Corporation, Probate, Commercial and Bankruptcy Law New York, Chicago, Pittsburgh, Cleveland and Toledo references 19 years in general practice. Can offer as reference 25 Detroit arms and banks, as to my experience, DEPOSITIONS taken; make commissions to any of the following Notaries associated with DAILY REMITTANCES on all collections. Personal, prompt and persistent attention given all mat- George H. Lovequest, Thomas W. Thompson, Thomas J. Mahon or Francis M. Mahon. Admitted to practice in U. S. Supreme and District Courts; and in all courts of Michigan. 1920 HOLMES 1920 ON Federal Income and Profits Taxes Including the Law, Rules, Regulations and Decisions To Date THIRD EDITION Carefully Revised, Completely Re-written and Greatly Enlarged Holmes Income Tax presents a Complete, Comprehensive and Exhaustive Treatment of the subject of Income and Profits Taxes, Capital Stock Tax and Stamp Taxes, written for the Business Man, Accountant, Banker, Broker, and Corporation Official as well as for the Lawyer. It contains an Exhaustive Treatment of the Rules of Construction Applying to the Statute and All Decisions of the Federal Courts, including decisions on Local Income Tax Laws, containing provisions similar to the Federal Law. Holmes Income Tax is more than a tax service confined to the regulations. It is a logical treatment of the whole law showing every subdivision under its proper head. The Complete Collection of Rulings and Decisions on Stamp Taxes are of special value to the Broker and the Banker. Many Important Rulings made during the past year and many former rulings, Over-ruled By The Courts, are all included in Holmes. Every Lawyer, Business Man, Banker and Broker who would be fully informed of the law, rulings and decisions before preparing returns of Net Income and Excess Profits for 1919, must depend upon the third edition of Holmes. Earlier publications or editions are not safe guides, for where the law remains the same the actual procedure based upon the interpretation of the law may be greatly changed. Holmes Income Tax Contains All the Law, All the Rules, All the Regulations and All the Decisions Down To Date If Statutes, Regulations or Decisions change the Law or Procedure before Returns are filed, a Supplement will be furnished all Subscribers. THE BOBBS-MERRILL COMPANY Kindly refer to the AMERICAN LEGAL NEWS in relying to this ad. DETROIT MILLIS, GRIFFIN, SEELY & STREETER 1401-1408 FORD BUILDING REFERENCES: Any Bank or Trust Co. Attorneys and Counsellors at Law General Civil Practice in all Courts Specialize in Corporation, Commercial and Bankruptcy Law DEPOSITIONS-Commissioners for Ontario and the leading States, as well as Notaries in office Published by the American Legal News Corporation, General Offices: Book Building, Detroit, U.S. A. FEBRUARY 1920 Trade Acceptances Price: Single Numbers 25e; Subscription $8 a year NUMBER 2 By CLAUDE D. RITTER, Birmingham, Alabama The English system of trade acceptances is for the seller to send an acceptance with his invoice to the buyer, which, when signed by the buyer, becomes an order on the buyer's bank to pay the amount at a certain date. This order or acceptance is then carried to the buyer's local bank, who in accordance with his arrangement with his depositor customer endorses the acceptance, charging his customer a commission for his service. The acceptance thus guaranteed by buyer's local bank is forwarded to the seller who may, if he desires, discount with his bank. This places the financing of the buyer with his local bank where it belongs, at the same time enabling the local banker to extend to his customer larger accommodations than he could otherwise do. In short, the English system in a round-about, more complicated manner, meets and supplies the needs that our Reserve Bank system meets and supplies in a direct manner by discounting for the local bnak his customer's one name paper, thereby enabling the local banker to extend his depositor such accommodation as he may be entitled to. As to the German system, I know nothing; but, if the system advocated by our propagandist is copied from the German as suggested by our Texas friend, then, Gentlemen of the Convention, what more do you require to eternally damn it? (Applause.) Now, further answering our friend, I wish to point out some of the evils which will clearly result from the general use of trade acceptances. At first the trade acceptance advocates argued that the general adoption of trade acceptances would grealy benefit the country by doing away with the cash discount system; but, finding that both buyer and seller were favorable to the cash discount system, they now attempt to argue that the two are not inconsistent and that the usual discount given for cash in ten days can be deducted and acceptance executed for sixty or ninety days for balance. The cash discount is the price paid by the seller for the elimination of the credit risk and the immediate use of the sum due him, and is always in excess of legal interest. Now, can you imagine a seller with brains enough to do business paying the price for the elimination of the risk of carrying the credit account and for the immediate use of his money knowing at the time that he will get neither. As a matter of fact, cash discount and trade acceptances are absolutely inconsistent, and the advocates of trade acceptances know that their arguments that the two will mix are fallacious; for, if cash discounts were given, all the better class merchants would take same and the trade acceptances would represent only second-class credit risks and this would not accomplish the purpose of those advocating acceptances. Mr. R. R. Ellis, chairman of the Trade Acceptance Adoption and Cash Discount Elimination Committee of the National Wholesale Druggists' Association, in a recent report, said: "This is a serious mistake of the trade acceptance advocates-the overlooking of the net price sales plan-for it is necessary to the perfecting of the trade acceptance vehicle." And on page 6 of the Trade Acceptance Catechism, published by the American Trade Acceptance Council, we find the following: "The open book account-cash discountsingle name paper system has long been recognized as wasteful, archaic, non-liquid and attended by many abuses and disadvantages." And we find the following in the September, 1918. Trade Acceptance Journal: "Historically the cash discount and trade acceptance may not be permitted to associate with each other, but history is not business. Let us keep our precious cash discount for a little while if necessary." From the extracts I have just quoted from the trade acceptance literature it is clear that the trade acceptance advocates know and admit among themselves that oil and water will mix |