Evening star., 1926-12-13
OVEREXPANS|ON
OF CREDIT DOUBTED
Buyers Keeping Weather Eye
on Amount They Can
Afford to Spend.
BY j. G. R0YI.E.
Sreclal nl.naich ~ 1nn star.

Srcmal Dispatch to The star.
NEW YORK. Decembcl. I3-Therc
las been no over extension ut credit
despite the tremendous volume "f rr-
tail trade now going on, according 10
report OF the National Association Of
credit Men. hundreds of thousands
of new accounts have been opened by
retail store customers in the last six
weeks, but credit authorities do not
feel that tho merchants are taking un-
Warranted risks.
The early holiday trade undoubtedly
was stimulated hy the expansion Of
the policy of allowing purchases made
in December to he put ON January
statements. This trend was further
emphasized by the action Of some
merchants III permitting December
purchases to be billed III February
The survey of the Credit Mems AS.
sociatiQn states that production and
distribution are progressing at a
healthy pace and there il no marked
unemployment, While the steady pur-
chasing power of the public is an en-
couraging sign for the near future.
The volume of new accounts is not
regarded by merchants themselves as
at all menacing. They say il simply
means that more people have reached
q stage of financial stability where
credit may be extended to them in III
creasing quantities without danger.
InstaIlment B..ying Effect.
The instaliment buying so evident
this year undoubtedly has had its eff
feet on the general trend toward buy
ing on credit. The amount of install
lnent payments which have fallen
into arrears is remarkably small.
Merchandising experts say the Amer
lean people are essentially honest.
Moreover. buyers seldom default on
purchase on an article they really
want.
Distributors and advertising ex-
pertS of retail stores make a sharp
distinction between an article a buy
er needs and one he heally wants.
The fact that a customer may need
a new pair of shoes does not insure
that they will be bought. but If a
customer wants fine pair of shoes,
1t is pretty sure they will be bought.
Department store advertising men
are urging that stores take the front
pages of the newspapers as models
for the news value in their own copy.
I'VE tell the same story SO often"
said William j. Brown, advertising
director OF James McCreery & Co.,
today. I'VE tell our customers again
instead of telling what they want to
know. Let us learn a trick from
the newspapers and make our copy
real news"
Carr. Many Accounts.
The new credit accounts opened do
not entirely reflect the actual num-
ber of new credit customers. Wom-
en- who formerly had charge accounts
in one or two stores at most now
carry accounts in a half dozen or
more. This has come about partly
because of the eager solicitation of
merchants and partly from the ia
cilities With which adjustments re-
garding goods are made with credit
customers.
One fashion and shopping expert
said today that women with a num-
Der of charge accounts do not buy
any more freely than before but that
they felt there was a tendency on
the part of store managements to
accommodate credit customers in the
matter of delivery and exchange to
a greater extent than cash Gus
toners, whose trade may be tran
sient.
The fact, reported from a dozen
centers throughout the country, that
individual sales of holiday goods
were larger this year than ever be-
fore is taken to mean not a return
of extravaganza but a general ad
vance in prosperity. Merchants as
widely separated as Boston and At
lanta reported today that sensible
gifts are the rule and have displaced
the novelties and luxuries of other
years Goods of expensive quality,
however. are in greater demand than
ever before.