Classic Mode

Music Trade Review

Issue: 1896 Vol. 23 N. 3

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE MUSIC TRADE REVIEW.
EDWARD LYMAN BILL
Editor and Proprietor.
PUBLISHED
EVERY
SATURDAY
3 East 14th St., New York
SUBSCRIPTION (including postagre)_ United States and
Canada, $3-00 per year; Foreign Countries, $4.00.
ADVERTISEMENTS, $2.00 per inch, single column, per
Insertion.
On quarterly or yearly contracts * special dia-
ertion. On
' allowe
" red.
count ' i*
REMITTANCES, In other than currency form, should
*• mad* payabl* to Edward Lyman BilL
Bnttred *t the New York Post Office as Second-Oass Mmtttr.
NEW YORK, AUGUST 8, 1896
TELEPHONE NUMBER 1743. — EIGHTEENTH STREET.
••THE BUSINESS MAN'S PAPER."
BANKS AND BUSINESS.
HE editorial which appeared in last
week's REVIEW anent the position
assumed by banks toward manufacturing
enterprises seems to have met with wide-
spread approval. The relation of mon-
eyed institutions to industry is an all
important one, and the subject can be
dwelt upon at length, as it never ceases to
afford new interest and the absolute neces-
sity for the existence of both is an undis-
puted fact.
In studying the situation we are im-
pressed with the patriotic attitude recently
assumed by cur banks towards the main-
tenance of the gold reserve of the National
Treasury. Such action as they have taken
is most praiseworthy, and cannot be too
warmly extolled. It shows plainly that the
moneyed institutions of America do not hes-
itate at times to step into the breach, and
by their prompt action render innocuous the
financial panic which temporarily threat-
ened the country.
It is only fair to say that their actions in
T
this were generated by a feeling of com-
mendable patriotism.
Now, why not go a step further?
They have extended financial aid to the
Government in its time of need, and why
not adopt a like policy towards the business
institutions of our land ?
For what, after all, is the National Gov-
ernment but a big business institution in
which every citizen has an interest?
They help the one—why not adopt a
more liberal policy towards the other?
The success of this great country is de-
pendent to a large extent upon its manu-
facturing interests. Manufacturing suc-
cess and Governmental success are synony-
mous. They are closely linked. When
the manufacturing interests of America
thrive then there is no monthly deficit in
Government receipts—its disbursements
do not exceed its revenues.
Banking institutions do not hesitate to
come to the assistance of the Government;
why should they hesitate to supply the
necessary lubricator for trade when its ma-
chinery is rusting for want of oil?
The conditions are much different to-day
than in 1893, when the panic first began.
Then the banks themselves were unpre-
pared for the tremendous and sudden de-
mands made upon them. To-day the
situation has radically changed since the
panicky days of '93. Then the-banks had
not the money at their disposal to adopt a
policy towards their customers which
would have, in a measure, checked the
panic at its very inception.
To-day they have the money, but main-
tain a close grip upon it when considering
the industrial affairs of this country.
Their attitude stagnates trade, and ren-
ders the failure of many a solvent concern
possible. While the banks are glutted with
money, trade is starving for the lack of it.
What matters how the bank vaults are
bursting with coin while industry lies pros-
trate ?
The very root of our present stagnancy
lies there. If American money merchants
—for that is really what bankers are^—keep
their wares stored away, earning nothing
for themselves or their stockholders, how
can they expect that their foreign breth-
ren, who control the great money markets
of Europe, will place the cash of their in-
vestors in American securities?
If we ourselves have not confidence in
our own domestic affairs, how much can
we hope to inspire confidence in others who
have been taught to believe that American
securities were the safest, the surest, and
the best paying in the world?
Again, the action of bankers is aiding
the cause of unsound money. While the
arteries of trade are drying up for want of
sustenance there is, as a direct result, much
deprivation and consequent suffering
caused by the stopping of the wheels of in-
dustry, whereby thousands are thrown out
of work, and are unable to procure the
necessary sustenance for those who are
near and dear to them.
