Music Trade Review
Issue: 1921 Vol. 73 N. 1 - Page 45
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JULY 2, 1921
THE MUSIC TRADE REVIEW
41
THE RELATIONS OF THE BANKER AND THE MERCHANT
The Importance of Closer Relations of the Merchant With the Banker the Subject of an In-
formative Article Written by E. H. Jennings, Secretary of the Sonora Phonograph Co.
In a recent issue of the Sonora Bell, the house
organ issued monthly by the Sonora Phonograph
Co., there appeared an interesting article en-
titled "The Relations of the Banker and the
Merchant," written by E. H. Jennings, secre-
tary of the company, who is well known in
financial circles. Mr. Jennings' article read as
follows:
"Many merchants, having had no banking con-
nections, except as depositors, in the past, now
regret their lack of foresight in not having in-
sured closer relations with one or more banks.
Merchants who did business with one or more
banks, even in a small way, find less difficulty in
facing tight situations than those doing busi-
ness solely on their own resources.
"It seems strange that, notwithstanding nearly
all self-made capitalists attribute much of their
early success to having been able to secure
good-sized loans from banks, there are still
many merchants laboring under the impression
that it is somewhat of a reflection on their busi-
ness ability, standing or credit to seek a loan.
"If everyone took this view there would be
no banks. It is the business of loaning money
that enables banks to exist and if nobody bor-
rowed money there would be no business for
the banks. Banks cannot pay interest to de-
positors for the use of their money if they in
turn cannot make good use of it by loaning it
and securing interest from borrowers.
"The time to make your acquaintance with a
bank is not when you are on the verge of finan-
cial embarrassment, but before such a stage is
reached, when you can see and convince others
that additional capital will pull you safely
through a crisis. The wisest course is to start
dealing with bankers when business is good and
times are normal. When there is no cloud on
the business horizon bankers are just as anxious
to loan money as the merchant is to borrow it,
but a merchant who has postponed business re-
lations with a bank until general conditions are
unsettled and he is in desperate need of funds
may find it rather difficult to secure the required
assistance from a bank.
"Bankers having known merchants and watch-
ing their progress for many years, knowing their
weak as well as their strong points, having
loaned them money time and again and had it
repaid, will undoubtedly give them the benefit
of doubts that they would withhold from others
of whom they know little or nothing.
"The relations of the banker and the merchant
should be frank and friendly. The man who is
held in high esteem by the community, who plays
fair and honest with everyone and who lets his
banker know that he has nothing to conceal,
will secure greater assistance when in financial
difficulties than one who the bankers think is
concealing something.
Do you realize that you can borrow money
from a bank in order to discount your bills and,
providing you can turn over your stock suffi-
ciently often, you may even make money on the
discount? Furthermore, you are making your
merchandise account one that is sought for by
manufacturers and jobbers and favored above
others.
"The most successful phonograph merchants
go to the bank for money to insure their holi-
day stock by buying during the Summer
months, paying interest to the bank for the use
of the money, but securing the cash discount on
the merchandise—all of which enables them to
do a good business during the holidays, when
everyone is buying phonographs and when many
dealers are losing sales because they did not
look ahead and stock up.
It should be remembered that the bank is
entitled to a fair average balance in return for
the privilege of depositing your money, drawing
of checks and the service rendered by an ex-
pensive clerical force. The payment of interest
for loans, being a fair exchange and a separate
transaction in itself, should be no reason why a
merchant should maintain only a small balance.
So long as a satisfactory balance is maintained,
the banks do not care how many checks you
draw. In fact, most banks prefer an active ac-
count to those for which the checks are large
but few."
COLUMBIA PATRIOTIC ENVELOPE
AN INTERESTING CUSTOMS DECISION
The Dealer Service department of the Colum-
bia Graphophone Co. has just completed an at-
tractive patriotic record envelope that can be
used to advantage by Columbia dealers in con-
Board of General Appraisers Holds That Im-
ported Cabinets Are Assessable at 25 Per Cent
Ad Valorem as "Parts of Phonographs"
Envelope Suitable for Patriotic Occasions
nection with all patriotic holidays. The design
is distinctive and the use of the envelope can-
not fail to furnish excellent publicity for the
dealer using it and for Columbia product as a
whole.
RECORD SALES CO. ORGANIZES
The Record Sales Co. has recently been
formed for the purpose of merchandising rec-
ords. This company is under the management
of A. J. Cryan and has opened New York
offices at 25 West Forty-second street.
