Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
MUJIC TIRADE
VOL. LXX. No. 11
Published Every Saturday by Edward Lyman Bill, Inc., at 373 4th Ave., New York.
March 13, 1920
Y°. r C e i l U
Credit Status
T
H E promises made regarding the development of the activities of the Music Industries Chamber of
Commerce are already being borne out in fact, as was evidenced at the meeting of the Executive
Committee held last week. This new conception of the part to be played by the Chamber of Commerce
in the furthering of the interests of the trade can be no better illustrated than in the decision to present
the affairs of the industry before the bankers of the country in their true light, with a view to establishing a
definite and more favorable credit status for the trade as a whole.
The standing of the piano trade in the eyes of bankers generally has improved immeasurably during the
past few years. The bankers realize the present favorable position of music and, particularly, the better
financial methods in vogue in the marketing of musical instruments. Where the average piano paper of a few
years ago was looked at askance in banking circles, and quite rightly in many instances, it must be confessed,
the same paper to-day has a real value, representing as it does short term selling agreements with collateral
back of it that is worth while.
The transition of the piano business from long credit to what is practically a cash basis has been rapid and
significant, but it is quite probable that this significance is not fully realized in banking circles as yet. The
Chamber of Commerce plan does not have to do with the dissemination of pure propaganda among bankers
in favor of the industry- It has to do rather with the bringing before the financial interests of the facts con-
cerning the piano industry as they exist to-day, backed by statistics and general information that will prove their
accuracy.
The average piano manufacturer or dealer to-day need offer no apology to his banker when seeking credit.
His position is as favorable as that of any other business man in the land, and his credit demands are made for
the purpose of development and expansion, rather than to cover up a cash deficit. Regardless of to what extent
credit may be required by the industry at large in the near future, it is only right and proper, and good business
policy, to keep the business world at large, especially the financial interests, fully informed as to the real
importance of the trade—the amount of capital invested, the value of the annual turnover, the amount paid in
wages, the value of plants and equipment, and the mass of other detail that goes to show whether or not the
piano industry is to be considered seriously as being a leader in the economic life of America. If credit is not
needed, well and good. If it is, a piano man should be able to go to his banker and secure the desired
accommodation—not as a favor, and after much argument—but as giving the banker the opportunity to carry
on his business on a solid and safe foundation.
The compilation of definite facts regarding the industry and the presentation of those facts to banking
interests should have the support of every member of the trade—not simply moral support, but practical support,
in the furnishing of information that will prove helpful. Members of the piano trade have not been particularly
noted for giving to the world information regarding their own particular businesses. There are times when such
secretiveness works harm instead of good, and this is one of the times.
It would seem well that the information gathered for the enlightenment of the banking interests be given,
after some editing, to the public through various channels, for the public as a whole is impressed with big
figures as they refer to capitalization, production and other matters of industrial moment. The average person
likes to patronize a big and successful company. There is something about it that breathes confidence, and
likewise the general public might have its appreciation of musical instruments increased to a degree upon
learning of the real importance of the music trade in the industrial life of the nation. There is no need for the
industry to-day to hide its light under a bushel. Let it come out and show its true importance to the world at
large, and thereby take the place in public esteem that rightfully belongs to it.