It is a remarkable fact that many men who have shown remarkable shrewdness in conducting a business in which a fortune may have been accumulated, exhibit the judgment of children when it comes to making investments.
There are able lawyers who have made fortunes in the practice of the profession which they understood, only to lose them by investments in mines or other ventures, about which they knew absolutely nothing but what was told them by the scheming speculator and smooth-tongued promoter.
As has been intimated before in these pages, there is a great difference between saving through and hoarding through a spirit of miserliness.
Every wage or salary earner, no matter how small his compensation, should try to lay by something of that little as a provision against the unproductive days.
No matter how small the amount a man has set aside, after paying for life's necessities and meeting all just debts, he is to that extent a capitalist.
The miser would hide his savings out of reach, but the man with the foresight to save will usually have the judgment to place these savings where they will fructify and grow, producing the fruitage known as interest.
The young man or the young woman, or any one else who places his little accumulations in a savings bank, has begun a form of investment that may, if persisted in, place him or her above want, even if it does not entitle either to a place on the lists of great capitalists.
The capitalist not only has money of his own to invest, but he may and very often does need more money properly to exploit the enterprises in which he is engaged.
Money loaned to such men, after being assured of their ability and integrity, is an advantage to the lender as it is to the user.
The lender's profit is assured if the enterprise does not fail, and the added capital not only insures against failure, but it may enable the manager to succeed beyond any expectations he could have if forced to carry on the work with only his own resources.
The capitalist may choose to buy land in the suburbs of a city and build thereon a house to be sold or rented. This should always be made to secure the money borrowed.
A capitalist may establish a fund from which, on good security, the business men of the community may obtain loans, for which they get a higher interest than that which they undertake to pay to those whose money they are using.
Again a capitalist may undertake to loan to farmers, who have not the means to carry on the work, but who are anxious to make their lands more productive, through drainage and crop rotation. In this case the money loaned is secured by the usual bond and mortgage.
Or it may be that another body of men is anxious to start a great manufacturing enterprise in the neighborhood, but has not enough money to place the venture on a paying basis.
In the latter case it appeals to the capitalist, and he, though not bearing enough available means of his own, undertakes the work with the knowledge that he can rely on the small investors, whose contributions he has before managed successfully.
Or it may be that the manufacturing company does not ask the capitalist to assist, but itself goes to the small investor with a prospectus of the enterprise, and offers to sell stock in the concern at $50 or $100 a share, as the case may be.
This gives a chance to enjoy the profits, be they great or small; but with the chance for larger profits there comes the greater risk which must always be assumed in such cases.
Sometimes, when a company is starting, its stock may be put below par. This stock, in the event of success, may appreciate, as with some bank and other corporation stocks, many times above the par value.
When stocks sell in the open market for their face value, they are said to be at par.
Most companies, organized on a stock basis, issue stocks of two kinds. One is known as "common" the other as "preferred."
As the name implies, preferred stock (its rate of interest is always fixed) is entitled to be paid out of the net dividends first.
Whatever is left after paying the preferred stock interest is divided up equally among the shares of common stock, each getting according to his holdings.
Sometimes the dividends on common stock are far greater than those on the preferred. The preferred stock dividends are regarded as a fixed charge, but there can be no limit as to the payments on the common stock, if the funds are available.
The stocks of railroads, factories, banks and other enterprises may be good forms of investment, and for this they are often held for long periods by investors for revenue.
Most stocks, however, particularly of railroads, are continually changing hands. The buying and selling of such securities has grown to be an enormous business, managed largely by men known as "stock brokers," many of whom are strong factors in the financial world.
As a rule, the buying and selling of stocks through brokers is a hazardous form of speculation, which has in it all the elements of gambling, and we cannot advise too strongly against it.
There is another kind of stock, which some companies keep in their safes to meet an emergency. This is known as "treasury stock," and, like the preferred, its rate of interest is fixed.
Let us suppose that a company is capitalized and prints stock to the amount of $100,000.
This company sells $80,000 worth, and the officers believe that they can force the enterprise to success with the money on hand.
Now, it follows that, with the same amount of earnings, the profits on $80,000 will be greater than on $100,000, so the $20,000 unsold stock is held in reserve.
If to extend the business, or for any other reason, it is necessary to have more money, the treasury stock may be sold to secure the extra capital.
If the business is placed on a basis where its success is beyond all question, then the treasury stock may be dividedpro ratabetween the holders of the other stock, for, till disposed of in some way, it was an asset common to the whole company.
Each stock certificate tells when dividends are declared; they may be paid quarterly, half yearly, or annually.
The best way in which savings can be invested is to use them in the extension of the business in which they were made.
The wage earner and the man on a salary cannot, of course, do this, but the farmer, the small tradesman, and the mechanic, who is his own employer, may be able to do so. And so, before looking for a field for investment outside, such men should look about them and consider how best the money may be used right on the ground.
But after considering the points suggested, the man who has some money may not be able to find a secure and profitable place for it in or near his own home. One of the safest forms of investments is bonds, though, as with other forms of security, the rate of interest declines as the margin of safety increases.
If a well-established stock company should wish for any reason to increase its available cash, it may issue bonds, or certificate of indebtedness, bearing from four to five per cent interest, payable semi-annually.
