San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-09-14
Certain Percentage Of Bust
ness Risk Essential
to Profits.
SALES ARE DOUBLED
Purchase Of West Coast
Boats Has Not Affected
Ship Demand
Nv ]. C. ROYLE.


ences OF opinion exist as to the proper
credit policy to be followed to insure
Me largest production and most prof
itable distribution for American prod
ucts.
Some of the efficiency and business
engineers favor a letting down of the
credit bars, while representatives Of
the credit men declare that loose cred
its would bring about a return OF the
1921 initiation.
A certain percentage Of business risk
is essential to profits and good bust
ness, according to William r. Bassett,
Industrial engineer, and former men,
Der Of Secretary Hoover's committee
for the elimination of waste in indus
try.
A eight" credit man, he said, often
was the most serious discouragement
10 sales and an intelligent high bad
debt loss may be broadcast upon the
waters, which will return MANIFOLD in
profits.
II have studied the sales problems
pf many concerns" he added, land
have found that in more than a few
.ases, over double the volume of orders
tould have been taken if ordinary cred
It risks had been flowed to pass the
credit man who can be more damaging
than any other censor.
Many Orders Refused.
81 found. in one -ase. { nearly
half the orders were turned down be.
cause the credit manager would play
pnly sure things.
"A careful study showed that il his
sales were allowed to be doubled they
would have raised the bad debt losses
bnly 8 per cent.
'aThis 3 per cent on his margin Of
profit could have been easily absorbed
With no serious effect.
ut was finally agreed that years
rial should be given to more liberal
policy.
1.-The profits Of the concern now are
k300, 900 as against $4,000 formerly.
1.-THE sales now are $2,000,0 600 where
hey were only 100000 last year."
Vigorous opposition to this stand
vas voiced by J. H. Tregoe, secre-
ary-treasurer Of the National Asso-
4ation of Credit Men. who declares
hat the fact that the credit losses Of
1929 would amount to about one
IL
icient evidence that no widening of the
tredit lanes was advisable.
There is difference between
tightness' and prudence" he said.
I'VE have the most wonderful pow
RS in the world for credit expansion,
but there is always a danger of credit
nflation.
"At this time credit is cheap. This
hows that credit policies are work
ng not to the disadvantage but to the
advantage of business.
"Any policy involving letting down
he credit bars would not tend to in
rease business for we cannot sell more
han we produce.
"On the contrary it would tend 20
nflation and ultimate depression.
with the largest possible credit
power in our possession, 1t is more
han ever necessary to let it out only
S needed.
"Otherwise we shall have recur-
ence of the conditions of 1921. Skill
more than ever necessity in ADJUST
me creL.> for credit is the atmosphere
{ business.
ut must be kept pure if business is
D remain healthy.
II favor generous credits, but am
trongly opposed to loose credits"
Ship Buying Continues.
The purchase of seven combination
reight and passenger vessels by the
bollar Line Of San Francisco as the
ucleus for ''round-the-world" service
as not affected the immediate demand
Dr. vessels, especially those on the Pa
life Coast.
The Dollar interests and shipping
hen in Seattle are still negotiating for
he ten 535-foot freighters now being
nsrated on the Pacific, but it is I'M
kely that negotiations will be con-
|luded before a reports made by ship
ing board officials now - ed in
|urvey of the situation on the West
past.
Canada with a record wheat crop
low being harvested, is entering upon
Energetic colonization propaganda in
he hope of attracting farmers from
he United States.
The lifting of restrictions on Cana
ian immigration has been accom-
anied by promises of financial assist
nee to agriculturists.
DELEGATIONS from many Southern
tates are touring the Middle-West and
Western states in the hope of attract
ng dissatisfied grain farmers to the
outh where the exodus of negroes has
vt tremendous acreage untitled.
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