Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-01-01


general use and every day their i'm
portancc is being more and more APP
prcciatcd by the business world
Their Importance TO the merchant
ctnnot he overestimated." declared
o1vor u, Sands. president OF the Ameri-
can National Bank. Yesterday. lie eX-
poets 1919 To see trade :Icccptanccs in
wide use here. Discussing the subject
in IL broader aspects. Mr.. Sands said:
the trade acceptancc. which we
are rndcaNorins TO bring into general
use. is Il SIMPLE obligation OF the BUYER
OF merchandise given to the seller i'm
Srtiiement Of All transactions where
diSplace as nearly as may he the book
accounts. or accounts receivable, car
fied by merchants. with live. ncgoti-
credit
We have little difficulty in convinc-
ihS me seller OF the value of this sys-
tenn lie knows through long and sad
experience the troubles and unsuiis
factory results of the open book ac-
count. lie knows that he is entitled
20 some form of obligation To take the
place OF the goods which lie has taken
out OF his stock. and that when those
goods are received by the purchaser
he is entitled 10 payment therefor mr.
If the purchaser is not prepared to nav
hi once. he should give an obligation
TO be paid within such time as he DE
Sires and the seller is willing to grant
COLLECTION or ACCOUNTS
SIMrLIEIED BN METHOD
IN this way accounts arc closed dis
putes and claims immediately adjust
-" ana some reasonable calculation
may be made US to the amount of col
lections which may be depended upon
during tbs month. The collection Of
accounts is simplitieo in that accent
tncrs are passed through the banks
creuitcd TO the sellers account and nj
maturity the acceptor may direct that
,neE De charged To his account at his
bank. the one instrument displacinr
accounts. statement and check
According. to Mr. Sands. acccptances
NIL MI be much more, promptly paid than
mas shown that IN obligation which
comes out into the open is taken more
seriously and is protected more prompt
~ IMAM book account" The general
crcuit OF the acccptor, both with tirn
merchant and the various banks or
credit institutions through which tho
nor likely To buy more than he sccs
ms way clear to pay for. and he viii
v ,r,,' ms business and credits in a
way which Will enable him to meet
promptly his obligations.
cont inuinE. MIR Sands said: "AIcr
n ,rt certainty need no argument to
roy thitt 4 direct obligation for goods
Is better than :. charge mndn mnm,
lhcir books by their own cmnloynrs
mnm"u, even having an acknowlede-
men, OF any character for the rer.int
Oh thcir goods by the debtor ~
II'! IN" only thing the merchant
rn,s us 10 whether the goods have
D n Ia
IN IN investigation instituted hy himself
nat would YOU think OF a hank ,b,,
ulu not AXE an obligation from no.
,oMtrS' nut simply charged the 40
cunts OF their customers with lilo
,h 81 money advanced. and sent
~" cash TO HE office of the cusi nn,rn
an oNerdrait is considered rhr ,no,,
nmueS'rhhic Of bank assets This is. in
rnr', what merchants have bc.u DO
'hs IN their business.
t'tEI"riNCI:S Co,IN,\n
kfADN
Amongst the many nuv,,,.,
th' seller is the availability Of Ia ~
cunts receivable when converted Ia, ;,
'h' i"rhi OF arccptanccS These ,rc,u, :
,.S VIII always omnand II ready ANA
~ "'". 'tifkct AT low rates OF dis
in"h'' ~ Is easily ConC.iVablc ma.
thcr" VIII hc country wide I,n,,r,t
l"T lhiS mighty desirable class ,r ir
NeSihent from bankers ana brnl<rr.
anu Whth IL Is known that trad, oc-
'eptanCcs ORIG mating within rny r
serve district can ALWAYS M, s,,J -, ~
t'Hc'Hc baik in that district at u puh-
iiSh"u rate Of discount, these :cr.n,
!i'cS VIII be in demand throu"bon.
IN" Wh"ic country. For instance M
~ i I'm SEASONS OF the year the banks
IN thc Norm ana East viii he lnrr,
buyers OF acccptanccS. and in tn, SonIh
TN" banks and merchants may be sell
AT olncr seasons this may bc re-
ncrScd' The credits Icing Of "a self
hIhidit ing character. they Will uatur-
ANY flow To that section where uun,v
Is easy ana may be disposed nf by tho
hahkcr AZ any time he needs funds
credit Information will hr more cX-
act-local banks VIII be i'm Il positinn
!" CIV" most satisfactory information
IN reference to any customer Tho
losses Of the seller should. therefore.
he minini@cd through his ability to
secure correct. definite and easily as