[ 
 
 MODERN : METHODS 
 
 v -- ' f !K *. 
 
 e oo me 
 
 OOPER 
 
 3 GRAHAM 
 
 ' 
 
MA. 8 
 
 1906 
 
 LIBRARY 
 
 OF THE 
 
 UNIVERSITY OF CALIFORNIA. 
 
 Class 
 
TEACHER'S COMPANION 
 
 TO 
 
 MODERN BUSINESS METHODS 
 
 Ibome 
 
 FREDK. HOOPER 
 
 u 
 
 Secretary of the Bradford Chamber oj Commerce 
 AND 
 
 JAMES GRAHAM 
 
 Inspector for Commercial Subjects and Modern 
 Languages to the I Test 
 County Council 
 
 or THE 
 UNIVERSITY 
 
 OF 
 
 MACMILLAN AND CO., LIMITED 
 
 NEW YORK: THE MACMILLAN COMPANY 
 
 1898 
 
 [COPYRIGHT] 
 

 CHORLEY AND PICKERSGILL, THE ELECTRIC PRESS, COOKRIDGE STREET, LEEDS. 
 
PREFACE. 
 
 THIS little work is intended as a help to those who may be 
 engaged in teaching the Home Trade stage of "Modern Business 
 Methods." 
 
 The notes and information contained in the following pages 
 are drawn from experience gained during the past five years in 
 the actual exercise of conducting and inspecting (a) Teachers' 
 Training Classes and (b) Students' Classes in all stages of the 
 above subject. 
 
 These notes, together with the Answers to the 200 questions 
 set in " An Introduction to Modern Business Methods : The 
 Home Trade," are now published in the hope that they may be 
 of service to others. 
 
 FREDK. HOOPER, 
 
 Chamber of Commerce, 
 Bradford. 
 
 JAMES GRAHAM, 
 
 West Riding Offices, 
 Wakefield. 
 
Ibome 
 
 UNIVERSITY 
 
 SYLLABUS OF COURSES 
 
 IN 
 
 MODERN BUSINESS METHODS. 
 
 PREPARATORY WORK : 
 
 A student should not take up this subject until he has had a 
 satisfactory grounding in Commercial Arithmetic, more especially 
 in long additions of money, practice, discount, percentage, and 
 mental arithmetic. 
 
 ELEMENTARY STAGE : 
 
 THE HOME TRADE. 
 
 OUTGOING LETTERS, &c.: Press-copying of Written and Type-written 
 Matter ; Letter-Sorting Rack. 
 
 INDEXING : Indexing the Letter-Book ; The Vowel Index ; The Card 
 Index ; The Cross Reference or Page Index. 
 
 MAKING-UP LETTERS FOR POST : Folding Letters ; Addressing Enve- 
 lopes ; Enclosures ; Late-fee Letters ; Registration and Insurance of 
 Letters, &c. 
 
 POSTAL MATTERS : Inland Letters ; Foreign Letters ; Book Post, 
 Inland and Foreign ; Newspapers ; Patterns and Samples ; Parcels ; 
 Post Cards ; Express Delivery ; Railway Letter Post ; Re-direction ; 
 Perforation of Postage Stamps, &c. 
 
 THE POSTAGE BOOK and the Petty Cash Book. 
 
 INCOMING LETTERS, &c. : Letter and Telegram Register ; Filing 
 Pigeon-holing, and Docketing Letters. 
 
 METHOD OF USING THE TELEPHONE. 
 
 PURCHASES AND SALES : Price Lists ; Prices Current ; Tenders and 
 Estimates ; Firm Offers ; Quotations ; Orders ; How to Open Business ; 
 Contract Notes ; Bought and Sold Notes ; Del Credere Contracts ; 
 Delivery Orders. 
 
6 TEACHER'S COMPANION: 
 
 INVOICES ; Credit Notes ; Debit Notes ; Statements ; Discount ; Com- 
 mission ; Brokerage ; Gross Weight ; Tare ; Net Weight ; Terms of 
 Payment. 
 
 FORWARDING GOODS : Delivery Book ; Consignment Notes ; Railway 
 Rates and Charges. 
 
