Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-02-27
NSTALLMENT PLAN BUYING
BY FREDERIC ]. HASKIN.

Is installment plan buying. as 1t has
been rapidly developed in the United
States within the last few years.
menace to the prosperity Of the coun
try? Is 1t leading people into wild ex
travagances and creating an artificial
standard of living that cannot be
maintained? Is 1t snare and a pit
fall that makes slaves of it's victims:
Or. on the other hand. Is 1t Logical
economic development? Is 1t one OF
the biggest factors in the tremendous
growth of business In practically al
lines? Has it contributed essentially
to a reasonable advance in the stand
ard of living and made people content
ed and happy? Is 1t In fact form OF
saving, and does it tend to make wage
earners and salaried workers stick tc
their jobs instead of being drifters?
In short, Is 1t blessing or curse:
Is IL to he encouraged or frowned upon
and even curbed or regulated by legis
lation?
Evidently there Is much to be said
on both sides, for much has been and
Is being said pro and con. The dis
cussion was started some weeks age
and In still going merrily on, with
what profit remains to be seen, for II
does not appear as yet to have affected
installment buying. That also Is going
merrily on.
One of the interesting contributions
to the debate was made by Guy M
Walker, a we'll known New York at
torney and economist. in an article In
the Manufacturers Record, IN Whicn
he advocated the whole installment
system when soundly conducted. He
saws it is quite apparent that large
amount of the criticism of installmen'
buying Is coming from those who
through selling on installments in the
mast. have had an advantage over
those who were competing for the In
terest and custom of buyers, and that
the extension of the practice has
brought more and more competitors
an 1t has given to the people wider
and wider choice of things they could
buy and pay for in installments.
Pianos Versus Automobiles.
Mr.. Walker cited the case Of a piano
dealer who denounced him for defend
ing the selling of automobiles on the
installment plan and said 1t was a
shame people were buying automobiles
and running around instead of stay
cultivating music. The dealer. saic
Mr.. Walker, admitted that he was
selling pianos on easy payments, but
considered that all right!
Some people who have condemned
installment buying" says Mr.. Walker
have done so under the mistaken no
ton that people are led into extrava
gances and induced to buy what they
cannot afford because they can pay
for II in installments, and these critics
assume that II the people did not incur
| the obligation of money installments
they would be able to exercise self-re
straint and save the money they now
disburse in installment payments. But
the truth Is exactly otherwise. :.
1.-THE real question is: What woult
these people save and what would they
have il they did not buy on the In
stallrnent plan, and the answer is
nothing! The critics Of installmen'
buying do not hesitate to praise the
man who practices self-denial and
saves his money and then buys
| house or a new set OF furniture, OF
even an automobile or piano. or
| washing machine or a radio. After he
has saved up his money he, OF course
| Ia entitled to enjoy whatever he buys
/ The critics ignore entirely the rae
! that possession of the new home Oh
| the new furniture, or Whatever else
may have been bought. increases the
comfort and self-respect of the buyer
| cultivates his sense Of responsibility
and by that much increases his earn
ing power.
Freedom from debt is doubtless
great blessing. il you have anything
to show for your freedom. but ther'
| In another blessing that 10 greater
and that Is to be in debt for the home
the furnishings. the automobile, tn
washing machine, the electric refr1g
orator, the piano and the radio tina
YOU would not otherwise possess. bu
which you will some time own fire.
from debt because you have under
taken to pay for them in installments
Debt is not slavery when incurred II
performing a duty that one owes Il
| family and dependents. and when on
has provided the necessities and ordi
nary comforts. 1t is just as obiigator,
to furnish such additional comfort
| and luxuries as are within reach will
our present standards of living"
A New Form of Credit.
Installment buying. according t
other advocates OF the system, is tn
logical economic development OF new
form of credit--consHmers credit
Years ago manufacturers who neede'
money to enable them to fill order
already received had difficulty in Dor
rowing It. but bankers solved tina
producers credits. That has beel
placed on q sound and safe basis. ]