Evening star., 1926-04-23


to buy more and more of his goods
ION time" and, Notwithstanding the
misgivings of some economists, the
press generally believes the practice
Is largely responsible for the present
high stan lard of living. An estimate
of the Chamber Of Commerce of the
United States places the proportion OF
installment purchases at II per cent
of the total buying of the consumers,
of $1,000 900, 900 annually.
"a business expert told an audience
that this should be known as the in
stallment age" observes the Los An
geles Times. He says that we are in
a world of partial payments and most
of our commercial contacts are now
on the basis of so much down and
so much a week." continues this pa
per. as it describes installment buying
extending from the days when the
young man buys the engagement
ring and the bride her trousseau on
the basis of SIS month" to the time
when 1.-The grave and the tombstone
that complete the chapter of human
existence" must be provided for and
even these "are paid for in convenient
installments.
Though conceding that the practice
has reached phenomenal proportions,
the Fort Wayne News Sentinel eX-
plains: "Installment buying is not a
new development in this country.
Houses have been paid for on in
stallments for more than a century,
furniture, pianos and books have been
sold on time payments for at least
so wears. Automobiles. in steadily
increasing volume, have been sold on
deferred payments over period or
Is years-and with no adverse reac-
ton to date" This newspaper thinks
the practice a healthy one for busi-
ness, saying further: Credit hereto
fore has been employed almost ex-
clusively in the financing OF produc-
ton. Active consumption" 1t argues,
"is essential to continued production,
and it is argued that the extension
of credit through installment sales
for the financing of consumption is
wholly normal and desirable develop
ment."
In the opinion of the Miami Daily
News, "the installment plan is COM
mendable in that it has brought hap
pinesS into countless homes, not only
through the automobile, the phono-
graph, the radio and the like, but as
we'll through the accumulation of
things useful and valuable, furniture
and iewelry, to mention a few others,
which many g. care-free individual
would never otherwise acquire"
Discussing the fact that some
wears ago "the family in moderate
circumstances was not financially able
| to surround itself with the requisites
| for pleasure and entertainment, con-
yenience and comfort that are a. part
| of general family life today" the Can
ton Daily News continues: "It is not
some marvellous new benevolence on
| the part of capitalists that has made
| this possible. The credit is DUE" it
| contends, ito the installment plan,
often the butt of the vaudevillian's
| Jokes, but none the less popular"
While the Salt Lake Deseret News
| thinks Undoubtedly the installment
plan, or deferred payments as 1t Is
sometimes called, has its advantages.
| especially for people of steady but
moderate incomes" it points out that
"a man ought not to mortgage his
| future beyond a reasonable assurance
| that he will with certainty be able
| to lift the mortgage. The great
danger in loose credit system Is that
men take upon themselves more obli-
| cations than they are able to meet.
| They permit the present to eat up
| the future and the result is trouble
| and unhappiness."
" X X X
According to the view of the Roa-
| noke Times, 1.-THE installment plan,
| nr-onerlv safeelarded and with certain