 REMITTING MONEY THROUGH THE POST OFFICE : Postal Orders ; 
 Mone3 r Orders ; Telegraph Money Orders ; Advice Notes. 
 
 RECEIPTS FOR MONEY : Receipts of various kinds. 
 
 FIRST STEPS IN BUSINESS CORRESPONDENCE: Private Letters ; 
 Official Letters ; Commercial Letters ; Heading, date, address, commence- 
 ment, ending, and signing of Letters ; Letter Reference ; Memorandum ; 
 Business Abbreviations. 
 
 PRECIS WRITING. 
 
 TELEGRAMS : Writing Out and Sending Telegrams. 
 
 METHODS OF OBTAINING MULTIPLEX COPIES : Carbon Duplicating 
 Process ; Stencil Copying ; Gelatine Processes, &c. 
 
 MONEY : Money in Primitive Times ; Substances formerly used as Money ; 
 Coins ; Coinage ; Meaning of Symbols s. d. ; Metallic Currency ; Paper 
 Currency ; Bullion ; Specie ; Legal Tender ; Standard of Value ; Decimal 
 Coinage ; Money as Merchandise ; the Money Market. 
 
 BANKS AND BANKING : Banking generally ; Savings Banks ; the Bank 
 of England ; Private Banks ; Joint Stock Banks ; Fixed Deposits ; Current 
 Accounts ; Advantages of a Banking Account ; How to Open an Account 
 with a Bank ; Paying-iri Money. 
 
 CHEQUES : Drawing, Endorsing, and Crossing Cheques ; " Not Negotiable " 
 Cheques ; Adding To or Altering the Crossing ; Presentment for Payment ; 
 Stopping Payment. 
 
 BILLS OF EXCHANGE : Inland Bills and Foreign Bills ; Stamp ; Date ; 
 Amount ; Parties ; Acceptance ; Liabilities of Parties ; Currency ; Days 
 of Grace ; Usance ; Endorsement ; Signing Bills ; Case of Need ; Bills 
 Sent for Acceptance ; Sets and Copies of Bills ; Presentment for Payment ; 
 Dishonour ; Discounting Bills ; Interest ; Advantages of Bills of Exchange ; 
 How Money is Remitted by Bills of Exchange ; Accommodation Bills ; 
 Promissory Notes ; I. 0. U.'s ; Council Bills ; Telegraphic Transfers ; 
 Letters of Credit. 
 
AN INTRODUCTION TO MODERN BUSINESS METHODS. 7 
 
 LIST OF ARTICLES WITH WHICH THE WEST RIDING COUNTY 
 COUNCIL REQUIRES A CLASS IN MODERN BUSINESS METHODS 
 TO BE PROVIDED FOR PRACTICAL WORK I 
 
 DESCRIPTION OF ARTICLE. 
 
 Number Required. 
 
 For 12 
 
 Students. 
 
 For 25 
 Students. 
 
