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Show KOTO INDUSTRY , Pioneer Says Bankers Are Now Hearing Calls of Auto Manufacturers Col John W Prentiss, a pioneer in the financing of the motor industry', in an article In the Sdut savs the day Is rapidly approaching when the motor mo-tor industry, which was formerly looked look-ed upon with suspicion by so many of the banking fraternity, Is coming into its own. In regard to the discussion about lb- saturation point being reached in the automobile business, Colonel Pren-tls Pren-tls says that n saturation point will be seen until there are at least 30,-OtiO 30,-OtiO 000 automobiles m the world. He points out that the United States controls con-trols the markets of the world for motor mo-tor cars because this is the only coun try Which has learned how to produce in q.uaritlt) and to produce cheaply by standardising its output. The one- check that is liable to come to the, motor lndualry. he sLates, la from lack of materials During the past year there has been a great short-ftgt short-ftgt In the closed Body automobiles as well rs In the glass line The body companies have more business than thev can car for and many of the Independent glass companies have bee-i ibsorhed . ;,h. r by thf motor rir companies com-panies or b the .body companies, while five years ago ono of the biggest banks In Ne York refused to accept a well-known motor stock as collateral i iMiii.il v. in ii'un, ojhy a ipw r s ago J P Morgan & Co became be-came associated with the General Motors Mo-tors corporation as its bankers The Change of attitude by the bankers toward the motor industry has been caused by the realisation of the strength and Qualities of the motor Industry which make it today second only to the iron and steel Industry in size. MOM V TIGHT. In regard to licrht money and restriction re-striction of Irons to motor cars. Coi-onei Coi-onei Prentiss 1 s V.'e bear n TOOtl d-l of talk In th" newspapers dys rf tlght runev that loans to o tonY"bHe crnjnleV are going to be restricted on the the ory tint the nutanYpOile is nor. r tlal. In the first place very f? v n tomoblle companies borrow money in the second place? the car is r n-e-,:enti.-, i; i, dlstlncMv es-r.eptl es-r.eptl I The word pleasure car Is a rni"--.. -tbere really is no such thlnj tPdny. Twenty-fivo 0ftrf, ag0 y1? f ' ba a horse and buggv to 'own Today he has a K ere in-, which costs less h i -nd buggy and ' '"0I ' rr.et the work. ' l : BORROW F.n. pi the retail dealer In '" '' borrow money and while ;r,r,r r,.,pje wbQ buy CJrg that thov canr.pl afford to buy, borrow monev mifacttirlnic companies them-ejvea them-ejvea borrow er- little monev. One of la,. i-.-soiis why the motor car mar u f c'urer does not borrow money IB t:-i. lie sella bis car for cosh. So fai he is concerned, it is reallv a -'j trame. and be gets his money Wltlj his bill of lading. Another ren"-BOn ren"-BOn I 'hat those companies recently fl .. iirr,i have almost all been financed on a common slock basis onlv a few of them have preferred stocks, and bonds outstanding. Automobile men, he adds, believe that there will be no moro thnn a temporary tem-porary abatement In the demand for cars until the rest of the world has as many as the T'nlted States. If that condition Is ever reached, they point out. there will be a demand for replacements re-placements alone that will amount to from two and a half to four million cars a year. a3 the a-eraee life of a car Js about five years Thin Is from two to four times as manv cars as have ever been turned out in a single year The system of American manufacturers, manufac-turers, as practiced in the automobile Industry. Is one of the reasons jrien for Its success and stability This system sys-tem is based on the idc of making one thing nil the time, and it has been found profitable. |