Music Trade Review
Issue: 1925 Vol. 80 N. 18 - Page 3
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
REVIEW
THE
Copies 10 Cents
VOL. LXXX. No. 18 Published Every Saturday. Edward Lyman Bill, Inc., 383 Madison Ave., New York, N. Y., May 2, 1925 Single $2.00
Per Year
Campaign Against Instalment Selling
Based on Fallacies
Consistent Campaign in Daily Press Charging Abuse of This Method of Merchandising and Declaring It
a Menace to the Credit Stability of the Country, Disregards a Number of Factors Which
Refute Directly the Injurious Effects Attributed to It
A
W E L L - D I R E C T E D and insistent cam-
paign against instalment selling is being
conducted throughout the country at the
present time. Behind it are certain groups of
banks, certain large industrial employers and
certain other financial groups* who also seem
to have enlisted the co-operation of certain
labor groups.
As a result the daily press is regularly carry-
ing articles regarding the overextension of
credit of this type, forecasting a breakdown of
the country's facilities if the trend in this direc-
tion is to continue.
A typical example of this appeared in the
New York Times of April 27, quoting James M.
Lynch, president of the International Typo-
graphical Union, on the result of a living cost
survey recently completed by the statistical de-
partment of that organization. Mr. Lynch's
statement, briefly summarized, pointed out that
industry's highly organized selling power was
now concentrated on the domestic field, due to
lack of foreign markets, with the result that
the wage earner, as well as other classes,
is being driven into debt, primarily because
practically any product can be purchased on a
small down payment. The statement ends with
the following words:
"Our statistical department has found the
case of a man who engaged himself to meet
monthly payments actually in excess of his
salary, living expenses having been left com-
pletely out of his calculations."
The statement of Mr. Lynch is typical of
those which are constantly appearing. How much
truth is there behind these attacks on instal-
ment selling? Are the facts as they have been
outlined? Is instalment selling to-day a menace
to the credit stability of the country?
Instalment selling is largely confined to the
salaried and wage-earning classes.
Without
that method of buying they would be deprived
of a large number of products which are a
primary factor in giving such people a well-
rounded life, which permit them to enjoy some-
thing beyond the mere means of subsistence,
and which, with present standards of living,
have become essentials. There is no class in
the country to-day which will advocate lower
standards of living.
Are these classes hypothecating their future
income to an extent that endangers their con-
dition? If they are, every line of merchandis-
ing based on instalment selling, including the
music industries, is equally endangered. If the
statements that are appearing are true, there is
one/ indication beyond all others which would
immediately show it, and that is the condition
pared with $1,948,347,000 a year ago. Boston
stood second, with $1,310,807,000, as against
$1,241,474,000 on April 1, 1924.
The deposits in the St. Louis district reached
$140,968,000 on April 1, as against $141,164,000
on March 1, this year.
With seventy-one banks reporting in the San
Francisco district, savings deposits on April 1
OR the past several months the daily amounted to $1,090,682,000, compared with $985-,
press has quoted a large number of vari- 700,000, representing the greatest increase in one
year.
ous organizations to the effect that instal-
If the.working and salaried classes of the
ment selling is becoming a danger to the country are not only spending their surplus
credit stability of the country through over- above the mere means of subsistence, but are
hypothecating their future income in large
expansion. This campaign, which appears amounts due to heavy selling pressure on the
to be directed from some unknown source, part of industry, how is this constant increase
in savings bank deposits to be accounted for?
disregards in its attacks a number of im- And how is it that this increase is national in
portant facts which go far to refute these its scope, being shown in every Federal reserve
charges, some of which are given in the district throughout the country, save one?
These are questions which those who are
article on this page. The music industries steadily attacking instalment selling fail to an-
are vitally interested in this entire subject swer and disregard entirely in their campaign.
It is true that there are certain people who
and should take steps to meet these charges will overbuy when instalment facilities are
and show their falsity.—EDITOR.
opened to them. The case cited by the presi-
dent of the International Typographical Union
is one of them. But that type is a menace largely
to just two classes, first himself, and secondly,
of deposits in the savings banks of the country, the merchant who gives him credit. The latter
for that is the chief means of thrift of the uses every facility in his power to restrain this
salaried and working classes.
type by refusing credit, for, in the long run,
One of the most marked features of the credit extended to such a person means an ulti-
financial condition of the country during the mate loss to the merchant. If there exists a
past two years has been the steady advance in person who would hypothecate his entire in-
the amount of deposits of these institutions. come on instalment purchases, he has been able
Savings deposits reported by 893 banks as of
to do that because he has furnished false in-
April 1 showed an increase of $500,390,000 over formation to those who have sold him and has
the same month of 1924. They amounted to $7,- not revealed his actual financial condition.
785,684,000, compared with $7,743,790,000 on
Instalment selling is an essential to many
March 1, and $7,285,295,000 on April 1, 1924. lines of industry. That it may be abused is
The increase in one month was one-half of 1 true. That it is being abused at the present
per cent, and for the year, April, 1924, to April, time is highly questionable. As a matter of
1925, 7 per cent.
fact, thrift is perhaps greater to-day than it
In March savings deposits increased in all ever has been in the past history of the Amer-
Federal Reserve Districts with the exception of
ican people. One indication of this is that the
St. Louis'. The figures in New York and Bos- retail piano trade, the sales of which are ap-
ton districts included savings in mutual banks proximately 80 per cent upon the instalment
only; in all other districts savings deposits of
basis, is to-day able to sell successfully upon
all banks are included.
shorter time than has ever been the case in the
In New York, with thirty banks reporting, past. And with that it is able to obtain larger
the savings on April 1 were $2,083,503,000, com-
(Continued on page 6)
F
REVIEW
THE
Copies 10 Cents
VOL. LXXX. No. 18 Published Every Saturday. Edward Lyman Bill, Inc., 383 Madison Ave., New York, N. Y., May 2, 1925 Single $2.00
Per Year
Campaign Against Instalment Selling
Based on Fallacies
Consistent Campaign in Daily Press Charging Abuse of This Method of Merchandising and Declaring It
a Menace to the Credit Stability of the Country, Disregards a Number of Factors Which
Refute Directly the Injurious Effects Attributed to It
A
W E L L - D I R E C T E D and insistent cam-
paign against instalment selling is being
conducted throughout the country at the
present time. Behind it are certain groups of
banks, certain large industrial employers and
certain other financial groups* who also seem
to have enlisted the co-operation of certain
labor groups.
