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THE MUSIC TRADE REVIEW
Marked Development of a Discount Market
EW YORK bankers expect a marked development of a dis-
count market in this country as the result of the publication
of the regulations of the Federal Reserve Board governing the open
market operations of the reserve banks in this new class of banking
business, and which is referred to elsewhere in our Washington
correspondence. These regulations, together with those issued last
month regarding the character of commercial paper eligible for re-
discount, are considered by bankers as two of the most important
rulings with regard to the business of the country the reserve board
has made.
The regulations were regarded as moderately liberal. Con-
siderable disappointment was expressed, however, in the omission
of all mention of the advisability of extending the provisions of
the reserve act to include acceptance business arising out of do-
mestic trade as well as out of import and export trade as now
limited.
The chief point made by bankers was that in order to develop
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a real discount market a much greater volume of acceptances must
be brought into existence. The present acceptance business arising
out of foreign trade is too limited and the amount of acceptances
now in existence too small to promote a discount market of good
proportions. Bankers who buy acceptances do not trade in them
by reselling, but put them away for investment, discount operations,
therefore, being confined to the first purchase.
It had been hoped that the Federal Reserve Board would take
the opportunity to go on record as urging an amendment to the law
to permit acceptances by national banks on domestic trade.
The Reserve Bank of New York, it is understood, will imme-
diately enter the market and purchase acceptances for investment.
Tn this the local bank will take the lead among the reserve banks
for the reason that the business of accepting has been largely con-
fined to New York. The creditor reserve banks, however, espe-
cially those in Boston, Philadelphia. Cleveland and Chicago, are
expected to enter the acceptance field for investment.
Enforcement of the "Safety First" Idea
T
HE enforcement of the "safety first" idea on the part of the
New York piano manufacturing industries serves to bring
home the genuine importance of the "safety first" movement, and
the fact that it is something to be applied directly to the piano
trade. Some years ago the "safety first" idea was looked upon as
a fad. the hobby of dreamists, and many manufacturers appeared
to take the stand that they paid their employes certain salaries to
do certain things and it was up to the employe to protect himself
while working.
The Workmen's Compensation Laws in the various States
have been taken to indicate that in general public opinion the em-
ployer owes it both to his employes and himself to see that his plant
is operated with a minimum of risk. It has been learned that it is
just as desirable to protect workmen from injury and to keep them
in first-class producing condition as it is to keep the machinery
itself in perfect condition. When a machine is idle for any
reason it means the lessening in the efficiency of the plant, the
dropping off" in output, and a direct loss in profits. When a
capable workman is disabled for a considerable period of time it
means a dropping off in efficiency, and also a loss in profits while a
new man is becoming familiar with the work, no matter whether
he is skilled or not.
The business world has been forced to consider the conserva-
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tion of the human element, just as it has been forced through a
growing scarcity of raw material to practise conservation in con-
nection with inanimate factors.
To come back to the piano factory, the proper safeguarding
of machinery and the affording of protection to the workman in the
factory wherever possible, means the actual reduction in overhead
expense, and a consequent addition to the profit side of the ledger,
through increased production, steady operation, improved quality
of product and the other factors that enter into a first-class factory
system. The fact that in some States the piano manufacturers
are covered by enforced insurance under the Workmen's Com-
pensation Law does not alter the fact that they are still morally
bound to give their employes every physical protection possible.
When employes must take unusual precaution to avoid injury
it means a loss in either quantity or qualitv of product. When they
do not take those precautions, and are injured, it means loss of
service of capable men, with the same general result. The "safety
first" rule is a book asset as well as a moral asset.
The fact that the "safetv fir^t" campaign has reached the piano
trade and been accepted should insure not onlv an improvement in
Manufacturing conditions, but also better products, the workmen
putting forth his efforts uninterrupted bv accidents or the dangers
of accidents. Tt is not merely sentiment, but first-class business.
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