Accelerator Process

Accelerator, the process described in 'Acceleration Principle'.

Accepting House, a finance house (generally a private company, sometimes a partnership) most of whose business is to finance home or overseas trade by accepting bills of exchange.

An accepting house provides buyers or sellers with the assurance that finance will be available by giving them a 'letter of credit'. This signifies that when the business is completed, the trader may draw bills of exchange which the accepting house 'accepts' by signing and so undertakes to pay the money on a given date. The trader can then take the bills to the discount market where a discount house will buy them at the best ruling market rates. The trader is thus paid immediately.

A credit 'line' may also be arranged to cover a series of shipments or a seasonal movement of goods. If the sums required are large, several accepting houses form a syndicate to supply them jointly.

Some accepting houses also conduct banking business, deal in foreign exchange, handle investments for their customers (e.g. pension funds, college endowments), etc. Some act as issuing houses, engage in the bullion market, handle insurance, and/or own merchant companies developing export trades, provide (with the joint-stock banks and the Export Credits Guarantee Department) medium-term finance for exports of capital goods, finance orders placed by overseas owners with British Shipbulders and develop interests in the Commonwealth.

Seventeen accepting houses in the City of London constitute the Accepting Houses Committee, which transmits to its members messages from the Treasury, the Chancellor of the Exchequer, or the Governor of the Bank of England . Members must be financially strong, as testified by the willingness of the discount market to buy its acceptances at the lowest rates and of the Bank of England to take its acceptances from the market.

Accepting Houses Committee. See Accepting House. Account Day. See Settling-day.

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