The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-02-16
TRADE ACCtPTANCES
SAVES TINE AND MONEY
Oliver J. Sands Points Way To More
General Use OF splendid Bust
ness System.
GREAT BooKkEEprNG SAVING
While What Arc Now Open Accounts
On Merchants Books would BE
Liquid Assets, Readily Negotiable.

The adoption OF trade acceptances
instead of the present system of pay
ments was urged last night by Oliver
J. Sands, president of the American
National bank. in an address before
the Richmond Credit Mems associa-
ton. at their quarterly meeting. held
in the Business Mems club. Trade
acceptances. as explained by Mr..
Sands, are drafts drawn by the seller
on the purchaser at a stated period
OF time in payment of invoices. The
system has worked with considerable
success. and II made general would
rsult in savings to the seller, pur-
chaser and all persons concerned,
The system OF trade acceptances Is
the best thing that the federal re-
serve act has done for tho merchants.
the speaker stated. Under 1t. when
purchaser receives a bill of goods
from a Arm. this buyer. instead OF
waiting thirty or sixty days in which
to pay the invoice. accepts at. the
time of delivery OF the goods, a draft
payable at the end OF n certain period
according TO the terms of the invoice.
This draft is then deposited in n bank
by the seller. and when due Is charg
ed against the bank account of the
purchaser.
Simpiifie~ Bookkeeping.
For tho purchaser. this system will
do away with accounts payable" de-
ciared Mr.. Sands, and for the seller
the expenses OF handling his accounts
receivable will be reduced. There will
be no monthly statement to be mail
ed, no heavy book coping expense.
The purchaser will then have the
benefit of this saving on the part OF
the seller in reduced prices for
goods"
Another large advantage. the
speaker pointed out. are the letters of
credit which would be exchanged be-
tween banks. There are many people
who have found the advantage of
paying cash for their purchases.
These people, he said, would go to
their local bank, make arrangements
to have the institution finance them
TO the extent they wish TO purchase.
and obtain a letter OF credit to tho
bank in the city in which the pur-
chasses are to be made On prescnta-
ton OF the letter at this bsn nix, the
money would be made available, and
with II cash payments made for ma
terials.
Trade acceptances are the highest
form OF credit" Mr.. Sands declared
To the association, and banks. large
and small, will be glad TO handle
them. Notes would be unnecessary.
no expenses of open accounts would
be incurred. and accounts receivable
would be turned into liquid assets"
Urges Consideration.
MIR Sands urged that the system bo
considered by the dealers. lie satd
il would necessarily he slow in get
ting started, but once begun, il would
be of vast benefit. 1t was announced
that a conference on the subject would
he held In New York on March 8,
and any one desiring to attend as a
delegate from Richmond can DO so
by communicating with Colonel 10
Lane Stern, secretary OF the Credit
Mems association. who will make the
The meeting was we'll attended last
1Ight and many other important ques-
ions were considered Leon Waller
stein made an address on Taking
inventory" which proved OF interest,
and steps were taken to look into the
esta Adjustment OF an adjustment bu-
-eau in this city. TO be operated un-
Ter the control OF the association.