These bonds may be transferred the same as stock. They are a good form of security when it is desired to borrow money from the bank, and for many purposes they are as available as so much cash.
Such bonds are issued for a specified number of years and have coupons attached, which are cut off when interest is due, and presented to the treasurer of the company for payment.
These bonds are secured by a mortgage or deed of trust on all the property of the corporation they represent.
To redeem these bonds, when due, the company annually sets apart a sum, known as a "Sinking fund," for their redemption.
Such bonds are far safer than any form of the company's stock, for they bear interest that must be met, whether or not dividends are declared.
As with a real estate mortgage, the property pledged in the bond should be defined.
Every railroad in the country has been built and equipped by the sale of its bonds. In such cases amounts of stock of the same, or approximately the face value of the bond, have been given to the purchaser as a bonus or inducement. Of course, the controlling stock is always retained by the promoters; and it is through the representation of this stock that all the business of the corporation is carried on.
The cases are few where any money was paid directly for the original issue of any railroad stock.
Bonds sold to build a road are usually known as "construction" bonds. There may be another bond issue for equipment—with a stock bonus—and still other bonds, each series stating the property pledged and the purpose for which the money from sales is to be used.
TheChristian Herald, in one of its recent financial articles, clearly defines this species of bonds, as follows:
"Railroad bonds are usually pledged by the President and Treasurer of the railroad and by the Trustees, to whom the bonds are made out, and who must defend the rights of bondholders, should the company fail to meet any of the obligations it undertook in the mortgage deed.
"In other words, a bond is the Corporation's promissory note for the money originally paid by the investor, with interest for the same, to be paid to the investor in stated amounts at stated intervals; and to guarantee its good faith in the matter, the Company pledges the bondholder an interest in certain property in its possession. It follows that a bond has a first call upon the property rights of the corporation; that it represents something tangible; that it pays a definite amount of interest, and that it may be reduced at its full value at a certain time."
Bonds, like wheat, have their selling prices quoted from day to day, and they are equally a thing of purchase and sale.
There are banks and brokerage firms that make a specialty of bonds, and most of these houses are entirely reliable; still, the novice in such things would do well to investigate for himself before investing in any bond recommended by any seller.
It is the purpose of the seller to sell; it should be equally the purpose of the buyer not to be "sold."
Our government, state and municipal bonds speak for themselves, and in the main require no examination as to the security, though there have been cities and even states that have defaulted in their payments.
Bond houses and banks of established reputation cannot afford to deceive; they receive their compensation in the way of commissions on sales, and their characterization of the bonds may be accepted without question, for they invariably investigate the bonds, before they lend their names to them by offering them for sale.
If there is any doubt in the mind of the would be purchaser as to the character of the seller, that should be the first thing investigated.
What the buyer must satisfy himself of is:
1. Who is the seller? 2. What do the bonds represent? 3. Are they negotiable? and 4. Can they be sold again for about their face value?
Every one who has saved money, it is to be supposed, has a bank account and is acquainted with the president of his local bank. When in doubt, the advice of such a man may be of great help.
If a man is making a living he should not change his business after he has passed middle life, unless, indeed, he has a guarantee that the new venture will be greatly to his advantage.
The best business for the average man is that which affords him the most pleasure in carrying it on, or at least with which he is most familiar.
Happiness in one's work means far more than the accumulation of a fortune in discomfort.
Having made your credit and business standing good, keep them good by an adherence to the same course.
If you can avoid it, do not loan your name to every needy friend that comes along. Your neighbors question your good judgment every time you have to meet a note which you were coaxed into endorsing. You would have saved yourself by loaning the money outright.
Do not deceive yourself into the belief that you are making money when, as a matter of fact, you may be losing.
You buy an article for two dollars and sell it for two and a half, and you say to yourself: "There is fifty cents made." But is it? Let us see.
Before crediting your business with that fifty cents, you should have considered these points.
1. The loss of interest on that two dollars. 2. Your own time or other time paid for. 3. The capital invested in things not sold. 4. The rent. 5. The transportation, insurance, heat, light, bad accounts, unsalable goods, taxes, public donations, and the flood of items that go to swell the outlay of every merchant, whether in the great city or at the country crossroads.
Every man in trade should make an inventory of his stock at least once a year. Having done this, he should give his stock a fresh appearance, whether new goods be added or not, by relegating to the scrap heap, cellar or the garret all the dingy, dirty, disreputable stuff that he could not sell or give away, and which has induced sore eyes whenever seen.
Keep a stock book.
Quite as important as keeping the stock in order is keeping the books in good shape.
At least once a year the books should be weeded out. Why carry as bills collectable accounts which you have been assured, for years, would never be paid?
Wipe them out and charge them to profit and loss.
Where machinery is used, it is a good plan to charge off every year ten per cent of the cost; this to make good the loss from wear and tear.
It is only by annual house cleanings and account clearings that you can tell about how you stand.
It is usually wise for a woman, married or single, to keep her real estate and her money, if she have any, in her own name. So also with property bought with her money.
In these cases the woman should deal with her husband, or the members of her family, the same as she would with strangers with whom she is transacting business.
Some may say that this suggests a want of confidence and a lack of that affection that should exist between husband and wife or near kinsfolk. Such an objection is sheer sentimentality. Be as open handed and generous as you will with your loved ones, but when it comes to business, let the work be done in a strictly business way or not at all.
