Evening Star Newspaper, June 19, 1921, Page 24

" 24 STEEL BUYING ONLY FIN FOR PRESENT NEEDS Prices Shaded in Some In- : stances—Copper Quiet. : -General Metal Review. {NEW YORK, June 18.—The steel rnrket is dull and depressed. - The irade is buying only as supplies are required to flll immediate needs. PPiés 2avi been shaded in some eases and some of the independent companies have made further re- adlustments in their wage scales to Fédute costs. The price, howsver, seems to have little effect on the volume of sales, and consumers gen- erally are looking for further reduc- tions and continued dullness until something occurs to revive confidence in the industrial situation. - Pig Iron Market Dull, The pig iron market is very dull, Wwith only occasional spurts to save it from complete stagnation, and prices - are easy. elopper, has been guiet. e Nothing ANCIAL ducers, influenced by “cul duction, ask more. Lead is easier without stimulating demand. The heaviness resulted from a sagging tendency in the west and London. o Tin, firmer, reflecting a better tone in London and straits, although busi- ness continued light. Zinc demand shows little improve- ment, but offerings are not pressed and the tone is somewhat steadier. Reported purchases of June and July deliveries by producers indicate that | prices are below the cost of produc- features. MOUNDSVILLE TO HAVE TWO JULY EXECUTIONS {One on a Thursday Will Be First at Prison, Second in State to De- part Fyom Friday Custom. Special Dispatch to The Star. CHARLESTON, V.- Va, June 16.— Twa executions are scheduled to take place in the state prison at Mounds- ville {n-July; . < Jacob Luts was sentenced in the Taylor county circult court a few days -apf to die on the gallows on Friday, foly 22, for the murder of Chief o TYolice Phillips of Grafton, in Japuary, ‘919, g obart { ‘Pittsburgh”) Grimm is the other man to die next month. Grimm waa convicted of the murder of a tion. Antimony quiet and without new ; SHARP DECLINES STILL A FEATURE NEW YORK, June 18.—Forced liquidation, professional pressure and absence of buying power were the outstanding factors of the sixth suc- cessive week ‘of unsettlement and sharp declines in the securities mar- ket. s Liquidation encompassed shares of the best type,'but expansion of the aggressive short account mainly in- volved stocks whose earning, capacity had steadily dwindled since the close of the war. Oils were in a class by themselves. Mexican Petroleum, at an extreme reactisn of more than 30 Moints, fre- quently overshadowed all other op erations and added perceptibly to j demeralization of. the general list. Decline of United States Steel com- mon to the lowest quotation in six years was another disquieting. factor to those who regarded that stock as a barometer of industrial conditions. Questions of federal taxation. for- eign’ obligations and financial re- quirements of the railroads influ- enced trading. Lowering of the local rediscount rate on commercial paper, additional contraction of speculative loans and increased offerings of demand funds NEW YORK BANK ST. NEW YORK, June 18.—The actual condition of clearing house banks and trust companies for the waek shows that they hold $46,906,790 reserve in excess of legal requirements. This is @ decrease of $1,479,630 from last week. The statement follows: Loans, discounts, etc. increase, $115,511,000. Cash in own vaults, 'members fed- eral reserve bank, $75285,000; de- crease, $3,591,000. Reserve in federal reserve bank of member banks, $524,691,000; decrease, $1,229,000. Reserve in own vaults, state banks and trust companies, $8,720,000; de- crease, $364,000. Reserve in depositaries, state banks and trust companies, $§,693,000; in- crease, $285,000. Net demand deposits, $3.739,885.000; increase, $2,727,000; United States deposits’deducted, $243,151,000. deposits, 34,296,000, de- crease, $3,985,000. Circulation, $32,591,000; 4,604,518,000; decrease, Aggregate reserve, $542.104,000. cess reserve, $46,806,790; decrease, ummary of state banks and trust companies in Greater New York, not included in clearing house statement: Loans, discounts, etc., $620,722,200; increase, $7.900,800. Gold, 3,300; decrease, $17,000. Curreficy and_bank_notes, $16,753,- 900; decrease, $1,121,500. Deposits _with _Federal Reserve Bank, New York, $53.414.900; decrease, 512,500. | _Total deposits, $653.914,600; increase, | $4,936,200. GRAIN AND PROVISIONS. CHICAGO, June 18.