The Trade Acceptance is a negotiable certificate of indebtedness arising out of a current transaction in merchandise.

The Trade Acceptance covers the purchase price of the merchandise and is payable at a stated time and place.

The Trade Acceptance is the highest type of commercial paper. It cannot be given for a loan or past due account.

The Trade Acceptance stands for fair exchange between buyer and seller. The buyer gives a negotiable receipt for a shipment of equal value.

The Trade Acceptance emphasizes the good faith of the acceptor. It indicates that his obligation has been wisely contracted and is to be met when due.

The Trade Acceptance is, of course, understood by the banker, for he knows that as purchases are made debts are incurred and that when such liabilities are shown as "Trade Acceptances Payable" instead of "Accounts Payable," there is convincing evidence of the acceptor's conservative business methods.

We offer special "Acceptance Discounts" to customers closing their time accounts with trade acceptances.

Another Form of Explanatory Letter Used with Success.

The new Federal Reserve Banking Act provides for discounting "trade acceptances" at minimum rates. These are drafts drawn by seller and accepted by purchaser, and bearing evidence that the draft represents an actual delivery of goods.

All other great nations have long possessed this system, the lack of which has been a prominent cause of the monetary stringencies which often afflict the United States, and now that our government has adopted the plan, it is not only a financial advantage but a civic duty for American business houses to forward it.

Taking advantage, for our mutual benefit, of this provision of the Federal Reserve Act, we are able to offer you, instead of the terms stated on the enclosed bill, special terms for accepted draft, in attached form.

If you wish to avail yourself thereof, please accept the enclosed draft by signing and filling in the name of your bank in the spaces provided, across the face of the draft, and return it to us promptly in settlement of the enclosed invoice. Otherwise, terms will remain as stated on the face of the invoice.

To conform to requirements, this acceptance must be returned immediately upon receipt of invoice.

Fair Play Between The Buyer

Gives:-

The Seller an order for certain goods.

The Seller a promise to pay according to terms of sale.

The Seller an opportunity to dispose of his goods.

Has:-

The Seller's goods in his place of business.

His profit from the sale of The Seller's goods.

The use of his profit and of The Seller's capital.

The Seller

Gives:-

The Buyer the goods he has ordered. The Buyer an agreement to allow payment on terms other than cash. The Buyer an opportunity to sell his goods at a profit to himself.

Has:-

The account entered on his ledgers. His capital and profit tied up until the expiration of credit term. An asset which is not available in its present form.

Is This Fair Play?

The Trade Acceptance Offers

The Buyer:

The means of assuring himself of a continuous source of supply.

A protection against financial disturbances-attended by higher prices.

An opportunity to open and close an account in one operation.

The means of keeping closer tab on his obligations and establishing a broader credit standing.

The Seller:

The means of continuing to supply the buyer's needs at the lowest prices and on the most favorable terms.

A protection against unforseen difficulty in financing shipments to the buyer.

The opportunity to realize on his accounts at minimum expense.

The opportunity to devote more of his time and attention to meeting the buyer's requirements.

Quicker Turnovers - Prompter Pay - Surer Profits

The trade acceptance is made out in accordance with regular terms of sale, running over the same credit period and for the same amount as the invoice. It is simply a negotiable promise to do exactly as the buyer agreed to do when the goods were ordered-every buyer should be willing to back his word with his signature.

The Trade Acceptance Offers To Both Buyer And Seller The Means of introducing economy and efficiency into business and its use will place this Country on a par with foreign countries in the great struggle for after-war trade.