Music Trade Review

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ONE HUNDRED AND TWO PAGES
THE
REWH¥
fflJJIC TRADE
V O L . X L V . N o . 2 2 Published Eyciy Saturday by Eiwatd Lyman Bill it I Madison Ave., New York, November 30.1907.
WHAT THE DEALERS SAY OF TRADE CONDITIONS
Another Batch of Letters Showing That Piano Men Do Not View the Trade Through Indigo-
Hued Glasses—Some Opinions Worth Reading—Progressive Men Are Pushing Hard for
Trade—Not Alarmed at Existing Conditions—Read What the Men at the Retail End of the
Business Say and Push for Trade With Renewed Vigor.
cash. If the present stringency has a tendency
to compel a more conservative course among cer-
tain dealers and manufacturers and larger pay-
ments on instalments it may in the end prove a
blessing in disguise. Yours very truly,
T H E GUEST PIANO CO.,
By Schlichter.
against it is not only a hopeless pessimist but is
St. Louis, Nov. 22, 1907.
Omaha, Neb., Nov. 21, 1907.
mentally constipated in the worst form.
Edward Lyman Bill, New York.
Edward Lyman Bill, New York.
Speaking for our company, we began cleaning
My Dear Mr. Bill—Answering yours of the 20th
Dear Sir—Answering your inquiry regarding
inst., we, believe the country has arrived at the up in December, 190G, right in the midst of the my views on the present conditions in our local-
natural readjustment period following ten years largest business in the history of this house. As ity, I will say that early in the spring we began
of unparalleled prosperity. As usual the result a result, we are in the healthiest condition pos- cleaning house by repossessing all the slow pay
of periods of great prosperity is extravagant liv- sible for a piano house to be in. Instalment leases and replaced them by larger down and
ing and business expenses, high prices and over- ledgers are in excellent condition; stock and larger per month payment leases. Collections were
expansion of credit. The present climax should fixed charges down to the minimum; no unwieldly watched as closely as our sales. This makes our
contracts outstanding. We don't owe a dollar, collections as good as last year's, if not better.
be divided into two classes:
and have a large cash balance in bank. Collec- This also gives us the courage you admonish.
First, the money situation;
tions have fallen off slightly, but are really good,
Second, the credit situation.
Therefore we are optimistic; we are also sorry
We think the money situation will right* itself because our credit and collection department is for the dealers who made nothing down and
after the turn of the year, and about February thoroughly organized and on the alert.
nothing per month leases. They are difficult com-
We are pushing for business just as strenu- petition, but we are always looking for the day
or March money will be fairly easy, but there's
no getting around the fact that our financial sys- ously as ever, only for a better class of business, of reckoning to even up, for this class of busi-
tem needs a good overhauling. I am simply a with a better grade of salesmen. Others are ness is practically "long-shot gambling" and will
child in the kindergarten school of finance, welcome to the "Nothing down—less a month— not fit the one price piano houses. Therefore if
therefore I would not have the audacity to tell teach—tune—take back in six months" sales (?). this "mind panic" hits some of the aforesaid
the high-school scholars of finance that the only The piano industry and business generally will L. S. G's. it will be to the regular and safe deal-
cure is a central government bank, of which a be a great deal better off mentally, morally and ers like a physic to the genus homo, and we will
postal savings system should be one of the financially if conservative, experienced manufac- all feel better for it. Our state is blessed with
branches or an elastic asset currency plan in con- turers and retailers would only begin weeding $92,000,000 worth of grain, to say nothing of the
nection with the present banking system, etc. out the weak, inexperienced fellows, and induce millions of other farm products, so we are as-
This is a matter for Congress, aided by sugges- them to engage in farming. Very truly yours, sured of three square bucketfuls per diem; also
tions from the ablest financiers in America to
the bulk of our farmers are bankers (own bank
E. A. KlESELHOBST.
wrestle with, and I believe is the most important
stock) and very little mortgages except the cost
question now before the country.
to keep their automobiles in repair, so you see
Burlington, Iowa, Nov. 22, 1907.
we have a little of your courage on tap.
