S37& 
 
 lb 113 
 
 ov.\/,! ; 
 
 V 
 
 ss 
 
 How Business is Done. 
 
 o 
 
 UJ 
 
 
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A TREATISE ON 
 
 BUSINESS PRACTICE 
 
 OR 
 
 HOW BUSINESS IS DONE 
 
 DESIGNED AS A TEXT-BOOK IN ALL SCHOOLS WHERE ANY IN- 
 
 STRUCTION FOR BUSINESS LIFE IS GIVEN, 
 
 AND AS A 
 
 BOOK OF REFERENCE FOR ALL CLASSES, 
 
 J. A. LYONS fc? COMPANY 
 CHICAGO NEW YORK 
 
I 
 
 Copyrighted by 
 
 O. M. POWERS. 
 
 1896. 
 
PREFACE. 
 
 THE plan of this book has been upon the author's mind for Several years. Much of the 
 information contained herein, has not heretofore been accessible, so far as he knows, in any 
 form, yet he has been and still is of the opinion, that it is all matter with which the young person 
 about to enter the office should be familiar. The business colleges have been doing much for 
 such young people, but their efforts have largely been directed along the line of accounts, with 
 such incidental training in business methods as was possible. This book deals with the transac- 
 tion of business itself, and for that reason should be of interest to all, as it is the primary thing 
 and the record of the transaction secondary. Every teacher knows the difficulty he has in direct- 
 ing the attention of his pupils to the " little things," and yet the knowledge of the "little things" 
 is what makes their advent to an office easy. This book is a treatment on the " little things." 
 
 The author claims that there is nothing in this book which should not be familiar to every 
 such person. There are also many facts contained herein which cannot, from the nature of 
 things, be incorporated in a series of transactions intended to illustrate business practice. These 
 things the instructor may intend to point out incidentally, but without some regular time being 
 set apart for them, and some previous study of the question being required, the opportunity will 
 often pass and the student go uninstructed. 
 
 Further experience may suggest some changes in the plan, and the addition of other matter, 
 or a more extended treatment of some topics treated herein. To this end, criticisms and suggest- 
 ions are solicited, that future editions may be better suited to the wants of all. 
 
 The author takes this opportunity of acknowledging his obligation to the numerous friends, 
 who were so kind in giving him information peculiarly within their knowledge. Of the many on 
 whom he found it necessary to call, not one but received him most cordially, and if necessary, 
 went to personal inconvenience to comply with his request for forms and information. If there 
 was no other satisfaction in the preparation of this book than the author has had in his associa- 
 tion with business men, in their quick appreciation of his wants, and in their cordial sympathy 
 
 with his object, it would be sufficient. 
 
 J. A. h. 
 Chicago, December 1, 1896. 
 
 54! 748 
 
BUSINESS PRACTICE 
 
 OR 
 
 HOW BUSINESS IS DONE. 
 
 INSOLVENCY technically exists when one's liabilities exceed his resources but it does not necessarily follow 
 in this case that business must be suspended. If his credit be good he may still continue and in the end may 
 again become solvent. 
 Sometimes one is forced into insolvency when his resources far exceed his liabilities. This usually occurs 
 in a depression or stagnation of business when one or more creditors demand an immediate settlement of their 
 claims in cash, while most of his resources consists of other forms of property that are not readily convertible into 
 cash. Thus he may have no cash but a large stock of merchandise or a large amount of notes and these the 
 banks refuse to accept as collateral security. In this case nothing remains but to make an assignment of all 
 property to a third person, who will convert the assets into cash as rapidly as possible with as little sacrifice as 
 possible, and from this fund pay the creditors. If the assets be large enough the creditors will be paid in full, if 
 not each will be paid such a percentage of his claim as the assets will justify. In any case the creditors are all 
 treated alike. But in some states the law permits the debtor at the time of the assignment to name certain 
 creditors that are to be paid in full before the remaining creditors are allowed anything. Whether preferred 
 creditors are allowed or not will be taken into account by the credit man in estimating the amount of credit to 
 which a debtor may be entitled. So a man might be granted more credit in one state than if he were in another, 
 because the laws in that state make the collection of accounts easier. The object of the assignment is that all the 
 creditors or a certain class of them may receive equal treatment. If no assignment were permitted the first 
 creditors to enforce their claims would be the first to be satisfied while others might get nothing. An assignment 
 is thus eminently the fairest to all. The conservative business man is careful to avoid investments in such 
 resources that he cannot protect claims that may be urged against him. 
 
 Goods when sold at a forced sale never bring so high a price as when disposed of at private sale. Conse- 
 quently though one may be solvent when forced to assign the forced sale may so reduce his assets as to render 
 him in fact insolvent. 
 
 WHOLESALERS AND JOBBERS. 
 
 The distinction between wholesalers and retailers is one in the size of their respective sales. A wholesaler 
 buys of importers and manufacturers, but in large quantities, and sells to retail dealers in smaller quantities. He 
 deals in regular stock, staples ; while a jobber deals in job lots. A jobber is constantly on the lookout in the mar- 
 ket for goods in his line that are "broken lots," "seconds," "off sizes," slightly soiled or remaining lots to clear up 
 the stock that can be bought at a bargain. He will sell to either the retailer or the wholesaler. Sometimes a 
 dealer may be both a wholesaler and a jobber. 
 
 An importer is one who purchases goods in a foreign country and imports them to this country for sale. 
 He may also be a wholesaler or jobber or both. 
 
 WRITTEN CONTRACTS. 
 
 The well posted business man knows that certain contracts must be iu writing in order to be valid.* Such 
 contracts when making he will not fail to commit to writing. He also knows that all contracts that are made in 
 writing are supposed to mean just what they say. That neither party will be permitted to explain orally, add 
 to, or contradict what is stated. Be careful then how all your written contracts are worded. See that they 
 exactly and fully express your meaning. 
 
 Though you are not legally required to commit a contract to writing, yet if it is long and has many details, 
 or may not be performed for a long time, it should be in writing as an act of prudence. You might be your only 
 witness to your verbal contract, and in case of your death your estate might suffer severely from your lack of 
 prudence. 
 
 When the general terms of a contract have been agreed upon, and all that remains to be done is to commit 
 it to writing which is to be done by you or the other party thereto, do not hesitate to do it either yourself or by 
 your attorney. You can of en then incorporate many details into it that will be to your advantage. You can in 
 this way often secure many minor concessions from the other party, concessions that in the end may be worth 
 much to you. 
 
 See Commercial Law page 39, also section 139. 
 
6 HOW BUSINESS IS DONE. 
 
 RECEIPTS. 
 
 The importance of taking a receipt in some form for all money paid out cannot be overestimated. It is 
 also prudent in many cases to take a receipt for personal property when delivered, and especially is this true when 
 you are only the custodian of the property and not its owner. When the receipt is for money, it should be dated 
 and the amount of money paid should be stated as well as the purpose for which it is paid, as: "on account," 
 or "in full of account," etc. 
 
 Receipt. 
 
 All receipts taken should invariably be preserved, and never destroyed, for witnesses may die or memory 
 may fail, and you or your representative may be put to much trouble and inconvenience, if not loss. 
 
 It must be remembered, however, that receipts are an exception to the rule of law stated in the previous 
 section. They may be disputed by oral evidence. 
 
 PAID NOTES AND DRAFTS. 
 
 What has been said about preserving receipts will apply equally well to your notes and acceptances which 
 you have paid. These should invariably be marked paid or cancelled by the holder of them when he receives his 
 pay, and returned to you. Do not destroy them nor mutilate them by even tearing off your signature, but file 
 them away for future reference. 
 
 Promissory Note. 
 
 
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 tA7? ^fc^^Z^^Z^ 7 
 
 '/^z£i 
 
 fasuzyU^ 
 
 , 
 
 olfc- 
 
 jpW <?</ 2t<r///v/ /- 
 
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 In case they are given for real estate, and are secured by a trust deed, the trustee will insist on seeing the 
 cancelled notes before you can secure ms reieasc. 
 
HOW HUSINESS IS DONE. 
 
 Union National Bank 
 
 CHICAGO. 
 
 DEPOSITED IB"Z" 
 
 HOW TO DEPOSIT. 
 
 Having received a proper introduction to the bank with 
 whom you wish to open an account, and having received their 
 consent to it, you are ready to make your deposit. The bank 
 will supply you with deposit tickets free of charge. First fill 
 in your name in the ticket and date it. Opposite " Currency " 
 put the amount you will deposit of it, and the same of coin. 
 Under " Checks " if a check is drawn on a city bank write the 
 name of the bank but if an out-of-town check, write the name 
 cf the city. Any other form of remittance, such as express 
 orders, should be included here and the total placed in the 
 second column, opposite the word "Checks." It is your busi- 
 ness to fill out this slip. Do not expect the bank clerk to do it. 
 As a voucher for your deposit you may get a cashier's check 
 a certificate of deposit, or a bank book. If a bank book, an 
 entry will be made of the amount of the deposit by the bank 
 official who receives your deposit, and on the left hand side ; 
 when you wish your account checked up with the bank, which 
 is usually at the end of the month, you will hand in your book 
 to the bank who will enter your checks which they have paid 
 on the right hand side, and balance the book. When your book 
 is returned to you it will contain these paid or canceled checks. 
 
 ABOUT DEPOSITING. 
 
 Bear in mind that the bank may not be as anxious for your 
 business as you may imagine. In Chicago the best banks do 
 not care to open an account with a customer unless the monthly 
 balance will average about $500. They claim that anything 
 less than that does not pay the cost of clerk hire and other expenses incidental to the care of the account. Be as 
 little trouble to the bank as possible. Always have your deposits properly and orderly arranged before presenting 
 ihem to the receiving teller. See that your figures on the deposit ticket are absolutely correct. Arrange the bills 
 all right side up, small bills on top. Separate the coin, each kind by itself, and as far as possible each denomi- 
 nation by itself. Do not deposit your snlall coins, such as pennies, nickels and dimes, until you have, say, at 
 least a dollar in nickels or fifty pennies; then roll these tightly in a package, each denomination by itself, and place 
 in ink on the wrapper the denomination, amount and your name. The teller will verify your count of these 
 coins at his leisure. 
 
 ADVANTAGES OF A BANK ACCOUNT. 
 
 There are several advantages to a business man in keeping an account with a bank : 
 
 1. The average business man cannot properly protect his funds from fire and burglars. 
 
 2. It enables him to pay his bills by check. 
 
 3. It gives him an acquaintance with a bank where he can go in time of need and secure accommodation 
 in the way of a loan. 
 
 4. It saves him the trouble of presenting all checks' and money orders that he might receive in the course 
 of business. 
 
 5. It enables him to use the bank as a means of collecting his drafts on customers. 
 
 CHECKS. 
 
 The practice many business houses have of paying all bills by check is to be earnestly recommended. The 
 check shows the date of payment, and the amount thereof, and when paid by the bank will be returned to the 
 drawer bearing the endorsement of the payee. It then operates as a receipt, and should be religiously preserved. 
 
 Another advantage in a payment by check over currency is that there is never a contention over the 
 amount paid or that a part of the payment was in a worthless or depreciated currency or coin. 
 
 Deposit your currency as it is received, and draw your checks to pay all bills that it is possible to pay in 
 this manner. Checks should never be signed, nor an endorsement made until needed. Checks should usually be 
 made payable "to order" and not "to bearer," for aside from the danger from the loss or theft of such a check 
 the payee might in some states transfer it without endorsing it, and in that case you lose its value as a receipt. 
 
 Always remember that personal checks should be presented at least on the next business day after their 
 receipt, or in case of failure of the bank you may be the loser. 
 
s 
 
 HOW BUSINESS IS DONE. 
 
 A personal check should not be sent as a remittance a long distance from home, for it is subject to a fee for 
 collection. Banks near large cities often have arrangements made by which their checks may be cashed at a 
 certain bank in the city. This is a great convenience to its customers, for its checks will then pass at par. 
 
 See page 39. 
 
 KEEPING A BANK ACCOUNT. 
 
 When a bank account is kept subject to check, it becomes important for the depositor to know the best 
 means of keeping an accurate tab on the amount he has to his credit in the bank. Some bookkeepers keep an 
 account in the ledger with the bank, debiting it for deposits and crediting it for checks. In case a bill of goods 
 is bought, and a check given in payment, the above method necessitates two entries. For this reason a large 
 number of bookkeepers prefer to treat the balance in the bank the same as cash in the drawer. This saves, as we 
 will see, one entry on the books of account. Most check books are made with two columns for dollars and 
 cents between the check and the stub. When the first deposit is made, the amount is entered by the depositor on 
 
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 the stub of his check book, and the amount placed in the money column. When the first check is drawn the 
 amount is placed in the money column, as shown in the cut, and deducted from the balance. This takes but a 
 moment's time, and the depositor has the satisfaction of knowing just what his balance is at any moment. When 
 the account is kept in this manner, a check given is the same as cash paid from the drawer. 
 
 As all the writing in the pass book is done by the bank official, it will, at first, only show the deposits 
 which will be found on the left-hand side. 
 
 Whenever he wishes, the depositor may hand in his pass book to be balanced or written up. The bank will 
 then enter on the right-hand side, all his checks paid by the bank, and inserting the balance, rule up the book. 
 Care should now be taken to see that this balance agrees with the balance shown on the stub of the check book. 
 
 If all the checks issued have been presented, these balances should agree, and if they do not, the point of 
 difference should be ascertained at once. When the bank returns the pass book, balanced, it also returns the 
 depositor's canceled checks. From these it can be ascertained whether all checks issued have been presented or 
 not. Those that are still outstanding should be noted, and a list of them made on the stub of the check book. 
 
HOW BUSINESS IS DONE. 
 
 -DRAWING CHECKS. 
 
 Checks of the most approved form provide for stating the amount, both in words and in figures. If these 
 do not agree the bank will pay the amount stated in words. In drawing a check be careful to write itro that it 
 cannot be easily raised. If you are careless in this regard, and the bank should pay your check which had been 
 raised, you would be the loser. In writing the amount begin back to the extreme left of 
 the line, and if the words do not completely fill the space allotted, draw a wavy line to fill out 
 the space. 
 
 There are many devices ior preventing the raising of checks and bank drafts. One is to 
 use a paper having on it fine tinted lines ; any erasure on the lines readily showing. 
 Another is a fine perforator composed of numerous dies that almost, if not quite perforate the 
 paper ; this is stamped over the amount and makes it almost impossible to change it. 
 Another is to cut out of the paper itself figures indicating the amount of the check or draft. 
 Still another method is to have printed on one end of the check a design like the cut. The 
 right hand column is units the next tens, and so on. Then, with a common punch the drawer 
 will indicate the amount of the check by punching the proper figures in the various 
 columns. 
 
 1 
 
 1 
 
 1 
 
 1 
 
 2 
 
 2 
 
 2 
 
 2 
 
 3 
 
 3 
 
 3 
 
 3 
 
 4 
 
 4 
 
 4 
 
 4 
 
 5 
 
 5 
 
 5 
 
 5 ! 
 
 6 
 
 6 
 
 6 
 
 6 
 
 7 
 
 7 
 
 7 
 
 7 
 
 8 
 
 8 
 
 8 
 
 8 
 
 9 
 
 9 
 
 9 
 
 9 
 
 
 
 
 
 
 
 
 
 STOPPING PAYMENT ON A CHECK. 
 
 A check may have been obtained from the drawer through duress or fraud, in this case the drawer may 
 notify the bank to refuse payment on the check when it is presented and the bank will be bound thereby. Only 
 the drawer of a check and not a subsequent holder can stop payment. If you are the holder of a che~k and lose 
 it, find the drawer if possible and get him to notify the bank. 
 
 CERTIFIED CHECKS. 
 
 The holder of a check may take it to the bank on which it is drawn and have it "certified" as being good. 
 The bank does this by stamping something like the following across its face: 
 
 Certified Check. 
 
 QflCAGOjLL 
 
 / 
 
 M2JLJ89t£ JPJ&A 
 
 JJhYtothec 
 
 DttnSros BB.ifCo nv-*» 
 
 'LLARS. 
 
 The bank immediately deducts the amount of the check from the drawer's account so that he cannot with- 
 draw his entire funds from the bank and leave nothing with which to meet this check. There are many reasons 
 why it is desirable to have checks certified. A bank holds for collection your note. They will not give up the 
 note until payment has been made in a form that is satisfactory. There may be so far as this bank knows no 
 funds in your bank with which to meet your check. Have your check certified and the check is then accepted 
 and your cancelled note is returned to you without hesitation. Or you receive a check for $15000 on a bank other 
 than yours. You want to use a large part of this check at once. Your bank would not feel satisfied to have you 
 deposit the check and immediately draw against it to the amount of say $10000 before it had had time to ascertain 
 whether the check were good or not. If the check were certified it would have no hesitation in doing so. 
 
10 
 
 HOW BUSINESS IS DONE. 
 
 CERTIFICATE OF DEPOSIT.- 
 
 One form of voucher given by a bank to a depositor is a certificate of deposit. It is not adapted to an 
 account that fluctuates daily for an account so evidenced cannot be checked against but when money is to be 
 drawn the certificate must be taken to the bank and either an indorsement of the payment made on it or as is 
 more commonly done the old certificate is taken up and a new one issued for the smaller amount. A certificate 
 01 deposit is negotiable and may be used the same as a bank draft. Some banks pay a low rate of interest on 
 tttoney that is left with them for a certain length of time. 
 
 Certificate of Deposit. 
 
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 Or STORM LAKE. 
 
 1111 4s,^^/Arf£/s»M/sJ^^*~J~^ 
 
 
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 pH&>- No interest after maturity. 
 
 *Z*XJ!*^S 
 
 ,ji6a c 62j&>ts 
 
 DO NOT. 
 
 Never try to hand in your deposit before those in advance of you, but wait patiently your turn. 
 
 Do not draw a check unless you have the money in bank or in your possession to deposit. Don't test the 
 courage or generosity of your bank by presenting, or allowing to be presented, your check for a larger sum than 
 your balance. 
 
 Do not draw a check and send it to a person out of the city, expecting to make it good before it can possibly 
 get back. Sometimes telegraphic advice is asked about such checks. Always consider a check paid when issued. 
 
 Do not exchange checks with anybody. It is is soon discovered by your bank. It discredits you. It is 
 called kiting. 
 
 Do not give your check to a stranger. This is an open door for fraud, and if your bank loses through you 
 it will not feel kindly to you. 
 
 Do not leave your check book exposed to the view of strangers. Such carelessness has led to forgery. 
 
 Never attempt to pay a note with an uncertified check. 
 
 Do not commit the folly of supposing that because you trust the bank with your money, the bank ought to 
 trust you by paying your overdrafts. 
 
 Do not attempt to palm off an exaggerated story on your banker as to your assets and business. Your 
 account will tell the true story. 
 
 Don't quarrel with your bank. If you are not treated well go somewhere else. Don't think it unreason- 
 able if your bank declines to discount an accommodation note. 
 
 If you want an accommodation note discounted tell your bank frankly that it is not, in their definition, a 
 business note. 
 
 If you take a note from a debtor, with au agreement, verbal or written, that it is to be renewed in whole or 
 part, and if you get that note discounted and then ask to have a new one discounted to take up the old one, tell 
 your bank all about it. 
 
 Don't commit the folly of saying that you will guarantee the payment of a note which you have already 
 endorsed. 
 
 When you have paper for collection which is payable abroad, deposit it in sufficient time for proper entry 
 and transmission to the place where it is due. 
 
HOW BUSINESS IS DONE. 
 
 U 
 
 TO BUY A BANK DRAFT. 
 
 When you wish to purchase a bank draft on, for instance, New York, fill out a requisition on a blank whicu 
 will be furs.shed you by the bank. This will be something like the following : 
 
 Requisition for Bank Draft. 
 UNION TRUSTCDMPANY. 
 
 Draft Wanted on Ntfw/rork, order of 
 
 It is in most cases preferable to have the draft drawn to your own order and then endorse it to the party to 
 whom you wish to send it, for it will then serve as a receipt. Such drafts are periodically returned to the bank 
 drawing them, and you can call there and examine it for its endorsements. 
 
 Bank Draft. 
 >oooooooooooooooooooaooooooooooooooooooo«oooooooBOOt 
 
 ENDORSEMENTS. 
 
 • 
 
 It is important that the business man should know what form of endorsement to use in a given case. 
 
 When sending a negotiable paper requiring an endorsement through the mail a full endorsement is to be 
 
 preferred to a blank one. If you expect to har/H the paper over to some person a blank endorsement will do. 
 
 If you are depositing it in a bank, the usual form is : 
 
 (New form). 
 
 For Deposit ( As this is a form in daily Pay to 
 
 ln tlie use, most firms have a rubber UNION TRUST CO. 
 
 HOME NATIONAL BANK stamp made for it. It is then ~,. T11 
 
 for credit of the work of but a moment to t_mcagO, 111. 
 
 i c \ make the endorsement.) or ormkb 
 
 (your name or firm). or order 
 
 O. M. POWERS. 
 If it is a note or draft which you wish the bank to collect endorse as follows: 
 
 Pay to 
 
 Corn Exchange Bank 
 
 or order 
 
 For Collection. 
 
 (Your name. ) 
 
 This does not transfer the title to the paper, but o lly gives power to collect it. 
 
12 
 
 HOW BUSINESS IS DONE. 
 
 ' The purport of the late decisions of the Courts is that when a draft or 
 check is endorsed for collection or for account of, the form of endorsement 
 carries notice that the party collecting is a mere agent of the endorser to 
 collect, hence the agent is under no liability to repay the amount collected 
 after he has paid the same over to his principal. 
 
 The members of the Chicago Clearing House Association have unani- 
 mously agreed that "on and after July 1st, 1896, members of this Association 
 shall not send through the Clearing House exchanges any checks, drafts, 
 notes, bills of exchange, or other items having thereon such endorsements as 
 'for collection,' or 'for account of,' or any other qualified or restrictive 
 endorsement, but that all endorsements shall be in the following form: 
 
 ' Pay to Chicago National Bank, Chicago, or order,' 
 or endorsed in blank, stamped or signed in the usual manner." 
 
 {Extract from circular letter issued by members of Chicago Clearing 
 House to their customers.) 
 
 From the above it will be seen that in Chicago paper depos- 
 ited must bear a full endorsement instead of the restrictive ones in 
 use heretofore. The fact that the Clearing house rules require this 
 of their members will naturally compel country banks to do the 
 same, especially on bank drafts. 
 
 An endorser may relieve himself from a portion of his liabil- 
 ity in making an endorsement by adding to the endorsement the 
 words " without recourse;" as: 
 
 Pay to L. Mitchell « 
 
 without recourse to me. 
 Chas. Brown. 
 
 Sign your name hi an endorsement in the same form as it 
 appears on the face. If " P. Smith," write " P. Smith;" if "Jas. 
 C. Smith," write "Jas. C. Smith." If erroneously spelled or not 
 
 written as you write it 
 Endorsement of Payment. on the face endorse both 
 
 ways, first as it is already 
 spelled or written, then 
 as it should be. 
 
 If you receive a paper 
 with a blank endorsement 
 on it you have the right 
 to insert above the name 
 the words necessary to 
 change it to an endorse- 
 ment in full, and this it 
 would be prudent to do if 
 you expect to retain it for 
 a time. 
 
 Never endorse a paper 
 until you are ready to 
 use it. 
 
 In makinsj endorse- 
 
 Endorsements. 
 
 uRzaJ j6 yyvwJk/' 
 l^iwp^itanBiisme^s^/Ieje, 
 
 for one alcarierk Zlcillo?z^, 
 
 FOR DEPOSIT 
 
 to-rfie cred.it of the 
 
 METI\OPOLlTANDUSIr/ESsCoaECE 7 
 
 ments write across the back, not lengthwise. The left hand side will be 
 the upper end of the back. When a partial payment is made on a note 
 an endorsement of the payment should be made on the back, and should 
 state the date and amount of the payment. 
 
 If the instrument is i self negotiable the endorsement need not con- 
 tain the negotiable words "or order," or "or bearer," for these will be 
 understood. Thus: "Pay to M. Foster —J. B. Lyons" is a full 
 endorsement, and not a restrictive one. 
 
 GUARANTEEING OTHERS' PAPER. 
 
 Avoid endorsing or guaranteeing paper for others. Many a one has 
 been financially ruined by being suddenly called upon to pay an obliga- 
 tion thus incurred. It is a course of action that under no circumstances 
 promises any return, and you run many chances of suffering a loss 
 thereby. What you will not do yourself you cannot consistently ask 
 
HOW BUSINESS IS DONE. 
 
 13 
 
 another to do. Therefore do not ask another to endorse or guarantee your paper, for he will then have a claim 
 on you for a like favor. So careful is the man of good business judgment to avoid the possible, yet probable, 
 consequences of guaranteeing paper for others that it is often a provision in an agreement of copartnership that 
 neither party shall endorse in his own name the paper of another and thereby indirectly endanger the solvency 
 of the firm. 
 
 Politely, but nevertheless firmly, refuse. 
 
 Neither is the practice of exchanging notes to be advised altogether, though it is often done by good 
 business men and proves to be an accommodation to both parties concerned. 
 
 COLLATERAL NOTES. 
 
 One of the chief sources of profit to a bank is the loaning of, not alone its own capital, but a portion of that 
 which is left on deposit with them. These funds they will loan on approved security. Short time loans are 
 preferred, because they enable the bank to turn its money often, and in case of necessity they are more readily 
 converted into cash. If one has valuable stocks or bonds or ordinary promissory notes, but no cash, he can use 
 them as "collaterals" at his bank. He will endorse his collaterals over to the bauk, and make out and sign a 
 collateral note on the face of which his collaterals are listed. Of course, the nominal value of the collateral will 
 far exceed the amount of his loan, for on a forced sale they would not probably sell for par. If the note be paid 
 the collaterals will of course be returned, and the endorsements can be stricken off. 
 
 Collateral Note. 
 
 Chicago, III., 
 
 ..<£&3!!ZkZ^t£Z... after dale V^-^ 
 
 Union Trust Company 
 
 /JslA'&J? 
 
 ■promise to pay to the order of 
 
 DOLLARS. 
 
 for value Received, with interest at the rate of 7 per cent per annum,, after maturity until paid. 
 
 V -^ i 
 
 have transferred and delivered to said Union Trust Company, as Collateral security, for the payment of this and of 
 any other liabilities of the undersigned to said payee, due or to became due, or that may hereafter be contracted, the following property. 
 
 value of which is 
 
 viZ ; o<> : ^z-^^^ ££^Zi^^^ 
 
 Tp^i^cX^Z /.f^f..£..^£rr ^/?<?^.^ 
 
 -2^ .s^^^ 7 ^^^^^^^?^:. 
 
 Dollars, 
 
 '_r<^-^^ 
 
 And the umlersigned hereby give the said payee and assigtis authority to sell the said property, or any part thereof or any substitutes 
 therefor, and all additions thereto, on the maturity of the above note, or any lime thereafter, or before, in the event of the said security 
 depreciating in value, at any public or private sale, without advertising the same, or demanding payment or giving notice, with the right 
 to said payee and assigns themselves to be the purchasers, when sale is made at any brokers' board or public sale. And after deducting 
 all costs and expenses, to apply the residue to the payment of any. eitlier or all liabilities as aforesaid, as said payee or assigns shall elect 
 returning the overplus to the undersigned; and in case the proceeds of the sale'of said property shall not cover the principal, interest and 
 expenses, the undersigned engages to pay the deficiency forthwith after such sale, with legal inlercp 
 
14 
 
 HOW BUSINESS IS DONE. 
 
 JUDGMENT NOTES. 
 
 A judgment note is an ordinary note to which is added a power of attorney, authorizing the holder to confess 
 a judgment for the amount thereof when due, and in favor of the holder. In this way a man may have ajudg- 
 ment rendered against without knowing anything about it. Indeed the first he might learn of the judgment would 
 be when the sheriff enters to make a levy on his goods. It will thus be seen to be a very severe contract, and the 
 prudent business man will avoid, if possible, making such a coutract. They are not legal in some states. 
 
 It also provides for pavment of attorney fees in case suit is brought for its collection. Many such notes 
 waive the exemption of homestead. 
 
 Form oe Judgment Note. 
 
 Dollars, 
 Payable al„„.. 
 
 Value received ulith interest at. ..Z^^......per cent. pe/annumMjter....~r^^^rr^r^Z:. until paid (.and Twenty-five Dollar* additional as Attorney's fees.) Pro- 
 vided, however, that if this note is paid without Suit or Judgment, men no Attorney' s fees are to be paid. 
 
 NOW. THEREFORE, f n consideration of the premises Q7 do hereby make, constitute and appoint JOHN D. ODELL,.or any Attorney of any Court of Record, 
 bo^*&&;tr 
 
 of the States or Ter 
 
 > and lawful Attorney, irrevocably, forxJSft^-a'iid iiu^yname, place and stead to appear in any Court of Record, in term time or vacation, In any 
 3r Territories of tbe United States at apy time before or arterahe said note becomes due, to waive the service of process and confess a judgment In favor of 
 
 the said, C_~7Vx^i^.... / ?Zi<2*lK*c^..... or_*asi^assigns, upon said Note for the sum above, and interest thereon to the day of the entry of the said Judgment, 
 
 together with cosrs and damages, and also said Attorney's fees; and also, to file a cognovit for the amount thereof, with an agreement therein that no writ of error or 
 appeal shall be prosecuted upon the Judgment entered liy virtue hereof, nor any bill in equity filecLt»-rntetfe*e-inany manner with the operation of said judgment and to 
 release all errors that may intervene in entering-uusiuS Judgment or issuing any execution thereon; anrtTjlso to consent to Immediate execution on said judgment; also 
 
 to waive all benefit or advantage to which X_2_£. may be entitled by virtnarof anj/Honiestead or other/exemption law^-and all laws authorizing the 
 
 redemption of lands after sale under execution, now or hereafter in force, in this or any State/>r Tecritorv'of tbejjniteo^tayjes^vbej^tfagirrw^ may be entered by virtue 
 hereof; hereby ratifying and confirming all that s^Z&fty.. said attorney may do; by v/rtue^fereof^ 
 
 [SEAL.] 
 
 [seal.] 
 
 ACCEPTANCE. 
 
 A draft drawn for a certain time after sight, and in some states a sight draft must be presented promptly 
 for acceptance. The drawer signifies his acceptance of a draft by a memorandum written across the face of the 
 
 draft, as follows : 
 
 • Accepted. 
 
 July 81, 1896. 
 C. R. DuTTON. 
 
 If he wishes to make the draft payable at a certain place, as at his office or at his home, he should so 
 indicate in his acceptance. 
 
 Making a draft payable at your bank, as is the one on page 15, has the effect of making it your check upon 
 it. They will pav it on presentation when due. While this is not an uncommon thing, yet it is not considered as 
 good a practice as giving your check for your acceptance. • 
 
 Draft. 
 
 
 
 Jo 
 
 @AA^-, 
 
 &*-rt-J 
 
 ff^A a^rjp. 
 
how business is done. 
 The Same Draft After Being Accepted. 
 
