CHAPTER III. 



FUNDED DEBTS. 



Owing to the nature of the business, logging 

 enterprises and sawmills are often located in 

 places where the banking facilities are very 

 limited. Small banks cannot extend accommo- 

 dations of much value to a large undertaking 

 like the modern logging and milling projects. 

 The operators are forced to seek elsewhere for 

 money credit. Short time loans from nearby 

 banks are not satisfactory, as they are liable 

 to be called at the most inopportune mo- 

 ment. The banks in times of need must first 

 care for their local customers. 



Commercial paper has not proved suitable to 

 the mill man. The floating of such paper, and 

 meeting the interest on and retirements of short 

 time notes, forces him to operate in dull seasons 

 and on losing prices. He must care for his 

 floating debts no matter how large the imme- 

 diate loss on the transactions. The logging 

 camps and mills cannot be shut down on ac- 

 count of the urgent current money require- 

 ments. A bond loan prevents the necessity of 

 operating at a loss. It provides all the neces- 

 sary capital required to do business in the 

 safest manner. It eliminates all floating debts 

 and short time paper. The operator knows ex- 

 actly what he must figure on in the way of in- 



15 



