Automatic Age

Issue: 1930 August

T h e A u t o m a t ic A ge
W a tc h
B a n k in g
15
D ev elo p m en ts
When the experts disagree about developments in banking circles,
it may seem somewhat daring for a layman to express a positive
opinio.n on the subject. We are primarily interested in the effects
that banking trends will have on the chances of worthy small busi­
nesses for obtaining money. All the firms in the automatic trade are
classed as small and medium sized business enterprises, and naturally
the trade is vitally concerned in what takes place in financial circles.
The frequent appearance of new inventions in the trade also means
that there are going to be many demands for reasonable financing.
Authorities say that it is now difficult to get consideration in estab­
lished financial circles for any project that does not involve millions.
A few attempts have been made in the automatic field to get up into
the high circles where everybody talks in terms of millions, but the
experiences so far have not proved so favorable. Practically all the
sound developments in automatics are being made by small and medi­
um sized firms, and by inventors who have to spend more time in
looking for funds to market their devices than they did in developing
them.
Close observers have recognized that for years available funds were
drifting toward the stock market, and that it was getting increasingly
difficult for smaller independent firms to get needed funds and credit.
The trend in banking circles now is toward branch banking and in­
vestment trusts. The question is whether these new developments
will create any more favorable conditions for small business, or will
they merely continue the practices of the past few years. A t first
thought one would naturally conclude that mergers in banks will not
mean anything better for the small firm, and many authorities are
already coming out in the open and clearly expressing their views on.
the dangers.
The present business stress has served to make people sit up and
think of the place and importance of small business enterprise in the
American system. The truth has about simmered down to the con­
clusion that mergers and big corporations have many advantages in
certain industries, but that small business enterprise still remains the
necessary bedrock for any permanent prosperity. The future of the
automatic trade is wrapped up in what happens for the good or ill
of small business, so that is why we say “ Watch banking develop­
ments.”
There is probably nothing that can be done about it, except to create
such strong sentiment among business men in general, so that bank­
ing circles will be led to sit up and take notice.
© International Arcade Museum
http://www.arcade-museum.com/
16
T h e A u t o m a t ic A ge
T h e D r ift T o w a r d S m a ll
C itie s
While population figures show that the masses seem to still drift
toward bigger and bigger cities, Mr. Stuart Chase seems to be head­
ing a decided agitation toward the smaller cities. Here again the
automatic trade has something at stake for the future. It is highly
evident that all small business is going to have to put up a strong
fight for existence for years to come, so it is worth looking about for
the most favorable fighting grounds. It is only natural that the Mid­
west Utilities should come out in excellent advertising setting forth
the advantages of the small cities, but even if the utilities are promot­
ing their own business, the facts set forth are worth serious con­
sideration.
About half of the firms engaged in the manufacture of automatic
devices or parts are located in Chicago and New York, and their en­
virons. The advantages of the locations are well known. But the
automatic trade is also favored with an increasing number of firms
in the smaller cities which are marketing devices that are making
automatic history.
Since the problem of financing is likely to be such a vital factor in
the future of the small business enterprise, the possibilities of the
smaller cities in this respect becomes the chief point of interest. Else­
where in this issue there is mention of the fund whch the Scranton,
Pa., Chamber of Commerce is creating for the aid of local industries
that may meet critical financial needs. This is merely an indication
of how the smaller cities are coming to appreciate their industries,
and the next few years will show a greater number of concrete plans
whereby the community stands back of its enterprises in all crises.
.The strong advertising campaigns which many cities are conducting
to induce new industries to locate in their bounds is an indication of
the spirit of co-operation steadily growing.
It is usually a poor policy that doesn’t work both ways. If the
co-operation of the cities is going to mean a great boon to small in­
dustries, then these industries ought to be strong boosters for the
towns in which they are located. The automatic trade has been justly
criticised in this respect, and we might take warning from the plight
that chain stores have made for themselves by neglecting local spirit.
It is highly probable that those automatic firms now located in the
smaller cities will find increasing financial advantages coming their
way, as the cities learn more and more how to appreciate home in­
dustries, so boost your home town in return.
© International Arcade Museum
http://www.arcade-m useum .com /

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