 Copying Press, quarto or foolscap size ... ... .1 2 
 
 Letter Book, quarto size ... ... ... ... 2 4 
 
 Water Bath 1 2 
 
 Damper ... ... ... ... ... ... 1 2 
 
 Oil Sheets, quarto or foolscap size ... ... 20 40 
 
 Damping Sheets, quarto or foolscap size ... ... 20 40 
 
 Postage Book ... ... ... ... ... 1 1 
 
 Order Book 1 2 
 
 Delivery Book ... ... ... ... ... 1 2 
 
 Parcels Receipts Book ... ... ... .... 1 2 
 
 Invoice Copying Book, quarto ... ... ... 2 3 
 
 Petty Cash Book 12 25 
 
 Guard Book... 1 1 
 
 Filing Basket 1 2 
 
 Waste Paper Basket 1 2 
 
 Ordinary Ruler ... ... ... ... ... 6 12 
 
 Combination Ruler... ... ... ... ... 2 4 
 
 Shannon Ruler ... ... ... ... ... 2 4 
 
 Stationery Rack, of adequate size for class ... 1 1 
 
 Scales, letter and parcel ... ... ... ... 1 1 
 
 National Telephone Directory ... ... ... 1 1 
 
 British Postal Guide 6 13 
 
 Bradshaw's Sixpenny British Railway Guide ... 6 13 
 
 Gray's Table of Railway Rates 1 2 
 
 File Punch " 3 5 
 
 Pigeon Holes, nest of 24 1 2 
 
 Damping Roller ... ... ... ... ... 1 2 
 
 Mimeograph" 5 '" ... ..."I ... 1 1 
 
 Nee-Cyclostyle"* For a sin g le c l ass * 1 1 
 
 Autocopyist* j wnTsuffice^ " 1 * 
 
 Gelatine Graph, any variety... j ... 1 1 
 
 Binders, Clips and Board Clips (of each)... ... j 2 2 
 
 Apron, Bill, Hook and Needle Files (of each) ... 2 2 
 
 Or any Machine on similar principle, quarto or foolscap size. 
 
TEACHER'S COMPANION: 
 
 Files : 
 
 One file of each of the following types : Acme, Amberg, 
 Donaldson, Paragon, Pilot, Shannon, and Stone patents. 
 
 Parcel Rates : 
 
 Railway Companies' Tariffs and Rules. Urban Companies' 
 Tariffs and Rules. 
 
 Maps : 
 
 Maps shewing ports and Steamship routes, River a"nd Canal 
 systems, Railway systems, Cable and Telephone systems. Maps of 
 Caravan Routes may also be provided. 
 
 Time Tables: 
 
 Official Time Tables of the various Railway Companies. 
 
 Commercial Documents : 
 
 Prints of all Commercial documents and forms in general use. 
 
 Commercial Stationery : 
 
 An adequate amount of Commercial Stationer}^ Blotting 
 Paper, etc., Carbon Paper and Carbon Copying Books assorted. 
 
 Pens, Coloured Pencils, Gum, Paste, &c. 
 
 It is desirable that classes in Modern Business Methods should 
 also be provided with the following Office Requisites, or these might 
 be borrowed for the occasion. 
 
 (a) Numbering Machine (letter reference, &c.). 
 
 (6) Cheque Punch. 
 
 (c) Stapling Machine. 
 
 (d) Telephone. 
 
 Commercial Copy Books: 
 
 Each student should be provided, at his own expense, with 
 Macmillan's Commercial Copy Book of fac-simile Modern Business 
 Forms (price 6d.) relating to the stage or trade being studied. 
 
AX INTRODUCTION TO MODERN BUSINESS METHODS. 
 
 MODERN BUSINESS METHODS CLASSES. 
 
 LIST OF ARTICLES REQUIRED FOR PRACTICAL INSTRUCTION IN 
 MODERN BUSINESS METHODS, WITH APPROXIMATE COST. 
 
 1 >r,s< KirnoN OK ARTICLES. 
 
 ESTIMATED COST. 
 
 
 
 s. 
 
 a. 
 
 s. d. 
 
 1 
 
 Copying Letter Press, quarto, strong, 
 
 
 
 
 
 black-marbled japan ... 
 
 1 
 
 
 
 1 
 
 Copying Letter Press, foolscap folio, 
 
 
 
 
 
 strong, black-marbled japan ... 
 
 
 
 1 8 
 
 2 
 
 Copying Letter Books, quarto, 500 leaves, 
 
 
 
 
 
 3s. each 
 
 6 
 
 
 
 
 2 
 
 Copying Letter Books, quarto, 1,000 Ivs., 
 
 
 
 
 
 4s. each ... ... ... ... 
 
 
 8 
 
 1 
 
 Water Bath, japanned ... ... ... | 1 
 
 
 
 
 1 
 
 Damping Brush ... 
 
 - 1 
 
 
 
 
 20 
 
 Oil Sheets, quarto size ... 
 
 _. _ 
 
 10 
 
 
 20 
 
 Drying Sheets, quarto size 
 
 _ _ 
 
 6 
 
 
 1 
 
 Postage Book 
 
 - - 
 
 6 
 
 
 1 
 
 Order Book 
 
 _ _ 
 
 6 
 
 
 1 
 
 Delivery Book ... 
 
