The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1924-03-28


books throughout the year, between
two and five thousand dollars. But
the shoe pinches in that good
share of this credit is not mobile but
is stagnant to too great an extent
1t is not paid up completely and then
renewed, but, unfortunately. is con-
tinually added to, while the monthly
payments in many cases do not equal
the additions made TO these accounts
each month. A man will run bill
for a hundred dollars, next payday
he will pay fifteen or twenty dollars
and during the course of the month
will beg on account as much more.
so that throughout the year, his mer-
chant has outstanding an account be-
tween eighty and hundred dollars
for which he receives no interest and
which in many cases, II costs him
additional money to collect. for 1t Is
true that the older the bill becomes.
the more reluctantly it is paid
The third big difficulty with local
credit lies in the fact that there is
no credit organization here to inform
local enterprenners as to the present
| fir ancial standings of their custom
ers. There are-no means of know
| ing when a certain customer is liv-
| ing on the retailers for the time be-
| ing with the intention of beating It..
Ia be clear and concise, there is no
| organization. supported by local busi-
nessmen to inform them that Mr.. X.
| has not only neglected to pay mis-
bills here but has run large bills at
three or four other stores, that ne
has been unusually extravagant in
| his buying, which may indicate that
he has no intention of paying for
| this merchandise. An association CIV
| ing this information warns mer-
| chants to tighten up on their credit
to this party. Consequently. through
| such an organization there would re-
suit less losses from bad debts. In
vestigation will show that an I'M
| usually and unreasonable portion of
the years profits are eaten up by the
local non-systemized credit and that
contributes not a little to the fact
| that the business situation in Ely
| is at best only fair when it should
| be excellent and thriving.
| The Question Of Outside Competition.
| Now, the greatest slump by far is
due to the outside competition along
nearly all lines. Ely is known to
mail order establishments, house to
| house order takers, takers included.
to be the best town in the state for
their business. The reasonable con-
sumner claims outside prices are low
err, the local merchant attributes 1t
to lower quality merchandise at
lower prices and TO an abnormal
number of so called fish. Neverthe-
less, the fact remains. thousands of
year, out of the reach of local retail
ers, business which might have re-
manned in town and with what re-
suit? The local retailer must just
| take what is left, small share of
the cash trade. the credit trade. and
let the cash go to those who de-
tract rather than add to the growth
and development Of the community
and it's interests. It's a good deal
| like visiting day over at Johnnie
house, the visiting folks are served
first and Johnnie must be satisfied
with helping himself with what is
left, if there is any. But In Ely,
it is visiting day every day in the
year. the hostess is a good hostess.
the guests have prodigious appetites
| as can be seen from the volume of
| mail orders sent in. so that the poor
retailers must content themselves
with dreams Of the good old days
when the trade was anchored In the
old home harbor.
| But we interrupt Mr. Retailer. Per-
| haps the type of service rendered by
the outside business men is better
than that supplied by the local mer-
chants, perhaps prices outside are
| cheaper, perhaps their merchandise
is -. Mr.. Retailer cuts us
short.
'"That's the most peculiar part of
the situation. he goes OH to explain.
A much greater proportion of the
| satisfactory than those purchases
| made in the city. A larger number
Of buyers are disappointed. deceived,
Tipped each year. Yet. when these
same people receive a different cata-
logue. when another stranger comes
| around house to house, they bite
again and give hem their deposits or
| money orders and receive the goods
usually c. o. D., goods which in many
cases cannot be returned IL unsatis-
| factory. Each season. outsiders come
| in and take orders for mems suits.
| many of which are unsatisfactory but
which must be--kept nevertheless.
Next season. the same fish bite
L in
goods they intend never to deliver.
OF course there are many satisfying
shipments received, but not in pro-
| portion to the home purchaser. How
ever, these wants could be supplied
| by the regular retailers and as il is,
| it gets away from them and would
| contribute not a little towards maxi
ing the business situation fine, excel
| lent. instead OF merely fair. well.
l.our friend concluded. These condi-
tions of overlapping stocks. unsys-
tematic credit. and the mail order
malady are here and it looks as
| though they were here to stay.
They say that other localities are
fighting them, successfully but this
city never will. No cooperation, no
| united opposition at all. What are
we going to do about it?'
Suggexted Solutions.
Do about it? Why man, you local
| retailers are asleep! Get up and see
what other retailers in other local
tiles under similar conditions of trade
have DONE Sit up and notice what
they are doing Their success was
due to the effort and afflication of
their own genius with the things
[ they saw going ON about them Ynn