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INDEX

Abuse of cash discounts, 76
Acceptances, bank, a credit form of
limited acceptability, 29-30
forms (Figs. 6 and 7), 29, 30
trade, a credit form of limited
acceptability, 26–9
form (Fig. 5), 27
Accommodation paper, an inferior
form of credit, 48-9

Accounts, doubtful, declining, 306
foreign (see Foreign accounts).
granted, notification to applicants,
300

methods of securing, 301
past-due, 285-7

collecting interest, 358

payable, valuation of as liability,
221

receivable, assignment of (see As-
signment).

methods of financing, 212

watching, 313-6

Acts of bankruptcy, 409-10

Adaptability, essential qualification
of credit manager, 86

Adjustment bureaus, 384-91
advantages, 389-90

aims, 384

example, 390-91

functions, 385-6

origin, 384

procedure, 386

Adjustments, credit insurance

claims, 437-9

friendly, with insolvent debtors,

adjustment bureaus, 384-91
composition settlements, 381-4
extension of time, 379-81

Agencies, collection, 333-7

forms used (Figs. 34, 35, 36),

336-7

credit reporting, 247-8

detective, cooperation of retail
credit bureau with, 260
mercantile (see Mercantile agen-
cies).

Agents, resident abroad, source of
credit information, 270
American Credit Indemnity Co., 427
American Exporter, The, 270
Appeals, collection letter, 352-8
fear, 356-8

justice, 353-4

pride, 353

self interest, 354-5

sympathy, 352-3

Application for credit, 301-4
handling, 304-5

reports on applicants, retail credit
bureaus, 257

retail stores, form (Fig. 30), 252
Arndstein, McCarthy vs., 475
Assent, creditors, in assignment, 395
Assets, fixed, ratio of sales, 236
ratio to net worth, 232

valuation of, 208-21

bills and notes receivable, 217
cash, 208

deferred assets, 220

furniture and fixtures, 221

intangible assets, 221

investments, 220

machinery, plant, tools, 220

merchandise inventories, 218-20

Assignment, accounts receivable,

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Bankruptcy, legislation, 405-8, 423-

26

proceedings, 410-23

Banks and commercial houses com-
pared, as to credit granting,
44

as credit reporters, 183-7
reports, 185-7

large, credit department, 292-5
medium-size, credit department
in, 290-2

source of credit information, 246
foreign houses, 269

Banton, Dier vs., 425

Bills, of exchange, credit form of
limited acceptability, 26
receivable, valuation of as asset,
217

Bloomfield vs. State, 374

Bonds, a credit form of limited ac-
ceptability, 19-20

classification, 19-20

valuation of as liabilities, 223
Book accounts, a credit form of
limited acceptability, 16

of indication, accompanying trav-
elers' letter of credit, 32
Bradstreet Company (see also Mer-
cantile agencies, general).

extent, 108

foreign offices, 265

keys to ratings, 116

local correspondent's form (Figs.
16, 17), 111, 113
organization, 109

report, contents of, 119-20
Bradstreet, John M., 107
Bulk Sales Law, 372-6

Bulletins, issued by retail credit
bureau, 259

Bureaus, adjustment (see Adjust-
ment bureaus).

retail credit, 248-62

Business cycles and credit, 9-13
effect on credit period, 74
in determining credit risk, 102
Business volume, better distribution

of by credit, an argument for
retail credits, 56

455

с

Cables, in collection foreign ac-
counts, 341-2

Capacity, credit seekers', a factor in

determining credit risk, 95
Capital, commanded, a factor in de-
termining a cash or credit
policy, 61
defined, 223

factor in determining credit risk,
96-7

stock, valuation of, 223

tied up by credit, an argument
against retail credits, 59
working, relation to credit limits,
231

Card tickler, follow-up system for
collections, 326

Carelessness in retail credit grant-
ing, 62-4

effect, 63

causes, 62-3

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Commercial houses and banks com-

pared as to credit granting, 44
letters of credit (see Letters of

Credit).

rating books (see Rating books,

commercial).

Commodity, character of, effect on
credit period, 71

Community, size of, in determining
a cash or credit policy, 61
Compensation, assignees', 397
receivers, 403

trustee in bankruptcy, 417
Competitive conditions, effect on
credit period, 71

factor determining cash or credit
policy, 61

Complaints, invited by credit sys-

tem, an argument against re-
tail credits, 59-60

reduced by credit, an argument
for retail credits, 56

Composition settlement, in bank-
ruptcy, 420-1

of insolvent debtor, 381-4
Confidence, developed by credit, an

argument for retail credits, 55
Consumer, ultimate, type of, effect
on credit period, 72

Contingent liabilities, valuation, 223
Control sheet for recording com-
mercial paper purchases by
banks (Fig. 14), 53
Convenience, of credit, customary,
an argument for retail credits,
57

Cooperation, between credit depart-
ments, function of credit
manager, 90-91

Corporation manuals,

Correspondents, special, in county
recorder's offices, mercantile
agencies, 112

Cost, mercantile agency service, 131
of doing business, increase in, an
argument against retail credit,
58

retail credit bureau service, 261
County recorders' offices, special
correspondents in, for mer-
cantile agencies, 112
Coverage, in credit insurance, 432-3
Credit, applications for (see Appli-
cation for credit).
business cycle and, 9-13
card, 281

form used by manufacturing
concerns and wholesalers (Fig.
33), 282

Clearing House, 152-4

functions, 153-4

method of operation, 152-3
defined, 3-4

department (see Credit depart-

ment).

derivation of word, 5

equation, 99

folder, 282, 295-7

functions, 7-9

importance of in modern busi-

ness, 6-7

index, 282

Huntington, 165–7

instruments, forms of, 14-38

certificates of ownership, 35-8
limited acceptability, 15-35
unlimited acceptability, 14-5
insurance, 427–46

adjustments, 437-9

arguments, 439-440

source of

claims, 435-39

credit information, 190-2

Corporation rating books, Moody,
source of credit information,

192

Correspondents, local, for mercan-
tile agencies, 110

forms used (Figs. 16, 17), 111,

113

development, 427-9

foreign, 444-6

nature, 427

objections, 440-4
policies, 429-35

interchange bureaus, 154-68

advantages, 164-5

cost, 168

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