These very men
—and their name is legion—will, in a spirit
of desperation, cast their vote for any-
thing that promises a change. In the plat-
form of the Populo-Repudists there is
promised a radical change—a tearing down
of the old political fences—a rearing of
conditions chaotic. In a spirit born of des-
peration, the American workman will say,
unless there is relief, "Things can be no
worse, and in the general turning over of
things, I may come out better. It costs
me nothing, and I'll try it."
The very restlessness of the people—their
lack of employment—the lack of satisfaction
afforded by the present conditions, all will
assist towards creating a desire to vote
for anything that suggests a radical
change.
Now, are not the banks by their action
towards business institutions assisting the
very cause in the defeat of which they
more than any other class are interested ?
In this we do not mean to be understood as
meaning that banks should give credit in-
discriminately. But we do say that the
men, the companies with whom they have
done business in the past, and have proved
themselves worthy of credit and confidence—
for what, after all, is credit but confidence—
should not in these times be cut off
without the necessary discounts which they
ask.
These concerns have unlooked-for de-
mands made upon them, and they in turn
have a right to expect that they shall at
least receive the treatment accorded them
in times past.
In good times banks are only too anxious
to get good commercial paper. When
times are slow they throw out without
discrimination, thereby creating worse
conditions and longer periods of business
stagnancy.
Is there good and adequate reasons for
the banks adhering to this course to-
wards commercial interests?
Let us look at our own—the music trade.
At the beginning of the year we had the
Weber-Wheelock collapse. We have al-
ways claimed that this was a much misun-
derstood affair in banking circles, and it
had an effect upon piano paper which the
situation did not warrant.
Then, if we look over the list since,
aside from the Smith & Nixon failure, we
have nothing of consequence, although
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE MUSIC TRADE REVIEW.
some of the lesser failures have been con-
siderably magnified.
We have, we affirm, nothing worthy of
consideration until we reach the Hallet &
Davis and allied interests.
This failure
was primarily a direct result of the repudi-
ation doctrines promulgated at Chicago,
which set the Eastern financial circles
aglow, reflected upon the West, and the
banks there becoming alarmed, made a
demand upon the Hallet & Davis Chicago
corporation for a call loan which was
understood would not be called for until
November.
With the collapse of the Western house
the Boston house came also, notwithstand-
ing the fact that it possessed good assets
many times its liabilities.
Piano assets—there is a matter which
cannot be too well emphasized. We claim
that the values of pianos are maintained in
a degree which is not approximated by
other manufactures.
Buy a carriage, take a run down the ave-
nue—and that becomes second-hand and
its value goes down with a slump.
Buy silverware—its design becomes
passed
Jewelry—becomes antiquated.
Clothing—worn out.
How is it with pianos? There are in-
deed few records where there has been a
heavy drop in piano values.
Pianos
bearing the name of reputable manu-
facturers constitute at all times valuable as-
sets, approximating nearer permanency
than almost any other line of manufacture.
Let us compare values in the music trade
with those in the dry goods trade.
We have an illustration before us now.
Nearly opposite the offices of THE REVIEW
is located the firm of J. N. Collins & Co.,
dry goods merchants. The firm is an old
one, having been on Fourteenth street for
nearly twenty years. They have recently
failed. Their schedules show liabilities of
$144,566; nominal assets, $112,766; actual
assets, $50,884. The assets consist of mer-
chandise, fixtures and cash, $3,177. The
difference between the actual and nominal
assets is due to large shrinkage in the value
of goods on hand, a large part of which are
at present unsalable.
We claim that such an amazing per cent,
of decrease from nominal to actual assets
has never been witnessed in the music
trade, with the collapse of a reputable,
honest manufacturer, and the Collins firm
was considered reliable.
In the music trade, with an invested cap-
ital exceeding fifty millions, there has been
no occurrences which should tend to shake
the faith of those well posted in ourmusico-
commercial affairs.
It is only those who are in ignorance of
the real basic strength of our industry who
state and believe otherwise. All the music
industry needs, in common with other
settled trades, is an intelligent analysis of
its peculiar environments, and a policy o,f
fairness and discrimination extended in its
dealings with the money institutions of
our land.