Many a good business has gone to ruin after the death of the owner and manager because he had kept his wife in blank ignorance of his affairs and the way in which he conducted them.
Many a business, that just dragged along till the death of the manager, has sprung into new life when the widow took charge. This must in part be credited to natural ability and inborn pluck and energy, but even these gifts could not have availed if the woman had been left in ignorance of business methods.
Women, like men, are awkward in new positions, not so much from a want of ability as a lack of experience.
Put the average man suddenly in charge of a house, and he will soon demonstrate his helplessness. The woman's deftness comes from her experience.
As far as it is possible, every husband should post his wife as to his methods of doing business.
He should not keep her ignorant of his financial affairs.
If he conceal from her the amount of his secure holdings, it may be that he hopes to surprise her at his death, or long before that event. But if he have any regard for his family, he should not hide from her the obligations which may spell ruin if the wife is not prepared in advance to meet them.
Whether the husband lives or dies, the wife must still care for the children and attend to her never-lessening household duties. Think of her as taking on the added burdens of a business of which she is ignorant.
There are many prosperous husbands to whom what has just been said will not apply, but if you should ask them the secret of their success they will not hesitate to tell you that when they married they took their wives into full partnership, business secrets and all.
When you send your children to school it is that the training there received may qualify them to fight the better the ceaseless life battle.
Of course, we should not regard all education from a business viewpoint. Money apart, learning is its own greatest reward.
It widens the horizon at every step, and lifts the soul into strength and a profounder worship. But it will not do to overlook the business side of the training which the child should receive in school and out of it.
It is all very well to teach children the sources of the family revenue and the way to secure it. It is right that they should be impressed with the dignity of labor and trained in the ways of earning money, but it is far more important that they should be taught how to spend money, so as to get the most good from it, once it is earned.
The boy or girl is in a safe way to learn self-control and build up character when he or she, with some nickels at command, can pass a candy or a fruit shop without being compelled to spend their cash assets.
Children, wherever it is possible, should be given opportunities for earning money, which they can feel is "really and truly" their own.
They should not be made to feel that the money is not actually theirs, to do with as they please, but they should be taught self- denial, and that they must not get rid of their earnings by the purchase of things not needed.
On the farm, children unconsciously learn much through occasional work and constant observation, but away from the farm, boys and girls are apt to know little or nothing of the work in which the father, the bread winner, is engaged.
Where it is possible, the children should be made familiar by actual contact with the father's work.
This knowledge may never be used, still it will have value as a factor in the child's training, for in our modern life all business is inter-related.
Let the youngsters know something about banks by entrusting them there when old enough.
Teach them to keep accounts of their own little money affairs, their earnings, their expenditures, and their balances.
If they should borrow, even a cent, see that they return it at the time agreed on. Impress on them the fact that debt is a burden which it is well to get rid of as soon as possible, if one would stand erect and be entirely free.
All this can be quietly inculcated into the mind of the child without making him old-fashioned or miserly. The more he knows of the world the more he can enjoy it in a wholesome way.
If things are said in this chapter that seem like a repetition of things already told, it is that their importance warrants a repetition in another form.
"There are no pockets in a shroud," it is said. True it is that we cannot take material things with us to the other side of the grave, and so before the end comes it is well to make preparations for their disposition.
There are three ways of getting possession of property:
1. To have it given. 2. To earn it. 3. To steal it.
We shall not consider the last method; that is the business of the law, but let us look at the first.
Property is given in two ways:
1. By direct gift from one to another. 2. By will, when the amount is payable on the death of the donor.
Of course, the widow and children, if there be any, are first to be considered in either of the cases named.
Many people, when the end is nearing, think that it is better to make sure that their wealth will reach the right hands by giving it direct and at once.
Now, no matter the nobility of the motive that prompts such an act, it is one which, on the whole, cannot be commended.
It is all very well to spend available means in order to set a son or daughter up in business, but such sums, if there are other heirs, should be charged against the share of the probable donee, with interest, and a record made of the same.
Under no circumstances should old people, who, after raising a family and living honorable lives, have saved enough to own their home and secure an income for their declining years, deed or give this property to their children, or to any one else, in consideration of their having all their subsequent wants met.
The better way for the farmer, the merchant, or the manufacturer, when he feels the years pressing heavily and that he can no longer attend properly to the old demands on him, is to shift by a properly drawn contract the business management of the enterprise to his children, or to those whom he wishes to place in charge.
In this way the ownership is not changed, and if the new management should prove to be inefficient, it can be placed in more efficient hands.
As has been said, every person having property of any kind to dispose of should make a will.
Already ways have been given as to how wills should be made and estates administered, but to these it may be well to add another point.
Do not imagine that the making of a will shortens life.
Too often, after the demise of a testator who it is known has made a will, the heirs cannot find the document, and the lawyer who drew it knows nothing more about it.
Many men leave their wills with their lawyers. If this should not be done, then it would be well to keep it in the safe of the bank in which the testator has his account.
But whether in these places or another, there should be no doubt as to the existence of a will, or the place in which it may be found.
Only the last will should be kept; all preceding wills should be destroyed.