 15 
 
 Q^A^rJ MA 
 
 
 73S> 
 
 HOW COLLECTIONS ARE MADE BY DRAFT. 
 
 One of the most common methods of collecting a delinquent account is by means of the draft. A owes 
 you an account now past due and has paid no attention to your monthly statements nor to your polite dunning 
 letters. In your last letter you probably stated that if you did not receive his remittance by a certain date you 
 would feel at liberty to draw on him for the amount of his account. On the date mentioned you have not heard 
 from him. Draw your draft on him in your own favor and for the amount of the account. Make the draft "at 
 sight" or "at three days' sight" or for any other time you may deem best. Endorse it "For Collection" to a bank 
 doing business as near to your debtor as possible and enclose it in a letter of instructions to the bank who will 
 present it for you and endeavor to secure its collection. Instruct the bank in such case not to protest the draft in 
 case of non- payment for nothing would be gained thereby. This instruction is usually conveyed by means of 
 the words "Do not Protest, take this off before presenting" printed on the end of the draft. If the draft be paid 
 the bank will deduct only a small fee, usually only large enough to cover postage and cost of the bank draft they 
 must use in remitting the proceeds. If your debtor does not accept or pay the draft it will be returned to you by 
 the bank with a memorandum stating the reason if any given by the debtor for his refusal to accept or pay. To 
 continually or repeatedly refuse payment of drafts leaves one open to the suspicion that he is financially embar- 
 rassed or captious in his dealings with others; either one of which soon brings him into disrepute with his banker 
 whose good opinion he should covet and cultivate. If then there is no especial reason why he should not pay the 
 draft he will be apt to do so. 
 
 If you wish, instead of sending this draft yourself, you can endorse it to your own bank for collection who 
 will attend to forwarding it. 
 
 In most cases a debt is due at the office of the creditor and all costs of getting payment to the creditor 
 should be borne by the debtor. Drawing the draft as we have described throws the cost of transmission on the 
 creditor for the bank deducts its fee from his proceeds. To avoid this and place the burden where it properly 
 belongs, add in the draft, in connection with the amount, the words "with exchange" then the bank will collect 
 the face of the draft and in addition its fees. 
 
 When the draft fails of its mission the account may be placed in the hands of an attorney or of a collection 
 agency according to the emergency of the case. 
 
 HOW TO DRAW THROUGH A CERTAIN BANK. 
 
 Sometimes an order is given for goods with instructions to draw "at sight" or for a certain time and through 
 a certain (his) bank for the amount of the bill. In this case the debtor will not remit but thereby notifies you 
 that he will await your draft. The object in instructing you to draw through his bank is that all his business may 
 come through the one bank and he may leave instructions there to pay it when presented or due and to deduct it 
 from his account retaining the draft as their voucher. While such instructions are common yet it is considered 
 better to have the draft presented and paid by a check regularly drawn. 
 
 In drawing this draft should you endorse it to your bank and have them forward it for collection they 
 might send it to any bank in the place where the debtor resides, so, to follow the instructions of the debtor you 
 must draw the draft in your own favor and then endorse it "for collection" to the bank named in his advice and 
 forward it to them directly. Or draw the draft in favor of the bank named and send it to them direct. 
 
16 HOW BUSINESS IS DONE. 
 
 HOW TO REMIT MONEY. 
 
 Let it be emphatically stated again that it is the duty of the debtor, unless the contrary be expressly agreed 
 upon, to lay down the full amount of his debt at the creditor's place of business free from discount, exchange, or 
 deduction of any sort. In all cases then the remittance, no matter in what form it may be made, should be in a 
 form or in funds that are current and without discount or exchange in the creditor's place of business. 
 
 The risk of loss incidental to remitting in any form rests with the debtor unless the creditor has instructed 
 him to remit in a certain manner, then if his instructions be followed strictly the loss is on the creditor. 
 
 I.— IN STAMPS. 
 
 Stamps are not legal tender and should never be sent except the amount be very small or the creditor has 
 instructed you to remit in that manner. 
 
 II.— IN CURRENCY OR COIN BY MAIL. 
 
 This is a proper form in which to remit, but it is not safe and the government does not guarantee the safe 
 delivery of any letter br package delivered to it for transmission. Should it be lost the loss would be yours and 
 not the creditors, unless the creditor had instructed you to remit in that manner, when the loss would be his. 
 
 III.— BY REGISTERED LETTER. 
 
 This is a legitimate form of remittance and comparatively safe. Though the government does not guaran- 
 tee its safe delivery, it takes every precaution to protect it, and of the thousands of remittances so made in a year 
 but a small proportion are lost. The loss, if any, falls of course on the debtor. The registered remittance» 
 doubtless, finds most favor in localities where other and simpler forms of remittances cannot be had. The 
 receipt which the receiver must sign and which is returned to the sender also commends it in many cases. The 
 fee for registering is eight cents in addition to the postage. Packages may also be registered. 
 
 IV.— PERSONAL CHECK. 
 
 It is perfectly proper to send your personal check to a creditor residing in the same town or to a place 
 where the banks are in daily correspondence and exchange with your bank but not otherwise, for in that case such 
 a check is subject to a fee for collection. A check on a Metropolitan bank may properly be sent farther than on 
 a small bank. Thus a check on a Chicago or New York bank may be sent to any town where the bank is a 
 depositor with the Chicago or New York bank, and will pass at par at the bank while a check on that bank 
 would not pass at par in the Chicago or New York bank. See pages 8 and 17. 
 
 It is not presumed that personal checks are drawn for circulation but for presentation and payment ; so as a 
 rule they should not be used for that purpose unless they are drawn for enough more than the debt to pay the 
 cost of collection. 
 
 One of the most annoying incidents of the wholesale business is to have a customer, residing say two or 
 three hundred miles away remit his check to balance his account. Nothing so quickly stamps a man as either 
 ignorant of the ways of business or as intentionally endeavoring to take a mean and small advantage as this. 
 The receiver may accept the check in full satisfaction, pocket his loss and swallow his chagrin, but rest assured 
 the remitter has gained nothing in the end. 
 
 V.— PERSONAL DRAFT. 
 
 A personal draft on a third person whether accepted or not is not a legal tender and is not a proper form of 
 remittance. It should never be sent except by previous arrangement. 
 
 VI.— BANK DRAFT. 
 
 This is doubtless the most common and the best form in which to make ordinary remittances, but not even 
 all bank drafts will pass without discount in all places. A bank draft on Chicago or New York would probably 
 so pass anywhere in the United States, and for that reason they are to be preferred. A bank draft on San 
 Francisco would probably not pass in Pittsburg without discount. A fee is usually charged by the bank for its 
 trouble regardless of the course of exchange ; what this fee is depends on the banks. 
 
 VII.— CERTIFICATE OF DEPOSIT. 
 
 It cannot be said that either this instrument or Cashier's Check is in common use as a means of remittance, 
 but both being negotiable instruments they are frequently called upon for this duty. All that has been said in 
 reference to Bank Drafts applies equally to them. 
 
HOW BUSINESS IS DONE. 
 
 17 
 
 VIII.— POSTAL ORDER. 
 
 This is a safe and convenient method, but cannot be used for amounts exceeding $100.00, unless more than 
 one order be purchased. They can be transferred once and may be deposited in your bank along with other 
 instruments. The bank will require you to sign the order as if you had received the money from the P. O. 
 instead of indorsing it to them. They should not be sent except to the town where they are made payable for 
 they are drawn on a particular office. But one endorsement is permitted. 
 
 IX.— EXPRESS ORDERS. 
 
 These are growing rapidly in popularity. They are cheap and reliable for the express company guarantees 
 their payment. They may be deposited the same and in the same manner as a postal order. The maximum 
 amount that can be so sent in one order is $50.00. Unlike Postal Orders, they can be sent anywhere and then 
 re-sent, for they are not drawn on a particular office. 
 
 X.— EXPRESS. 
 
 This method providing for the transfer of the actual money is of course proper in any amount though it 
 may prove somewhat expensive. 
 
 XI.— BY TELEGRAPH. 
 
 This may be done either through the express companies or through the Western Union Telegraph Co. If 
 through an express company, the money is paid to an agent who telegraphs the order to an agent at the point to 
 which remittance is to be made. This method is only applicable to large cities and towns, for not every express 
 or telegraph office would have at all times sufficient funds to meet these orders on demand. The charges by the 
 express companies are in addition to cost of telegraph service: 
 
 $100.00 or less, 1 %. 
 
 Over $100 to $200 $1 25 
 
 " 200" 300 150 No charge less than 50 cents. 
 
 " 300 " 400 1 75 
 
 " 400 " 500 2 00 
 
 SUBURBAN BANKS. 
 
 Many of the depositors in banks adjacent to large cities have occasion to use their checks in paying bills in 
 the city. These checks naturally find their way into the banks of the city, but being personal checks on banks 
 not members of the clearing house they are subject to a collection fee. To avoid this the suburban bank arranges 
 with a member of the clearing house to "clear" its checks for it. That is, this city bank takes up the suburban 
 bank's checks from the other members as its own. Such suburban banks frequently have a notice on their checks 
 that they are also payable through the clearing house at a certain bank. 
 
 Check of a Suburban Bank. 
 
 J3ANK0FflENHYL. GlOS, 
 
 PAYTc 
 
 PAYABl^H ROUGH 
 
 the ch/ca gctclear/ng house- ' 
 atNat/ohal Bank of Amer/ca 
 
 * »/.••.< vi 1 1 ttrm rv.TAji 
 
 DRAWING CASH ON YOUR OWN CHECK. 
 
 If you would draw money from your bank account for your personal use write the check "Pay to the order 
 of Currency." If you draw it " Pay to the order of Myself," you will be obliged to endorse it. 
 
1? HOW BUSINESS IS DONE. 
 
 KITING. 
 
 This is a technical term made use of by bankers to describe a sort of pirating practiced by some depositors. 
 To illustrate : Suppose that the clearing house meets at 11 A. M. At 12 M. a depositor is in need of cash, but 
 has none in bank. He goes to a friend and exchanges checks with him. The check received he endorses and 
 pays over to his customer. His check may be deposited at once or next morning in his friend's bank. This 
 bank will pass it through the clearing house and it will reach the bank on which it is drawn twentv-four hours 
 after it was issued. By this time the drawer has been able to make a deposit sufficient to cover the check. He 
 has thus been able to secure the use of this money without charge for twenty four hours. 
 
 It is considered bad practice by bankers, and the account of a depositor guilty of it is watched with care. 
 
 VALUE RECEIVED. 
 
 The words "value received" are not necessary to the validity of a note or draft, it is presumed that 
 value was given whether so stated or not. 
 
 JOINT NOTE. 
 
 Notes are either joint, or joint and several. A note written, "We promise to pay," and signed by two 
 people is a joint note. If " I promise to pay, etc.," it is joint and several. 
 
 COMPUTATION OF TIME. 
 
 If the time of commercial paper is stated in months, calendar mouths are used. If the time is stated in 
 days, count actual days. 
 
 SAFETY DEPOSIT VAULTS. 
 
 Many banks in the larger cities have large vaults especially constructed and fitted with safe deposit boxes 
 or drawers. These boxes they rent to persons who wish to store valuable papers, jewelry or money. The rent 
 of the boxes depends on the size. This is a great convenience to those who have no secure place for valuables. 
 The vaults are carefully guarded and many vaults are provided with private rooms where a t>erson may exam- 
 ine his securities or valuables at pleasure. 
 
 LEGAL TENDER. 
 
 A may owe B a sum of money which draws interest and which is due, but B knowing' A to be perfectly 
 responsible, prefers to have him keep the money and pay the interest. A wishes to pay and stop the interest. 
 He should therefore make a legal tender or offer of the money to B. Only certain kinds of money can be used 
 for this purpose. Such money is called " legal tender. " When making a tender to free oneself from payment 
 of further interest and costs, he must offer certain kinds of money. These are : 
 I. Gold coin and silver dollars in any amount. 
 II. Silver coins smaller than one dollar in amounts not exceeding ten dollars. 
 III. Copper and nickel coins up to twenty-five cents. 
 
 IV. Greenbacks for any amount and for any debt except duties and interest on the public debt. 
 V. Treasury notes in any amount. 
 National bank notes, silver and gold certificates, are not legal tender when objected to. 
 
 When a tender is legally made it stops further interest, and in case suit is brought on it the costs will be on 
 the creditor. 
 
 ADVANTAGES OF TAKING A NOTE. 
 
 There are a number of advantages in having an obligation in the form of a promissory note rather than in 
 an account. The note cannot be so easily disputed. It can be more readily negotiated or used as a collateral on 
 which to raise money. It can also be more easily enforced in a suit of law. The accuracy of an account must 
 be verified by oath, while a note is prima facie evidence of its own veracity. It is also a fact that a debtor is more 
 likely to pay his note than his account, for the note may be protested and his credit thereby be impaired. Of 
 course if a creditor accepts a note he thereby postpones the collection until the note matures ; in this respect the 
 note might be a disadvantage. 
 
 NATIONAL BANKS. 
 
 These are corporations organized by act of congress, hence are all called National. They may if they wish 
 purchase U. S. bonds with their capital, or a part of it, and deposit the same with the Treasurer of the United 
 States. Against the bonds so deposited they may issue in national bank notes, not more than ninety-per cent, of 
 the face value of the bonds. These banks are called banks of issue because they issue these notes or bills which 
 pass as money. National banks are required to report under oath to the controller of the currency whenever he 
 demands it, their financial condition in detail. They are also visited periodically by bank examiners who check 
 over their books and report the condition to the controller. National banks are not permitted to hold real estate 
 except for bank purposes, and when taken to secure a debt. Such property must, however, be disposed of within 
 five years. A national bank is not permitted to certify to a check for more than a depositor's account. 
 
 National banks in Albany, Baltimore, Boston, Cincinnati, Chicago, Cleveland, Detroit. Louisville. Milwaukee. 
 New Orleans, New York, Philadelphia, Pittsburg, St. Louis, San Francisco and Washington are required to have 
 constantly on hand in lawful money at least twenty-five per centum of the aggregate amount of its notes in cir- 
 culation and its deposits. Banks in other cities are required to keep fifteen per centum on hand. 
 
HOW BUSINESS IS DONE. 19 
 
 The stock holders in a national bank are held to a double liability, that is, in case the bank becomes insol- 
 vent the stock holders may be assessed an amount equal to the amount of stock held by them. 
 
 They are required to keep at all times on deposit with the treasurer of the United States 5% of their circulation 
 to be used in the redemption of their notes. 
 
 Each bank is required to set apart one tenth of its net profits until this sum shall equal 20% of its capital 
 stock. This is designated as a surplus fund and is to be used to meet any losses. 
 
 To be eligible as a director a stockholder must be a citizen of the United States and own in his own right at 
 least ten shares of the capital stock which must not be pledged in any way for a debt. At least three-fourths of 
 the directors must have resided in the state in which the bank is located for a year or more immediately preceding 
 their election and must continue their residence there during their term of office. 
 
 Each bank must have a capital of at least $100,000, but if the population of the city where it is located be 
 50,000 or more then the capital stock must be not less than $200,000. If the population of the city or town be less 
 than 6,000 a bank may be organized with a capital of $50,000 by securing the special authority of the controller of 
 the currency. 
 
 SAVINGS BANKS. 
 
 These are institutions organized not for the convenience of the business man but for the benefit of the poor. 
 They are to enable the latter class by combining their nickels and dimes to aggregate such a sum that it can be 
 loaned to good advantage. 
 
 Savings Banks are always creatures of State Statutes and they must therefore differ as these statutes differ. 
 But two general plans are however usually followed in their organization, to-wit : — the purely mutual and the* 
 corporate. The former is the plan in general use throughout the eastern states and is undoubtedly the more 
 rational and successful plan of the two. In most of the western states, Illinois included, the corporate plan is in 
 vogue. 
 
 By the mutual plan all net profits made by the institution are at stated intervals returned to the depositors 
 in proportion to the amount of their deposits. The trustees or directors serve without pay, only those employees 
 giving daily attendance at the institution receiving any remuneration. The expenses are reduced to the minimum 
 and a correspondingly larger dividend returned to the depositor. In those states where this is the plan of organi- 
 zation the large amount of deposits per capita is evidence of its popularity with the masses. 
 
 Form of Receipt Used by a Savings Bank. 
 
 j&kwatyo, 159. 
 
 C Received of DIM e SAVINGS BANK 
 
 DOLLARS, 
 
 to be charged to my account. 
 
 gJTo, 
 
 From the fact that the depositors in savings banks are the poor the state exercises a supervision over them 
 and limits the nature of their investments. They are usually restricted to mortgages on real estate, and to stocks 
 and bonds. Such security being the very best they do not afford as high a rate of interest. For this reason savings 
 banks are more noted for their stability than for large profits. It is a class of security that is not so readily con- 
 vertible as that handled by national banks, who must be ready to produce the money of a depositor on a moment's 
 notice. The rules governing a savings bank usually require the depositor to give notice (from thirty to ninety 
 days) of his intentions to withdraw his deposit. Though advantage is not usually taken of this rule, it serves a 
 good purpose in cases of emergency, when the bank has its funds invested in a manner that they are not readily 
 convertible. 
 
 These institutions bring into circulation the few dollars that are usually hoarded away by the poor and 
 middle classes and encourage a spirit of thrift in all classes. They are not only in this manner indirectly useful 
 to the community where they are located, but when the local municipality is seeking a subscriber for its obligations 
 in the shape of bonds its best and most reliable friends are the savings banks, and thus the people themselves, who 
 are the most interested in their government, become more intimately connected with it as its creditors. 
 
20 HOW BUSINESS IS DONE. 
 
 When money is to be deposited in a savings bank a ticket is made out similar to that in case of a commercial 
 deposit. 
 
 A book is given the depositor and the amount of his deposit entered therein. When he wishes to withdraw 
 money he must present his book and sign a receipt for the amount withdrawn, which amount will also be entered 
 in the withdrawn column of his book. 
 
 It will be noticed that such a deposit cannot be checked against, but the book must be presented either in 
 person or otherwise. 
 
 TRUST COMPANIES. 
 
 These companies are becoming more numerous every year. They are state institutions and not national, 
 and are usually organized under a special act referring to such companies, and it defines their limitations. They 
 receive deposits subject to check, and in general do a banking business. In addition to this they are authorized 
 to act as guardians, administrators, executors and bondsmen. They are often recognized depositaries of the 
 courts. They also act as agents for corporations in selling and transferring stocks and bonds, and in the payment 
 of dividends. They are authorized to act as receivers and assignees in case of insolvent debtors. 
 
 CARE OF TRUST FUNDS. 
 
 You are almost certain sometime in your business career to be called upon to act as a treasurer for a society 
 or as a guardian or administrator, and the proper care to take of trust funds in your possession will concern you. 
 
 To avoid as much responsibility as possible money should be deposited not in your name, but in your 
 
 fiduciary capacity as "John Smith, Treasurer for ," or "John Smith, Guardian for ," as the case 
 
 may be. This may not relieve you from personal responsibility in case the bank fails, but you should make it a 
 rule to keep trust funds separate and apart from your own. You should also keep accurate accounts with the 
 trust, so that in case of your absence or death it would be an easy matter to determine what had been done. 
 
 KINDS OF PAPER MONEY. 
 
 There are at the present time in general circulation five forms of paper money, viz.: 
 
 I. Greenbacks. 
 1 II. Treasury Notes. 
 
 III. National Bank Bills. 
 
 IV. Silver Certificates. 
 V. Gold Certificates. 
 
 I.— THE GREENBACK. 
 
 This is simply a promissory note of the Government made payable to bearer and its value is to be determined in 
 the same manner that you determine the value of an individual's note ; that is by the ability of the maker to pay. 
 There are now (1896) about 346,000,000 dollars of them in circulation. They are payable on demand and do not 
 bear interest. A demand may be made on any of the U. S. sub-treasuries. To provide for these demands which 
 are being constantly made the law requires the Government to keep on hand a "Reserve" of $100,000,000 in gold. 
 Greenbacks are legal tenders for all debts except duties on imports and interest on the public debt. When they 
 are redeemed the law requires them to be re-issued. 
 
 II.— TREASURY NOTE. 
 
 This was created by law in 1890. The words "treasury note" appear on the face and it further states that 
 they are payable "in coin" without stating which coin. It is legal tender for all debts both public and private 
 except when otherwise expressly stipulated in the contract. There are now about $129,000,000 in circulation. 
 When redeemed they are cancelled. 
 
 III.— NATIONAL BANK BILLS. 
 
 Upon the organization of a National Bank it may invest its capital in U. S. Bonds and deposit them with 
 the treasurer of the U. S. who will then issue to the bank in proper denominations bank bills to the amount of not 
 more than 90% of the face value of the bonds. The bills after being signed by the officers of the bank maybe put 
 in circulation as money. The face of the bill reads : National currency. Secured by United States bonds de- 
 posited with the treasurer of the United States. The National Bank will pay the bearer on demand 
 
 - Dollars." On the back : "This note is receivable at par in all parts of the United States in payment 
 
 of all taxes and excises and all other dues to the United States except duties on imports ; and also for all salaries 
 and debts owing by the United States to individuals, corporations and associations within the United States ex- 
 cept interest on the public debt." No bank bill is now issued of a denomination lower than $5. It will be 
 observed that the bank bill is not a legal tender if objected to on that account. 
 
HOW BUSINESS IS DONE. 
 
 IV.— SILVER CERTIFICATES. 
 
 Silver dollars are heavy and for this reason people prefer to receive payment of a large sum in a more con- 
 venient form of currency. To satisfy this demand and yet provide a currency exactly as stable and valuable as the 
 metal itself, the silver certificate was created. A person having silver dollars may take them to a sub-treasury and 
 receive for them an equal amount in silver certificates. The government retains these coins in its vaults to redeem, 
 when called upon to do so, that same amount of silver certificates. So for every dollar of silver certificates issued 
 the government holds a silver dollar to redeem it. The face of this certificate reads : "This certifies that there 
 
 have been deposited in the Treasury of the United States silver dollars payable to the bearer on 
 
 demand." The back reads: "United States Silver Certificate. This certificate is receivable for customs, taxes 
 and all public dues, and when so received may be re-issued." They are issued in denominations of $1, $2, $5 and 
 upwards to $10,000.00. There are now about $336,000,000 of them in circulation. 
 
 V.— GOLD CERTIFICATES. 
 
 These are similar to the silver certificates except that they are based on gold instead of silver. They are 
 yellow in color and are issued in denominations of $20 and upwards. 
 
 KINDS OF METALLIC MONEY. 
 
 I —GOLD. 
 
 The basis of our currency is the gold dollar. This has 23.22 grains of pure gold. The pure metal is too 
 soft to make a practical coin so it is combined with an alloy of nine parts gold to one part of alloy. This makes 
 the actual weight of a gold dollar 25.8 grains. The gold coins now issued by the government are the 2^ -dollar, 
 the 3-dollar, the 5-dollar, the 10-dollar or eagle and the 20-dollar or double eagle. All our gold coins are 
 intrinsically worth their face and will pass at par anywhere in the world. In 1890 the coinage of 1-dollar and 
 3-dollar gold pieces was discontinued by law. 
 
 II.— SILVER. 
 
 Our silver dollar contains 371^ grains of pure metal, but the gross weight is 412^ grains, owing to the alloy 
 that is added to the silver to harden it. At present the pure silver in a dollar does not nearly equal the value of 
 gold in a gold dollar. If the gold in a gold dollar be taken as the standard the silver in a silver dollar is worth 
 only about 53 cents. For this reason our silver dollars will not pass at par anywhere outside of this country. The 
 silver dollar is f of an inch in diameter and T § g^ of an inch thick. It is a legal tender in any amount. 
 
 The subsidiary coins are the half-dollar, quarter-dollar, and dime, all of silver; and the 5-cent nickel and the 
 copper cent. None of these is intrinsically worth its face. The silver subsidiary coins are legal tenders in amounts 
 not exceeding ten dollars, while coppers and nickels are legal tenders in amounts up to 25 cents. 
 
 If one has gold alloyed in the proper proportion for coining, the government mint will coin it for him free 
 of charge. 
 
 HOW TO DETECT COUNTERFEIT COIN. 
 
 Throw the coin upon the counter and if it gives a clear metallic ring it is genuine. A counterfeit will give 
 a dull sound. A counterfeit coin if a little worn will present a dull appearance. Again, most counterfeits are not 
 well moulded, the milling on the edge and the lines on the sides are not clear cut. Much can also be told by feel- 
 ing the coin. A counterfeit coin has an unctious or oily feeling, quite different from the genuine. • 
 
 HOW TO DETECT COUNTERFEIT BILLS. 
 
 In detecting counterfeit bills notice the clearness of the geometric lathe work about the denominational 
 figure. If the lines are clear, uniform and exact it is evidence of genuineness. 
 
 Notice the shading to the letters and figures and other ruling engine work. If the lines are smooth and 
 parallel it is evidence of genuineness. In counterfeit notes these lines are engraved by hand and are more or less 
 imperfect, while in genuine bills they are engraved by machinery and are mathematically correct. 
 
 Notice the quality of the portraits and vignettes on the bill. In the genuine these are clear, distinct and 
 full of expression, while in the counterfeit they are usually dull, expressionless and more or less imperfect. The 
 government employs a very superior class of artists for this work, and counterfeiters are usually unable to equal 
 them. 
 
 The texture and fibre of the paper is another test, although not an infallible one. The paper of genuine 
 bills is made to the order of the government and is pliable but tenacious, while the paper of the counterfeiter is 
 usually of a cheaper grade, with more stiffness and easily torn. 
 
 The ink on a counterfeit bill is usually of an inferior quality to that used by the government, and presents 
 a dull and cheaper appearance, while the ink on a genuine bill is of a brighter and richer hue, and gives to the bill 
 more of a cheerful appearance. 
 
22 HOW BUSINESS IS EONE. 
 
 Bills have been "raised" by scraping off the denominational number and pasting thereon a counterfeit 
 number of a larger denomination. Thus a $5 bill may be changed to $20, and several clever forgeries have in this 
 way been committed. By close inspection such forgery may be detected in the geometric lathe work around the 
 figure as the lines will be broken and show the patch work. In this case the counterfeit relies on the genuineness 
 of the other parts of the bill to carry it through. If you are in doubt about the genuineness of a bill, if possible 
 examine it under a magnifying glass. 
 
 Lastly, always remember that the Statutes of the United States make it a penitentiary offence to knowingly 
 pass counterfeit money, or even to have it iu your possession, unless innocently. 
 
 HOW TO MAKE CHANGE. 
 
 It is universally conceded that it is preferable to make change by the process of addition rather than by 
 subtraction. Start in your mind with the amount to be paid you and add to it enough to make even dollars and 
 from that up to the amount that was handed you. Repeat this aloud in the hearing of your customer throwing 
 the change down before him as you do so. When another pays you always count it again in his presence before 
 leaving him. 
 
 HOW TO COUNT CURRENCY. 
 
 In the counting of currency there is both a physical and mental process. The first has to do with the man- 
 ipulation of the bill itself and the second with the counting proper. 
 
 Bank tellers usually take the bills in the left hand, the palm of the hand being up, and the thumb on top 
 of the pile and used as a lever to push the bills away, the right hand being used to draw the bill out of the left. 
 At the same time the thumb and ends of the fingers of the left hand are gently pressed together so that the oper- 
 ator may get the feeling of the bill, and also to prevent drawing two bills from the hand at the same time. In all 
 
 cases the bills should be arranged with the face up. Another way used by many good 
 tellers and said to be equally as rapid and reliable, is to hold the bills down on the 
 desk with the left hand and wrist, and pinch them up with the forefinger and thumb 
 of the right hand, the fingers being moistened by a saturated sponge kept near. The 
 latter is the only method possible when the bills are in packages and are to be left 
 intact. 
 
 In counting the bills the teller begins with the first bill on top which we will say 
 happens to be a five-dollar note. This bill, he counts as one. Next comes a $10 bill, 
 which being equal to two fives, he counts as two. This makes the total count three. Then comes, we will say, a 
 $20 bill which is equal to four fives and adds four to his count which makes it seven. Now comes another five 
 which adds one to the count and brings the total to eight. Next is a $50 bill which is equal to ten fives and is 
 counted as ten. This brings the count to eighteen. Then comes a $1 and a $2 bill which he throws aside and 
 does not count at present. The next is a $100 bill which adds twenty to his count and brings the total to thirty- 
 eight, that is thirty-eight times $5 which is $190. In other words, the $5 bill is taken as the unit and if any smaller 
 bills are in the package, they are counted separately and added to the total. In counting smaller bills, the one- 
 dollar bill is used as the unit. 
 
 HOW TO COUNT COIN. 
 
 In counting coin, the pile is thrown on the counter. The left hand is placed against the breast slightly 
 below the level^of the desk, and with the right hand the coins are scraped off from the desk into the hand, and 
 the counting is done as they drop into the hand. It is considered best to sort each kind first by itself and count 
 each kind separately. In counting gold, the mental process is the same as when counting currency, but in count- 
 ing mixed silver, the quarter is used as the unit. In handling gold great care must be observed to see that the 
 coin is full weight or nearly so as otherwise a discount will be charged at the bank of deposit receiving the coins. 
 
 ABRASION OF COINS. 
 
 If one takes gold coin to his bank and offers it for deposit, the chances are that each coin will be carefully 
 weighed before credit is given for them. The law on this subject reads as follows : 
 
 " Which coins shall be a legal tender in all payments at the nominal value when not below the standard weight and limit of 
 tolerance provided in.this act for the single piece, and when reduced in weight, below said standard and tolerance, shall be a. legal 
 tender at valuation in proportion to their actual weight; and any gold coin of the United States, if reduced in weight by natural 
 abrasion not more than one-half of one per centum below the standard weight prescribed by law, after a circulation ot twenty years, 
 as shown by its date of coinage, and at a ratable proportion for any period less than twenty years, shall be received at their nominal 
 value by the United States Treasury and its offices, under such regulations as the Secretary of the Treasury may prescribe for the pro- 
 tection of the Government against fraudulent abrasion or other practices; and any gold coins in the Treasury of the United States 
 reduced in weight below this limit of abrasion shall be recoined."— Extract front U. S. Statute. 
 
 As the value of a grain of gold is between four and five cents it is the custom to deduct four cents for every 
 grain or fraction of a grain that the coin is short in weight. 
 
HOW BUSINESS IS DONE. 23 
 
 EXCHANGE. 
 
