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Les diagrammea sulvents illustrent la mAthode. ^•1 o o 1 2 3 4 5 6 I tath. •'^l^^^iti • •• I -Jr» * •• \ •* ■ • . • • • I ft / • •• I . . • > '*i-A* •\t-^/V* L i;^ §1 HOW TO MAKE MONEY : . ^ >1 '• l«.«."». 3O o r u HOW TO MAKE MONEf; o 0° o OR, o o 3 '. " 'THE PRINCIPLES OF SUCCESS (D o 1 IN u o t ( i 1 i TRADE. 1 o BY THOS. S. MILNER. o MONTREAL; „ o PRINTED BY UBO. NOLAN, 32 GREAT ST. JAMES STREET. 1865. ^ /o ".k% "^:\ » • ;i A .* I ® %' i" ...■■;- J .:^;:; @ ® @ @ \^ --^-dv .A -e^^^-' 4^y^/y,xy-vom((2i ^■■'t- ./ HOW TO MAKE N^ONEY ; @ THE PRINCIPLES OF SUCCESS ° (S) ® ® /M TRADE. «) BY THOS. S. MILNEB. @ ® (O) ® ° MONTREAL: IlINTED BY GBO. NOT AN, 32 ORIAT ST. JAMES STBIET. «) 1865. (1 y^- o o i©) (§) ; Y3I10M im or mw o. ® % ^® ® @ @ ^'^ .no ® @ 8830008 W Pj^dmOYiJiVi Mil iV^® VA .KilAU'^ .aawJiM ,H .SOB 'J Nff, ® @ * .508 1 @ @ ® ® <&^ • ' ® (O) @ @ @ @ @ (g) ® ® @ ® ® '«^ ® ® ® ® PREFACE: ® ® <§) ® ■A. (9) @ This work owes its existence to a deeply-seated conviction in the Author's mind, that such a work is much required. It is perfectly surprising that in the present age when business has expanded so much — is engaged in by such a large proportion of people, and has become so systematic in its nature — that works relating to it are so exceedingly few and imperfect. The reason is plain, however — people engaged in the engrossing pursuits of commerce, however capable to write on the principles of success in trade— find no leisure for the task ; and authors whose busi- ness it is to write books are so far removed from business in general, that they are incapable to treat upon it correctly. The author of the present work's object in undertaking it was to place in the hands of those engaged in commercial pursuits the general principles of success in trad® of whatever kind . These general principles are applicalf • v o every kind of business — stock-taking — book-keeping, for example. In these days of competition and rivalry, every man cannot be posted up too much in all matters relating to business. In this work the Author has made use of the lessons he acquired in a long experi(*ce of business and human nature, and he trusts he may be the means of imparting some useful knowledge as regards business to his brother tradersi «) '* c§) ® ^ ® (§) ® (D ® ® Oo ®^ ® ® ® ® o " o o '® (Q) ® ® ® ® fO) @ ® ® ® D ® (D (D ® (8) ® ® ® ■ ® •• *• **• !'•" *'.:'A\i:', o o o ® •o' •••;■...•■•. •!§) ■@ .;? '.» ■■>• >. "7 :«. .•/•: Id .fif :. -v/ 1 ®' @ .@ i^ .(6) iiA'i .•..■?. » •#' ■• • «•,*•• :8'r.. V. •'•••••: •, '® o • >.V«. '. t. • V. .; o ."• !.j " • P.. . • .• o o o @ .® (O) ® (3) ® ® (S) I® '® ®® INTRODUCTORY: (ii m (9) d) ♦">«•► ^+«3 *SiS (D («) THE ORIGIN AND PURPOSE OF TRADE. It is quite apparent that cammcrcial intercourse began wlii'c there were but few members of Our race in existence ; or, in other words, the exchange of commodities between num and man must have been almost co-eval with man's existence. There is no doubt that the manner in which this intercourse was carried on was by barter^ — ^goods exclianged for goods. This mode being found extremely cumbersome, and in many instances iTnpracticable, attention was naturally directed towards finding a durable, con- venient and portable substitute for goods. This search ended in finding the precious metals to be the best and most convenient sub- stitute. We can readily imagine the ease, facility and impetus which this arrangement gave to trade. Indeed, without an equiva lent of this kind for commodities, commerce would never have assumed the gigantic proportions which now characterises it — proportions which are daily extending and assuming still mofe gigantic forms — the exchange of the necessaries of life would be an unpleasant task, or at least a task which could not be done with any comfort or pleasure. At the present time the utmost facility exists to carry on every kind of business, in every part of the world. The purpose of trade is to furnish mankind with all the articles which nature demands as necessaries, and with the comforts and luxuries which a refined taste craves. The diflferent grades in society are linked together by the bond of mutual requirements. All hang on one another even for the ® ® ® WWW^: .. •v'.'i.'.'.W''*''.. ■ mi ■•7<'<.,. , I :.'» ^•■f.^• :d60ti:6& -vliidh eodsis bdinvo^ tli6 o^ioulUixis^ iibid axtaiokii, 3id ; xt^eiolmfi, the p^of^donal maa) ,* imd -wihild imtaro hitfl orderdcl - tiihls dsxiSQcloiaoe, it bsoomas a mosfc da^u's-bls fliitig fcl)ftt» fclio COnnccfaon bf^ of iia tij^'rooahlc kind. Sncli a varu!t.y of poxition is Htti'.iidojl by a variofiy of wants. Tlio purpose of trado, M already indicated, is to supply tljo necessaries and foniforts of life. We would here 'inpeak shortly on the clioico of a- calliniu; as relates business. The ol»j(!ot wliioh porsonslmve in view inchoos- ' in.,■•."' • ) ' ■'■ I jV.'.''. :iy.'':-:'v?^'i.'''^K.''"r** ibal odnTinosd tilmt a sbtidj of tlid x>i'Iudplss of saoooss in trade on wWobi it fofiftfcs, SYflDl baaailfc evcory one who applies liimsalf to Uu! task, niul wc liopn thiiiii sf-iuly will he the mcrms of iimVing iiuuiy t'nrtmu's. K(«s will clint^ to yon, and lu're reran. Immediate attention should he i;ive to all ordor.H received. 1'he terms in which they are couched should be complied with to the letter, if there is nothing unusual. Gdods should bo dispatched in time to reiuh their destination when wanted. The exact kind of goods ordered should be sent, as a discrepancy in value will cause misunder- standings, and perhaps end in alienation. Do as much of the more important work of your business as you can yourself, and when you leave any portion to be done by others, see to it that H is done in a proper manner. CR B D I T . A great rock a liead upon which thousands have made ship" wreck, and of which persons in business require to be warned' particularly beginners, is the giving of too much credit. Nothing is easier tlian to swamp your entire means in this voracious gulf) and that in a very short space of time. It is a most difficult matter for a beginner in business to discriminate between the trustworthy and the untrustworthy applicant for credit. The latter sometimes seems more worthy than the former, and in every case of refusal the beginner will find it a delicate and unpleasant task to say, no ! This has to be said, however, and very likely you will say it to many whose intentions are quite honest. It is pretty generally acknowledged that there is too much credit given by all grades and kinds of dealers at the present time. Many have had practical lessons to this eifect. There is a spirit of adventure abroad which seems to brave everything. ** Never ven- ture, never win," is the motto of those pushing men, but they often find their ventures are of a very unsatisfactory kind. Ano- ther cause of this recklessness in giving credit, to all and sundry is the keen competition which exists in all trades. Many per- ir- 22 sons are disposed to take orders from doubtful or indifferent parties, in order to keep abreast of their cogeners in trade. This is folly, and folly which will prove very transparent in the end. The beginner in business, particularly if his business is retail, will by degrees be assailed by a host of seemingly honest appli- cants for credit. The arts which these persons adopt to obtaiii- credit are certainly ingenious. Let us give an example or two. A short time after you have begun business, a man comes to your establishment — his manner is extrexnely civil — he buys and pays for some articles with pleasure, like an honest man. He comos again a few days afterwards, buys and pays again, and repeats the same process perhaps for a month or so ; when he comes this time he buys and pays, but discovers he wants something else, and has not sufficient money to cover all. lie asks you to trust him the balance, which is geuej-ally a mere trifle. You have been the recipient of his money on several occasions, you know him to some extent, and being a stranger you have not as yet come to know anything bad about him, so you cheerfully trust him for the balance, and you find that your confidence in the meantime at least, is not misplaced ; for punctual to the day on which payment was promised, your customer appears and makes H good. You are now more inclined to trust him, and he ig more inclined than ever to deal with you. He thus gets the small end of the wedge in, and continues coming in pretty much the same style ; by and by he falls to the habit of taking goods, promising to pay at a given time. When he thinks your confidence in him is strong enough, he proposes to open a regular account quarterly or half-yearly, as the case may be. Finding him honest thus far, you agree. By and by comes the turning point — something happens which disables him from paying you out at the end of his term of credit, and a balance is left. Next pay term comes round, when the amount he pays you may be larger, but the balance left is larger too, and so on till the balance amounts to a considerable sum, and you are anxious to obtain full payment. This he is unable to give — you try him by fair means first, and hang on in the hope of getting payment. When . this fails you threaten him with l^al proceedings. Your hon- indiiferent rade. This in the end. ss is retail, Jonest appli- t to obtaiii- upJc or two. ues to your s and pays He comes md repeats comes tin's ething else, 'iks you to ifle. YoH asions, you lave not as •fully trust ice in the the day on and makes and he ig ' gets the etty ninch of takinjr links your a regular Findinir le turning aying you 't. Next a may be le balance to obtain m by fair When ''our hon- 23 est man laughs you broadly in the face — tells you to do your worst, and bids you a long farewell. You now discover how grossly you have been duped. Cases of this kind are quite com- mon, as many can testify from experience. It is rather remark' able that aithougli you refuse credit to dishonest persons, that they do not take offense at it. U'e have known eases where really bad payers were refused credit, and yet they came back as formerly, while some of the same stamp, who get a mere trifle on trust, were deterred from ever coming back again. Another sort of whom you will require to be aAvare, are those who have hon- est intentions, but who through circumstances are unable to pay their debts. There is unfortunately too many of this kind in the world. If they had a command of money, your paymen* would be sure, but not having that, they are not too scrupulous in making others suffer for them. In all cases of credit it is quite justifiable to charge a percentage equal to the estimated risk. This course, if judiciously pursued, will go fiir to counterbalance bad debts. An English writer, treating on the subject of credit, speaks as follows : — " There are three classes with who: u a man in trade comes into contact. Tha first of these is the highest class, nobility, &c. ; the second, the great middle-class; the thirdt the lower classes. The first is of course the best, owing to the wealth which they possess. AVith the second, business is done< generally speaking, with great satisftiction. With the other class — the lower — I do not hesitate to say, that business on credit cannot be done with anything like general satisfaction, and I counsel every beginner to refuse credit to this class. This may seem harsh, it may be pronounced misantrophic, but so fiir as my observation and experience goes, I can, with all candor say thar the worst payers in the community belong to this class. I wish it was otherwise, not simply for the sake of trade, but also for the people's own sake I do not say that this class is naturally in- ferior in principle to any any other ; I do not say that were the classes transposed, i. e. the highest placed in the room of the lowest, that the highest would be a single whit better than the lowest is now. I believe, indeed, that the members of this class would, in similar circumstances, act precisely as do their poorer m 'i» 24 brethren. But stiJ] I | 1 1 ™ his„™ .„e„„„t„„„uitttt,C:f one „ Tho disposition to pay mav J '"" '" ""» "'"^ »s a rufe There ,., ,„o „„„,. improvirl "Co T'?''''''''^' """"'"^ d.ffero„co is that while L„/of " '« "" "'"**^' >"" ""e « their .neomcs, thonsands rf , , " ''"'^'- "'"^^^ "ve up ;«" «o, however wi,Ii„„ a^ 'l ".f "'"y™" their n.ean' Many remark that ther^aie '7f , 7"^ '» W their debts. **onest ™e„ « every el I" *tl'e fi > , """~'^^' •-»'-' -<1 "obihty and other elasL a id w , ,', ''"'="'"'"■■' '»"»"»'» tl,e » ' eWs who let their c rciZ'" f^""'« '"'-. have'nen i„ he; always elear up e^rv ,'""*"'''''''"'''' ^^ >»«- »f ;hnte the inability rf fcL ""','"" "'' *""■ debts I .<">"%, '"thein.pJdele ^hlr "*" '" » their debts ^PWridenee, let „,„ ,.«, J^V ^ '^^ '" '"™°«^' "'em-an "'''^»-" Such is this writa's vi"" T^' '""^ -"»»««' "11 -eepted a, app-ieable to th :e„, " ' ■ "' '"'^ "'»»'■''' -»'»t be »f e.,sti„ England are mCZlT'T''"' ''^''"''''"'^ ^-"i- ^■fferentlind, and eonductedT ',„:' ""'"^ ''™°-» " of a Human nature being ,he sa.ne , 7 *' "" ^'"" P™eiples. -'ytakeitforgranldtha d e : "'■" "™'-' ''— - the same results would follow i,?""" '"""^'*'""" "^'^t he,^, eonducted trade proteetion ^wlt" "T "°" "«"■" "'""y «" fy-ng oven to the ren.„test pTr T °™' "'^ ™"°"y. ™»i able amount of good to whSesal J'T """""''^ ''° "-'"-'eu- P«s't.on of every individualt 1 T ' ^'"^ '">»™eter and eountry ean be a.,certai„ed a ,; j^ ,rTf "'""' "'""«■«»" the «aN= houses are wholly to blan.e ? 