The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1926-10-28
CREDIT SELLING.
IS EXTOLLED
By RICHARD HATTON

=
By RICHARD HATTON
FConsumer credit, or what Is
termed instaIlment selling has been
big factor toward prosperity II
this country. by raising the stand
ard OF living and increasing prod
uctions according to Alfred Reeves
general manager of the National
Autpmobile Chamber of Commerce
speaking at the first forum dinner
OF the year Of the Washington
Chapter of the American Institute
Of Banking. at the City Club last
night.
Freely admitting that there is
foolish instaIlment buying just as
there is foolish cash buying. Mr..
Reeves declared that so per cent
Of the buying In the automobile in
dustry Is economically sound.
About one hundred .embers or
the local A. /. B. organization at
tended the dinner. H. w. Burnside
presided and introduced Mr.. Reeves
after w. W. Spaid, first vice presl'
dent of the District Of Columbia
Bankers Association had extended
greetings to the A. ]. B. Chapter
on behalf of the Bankers Associa'
Iion, which he represented in the
absence of President Howard Mo-
+
OF the Washington Chapter had
welcomed those present.
Loss Is Low
Some OF the high points brought
cut by the speaker OF the evening
were that installment selling en-.
ables quantity production ana
raises the standard Of living. Inas
Of the six billion dollars worth or
goods annually bought on credit
basis, three billion is for automo-
'biles and the loss on automobile
paper Is less than one.fifth OF one
Per cent.
White tremendous sum il in
Rolved In .instaIlment selling, the
speaker pointed out that savings
deposits had increased nearly
s., 900 600 O00 during the rapid
growtha of installment selling IN
the last five years.
"Installment selling of motor
cars Is on a sound basis, SAID
Mr.. Reeves. because the INDUSTRY
g taking into full consideration
that the three c's Of credit, cilar.
Mcter, capacity to pay, and capital
Ct the buyer. It Is alrgely matter
OF careful credits and sound bank.
ing methods.
s.Installment selling" he declared.
s.provides q needed service to the
public, supplies the article at
lower cost and helps to maintain
the high standard OF living that
makes America what 1t Is. Budget.
ing ones income makes spending
more efficient with less waste. It
n1l1st not be carried to extremes.
Il q q form of nlarketingl long
IA use. but has received added at
tention with the entrance Of auto
mobiles, which raised the volume
to high figure. Because OF this
total there has been some uneasi.
neaB among sound thinking people.
bur more PARTICULARLY among repre- |
6entatives of Industries that do not
profft by st and therefore do not
understand IL.
"ontstauding installment paper at
any one time In our industry Is
around 81, 500. 100000: the average
time rs IL months; the average
amount $52S and outstanding note
about &27S. There is nothing alarm
ing about this figure when COM
pared with the $25, 000. 000,0
year being paid out in wages and
81. ,000, 900 q year being accumu
lated In new savings"
". w Spaid. Of the firm Of W.
3. Hibbs e Co.. has returned from
) trip to Chicago where he presided
ht q, group meeting Of the out-of-
town section Of New York Stock
Exchange firms. Mr.. Spaid was,
also, the principle speaker at
dinner after the meeting. He stated
today that the results OF the Chi.
eago consultation were highly salts.
factory and that another meeting
would be held in Pittsburgh next
month and one, In Philadelphia in
December.
President John 3. Larner, Of the
Washington Loan and Trust Com.
paIly, has again been appointed to
the finance and marine committee
of the American Bankers Associa-
ticn.
President Harry v. Haynes, of
The Farmers and Mechanics National
Bank. is a member Of the Federal
and State legislative councils of
the American Bankers Association.
President George o. Watson. of
the Liberty National. Bank, is a
member of the public relations COM
nilttee Of the American Bankers
Association.
Howard Moran, vice president of
the American Security and Trust
Company, is a member Of the saw
ings bank division Of the American
RankerS Asaocia ffoU
Tobacco Stocks On Hand
Tobacco manufacturers and
dealers held 1853 ,399 1898 pounds Of
lease tobacco on October 1, COM
pared with 754,595,720 pounds on