While writing about the care of wills, we are struck with the recollection that wills are not the only papers of value that are apt to be mislaid or lost.
Never pay out money without taking a receipt, and never receive money without giving one.
You are not responsible for the care of the receipts you give, but you certainly are for the receipts you receive.
The trained business man has a place for everything, but there is no reason why the man not so well trained should have to turn his shop or his home upside down every time he wants a paper that proves he has paid a bill, which he must pay again if that receipt is lost.
Everything may be regarded as "lost" that cannot be found, even if you are sure "it is about somewhere."
No valuable paper should be "about." The only place for it is just where you can lay your hand on it when wanted.
In addition to keeping your papers where they can be found the instant they are wanted, see to it that every paper is self- explanatory and clear of meaning on the face of it.
It has been advised that the stub be always filled out before the check, and that the check be then copied from the stub. This course will greatly lessen the chances of disagreement between the two.
When the last check in the book has been filled and torn out, do not throw away the stubs. They contain important data and may be of use in proving payment should a question arise.
In like manner, never destroy the cancelled checks handed you by the cashier when your bank account has been balanced. Each of these checks, if drawn to order as it should be, is a receipt, a voucher, for some payment that may possibly be demanded again.
Be on the safe side.
It may be well to repeat again, in more condensed form, just how money may be safely sent to a distance.
1. By bank draft, payable to your order and endorsed over to the person whom you wish to pay. The party receiving the draft must endorse it before he can collect, and this endorsement is a receipt for the money, as the cancelled draft must eventually come into your possession. 2. You can buy an express order up to fifty dollars, but you may send money in a package to any amount. Only banks or large dealers in money do this. Like the bank draft, the express order must be endorsed by the receiver, and the express company returns it to you, when it becomes a receipt. 3. By post office orders, up to one hundred dollars. 4. By postal notes, in small amounts. 5. By telegraph. 6. By transmitting a personal check. 7. By a trusted messenger authorized to get a receipt.
The bank draft is the very best way of transmitting money.
As has been said, drafts can be bought at any bank, and they should always be made payable to your order.
You want to pay a bill of goods to Lloyd, Smith and Company, NewYork, so you sign on the back of your draft for the amount:
Pay to the order ofLloyd, Smith and Company,Henry C. Robbins.
Lloyd, Smith and Company must endorse the draft before it can be cashed. The draft, after payment, is returned to you, and it becomes the best form of receipt.
Were you ever at the Dead Letter Office in Washington? If you have never paid such a visit, you can form no conception of the tons, the hundreds of thousands of letters and parcels that are lost every year in the mails.
Unaccounted for drafts, checks, postal orders, books, jewelry, medicine, everything, indeed, that the mails will agree to carry, may be found piled in that cemetery of lost communications, the Dead Letter Office.
Have you added to the mortuary list?
All these deaths, like many of living creatures, are due to carelessness.
As a rule, the sender is to blame. He has misdirected. He has placed papers not properly folded in the envelope and then neglected to seal it. He has neglected to write any address at all, and dropped the letter into the box. Again he has addressed the parcel, but neither men nor angels can decipher the writing.
The note, as has been said, is one of the most usual forms of obligation, yet misunderstandings often arise as to its settlement.
Here are the points that must be attended to, nor shall we offer any excuse for repeating them collectively:
1. The date and amount must be so plainly written as to leave no doubt as to either. 2. The rate of interest, if any, must be clearly expressed. 3. The post office address of the signer or signees must be written opposite the name. 4. The note should be made payable at a definite place and on a definite date. 5. In taking a note or other obligation from a person who cannot write, be sure to have his "x" mark witnessed.
Should you receipt certificates of stock as security for the payment of a note, or the payment of any other debt, be sure to notify the company issuing them.
In giving this notice, which should be done at once, state clearly the number of shares you hold, the number of the certificates and to whom issued.
The enforcement of this rule will depend altogether on the character of the person with whom you are dealing.
Never, if you can help it, buy a past due note, especially if it is not secured by a mortgage.
If a note, which a third party has endorsed, becomes due, never agree to an extension of time without getting the written consent of the endorser.
Many men have lost through their ignorance of this essential transaction.
We are not quite through with the note.
When making a payment of principal or interest on a note, be sure to take a receipt for the amount, stating specifically what the payment is to be credited to. In addition, if it be possible, see that the sum paid be endorsed on the back of the note itself.
The endorsement of the sum paid on the back of the note bars its being negotiated for more than the amount actually due.
Sometimes the owner and the maker of a note live at points some distance apart. If you were the maker of the note, and wanted to make a payment, but wished to avoid the expense and annoyance of a trip, what should be done?
In this case a good plan would be to write to the owner of the note, asking him to send it by a certain bank in your neighborhood where you can pay. The bank will receive the cash, make the endorsement in your presence, and then send its check for the amount with the note to the owner.
You must pay the cost of this transaction.
Or you may send the amount to be credited on your note, through a bank draft, as already indicated.
Never destroy a cancelled note.
If you have money at a bank your note will form the chief evidence of indebtedness and be the paper for which the security is pledged.
Keep careful track of the date of payment and the amount. There must be no neglect or carelessness.
Never permit your note to go to protest.
If for any reason payment cannot be made at the time fixed, then the better way is to go, as soon as this is learned, to the bank or other holder of the note, and frankly explain the situation.