—Chicago Board of Trade.operators had their eyes on the weather map and' their ears tuned to reports from the grain flelds today. Forecasts of cooler and un- settled weather and expgrt opino! that wheat rust reports were premi- ture turned the market downward after a fairly strong opening and all options closed near the low point of the short session.. Wheat showed net losses of 1 to 2% cents; corn of 1% to 2 cents, and oats of % to % cent. Provisions, influenced by a strong yard market, finished unchanged. to 7% cents higher. Wheat started 2a2% cents higher, the early belief being that the hot, dry weather was forecast to con- tinue. Commission houses appeared on the selling side early and a pri- vate report from Winnipeg predicting a spring wheat crop of 360,000,000 bushels for Canada helped weaken the market. This was accented by domestic predictions and by the Okla- homa board of agriculture's state- ment that the acreage in that state was 1,000,000 higher than preliminiry estimates. Price fluctuations ~ were rapid, but the gains were only frac- tional and at the close the market was 3.0 5 cents under the top price. Corn and oats followed wheat, the course of the former being hastened when some eastern houses reversed Friday's attitude and sold corn. Country offerings were reported as fairly liberal and crop reports gen- erally excellent. Provisions resisted the grain RANGE OF MARKET AVERAGES The following chart shows graphically the action of forty repre= sentative stocks dealt in on the New York Stock Exchange. The period covered is the past month, up to and including the close of the market Friday, June 17. The lower section of the chart indicates the relative activity of the market. JUNE s——— M AY 81909 23242522731 1 2 3 46789 * ~———SCALE FOR INDUSTRIALS —— STUVY ¥OI VIS ——rt MILLION SHARES in- finite has been developed regarding a § 3 i 4 in hogs 3 milliona'r: wire manufacturer of|from interior sources evidenced fur- i i fluence becausge of an upturn 3 fumors of large inquiries from Ger- | Dittsbursh in Brooke county. Two |ther relaxaton of (he MONEIAry | qod bra e en ana | and a trade report by a leading house (Copyright, 199, by W. §. fisaar.) b g L ma";"““ Snihange |nccomplyen received - twenty-year | strain. ! other banks and trust companies in | that European demand showed signs High 1 Righ - P e Bt e T orks ‘eaue™ent | sontencre and a third a life sentence | Movements of international ex- | {UNTyork C3 and United States de- | f reviving. Trade. however. was s TR T = ”-a i © Pro- | for the MHme. change were in keéping with adv. 2 5 Bl 31137, | dull. ..109.88, B 80 P Soted 2 more hopetul festing Pul“ Vinini> %N be t.s first man to die | industrial and economic conditions | hosits: $605.321,400; decreuse, 351137~ | Wiy vopg, June 15—Wheat, spot. 1111.785337, November 3 |Rails 77.56, January 15 bhiso inees.ag | .y a ThuPsday in the state prison at | in Europe and Latin America. 2 s 2 700. | easy: No. 2 red, 1.60; No. 2 hard, 1.62: " Sade-have sars <. - | Mounds 1lle. The custom has been to | Dealings in bonds were of the usual | Bonks: Cash in vault. $26408788 | S0%% Mianitoba, 1.58; No. 2 mixed Low 1020 . LewimitoDate = omestic .unsumer: . Mo _in-|cxecute ~n Friday in West Virginia, | week end character. Liberty issues 690,400, i * 777 L durum, 1.77, c.if. track New York 5, December 21 | Industrials. 67.57, June L ;;‘;f""n‘;';:‘;:S:i‘m;“i;a'g‘;':li}fe:h:;s and lh‘r “ction of the Brooke county |and victory notes showed only nom- R first half July shipment, 3 3, February 11 | Rails. 67.86, April 1 e ces court naming July 7 as the date|inal changes, but speculative rails —_— Corn—Spot.-easy; No. 2 yellow an : il lots of electrolytic are said to | for Gr™in's execution, is the second |and some - foreign flotations were ' Jurywomen are very quick in tak-|No. 2 white, §4; No. 2 mixed, 83t c.if. . Twenty Industrial e s";""‘-':‘!::l“cuw P btainable around 13 cents for |departu® from the custom in the |lower. ' Total -szles (par value), in¢ up a point, accordina’ to one|New York, ten-day shipment. " A G A T miae Ttah Copper po! y. although larger pro- | history <f the state. { $5.430,000. judge. Oats—Spot, easy; No. 1 white, 50. AmGuraryy Anmic e en Electric Texas Company ~ Westinghouse Am Smelting Baldwin Loco Goodrich U S Rubber Western Union — Twenty Rallroad Common Stocks Used Are: Atchison C M & §t Paul K C Southern orthern Pacific Reading < 1 Baltimure & Ohio Del & Hudson Lehigh Valley Southera Pacific I Cs dian Pacific Erie Loui ish orfolk & Western Southern Rwy & Ohlo Llinots Central N X Central Penpsylvania TUnion Pacitic ecial Speci June tion represents the quite accurately. enameled provision chamber of practical size, ber, holding ap- prioximately 25 pounds. of ice. reductions: Full size White Enamel Be Full size Brass Bed. $36.00 to.. .. ACHT CHAIRS, with Folding Stool, with carpet seat........coeennan - Seventh and Eye Streets - Refrigerators The feature is the Alaska we are emphasizing the Lift- top style especially—because of desirability. The illustra- style Alaska Star. top icer. with’ “June Sale” of Beds All sizes—all finishes—all grades are included in .. special selling. Here is how attractive we’ve made the and light fillers. REDUCED from s;uoo to.. Full size Metal Beds, in.Ivory finish; contin- uous post. REDUCED from $24.50 to ‘and back. - Folds up compactly.:....... Three-piece Bedroom Suite, Dresser, Vanity Toilet Table with deep center mirror and swinging sxd; ;‘ni'n;‘ors; full size Double Bed in wood. Excellent workmanship and finish....... s ice cham- 51655 $16:3% $2175 3150 ; d ; continuous post REDUCED from As ilustrated, with strong\Mrame and can- \-asrof goog Seecnsion $9.85 $365 footrest .... white canvas seat “June Specials” . popular Three-piece Suites— Three-piece Bedroom Suite. in American_\\'alnul—Dre:ser, size¢ Wooden Bed and either Chiffonier or Toilet Table...... in Mahogany-finish, wi! This Suite can be supplied with a large Chifforette with enclosed cupboard instéad of Vanity Toilet Table for.. Baby Carriages You know we feature two makes — Whitney and Lloyd Loom—they being superior in design and make—and provide a variety that meets the re- quirements of every taste, and every purse. We can guarantee both makes. Here is one of the many styles —Genuine Reed Stroller, in Ecru finish; with wire wheels, rubber tires; foot 314 85 o brake and steel pushers. - —$125 Machine, Bedroom Suites Keeping Right on ‘With the “June Specials” Each week presents /ts interesting items—which tell of saving—and give opportunity to add to*the home's comfort and con- i venience. There’s another list of the “Specials” in today’s Post. Combined they give you a bountiful budget of bargains. House & Herrmann with durable denim; seats well full $3009¢ $325.00 th large Summer A very attractive Cotton Rug that is close-woven and ce. They are rev: a of neat patterns. They'll wash easily—and are ideal for will give long servil summer use. 24x48 size. . ....... $1.98 30x60 size.. . . . Also a limited quantity of Reversible Rag Rugs—the _good old-fashioned kind. 24x48 size.. . .. 30x60 size.. . .. - We are still selling E-2 Columbia Grafonolas 1 {3 o B A el < and gives you the benefit of the special'teg\)s of 5 Cash -2 is.a machine with true Columbia tone. and balance in small weekly or monthly payments the autos ‘House & Herrmann one of these summer com- forts. They are constructed for durability and safety. reduced as follows: tionate reductions. matic non-set stop device—and the Daily Movement of Averages: Industrisls. Rails. 157 ONDS AT A GLANCE. June 3, Fridsy . Maturity 1921, Close High. Low. date. High. Low. Yesterday. Yield Liberty 3%s . (10040 8930 6-15-47 9350 8600 8840 424 Liberty Ist 4s 10348 8300 547 8850 8524 8730 48 | Liberty 2d 4s 19200 8140 11-15-42 8810 8534 8666 503 Liberty Ist 414s . 9400 8400 6.15-47 8870 8540 8752 512 Liberty 2d 4i4s 5 8840 8530 8680 529 Liberty 3d 4%s... 9200 8800 9146 571 | Liberty 4th 414 00 82, 8860 8574 8688 543 Victory N . 9940 9460 9850 9580 9836 464 Victory 43s 9940 94.70 9880 958 9838 564 All Couch. Reduced the time to select The Year 1921 to Date on the Washington Stock Exchange. Furnished by W. B. Hibbs & Co., Hibbs Building. Up to including Friday, June 17, 1921. Sales. BONDS. High. . $7.000—Ana. and Pot. River R.R. 51 73 7,.000—C. and P. Telephone 1st 3s. 120,500—Capital Traction 1st 5s. 2,000—City and Suburban Ry. 1st 5s. 13.000—Metropolitan R. R. 1st 5s. Open. 62 Now & 58 .. ec. Power deb. 6s.. 53,100—Pot. Elec. Power gen. 6s. 2,000—Wash., Alex. and Mt. Ver. 5s.. 62,000—W: . Gas Light gen. 58 162,000—Wah, Ry. and Elec. con. 4= 42,000—Wash. R) Couch Hammock, covered . - X and Elec. gen. 6s Refrigerator Co.’s make—a ! o P § i s . 3 . tufted; side and back wind- 123,300—Wash. Gas Tls.. . Standard. 