Music Trade Review
Issue: 1915 Vol. 60 N. 1 - Page 5
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE MUSIC TRADE REVIEW
THE NEED OF DEFINITE ACTION.
(Continued from page 3.)
As I view the music trade situation at the threshold of 1915, it lacks one great essential, and that
is a systematic and definite selling basis which should be acceptable to men of advanced business
views.
It must be plain to all that the failures of the past year have been occasioned by a laxity and
looseness in the credit branch of the industry which has brought about crashes which are far reach-
ing, for no man can deny that the big failures in the trade reach out in ever-widening circles, affect-
ing far more interests than those directly involved.
After the revelations of the past few months, can any man who is posted deny that certain sec-
tions of the piano trade are under suspicion by the directors of financial institutions? Can anyone
deny that the conduct of certain individuals who have worked the note mills overtime has really
merited this suspicion? Is it wrong to deny the fact that the innocent must suffer at times for the
guilty? Have not the methods of the few tainted the good work of the many? It is useless to deny it,
and we are only fooling ourselves when we use soft, honeyed phrases and talk about how the piano
trade has stood up like a rock under the most adverse circumstances. Certain sections of the trade have
stood up — they have borne their own burdens and those imposed through the unwise actions of
others. The collapse of the weak interests has been brought about by no other cause than unwise
credits.
Of course, no one can deny that if the business was conducted on a cash basis ufaf U$ .-voUinje,
would shrink to jack-knife proportions, but the essence of every profitable transaction 'Should foo.io'
surround it with proper safeguards, and can it be safeguarded when manufacturers, ;fei3?ifa£ ij*at
the dealer cannot pay for one carload of pianos, tells him to order two—because that woiitd/gfw^im
larger merchandise with which to juggle, so that he may be able to meet his obligatfQtiLsr'fqfttfr -ftn,?
Wrong, fundamentally wrong.
' '*"•"• :
The first thing to do is to make every sale genuine, so that purchases of pianos are not made on
the basis of a paper flotation, but on the basis of a genuine transaction.
The new reserve banking system will force out of action padded sales settled for by an endless
chain of notes.
Let us not discuss the length of time on which pianos should be sold. That can be regulated
easily by the manufacturers; but what I do affirm is this, the necessary action so that dealers, when
they give notes, have given their indorsement to a piece of paper which means pay on Hie date in-
dicated and not to place their names on paper which means an indefinite system of renewals.
Everyone who realizes the changed conditions in this trade knows that, in their anxiety to sell,
some manufacturers have swept all business prudence aside, have rushed to the edge of the abyss
and have plunged in. This should not be. Piano credit should be the best safeguarded in the
world. Piano paper should be far better than the average collateral held by bankers and trust
companies upon which millions of dollars are loaned for various purposes. It is far more valuable
and desirable for loans than the majority of stocks which are subject to such violent fluctuations. It
has more back of it than any merchandise which I know of, provided the piano is properly priced and
is sold in its grade. There is no good reason why there should be the taint of suspicion in the slightest
degree upon the piano industry.
I say no good reason. There are, of course, reasons—reasons brought about through the viola-
tion of sound business ethics.
Why should not a dozen of the largest piano producing houses get together and formulate a
definite plan as to credits, time and selling conditions?
It should be easy to work out a plan acceptable to all, and so fair that business men would hail
it as a sheet anchor of safety. It is simply a matter of details and a get-together policy. Then the
supply industry should follow along the same lines, for it is a known fact that some supply manu-
facturers have given credit not warranted by the conditions to men who have been an unfair com-
peting force.
How can a man who pays his bills compete with a man who does not? I do not know, and the
maintenance in business of men who do not pay their bills at once creates an unfair competition for
the men who meet their obligations with exactness.
The piano trade, like others, needs money and it can secure all that it requires for its legitimate
purposes if the leaders of the industry would formulate a concerted and definite plan against un-
wise policies which have, to a certain extent, had the effect to undermine the confidence of men who
should never question its staunchness and reliability.
There is no use of mincing matters. We may as well speak plainly, and I propose that this trade
newspaper institution shall stand for those principles which make for business advance—we shall sup-
port those policies which aid trade soundness and to increase confidence in an industry which is en-
titled, by reason of its inherent stability, to the fairest consideration of all.
Many of us will cheerfully admit errors which we have made in the past, but why face to-mor-
row—that is, the New Year, adhering to the same policies which have proven
detrimental to our
business interests in the days agone?
/7 <: \\
The get-together policy—a policy of centralized action governing fl ^ \ ^ ^
/-N
credits—should be established at once, and in my opinion this trade \($)]/M//-Q/1^TO^
is now ripe for such a move. We face the to-morrow — never mind ^VQvjwjWf Uf Wi nfl/rUIvi
the yesterday.