1^ > ''' ""' ^^J""-' ^hole- the information thus afforded 1. ^, ""' '"''^ aclvanta^e of »aie bad debts can e^ZT ' ""'• ''" ""nsequence if ,1, ^-.'-taii deaier:;^.r::^-*»%. "'«>'-„f.::'tL5 ^7'ety of the same kind! It "S I' ""'°"8'' t'-mselves a tea *; "-jority of dealers in IZn^ll ,t"t ""^ ""■'^- '"^^ --stoeopyout:iroXe!:fd:iS;iX^^^^^^^^ \ g business as a rule, le higliest, this class, but one es live up ir means? ir debts, )nest and ngst the e men in as possi- :bts. I ir debts em — an ngst all innot be »ns such is of a nciples- rer, we t here, y well rami calcu- and It the Hiole- ^•e of they ught oca' 3ose only ac. igst >ks. 25 we say the majority, us we feel assured, the ichole number of bad payers in the locality will be in the books of less than haJf the dealers. Dishonest persons will endeavor to get goods from as many as they can, and only with too much success. When these lists are made out, get the names arranged alphabetically, and furnish a copy to each contribtor, or to all interested in the scheme. We think every one when made aware of the scheme will be very glad to enter into it. There may be some false delicacy at first, but this will soon vanish. Keep one of those lists at hand for refei" rence, when wanted. Let us see now how this scheme would work. A man comes to you, and proposes opening an account- He gives very plausible reasons for this proposition — your goods are better than 4hose of your neighbors — or he has had a differ- ence with his last merchant; or he has removed to your locality ; or, perhaps, he has a regard for yourself. Whatever his reasons are he will urge them with great plausibility. You may know your would-be customer by sight. He may be apparently well doing, and you may be apt to listen with an acquiescing ear to his request. You recollect, however, that you liave a rogue detec- tor, and you turn it up to make sure he does not appear in its pages. When, lo ! there he is — you immediately refuse him, and if your reasons are wanted, you have indisputable ones to advance. He goes awciy, perhaps, in a huff, applies to your neighbor with no better success than he had with you. Still he goes to a third ; a fourth ; perhaps one or two more, but finds himself repulsed at every place. He now finds it of no use, and feels he has no alternative but to go back to the dealer whom he was trying to de- fraud, and make the best terms he can with him, who now has him at his mercy, and can thus make his bad debt good. The plan is so simple, that we wonder it is not universally adopted — it would not only prevent more bad debts, but would actually make bad debts good. As things are now constituted, credit is an absolute necessity. It is very well for some to exclaim, "Why don't you do a ready money business." Heady money businesses may do in large towns and cities, but it is utterly impossible, however desirab'e, to effect a universal change from tho present state o* matters to the ready money system. It is the dealers duty to find I 81 i 26 out by every means within his roach, the position of parties vfho ask him to trust his goods to them on the faith of their honesty. Another practical matter to be borne in view is never to let credit beyond bounds, however good your customers may be reckoned. We do not say what proportion of capital 'may be allowed to go in credit. Every one will be best able to judge for himself from the nature of the business, but we say keep a sharp eye on the proportions your credit may be assuming. VII. n ; »'■ Mi ■ j' It IK H ONES T Y . The advice of the Scotch parish minister to his son when leav- ing home, to follow commercial pursuits — " Now Jamie mak money honestly if ye can, but mak it"— is doubtless familiar to all- Whether the story had any foundation in fact, or was a pure fiction, there can be no doubt that the sentiment has too often been accepted, and brought into practice. There is a determina. tion in many to make money, which often con({uers principle. If fair means do not succeed, unfair are tried, and the result may be success in one sense, but incalculable loss in another. No amount of earthly dross will compensate for the violation of principle. We certainly do not envy the man who has been able to retire with a fortune by wrong means. He must ever bear about with him the consciousness of being in the possession of ill-gotten gains — gains which will haunt him in his visions, and render his life uncomfortable. No ; we say, if we are to have a fortune, let us make it in a ftiir way, by straightforward conduct, deviating nei" ther to the right hand nor to the left, from honesty and justice in all our business relations, and if we cannot make it in that way, let us not have it at all. We are aware that the power of money is greater at the present time than it ever was — influence, honor, and almost all earthly comforts and pleasures can be obtained by it, and the legitimate possession of these may justly be coveted, but let them be had in a legitimate way. The beginner in business should make honesty his watch word. Perhaps Mrs. Opie's de- ii ill arties who ir honesty. ' let credit reckoned, wed to go nself from ye on the hen leav- ik money r to all. IS a pure 00 often termina. iple. ]f may be amount rinciple. retire ut with n gains his life let us ng nei- stice in tt way, money honor, led by »veted, isiness j's de- 27 iinition of u lie is the best which could be given — '< The intention *o deceive." We would ask this definition to be kept in memory — it applies equally to dishonesty and falsehood. Looking at this matter altogether apart trom its connection with the moral code, we confess we have always failed to discover the necessity for falsehood in trade. There ought never to ])e an occasion when it is rcijuisite, for one purpose or another, to use a deliberate false- hood, and yet it is too true that falsehood in every trade is prac- tised in some shape. We could give many instances of this. Just take up any newspaper, and look at the advertisements, and see how many honest men are informing the public with all serious, ness that they are selling their goods actually below cost price — every one endeavoring to offer greater advantages than his neigh- bour, and asserting that such an opportunity has never occurred before, while if you take ^he trouble of looking up the file of the same paper, you will probably find the same advertiser offering equally great advantages ten years before. To say nothing of the apparent falsehood in its face ; this style of advertising is hack- neyed, and is extremely stupid ; the dust is so clearly seen, tha^ people have no difficulty in shutting their eyes from it. Again ; suppose a person enters a place of business with the intention of purchasing, the anxious dealer sometimes does not scruple to sjjy that goods are comjwsed of different materials than those which really compose them, so as to secure the sale. And, again, should an article be wanted which he may not have in stock, he produce^ the nearest to it he has, and avows it is better for the purpose than the one asked for, knowing at the same time he is uttering what is not true. We do not say that any one resorts to such resources willingly, but the desire to sell is so strong in some, that it over- comes principle. When such a course is indulged in for some time, all scruples disappear, and it seems to become a part of the business. Nay, it is regarded by many as indispensable. Theeas® with which young men fall into this habit calls for a loud note of warning at the outset of their career, and should teach them to be on their guard against such a habit. On the other hand there is a danger of falling into the opposite extreme, namely, of doing your customer too much justice. You must frame your prices, so 28 as they will pay you. Yon must give attention to your weights, measures, discounts, etc. In giving weight or measure, as the case in your particular business may be, the true plan is to be exact, not a single iota more or less than is right. You require to do this to be honest -and true to yonrself. We remembei' hearing the following related many years ago, and we introduce it here as applicable : — A very decent-like woman was buying some goods from a retail dealer, who, in giving her one particular article happened to allow a slight overdraft. Tender the impres- sion the trifling overplus was allowed by the merchant from a sense of justice, she piously exclaimed, " A false balance is an abomin- ation to the Lord." True said the dealer, but a " Just weight is his delight," making at the same time the balance quite exact. The sooner exactness is learned in these respects the better. All tricks of trade are to be avoided, as low and disreputable, and un- worthy of a respectable concern. We believe that thousands of groundless charges are preferred by an ignorant public against dealers for adulterating almost all sorts of goods. While this is so, and while we believe that adulteration of goods is the excep- tion, not the rule, there are many cases v/here it is practised. We could instance dozens of cases proven, were this required to sup" port the charge. A straightforward course in business carries ifg own reward along with it. The character of a straightforward man soon becomes known — the public put confidence in him — he gets a larger share of their patronage — he is spoken of as respect- able, etc., and apart from this such a man must derive the most solid satisfaction, when at the termination of a long, useful, and successful career, he leaves the field without a blot on his name — his honor, integrity, and justice perfectly unsullied — every copper of his means fairly earned. Regarding honesty as a policy, not as a principle, it is in that light decidedly the better course to follow. Roguery and defalcations of every kind, ingenious and complicated as they often are, always sooner or later are discover- ed, and followed by a fearful retn^jution. We know of no crime which bears along with it a severer sentence than dishonesty, when fully proved. The person's character is gone — let him repeat most sincerely, and reform permanently, yet he is never againr m 29 p weights^ re, as the is to be u require emembei' roduce it ing some articular i iinpres" Q a sense aboniin" t weight e exact, r. All and un- ands of against ) this is excep- We to sup- riesifg ►rward u — he ispect- niost , and me — opper not se to and )ver- rime hen seat rainr recognized in the same manner as formerly, which should w'arn all in trade to keep a straightforward path. VIII. METHOD. Method is a characteristic of all great minds. We do not remember to have met with an instance of a great merchant who did not possess this indispensable quality. "Have a place for everything, and keep everything in its proper place. Do every- thing at the proper time. Never put oif till to-morrow what you can do to-day," are excellent maxims, and ought to find a perma- nent place in the memory of every business man. In all well con- ducted businesses things are done in a systematic manner. Every, thing is done regularly. This gives ease and pleasure to all con. cerned. The quality is essential to the business man. It enables him to do a much greater amount of work ; it saves time and money, and it exempts him from a mass of tantilizing work. Those who do not possess this quality so fully as in necessary, can accomplish it by practice. " Method," says Ilichard Cecil, <' is like packing things in a box ; a good packer will get in half as much again as a bad one." Mr. Smiles says, regarding Cecil, '< His dispatch of business was extraordinary, his maxim being — the shortest way of doing many things is to do only one at once and he never left a thing undone with the view of returning to it at a future time. When business pressed, he choose rather to encroach on his hours of meals and rest, than omit any part cf his work." Examples of great men in every department might be quoted as illustrations of method, but the value of the quality is so easily seen that this is rendered unnecessary. Carry this habit into all matters besides business — your hours, your ex- penses, your amusements, &e . You will find it to carry its own reward along with it. 1\<'I 1^ 30 IX. PERSEVEllANCE. Perseverance is another characteristic of a j^reat mind, and it is also a quality which cannot be dispensed with in the man who would succeed. No extensive business was ever founded in a short space of time. Those colossal fortunes amassed by n\any of our merchants, are deeply indebted for their magnitude to in- defatigable perseverance. There are thousands of persons who have made independencies by persevering against all obstacles and difficulties — persons, who, it may be remarked, began life iu a very humble manner. It must be allowed that a long run of dull trade, or a series of losing transactions, or a " run of ill luck," as the saying goes, exercises a most depressing influence on the mind ; but such adages as " The longest lane has a turn," 'The darkest hour is next the dawn," etc., ought to serve as encouragements to those who are not so successful as they would like to be. It is related of King Robert the Bruce, that after a series of unsuccessful engagements with the enemies of his country, he was obliged to save his life by flight. He found refuge in a humble and obscure dwelling. While there ruminating over his many disappointments in a most dispirited and hopeless frame of mind, his eye caught sight of a spider which was