Evening star., 1932-02-06

declined greatly on the London Stock
Exchange encourages the diamond
trade. while it discourages diamond
share investors, because of the reasons
for. the decline One OF these Is the
fact that the mines have been working
at loss. 1t recently was cited that
during 1880 one of the leading mines
in South Africa produced diamonds to
total value of 100000 sterling, while
the cost Of mining amounted to $780,
900 sterling. Consequently, the mine
produced as little as possible in 1881.
and during the middle of the past
month discontinued work entirely q
Another factor that has made for
improvement in the diamond trade has
been the growing demand for this stone
for investment purposes. This has been
brought about, in part by uncertainty
OF the value of currency in various
countries, and many wise investors feel
that they can insure themselves against
depreciation by buying diamonds. as
their bulk is small and the demand for
them universal.
Collection Status Unfavorable.
When compared to the sales. collec-
tions for the year were considerably
below the average for the last five
years. Slowness was In evidence par
ticularly in the South and on the Pa
ciflc Coast. The widespread unemploy-
ment had an unfavorable bearing on
lnStallment payments in nearly all dis
tricts, and collections in this division
were difficult.
Ihe credit loss on the total net sales
for, 1891 was 0.61 per cent, taking re-
tah distribution as whole, ranging
from O.23 per cent for stores doing an
annual business of $4,000 or more, 10
high OF 0.S3 per cent for stores doing
an annual business of 100000 to $3.50
600. Apparently, most of the houses con-
Quoting purely credit business are in
cluded in the latter group. Only %
per cent of the annual value of iewelry
sales is made by installment houses.
The credit loss in stores located IN
the large cities was much below that
OF the small towns. This means that
credit terms are much more rigid in
the large cities or that they are more
effectively enforced or that a better
collection system IS operated In geo.
graphical divisions. the largest credit
loss of l.08 per cent on total annual
sales appeared in the Pacific Northwest
with the smallest. Of 024 per cent, in
the New England States.
Outlook Better Than In 1881.
All branches of the jewelry industry
are far more cheerful regarding the
prospects for increased business than
they we're at the beginning Of 1881. AS
the holiday business started so late in
December, many purchases were carried
over into January, some retailers re-
porting an Unexpectedly large volume
for that month. Current business has
been fair, with sales on the increase
in those districts where farmers now
are receiving money which was intend
ed for payment in December
Retailers stocks have been depleted
in most instances to the point where
the greater portion Of their sales now
are being passed on to the wholesaler
and manufacturer. No purchasing for
stock Is anticipated until there will have
been sufficient activity to make prices
advance. Even then, doubtless, pur-
chaSes likely will be held down to small
quantities, because of the difficulty
that retailers have experienced in OBJ
tanning credit with which to meet their
current obligations.
In spite Of curtailed buying power
and uncertainty Of outlook, it must be
remembered that the desire for the
possession of jewelry never lessons 1t
is a desire that runs the entire gamut
of peoples of nations, with but little
of its strength impaired in the up
swing from the savage to the cultured
member of modern society. At present
the desire awaits only more favorable
turn to break through the repressions
that the last few years Of enforced
economy have hardened.