CENTRAL COAL & COKE COTIPANr

Genetal Offces: Kansas City, Missouri

(Oregon-American Lumber Co., Vernonia, Ore.)

(Continued from Page 26) of thc Tradc Acccptancc to thc seller and to the buycr, the ncxt question is, How do bankers look upon Acceptances? I havc mentioncd earlicr in this talk that becaurc the Acceptancc is the obligation of both thc buyer and thc seller, it is more dcsirable from the banker's standpoint than the pl,ain note of tfic seller alone. That is obvious. Thc primary advantage in the cyes of thc bankcr, howcver, is that the papcr reprcsents a commercial transaction-an actual salc of goods -and therefore it is of the highest typc of tcmporary invcstment. ft is not unusual for the customcr who borrows on his own note to requcst rencwal at mahrrity. In discounting a Trade Acceptance, the banker knows the obligation is self-liquidating, and will be paid on a definitc datc.

- Perhaps thc scllcr does not carc to discount thc Trade AccGptancc at his bank, but prefcrs to carry it in his safe and to borrow on his note. Any banker who knows that his customcr sells on a Trade Accelrtancc basis will bc ablc to cxtcnd morc libcral credit facilities thgn wherc a customer sells on opcn accountc with problcmatical maturity. The buycr who givcs a Tradc Acceptance for his purchaaes, likcwise cnhances his crcdit standing with his bank, because the bank knows that the customer mects his obligations promptly.

That Tradc Acccptancca gencrally are rccognizcd a8 a most desirable form of bank investmcnt is evidenced by the fact that most Statcs, and the National Bank Act, whilc rcstricting loans to any one borrower on his own note to 10 per cent of thc bank'r capital and surplus, places no limitations on thc amount of Trade Acceptanccs a bank may hold. The Federal Rescrvc Bank cxpressly provides for thc rediscounting by banks of Trade Acceptances without limitation. Thc Fcdcral Rcecrve notc8, thc currency we largely employ todan arc in a largc measure secured by Tradc Acccptance*

In conclusion, lct mc briefy reiteratc thc advantages of Tradc Acceptances:

LAWRENCE H. TYSON

Following an illness of six weeks when he was confined at the Dante Sanatorium, San Francisco, I.awrence H. Tyson died on November 3. IIe was 24 yearc of age. He was the son of James Tyson of the Chas. Nelson Co., and prio-r to his illness he was manager of the Sunset Lumber Co. of Oakland. Funeral services were held at San Francisco on November 5. He is survived by his father and mother James and Grace H. Tyson, and t$'o brothers James Jr. and John H. Tyson.

To the sellcr they will

1. Convert capiial now tied up in book accounts into available cagh.

2. Dcfinitely fix maturity aad amounts of customcr's obligationa.

3. Greatly riducc collcction costs and losses by.bad debts, thcreby rcducing thc cost of doins bueincss.

4. Dccrca-sc unjust claims and returns of merchandisc.

To the buycr thcir usc will l. Promotc bcttcr businers mcthods.

2. Chcck overbuying.

3. Strengthcn tfi- acceptor's credit standing.

!. Enablc purchascs to be madi at carh prtces.

To thc bankcr their use will

1. Mcan more desirable papcr for Invcstment.

2. Griater latitude in mccting crcdit rcquirements of customcrs.

- We shoul4 by all mcans, encouragc thc use of Trade Acccptanccs.

Orange Belt Hoo Hoo Entertain Their Ladies

Annual Ladies Night was celebrated by the Orange Belt Hoo Hoo Club, at the San Bernardino Valley Country Club, on the night of November 5th.

It was a delightful affair, well attended, and well handled by Herbert F. Suverkrup, as General Chairman.

The Sawdust Quartet rendered several selections, and then the gathering of one hundred danced until about midnight.

The Orange Belt District is planning a Concatenation for early in December.