New-York tribune., 1919-01-16
Council to Boom
Acceptances Will
Soon Be Launched
]. p. Morgan & Co. In
crease Rate ON Call
Loans Secured by
Bank Acce eptanc ces

Backed by the leading financial in
been taken to form an organization
of nationwide scope, embracing banks,
merchants and manufacturers IN
its membership, to be known as
the American Acceptance Council,
whose purpose will be to pro-
mote and foster a broader use of
acceptanccs as credit instruments. The
organization will be formally launched
at q meeting to be held next Tuesday
in the W Woolworth Building. at which W.
P. G. Harding, governor of the tederal
Reserve Board, and Paul NJ. Warburg,
OF Kuhn, Loeb & Co., will speak. ,
Another interesting development IN
the acceptance market yesterday was
the action of ]. p. Morgan & Co. IN IN
creasing the rate on call loans secured
by bank scceptances, effective to-day,
from 4A to y per cent, restoring the
rate which was in force until last fall.
Since last August Morgan & Co. have
been making advances on call against
acceptances fo- rediscount at the FED
eral Reserve Bank to dealers and dls-
count houses at rates based on the dis
count rate of the Reserve institution
in order TO encourage the development
of a free and active discount market
in acceptance on the lines of similar
markets in London and Paris.
The American Acceptance Council 10
be founded next week will absorb
the present Trade Acceptance Council,
which has been doing educational work
in trade acceptances for the past two
years with striking success. The
growth of the American acceptance
market in the past four years has
been extraordinary, and it is the hope
of the sponsors of the plan to organ
ize the new nationwide council that
there will be even greater expansion
in the use of bank and trade accept
ances in the future. Bankers assert
that unless active steps are taken to
broaden the American discount market
1t will not be possible for the United
States to hold the foreign trade, which
it has developed during the war, as the
bulk of that business will flow to London
because of the greater discount faclll-
ties offered in that market.
At the present time there are out
standing in the market approximately
$500, 100000 in acceptances, against
100000 year ago and S2o0,000,-
600 two years ago Four years ago
w
ket at all
Preliminary organization work in
connection with the new American
Acceptance Council has been done by
a committee consisting OF Lewis +.
Pierson, of the Irving National Bank,
chairman; Beverly D. Harris, vice
president of the National City Bank;
Jerome Thralls, of the Discount Corpo-
ration of New York; Percy II. John
ston. Weep president of the Chemical
National Bank, and ]. II. Tregoe, of
the National Association Of Credit
Men. approximately 5000 has been
subscribed to cover the expenses of the
council during the first year of its life.
1t is planned to organize sub coun-
ellis in all of the leading cities of the
country, which will work with the
parent organization in this city The
council also plans to publish a journal
devoted to furthering the acceptance
idea. Membership in the national coun-
Gil will not be limited and an
urgent invitation to join will be
made to business mems associa-
tions. corporations. mercantile estab-
lishments and banks The council
will be governed by an executive COM
mittee consisting of fifteen members,
while the head of the organization will
be known as managing director. Tenn
porary officers will be elected at next
weeks meeting.