endeavoring to reach the ceiling of the room. The creature made eleven efforts, but failed. Undaunted, however, it tried once more, and was successful this time. Bruce could not help remarking that the number of the spider's failures corresponded exactly with his own, and from this trifling incident he gathered courage to do battle once more in his country's cause, and this time he, too, was successful. The celebrated George Stephenson, when addressing young men used to say, "Do as I have done — persevere." Elihu Burrit ascribes his first success in self-improvement not to genius, which he disclaimed, but simply to the careful employ- ment of time. While working and earning his living as a black- smith, he learned some eighteen ancient and modern languages, and some twenty-two European dialects. '' Those who have been I 31 mind, and u the man [bunded in 1 by many tude to in- •sons wlio obstacles :an life in 'ng run of run of ill iuence on J a turn," » serve as ey would it after a country, ■'uge in a over his frame of wring to 1 efforts, md was that the ^ith his i'e to do »o, was Iressinjj Jvere." ; not to smploy- black- ?uages, e been acquainted with my character from my youth up," said he writ- ing to a friend, " will give me credit for sincerity when I say that it never entered into my head to blazon forth any acquisition of my own. All that I have accomplished, or expect, or hope to accomplish has been and will be by that plodding, patient and persevering process of accretion, which builds the ant-heap, par" tide by particle, thought by thought, fact by fact." Sanmel Budgett, the successful merchant, whose biography is so ably executed by Mr. Arthur, offers a most striking example of per" severance under difficulties. Try, try again, is an injunction which adults should take as well as juveniles, to whom it is ad- dressed specially. When we see how mnch the most minute and apparently insignificant insects can accomplish by the exercise o*' perseverance, we ought surely to take encouragement. The ant toils steadily in the work of building her heap, and after a long time her castle is finished. The tiny and short-lived coral has formed reefs, whicli are the dread of the most exjierienced mari- ner. The honey bee works steadily on, bringing her moiety of matter day by day, till her nest is amply filled. Perseverance is a quality which once exerted, strengthens a person to make fur- ther exertions, as, indeed, is the case with the exercise of all intellectual powers. It is not enough to be content with an ordi- nary run of business. The true business man will seek even when his business is in a flourishing condition, to extend it still further. It is bad policy to rest satisfied when you have simply an ordinary trade ; that is, if there is room for its further exten- sion. The time when perseverance is most essential is, when matters are not in a flourishing condition — when you have to make a trade, or when you have difficulties or opposition to en- counter — when you are losing hope, then, we say, is the time to perse- vere. Steady perseverance even under such circumstances will be sure to end in success. Sir Isaac Newton may be taken as one of the greatest examples of perseverance which the world has ever produced. On entering his room one day, he discovered to his unspeakable chagrin and dismay, that the MS. of one of his greatest. works was consumed to ashes by the action of his dog, which he inadvertently lelt in the room. He resolutely set to ft, 32 wort ., gain, ,„,d „otwitl„ta„di„„ i|,a, „ . «>"M yea™ „f labor, and that '",?„ '"■■"""■ "«• ''''P'^- I" oiling thi, subjcot, w» "lot I r;^ "" " »»«fi-»l.ed. repeated word, „f Longfd oC"""' k' *"' """' 'I""** "■« -ft «»% -eve, and wiU ^taMbe: ^J t V"" ''"* "' ^""■■- „j <"K.cta» Ions as time lasts:— Lot „s ,b^, be „„j V/W " ''?"'-"o'- »ny fate S>M>,cluev,„a, still /„»„!,„ _. Learn to laBor and to wait " X. JS C N M Y . Economy is another grand cssenC,] • i •e™ «i.y be defined as the art 7sa-„'''"™''" '''"»• The ehe of value, sueh as time from nt> """"^ "'"^ «™'-y«hing K.chard's sayings, which wo erwhet' VZ''^' *»*• P«' '" *e desire to ineulcato ,J7uZ " "'"■ ''"'' *""• ""S'" Sood effects of those q.Jnt sa^lTl^T,^'- "^^ ''^«-- «- fear that they will boccue e.tCt alho , '1 .?'""'• ^°^ 'l" « present generation is to i,.,ore tW f '""<'«"«>•!" the hope that a re-action will Tk„ „ "'" '"■"■»-'<=' "« their „,orits. I, «„,, with ptr j£ T"^ "^ '""«<' '» ho„<«tme„-hisi„tegrity is alC d-t ". "'«' "'-^ other eogmzed and landed, bul his proles ' . """"es wore re- Ple do not take the trouble to ™t^e !,?,'"" ""'^'^ "Pon-peo. «.y.ngs. although re-oast by Fr ^ 1 A "?**'• Tho«e the proverbs of the tin.o. Many o f thl f' ^""'^ fr"'" else but while this is so, the Zi • d "''"''"■' ""-o ""thing or diffusing so widely so n u2 1 1 T'"^ "'» S-'eatest credil While we advocate economv nd o ''^'•""'' """««»' "'"tto --t warn againstits ereZi ';:;;:"" t'" ^""^' ■"™' ^ .=;^t:rt;;t:^^^^^^^^^ MS. repre- >arH must be vas finished, {uote the oft kJe as briUi- ine Jasts : — an. The verythiDg- ite. Poor sir origin ilieve the or do we 3y in the -let us lited to »y other w^ere re- II— peo- Those ^ from lothinc credit natter, -n, we h any ercise igob- other 33 object than the acquisition of money for itsowi ike. It in true however, that thousands who began the race in iiitj with only the desire to aniriss a moderate competency, have been insensibly drawn away witli the current, their desires widening with every addition m:ide to their fortunes — tlie saving principle nullifying the action of some noble qualities, freezing that of others, and prostrating others, till at length the whole soul is brought under its influence, and the man becomes a money grub — all his faculties engaged in its uuiking, and all the affections of his heart wound around it. ]Many persons require no advice to practise economy ; they are naturally of a saving cast ; they learn in early life as if by intuition the value of money, and retain this capacity to the last. Others require a careful cultivation of this liabit to render their lives comfortable, keeping out of view the making of a for- tune. Some of this class are disposed to give away with one hand Avhat they receive with the other. Such persons are spoken of as warm hearted, generous fellows. They live in habitual for- getfuhiess of the adage, " Be just before you are generous," and only discover their folly when too late. Every man in business must, in order to be just to himself and others, practise true economy, taking care to keep the middle course between the op- posing and equally dangerous extremes. The present age affords unprecedented facilities for turning everything to use. Hundreds of things, which a few years ago went to swell the rubbish heap are now eagerly sought after and purchased. Animal, vegetable and mineral refuse, no longer lie as nuisances around us. Com. merce has discovered that it wants then), and people are very willing to let them go. Such being the case, let us no longer hear it said, " Oh, its of no use, throw it away; never mind> its a mere trifle." Let it be borne in mind that many littles soon amount to something considerable. " Many littles make a mickle," as the Scotch proverb has it. Fortunes have been made by attention to littles. The matters which engage the attention of the business man in connection with this subject are, chiefly — to exercise such means as will keep his business expenditure (consistently, of course, with proper dispatch and development) at the lowest possible point, and in the next place to limit his per- c f 34 Bonulor family expenses to a wuiu which will cover all reusouable wants, and yet bo within the limits of his income. In order to attain the former of those, lie will rocjuire to keep a vigilant over- sight himself of every mutter in connection with his business- Assistants may be very good, but it cannot be expected that assist- ants would take that deep interest in their employer's aftairs that ho himself takes. When you examine minutely into your busi- ness expenditure you will most likely tind that there are matters which ean be reformed without doing a particle of injury to the business. Regarding the second matter — that of keeping personal or family expenses within proper bounds. Wc feel assured that every sensible man will give it due consideration. The members of one's family may not know how the head stands ; they may have false notions of his means, and may in consequence incur expenses which are extravagant. If this course is allowed, as it often is by indulgent parents, the conse(|ucncc3 may be very serious. Thousands of men in business have been ruined by the extravagance of their I'amilios. This is a matter of fact, and we think it justifies us in directing attention to it. While treating on this principle, we think it will be acceptable to the reader to append a few of Franklin's adages. The sayings are rather old- fashioned for the taste of the present age ; but there is, never- theles8,an immense amount of truth beneath their homely garb, and we can assure the reader their study will amply repay him : — 4* If you would be wealthy, think of saving as well as of getting. The Indies have not made Spain rich, because her out-goes were greater than her incomes. Away with your expensive follies, and you will not have so much reason to complain of bad times, heavy tixes, and- chargeable families. What maintains one vice, would bring up two children. You may think that a little superfluities now and then, diet a little more costly, clothes a little finer, and entertainments now and then can be no great matter ; but remem- ber that many littles make a mickle." Beware of little expenses, as poor Richards says. And, again : Who dainties love, shall beggars prove ; and^ moreover, fools make feasts and wise men eat them. Here you are all got together to this sale of fineries and nick-nicks ; you call them goods, but if you do not care they H 1!| ' l! 1 reasouuble T» order to ij^ilarit over- ''•■^ IjU.sillOM.S. 1 tliat HH.Mi.Ht- aR'nh'H tliat your bu.si- m*e matters jury totho n;; personal ^sured that - iiioiiibers tliey may 2ncc incur Jlowcd, as i be very led by the t, and we treating eader to ither old- never- ?"i-b, and him ; — ettintr. n _ es were lies, and ', heavy ', would 'fluities er, and 'eineui- Jenses, shall 3 men neries tJiey 35 will prove evils to some of you. You expect they will be sold chea[>, and i)erhaps they luay for loss than they cost ; but if you have no occasion for thcni, they must be dear to you. llemeraber what poor Richard says : " Buy what thou hast no need of, and thou shalt sell thy necessaries.' And again : " Pause awhile at a great pennyworth." He means, jHJrhaps, that the cheapness is apparent, not real ; or, " The bargain by straitening thee in thy business, may do thee more harm than good. For in another place he says : " Many have been ruined by great pennyworths." Again : it is foolish to lay out money in the purcha.so of repent- ance, and yet this folly is ractised every day. Silks and satins, scarlets and velvets put out the kitchen tire, as poor Kichard says ; these are not the necessaries of life, and yet, because they look pretty, how many want to have them. By these and other extravagancies the genteel arc reduced to poverty, and forced to borrow of those whom they formerly despised, but who through economy and industry have maintained their standing, in which case it plainly appears that a plou<.,lmian on his legs, is higher than a gentleman on his knees, as poor Dick says. Perhaps they had a small estate left to them, which they knew not the getting of; they think it is day, and will never be night; that a little to bo spent out of so much is not worth the minding; but always taking out of the meal tub and never putting in, soon conies to the bottom, as poor Richard says ; and then, when the well is dry, they know the value of water. But this they might have known before, if they had taken his advice. If you would know the value of money go and try to borrow some, " For he that goes a borrowing, goes a sorrowing," as Richard says ; and, in- deed, so docs he who lends to such people, when he goes to get it again. XI. STOCK-TAKING. Bu,siaes8 being full of ups and downs — profits and losses — it is not to be wondered at that every dealer feels a sort of nervous 36 anxiety as the time for taking stock approaches, to know exactly how he stands. As taking stock in most concerns involves a con- siderable amount of labor, the period generally allowed to elapse is one year from the time of commencing, and afterwards inter- vals of the same length. In some trades stock can be taken with- out much labor. In such cases we certainly advise all who can do so to tak J stock, and balance their affairs half-yearly. The trouble whici accompanies stocktaking deters some from doing it in a thorough manner. These men content themselves by putting an approximate value on their goods, or by skipping things slightly over. AVe must condemn this conduct. It is every dealers duty — a duty Avhich lie owes to himself and to bib credi. tors — to balance his affairs in an exact way. By taking stock thoroughly the dealer is compensated for his trouble by gaining a certainty of his position, a certainty which cannot exist in the case of those who go superficially to work. A point Avhich nmst be observed in taking stock, is not to put too high a value either on the appliances of the business, or on goods which have dcpre. ciated in value. It is very natural, we admit, for dealers at this interesting time to make the asset side of the balance sheet as large as possible. The amount set down as assets is frequently falsely magnified by taking goods and furniture at full price, which may have deteriorated in value, and estimating bad debts as good. Tlie most satisfactory way in the end, is to leave a wide margin a'niinst vou for these matters. It is best to err on the safe side, and if things turn out differently you will be agreeably surprised. When stocktaking is completed, you will be able to judge whe- ther your business has been conducted properly. If it is found that your profits are not so much as they should be, you will most Ikely be able to discover the cause. You may find that your rate of profits is too small, or that the expenses of the business are too large. When this operation is completed, you have an oppor- tunity of regulating your profits to the rate required, and of lessening the expenses to the proper degree. A great many other advantages follow stocktaking, the least of which will generally repay all the labor incurred. We have inserted directions as to the best manner of taking stock iu the system of book-keeping. n 37 now exactly volves a con- i^ed to elapse vards inter- taken with- all who can >rly. The oni doini? it by putting- >ing things t is every ) hib credi. ^ing stock gaining a i«t in the hich must due either ve depre. 