Music Trade Review

Issue: 1921 Vol. 73 N. 7

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Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
VOL. LXXIII. No. 7
Published Every Saturday by Edward Lyman BUI, Inc., at 373 4th Ave., New York. August 13, 1921
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[HOSE two old women of history—Dame Gossip and her twin sister Dame Rumor—have been much in
evidence in the music trade during the past few weeks, which may be accepted as proof of the fact that
quite a number of members of the industry are not as busy as they might be, or at least are not attend-
ing to their business as they should, for the busy person who has something of importance on his mind
seldom has time to gossip, and indulgence in the latter requires a certain amount of leisure.
Ever so often the desire to circulate and deal in rumors, regardless of whether or not they are likely to
have any foundation in fact, seems to pervade a certain element in the industry. An innocent query or a face-
tious statement, devoid of any harm in itself, is passed from mouth to mouth, gaining in strength and detail
as it progresses, until it develops to a point where it is very likely to cause harm to some concern, or even to a
group of concerns. It has been known that a simple remark about the office shades in the factory being drawn
has been grabbed up by the gossips, passed on and bandied about, until it grew to an apparently definite state-
ment that the entire factory was closed and that a failure had occurred or was impending, when as a matter
of fact the factory was working overtime, and making excellent profits to boot.
This practice of dealing in rumors is not by any means new in the music industry or in other trades. Let
there be a little slowing down of business, which means more leisure for certain of the trade members, and the
crop of rumors may be expected to develop and grow with the suddenness and rapidity of mushrooms, and with
the poisonous qualities of the toadstool.
It is hard to understand just why apparently good business men, with trade problems of their own facing
them at present and requiring solution, find pleasure in discussing and enlarging upon the reported financial or
business troubles of their competitors, instead of attending to their own affairs. It would be quite bad enough
if this gossip and this passing on of rumors affected only the houses under discussion, but the fact remains that
this constant dealing in rumors and steady discussion of financial and business difficulties, or supposed diffi-
culties, has a tendency to react against the interests of the trade as a whole. The mental attitude is a real and
not an imaginary factor in the conduct of a business, and with his mind continually brought back to real or
supposed difficulties of his competitors by the gossips the average business man is bound to have more or
less pessimism injected into him.
Regarding the music industry particularly it must be admitted that the business situation has not
been of the best, but improvement is in sight and the various factors in the trade, both manufacturing and
retail, have stood up sturdily under conditions that are said to have tested severely the stability of industries
more potential in a financial way than ours. The business crashes have been few and far between, and have
not exceeded in number those reported during the average normal year—a record that can be duplicated by
but few other industries.
The thing to do now is to sidetrack the rumor-mongers and talk optimism, not simply the lip-service
sort, but the kind that has a solid foundation in fact. Having gone through the worst of the depression with
flying colors, there should be no great worry about the future, provided the members of the industry maintain
their mental balance and confidence.
'. ...
It is said that if a certain statement is repeated frequently enough it will eventually be believed, and it
is equally sure that if these rumors of business troubles, which have been so thick in the music trade for the
past few weeks, are allowed to continue and are not stopped the confidence of the trade as a whole is apt to
be undermined. When the dealer hears from half the manufacturers, for instance, rumors that the other half
are shaky he begins to doubt the stability of the whole crowd, and it is particularly harmful because the rumors
are without any basis of fact.
Don't rock the business boat.
" . •,. ',. -..-.'.
T;
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE MUSIC TRADE REVIEW
REVIEW
PUBLISHED BY EDWARD LYMAN BILL, Inc.
President and Treasurer, C. L. Bill, 373 Fourth Ave., New York; Vice-President,
J. B. Spillane, 373 Fourth Ave., New York; Second Vice-President, Raymond Bill, 373
Fourth Ave., New York; Secretary, Edward Lyman Bill, 373 Fourth Ave., New York;
Assistant Treasurer, Win. A. Low.
J. B. SPILLANE, Editor
RAY BILL, B. B. WILSON, BRAID WHITE, Associate Editors
WILSON D. BUSH, Managing Editor
CARLETON CHACE, Business Manager
L. E. BOWERS, Circulation Manager
Executive and Reportorial Staif
EDWARD VAN HARLINGEN, V. D. WALSH, E. B. MUNCH, LEE ROBINSON, C. R. TIGHE,
EDWARD LYMAN BILL, SCOTT KINGWILL, THOS. W. BRESNAHAN, A. J. NICKLIN.
WESTERN DIVISION:
BOSTON OFFICE:
Republic Bldg., 209 So. State St., Chicago.
JOHN H. WILSON, 324 Washington St.
Telephone, Wabash S242-5243.
Telephone, Main 6950.
LONDON, ENGLAND: 1 Gresham Buildings, Basinghall St., D. C.
NEWS SERVICE IS SUPPLIED WEEKLY BY OUR CORRESPONDENTS
LOCATED IN THE LEADING CITIES THROUGHOUT AMERICA.
Published Every Saturday at 373 Fourth Avenue, New York
Entered as second-class matter September 10, 1892, at the post office at New York, N. Y.,
under the Act of March 3, 1879.
SUBSCRIPTION (including postage), United States and Mexico, $2.00 per year;
Canada, $3.50; all other countries, $5.00.
ADVERTISEMENTS, $6.00 per inch, single column, per insertion. On quarterly or
yearly contracts a special discount is allowed. Advertising pages, $150.
REMITTANCES, in other than currency forms, should be made payable to Edward
Lyman Bill, Inc.
Departments conducted by an expert wherein all ques-
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tions of a technical nature relating to the tuning,
regulating and repairing of pianos and player-pianos
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a r e dealt with, will be found in another section of
this paper. We also publish a number of reliable technical works, information concerning
which will be cheerfully given upon request.
Exposition Honors Won by The Review
Grand Prix
Paris Exposition, 1900 Silver Medal... .Charleston Exposition, 1902
Diploma...,. Pan-American Exposition, 1901 Gold Medal
St. Louis Exposition, 1904
Gold Medal—Lewis-Clark Exposition, 1905
