16 TIMBER BONDS 



terest charges and retirements. After arrang- 

 ing to meet these every six months he can run 

 the business to suit himself. 



The logging and milling business is often the 

 life of the community in which it exists and all 

 the other enterprises in the neighborhood are 

 dependent on it for success. These others are 

 too small to go out of the immediate vicinity 

 for loan accommodations. To do business they 

 must be carried by the local bank. The tim- 

 ber company has land to sell, by-products and 

 fuel to dispose of. It is deeply interested in 

 building up the town, and should not, for these 

 reasons, use the resources of the local bank. A 

 bond loan allows it to avoid borrowing from the 

 local bank. 



Having a large stock of lumber in the yard 

 ready for immediate shipment enables a com- 

 pany very often to get a premium over the mar- 

 ket price for quick delivery. It takes money to 

 carry such a stock. A bond loan furnishes it 

 and permits the operator to make bigger profits. 



In the discounting of bills and accounts much 

 money can be saved by a large business. Ample 

 working capital places the operator in a posi- 

 tion to take advantage of lower cash prices and 

 cash discounts. A bond loan furnishes the 

 necessary funds and the saving thus effected 

 goes a long way toward paying the interest on 

 the bond issue. 



The company that is fully equipped with 

 working capital is in a very powerful position 



