Show Business Observer Says This Is I Good Time to Pay Up Debts Urges Less Instalment ent Buying Baying I SPECIAL DISPATCH BABSON DABSON PARK Mass Nov 25 Roger W W. Babson today in his weekly interview discusses the general busi busl- business business ness n ss situation with special reference to collections His official state state- statement statement ment Is as follows BUSINESS DUSI ESS NORMAL Although there has been a de decline de- de decline decline cline in the volume of steel orders car ur loading and certain other lines yet yot business as a whole continues I normal Declines which have ha taken place in certain sections of the cast ha have been compensated for by business I increases in the south and especially I in fn the northwest est Canada also Is showing up well The same thing applies to different lines of in In- In Although the steel business has fallen off oft the copper industry is more prosperous Therefore there seems to be a general balancing up of conditions although the tendency seems cems to be downward Hence the I volume of business remains normal There Is a general complaint Judg judg- Judging judging judging ing from my correspondence regarding re regarding re- re regarding garding profits The big people seem to be making most of the money while the small manufacturer and merchant Is doing all he can to 0 pay his bills However Howe there is La little complaint and all are looking forward to a a. good Christmas From reports coming in to me I Iam Iam Iam am troubled about the collection situation Although the older con con- concerns concerns cerns cems doing instalment business are more stringent regulations making j i i yet jet et the installment business as a whole is continually growing It ItIs ItIs ItIs Is now possible to buy anything on the instalment plan from cradles to coffins coWns Moreover one is no longer criticized for buying things on the Instalment plan and it almost is be becoming be- be becoming coming coining a a. general style if It not good l I form Hence we are closing the year ear with the general public very ery I much In debt deb and more people are owing money today than ever be before be- be I fore tore In previous periods of pros pros- prosperity prosperity prosperity the outstanding indebtedness II of the country was almost wholly due to fo the overextension of ot banks manufacturers and merchants This situation however hoever has now entirely changed and It Is the average man manon manon manon on the street who owes money and would be hurt most by a business depression and a period of ot unemployment ment COLLECTIONS S ONLY FAIR From reports on the collection situation which I have received from the chambers of or commerce In seven ninety different cities rep rep- representing representing representing resenting all sections of the country I find that conditions therein could be greatly Improved upon if It the people would pay up their bills and be careful about over-buying over on Instalments It Is true that almost a third of ot these cities show col col- collections collections collections as being good slightly less than thau half hall of ot them register as fair and about a fifth of ot the reports show the collection situation to be poor However although the above figures would give the country as asa asa a a. whole a B. rating raUn- of fair yet jet et the great increases in the Instalment business make It an entirely dif dlf- different ferent story Perhaps most people have ha been able to kc keep p up payments thus for but sooner or later will come a a. period of depression when money will come hard Then the In Instalment In- In instalment buyer bujer win in be obliged to seek funds to keep up these pay pay- menu ments With so many people in debt it will be impossible to barrow money and thus the working man manwill manwill manwill will lose out My study shows me that the collection situation Is about the same in all sections s of ot the country at the present pre ent time That is al although al- al although although though some cities report collections as coming in slow usually there are arey y other cities In that section which are holding up well I firmly be- be here e however that collections should be showing a higher average now I than they are Surely If It collections come in slowly when there is a reasonable amount of or easy money it must mean menn that very ery poor con con- conditions conditions would prevail should there be a a. In general business Let us all pay payout out bills now and thus make moke the struggle which may be ahead of us less strenuous INSTALMENT I BUYING ING nun G SE INCREASE I It It is really surprising to note nole that Instalment buying Is still IncreasIng increasing ing to a great extent By far the I great grea majority of cities report an Increase in instalment buying Out of eighty of ot the above men men- mentioned mentioned mentioned cities titles which sent me re reports re- re reports reports ports on business conditions sixty sixty- four of them indicate the instalment business as increasing nineteen cities are arc now at normal and only six Indicate instalment buying es os decreasing Certainly this is not nota a 0 situation to encourage one That ThatIs Is Is not if It he is willing to look Into the future Of course It is all very Cry nice to be able to enjoy the many luxuries which we e can get through buying but is it not much better to first save your money mone on the instalment plan and then buy that which you jou ou desire At Atan any an rate you are then able to call your jour our purchase your own The collection oll Uon and instalment situation is very good in some cities titles at the present time By very Cry good I refer reler to cities in which collections Lions arc are coming in well and where instalment buying is decreasing Certainly Certainly Certainly this is an encouraging situa situa- situation tion Flint FUnt Mich MIh and Topeka Kan Kanare are among the cities which are building for the future a business condition which will be envied by bythe bythe bythe the less fortunate cities titles which are arenow arenow now showing increasing Instalment sales and slow collections My study also shows that instalment sales are decreasing In Utica New York Grand Rapids Mich and St. St Peters Peters- Petersburg Petersburg burg Fla although althou h so far as collations col col- collections lations in these cities are there is still much room for im Im- Im- Im provement BANK DANK DEPOSITS STRONG Notwithstanding Not the above re reports re- re reports reports ports on collections bank deposits are still climbing upward I refer reter not simply to national banks but also to trust companies savings banks and building building- and loan as as- as People seem to be saving on the instalment plan as well as spending on the instalment plan Life insurance companies are es especially es- es especially especially prosperous and life lIre Insurance insurance ance ane represents a a. very ery Important form of ot saving This is the silver sliver lining lining- to the cloud and these savings would be beery very ery helpful in an em em- emergency In the meantime those in interested In- In Interested interested in the instalment business arc are becoming more careful and are gradually securing data and statis statistics tics upon which to base future plans Ultimately of course these Instalment companies will wall be bs sub sub- subject subject subject to government inspection as arc are national banks trust companies and saving banks In the meantime they can do much to help the situa situa- situation situation situation tion by operating very conservatively At the present time the Babson- Babson chart stands at 1 per cent abo above e e normal and should show an upward tendency during durin the next month On the other hand it should be remembered remembered remembered that when business is good as at present is the time to date dato and pay up ones one's indebtedness L I therefore trust that all my good Friends will make a a. strenuous effort to pay their debts before December 31 and enter the New Year of 1923 1928 in a a. good strong financial condi condi- condition condition tion free from worry and ready for tor real service Those who adopt this principle will not only live longer and happier but will make much more money in the end end Copyright 1927 Publishers Financial Finan Finan- Financial Financial cial Bureau |