3rs at this 3t as large tly falsely ° lich may ^s good. e margin 'aie side, n-prised. Ige whe- is found ill most 5ur rate less are I oppor- aud of Y other uerally s as to ieping, which is appended, to which we refer the icadcr for further in- formation. XII. ADVERTISING. We have it on the authority of Macaulay, that advertising is to commerce what steam is to machinery. Macaulay, who was one of the deepest thinkers of our age, deserves to be listened to on this subject. The object of advertising is just to make one known — to extend the name and character of j'our firm as widely as possible, with the view of increasing trade. All want this ex" tension, from the largest firms whose transictions amount to millions per annum, down to the merest shopkeeper, whose turn over is a mere bagatelle. It is a fact that most busi- nesses (taking all sizes and descriptions into account) are in the aggregate indebted to a very great extent for their enlargement to advertising. By advertising you make the nature of your wares known to the public, and keep your name and locality before their eye. By persevering in this course you will in time succeed in impressing your name and the nature of your business on the pub- lic mind. Indomitable advertisers have succeeded in this, even in cases when the goods advertised wore anything but generally interesting to the public. The value of a good name is under- stood by all intelligent traders, and this is one of the main points at which advertisers are endeavoring to arrive. When this point is gained, fortune will court you as sedulously as you courted it. When a mercantile firm gain a good name, they secure advantages not only to the present members of the firm, but which make the path smooth for their successors, it may be for generations. 8uch has been, and even now is the case in hundreds of instances. The value put on a name may be seen by looking at some old houses, whose original founders and partners are dead, it may be a hundred yCu-rs ago. Yet the original name is retained by all their successors down to the present day. The influence of a name is so well known that no consideration will induce its altera- 38 w If tion. The successors in an established hovse deem, and deem rightly too, that a change in name would be followed by an un- favorable change in trade, and they consequently carry on under the original name. A proverb says, " Give a dog a bad name and hang him," and a sacred proverb tells us that " A good name is better than riches." Both are true proverbs, and we commend them to the consideration of men in trade as having a direct bear- ing on the subject in hand. The question now occurs : — " Which are the best means to attain this object, namely, of advertising successfully, and ac- quiring a good name. That it is important to get a good name — to advertise and make one's name and address familiar to the public, is conceded on all hands. What arc the best means to this end ? The best channel is, undoubtedly, the newspaper press. Looking at the immense increase of news- papers — the low figure at which they are sold — the great number of daily papers, it will at once be seen that the newspaper is the leading means to convey the information you wish to communi- cate. It also has to be considered that the increase of newspapers has been followed, as a natural consequence, by a corresponding increase of readers, and therefore the chances of one's advertise- ment being sion and read are greatly increased. It might be in. teresting to go into newspaper statistics and show the immense multiplication which has taken place within the past few years, both as regards number and circulation, but this would involve too much space in such a work as this. SuflSce it to say that the newspaper has become a necessity in a much deeper sense than the term formerly imported throughout the whole country. The newspaper is now continually radiating from cities and towns to the most distant parts, permeating almost every dwelling in the country — thus, the newspaper offers the best means for advertis- ing. Care will require to be exercised, however, in selecting the paper best suited for the purpose. Newspapers are now published exclusively in the interest of certain branches of trade ; indeed, every trade and profession of any magnitude has its own organ ; for example : " The Agriculturist," " The Oil Keview," '' The Ironmonger," &c. &c. If the advertiser's trade is wholesale, he 4 % 'om, and deem wed by an un. "•ry on under f*f? a bad name ^ good name i We commend a direct bear- est means to '"^ly, and ac- get a good ress familiar hat are the undoubtedly, 5ase of news- Teat number 'paper is the 'o communi- ■ newspapers rresponding 3 advertise- ^ight be in. fie immense ' few years, lid involve ly that the sense than ti-J. The J towns to ing in the advertis- 'cting the published I indeed, n organ ; " "The esale, he w 39 must advertise in the paper devoted to hi^j trade. This paper possesses an interest for retailers as well as for wholesale houses, and is eagerly conned by every member of the profession, however humble, into whose hands it may t'lll. This being the case, the wholesale advertiser is certain to nu ke himself known through the medium of his trade organ. The main use of these trade papers is confined to wholesale dealers. A retail dealer can expect no good from advertising in them, and so must look somewhere else. If the retailer's situation is in a large city or town, he ought to patronize the paper which has the largest circulation ; by doing so his name will have a circulation equal to that of the paper which contains his advertisement, and the chances of its being seen are greatly increased. Another point to be attended to is the selec- tion of a respectable paper. Newspapers have a status, and in large cities many very indifferent papers are published which have a very wide circulation. Although tliese papers has a large cir- culation in tlieir favor, the advertiser should avoid their columns on the principle tliat a man is estimated according to the company in which he is found. Tliis remark, of course, only refers to the lowest class of papers. These papers may offer a temptation by low charges, but our advice is to refrain from them wholly. The same remarks are applicable to dealers in small towns, with the addition that in country towns where more than one newspaper is published, it is often the case that one of them possesses an ex- tensive circulation amongst the country people, such as farmers • and if the advertiser's wares are of the kind required by this class, he will find it to be to his interest to advertise in this paper. Besides the newspaper, periodicals of all kinds are em- ployed as advertising mediums, and we do not hesitate to say with great success. This inference may be drawn from the very large number of advertisements which many of them con. tain, sometimes swelling the bulk of the magazine by one-half. Magazines as mediums of advertising, deserve more attention just now owing to the immense increase in their numbers, an increase which is still going on. In many instances magazines, like news, papers, are the organs of parties and denominations. Every per- :3S ■ ;< <9. % I i 40 son who subscribes for a maj^azine can easily render his reason (which frequently is of a political cast) for taking that particu- lar magazine. It must not be supposed that educated people confine themselves to one magazine, yet, however many they take, the matter in each will generally be found to harmonize. These matters require to be studied by advertisers. Advertisements in magazines have a better chance of being seen than those in news- papers, because the former is in a more convenient form, and the literary matter it contains demands and receives more attention than that in newspapers. The magazine is often a well-thumbed volume, and its contents are of such a kind as may induce re- peated perusals ; whereas the newspaper has an unweildy form, and its matter has reference — speaking generally — to passhig events, which seldom receive a second reading. Thus it will be seen that advertisements in magazines, however great the number may be, have a better chance of being observed than those in the long closely-packed columns of the newspaper. Although maga- zines are so good, yet on the ground of circulation, the newspaper must get the preference. As a consequence of the sectarian na- ture of many magazines, it follows that certain things can be more advantageously advertised in some magazines than in others. The advertiser must select the magazine which suits his trade best, as regards the circulation it has, and as regards the sort of people which it reaches. The next medium of advertising is necessarily restricted and local — the circular. Circulars are often found to be most effective in their operation, in many cases more so than either of those already noticed. The circular comes home more to the person to whom it is addressed than your ad- vertisement in either the magazine or paper can. Advertisements in both the latter are general — in the words of the underwriters, *' To those whom it may concern ;" they are addressed to the mass ; no one feels himself particularly addressed, and there is a danger that those whom you want to reach, will lose themselves in the multitude. The circular, however, obviates this danger ; the person whom it reaches finds himself particularly addressed ; his name is upon it and he becomes aware that the advertiser had. his reason t particu- ed people hey take, These Jnieiits in iu ncws- and the ittention thumbed iduce re- ly form, passing will be number 3 in the maga- ^^spaper ian na- an be thers. trade iort of ieted o be than lome ' ad- en ts ers, the 18 a ves er; Id; ad ^ jt 41 him specially in view. Moreover, it comes to him with his other letters, and is thus sure of obtaining a perusal. Another import- ant difference between this way of advertising and those men- tioned, is that your advertisement has no rival — it is alone in th field ; whereas that in the paper is surrounded on all hands by others of all pi-etensions, the vociferousness of some of which threatens to drown yours altogether. Another purpose which the circular serves is the brin<>ino' of vour wares under the ob • servation of people who, seldom if ever, look at advertisements in the newspapers. The number of people who shut their eyes, so to speak, on advertisements, is much greater than might be supposed, and in these busy days when the pulse of business and every other occupation is throbbing at fever rate, we need not expect more attention from such people, to a matter which they 'regard with indifference. The circular serves a good jmr- pose in this case, although your advertisement may have died in the newspaper or magazine, so far as those people are concerned, still by it you have the means of catching their notice. As we have mentioned, the circular is necessarily local ; that is as re- gards retails dealers ; but if properly used, it is capable of pro- ducing excellent results. To those who liave not as yet tried this expedient of extending trade, or to beginners who may have it in view, we recommend the following system. In the first place single out all the wealthy families in your district, take next -the members, of fill professions practising in your district, clergymen, medical men, lawyers, &c., next all others whom you may consider worth trouble and expense. The terms " worth, trouble and expense," is applicable to all ; for it is fre- quently the case that a dealer would best consult his interest by having nothing to do with many people who have all the outward marks of wealth about them, and yet have little or none of its reality, so that the trader who is about to issue invitations for custom will need to ascertain, if he possibly can, what omissions are to be made. The compilation of such a list will not occupy much time, and it will always be useful. Next in importance to the circular is the business card. — These cards when wfill nlavA<1 — to vi?e an