LONG DISTANCE TELEPHONES—NUMBERS 5983—5083 MADISON SQ.
Connecting all Departments
Cable Address: "Elbill, New York"
Vol. LXX1II
NEW YORK, AUGUST 13, 1921
No. 7
SIGNS OF IMPROVING CONDITIONS
J
UDGING from reports coming from various sections of the
country, the general business situation is slowly but surely taking
a turn for the better. There is, of course, no strong revival apparent,
but the tendency toward improvement is to be welcomed as bearing
out predictions of a close to normal business during the Fall and
Winter.
In its review of the general trade situation for the past week,
Dun's Review says:
"With constructive forces in operation and a better sentiment
developing in different quarters, the commercial outlook seems one
of brighter promise. Gains "in activity, if not generally expected at
this season, are not wholly absent, and there is a more hopeful feel-
ing even in channels where actual transactions disclose no increase.
The conviction that fundamental conditions have been strengthened
by inevitable readjustments finds more frequent expression, and a
lessening of hesitation is now discernible in certain lines.
"Without departure from conservative and prudent policies,
some interests are beginning to anticipate forward requirements,
especially in textiles, and producers are benefiting from the change
of buyers' attitude. While instances where manufacturers are booked
well ahead remain the exception, the constant repeating of moderate-
sized orders, with requests for prompt deliveries, indicates that
many dealers' stocks have undergone depletion, and is believed to
foreshadow larger purchasing in the future."
THE TAX SITUATION
D
E S P I T E the strong efforts made by members of the music
industry and business men in many other lines to have some
sort of sales tax adopted by the Government as a substitute for the
present excise and excess-profit taxes, reports from Washington
indicate that the sales tax idea has very little chance of being carried
through.
It was to be assumed that certain interests, especially those not
burdened at present by excise taxes, would see, or pretend to see,
AUGUST 13, 1921
danger in the adoption of a general sales tax and fight the issue. In
many cases there was an apparent misunderstanding on the part of
its opponents regarding just what the sales tax would be and how
it would operate. There are some who even went so far as to declare
that it was an attempt of the big interests to shift the tax burden
to the consumer, always pictured as the poor man, overlooking
apparently the fact that the consumer pays all taxes anyhow, directly
or indirectly.
There is no question that the first referendum sent out by the
Chamber of Commerce of the United States to determine the senti-
ment regarding the repeal of excise taxes and the substitution of
the sales tax resulted in much harm through the fact of its am-
biguity. The National Chamber, following protests by the Music
Industries Chamber of Commerce and other organizations, recon-
sidered the matter and sent out a second referendum, which resulted
in an overwhelming vote favoring the repeal of war excise taxes and
the adoption of the substitute sales tax, but this move, though show-
ing the real sentiment of business men generally, came too late to
be really effective.
The thing for the members of the trade to consider, however,
is that, although the fight for the sales tax appears to be lost, the
industry must persist in its efforts to secure a certain measure of
relief from taxes in the new Revenue Bill, for otherwise proposals
for increases in excise taxes may prevail. This is no time for
sitting quiet and letting things take their course. There is real
danger impending that demands action on the part of every member
of the industry.
THE BANKS AND THE TRADE
T
HERE is apparently a growing inclination among bankers gener-
ally to realize the obligation that rests upon them to help busi-
ness wherever possible through the extension of loans at reasonable
rates of interest. The attitude of the bankers during the past year
has been anything but friendly in the main. Substantial business
enterprises with ample assets and conducted on sound principles
have reported time and again the refusal of banks to grant loans of a
size to which the business men felt that they were entitled. Although
the Federal Reserve Act was designed to provide for the discounting
of commercial paper, and to ease up the credit situation generally,
there have been all too many bankers who have regarded such paper
as of little or no value. Particularly has this been the case with
piano and talking machine paper.
Just now a number of bankers have displayed a willingness to
consider the needs of commercial interests, and to provide money
for developing such interests in suitable amounts and at what may
be considered fair rates. This new attitude is traceable to two causes
—first, the slow improvement in business generally and the passing
of the period of credit stringency, and, second, the action of the
Federal Reserve Board in urging that the banks take a new view of
commercial requirements and act accordingly.
This news will probably be welcomed by a number of music
merchants who have had rather disagreeable experiences with their
bankers during the past few months, especially those who have been
refused loans more than justified by their business standing. One
merchant, in fact, reported that his bank refused to make a tem-
porary loan of $1,000 with piano paper as collateral, although he had
maintained in the same bank a balance ranging from $2,500 to
$10,000. It is about time that members of the music industry
asserted themselves in banking circles. The internal credits of the
industry, and the solidness of its foundation, demand recognition.
Especially should the music merchant who holds a valuable dis-
tributing franchise for a particular trade product emphasize to the
banker the value of that franchise.
Banking is competitive just as is any other business. It is not a
bad plan to let the banker know occasionally that business men
realize the fact and are prepared to let the knowledge thereof guide
them in the maintenance of their banking arrangements. The bank-
ing business is the renting of money, and the business man who
makes use of the banker's wares, provided the collateral is right, is
the one who is doing the favor. It seems to be simply a case with
the banker, as with business men in other lines, of taking advantage
of the fact that the demand was heavier than the supply and for-
getting that when the situation changed some steady customers would
be mighty welcome. The situation has changed, and the bankers are
changing their tactics accordingly.

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