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The Huron Expositor, 1931-05-22, Page 3•''Yt IJ WIT11 YOIJ1? Well, tb.PIN PRlrlted opt that 'ti }w isehOlder would' he payliig not aM, Pine ped deal ,which tho q4:04 41074,7 tio-Pgng-011Plera c ?Paignn expx!es613r stated, but ,'24 bor aQ per cezlt.'f' householder (who bo>tght a $300. job, 'would not get .$300 worth. of credit. He would pay $60 as soap as the job was finished. The most he would owe, therefore, would he '$240. He would cutthis down every months, and at the end of the tenth month he would, owe only $24. But he would be pay- ing ay-ing interest on $300 for the entire ten months! '1 P1aae your 1unmess apoOMt nth the merest branch of this Bank. The manager Al be glad to dioeicties your business problem. with you. His accumulated experience is ,'available for your needs. If it costs a• home owner 25 per. cent. for .credit on a housepainting' job, how much does the individual pay: for credit who goes into a store and buys a washing machine, or a fur, coat, or a ,radia; set on installments ? The cost of credit varies somewhat, according to the article purchase•t. But all installment operations have one thing in common: When an industry goes on an installment basis the cash price tends to rise to somewhere near the installment price. To illustrate: I sell, let us say, washing machines. The washing ma- chine business is done largely on in- stallments. I have one splendid ma- chinewhich I sell on installments for $100. But an occasional customer comes along who does not care to buy on time payments and so, to get his trade, I put up a sign in my store, "Ten Per Cent. Discount for Cash." When I sell, this customer a wash- ing machine for $90 I am charging him too 'much. If I were fair with him I should sell him the,machine at $25 less than the installment, price— it probably costs me $25 to sell a ma- chine on installments, everything con- sidered. But I do not dare offer a cash buyer more than ten per cent. discount. If I did, I could not sell my machines to installment buyers. I have;' to make them believe they are paying only a little more than the cash price. My advertisement in the local paper, "I Trust the Public," would be flung in my teeth a dozen times a day by indignant purchasers who learned that I trusted them but charged them 25 per cent. for the compliment. In this way installment selling penalizes people who wish to pay cash. The laws in force throughout the country tend to promote installment operations. In all but three states— Louisiana, Missouri, and Ohio—an in- stallment merchant has only to get his customer to sign a conditional contract which specifies •that the pur- chaser does not own the article until all installments have been paid. Ar, investigator reports that a certain store in Tennessee had sold a piece of household furniture to Negro fain- ilies on installments and had repos- sessed it no less than 67 times. This is known in the trade as "borax" seL- ing. Another example was that of a Mexican day laborer in Texas who had in his abode shack a set of dining - room furniture for which he had promised to pay $400. As he had a wife and several children and earned $1.50 a day, it was evident that he had done business with a borax mer- chant who hoped only to collect two or three payments and then "pull" the merchandise. THE DOMINION BANK ESTABLISHED SEAFORTH BRANCH R. M. Jones - Manager 311 THE SECRET Everybody thought that Lola Kane was a charming girl. That was part- ly due to Lola's habit of keeping up friendships. "It's so easy nowadays," says Lola. "One simply telephones people. Distance doesn't matter to Long Distance!" Lola's secret is a simple one! 1 DOUBTS ON INSTALLMENT SELLING Not long ago an attempt was made to organize the house -paint industry on a time -payment basis. A number of leading house -paint manufacturers combined to promote the idea under the slogan, "Good News to Home Owners -10 Months to Pay." Any 1F householders who wished to redecorate his house was to apply to his local hardware merchant, and the latter would supply the paints and arrange with a painting contractor to do the work. When the job was finished the householder paid one-fifth of the agreed price in cash and signed ten notes for the 'balance. It was, apparently, a splendid ar rangem,ent for everyone concerned. The householder was charged only nine per cent. above the cash price. As- suming the' cash price, for example, to be $300, the householder paid $327 on the installment plan. The hard- ware dealer who sold the paint did not have to wait for his money. He sent the householder's ten notes to a finance company and the company mailed him a check. Yet with all its seeming advant- ages, the plan had to be abandoned because of violent opposition from as- sociations of hardwars dealers. Inas- much as these merchants apparently stood to gain, what was the reason for their refusing to co-operate? 