 The great financial center of the world is London. The financial center of this country is New York. 
 Here is controlled a large amount of wealth that is invested in all parts of the country. Surrounding these cen- 
 ters like satelHtes, are smaller centers each a center of a smaller circle. Thus Chicago is the financial center of a 
 large territory immediately surrounding it. San Francisco is another for the Pacific coast. But these lesser 
 financial centers form a community whose center is New York. A western merchant goes to New York to pur- 
 chase goods. He does not take with him the actual money he expects to need in the purchase of his bills. His 
 money he leaves on deposit in his home bank. He buys $10,000 worth of goods on 10, 15, 30 or 60 days time as 
 the case may be, and they are shipped. The result is that at the end of his term of credit he has $10,000 to pay 
 in New York for his debt is due there aud not at home. His money is in his home bank but due in New York. 
 How shall he get it there? He could of course send it by express, but that would be expensive for so large a sum. 
 The best method considering the expense is doubtless the bank draft. He draws his check payable to "New 
 York draft," takes it to his bank and gets for it their draft on a New York bank for the amount wanted. But how 
 does the Western banker have the right to draw on the New York bank? As has been said New York is the 
 financial center of this country and nearly all banks keep a deposit with some New York bank, against which they 
 can draw their drafts as they have calls for them. This is called selling New York Exchange. At certain seasons 
 of the year there is a general movement of crops and farm products from west to east, these will be sold in the 
 east, and checks, certificates of deposit and cashier's checks on New York banks will be received for them by the 
 western shipper. These he will deposit in his western bank and as soon as deposited he ca.n immediately check 
 against them. The bank receiving these exchanges will forward them to its New York correspondent bank for 
 credit. At this time it may be that there is but little call from its customers for New York drafts. Consequently, 
 it will under such conditions have a larger balance to its credit in New York than it wishes or can use, for any- 
 thing above what it can use would be idle capital, aud banks to earn the most, must keep their money moving. 
 
 On the other hand there are seasons when the West is buying extensively of the East, that it is difficult for 
 the western banks to maintain a balance in New York sufficient to meet the demands that are made upon them 
 for New York exchange. In Chicago, there are certain large dealers and shippers, like Swift & Co., Armour & 
 Co., and certain members of the Board of Trade, who daily have large amounts of New York exchange to deposit. 
 On the other hand there are a large number of merchants, such as Marshall Field & Co., Maudel Bros., and 
 others, who are constant buyers of New York exchange. The banks endeavor to get a fair division of customers, 
 that is, to get some customers that are sellers of New York exchange and some that are buyers; in this way the 
 New York account is kept stable without being obliged to send the actual money by express to adjust it. This 
 equilibrium of customers cannot always be preserved, and as a result certain banks are constant sellers of New 
 York exchange, while other banks are constant buyers of it. A portion of the account of these large shippers 
 and merchants is eagerly sought after. They usually divide their business and carry accounts at several banks. 
 In case a Chicago bank is short on New York exchange it may call up one of its heavy depositors of such exchange 
 and ask him if he can't give them a large amount of New York exchange to-day. Not being able to get sufficient 
 from its customers it must look elsewhere. It will probably then inquire of other banks who may have more than 
 they need. If they are successful in securing it a voucher will be drawn for it and this voucher is sent through 
 the clearing house. The New York draft received will be forwarded immediately by mail for credit and drafts will 
 be sold agaiust it immediately. 
 
 It sometimes happens that owing to this ebb and flow of credit from east to west and from west to east, 
 practically all of the Chicago banks are in need of New York credit, or a majority of them have too much New 
 York credit. If a bank has too large a balance there and takers of it are not plenty it will offer it at a discount. 
 If it does nbt have enough and it is hard to secure it will offer a premium. If need be the actual money may be 
 sent by express either to or from New York but the charge to bankers for this service is $1.00 per thousand. The 
 time required is two days and the interest for this period is figured at 10 cents making a total charge of $1.10 per 
 thousand. This serves as a limit to the rates of exchange and the rates of New York exchange quoted in the daily 
 papers rarely exceeds $1.00 discount or $1.00 premium. Sometimes the two-days' time is a consideration and the 
 rate goes to $1.15 or even $1.25. These quotations are per $1000. 
 
 The daily papers in Chicago quote the rates on New York exchange. By observing this the shifting of 
 credit back and forth between the East and West can be noted. It is thus an index of the course of business. 
 
 In Chicago there is a broker who makes it his business to inform the banks by 10:00 A. M. what banks have 
 exchange to sell and what banks wish to buy. For this service he is paid a small fee per $1000, but which aggre- 
 gates him a good return for his trouble. 
 
 While New York exchange may be at a premium, yet if a customer has a New York draft to deposit he will 
 only get credit for its face. If he wishes to buy New York exchange he must usually pay a small fee for it regard- 
 less of the course of exchange. If a customer keeps a large balance to his credit, he can usually get what drafts 
 he wishes without extra fees, but the ordinary customer pays a small fee. 
 
24 
 
 HOW BUSINESS IS DONE. 
 
 FOREIGN EXCHANGE. 
 
 Dealings in Foreign Exchange in this country are limited in the interior to a few of the principal banking 
 institutions, while the bulk of such transactions is confined to the seaboard — mainly New York. In the latter 
 metropolis a number of large European financial institutions have branch offices and others are represented by 
 firms in whom they are financially interested. Their dealings in the aggregate amount to millions daily and it is 
 through their agency that the balance of trade between this and other countries finds its ebb and flow. We 
 export and import commodities, and when the value of the one exceeds the other the difference must be settled in 
 money — the world's money ; gold or its equivalent ; hence the necessity for agents skilled in the knowledge of the 
 financial affairs of other countries as well as of their own. These agents are generally referred to in the daily 
 market reports as foreign bankers, though most of the members of these international firms are men of American 
 birth and parentage. 
 
 Foreign Exchanges are worked by means of Cable Transfers, Sight and Time Drafts, Commercial Credits, 
 Travelers' Credits, Shipments of gold and silver coin or of gold and silver bullion, and Foreign currencies. 
 
 Cable Transfers are transactions that find their consummation as quick as electricity can work. Money is 
 paid into a bank in London with instructions to be paid over to a fourth party, say in Chicago. With a very few 
 words in cipher the London banker instructs his Chicago correspondent to pay John Jones a certain amount, and 
 in case John Jones is within easy reach, it is possible that the duration of the entire transaction from incipiency to 
 finish may not have been more than twenty minutes. 
 
 Bills of Exchange are divided into two classes : Bankers' bills and Commercial bills, and again both classes 
 are divided into demand and time bills. Bankers' bills are, as the name implies, those drawn by banks or 
 bankers. They command higher prices than Commercial bills owing to the fact that the makers and drawees are 
 well-known financial institutions, and that their ultimate redemption is reasonably assured. This class of bills is 
 eagerly sought after by importers and others having indebtedness to settle abroad. As a rule they are drawn on 
 demand, at 30, 60 or 90 days' sight, seldom longer than the latter period. They are issued in sets of three — first, 
 second and third of exchange. — In the case of long time bills, sixty or ninety days sight, the first of exchange is 
 frequently sent to the domicile of the drawees for acceptance, there to be held subject to the call of the duly 
 endorsed second or third of exchange, and is so marked on its face, while cross lines are drawn on the back to 
 prevent its being endorsed by inadvertance ; at the same time an annotation is placed on the face of both second 
 and third of exchange that " The first of exchange is held by N. M. for acceptance, subject to the call of the duly 
 endorsed second or third of exchange." This method would be adopted by a merchant having a balance to 
 settle in South America, and who would wish to minimize, as far as possible, the loss of interest on the money 
 while in transit. By buying a sixty days' sight bill on London, and sending the first of exchange to a London 
 bank for acceptance, and at the same time starting the second and the third of exchange, duly endorsed, on its 
 mission to South America, either of the latter would reach Loudon about the time of the maturity of the bill, 
 and the merchant would have received the interest in the lower price paid for the sixty days sight bill as against 
 the cost of a demand bill. 
 
 Commercial Bills, (Form 1,) are those drawn by merchants in reimbursement of the sale of merchandise, 
 and are either clean or documentary bills, issued on demand oron time. Clean bills are generally drawn in settle- 
 ment of balances, while documentary bills are made to cover specific shipments. 
 form i. First of a Commercial Bill. 
 
 &xthm$p far 
 
 The negotiability of clean bills, that is such without any documents supporting them, depends upon the 
 financial standing of the makers, while documentary bills as a rule, under ordinary market conditions, find a 
 ready sale, as the goods against which the bill is drawn are pledged as security for' the ultimate payment of the 
 bill, and for the purpose of placing this condition beyond a doubt, a special document called a letter of hypotheca- 
 
HOW BUSINESS IS DONE. 25 
 
 Hon is attached. (Form 2.) As a further precaution to all interested parties insurance is provided to cover the 
 merchandise against all risks, marine, fire, loss and partial damage, and such insurance is embodied in a certificate 
 issued by some insurance company of established reputation, and as a rule is made payable to the insured or 
 order. The last and most important document attached to this class of bills is the Bill of Lading made out in the 
 name of the shipper and by him endorsed in blank. As the goods are deliverable at point of destination only 
 upon surrender of the Bill of Lading, it follows that in case of default in payment the parties holding the Bill of 
 Lading can obtain the goods and dispose of them by sale without haying recourse to expensive legal process. 
 Documentary bills are as a rule made out in duplicate or triplicate, and are readily merchantable when 
 accompanied by the following documents : 
 
 I. — Bills of Lading in duplicate or triplicate, issued by a transportation company to the order of the 
 shipper, and by him endorsed in blank. 
 
 II. — Certificate of Insurance in duplicate payable in case of loss to the order of the insured and by him 
 also endorsed in blank. 
 
 III. — Letters of Hypothecation pledging the goods shipped, as security for the ultimate payment of the bill 
 and containing conditions as to the disposal of the documents, whether such are to be surrendered to the drawee 
 upon acceptance or upon payment of the bill of exchange, and also providing for a rate of interest to be rebated 
 to the drawee in case he should desire to retire the bill prior to maturity. Additional documents are sometimes 
 required to cover specific cases or to conform to customs regulations in foreign ports, such as Certificates of 
 analysis as in the case of iron ore, flax-seed, cotton oil, kerosene, etc. Certificates of origin, where discrimination is 
 practiced against products of certain countries. Certificates of inspection, in grain shipments. Certificates of 
 microscopic inspection in meat shipments. Weight notes, invoices, etc., etc. 
 form 2. Letter oe Hypothecation. 
 
 ft U&&fcu&%- 189 A, 
 
 Chicago 
 
 TO WHOM IT MAY COJfCERJf. 
 Sirs: Tf* 
 
 /0 ^74^ have this day sold to the FIRST NATIONAL BANK, a Bill of Exchange 
 
 ^ . f i-%y '/& , - . j. ^ /? _ 
 
 against a shipment of. 
 
 The agreement with the FIRST NAT'L BAN K, is\ that the Bill of Lading ^t-tf: lodged as Col- 
 lateral security for the acceptance and payment 'of tfiis draft. 
 
 In case the drawees decline to accept, or if the^m.1 be not paid at maturity, then you are hereby 
 authorized at any time, at your discretion, to placekhe property covered by said Bill of Lading, as 
 above, in the hands of your Brokers, for sale on aliSBunt of whom it may concern, and apply the pro- 
 ceeds toward the payment of the Bill, and in case &**l>y deficiency hereby agree to pay the amount 
 of such deficiency to the FIRST NAT'L BANK, o\nrMmand; and also, that if you should require the 
 transfer of the "Policy of the Marine Insurancer"k>\c same shall be given, and in case of refusal to 
 transfer by the parties drawn on, then you are tcShave the privilege of effecting a special insurance, 
 for cost of which you are to have a lien on the abltuzrkierchandise. 
 
 It is understood that in the event of the Bill/bttng paid under discount, rebate of interest shall 
 be allowed at the rate of one-half of one per centt /M annum abmpUhe advertised rate of interest for 
 short deposits allowed by the leading Joint StockfWinks of LontLyli.J 
 
 You^^espectfMli/A/Cu . //] **? ■ ' 
 
 xq k _ C^^4 ^y ^ ^ ^y 
 
 Insured in X^^<^^^ —*« „. / 
 
 Commercial credits are used for the purpose of importing merchandise, and are granted by banks and 
 bankers to importers of approved standing, and enable the sellers to place themselves in funds immediately upon 
 shipment of the commodities purchased. They are as a rule available by draft of the shipper upon some banking 
 center — London, Paris, Amsterdam, Hamburg or Antwerp — at sight, thirty or sixty days, three months, or four 
 months ; and for coffee and tea purchases where the goods are shipped by sailing vessel, at six months sight. Such 
 drafts must as a rule, be accompanied by Bills of Lading, Insurance Certificates or Policies of Insurance, Consular 
 Invoices, and any other special documents which may be required. When such documents are found in order and 
 surrendered, the draft is accepted by the bank prescribed in the letter of credit for account of the bank of issue, and 
 can then be negotiated by the shipper at most favorable rates, as such bills also come under the head of Bankers' 
 Bills. One set of the documents evidencing the shipment of the commodities purchased is, as a rule, sent to a 
 custom house broker designated in the Letter of Credit, for account of the issuing bank, while the remaining 
 documents are sent to the bank itself. The custom house broker attends to the clearance of the goods 
 immediately upon the arrival of the vessel, pays the duties when dutiable, and forwards or stores the goods as the 
 bank may direct. Inasmuch as the bank issuing the letter of credit has a lien upon the goods until a settlement 
 is had with the importer, great care must be exercised in the handling of the documents to prevent the bank's 
 
20 HOW BUSINESS IS DONE. 
 
 interest in anyway being jeopardized, and consequently each step must be jealously and religiously watched to 
 prevent the title of the property slipping beyond me bank's control. As the importer is virtually using the 
 bank's credit, a commission is charged for this service, gauged by the life of the drafts, and settlement is had 
 sufficient time prior to maturity to enable a remittance to reach the banking point where the acceptance is 
 domiciled. 
 
 Travelers' Letters of Credit are used by persons traveling from one place to another, and similar to Com- 
 mercial Letters of Credit are available by draft on a banking center, generally London, in which case they are 
 issued in Pounds Sterling. On a fly sheet or on a separate letter of introduction called the Letter of Indication, is 
 printed a list of the correspondents of the issuing bank, and at any one of the cities or towns designated, the 
 holder can negotiate his drafts until the sum for which the Letter of Credit is issued is exhausted. With the last 
 draft the Letter of Credit is taken up, canceled and returned. The holder immediately upon receiving the Letter 
 of Credit is required to sign his name in a special place provided on the face of the Letter of Credit or upon the 
 Letter of Indication, and this signature serves as a guide to the bankers in the various parts of the world in 
 determining the rightful ownership of the letter. As a travelers' Letter of Credit is supposed to be used for 
 personal expenses, comparatively small sums only are drawn at a time, and as drafts are negotiated, the amounts 
 are endorsed on the Letter of Credit itself by the bank or banker, thus enabling each successive correspondent to 
 perceive at a glance to what extent the credit had been used. As a matter of convenience and safety this method 
 of carrying money surpasses all others. Another form of travelers' credit is the Circular Note, which is an 
 English institution, and has found but few imitators elsewhere. A Letter of Introduction with signature of the 
 holder, and a list of correspondents is furnished to the traveler, together with a certain number of drafts or notes 
 issued for stated amounts, generally in multiples of Ten Pounds Sterling, engraved in a more or less intricate 
 design to prevent counterfeiting, and are made out payable to the order of the holder of the letter of indication. 
 
 Shipments of gold coin and gold bullion generally take place to settle balances of trade between two 
 foreign countries, and is evidence of a balance against the country from which they are made. Thus the parity of 
 exchange between the United States and Great Britain is 48665, i. <?., $4.86 and T 6 5 ff cents for the pound sterling, 
 and when the price of Sterling falls below this point, it is said the exchanges are in favor of the United States, and 
 when it rises above, it is against us. Favorable exchange means that we are exporting more of our products than 
 we are importing, and proportionately as exchange falls our balance is increased until it reaches a point where the 
 rate is so far below the parity as to enable the debtor nation to include the cost of shipping gold bullion or gold 
 coin. The cost of such shipments being about Y% of one per cent., the price of Sterling Exchange would have to 
 fall to about 484^ before gold could be imported into this country without loss, and vice versa Sterling 
 Exchange would have to rise to about 488j£ before it could be exported. The chief depository of the gold of the 
 world is the so-called Old L^dy of Threadneedle Street, the Bank of England, and a withdrawal of the yellow 
 metal for export, even in its incipiency is viewed with more or less alarm. Immediately measures are adopted to 
 make withdrawals more difficult, gentle ones at first, and if these do not prove effective then more stringent ones ; 
 thus during the era of an adverse balance in 1896, the price of American gold coin was successively advanced 
 from 76 shillings 3d per ounce to 76 shillings 8d per ounce, and these measures not retarding the outflow, the 
 minimum rate of discount was raised from 2 per cent., at which figure it remained stationary for over three years, 
 to 2 l /i and to 3 per cent. 
 
 The stock of gold in the vaults of the Bank of England consists in bar gold, sovereigns and foreign coins. 
 These latter are not melted down as is commonly supposed, but are kept separately in bags of 500 ounces 
 each. Each denomination of coin has its price, expressed in shillings and pence according to its fineness. 
 Should an export demand for gold to the United States arise, eagles and double eagles are bought in preference to 
 other coin or bullion, as they would be immediately available as money upon arrival in this country, whereas 
 other coins or bar gold would first have to pass through the Government assay office, entailing a serious delay in 
 times of stringency, and considerable expense. The eagle and double eagle weigh, in theory, respectively 258 
 and 516 grains at nine-tenths fine, but as all coins suffer more or less by abrasion, and are not even true weight 
 when leaving the mint, it is impossible to make up parcels of 500 ounces by tale of the coins ; they are, there- 
 fore, weighed in bulk, and in order to make up the exact weight in each bag, clippings of the coin are added 
 until the desired result is reached. 
 
 In conclusion, a few words in explanation of quotations in the daily papers would not be inopportune. 
 Such quotations generally read as follows : 
 
 Sterling 
 60davs. demand. Cable. 60 days demand 
 
 Postedrates 48lj^ 484> 2 ... f Bankers francs 519^ 51754 
 
 .. .(Bankers 481 484 484J4 ACluai \ Commercial " 520 518^ 
 
 Actual \ Commercial .. 480^ 483# ... J Bankers m;irks U}i 94^ 
 
 Acxuai \ Commercial " 93^ 91}/ 2 
 
 Sterling posted rates are arbitrary rates, fixed by certain prominent foreign bankers for the settlement of 
 contracts or obligations, payable in Pounds Sterling in this country, such as acceptances on account of importers 
 under commercial credits, sterling drafts and other settlements. The term " actual rates" speaks for itself, and 
 are the rates at which actual trades have b< j en made. The difference between bankers' bills and commercial 
 bills has already been explained. Sterling rates are quoted for so many dollars and cents for one pound sterling, 
 and is lower for time bills than for demand bills, as the interest is included in the price. 
 Francs are quoted at so many francs and centimes for one dollar. 
 Marks are quoted at so many cents for four marks. 
 
HOW BUSINESS IS DONE. 
 
 THE CLEARING HOUSE. 
 
 No 
 
 18. 
 
 CHICAGO 
 
 Form No. 2. 
 
 CLEARING HOUSE. 
 
 FROM 
 
 CHICAGO NATIONAL BANK 
 
 CLERK'S STATEMENT 
 
 189 
 
 It has been seen that in the ordinary business of a day a bank cashes many checks and drafts on othjer 
 banks in the same city. They, in return, get many of its checks. In a large city there may be fifty such batiks, 
 each of which has in this manner cashed checks on the other forty-nine. To get the cash on these checks would 
 necessitate a messenger of the bank making a trip to each of these banks. This would not only be an enormous 
 expense, for we must remember that each of 
 the banks would be doing the same thing, 
 but the continual flow of money in the 
 hands of messengers through the streets 
 would be a dangerous practice. To avoid 
 all this and simplify these settlings the 
 clearing house was organized. 
 
 So convenient and satisfactory has it 
 been found to be that they are now found in 
 all large cities. It is an association formed 
 by the different banks interested. A man- 
 ager is elected, and a room that is suit- 
 able is provided. Here, at a given hour (in 
 Chicago 11 A. M.), each bank that is a 
 member sends two clerks : one is called a 
 settling clerk and the other a specie clerk. 
 The specie clerk brings the drafts and chet ks 
 on other banks, properly assorted and ar- 
 ranged, and the settling clerk brings a 
 ticket showing the amount of those that 
 are against each bank. This ticket is handed 
 to the manager. As a ticket is deposited 
 with the manager, he places in his proof 
 opposite the name of that bank the total 
 gross amount due from the clearing house 
 to that bank, but it yet remains to be 
 determined the amount of checks and 
 drafts that will be presented by the other 
 banks against this one. To ascertain this 
 the settling clerks take positions behind 
 the counter, each one at his own designated 
 position, and the specie clerks with their 
 packages of vouchers stand on the outside. 
 At a- given signal each specie clerk moves 
 forward until he comes opposite to a set- 
 tling clerk, to whom he hands a package of 
 vouchers drawn on his (the settling clerk's) 
 bank. He also hands him a list of these 
 vouchers and their total. If found correct, 
 the settling clerk will receipt him by signing 
 his name in the column headed " Receipts " 
 in Form No. 2. 
 
 This occupies but a moment, and at 
 another signal each specie clerk moves 
 forward before the next settling clerk, where 
 the same operation is repeated. When the 
 specie clerk has in this manner made the 
 
 rounds he has a receipt from all the banks on whom he brought vouchers, and each settling clerk has received 
 and receipted for all vouchers drawn on his bank. As each specie clerk passed before a settling clerk he would 
 enter in the "Bank's Cr." column, in Form No. 3, and opposite the name of the bank represented by 
 that specie clerk, the amount of vouchers on his bank handed him by that clerk. When through, each column 
 will be footed and the difference will show whether his bank owes the clearing house or it owes him, and how 
 much. The " Bank's Dr." column was filled out before he left the bank, and represents the amount of vouchers 
 against each bank that the specie clerk took to the clearing house. After verifying his work he will make out a 
 balance ticket Form No. 4 and hand to the manager. 
 
 
 No. 
 
 MM 
 
 DR. MOUNTS 
 
 RECEIPTS 
 
 
 1 
 
 First National Bank, 
 
 4 
 
 i z i 
 
 4a 
 
 • 
 
 L 
 
 • 
 
 2 
 
 National Bank of America, 
 
 
 /? 
 
 j-( 
 
 2 
 
 
 3 
 
 Merchants National Bank, 
 
 / / 
 
 & 
 
 
 3 
 
 
 4 
 
 Nor. Western Nat. " 
 
 / 
 
 4 re 
 
 
 4 
 
 
 5 
 
 Commercial Nat. " 
 
 
 J f </ 
 
 7f 
 
 S 
 
 
 6 
 
 Union National '' 
 
 / 
 
 4J-? 
 
 
 s 
 
 
 7 
 
 Mer. Loan & Trust Co., 
 
 /J 
 
 i / 3- 
 
 f>T 
 
 7 
 
 
 8 
 
 Corn Exchange Bank, 
 
 
 f* 
 
 it 
 
 8 
 
 
 10 
 
 Metropolitan Nat. Bank, 
 
 * 
 
 <f 4 (. 
 
 ■f-J 
 
 10 
 
 
 11 
 
 Hibernian Banking Ass'n, 
 
 
 y4 7 
 
 r4- 
 
 11 
 
 
 12 
 
 National Bank of Illinois. 
 
 / a 
 
 Sit 
 
 
 12 
 
 
 13.. 
 
 Bank of Montreal, 
 
 r 
 
 a e 
 
 
 13 
 
 
 14 
 
 Hide & Leather Nat. Bank. 
 
 
 a-4 
 
 /c- 
 
 14 
 
 
 15 
 
 Union Trust Co., 
 
 
 >7 
 
 4/ 
 
 V 
 
 
 16 
 
 American Exch'g Nat. B'k, 
 
 / 
 
 />«! 
 
 
 16 
 
 
 17 
 
 Home National Bauk, 
 
 a 
 
 a f 
 
 
 17 
 
 
 18 
 
 Chicago National Bank. 
 
 
 
 
 18 
 
 
 19 
 
 Continental National Bank, 
 
 / j 
 
 & *4 
 
 <r<r 
 
 19 
 
 
 20 
 
 Atlas National Bank, 
 
 / 
 
 / *~s 
 
 
 20 
 
 
 21 
 
 Fort Dearborn Nat. Bank, 
 
 
 U.J- c 
 
 to 
 
 21 
 
 
 22 
 
 Globe National Bank, 
 
 
 •s S 
 
 4f 
 
 22 
 
 
 23 
 
 Nat. Bank of the Republic, 
 
 
 
 
 23 
 
 
 24 
 
 Bankers Nat. Bauk, 
 
 
 
 
 94 
 
 
 25 
 
 Bauk of Commerce, 
 
 
 
 
 25 
 
 
 26 
 
 
 
 
 
 26 
 
 
 27 
 
 
 
 
 
 27 
 
 
 
 
 / 9 
 
 ??J 
 
 *j J 
 
28 
 
 HOW BUSINESS IS DONE. 
 
 The manager will take these balance tickets and enter the amounts in his proof opposite the name of the 
 bank whose number the ticket bears, each bank in the Clearing House being known in all matters by a number. 
 The "Bank Cr." column in his proof was made up before the clearings began from the tickets that were handed 
 
 Form No. 3. 
 
 CHICAGO CLEARING HOUSE. 
 
 SETTLING CLERK'S STATEMENT, 
 
 182 
 
 Debit 
 Balance 
 
 No. 
 
 BANKS. 
 
 Credit 
 Balance 
 
 BANKS DEBIT 
 
 BANKS CREOIT 
 
 
 
 1 
 
 First National Bank, 
 
 
 d 
 
 6 P X 
 
 do 
 
 
 3- / r 
 
 do 
 
 
 
 2 
 
 National Bank of America, 
 
 
 
 / ? 
 
 <r6 
 
 J 
 
 t ?■ j 
 
 * <? 
 
 
 
 3 
 
 Merchants' National Bank, 
 
 
 / / 
 
 Loo 
 
 
 
 ■<• c 
 
 
 
 
 4 
 
 Nor. Western Nat. Bank. 
 
 
 / 
 
 d r a 
 
 
 
 / d ^ 
 
 / / 
 
 
 
 5 
 
 Commercial Nat. Bank, 
 
 
 
 j 7 d 
 
 79 
 
 / J 
 
 f*7 
 
 fj 
 
 
 
 6 
 
 Union National Bank, 
 
 
 • 
 
 / 
 
 VoTp 
 
 
 
 
 
 
 
 7 
 
 Mer. Loan and Trust Co., 
 
 
 / <r 
 
 6> / P- 
 
 /j~ 
 
 / 
 
 / >/ 
 
 / 6 
 
 
 
 8 
 
 Com Exchange Bank) 
 
 
 
 f * 
 
 C 3 
 
 
 
 
 
 
 10 
 
 Metropolitan Nat. Bank, 
 
 
 a 
 
 1 d 6, 
 
 J~0 
 
 
 
 
 
 
 11 
 
 Hibernian Banking Ass'n, 
 
 
 
 7d 7 
 
 rd 
 
 / / 
 
 6 > J- 
 
 
 
 
 13 
 
 National Bank of Illinois, 
 
 
 / a 
 
 S 6 d 
 
 
 
 
 
 
 
 13 
 
 Bank of Montreal, 
 
 
 r 
 
 O 
 
 
 
 S~0 
 
 
 
 
 14 
 
 Hide & Leather Nat. Bank, 
 
 
 
 a-a 
 
 /i 
 
 
 7 7 
 
 /«/"• 
 
 
 
 15 
 
 Union Trust Co., 
 
 
 
 * 7 
 
 d / 
 
 d 
 
 / do 
 
 
 
 
 16 
 
 American Exch'g Nat. Bank, 
 
 
 / 
 
 / > p- 
 
 
 
 
 
 
 
 17 
 
 Home National Bank, 
 
 
 yf 
 
 
 
 
 
 / / j 
 
 /-2 
 
 
 
 18 
 
 Chicago National Bank, 
 
 
 
 
 
 
 
 
 
 
 19 
 
 Continental Nat. Bank, 
 
 
 / J 
 
 C 2d 
 
 J~0 
 
 / 
 
 / j 
 
 ds 
 
 
 
 20 
 
 Atlas National Bank, 
 
 
 / 
 
 / 2 <r 
 
 
 
 2 vT i. 
 
 
 
 
 21 
 
 Fort Dearborn Nat. Bank, 
 
 
 
 d j 6 
 
 ro 
 
 / / 
 
 / * <? 
 
 c / 
 
 
 
 23 
 
 Globe Nat. Bank, 
 
 
 
 J~f 
 
 Uf 
 
 
 f / 
 
 <V" 
 
 
 
 
 23 
 
 24 
 
 M 
 
 
 
 
 
 
 
 
 
 
 Total 
 Clearings: 
 
 
 Footings. 
 
 
 X 2 
 
 <? (7 ,r 
 
 2 j 
 
 / cf 7 
 
 / & d 
 
 .1 J- 
 
 
 
 
 Balance, 
 
 
 ■7 // 
 
 / 6, f 
 
 a 
 
 
 
 
 
 • 
 
 
 Proof, 
 
 I / J~7 
 
 / c a 
 
 J* 
 
 /*r* 
 
 / (, d 
 
 33- 
 
 
 him by the settling clerks when they entered. The " Bank Dr." column will now be made up from the "balance 
 tickets" just handed him. It is clear that these columns when footed should balance. 
 
 The settling clerk now takes his statement back to his bank and it has in Chicago until 12:30 P. M. in which, 
 if the balance is against it, to make it good. This it must do by sending the actual money to the Clearing House. 
 If the balance be a credit one it has until 12:45 P. M. in which to send for it. Money sent to meet, a debit balance 
 
HOW BUSINESS IS DONE. 
 
 29 
 
 is receipted for by the manager as he receives it and money to meet a credit balance is paid to the bank messenger 
 on presentation of the bank cashier's receipt properly signed. 
 
 Form No. i. 
 
 Credit Ticket. 
 
 LU 
 CO 
 
 o 
 
 O 
 O 
 
 o 
 o 
 
 BAN 
 
 K No. lO 
 
 Chicago, 
 
 ^.0,189. & 
 
 CREDIT 
 
 CHICAGO NATIONAL BANK, 
 
 *._ <L£J. 
 
 Amount of checks to Clearing House this day per Messen 
 
 Form No. 4. 
 
 Balance Ticket. 
 
 
 
 
 
 1 
 
 No. 18. Chicago Clearing 
 
 • House 180 
 
 Amount Receiv 
 Amount Brougl 
 
 
 
 
 
 ed, $ 
 
 
 
 
 
 it, $ 
 
 
 
 
 
 
 
 
 
 Debit, $ 1 
 
 
 
 
 Credit Balance due 
 
 CHICAGO NATIONAL BANK. 
 
 
 
 
 $ 
 
 
 
 
 
 
 
 Settling 
 
 Clerk 
 
 
 
 
 Form No. 5. 
 
 Receipt Ticket. 
 
