Music Trade Review

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THE MUSIC TRADE REVIEW
5
THE VALUE OF PROMPT COLLECTIONS.
(Continued from page 3.)
There is no reason why the piano business should not be run on an easy and frictionless basis.
There is no good reason why it should be subjected to bumps and bruises. On the contrary,
it should be conducted so that manufacturers, dealers and financial institutions should all be satis-
fied with the results.
It comes back to the question of good, clean-cut, up-to-the-minute business management—of
making good sales and making good collections.
The leases in most cases can be handled locally because piano leases should represent the class
of commercial security which is reasonably acceptable to financial agents everywhere, particularly
if this paper carries upon its face the name of reputable pianos.
Much depends upon the class of piano paper, particularly in discounting it.
Piano paper containing the names of instruments whose origin is not traceable to.a definite
source must necessarily possess uncertain valuation; but good piano paper should be standardized,
and it supplies a fine security which should be sought by financial institutions.
Money for the piano business must come from outside sources, and so must the money for
any other business for that matter.
Every successful business requires more money for its development than its immediate profits
can supply. Therefore, the cash to keep it growing must come from outside.
Now, if men can make the right kind of a showing, they should have no trouble in obtain-
ing reasonable financial assistance.
The whole subject gets back to one of business management.
So many piano merchants endanger their own business future, become discredited by manu-
facturers and at banks, simply through rank carelessness and not through intentional wrong doing.
The question of piano values is a broad one, and it is a field which has many phases which
are open to interesting discussion; but no matter from which angle you view- it, you get back to
the fundamental basis, and that is, pianos sold to good parties whose ability to pay each month
is proven by the regular receipts, as revealed by an examination of the piano merchant's accounts.
Such paper becomes, to use a colloquial term, gilt edged, and it will not go begging at the banks.
I should say that piano merchants could not exercise too great care in their sales and in their
collections, then they would not be asking favors which are unreasonable from the manufacturers
who are selling them.
In the local towns and cities throughout America there is always plenty of idle capital which
finds its avenues of distribution at the local banks. These banks in turn are interested in placing
out money in channels where they have the assurance that it is well protected.
No man can get a guarantee beyond a certain point; but a reasonable assurance, as proven by
the local merchant's piano account, would prove satisfactory in most cases. It would seem to me,
therefore, that piano men should exercise greater care in the collection end of their business.
No man should fool himself with the idea that he has large and expansive assets, when the
stability of these assets is not proven with the regularity of payments which in a large degree deter-
mine their actual value.
Show me a house that is up to date on its piano leases and collections, and I will show you a
house that is asking no special favors, because it gets what it wants
within reason. It is entitled to courtesies, according to mercantile cus-
toms, and it receives them. Show care, system and exactness, and there
will be a much lessened reason for grumbling. Try it out and see.
heretofore it has required at least three or four years to complete
the canvass and publish the data. This early publication of figures
can only be made possible through the proper framing up of the
questions to be put to manufacturers. If they are so complete
as to cover every detail of the business and receive the considera-
tion of the manufacturers to whom they are submitted, the efforts
and aims of the Chief of the Bureau of Manufactures and his
assistants will be attained within the time specified.
This is the first time in the history of the music trade industry
that the co-operation of manufacturers in the music trade industry
has been sought by the United States officials, in advance of the
issuance of the usual circulars, and it is a compliment to The
Reviewthat it has been selected to convey this important message.
P
ROM INK NT merchants in all lines of business in New York
City are manifesting.the strongest opposition to the Trades
Commission Bill suggested by President Wilson as a corrective
measure in connection with the excesses of Big Business and which
was introduced in Congress recently.
The bill's references to incriminating testimony is also causing
concern, though, on the whole, the merchants think that many
features of the bill are contrary to the Constitution. For this
reason they think that it will ultimately be kept off the national
statute books.
It is evident that the Senators having charge of the bill have
their ears to the ground, for several meetings were held this week
in Washington with the object of amending this measure—restrict-
ing its publicity features so that it would not operate to disclose
important business secrets to competitors such private information
as lists of customers and trade practices.
It is understood that copies of the bill will be sent out by the
committee to experts, and particularly to the witnesses who ap-
peared at the hearing last year, who will be invited to give sug-
gestions for changes where necessary.