts to a de-
partment store, so many kinds OF
| goods has it come into possession
Of through defaulted loans. II
maintains a staff of statesmen to sell
shoes, automobiles, hairpins, steam
shovels, chemicals and a wide va
riety of other commodities.
A notably curious example OF l5is
bank merchandising took place IL
New York when the depression was
at its worst. One of the larger man
ufacturers of sweet chocolate wa:
forced by the business situation Into
a position where it could not NEE
promptly a note for some $2,00O.0O(
which was secured by the product o.
! the plant. When the loan was made
the bank merely named the produc
as a matter of form. n result
was that when the manufacturing
company could not pay. this oani
found itself in the possession o
what to any American small 90!
would seem the greatest treasure o
which the human mind could dream
-s2, 600, 900 worth Of savory ant
succulent sweet chocolate. all don,
up in tin foil packages Oh D ana II
cent sizes.
Unloading Candy
In the slang of trade, the pam
was stuck if ever a bank a VIVA
a hank could do with 100000
worth Of sweet chocolate was to
much for the staff of competen
fnanciers at the head of the institu
ton. First they turned to the nsaa
channels of trade. the jobbers an
wholesalers. There was no marker
the stores were not buying choco
late. They were stocked up.
Finally, in despair, some brllllan
executive Of the bank conceived a
idea. He thought of the army OF un
employed concerning which ther
had been much publicity. He re
allied that while 1t woul De har
to sell anyone 100000 worth :
chocolate, he might sell b or lo CEN
worth at q Tune. TIC dhAdhSGN
, employment agencies and throus
want ads for workers. Within
short time, literally thousanas {
people, out of work because OF TN
depression, and age to DO any
thing, were standing on the SIRE
corners of New York offering swe'
chocolate for sale at cut rates ~
bank took on anybody that Won
turn up. The metropolis WI
thronged with statesmen wavin
punches of the toothsome sweet
the passing crowds. One could ~
walk down the street without beir
offered sweet chocolate-as little
as much as might be wanted. 49,,
1t took only a few weeks. II
public was accustomed to buying
occasional bar of chocolate at
newsstand or at a candy store.
such normal times the desire on q
part of the customer created u
sale. Here things were reverse
The chocolate came to the Gu
toner. 1t met him in the subwa
on the elevated. in the theatre 10
bies, on every street corne in she
it was next to impossible to wa
a block without being offered choc
late at a bargain. 1t was ~inevitah
that the psychology Of the stu
XAaa lDsaAAasa II selling ia sHs'