Evening star., 1923-09-13
BUSINESS CHECKED
/ BY RIGID CREDIT
Experts Differ Widely on
Best MethodS-Some Would
Let Down Bars.
BY j. G. RoYLE.

nj DE- 4. hON LE.
Special Dispatch to The star
NEW FORK, September I3.-Wide
differences of opinion exist today as
TO the proper credit policy to be
pursued to insure the largest produc-
ton and most profitable distribution
Tor American products. Some of the
ethciencyand business engineers favor
letting down of the credit bars,
Whiie. representatives of the credit
men declare that loose credits would
bring about=a return of the 1921 in
flation
a certain percentage of business
risk is. essential to profits and good
business, according to William r.
Bassett, industrial engineer and for
mer member of Secretary .Hoovers s
committee for the elimination Of
waste in industry. A tight" credit
man, he said. often was the most seri-
Gus discouragement to sales, and an
Intelligent high bad-debt loss, may
be bread cast upon the waters, which
will return many fold in profits.
FRVors Some Credit Risks.
81 have studied the sales problems
of many concerns" he added "and
have found that in more than a few
cases, over double the volume of
orders could have been taken if ordi-
nary credit risks had been allowed
TO pass the credit man, who can be
more damaging than anv other censor.
4 found in one case that nearly
half the orders We're turned down
because the credit manager would
play only sure things. A careful
study showed that if his sales were
allowed TO be doubled, they would
have raised the bad debt losses only
per cent. This per cent on his
margin of profit could have been
easily absorbed with. no serious ef-
feet 1t was finally agreed that, a
years trial should be given to more
liberal policy The profits Of the
concern now. are 100000 as against
$l75.0O0 formerly. The sales now are
S2,00O,000 where they were only ST.
100000 last year ~.
Huge Losses Through Credits.
Vigorous opposition to This stand
was voiced by j. II. Tregoe. secre-
tary treasurer of the National AsSo-
citation of Credit Men, who declared
that the fact that the credit losses
of 1929 would amount to about
one billion dollars in this country
was sufficient evidence that no wild
ening of the credit lines was advis-
able
1neFe Is a QluerenCe btl"SeI
'tightneSS' and prudence, he SAID.
We have the most wonderful pow
ers in the world for credit expansion
but there is always a danger OF
credit initiation. At this time credlt
is cheap. This shows that credit
policies are working not to the dis.
advantage but to the advantage OF
business
Imitation TO BE Avoided.
ANY poIicy involving letting down
the credit bars would not tend TO IN,
crease business, for we cannot sell
more than we produce. on the con-
trarE, il would tend to tnhation ana
ultimate depression.
With the largest possible credit
power in our possession, II is more
than ever necessary to let it out only
hs it is needed. Otherwise we shall
have a recurrence of the conditions
Of 1921. Skill is more than ever
Necessary in adjusting credits. for
credit is the atmosphere of business.
1T must be kept pure if business is
TO remain healthy.
Il favor generous credits, but am.
strongly opposed to loose credits"
ship Buying Continues.
The purchase of seven combination
feight and passenger vessels by the
dollar Line of San Francisco as the
nucleus for round the world serv-
yice has not affected the immediate
tdemand for vessels, especially those
The Dollar interests and shipping
men in Seattle are still negotiating
for the ten 535-foot freighters now
being operated on the Pacific, but it
is unlikelW that negotiations will be
concluded before a report Is made by
Shipping Board officials now engaged
in a survey of the situation on the
west coast.
Canada Seeking COIonists.
Canada, with a record wheat crop
now being harvested, is entered upon
energetic colonization propaganda in
the hope of attracting farmers from
the United States. The lifting of re-
strictfons on Canadian immigration
has been accompanied by promises of
financial assistance to agriculturists.
Delegates from many southern
states are touring the middle west and
western states in the hope of attract
ing dissatisfied grain farmers to the
south, where the exodus of negroes
has left a tremendous acreage un-
titled.
Plenty OF Coal Cars.
KANSAS CITY, September 13
t'There is no shortage of coal cars
now. There has not been any this
year and there win not be any, These
statements were made today by J.
j. Campbell, car service agent for
district > of the car service division
Of the American Railway Association.
start New Credit Plan.
MINNEAPOLIS. September 13.
Warrants for the first loan made by
the new Minnesota rural credits bu-
reau. have been issued by the state
auditor to farmers borrowing from
S4.50O TO $4,000 each on short term
notes. II is expected that more than
81 900, 900 will be loaned in the next
four months.
$5,OO0,G0O for Roads.
JEFFERSON CITY, Mo-. September
1S.-An additional issue of $4,000. .000
has been authorized by state authori-
ties to provide more funds for the
campaign of road building and i'm
provement. Money from this issue
will become available about Novem-
ber /.
Farmers Are Doing Well.
PHILADELPHIA, September 49,
Charles S. Caldwell. president of the
Pennsylvania Bankers Association.
declared today that agriculturists
were in very good condition financial
" and otherwise, due in part to the
fact that farms are not devoted ex-
cIusively to one crop.
INSURED FOR $1,000. 600.