 H 
 
 US 
 
 — 
 H 
 
 H 
 
 a 
 
 — 
 
 m 
 o 
 
 LU 
 
 Bank No / f i 
 
 T^eceived /£**»*— 
 
 CHICAGO CLEARING HOUSE- ±Z\AAJJ t J^&Jj&W 
 
 l/^^t/// ... T-^y^^^—^^-^.. ^//-e> te.<i*c*<-n^z J 
 
 in full for balance due the Associated Uanks tills day. Si \ 
 
 Forms No. 1, 2 and 3 are made up at the bank before leaving for the clearing house. No. 1 is complete and 
 from it the manager makes up the "Banks Cr." column of his proof-sheet. No. 2 is the sheet on which receipts 
 
30 . HOW BUSINESS IS DONE. 
 
 are taken for the vouchers delivered. The "Bank's Dr." column of No. 3 is completed at the bank. "Bank's 
 Cr." column is filled in by the settling clerk as the vouchers paid by other banks are delivered to him. The 
 difference between the footings of "Bank's Dr." and " Bank's Cr." columns is what his bank owes the clearing 
 house or the clearing house owes the bank. In the case shown in the cut, his bank owes the clearing house 
 $74,169.09. He then makes out a ticket to that effect and hands it to the manager. From these tickets the 
 manager completes his proof. 
 
 From this brief description of the workings of a Clearing House its utility and its advantages in the saving 
 of time as well as its security can readily be seen. The amount of vouchers going through the House daily is a 
 good index of the volume of business being transacted. Hence we see weekly reports in the newspapers of the 
 amount of clearings in all the large cities in comparison with the amount for the corresponding week in the 
 previous year. 
 
 WORTHLESS CHECKS. 
 
 A bank crediting a check drawn on another bank has no means of knowing whether the drawer has funds 
 on deposit sufficient to meet the check. It is sent, however, in the regular course of business to the clearing 
 house, and is received by the settling clerk and receipted for along with others in the same package. He takes it 
 to his bank when it is found that there are not sufficient funds on deposit to meet it. This must be determined 
 and the check returned to the bank from whom received by 2 o'clock, and a settlement is made for it between 
 the banks direct. 
 
 BANK MESSENGERS. 
 
 Notice to Cali,. 
 
 First National Bank. 
 
 189. 
 
 To do their collecting of notes 
 and drafts and to present for collection 
 
 or acceptance all kinds of paper the CHICAGO. m^^LsL 
 
 bank employs one or more messengers. M L^&tl'lS stlZ^'W-^/^ 
 
 tALL TO-DAY AND ft*X,- r A <>»*«■ AS STATED BELOW: 
 
 s 
 
 If a party on whom he is to call is out 
 
 or cannot be seen he leaves a notice, // Very Respectfully, 
 
 similar to the form given herewith, G..M. WILSON, cashier. 
 
 properly filled out. If it is a paper Dra(=t Drawn By s 
 
 requiring protest the bank's notary 
 will present the paper again or en- 
 deavor to do so, and then if not paid " __ $ 
 
 or accepted as the case may be he will Nqte Favqr Qp .%zsn^^Jtet/ju/... - S <^WW\ 
 
 protest the paper. £/ / x 
 
 If a draft is used for the purpose 
 of collecting an account instructions 
 should be given not to protest. See 
 page 37. 
 
 Checks offered in payment of Notes and Drafts MUST BE CERTIFIED, 
 BANK CLOSES AT 3 P. M. SATURDAYS AT 12 M. SHARP. 
 
 PRESENT THIS NOTICE TOTHE NOTE TELLER. WINDOW 2. 
 
 THE HALF-CENT. 
 
 It is the rule in business that in every computation where the result is one-half cent or more, a cent is 
 added, but if less than one-half cent it is dropped. This rule applies to each item in a bill, though the result 
 may make a difference of several cents in the footing. Although it must be admitted that many houses, in their 
 desire to show a spirit of fairness to their regular customers, adopt the rule of "Give and take" — that is, they 
 take the half cent one time and give it the next. But the general rule is as stated above. 
 
 Another rule in this connection is that the party doing the figuring, or whose duty it is to make the com- 
 putation, takes the half-cent in his own favor. Thus in figuring discounts, if the discount be $6.37 j£ he drops the 
 half-cent, or takes it, as the case may be. 
 
 BUILDING AND LOAN ASSOCIATIONS. 
 
 Somewhat akin to savings banks in their objects are building and loan associations, but they are conducted 
 on quite a different plan. Like savings banks they enable the earners of low wages to put aside their small savings 
 and by combining these with those of others, get that higher rate of interest which only an aggregation of capital 
 can command. As the title would suggest, one of their objects is to enable their members to build homes. For 
 this purpose, some of the members must be investors, that is lenders, and others borrowers. They exist by virtue 
 of special state statutes, and the rules governing their organization and management differ, but they have a general 
 similarity. 
 
 They are corporations and are managed by their officers. The par value of a share of stock is usually $100.00. 
 This is paid for in monthly installments of usually fifty cents per share. These monthly payments constitute 
 
HOW BUSINESS IS DONE. 151 
 
 the paid up capital of the concern and the money it has to loan. If one thousand shares of stock be sold, its 
 
 monthly income from that source would be $500.00. This money it loans to members only. Investing members, 
 
 that is, those who do not wish to borrow from the association, keep on paying until what they have paid and their 
 
 share of the profits amount to $100 00 per share, when the stock is said to have matured, and they are paid the par 
 
 value of the stock in cash, and the stock is cancelled. The time necessary for the stock to mature depends of course 
 
 on the amount of the monthly payment, and the profits earned by the association. It usually takes an association 
 
 requiring a fifty-cent monthly payment about ten years to mature its stock. In ten years a member would have 
 
 paid in $60.(0, and the balance of $40.00 would be his profit. The money paid in has been in use an average of 
 
 five years. It can thus be seen that the profits are large. It has the further advantage of enabling a person who 
 
 can save only fifty cents per month to make immediate use of it, and to the best advantage. The profits are made 
 
 by loaning to its members. A member, we will say, owns a lot clear of incumbrance, and desires to build a home 
 
 upon it costing about $1000.00. He will join an association, taking out ten or more shares of stock, the par value 
 
 of which will be at least $1000.00. He applies for and gets a loan from the association for $1000.00. For this he 
 
 gives as security his stock as a pledge, and a mortgage or trust deed on the lot. The money will be paid out 
 
 as the house is built and not before. For the loan he will be charged from 6 to 8% per annum, interest payable 
 
 monthly, and a premium of say, 25%. This premium may be deducted in advance, and only $750.00 paid him, or 
 
 as is often the case, the entire $1000.00 will be loaned him, and he must return T J of the premium each month for 
 
 one huudred months. One who has borrowed under these conditions would pay to the association, monthly as 
 
 follows : 
 
 Dues on ten shares @ 50 cents $5.00 
 
 Interest on loan of $1000.00 @ 6% 5.00 
 
 Premium T £ ff of total 2.50 
 
 Total $12.50 
 
 At the end of about ten years his stock should be matured, and that will just cancel his loan and his mortgage 
 will be released. Should it take ten years to mature his stock he has paid in $1,500 but he has had the $1000.00 
 and the use of it, and has had the privilege of paying off his loan in monthly installments. 
 
 In some associations the rate of premium charged is not fixed, but the members bid for it, and the one paying 
 the highest rate secures it. 
 
 Provision is often made that a member may withdraw by giving, say, thirty days' notice, and paying all his 
 obligations to the association. In that case he gets what installments he has paid, and usually 6% interest thereon 
 for the time it was in the association. 
 
 Loans are also made by some associations on the stock as a pledge. A member having stock on which he 
 has paid for several years may pledge it to the association, which will loan him a certain per cent, of its withdrawal 
 value. 
 
 Usually every three months what is called a new series of stock is started. This is to make the association 
 a perpetual institution, and to place those joining it at the same time on an equal footing. 
 
 CURRENCY CERTIFICATES. 
 
 Conservative bankers keep a certain amount of cash always on hand to meet any unusual demand that may 
 be made upon them. To obviate the necessity of oounting this money again and again, and to settle balances 
 against them in the clearing house, any legal tender currency may be deposited by a bank in the U. S. treasury or 
 any sub-treasury in sums of $10,000.00, or any multiple thereof, and there will be issued to it currency certificates 
 for a like sum. They are issued only in amounts of $10,000.00, and are negotiable among banks by endorsement. 
 The certificate contains the name of the bank to whom issued, and is signed by the treasurer and register of the 
 treasury, and if issued from a sub-treasury is countersigned by the assistant treasurer. The bills are engraved as 
 are other currency bills and contains blanks for the name of the bank to be written in. If desired, the bank 
 depositing the legal tender currency may have the identical currency deposited, laid aside, to be paid it or its 
 endorsee on presentation of the certificate. 
 
 These certificates are only used by the large banks in the larger cities. 
 
 CLEARING HOUSE CERTIFICATES. 
 
 In times of business depression it is often the case that depositors become suspicious of the financial reli- 
 ability of their bank. Thus in 1893, though in most cases without foundation, the confidence of the people in the 
 banks was shaken, and many depositors rushed to their banks to withdraw their deposits, thus making what is 
 called " a run on the bank " Few, if any banks keep on hand an amount of cash sufficient to pay all of their 
 depositors in full, for a portion of these deposits must be loaned to meet the expense of caring for the depositors' 
 accounts. When the bank is unable to pay its checks on demand it must close its doors. The failure of one bank 
 causes loss of confidence in banks in general. In such times the clearing house may pass a resolution permitting 
 any member to bring in its securities and collaterals on which it has loaned, and in their stead the clearing house 
 
32 HOW BUSINESS IS DONE. 
 
 will issue to it clearing house certificates. These certificates cannot of course be used in paying checks over the 
 counter, but they can be used in payment of the daily clearing house balances. Not a few of a bank's checks 
 come through the clearing house, and the certificates enable the bank to make use of its entire capital tq meet 
 current demands. 
 
 LETTER OF CREDIT. 
 
 A person going abroad will not desire to carry on his person in coin the amount he will need to meet the 
 expenses of his trip. He does not know just where aud when he will need a certain amount. Evidently some 
 instrument calling for money at all of the places he will visit, and requiring his endorsement to negotiate it would 
 be desirable. To meet this demand large city banks issue letters of credit, payable in all the large cities of Europe. 
 On the back of the letter is a list of the banks where money can be drawn upon it. The tourist pays his money 
 to his banker here and takes his letter. Arriving in London he is in need of 50^. He enters the bank of the 
 London correspondent named on the back of the letter, and draws his draft on the bank issuing the letter, and in 
 
 Letter of Credit. 
 
 mm 
 
 Gfo ^39. qfaLaf,. May 16. y^U 
 
 WMtomtn 
 
 c^Aes u&gi mw /g A'^gfi/g^ /b mcu /& 
 Martin Beem,~~ ~ „, w /^ 
 
 ,MMt iev Jga /<p efign a aged? wtffl /u#a ggwggfagfiu A?i mg Aum e/s 
 Fwe Hundred ffiowt&s Sterling, 
 
 /# wMm gf/gw/ #g Ateadge^ /# AaimiA/ /ta<uwign& m tumd as tgfmigr/, 
 ewJcit/ma mg ammff/ &> Aaet/ m mg vac/? g/ mud m/gJ C& 
 
 igemfiuUgwgn/ /urn iwtf /aJg hli a^a/f fin tifg ^(/y t$aiuf 
 
 w S£mdtw, titigt/twtf Mgig/'n mg aa/g <me/ nmu/gt g/ 4m gtga//, 
 w4(g4 mg gnaaag Maw mgg/ mm aag d&M 
 
 (wgtu cmiags aig /<? fig Aaca? fiy mg #ga4g? /gigg/y 
 
 ^yiyptgj/ma J>i ^2 — _*mt &/ aJ/gndgu, tgg /avg //g 
 
 mml /<? /go 
 
 , X3tmm?MgM, 
 
 ob- 50 °- (&0U4. grfgafenJ sgtvaMf, 
 
 'J*. 
 
 ^@tt4nt* 
 
 16*<Z> 
 
 C$M ^igatt </ m Aug jm/JSi/ January 1st, / ^S". 
 
 favor of the London bank. (Ju this draft the London bank gives him the money and endorses on the back of the 
 letter the amount paid on it. The letter thus shows at all times the amount due on it. 
 
 TRAVELERS' CHEQUES. 
 
 The American Express Company issue travelers' cheques which are designed to be used by travelers the same 
 as money. They are issued in denominations of $10, $20, $50, $100 and $200, with the exact equivalent of money 
 in the principal countries of Europe printed on the cheque. These cheques can be used as money and are accepted 
 by steamship companies, hotels, etc. without discount. A cheque not used will be redeemed by the company 
 The rates charged, if for use in foreign countries, is one-half of one per cent. They also issue a "Travelers' cheque 
 credit;" by this means any quantity of money up to the amount of the cheque can be obtained in the principal 
 cities of Europe. 
 
HOW BUSINESS IS DONE. 
 
 33 
 
 Traveler's Chko.it*. 
 
 is uracil untss cavur. 
 
 \ ■ ■ ■' bsHiEESsEsej 
 
 GgMaz^ 
 
 7*£sa 
 
 EXPRESS MONEY ORDERS. 
 
 All the express companies issue money orders payable in the United States and a few of them issue orders 
 that are payable at certain places in foreign countries. The method of purchasing these orders is very simple. 
 Give the agent your name and the name and address of the party to whom you wish the order payable and upon 
 receipt of the value of the order and the charges he will issue to you the order and a receipt for it. This receipt 
 you should preserve, for in case the order itself is lost you can secure the return of its value on presentation of the 
 receipt and the execution of an indemnity bond. No order is issued for more than fifty dollars. If it is de- 
 sired to send more than fifty dollars, more than one order must be purchased. The ease, simplicity and safety 
 with which the express companies handle this business has compelled the Post Office department to abandon its 
 old system of orders and adopt one similar to that of the express companies. The charges for express orders 
 are as follows : 
 
 Not over | 5.00.. 5 cts. 
 
 Notover 10.00.! 8 " 
 
 Notover 20.00 10 " 
 
 Notover 30.00 12 " 
 
 Notover 40.00 15 " 
 
 Notover 50.00 ...18 " 
 
 Notover 60.00 20 " 
 
 Notover 75.00 25 " 
 
 Notover 100.00 30 V 
 
 The orders issued by the different companies vary somewhat in form but they are substantially the 
 same. They can of course be deposited in the bank the same as other vouchers. They can when received 
 be re-sent and banks everywhere accept them from depositors without discount. The payee should endorse 
 an express order before depositing it. The United States and American Express Companies sell order books 
 containing 5, 10, 20 or 50 orders, so arranged that the purchaser may himself issue an order for an amount 
 from $1.00 to $50.00. On the left end of the order will be noticed the means used to prevent the raising 
 of the order. The order is so torn as to show the amount. This system is now used by the U. S. on their 
 postal orders. These orders are often made use of by people having no bank account. Money can thus 
 be sent from one side of town to the other when a check would be used if the sender had a bank account. 
 
 National Express Co.'s Money Order. 
 
 KATIOKM. EXPRESS CO. 
 MONCV OROCM. 
 
 REMITTERS RECEIPT. 
 keep IT 
 
 AMOUNT Of OROU. 
 tfClMdt. | fOTig*.. 
 
 ¥(• 
 
 '' 1 
 
 ■•mltl«r will ■••» t*<i« R*c»p* 
 to «Mm NsfunO of mmwmI «l 
 Ortf «r * totl. 
 * •lank »»«c*a ibovt w* N» 
 
 ft**** m I nk , w>n •r*v«M tntidvlMt 
 
 r«fv«d ikowrd I'm RtMip/b* '«•'. 
 
34 
 
 HOW BUSINESS IS DONE. 
 
 American Express Co.'s Money Order. 
 
 
 gmrnm0^fm0m^^ 
 
 F^MONEYi ORDER 
 
 
 as per conditions hereon 
 
 DOLURS. j 
 
 ^6] 
 
 <J\3 
 
 fUNCC. MlCjum, 5WiTii.il 
 
 -»«JJW 
 
 E9ae 
 
 i?- c "ai£ 
 
 isvcs 
 
 
 
 
 QkS» 
 
 •""*"-- 
 
 J?rr.£2 
 
 MAM 
 
 ,.™t»= 
 
 oe«M.««. 
 
 • » 
 
 »JJ c~t» r* 
 
 KMW 
 
 xtz;~- 
 
 ""*""-**""".'?yj 
 
 I miff" and by 
 tharaef mada payaMa M the art: 
 
 MLV ST AUTHORITY Ot TMC TrCAAWRCR OT TM« Com. 
 Orda»a p./.bi. in Europ* wiN b. c.th.d at vta loratcn 
 amathar aweb coa™ an by th* tctni 
 
 Payable in- 
 
 By- 
 
 AMERICAN EXPRESS Ok 
 
 MONCV OftOKH. 
 
 REMITTER'S RECEIPT. 
 
 KEEP IT 
 
 I _ 
 
 I AMOUNT or ORDCR. 
 
 I V. t. a. Canada. I Faraig*. 
 
 . «y Zfc' ^ & 
 
 'tze^ fu 
 
 Ord*r 'f io»t- 
 
 Blank ftpactM • 
 uh Of ft«mitt«r* -n« 
 
 * United States Express Co.'s Money Order. 
 
 J 833850 
 
 j 833850 
 
 ■i- jggwggrggg ^- 
 
 MONEY ORDER. 
 
 REMITTER'S RECEIPT 
 K^T. 
 
 ->jiAfTERTHR>t M0"JTTH5 FROM DAT E, THIS %*WtY gRDER Will BE P AID ONIY BO RDER OF THE SUPERINTENDE NT OF THE MONEY ORDER O EPT ij<- 
 
 Any erasure, alteration ormutilation of this Order renders it Voio 
 
 ^fL/^^iv#*^bw 
 
 «^L«dfcyj|__^/* I89.6 
 
 REMITTER WILL KEEP THIS 
 RECEIPT TO SECURE REFUND 
 OF AMOUNT OF ORDER IFLOST. 
 BLANK SPACES ARE FOR 
 USE OF REMITTER. ANDW1TH 
 HIS SIGNATURE IN 1NK.WILL 
 PREVENT FRAUDULENT RE' 
 ruND SHOULD TMJS RECEIPT 
 BE LOST 
 
 * This order when issued would be so torn off on the left hand side from the stub as to show only "not payable 
 for more than five dollars." 
 
 ABOUT REGISTERED LETTERS. 
 
 To register a letter or package it should be plainly addressed and also have on it the name and address of 
 the sender so that if it cannot be delivered it may be returned in thirty days. Present the letter or package 
 properly addressed to any Post Office for all Post Offices are registered offices and request it to be registered. The 
 fee is eight cents in addition to lawful postage and must invariably be prepaid. The postmaster receiving a registered 
 package issues a receipt for it and each clerk who handles it in course of transmission receipts for it to the one 
 from whom he receives it. In this manner it can be traced in case of loss. The government takes every precaution 
 possible to guard the safety of registered matter, but it does not absolutely insure it and in case the package is lost 
 through fire, theft or otherwise it will not re imburse the loser. When the package is delivered the receiver signs 
 two receipts, one on a card which is returned to the sender and the other on a slip of paper which is retained by 
 the department. Both receipts must be signed in ink and not in pencil. In case the letter or package is receipted 
 for by some one other than the addressee he must first sign the name of the addressee and then his own name. 
 
 POSTAL MONEY ORDERS. 
 
 A postal money order is a -draft drawn by one postmaster on another at a distant place. The orders are 
 numbered and a private letter of advice, giving full particulars as to number, amount, name of remitter and 
 of payee, is mailed by the postmaster who issues, to the postmaster on whom the order is drawn. The order 
 will not be paid until the letter of advice is received. When the order is presented it must correspond with 
 the letter of advice. To obtain a postal order the sender must fill out an application on a blank furnished 
 him by the office. The payee must be identified before the amount of the order will be paid to him. Postal 
 orders are issued for cash only. Not even certified checks are accepted. To deposit a postal order in a bank, 
 sign the receipt on the face and do not endorse it to the bank, for to obtain the money thereon, they would be 
 obliged to sign the receipt. In case they received, as thev do, a large number of them daily, it would entail a 
 vast amount of labor on them. 
 
 At the top of page 35 are shown the face and back of the application which must be filled out by one 
 desiring to purchase a money order for remittance to any part of the United States. 
 
HOW BUSINESS IS DONE 
 
 35 
 
 Face of Application 
 
 Stamp if iiulni Offlci 
 
 Cents 
 
 The Postmaster 
 will insert 
 
 (Form No. 6001) 
 
 NO. 
 
 the office drawn on, when the office named by the remitter in the body ol 
 this application is not a Money Ord er Office. 
 
 Spaces above this line are for the Postmaster's record, to be filled in by him. 
 
 Application for Domestic Money Order 
 
 Spaces below to be filled in by purchaser, or, if necessary, 
 by another person for him 
 
 Amount 
 
 Pay to I 
 Order of \ 
 
 _ Dollars Cents 
 
 (Name of person or firm for whom order is intended) 
 
 Whose 
 Address 
 
 is 
 
 Post ? 
 Office 5 
 
 ) No 
 
 State 
 
 Sent by 
 
 (Name of Sender) 
 
 Address ) 
 
 sender ) No Street 
 
 PURCHASER MUST SEND ORDER (ON BLUE PAPER) TO PAYEE 
 
 Back of Application 
 
 Fees for Money Orders drawn on 
 Domestic Form 
 
 Payable in the United States (which includes Hawaii 
 and Porto Rico) and its possessions comprising the Canal 
 Zone (Isthmus of Panama). Guam, the Philippines and 
 Tutuila, Samoa; also for Orders payable in Bermuda, British 
 Guiana, British Honduras, Canada, Cuba, Newfoundland, the 
 United States Postal Agency at Shanghai (China), the 
 Bahama Islands, and certain other Islands in the West Indies 
 mentioned in Resigter of Money Order Post Offices. 
 
 For Orders From $ 0.01 to S 2.50 3 cents. 
 
 From S 2.51 to S 5.00 5 cents. 
 
 From S 5.01 to S 10.00 8 cents. 
 
 From $10.01 to S 20v00 10 cents. 
 
 From $20.01 to $ 30.00 12 cents. 
 
 From $30.01 to $ 40.00 15 cents. 
 
 From $40.01 to $ 50.00 18 cents. 
 
 From $50.01 to $ 60.00 20 cents. 
 
 From $60.01 to $ 75.00 25 cents. 
 
 From $75.01 to $100.00 30 cents. 
 
 Memoranda of Issuing Postmaster: 
 
 Note. — The maximum amount for which a single Money Order may 
 be issued is $100. When a larger sum is to be sent additional Orders 
 must be obtained. Any number of Orders may be drawn on any Money 
 Order Office; but if Orders are drawn in excess of $200 on any one day 
 upon an office of the 4th class, notice of the fact by letter (or Form 
 6037) is to be promptly sent the Department by the issuing Postmaster 
 so that provision may be made for payment. 
 
 Applications must be preserved at the office of issue for four years 
 from date of issue. 
 
 (Edition Jan., 1909.) 
 
 Not all post offices are "Money Order offices ; " only offices doing a considerable business would be likely 
 to have funds on hand sufficient to meet these orders on demand. But one endorsement of an order is permitted 
 by law. An order being lost or destroyed, a duplicate may be obtained by either the sender or payee. Orders 
 must be presented within one year from the date of issue. After that time a duplicate must be obtained. To 
 avoid carrying money travelers often purchase postal orders on other cities and have them drawn payable to them- 
 selves. The department also issues international orders, that is, orders on the post-offices in foreign countries. 
 The rates are as follows : 
 
 $10.00 or less 10 cts. 
 
 Over $10.00 and not exceeding $20. 00 20 " 
 
 " 20.00 " " 30.00 30 " 
 
 " 30.00 " " 40.00 40 " 
 
 And so on to $100. 
 
 Orders are not drawn on Great Britain for more than $50.00. 
 
 EXPRESS COMPANIES. 
 
 There are four large express companies who do the bulk of the express business of this country. There 
 are also five smaller companies that do a considerable business. An express company makes a contract with a 
 railroad company for the express privileges of the road for a certain time, and for this pays a certain sum. Owing 
 to the rapidity with which goods are transported in this manner, and to the responsibility of the companies and 
 their promptness in delivery, it has grown to be a popular means of transportation, and higher rates are willingly 
 paid than for the slower means of freight. In the larger towns express matter is delivered at the consignee's 
 place of business. This of itself is an advantage over shipments by freight, for the railroads deliver at their 
 warehouses. 
 
 Iu addition to transporting merchandise and valuables the express companies issue money orders, collect 
 drafts, act as agent for the purchase of goods, distribute advertising matter, carry deeds and mortgages, delivering 
 the same on receipt of a certain amount ; in fact, they make themselves almost indispensable to the business 
 community. 
 
36 
 
 HOW BUSINESS IS DONE. 
 
 COST OF SHIPPING MERCHANDISE BY EXPRESS. 
 
 It is often desirable to know in advance the cost of shipping a certain article by express. If it is an article 
 of merchandise it is easily ascertained. As has been said, each express company publishes a rate book. This book 
 gives a list of all the towns on its lines, together with the rate per hundred on merchandise to that point. Less 
 than one hundred pounds will be proportionately more but if it be less than one hundred pounds the rate is graded 
 according to a scale which is also given in each rate book. This scale is as follows : 
 
 Graduated Table of Rates. 
 
 WHEN RATE IS re- 
 
 .40 
 
 .50 
 
 .60 
 
 .75 
 
 l.OO 
 
 1.25 
 
 1.50 
 
 1.75 
 
 2.00 j 3.50 
 
 3.00 
 
 3.SO 
 
 4.00 j 4.50 
 
 packages not over. . . 
 
 lib 
 
 M 
 
 lib 
 
 M 
 
 lib 
 
 25 
 
 lib 
 
 25 
 
 lib 
 
 25 
 
 lib. 85 
 
 1 lb. 25 
 
 1 lb:'25 
 
 1 lb. 25! 1 lb. 25 
 
 1 lb. 25 
 
 lib. 25 
 
 1 lb. 25] 1 lb. » 
 
 Orerllb. " 
 
 a 
 
 25 
 
 a 
 
 2.1 
 
 
 25 
 
 2 
 
 25 
 
 2 
 
 25 
 
 2 
 
 25 
 
 2 
 
 25 
 
 2 
 
 25 
 
 2 
 
 25 2 3d 
 
 2 81 
 
 2 80 
 
 
 301 a so 
 
 a 
 
 3 
 
 M 
 
 3 
 
 25 
 
 3 
 
 H 
 
 3 
 
 25 
 
 3 
 
 30 
 
 3 
 
 M 
 
 3 
 
 31 
 
 3 
 
 ■ 
 
 ;« 
 
 40 3 45 
 
 3 45 
 
 3 45 
 
 .1 
 
 45 3 46 
 
 3 
 
 4 
 
 •.','. 
 
 4 
 
 25 
 
 4 
 
 '.'. 
 
 4 
 
 31 
 
 4 
 
 31 : 
 
 4 
 
 3( 
 
 4 
 
 M 
 
 4 
 
 41 
 
 4 
 
 451 4 50 
 
 4 55 
 
 4 60 
 
 4 
 
 60 4 60 
 
 4 " ... 
 
 5 
 
 H 
 
 5 
 
 25 
 
 5 
 
 H 
 
 5 
 
 30 
 
 5 
 
 35 
 
 5 
 
 4( 
 
 5 
 
 M 
 
 5 
 
 11 
 
 r> 
 
 50 5 51 
 
 5 65 
 
 5 65 
 
 5 
 
 85 5 70 
 
 5 " ... 
 
 7 
 
 25 
 
 7 
 
 HI. 
 
 7 
 
 :i< 
 
 7 
 
 35 
 
 7 
 
 35 
 
 7 
 
 40 
 
 7 
 
 45 
 
 7 
 
 K 
 
 7 
 
 68 7 65 7 7C 
 
 7 75 
 
 7 
 
 75 7 88 
 
 7 " ... 
 
 lO 
 
 2.5 
 
 lO 
 
 » 
 
 lO 
 
 .•(i 
 
 to 
 
 35 
 
 lO 
 
 41 
 
 lO 
 
 It 
 
 lO 
 
 51 
 
 lO 
 
 OHIO 
 
 601O 75ilO 75 
 
 lO 901O 
 
 90 lO 100 
 
 lO " ... 
 
 15 
 
 H 
 
 15 
 
 ;i:> 
 
 15 
 
 id 
 
 15 
 
 35 
 
 15 
 
 41 
 
 15 
 
 ■ 
 
 15 
 
 «( 
 
 15 
 
 ill 
 
 70115 80115 85 
 
 15 10015 
 
 100 15 110 
 
 15 " ... 
 
 20 
 
 2r, 
 
 20 
 
 :« 
 
 20 
 
 :ii. 
 
 20 
 
 35 
 
 ao 
 
 45 
 
 ao 
 
 ■ 
 
 20 
 
 65 
 
 20 
 
 70.20 
 
 802O 902O IOC 
 
 20 U5.20 
 
 113 20 126 
 
 ao 
 
 25 
 30 
 
 25 
 
 N 
 
 25 
 30 
 
 35 
 35 
 
 25 
 30 
 
 35 
 35 
 
 25 
 30 
 
 40 
 45 
 
 35 
 
 30 
 
 50 
 55 
 
 as 
 
 30 
 
 60 
 M 
 
 25 
 30 
 
 70 
 
 75 
 
 25 
 30 
 
 75125 
 HUM 
 
 9025 10025 110 
 100 30 110I3O 125 
 
 25 125 25 
 30 145:30 
 
 130 25 150 
 
 25 " ... 
 
 150i3O 160 
 
 30 
 
 35 
 
 81 
 
 35 
 
 44 
 
 35 
 
 4i: 
 
 35 
 
 45 
 
 35 
 
 N 
 
 35 
 
 71 
 
 3ft 
 
 HO 
 
 35 
 
 90,(15 
 
 10(1 
 
 35 12035 135 
 
 35 15035 
 
 160 
 
 35 180 
 
 35 
 
 40 
 
 80 
 
 40 
 
 44 
 
 40 
 
 40 
 
 40 
 
 ni; 
 
 40 
 
 6l. 
 
 40 
 
 Tfl 
 
 46 
 
 M 
 
 40 
 
 100 40 
 
 1IK 
 
 40 125 lO 145 
 
 40 16540 
 
 m 
 
 40 200 
 
 40 - ... 
 
 45 
 
 Ml 
 
 45 
 
 40 
 
 45 
 
 41: 
 
 45 
 
 H 
 
 45 
 
 65 
 
 45 
 
 ■ 
 
 45 
 
 (to 
 
 45 
 
 10045 
 
 toe 
 
 45 12545 150 
 
 45 17545 
 
 2.X 
 
 4S 225 
 
 45 " .... 
 
 50 
 
 Ml. 
 
 SO 
 
 4.'i 
 
 80 
 
 45 
 
 50 
 
 .55 
 
 50 
 
 70 
 
 50 
 
 H 
 
 SO 
 
 100 
 
 00 
 
 100 50 
 
 101 
 
 50 125 SO 150 
 
 SO 17550 
 
 M 
 
 SO 225 
 
 50 - ... 
 
 55 
 
 ao 
 
 n 
 
 sr, 
 
 55 
 60 
 
 45 
 
 .10 
 
 55 
 60 
 
 50 
 
 55 
 
 55 
 60 
 
 60 
 65 
 
 55 
 60 
 
 75 
 80 
 
 55 
 
 00 
 
 100 
 
 no 
 
 55 
 60 
 
 110 
 115 
 
 55 
 60 
 
 110 
 120 
 
 
 
 
 
 
 
 55 - ... 
 
