The Need For Wholehearted Co-Operation

In the course of the development of the acceptance in this country, as in the development of other worthy purposes, difficult tasks invariably arise, not because of the question of merits involved, but for the reason that a complete understanding of the method to be introduced and extended, is lacking. The acceptance idea, coming from a national demand which arose from war conditions, for the establishization of a sounder credit system, has today the approval of the leading commercial, financial, and governmental bodies.

It is pleasing also to find that on the whole only a comparatively slight opposition has been encountered in the development of the trade acceptance method.

Time Required

Different minds develop different points of view. The acceptance method, where it is desired to be introduced, must clearly have its advantages shown and its merits made to be appreciated. The progress of the acceptance has been very rapid. From almost zero at the start, the acceptance today has risen to more than national prominence and importance.

However, it is not in the least strange that the entire business of the country has not yet adopted the trade acceptance method. Experience has shown, as well as the economic histories of nations, that radical changes in the business methods of a country, even though of the very best, come slowly and require serious and continued effort.

The Banker Reviewed

The banker has all to gain and nothing to lose by the trade acceptance method. The acceptance has proved itself to be the best commercial paper in the field. It is the safest of all other forms of commercial paper. It may be utilized for the investment of idle funds. It is in itself an ideal liquid asset. It creates a keener sense of business obligation, a prompter payment of debts, better business in general, and as a consequence, better banking conditions.

The Seller

To the seller of merchandise, we would say that the trade acceptance is yet the best plan of assistance that has ever been devised for him and a protector of his interests to the fullest extent. It carries with it a definite promise to pay, an acknowledgment of the correctness of deliveries and of the obligation itself, a shorter term of credit, liquidity of assets, better facilities for collection, closer touch with the buyer and the seller's bank, and practical relief from expenses and burdensome practices which have grown up under the open account method.

The Buyer

For the buyer, the trade acceptance is of a particular and distinct benefit. It puts him in the classification of a preferred customer, one who serves notice on the business world of his disposition and ability to meet his obligations promptly at maturity. It gives to him greater independence of action, provides an effective check against over-buying and over-borrowing, eliminates the evils of laxity in credit extension, in speculation, and tends to establish his standing with the banks and the business community. The buyer should not be fearful of any inroads upon his privileges. The trade acceptance does not take away from him his cash discount nor his privilege to use single name paper, for they both operate smoothly and without conflict in the same field.