he can not tell when some one of the many whom he meets knows something which he should know.

The credit-man should be a good listener, and a good propounder of questions, and if he can get others to do the talking he can do the thinking.

Credit-men should keep themselves thoroughly posted in regard to the laws of the States in which they are interested, in regard to crops, industrial conditions, manufacturing, strikes, etc., the general character of large cities, which are most favorable locations for business, and the competition in such places. They should also have a general idea of the amount of capital necessary to conduct business under different circumstances. Very often there are several customers of a firm in a single town, and the credit-man should know the standing of each of these customers, which ones are the best to sell, and the probability of success of any new concern that may start in the same town.

Many credit-men endeavor to keep their information stored in the recesses of their minds. This I do not believe to be good policy. The facts as obtained should be carefully noted and put away in such convenient forms as to be readily accessible. No man can safely depend upon his memory alone, and the chances are that the credit-man who follows this system will sometimes be confused as to names, and the effort to keep his mind charged with this knowledge will prove a serious strain upon his physical and mental organism.

The credit-man should be thoroughly acquainted with business systems, customs and usages, and should endeavor to ascertain if the people to whom he gives credit are themselves carrying out correct principles in their own businesses.

It does not seem essential that a credit-man should have any expert knowledge of accounts; but he should have a general knowledge of the subject, in order that he may be able to judge, if he goes to a concern and looks over the books, whether they are properly or improperly kept.

One of the necessary qualifications of a credit-man

is conscientiousness. He should endeavor always to get at the unfavorable information regarding his customers, as facts of a favorable nature take care of themselves.

I think that one of the chief characteristics of a creditman should be industry, as it requires hard work and continuous delving to secure information. He should be the possessor of a judicial mind, that he may impartially weigh the evidence placed before him.

The credit-man in a mercantile house should be a systematic and efficient collector. He should see that the accounts of his firm are kept alive and moving. He should not be too lenient or indulgent with slow-paying trade, for, if such a policy is pursued, the delinquents will be quick to take advantage of the situation, and as a consequence there will be much uncertainty as to whether recovery can be had on the firm's accounts.

The main qualification of the dispenser of credit is a trained and accurate memory-the judgment to separate and cull out the really important information and apply the remedy, whatever it may be.

Courage is one of the chief requisites of the creditman. He should stand by his convictions and not hesitate to refuse to trust a firm, if after a thorough and painstaking investigation he feels they are not safe people with whom to do business. Sometimes pressure is brought to bear upon the credit representative of a mercantile house by salesmen who are anxious to secure commissions, but a credit-man should not alter his determination to approve only those risks of which he feels reasonably confident.

Some good credit-men always want to make up their minds before they see the applicant for credit, as they do not wish to be influenced by a pleasant personality as against facts. Others, however, prefer not to make a decision until they have seen the applicant, and claim to have sufficient weight and balance not to be influenced by a pleasing personality, which has nothing to do with a man's solvency or his ability to pay his debts.

The credit-men of to-day are often placed at a great disadvantage, because they frequently do not come in con

tact with the parties to whom they extend credit. In other words, they are at arm's length from their customers, and they do not have the opportunity of talking as freely with them and forming as close a judgment of their personal character as was possible in former times, when the merchant himself came to the business center and bought his own goods. This makes cooperation between credit-men all the more necessary.

I can not refrain from urging upon credit-men generally the advisability of pursuing a policy of cordial cooperation with each other. Always be ready to answer inquiries, and do not regard them as something to be avoided. To an experienced credit-man these inquiries are of great value, and he will often desire to know from what source they emanate and for what reason they are made. I have talked with a great many credit-men regarding this matter, and they tell me they generally receive from the inquirer more information than they impart. "Scanty fare for one will oftentimes make a royal feast for two." Some people are so narrow-minded that they frequently stand in the way of their own advancement.

If you have a good thing, do not hesitate to let your neighbor have the benefit of it.

I

CREDIT

1. THEORY OF CREDIT

Significance of Credit in Relation to Trade-Credit a Popular Policy-Determining_Factors-1. The Applicant's Line of Business-2. Volume of Business-3. Condition of Business-4. Location-5. History of Business-6. History of Merchant-Limit of Credit-Differences in Policy-Retail Charge Accounts-Differences in Service and Terms-The Use of Coupon Books-How Handled in Bookkeeping.

2. CREDIT INFORMATION

Methods of Obtaining Information-1. Personal Interviews and Correspondence-2. Commercial Agencies Their PrevalenceMethods of Working-Obtaining Information-Distributing Information-Ratings-Agencies for Special Lines-Cost-Seyd's Reports-3. Local Attorneys and Banks-Certified Statements as the Basis of Bank Credit-4. Salesmen—5. Commercial Interchange.

3. THE CREDIT Department

The Credit Man-Qualifications-Dual Nature of His DutiesA Mind Free From Details-Method of Procedure-Relation of the Credit to the Sales Department-Relation to the Accounting Department-Recording Information-The Credit Clearing House -Credit Associations.

4. CREDIT INSURANCE

Still in Experimental Stage-Working Methods-Advantages and Defects-Bonding and Trust Companies.