UP-TO-DATEBUSINESSHOME STUDY CIRCLE LIBRARYEDITED BYSEYMOUR EATONUP TO DATEBUSINESSINCLUDINGLESSONS IN BANKING, EXCHANGE,BUSINESS GEOGRAPHY, FINANCE,TRANSPORTATION ANDCOMMERCIAL LAWFROM THE CHICAGO RECORDNEW YORKTHE DOUBLEDAY & McCLURE CO.1900Copyright, 1897, 1898, 1899, by theChicago RecordCopyright, 1899, bySeymour EatonCopyright, 1899, 1900, byVictor F. LawsonCONTENTSIGENERAL BUSINESS INFORMATIONPageI.Commercial Terms and Usages3II.Commercial Terms and Usages (Continued)4III.Bank Cheques6IV.Bank Cheques (Continued)8V.Bank Cheques (Continued)12VI.Bank Drafts15VII.Promissory Notes18VIII.The Clearing-house System21IX.Commercial Drafts26X.Foreign Exchange31XI.Letters of Credit37XII.Joint-stock Companies41XIII.Protested Paper46XIV.Paper Offered for Discount49XV.Corporations51XVI.Bonds54XVII.Transportation57XVIII.Transportation Papers59Examination Paper64IIBUSINESS GEOGRAPHYTrade FeaturesI.The Trade Features of the British Isles69II.""""France94III.""""Germany102IV.""""Spain and Italy111V.""""Russia120VI.""""India129VII.""""China139VIII.""""Japan148IX.""""Africa157X.""""Australia and Australasia166XI.""""South America177XII.""""Canada187XIII.""""The United States194Examination Paper210IIIFINANCE, TRADE, AND TRANSPORTATIONI.National and State Banks215II.Savings Banks and Trust Companies221III.Corporations and Stock Companies225IV.Borrowing and Loaning Money228V.Collaterals and Securities233VI.Cheques, Drafts, and Bills of Exchange240VII.The Clearing-house System248VIII.Commercial Credits and Mercantile Agencies254IX.Bonds263X.Transportation by Rail267XI.Freight Transportation274XII.Railroad Rates281XIII.Stock and Produce Exchanges288XIV.Storage and Warehousing294Examination Paper301IVCOMMERCIAL LAWI.The Different Kinds of Contracts309II.The Parties to a Contract312III.The Parties to a Contract (Continued)315IV.The Consideration in Contracts318V.The Essentials of a Contract321VI.Contracts by Correspondence326VII.What Contracts Must Be in Writing332VIII.Contracts for the Sale of Merchandise336IX.The Warranties of Merchandise340X.Common Carriers344XI.The Carrying of Passengers347XII.On the Keeping of Things350XIII.Concerning Agents353XIV.The Law Relating to Bank Cheques358XV.The Law Relating to Leases363XVI.Liability of Employers to Employés369XVII.Liability of Employers to Employés373Examination Paper377VPREPARING COPY FOR THE PRESSAND PROOF-READINGI.Preparing Copy381II.On the Names and Sizes of Type382III.The Terms Used in Printing384IV.Marks Used in Proof-reading387ILLUSTRATIONSIGENERAL BUSINESS INFORMATIONPageA Poorly Drawn Cheque7A Carefully Drawn Cheque8A Cheque Drawn so as to Insure Payment to Proper Party9A Cheque Payable to Order11A Blank Indorsement11A Cheque Made to Obtain Money for Immediate Use13A Certified Cheque14A Cheque for the Purchase of a Draft16A Bank Draft17Ordinary Form of Promissory Note18A Promissory Note Filled Out in an Engraved Blank19A Special Form for a Promissory Note20The Advantages of the Clearing-house System22The Route of a Cheque24Backs of Two Paid Cheques25A Sight Draft Developed from Letter27A Sight Draft28An Accepted Ten-day Sight Draft28An Accepted Sight Draft29A Time Draft29Foreign Exchange32A Bill of Exchange (Private)35A Bill of Exchange (Banker's)36First Page of a Letter of Credit38Second Page of a Letter of Credit40A Certificate of Stock in a National Bank42A Certificate of Stock in a Manufacturing Company43A Protest48A Private Bond55A Shipping Receipt ("Original")60A Steamship Bill of Lading61A Local Waybill62IIBUSINESS GEOGRAPHYLondon the Natural Centre of the World's Trade72British Mercantile Marine74London Bridge76The Coal-fields of England80The Manchester Ship Canal84The Great Manufacturing Districts of England88France Compared in Size with the States of Illinois and Texas95Street Scene in Paris, Showing the Bourse97Approximate Size of the German Empire104North Central Germany, Showing the Ship Canal and the Leading Commercial Centres109Spain Compared in Size with California113Italy and its Chief Commercial Centres117Russia, the British Empire, and the United States Compared121Moscow127Comparative Sizes of India and the United States133China and its Chief Trade Centres145Japan's Relation to Eastern Asia155The Partition of Africa159Australia171The Most Prosperous Part of South America183Trade Centres of Canada and Trunk Railway Lines192Export Trade of United States and Great Britain Compared198United States Manufactures and Internal Trade Compared with the Manufactures and Internal Trade of all Other Countries199Principal Articles of Domestic Exports of the United States205IIIFINANCE, TRADE, AND TRANSPORTATIONThe Bank of England216Showing Cheque Raised from $7.50 to $70.50241A Certified Cheque244A Bank Draft245A Bill of Exchange246Illustrating