Evening star., 1932-11-20

every city any number Of bookkeepers,
shipping clerks, nriefieSs lawyers, and,
perhaps, opera singers all convinced
that they were born to raise chickens
despite the fact that they are utterly
ignorant Of the business. In the same
manner, there are vast numbers Of
tired white collar workers who are sure
they would make q success at keeping
store. That Is one of the oldest busi-
ness ambitions. Children play at keep
ing store as one Of their earliest games
and too often, this surve..- shows, under
take to play at keeping store in later
life, only to go bankrupt and cause
losses to those who have extended them
credit
Considerable blame attaches to whole
salers and johbers and even manufac-
turers, the report says, for granting in
discriminate credit to persons setting
up in business for the first time. They
do not look into their financial respon-
sibility nor into their personal efficiency
and training. Goods are shipped on
credit and the new business dedgling
encouraged to run into debt, a course
which soon runs him into the bankruptcy
court. The inquiry showed that in an
astonishing number of cases about the
only capital possessed by inexperienced
persons entering . strange business field
was hope. -,
Types of Men Who Fail
Some enlightening facts concerning
the type OF failure In American business
are included In the new survey. II
should salve the pride Of the Yankee
business man who has always been
jealous Of his commercial shrewdness to
note that approximately SO per cent of
the failures studied are foreign-born and
rs per cent Of foreign parentage. More
bankrupts came from Russia than any
other foreign land.
The great majority OF the business
bankrupts failed between the ages ot
IS and 81. Some, of course, failed
more than once. Only handful failed
under "A years Of age. The men fail
ures run about "a to / aS compared
with women in business but there are
q great many more men In business.
However, the large increase In the num-
Der Of tea rooms, gift shops, beauty
par!ors and the like which have been
opened by women In the last decade or
two has greatly increased the proper
! ton Of women.
Bankrupt owners are inclined 10 3D.
vance business depression ~ Q cause Of
failure, while creditors often claim In
efficiency. Both play parts, but IN
| efficiency, lack Of proper training. the
sort Of mismanagement which extends
unwise credits, builds top-heavy over
head and fails TO keep the house IN ORDER
seems TO be chiefly to blame. 1t is not
a little interesting to note that in o list
Of causes Of business failure. dishonesty
Of employees and fraud comes practically
at the bottom Of the list.
There seems to be excellent reason 10
believe that the billions in losses
through comnircial failures are largely
avoidable through saner methods, better
preparation and wiser management.
| The depression has caused some $4,000
commercial failures IN both 1880 and
! 1891, but in the great boom year Of
| 1929 there were more than $1,000 fall
ures. Depression could scarcely be
blamed for those.
In q word, the Government analysts
incline to the opinion that hard times
are never to be so much blamed es
failure Of shoemakers to stick to their
lasts and the an. nitions Of Tooiey street
| tailors to enter other fields.