New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1925-11-04

business. Whether II doee or not hnf
been a subject o. debate and discus
sion ever since, and bankers them
selves seem 10 bo divided upon the
subject
Facts, however, cannot he over.
looked. In this discussion as IN any
other Without the installment plan
OF sslc, how would II have been pos
sihle 10 market tho enorm Gus auto.
mobile output" Nearly two billion
dollars Is invested in tho manufac-
tnre OF motor vehicles, and nearly
3,oo6,0bO persons are directly en-
ployed in the industry and there
arc astonishing numbers who arc
indirectly employed In It, The in
dus'ry could never have attained its
present magnitude had 4 not been
for the marketing OF It's product on
the partial payment plan. The best
estimate has it that from SIS to q.
per cent OF all automobiles are
marketed on this plan.
There are other important indus
tries which could never have been
developed to their present extent In
any other way. The washing ma
chine is an example. The annual
production Of such machines today
totals around $4,000, 900; I'VE years
ago the annual total production was
only s5,o00,00o. This six-told In
crease dated from the time when
the partial payment plan was made
well-nigh universal.
Without the installment plan OF
sale. It would be impossible 10
market pianos, typewritere, phono-
graphs. radio sets, cash registers,
soda fountains, adding machines,
farm implements and o. host OF other
appliances In common use. In any
thing lake the present volume.
Which Is better. TO have a rela-
lively low production, with relative
" fcw people employed, and mar
ket such products on a cash basis;
or 10 have big production, employ
large numbers Of people and mar
ket tho product on the easy pay
ment plan"
OF course, It is generally conced-
ed that the instalment plan is all
evil II 1t obligates a man to spend
more money In paying installments
on what he has purchased than the
total OF his income, or anywhere
near the total. This is a matter OF
personal restraint. The man who
obligatcs himself more than his
earning power reasonably would al
low simply is acting foolish. He is
no different from the man who
spends all he earns and pays cash.
Both arc spendthrifts.
Wisely adminisi cred the install
ment plan OF purchase means busy
basic lines Of industry, more car
loadings-which have been break
ing records--quantity production in
many lines, stimulation OF the IN
diyiduals earning powers, Increased
happiness for consumer and pro-
duccr, greater efficiency for the
farmer. higher standard OF living
greater bank earnings, and prosperi-
ty generally. That, at least, is what
those who favor the plan say.
On the other hand, it Is often
said that the buying Of automobiles
on the installment plan sometimes
strains the purchaser so that he and
his family are forced to refrain
from buying other things. This un-
doubtcdly has been true TO a certain
extent, the only issue being whether
it has been on a scale sufficient tc
be real factor against genera
prosperity IN some other lines. Blu
a read justmcnt Of the country's flow
Of money. causing some lines TO sut
fer and others 10 feel the stimula
ton OF increased prosperity, doe
not lcsscn the total OF production al
whole nor diminish the flow o
money.
1nstallmont buying on a larg
scale is All evil or a blessing largel,
depending upon whether ones sho
IL pinch"d thereby or whether tn
shoe is made more comfortable,
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