"Thousands of dollars are loaned on character," said a St. Louis bank president at a recent convention of bankers; “for there are men of such high character — though not rich in this world's goods — that they will not borrow more than they can pay.” That was the reply he made when he was asked concerning the ability of small capitalists — men doing a small business — to raise money on credit. Another banker put it more bluntly, saying that he would rather lend money to an honest poor man than to a rich knave who could give substantial security. The tenor of all the replies was a tribute of hard-headed businessmen to the great value of a business reputation for honesty. It was a striking evidence of the fact that proved integrity is business capital, and that such capital is within reach of every man.
“A dozen men,” said a well-known businessman to a youth just starting in business, "will sell you an outfit on credit because they know you. Poverty, with such a character as you have, is better capital than ten thousand dollars would be to some men." "Every young man comes in contact with chances for money-making," says a prominent merchant. "To use them, he must have friends who have learned to rely on his honesty and judgment. Such friendships are only made through the medium of a carefully cultivated reputation for integrity of purpose."
If any young man proposes to conduct any kind of business it is of the utmost importance for him to know, at the outset, that the mercantile world is “business-like” and systematic, and that merchants act upon the principle of keeping tally. Everything counts. Commercial agencies record every movement made from the time one enters business. If not fair and upright in all your dealings, you will be greatly hampered; if honest and trustworthy, your credit may in time be unlimited. Creditors will have nothing to do with a person tricky and unscrupulous; merchants and bankers extend credit according to their confidence.
Merchants have the best fraud police. They have their regular detective agencies in their Duns and Bradstreets; they have their private detectives in the shape of their credit men. They also have credit guaranty companies, — a modern invention. The most minute information is recorded by the mercantile agencies. The nature of the business, its details, and the life-stories of the partners, their ability, habits, and character are all given.
All these precautions are not an absolute protection against fraudulent men, but they do protect against men who continue to be fraudulent. No one can visit one of the great business agencies without being impressed with the magnitude of their recording work. Every businessman’s record is either for him or against him.