Music Trade Review
Issue: 1906 Vol. 43 N. 16 - Page 4
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
MUSIC TRADE
KEVFW
EDWARD LYMAN BILL, - Editor and Proprietor
J. B. SPILLANE, Managing Editor
Executive and Reportorial Stall:
GBO. B. KULLEB.
W. N. TYLER.
F. II. THOMPSON.
EMILIB FBANCIR BAUDS.
L. B. BOWERS. B. BRITTAIN WILSON, War. B. WHITB. L. J. CHAMHERLIN. A. J. NICKLIN.
CHICAGO OFFICE:
B. P. VAN HARLINGBN. 195-197 Wabasb Ave.
TELEPHONES : Central 414 ; Automatic 8643-
PHILADELPHIA OFFICE: MINNEAPOLIS and ST. PAUL: ST. LOUIS OFFICE
BOSTON OFFICE:
EJBNEST L. WAITT, 278A Tremont St.
R. W. KAUFFMAN.
A. W. SHAW.
CHAS. N. VAN BUREN.
SAN FRANCISCO OFFICE: ALFRED METZQER, 425-427 Front S t
CINCINNATI, O.: NINA PUGH-SMITH.
LONDON, ENGLAND:
GO Baslnghall St., B. C.
W. Lionel Sturdy, Manager.
Published Every Saturday at 1 Madison Avenue, New York.
Entered at the New York Post Office as Second Class Matter.
SUBSCRIPTION, (Including postage), United States, Mexico, and Canada, $2.00 per
year ; all other countries, |4.00.
ADVERTISEMENTS, $2.00 per Inch, single column, per Insertion. On quarterly or
yearly contracts a special dlfcount is allowed. Advertising Pages, f 50.00; opposite
rending matter, $75.00.
REMITTANCES, in other than currency form, should be made payable to Edward
1-yman Bill.
Directory ol Piano The directory of piano manufacturing firms and corporation*
found on another page will be of great value, as a reference
Manufacturers for dealers and others.
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 Afettol.Lewls-Clark Exposition, 1905
LONG DISTANCE TELEPHONE—NUMBER 1745 GRAMERCY
Cable address: "Elbill N e w York."
NEW
YORK,
OCTOBER
20, 1 9 0 6
EDITORIAL
T
HIS is the banner fall for the piano man. The question that
every thoughtful business man is now asking himself is: How
long is this good business going to last? Is there any turning
point in sight, and can this upward movement continue long un-
checked? Undoubtedly the prodigious prosperity of this country
has had much to do with the rise of prices within our own borders,
and a serious setback, with a consequent lessening in demand, would
temporarily, at least, bring the prices of some products down from
their present elevated position. Yet in many respects the move-
ment is evidently a world-wide one, due to causes which are difficult
to trace. Hence a wise acceptance of the conditions and a prudent
recognition of their influence should be the course of the busy mer-
chant, leaving it to time to show how the remarkable advance in
values has been brought about.
To the piano merchant probably the chief source of satisfaction
afforded by this abnormal situation is the greater profit which re-
sults. For higher prices mean a larger total of sales, even without
HU actual increase in the volume of business done; and hence, even
though the ratio of profit remain unchanged, the actual returns arc
apt to be considerably larger. It is easy to get good prices with
such conditions abounding.
T
HE increased cost of piano production is causing a good deal
of serious consideration in this industry. Every particle of
stock which enters into the manufacture of musical instruments has
steadily advanced in cost, and judging from the conditions which
exist in other trades, there is no indication that there will be a slack-
ening of the prices of any of the great staples. On the contrary,
some of the best posted men predict a steady advance.
When considering these conditions the thought that comes to
mind is, how long is this upward tendency going to last, and where
will the break come, if it is to come?
If we study the various financial periodicals, some of the writ-
ings of important financial critics in the daily papers, we will find
that they arc inclined to predict a break somewhere in the near
future.
Now, is such a break imminent?
REVIEW
''T^HESE writers are fond of predicting a slump and explaining
X just why it should come, but our market conditions are fully
different to-day than those existing when the last financial depres-
sions came in 1873 and 1893. ^ n e environment of present day
affairs differs widely from the surroundings which caused panics in
former periods. Inasmuch as the piano business, like other enter-
prises, is conducted on the deferred payment plan, it is wise to
weigh matters well and figure whether we are going too far in
placing out instruments on three or four years time, and basing our
business plans accordingly, or whether it would be wise to contract
the lines of credit somewhat. Numerous conditions and circum-
stances peculiar to the present forward movement in finance and
industry and differing widely from the phenomena of former periods,
have encouraged at times, notably the excitement of 1901, belief
that the precedent of other decades might be repeated. There
is danger in an over-exploited credit. Certainly if our study of
the cause of commercial panics proves anything, it proves them to
be a logical result of business conducted too largely on the credit
plan.
