WHY WE CHANGED FROM CREDIT TO CASH A Frank Explanation to Our Customers and Friends This is •t'zZi.tSyh'A a plain V» 4 matter .. of fact statement about v. :?.vrs the j" most ..... important .. change which has ever occurred in our business— •j The change from credit to cash We feel we owe it to our customers and friends to state our position and our reasons, just as fully as we can. Credit is both a service and a convenience, and if we take it away, you have a right to know if we have something to offer in its place, and if we have, what it is.' v. This change did not come about suddenly, nor did we seek it. It was too big a thing to decide about hurredly. We wondered what its effect upon our good customers would be. We didn't want to do it at first But that was because we didn't understand it ourselves. It wasn't until we got to studying the cash basis that we realized how much it would accomplish, and when we learned the truth we were glad we had decided to sell for cash only, and we actually believe that the time will soon come when our credit-customer friends will be glad too. For many years the cost of doing business hag tifen steadily increasing. This is true—from the manufacturer and wholesaler right down to stores like ours. This increasing cost is added, of course, to the cost of the goods. vy There was a time when, in order to get business, a wholesaler would give almost unlimited time arrangements for payments. Then it was easy for the merchant to do the same with his trade—he passed the convenience along. That day has been gone & long time. Today the only merchant who can buy cheaply is the one with the cash. Promises to pay bills are accepted reluctantly, if at all, Itnd high interest must be charged against us on unpaid bills. The wholesaler has had to go practically onto thf cash basis and the retailer is left without his pld time financial support I j? Nobody, not in business, can realize how the cost of a qjedit business creeps steadily up. Dollar by dollar, account by account, there is the steady drain of merchandise gri|ig out of the store and a constantly growing book account left in its place. Of course it may all be good. It isn't a question of not being able to collect It is a question of investment—the standing investment of money in merchandise, which the store itself probably hasn't paid for. Book accounts are tied-up capital, and unless a merchanjt is very fortunate this capital is borrowed and costs high interest. The end is plainly to be seen. We reached a point where we simply wouldn't afford to go on. Necessity forced us to change. We can do business more satisfactorily now, and without worry about bur bills. Instead of lessening our service we are actually improving it. This is what it means: v-. We will have no interest to pay on borrowed We will have less bookkeeping expense. money. We can buy in the cheapest market where cash We will be able to take discounts on our bills. takes the lowest prices. We will have no collection expenses. You can buy Cheaper. As we get established on the cash basis, you can expect a genuine saving in prices. Every item we sell will reflect the benefits of a cash purchase. We honestly believe the cash way of buying is best for everyone' and makes for more stable prosperity. Society is taxed for every store that fails, and in these days everyone knows that a man cannot sell goods as cheaply as he should and sell for credit. You have been very patient with us, if you have read all of this. We sincerely hope you will agrefe that there was nothing else for us to do. We greatly value your friendship and patronage, and will do anything we can to keep it. All we ask now is a chance to show you the benefits of the new system—that wemay gain your approval. O. M. CARR & CO. INTERNATIONAL FALLS, MINNESOTA