6f scientifc Te.l ] lllua_trame of the ad}afltage you may expect here_ these da_\s—.m Suites shields aditstable headiet, frigeration and practical of varying number of pieces; and desitable types. We are featuring below REDUCED from 517 50 utility for the home. And $2250 t0..cuuunenen * & W. Steamboat. Gray Asgle Stands....$8.75 and Elec. com All other Couch Hammocks 8—Federal Nat. Bank 9—Liberty Nat. Bank. 10—Nat. Bank of Wash 30—Nat. Metropolitan B 5—Riggs Nat. Bank. $38.00. Now $30.00 $25.00. Now $20.00 Others up to $85.00 at propor- 23—Amer. Security and Trust. I 462—Continental Trust 120—National Savings and Trust 85—Union Trust . 30—Wash. Loan an 2—East Wash. Savings Bank. 10—Merchants' Bank . 60—Sec. Sav. and Com. Bank 17—Union Savings . 5—Wash. Mechanics' . 75—Firemen’s Fire Insurance. . 6—German-American Fire Insurance. 3—Real Estate Title Insurance. *56 10-20—Col. Grapho. com 134 L Grapho. pfd 904—Mergenthaler Linotype . 1,027—Lanston Monotype 42—Washington Market *New York close, 5%. tNew York close, 26. I LIVE STOCK MARKETS. I BALTIMORE, Md., June 18 (Special). —The live cattle market is quiet and lower. What demand there is now is centered on top-grade stock. Receipts moderate but ample for trade wants. Quotations today at Light street wharf. Beef cattle, first quality, per pound, 7 to 8; medium, 5 to 6; bulls, as.to quality, 3% to 5%. Cows, choice’ to fancy, per pound, 5 to 6; common to fair, 2 to 4; thin steers, 31 to 41;. Oxen, as to quality, 3% to 5. Milk cows, choice to fancy, per head, 50.00 to 75.00; common to fair, per head, 30.00 to 40.00. Calves, veal, choice, per pound, 10; ordinary to medium, per pound, 7 to 8; heavy, smooth, fat, per head, 12.00 to 15.00; rough, common, thin, per head, 5.00 o 10. 3 Sheep, N 1. wool on, per pound, 4 to 5: clipped, 3 to 4: old bucks, 3 to ki common. 2. Lambs, spring. choice, per pound, 10; fai Eholes, r to good,, Hogs—Straigh sows, as to q BALTIMORE PRODUCE. BALTIMORE, Md. June 1§ (Spe- cial).—There is no surplus arriving of native and mearby strictly fresh €Egs and for this character of st there is @ good and constant demuny with the tone of the market firm, closing at 26 cents a dozen. With the warm weather prevailing prompt shipments are advisable as all held, stale and heated eggs are discrimi ed against, eve - St Fs n at a sharp dis. Under more liberal receipts of livi spring chickens the market eaved off | the latter part of the week and closed Wwith 50 cents a pound for 13 pounders and over, and 45 to 58 for 1% to 1%. One-pounders, especially in ample supply and slow lavor at 38 to 40 cents. Old hens are fairly steady, with heavy, fat fowl in constant demand at 27 to 30 cents. Old roosters slow sale at 15 to 17 cents. There is a fairly good demand for choice spring ducks, averaging three pounds apiece, at 35 and 36 cents, while smaller will bring 30 and 32, but old ducks are neglect- ed at 25 to 28 cents. Pigeons in limited request, but light receipts hold prices steady at 35 to 40 cents a pair. New potatoes hit rock bottom the middle of thé week, with $2.50 a bar- Tel as top price, and the market was cleaned up of all surplus stock. Fol- lowing a reaction prices advanced and the market closed firm at $2.50 to $3.00 per barrel and $1.00 to $1.75 for Nos. 2 and 3 stock. Old potatoes show some, improvement, under lighter re- ceipts the latter part of the week, but prices remain at 50 to 60 cents per 100 pounds, with culls and No. 2 Btock hardly salable. Receipts of cabbage, string beans and asparagus ample, and, under only e fair demand, the market is easy at, respectively, $1.50 to $2.00 per crate, $1.50 to $1.65 per bushel and $1.50 to $3.50 per dozen. Native rhubarb, let. tuce and squash in fair demand at 3 and 4 cents a bunch, 75 cents to $1.25 per bushel and 50 cents to $1.00 per basket. Spinach and kale also in fair demand at $1.25 to $1.50, and 40 to 50 ceénts per bushel. Radish and spring onions selling well at $1.50 to $2.00 and 75 cents to $1.00 per 100 bunches. irable size early June apples are in good demand at $2.00 to $3.50 per barrel, but poor, small fruit is slow sale at any price. Berries and cher- ries of all descriptions continue scarce and good stock is wanted. —_— Wasn’t Sure of the First Game. Young Man—Does your daughter play Mozart? Ma Peters—Yes, I think she doe: but she plays lawn tennis much be Rugs rsible and in a variety .- $3.98. ....$1.69 -2 §2.69 . 