B
UT the conditions which surround the American business men
of to-day differ materially from those when the last business
depression occurred. We have gained enormous assets since those
days. The great West, instead of being a borrowing part of the
Union, is loaning money to other sections. Farmers who a few
years ago were unable to raise interest on their mortgages, have not
only paid the mortgages and the accrued interest, but they have
comfortable sums in the bank, and are enabled to buy musical in-
struments, and to gratify their tastes in a hundred different ways
which seemed impossible a few years ago.
According to the views of some of the best posted men who
are not figuring that certain intervals of depression are bound to
occur, but seek actual causes of these depressions, there is nothing
at all in sight which should cause business men the slightest appre-
hension, or make them draw in their lines in the remotest way.
With the enormous crops, and the universal good prices at which
they are sold, with labor well employed, and no accumulation of
stock in the warehouses or factories, it means that the absorptive
power of the country keeps up with the producing capacity in almost
every industrial department.
I
F we look to the industry to which The Review directly appeals,
we will find that there never has been a time in the history of
the piano trade when general conditions were more healthy. Manu-
facturers are not accumulating stock this fall; on the contrary, they
are unable to supply the demands, and the dealers everywhere are
putting out these instruments at terms which are acceptable to them-
selves. In other words, there is no unhealthy forcing of goods on
the market, and when these conditions prevail generally, there is no
reason why serious consideration should be given the views of some
of the leading financial writers who inject a pessimistic vein into
their articles.
T
HERE is really no reason for such a prediction, and if we
spend too much time in figuring that the duration of the
cycle of prosperity is limited, it surely will be, because the more
this is emphasized in the daily papers, the more it will cause men to
hold back in making investments, and it is, after all, public opinion
in a measure which will create a depression. If men in every sec
tion of the country read pessimistic reports of the financial condition
of the Government, and of business, they are inclined to be over-
conservative in their actions, and the result would be that they
would not go ahead and exploit their enterprises in the same free-
handed manner that they would if this idea of pessimism were not
constantly thrown up at them. There is no crisis considered immi-
nent, and there is no necessity of creating such a sentiment, causing
men to withhold from an active participation in the good things that
are going round in a business sense. As long as it is certain that
credit is being prudently and conservatively extended, and that the
community as a whole is not indulging in speculation, there would
seem to exist no reasonable ground for argument that the experience
of past commercial panics might be repeated.
LONG the lines of the establishing of retail prices at which
pianos shall be offered to the public by the manufacturer, a
reader advances some very logical arguments. He savs that the
A
THE
MUSIC TRADE
KEVFW
EDWARD LYMAN BILL, - Editor and Proprietor
J. B. SPILLANE, Managing Editor
Executive and Reportorial Stall:
GBO. B. KULLEB.
W. N. TYLER.
F. II. THOMPSON.
EMILIB FBANCIR BAUDS.
L. B. BOWERS. B. BRITTAIN WILSON, War. B. WHITB. L. J. CHAMHERLIN. A. J. NICKLIN.
CHICAGO OFFICE:
B. P. VAN HARLINGBN. 195-197 Wabasb Ave.
TELEPHONES : Central 414 ; Automatic 8643-
PHILADELPHIA OFFICE: MINNEAPOLIS and ST. PAUL: ST. LOUIS OFFICE
BOSTON OFFICE:
EJBNEST L. WAITT, 278A Tremont St.
R. W. KAUFFMAN.
A. W. SHAW.
CHAS. N. VAN BUREN.
SAN FRANCISCO OFFICE: ALFRED METZQER, 425-427 Front S t
CINCINNATI, O.: NINA PUGH-SMITH.
LONDON, ENGLAND:
GO Baslnghall St., B. C.
W. Lionel Sturdy, Manager.
Published Every Saturday at 1 Madison Avenue, New York.
Entered at the New York Post Office as Second Class Matter.
SUBSCRIPTION, (Including postage), United States, Mexico, and Canada, $2.00 per
year ; all other countries, |4.00.
ADVERTISEMENTS, $2.00 per Inch, single column, per Insertion. On quarterly or
yearly contracts a special dlfcount is allowed. Advertising Pages, f 50.00; opposite
rending matter, $75.00.
REMITTANCES, in other than currency form, should be made payable to Edward
1-yman Bill.
Directory ol Piano The directory of piano manufacturing firms and corporation*
found on another page will be of great value, as a reference
Manufacturers for dealers and others.
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 Afettol.Lewls-Clark Exposition, 1905
LONG DISTANCE TELEPHONE—NUMBER 1745 GRAMERCY
Cable address: "Elbill N e w York."