Cheque Collections252A Mercantile Agency Inquiry Form259Specimens of Interest Coupons266Judge Thomas M. Cooley, First Chairman of the Interstate Commerce Commission287The Paris Bourse289Interior View of New York Stock Exchange290VPREPARING COPY FOR THE PRESSAND PROOF-READINGA Printer's Proof390A Printer's Corrected Proof391GENERAL BUSINESS INFORMATIONI. COMMERCIAL TERMS AND USAGESDecorative THERE is a distinction between the usage of the namescommerceandbusiness. The interchange of products and manufactured articles between countries, or even between different sections of the same country, is usually referred to ascommerce. The termbusinessrefers more particularly to our dealings at home—that is, in our own town or city. Sometimes this name is used in connection with a particular product, as thecoalbusiness or thelumberbusiness, or in connection with a particular class, as thedry-goodsbusiness or thegrocerybusiness. The namecommerce, however, seldom admits of a limited application. In the United Statestradeis synonymous withbusiness. The wordtrafficapplies more especially to the conveyance than to the exchange of products; thus we refer torailroadtraffic orlaketraffic.Products, when considered articles of trade, are calledmerchandise, goods, wares. The termmerchandisehas the widest meaning, and includes all kinds of movable articles bought or sold.Goodsis applied more particularly to the supplies of a merchant.Waresis commonly applied to utensils, asglassware,hardware, etc.Grosscommonly means coarse or bulky. In trade it is used with reference to both money and goods. Thegrossweight of a package includes the weight of the case orwrappings. The larger sum in an account or bill—that is, the sum of money before any allowance or deductions are made—is thegrossamount of the bill. The wordnetis derived from a Latin word meaning neat, clean, unadulterated, and indicates the amount of goods or money after all the deductions have been made. To say that a price isnetis to indicate that no further discount will be made.The wordfirmrelates to solidity, establishment, strength, and in a business sense signifies two or more persons united in partnership for the purpose of trading. The wordhouseis very frequently used in the same sense. In mercantile usagehousedoes not mean the building in which the business is conducted, but the men who own the business, including, perhaps, the building, stock, plant, and business reputation. The nameconcernis often used in a very similar way.The namemarketexpresses a locality for the sale of goods, and in commerce is often used to denote cities or even countries. We say that Boston is a leather market, meaning that a large number of Boston merchants buy and sell leather. In the same sense we call Chicago a grain market, or New Orleans a cotton market. In its more restricted sense the namemarketsignifies a building or place where meat or produce is bought and sold. We say that themarket is floodedwith a particular article when dealers are carrying more of that article than they can find sale for. There isno marketfor any product when there is no demand. The money market istightorclosewhen it is difficult to borrow money from banks and money-lenders.II. COMMERCIAL TERMS AND USAGES(Continued)The natural resourcesof a country are mainly the mineral commodities and agricultural produce that ityields. The lumber and fish produced in a country are also among its natural resources. The positions and industries of cities are usually fixed by natural conditions, but the most powerful agent is the personal energy of enterprising and persevering men, who, by superior education, or scientific knowledge, or practical foresight, have often been able to found industrial centres in situations which no geographical considerations would suggest or explain.Commission merchantsreceive and sell goods belonging to others for a compensation called a commission. Aselling agentis a person who represents a manufacturing establishment in its dealings with the trade. The factory may be located in a small town, while the selling agent has his office and samples in the heart of a great city. As regards the quantity of goods bought or sold in a single transaction, trade is divided intowholesaleandretail. The wholesale dealer sells to other dealers, while the retail dealer sells to the consumer—that is, the person whoconsumes, or uses, the goods. Ajobberis one who buys from importers and manufacturers and sells to retailers. He is constantly in the market for bargains. The namesjobberandwholesalerare often used in the same sense, but a jobber sometimes sells to wholesalers.Wholesalehas reference to the quantity the dealer sells, and not to the source from which he buys, or the