The credit situation will probably take at least Editor Music Trade Review, New York.
Dear Sir—You ask for our opinion on the
a year to adjust itself, provided crops continue
Yours truly, A. HOSPE, President.
good and reckless banking and business methods financial situation in our locality. In our opin-
St. Louis, Mo., Nov. 21, 1907.
are curtailed. Banks and their depositors, manu- ion, the present flurry is a "manufactured panic,"
facturers, jobbers, retailers and consumers must gotten up, probably, by interested parties to de- Music Trade Review, New York.
Dear Sir—In answer to your kind favor of the
operate on a reciprocal basis in order to reduce press the stock market and incidentally discredit
the vast amount of paper or credit inflation, thus the president's policy. When we stop to con- 12th, beg to state that business is not as brisk
minimizing the number of possible commercial sider that there is over $900,000,000 of gold in as we should like to see it. Same is caused
the U. S. Treasury, with probably $100,000,000 by the flurry in the financial world. This, how-
failures.
Close observers are not alarmed at the existing more coming over from Europe, and add to this ever, can only be temporary as the country is in
situation, for it really hasn't a parallel in the the fact that on a conservative basis crops to a flourishing condition, and we feel most con-
history of the country. Crops and the prices the value of over $6,000,000,000 must be mar- fident in the business future. Beg, however, to
thereof have been good. Railroad and manufac- keted this fall and winter, together with our add that we are extremely careful and cautious
turing earnings, both gross, and even net, have other natural resources, it puts our country on a in all our transactions and are doing a very con-
been excellent. Labor employed full time at financial foundation that is absolutely unassail- servative business. We are giving much attention
good wages up to almost the last minute. The able. The west was never in better shape finan- to our collections and find everything on a par
country on a gold basis and no trade balance cially, and the prospects for fall and winter busi- with last year. Yours very truly,
ness were never better, although there is no de-
BOLLMAN BROS. PIANO CO.,
against us in Europe, etc.
nying
that the shortage of currency and the re-
OTTO BOLLMAN, Pres.
Students of financial and business conditions
realized that a slowing up had to be called and fusal of the banks in some localities to pay cur-
Galesburg, 111., Nov. 21, 1907.
began shaping up their affairs many months ago, rency on checks, has caused the timid ones to
but to the majority this climax came like a flash hesitate and put off buying, and is affecting col- Edward Lyman Bill, New York City.
Dear Sir—Collections are not materially worse
of lightning and roar of thunder out of a clear lections more or less. This, however, we believe
sky; hence the "mental panic" and rapid hoard- is only temporary, and as soon as the farmers with us, generally speaking, except at large cen-
ing of money. Luckily the banks acted quickly get returns for their crops—which are now being ters. This is a stock brokers and bank panic,
marketed—currency will flow back into its nat- and the worst feature has been the crowding of
and staved off a real panic.
ural
channels and business will resume its nat- manufacturers to fight for instant cash. While
Now that the people have had time to reflect
some banks and manufacturers have been calm,
ural
course.
they will probably not be so anxious to withdraw
doing what they could to help all and each other
and hoard their money when the time limits ex-
Our business is holding its own, and, accord- over the temporary flurry, others resemble the
pire. Good times are going to continue after the ing to present indications, our November sales mad crowd in a run on the bank, kicking and
readjustment and rest-up, and I believe will last will be larger than for 1906. We are particularly fighting like maniacs regardless of who else is
longer next time because the lessons to be gratified at. the increase in grand piano and pianola crushed, so they get their money. The farmers
learned now will put us on our guard in the piano sales. Collections are somewhat slower, know nothing of a panic, and for that reason
future. America is the land that overflows with and we have been obliged in some instances to
milk, cream and honey. The man who beta accept 60-day certificates of deposit in lieu of
(Contitmecl on page 37.)