The U. S. Board of General Appraisers in a
general decision upheld that imported talking
machines or phonograph cabinets are to be as-
sessed at the rate of 25 per cent ad valorem,
under paragraph 273 referring to "parts of
phonographs," instead of at the rate of 15 per
cent, under paragraph 176, as a manufacture in
chief value of wood.
The decision was handed down in a test case
brought by the Columbia Graphophone Co., who
claimed that the mechanism of the Grafonola is
complete before shipment to cabinet or furniture
factories for installation in the cabinet and
that, therefore, the cabinet should not be con-
sidered in a tariff sense as part of a grapho-
phone or phonograph. Judge Sullivan, of the
Customs Board, however, held that the cabinet
was a necessary part of the Grafonola when
offered for sale, and therefore upheld the Col-
lector's classification of imported cabinets as
"parts of phonographs."
TWO NEW PATHE WHOLESALERS
Two new wholesalers of Pathe products have
been added to the Pathe distributors list. They
are the Superior Manufacturing & Supply Co.,
506 North Third street, St. Louis, Mo., and the
Richmond Phonograph Co., 5 Grosvenor street,
Richmond, Va. Both these houses have effi-
cient distributing organizations which will be
devoted to the development of the prestige of
the products of the Pathe Freres Co.
fa
n
&
TO double
Vour Income
and the proposition could be proved
sound from every angle, you wouldn't
hesitate, would you? Of course not,
but do you realize that a talking machine
department can be made to provide
sufficient revenue to take care of the
overhead on your entire establishment ?
Thousands of other retail music mer-
chants have proved the above made
statement true and thousands of retail
music merchants have looked to The
Talking Machine World for guidance
in the matter of selecting the make of
talking machines they would handle, the
way they would map out their talking
machine department, etc.
The Talking Machine World is the
oldest and largest trade journal in the
world devoted exclusively to the talking
machine industry.
Some book, eh? Yes, and some encyclo-
pedia of the kind of information that
will positively double your income.
Don't miss your chance.
coupon now.
Send in the
TALKING MACHINE WORLD,
373 Fourth Ave., New York City.
Please enter my subscription for one year. I want to
learn how to double my income via a talking machine
department. Bill me $2 at your convenience to cover
cost of same.
Name
Firm
Street
City and State
JULY 2, 1921
THE MUSIC TRADE REVIEW
41
THE RELATIONS OF THE BANKER AND THE MERCHANT
The Importance of Closer Relations of the Merchant With the Banker the Subject of an In-
formative Article Written by E. H. Jennings, Secretary of the Sonora Phonograph Co.
In a recent issue of the Sonora Bell, the house
organ issued monthly by the Sonora Phonograph
Co., there appeared an interesting article en-
titled "The Relations of the Banker and the
Merchant," written by E. H. Jennings, secre-
tary of the company, who is well known in
financial circles. Mr. Jennings' article read as
follows:
"Many merchants, having had no banking con-
nections, except as depositors, in the past, now
regret their lack of foresight in not having in-
sured closer relations with one or more banks.
Merchants who did business with one or more
banks, even in a small way, find less difficulty in
facing tight situations than those doing busi-
ness solely on their own resources.
"It seems strange that, notwithstanding nearly
all self-made capitalists attribute much of their
early success to having been able to secure
good-sized loans from banks, there are still
many merchants laboring under the impression
that it is somewhat of a reflection on their busi-
ness ability, standing or credit to seek a loan.
"If everyone took this view there would be
no banks. It is the business of loaning money
that enables banks to exist and if nobody bor-
rowed money there would be no business for
the banks. Banks cannot pay interest to de-
positors for the use of their money if they in
turn cannot make good use of it by loaning it
and securing interest from borrowers.
"The time to make your acquaintance with a
bank is not when you are on the verge of finan-
cial embarrassment, but before such a stage is
reached, when you can see and convince others
that additional capital will pull you safely
through a crisis. The wisest course is to start
dealing with bankers when business is good and
times are normal. When there is no cloud on
the business horizon bankers are just as anxious
to loan money as the merchant is to borrow it,
but a merchant who has postponed business re-
lations with a bank until general conditions are
unsettled and he is in desperate need of funds
may find it rather difficult to secure the required
assistance from a bank.
"Bankers having known merchants and watch-
ing their progress for many years, knowing their
weak as well as their strong points, having
loaned them money time and again and had it
repaid, will undoubtedly give them the benefit
of doubts that they would withhold from others
of whom they know little or nothing.
