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Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE MUSIC TRADE REVIEW
11
In Remembering Your Limitations, Do Not Forget
Your Opportunities of Overcoming Them
When we determined to produce a better piano varnish than any that had ever been
manufactured, we looked for opportunities of overcoming limitations. It resulted in
SKIN-COTE—The One Perfect Piano Varnish. It means a better finish and better
schedules, with the result that today we sell over fifty per cent, of all the piano varnish
sold in America.
Our service is always at your command. W e will gladly send an expert, experienced
finisher to the factory to help you solve your finishing problems. W e make no charge
for these services.
Factories
Cleveland, Ohio
Toronto, Canada
The Glidden Varnish Co.
Cleveland, Ohio.
Branches
New York, Chicago
London
LOWER LOAN RATES TO MERCHANTS THAN BROKERS GET.
Merchants Able to Borrow Money from Banks at a Lower Rate of Interest—This Helps Ex-
pansion of Business—Acceptance Pape r Takes the Place" of Customary Notes.
Gblef 5kln*Cote
HOPE FOR GERMAN EXHIBITS.
New York Importers Plan to Participate in
Panama Exposition Although the Outlook,
Generally Speaking, Is Not Good.
German manufacturers and importers in New
York, who are trying to arrange for a representa-
tive German exhibit at the Panama-Pacific Expo-
sition, have formed a Committee of German Par-
ticipation to develop in'erest and co-operation
among German business interests here and in Ger-
many. It is thought that some exhibits may be
obtained direct from Germany by the time the ex-
position is opened to the public. The committee
has sent out this letter to manufacturers and im-
porters of German products:
"Owing to the unfortunate conditions existing in
Europe at the present time Germany and German
manufacturers are prevented to a great extent
from exhibiting at the Panama-Pacific Interna-
tional Exposition, which is greatly to be regretted.
"We believe it to be in the interest of Germany
and of German manufacturers, as well as in the
interest of the commerce of the United States,
especially also in the interest of all importers of
German products, that an exhibition of German
products at the Panama-Pacific International Ex-
position shall take place."
Several meetings have been held by those who
started the movement, including a meeting at the
Manhattan Club on November 14, and later at the
Engineers' Club. Dr. Hugo Lieber is chairman of
the committee; ex-Controller Herman A. Metz,
honorary chairman, and Walter W. Schultz, sec-
retary.
TO RESUME PUBLICATION.
Owing to the manifestations of interest in The
Arrow, a monthly publication that is devoted to
the interest of the National Piano Co., 155 Colum-
bus, avenue, Boston, Mass., and which up to last
year was published for four years, the paper will
again resume publication beginning with January,
1J)15. This breezy paper has a wide following in
the trade, and is widely read for its snappy
articles.
INCREASES CAPITAL STOCK.
The Detroit Auto Orchestra' Co., Detroit, Mich.,
has filed notice with the Secretary, of State of
Michigan that the capital 'stock of the" company
has been increased from $41,000 to $100,000.
For the first time in half a century New York
merchants are able to borrow money from banks at
lower rates of interest than brokers of Wall Street.
The most important factor in bringing this about
is the new Federal Reserve banking system and
the consequent establishment of a discount market
for commercial paper.
In technical language of the financial district
prime thirty-day acceptance paper was sold on
Monday at 3^4 per cent., while the lowest interest
rate for bank loans on Stock Exchange collateral
was 4^4 per cent.
Within the past week there has sprung up in
New York a discount market, like that of London,
which is what the Federal Reserve system in-
tended, and with it a change in the system of
business men securing loans for carrying on com-
mercial enterprises. Under old methods, 'a mer-
chant desiring to obtain a loan went to his banker
and arranged to borrow a certain sum of money at
'a fixed rate of interest, for a certain length of
time and for which he gave his note. An aver-
age example would be a loan of $100,000 at C per
cent, for ninety days.
The bank transferred a credit of $100,000 to the
merchant's account, but at the same time had to tie
up just that much of its own funds in its loan
account, whether used or not by the borrower. This
system tended to keep interest rates higher and re-
strict the bank's field of accommodation .to others.
The bank could either hold the note in its own
vaults or sell it to others to recoup itself, but its
available funds were still limited by the amount of
the loan. Such notes are called commercial paper.
A merchant to-day desiring to borrow $100,000
goes to his bank 'and seeks a loan of the bank's
credit instead of the actual money. He asks the
bank to accept his paper for the amount, and if his
credit is good, the bank indorses his note for a
small commission, which is simmering down to one-
eighth of one per cent. The merchant executes
his note for $100,000, payable in sixty or ninety
days,- with no rate of interest fixed. The bank
stamps it "Accepted," which •gives rise to the name
of acceptance paper. Then this note is sold by
brokers in the open market for whatever rate of
interest it will 'bring, which is termed the discount.
Federal Reserve Banks stand ready to buy this
•acceptance paper from the banks, although for the
present its rates are higher than those prevailing
in the open market. The New York Federal Bank
is charging h x fa per cent., but the rate is expected to
fall soon to more nearly the private banking rate.
The Bankers' Trust Co., the Guaranty Trust Co.,
Brown Bros., J. P. Morgan & Co. and numerous
private bankers are reported accepting paper at
lower than the Federal Bank rate.
WINTER & CO.
220 SOUTHERN BOULEVARD, N E W YORK
Manufacturers of
While, as a rule, all transactions with the new
Federal system must be done through the medium
of other banks, the law permits the Federal institu-
tions to go into the open market direct for paper
based on foreign trade. No transactions of this
kind have ibeen reported yet, but it is expected that
as soon as discount rates are reduced somewhat the
Federal Reserve Bank of New York will begin buy-
ing and selling cable transfers, bankers' acceptances
and bills of exchange, with or without indorse-
ment of member banks, based upon importation or
exportation of goods. Federal Reserve Banks will
not touch notes of brokers and speculators with
Stock Exchange securities as collateral. Accept-
ance paper is for business men only, with the aew
Federal Reserve Banks ready to take it over.
E. E. PHELPS TAKES ON PIANOS.
(Special to The Review.)
MILWAUKEE, Wrs., December 1.—The Strohber
line of pianos and players will be carried at Fox
Lake, Wis., by E. E. Phelps, who recently opened
a new jewelry store in that city. In talking with
a representative of The Music Trade Review re-
cently Mr. Phelps expressed his enthusiasm re-
garding the line turned out at the North Milwau-
kee plant of the Smith, Barnes & Strohber Co.,
and he believes that there is a gbod field in his
territory. Mr. Phelps, who has an unusually large
store, is also carrying the Victor and Edison talk-
ing machines.
REPORT EXCELLENT PLAYER TRADE.
MILWAUKEE,
(Special to The Review.}
W I S . , December 1.—A
record-
breaking player business has been experienced by
the new Billings & Sons Piano Co. since its open-
ing in its handsome new store at 504 Grand ave-
nue. The company carries the Mehlin, Cable-
Nelson, Holland and Peerless lines. F. C. Billings,
well-known inventor of the Billings brass flange,
metal frame action and similar devices, says that
he is confident that the player will hold the center
of the stage in the piano trade from now on.
Ernest Urchs, manager of the Steinway whole-
sale department, returned to New York Wednes-
day after' a month's trip to a number of the lead-
ing trade centers in the Middle West and other
near-by points.
The stock of the Cheek-Huston Piano Co. in
Greensboro, N. C, was damaged to the extent of
$5,000 by fire recently.
Any member of the music trade can forward
to this office a Want Advertisement and it will
be inserted free of charge.
Superior Pianos
and Player Pianos