An Example for the Sheffield Steel Trade.
Page 2
If you've noticed an error in this article please click here to report it so we can fix it.
Further Advantages of Prompt Payment.
The man or firm whose debts are paid promptly and regularly has at all times enjoyed a good reputation in any commercial country. The successful flotation of many joint-stock enterprises has been materially assisted by the earlier securing of a good name in this regard by the original founders of the business. This was certainly the case in the Dennis and Leyland flotations, to quote two recent publiciesue successes in the industry of which we have most knowledge. Now, with civil and trading difficulties of a complex character both upon us .and ahead of us as a nation, it certainly behoves every trader, more than ever before, to pay his way promptly if he can.
Sonic motor manufacturers, we are well aware, like to finance their businesses largely out of disproportionate obligations to people with whom they trade, but this is not a healthy condition of affairs. On the private-car side of the industry, following the new situation which arose immediately after the outbreak of war, it was precisely the firms which had relied upon that unsound method of finance that suffered most, and they have no doubt yet to " foot the bill" or "go under." Some firms are, of course, in the unhappy position of not possessing the resources which they really need, and they may possibly be excused, but. only on selfish grounds, for wishing to trade upon the consideration and hard cash of suppliers and general creditors.
We have before us, as we write, an interesting communication from a well-known steel-manufacturing works in Sheffield, that of W. T. Flather, Ltd., to which we feel called upon to give the utmost publicity in our pages. The example, the nature of which can be gathered from a perusal of the subjoined text of the letter, is one which we hope will be followed wherever possible. We give space to the complete text, because its obvious genuineness might otherwise be impaired :—
[COPY.] Standard Steel Works, Sheffield. 31st August, 1914. Dear Sirs,—We have pleasure herewith in enclosing our cheque for your account, and believe that it will interest you to know that, by this same post, we are paying the whole of our accounts, as usual, at the end of the month. We are doing this after careful thought, feeling that it is our duty to use every effort in restoring commercial confidence and normal trading, and in the hope that, not only our creditors, but also those to whom we sell our steel, may be induced to take similar action.
We are, of course, using every effort to continue in this policy, and it will be only after making very serious sacrifices, and under the greatest possible pressure, that we should alter it. We are, dear Sirs, Yours faithfully,
W. T. FLATHIat, LTD. (Signed) DAVID FLATHER.
We are not going beyond our proper sphere, in con neetion with the industry with which the above named company is identified, in sincerely commending, as we do, the claims of a British house whose principals give their personal adherence to so excellent a principle as prompt payment in times of stress such as those which the country is enduring. We know that this company is not alone, although we are reluctantly obliged to confess to a knowledge of very different behaviour on the part of some commercial-motor manufacturers who are now beneficially drawing large cash sums from the Government and not paying their debts. Their suppliers will probably be forced to prefer other makers' orders for parts.