Pamphlets, Volumes 39-41; Volumes 43-44

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Page 10 - Accepted," and filled in the date and place of payment. The essentials of a sale have been completed. Smith has inspected the goods or is satisfied that they will reach him in proper condition. Details of credit have been decided upon and, more important than this, have been certified to by these two business men. If the facts of the case differ substantially from the statements certified to, these two men have conspired to deceive. The obligation described has arisen from the sale of goods by one...
Page 7 - Neither of these need be taken seriously. A purely academic judgment upon a process so intimately related to value means but little to business men, and the man whose opposition to a movement is based upon pure selfishness in time will show his real colors and will not figure in final results. Therefore the charge that the trade acceptance is being abused need not be important in the life of either business or the acceptance. The sober, solid sense of American business men supplemented by the American...
Page 8 - How does operating an open account, have decided to go on a ac trade acceptance basis. Jones sells merchandise to Smith on credit. A price is agreed upon, also the credit terms and the sale is closed. There remains then only the question of payment. Jones puts in writing on a trade acceptance form his understanding of the terms of payment and signs it then or later. He presents this instrument to Smith and 9 in substance asks: "Does this express your understanding of our agreement?
Page 12 - ... the . credit standings involved and to take nothing which does not represent a good credit risk. And still no inducement to indulge in fraud or to abuse the trade acceptance method has shown itself. Further, the paper -may be filed away and held until maturity and payment, this time by the banker. It is possible, however, that the bank may find it convenient to realize upon this and other similar commercial paper held by it, and coming to it, through either discount or purchase. In this event,...
Page 10 - ... is delivered to Jones. Thus far it has been a plain bargain between two business men, each in a position to protect his own interests. If in the process one takes an undue advantage of the other, the fault certainly does not lie in the method employed. Now occurs the possibility that a third party may be brought into the case, the banker. This is not necessary, though, as •Jones may simply file away the acceptance and hold it until shortly before maturity, when he will send it for collection...
Page 17 - The business house of 17 modest capitalization will come to see that in a fully developed use of the acceptance method is to be found a means whereby there may be secured the maximum of independence in operations regardless of size. The great concerns of the country which, from the very nature of their relation to business generally will continue to lead in national business direction and in the development of improved business methods, will come to realize that in the trade acceptance is to be found...
Page 11 - I find that I need money, I hold this acceptance executed by Smith, whom you know. I should like to have it discounted." The banker says: "I am very glad to discount this paper. I know Smith and know his credit standing to be excellent. I have reasonable assurance that he will meet his 21 obligation at maturity.
Page 16 - Contribution effort involved in its study and presentation and t°Americ<tn trial is well worth while. A conclusion favorable to the acceptance method is sure to be reached if its test is serious and thorough. As the result of study new vision will come. The facts of the situation will finally be determined upon a basis of actual business merit. Then the work of the Council will have been accomplished. The business house of...
Page 9 - I prefer sales transactions to be closed rather than left wide open, as was common under our open account arrangement of the past. An agreement signed by both parties is, of course, much better than one unsigned or signed by only one of the parties. Beyond this, I am glad to be able to give you something upon which you can realize at any time if you find it necessary, particularly when so doing in no way interferes with my own convenience. I can see no reason why the fact that you give me credit...
Page 12 - ... and other similar commercial paper held by it, and coming to it, through either discount or purchase. In this event, a quantity of such paper — for sake of simplicity, let us say this particular SmithJones acceptance — is taken to a Federal Reserve Bank for rediscount. The Federal Reserve Bank examines the paper, notes that on its face it gives every evidence of complying with the requirements of eligibility as indicated by Federal Reserve regulations. notes also that it is endorsed by the...

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