person to whom he sells. The wholesaler, as a rule, deals instaples—that is, goods which are used season after season—though of course there are wholesalers in practically all businesses.Wholesale dealers send outtravellersordrummers, who carry samples of the goods. Frequently the traveller starts out with his samples from six months to a year in advance of the time of delivery. It is quite a common thing for the retailer to order from samplesmerchandise which at the time of placing the order may not even be manufactured.By thepriceof a commodity is meant its value estimated in money, or the amount of money for which it will exchange. The exchangeable value of commodities depends at any given period partly upon the expense of production and partly upon the relation of supply and demand. Prices are affected by the creation of monopolies, by the opening of new markets, by the obstructing of the ordinary channels of commercial intercourse, and by the anticipation of these and other causes. It is the business of the merchant to acquaint himself with every circumstance affecting the prices of the goods in which he deals.The entire world is the field of the modern merchant. He buys raw and manufactured products wherever he can buy cheapest, and he ships to whatever market pays him the highest price. Our corner grocer or produce-dealer may furnish us with beef from Texas, potatoes from Egypt, celery from Michigan, onions from Jamaica, coffee from Java, oranges from Spain, and a hundred other things from as many different points; and yet, so complete is the interlocking of the world's commercial interests, and so great is the speed of transportation, that he can supply us with these necessaries under existing conditions more easily and readily than if they were all grown on an adjoining farm.III. BANK CHEQUESAchequeis an order for money, drawn by one who has funds in the bank. It is payable on demand. In reality, it is asight drafton the bank. Banks provide blank cheques for their customers, and it is a very simple matter to fill them out properly. In writing in the amount begin at the extreme left of the line.The illustration given below shows a poorly written cheque and one which could be very easilyraised. A fraudulent receiver could, for instance write, "ninety" before the "six" and "9" before the figure "6," and in this way raise the cheque from $6 to $96. If this were done and the cheque cashed, the maker, and not the bank, would become responsible for the loss. You cannot hold other people responsible for your own carelessness. A cheque has been raised from $100 to $190 by writing the words "and ninety" after the words "one hundred." One of the ciphers in the figures was changed to a "9" by adding a tail to it. It is wise to draw a running line, thus~~~~~~, after the amount in words, thus preventing any additional writing.
HOME STUDY CIRCLE LIBRARYEDITED BYSEYMOUR EATONUP TO DATEBUSINESSINCLUDINGLESSONS IN BANKING, EXCHANGE,BUSINESS GEOGRAPHY, FINANCE,TRANSPORTATION ANDCOMMERCIAL LAWFROM THE CHICAGO RECORDNEW YORKTHE DOUBLEDAY & McCLURE CO.1900
Decorative T
HERE is a distinction between the usage of the namescommerceandbusiness. The interchange of products and manufactured articles between countries, or even between different sections of the same country, is usually referred to ascommerce. The termbusinessrefers more particularly to our dealings at home—that is, in our own town or city. Sometimes this name is used in connection with a particular product, as thecoalbusiness or thelumberbusiness, or in connection with a particular class, as thedry-goodsbusiness or thegrocerybusiness. The namecommerce, however, seldom admits of a limited application. In the United Statestradeis synonymous withbusiness. The wordtrafficapplies more especially to the conveyance than to the exchange of products; thus we refer torailroadtraffic orlaketraffic.Products, when considered articles of trade, are calledmerchandise, goods, wares. The termmerchandisehas the widest meaning, and includes all kinds of movable articles bought or sold.Goodsis applied more particularly to the supplies of a merchant.Waresis commonly applied to utensils, asglassware,hardware, etc.
Grosscommonly means coarse or bulky. In trade it is used with reference to both money and goods. Thegrossweight of a package includes the weight of the case orwrappings. The larger sum in an account or bill—that is, the sum of money before any allowance or deductions are made—is thegrossamount of the bill. The wordnetis derived from a Latin word meaning neat, clean, unadulterated, and indicates the amount of goods or money after all the deductions have been made. To say that a price isnetis to indicate that no further discount will be made.