Bankers are not shylocks. They realize that good and responsible men are often disappointed in their collections, or in the payment of a sum on which they depended for the settlement of their account with the bank, and in such a case they are usually willing to grant an extension.
Private individuals, as note holders, should be treated in just the same way.
When calling at a bank for your note, always give the exact date on which the note falls due.
If the note belongs to another party, and is held by the bank for collection, then mention the name of the person to whom it was originally given.
If the bank has sent you a written notice about the note, take the notice with you. It will be found to contain all the desired facts.
Banks keep their own notes in one place and those of their customers in another.
Banks keep each date by itself, and can so find required notes more readily if the owner's names and the dates are given.
Remember a mortgage is a lien or security given for the payment of a note.
If you get a mortgage, have it recorded at once.
If you pay off a mortgage, take it at once to the office of record and have the discharge of the instrument properly entered on the folio in which the mortgage is recorded.
Many lawsuits have resulted from the temporary neglect of this important duty.
Sometimes a man will give a number of notes and secure them by one mortgage.
The notes may pass into the hands of a number of people.
Let us suppose that you hold one note and the mortgage, and that the mortgagee comes to you and tenders the amount of your note, should you then surrender the mortgage to him?
By no means, until the last note is paid that mortgage remains as security, and the holder of it is responsible for its safety to the holders of the other notes.
In such a case it is better to have the mortgage held by one party for the protection of all.
When a person not accustomed to managing money comes into the possession of a sum that it is not safe to carry about in the pocket, what should he do with it?
Obviously the first answer to this question must be "He should put it in the bank."
We have already given hints as to investments, and to these it is not necessary to refer again, we are now considering another and not an unusual phase of such a case.
Young men and women of all ages are very apt to be inexperienced in these matters. As soon as it becomes known that such people have come into the possession of a goodly amount of cash, which they are not considered competent to manage, it is surprising how past acquaintances suddenly pose as old and unselfish friends, each with a scheme for doubling the money while the owner is looking at it.
Now, there may be good, honest friends who are eager to advise and help in a case of this kind, but they are sure to be outnumbered by advisers who have their own little axes to grind.
Our advice is "Don't be in a hurry to invest. Your cash is quite safe while in bank."
But no matter how promising, do not invest your money in a business you know nothing about, even if it does carry with it a position and a salary.
Find a good honest lawyer, despite sneers to the contrary, we believe most men in the profession are of this character, and ask his advice, and pay for his help if papers are to be drawn.
Buying rentable real estate is usually a good investment, provided always that the price is reasonable, the title clear, and the chances of its advancement pretty certain.
It is estimated that every man and woman in the United States belongs to one or more societies of some character, and this is not an overstatement.
Every member of such an organization is such by reason of election and the payment of dues.
If you are a member of, or a pledged contributor to, a church, lodge, grange, or other society, you should regard the prompt payment of your dues as sacred as any other form of obligation.
The expenses of a properly conducted church are always considerable, even in small communities. It is a disgrace to the Christian organization that, after forcing down the pastor's compensation to the barest cost of life's necessities, then force him to run into debt if he and his family would live, or to be forced continually to remind the trustees that his salary is far in arrears.
If you belong to a lodge or other society, leave it if you honestly feel that you cannot afford the dues. Neglect to do this and your name will be dropped from the rolls on which it never should have been placed.
Never receive money from any one without counting it. Count it at once and in the presence of the giver.
Let it make no difference, banker, merchant, kinsman or friend, do not fear to give offence, but right then and there, count the money he gave you.
Of course, these people are honest, but did it ever occur to you that honest people often make mistakes?
Whenever you pay another money, if he does not do so himself, you should insist that he count it in your presence.
If you do this you won't lose a friend, but if you do not do it you may make an enemy, should the man come back to say you made a mistake and underpaid him, and you very properly refuse to honor his claim.
Do not, if you can possibly avoid it, keep money around your house, in your place of business, or on your person.
The professional thief is ever on the watch for chances to take unto himself all the money in sight.
Pickpockets reap their harvest from money carriers.
The burglar may steal or fire may destroy money left in the house.
A bank, if not near one then a safe, is the best place for money, though safes have been broken into and robbed.
Do not make a display of money at any time, but particularly in a public place.
If you are drawing money from a bank, count it quickly and quietly, then secure it in an inside pocket that cannot be reached without unbuttoning.
Never cash a check for a man whom you do not know to be square.
The same applies to the endorsement of checks.
Always be courteous in travelling, but never take the chance acquaintance of the steamboat or car into your confidence.
Keep an eye on the man who "fortunately is going just your way."
Watch out for the fellow who knows the leading men of your town and is a cousin of Judge Smith.
Do not respond if such men ask you to cash a small check or make a slight advance till his draft arrives.
Do not accept the invitation of strangers to visit any place.
Avoid the confidence of the over-dressed, but slightly intoxicated young fellow who "has been out with college chums." He is not a college man, nor has he been drinking.