 
 
 
 6© - ... 
 
 65 
 
 M 
 
 65 
 
 ltd 
 
 65 
 
 ■ 
 
 65 
 
 TO 
 
 65 
 
 M 
 
 65 
 
 us 
 
 65 
 
 125 
 
 65 
 
 130 
 
 When the rate per lOO lbs. Is $2.00 or 
 
 65 - ... 
 
 70 
 
 35 
 
 70 
 
 mi 
 
 70 
 
 X 
 
 70 
 
 75 
 
 70 
 
 SO 
 
 70 
 
 125 
 
 70 
 
 135 
 
 70 
 
 140 more, charge pound rates for 50 lbs. or 
 
 over. But the 
 
 lO - ... 
 
 75 
 
 40 
 
 75 
 
 no 
 
 75 
 
 60 
 
 75 
 
 75 
 
 75 
 
 100 
 
 75 
 
 125 
 
 75 
 
 151. 
 
 7ft 
 
 
 ght must not 
 
 75 
 
 80 
 
 4(1 
 
 86 
 
 H 
 
 80 
 
 m 
 
 80 
 
 75 
 
 80 
 
 1 .11 
 
 80 
 
 125 
 
 80 
 
 150 
 
 80 
 
 loo; i 
 
 
 80 •• ... 
 
 85 
 
 411 
 
 85 
 
 ■e 
 
 85 
 
 m 
 
 85 
 
 75 
 
 85 
 
 
 85 
 
 125 
 
 85 
 
 150 
 
 8S 
 
 170 ** 
 
 
 
 85 - ... 
 
 100 
 
 « 
 
 lOO 
 
 60 
 
 too 
 
 60 
 
 lOO 
 
 75 
 
 lOO 
 
 KM 
 
 lOO 
 
 125 
 
 lOO 
 
 150 
 
 lOO 
 
 175 
 
 If less than $2.00 per 100 lbs., charge graduated rates. 
 
 If the rate per hundred be $3.50 look in the column in the scale headed $2.50, then down in that column to 
 the weight of the package opposite this will be found the rate. 
 The rate per hundred for merchandise is from Chicago to 
 
 Atlanta, Ga $3.75 
 
 Atchison, Kan 2.00 
 
 Augusta, Ga 4 75 
 
 Augusta, Me 3.00 
 
 Albany, N. Y 2.25 
 
 Austin, Tex 5.50 
 
 Bowling Green, Ky 2 50 
 
 Baltimore, Md 2.25 
 
 Boston, Mass 2.50 
 
 Cairo, 111 2 00 
 
 Columbus, 150 
 
 Cincinnati, 1.50 
 
 Cleveland, 1.50 
 
 Denver, Col 6.00 
 
 Des Moines, la 1.75 
 
 Davenport, la 1.25 
 
 Detroit, Mich, 1.25 
 
 Dallas, Tex 4.25 
 
 Evansville, Ind 1.75 
 
 Ft. Scott, Kan 2 75 
 
 Galveston, Tex 5.50 
 
 Grand Forks, N. D 4 25 
 
 Hartford, Conn 3.00 
 
 Hutchinson, Kan 3.75 
 
 Indianapolis, Ind $1.25 
 
 Jacksonville, Fla 5.00 
 
 Kansas City, Mo 2.00 
 
 Lincoln, Neb 2.75 
 
 Milwaukee, Wis 0.60 
 
 New Orleans, La 4.25 
 
 Newark, N. J 2.50 
 
 Omaha, Neb 2 00 
 
 Portland, Me 3.00 
 
 Peoria, 111 1.00 
 
 Philadelphia, Pa ....2.25 
 
 Pittsburg, Pa 1 75 
 
 Providence, R. 1 2.50 
 
 Springfield, Mass 2 50 
 
 St. Paul, Minn 2.00 
 
 Springfield, 111 1.00 
 
 Sioux City, la 2.00 
 
 Scranton, Pa '. 2.50 
 
 Salem, Mass 2.25 
 
 Topeka, Kan, 2.75 
 
 Toledo, 1.25 
 
 Wilmington, Del 2.25 
 
 Wheeling, W. Va 1.75 
 
 Washingtcn, D. C 2.25 
 
 The above are the rates on merchandise, if the goods are bulky, difficult to handle, or the risk be great, ,» 
 rate and one-half or double rate may be charged. 
 
 HOW TO SHIP BY EXPRESS. 
 
 Often one of the duties of an office apprentice is to attend to the shipping by express. It is therefore some- 
 thing that should be thoroughly understood by all. The smaller towns having only one railroad will probably 
 have but one express company, the one having the franchise on that railroad. In the larger cities all the com- 
 panies will be represented. When shipping from a town having but one company you must of course ship by 
 that company, no matter if the destination be on another company's line. In this case the first company will at 
 some junction point turn the package over to the second company, who will deliver it. In the larger cities where 
 the companies are all represented no company will accept the shipment except it be also represented at the des- 
 
HOW BUSINESS IS DONK. 
 
 37 
 
 Copy of C. O. D. Envelope. 
 
 American Express Co. 
 
 From 
 
 Collection. 
 r Ch's for Return of Money. 
 Total Am't to be Returned. 
 
 <?^zfi*/s>S^s4s 
 
 CHICAGO, ILLS., 
 
 On 
 
 c^ h^yy 
 
 .18. 
 
 <7Ajyir^ 
 
 tination. You must then be able to determine what company or companies are represented at the destination 
 points. If two or more are represented shipment can be made by any of them ; if but one, then by that one. 
 Shippers' guides are published and will be found in the offices doing much shipping. These give among other 
 things the name of the company represented in every town in the country. Each express company also publishes 
 and distributes to its patrons free of charge a "Rate Book" giving alphabetically by states the name of every town 
 10 which it is represented. Look through the rate book of each company until one be found containing the name 
 of the point of destination. If you are not a regular shipper and do not have a receipt book the agent will write 
 you a receipt on request, and in case of loss or damage to the goods it would be well to have it. 
 
 Having ascertained the company by which you can 
 make the shipment, fill out in their receipt book a blank 
 receipt for the package, leaving the column for the 
 signature blank. The company furnishes these receipt 
 books to its patrons free of charge. It also furnishes a 
 ' 'Call Card" which should now be hung out in a previously 
 agreed upon place, where it can easily be seen from the 
 street by the collector, who will call on his rounds for the 
 package. The package should be ready for instant delivery 
 and the receipt book ready for his signature. If the ex- 
 press is to be prepaid the package should be so marked ; 
 also so signified in the receipt book. In this event the 
 collector will take up the receipt book, and on the follow- 
 ing day, when the charges have been determined, a col- 
 lector will return the receipt book and collect the charges. 
 
 C. O. D. BY EXPRESS. 
 
 A package to be sent C. O. D. by express must be 
 
 plainly marked on the wrapper C. O. D. $ and the 
 
 receipt book should also be marked. Two bills or invoices 
 of the goods should be made out. Mark one Duplicate 
 and send it by letter to the consignee. Enclose the other 
 in a C. O. D. envelope, which will be furnished you # by 
 the company, and which should be delivered with blanks 
 properly filled out to-the collector along with the package. 
 The envelope is self-explaining as to what blanks should 
 be filled out. If you desire the consignee to also pay the 
 cost of returning the money to you, write "Collect" in 
 remark space at bottom of envelope, otherwise you must 
 pay it when delivered to you. This is a very reliable and 
 convenient method of transporting goods, for the goods 
 will not be delivered until paid for, and if not taken at all 
 they will be returned to you. 
 
 The object of sending goods C. O. D., is that the 
 consignor may be sure of getting his money before he is 
 obliged to deli\ er the goods. The express companies are 
 in this case both carriers and collectors. Privilege of 
 examining the goods before paying for them may be given 
 the cor/signee, but this privilege will not be given by 
 the company, until requested to do by the consignor. The 
 shipper must sign the request and it must be endorsed 
 by the agent at the point of shipment. The request also 
 releases the company from all losses incidental to such 
 e-amination. 
 
 C. O. D. 
 
 Billed to 
 
 Collect and Bet urn to 
 
 INSTRUCTIONS TO AGENTS. 
 
 BILL INCLOSED IS TO BE COLLECTED ON DELIVERY OF GOODS. 
 
 WRetnm proceeds with this Envelope, stitched wlUi twine and well 
 •euled with wax, by first express lifter payment. 
 
 Do not deliver the goods accompanying this bill until you receive the 
 pay therefor, or are ordered in whiting to the contrary by the shipper- 
 and such order endorsed by the office making the shipment 
 
 Be careful to notice what money joo receive and as far as practicable, 
 •end forward the same that is collected. Examine the invoice enclosed, and 
 follow tbx special inrtbcctions or the SHippxBs, if any are given on 
 Hi" bills. 
 
 If goods are refused, or the partlescannot be found, notify the'office 
 from whence received, within one week, with names and dates, and await 
 further Instructions. 
 
 Perishable property, snch as Oysters. Fish. Fresh Meats, Fruits, Llvo 
 Poultry, 4c., If refused by consignees, sell immediately to best advantage 
 for account of owner. 
 
 NOTICE TO SHIPPERS. 
 
 i — 
 
 If the money to be collected from the consignee on dellveiycf the 
 property described herein is not paid within thirty days rrom the date 
 hereof, the shipper agrees that this Company may return said property to 
 him at the expiration of that time, subject to the conditions ol its receipt 
 lor the shipment, that he will pay the charges for transportation both 
 ways, and that the liability of this Company for such property, while In 
 their ponesslon, for the purpose of making such collections, ahull be that 
 of warehousemen only. 
 
 ^pr- RS)MA.XtX.S. 
 
 6 7 ■■ 
 
 SENDING MONEY BY EXPRESS. 
 
 Money to be sent by express should be enclosed iu an euvelope furnished by the company. The consignee 
 must place the money in the envelope himself for the agent is not permitted to address the envelope, nor handle 
 or count the money. The company seem content to take L'S word for the contents. The agent will seal the 
 package with waxen seals so that it cannot be tampered with without breaking a seal. Each clerk through whose 
 hands it goes receipts for it so that in case of loss it can easily be traced. The charges for sending money in this 
 manner depends on the amount ind on the distance it is to be sent. The larger the amount the greater their risk, 
 and the longer the distance the greater the labor and cost of transporting. 
 
38 
 
 HOW BUSINESS IS DONE. 
 
 Envelope for Money. 
 
 MONEY ORDERS 
 
 are sold at all Agencies of this 
 Company In the United States 
 and Canada, for any amount 
 and without tin: formal applica- 
 tion Incident to the use of other 
 forms of Money Orders. 
 
 Cashed at oyer 20,000 places 
 
 .throughout the world. 
 
 Accepted on deposit by Banks 
 and Bankers and received by 
 Merchants, Hotels, Railroad 
 Companies and all classes of the 
 Business public. 
 
 Ad absolute and positive 
 security against loss In the re- 
 mittance of money through the 
 mails, as a receipt is given Remit- 
 ter which will insure a refund. 
 
 American Express Company. 
 
 From CHICAGO, state of ILL. 
 
 100 
 
 Jan. 1804. 
 
 Contents NOT COUNTED by Agent 
 and ENVELOPS SEALED IN 
 PRESENCE. 
 
 TO SHIPPER : Agents of the AM. EX. CO. ABE FOR- 
 BIDDEN TO COUNT THE CONTENTS OP OB TO ADDBES8 
 THIS ENVELOPE. 
 
 SHIPPEB must ENTER HEBEON the EXACT AMOUNT 
 ENCLOSED. FULLY ADDBESS the envelope. SIGN HIS 
 NAME In space provided for that purpose. AND OUM 
 DOWN THE FLAP. 
 
 SHIPPEB MU8T SEAL THE ENVELOPE with his 
 PBIVATE SEAL or the COMPANY'S OFFICE 8EAL. 
 
 Coin must not be enclosed In this envelope In excess or 
 SB IN SILVEB or S26 IN GOLD, which amounts must first 
 be placed In a e nailer envelope and securely sealed 
 before enclosing in this. LABOEB AMOUNTS MUST 
 BE BAOOED. 
 
 In general the cost of transporting $1,000.00 in currency is about one half of the cost of transporting one 
 hundred pounds of merchandise over the same route. The rate for $1,000.00 face value of silver is the same as the 
 rate on one hundred pounds of merchandise to the same point, but never less than $1.00 per $1,000.00. Bankers 
 who ship large amounts of currency and coin get a special rate. 
 
 SHIPPING BY FREIGHT. 
 
 One of the purposes for which railroads exist is the transportation of freight. The railroad company's 
 bill for this service is known as an "Expense bill." 
 
 It is immaterial to the railroad whether the charges on freight are paid at one end of the line or the 
 other, except .when the value of the goods shipped is less than the amount of the freight charges, in which 
 case the charges must be paid or guaranteed by the shipper, or some other responsible person, before the 
 goods start. The expense bill is receipted by the agent and delivered to the consignor or consignee, whoever 
 
 Expense Bill 
 
 ^oCHICAGO, MILWAUKEE &ST.PAUL RAILWAY C0.,Dr. 
 
 Transferred from Car Xo. 
 Received Payment, 
 
HOW BUSINESS IS DONE 
 
 39 
 
 pays the charges, as a simple receipt for the money, just as any merchant would receipt an invoice or state- 
 ment and deliver it to the purchaser on payment of the cash. 
 
 The railroad freight department does a cash business. Xo goods will be delivered except for cash or 
 ujK>n a responsible guarantee that the cash will be paid at once. This guarantee is often made by draymen 
 and expressmen who make a business of delivering freight, collecting at the place of business of the consignee 
 instead of at the freight office. 
 
 Prepaid Freight. Advanced Charges. 
 
 If the shipper wishes to pay the freight charges, he may pay the amount to the freight agent at point 
 of starting. The shipment will then be marked "Prepaid" or "Charges paid" and no collection made at 
 the destination point. Some firms which sell goods F. O. B. purchaser's location, however, prefer to have 
 the purchaser pay the freight and deduct the amount from his invoice. 
 
 When one railroad company turns a shipment over to another company after having carried the goods 
 a part of the way, the first company has a claim for freight charges for the work it has done. These charges 
 are ' ' advanced " by the railroad receiving the goods and the consignee must pay them. ' ' Freight and advanced 
 charges collect" is an instruction to the agent at destination to collect from the consignee the freight charges 
 on his road plus any "advanced charges." 
 
 Bill of Lading. 
 
 A bill of lading (abbreviated B/L) is a contract between the transportation company and the shipper 
 regarding the transportation of a certain shipment of goods. It is in effect a receipt given by the railroad 
 
 form of original straight bill of lading 
 
 (^/f^^y^ Raaroad Company 
 
 STRAIGHT Bill OF LADING-ORIGINAL-NOT NEGOTIABLE. 
 
 Skipper'* Nov.. /..... 
 Agent's No. 
 
 a-winoations and tariffs in effect on the date of issue of^lh 
 
 19— .... FROM 
 
 1» 
 
 IS 
 
 o o 
 
 it 
 
 «/>o 
 
 si 
 
 i! 
 
 the property described below, in apparent food order, except as noted (contents and condition of contents of packages unknown), marked, consigned and destined as in- 
 dicated below fwhieh said company aerees to carry toils usual place of delivery at said destination, if on itsroadS-otherwise to deliver to another carrier on the route to 
 said destination. It is mutually agreed, as to each carrier of all or any of said property, overall or any portion of said route to destination, and as to each party at any 
 time Interested in all or any of said property, that every service to be performed hereunder, shall be subject to all the conditions, whether printed or written, herein 
 contained (INCLUDING CONDITIONS ON BACK HEREOF) and which are agreed to by the shipper and accepted for himself and his assigns. 
 
 The rate of freight fr 
 
 
 
 
 
 to 
 
 
 
 
 
 ts per 100 lbs. 
 
 
 
 
 
 
 
 
 
 IF Time. Ut 
 
 IFl.tCllil 
 
 IF 2d Clan 
 
 IF Ru 1.26 
 
 IF 3d CI to 
 
 IF Rule 26 
 
 IF Rule 28 
 
 IFethCla.. 
 
 IF 5th C1.M 
 
 IF6thCla»s 
 
 1 IF Special 
 
 IF Special 
 
 
 
 
 
 
 
 
 
 
 
 Der 
 
 ••> 
 
 
 
 
 ZZZS^^Z 
 
 (Mail Address— Not tor purposes of Delivery.) 
 
 Consigned to.. 
 
 Destination. (jt&ftJJJZst.. „ State of iJfdX/- County of. 
 
 Route, „ Car Initial ... Car No. 
 
 / 
 
 L 
 
 I 
 
 DESCRIPTION OF ARTICLES AND SPECIAL MARKS 
 
 
 WEIGHT 
 
 (Subject to Correction) 
 
 CLASS OR 
 RATE 
 
 CHECK 
 COLUMN 
 
 Received $ _ 
 
 to apply In prepayment of the char- 
 ges on the property described hereon. 
 
 Agent or Cashier. 
 
 Charges Advanced: 
 
 Shipper. 
 
 c StuJnrt si pi ktr* . J 
 
 tign 
 
 Agent 
 
 (This Bill of Lading Is to be signed by the shipper and agent of the carrier issuing same.) 
 
 company and a contract making stipulation as to the freight charrea and defining and limiting the carrier's 
 liability. Bills of lading are made out in triplicate and signed by both shipper and railroad company. 
 
 Large shippers usually have on hand their own supply <>f bills of lading, and for their own convenience 
 fill them out in advance, all but weights, rates, and the railroad company's signature; this avoids delay at 
 the freight depot, as all the receiving clerk has to do is to sign and number the three forms, hand back two 
 copies, and retain one. Smaller shippers, however, use bills of lading supplied by the railroad company. 
 Shippers need not fill out the bills of lading themselves, unless they so desire. 
 
 As a matter of actual practice, weights and rates are usually not filled in by the freight clerk at the 
 time the freight is delivered to the depot by the shipper, but are ascertained later. Consequently the two 
 -?:;nies which the shipper receives do not show weights and rates. What a thing weighs is a matter of fact, 
 
40 
 
 HOW BUSINESS IS DONE 
 
 and the rate is a matter of law, so the omission of these two items from the forms returned to the shipper 
 is not material. Weight is subject to correction and the consignee may refuse to accept a shipment until 
 incorrect weights have been corrected or allowed for. Rates are prescribed by the Interstate Commerce 
 Commission and are published by the railroads in formal tariff schedules, called Freight Classifications; so 
 that if a rate has been incorrectly entered on a bill of lading this is also subject to correction by either the 
 railroad company or the consignee. 
 
 If the consignor wishes to prepay the freight, however, or if for any other reason it is necessary or 
 desirable that he know the weight and rate in advance, the receiving freight clerk will fill in the weight and 
 have the rate filled in by the proper official at the time of signing the bill of lading for the company. 
 
 A "Straight" bill of lading, a form of which is shown herewith, is always used when the goods shipped 
 are to go straight to the consignee. "Straight" bills of lading are made out for delivery to the consignee 
 and are non-negotiable. 
 
 The three bills which constitute the set are headed respectively "Original," "Shipping Order," and 
 "Memorandum." The "Original" and "Memorandum" go to the consignor. The "Shipping Order" is 
 retained by the railroad company. It is required by law that they be printed upon white paper, 8$ inches 
 wide. Reproductions of the three headings are shown below. 
 
 HEADINGS FOR THE THREE FORMS (STRAIGHT B-L) 
 
 A 
 
 Uniform BUI ol Lading— Standard lorm ol Straight Bill ol Lading approved by the Interstate Commerce Commission by Order No. 787 ol June 27, 1908. 
 
 Railroad Company. 
 
 Shippers No. _.. 
 
 STRAIGHT BILL OF LADING— ORIGINAL— NOT NEGOTIABLE. 
 
 Agents No.. 
 
 RECEIVED, subject to the classifications and tariffs in effect on the date of issue of this Original Bill of Lading, c 
 
 B 
 
 For use in connection with the Standard form ol Straight Bill ol Lading approved by the Interstate Commerce Commission by Order No 787 ct June 27, 1908. 
 
 Railroad Company. 
 
 Shippers No _ 
 
 THIS SHIPPING ORDER must be legibly filled in, In Ink. in Indelible Pencil, or in Carbon, and . 
 
 retamed by the A gent . Agents No. _ 
 
 RECEIVE, subject to t">e classifications and tariffs in effect on the date of Issue of this Shipping OMer, E.TC 
 
 For use in connection with the Standard form ol Straight Bill ol Lading approved by the Interstate Commerce Commission by Order No. 787 ol June 27, 1908. 
 
 Railroad Company. 
 
 THIS MEMORANDUM '« an acknowledgment that a bill ol lading has been issued and is not the Shippers No,. 
 
 Original Bill of Lading, nor a copy or duplicate, covering the property 
 named herein, and is intended solely for filing or record. Agents No. 
 
 RECEIVED, subject to the classifications and tariffs in effect on the date of the receipt by the carrier of the property described 
 
 In the Original Bill of Lading 
 
 Ere. 
 
 When the shipper receives the "Original" and "Memorandum" bills of lading signed by the railroad 
 company, he usually retains the "Original," and mails the "Memorandum" to the consignee as evidence 
 that the goods have been shipped. Should the consignee be unknown to the freight agent at the receiving 
 point, the agent would refuse to deliver the property except upon presentation of the "Original" bill of lading. 
 If for this reason or some other, the consignee should ask the consignor to send him a bill of lading, the con- 
 signor would have to mail him the "Original," retaining the "Memorandum." 
 
 Order Bill of Lading 
 
 An "Order" bill of lading is used when the shipment is consigned to the order of some party who is to 
 transfer it by endorsement to the party for whom the goods are intended. It is usually made out to the 
 order of the shipper himself, who wishes to make collection from the consignee before he will endorse the bill 
 of lading ("Original") over to him. This collection is usually made through a bank, by means of a draft 
 against the consignee. An "Order" bill of lading may, however, be made out to the order of some' one acting 
 as an agent for the shipper, or to some one who wishes to sell to a third party without unloading the freight 
 from the cars. Sometimes a jobber sends to a wholesale house an order which is to be shipped direct to a 
 
HOW BUSINESS IS DONE 
 
 41 
 
 customer from whom the jobber wishes to collect before delivery. In this case the wholesale house would 
 ship direct to the town of the jobber's customer, but would consign the goods to the order of the jobber, who 
 would then draw upon his customer, and when the money was forthcoming would endorse the bill of lading 
 over to him. 
 
 The three bills which constitute a set of "Order" bills of lading are headed respectively "Original," 
 "Shipping Order," and "Memorandum," the same as the "Straight" bills of lading. They differ from the 
 "Straight" bills of lading in the following particulars: 
 
 Color. — The "Original" must be yellow. The other two must be blue. 
 
 " Consigned to Order of" must appear in place of the words "consigned to." 
 
 Extra Spaces must be allowed for the name and address of the person for whom the goods are intended, 
 the space for the name being preceded by the word "Notify." It becomes the railroad's business to notify 
 this person of the arrival of the goods, so that he may take steps to pay the shipper for them (usually through 
 the bank, as previously stated) and get the bill of lading. 
 
 An Extra Paragraph must be inserted in addition to all that appears cm the "Straight" form, which 
 reads: "The surrender of the original ORDER bill of lading properly endorsed shall be required before 
 the delivery of the property. Inspection of property covered by the bill of lading will not be permitted unless 
 provided by law or unless permission is endorsed on the original bill of lading or given in writing by the shipper." 
 
 Notice of Freight Received. 
 
 When the shipment arrives at its destination the agent at destination either mails to the consignee 
 a "notice of freight received" printed on the back of a postal card, as shown, or delivers at his office a printed 
 
 Great Western Transportation Co. 
 
 Station <&&£& '... 
 
 isfrtUA^ 
 
 nThe following property consigned to you from 
 has arriye'd/at this depot and is now ready lor delivery. 
 
 ARTICLES 
 
 -^d^ceAyteJ 
 
 Which is now at your risk. Please call, pay charges and ren>e*£ property within 24,/iours or same will bv 
 subject to storage or delivery to warehouseman. 
 
 .Agent. 
 
 TO AGENT G. W. T. CO. 
 
 Deliver the above freight to. 
 
 .who is hereby authorized to receipt for same. 
 
 Consignee. 
 
 N. B;— Unless you call for the freight yourself, please fill out and sign the foregoing order. 
 
 form similar in content. The consignee, immediately upon receipt of a notice of freight received, will give 
 the notice to his drayman with instructions to call for the package. 
 
 FAST FREIGHT LINES. 
 
 Under the old plan of shipping if the route lay over several lines of road when the freight came to the end 
 of one line it was transferred to another car on the next line. To expedite shipments separate corporations were 
 organized for the purpose of furnishing cars and doing business on several lines of road. By this means quicker 
 time could be made than by the railroads direct. Desiring to ship by fast freight, ascertain the line doing business 
 over the route in contemplation and mark the package via that line. These fast freight lines operate their own 
 cars, and make favorable arrangements with the railroads over which they run for hauling them. They are 
 understood to be prosperous institutions. It is said that many of the railroads are interested in them, and for this 
 reason they secure favorable terms. Nothing is saved in the cost of shipping this way, but it is usually more 
 expeditious. Orders received to be sent by "fast freight" are understood to be by one of these lines. They load 
 cars for large towns which go through unbroken on fast trains. 
 
42 
 
 HOW BUSINESS IS DONE. 
 
 CORRESPONDENCE. 
 
 Nothing is of more importance to the average business house than the manner in which its correspondence 
 is carried on. Especially is this true of the wholesale house where a large amount of its business must be done in 
 
 this manner. 
 
 Cabinet Letter File. 
 
 Business men have found that it is necessary 
 to preserve and file for future reference not only every 
 letter received but a copy of every letter sent. In this 
 way they have a complete duplicate of both sides to a 
 correspondence. In case any dispute should after- 
 wards arise as to what was written in this connection, 
 they are not in doubt for a moment. We will first 
 consider the letters and orders written by us : In 
 case a typewriter is in use it should contain a " copy- 
 ing ribbon." If the letter be written with a pen then 
 it should be done with copying ink. When written 
 it is then ready for copying in the "letter book." 
 This is usually a book of blank tissue paper leaves. 
 
 Drawer. 
 
 Its leaves should be paged and it should contain 
 
 either in the front or back a good vowel index. To 
 
 copy a letter moisten the first vacant leaf in the letter 
 
 book, first placing an oiled sheet under it to prevent 
 
 the moisture from going through to the leaf below, 
 
 and on this moistened leaf lay the letter face down. 
 
 It is well to lay an oiled sheet or common blotter on 
 
 top of this. Close the book and put it in the press, 
 
 leaving it there but a few moments will be sufficient 
 
 if it be screwed down tight. To moisten the leaves as 
 
 described above there are many devices, among them 
 
 a camels-hair brush and moistened cloths. Care must be taken to get the proper amount of water on the leaves. 
 
 If too much water be used the ink will run and the letters will be blurred and indistinct. If an insufficient 
 
 amount be used the copy will be dim and in some places wanting. A little care will soon determine the moisture 
 
 proper fcr the ink and paper you use. Several 
 A Filer. letters may be copied at the same time and in 
 
 the same manner. When a letter is copied, or 
 at the earliest convenient time, it should be 
 indexed. 
 
 In many houses the invoices are written 
 in copying ink and copied in this manner, in a 
 large book with ruled columns. This serves as 
 a sales book and has the advantage of being an 
 exact reproduction of the invoices. Footings 
 are carried along and postings made from this 
 the same as from au ordinary sales book. 
 
 Sometimes it is desirable to make a 
 number of duplicate copies of the same letter or 
 document. If the ink used be good it can be 
 done in the manner just described or it may be 
 done by the carbon process. 
 
 FILING CORRESPONDENCE. 
 
 The correspondence received by a house 
 after being answered is filed according to some system by which it may be easily located in case it is needed for 
 reference. There are many systems in vogue but undoubtedly the cabinet system is the most convenient and 
 
HOW BUSINESS IS DONE. 
 
 4S 
 
 satisfactory. It consists of a cabinet of as many drawers as the size of the correspondence demands. In each 
 
 drawer is a "filer" with leaves indexed by letters on the front edge. A letter is filed by placing it unfolded 
 
 between the proper leaves. This is usually determined by the initial letter of the writer's name. Thus a letter 
 
 written by Thomas Arnold 
 f ransfer Case. wou l d be filed uuder the A 
 
 leaf and so on : but if the 
 cabinet be a large one it will 
 be still further subdivided, 
 and a glance at the index 
 may show that it should be' 
 
 filed under the Arn leaf. 
 When the filer completely 
 fills the drawer of the cabi- 
 net it is detached therefrom 
 by means of a simple device 
 at the back, and it is then 
 lifted out and into a trans- 
 ferred volume and a new 
 filer is put into its place in the cabinet. These transfer cases are numbered consecutively. On the bottom of the 
 drawer of the cabinet is pasted a blank record to be filled out showing to what numbered "transfer cases" each of 
 its filers has been transferred. This is to assist in finding a letter received a considerable time since. This 
 record also shows the day when the first letters were placed in each filer and the date of its transfer. By this 
 means one can lay his hands in an instant upon letters received years before. 
 
 Not only are letters filed in this manner but frequently a drawer is set aside and labeled for •* Paid Bills," 
 " Receipts," etc. 
 
 FILING ORDERS. 
 
 Nothing is more important in the matter of records than that every order received should be filed for future 
 reference. An order is the customer's proposition ; the filling of it, your acceptance of that proposition. There 
 are many plans and devices in use for this purpose. Many use the ordinary cabinet letter file system, one or more 
 drawers being set aside for this purpose. 
 
 When the orders are taken verbally by salesmen, either in the store or at the customer's place of business, 
 they can be taken on uniform blanks prepared for that purpose. One of the most satisfactory systems of this kind 
 is the Page-McCleary system. It is generally used in the wholesale grocerj', hardware and drug businesses, and 
 also in the printing and bookbinding trades. The order is copied on to a blank form as shown in the illustration. 
 After being Ok'd by the credit man it is put with others in a patent holder, and in this shape goes through all 
 necessary hands until it is returned to the office from the shipping department. From it the bill clerk makes his 
 bill and extends the amounts in the blank. The blank with all information it furnishes is taken from the holder 
 and placed in its proper position in a patent binder, which serves as a salesbook, and from it the item is posted 
 direct to the customer's account in the ledger. But one order is entered on a sheet. 
 
 Order Holder. 
 
 The order, as received from the salesman on the sheet (which he carries with him), is registered by name 
 and number only in a register. The purpose of the register is to keep track, where necessary, of the time taken 
 to ship goods and to guard against loss of order or neglect to bill same. 
 
 The order sheet is then placed in the holder which makes a temporary book to be used while the order is 
 being selected, shipped and billed. The holder protects the sheet from being torn, soiled or lost. After the 
 goods are selected by the stock clerk and checked in the column provided on the order sheet, weights entered 
 and necessary notations made by selector and shipping clerk, the holder and order sheet are returned to the office, 
 and the bill is made ; the extensions are also made on the order sheet and footed, and the bill verified. The bill 
 clerk then marks the date billed in proper space on sheet. The order sheet is now taken from the temporary 
 holder and put in the permanent binder. In this permanent binder, (which is equivalent to a day book ) the 
 finished business of each day follows in consecutive order. The binder is paged, and the charges are made directly 
 from this binder into the ledger, or in exceptional cases are journalized and then posted. 
 
