"In the morning," begins the agent in explanation of his system, "you send us $1,000 worth of duplicate invoices of the goods which you shipped today, with shipping bills attached. You attach to the invoices a note for $1,000, so the account may be kept from the notes, and not from the invoices which we hold. In return for the note we will send you a check for $800, less our commission of 2 per cent a month, just what you are paying now because your business is not done on a cash basis. The $200, or 20 per cent, we have to deposit in the bank which loans us the money which we in turn pass to you. When any bills are paid we will refund your 20 per cent which we hold. Any bank compels us to have a representative in your store to look after our interests, as a matter of form. We will just appoint your bookkeeper--a matter of form entirely. Once a month we will send a man over to check up your books. He will see that none of our money has been overlooked." BEGINS TO SHOW HIS TEETH. All this sounds businesslike and plausible, and the arrangement runs smoothly for a time, probably six months, to allow the manufacturer time to sell all his open accounts to the financial agent. Then the loan shark sends in a statement of the account, and, if the manufacturer complains, begins to show his teeth. On the statement appears all money the manufacturer has received and in addition an extra charge for $50 a month to cover the services of their agent--the manufacturer's own bookkeeper. Also an additional charge of from 1 to 2 per cent for additional service rendered, although the agency has had absolutely nothing to do with the accounts beyond holding them as security. All overdue accounts are charged back to the manufacturer, and a request for a check to take them up immediately accompanies the statement. As few accounts, if allowed to mature at all, are received by a manufacturer on the exact day when due, the check called for often is a formidable one. The manufacturer is at his wits' end. He goes to the agency post haste and, after they find it is impossible to hold him up for a check, they say: "Oh, well, never mind, the bank--always the bank--is pressing us on those overdue accounts, but we can hold up the 20 per cent until these accounts are taken care of. That will be satisfactory, we are sure." [Illustration: DEBT] LOSES HIS 20 PER CENT. After this the manufacturer's chance of ever seeing anything more of his 20 per cent has vanished. Each day the agency trumps up some fictitious charge of stamps, new check books, extra labor, taxes, additional fees or other charges that could originate nowhere but in the brain of a financial crook. Finally the manufacturer finds he has nothing on his books but accounts belonging to the agency, on which he is paying carrying charges of from 5 to 10 per cent a month. The agency refuses to return his 20 per cent, which they claim has been charged off by the bank to take care of the overdue accounts.