111.1010. D • . . that Kellogg's Corn Flakes have a special package that is different from all others? • • e a WAXTITE, inside bag perfected and patented by Kellogg? . a WAXTITE bag that is actually SEALED against odors, moisture and contamination? • • s that brings Kellogg's Corn Flakes OVEN - FRESH and FLAVOR -PERFECT to your table? Just another reason why it pays to specify the name Kellogg's when buying corn fakes. One of the most economical and convenient of foods. Delicious with milk or cream for breakfast; extra welcome for lunch with fruits or honey; fine for children's suppers or a late snack. Easy to digest. Always ready to serve. No trouble. No work. With a "wonder" flavor that can't be equaled. Look for the red -and -green package at your grocer's. It means genuine Kellogg's -- the original Corn Flakes — the world's most popular ready -to -eat cereal ! or in rer in, .ry ity ire cin is ric )ur our. is r 0.. over FLAKES S l�rU These of course are extreme cases and concern Merchants and custom- ers of a low social status; but the same danger can threaten the posses- sions of those in much higher social grades. An industrial life insurance company reports a case of a man earn- ing $60 a week. He died suddenly, and it was found that the weekly in- stallments on his automobile, piano, radio set, etc., amounted to $63 a week. His widow, questioned as to the family's peculiar financial a-•- rangements, said, "I guess we didn't realize what we were doing. Every- one urged us to buy something on the installment plan and offered to let us have it with a small down pay- ment. They said it was the modern way to save money." There has been a tendency in this country to make installment selling appear noble. One prominent writer refers to its as an "act of faith." An- other calls it "the backbone of con- tinuing American prosperity," l3ut, in plain business terms, how can you in- c:•case prosperity by forcing the sale of articles this year that will not be paid for, until next year? The an- awer is, you can't. It is merely a synthetic prosperity until you have sold your customers up to the Iimit of their credit. Then you have to sh•:t clown your factory until your custom- ers have paid off some of their install- ments and are once more a safe risk. The depression which began with the stock market crash in October, 1929, has been unexpectedly slow in righting itself, Why? According to Government estimates, installment debts in 19''49 amounted to approxi- mately $2.50 for each family in the United States. Perhaps business has been obliged to rest on its oars until people who mortgaged their earnings should have time to pay off their in- stallments and start over again. Installment selling has never at- tained great popularity in European countries. In England it is looker] upon as something that first class people do not go in for. English in- stallment houses recognize this and invariably state that patrons need not fear neighborhood criticism because, "All purchases are delivered in vans that , do not bear the name of the firm." In France there is a special law to control installment selling. A French dealer cannot, as in the rrn.it- ed States, retain title to an article un- til it is paid for. This, makes it nec- essary for the dealer to assure him- self that the customer is financially responsible. No one will argue that installment selling is an unmitigated evil. if the abuses, such as "borax" selling and the high-pressure pushing of goods on people beyond their ability to pay, are eliminated it may be beneficial both to industry and the public. There is a very simple way to elim- inate these things. Already in some states there has been talk of passing laws similar to those in France; which make it impossible for a vendor to hold title to- the article. Credit, un- der such a law, would become a dig- nified matter, depending on the pur- chaser's known honesty rather than on a threat of sending the sheriff after him. t'h Recor An Event t� WiseMan sho Advantage $19.50 and $24.5 At the Prices $25 & $30 is their ' value Never in years have we offered such striking values. We urge you to come in, to inspect the selection and feel the quality. And you will realize at a glance that these are real clothing values. To secure sturdy Worsteds, Serges and Tweeds at these prices is a real accomplishment. To get them tailored as these are, is a superlative achievement—Style, Fit, Work- manship and expert tailoring. There are Tans, Greys; Browns, Blues, in size for every man and young man. Come in and see these Suits. You will be surprised at how good and how reasonable they are at $19.50 and $24,50 NEWEST STYLES AT A PRICE Coats CLEVERLY DESIGNED These lovely new Coats combining vogue and value, should appeal strongly to every woman who vvi.shes good looking, perfect fitting coats at reasonable prices. Made of good qualities Chunga, Tricotine, Tweeds, Broadcloths, Blacks, Blues, Navys, Sands, Greens, Fancy Tweeds, with or without fur trimming. SPECIAL PRICES $9.75 to $30,00 Frocks FOR EVERY OCCASION And speaking about value, we have not been able to offer such values in years. They are so beautifully styled, so cleverly designed, so fresh, so orig- inal and so attractively priced. Lovely Flat Crepes, Silk Crepes in' plain and fancy designs, in a wonder- ful range of diversified colors. SPECIAL PRICE $5,95 SPECIALS TN WOMEN'S Hosiery Pure Silk, reinforced, in five new shades. Will give excellent wear. Previous Price $1.00 SPECIAL PRICE 69c Full fashioned Mercury Brand, noted for its appear- ance and wear. Pure silk in all the wanted colors. Previous Price $1.50 SPECIAL PRICE $1,00 Men's New Straw Hats PRICES GREATLY REDUCED An exceptional showing of Men's Straw Hats just received this week. Snap Fronts for young men, sailor and Fedora shapes for more con- servative dressers. You can easily afford a new hat this Spring—the prices are so much lower. Sizes 63/4 to 71/2. PRICES 510c to $1,75 Women's Knitted Suits They come in two and three-piece in Blue, Green, Brown, Sand, Rose a n d Black. Made of puree wool or silk and wool. Excellent for sport or general purpose wear. PRICE $7,50 to $16.50 ST,EWART BROS. SEATO: n, rt,G,3;3'�la r.l