The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1937-04-01

! One Year (outsIds United statss) s2.5o
GENEROUS extension of credit in de-
preston years when it was sorely needed by
a great many families nearly ruined some
strong business firms which got no such ex-
tensions in dealings with wholesalers, the
landlord, workmen and the tax collector. AS
times have improved some of the accounts
have been settled, giving the surviving bust
ness places capital with which to pay their
bills, buy larger stocks, improve their bust
ness properties and get set for any new
downhill plunge which may come.
There remain on the books of most bust
nesses, however, an unusual volume of &C
counts which the debtors appear to have
little intention of paying. Perhaps the
credit was appreciated when extended but
there have been so many moratoriums, ex-
tensions and adjustments" so much relief
and so little propaganda for paying bills
that an alarming number of persons have
lost that spark of pride that makes one will
ing to forgo some pleasures today for the
privilege of being debt free and worthy of
credit tomorrow.
THERE are, we discover in discussing
credit with experts of the recently estab
lished collection agency here, several varie-
ties of debtors The real deadbeat never
pays willingly unless he plans to run larg
er account on the basis of credit so estab-
ished. He receives statements as if they
were only form of direct mail advertising
and does nothing about them. He believes
only the dumb pay their bills Naturally he
has to be handled with forceful action.
There are others ranging from fair
credit risks to poor ones, according to the
extent their habits are formed, who intend
to pay IF and when" but whose income
hardly covers their living expenses. The
credit bureaus function in such. cases is to
encourage systematic payments each pay
day.
TO THE average business man, any &C
count past 80 days old is looked upon with
misgivings. When it is six months old
without even a small payment on it, the
debtor is regarded as "such and such" and
at the end of year the account is charged
off, the ledger page placed with others which
have proved poor investments and from then
on the debtor and creditor have no business
dealings and no very high regard for each
other. 1t is largely these accounts, many of
them several years DID, that are being
brought to light in the early operations of
the collection agency.
There is however a greater opportunity
for service open to the collection bureau,
service of as much value to the debtor as the
creditor. With cooperation among bust
ness firms, the bureau can become a clear
ing house of credit information to it's men,
be~s. Its records will show just how badly
involved each debtor is by periodic reports
of all accounts over three months old. On
this basis, members may judge whether it
is advisable to extend further credit until
the debtor has made progress with his exist
ing obligations.
NOT only Redwood Falls but this whole
section of the state has suffered for want of
such service. The fellow who ran bill with
you until you insisted on some sort of settle
ment has gone elsewhere and repeated the
process until he may owe dozens of firms,
all of which probably welcomed him as a
good customer until they discovered too late
that he neglects to pay.
The reader who pays cash or meets his
bills on the first Of the month may feel this
is a matter of little moment to him but he is
mistaken. Bad accounts are an expense of
every business firm which must be made up
in the general run of good business. They
are factor in your "high cost of living"
A credit bureau for Redwood Falls
alone has at times been advocated but turn
ed down because the cost for such service
to one small city was considered prohibitive.
Serving the merchants of several counties,
not only spreads the cost but increases the
value of the service immeasurably. Whole
hearted support should be given.
SOME of the legislators are highly con-
cerned about the long hours worked by some
women. Others have wives who have taken
up contract bridge