Evening star., 1924-03-24
Time AUTO SALES
BUSINESS ISSUE
Partial Payment Plan Dis.
cuSSed Pro and Con by
Commercial Leaders.
BY j. e.. RONLE.

Special Dispatch to The star.
NEW YORK. March 24.-Thc buy
ing of automobiles on the partial
rayment plan was bitterly attack ed
and equally vigorously defended to-
day. J. Fl. Tregoe, executive man
ager Of the National Associa tion of
Credit Men. declared the enormous
expansion of the automobile bust
ness, largely stimulated by selling
on the installmeut plan. may have an
extremely bad effect upon other in
dustries- President Reeves of the
Automobile Chamber of Commerce
declares, on the other hand. that the
financing of part yment purchases
has it's legitimate place in the in
duStry and that nobody is going to
succeed in telling the American fam
lIy how to spend its money.
Represents S. 900 100000.
at is significant" said Mr.. Tregoe.
that of late in the United States
automobile paper approaches at al
most any time $4,000. 100000 The
automotive industry has been banefi-
cent in producing a vehicle that
would save time in buSines and bring
producers and their markets into
c!"Ser touch. But we must not lose
rests on general evenness of pro-
auction, not in production alone of
e rev commodities. n wage Garner is
able to have his car because of his
femunerative employment and ex-
pected income. To affect empIoyment
by reducing the output of other in
uuStrieS Will undoubtedly react on
the automotiNe industry
Ihe inStallment plan Of buying au-
t"fhoolleS IS neither AN entirely safe
~ Nts.
NC mortgagin@ of Il future income for
immediate satisfaction. Admiration Of
The splendid development of the indus
iiN goes hand in hand with the sincere
Itope II may not throw our other in
oIStrleS on; of GEAR and may not cul-
INatc extravaganza in those not able
10 indulge in them"
Nr. Reeves Denies.
MI Reeves denies that the total nj
""Iolhobltc paper totals two billions
ana states that the best estimates
,,Ii r.ace me Tune payments of the indus
ny az $ooo,O0o.O0O. or one-fifth of the
total wholesale value of the industry.
=. would like to know" he added
What other industry can make as
SOUND showing. The finance company
Muich makes the part-payment plan of
puNinS automobiles possible has ite
proper place in the industry hecausa il
mas the machinery for collection ana
permits dealers and manufacturers TO do
-t'iN'H oit 81 CASH oasis. The records
81 payments made through these com
pdhleS present the best showing made
~ connection with any article sold tha
publlc on credit basis
one such company has in IFS nos
session today collateral notes total
ing s2i,OOO.000, less than a half OF l
per cent of which sum is thirty davs
overdue. The losses in financins-
such automobile purchases as a whole
amount to little and can be called
neSnglble. The average note given
bN buyer in this business runs he
tween $500 and 5000. and the average
note outstanding today is $500 The
reason that these notes are paid so
promptly is that everybody in the
family of the purchaser wants the
car and hates to lose it. We feel no
one is going to tell the American
family what they must do with their
money.
Savings Deposits Increase
During the period in which cars
have been extensively sold on part
payment, savings bank deposits have
increased the country over; there has
been decided advance in the buying
of homes. This indicates the pros
psrIty of the country, and that it has
not been menaced by the sale of au-
tomobiles on part payment The fact
that these sales continue on broad
scale, on the other hand, is a splen-