Suppose we
had borrowed, what would have happened? Should we have been better
fitted to go on with our business? Or worse fitted? If we had borrowed
we should not have been under the necessity of finding methods to
cheapen production. Had we been able to obtain the money at 6 per cent.
flat--and we should in commissions and the like have had to pay more
than that--the interest charge alone on a yearly production of 500,000
cars would have amounted to about four dollars a car. Therefore we
should now be without the benefit of better production and loaded with a
heavy debt. Our cars would probably cost about one hundred dollars more
than they do; hence we should have a smaller production, for we could
not have so many buyers; we should employ fewer men, and in short,
should not be able to serve to the utmost. You will note that the
financiers proposed to cure by lending money and not by bettering
methods. They did not suggest putting in an engineer; they wanted to put
in a treasurer.
And that is the danger of having bankers in business.
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