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THE
11
MUSIC TRADE! REVIEW
NEW FINANCING SCHEME OFFERS PROBLEM TO CREDIT MEN.
Offer of New York Concern to Lend Money on Accounts Without Publicity Looked Askance At by
Men Who Guard Financial Interests of Large Business Houses.
A new problem is said to confront the credit
men of the country in the shape of a system of
lending cash on accounts, which is set forth in a
letter sent out by a firm of this city to manufac-
turers and wholesalers throughout the country.
The letter says:
"Do you ever need money on short notice or
desire a 'silent partner' to supply a large amount
of elastic capital? Over one-half our entire busi-
ness comes from firms rated $50,000 to $75,000
and higher; in fact, one-third comes from firms
rated over $100,000.
"Make your credit sales at cash prices by giving
us about the same discounts usually offered foi
cash and we will carry your open accounts oi
notes. Do you care whether we or your cus-
tomers receive the discounts so long as the net
result is about the same to you? In many cases
our discounts are less than those offered to the
trade.
"Upon receipt of duplicate invoices, with ship-
ping documents, we remit bank check for 80 per
cent., less our discount, cash, and the remaining
20 per cent, as each account or note is collected.
All accounts purchased are left with you as our
agent in trust to collect for us, and thereby your
customers do not know that we have purchased
your account.
"Your original invoices are mailed to your cus-
tomers as us.ual, without any notice thereon of the
sale of same to us. You are not obligated with
us either as to time or volume of business, bor-
row no money, as you sell your accounts, and do
not disturb your present resources.
"No interest, exchange, or other charges of any
kind, except our discount, according to the time
each account remains open. Give us a lot of your
present accounts for a trial. You will be pleased."
According to one of the best-known credit au-
thorities in the country, there is much to be said
both for and against this proposal.
"While the offer," he said this week, "presents
a temptation to the manufacturer or wholesaler
who is struggling along with insufficient capital,
and at the same time brings an element into credit
granting with which the modern credit man must
deal, the legitimacy of the system cannot be arbi-
trarily settled one way or the other. The crux
of the situation lies in the way the capital so ob-
tained is used. If the money so borrowed is used
to discount bills by the party receiving it, and
thereby offsets the discounts of the banker, the
borrowing of such money is at once safe and the
lending of it legitimate business. But, on the
other hand, if the money so obtained is not put
back into the business for that purpose, the dis-
counts naturally become a drain on the business
and are a source of great danger to the borrower
and his creditors.
"This particular method of letting out money
does not seem quite so above-board as other and
slightly different ways. It keeps the borrowing
firm's customers or debtors in ignorance of the
fact that the accounts have been sold and it keeps
the firm's creditors in the dark as well. In this
way it hampers the credit man in his work of
determining whether or not the firm in question
should be granted credit. Many times, to my
knowledge, accounts so disposed of have been
turned in by seekers after credit as Al accounts
receivable when they were not worth the ink re-
quired to list them."
BOSTONIANS TO MAKE TRADE INVESTIGATING TRIP.
Chamber of Commerce of That City Plans Long Tour of Latin America—A. M. Wright an En-
thusiastic Worker on Committee—His Views of the Tour and Its Possibilities.
Business men of this country are showing
greater interest than ever before in the affairs of
Latin America, and the opening of the Panama
Canal forms great trade possibilities.
The Boston Chamber of Commerce has ap-
pointed a committee who are arranging a tour
which will include a comprehensive visit to the
important countries of Latin America which lie
south of us.
On this committee is A. M. Wright, general
manager of the Mason & Hamlin Co.
While discussing this proposed tour recently
with The Review, Mr. Wright said:
"This tour is undertaken with the hope of se-
curing a 'better feeling and understanding between
the peoples of South America and those of the
United States, which, unfortunately, at the present
time is not a correct estimate. The business of
South America, vast as it is, goes mostly to
Piano manufacturers and
others who desire to get into
close relations with Latin
America will find El Mundo
to be an excellent medium.
It is published wholly in
Spanish, and covers compre-
hensively the music trade and
talking machine fields.
EDWARD LYMAN BILL,
Publisher.
373 Fourth Ave., New York.
England, Germany, France and Spain. We of the
United States get a mightly small share. It ought
to be changed, and we hope that our mission may
in a small degree at least serve that purpose. We
hope to have the big business interests of Boston
and New England represented by able men. The
object of the tour will be more social and sight-
seeing than anything else. No business will be
undertaken on the journey nor will samples or
advertising material be taken along.
"The Boston Chamber of Commerce has a mem-
bership to-day of over 4,600 active Boston business
men, and it is doing a great work for this city and
New England as a whole. This South American
tour is only one ramification of its activities."
It is proposed to leave Boston on April 25, and
visit the following countries: Kingston, Jamaica;
Colon, Panama; Panama, Panama; Buenaventura,
Colombia; Callao, Peru; Lima, Peru; Mollendo,
Peru; Arequipa, Peru; La Paz, Bolivia; Arica,
Chile; Iquique, Chile; Antofagasta, Chile, Coqu-
imbo, Chile; Valparaiso, Chile; Buenos Aires,
Argentina; Rosario, Argentina; Montevideo, Uru-
guay; Santos, Brazil; Sao Paulo, Brazil; Rio de
Janeiro, Brazil; Bahia, Brazil; Port of Spain, Trin-
idad ; Bridgetown, Barbados.
The return to Boston will be, according to
schedule, July 23.
BIG FIRE IN ST. THOMAS, QUE.
The building and stock of the Baldwin, Robin-
son Co., Ltd., manufacturers of pianos and musical
instruments in St. Thomas, Que., was damaged to
the extent of $100,000 last week.
NEW PIANO STORE FOR GLENS FALLS
A. B. Beakbone and Arthur E. Chapman, both
well-known in the piano trade in New York State,
have leased the premises now occupied by the
Masonic Club in Glens Falls, N. Y., and will open
a piano store in those quarters on April 1.
The Value
of a Name
r
P H E commercial
^ value of a recog-
nized name of high-
standing can hardly be
over-estimated.
Names that are
known sell on sight
everything, from a
package of biscuits to
a $10,000 automobile.
In this matter of
names the salesman
of the Hardman Piano
has a twofold advan-
tage.
The name of Hard-
man lias been familiar
to the people of the
United States for nearly
three-quarters of a
century, as standing for
the very best there is
in Piano value.
The name of the
Metropolitan Opera
House of New York is
familiar the world over
as standing for the very
best there is in Musical
Art and Progress.
And the Hardman
Piano is the official
piano of the Metropoli-
tan Opera House.
Surely there is sell-
ing strength in this
union !
HARDMAN, PECK & CO.
Founded 1842
Hardman House
433 Fifth Avenue, New York
Chicago Office and Wareroom
where a complete stock of the output
can be seen:
Republic Building
Corner of Adams and State Sts.