FUNDED DEBTS 17 



when it comes to getting and holding trade. It 

 makes little difference about the size of its tim- 

 ber holdings and milling capacity when it is 

 competing for orders. If it is cramped for 

 funds it cannot hold its own with the company 

 that has smaller assets but more ready money. 

 A bond loan secured by its land and timber fur- 

 nishes all necessary cash requirements. 



It would be possible to recite many more 

 sound reasons showing the advantage of funded 

 debts over floating liabilities, but those enumer- 

 ated are sufficient to prove to the banker and 

 bond dealer the wisdom of the timber operator 

 who mortgages his property for the necessary 

 funds to furnish the cash to handle his busi- 

 ness with economy and safety. 



The lumberman has gone over the situation, 

 reviewed his business thoroughly and realizes 

 he must have more money. Instead of being 

 able to take advantage of the numerous ways 

 of making and saving, of protecting his hold- 

 ings, of extending his business, and caring for 

 his customers, he is constantly crowded by his 

 due bills, and his affairs are at a point where 

 something must be done. He decides to fund 

 his debts. 



The operator carrying a large investment in 

 plants and stumpage, loaded with floating debts 

 and facing the necessity of further heavy cash 

 expenditure for improvements, extensions and 

 purchase of timber, out of which he can draw 

 no immediate return, has decided to fund his 



