The acceptance business in the United States had its actual beginning shortly after the outbreak of the European War. Owing to changed conditions which the great war brought with it, a few large banks in this country immediately took advantage of existing opportunities and began issuing dollar letters of credit payable in the United States. However, no market for acceptances existed at that time, which greatly hindered the development of an American acceptance market. The very companies which issued dollar letters of credit had to purchase them themselves at the start, but gradually, with a knowledge of their advantages, other banks took a hand in this bidding and purchasing, which action on their part resulted in lower discount rates. Increasing bids tended to lower still further such rates until the ruling level was from three to three and one-half per cent. Later bankers and brokers began to take a more active part in their purchase, freely bidding for the acceptance, and it was then that a discount market had arisen. When the market indicated that it could absorb more of these acceptances, discount rates fell still further, as low as two per cent. It was then that the acceptance had the push of the business and banking element of the country, as well as the support of the associations in every circle of trade, industry and occupation throughout the United States. Banks and business men, thereafter, began to take up this new method of financing. With the great favor shown to this class of paper by the leading bankers and business interests of the country, the Federal Reserve Board finally put its stamp of fitness on their use, thereby firmly establishing the American Discount Market.