Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-18

companies. Speak
ing on the subject Credit and Prog
ress," he described the helpfulness OF
installment selling, If properly safe
guarded. in bringing added comfort ana
happiness into American home life.
although the development OF con-
sumner credit has been hailed with mis-
givings, its coming is natural and time
will serve to work out the safeguards
which should surround its successful
practice" Mr.. Stephenson said. Its
growth up to the present year has been
without serious setback. owing to the
era of prosperity which suffused the
United States. The testing time is now
here. Those companies which have
not strayed from the basic rules Of
credit will survive. The others win fail,
as failure has marked the path of those
financial institutions which in past years
disregarded the teachings Of successful
practice.
Basis Of Credit.
d'The granting of consumer credit
rests back upon the ability and the
willingness of people who make COM
mitments to meet them promptly. 1t
has been charged against consumer
credit that it enables people to make
commitments beyond their ability to
meet. This charge will continue until
Suficient time has elapsed to enable
the agencies of consumer credit to work
out practices of administration which
will prevent excuses in the extension
Of such credit.
IF the extension of producer credit
has at times been unWarranted and
has in consequence brought disaster,
not only to the persons or firms Sc
curing 1t, but also to the creditors
themselves, there is more danger that
consumer credit, except under stricteSt
regulations, will work for even greater
unsettlement. The present recession in
business in the United States has last
ed longer than most previous ones. It
Is possible that the unwise use Of
credit, both consumer and producer, Is
q factor in this situation. Personal
mitments are yalueless In the absence
of ability to pay, and ability to pay
must to large degree rest upon cur
rent conditions of employment.
I'VE like to think of American homes
equipped with inventions which con-
tribute to the happiness and the well
fare of their members. The housewife
turns OF the electric toaster and coffee
percolator and conveys the children to
school in the family car. She returns
home to hear the swish of the electric
washing machine or the low grumble
Of the ironer. The vacuum cleaner
maintains spotless floor After a
dinner cooked on a stove with heat
regulated automatically. the family en-
Joys a program on the radio. while
the house Is kept at an even tempera-
ture by thermoStatic control.
Credit Economy.
eff consumer credit can aid in
bringing about wider spread of this
happy condition, without at the same
time plunging an equal number into
the misery which comes from the
realization of overwhelming indebted
ness with scant means to meet 1t, then
It registers definite gain in the field
Of finance.
Credit economy has enabled larger
number Of persons to enjoy the prod
ucts of industry, but only through an
ticipation of future earnings and not
because Of accumulated or current in
come. If this condition should even
tllally prove inimical to the normal
and ordered growth Of industry. then
it win become your high duty to place
consumer credit on a basis which will
cid in leveling OF the cycles of depres-
sion rather than making them more
V1rnr1ounced"