esprc V/OOIUU ap- '*<»» 42 plied to cards ol' a very different description — succeed ad- mirably. Rep;arding the matter on the card, we recom- mend it to be plain and distinct. Business cards exhibit an endless variety of size, type and design, just as might be expected from the variety of taste which exists. If it is allowable on such a matter as this to make suggestions, which from being those of one individual run a great hazard of being disapproved, we would say, avoid the smallest and the largest size ; choose the mediunj, or as near the medium as will suit the matter to be put upon it. The most common and the best shape is square. The type of whatever kind ought to be distinct. AV^e have seen cards cnibellished to such a degree as rendered the matter almost illegible — no end of flourishes, etc. These cer- tainly may be admired as works of art, but tlie propriety of so much embellishment in business cards is questionable. The im- pression should be clear and of such a kind as would make an impression on the mcmor}'. The greater number of cards con- tain on one side the name, business and address of the person or firm, and on the other a list of the departments of the business or kinds of goods kept, as the case may be. The efficiency of the card as an handmaid to business depends greatly on the time at which it is sent. Beginnei-s frequently send their cards as an in- timation of their willingness to do business with the party to whom it is sent. We think, however, that the card does more good when timeously sent to individuals or families just arrived in the locality. The card first received, in such cases, stand the best chance, as it almost invariably happens, that parties in this position require many different articles, and lose no time in pro- curing them. There is a risk, however, of over-doing the mat- ter. A short time should be allowed to elapse before handing in your card, in order to let your coveted customers make all the usual arrangements, and get settled down. A card coming dur- ing the bustle of unpacking, etc., would, in all probability, go astray, and besides, however eager a person may be to push his business, it would look better not to come forward too precipi- tately, and thereby endanger the formation of an unfavorable opinion. But the nick of time is not so easily discovered. In m^ 43 iccced ad- we recom- ds exhibit as niio-ht If it is ons, which d of beiug the largest ill suit the best shape e distinct. ndered the riiesc cer- iety of so The ini- l make an cards con- ! person or usiness or iicy of the le time at as an in- party to oes more arrived stand the is in this e in pro- the mat- nding in e all the ing dur- ility, go msh his precipi- vorable id. In ,1 -w order to approach it, the time when the party anives should, if possible, be ascertained. This will form some data to calculate from, and this can. easily be found. ' NN e happen to know that most respectable lirms have pressed into their sei'vice such persons as waiters, porters, etc., for a con- sideration, of course, with more success than miglit be credited. So much for cards as a medium of advertising. Some of the points touched may seem trivial, but we assure the reader that he cannot aiford to allow the most trivial matter, in connection with this subject, to escape liis notice. The last ordinary medium of advertising in use, is bills or posters. These are useful mainly as far as the general public are concerned. It would be absolute folly to think of issuing either circulars or cards to every person in a com- munity ; to supply this impossibility bills and circulars are used, The remarks made regarding the size of the card are not applicable to these. The larger the size, the bolder the type, and the more startling the heading, the greater chance they have of arresting attention. We would warn against stupid and irre- levent headings, however startling and arresting they may be. The only purpose they serve is to disgust peoi:)le, and earn you the name of a quack. When people lind such an incoherency between the title and contents of an advertisement, the bulk of them stop reading at once, f/K^ die instrument becomes useless. Persons advertising in this way should stipulate that their pla- cards be placed high, as at the end of a short time any person may cover them over, or pull them down, and owing to the num- ber of public announcements they cannot possibly remain long before the public. By being placed a little above the ordinary height, they have not only a better chance of being seen, but also of remaining for a long time. We have observed in an ele- vated position bills remain for many months, until at last worn away by the weather. We consider the plan of bearers carrying placards, and moving along with them to be good on particular occasions. These are used principally for announcing lectures, concerts, etc., and the occasions on which they might be useful in business are few and far between. Before leaving this part of the subject we would recommend that good paper be used both • h J 44 for the circulars and posters. It would save a trifle to use in- ferior flimsy paper, but this is more than counter-balanced by the air of respectability which accompanies superior material. The next thinj]; to which we would direct attention is the sign. It maybe said that the fixed name of an individual or firm on his premises c!in hardly be called an advertisement, but it is so, not- withstaudinfj, in a limited sense, and it is important that the name and number be as distinct and prominent as possible. We have sometimes observed along the face of business premises huge letters some two or three feet high, and about the same distance from each other, forming the name of the firm. We cannot help thinking that mammoth signs after this fashion are a great mistake. The main purpose they serve is to confuse the mind, and give the persons looking for the place a deal of trou- ble. Such signs fail in their object every way ; the general pub- lic wont take the trouble of putting the letters together. I'cople are much more apt to observe smaller letters when made distinct and placed close to each other, for the simple reason that the whole can be taken in at a glance, and are quite as easily de- ciphered at a distance as their more pretentious rivals. Our remarks respecting the variety of cards in existence are appli- cable to signs. Every color of the rainbow is put in requisition to form what the owner thinks most striking, and at the same time in keeping with good taste. All kinds of letters, as well as all combinations of colors may be seen on signs — the plainest, the most fanciful, the most grotesque, and all grades between, may be found on signs. For our own part we would choose the plainest letter, and of a color in direct contrast to the ground on which it is painted. A sign of this kind catches the eye quick- est, and keeps a more lasting hold on the memory. Coming now to the style or form usually employed in advertisements it must strike every one who reads a paper, that advertisements are rendered drier reading because of the sameness and monotony of their wording. That there must be a general stereotyped form we admit, but we think much more original matter along with more variety of the existing forms could easily be made to ap- pear in the advertising columns. At present we find nearly the O 6 m 45 same form employed by all kinds of dealers — wholesale and re- tail — in large and small towns. Such terms as " Beg to an- nounce," " Inform the public," '* Uncquallod," " Unsurpassed," " Lowest possible price," " !:?mallest remunerative profit," &c., &c., are recognized as very old acquaintances. Almost all dealers prefer to use this stereotyped form of advertisements — whether they are not able, or do not care to take the trouble of producing something new does not appear. Many are doubtless shy to put themselves forward in any unusual waj' — they dread being laughed at, and there is certainly a danger in this respect. Original advertisements should not be attempted by a person un- less he is (juite competent for the task. Ridicule is as dangerous to trade as to character, and it should be avoided by all means. But those who cannot devise anything new, can easily gather materials for improving and varying their advertisements. If this even was more frequently done, its effect would be felt in the business. When the same advertisement is allowed to remain unchanged for a length of time, those who observe it get tired even of seeing it, and it in consequence loses its effect ; whereas, if the advertiser varied the matter ^veekly or fortnightly, his ad- vertisement would be read with relish. Suppose a person adver- tised all the year round, changing his advertisement fortnightly, twenty-six different forms would be required. This would in- volve some labor if all were made out at once, but by composing one each fortnight, and retaining a copy of each, the work would be spread over the year and would hardly be felt. The copies kept would suit for the following and all following years. The variety wanted could be had thus easily and simply. The head- ing of an advertisement should be in bold plain type. On look- ing over an English newspaper some few years ago, wo were forced to observe amongst a host of all sorts of advertisements one headed " Steam communication to New York." The type was so plain and distinct as to offer a complete contrast to all the others, and in casting a casual glance over the paper the eye w^as sure to rest on this one, and although noways interested in this page of the paper, yet as reguarly as it came to hand this claimant for notice made its object good. Another effective fear 46 • If 'i ture in advertising, which must not be allowed to pass unnoticed, is the ^hape which is adopted in some cases. Sometimes we see an advertisement contracted into a small space, with a wide, clean margin round it, or in a i 'angular form, or in a slanting form, and so on. The ailvertiser chooses the shape which he thinks is best calculated to arrest attention. We consider a good distinct heading, however, to be a matter for .aore consideration than the particular shape which suits one's fancy. Besides those already mentioned, we have omitted to speak of a few other effective mediums of advertising. The reason for this omission is that not being in conmion uwe, we did not deem them worthy of being put on a par with such as are generally used — we refer to trade almanacs, placards at railway stations, and other public places, etc. The useful matter in the former insures their pre- servation at least for a year, and the object the issuers have in vi«w stands a good chance of being realized, owing to the fre- quent occasions which arise calling for a look into the almanac. The gi'catcr number of such almanacs are issued by insurance companies ,ind firms trading with agriculturists, and judging by the perseverance which is shown in their issue year after year, we must conclude that the almanac is a successful medium. Again, cards at railway dej^)ots are certain to be read by thousands. The time which elapses before the train is due affords tune to those who are waiting to glance at the placards on the walls. Take any depot five or ten minutes before train time, and you will observe many of those who arc waiting to be reading the differ- ent advertisements around. AVe are surprised that so few ad- vertisers have taken advantage of anothv^r medium of advertising, which is just now almost neglected, which we have no doubt would be most successful. We refer tc fixing cards inside rail- way cars, along the sides or at tlie ends. It is true that such a method is in use in some t/lacjs, but so very limited as hardly to deserve the name of an advertising medium. We can see no objections to the plan ; on the contrary, we think most railway companies will be keen enough to let their vacant space, without pressing. We will now give one or two examples of successful advertisements. Au advertisement which has caught public 47 utteution to an cxtrnordiuary degree, and drawn thousands to the coffers of its f'ranicrs, will deservedly bo invested with much greater intere>*t thun any other-i. The following has been in ex- istence for at least thirty-live years, during which time it has appeared periodically in newspapers and magazines, and still it seems to be as welcome to a corner as ever. Its longevity and popularity are no doubt owing to the genuine wit with which it is pointed. V\ hether the Messrs. llowland had it made to order, or received it as a spontaneous offering wo cannot say, but we arc satisfied that supposing ever line to cost thousands, it has paid them : — A careless tbotmiin once lot fall A bottle of Macassor oil, The eve before a fancy ball. And left the rich odorous spoil. Beneath the lucid stars it lay, On the 8*one step with floating glare Working its miracle, instinct, With elemental roots of hair. Next morn the courtly dame grew pale, (Tho' Rowland offered pounds to show it) And for the gardener sent per mail, Who brought his frightful scythe to mow it. ilway hout ssful iblic This is an original adverlisenicnt, and one of the best we have seen. Besides serving its purpose as such, the lines are so clear as to insure their being read and appreciated by thousands who know little and care less for llowland and his macassor. The lines cannot be regarded as real poetry, neither can they be called mere doggrel ; the secret of their success, as we have already said, lies in the wit with which they arc pointed. Ad- vertisements in verse are common, but the majority of them can be called nothing else than mere doggrel, and being so trashy they serve only to disgust. Advertisements like the one quoted, if fabricated by an apparently neutral person, are much more palatable to the public than others which may be quite as clever, but which show too transparently the object in view. We see n© i 48 reason why such clover lines uppuur so rarely. " Money whlcli niiswereth all tliinj,'s,'' can doubtloHS procure lines applicable to any trade, aw ;^oo(l as those of llowlaiKl's. The next example i.s also an old and an original one. Like the foregoing it posse.'i.sos sufficient merit to command a place in every paper or magazine. Its point is not, however, (juito so witty as the other : — It tiHpiicncd one day as I BtroU'd thro' the strand, At War'^eu'd fumed warehouse I came to a stand, Where batteries of blacking were |)iled uu the ground, Sufficient to polish this planet all round. I've travelled by day and I've travelled by night, J'ut I never beheld .such a glorious sight, *Twerc injustice this wonder, mere blacking to call, I' or it shone through the bottle, cork, label and ail. !