44 
 
 HOW BUSINESS IS DONE. 
 
 1&3_ 
 
 &L 
 
 Shipping Blank, 
 country department. 
 
 Date Sold 
 
 7yf — ~ ^s^/> WHOLESALE GROC 
 
 WM. D. BROWN 8c CO. ,A v"~ 
 
 WHOLESALE GROCERS. ~ <^rZ^Pc/^j^ 
 
 TOWN «no STATE 
 SHIP BY_ 
 
 <%7*,»An^ v ^ 
 
 j^-z ^^c^ 
 
 lX 
 
 QUANTITY 
 
 f^ff VSJ^p^ 
 
 REGISTER NO. 
 
 ^" X^ -r^ 
 
 7<faw/- 
 
 3/*- 
 
 /^ 
 
 ^ 
 
 ^kz_ 
 
 DATE BILLED 
 
 $L 
 
 LFDOER FOLIO 
 
 />*££/. 
 
 #^;: 
 
 M" 
 
 _t£ 
 
 3>f 
 
 4M 
 
 Ml. 
 
 40 
 
 dZf 
 
 iX 
 
 %2 
 
 <*M,j /&r m ^ 
 
 .stf ^ny 
 
 /0 
 
 _^£ 
 
 4- 
 
 \X 
 
 /& 
 
 ( /f /y. dfc, ( j/ J kz/nJ/ 
 
 ^£ 
 
 
 M 
 
 ^ 
 
 */- tf.y 
 
 4a> 
 
 
 '+ 
 
 M 
 
 r,f;?J//( SmJt ( J( /0Us7/ms#/ 
 
 * *, fimuJ>, 
 
 yfa*J%> yffaj K A^ra /T, 
 
 7Z/t,/:jk 
 
 jj^_ 
 
 Amount Forward 
 
 2,3 1 <?. 
 
 Thus we hare taken the original entry of the salesman, added to it the necessary credit notations, the check 
 marks of the selector and shipper, the extensions of the bill clerk and marked the date of bill. We have then 
 
 entered it in a day book mechanically 
 Permanent Binder. by making it a leaf of the binder. 
 
 This describes the course of hand- 
 ling an ordinary order. Where orders 
 are shipped incomplete, or where there 
 are alterations or substitutions, or 
 where the order is taken for future 
 shipment, or to be manufactured, there 
 are various modifications of this sys- 
 tem ; also in very large houses where 
 the business is separated into depart- 
 ments, where each salesman's business 
 is kept separate, where profits are fig- 
 ured from day to day, where the bus- 
 iness is divided alphabetically, or into 
 territories, there are still other modi- 
 fications and changes necessary ; and 
 also in houses of the largest calibre 
 there are certain conditions and mod- 
 ifications to the system to enable all work to be completed, posted, profits figured, etc., before the order is placed 
 in the binder. 
 
HOW BUSINESS IS DONK. 
 
 45 
 
 COMMERCIAL AGENCIES. 
 
 Manufacturers, wholesalers and jobbers have frequent occasion to know the worth and credit standing of 
 their customers, for much of the business in these lines is done on credit. Other things being equal the house 
 that makes no bad debts is the more successful. To place in their hands as full and complete information as 
 possible touching the responsibility, credit and prospects of success of their customers is the business of Commer- 
 cial Agencies. These agencies are vast concerns extending over the entire couutry and having agents or reporters 
 in every city and in almost every village. Traveling reporters are also employed who are constantly collecting 
 information in reference to the standing of persons asking for credit for merchandise. This information is arranged 
 and classified by states and districts and published in large quarto volumes. A person desiring such information 
 may become a subscriber to the agency upon the payment of a certain fee. He can subscribe for a certain 
 district or districts or for the United States, in which case the charge is greater. When he becomes a subscriber 
 the Agency loans him a volume of its reports covering the territory for which he has subscribed. This report does 
 not give opposite a firm's name its reported standing, but instead there will be found one or two letters or figures. 
 The meaning of these letters and figures is determined by reference to a key. There is not only economy in the 
 plan but it serves to keep the information for the exclusive benefit of the subscriber. In addition to a volume 
 of reports a subscriber is entitled to a certain number of special reports on firms about whose standing he wishes to 
 know more that given in the reports. Applications for special reports are made on blanks furnished for that pur- 
 pose and are signed by the number of the subscriber instead of by his name. The object of this is, if the request 
 should be lost or mislaid and fall into the hands of others, not even the one inquired about could tell who had 
 asked for the report. 
 
 The reports of the Commercial Agencies are in general so reliable and fair that a subscription to one is 
 considered by wholesalers and manufacturers as a necessary item of expense for the year. The reliable debtor is 
 anxious to secure a "good rating" with the agency, and in most cases does not consider it impertinent when 
 asked by an agency reporter to make a detailed statement of his business affairs. Some agencies also do a genera \ 
 collecting business. This they can do economically through their vast army of agents that are to be fmn i 
 everywhere. 
 
 BILLING. 
 
 When a bill of goods is sold or when services, especially professional services, have been rendered, it ih 
 customary for the creditor to render the debtor an itemized statement or bill of his charges. This is called a bill 
 or invoice. When it is for goods sold either term applies, but if it be for services rendered it is called a bill. 
 
 Bill. 
 
 
 "^Ai^^/y^^Ay -..zo 7 ?' /^9^) 
 
 &4vca^U^. -^^U^^c^/ J%^LA^UA/ V>.1&\ 
 
 TERMS 
 
 
 
 (&> A*- 
 
 nn//r tn/X'lst /P,/,i i,u 
 
 
 sQJ/aA '^ 
 
 f'/'oy, *7/or t '/'op, '/'* '<£, '//e/, ■ /&oy 
 
 aJ (o< 
 
 /Z*/tf ?U/\ 
 
 
 2,0/ 
 
 \ /. 
 
 Z^i ^o 
 
46 
 
 HOW BUSINESS IS DONE. 
 
 BlI,!,. 
 
 *&M&, 
 
 @WC444M.—dkdLa,&e/.„ _l^_^-^a2i^fe2a^ 
 
 01 ixmfflgwgN&m, 
 
 .^ jOn-f i t^ ,. , " '» 4 
 
 1 • ^'" ^^"" F^-rrw.^ I 
 
 Terms? 
 
 J@SMA0JS@MST. 
 
 'thy iMr/rfeyj/Tess Chajyes tint/ Esrh/mqm 
 
 a£el 
 
 C'JQ 
 
 ® 
 
 /_^J 
 
 J 
 
 / 
 
 &Js£lU S^r. &&22/ 
 
 dpi 
 
 tjJVjwdstn^/- — 
 
 //Z4> 
 /JSo 
 
 
 
 72r? 
 
 4/ 
 
 <?/ 
 
 Houses usually have bills with printed heads. If the bill has many items a longer bill will be used. Bills are 
 cut from foolscap paper, size 14x17 inches, their width being §% inches. When they are cut two from a sheet they 
 are called halves, when four from a sheet they are called fourths, and when six from a sheet, sixths. The printed 
 heading will contain the name, address, and usually the business of the creditor, and a blank space for the date, 
 name and address of the debtor, also the terms on which the goods are sold. If the bill be for services rendered at 
 different times the columns at the left of the bill should be used for the dates on which the services mentioned on 
 the same line were rendered. If the bill be for goods sold the small column at the left should be used for the 
 number of articles. The first column to the right is for the amount of each item, and the second column for the 
 total. The bill should state in the body the price of each item per pound, barrel or otherwise. If goods are billed 
 by the pound and there are several packages of various weights, the weight of each package should be shown in 
 
 MEMORANDUM OF CREDIT. 
 
 CHICAGO, tf9<y£ #/£ 189/ 
 
 J. W. Butler Paper Co. 
 
 WHOLESALERS AND JOBBERS. 
 
 218 MONROE STREET 
 
 To Mr. g*(^faZ4^Dr. 
 
 1 &'&&6C'rfL€Z'ia& &-?a- 
 
 VSs 
 
HOW BUSINESS IS RONE. 
 
 47 
 
 detail and also the total. In general the bill should be so clear that even a stranger to the transaction could inter- 
 pret it. It should also be in such form that the debtor could easily verify it. When the bill is paid it should be 
 receipted by the creditor on the bottom. 1 bus the bill and its receipt go together and should be carefully filed for 
 future reference. Bills from importing houses are usually more or less complicated and we have shown two of them. 
 
 CREDIT MEMORANDA. 
 
 It sometimes happens that a seller may have billed goods to.a buyer at a higher rate than he should have 
 done ; or it may be the goods are damaged or not up to the grade expected ; or some of them may have been 
 returned. In such cases the seller will send the buyer a credit memorandum of the amount he acknowledges as 
 due the buyer as an offset or credit. The object is to keep the buyer's account exactly the reverse of the sellers. 
 When the goods were sold the seller charged the buyer the full amount of the bill, to save changing this charge 
 on the ledger, he gives the buyer a credit for the correction. The buyer should therefore credit the seller with the 
 full amount of the bill and debit him for the amount of the correction. Houses doing much billing usually have 
 credit memoranda with printed headings, and these are usually printed on paper of a color other than that of 
 their bills. 
 
 SXilEMKXT. 
 
 #Chicago._ju 
 
 18921 
 
 L^23^2 
 
 >*/J~ 
 
 InAccounrwim 
 
 Peoria & Kinzie Sis., 
 
 ■*7*<fi. 
 
 j2± 
 
 uc «a 
 
 Y 
 
 _ ^rft/t 
 
 -izj: 
 
 ±a: 
 
 Z-2 
 
 ^l 
 
 ^x 
 
 ^C 
 
 O'^f^Ssl'T. 
 
 •J&f 
 
 j3* 
 
 
 i4^_ 
 
 (^r-e^^^y 
 
 .ill 
 ft 
 
 11 
 
 §9c 
 
 -RJ-fc 
 
 :s 
 
 /& 
 
 ^A 
 
 7 
 
 jO- 
 
 .iT<g 
 
 ^ O 
 
 jm: 
 
 -rs 
 
 ^ o 
 
 > n 
 
 £Zj£. 
 
 -?* 
 
 / c / 
 
 ->3 a 
 
 /<£j: 
 
 £_g_ 
 
 c^-y 
 
 J^ 
 
 <?3 
 
 &3- 
 
 MONTHLY STATEMENTS. 
 
 Promptly on the first of each month the merchant sends to each of his debtors a statement of his account, 
 showing the date and amount of each purchase during the past month. It is a summary of the bills sold and the 
 payments made thereon during the month. Retailers do not always render an itemized bill at time of each pur- 
 
48. 
 
 HOW BUSINESS IS DONE. 
 
 chase ; in that case the statement should contain a detailed list of the articles purchased together with date of 
 purchase of each article and its price. This is called an itemized statement. When a check is sent in settlement 
 of the balance of the statement, the statement should be sent -along with it to be receipted and returned. 
 Statements usually start with the balance, if any, due from last month's account. Some firms print on the bottom 
 of their statements a notice that the statement is sent whether the balance is due or not, that the debtor may make 
 comparison with his account and that for so much of the account as may be due they will be pleased to receive 
 remittance. Sometimes also the statement is made that unless a remittance be received for the balance by a 
 certain date they will draw upon him for the balance. Promptness and regularity in issuing monthly statements 
 assists materially in the prompt collection of accounts. It is therefore promptly attended to by the systematic 
 business man. 
 
 CORPORATIONS. 
 
 Many business enterprises which cannot be successfully conducted by the individual or a partnership, can 
 be by a corporation. A partnership is dissolved by the death of a partner, but a corporation is not dissolved by 
 the death or transfer of the stock of a shareholder. Business enterprises requiring a large amount of capital, and 
 consequently the co-operation of a large number of investors cannot be conducted as a partnership. A partner is 
 personally liable for the debts of a partnership, hence there would be a timidity on the part of capitalists to invest 
 in a large undertaking organized as a partnership. On the other hand a stockholder is not usually liable for the 
 debts of the corporation if his stock be fully paid. In some States he is liable to be assessed an amount equal to 
 the amount of his stock. This is called ''double liability." 
 
 Certificate of Stock and Stub. 
 
 S-U^ 
 
 @U*L 
 
 .Jwm.adomcAaiU^U^ 
 
 
 ORGANIZATION. 
 
 Corporations are organized for almost all purposes for which men engage in business. They may be organ- 
 ized by special act of the legislature, or in the manner described in a general law for that purpose.' Many State 
 constitutions prohibit their legislatures from granting charters by special act. While the laws of various states 
 differ, yet the usual method of organizing a corporation is for three or five persons to agree on the organization 
 they wish, its name, amount of capital required, place of business, nature of business, etc. This they set forth in 
 an application to the Secretary of State on a blank furnished by that officer. He then issues to the organizers a 
 commission entitling them to solicit subscriptions for the stock of the proposed corporation. When the stock is 
 fully subscribed for they call a meeting of the stockholders to elect a board of directors, etc. 
 
 The organization being completed, the commissioners make report of their doings in a written report duly 
 acknowledged, to the Secretary of State, who then issues a charter which is recorded in the office of the recorder 
 of deeds. The corporation is then authorized to do business. 
 
 VOTING. 
 In voting each stockholder has as many votes as he holds shares of stock. Consequently if one holds a 
 majority of stock he can control an election and he is said to hold a controlling interest. In some states in voting 
 for directors, if there are three directors to be elected, and a stockholder has 'ten shares, he has thirty votes, and 
 these he can vote for one candidate, or distribute them as he likes. This is called the cumulative system, and is 
 to give the minority a representation. 
 
HOW BUSINESS IS DONE. 49 
 
 OFFICERS. 
 
 The board of directors are elected by the stockholders, but the directors elect their owu officers. The cor- 
 poration is managed by the board of directors. The by-laws usually describe the duties of each officer. 
 
 STOCK. 
 
 When a subscriber for stock pays for the same according to agreement, there is issued to him one or more 
 certificates of stock. These certificater. are the only evidence the holder has of his interest in the corporation. 
 They may be sold and transferred as personal property. When sold they are endorsed, giving the secretary the 
 power to make a record of the transfer on the books of the company. The old certificate is taken up by the sec- 
 retary, and pasted on the stub of the stock book from which it was originally torn. A new certificate is then 
 issued to the purchaser of it. 
 
 When stock in a company is subscribed for, it may be agreed that the shareholder is not to pay the full 
 value of the stock. Thenar value of stock is the face value of it. The market value is the price at which it will 
 sell on the market usually quoted at a certain per cent, of the par value. 
 
 Preferred stock is stock that has a preference over other stock in the matter of dividends. That is, dividends 
 are paid on it up to a certain per cent, whether the ordinary stock is entitled to any or not. 
 
 Common stock is stock that is not preferred. 
 
 There are many reasons for issuing preferred stock : a company may be on the eve of bankruptcy, and in 
 order to induce outside capital to come to their assistance they increase the capital stock, making the new stock 
 preferred. 
 
 Transfer. 
 
 ^5^^^ ^k^^i^l^S^^^ 
 
 
 ^Mdnt&d&Mw 
 
 Watered stock is that of a corporation capitalized for more than its assets are actually worth. 
 
 This is a reprehensible practice, and cannot but deceive all subsequent holders of the stock. Sometimes 
 the Company's franchise provides that when their dividends exceed a certain per cent, of the capital stock, then 
 their rates of tariff to the public must be reduced. To avoid this the capital stock is increased or watered, and 
 distributed among the stockholders in proportion to their holdings, and the rate of dividend is thereby reduced. 
 
 Cumulative stock is that form of preferred stock on which the company has agreed to pay past dues and 
 unpaid preferences, before paying any dividend on the common stock, sometimes preferred stock is written that 
 it will participate in the profits if any with the common stock beyond the point of preference. When this is the 
 case the preferred stock is at all times quoted higher on the market than the common. When the preferred stock 
 gets nothing beyond the preferred point, then it may be at one time quoted higher and at another time lower than 
 the common. 
 
 Treasury stock is the Company's own stock held by them and unsold. The laws of some states require stock 
 to be fully taken before a charter will be issued, but the law provides for afterwards increasing the capital stock, 
 and it may be sold as the money may be needed in the business. 
 
 BONDS. 
 
 Bonds are the written sealed obligations of an individual, corporation or municipality. A corporation like 
 an individual may wish to go iu debt on an investment. Say it wishes to borrow $100,000. It will give a trust deed 
 to some one as trustee, on its real estate and other property. This trust deed is conditioned to secure one hundred 
 
50 
 
 HOW BUSINESS IS DONE. 
 
 $1000 bonds. These bonds are payable to bearer, and draw a certain rate of interest. They will be sold to whom- 
 soever will buy them. They are negotiable in form, being payable to bearer, and are bought and sold on the 
 market. The higher the rate of interest they bear and the better the security, the higher the market value will be. 
 The interest is usually payable semi-annually or quarterly. For each payment of interest there will be a coupon 
 
 mmimm 
 
 ■V-!:'r. 
 
 A C0RP0 BA W«i«Ai* HE LAWS OF 
 
 swmifsmi 
 
 TOTAL AUTHORIZED ISSUE S 250.000. 
 
 jicuJtvm /f'/We- wu4edr Wkdt^jc^^^U^»/j^ndaid./f'MvtM/ / a^d/J'nenfM:ja//M/^c 
 t /fa&'%^A<m/me / dtJ^A^ty(HjoHM 
 
 iumit/nt, /utuaC-u* tmvr/mttit/rwf, /n/M&Mw/xtrt. /yi'Meyiit/sfauS// 
 
 jkrAttA 
 
 •,/)/ja(<£. 
 
 %af. 
 
 da\ 
 
 tl^i / °. 
 
 Jhux^/x/PJ&^rt^,/zMe&/mdfand^ (4!^Meten//md/£'duAe.acw4^j,<ffad 
 
 Jw/any ^ai^Atirttm /rny/it&tj/.SnclcfH- 
 'jo/l VMvAMtak 
 
 Inlfsfvn0fiyWhfmrsaiilCUaemSlneinmh^Compmyhmcmi^.d6Mfmti>hitU 
 iimutdu) asieJud/'oyils fresidfnt./tnd ih corpomte seal to tth'irte a/find and nllnltd iy 
 'i&Srrir/an: and the attached coupons earn la it authenticated era* mynued 'far. smilr.if 
 Its Treasurers sujnalurr th is tint day tfjfommter All, KyhleenHundttd aeedXaieiylkeu. 
 
 Citizens iSlttel RaiiwayCompmcy. 
 Jfc* ^t *= 
 
 Sutttotf, 
 
 fi/tf/VitSCS 
 
 due on its /), 
 
 N° 
 
 -.c^'<pv IBEV^n 
 
 mUcestthtn 
 mtdmprovt- 
 
 %K9» 
 
 atlJu/lli*oisTri 
 
 1TY DOLLARS 
 \ .8 vw Ilk 
 VttAj rnltrcUtAtrt 
 
 xmedasprvx 
 
 "^l/^Oj^n^^^ 
 
 promises In /m:^"* - 
 arUuMmois T-/£ t 
 HOVfHSlf) t>jfB6 
 
 w 
 
 •rtaspron- 
 
 rZ&^^J/fi^ty&SZ. 
 
 
 due. on *f$ ft. 
 
 inltrtU th*n 
 \*mtda%pn>vi 
 
 'vlti/ti-rrm T"^ 
 
 promises to 
 
 a/tkeM,KOit 
 
 MAY /H_ 
 (tut on its-Sirs 
 
 N° 
 
 NOVtliBCRI' 
 ft""* 
 
 'inttrisitAen 
 hfctiafprvri' 
 
 ^^a^J^h^c^^ 
 
 'catAfrrtM. 
 
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 note attached, as in the illustration, and as it becomes due, it will be detached and presented for payment. A bond 
 having these coupons attached is called a Coupon Bond. If the bond be taken to the office of the company, and 
 the name of the owner and number of the bond be recorded, the bond is then said to be a Registered Bond. It will 
 then only be paid to the rightful holder thereof. Companies sometimes also appoint a trust company to register 
 their stock. They then have a transfer office and a register office, and the stock must be presented at both places 
 when a transfer is made. 
 
HOW BUSINESS IS DONE. 51 
 
 A Sinking Fund is one designed to gradually extinguish a certain debt of a corporation. The term is com- 
 mon with municipal corporations. Thus a corporation may owe $100000 in bonds, due in twenty years. They will 
 probably begin at once to accumulate a sinking fund to liquidate the obligation when due, for to raise this amount 
 in a single year may be an impossibility. A certain proportion of the net earnings or incjme will be set aside for 
 this purpose. 
 
 First Mortgage Bonds are secured by the first mortgage on the property, and are a lien prior to later ones. 
 There may be several mortgages on the same property, and each will have priority in its order. If it be desired to 
 consolidate these into one large mortgage, all of whose bonds will be on an equal footing, such bonds may be 
 called Consolidated Bonds. The British Government did this in its case, and these bonds are called Consols, an 
 abbreviation of Consolidated. 
 
 A Funded debt is one that has a permanent fund provided for its payment. Thus a municipal corporation 
 may levy a tax to pay the interest on a certain debt. The term is frequently applied to bonds that are floated at a 
 lower rate of interest to raise money to pay off bonds bearing a higher rate. 
 
 An Unfunded or Floating debt is one that is not secured by mortgage, but is of a temporary nature to be 
 paid off with current income. 
 
 ABOUT CORPORATIONS. 
 
 While the advantages of a corporation over a partnership or even a joint stock company, in many cases are 
 numerous and substantial, yet the well posted business man will not fail to bear in mind the helplessness of the 
 minority holders of the stock. The holder of a few shares is usually illy prepared on account of lack of funds, to 
 protect himself against tne power and influence of the majority. For example : One or more persons own a safe 
 majority of the stock of a company, and have abundant means at their control aside from this. The remainder 
 of the stock is distributed in small holdings among people of small means. The majority are able to elect a 
 majority or all of the board of directors, and these directors elect the officers who are to manage the business and 
 fix their salaries. As the business becomes more prosperous, the salaries are raised, so that there are no dividends 
 at all or at least very small ones. The result is the stock is depressed on the market, and the small holders depend- 
 ing in a measure upon the dividends, are glad to sell out at any price offered by the majority. If they are not 
 willing to sell out but assume a belligerent air, the company can be easily bankrupted by bad or careless manage- 
 ment. Judgments may be entered against the company. On a sale of the assets the majority having the means 
 stand by, and purchase the entire business at a low figure. They then proceed to reorganize it, leaving out the 
 smaller holders. The proceeds of the sale being barely sufficient to pay the indebtedness of the old company, 
 there is nothing left for the original stockholders. While the above is not the history of all companies, yet it is 
 not of unfrequent occurrence, and it is well for the business man to understand the possibilities and responsibilities 
 of the ownership of stock. 
 
 THE CHICAGO STOCK EXCHANGE. 
 
 A stock exchange is an organization to facilitate the dealing and trading in stocks, bonds, and other similar 
 securities. The New York Stock Exchange is the largest and by far the most important and influential of the 
 many exchanges of this country. In recent years the Chicago Exchange has grown in importance and in the vol- 
 ume of its business, until to-day, it too, is a power in the field of finance. From the fact that the larger business 
 enterprises are almost invariably corporations and that these stocks are held by the wealthy, one has not far to go 
 to learn the secret of the interest which these exchanges excite in the business world. They differ some in the 
 details of their doing business but have a general similarity. The Chicago Stock Exchange is a joint stock com- 
 pany whose membership is limited to four hundred and forty-five members. These members are brokers who 
 buy and sell stocks and bonds in the exchange on commission, as well as members who deal on their own account. 
 The government is vested in a governing committee, consisting of a president and twenty-four members. The 
 initiation fee for members is $2,500. Members are not allowed to buy or sell any stock or security other than 
 government bonds at a less variation than one-eighth of one per cent. 
 
 COMMISSIONS. 
 Commissions are computed on the par value of the security and a minimum rate must be charged in every 
 case. The charge on stocks will not be less than twelve and one-half cents per share, and on bonds not less than 
 one-eighth of one per cent. The exceptions to these rules are : Stocks selling at over $200 per share, the com- 
 mission shall be twenty five cents per share. If at or over $300 per share, the commission shall be fifty cents per 
 share. If at or over $500 per share, one dollar per share. On all sales of less than fifty shares the commission is 
 double the usual amount, and on all bond sales of less than $5,000 the commission is one-fourth of one per cent. 
 In no case shall the commission be less than $2.00. The commission on government bonds is one-sixteenth oi one 
 per cent. 
 
 TERMS USED. 
 
 Members are of three classes : The Scalpers, or those who buy and sell for themselves and not on com- 
 mission, and who close up all their trades each night. Speculators also deal for themselves but hold for a rise or 
 decline as the case may be. Commission Merchants deal for others on a commission, and rarely trade for them 
 
52 HOW BUSINESS IS DONE. 
 
 selves. Listing Stock is having it placed on the list of regular stocks traded in by the exchange. A company 
 desiring to have its stock listed, makes application to the listing committee, in writing, stating all the facts in ref- 
 erence to the standing of the company, time and place of dividend, the address of transfer office or offices, the 
 amount of indebtedness, etc. The fee for listing is #100.00. The exchange will not call or deal in the stock ol 
 any company, a registry of whose stock is not kept in some responsible bank or trust company, and which will 
 not agree to give at least thirty days' notice of an intended increase in the number of its shares. 
 
 It is evidently to the advantage of a company to have at all times a market value for its stock, hence com- 
 panies of any considerable capital are eager to have their stock listed on the exchange. In New York, stock to be 
 listed must be engraved in steel and not lithographed. In fact it is the custom to so engrave all stock to be actively 
 traded in on the Chicago exchange. The list is called daily, and bids and offers are made for the stock as called. 
 This is where the "bid" and "asked" quotations come from that are quoted in the daily market reports. 
 
 A Margin is the security given by a customer to his broker usually about 5%. 
 
 Settlement day is the last day of each month, when all trades that were bought for "the account," that is, 
 not to be paid for or delivered until settlement day, must be settled up. 
 
 A Bull is a member who has bought stock to hold, or for future delivery, and who is therefore anxious for 
 the price to go up. 
 
 A Bear is one who has sold stock for future delivery and is therefore anxious for the price to decline. 
 
 An operator is "short" when he has sold stock he does not possess, and " long" when he has bought stock. 
 
 A Pool is a combination of men who join in an effort to secure and maintain control of a certain line of 
 stock. 
 
 " Buyer's option " is applied to a contract in which the purchaser has the choice of taking a stock within 
 a certain specified time. "Seller's option " is the reverse of this. 
 
 " To cover " is to buy in stock to fill a contract in which the operator is "short." It applies equally well 
 whether the trade has proven profitable or otherwise. 
 
 A ' ' limited order ' ' is one given by a customer to his broker and which fixes a price beyond which he 
 will not go. A "stop order" is one given by a customer when buying stock on a margin to sell it out if it 
 declines below a certain point. It has the effect of limiting the customers' risk on the transaction. 
 
 A Corner exists when a clique has secured control of a certain stock and then forces the price far above its 
 real value. 
 
 Order. 
 order5 good only for the day in which they are given, unless specified. 
 
 These transactions are made subject to the rules and customs of the exchange at the place of contract, and the right is reserved to 
 close the transaction when the margins are exhausted, or nearly so, without giving further notice. 
 
 C. A. Whyland &, Co., / 
 
 a.^^ 
 
 METHODS OF BUYING. 
 
 When a member buys or sells stocks or bonds " cash," it means that the securities are to be delivered, and 
 *.he cash paid the day of the tfade. To buy or sell " regular," means that the settlement is to be made the follow- 
 ing day. To buy or sell for "the account," means that the settlement is to be made the last business day of the 
 month. "Seller three" means the seller is to have the option to deliver the stock within three days. "Buyer 
 three" means the same except that the buyer has the option to pay for and demand delivery within three days. 
 
 METHOD OF DEALING IN SECURITIES. 
 
 A customer having determined to deal in a certain stock, will select a reliable broker. If he believes the 
 stock is about to rise in value, he will buy. If he looks for a decline, he will sell. This being settled in his own 
 mind, he will write out an order to his broker on a blank furnished him by the broker. 
 
HOW BUSINESS IS DONE. 
 
 53 
 
 This order he will accompany by the required margin of say 5 or 10%. If the order be for 100 shares, par 
 value, $10000 — the margin may be $1000. The broker goes upon the floor of the exchange and buys or sells the 
 stock either "cash," "regular" or for "the account" as he may be directed. On his return to the office at the 
 close of the session, a confirmatory notice is sent to the customer notifying him of the purchase or sale. If the 
 purchase or sale be cash the broker must receive or deliver the stock at once. If it be a purchase, when the stock 
 is delivered to the broker, he will be obliged to put in with the margin sufficient of his own money to pay for the 
 stock. The margin is taken to protect the broker against a possible decline in the market. The broker retains 
 the security unless fully paid for by the customer. In case the broker should need funds, he. may hypothecate 
 the stock for a loan at the bank. The security enhancing in price, the customer may give the broker an order 
 to sell. A statement of account will then be rendered the customer by the broker. Interest will be charged for 
 the amount of his own money the broker had in the deal, and commissions for both buying and selling. At any 
 time, the customer may, by paying the balance of the purchase price demand the delivery of the security. When 
 stock is delivered, it is endorsed on the back by the holder, and must be witnessed by a member of the board. 
 The member witnessing will of course be the broker for the seller. The object is to have the genuineness of the 
 certificate authenticated by a responsible party. The certificate will first be taken to the transfer office and then 
 to the register office. 
 
 In the case shown in the illustrations an order was given the broker by D. J. Davis, Sept. 8th, to buy 100 
 shares of Manhattan Railway stock. (See form.) A margin of $750 was required in this case. This was to pro- 
 tect the broker in case the stock should decline in value while held by him. The broker executed the order at 
 once on the floor of the exchange, buying the stock "regular" at 84j^. It will be seen that the broker was 
 obliged to put in $7,100 of his own money to secure the stock. On the 18th this stock being quoted higher on 
 the exchange the customer gave an order to the broker to sell, which was done at 86^. This closed the transac- 
 tion and a statement of the account was then rendered the customer. (See form.) The commissions at,12j£c 
 per share for buying and 12j^c. for selling, amount to $25. The interest on the purchase money is $14.08, leav- 
 ing a net profit of $160.92. 
 
 C«pt with th« Dod*rtfindin« *riih out cruitomen, fft»i In all cimi cTA-rE-ur-fui- 
 
 nd sold by ut, U co»l«o)pUted and understood al*l LmLrll. 
 
 !& in account with C. A. Whyland &. Co. 
 
 STOCKS. BONOS AND LOCAL SECURITIES, 
 
 10 Pacific avcnuc, Chicago. CR. 
 
 If the trade be in bonds, interest to day of sale goes to the seller in addition to the sale price. In New York 
 all unpaid interest goes to buyer. Hence on New York exchange the same bonds are always quoted higher than in 
 Chicago, except immediately after payment of interest. The price of stocks increases as dividend days approach 
 for the dividend goes with them up to day transfer office is closed to make ready for the dividend. 
 