 - - 
 
 6 
 
 
 1 
 
 Parcels Receipt Book 
 
 1 
 
 
 
 
 2 
 
 Invoice Copying Books, 500 leaves, 
 
 
 
 
 
 4s. 6d. each 
 
 9 
 
 
 
 
 12 
 
 Petty Cash Books, 9d. per doz. 
 
 - - 
 
 9 
 
 
 1 
 
 Guard Book, folio, half bound ... 
 
 - 5 
 
 9 
 
 
 1 
 
 Filing Basket ... 
 
 1 
 
 9 
 
 
 1 
 
 Waste Paper Basket 
 
 1 
 
 6 
 
 
 6 
 
 Ordinary Rulers, Is. each 
 
 6 
 
 
 
 
 1 
 
 Combination Ruler, real ebony, 15 in... 
 
 3 
 
 9 
 
 
 1 
 
 Shannon Ruler ... 
 
 - 2 
 
 
 
 
 1 
 
 Stationery Rack 
 
 - 3 
 
 6 
 
 
 1 
 
 Letter Balance, 7 oz. 
 
 1 
 
 
 
 
 1 
 
 Parcels Scales. 11 Ibs., with brass face... 
 
 7 
 
 6 
 
 
 1 
 
 File Punch, Shannon 
 
 1 
 
 6 
 
 
 1 
 
 Pigeon Holes, nest of 24, without doors . . . 
 
 - 18 
 
 6 
 
 
 1 
 
 Damping Roller ... 
 
 1 
 
 
 
 
 1 
 
 Mimeograph, foolscap size 
 
 2 14 
 
 6 
 
 
 Or 1 
 
 Neo-Cyclostyle, quarto size 
 
 
 
 1 7 
 
 Or 1 
 
 Autocopyist, quarto size 
 
 
 
 1 15 
 
 Or 1 
 
 Hectograph, octavo size . . , 
 
 
 
 5 G 
 
 1 box Binders ... 
 
 - - 
 
 6 
 
 
 
 Carried forward . . . 
 
 7 10 4 
 
 ... 
 
10 
 
 TEACHER'S COMPANION: 
 
 MODERN BUSINESS METHODS CLASSES. 
 
 LIST OF ARTICLES REQUIRED FOR PRACTICAL INSTRUCTION IN MODERN 
 BUSINESS METHODS continued. 
 
 DESCRIPTION OF ARTICLES. 
 
 ESTIMATED COST. 
 
 
 
 s. d. 
 
 s. d. 
 
 
 Brought forward 
 
 7 10 4 
 
 
 1 doz. 
 
 Clips 
 
 - - 10 
 
 
 1 
 
 Board Clip, quarto size ... 
 
 - 10 
 
 
 1 
 
 Do. foolscap 
 
 - 1 1 
 
 
 1 
 
 Apron File 
 
 - 10 
 
 
 4 
 
 Hook Files, 3d. each 
 
 1 
 
 
 4 
 
 Needle Files, 4d. each ... 
 
 - 1 4 
 
 
 1 
 
 File, Acme, quarto size ... 
 
 - 1 9 
 
 
 1 
 
 Do. Paragon, do. 
 
 - 1 9 
 
 
 1 
 
 Do. Amberg's, do. 
 
 - 7 
 
 
 1 
 
 Do. Donaldson, do. 
 
 - 2 
 
 
 1 
 
 Do. Stone do. 
 
 - 1 4 
 
 
 1 
 
 Do. Shannon 
 
 - 4 6 
 
 ... 
 
 1 
 
 Stapling Machine 
 
 3 6 
 
 
 
 
 
 8 18 1 
 
 ... 
 
 Commercial Note Paper ... ... ... 3s. per ream. 
 
 Cream Laid Foolscap ... ... ... 5s. ,, 
 
 Blotting Paper, good ...^ ... Is. 3d. per quire. 
 
 Manifold Order Books, special value . . . 6d. each. 
 
 Pens... ... ... ... ... ... Is. per gross. 
 
 Pencils ... ... ... 4|d. and 9d. per dozen. 
 
 Coloured Pencils 9d. and Is. 6d. ,, 
 
 Gum ... ... ... ... ... ... 6d. per bottle. 
 