The wordfirmrelates to solidity, establishment, strength, and in a business sense signifies two or more persons united in partnership for the purpose of trading. The wordhouseis very frequently used in the same sense. In mercantile usagehousedoes not mean the building in which the business is conducted, but the men who own the business, including, perhaps, the building, stock, plant, and business reputation. The nameconcernis often used in a very similar way.
The namemarketexpresses a locality for the sale of goods, and in commerce is often used to denote cities or even countries. We say that Boston is a leather market, meaning that a large number of Boston merchants buy and sell leather. In the same sense we call Chicago a grain market, or New Orleans a cotton market. In its more restricted sense the namemarketsignifies a building or place where meat or produce is bought and sold. We say that themarket is floodedwith a particular article when dealers are carrying more of that article than they can find sale for. There isno marketfor any product when there is no demand. The money market istightorclosewhen it is difficult to borrow money from banks and money-lenders.
The natural resourcesof a country are mainly the mineral commodities and agricultural produce that ityields. The lumber and fish produced in a country are also among its natural resources. The positions and industries of cities are usually fixed by natural conditions, but the most powerful agent is the personal energy of enterprising and persevering men, who, by superior education, or scientific knowledge, or practical foresight, have often been able to found industrial centres in situations which no geographical considerations would suggest or explain.
Commission merchantsreceive and sell goods belonging to others for a compensation called a commission. Aselling agentis a person who represents a manufacturing establishment in its dealings with the trade. The factory may be located in a small town, while the selling agent has his office and samples in the heart of a great city. As regards the quantity of goods bought or sold in a single transaction, trade is divided intowholesaleandretail. The wholesale dealer sells to other dealers, while the retail dealer sells to the consumer—that is, the person whoconsumes, or uses, the goods. Ajobberis one who buys from importers and manufacturers and sells to retailers. He is constantly in the market for bargains. The namesjobberandwholesalerare often used in the same sense, but a jobber sometimes sells to wholesalers.Wholesalehas reference to the quantity the dealer sells, and not to the source from which he buys, or the person to whom he sells. The wholesaler, as a rule, deals instaples—that is, goods which are used season after season—though of course there are wholesalers in practically all businesses.
Wholesale dealers send outtravellersordrummers, who carry samples of the goods. Frequently the traveller starts out with his samples from six months to a year in advance of the time of delivery. It is quite a common thing for the retailer to order from samplesmerchandise which at the time of placing the order may not even be manufactured.
By thepriceof a commodity is meant its value estimated in money, or the amount of money for which it will exchange. The exchangeable value of commodities depends at any given period partly upon the expense of production and partly upon the relation of supply and demand. Prices are affected by the creation of monopolies, by the opening of new markets, by the obstructing of the ordinary channels of commercial intercourse, and by the anticipation of these and other causes. It is the business of the merchant to acquaint himself with every circumstance affecting the prices of the goods in which he deals.
The entire world is the field of the modern merchant. He buys raw and manufactured products wherever he can buy cheapest, and he ships to whatever market pays him the highest price. Our corner grocer or produce-dealer may furnish us with beef from Texas, potatoes from Egypt, celery from Michigan, onions from Jamaica, coffee from Java, oranges from Spain, and a hundred other things from as many different points; and yet, so complete is the interlocking of the world's commercial interests, and so great is the speed of transportation, that he can supply us with these necessaries under existing conditions more easily and readily than if they were all grown on an adjoining farm.
Achequeis an order for money, drawn by one who has funds in the bank. It is payable on demand. In reality, it is asight drafton the bank. Banks provide blank cheques for their customers, and it is a very simple matter to fill them out properly. In writing in the amount begin at the extreme left of the line.
The illustration given below shows a poorly written cheque and one which could be very easilyraised. A fraudulent receiver could, for instance write, "ninety" before the "six" and "9" before the figure "6," and in this way raise the cheque from $6 to $96. If this were done and the cheque cashed, the maker, and not the bank, would become responsible for the loss. You cannot hold other people responsible for your own carelessness. A cheque has been raised from $100 to $190 by writing the words "and ninety" after the words "one hundred." One of the ciphers in the figures was changed to a "9" by adding a tail to it. It is wise to draw a running line, thus~~~~~~, after the amount in words, thus preventing any additional writing.