New-York tribune., 1918-06-18
Business Men
Urge Wider Use
OF Acceptances
Paul M. Warburg Declares
New Finance Method
Will Help Win War
Especial Dispatch to The Trlbune)

Especial Dispatch to The Tribmne)
CHICAGO, June II. American
business finance should be placed upon
war basis which will withstand any
strain that may be reasonably antici-
pated, according to financiers of nation
WIDE prominence who spoke before the
American trade acceptance council
here to-day. Paul M. Werburg, vice
governor of the Federal Reserve
Board, IN delivering one of the princi-
pal addresses declared that the most
potent weapon against the enemy
could be found in the adoption of the
trade acceptance method of extending
and utilizing the credit of the nations
business.
Mr.. Warburg said that more than
4'ooo firms had adopted this plan al
ready, and had found it the solution
OF problems attendant upon the rapid
shifting of money during the war.
Charles A. Minch, of Cincinnati,
Ohio, president of the American
Bankers Association, gave the trade
acceptance plan his Endorsement in an
address at the meeting tonight. He
went into an extensive discussion of
how credit facilities of the nation
should be used during the war time.
Mr.. Warburg's Plea
Mr.. Warburg advised the use of
trade acceptance in Che purchase of
goods as means of aiding the can
neries of the country, which he de-
clared are facing a crisis on account
OF the high cost Of cans and other
materials needed in preserving the
crops.
There can be only two classes op-
posed to the trade acceptance idea"
said Mr.. Warburg, weak or unreliable
purchasers who object to binding
themselves to definite obligation to
pay on certain date, or firms of
great financial or commercial strength
who desire to preserve their positions
to advantage as against weaker com
petitors.
AT time when SO much depends
upon using every possible advantage
to speed up production, so as to avoid
unnecessary tie-up of funds, the use
OF trade acceptances may be considered
a contribution to the national welfare.
1T is one of the main virtues of the
acceptance system that it makes for
greater f1uidity of credit. Instead of
permitting one section Of the country
60 become overloaded in consequence of
local seasonal requirements, absorbing
all available cash resources, bankers
and trade acceptances bring relief by
nowlng into discount markets of other
olstrlcts where money is more plenti-
tul. The adaptation Of the plan Of
financing the coming cotton crop large
ly through bankers and trade ACCEPT
ances ought to result in greatly cas-
ing the burden to be carried by the
South during the season."
j. Il. Tregoe, secretary Of the Ma
speaking before the C council iolt broueht ~ya
cheers when he declared that the an
nouncement that the new Liberty Loan
might be $6,000,000,0O0 did not create
ripple in the financial circles of the
nation.
IF it were not for the Federal Re-
serve act," he said, "it might have Gre
ated panic. In fact, if it had not been
for the Federal Reserve system we
probably would now be paying indem-
nifty to the Prussian, for we would not
have been able to lend so much money
to the Allies, nor to mobilize such vast
sums as we have for the prosecution
Of the war"
Credit Men to Meet
Among New York men who spoke
were Lewis E. Pierson, chairman Of the
Irving National Bank; Norton H. Fry,
Of Bernard Scholle & Co.; Waddill
Catchings, Of Goldman, Sachs & Co.;
Sylvan L. Silk, OF Seeman Brothers,
president of the New York State
Wholesale Grocers' Association, who
qualified his Endorsement, by declar-
ing that he believed the system of
cash discounts preferable for the
grocery trade, and c. C.'Dula, president
of the Liggett & Myers Tobacco Com
pany, New York. One of the strongest
advocates Of the adoption of the system
was Charles A. Hinsch, president Of the
American Bankers Association, of Gin
cinnati. Other speakers were DR.. ]. T.
Holdsworth, dean of the School of
Economics of the University of Pitts
burgh; ]. H. Tregoe, secretary treas
urer of the National Association of
Credit Men, and D. C. Wills, chairman
Of the Federa1 Reserve Board of Cleve-
land.
The council was presided over bv
Lewis E. Pierson, president of the
Irving National Bank of New York City,
The credit men begin their three-days'
convention tomorrow.