^
THE MUSIC TRADE REVIEW
THE NEED OF DEFINITE ACTION.
(Continued from page 3.)
As I view the music trade situation at the threshold of 1915, it lacks one great essential, and that
is a systematic and definite selling basis which should be acceptable to men of advanced business
views.
It must be plain to all that the failures of the past year have been occasioned by a laxity and
looseness in the credit branch of the industry which has brought about crashes which are far reach-
ing, for no man can deny that the big failures in the trade reach out in ever-widening circles, affect-
ing far more interests than those directly involved.
After the revelations of the past few months, can any man who is posted deny that certain sec-
tions of the piano trade are under suspicion by the directors of financial institutions? Can anyone
deny that the conduct of certain individuals who have worked the note mills overtime has really
merited this suspicion? Is it wrong to deny the fact that the innocent must suffer at times for the
guilty? Have not the methods of the few tainted the good work of the many? It is useless to deny it,
and we are only fooling ourselves when we use soft, honeyed phrases and talk about how the piano
trade has stood up like a rock under the most adverse circumstances. Certain sections of the trade have
stood up — they have borne their own burdens and those imposed through the unwise actions of
others. The collapse of the weak interests has been brought about by no other cause than unwise
credits.
Of course, no one can deny that if the business was conducted on a cash basis ufaf U$ .-voUinje,
would shrink to jack-knife proportions, but the essence of every profitable transaction 'Should foo.io'
surround it with proper safeguards, and can it be safeguarded when manufacturers, ;fei3?ifa£ ij*at
the dealer cannot pay for one carload of pianos, tells him to order two—because that woiitd/gfw^im
larger merchandise with which to juggle, so that he may be able to meet his obligatfQtiLsr'fqfttfr -ftn,?
Wrong, fundamentally wrong.
' '*"•"• :
The first thing to do is to make every sale genuine, so that purchases of pianos are not made on
the basis of a paper flotation, but on the basis of a genuine transaction.
The new reserve banking system will force out of action padded sales settled for by an endless
chain of notes.
Let us not discuss the length of time on which pianos should be sold. That can be regulated
easily by the manufacturers; but what I do affirm is this, the necessary action so that dealers, when
they give notes, have given their indorsement to a piece of paper which means pay on Hie date in-
dicated and not to place their names on paper which means an indefinite system of renewals.
Everyone who realizes the changed conditions in this trade knows that, in their anxiety to sell,
some manufacturers have swept all business prudence aside, have rushed to the edge of the abyss
and have plunged in. This should not be. Piano credit should be the best safeguarded in the
world. Piano paper should be far better than the average collateral held by bankers and trust
companies upon which millions of dollars are loaned for various purposes. It is far more valuable
and desirable for loans than the majority of stocks which are subject to such violent fluctuations. It
has more back of it than any merchandise which I know of, provided the piano is properly priced and
is sold in its grade. There is no good reason why there should be the taint of suspicion in the slightest
degree upon the piano industry.
I say no good reason. There are, of course, reasons—reasons brought about through the viola-
tion of sound business ethics.
Why should not a dozen of the largest piano producing houses get together and formulate a
definite plan as to credits, time and selling conditions?
It should be easy to work out a plan acceptable to all, and so fair that business men would hail
it as a sheet anchor of safety. It is simply a matter of details and a get-together policy. Then the
supply industry should follow along the same lines, for it is a known fact that some supply manu-
facturers have given credit not warranted by the conditions to men who have been an unfair com-
peting force.
How can a man who pays his bills compete with a man who does not? I do not know, and the
maintenance in business of men who do not pay their bills at once creates an unfair competition for
the men who meet their obligations with exactness.
The piano trade, like others, needs money and it can secure all that it requires for its legitimate
purposes if the leaders of the industry would formulate a concerted and definite plan against un-
wise policies which have, to a certain extent, had the effect to undermine the confidence of men who
should never question its staunchness and reliability.
There is no use of mincing matters. We may as well speak plainly, and I propose that this trade
newspaper institution shall stand for those principles which make for business advance—we shall sup-
port those policies which aid trade soundness and to increase confidence in an industry which is en-
titled, by reason of its inherent stability, to the fairest consideration of all.
Many of us will cheerfully admit errors which we have made in the past, but why face to-mor-
row—that is, the New Year, adhering to the same policies which have proven
detrimental to our
business interests in the days agone?
/7 <: \\
The get-together policy—a policy of centralized action governing fl ^ \ ^ ^
/-N
credits—should be established at once, and in my opinion this trade \($)]/M//-Q/1^TO^
is now ripe for such a move. We face the to-morrow — never mind ^VQvjwjWf Uf Wi nfl/rUIvi
the yesterday.
^
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