5 to 61 stags and boars, per Ib., 3 to 4*Live pigs, as to size and quality, ‘per Ib., 12 to 15. Shoats, as to size and qu; lity, per 1b., 10 to 12. CAGO, June 18 (United States bureau of markets).—Cattle—Re- ceipts, 1,000 head; compared with a week ago, beef steers, 15a25 lower; she stock, generally 76 to 1.00 lower, spots off more; bulls, canners and cutters,. 25 lower; calves, 50 to 75 lower. Hogs—Receipts, 6,000 he: opea- ing, 10 to 15 higher; one load sorted lights, 8.30; practical top, 8.25; bulk, 8.00a8.20; good elearance pigs, strong, mostly, 7.75a7.90. i Sheep—Receipts, 2,000 head; re- ceipts today, nearly all packers di- rect; compared with a -week ago, lambs, 1.00 to 1.25 lower, spots off more; yearlings, 75 to 1.00 lower; sheep, 50 to 75 lower. NEW YORK, June 18.—Cattle—Re- ceipts, 5§0 head; no_ trading. Calves—Receipts, 390 head; steady; veals, 9.00213,00; culls, 8.00a8.50," Sheep and lambs—Recelpts, 4,140 ‘85 Seventh and Eye Streets culls, Brown of _Chi re-el and M. A. Moody of St. Louis treas: head; slow; sheep (ewes), 2.00a4.00; 6.00212.50; LIVE STOCK MEN ELECT. was ected president of the National Live Stock urer. Kansas City, Mo., was selected tion, ter. _ o lls, 1.0081.50; lambs, por I.SOI?.IOO. ! CLEVELAND, June 18.—Everett C. Exchange at the closing session of' its annual meeting today. J. 8. Boyd of Chicago was elected secretar; for the next conven FINANCIAL. ACGEPTANCES AND - THEIR USE IN TRADE Guaranty Trust Officer De- scribes This Credit Feature in Plain Language. 1 BY J. L. O'NEILL. Vice President Guaranty Trust Co. There are two kinds of acceptances —trade acceptances and bank ac- ceptances. In Great tries of con every coma Britain and in many coun- inentzl Europe Lractically gvery reial ~dansaction is financed Y means of .. wme draft or blll of exchange. The draft is drawn by the seller of the merchandise and presented to the burer, who, if he finds it satisfactory, ®rites across its ace the word “Accepted,” signs his name, and returns the draft to the ?elleh It then becomes a trade ac- ceptance—a xound circulating medium of finance, which ordinarily com- mands a low rate of interest and Which the seller, if he desires, may discount at his bank. . The use of the trade acceptance in this country prior to the civil war was more or less general, but after that conflict the increasing financial disorganization and the risk attend- ing the granting of long credits cre- ated a demand for cash, which made the eash discount system so popular that it Bee slace continued in favor. This kg2 ® ke open book account While fhe ®Rde acceptance today is being used to a much greater extent than a few years ago, goods are stiil bought and sold largely on opra account. Urging General Use. A very active and aggressive propas ganda is being carried on throughout the principal commercial centers ot the country in favor of trade accepi- ances, and’ their use has considerably increased. Many of the leading com- mercial and industrial concerns hav. adopted this new system of credit and most banks are inclined to pur- chase such two-name paper ari from actual commercial transa between the drawer and the acceptor. A trade acceptance is a time draft or bill of exchange, drawn by the seller of goods on the buyer for the purchase price, and accepted by the buyer, payable on a certain date at a T designated on the face of the instrument. A trade acceptance amounts to a negotiable guarantee by the purchaser of goods that at & specified time and place he will pay the purchase price. An acceptance being a negotiable instrument, the seller, by means of it. may obtain the use of the outlay it represents for further enterprises by selling it to his bank. A note is ordinarily used to borrow money or to settle overdue obliga- tions. A trade aceptance shows on its face that it is drawn by the seller on the purchaser of merchandise for the price of the goods. When accepted, it becomes a valid promise to pay on a specified date, a negotiable instru- ment equally as bind upon the person acceptling it as his promissory note would be. a_trade accept- ance is an obligation of the buyer in- dorsed by the seller, the bank dis- counting it is secured by two-name instead of Ly one-name paper, as is the case with most promissory notes. Trade and bank acceptances are in- struments of credit, which should be employed in the financing of business and industry, in the moving of crops, and in numerous other ways, and American merchants should make use of them as the best