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audit, a chart in the hands of his representatives will furnish all the information and advice they need. To the student of accountancy charts should prove invaluable as the easiest, shortest, and most comprehensive method of study of that particular subject.

As no one system can be made to fit all businesses, charts must be prepared and arranged in accordance with the special requirements in each case. The charts should show in a condensed, easily comprehensible form all of the accounts necessary, with ledger folios and other desired information, classified in their proper groups. Each group should contain an additional account, which acts as the clearing house of that particular group. Each group is in the form of a large dial, with a small dial in the center representing the result in that particular group, which at the end of a period is taken to where the arrow points.

The application of this method is similar in all accounting, no matter whether government, municipal, bank, brokerage, railroad, manufacturing, or commercial. To illustrate, take C 169—Chart A. Group A contains all of those accounts which relate to production: the result of this group is the cost of production, which is then taken to Group E, or trading account. Group B contains the several sales accounts, the total sales to be taken to E. Group C contains all of those accounts which properly constitute the cost of selling, and whose result is also to be taken to E. Group D shows the cost of packing and shipping, also to be taken to E. After all of these items have been taken to Group E, the results are the trading profits, which are then transferred to Group H, or profit and loss.

Group F shows all of the accounts pertaining to office, management, and executive, the result of which is to go to Group H. Group G, reserve against bad and doubtful accounts receivable, completes those items properly belonging to Group H. The result of Group H is the net profits, which are to be taken to surplus (Group I), out of which surplus dividends (Group J) are declared.

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audit, a chart in the hands of his representatives will furnish all the information and advice they need. To the student of accountancy charts should prove invaluable as the easiest, shortest, and most comprehensive method of study of that particular subject.

As no one system can be made to fit all businesses, charts must be prepared and arranged in accordance with the special requirements in each case. The charts should show in a condensed, easily comprehensible form all of the accounts necessary, with ledger folios and other desired information, classified in their proper groups. Each group should contain an additional account, which acts as the clearing house of that particular group. Each group is in the form of a large dial, with a small dial in the center representing the result in that particular group, which at the end of a period is taken to where the arrow points.

The application of this method is similar in all accounting, no matter whether government, municipal, bank, brokerage, railroad, manufacturing, or commercial. To illustrate, take C 169—Chart A. Group A contains all of those accounts which relate to production: the result of this group is the cost of production, which is then taken to Group E, or trading account. Group B contains the several sales accounts, the total sales to be taken to E. Group C contains all of those accounts which properly constitute the cost of selling, and whose result is also to be taken to E. Group D shows the cost of packing and shipping, also to be taken to E. After all of these items have been taken to Group E, the results are the trading profits, which are then transferred to Group H, or profit and loss.

Group F shows all of the accounts pertaining to office, management, and executive, the result of which is to go to Group H. Group G, reserve against bad and doubtful accounts receivable, completes those items properly belonging to Group H. The result of Group H is the net profits, which are to be taken to surplus (Group I), out of which surplus dividends (Group J) are declared.

History of the National Credit Men's Association.

By J. E. HAGERTY, Ph. D., Professor of Economics in Ohio State University. The Credit Men's Association can be traced to a Commercial Congress held at Chicago at the World's Fair in 1893. One section of this Congress which was presided over by P. R. Earling of Chicago, was devoted to the subject of credits. The chief paper presented, entitled “The Value of Signed Statements," was read by Mr. W. H. Preston of Sioux City, Iowa, who has since been prominently identified with both National and local Associations of Credit Men. But few took an interest in the Association and a committee was appointed to consider the advisability of organizing a National Association. On account of the crisis which followed, it was thought a very inopportune time to organize a National Association of Credit Men, and the matter was delayed. Finally in 1896, after several local organizations of Credit Men had been formed, arrangements were made for a National Association to meet in Toledo, Ohio.

When the National Association was formed in 1896 there were thirteen local associations in the following cities: Detroit, Cincinnati, Sioux City (Iowa), Portland (Oregon), St. Joseph (Missouri), St. Louis, Kansas City, Memphis, New Orleans, Louisville, Nashville, St. Paul and Minneapolis. Within three months after the National Association was organized, eighteen local associations were affiliated with it.

Opposition to the National Association came from three sources. (1) Mercantile Agencies feared that it might constitute itself into a reporting agency which would displace them, or that it would demand from them better service than they could afford to give. (2) Attorneys feared that it would be to their disadvantage in regulating fees, etc. (3) Retailers feared that it might be oppressive to them.

The purpose of the National Association was well stated in Article II. of the Constitution: “The object of the Organization shall be the organization of individual credit men and associ

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