New-York tribune., 1919-01-22
Seek Banking
Aid for World
Trade Growth
Business Men Launch New
Nationwide Body to Pro-
mote Use of Acceptances
" arburg Urges Caution
Amend Federal Reserve Act
10 Broaden Discount Mar
ket, Harding Advises

y movement 20 create banking re-
sources adequate to the greatly ex-
panded needs that are expected TO
arse from the realization Of Americas
ambition 20 become a leading foreign
trading nation was launched yesterday
a meeting OF business men and bank
ers in the assembly hall of the Ner-
chants' ASSOCIATION at the Woolworth
Building Out of the interchange of
IDEAS at the conference, at which w. p.
u. Harding, governor of the Federal
Reserve Board. and Paul NJ. Warburg,
former vice governor of the board,
spoke, came the American Acceptance
Council, successor to the American
Trade Acceptance Council, which for
more than year has promoted the
use OF the trade acceptance as credit
instrument in connection with domestic
trade
The new council was started, accord
ing to the articles of association
adopted at the meeting. ''for the pur-
pose of conducting and directing a
wide educational campign de-
signed to inform the business people
and bankers as to the merits of trade
and bankers acceptances, the method
OF thelr use IN foreign and domestic
merchandising and for the further pur-
pose of aiding in the establishment of
a comprehensive open discount market
and TO assist in other matters that
VIII improve the credit system and
strengthen the financial position of
American
specifically the new organization will
attempt to show how bankers and
trade acceptances may be used in con-
nectlon with foreign and domestic mer-
chandising; it will "organize and direct
the effort of local councils, prepare
and distribute material through The
local councils, publish an acceptance
journal and perform such other func-
tions as may be desirable in promoting
the use of acceptanccs and their mar
kets.' The former council dealt only
in trade acceptances; the new one will
emphasize bankers acceptanccs, which
are most important from the stand
point of international commerce.
The American Acceptance Councils
initial expenses have been undcrwrit-
ten by charter members to the extent
of 100000, Lewis f. Pierson, chairman
of the Irving National Bank, who pre-
sided at the meeting, announced.
In suggesting in a broad way new ap-
proachcs to the question Of widening
the American acceptance market, Gov
ernor Harding and Mr.. Warburg, his
former colleague, differed on funda-
mental matter
Mr.. Harding said: "In order to pro-
vide additional facilities for transact
ing our foreign business it may DC ad-
visable to ask that section 13 Of the
act be amended SO as to permit the Fed
eral Reserve Board to authorize any
member bank having combined CAPT
tai and surplus of not less than ST.
100000 TO accept drafts or bills of eX-
change drawn upon it, having not more
than SIX months sight to run, exclusive
of days of grace, which grow out Of
transactions involving the importation
or the expectation of goods to an
amount not exceeding 200 per ccntum,
instead of 80 per ccntum as at pres
ent, of its capital and surplus, pro-
vided that no bank shall be permitted