■ iii 1. Whatever portion of the s-urface of thi.s planet IMr. Warren's blacking wa.s sutiicient to polish, wo cannot guess, but we may safely conclude that the above effusion carried liis name and manufacture into many parts of the globe where he had hitherto been a stranger. The author hit the mark exactly — his rhyme is flowing and natural — the son.se is good without cither a mix- ture of bombast or nonsense, and the extravagance is by no means offensive. The piece bears evidence of having been writ- ten, if not by Warren himself, at least under his shrewd sujier- intendence. Speaking about JMr. Warren, we are reminded of another capital dodge of his, which proved as effective a.s tlie above tribute. It appears another firm in the same trade were in existence many years before he started, and possessed almost a monopoly of it. Warren hit on the following scheme to displace them and gain ground for himself. A number of smart young men were engaged and dressed out as footmen. These were furnished with a list of retail dealers in the city, who were War- ren's customers already, and were instructed to slip them. The city was marked out, and a certain district allotted to each. They were to call at every respectable grocers for " Warren's Blacking." They did so — were offered every kind in use but I >>5 ■I f 49 AVjiiTiMi's — the hliopkiM'por's rucoiiiiiu'ruliitinnH and persuiisioiw toll on »li';il' cars — iiotliin^j; wouhl suit but Wan'eu'H. TIkj Hho|)- koopcr was thus lod to bclicvo that NVarrcu'w hhickiuj; wuh really Kuporior to any otiuu', and to meet a demand which the nieniul loi'i;-,shado\vod, innuoiliatoly laid in a stock of Warren's blackinj^. So neatly was the dod^^o njana;;;ed as to leave tiot the slijiiliteHt inijaession that it was ii dodjj;e. Wo can imagine the shopkeeper ^iviuu; the most j^louinj; character to Warren's blackiuz, " The kind used in lord so and so's house. Warren was uii indoniit- ablo advertiser, and succeeded at last in amassin<^ a very groat I'ortuni!. Many other examples mij^ht be j;iven, but the space is more than occupicid. In closinji; tliis subject, we cannot do better than point to such names as Girard, Ilolloway, — whose name is literally known at tlic ends of the earth, and to Barnum, who acknowledges that his fortune was mainly indebted to liberal and constant advertising. ALDERMAN MECHI ON BUSINESS. The following remarks arc extracted from a lecture delivered by the celebrated Alderman Mcchi, at Crossby Hall, a short time asjro :— VALUE OP CONFIDENCE. There is no tie so strong in worldly matters as self-interest ; therefore if you act with integrity to your customers, if you have the ability to place before them the article they require with the necessary accompaniments of civility, attention and good feeling, you win their confidence and connection. I have always found it advantageous to meet my customers with the utmost latitude of liberality in regard to their exchanging or even returning the money for any article not approved. In fact, I say to them, do here as you would in your own house ; please yourself if you can. Thus liberality begets liberality. I have D i I I- '1^ ,'■ I ' i i u I' .^J5 se 50 fidence y„„ decline i,, ,i,„ . • '" '^"" ^''-ince on ,. . ""• ■■"•« .-.^.su.-ed of this JC ll '" "'" P"^''^ vi„; ""^' '^ "»«' P'-ico, and .v„idHo,l;/T '" ''"^■"' «-".or 0, Ir ■""n will take rteck of lit ' '■" ""■ ""= ''•"".•o I-! "'"" your average weX „', "' "'""'"'«"■ until y„„ l?^ '' '" ""^ '»« sideration is tlie ol, . •, • "''*' ■■mH er,u-,ll„ "' "i" ™>y good jud!: r: T;r °'' ^■""- «« ';r;:"'""t';'« »- ;^-danceof;„a:' * r^ --, -<• general;;:* '" or lu price \ • ^ ^ want__,v , / '^'^^e you an - ^^ -» '-dor wiiiende:::!':,,:;''- '•-<««% ^0 aJJot his capita] in "^ 'ither satisfied prompt atten- too often neg- fcliesc neglects of slow and '^ the public, on thig con- ned it, you '■'*> your cus- !ve the first forgive you 'y a trades- 'lis eustoiii- onsequent- rius this— 5 able and iistoni in may be If you or below -ry wise lie will price ; ^ could 5 of his be too tained do, by s add t the con- are an lity in 51 fixed amounts to the various branches of his trade, with a view to his own convenience and the wants and wishes of his cus tomers. This is no easy affair in an extensive trade, particu- hirly where there are frequent changes of fashion. Take especial care never to be short of the running or every day article. Attraction by Display. — Experience has taught me that with all articles of luxury or taste, it is good policy to de- vote a good portion of your capital to plate glass and elegant cases. I have, therefore, as fiir as possible discarded drawers and boxes, and substituted the visible for the invisible. Thus, while you are busily engaged, your customer yet may be attracted by some object which presentc; it&elf to view ; whereas, if im- mured in a drawer, no such pleasing result could take place. Cleanliness. — Cleanliness is a most important matter in every business. It will pay you in a fancy business once a month to clean up the whole outside, and to repaint the front once a year, which is my practice. Of course the outside, as far as can be reached, must be washed down every morning, and the win- dows cleaned every day. Some of our drapers' shops are good examples in this way. It need hardly be said that the personal appearance of the shopkeeper and his shopmen must harmonize with other arrangements. Finance. — Beware of over trading, it has ruined thou- sands, from the humblest shopkeeper to the greatest merchant. However large your capital, if you over trade, you are lost ; for, either by overstocking or by giving undue and unlimited credit, embarrassment must overtake you. Credit is capital if properly used. In all trades, particularly if extensive, take stock an- nually at least, with an account of all your own debts, and all debts owing to you. Keep a separate account of your personal or private expenditure, and bear in mind that without being miserly it is consistent with comfort and independence to spend rather less than you get. Whilst it is your duty to be punctual in your own payments, it is equally sound policy to collect at 52 o stated and regular periods the debts owing to you . Accounts do not improve by keeping, and no honest man will object to pay when called upon, when in his power. Remember that this is a world of vicissitudes and change, and that a good debt now may, by force of circumstances, be worthless three months hence. Fire Insurance. — I should hardly venture to allude to the propriety of insuring against fire, but that the statistics of fire ofiices show too plainly that a vast proportion of prop^^rty in this kingdom is uninsured. Not to insure is neither honest to yourself nor to your creditors. Collection of Accounts. — There is nothing which causes greater loss to a tradesman than an arrearage of book-keeping, and a neglect of regularly collecting accounts. Cost what 'l may, make it therefore an inflexible rule to have your book., posted up daily, and your quarterly or other accounts sent out at the exact time. Then comes the difficulty of collection. You may have to call twenty times or more ere you meet with your debtor ; so do not depend on the casual use of one of your shop- men, but devote a specific time and person to the collection, even if you pay a commission. It is good policy to do so, taking care to employ an honest regular man. Having collected your accounts you must at once enter them as paid, as nothing gives more offense to a customer than an application ibr a paid account. If you have doubtful or bad debts, transfer them to a separate book, and do not estimate them in your assets as good. Order. — Order Is nature's first law — disorder is an in- fringement. A place for everything and everything in its place tends greatly to the economy of time, which, in fact, is money. Unless you have a fixed and permanent place for every chiss of goods, properly numbered, you will be frequently ordering that which you really do not require, and occasionally lose the sale of what you have misplaced. Advertising. — In my opinion, advertising is a legitimate i u . Accounts will object to mber that this ood debt now three months 3 to allude to 3 statistics of ' pi-'^porty in 'f honest to vhich causes ok-kecpino-, ost what it jour book., sent out at ion. You with your your shop- tion, even '0, takintr cted your ling gives account. separate an m- ts place noney. class of ig that sale of 53 means of making known the wants and wishes of both buyers and sellers. It is merely making an extension of your shop front in the newspapers, whether the article be seen there or in the win- dow. In both cases its quality remains to be tested. It never can answer to advertise a bad article. By advertising a good one you extend your connection, which might otherwise be limited by the number and class who happen to pass your door and their connections. Assistants. — The choice of your assistants or dependants is a matter of serious consequence to your welfare. Conduct, character and capacity are essential ; but it will require an ob- servant discrimination to detect and apply them. You will select method and regularity in your boak-keeper — decision, ob- servation and discretion in your buyer, a bland banity with persuasion in your seller. Whilst you exact from the members of your establishment a rigid observance of order, propriety and decorum, treat them with that kindness and esteem which their good conduct so justly merits, encourage a feeling of self-depend- ence, and promote their comforts and amusements. In former times when there were few or no literary institutes, the members of my establishment contributed to a book fund, founded, of course, on some donation from myself. A reciprocal good feel- ing cannot be too much encouraged. An occasional contribution to a festive and rational meeting forms a happy relief to the cares and anxieties) of their every day occupations. The very term recreation is expressive of the weariness and exhaustion consequent on incessant application. With this impression strong on my mind, I have never had any doubts about the bene- fits of early closing, or an occasional half holiday. In conclu- sion, if the Almighty has blessed one with talents and success, remember that those precious gifts entail upon you the responsi- bility of a stewardship, that you may administer of your super- fluity with kind feeling and discrimination to your needy, sick, or less fortunate fellow creatures. c© timate ¥> '19 o 54 STEPHEN GIRARD. fol »en of modern ti,„o . Zrf^- ■> """ "^ *'"' '"™' ™»eo«- everyreaderof bo„lc,of,rav ; a' " '" ''W'^dolphia, and »™e,.tlea„t, „i.,, G,>a,.d CoLo rT" ""'■^"'^ ft'-iliar, by ''"■xiers of the now worM ItH ' "'"?'' '" ""'"y »"« of the md ornaments of the P.,- • " ''"P""'"" •■" beauty the nride M-xlelaioe, to „hich h! ™:/™'«™*. •■'o ch'.h oft were fashioned after the ,,'/'" """" ««'^'"Hanoe, for both of the A„.erica„ b„ndi„; ; e 'r' Tf- ^"' '"^ ™"- ■ng Bbeen „f „hich, affect the , r ' ' """*' "'» ''■■>^^1- der eo,„e,y bni,di„„ Us .^JZ^^C T"' l-T '^^"' ^»"- . oble ped™,ente, its rich corniL " ,' t "'''"' ™''""°'' ito struoted of the eostliest m„bir "'"'"'™ ■■''0*'. »« con- -lavished a„ .heir reZ^; ^ "f ;-.'* and geni; o'^ '"eplien Grard— »,. <■ i . -^ "e founder of "■^ny „en who have risen to '"""''''' ""S"', «nd iit„ -"'"f life, had a sev^ ,tl7'" T ''" •"■"-' every I'r, »-' of his career, B 't"t "" '"T"" "'» -»--- "»f "hen he had once suoeeeded n ?^" "" "'""^ ""'orious, :'"■ '".''^Si". he „ade such st 1?"'™? " ™"" f"»r.— Debtor. E J57— Errors Excepted. E(&0 ^—Errors and Omissions Excepted. f.o.h. — Free on Board. o ■^f m ':t U 57 //>.