New-York tribune., 1919-03-24
Shoe Retailers
Take Interest IN
Trade Acceptance
Dollar Can Be Made to n.
More Work, Speak,,
Tells Merchants at Il.
dianapolis Meeting
Business s; Ncws Burs.s

Special Corresponds
CHICAGO. March 22.-Trade 49,,
ances received a boost at the ~
convention of Indiana retail shoe A., '
ers held at Indianapolis. From tb.s
the subject was discussed it w..
parent that while the busipes.
present had only rudimentarv nm 1ea
standing of what trade accsntSs ss.
is they were eager for enlistmen. ass
R. +. Cahill, of the Harrishurr @,
Company: was the principal sn.sa saes
on this subject. He is an ardentp tpssasf ss.s
cate of trade acceptances as a nv
of doing business and making a Jnas Ja,,uas
do more work than heretofore "s
Mr.. Cahill said that the fa;lur.
use trade acceptances in our srs. "
business had handicapped or tsa tss.
down sales to other countries. nart;. t;r
larly South America. Two salesm.s
he said, one from England and AZ.
from the United States, Offering th.s @
goods personally to a retailer -
Brazil, for instance, work in diffe,.ns. AM
ways. The American seller meets a.
price of his British competitor. sorss ~.
his goods and squares with him in eve" eysss.
way except one; that is, payment q.
the shoes. The Brazilian retail, iss
wants to give his o. k. to a n''s, Hill :,
acceptance so he may pay it in thi,,r
sixty or ninety days. As Americ,n
bankers are not strong on trade 81
ceptances, our salesman does not car.
to take this acceptance, but wants cssh
or thirty or sixty day open account
Now steps in the British salesman
and takes the business from the Amer
lean manufacturer by assuming the
Brazilian's trade acceptance and hand.
ling it through the big chain Of Brit.
ish international banks.
Manufacturers and jobbers are ar.
ranging to take care of the acceptance
for export business, but the domestie
feature of the trade acceptance is the
one which must receive attention II
business is to expand along lines Of
other countries, Mr.. Cahill declared.
The question was asked what be.
comes of a trade acceptance if the re.
tallerS failed to pay the same at ma.
turity. This was answered by saving
that If manufacturer or jobber cashes
the retailers bill of acceptance at the
bank on thirty-day basis and at the
end of that period the retailer finds he
cannot meet the obligation or bill Of
acceptance he pays what he can on it.
makes out a new bill of acceptance
and it is cashed through the bank BY
the manufacturer, the latter carrying
for the retailer the difference between
what he pays and the new bill Of &C.
ceptance. 1t was explained that III.
chief feature of the bill o. acceptance
was to allow the manufacturer to oh
tain funds in advance and allnv fhs
retailer to sell his entire stock before
paying for his goods. The manu-.
facturer loses one-half of one per
cent a month, which discount the bank
charges him for cashing bill Of N.
ceptance. The bank, in turn, does no.
necessarily have to carry the bill a
acceptance, but pledges it to FM
eral Reserve bank for loans.
The retailer, to judge from the dis-
cussion, seems to be the one who is
most fearful of the trade acceptance,
the manufacturer seeming to desire ii
use.