Evening star., 1931-06-22
RULES FOR TRADE
GAINS SUGGESTED
Auditors Give Suggestions to
Merchants as Means of
Promoting Business.
BY JOHN F. SINCLAIR.

Ernst, nationally known auditors, be-
ueve there is no simple formula for
advanced business planning. but that
merchants should consider the subject
along these four lines:
l. The market for the product. What
is it? How much territory should be
served? What is the competition?
How much should be sold, by months,
within the next year? These are queS-
tionS for the sales executive.
2. The facilities for production or
handling. The machinery, fixtures,
buildings, land, goods, etc-are these
sufficient and economical? Is careful
consideration being given to maintain
ing a proper balance in them and see
ing that advantage is taken of advance
ment in the art, such as new machine
tools and production methods? Thsse
are questions for the works manager
or the comparable executive.
\3. Are the finances adequate? Is
more money or less money needed?
When and how much? Are the finances
so adjusted as to make a given amount
of money do the maximum work?
These are questions for the treasurer.
4. What is the capability OF the or
eanization? Is there proper team work,
practical system of responsibility within
the MANAGEMENT? These are questions
for the president or other chief eXecu-
tive officer and for his immediate staII
TIE essence of business leadership
is advance planning" say Ernst d
Ernst 1.-The cure does not lie prl.
narily with national and international
leaders, or merely with big business
men, but with each business man, no
ic YlrnHUnf n0SlClCn.
Bear Leaders.
William Danforth and Benjamin
Smith are the acknowledged bear lead
ers on the New York Stock Exchange
today. Mr. Danforth lives in Boston;
Mr.. Smith lives in New York,
Mr.. Danforth is tail, angular lnol-
vidual He plays gct-a ialr game,
after stock market hours, flies his prl-
vate airplane between Boston and New
York frequently, and when in New
York gives his stock market orders
largely from his own suite in Filth
Mr. smith is a different type. He
Is built like college athlete, heaVy-
chested and vigorous. He IS moor
trader and has his office with w. 4.
Hutton S5 Co. He has no nXeo con-
viction on the subject OF pear OF
'bull." He has played both sides ana,
If the reports are true, equally sue
cessful.
Business Progress.
George M. Verify OF MlddletoWn,
Ohio. chairman of the American Roll
ing Mill Co., believes that the progresS
business is now making, along lines
Of readiustment, retrenchment ana
Iinnidation." has been more than SUI
ficient to meet the need of the sltua-
fjon and that a return of confidence
on the part of business and the puoI!c
at large is now one or the most, II
not the most, important factor In the
situation .,,,or
when the public more fully reailzes
that periods of readJustment ana oI
prosperity have followed each other IN
much the same way eVsr since &C., oua =
business history has been recoroeo,
saws Mr.. Verify, cit will appreciate that
this period of business depression, as
drastic as it has been, will in due course
give way to another era OF better times.
"Then, when it comes to see that
every sound and well managed 1nstltu-
ton is more efficient today than 1t was
in 1929, confidence will return and
people will work back to new normal
period just that much faster
New Bank President.
Samuel S. Colt, the new president OF
the Bankers Trust CO. of New YORK,
who was graduated from Yale Un1ver-
sity in 1914, is just 33. the youngest
of the large bank presidents IN New
York.
When he returned to New York from
the Graat War as major he on-
tanned position with the Farmers
Loan g. Trust Co. It was not long
before he was one of its vice presi-
dents, and when the Farmers Loan
merged with the National City Bank
Young Colts name was listed among
the vice presidents of the new firm.
It was in 1912 that Henry P. David
son founded the Bankers Trust. with
a capital and surplus of $1,500,OO0. Tne
last report showed a capital OF $25,--
100000, surplus and undivided profits OF
S87, 100000 and total resources OF
1888, 100000.
Seward Prosser, long the power at
the Bankers, now becomes chairman OF
the Managing Committee. 1t was from
this bank that the Federal Reserve Bank
of New York took Benjamin Strong to
be its first governor. The selection was
an-ideal one, for it Is now universally
admitted that no Federal Reserve gov
ernor has ever dominated Federal Re-
serve policy to a greater extent than
Gov. Strong.
How quickly the world responds to
sane and aggressive leadership is vivid
" shown by the response which has
greeted President Hoover's statement
suggesting a moratorium on war debts
and reparationS for one year, beginning
July /.
The President was very clear stating
his own views on war debts. He is
opposed to cancellation, but he does
favor adjusting the debts to meet
changed conditions and does not de-
mand more in repayment than the
debtor countries received in purchasing
power. Capacity to pay should be the
basis of. all payments.
Students of international business
admit this latest move of the President
is a step in the right direction. Still,
many other steps must be taken before
the European disorder is cleared up.
One years moratorium will give the
world a breathing spell long enough to
find out what the next step must be.
That's the hopeful thing about it all.
And that is why the stock market
responded so vigorously to it Saturday.
But President Hoover can only sug-
gest a plan. He cannot make it ef-
fective without, the approval of Con-
gress. Does it mean that he must
call Congress in special session this
Summer? Not necessarily. He can
have his suggestion ratified in Decer1-
ber next, when the regular session
meets.
No politician or statesman is likely
to oppose this moratorium move. 1t is
necessary, and no one knows 1t better
than the President.
(Copyright, 1881, by North American News
paper Alliance, 1nc.)
POTATO MARKET.