Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-06-23

How to nav the grocery bill is prob
lem which probably most American
families have faced many times. Wniie
q smaller number of persons are directly
affected, the grocer's problem OF how TO
collect the grocery bill Is one OF no less
moment. The Bureau of Foreign and
Domestic Commerce of the Department
Of Commerce, in connection with It's
studies of retail distribution, has just
ter, and its findings indicate much
sympathy for the corner grocer.
A good deal Of very human psychology
enters into the matter. The wage
Garner whose wife each day must go TO
the store to buy the household food
sees shelves filled with things to eat
from fresh vegetables and meats to the
vast variety Of canned goods. The sup
ply looks almost like q miser's hoard.
| It seems rather natural to think that
the grocer cannot possibly need prompt
payment Of his account because he is
surrounded by q great store of goods.
1t is all a matter of point of view. The
man or woman working with hands or
brain thinks Of the efforts which must
be put forth to obtain money to buy the
foods heaping these shelves. But the
must work, how often the stock must
be turned over-that is, sold and re-
placed, and sold again-before he re-
ceiveS enough profit to be entitled to
sufficient for the consumption Of his
own family.
There are many reasons for the in
stitution Of credit at grocery stores. One
Is this natural thought that the grocer
has so much goods he can afford to
wait for his money-that Is, people are
inclined to think they have q right to
credit. Two other reasons which the
| investigation shows are of the first i'm
| portance In starting credit accounts
| spring from precisely opposite sources
One Is that certain class Of well-to-do
people In community do not want to
be annoyed by making small daily cash
| purchases, waiting for change and the
Ike. They have enough money anc
| find it more convenient to write check
once a month or so. The other is that
the class of wage and small salary
| earners, paid weekly and living on q
slim budget, actually need credit: they
actually never have enough cash to
guarantee regular payment of bills.
Accounting Basis Unsound.
The more the bureau looked into
the matter the more sympathetic II
became toward the grocer who, In q
sense, has to be purveyor Of food
| and other goods to his customers and
also their banker. Modern methods Of
accounting were applied to the grant
ing Of the ordinary small grocery stor.
credit account; and 1t was shown tina,
the grocer must bear an actual ex.
penSe, Repeated cases showed that Il
cost the grocer just 4 per cent NOR.
to sell goods, even on q 30-day credit
account, than for cash. Furthermore
It found that failure to realize thai
this difference existed resulted in tn,
| failure of many small grocers.
| Here is the sort Of case illustrating
the point. A typical grocer SHOWED
an inventory Of goods on his shelve.
worth $4,000. But outstanding &C
counts owed by customers amounted Il
$4,000. Some of these accounts werl
6 months old and notes had beer
given, bearing interest ut about hal
the usual bank rate. Some 80 per cen
Of the total was overdue between
three and six months, while some &C
counts were more than a year old ant
perhaps would never be paid. Thi
merchant, In fixing his prices, hguret
on the basis that he must charge so o.
to make q profit on the $4,000 In
ventory. His great mistake, according
to the bureau, is that he did not add
the $4,000 of outstanding accounts
That would have brought his inventor.