#
#
In our "Specialty Talks" we have heard
from nearly all branches of the trade. Our
list up to date includes talks with the mem-
bers of the music trade upon the following:
Manufacturing; branch houses; retail
salesman; music publishing; wool and
felts; retail trade; and this week Mr. R. S.
Howard, the widely-know r n traveler of J.
& C. Fischer, answers some questions pro-
pounded from the traveler's vantage
ground.
#
#
Sixteen to one—that is, for one dollar in-
vested in THE REVIEW advertising columns
you get sixteen dollars'worth of advertising
value in return. That is sixteen to one, is
it not?
By the way, the present is the regular
size of the weekly issue of THE REVIEW.
Aside from its advertising pages it con-
tains nearly thirteen pages of live diversi-
fied trade news. Is there any music trade
paper in this country giving its constitu-
ency such service ?
#
#
It is well to think that even in these hot
days when one longs to meander around the
seashore or in the mountains, away from the
madding talk of politics, some pianos and
organs are being made and sold.
Factories are not working full time, nor
are the warerooms besieged by customers,
it is true, but what year have we had busy
factories or crowded warerooms in July or
August?
Memory fails us for a reply.
Then why not look on the bright side of
the situation? The darkest hour is always
before the dawn, and the present quietness
in trade will undoubtedly be followed by
an era of activity and commercial security.
More confidence and a greater faith in
the future are immediately necessary to
counteract the undercurrent of pessimism
which is depressing everyone and every-
thing.
No one will attempt to deny that there
is ample ground for unrest and dissatisfac-
tion, but the conditions are magnified by
this universal feeling of laissez faire among
manufacturers.
The wisdom of this course is dubious.
The situation this week is not discour-
aging. Dun's and Bradstreet's, in their
weekly, review of trade, report business
conditions as having clearly improved,
though business has not. It is the torpid
season, and better conditions have little
effect as yet. The signing of a compact to
regulate foreign exchange and the excel-
lent prospect of large crops of cotton and
corn have resulted in a very confident feel-
ing in the business world.
#
#
Last Tuesday Hardman, Peck & Co. paid
off the fourth instalment of $40,000 on the
extension granted them November, 1893,
on a full payment basis. This is, perhaps, a
private affair, but at the present time it is
not improper to state that this firm have
set an example in sound financiering
and careful conduct of business which
should commend itself to everyone in the
trade. Notwithstanding the depression of
the past few years payment after payment
has been met. We need hardly say it
has been uphill work to make business
progress, but Hardman, Peck & Co. have
made progress by hard work and good en-
gineering. The final payment will be made
the early part of next year.
FRANK X. SLINN, a piano tuner, living in
Paterson, N. J., committed suicide by tak-
ing carbolic acid at the Hotel Rockland,
Suffern, N. Y., last Wednesday night.
JAMES L. Ross, of the music firm of East-
man & Ross, Newburg, N. Y., died of ty-
phoid fever, Aug. 5, at St. Luke's Hospital.
His mother, Mrs. William Ross, died of the
same disease fifteen minutes later at her
home on South street. His sister died from
the same cause six weeks ago.
MR. DUNNING, of the Dunning-Medine
Co., New Orleans, La., is the inventor and
patentee of a new air brake, which is des-
tined to make quite a furore in railroad cir-
cles. It was successfully tested last Thurs-
day on the Louisville and Nashville road.
MCARTHUR & SONS, Knoxville, Tenn.,
are moving into larger quarters.
HENRY BEHR, president of the Waldorf
Piano Co., Newark, N. J., expects to have
the Waldorf piano on the market by. the
middle of September. He says that the new
instruments will be a revelation and sur-
prise to the trade. The factory is located on
Orange street, and has a frontage of 40
feet.
WM. H. SCHMOLLER & Co., of Omaha,
Neb., who purchased Adolf Meyers' entire
stock of pianos, organs, etc., at sheriff's sale,
is advertising same at a "great sacrifice"
in the Omaha papers. Steinway, Knabe,
Vose & Sons, Emerson and other pianos
are named. The character of the sale can
be understood from the fact that he adver-
tises "New upright pianos from $125 up-
ward."

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