" Italian ditto—The same as above.° Degrees.' Primes, Minutes, Test." Seconds, Inches. Thus, 7° 20' 10" in circular measure,or 7' 20" 10''' in duodecimal long measure.I1 One and one-fourth.I2 One and one-half.I3 One and three-fourths.+ Latin plus, more—Addition.- Latin minus, less—Subtraction.X By, or into. Multiplication. Also area, as 20 X 5, read20 by 5, means 20 long and 5 wide.÷ Divided by—Division. The : above is also a sign ofdivision as used in ratio, thus, 4:7; and the — aloneis a sign of division as used in writing fractions,thus, 4/7.= Equals. The double ::, as used in proportion, is also asign of equality, thus, 4:7::12:21.% Per centum. By the hundred. Rate of interest.P Per, by or through.$ Dollars; said to be a contraction of U. S. for UnitedStates money.# Means Number, if before a figure, as #90, but pounds ifwritten after, as 90#.@ Latin ad., meaning to or at.A1. First Class, the best.A. or Ans. Answer.Acc., Acct. or a/c, Account.Adv. Latin ad valorem, according to value.Admr. Administrator.Admx. Administratrix.Adv. or Ad., Advertisement.Agt. Agent.Amt. Amount.a/o At sight or Account Sales.Ass'd. Assorted.Asst. Assistant.Bal. Balance.B.B. Bill Book.Bbl. Barrel or Barrels.Bdls. Bundles.B/E Bill of Exchange.Bgs. Bags.Bk. Bank; Book.Bkts. Baskets.B/L Bill of Lading.Blk. Black.Bls. Bales.Bot. Bought.B.P. Bills Payable.B.Rec. Bills Receivable.Bro't. Brought.Bu. Bushel or Bushels.Bx. Box or Boxes.Cash. Cashier.C.B. Cash Book.Chgs. Changes.Chts. Chests.C.H. Court House; Custom House.C.F.S. Carriage and Insurance Free.Cks. Casks or Checks.Clk. Clerk.Co. Company; County.C.O.D. Cash, or Collect, on Delivery.Col. Collection.Com. Commission.Const. Consignment.Cor. Sec. Corresponding Secretary.Cr. Credit; Creditor.C.S.B. Commission Sales Book.Ct. or c. Cent, Latin Centime, a hundred.Cts. Cents.Cwt. A hundred weight.D. B. Day Book.D/d. Days after date.Dept. Department; DepmentDft. Draft; Defendant.Disct. Discount.Div. Dividend, Division; Divide, Divisor.Do. The same.Doz. Dozen.Dr. Debtor; Doctor.D/s or d.s. Days after sight.ea. Each.E.E. Errors excepted; Ells English.E.g. Latin Exempli gratia. For example.Encl. Enclosed.E.&O.E. Errors and omissions excepted.et. al. Latin et Alii, And others.Exch. Exchequer; Exchange.Ex'x. Executrix.Exp. Export; Exporter; Expense.Fahr. Fahrenheit.Fav. Favor.Fir. Firkin.Fo. or Fol., Folio.F.O.B. Free on Board.Fo'd. Forward.fr. From.Frt. Freight.Gal. Gallon; Gallons.Gr. Grain, Grains.Guar. Guarantee.Hdk'f. Handkerchief.Hf. chts. Half Chests.Hhd. Hogshead.Hon. Honorable.Hund. Hundred.I.B. Invoice Book.i.e. Latin id est. That is.Incor. Incorporated.Ins. Insurance.inst. Instant, the present month.Int. Interest.In trans. Latin, In transito. In the passage.Inv. Invoice.Inv. Inventory.Jr. Junior.Kg. Keg.L or lb. Latin Libra, A pound in weight.L/C Letter of Credit.Led. Ledger.L.F. Ledger Folio.L.S. Left Side, or in Latin, Locus Sigilli,Place of the Seal.M. One thousand.Manuf. Manufacture; Manufacturer.Mdse. Merchandise.Mem. Memorandum.Messrs. French Messieurs, Gentlemen, Sirs.Mf'd. Manufactured.Mfst. Manifest.Mme. Madame, French.Mmes. Mesdames, plural.Mo. Month.Mol. Molasses.Mr. Master or Mister.Mrs. Mistress, usually pronounced "Missis."Mtg. Mortgage.N.A. North America.Nav. Navigation.N.B. Latin Nota bene. Note well, or Take Notice.No. or # Number.N.P. Notary Public.O.B. Order Book.O.K. All Correct.Oz. Ounce or ounces.P. Page; pint; pile; part.Payt. Payment.Pcs. Pieces.Pd. Paid.Per an, or p. a., Latin per annum. By the year.% Per cent. By the hundred.Pk. Peck.Pkg. Package.P.& L. Profit and Loss.P.O.D. Pay on Delivery.P.O.O. Post Office Order.Pp. Pages.Pr. or per. By.Prem. Premium.Prox. Latin Proximo menve. Nextmonth.P.S. Post Script.Pub. Publisher; Public.Pwt. Pennyweight.Qr. Quire; Quarter, 28 lbs.Qt. Quart; Quantity.Rec'd. Received.Ret'd. Returned.R. R. Railroad.Ry. Railway.S.B. Sales Book.Sch. Schooner.Shipt. Shipment.S.O. Seller's Option, a stock phrase.Sig. Signature.S.S. Steamship.St. Saint; Street; Sight.St. Dft. Sight Draft.Stor. Storage.Str. Steamer.Sunds. Sundries.Supt. Superintendent.T.B. Time Book.Treas. Treasurer.Ult. Latin, Last Month.U.S.A. United States of America. UnitedStates Army.U.S.M. United States Mail.U.S.N. United States Navy.Ves. Vessel.Via. By way of. Latin.V.-Pres. Vice-President.Viz. Contraction from Latin videlicet. Namely, to wit.Vol. Volume.Vs. Latin versus. Against.W.B. Way Bill.Wt. Weight.X Extra.XX Doubly Extra.Y. or Yr. Year.Yd. Yard.