 A broker may receive an order to sell stock, looking for a decline, when, if the buyer should demand the 
 stock, it can be bought at a lower price to complete the trade. This is called " selling short." In some cases a 
 broker having sold stock and having none on hand, resorts to borrowing it. He will borrow it from a friend 
 leaving his check for it at the market price, with the understanding that the stock will be returned when demanded. 
 
 To facilitate trading for "the account," a clearing house department is organized. Like a bank clearing 
 house, this enables a broker to substitute another broker in his place. Or if he has sold and bought, the one may 
 be made to cancel the other. 
 
 The "ticker" has become an important factor in stock exchange transactions. The market of stocks is 
 extremely sensitive to outside influences. The demand for a stock in Liverpool or New York, or a mere rumor 
 of a possible decline in the earning power of the corporation is information eagerly sought for, and has an imme- 
 diate effect on the price of the stock. This information as to sales in New York is communicated by the "ticker." 
 
54 HOW BUSINESS IS DONE. 
 
 These are small instruments found in every broker's office, and connected by wire with an office of the company 
 furnishing them. Unlike the telegraph instrument, from which the message is taken by sound, the "ticker" 
 prints it on a narrow strip of paper that can be read by anyone. These "tickers" are found on the floor of the 
 stock exchange, and reports of sales are immediately made known in all the business centers of the country, 
 
 THE SPECULATIVE TRADE. 
 
 Members of the stock exchange claim that in every transaction on the Exchange, the actual delivery of 
 the security is contemplated. However, should one sell "short" and then fail to make delivery as required in 
 his contract, he is liable, as in all cases, to pay damages for a breach of his contract. The measure of damages 
 would of course be the difference between the price of the sale and the lesser market price of the day. 
 
 Members claim a difference between such transactions and those where no delivery is ever contemplated. 
 The latter are prohibited by the laws of the State and the rules of the Exchange. Still it must be admitted that 
 there is considerable business done in this manner. Such transactions amount to a wager in which the buyer 
 wagers that the stock will appreciate, and the seller that it will decline. Much of this sort of business is done by 
 means of " Puts," "Calls" and "Straddles." 
 
 A " Put " is a contract wherein the maker of it agrees, within a certain date, to make a contract to take a 
 certain number of shares of stock at a certain price. 
 
 A " Call " is the reverse of a "Put " and entitles the holder to all advance above price of call. 
 
 A "Straddle" is the sale of a privilege to either buy or sell. These, it will be seen, each constitute a 
 privilege, and this privilege or option is paid for. 
 
 THE BOARD OF TRADE. 
 
 One of the great financial institutions of the west, and one having a great influence upon the destiny and 
 welfare of the whole people, is the Chicago Board of Trade. Here is the source of market quotations on cereals 
 and hog products, and here it is that the grain dealers and producers of the country look for facts on which to 
 determine the prospects for a rise or decline in prices of grains. 
 
 Much criticism has been urged against the Board by many well meaning people, and it has even been 
 accused of being a gambling institution. But this imputation is denied vigorously by its members. It is claimed 
 that were it not for the Board the producer would be at the mercy of the millers, who would only buy as their 
 needs might demand. As it is, the owner of wheat can always find a cash buyer for it. 
 
 ORGANIZATION. 
 
 The Board of Trade was organized as a corporation at a time when special charters were permitted, and it 
 was fortunate enough to secure from the legislature one of these charters conferring special privileges. The 
 objects of the association are : To maintain a commercial exchange ; to promote uniformity in the customs and 
 usages of merchants ; to inculcate principles of justice and equity in trade ; to facilitate the speedy adjustment of 
 business disputes ; to acquire and to disseminate valuable commercial and economic information. 
 
 GOVERNMENT. 
 
 The government of the Board is vested in a board consisting of a president, two vice-presidents and fifteen 
 directors. The usual provisions are made for different committees. The fee for membership is $10,000, but a 
 membership may be bought up from a member for about $500. A transfer fee of $25 is charged. 
 
 No one but a member can make any trades the floor of the exchange. In fact, admission to the floor 
 is only granted under strictly defined restrictions. Members of the board only deal on the floor with members, 
 and a member may act as a broker only as between other members. When he represents an outsider he must 
 deal with a member as the principal to the transaction and not as an agent. For all transactions, therefore, made 
 on the floor for an outsider, he is personally responsible. 
 
 COMMISSIONS. 
 
 For selling car load lots of wheat, rye and barley in store, free on board cars or vessels, on track, delivered, 
 or to be shipped from any other point, the minimum commission is one cent per bushel. For selling car-load lots 
 of corn in store, corn otherwise than in store, oats in car-load lots, or for selling canal-boat loads of grain in 
 store afloat, or free on board vessels, one-half cent per bushel. "In addition to the foregoing rates there 
 shall be charged the legal rate of interest on all advances; also the established rates of insurance upon all 
 merchandise held in store or otherwise carried." 
 
 For the purchase or sale, and for the purchase and sale of property for immediate or future delivery, 
 whether the contract for purchase or for sale be first made, as follows: On all kinds of grain in 1,000 and 5,000 
 bushel lots or multiples thereof, one-fifth of one cent per bushel. On mess pork in lots of 50 and 250 barrels or 
 multiples thereof, 5 cents per barrel. For the purchase and shipment of grain by vessel : On rye and barley, 
 one-half of one cent per bushel ; on other grains, one-quarter of one cent per bushel ; for the purchase and ship- 
 ment of grain one-half cent per bushel. 
 
HOW BUSINESS IS DONE. 
 
 55 
 
 INSPECTION. 
 
 The grain and provision busiuess in Illinois is regulated by statute. This statute provides for a board of 
 Railroad and Warehouse Commissioners. This board establishes grades of grain and provisions and appoints 
 inspectors to examine and officially grade the same. 
 
 The chief inspector keeps a set of books in which is entered an accurate account of all grain inspected, 
 showing the quantity and quality of each variety, and the amount of inspection fees chargeable thereon. The 
 fees for inspection are : For inspection on arrival, thirty cents per car-load ; ten cents per wagon-load ; forty 
 cents per thousand bushels from canal boats or vessels; and one-fourth of one cent per bushel from bags. For in- 
 spection from store : Fifty cents per thousand bushels to vessels; thirty-cents per car-load to cars, and per car- 
 load to teams; or ten cents per wagon-load to teams. 
 
 Certificate of Inspection. 
 
 Jcior of Oraia 
 
 \<m 
 
 ■ i 
 
 Hfl, k^ 
 
 ^l\i<»agO. - SEP. 26 1896 
 
 Wis Cal.Dlv.C.&N-W, Mz^£&»zcU~ 
 
 t&riAgJZgJL 
 
 New 
 
 Three (3) Hard Winter Wheat* 
 
 oa^^CZ/^/t^u^ 
 
 Gfuefi Jndfiectct/. 
 
 CLAIMS FOR DAMAGTS AGAINST INSPECTORS SHOULD BE 
 
 FILED IN THIS OFFICE BEFORE THE GRAIN INSPECTED SHALL 
 
 HAVE BEEN UNLOADED OR HAVE LEFT THIS DEPARTMENT. 
 
 REGISTRAR. 
 
 The Warehouse Registrar keeps a registration book for each elevator, and in this is entered a correct 
 list of grain that is received. This information is furnished by the inspector. When a warehouse receipt is re- 
 ceived from the elevator by the commission merchant, it is taken to the office of the Registrar to be registered. 
 The Registrar then compares the receipt with the report of the inspector, and if there be no discrepancy it is 
 stamped across the face with the Registrar's stamp. In this way a check is kept on the Elevator Co. to prevent 
 the issuing of fictitious receipts. By the rules of the Board of Trade, a warehouse receipt from an elevator of 
 "Class A" must be registered before it can be legally tendered in settlement of a trade. 
 
 GRADES. 
 
 The statute gives the Warehouse Commissioners power to establish fixed grades of grain and of provisions. 
 They have established four grades of wheat and corn, five for barley, and three for oats and rye. 
 
 This classification is based on the size, color and plumpness of the grains and its dryness and freedom from 
 dirt or other foreign substances. Nearly all the grain traded in, and for which quotations are made, is graded as 
 No. 2. 
 
 SHIPPING GRAIN. 
 
 A car of grain will be loaded by a western buyer for shipment to a commission merchant in Chicago ; the 
 railroad issues for it a Bill of Lading ; the shipper forwards this Bill of Lading to the consignee. When the grain 
 arrives in Chicago it is placed by the company on their inspection tracks, and the consignee notified. Here the 
 state inspector enters the car, inspects and fixes the grades of the grain. A return of this inspection is made as 
 hereinbefore explained. At this point also an employee of the consignee takes a sample of the grain from each 
 car, and this sample is immediately shown on the floor of the Exchange, that intending buyers may inspect it. The 
 car is held a reasonable time for the orders of the consignee, who may have sold it for reshipment. If not disposed 
 of, it will be sent to an elevator, and there unloaded by the elevator company free of charge, and a warehouse 
 receipt is issued for it. To avoid disputes as to weights, the Board of Trade has appointed an official weigh-master, 
 and his weights are accepted as binding. He issues a Weigh Master's Certificate. The fees for weighing are paid 
 by the shipper. The warehouse receipt, when registered, as has been explained, and properly endorsed, is then a 
 legal tender in settlement of trades on the Exchange. Dealings on the Board of Trade are in fact dealings with 
 warehouse receipts. 
 
56 
 
 HOW BUSINESS IS DONE. 
 
 The Elevator Company will not deliver the receipt until the expense bill duly receipted by the Railroad 
 Company is produced. The object of this is apparent. 
 
 Warehouse Receipt. 
 
 FIVE THOVSAXD. & 7 
 
 ; .* / Two Corn 
 
 fr^/^i/jfaw*/ ^ Weare Commiss 
 
 liisheivtyuiifm^ byiheMdersefihismvipuhai ilietinunhmvimmuiim 
 ifiiiiluybrmx/xrtifn. Lnssbyfin or/ntiii/it/ at twuersrisk, 
 
 MynwvmijMtoour **** THE CHICAGORAILWAY 
 
 lirnisni mus »/ MiTiitfr 
 
 2t&t 
 
 Sec retary . 
 
 jutj&AIMMuuu&f&a&uiJauiJuu^ 
 
 STORAGE RATES. 
 
 Storage rates on grain are ^-cent for the first ten days, and X-cent more for each additional ten days or part 
 thereof. The rules of the Board of Trade provide that |^-cent storage must go with the first purchase of the grain, 
 so that the country shipper has no storage to pay, providing he has his grain sold within the first five days after 
 storage begins ; for in selling grain in store, the seller must give five days without additional storage to the buyer. 
 If the shipper holds it from six to fifteen days, he would be charged #-cent p er bushel for the second ten days, 
 and the buyer will pay for the first ten days. 
 
 Slip eor Margin Deposit. 
 
 J^Jorth-Western National Bank. 
 
 Chicago, Cx?/K&j?, 188.4 
 
 MARGIN CERTIFICATES WANTED 
 
 1 3,000-4- 1 a-'8 
 
 FOR DEPOSITOR AND 
 
 ' < ^W^^ur^ryP~^\ ftftf. 
 
 ^^d>^? 
 
 ZZS. 
 
 /JW. 
 
 J^orth-Western National Bank. 
 
 Criicago,- 
 
 ^/r^y i ma ^ 
 
 MR. GEORGE F. STONE, 
 
 Sec'y Board of Trade of 1h 
 
 of Chicago 
 
 '^£Z&lZ- 
 
 hai^deposited approved check for Margin Certificate^^ which we 
 will' issue to-day in accordance with your rules as follows- 
 
 FOR DEPOSITOR AND 
 
 Entere 
 
 Total, $ &£> 00 
 
 ^to^&^Ti...,. 
 
 Total. $ <g£C& 
 
 k 
 
 ^MM^, 
 
 Teller 
 
 THE CUSTOMER. 
 
 A person having determined to buy or sell grain on the Board will select a reliable broker, and give him an 
 order to buy or sell as the case may be. The order may be for a fixed price or at the market price. Grain may be 
 bought for delivery any given month, and most of the contracts are for future delivery. May, September and 
 December are the favorite months for which grain is bought for delivery. Thus "May wheat" means wheat bought 
 for delivery any day of the following May. In case a purchase is for " cash," it shall if purchased before 1 :15 P.M. 
 be deliverable before 2:30 P. M. same day. 
 
 When grain is bought for delivery in a certain month, it is deliverable any day of that month on which the 
 Board holds a session, at the option of the seller. 
 
HOW BUSINESS IS DONE. 
 
 57 
 
 Having received the order, the broker will go upon the Board and execute it. If the order be to purchase 
 or sell at the market price, there will be no difficulty in executing it, but if to buy or sell at or below a stated figure 
 it may be impossible. 
 
 ON THE BOARD. 
 
 The method of doing business on the Board is much the same as on the Stock Exchange. There are several 
 "pits" on the floor, each being the center for trading in a certain kind of grain. Thus there is the "Wheat Pit," 
 and the " Provision Pit," etc. 
 
 Each broker holds in his hand a small card called a "bought and sold" card. This card is ruled into col- 
 umns. On the one side he records his sales and the other his purchases. The broker he deals with does the same. 
 This memorandum consists of the amount and kind of grain, when deliverable, name of broker bought of or sold 
 to, the price and the number (not the name) of the customer for whom the contract was made. 
 
 At the close of the day these cards are returned to the office, and handed to clerks to enter up. To each 
 customer will be sent a "confirmatory notice" giving a list of trades made for him that day, and to each fellow- 
 broker with whom he has had trades that day, he will also send a small slip giving a list of their trades for the day. 
 These Confirmation Slips are the only vouchers that pass between brokers. 
 
 Confirmation Slips. 
 
 Chicago, 18 
 
 We hereby confirm PURCHASES made by us 
 to-day, under the rules of the Chicago Board of Trade, 
 as follows, of 
 
 Chicago, 18 
 
 IVe hereby confirm SALES 'made by us to-day, 
 under the rules of the Chicago Board of Trade, as fol- 
 lows, to 
 
 Amount. 
 
 Kind of Property. 
 
 Delivery. 
 
 Price. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Amount 
 
 Kind of Property. 
 
 Delivery. 
 
 • 
 
 Price. 
 
 
 
 
 
 
 
 
 
 
 
 
 • 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 COUNSELMAN & DAY, 
 
 SCHWARTZ, DUPEE & CO., 
 
 Per 
 
 Per 
 
 Should. a broker receive grain bought for a customer he would be obliged to pay for it largely with his own 
 money, but he can easily hypothecate the warehouse receipts at the bank where they will advance him 90% of the 
 market value of the grain represented. Should the price decline he would be obliged to refund on call a portion 
 of the loan to keep the security good. A large business is done in these demand loans at the Chicago banks. 
 
 We have seen that, as between the broker and the customer, the broker demands a margin to cover fluctua" 
 tions in the market. If grain is bought for a customer and the market declines, the broker may "call" for more 
 margin, and when it declines to the amount of the margin already up, the broker is privileged to sell the grain 
 and close the deal. It must be borne in mind that as between the brokers they act as principals and not as agents. 
 The rules of the Board also permit each broker to a deal to require the other to put up a margin or security that 
 he can and will fulfill his contract at maturity. This security of 10% may be deposited with the treasurer of the 
 association or with an approved bank. When deposited, the bank issues a special certificate Oa' deposit, and sends 
 a notice of the same to the secretary of the Board of Trade. 
 
 The current market value of property traded in is conspicuously posted each day in the settlement room. 
 This serves as a basis for the adjustment of all contracts settled on that day. 
 
58 HOW BUSINESS IS DONE. 
 
 THE OPEN BOARD. 
 
 The Open Board is a separate organization from the regular Board, but while the smallest order that will be 
 considered on the regular Board is five thousand bushels, an order for one thousand will be accepted on the open 
 Board. 
 
 BUCKET SHOPS. 
 
 On the Board an actual delivery of the grain or produce is contemplated, but there has sprung up a class of 
 dealers, keepers of " Bucket Shops," where no delivery is contemplated. No grain is bought or sold. The specu- 
 lator gives his order to one of these Bucket Shop keepers, but the order is simply a wager that the grain will 
 advance or decline, as the case may be. The Bucket Shop charges a commission and is in fact, at the same time, 
 the other party to the contract. The quotations are taken from the regular Board by means of "tickers." They 
 are called Bucket Shops on account of the small orders they will accept. 
 
 TERMS. 
 
 The terms used on the Board are in most cases the same as on the Stock Exchange and will be found on 
 page 74. 
 
 CLEARING HOUSE. 
 
 As has been said, the brokers deal among themselves as principals. They have frequent dealings with each 
 other and to facilitate settlements among themselves they have organized a Clearing House department. This is 
 conducted somewhat like the regular clearing house and the balance against a member is settled by a certified check 
 A clearing house sheet is ruled for debits and credits and has on it the names of all members. This sheet is filled 
 out at the office and accompanied by a certified check for a debit balance is sent to the clearing house department 
 daily. A small fee is charged for each settlement. 
 
 POSTAL LAWS AND REGULATIONS. 
 « 
 
 Domestic mail matter is divided into four classes: first, second, third and fourth. 
 
 FIRST CLASS. 
 
 First class matter consists of letters, postal cards, and all matter wholly or partially in writing, whether 
 sealed or unsealed (except manuscript copy accompanying proof sheets of the same). All matter sealed 
 or otherwise closed against inspection is also of the first class. 
 
 The Rate for first class matter is two cents per ounce or fracion thereof. Postal cards one cent each. 
 Drop letters two cents per ounce or fraction thereof when mailed at letter carriers offices, and one cent for each 
 ounce or fraction thereof at offices where free delivery is not established. 
 
 SECOND CLASS. 
 
 Second class matter is newspapers and other periodical publications which are issued at stated intervals, 
 and as frequently as four times per year. 
 
 The Rate on second class mater when sent by the publisher from the office of publication or when sent 
 from a news agency to actual subscribers or to other news agents, is one cent per pound or fraction thereof. 
 When sent by other than the publisher or news agent the rate is one cent for each four ounces or fraction thereof. 
 The rate on newspapers (except weeklies) and periodicals not exceeding two ounces in weight when deposited in 
 a letter carrier office for delivery by its carriers, is uniform at one cent each ; if weighing more than two ounces 
 two cents each. Newspapers (other than weeklies) and periodicals, when deposited by other than publishers or 
 news agents in a letter carrier's office, for delivery by them, are charged one cent for four ounces or fractional 
 part thereof. 
 
 THIRD CLASS. 
 
 Third class matter is bo >ks, circulars and other matter wholly in print (not included in second class matter) 
 proof sheets, corrected proof sheets and manuscript copy accompanying the same. 
 
 " Printed matter" is the reproduction of characters upon paper by any process except that of handwriting, 
 not having the character of an actual correspondence. 
 
 A circular is a printed letter, which according to internal evidence, is being sent in identical terms to several 
 persons. The date, name of addressee and sender may be inserted and it is still a circular. 
 
 The Rate of postage on third class matter is one cent for each two ounces or fractional part thereof. 
 
 FOURTH CLASS. 
 
 Fourth class matter is merchandise and all matter not included in the preceding classes. 
 The Rate on fourth class matter is one cent an ounce or fractional part thereof. 
 
HOW BUSINESS IS DONE 59 
 
 FIRE INSURANCE. 
 
 Almost every one, sooner or later, becomes the holder of a fire insurance policy. The rights and duties of a 
 holder are then of importance to him. 
 
 The business of insuring against loss by fire is almost wholly done by large corporations. These corpora- 
 tions have an organization among themselves called " The Board of Underwriters," for the purpose of fixing rates. 
 A Company which is a member of this orgauization is called a Board Company. A local board is maintained by 
 the local agents of aim st every hamlet. The State Board sends a committee, composed of skilled members to a 
 village, and each business block is rated. A rate is also placed on the contents of each story. No Board Company 
 is permitted to take a risk at less than the board rate. 
 
 The contract between the insured and the insurers is the Policy ; consequently the holder of a policy should 
 read it carefully. It matters not what the agent may have said the policy insured against, the policy itself is still 
 the only thing that may be used to determine the contract. The policy is valid if delivered, even if the premium 
 be not paid. The insured must have an insurable interest in the property at the time the policy is written. 
 
 A policy not permitting repairs will be rendered void during the tjme repairs are being made, but the weight 
 of decisions is that the liability will begin again when the repairs cease, unless the repairs have materially changed 
 the character of the risk. 
 
 If you hold a mortgage on a piece of property consisting partly of buildings, you should see to it that the 
 mortgage contains a provision requiring the mortgagor to keep the buildings insured for a certain sum, and in 
 your favor. This provision should further give you the authority to insure it if the mortgagor does not, and to add 
 the cost thereof to the mortgage debt. The language of such a policy is: "Loss if any on this policy payable to 
 A. B., mortgagee, as his interest may appear." It is usual to write a policy for three years for twice the rate foi 
 one year ; or for five years for three times the rate for one year. If you sell property that is insured the policy 
 should be cancelled at once, or transferred by consent of the company to the buyer; otherwise, in case of a loss by 
 fire, the company will not be obliged to pay any one. If you take a policy for a long term you may cancel it at 
 any time, and ask for a refund of the unearned premium. The company will retain for the period the policy is in 
 force at the high rate of a short term, and refund you the balance. The company also has the right to cancel the 
 policy on giving the insured a notice sufficient to enable him to place his insurance elsewhere. When the 
 company cancels the policy, the refund is pro rata of the term. 
 
 There are four clauses that are frequently inserted by insurance companies in policies, and it is very import- 
 ant that the holder of a policy should understand their meaning and effect. They are known as follows: The 75 
 per cent co-insurance clause; the % loss cause; the ^ value clause; and the Average clause. 
 
 THE 75 PER CENT. CO-INSURANCE CLAUSE. 
 
 Reads as follows: "It is a part of the consideration of this policy, and the basis upon which the rate of 
 premium is fixed, that the assured shall at all times maintain a total insurance on the property insured by this 
 policy of not less than 75 per cent of the total cash value thereof, (as covered under the several items of the 
 policy), and that failing to do so, the assured shall become a co-insurer to the extent of such deficiency, and in 
 that event shall bear his proportion of any loss occurring under this policy." Under this clause, when the sum 
 insured is less than 75 per cent of the value of the property, and the loss is less than the amount insured, then 
 the company will pay such a proportion of the loss as the face of the policy bears to 75 per cent of the value of 
 the property. 
 
 THE THREE-QUARTER LOSS CLAUSE. 
 
 This clause inserted in many country policies is as follows: " It is agreed and understood to be a condition 
 of this insurance that in case of any loss or damage under this policy this company shall not be liable for an amount 
 greater than three-fourths of said loss, not exceeding the sum herein named, the other one-fourth to be bourne by 
 the insured; and in the event of other insurance on the property covered by this policy, this company shall not be 
 liable for more than its proportion of three-fourths of such loss or damage." It is the evident intention to make 
 the owner lose one-fourth of any loss that may occur. Under the 75 per cent co-insurance clause the owner can 
 recover for the entire loss up to the amount of policies, provided he keeps policies in force to the amount of 75 per 
 cent of the value; but under the three-quarter loss clause he cannot in any event save himself from loss 
 should one occur. 
 
 THE THREE-QUARTER VALUE CLAUSE. 
 
 This reads : " It is understood and agreed to be a condition of this insurance that in the event of loss or 
 damage by fire to the property under this policy, this company shall not be liable for an amount greater than 
 three-fourths of the actual cash value of each item of property insured by this policy, (not exceeding the amount 
 insured on such item), at the time immediately preceding such loss or damage; and in the event of additional 
 insurance — if any is permitted hereon, then this company shall be liable for its proportion only of three-fourths 
 such cash value of each item insured at the time of the fire, not exceeding the amount insured on each such item." 
 Under this clause the insured will get the full value of his loss if it be equal to or below three-fourths of its vaiue, 
 but under the three-quarter loss clause he would not. 
 
62 REVIEW QUESTIONS. 
 
 44. If a bank, other than your own, notifies you that it has for collection your note, what is the best method of 
 
 paying it ? 
 
 45. What form of endorsement must row be used when depositing checks, bank drafts, etc.? 
 
 46. What recent changes have been made in this, and why? 
 
 47. Explain how you would proceed if you wished to purchase a bank draft on New York ? 
 
 48. In whose favor is it best to have such drafts drawn, and why ? 
 
 49. What is done with bank drafts wheu they are paid ? 
 
 50. Why does one bank have the right to draw on another ? 
 
 51. What bank drafts are in most frequent use and why ? 
 
 52. You have purchased a bank draft for $100 payable to your own order and desire to remit it to Buck, Whit- 
 
 more & Co., Scranton, Pa.; what form of endorsement is preferable, and why ? 
 
 53. Write the form of endorsement proper when you are leaving a note with a collection agency for collection. 
 
 54. Why is this form the best ? 
 
 55. Write an endorsement designed to transfer the title to the paper, but to incur no liability. 
 
 56. Suppose you receive a check payable to order and it is endorsed, Pay (your name) and signed. Is this check 
 
 still negotiable ? 
 
 57. You hold H. T. Clarke's note for f 500, and it is past due. He pays you $125 as part payment on Nov. 25 
 
 1896. Write the endorsement for it. 
 
 58. What is the objection to endorsing another's paper? 
 
 59. What is the objection to exchanging notes ? 
 
 60. You have notes not yet due and are in want of ready cash. Describe two methods of raising money on these 
 
 notes. 
 
 61. Write all the forms necessary to complete No. 60. 
 
 62. What is a Judgment Note and why is it ta be preferred to an ordinary note ? 
 
 63. What would be your objection to giving such a note ? 
 
 64. Write J. A. Stephen's draft at 15 days' sight for $326.24 on yourself. 
 
 65. Accept the above draft dating your acceptance the day following the date of the draft. 
 
 66. Why should some drafts be presented for acceptance ? 
 
 67. What drafts need not be accepted ? 
 
 68. Write an acceptance payable at your bank. 
 
 69. What is the object of making an acceptance payable at your bank ? 
 
 70. Is the practice to be commended ? 
 
 71. H. H. Garver, of Peoria, 111., owes you on account past due $56.25. How would you proceed to collect thii 
 
 by means of a draft ? 
 
 72. Draw the above draft and make the proper endorsement, if any. 
 
 73. Why is a draft in the above case more apt to be honored than an ordinary dunning letter? 
 
 74. To what bank would you send the above draft ? 
 
 75. Is there more than one way of handling it, and if so, what is the other ? 
 
 76. A customer orders from you $58.50 worth of goods and directs you to draw on him through his bank for the 
 
 amount of the bill. Explain fully how you would do it. 
 
 77. In what ways can money be remitted ? 
 
 78. Nothing being said to the contrary where is a debt due, at the debtor's place of business or at the creditor's? 
 
 79. Suppose you remit B, of Denver, to balance your account and the letter is lost ; whose loss is it ? 
 
 80. When is it permissible to remit stamps ? 
 
 81. When is a registered letter a proper means to remit money ? 
 
 82. In case of the loss of a registered letter who would be the loser ? 
 
 83. What is the fee for registering a letter and may a package be registered ? 
 
 84. Under what circumstances are registered letters most used ? 
 
 85. When is it proper to send a creditor your personal check and when not? 
 
 86. Why is the receipt of personal checks so annoying to a wholesale house ? 
 
 87. When may a personal draft be sent on account ? 
 
 88. What is there to commend a bank draft in remitting ? 
 
 89. What bank drafts are most generally accepted at par, and why ? 
 
 90. What is the cost of a bank draft ? 
 
 91. What is the maximum amount for which a postal order will be issued ? 
 
 92. What are the advantages and disadvantages in using a postal order? 
 
 93. How do you prepare a postal order for deposit in a bank ? 
 
 94. How far is a postal order negotiable ? 
 
 95. What are express orders and for what can they be used ? 
 
 96. For what amounts may they be had ? 
 
 97. How far are they negotiable ? 
 
 98. Why can you not re-send a postal order that has been sent you ? 
 
 99. Can you re-send an express order that has been sent you ? 
 
REVIEW QUESTIONS. 63 
 
 100. When would you call upon an express company to transport money for you ? 
 
 101. How is money sent by telegraph? 
 
 102. By whom is this service given ? 
 
 103. Can money be so sent everywhere? 
 
 104. Explain why suburban banks sometimes have a notice on their checks that they are payable through the 
 
 city clearing house. 
 
 105. Why would a suburban bank check not having such a provision not pass at par in the city ? 
 
 106. Draw a check on your bank for money for your own use. 
 
 107. Draw a check on your bank that a messenger may go and get it without being identified. 
 
 108. What is " Kiting," how is it done, and how do banks regard the custom? 
 
 109. Are lhe words " value received " necessary to the validity of negotiable paper? 
 
 110. Write a joint note. 
 
 111. Write a joint and several note. 
 
 112. Give the rule for computing time in a negotiable paper. 
 
 113. What are safety deposit vaults and how are they conducted ? 
 
 114. What forms of money are full legal tender? 
 
 11"). What forms are not legal tender for any amount? 
 
 116. For what amount are dimes a legal tender ? 
 
 117. For what amount are pennies a legal tender ? 
 
 118. You purchase in a store a bill of goods for $7.65 and offer in payment half dollars, quarters and dimes, must 
 
 the seller accept the coins ? Why ? 
 
 119. What is the effect of making a good tender ? 
 
 120. How do you make a proper tender. 
 
 121. A owes you on account $55.67. What advantages if any, would there be in getting his note for the amount? 
 
 122. What disadvantages if any, would there be? 
 
 123. What is a national bank ? 
 
 124. What is a bank of issue ? 
 
 125. Can a state bank be a bank of issue ? 
 
 126. Explain how and on what terms national banks are permitted to issue bank bills. 
 
 127. When must national banks make report and to whom ? 
 
 128. What is a bank examiner and what are his duties ? 
 
 129. To what extent may national banks hold real estate : 
 
 130. What is meant by the " legal reserve," and how much is it ? 
 
 131. What is the liability of a stockholder in a national bank ? 
 
 132. What is the redemption fund, where is it kept, how much is it, and what is its object? 
 
 133. How is the surplus fund made up ? 
 
 134. What are the qualifications of a national bank director ? 
 
 135. To what extent is his a responsible position, and how might he become personally liable? 
 
 136. What restrictions, if any, are there on the amount of the capital stock ? 
 
 137. What is a savings bank, and wherein does it differ from a national bank ? 
 
 138. Under what laws are they organized ? 
 
 139. How many, and what plans of organization are there ? 
 
 140. Which is preferable, and why ? 
 
 141. Explain fully the mutual plan of organization. 
 
 142. How do savings and national banks differ in the character of their investments? 
 
 143. Do savings banks make a large profit ? 
 
 144. How may a savings bank be useful to the community ? 
 145 How is money deposited in a savings bank ? 
 
 146. How is money withdrawn from a savings bank ? 
 
 147. Why cannot the active business man use a savings bank account ? 
 
 148. What are trust Companies, and under what laws are they organized ? 
 
 149. What business may a trust company do for you ? 
 
 150. If you were appointed administrator for an estate, how would you care for the money of the estate ? 
 
 151. Name the different kinds of paper money we have in circulation. 
 
 152. Describe the Greenback, tel) what it is, how it is secured, and how many there are in circulation. 
 
 153. For what is it a legal tender? 
 
 154. Describe the Treasury Note, tell what it is, how it is secured, and how many there are in circulation. 
 
 155. What are Silver Certificates, how are they secured, and how many are there in circulation ? 
 
 156. How may they be obtained, and are they a legal tender ? 
 
 157. How does the face of a Greenback read ? 
 
 158. How does the face of a Treasury note read ? 
 
 159. How does the face of a Gold Certificate read ? 
 
 160. How does the face of a Silver Certificate read ? 
 
62 REVIEW QUESTIONS. 
 
 44. If a bank, other than your own, notifies you that it has for collection your note, what is the best method of 
 
 paying it ? 
 
