The sun., 1919-01-22
TO DEVELOP USE
OF ACCEPTANCES
New Council Of Bankers and
Business Men Undcrwrite
Trade Project.
WILL PUBLISH JOURNAL
W. p. G. Harding and P. NJ.
Warburg Speak on Use and
Abuse Of Custom.

ro- tie purpose OF leading tho devel-
c-n,en; Of the use OF bankers accept
rrcos. described as the most important
busness movement which has como be-
,,ro the country In years" there was
launched Yesterday during the meeting
IN the Merchants Association rooms the
American Acceptance Council, which
svcce, Dis the Trade Acceptance Council
More than ESQ members who have un-
derWriuen the project and would be
members attended the meeting, pre-
sided over BY Lewis r. Pierson. chair
man OF tho board OF the Irving Ma
tlora, Bank
Al the meeting sixteen of the twenty
FOUR members Of tho executive commit
zee Of the new council were chosen as
follows: Lewis Y. Pierson, Paul ".
W9-burC former member OF the Fed
e-a! Reserve Board; Jerome Trails.
secretary and treasurer OF tire Discount
CORPORATION or New York: Daniel @.
Wing. president OF the First National
bark Of Boston: William 4. Law. pres
idsnt Of the First National Rank Of
Philadelphia: oliver ]. Sands, president
a. the American National Bank of
R'ch ucnd; Or. J. r. Holdsworth. vice
president q, the Bank OF Plttsburg
Charles w. Duplne. vicepresident
81 the Citizens National Bank
O. Cincinnati; Forrest Ferguson OF the
Ferguson q Mckinney Dry Goods Gem
pany OF St. Louis; NJ. A. Tray,or. pres!
cent OF the Fret Trust and Savings
Bank OF Chicago: ]. r. Mccarthy. treas
u-rr OF the Kirby Bonner Lumber Com
pany OF Houston; Morton H. Fry Of
Bernhard Scholle & Co. OF New York {;
] II. Tregoe. secretary of the National
Association OF Credit Men; Randall y.
Durfee. vice-president OF the Ameri-
ran Association OF Cotton Manufacturers
o. Fall River; Henry Burden. president
% the National Gamers Association OF
Caanovia. and Herbert c. Freeman of
Touche. Niven &: Co. and OF the Ameri-
can Institute OF Accountants.
To Issue Periodical.
Tho new council will issue a monthly
Journal and conduct national cam
paign OF education. w. =. G. Harding
governor OF the Federal Reserve Board.
AMI Paul VI. Warburg. formerly vice.
governor of the Federal Reserve Board.
who addressed the organization meeting
described specific functions for its guild
aHce. The former suggested that It Is
within the province OF the council to
see that the misuse Of acceptanccs Is
i1inim!zed, citing such abuses as draw
ing acceptances 10 collect slow debts or
those of long standing. and that It Is
duty to arouse interest in the bankers
and trade acceptance a. an investment.
Declaring that the lankers acceptance
will be Of the greatest use in the de-
yeiopment OF foreign trade, Mr.. War
burg urged the widest and most profit
able use OF such financial vehicles. say
ing that the council can give valuable
Information to the business men with
respect to the use of trade and bankers
ecceptances in domestic and foreign
trade and enlist interest OF many banks
and trust companies and private bank
ing firms that have not taken up the
acceptance business.
Warns Against Misuse.
VI +. g. Harding, governor OF the
Federal Reserve Board, said IN part:
Tn the development OF the American
acceptance market IL Is necessary to
provide not only an outlet for accept
arces but means OF securing acceptances
Of ti,ls IN adequate volume. and in order
20 enable American banks and bankers
- compete with British barking houses
n fnarc!n the worlds trade, the COM
bred power o. American banks whose
e'rep,ances can be rade available IN
reign markets. 10 uECtpI VINE piIis
rnust be large enough to meet all re-
ouirenents
IN Boston. New York and Fhiladel-
ma The acceptance lire still available
tor usa by the accepting institutions Is
only s227 900 900. Baltimore. Whining
'7n and Charleston, on the Eastern sea-
Aoa-d, can accept FOR about $40. 70s,0 600
mora. making a tofsi available for the
promotion Of foreis~. trade OF cities on
the Atlantic slope OF about S23S. 900. 600.
Will" the foreign trade naturally financed
In these cities would require q much
larger line, II any considerable proper
ton were covered by dollar acceptances.
''ro provide additional facilities for
'-o.Tac:.2G cur foreign business It may
q advisable to ask that section IL OF
tire act be amended TO permit the Fed
era Reservs Board to authorize any
member bank having n combined capital
and surplus OF not less than 81. 100000
~ accept drafts or bills Of exchange
drawn upon It, having not more than six
months sight 10 run. exclusive OF days of
gra-a. which grow out or transactions
!-vo.rlrg importation or expectation OF
goods, 20 an amount not exceeding 200
Js- cent. o: It's capital and surplus. pro-
N9od that no bank shall be permitted 20
R'Nept domestic transactions IN an
an greater than so per cent OF its
caT',al and surplus, or more than 20 per
CO... 0; ~ capital and surplus for fur
-.sh.DE dollar exchange. but that any