Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
VOL. LX. N o . 2
REVIEW
Published Every Saturday by Edward Lyman BUI at 373 Fourth Ave., New York, Jan. 9, 1915
I
S1NG
$ 2 E OOFE 1 RIE 1 1£ ENTS
HAVE received a number of personal communications from men of eminent standing and posi-
tion in this industry endorsing my editorial suggestions of last week in urging the need of con-
certed action governing credits.
The endorsement of such gentlemen is doubly pleasing because it shows that the sugges-
tions which I made were received in the right kind of spirit, and that men of eminence do not hesi-
tate to say that the proposed move is the right one for trade stability.
Really, I do not see how a good reason can be advanced why there should not be settled and
definite plans governing selling terms of musical instruments.
It smacks of a past era when men say that because certain rivalries exist in trade that the
producing forces composing an industry cannot get together on rules governing such an important
fundamental as credits.
How about the steel trade? How about the dry goods trade? How about the boot and shoe
trade?
Go in any of those industries and you will find that there are fixed selling terms governing all
business transactions, and that is what I affirm should be introduced in the piano industry.
It would rehabilitate the entire trade. It would remove from it certain doubt and suspicion
which may have gathered in the minds of outsiders, brought about by the actions of a few men who,
in their mad race for business, threw all rules of prudence and safety to the winds.
Piano paper should be the best in the world. It should be better than dry goods paper—better
than boot and shoe paper—better even than iron paper.
Why? Because there is more back of it, provided a piano is properly priced and sold in its
class.
In the first place, there is the signature of the customer—strengthened by the endorsement of
the dealer, and finally the piano itself.
Piano paper which is carefully and systematically looked after is the best kind of commercial
currency, so long, of course, as the dealer conducts his enterprise along lines which are consistent
with trade sanity—so long as he keeps reasonably within the limits of his capital, and is satisfied to
let the profits of his business, reinvested, form the true basis of growth.
Of course, credit is necessary. It is not only necessary in the piano business but in every other,
and it is absurd to say that piano men should not give credit. They should, and customers' paper,
when supported by the right kind of methods, furnishes desirable collateral for business purposes.
Piano credits should be safeguarded in every reasonable manner, and if the methods regarding
selling were standardized regarding time, there is no question but that business would move along
smoother and better lines.
Piano paper, like all commercial paper, will be more closely scrutinized, now that the new
banking law is in operation.
There are many changes brought about in the banking system, and this will be especially noted
in the discounting and rediscounting of commercial paper which is to be one of the chief func-
tions of the system.
It will, therefore, be necessary that all washed sales, or sales which are made for the purpose
of floating commercial paper, be eliminated entirely, and a few of the leading piano producing houses
(Continued on page 5.)