 45. What form of endorsement must row be used when depositing checks, bank drafts, etc.? 
 
 46. What recent changes have been made in this, and why ? 
 
 47. Explain how you would proceed if you wished to purchase a bank draft on New York ? 
 
 48. In whose favor is it best to have such drafts drawn, and why ? 
 
 49. What is done with bank drafts when they are paid ? 
 
 50. Why does one bank have the right to draw on another ? 
 
 51. What bank drafts are in most frequent use and why ? 
 
 52. You have purchased a bank draft for $100 payable to your own order and desire to remit it to Buck, Whit- 
 
 more & Co., Scrantou, Pa.; what form of endorsement is preferable, and why ? 
 
 53. Write the form of endorsement proper when you are leaving a note with a collection agency for collection. 
 
 54. Why is this form the best ? 
 
 55. Write an endorsement designed to transfer the title to the paper, but to incur no liability. 
 
 56. Suppose you receive a check payable to order and it is endorsed, Pay (your name) and signed. Is this check 
 
 still negotiable ? 
 
 57. You hold H. T. Clarke's note for $500, and it is past due. He pays you $125 as part payment on Nov. 25 
 
 1896. Write the endorsement for it. 
 
 58. What is the objection to endorsing another's paper? 
 
 59. What is the objection to exchanging notes ? 
 
 60. You have notes not yet due and are in want of ready cash. Describe two methods of raising money on these 
 
 notes. 
 
 61. Write all the forms necessary to complete No. 60. 
 
 62. What is a Judgment Note and why is it to be preferred to an ordinary note ? 
 
 63. What would be your objection to giving such a note ? 
 
 64. Write J. A. Stephen's draft at 15 days' sight for $326.24 on yourself. 
 
 65. Accept the above draft dating your acceptance the day following the date of the draft. 
 
 66. Why should some drafts be presented for acceptance ? 
 
 67. What drafts need not be accepted ? 
 
 68. Write an acceptance payable at your bank. 
 
 69. What is the object of making an acceptance payable at your bank ? 
 
 70. Is the practice to be commended ? 
 
 71. H. H. Garver, of Peoria, 111., owes you on account past due $56.25. How would you proceed to collect thii 
 
 by means of a draft ? 
 
 72. Draw the above draft and make the proper endorsement, if any. 
 
 73. Why is a draft in the above case more apt to be honored than an ordinary dunning letter? 
 
 74. To what bank would you send the above draft ? 
 
 75. Is there more than one way of handling it, and if so, what is the other ? 
 
 76. A customer orders from you $58.50 worth of goods and directs you to draw on him through his bank for the 
 
 amount of the bill. Explain fully how you would do it. 
 
 77. In what ways can money be remitted ? 
 
 78. Nothing being said to the contrary where is a debt due, at the debtor's place of business or at the creditor's ? 
 
 79. Suppose you remit B, of Denver, to balance your account and the letter is lost ; whose loss is it ? 
 
 80. When is it permissible to remit stamps ? 
 
 81. When is a registered letter a proper means to remit money ? 
 
 82. In case of the loss of a registered letter who would be the loser ? 
 
 83. What is the fee for registering a letter and may a package be registered ? 
 
 84. Under what circumstances are registered letters most used ? 
 
 85. When is it proper to send a creditor your personal check and when not ? 
 
 86. Why is the receipt of personal checks so annoying to a wholesale house ? 
 
 87. When may a personal draft be sent on account ? 
 
 88. What is there to commend a bank draft in remitting? 
 
 89. What bank drafts are most generally accepted at par, and why ? 
 
 90. What is the cost of a bank draft ? 
 
 91. What is the maximum amount for which a postal order will be issued ? 
 
 92. What are the advantages and disadvantages in using a postal order? 
 
 93. How do you prepare a postal order for deposit in a bank ? 
 
 94. How far is a postal order negotiable ? 
 
 95. What are express orders and for what can they be used ? 
 
 96. For what amounts may they be had ? 
 
 97. How far are they negotiable ? 
 
 98. Why can you not re-send a postal order that has been sent you ? 
 
 99. Can you re-send an express order that has been sent you ? 
 
REVIEW QUESTIONS. 63 
 
 100. When would you call upon an express company to transport money for you ? 
 
 101. How is money sent by telegraph ? 
 
 102. By whom is this service given ? 
 108. Can money be so sent everywhere? 
 
 104. Explain why suburban banks sometimes have a notice on their checks that they are payable through the 
 
 city clearing house. 
 
 105. Why would a suburban bank check not having such a provision not pass at par in the city ? 
 
 106. Draw a check on your bank for money for your own use. 
 
 107. Draw a check on your bank that a messenger may go and get it without being identified. 
 
 108. What is " Kiting," how is it done, and how do banks regard the custom? 
 
 109. Are lhe words " value received " necessary to the validity of negotiable paper? 
 
 110. Write a joint note. 
 
 111. Write a joint and several note. 
 
 112. Give the rule for computing time in a negotiable paper. 
 
 113. What are safety deposit vaults and how are they conducted ? 
 
 114. What forms of money are full legal tender ? 
 
 115. What forms are not legal tender for any amount? 
 
 1 16. For what amount are dimes a legal tender ? 
 
 117. For what amount are pennies a legal tender? 
 
 118. You purchase in a store a bill of goods for |7.65 and offer in payment half dollars, quarters and dimes, must 
 
 the seller accept the coins ? Why ? 
 
 119. What is the effect of making a good tender ? 
 
 120. How do you make a proper tender. 
 
 121. A owes you on account $55.67. What advantages if any, would there be in getting his note for the amount? 
 
 122. What disadvantages if any, would there be ? 
 
 123. What is a natioual bank ? 
 
 124. What is a bank of issue ? 
 
 125. Can a state bank be a bank of issue ? 
 
 126. Explain how and on what terms national banks are permitted to issue bank bills. 
 
 127. When must national banks make report and to whom ? 
 
 128. What is a bank examiner and what are his duties ? 
 
 129. To what extent may national banks hold real estate : 
 
 130. What is meant by the " legal reserve," and how much is it ? 
 
 131. What is the liability of a stockholder in a national bank ? 
 
 132. What is the redemption fund, where is it kept, how much is it, and what is its object? 
 
 133. How is the surplus fund made up ? 
 
 134. What are the qualifications of a national bank director ? 
 
 135. To what extent is his a responsible position, and how might he become personally liable? 
 
 136. What restrictions, if any, are there on the amount of the capital stock ? 
 
 137. What is a savings bank, and wherein does it differ from a national bank ? 
 
 138. Under what laws are they organized ? 
 
 139. How many, and what plans of organization are there ? 
 
 140. Which is preferable, and why ? 
 
 141. Explain fully the mutual plan of organization. 
 
 142. How do savings and national banks differ in the character of their investments ? 
 
 143. Do savings banks make a large profit ? 
 
 144. How may a savings bank be useful to the community ? 
 145 How is money deposited in a savings bank ? 
 
 146. How is money withdrawn from a savings bank ? 
 
 147. Why cannot the active business man use a savings bank account ? 
 
 148. What are trust Companies, and under what laws are they organized ? 
 
 149. What business may a trust company do for you ? 
 
 150. If you were appointed administrator for an estate, how would you care for the money of the estate ? 
 
 151. Name the different kinds of paper money we have in circulation. 
 
 152. Describe the Greenback, tell what it is, how it is secured, and how many there are in circulation. 
 
 153. For what is it a legal tender? 
 
 154. Describe the Treasury Note, tell what it is, how it is secured, and how many there are in circulation. 
 
 155. What are Silver Certificates, how are they secured, and how many are there in circulation ? 
 
 156. How may they be obtained, and are they a legal tender ? 
 
 157. How does the face of a Greenback read ? 
 
 158. How does the face of a Treasury note read ? 
 
 159. How does the face of a Gold Certificate read ? 
 
 160. How does the face of a Silver Certificate read ? 
 
64 REVIEW QUESTIONS. 
 
 161. How does the face of a Bank Bill read? 
 
 162. How much pure gold is there in a gold dollar ? 
 
 163. How much alloy is there in a gold dollar ? 
 
 164. Name our gold coins now being coined ? 
 
 165. What is the weight of a silver dollar and how much of this is pure silver.'' 
 
 166. If bar silver is quoted in the market at 66 cents per ounce, what is the value of the silver in a dollar ? 
 
 167. What is the size of a silver dollar ? 
 
 168. Give two tests for detecting counterfeit coins ? 
 
 169. Give the indications of a counterfeit bill ? 
 
 170. Describe the teller's method of counting currency. 
 
 171. Describe the two methods of manipulating the bills. > 
 
 172. Describe the teller's method of counting coin. 
 
 173. In depositing coin in a bank what ones will they weigh ? 
 
 174. How much will they deduct if a coin be light in weight ? 
 
 175. What is the law on the abrasion of coins? 
 
 176. Why do not banks weigh all coin received and deduct for light weight ? 
 
 177. What is the financial center of the world ? 
 
 178. What is meant by Exchange ? 
 
 179. Why is Exchange on New York sometimes at a discount ? 
 
 180. Why is Exchange on New York sometimes at a premium ? 
 
 181. What class of dealers are frequent buyers of Exchange, and what are frequent sellers ? 
 
 182. How do banks endeavor to maintain their Exchange accounts ? % 
 
 183. What practically limits the rate of Exchange ? 
 
 184. What does the quotation on Exchange indicate? 
 
 185. What effect does the rate of Exchange have on the purchaser of small Exchanges? 
 
 186. How do banks usually treat their depositors in the matter of Exchanges? 
 
 187. Where and how are foreign transactions settled? 
 
 188. What is the balance of trade? 
 
 189. Name the different means by which foreign exchanges are worked ? 
 
 190. Describe a cable transfer. 
 
 191. Into what classes are Bills of Exchange divided? 
 
 192. What are Bank bills, Banker's bills, Commercial bills ? 
 
 193. Which commands the highest price ? 
 
 194. What class of dealers are purchasers of Foreign Exchanges ? 
 
 195. What class have exchanges to sell ? 
 
 196. How are Commercial bills drawn and why ? 
 
 197. What is a clean bill? 
 
 198. What are documentary bills ? 
 
 199. Upon what does the value of a clean bill depend? 
 
 200. Upon what does the value of documentary bills depend ? 
 
 201. What are the documents that usually support a documentary bill ? 
 
 202. What is a letter of hypothecation ? 
 
 203. When three bills are drawn is each supported by documents or only one? 
 
 204. What is a Letter of Indication ? 
 
 205. What is the exact relation between our money and the English pound ? 
 
 206. When is Exchange in our favor and when against us ? 
 
 207. What is the cost of shipping gold abroad ? 
 
 208. What is the highest rate of Exchauge at which gold can be imported ? 
 
 209. What is the lowest rate of Exchange at which gold can be exported? 
 
 210. What is meant by the Bank of England raising the rate of discount, and for what purpose is it done ? 
 
 211. Why do demand bills command a higher price than time bills ? 
 
 212. What are posted rates ? 
 
 213. What are actual rates? 
 
 214. Explain the objects of a clearing house. 
 
 215. Explain the method of doing its business. 
 
 216. What does the settling clerk take with him? 
 
 217. Why is the amount of clearings announced daily, aud what does an increase or decrease in the amount indicate? 
 
 218. In case a bank runs a worthless check through the clearing house, how is the matter settled ? 
 
 219. How are debit balances settled ? 
 
 220. What are the duties of a bank messenger? 
 
 221. What is the rule of business in reference to the half cent ? 
 
 222. What are Building and Loan Associations ? 
 
 223. How do they differ from Savings Banks ? 
 
REVIEW QUESTIONS. 65 
 
 224. Explain how you could use them as a lender. 
 885. Explain how you could use them as a borrower. 
 
 226. What would your monthly payment be for a loan of $2,500 if the interest was 8% and the premium 20J&. 
 
 payable in equal parts for 100 months, and the dues 50 cents per share ? 
 
 227. What are currency certificates and by whom are they used ? 
 
 228. What are clearing house certificates and by whom are they issued and used ? 
 
 229. Why are they issued ? 
 
 230. What is a Letter of Credit, and by whom is it used ? 
 
 231. What are Travelers' Cheques, by whom are they issued, and for what purpose ? 
 
 232. What fee is charged for them ? 
 
 233. Contrast them with Letters of Credit as to cost, convenience, etc. 
 
 234. What is an Express Money Order, by whom are they issued, and for what purpose ? 
 
 235. What is the largest order that will be issued ? 
 
 236. What is the cost of an Express Order ? 
 
 237. How far is an Express Order negotiable ? 
 
 238. Contrast Express Orders with Post Office Orders as to cost, convenience, negotiability, etc. 
 
 239. In depositing an Express Order, how do you endorse it ? 
 
 240. How do these orders provide against their being raised ? 
 
 241. Explain how a package may be registered. 
 
 242. What is the cost of registering ? 
 
 243. What security is there for a registered package ? 
 
 244. Trace a registered package to its destination, explaining fully how it is followed. 
 
 245. Explain fully the system of issuing Postal Money orders. 
 
 246. How do you proceed to buy such an order? 
 
 247. What is the letter of advice ? 
 
 248. What is the rule as to identification of a payee ? 
 
 249. How do you endorse a postal order to deposit it in your bank ? 
 
 250. What are the fees for a postal order ? 
 
 251. How far is such an order negotiable ? 
 
 252. Why are not all offices " Money Order offices " ? , 
 
 253. What is the business of Express companies ? 
 
 254. What are the advantages and disadvantages of using the express instead of the railroad ? 
 
 255. How can a shipper determine in advance the cost of shipping by express ? 
 
 256. What would be the cost of shipping 56 lbs. of merchandise from Chicago to Davenport, la.? 
 
 257. Of 28 lbs. to Hartford, Conn.? 
 
 258. Of 85 lbs. to Wheeling, W. Va.? 
 
 259. Explain in detail how you would prepare a package and ship it by express? , 
 
 260. How would you determine by which company it should be sent ? 
 
 261. Explain the Receipt book and how it is handled. 
 
 262. How is a " prepaid package " handled? 
 
 263. Explain in detail how you would prepare and send a package C. O. L. 
 
 264. What is the object of sending goods in that manner? 
 
 265. How do you fix it that the consignee must pay return charges on the money ? 
 
 266. When you receive an order for goods to be sent C. O. D. is it proper that the consignee should be obliged to 
 
 pay return charges, and if so why ? 
 
 267. How is money sent by Express? 
 
 268. What is the cost of so sending money ? 
 
 269. How is a lost package traced, and if not recovered who would be the loser ? 
 
 270. Explain the manner of shipping goods by freight. 
 
 271. How should the goods be marked ? 
 
 272. What is the freight receipt and how does it differ from a bill of lading? 
 
 273. Explain how houses handle the duplicate freight receipt book. 
 
 274. Why will not banks accept a freight receipt ? 
 
 275. What is the Expense bill ? 
 
 276. What notice is given by most roads of the arrival of goods ? 
 
 277. How do railroads take receipts for goods delivered ? 
 
 278. What is a Bill of Lading ? 
 
 279. What is a Way bill ? 
 
 280. What arrangements can a consignee make to have his goods delivered ? 
 
 281. How far is a Bill of Lading negotiable? 
 
 282. What is the object of a Bill of Lading ? 
 
 283. How does the company guard against two bills of lading being issued for the same goods ? 
 
 284. Explain how a draft and bill of lading are used together. 
 
Ct» REVIEW QUESTIONS. 
 
 285. If you were engaged in buying and shipping grain and had a small capital, explain how you could best 
 
 handle all your capital with the least loss of time. 
 
 286. What is meant by "consigned to shipper's order ? " 
 
 287. How can you ship C. O. D. by freight ? 
 
 288. What are fast freight lines ? 
 
 289. What is gained by shipping by them ? 
 
 290. How are copies of both sides of a correspondence kept ? 
 
 291. Explain in detail how letters and documentt are filed. 
 
 292. Explain how letters are copied. 
 
 293. What is a common method of filing orders ? 
 
 294. Who fills out the order ? 
 
 295. Explain in detail from the receipt of the order until it is filed away. 
 
 296. What are the advantages of the system ? 
 
 297. Who fills in the price ? 
 
 298. What may *he last column be used for ? 
 
 299. What is a Commercial Agency ? 
 
 300. How is their information collected ? 
 
 301. Who has need of the services of such an agency ? 
 
 302. Explain what information may be gotten from their book of reports. 
 
 303. What further information can be obtained ? 
 
 304. How and upon what terms may it be obtained ? 
 
 305. Whose business is it to send a Bill of Account? 
 
 306. Wherein does a Bill differ from an Invoice ? 
 
 307. What shonld a Bill contain ? 
 
 308. What is a Quarter Bill ? 
 
 309. Write a bill for labor performed on different days. 
 
 310. Write a bill for 5 barrels of sugar, each barrel being of a different weight and at 4#c per pound. 
 
 311. What is a credit memorandum, and for what is it used ? 
 
 312. What is a statement, and wherein does it differ from a bill ? 
 
 313. Write a statement with two credits and three debits. 
 
 31 4. When is it customary to send statements ? 
 
 315. In case there is a balance due from previous month, how is it shown ? 
 
 316. How does a corporation differ from a co-partnership ? 
 
 317. Which is to be preferred and why? 
 
 318. How is a corporation organized ? 
 
 319. What is the usual liability of a stockholder? 
 
 320. What is meant by a special charter ? 
 
 321. To whom should application be made for a charter? 
 
 322. Who are directors, and how are they chosen ? 
 
 323. What are the organizers of a corporation called ? 
 
 324. How do stockholders vote ? 
 
 325. What is the cumulative system of voting, and what is its object? 
 
 326. What are the by-laws, and what should they contain ? 
 
 327. What evidence does a stockholder have to show his interest ? 
 
 328. How is stock transferred ? 
 
 329. What is preferred stock? 
 
 330. What is common stock ? 
 
 331. Name a reason for issuing preferred stock. 
 
 332. What is watered stock ? 
 
 333. ' What is cumulative stock ? 
 
 334. What is Treasury stock ? 
 
 335. What are bonds and how do they differ from stocks ? 
 
 336. What is a coupon bond ? 
 
 337. What is a registered bond ? 
 
 338. What is a register office ? 
 
 339. What is a transfer office ? 
 
 340. What is a sinking fund ? 
 
 341. What are First Mortgage Bonds ? 
 
 342. What are consolidated bonds ? 
 
 343. What is a funded debt ? 
 
 344. What is a floating debt ? 
 
 345. Explain how the minority holders of stock may be " frozen out." 
 
 346. What is the Chicago Stock Exchange ? 
 
REVIEW QUESTIONS. 67 
 
 347. What is a stock broker ? ' 
 
 348. What commissions are paid brokers ? 
 
 349. What is a " scalper ? n 
 
 350. What is a speculator ? 
 
 351. What is listing stock, and how is it done? 
 
 352. Is it to the advantage of a corporation to have its stock listed, and if so, how ? 
 
 353. How do the quotations "bid" and "asked" quoted in the market reports, arise? 
 
 354. Define "margin" and explain who gives it. 
 
 855. What is buying " cash ? " 
 
 856. What is buying ' ' regular ? ' ' 
 
 357. What is buying " for the account ? " 
 
 358. What is settlement day ? 
 
 359. What is meant by the terms " bulls," " bears," " longs " and " shorts ? " 
 
 360. What is " covering ? " 
 
 361. What is a stop order ? 
 
 362. What is a corner? 
 
 363. What is ' ' seller three " ? 
 
 364. Explain in detail how you would give an order to a broker, how it would be executed, delivered and paid for ? 
 
 365. What papers would pass between you ? 
 
 366. Why are " puts " and "calls " not permitted under the rules ? 
 
 367. What is the Board of Trade ? 
 
 368. What are its objects ? 
 
 369. How is it governed ? 
 
 370. What commissions are paid ? 
 
 371. Trace a car of grain from the country station until sold on the board for export or consumption. 
 
 372. Explain the duties of grain inspectors. 
 
 373. What is registering a receipt ? 
 
 374. What are grades and who establishes them ? 
 
 875. What is a warehouse receipt and what part does it play on the board ? 
 
 376. What are the rules in reference to storage ? 
 
 377. Explain how business is done "on the board." 
 
 378. Explain how business is done between the brokers. 
 
 379. What security does one broker have of another ? 
 
 380. What is the Open Board ? 
 
 381 . What is a Bucket Shop ? 
 
 382. Into how many and what classes is domestic mail matter divided ? 
 
 383. Of what does the first consist and what is the rate ? 
 
 384. Of what does the second class consist, and. what is the rate? 
 
 385. Of what does the third class consist, and what is the rate ? 
 
 386. Define a circular. 
 
 387. Of what does the fourth class consist, and what is the rate ? 
 
 388. What is the limit of weight in mailable matter ? 
 
 389. What is the " Board of Underwriters ? " 
 
 390. How is a mortgage secured as to insurance ? 
 
 391. What is the language used in the policy in such a case ? 
 
 392. Can the insured surrender his policy, and if so, what rebate can he get ? 
 
 393. What is the 75 per cent, co-insurance clause ? 
 
 394. Explain the three-quarter loss clause. 
 
 395. Explain the three-quarter value clause. 
 
 396. Explain the average clause. 
 
 397. When do policies expire? 
 
 398. Explain how messages are sent by telegraph. 
 
 399. What are " night messages? " . 
 
 400. What would be the cost of sending a message of 13 words from Chicago to Omaha, Neb.? 
 
INDEX. 
 
 A. PAGE 
 
 Assignment 5 
 
 Acceptance 14 
 
 Payable at a Certain Bank 15 
 
 Advantages of Taking a Note 18 
 
 Associations, Building and Loan 30 
 
 Agencies, Commercial 45 
 
 About Corporations 52 
 
 B. 
 
 Broken Lots 5 
 
 Bank Account. ; 7 
 
 Advantages of. 7 
 
 How to Keep 8 
 
 Bank Passbook 8 
 
 Bank Draft 11 
 
 Requisition for 11 
 
 Remitting by 16 
 
 Banks 18 
 
 National 18 
 
 Savings 19 
 
 Bank Messengers 30 
 
 Bills, How to Detect Counterfeit 21 
 
 Commercial 24 
 
 Bankers.. 24 
 
 Of Exchange 24 
 
 Of Lading 41 
 
 Expense 40 
 
 Billing 45 
 
 Bonds 49 
 
 First Mortgage 51 
 
 Consolidated 51 
 
 Building and Loan Associations 30 
 
 C. 
 
 Creditors, Preferred 5 
 
 Checks 7 
 
 Paying Bills by 7 
 
 Why Made to Order 7 
 
 When Should be Presented 7 
 
 Certified : 9 
 
 Drawing of 9 
 
 Stopping Payment of. 9 
 
 Of Suburban Banks 17 
 
 For Remitting 16 
 
 Drawing Cash on Your Own 17 
 
 Worthless 30 
 
 Certificate of Deposit 10 
 
 To Remit Money 16 
 
 Certificates 21 
 
 Gold 21 
 
 Certificates. pagk 
 
 Silver 21 
 
 Currency 31 
 
 Clearing House 31 
 
 Insurance 25 
 
 Origin 25 
 
 Inspection 25 
 
 Coin, how to detect Counterfeit :. 21 
 
 How to Count 22 
 
 Abrasion of 22 
 
 Change, How to Make 22 
 
 Commercial Credits 24 
 
 Cable Transfers 24 
 
 Clearing House 27-30 
 
 Certificates 31 
 
 CO. D 37 
 
 Correspondence, Filing 42 
 
 Commercial Agency 45 
 
 Credit Memoranda 47 
 
 Corporations 48-51 
 
 Confirmation Slips 57 
 
 D. 
 
 Drafts, Paid 6 
 
 Form of. 6-14 
 
 Acceptance of. 15 
 
 Collections by 15 
 
 Through a Certain Bank 15 
 
 Bank 11 
 
 Bank, How to Buy 11 
 
 Bank, To Remit by 16 
 
 Personal, To Remit by 16 
 
 And Bill of Lading 40 
 
 Requisition for Bank 11 
 
 Deposit, How to 7 
 
 Of Fractional Coins 7 
 
 In Savings Bank 20 
 
 Certificate of 10 
 
 Depositing, About 7 
 
 Postal Orders 34 
 
 Express Money Orders 33 
 
 Do Not 10 
 
 Domestic Exchange 23 
 
 Debt, Funded 51 
 
 Floating ; 51 
 
 E. 
 
 Endorsements 11 
 
 For Deposit 11 
 
 For Collection 11 
 
 New Rule of Clearing House 12 
 
 68 
 
INDEX. 
 
 09 
 
 Endorsements. pack 
 
 For Partial Payment 12 
 
 Without Recourse 12 
 
 Of Express Orders 33 
 
 Of Postal Orders 34 
 
 Express Orders, What 33 
 
 Cost of. 33 
 
 Deposit of 33 
 
 Exchange, Domestic 23 
 
 Why, Above or Below Par 23 
 
 Exchange. Foreign 24 
 
 Express Companies 35 
 
 Express, Cost of Shipping by 36 
 
 C. O. D 37 
 
 Sending Money 37 
 
 Expense Bill 40 
 
 F. 
 
 Foreign Exchange 24 
 
 Freight, Shipping by 38 
 
 Fast Freight Lines 41 
 
 Filing Correspondence 42 
 
 Filing Orders 43 
 
 Fund, Sinking 51 
 
 Funded Debt 51 
 
 Floating Debt 51 
 
 G. 
 
 Guaranteeing Other's Paper 12 
 
 Greenbacks 20 
 
 Gold Certificates 20 
 
 Gold Coin 21 
 
 Grain 55 
 
 Inspection of. 55 
 
 Grades of. 55 
 
 Shipping 55 
 
 H. 
 
 How to Make Change 22 
 
 How to Count Currency 22 
 
 How to Count Coin 22 
 
 How to Detect Counterfeit Bills 21 
 
 How to Detect Counterfeit Coin 21 
 
 How to Remit Money 16 
 
 How to Draw Through a Certain Bank.... 15 
 
 How Collections are Made 15 
 
 Hypothecation, Letter of 25 
 
 Half-Cent, The .* 30 
 
 How to Ship by Express 86 
 
 I. 
 
 Insolvency, What is 59 
 
 How forced 5 
 
 Importers, Definition of 5 
 
 
 
 PAGE 
 
 Inspection of Grain 55 
 
 Certificate of. 55 
 
 Insurance, Fire 8 
 
 J. 
 
 Jobbers, Definition of 6 
 
 Joint Note '. 18 
 
 K. 
 
 Kiting, What is. 
 
 18 
 
 L. 
 
 Legal Tender 18 
 
 Letter of Hypothecation 25 
 
 Lading, Bill of.. 25 
 
 And Draft , 40 
 
 Form of 41 
 
 Letters of Credit ; 26 
 
 Form of. 32 
 
 M. 
 
 Money, How to Remit 16 
 
 In Stamps 16 
 
 In Currency 16 
 
 By Registered Letter 16 
 
 By Personal Check 16 
 
 By Personal Draft 16 
 
 By Bank Draft 16 
 
 By Certificate of Deposit 16 
 
 By Postal Order 17 
 
 By Express Order 17 
 
 By Telegraph 17 
 
 Kinds of Paper 20 
 
 Kinds of Metallic 21 
 
 Method of Dealing in Securities 52 
 
 Margin 52 
 
 Deposits for 56 
 
 N. 
 
 Notes, Paid 6 
 
 Form of. 6 
 
 Judgment 14 
 
 Collateral 35 
 
 Advantages of Taking 18 
 
 National Banks 18 
 
 National Bank Bills 20 
 
 O. 
 
 Orders 33 
 
 Express Money 33 
 
 Postal Money 84 
 
70 
 
 INDEX. 
 
 PAGE 
 
 Organization of a Corporation 48 
 
 Of Board of Trade 54 
 
 Orders for Purchase of Stock 52 
 
 P. 
 
 Protest 15 
 
 Notice Not to .:.. 15 
 
 Personal Draft in Remitting 16 
 
 Personal Check in Remitting 16 
 
 Postal Orders 34 
 
 In Remitting 17 
 
 How Bought 35 
 
 Application for 35 
 
 Cost of. 35 
 
 Preferred Stock 49 
 
 Postal, Classes 58 
 
 Rates 58 
 
 Quotations on Foreign Exchange. 
 
 26 
 
 R. 
 
 Retailer, Definition of 5 
 
 Receipts 6 
 
 Warehouse 56 
 
 Registered Letter 16 
 
 To Remit by 16 
 
 About 34 
 
 Registrar 55 
 
 Rates, Postal 58 
 
 S. 
 
 Seconds 5 
 
 Suburban Banks 17 
 
 Check of. 17 
 
 Several Note 18 
 
 Safety Deposit Vaults 18 
 
 Savings Banks 19 
 
 Silver Certificates... 20 
 
 Silver Coins ; 21 
 
 PAGE 
 
 Statements, Monthly 47 
 
 Stock, Certificates 48-49 
 
 Common 49 
 
 Preferred 49 
 
 Watered 49 
 
 Treasury 49 
 
 Stock Exchange, Chicago 51 
 
 Commissions i... 51 
 
 Terms Used 51 
 
 Order on 52 
 
 Speculative Trade 54 
 
 Shipping Grain 55 
 
 Storage Rates 56 
 
 Slips, Confirmation 57 
 
 T. 
 
 Time, Computation of 18 
 
 Trust Companies. 20 
 
 Trust Funds, Care of 20 
 
 Tre/sury Notes 20 
 
 Traveler's Cheques 32 
 
 Treasury Stock 49 
 
 Transfer of Stock 49 
 
 Ticker 53 
 
 Trade, Board of 54 
 
 Organization 54 
 
 Government 54 
 
 Commission 54 
 
 Telegraph, Messages .■ 59 
 
 U. 
 Underwriters, Board of. 
 
 V. 
 
 Value Received 
 
 Voting, Stockholders. 
 
 60 
 
 18 
 
 48 
 
 W. 
 
 Wholesaler, Definition of 5 
 
 Written Contracts 5 
 
 Watered Stock 49 
 
YE Ooo- 
 
 
 sit ;4S 
 
 UNIVERSITY OF CALIFORNIA LIBRARY 
 

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