Mr. Li expressed confidence that {the operation of the Acceptance House will result in greater liquidity of bank funds which are now more or less tied lup through accommodation to indus-{rial and commercial concerns in the form of secured loans. He invited alt banks to invest their surplus funds in these bills which offer the highest margin of safety and which may be treated as a second reserve since they are easily marketed or re-discounted, In conclusion, Mr. Li. pointed out another advantage which may result from the operation of the Acceptance House—the reduction of interest on loans in general. As the accepted bills bear comparatively lower interest than ordinary commercial bills, their wider use is likely to lead to a general reduction in interest charges.
Text read from the printed page and cleaned; old type leaves the occasional error.