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REVIEW
THE
VOL. LXXX. No. 20 Published Every Satwday. Edward Lyman Bill, Inc., 383 Madison Ave., New York, N.Y., May 16, 1925
""KitvLr" 111 "
Backers of Anti-Instalment Campaign
Continue Their Activity
Reports From Washington State Those Behind Propaganda Have Appealed for Government Aid and Co-
operation—B. C. Forbes, Well-known Business Authority, in Spite of Requests to Aid
Campaign, Comes Out in Defense of This Method of Retail Selling
I
N a leading article a few weeks ago The
Review called the attention of the music in-
dustry to the persistent propaganda being
circulated through newspapers and other chan-
nels in opposition to the selling of commodities
of various sorts on the instalment basis. Em-
phasis was laid upon the fact that for their own
protection those industries in which instalment
selling hold a dominant position should dis-
tribute counter propaganda or at least work
to prove that the statements made in opposi-
tion to the practice, apparently by individuals
with ulterior motives, are based on false pre-
mises.
Additional importance was given to the prop-
aganda by the fact that its sponsors have ap-
pealed to the Federal Government to take ac-
tion to the end of investigating, and perhaps
curtailing the practice of instalment selling. All
the old arguments have been presented to Gov-
ernment departments in letters of protest, and
the claim is even made that that method of sell-
ing on time discriminates against the cash cus-
tomer. Just now it appears as though Wash-
ington was not particularly anxious to enter
into the discussion, but there is no telling when
some official or some bureau may accept the
protest against instalment selling seriously, and
decide to look into the matter. When that time
conies industries such as the piano trade, where
the bulk of the business is done on the instal-
ment basis, must be prepared to fight for their
own interests.
Just how energetic and persistent is the cam-
paign against instalment • buying was empha-
sized most impressively last week.
R. C.
Forbes, the prominent writer on business sub-
jects, saw fit in all fairness to come to the sup-
port of the instalment method of selling after
declaring that several responsible business men
had urged him to come out with a "sweeping
condemnation of the whole system." He also
stated that similar requests had come from la-
bor sources.
"I can't do it," wrote Mr. Forbes.
"Nobody can accuse me of encouraging ex-
travagance. Having been raised in Scotland,
I had economy drummed into me by word and
example. I was taught to hate debt and I have
never during my whole life gone into debt—
except for strictly legitimate business purposes.
I have always associated avoidable debts with
unhappiness. I have been so fortunately cir-
cumstanced that I have never had occasion to
buy anything on the deferred payment plan,
unless you would call buying a home and rais-
ing part of the price by a mortgage a deferred
payment purchase—and that debt later was paid
off".
APPROXIMATELY
80 per cent of the
•**• retail piano business is done upon the
instalment basis. Bearing this fact in mind,
it can easily be seen that the present cam-
paign against this method of selling is of
direct and vital importance to every mem-
ber of the music industries. If this propa-
ganda is permitted to continue without some
effective steps being taken to check it, it is
likely to work irreparable injury to the
trade. What is being done by the organized
activities of the industries to refute the mis-
statements and fallacies upon which this
campaign is
based?—EDITOR.
"But there arc many persons not in a posi-
tion to pay cash for important purchases. These
1 cannot unreservedly condemn. Of course, it
doubtless would be a happier world if every-
body had enough money to pay for everything
the minute it is bought. Cash payments, where-
cver possible are to my mind preferable. It
is inadvisable to go into debt—apart from busi-
ness—when you can conveniently stay out of
it.
1 know an Italian barber who has bought a
piano on the instalment plan. Foolish! Kidicu-
lous! you say. Let's see. Music meant much
to his parents and it has meant much to him.
It enriches his life in a way that nothing else
can. He has two young children. Rather than
have his children deprived of music, he and his
wife are prepared to make very real sacrifices.
They are willing to live in a very modest flat:
they are willing to scrimp on their clothes; he
is willing to carry his frugal lunch with him
every day; both parents arc willing to go with-
out any vacation to speak of; he is willing to
cut down his smoking.
"Is it right that I or any one else should
rebuke this barber for bringing music into the
life of his children at an early age? Should I
or any one else tell him he should let his home
go without music until he was able to pay cash
for a piano, by which time his children might
br beyond the impressionable age?
"I wouldn't have the heart to do it, would
you?
"Hasn't the United States Government itself
stimulated instalment payments? Were we not
taught to buy Liberty Bonds on the instalment
plan? Aren't farmers and others granted Gov-
ernment-sponsored loans to be paid on the in-
stalment plan?
"We pay for our life insurance on the instal-
ment plan."
Regardless of what other industries in which
instalment selling holds a prominent place may
do in the matter, the question is just what are
the music industries going to do to offset this
propaganda which, if carried to a successful
conclusion, will affect approximately 80 per cent
of its retail business.
Il is quite impossible to carry on a successful
piano business on a strictly cash basis, and^this
is not theory for the reason that well organized
retail houses have tried it and failed. Just now
the music industry is going through what may
be termed an off year with buying in all lines
showing a lull, and it is certainly worth while
righting for the business that is still available.
Were there any sound reasons for the attack
on instalment selling it might be well to give
the matter consideration, but only recently, as
pointed out in The Review, one column of the
New York Times contained an attack on the
system by a union official, while another col-
umn of the same edition of the paper, carried
the statement that savings bank deposits as
of April 1 had shown an increase of over $500,-
000,000 over the same month of 1924. These
figures certainly cannot be taken to indicate
that the workers of the country are facing bank-
ruptcy as a result of instalment obligations,
for savings banks deposits represent chiefly the
savings of the working class.
Perhaps the Music Industries Chamber of
Commerce may find time between its pre-con-
vention work and the making of surveys in
the trade for outside interests, to look into this
campaign directed against the business of its
supporters.