method of car- rying on both their foreign and do- mestic trade. The seller desiring to use the ac- ceptance method, in making out an invoice for a sale of goods, forwards with the invoice a time bill or draft drawn on the purchaser for the pur- chase price, payable at a specified date; or where the buyer makes sev- eral purchases of small amounts dur- ing the month, the seller in making up the monthly statement forwards with it a draft or bill made out for the total amount due. Hold THI Maturity. When the purchaser of goods re- ceives the draft or bill he may pay it at once, having deducted whatever allowed as a discount for prompt payment in_cash, or he may write across the face thereof the date and the words, for example: “Accepted— ble at Guaranty Trust Company New York." The buyer then signs his name and returns the instrument to the seller. The latter either keeps it until a few days before it matures, when he sends it to his bank, which makes collection from the bank at which the instrument is payable, or if the seller desires funds, he may discount it at his bank or sell in the open market through an acceptance dealer. The place of payment is at the office of the buver of the goods, namely. the acceptor. if no place designated. To facilitate the collection of trade acceptances the paper should be made payable at the acceptor's bank, and the banker and acceptor should make arrangements so that maturing acceptances are charged Yo the acceptor's account on the date of maturity. In most states, however, the banker may auto matically charge maturing, accep- tances to his customer’s account. In countries abroad. where bills of exchange and acceptances hawa reached their highest development as credit instruments and circulating mediums, it has been the custom that they shall be issued for com mercial purposes against actua® business transactions. They should represent current merchandise trans- actions eonnected with the purchi and sale of goods, and should not be given for overdue accounts or borrowed money. The custom in this country follows the rulings of the Federal Reserve Board respecting eligibility for discount and purchase by federal reserve banks. The trade acceptance release§ runds tied up_in outstanding accounts. and invested capital acquires more liquid~ ity under a system which offers ne- gotiable paper in place of non-ne- gotiable open-book accounts. Rela- tions between buyer and seller are vastl; improved by paper which clearly defines their respective rights and obligations, and extravagance is checked by the constant reminder to the debtor that his credit is apt to be tested at any time. The buyer derives certain advan- tages from the use of the trade ac: ceptance. It develops in him the habit of careful buying, enables him to judge how he stands financially and what he can do with his capital and it strengthens his credit. H is able definitely to fix the dates .-* his payments, thus developing habit of promptness in fulfilling ob- ligations. The small buyer is better able to compete with larger firms, since the trade acceptance gives him a better credit rating and places his business on a definite financial basis, which cannot be the case when his debts are in the form of open accounts with go_means of ascertaining when they will be liquidated. Sellers or manufacturers with limi ed capital, by the adoption of the trade acceptance method, avoid the necessity of heavy borrowing, and the tying up of their capital and borrowed money in open accounts, and, as their operating expenses are reduced, their profits are accordingly increased. " Moreover, the merchant can esti- mate with a considerable degree of certainty what his income will be from month to month, for, with its fixed date of maturity, payment of a trade acceptance can usually be counted upon. A merchant receiving trade acceptances may discount them at his bank and thus obtain the im- mediate use of funds required for hig siness. o b“’l‘he practical effect of the ordinary ook account is to burden the seller with the financing of the customer's business. This not only ties up the capital of the seller, thus narrowing the scope of his business, but also weakens his financial statement be= cause of the character of his accounts. By demanding trade acceptances, the seller able t:.‘olzllmme mfll‘fl:; culties, since e accept . considered an excellent investment foe v and may be readily negotiatofie—