Certain kinds of borrowers undoubtedly need pro tection by the law. They are the poor and ignorant people who sometimes are forced to go to the money lender, often the pawn shop or a so-called "money shark," and to pledge their belongings in order that they may get money to save themselves from eviction or famine. In some states borrowers of this class are carefully protected by laws which have the approval of business men generally.
8. Trades lacking some lines of business there are still lacking accepted and approved ethical standards. The people of New York City, for example, have little faith in the average dealer in poultry. It is generally felt that the "broiler" must be examined carefully to see that its weight has not been augmented by the insertion into its crop of gravel, oyster shells, or sand.
Produce commission men are also under some sus picion. The amateur dealing with them does not feel at all certain that he can rely upon their word, nor does the farmer who ships them his produce. Of course, the wide-awake grocer in any large city knows the commission men he can trust. These are the men who in the long run prosper.
One bears also much complaint about the practices of certain import and export commission merchants. It is said that many of them accept commissions from both buyer and seller, a practice which would not be tolerated in domestic trade. As our foreign business grows more important, a standard of ethics will evolve which will put out of business those who indulge in unfair practices.
It used to be said that no one could be honest and be a second-hand automobile dealer. Cracked cylin ders were charmed to temporary silence, the labors of broken gears drowned in thick grease, and worn-out bearings tuned up in order to imitate for the time being the performance of new gears. Today the second-hand automobile business has mostly passed into the bands of scrupulous men whose guarantees are genuine.
9. Merchandising.—The recent rapid growth of the department store in the cities of the United States and of the large mail-order houses is the best possible evidence of the commercial importance and value of the practical applications of ethical standards in busi ness. Hundreds of thousands of farmers all over the United States feel certain that they will get their money's worth when they order supplies from certain mail order houses. Their experience with these houses has uniformly been satisfactory, and they "mow they can return the goods if they are dissatisfied.
If the managers of these houses had not insisted upon a high ethical standard, but had sought by misleading advertisements and catalogs to increase their sales, they would in all probability have met with failure.
As exponents of the "square deal" in the depart ment store, A. T. Stewart, Marshall Field and John Wanamaker were the pacemakers in the beginning. They insisted upon tbe "one price only" for all cus tomers and upon the policy of "money back if dissatis fied." The Woolworth five and ten cent stores, de spite the fine business idea underlying them, could not have prospered had they not been conducted in such a manner that people enter them with confidence as well as with curiosity. The merchant who misrep resents the quality of his goods, who advertises bogus fire sales, who refuses to be fair with dissatisfied cus tomers, is rapidly being relegated to the back streets. His lack of moral quality classes him with the unfit in business and will lead to his extermination.
10. Trade associations.—A potent influence in standardizing business practices has been exerted by the various trade associations. Many of these asso ciations have worked out practical codes of ethics which have received general acceptance among the members. These associations, which have been or ganized in connection with all the important trades of the country, have for their purpose the advance ment of the common interests of their membership, and are in themselves evidence of the fact that busi ness standards in the United States are tend ing steadily upward. Among the members there is the keenest kind of competition for trade, yet along with this competition there exists a cordial spirit of cooperation, each member realizing that the higher interests of his trade are of vital concern to him per sonally.
The fruit-packing industry of the Northwest is often referred to as a classic example of trade associa tions. Knowing the necessity for permanent mar kets, growers got together some years ago and agreed upon standards of packing. Thereafter western fruit came to the East uniform in size and quality. As a result the market for eastern fruit was demoralized and it did not revive until similar action was taken in the East. The small wormy fruit at the bottom had to go.