As a result the daily press is regularly carry-
ing articles regarding the overextension of
credit of this type, forecasting a breakdown of
the country's facilities if the trend in this direc-
tion is to continue.
A typical example of this appeared in the
New York Times of April 27, quoting James M.
Lynch, president of the International Typo-
graphical Union, on the result of a living cost
survey recently completed by the statistical de-
partment of that organization. Mr. Lynch's
statement, briefly summarized, pointed out that
industry's highly organized selling power was
now concentrated on the domestic field, due to
lack of foreign markets, with the result that
the wage earner, as well as other classes,
is being driven into debt, primarily because
practically any product can be purchased on a
small down payment. The statement ends with
the following words:
"Our statistical department has found the
case of a man who engaged himself to meet
monthly payments actually in excess of his
salary, living expenses having been left com-
pletely out of his calculations."
The statement of Mr. Lynch is typical of
those which are constantly appearing. How much
truth is there behind these attacks on instal-
ment selling? Are the facts as they have been
outlined? Is instalment selling to-day a menace
to the credit stability of the country?
Instalment selling is largely confined to the
salaried and wage-earning classes.
Without
that method of buying they would be deprived
of a large number of products which are a
primary factor in giving such people a well-
rounded life, which permit them to enjoy some-
thing beyond the mere means of subsistence,
and which, with present standards of living,
have become essentials. There is no class in
the country to-day which will advocate lower
standards of living.
Are these classes hypothecating their future
income to an extent that endangers their con-
dition? If they are, every line of merchandis-
ing based on instalment selling, including the
music industries, is equally endangered. If the
statements that are appearing are true, there is
one/ indication beyond all others which would
immediately show it, and that is the condition
pared with $1,948,347,000 a year ago. Boston
stood second, with $1,310,807,000, as against
$1,241,474,000 on April 1, 1924.
The deposits in the St. Louis district reached
$140,968,000 on April 1, as against $141,164,000
on March 1, this year.
With seventy-one banks reporting in the San
Francisco district, savings deposits on April 1
OR the past several months the daily amounted to $1,090,682,000, compared with $985-,
press has quoted a large number of vari- 700,000, representing the greatest increase in one
year.
ous organizations to the effect that instal-
If the.working and salaried classes of the
ment selling is becoming a danger to the country are not only spending their surplus
credit stability of the country through over- above the mere means of subsistence, but are
hypothecating their future income in large
expansion. This campaign, which appears amounts due to heavy selling pressure on the
to be directed from some unknown source, part of industry, how is this constant increase
in savings bank deposits to be accounted for?
disregards in its attacks a number of im- And how is it that this increase is national in
portant facts which go far to refute these its scope, being shown in every Federal reserve
charges, some of which are given in the district throughout the country, save one?
These are questions which those who are
article on this page. The music industries steadily attacking instalment selling fail to an-
are vitally interested in this entire subject swer and disregard entirely in their campaign.
It is true that there are certain people who
and should take steps to meet these charges will overbuy when instalment facilities are
and show their falsity.—EDITOR.
opened to them. The case cited by the presi-
dent of the International Typographical Union
is one of them. But that type is a menace largely
to just two classes, first himself, and secondly,
of deposits in the savings banks of the country, the merchant who gives him credit. The latter
for that is the chief means of thrift of the uses every facility in his power to restrain this
salaried and working classes.
type by refusing credit, for, in the long run,
One of the most marked features of the credit extended to such a person means an ulti-
financial condition of the country during the mate loss to the merchant. If there exists a
past two years has been the steady advance in person who would hypothecate his entire in-
the amount of deposits of these institutions. come on instalment purchases, he has been able
Savings deposits reported by 893 banks as of
to do that because he has furnished false in-
April 1 showed an increase of $500,390,000 over formation to those who have sold him and has
the same month of 1924. They amounted to $7,- not revealed his actual financial condition.
785,684,000, compared with $7,743,790,000 on
Instalment selling is an essential to many
March 1, and $7,285,295,000 on April 1, 1924. lines of industry. That it may be abused is
The increase in one month was one-half of 1 true. That it is being abused at the present
per cent, and for the year, April, 1924, to April, time is highly questionable. As a matter of
1925, 7 per cent.
fact, thrift is perhaps greater to-day than it
In March savings deposits increased in all ever has been in the past history of the Amer-
Federal Reserve Districts with the exception of
ican people. One indication of this is that the
St. Louis'. The figures in New York and Bos- retail piano trade, the sales of which are ap-
ton districts included savings in mutual banks proximately 80 per cent upon the instalment
only; in all other districts savings deposits of
basis, is to-day able to sell successfully upon
all banks are included.
shorter time than has ever been the case in the
In New York, with thirty banks reporting, past. And with that it is able to obtain larger
the savings on April 1 were $2,083,503,000, com-
(Continued on page 6)
F
Future scanning projects are planned by the International Arcade Museum Library (IAML).