 Paste 6d. 
 
 Any maps which may be required must be ordered specially. 
 Railway, Steamship, and Emigration Companies supply very good 
 maps, and descriptive matter, on application. 
 
 Commercial Copy Books : 
 
 Each student should be provided, at his own expense, with 
 a copy of Macmillan's " Book of fac-simile Modern Business 
 Forms " (price 6d.) relating to the stage being studied. 
 
AN INTRODUCTION TO MODERN BUSINESS METHODS. 11 
 
 HINTS ON HOW TO DEAL WITH THE MATTER CONTAINED 
 
 IN THE 
 VARIOUS CHAPTERS OF 
 
 "AN INTKODUCTION TO 
 MODEKN BUSINESS METHODS." 
 
 BY F. HOOPER & J. GRAHAM 
 
 (Macmillan). 
 General Hints : 
 
 The acquirement of a good style of commercial correspondence 
 should be kept steadily in view, and, with that object, lessons in 
 correspondence should be given throughout the course. 
 
 The student should be taught to note down the several heads 
 of the subject matter, and to compose a letter from these, dealing 
 with them in their proper consecutive order, and devoting a para- 
 graph to each, so that they may be kept perfectly distinct. Care 
 should be taken that the letters are correct in statement, clear in 
 meaning, and concise (but not curt) in form. On commercial letter- 
 paper the letter is generally written on one page only, but should 
 ordinary notepaper be used, the letter should be written on the fourth 
 and first or the second and third pages, so that it may be copied 
 by one operation of the copying press. 
 
 "Private" correspondence need not be dealt with, except so 
 far as is necessary to show the difference between a private and a 
 business letter. 
 
 No lessons are to be given in handwriting pure and simple, but 
 clear and distinct handwriting in the elliptical Civil Service style is 
 in all cases to be preferred, and should be insisted upon. Orna- 
 mental writing should not be permitted. 
 
 Commercial terms and abbreviations should be explained in 
 connection with the subjects to which they appertain. 
 
 The teacher should adhere to and methodically work through 
 the stage of the approved syllabus being studied. 
 
12 TEACHER'S COMPANION: 
 
 Short lectures upon the mechanical and other internal operations 
 of an office should be given at each class meeting. These lectures 
 should be followed by practical demonstrations, which should be 
 repeated by the students under careful supervision. 
 
 No document should be shown or drafted without its connec- 
 tion with the operations causing its existence being fully dealt with. 
 
 It might be advisable to procure from a commercial stationer 
 a number of copies of illustrated catalogues of files, copying presses, 
 and other office appliances and furniture. The students would thus 
 see illustrations of a variety of kinds of each article, as mentioned. 
 
 Preparation of room : 
 
 The apparatus provided for practical instruction in the mechani- 
 cal and other internal operations of an office or counting-house should 
 be so arranged as to give to the class-room, as much as may be 
 possible, the appearance of an office in a business house. 
 
 Preparation for the lesson : 
 
 The teacher should be in the class-room some little time, say ten 
 minutes, before his students assemble, in order to get ready and arrange 
 the apparatus required, and to fill the blackboard with notes and 
 diagrams to be used during the lesson. The students will thus derive 
 the maximum amount of benefit from the teacher's presence, by the 
 whole of the time being devoted to actual teaching. A large 
 double-pulley blackboard has, in practice, been found to display to 
 advantage the various forms, documents, rulings and notes which 
 accompany these lessons. Everything should be in readiness before 
 the students enter the class-room. 
 
 Arrangement of students : 
 
 The teacher should have his students arranged as closely to 
 him as may be possible, and more to his right than left almost 
 wholly to his right, if possible and the teacher should allow no 
 stragglers to seat themselves away from him, to the back, right 
 or left, and leave spaces immediately before him, which they might 
 fill. The whole class should be compact, and as near to the teacher 
 as possible. 
 