ACCOUNT CURRENT. A running account between two persons or firms.ACCOUNT SALES. A detailed statement of the sale of goods by acommission merchant, showing also the charges and net proceeds.ADMINISTRATOR. A man appointed by the Court to settle the estateof a deceased person.ADMINISTRATRIX. A woman appointed by the Court to settle theestate of a deceased person.AD VALOREM. According to value. A term used in the Custom House inestimating the duties on imported goods.AFFIDAVIT. A written declaration under oath.ANNUITY. An annual allowance; a sum to be paid yearly, to continuefor life or a fixed period.ANNUL. To cancel; to make void.ANTEDATE. To date before time of writing.APPRAISED. The act of placing a value on goods.APPRAISER. A person appointed to value real or personal property.ARBITRATION. The settlement of a disputed question by a personchosen by the parties to the dispute.ASSETS. The total resources of a person in business.ASSIGNEE. A person to whom the property of a bankrupt, or aninsolvent debtor, is transferred for adjustment for the benefitof Auditors.ASSIGNMENT. The act of transferring property to the Assignee.ATTACHMENT. A warrant for the purpose of seizing a man's property.BALANCE SHEET. A statement in condensed form, showing thecondition of a business.BANKABLE. Receivable at a bank at par or face value.BANK BALANCE. Net amount on deposit in bank.BILL OF LADING. A written account of goods shipped, and thecondition of same, having the signature of the carrier, andgiven to shipper as a receipt.BILL OF SALE. A bill given by the seller to the buyer,transferring the ownership of personal property.BOARD OF TRADE. An association of business men for the regulationof commercial interests.BONA FIDE. Latin, in good faith.BOND. An instrument under seal, by which a person binds himself,his heirs or assigns, to do or not to do certain things.BONDED GOODS. Goods stored in a bonded warehouse or in bondedcars, the owner having given bonds securing payment of importduties, or of other sums due the Government, upon their arrivalat some specified place at a specified time.BONDED WAREHOUSE. Is a building in which goods are stored untilthe duties or revenues on them are paid.BONDSMAN. One who goes security for the faithful performance of acontract.BONUS. A premium for a loan or other privileges.BROKER. An agent or middleman between the buyer and the seller.BULLION. Uncoined gold or silver.CHARTER. A written authority from the proper National or Stateauthority defining the rights and privileges of corporations.CHARTER PARTY. A written contract for the hiring or chartering ofa ship.CHATTEL. Any kind of property except real estate.COLLATERAL. Pledges of stocks, notes, or chattels as security forthe payment of a loan.COMMERCE. The business of exchanging commodities between differentplaces.COMMISSION AGENT. One who does business on Commission.COMMON LAW. The unwritten law, the law of Custom. It receives itsforce from universal usage.CONSIGNEE. The person to whom goods are sent to be sold oncommission.CONSIGNOR. The one who consigns his goods to an agent.CONTRA. Latin. On the opposite side.COPARTNERSHIP. The joining of two or more persons into one firmfor the purpose of carrying on any business.COUPON. An interest note or certificate, attached to a bond, whichis cut off for collection when interest is due.CREDENTIALS. Testimonials of authority; proofs of good character,DEMURRAGE. Money forfeited for detaining a vessel beyond the timenamed in her Charter party.DISHONOR, A failure to pay a note or other obligation when due. Afailure to accept a draft when presented for acceptance.DOCKAGE. Charge for the use of a dock.DOWER. The right of a widow to a one-third interest in all thereal estate owned by her husband at any time after theirmarriage.DRAFT. A written order for the payment of money at a fixed time.DRAWEE. The person on whom a draft is drawn.DURESS. Personal restraint of any kind.EARNEST. Part of purchase money paid to bind a bargain.EFFECTS. Goods, or property, of every kind.EMBARGO. An order of the Government preventing ships fromdeparting or landing.EQUITY. The principles of right and justice.EQUITY OF REDEMPTION. The right allowed a mortgagor of areasonable time to redeem mortgaged realty.EXECUTION. A writ authorizing an officer to carry into executionthe judgment of the Court.FEE SIMPLE. A title to real estate held without conditions by aperson in his own right.FORCED SALE. Sale made under compulsion.FORWARDER. One who attends to the shipping and reshipping ofgoods.GROSS WEIGHT. Weight of goods, including case or wrapping.GUARANTEE. A surety for the performance of a contract.HONOR. To pay or accept a draft when due.IMPORT. Duty paid on goods by importer.INDEMNIFY. To recompense for loss or injury.INDEMNITY. A guaranty against loss.INDENTURE. A writing containing a contract.INDORSE. To write one's name on the back of a note, draft, orother document.INJUNCTION. A writ of Court, by which a party is restrained fromdoing a certain act.INLAND BILL. A draft between parties in the same country.INSOLVENCY. Inability to pay debts, Bankruptcy.INTESTATE. Dying without having made a will.IN TRANSITU. In a state of going from one place to another. Latin.INVENTORY. An itemized list