NEW
YORK,
OCTOBER
20, 1 9 0 6
EDITORIAL
T
HIS is the banner fall for the piano man. The question that
every thoughtful business man is now asking himself is: How
long is this good business going to last? Is there any turning
point in sight, and can this upward movement continue long un-
checked? Undoubtedly the prodigious prosperity of this country
has had much to do with the rise of prices within our own borders,
and a serious setback, with a consequent lessening in demand, would
temporarily, at least, bring the prices of some products down from
their present elevated position. Yet in many respects the move-
ment is evidently a world-wide one, due to causes which are difficult
to trace. Hence a wise acceptance of the conditions and a prudent
recognition of their influence should be the course of the busy mer-
chant, leaving it to time to show how the remarkable advance in
values has been brought about.
To the piano merchant probably the chief source of satisfaction
afforded by this abnormal situation is the greater profit which re-
sults. For higher prices mean a larger total of sales, even without
HU actual increase in the volume of business done; and hence, even
though the ratio of profit remain unchanged, the actual returns arc
apt to be considerably larger. It is easy to get good prices with
such conditions abounding.
T
HE increased cost of piano production is causing a good deal
of serious consideration in this industry. Every particle of
stock which enters into the manufacture of musical instruments has
steadily advanced in cost, and judging from the conditions which
exist in other trades, there is no indication that there will be a slack-
ening of the prices of any of the great staples. On the contrary,
some of the best posted men predict a steady advance.
When considering these conditions the thought that comes to
mind is, how long is this upward tendency going to last, and where
will the break come, if it is to come?
If we study the various financial periodicals, some of the writ-
ings of important financial critics in the daily papers, we will find
that they arc inclined to predict a break somewhere in the near
future.
Now, is such a break imminent?
REVIEW
''T^HESE writers are fond of predicting a slump and explaining
X just why it should come, but our market conditions are fully
different to-day than those existing when the last financial depres-
sions came in 1873 and 1893. ^ n e environment of present day
affairs differs widely from the surroundings which caused panics in
former periods. Inasmuch as the piano business, like other enter-
prises, is conducted on the deferred payment plan, it is wise to
weigh matters well and figure whether we are going too far in
placing out instruments on three or four years time, and basing our
business plans accordingly, or whether it would be wise to contract
the lines of credit somewhat. Numerous conditions and circum-
stances peculiar to the present forward movement in finance and
industry and differing widely from the phenomena of former periods,
have encouraged at times, notably the excitement of 1901, belief
that the precedent of other decades might be repeated. There
is danger in an over-exploited credit. Certainly if our study of
the cause of commercial panics proves anything, it proves them to
be a logical result of business conducted too largely on the credit
plan.
B
UT the conditions which surround the American business men
of to-day differ materially from those when the last business
depression occurred. We have gained enormous assets since those
days. The great West, instead of being a borrowing part of the
Union, is loaning money to other sections. Farmers who a few
years ago were unable to raise interest on their mortgages, have not
only paid the mortgages and the accrued interest, but they have
comfortable sums in the bank, and are enabled to buy musical in-
struments, and to gratify their tastes in a hundred different ways
which seemed impossible a few years ago.
According to the views of some of the best posted men who
are not figuring that certain intervals of depression are bound to
occur, but seek actual causes of these depressions, there is nothing
at all in sight which should cause business men the slightest appre-
hension, or make them draw in their lines in the remotest way.
With the enormous crops, and the universal good prices at which
they are sold, with labor well employed, and no accumulation of
stock in the warehouses or factories, it means that the absorptive
power of the country keeps up with the producing capacity in almost
every industrial department.
I
F we look to the industry to which The Review directly appeals,
we will find that there never has been a time in the history of
the piano trade when general conditions were more healthy. Manu-
facturers are not accumulating stock this fall; on the contrary, they
are unable to supply the demands, and the dealers everywhere are
putting out these instruments at terms which are acceptable to them-
selves. In other words, there is no unhealthy forcing of goods on
the market, and when these conditions prevail generally, there is no
reason why serious consideration should be given the views of some
of the leading financial writers who inject a pessimistic vein into
their articles.
T
HERE is really no reason for such a prediction, and if we
spend too much time in figuring that the duration of the
cycle of prosperity is limited, it surely will be, because the more
this is emphasized in the daily papers, the more it will cause men to
hold back in making investments, and it is, after all, public opinion
in a measure which will create a depression. If men in every sec
tion of the country read pessimistic reports of the financial condition
of the Government, and of business, they are inclined to be over-
conservative in their actions, and the result would be that they
would not go ahead and exploit their enterprises in the same free-
handed manner that they would if this idea of pessimism were not
constantly thrown up at them. There is no crisis considered immi-
nent, and there is no necessity of creating such a sentiment, causing
men to withhold from an active participation in the good things that
are going round in a business sense. As long as it is certain that
credit is being prudently and conservatively extended, and that the
community as a whole is not indulging in speculation, there would
seem to exist no reasonable ground for argument that the experience
of past commercial panics might be repeated.
LONG the lines of the establishing of retail prices at which
pianos shall be offered to the public by the manufacturer, a
reader advances some very logical arguments. He savs that the
A
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