 Giving the lesson : 
 
 The text-book should not be read to or with the students. 
 Short lectures should be given, The teacher should previously 
 
AN INTRODUCTION TO MODERN BUSINESS METHODS. 13 
 
 carefully prepare notes on the new matter for each lesson, supple- 
 menting the text-book matter and illustrations with a variety of 
 others, so as to approach the subjects from different points of view, 
 and the teacher should carefully arrange the various steps of the 
 explanatory matter so that the different points may be presented to 
 the students in an orderly and systematic manner. The blackboard 
 should be freely used, and each point should be dwelt upon and 
 copiously illustrated and practically demonstrated, if possible, until it 
 is firmly impressed on the minds of the students. At the end of the 
 lesson the various items dealt with should appear on the blackboard 
 and in the student's note-books as separate heads, distinct in them- 
 selves, arranged in their proper order. During each lesson, a certain 
 amount of time, which will vary with the circumstances, should be 
 devoted to practical work. Sometimes nearly the whole of the 
 lesson will be required for this work, at other times only a few 
 minutes. As to this, the teacher must largely use his own dis- 
 cretion. 
 
 Copying Ink :- 
 
 All letters and documents used throughout the course should be 
 written with copying ink, and press-copied when thought desirable. 
 
 A certain amount of home work should be set at the end of 
 each lesson. For this purpose the questions set at the end of the 
 book on " Modern Business Methods " will, it is thought, be found 
 very useful. The students should be provided with two excercise 
 books to admit of their work being corrected by the teacher in the 
 intervals between the lessons. In this way the teacher gives to his 
 students the full benefit of his presence during the time they are 
 with him in class. 
 
 The collective correction of home work and exercises from the 
 blackboard is not recommended. 
 
 APPLIES TO EVERY LESSON: 
 
 1. Particular care should be taken (a) to require the students 
 to attend punctually ; (b) to adopt a commercial style in setting out 
 all letters, forms, and documents ; (c) to see that the work is done 
 smartly and in a business-like manner ; and (d) to keep the students 
 occupied until the very end of the class meeting. 
 
14 TEACHER'S COMPANION: 
 
 2. At the commencement of every lesson, the work of the 
 previous lesson should be briefly reviewed, and every fifth or sixth 
 lesson should resolve itself into a thorough examination or test of 
 work previously done. 
 
 3. Throughout the lesson explain thoroughly step by step how 
 each operation is performed, thoroughly questioning the students in 
 order to find out that they have understood one step before 
 proceeding to the next. 
 
 4. Demonstrate before the students the method of doing each 
 thing. 
 
 5. Ask one student to perform the operation in the presence 
 of the whole class, correcting his mistakes as made, for the benefit 
 of the class as a whole. Continue this until a student is found who 
 performs the whole operation correctly. 
 
 6. Let the class as a whole perform the operation under 
 careful supervision, care being taken against incorrect methods being 
 acquired. 
 
 7. The originals of all letters and other documents written by 
 a student should be carefully preserved for future use in connection 
 with indexing, letter register, filing, docketing, pigeon holing, &c. 
 
 8. If an ordinary exercise book is used, the student should 
 write on one side of the paper only. 
 
AN INTRODUCTION TO MODERN BUSINESS METHODS. 15 
 
 INTRODUCTORY LECTURE. 
 
 1. Distribute throughout the class illustrated and varied cata- 
 logues of office appliances, &c., which will readily be supplied to you by 
 commercial stationers. These may be used when considered necessary. 
 
 2. The Preface and Table of Contents should then be briefly 
 dealt with, as a means of showing the students the general scope 
 of, and the need for, such a course. 
 
 3. The Introductory Chapter should be dealt with 'in such a 
 manner as to induce the student to mould his conduct in lines 
 which, circumstances being propitious, should ultimately lead to 
 success in a commercial career. 
 
 CHAPTER I. 
 
 Materials required for practical work : 
 
 Copying ink. 
 
 Copying paper (both in book form and in loose sheets). 
 Letter paper. 
 
 Apparatus for press-copying hand-written and type-written matter. 
 Carbon sheets, stylo (or hard pencil), and paper for writing and making 
 copies on. 
 
