ALCO CAPITAL RESOURCE INC
424B2, 1996-02-20
PAPER & PAPER PRODUCTS
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Pricing Supplement No. 26                                     Filing Under
                      ---                                     Rule 424(b)(2)
(To Prospectus Supplement dated June 30, 1995
including the Prospectus dated May 18, 1995)

Trade Date:   2/15/96                                         Registration
           -------------------                                File No.
                                                              33-59227



                         Alco Capital Resource, Inc.
- --------------------------------------------------------------------------------

                              Medium Term Notes


CUSIP:  01374QBP2
      ---------------------------------
Principal Amount: $  7,000,000           Floating Rate Notes: N/A       
                 ----------------------                      -------------------
Interest Rate (if fixed rate): 5.46%           Interest Rate Basis: N/A         
                              ---------                            -------------
Stated Maturity:  2/22/99                  -Commercial Paper Rate:              
                -----------------------                           ----------  
Specified Currency: US DOLLARS             -Prime Rate:                       
                   --------------------                ---------------------  
Applicable Exchange Rate (if any): N/A     -LIBOR:                            
                                  -----           --------------------------  
   US Dollar $1.00 = N/A                   -Treasury Rate:                    
                    -------------------                   ------------------  
Issue Price (as a percentage of            -CD Rate:                          
             principal amount):  100%               ------------------------  
                               --------    -Federal Funds Rate:               
Selling Agent:                                                 -------------  
  -Lehman Brothers:      X                 -Other:                            
                   ----------------               --------------------------  
  -Chase Securities, Inc.:                                                      
                          ---------      Index Maturity: N/A                    
  -Goldman, Sachs & Co:                                 ------------------------
                       ------------      Spread: N/A                            
  -Merrill Lynch & Co:                          --------------------------------
                      -------------      Spread Multiplier: N/A                 
  -Other:                                                  ---------------------
         --------------------------      Maximum Interest Rate: N/A             
                                                               -----------------
Selling Agent's Commission (%): .35%     Minimum Interest Rate: N/A             
                               --------                        -----------------
Purchasing Agent: N/A                    Initial Interest Rate: N/A             
                 ----------------------                        -----------------
Purchasing Agent's Discount or             Interest Reset Date(s)               
   Commission (%): N/A                     (if semi-annually or annually):      
                  ---------------------                                         
Type of Sale:                              -------------------------------------
        As Agent: X   As Principal:          Third Wednesday of: N/A            
                 ----              ----                         ----------------
Net proceeds to the Company:$ 6,975,500        Interest Reset Date (if weekly,  
                            -----------        monthly, or quarterly):          
Settlement date                                                       ----------
  (original issue date): 2/21/96         Interest Determination Date(s): N/A    
                        ---------------                                 --------
Redemption Commencement                  Calculation Date(s): N/A               
  Date (if any): N/A                                         -------------------
                -----------------------  Calculation Agent: N/A               
Redemption Period: N/A                                     ---------------------
                  ---------------------  Interest Payment Date(s): N/A          
Exchange Rate Agent: N/A                                          --------------
                    -------------------  Regular Record Date(s): N/A            
Original Issue Discount Security:                               ----------------
        Yes:    No: X                    Interest Reset Period: N/A          
            ----   ----                                        -----------------
                                         
Form:                                    
        Book Entry: X   Certificated             
                   ---              ---          

Authorized by: /s/ Katherine M. Burns  -  Katherine M. Burns
              ------------------------------------------------------
 



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