«. — Free of Particular Average. Inst. — Instant: Present Month. Proxo. — Proximo : Next Month. Ult — Uhimo: Last Month. dfd — Days after Date. mfd — Months after Date. dfs — Days after Sight. mjs — Months after Sight. mo — Month. ofa — On Account of. ofo — Per cent. @ — At to. * 'f— Per. BIL—B\\\ of Lading. L/C — Letter of Credit. L.s.d. — LibroD (pounds) ; Solidi (shillings) ; Denarii (pence). $ — Dollars . Ahstract — An abridgement or epitome of an entire deed, document, or book. Acceptance of a Bill — Acceptor : The person on whom a Bill is drawn, writing his name across the face of it, whereby he engages to fulfil its demands, that is, to pay it when due to the order of the person named. Accommodation Bill. — A Bill not representing any trade transactions, but merely concocted between two or more persons, with a view to its being discounted for the temporary acconnno- dation of either the drawer, acceptor, or indorsers, or frequently for all, — the several parties agreeing to provide the acceptor, at or previous to its due date, with the portion for which they re- ceived the discounter's money. Account. — A Statement of the sums due by one person to another, either for goods, or originating out of any mutual trans- actions. o o o .■1. ■ -<' irf /4 mi o 58 vlc<'OH?i^ Current. — A Statement of transactions between two parties diirinji; a certain period, drawn out in debtor and creditor form, and in the order of tlieir dates. Accounts Current are frcfjuently made up witli interest, chtu;j;ed or allowed on each item, and are, in either case, balanced to a point. It is customary with merchants, brokers and agents, to render an Account Current on the termination of any sidventure, or series of transactions, and at stated periods. Account Stih's. — A separate account rendered to the mer- chant by his broker, showing the weights or quantities of each parcel of goods sold, with the prices obtained, and the net result, after deduction of all expenses atten'ding the sale. Also, a simi- lar {U?count rendered by the merchant to the consignor of goods, showing the net proceeds of each consignment, after deduction of freight, connnission, &c. Acquittance. — A discharge in writing, for money, debt, or liability . Acts of Bankruptcy, — Certain evasive or fraudulent acts of traders, legally held to make them amenable to the Bankruptcy Laws. Actuari/. — The officer of a Life Assurance Company, whose duty it is to make the necessary computations required in the business, and generally to advise on all questions pertaining to the statistics and finance of the subject of Life Assurance. Adjustment of an Ai^vonnt. — Agreeing or settling the parti- culars. Ad VaJoreni Duty. — Duty levied on the value, and not on " the quantity of articles. Advances. — Payments made by merchants and others, in an- ticipation of the proceeds of the property entrusted to them for sale. A term frequently applied to loans of money. Adventure. — A mercantile speculation ; u«ually applied to all shipments of goods to foreign markets on the merchant's own account. it o wm\ ® o o o etween two id creditor urrent arc on each customary it Current nsactions, the mer- I of each et result, >j a sinii- >f goods, iction of debt , or ! acts of truptcy whose in the to the parti- ot on" 1 aif- ifbr '■ to >wn I 59 Advice. — Information by letter — commercial reports and intelligence conveyed by letter. j\ ijfid'ivlf. — A declaration in writing, upon o»i\\. Agent. — A person authorized to transact business lor another, contracts and arrangements made by him, are binding on his em- ployer or principal, and he is subject to considerable risk, if he fail in correctly exercising, according to connuon usage, the authority delegated to him. Agio. — The difference in value or premium of exchange be- tween metallic and paper money, or between different descriptions of metallic money ; usually connected with continental rates of exchange. Arbitration, — The adjustment of disputed matters by the decision of one or more neutral persons, called arbitrators, who are nominated by authority, or by those concerned. Arhitration of Exchanges. — A computation of the pro- portional rate between two places, through intermediate places, for the purpose of ascertaining whether direct or indirect drafts or remittances are the most advantageous. When one intermediate place only is concerned, it is termed Simple Avbitr.-ition : — when more, Compound Arbitration. Asset.s. — A general tertn for cash, property, and dependencies, in contradistinction to liabilities. ^ "^ Assigme. — One to whom an assignment is made. I« Bank- ruptcy, an official assignee is appointed by the Court to take charge of the bankrupt's e»tate ; ard a trade assignee, chosen by the creditor from amongst themselvesj, assist on behalf of the interests of the whole body. Assignment. — The at't of appointing another to exercise control over certain property, or transferring property by deed of assignment. Attorney (Pouter of.) — A document conveying to others the o o o o o ^o o o o m • •■'!! I ' 'y; O o of i!s^ O 60 authority of persons to nign ov act for them, cither in special cases, or unreservctlly. Audit. — A scrutiny of accounts and vouchers, by duly authorised persons called auditors. Award. — The decision in a case of arbitration. Bailment. — A delivery of floods in trust, on the under- standing that they shall be re-delivered, as soon as the time or purpose for which they were bailed shall liave elapsed or been accomplished. Balance. — In accounts, the difference required to equalise both Dr. and Cr. sides. Balance of Trade. — The diiference in value between the exports and imports of a country, which in a great measure affects the rates of exchange. Balance Sheet. — A statement of the assets and liabilities of a trading concern, the balance of e4tch open account in the ledger being placed respectively under one or other of these heads. Bale. — A pack or parool of merchandise in wrappers of canvas, tar pauling, &c., or simply bound up Banker. — A licensed dealer in money, who grants loans, discounts bills, and receives deposits at interest ; he also receives the deposits of others for their safe custody, acts as an agent in their payments and receipts, and facilitates the remittances of money from one place to another. fT) Bankrupt, — A trader unable to meet his eng.igementK, who, by his own acts of those of his creditors, becomes amejiable U> tlw o bankruptcy lars, and h so announced. Barter, — The exchaage of one kind of oanrmodity for another without the aid of money. Bill of Entry. — A form of entry or schedule of goods entered at tiie custom house. , ^, o o o o o o m O ® o ©© o ® © special by duJy under- time or or been •lualiso en the affects ties of ledger >rs of cans, eives t in 8 of 3 jrt t}ie o® 'or I ds ^ O o 1 ® 3 1° "^ Ho 61 Bill — Hill of Exchange. — The instrument by which mone- tary transactions are conducted in various parts of the world — tlie expressed order of a creditor upon a debtor being avaihible by transfer from hand to hand, us a substitute for the transmission of specie backwards and forwards ; such transfer likewise enabling a creditor to avail himself of a dependency that would otherwise be lying dormant. It is a written order by one person (the drawer) upon another (the drawee) to pay a certain sum of money at a particular time to the order of a person named (the pay6e). The person accepting completes the instrument, and is termed the acceptor ; and the one into whose hands it may come, either direct or by transfer, the holder. It may be transferred an indefinitenumber of times by indorsement — the holder, by writing his name on the l)ack becoming an indorscr, and the person to whom he indorses it as payable, an indorsee. Bill of Parcels, — A bill or specification of goods sold. The term i» falling into disuse — invoice, account, or bill, being gener- ally adopted in its stead. Bill of Sale. — A contract conveying to others any specified interest or right a person has in goods, chattels, ships, &c. Board. — The directors or managers of a public institution or compauy, in their collective capacity. Barcmif in France is an equivalent tevm. Bona Fide. — Two Latin words, which signify in good faith. An expression used to denote that anything is done without fraud or deceit. o Bomi. — A written instrument, by which a person binds him- self to pay money at a cert4tin time, or under certain circum- stances. ' Bonded Goods. — Goods in bond are those liable to duty, and stored in certain licensed or bonded warehouses, after bond has been given on behalf of the owners of the goods, for the payment of sueh on their removal for consumption. o u '"^ ... i.|: Ml' o 62 Hook DcbtH. — Amounts Htandiii},; in the books of triiders as duo to them, which are coniiuonly chissitied uh good, doubtful, or had, Brokci'dge. — Tiic per centtigc or consideration charged by brokers on effecting their bargains. Broken, in commerce, are persons engaged as middle-men, to negotiate bargains bctweeir buyers and sellers. Sonio are licensed by public authority and give security for the faithful performance of their duties. They are, strictly speaking, precluded from trading themselves. The principal are: —Produce Brokers, Bill Brokers, Stock Brokers, Ship Brokers, and Insurance Brokers. Brokers' Contracts — Notes signed by Brokers, and forwarded to their principals, immediately on the completion of purchases on sales, the goods arc described, and terms and conditions stated. Bullion. — Uncoined gold or silver, in bars or in the mass. It is a term, however, commonly used to denote these metals both in a coined and uncoined state. C(fj)ltal — The original sum of money embarked in a business or public company, as it may stand affected by subsequent gains or losses. Cargo. — A collective term for the merchandise on board a vessel. Ship-owners or charterers having a lien upon each portion of a cargo for its respective amount of freight. It is usual to find the cargo stopped for freight, when payable at the port of destination. o Cash Account. — An account in which nothing but cash trans- actions arc recorded. o Cash-Book.—ln book-keeping, the book in which all cash receipts and payments are recorded in a Dr. and Cr. form. It ia the custom in large establishments to have subsidiary books, as the Petty Cash Book, and Bill Book ; also a rough Cash Book o ■^ trnders a,s iiht/iil, or Jir^;cd by e-inon, to lict'iLsed ) nil a nee d iVoiii ers, Bill okei-H. •warded iJition.s ass. It Is both it by a^ notary, f» a proof o| the el*im hittijjg b#en dul j m*dfe ^ ° O^m Aocotifit'—^ ^^ouut in 0r. *od C^. ibrffl, ^wiiig ® alt open tr^sflc'^oii» fcfttwwi t'vo parti**;,, settiag down th* amounts of thos& that are determined, but not ftt«tur€«3, i0ii tetimating the out-turn of those still p tc«ording fe) ^Mr fixed stftpdu-d^ weight ^d pui^lfi ® ^ ® / *c -^ ■; ■® ® ']^m^sMp.-~Th& combinition of fcwo or mere indhidu^ ® ® @ &% @ ® ® o n &v3 O O^ "0 o o« t..J ® @ o ® Q ©© 'd ® © o ©© O Q 72 © © l.'O tot the fur|)Ose of businoss m common, etch deriving a share oTc tne pirofits, or bearing a corresponding share of the losses arising fVoimcit. The term, is generi^ly implied to tbfts* associations in whishj the partnei'S peiwontjiy direct the busineaa, those of n more^ extensive chiwactier, oonducti^d by dic^cturv «ad Olk^er ^pCNl).etweeci tfiQ«e iRtercsW, i& pivti<9if«.iion in undtrlMJn proj^'^ «ipd lossofi, m re^^dft tiiiird p^tiiee, is si^ment ^Hiakt ^OFparti^p^ tors ]}fib\e 1p 1di^<(K, thui^^ s$ c\vrk;, B^pulatin|l; Jfft f^ l^^e of ilt^ p^fits of « bii^aow, "^ eOnSid«r%y[on t^ his S^rmc«6, b<^ll^ ' CO • 1 O 9 o='. O4.,-,0.., o It ® 4« respj^ibl^ to ^iri pajriDtBoW % p£fftn§r. The actor twti p#r|nw jp^^indiqg upon @i» otSbeff, jJroviiSed it)1)ei'iii ^4 ordtnt^ <^tiWfi oi tiie bs^ness of ^» ^2B. "iSe^rito WwyuHB^ Ifcoiigh in^itHtf'y ' way desir^^lt'i^ n&ie%enti«l ^ oij)» formWon ^ ftpri*^^ ^(^ 'n«w1i|p.' , ' '-'' ° "'' "' ^ .^ «. o ® S» d) ® ^ ^^i^%90l9%.--4''bgokpi«^|is^ between 'to^lbiSS^^ ^Mf qnptBBiert, wSiioho reoc^c^Allj^m^te f«d rece^)^.° f%ig' #ritAii, up» by ^e b«krefiraired, lafl is UBaalkr" bal^Qced to % poirijt 08ino8^. ° %^ ® ® ' Jl?^ q9ii\fi9o%,-o-tn Boo%-B#fling, «1b8ok ^ed^in lar^* ait^h]i0h"m«ii^ ae's|i'fM}3i3li^y> tfae'^^fi l^oj^. "" l\i ^^ no-^^ qiliwrf^H «d receivedF; beftfw"«b i«,rWn fix(^'&ou|bt?s% h, e ° ® ® ®® ■.a ® ® JP/c&itft-— 2^ dferade term, comprfth^Ming "fixedT^m^chii^nery, ^Ta®^^' or^'^^*Wl'J»ii*^ f@»c^ryiitg on^a»bu^m^i -^ ® ° " 'o° °. o°oo ° oc^ oora®0 J?o»^^°fix«je[°^*|i^ pjsd, upon'i^feia^ ^i]#, jm^jEKDing Swe^ wilh o°^?) p¥a° i]g)on otheiSl., i |ieir mayki&te W^5 j^© Jdditiqn^ be (^edo^e preiamm upc^ © 0„ O© ""o « o °» Co o o £0 9 © o o o C ■ - f.e o c-.L 'J © © o o o O O " © eg o c-^ Cg &0' f. SI ® CO J> r^ l^c (^m'm.—A list or onumerfttiou oKari(IU^i«ilincs of cointHerce^ wiUi Uie mwfeet price of each.*'^ i 3 "^ FHncipai, — la corattiercifd tr*ns«wtions, sipifics the r^pop- s|bl» person. It f)im <^pliet /wlriMl''ice 1iiciS«l& (tuot^j^'ong^ llo.l^. (fror^oH fetftlrd* O S) ® <6 @ o ® ® Klc4^|l--|LU %Aliewl«%R9Bl iS^^ITVi^ o^^a^fe rcc#iv»i % QlrtflJb sum of ttoi)^i¥c§S) a ^sonb n^e^. JS> mty be #tthfr % votlchw of Vd(ibfedi8(jh£B^Qft, (a* df 9^ incurggi. ® „ ° Um^ii^p^~-%tifm erf" ai«1ie?°o«r l^i Q^ «xch%i^, sent froffl one persoa V) IftosfleF. • • a?® o -^ o -^ o ® °J^es$^e.m~A fsndosl^ imde for ^f purpose of meeting awy @>x'Sr{^rdin|B^ (Si9a^8genci(^s, ^hioh^aay ari^e. ® * o® g'3 O (#?#.— /|i"%aiiikiu§, '^ «aount of {^ui8ul<1tpd profit appli- o o ^e|2#W4°— ^° ^^^ l|q)lW to^«ty°jtfiVQl»ndiiie, og. bills of excS^3(^, puf<^j«led ^ « anejsgt of reti:@:ning % |)l*ceeds of co% sipm^fe^ rec6!v«| ; ^j ^e f^iount of « fi-ad^s' s^m© g*^' "^l ® /Sf^f>&i^-A small pc^tion obttaned from the bulk of^ ^y^ ar'acle of merch^4ise, f erxring aSba i^e^imen of th©. whole. o c o s % o o e • Oo 9© oO (3 o ea o o »• 9 O 74 ® ® moaey or property of t»^ Wsd, such w, tills of eachwigo, yi%^ rante, ,tfeecls, bill* «f ji'^^, F^l**^ ^ iMur«i<»> l»t»i^» •od ® bonds. ' . • (S „ it) , g * . * - Set0.-A wtatoii'-clirtiB l^^jWon fWftWI »dQp(|^ «|»ad»; Ui^ iUHi du» \>y 0B» op(»wy[l|| W f t=) ^ "^ • we o ® m *® ®' ® ® Stm.iard.