Of the classes of commercial paper in use at the present time in the United States, single name paper predominates. It is estimated by well informed commercial paper brokers that fully ninety percent of the paper traded in is of the single name class. At the passage of the Federal Reserve Act, trading in paper of this nature was the nearest approach to a discount market here.

Included in the class of promissory notes is such commercial paper as is given by buyers to sellers or by debtors to creditors. The purpose of their origin here may also not be known. The credit of the buyer is not of so great concern to the bank which is offered the paper for discount, but the credit of the seller is looked upon as the main security.

The one serious objection to the single name paper method of financing, is that it is not known why the paper is in existence. It may have been given in settlement of a past due obligation. It may have been used for purposes other than those involving the sale of merchandise, and it may have been given for services.

The disadvantages and abuses arising out of the open book account method have long been realized by the commercial and credit world.

What was sought by the business men and bankers was the adoption and standardization of some form of commercial paper which would eliminate most of the disadvantages of the open book account method-something that would stabilize and liquidate commercial credit by converting the sale of merchandise into a liquidated credit, immediately available at reasonable interest rates to meet the financial needs of the business world.

Recently, there has set in a movement for the substitution of the "trade acceptance" in place of the open account.