Commercial Paper And Bills of Exchange of the World a Review of the General Met

Cover Commercial Paper And Bills of Exchange of the World a Review of the General Met
Commercial Paper And Bills of Exchange of the World a Review of the General Met
Francis Gottsberger
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In manufactur- ing, commercial paper becomes raw material, the raw material finished product; this, accounts receivable, and these money to meet the paper.
A certain New York wholesale grocery prided itself on the fact that it could meet any call for any article likely to arise. It had a large and extensive stock, some slow moving. It was not making money. It did not have the turnover it should for the capital employed. It decided to abandon its policy and put in a quick selling stock, and depe
...nd upon its ability to get rare articles on call rather than keep the same in stock.
It is obvious that the paper of this house issued after it changed its policy was much better quality than that represented by its former stock of slow selling merchandise.
The difference between paper sold for 1 financing luxuries and paper issued for neces- sities may be appreciated by the fact that a large automobile concern states that it sells all touring cars for cash, but trucks on time, knowing full well that the latter will help pay for themselves, while the former will be an item of expense to the owner.


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