--A fixW or °«ete«lin#a pc«r^' \Jf '^rOi «irMI| ^ , things &re ac^u^byk, «i a» ^Mldlsd^ of niltff^ iilteli!|>) «>lMiV* « Staple.- A ehief ati'tiijle of a QOuntry> PTOductieii (\v OBmi^^ as tea, tli^x stafie j^-tieife oJoQMua^j^tooti the S**^ oariak^* of ^"^ Tdnited Stati3s, or cc^JiJa iron,',^3d maaiak^ 'ur 5, ':e^L(plc3i3®k li " a® ® ' 4) ® © O © (ii Q; ® ©® &•» ?i ® (S (?' 76 ® ® ® # ® ® ® 9Mfk J?»o&— Ift b(K)k-fceepkig, the "book wmd by dealers f<»v Ibo poriodical 4mjy ffkiventories and vaiuationM Ot' the ,.?io^ Uwy mt^r hATe cii hand at the time oi' W(in|$ stocV. iS^iMi^iM o/P afim»9a§i Md of ftilmilift if** oft^^elivaoMr, ihiji) > ® ^« J!I^Mll2r.-~i4 pf«0h^ ^ W who]««f lk»iiii» MA |b£Wufj%ct«r(H-s to QiwiffEss for orders, eolkct Hi/mey, aiid repr#s»tl tfi«r !S(iir«M'» »lr«^ from th# oitobMjsbmentw. *^ ® J?5^e^.-An ^loWfwic»of 4. lbs. on •?#»•>• 104 11»®©I WWt^ aiFJ^d'^ofm'^«Jl e«)h p3li«y ^•J . ] John Teinpleton, New York. ' To 2n yds Bliick Silk,@ 82 i 40- u 12 " 15 " Velvet, Linen, @S4. Wrapper and Packing, Commission 6 $ i 40 4S L5 1 3 1 107 You write John Templeton's name in a page of the Ledger, and post the entry as follows:— Di John Templeton, New Y'^ork. Cr. 186n Jan. To Goods, a c 1 • 1 lot c r 82 The figure 1 at the margin of the entry in the Day-Book, indicates the page in the Ledger to which it is poste*. POSTING THE INVOICE-BOOK. The Invoice-Book is posted in the same way as the Day-Book, ' each entry to its proper account in the Ledger, all the entries are posted to the Or. of the different persons, using the words '' By Goods" suppose the first entry in the Invoice-Book to be :~ I JANUARY 1st, 1865. 7 James Stewart & Co., Leeds. By 50 yards Black Cloth, @ S3 "20 " Brown do (cb, $2 150 40 • .■ Q $190 POSTING THE CASH-BOOK. Tl "' entries on the received side of the Cash-Book, are posted to the Cr. of the various persons, from whom or the transactions on account of which, the cash has been received ; and t'le euiries, on the paid side, to the Dr. of the persons, to whom or the transactions on account of which the cash has been received. In the following example, the figures in the margin indicate the pages in thj Ledger to which the entries have been posted. o o ° y «> ! © (5® O O ® ® ® e ® . ® ^ASH REC©IVEa>. —--__...*_* ,fe^.._. . • . iA. ® 14 4 l|y65 Jan. 1 © :i) @ • •• Thomas Brown — Cash at coujtjnencenient.... This is posted to the Cr. of an accovait to be opened under your ijj) own name, using the words " By Caih." ' , " @ ® « James Young:. You have got money from James Young ; he is therefore your Cre- ditor for ^\Q (Hjoney, 1*511 the sani'©; principle that he is your Ci editor when you got ^oodsjfroni hiui. 00 c 50t*0 12) 14 o o o o Union Bank. This Ent% is posted to the Cr. of the Bank. 20 i^oods — Cash Sales Th^ various entries for Cash Sales are at the end of the month, notoil on a piece of pap^i^, and the amount posted to the credit of an j»ccount, to be opened under the head 0^' Goods. - 00 ■ i 96 400 o 20 ® o e » n; 8„^ 00 f A^H PAID. o o o o © 12 1865 Jau. o 1 Union Bank. s 12 o 20 I 13 o o 25 Th% Entry is posted to the Dr. of the Bank, using the words " To Cash." Shop Furniture — o John Reid's Account. e o ^ . o o Trade Expenjii — ° J. Smith's sahiry Carriages !S o o o 4500 Rent 0....O. o T&ese and all similar Entries for the exp^3se'?>f the Business are, at the end of ^he month, noted on a piege 0^ l^pei", ©ftd the amount pos^l to <% a©30unt, 't^o be opened under the head ©f Ti^Sde Expenses, usinji' the word; o I t i i 30 80 o o o o o oo '^K'S ^ o"o •• • % •• O o o oo • • 9 9 • • o e «• - ,• "" .:^ii^V^'««&V^°^J?*'^ ^^ whobi'the ItAll \m be«n° ?5 o* • • .gof. J. gotx J „0 « T dye. c^^hBook o •J >i;nilr. 1865 ^Jao. 1. vasBSi 9 18^35 I i8°ea Feb. 4 Jan. 10 • o "O o O 9 o o " 1*116° Qftfery tl pOltod to) the ^Cr. cf Ben Ifeash, using the wordoo J®% M due 4^ Befc. 1200."^ -^ho, pjige df°the Lodger to whicb fcl^ entgyi(Sij)Q^(l kfe fe es^ of Q)©€S"y W^ or monfii, or ^y o^q*- st j]@i'iod° ^feer Cl°^e b©o^ hviQ been posted, °eq;(ii ea^yt?fc tl@° Ledger shouM be wmpiwed with the ORigin^ en£r| ig '^e b©ok fgoiS whiizfi ifc is teken^ to see^ ebat ibiias jbeen pt^tftSi coBrectlV. ^hen 'Qie ;^age ai?:^igned to any account ^ the Ledger iifiUed flp^ ^€ Ifee rao?iey cokn.i>5, ^ fhe bji)&tom, %i^ &'ans«fer tb^ suips ts % ne\5 pa^g©, wl&iere fh? person^ nanie must be wry ten i«s bofope. 1^ o o • o o o o ?tf O o b • • A.. • • #. ie> hi \ '?•••!? O o • V •»» ^f pofrttAon flf S821W81I1; «ti JtfUK poiJMJiitt to Wi (Rttdii, Qi«ry ft** ' "^«d t)#|)t»/* t8 Siin twoflo* #4 tJi^e Wina&a;%$ til ©tee/ 'M fpom ^e parties. 1t^&, of U^tild QOM^f'^eiBQe ia vfJU-b or^tc tik^ accoauts fU'e posi6»3 JH^ the tf^ef j Hbr oonf^efKi^ Kew»f«i-,Ji is de^rable fo keep tfce D^. aocquJIi^j, Jjiiag tiioiB pojked j^^ g||^ Hiy-Bosk, in one^portien q^\Jio ll«9|5u« *nd thft Pt. AftWanfR beijig those poS>feed ^'oHi t:b® fa^oi^i-Bpakj tB a"Hp^er por^^, o 'Wli^n liie Cr. agjcouiiW JQ-e nflmereiis,, iiej? la^^ fee fe^lj^i^ % sepSJate Ledger. ° o » ° * O", ^0 o o o O O 00 §> o 00 r ° i o O 4*0 ascfev^ia afc 1b%6>©iM oftJh^ yeij*, ^r fifc^y glbtr tiKi-s th^fe ° ni„%y |e 8io,f(E Qonv^iiea'^, wtat ig the mm tefej ef tfee vai-ieuf o%mvin\ owisf Ij 55'ou, afid owing %) yoti^ ife 48 mc^smiy %o tM np bd|h ^d^ df alt the UBtfetUtd ftaoouOliS m the IrtdgiTj aid t@ e«t^fe b<9w ®ach Iff tfc^Pr. ©i Oe. bftlAooi ctf eaaho I'-his if ©iJijeC ■^^ |ial^@iig lfee° Ledjir,*' or oJeaiagj tba g'^ewinte m tbt Lfdjir. WWi it is f'.utid thol/fe(|^ fiSes of m *caoijnl aa» e^tt%l, vsiiMit 0^, m sallied, nh m^ time wMeti niltiae i^se JtiHSit f^oh iqfStlira ^e tjyo sid^. ° . ^ „ ° • cfiter the differea©©" balajic® g o o •• a 88 forward,"oth«» rule off tJie acr.i«*©fe»lftMced, and enH'r below on the Dr. side, the Dr. balance, uniiit: the word* " To balance.'' JuO o •i 18Uo Jan.° Feb. .1 9 20 To G(%is To do... To ^o... i^' >r>- O 15 WO 50 IG5 o«< y 1SG5 Jan. 20 By Cai-h.... 30| " do ABal. forward i^. li '2h •2^1 30 115 ir>5 '^Vlifen , enter tlio tyfferenc(fc QSotfee Dr. side using the word9" To bal>eioe feii'ward,''' t^en rule off Hie account as baloisced, an^' enter b^ow oi^jthe Ofe side, the O^. biiten©?, using tii^ words " To balance.'' j |:XAMPL°]:: Thomaso®ion/Sbn. o o o o I e AaC^^O^ "MM Bel).!.20|Tobiirduc.y3 ! ! Bel. forward !400 -. ^ c o o ^cSj ,^^ ui- c450 !F6b.<528 |Mtr.|l9 J f -!! » Bj7 ieed.s. 4 B^? do.... /)By l^lai^cJ ^8 !fof ,250^ ^2^01 ,0 When thore aro^cniriesononly on°e si4'i>6^'<2n {be«ouob say the Dr. s'ifie is a^decl in in<^ ; the o^qx °gi€e i^ Jt^ded in ^endl and thenodeducbed in°thc earn© temporary way from the Dr. side^ to show the b^ance> ^he "babnce iS pejrman@ntl;P cfg-riei forward, Qnd ^o ma^°ei'rofH' tl'ie original itsst, to allow for teiy and ^^ag. „ o o o o o ° ° ° o o O To {{jice^ain the state or afiaiig at tl^ ond wH^Qy^ifl^^ sr €t^ an^yotJier e<5nveniefit time, it is^necestjsary to di^xv out a featengg shoot. That i^ a statonient showing Jjow iftii(dli is owing to y@u sai^oby you; also i^e Jtmouiit of cash, i>ills and 9toeJk og lignd, i\^\ vf^i^ is fche balance if any, in your favor." To ^o ^is, oi©ii an ai^caunein tii@) Lc^ge^, under thg)]iead ©f balance SliCiet;- an'3 ° o o C mQke the following, tffitrios on tJie Dr. and Cr. Siics. = 6n i'?iE l)g. Sy)E. — Tfee amount of accounts owffig by you. as asgertsiined from the Ledger, "deducting %e )^robable aBioj,i(iife df discount you wilf be allo.^ed at settlement^ and tJie hills" owing ^y y0i ^ aseertaineH froiQ \'oar bill-book. o -0 o §N THE ^ Sfl)!?, — The araoufit on hand of<^odg)for sale Co o =® o o o 8o o3. ^, oo s O oo o^a> 00 ° % ,oo oC -J o I Q> oCPo ( ° SoO % y8«? oOo%„ * O " o P O oO O o O p 0°^%" V c? ^o=r"^< OO^C % „ o a "«; 8"^ 8„ ■f^° o O °<3 o <^, %0 ocgS 8 ^ J^^ w,^ IMAGE EVALUATION TEST TARGET (MT-3) ^^'"^.^^ 1.0 1.1 ■" Hi 12.2 £ US 12.0 11-25 III 1.4 IU4 Hiotographic Sciences Corporation 23 WIST MAIN STRin WIBSTER,N.Y. 14SM (716)t72-4S03 90 as per Stock Book. The value of shop furniture or other perma- nent stock as per Stock-Book. The amount of accounts owing to you as per Ledger, deducting tlie discount to be allowed at settlement. The amount of bills owing to you as per Bill-Book. The amount of Cash in hand and in Bank. Then add up the two sides and the difference between them will show the amount of your capital at the time of balancing. This sum is filled into the Dr. side as net capital, and the account is ruled off as balanced. Dr. EXAMPLE. Balance Sheet of J. Brooks, Cr. 1865 To 1865 Dec. 31 Accounts due 1 Dec. 31 Goods on hand. 2000: j by J. Brooks 900 Shop Furniture 300' iBills due by 1 Accounts due J. lirooka... . 8oo; to.!. Brooks. .. lOOOi 1 1 Balance Net.* _ 1 ' Bills due to J.B 800! i Capital 2830 Caah in Bank.. 12 400 1 I , Cash in hand. . 1 i 30 1 ! 1 i i 4530; '. 1 4530 ! i i _ ' -. ' 1 ! PROFIT. To ascertain the profits, if any that has been gained during the year, open an account under the hesd of " profit" or " profit and loss" and enter as follows : — I ON THE DR. SIDE. The amount of your capital on 1st January when commencing being the cash embarked by you, in the business, as ascertained from your account in the Ledger, or from the last balance sheet. Interest at current rate on the amount of your capital. : 91 ON THE CR. SI DR. Tlie amount of your capital at the time of stock-taking as shown in the balance sheet. The amount of cash taken by you for your own use during the year, as ascertained from your account in the Ledger. Then add up the two sides, and if the Cr. amounts IS more than the Dr. side the difference is the profit for the year, and is carried to the Cr. of your account as " profit." The interest is also carried to the Cr. of your account. If the Dr. side is the greater of the two, the difference is the los«, and is carried to the Dr. of your account as " loss." Dr. EXAMPLE. Profit (or profit and loss.) Cr. Jan, 1 Dec. 31 To capital i this date. U'oOOOi Interest 7 ' 1865 Dec. 31 f^ct...l4 Profit.... <* 350! 1450i' 16800 By Capital at this date.' 15 Cash taken for personal use 14 6400' 400J 68001 The net profit is shown above after paying trade expenses &c. By adding to the net profit the amount of expenses and bad debts, the gross profit will be ascertained. Thus : Xet Profit $1450 Irade Expenses 300 Bad Debts 59 Cross Profits ^igOO PRIVATE ACCOUNT. Your own private account for cash paid into, or drawn from, the business, is kept and balanced in the following way. On the 92 Dr. side are entered : — the various sums you draw from the busiuess on your own personal account. On the Or. side are entered. The sum or capital you em- barked in the business, at the commencement, and any sums you may pay into the business afterwards. Interest at current rate on your capital. The profit, if any gained during the year or other given time. If instead of a profit there has been a loss during the year, the loss is carried to the Dr. of your account. • EXAMPLE. Dr. Thomas Brown. Cr. 1SG5 I Jan. 30|To Cash Mar. 6 I To do June 30 To do Aug. Dec. 9 1 31 To do To do Balance ward 5000 350 1450 6800' The Balance sheet, the Profit and Loss sheet, and the private account, are usually kept in a separate Ledger termed " Private Ledger." ACCOUNT FOR GOODS BOUGHT AND SOLD. This is an account which, strictly speaking, belongs not to single but Lo double entry. As it is desirable, however, in every business to know the amount of goods bought and sold, during the year, or any other given time on account for " goods," can be kept in this system. Double entry to the extent required for this account is quite simple and may be advantageously employed in any retail system with little additional trouble. See following directions : — "(P*^" <.. ;he m- ou on le. )£8 te te 93 DIRECTIONS. Day-Book.— Add up the sums total in the outer columns, Ht the end of every month, and post the amounts, being the total of goods sold on credit, to the Cr. of an account to be opened under the head of " goods." Invoice-Book. — Add up the sums total in the outer columns, at the end of every month, and post the amounts, being the total of goods bought on credit to the Dr. of the goods account. Cash-Boo K. — Add up, on a piece of paper at the end of every month, the entries for cash sales and purchases, and post the amounts being the sums total for the month, to the Dr. and Cr. of the " goods" account. The whole amount of goods sold during any given time is in this way ascertained. Profit. — The profit may be ascertained from this account, as follows : — Add up the discount columns on both sides of the Cash-Book, at the end of every month, and deduct the amount of discount on the received side, from the Cr. and on the paid side, from the Dr. of the "Goods" account. Deduct also, at the time of balancing your affairs, the estimated discount on unsettled accounts due to you, from the Cr. side, and on those due by you, from the Dr. side of the " goods" account, enter on the Dr. side of the "goods" account, the amount of trade expenses and bud debts ; and on the credit side, the amount of goods on hand. — Then add up both sides of the account, and if the credit side be the greater of the two, the difference is the profit gained (inclu- ding interest on capital). If the debtor side is the greater of the two the difference is the loss. By ascertaining the profit in this way. the accuracy of the other account in the Ledger for profit, and also the accuracy of the posting, will be tested in the result of both accounts, will be the same, if no errors have been com- mitted.