Show Do Not Endorse Personal Notes and Avoid Strains 11 Credit Is Warning i BABSON DABSON PARK PAnK Mass Maes Oct oat 2 Special Roger Dispatch Roger atch-Roger W Dabson Babson discussed today the money situation H lie thinks think that th the pres- pres present pres ant ent nt rates will wll continuo continue for or some lime lima but bul on account thereof he gives some Borne som very timely advice Ills His complete completo statement Is I as fol- fol follows follows fol follows lows DONT DON'T Don BORROW now NOW The Th The present ts is I a n very good food timeto time to 10 reduce loans This Is always a good step to take take- In a n period or of prosperity as WI loans can be reduced with much more ease cas during such sucha a period than they can when money Is tight As In other things there thero Is a time when It Is easy to reduce Indebtedness and a time when It ItIs itis ItIs Is hard to reduce indebtedness The present Is la the th time tim to get let out or of debt W Ve are arc now passing through a period when hen It Is easy to money roney and the th banks bank are ar anxious to loan The Th temptation there there- therefore therefore fore tirre-fore fore Is la to expand an and borrow more money But Dut easy casy money conditions cannot always last and when In- In Interest In Interest terest rates stiffen Is when It tt ts hardest to pay up the th old loan Now therefore Is the th time to stop atop borrowing money and get all loans paid up I Keep ep In mind that the tho thUrn to reduce Indebtedness a when It Is easy eMY to borrow and the time to Increase Indebtedness Is fa when It Is hard to borrow Just how can we e w reduce indebtedness Indebtedness edne edness s The first thing thine to do Is Ie Isto isto to get ret oft off all alt personal endorsements endorse endorse- endorsements endorsements ments If I could get all of my young friends friend to promise me m that they would NEVER NEVEn endorse a note this would be one of the tho th greatest things that I could possibly do for forthe these young people One On will fey nev- never or er get gel ct anywhere by endorsing notes and It Is la certainly taking needless chance We Ve W know that money will not always ays come easy and notes must be paid up when due There There- Therefore Therefore Therefore fore one on good tood way of at keeping out or of trouble c Is fa I to pay all our per per- personal per personal onal notes note and determine never neer to endorse endors another It Is always easy elloy to find some somo omo excuse so no vou you you can en ca avoid endorsing a a note Therefore unless you want to tAke tak the chance chonce ot of being belne a n heavy heny loser In th the future you should get out r I ft r fat all 1 personal endorsements now while money oney Is easy uy and whets when It will wll cause caus the least embarrassment to the makEr or of the th note Hesitation lie nation now may mean destruction later About once In ten years there hero her chance to get off ott endorsements without hurting hurling the th other fellow As thIs Is the th gentlemanly c way of ot getting off orr of or them you should take the present opportunity for doing so COLLECT POSSIBLE The second thing thine to do Is la to get BetIn In all alt that Is li owed to you whether It Is fa large lareo or 01 small sums The present Is a fine lne time to collect old debts for money Is le now as easy all round as a It will boo for sonic some sometime sometime time t o 0 come Payment of a note will now bring brine Joy both to the man to manto whom horn It Is owed and t tk Ce the tho thoman theman th man who owes owes wes because It eliminate plea ate further financial obligation on the same If Jr however you OU leave the collection of ot It until you nerd the money It will sill then Ihen be hard to collect and be b both difficult and disagreeable The Th third thing thinA to do Is to reduce re- re reduce re reduce duce personal Indebtedness sa The quickest and most satisfactory method ot or reducing ln- ln Indebtedness In Indebtedness Is to pay It up Jr If however you cannot do this there remains another method and this Is by changing Indebtedness froma from a persona personal indebtedness to a cor cor- Cor- Cor corporation corporation Indebtedness If It you do dol l business th through a corpor corporation and the corporation gets Into trouble you OU lose loi only what you had I in la the proposition but It Ir you are In busi busl- bu business l ness personally persona for yourself and get Into trouble you are lire apt to rose lOSt roseall all you have GiF GET INCORPORATED Twenty five years ago co It was the unpopular thing thine to incorporate your business Banks then thought than a man doing this was neece- neece necessarily s having trouble In his busi busl business busi- busi business ness affairs Now there i Is no such stigma attached to Incorporating Today think to It Is quite the tile popular thIn thing i ito to do and many small firms firm have hll done so The Tho Th point Is that the tho banks are ar far more mor willing now to 10 release a personal endorser than they will be when tho the next period or of depression comes But we w should remember t hat liat It Is well welt to reduce corporate liabilities ad adso so and thus keep our business firms out of trouble In makIng these statements I 1 Iam Iam om am not necessarily holding out oUI warnings or speaking from a pes- pes pea pcs point of ot view but I am speaking peaking asI asa as I a a business statistician lily My view of these things has been taken from my many years ot or study or of the th subject su and I feel quite quit c strongly that my statements stateD will be round found to be correct This Is la a n hard little world when It comes come to the borrowing ot or money In a finan finan- financial cal cial al panic pants one on person Is about as a considerate ot or another or he h would be on a 1 sInking ship INCREASE SE EU it In reducing ones one's corporate lIa- lIa 1 lla 1 a- a abilities It should be remembered that there her are aro ar several methods or of orso so doing dolne These The methods are lire as 1 By Dy getting In bills receivable receivable receivable able and accounts receivable able 2 By Dy selling new capital and reducing Interest bearing obliga obliga- obligations obligations a Now Is the tho th psychological time to do this successfully 3 By reducing Inventor Inventory It ItIs Itis ItIs Is surprising what that every piano concern could do In the way Va of getting rid of ot Idle Idl prop prop- property properly properly erly erty 4 By Increasing turnover and making your present capital do domor more work worl This can be b done dono don by putting more money into the th sale or of ones one's one goods roods The Tho number or of turnovers each cadi year differs of course In different lines of or business busi business ness but In every line the th turn turn- turnover turnover over oer can enn be Increased One of or the th greatest factors In Inthe Inthe the money situation of or today Is the groat Instalment business which Just lust how much wo we w cannot say Is is eating Into the very vital qC credit and which will very be a 0 considerable factor In the thc next financial p panic The Thc thing which everyone should do is to reef reer his salts sails and be In shape for the squall when It hits us Usually ly there Is a II strengthening of ralos each fall and this tall fall need not be an exception The money needed to more moe inor the th crops always causes some tightness In rates With a 3 slightly lightly smaller crop than usual this year there should not be b any radical Increase In money rates Therefore the wisest bankers are looking f forward to merely normal fall rail and winter rates matte On the lh other hand In this period of or the tho which now registers 13 per cent above normal higher money rates raus may maybo maybe maybo bo be expected Irrespective of or the eason cason of or the year Notwithstanding the present ease of money and the fact It should continue to be tie available for formost formost most purposes It may bo be more difficult this coming winter to bor bot- botro borrow borrow ro row for building purposes There seems to be bo a Impression anlon bankers rs that new building has been can led too far that pric prIc- prIces prices es os of or building materials and labor costs costa are ar too high Any allures or foreclosure foreclosures along alone real estate lines will cause bankers banker bl to shut shutdown down doun on real estate loans and the Instalment situation are the Ibe flies files in the situation money to- to today to today day Copyright 1926 1026 Publishers FI- FI FInancial Fi Financial Bureau Dureau n I FI-I |