New-York tribune., 1922-11-26
Three Kinds Used


Statistics now being used in bust
ness are mainly of two kinds. There
are first the figures that are supposed
to be barometers of general business
activity. Included in these are the
steel orders, car loadings, bank clear
ings, building permits, etc. The sec
ond variety Of statistics are those ap-
plying to individual businesses, and
cover in the main such items as pro
duction, sales and stocks on hand
These two sets of statistics now are
widely used. by individual business
men in planning their future opera
tions. third class Of statistics IS
becoming increasingly popular. This
class has to do wish the expenses of
doing business, average profits, stock
turnover, etc. Their chief value lies
/ in their serving as a measuring stick
with which the individual may dis
cover how cloacly his own business
measures up to that Of his competi-
tors. ~ '''''''''
Included in this last classification
are statistics and great amount Of
data that has been gathered on cost
/ acc counting. Particularly in the in
dustries where small units prevail
cost accounting statistical work has
been pursued strongly in the last year
CIR two. It has been undertaken chiefly
by trade associations. the general idcR
back of the movement being, that ii
! will tend to eliminate ignorant and
! uneconemic competition" Statistics
reveal that in many cases the small
producer or merchant is operating At
a loss through his inability to ac-
curately determine costs. In so doing
he forces down the price of a certain
commodity so that his competitors also
lose money if they meet the competi-
tion
The application of general statistics
TO business is a rapidly growing field.
! 1t Is not unusual, Tor instance, for cotton
goods men to keep accurate records of
car Ioadings, bank clearings, etc.
which are not directly related 10 their
own business, but which are supposed
to give key to The general trend OF
business rs whole. 1t is being real
lied more than ever that business has
/ become so intertwined that develop,
nents in one trade react on other
trades. Crop statistics. prices and fig
ares or employment in various sec
tioagl age largely used by sales man
Agels in Blaming their campaigns. Re
hection Of this Is found in the fact
tkat the decreased purchasing power
VI tHS idi iHSIS III IHe NOTCnW8St. as
! revealed in statistics from various
sources, has influenced sales managers
to avoid those sections in their ad-
vertising and sales campaigns and to
concentrate their efforts on districts
where conditions, according to stats
ties appear more promising.
Ihe government is taking sn inereas-
ing part in the development of trade
statistics and has taken over much OF
the reporting work formerly done by
trade associations, and is planning t.
take over mora of it in the near future
1t is believed that under governmental 4
supervision the statistics. will gain
widen distribution than at present. but
some, objection is made 20 the general
piaf by business men, because the gov
eTnment figures, as rule, arc issued
late and thus lose some of their value.
Had We had adequate figures on thu
production and stocks Of shoes in
1919 said prominent shoe man at a
statistical meeting in New York re
Gently. "much of the blow the trade re
ceived in the depression would have
been mitigated. 1t would have been ap-
parent by a study Of the figures that
there was an overproduction and prices
never would have reached the high
point they did. With this in mind ]
cannot see the reason for the indifper
ent attitude toward the collection OF
statistics III our trade evidenced when
an attempt is made to gather them"