of goods, or other property, withtheir value as estimated at the time.INVOICE BOOK. A book in which invoices are kept.JETTISON. Goods thrown overboard to lighten a ship in time ofgreat danger.JOBBER. One who buys from the producer to sell to the retailer.JOB LOT. An irregular collection. Odds and ends unsold at the endof the season.JUDGMENT. The decision of a Court.LEASE. A contract granting possession and use of property for aspecified time.LEGACY. A bequest; a gift of property by will.LESSEE. One to whom a lease is made.LETTER OF CREDIT. An open letter authorizing the bearer to receivemoney on the credit of the writer.LICENSE. A legal permit to carry on a certain business.LIEN. A legal claim on property, which must be settled beforeproperty can be sold.LIGHTER. A flat-bottom boat used in loading and unloading vesselsat anchor.LIGHTERAGE. Charges for use of lighter.MANIFEST. A list of articles comprising Ship Cargo.MARGIN. Difference between buying and selling price.MARINE. Pertaining to the sea.MATURITY. The date when a commercial paper becomes due.MERCANTILE AGENCY. A company that collects for the use of itspatrons information as to the standing of all business men inthe country.MERCANTILE LAW. Law pertaining to business.MORTGAGEE. The person in whose favor a mortgage is made.MORTGAGOR. The person who gives a mortgage.NEGOTIABLE. That which is transferable by delivery, assignment orindorsement.NET. Clear of all charges.NET PROCEEDS. The remainder after deducting charges from sales.NET WEIGHT. Weight after deducting all allowances.NOMINAL. Existing in name only.NOTARY PUBLIC. An officer authorized to administer oaths and takeacknowledgments.OPEN ACCOUNT. An account unsettled.OUTLAWED. A debt which has run beyond the time when the law willenforce payment.PAR VALUE. The expressed value of any commercial paper.PAROL. Verbal, not written or sealed.PAWN BROKER. One licensed to loan money on personal property.PAYEE. The person to whom money is to be paid.PAYER. The person who promises to pay.PLANT. The entire establishment necessary to carry on amanufacturing business.POST DATE. To date after real time of writing.POWER OF ATTORNEY. A written authority from a principal toanother, authorizing him to act in his stead.PRICE CURRENT. A list of articles with market values.PRIMAGE. A percentage allowed to the master of a vessel on theamount of cargo carried.PRIMA FACIE. On the first look or view.PRO RATA. A proportional distribution. Latin.PROTECTING A DRAFT. Accepting a draft to prevent its beingprotested.PROTEST. A formal declaration by a notary that a note was not paidat maturity, or that any other monetary obligation was not metwhen due.RECEIVER. A person appointed by the Court to take charge of a firmor corporation on its dissolution, and to distribute itsproperty according to law.RESCIND. To revoke, countermand or annul.RESOURCES. Every form of convertible asset.REVOCATION. The recall authority conferred on another.SALVAGE. The allowance made by law to persons who voluntarilyassist in saving a ship or her cargo from destruction.SHIPPING CLERK. One who attends to shipping goods.SILENT PARTNER. One who shares in the profits of a firm, thoughhis name does not appear, nor does he take an active part in itsaffairs.SINKING FUND. A sum of money set apart for the liquidation ofdebts.STOCK. Capital invested in trade. Goods on hand.CAPITAL STOCK. The capital of a corporation as shown by itsshares.COMMON STOCK. That stock which entitles the owner to an equalproportionate dividend of the corporate profits and assets, withone shareholder or class of shareholders having no advantage orpreference over another.PREFERRED STOCK. That stock which entitles the owner to dividendsout of the net profits before or in preference to the holder ofcommon stock.WATERED STOCK. Stock which purports to represent, but does nothonestly represent, money paid into the treasury of acorporation.STOCK EXCHANGE. A place where brokers and others meet to buy andsell stocks and bonds.STOCKHOLDER. One who owns shares in a joint stock company orcorporation.STOPPAGE IN TRANSIT. The right which the seller has to stop thegoods he has shipped any time before they reach the buyer.SYNDICATE. A number of men who unite to conduct some commercialenterprise.TARE. An allowance made for the weight of boxes, barrels, etc., inwhich goods are shipped.TENANT. One who holds real estate under lease.TENDER. An offer; a proposal for acceptance.TICKLER. A book containing a memorandum of notes and otherobligations in the order of their maturity.TIME DRAFT. A draft maturing at a fixed future date.TRADE DISCOUNT. A discount or series of discounts from the pricesmade to dealers, or because of a change in prices.TRUSTEE. One who holds any business or property in trust.UNDERWRITER. One who insures.USURY. The taking of more than the legal interest.VOUCHER. Papers and documents that prove the truth of accounts.WAYBILL. A paper containing a list of goods shipped.WHARFAGE. Money paid for use of a wharf.WHARFINGER. One in charge of a wharf; the owner.WHOLESALE. To sell goods in large quantities, in whole or unbrokenpackages.WRIT. An order issued from a Court to one of its officers; or toone or more litigants where an injunction is issued.