"The relations of the banker and the merchant
should be frank and friendly. The man who is
held in high esteem by the community, who plays
fair and honest with everyone and who lets his
banker know that he has nothing to conceal,
will secure greater assistance when in financial
difficulties than one who the bankers think is
concealing something.
Do you realize that you can borrow money
from a bank in order to discount your bills and,
providing you can turn over your stock suffi-
ciently often, you may even make money on the
discount? Furthermore, you are making your
merchandise account one that is sought for by
manufacturers and jobbers and favored above
others.
"The most successful phonograph merchants
go to the bank for money to insure their holi-
day stock by buying during the Summer
months, paying interest to the bank for the use
of the money, but securing the cash discount on
the merchandise—all of which enables them to
do a good business during the holidays, when
everyone is buying phonographs and when many
dealers are losing sales because they did not
look ahead and stock up.
It should be remembered that the bank is
entitled to a fair average balance in return for
the privilege of depositing your money, drawing
of checks and the service rendered by an ex-
pensive clerical force. The payment of interest
for loans, being a fair exchange and a separate
transaction in itself, should be no reason why a
merchant should maintain only a small balance.
So long as a satisfactory balance is maintained,
the banks do not care how many checks you
draw. In fact, most banks prefer an active ac-
count to those for which the checks are large
but few."
COLUMBIA PATRIOTIC ENVELOPE
AN INTERESTING CUSTOMS DECISION
The Dealer Service department of the Colum-
bia Graphophone Co. has just completed an at-
tractive patriotic record envelope that can be
used to advantage by Columbia dealers in con-
Board of General Appraisers Holds That Im-
ported Cabinets Are Assessable at 25 Per Cent
Ad Valorem as "Parts of Phonographs"
Envelope Suitable for Patriotic Occasions
nection with all patriotic holidays. The design
is distinctive and the use of the envelope can-
not fail to furnish excellent publicity for the
dealer using it and for Columbia product as a
whole.
RECORD SALES CO. ORGANIZES
The Record Sales Co. has recently been
formed for the purpose of merchandising rec-
ords. This company is under the management
of A. J. Cryan and has opened New York
offices at 25 West Forty-second street.
The U. S. Board of General Appraisers in a
general decision upheld that imported talking
machines or phonograph cabinets are to be as-
sessed at the rate of 25 per cent ad valorem,
under paragraph 273 referring to "parts of
phonographs," instead of at the rate of 15 per
cent, under paragraph 176, as a manufacture in
chief value of wood.
The decision was handed down in a test case
brought by the Columbia Graphophone Co., who
claimed that the mechanism of the Grafonola is
complete before shipment to cabinet or furniture
factories for installation in the cabinet and
that, therefore, the cabinet should not be con-
sidered in a tariff sense as part of a grapho-
phone or phonograph. Judge Sullivan, of the
Customs Board, however, held that the cabinet
was a necessary part of the Grafonola when
offered for sale, and therefore upheld the Col-
lector's classification of imported cabinets as
"parts of phonographs."
TWO NEW PATHE WHOLESALERS
Two new wholesalers of Pathe products have
been added to the Pathe distributors list. They
are the Superior Manufacturing & Supply Co.,
506 North Third street, St. Louis, Mo., and the
Richmond Phonograph Co., 5 Grosvenor street,
Richmond, Va. Both these houses have effi-
cient distributing organizations which will be
devoted to the development of the prestige of
the products of the Pathe Freres Co.
fa
n
&
TO double
Vour Income
and the proposition could be proved
sound from every angle, you wouldn't
hesitate, would you? Of course not,
but do you realize that a talking machine
department can be made to provide
sufficient revenue to take care of the
overhead on your entire establishment ?
Thousands of other retail music mer-
chants have proved the above made
statement true and thousands of retail
music merchants have looked to The
Talking Machine World for guidance
in the matter of selecting the make of
talking machines they would handle, the
way they would map out their talking
machine department, etc.
The Talking Machine World is the
oldest and largest trade journal in the
world devoted exclusively to the talking
machine industry.
Some book, eh? Yes, and some encyclo-
pedia of the kind of information that
will positively double your income.
Don't miss your chance.
coupon now.
Send in the
TALKING MACHINE WORLD,
373 Fourth Ave., New York City.
Please enter my subscription for one year. I want to
learn how to double my income via a talking machine
department. Bill me $2 at your convenience to cover
cost of same.
Name
Firm
Street
City and State
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