A majority of the accounts in the lumber business are settled by notes, tho the date of settlement is fre quently made ninety days instead of sixty, as stip ulated by the terms of the National Wholesale Lum ber Dealers' Association. At times, the note is dated from the arrival and inspection of the goods instead of from date of invoice, which frequently adds consider ably to the length of the credit terms. Credit terms are the same for both hardwood and softwood.
9. Customary credit terms in the furniture busi ness.—The furniture business is peculiar in this re spect that it is grouped around half a dozen centers where manufacturers' product is collected and where retailers gather to inspect the season's offerings. Ex hibitions are held twice a year at intervals of six months at different points. Salesmen for wholesale dealers cannot carry "samples" but only photographs and drawings. These substitutes are unreliable as a means of determining the finish and workmanship of the articles, so that buyers find it necessary to visit the furniture centers at the season's opening and inspect the goods themselves. The illustrations subsequently used by the salesmen on their visits serve chiefly as re minders of what has already been examined at the ex hibition.
The credit terms usually quoted by wholesale furni ture dealers are 2/10/30—net thirty days, 2 per cent off for cash in ten days from date of invoice, or as is frequently the case, 2/10/60. It is stated on good authority that while these terms are almost uniformly quoted, they are not always strictly observed in prac tice, and that competition is frequently made the ex cuse for a considerable deviation from regular terms.
Lack of cooperation among wholesalers is generally blamed for the absence of uniformity in the credit practice within the furniture trade.
10. Customary credit terms in the jewelry busi ness.—While terms vary considerably in the jewelry line, the largest and best houses generally quote terms of 5 per cent for payment in thirty days; four months net. These terms apply to gold goods of all kinds ex cept plain gold rings, which arc sold at thirty days net.
Loose diamonds are commonly sold on six to nine months, and settlement is usually made by note. At times considerably longer time is given—in a few cases as much as eighteen months being permitted. The latter, however, is exceptional, and is not regarded as approved practice.
Mounted diamonds come under the classification of gold goods, and are sold on the same terms as these goods.
Silverware is divided into two classes: "Flatware" and "Hollowware." Both classes arc sold upon the same terms, ordinarily 2 per cent discount for cash in thirty days, and four months net (2/30—net 4 mos.). Plated goods, both flat and hollow, are sold on the same terms.
Cut glass is often marketed along with silverware. This class of goods is sold usually at thirty days net with a cash discount of 2 per cent for payment in ten days (2/10/30).
The foregoing description of prevailing credit terms in different lines of business is necessarily incomplete. The author's object, however, is not to cover in detail every trade or business, but rather to afford an in sight into the manner in which credits are generally handled in a few leading trades.