 Press-copying : 
 
 1. Ask the students to write out, using copying ink, any 
 letters or commercial forms found in the body of the book. 
 
 2. When possible, type- write some of the letters and forms 
 above mentioned, in order to provide the necessary material for press- 
 copying type-written matter. In this way, material for demon- 
 strating, and for providing for practice on the students' part of 
 press-copying of manuscript and type-written matter, will be to 
 hand. In case there is no type-writer in the class-room, the teacher 
 should provide himself beforehand with type-written letters, 
 invoices, &c., for the purpose of demonstrating the copying of 
 type-written matter. 
 
 3. Explain, demonstrate, and give the students practice in 
 press-copying : 
 
 (a) Obtaining single copies of letters, &c. 
 
 (6) Obtaining single copies of a number of letters at one operation, 
 (c) Obtaining two, three or more copies of the same letter at one opera- 
 tion. 
 
16 TEACHER'S COMPANION: 
 
 Carbon Copying : 
 
 1. Explain, demonstrate, and give the student's practice in 
 making : 
 
 (a) Single carbon copies of a written letter, telegram, order, or other 
 
 commercial form. 
 (&) Two, three or more carbon copies of written matter. 
 
 2. Explain, and, if thought desirable, demonstrate, how one, 
 two, three or more carbon copies of letters, &c., may be obtained at 
 one operation on the typewriter. 
 
 Letter-sorting Rack : 
 
 3. Demonstrate, as far as practicable, by means of the best 
 temporary arrangement to hand, the use of this rack. This might 
 be done by diagrams drawn on the blackboard (in the absence of 
 the requisite material), setting aside certain squares as receptacles 
 for cheques, bills, specifications, estimates, &c., respectively. 
 
 N.B. All letters and documents used throughout the course 
 should be written with copying ink, and press-copied when thought 
 desirable. 
 
 CHAPTER II. 
 
 Materials required for practical work : 
 
 Macmillan's Book of Modern Business Forms, No. 1. 
 
 List of names for indexing. 
 
 Cards for making temporary Card Index. 
 
 Ordinary and Vowel Indexes. 
 
 1. Use two blackboards if practicable. Divide one so as to 
 represent a few pages of an ordinary index, and the other into five 
 columns, so as to represent a vowel index. 
 
 2. Index the names of the students in the class, persons in a 
 street, names of firms from a trade directory, and so on. 
 
AN INTRODUCTION TO MODERN BUSINESS METHODS. 17 
 Card Index : 
 
 3. Get 26 small cards. To these affix projecting lables bearing 
 the letters of the alphabet. Next get cards of the same size, on 
 which to index names and addresses of firms, titles of books, names 
 of authors, for insertion between the cards bearing the labels. 
 
 Cross-reference : 
 
 4. At this stage, the method of cross-referencing described in 
 the book may be shown on the blackboard. As the class progresses, 
 make a point of limiting the number of the names of firms used as 
 correspondents, in order that the material for practice in actual 
 cross-referencing may be provided. 
 
 CHAPTER III. 
 
 Materials required for practical work : 
 
 8vo. , 4to. , and foolscap sized writing paper. 
 
 Envelopes of various sizes, for home and foreign correspondence. 
 
 Paper fasteners of different kinds. 
 
 Stapling machine. 
 
 Local postal guides. 
 
 Quarterly postal guide. 
 
 P.O. form of application for compensation for loss of registered letter. 
 
 Folding : 
 
 1. A supply of 8vo., 4to., and foolscap sized paper should be 
 provided, so that beginners may know the difference in the sizes, 
 the names thereof, and may have practice in folding each for insertion 
 into the envelopes usually used in business houses 
 
 Paper fasteners : 
 
 2. Get fasteners of various kinds and show how they should be 
 used. If a stapling machine is not provided, it may be possible for 
 the teacher to borrow one for the occasion. 
 
 Addressing of Envelopes : 
 
 3. Give the students a number of envelopes to address, as 
 practice. See that it is done smartly, neatly, and clearly, as recom- 
 mended in the text-book. A number of addresses may be culled 
 from the text-book. 
 
 Foreign Correspondence : 
 
 4. Show specimens of paper and envelopes used for foreign 
 correspondence. 
 
 B 
 
18 TEACHER'S COMPANION: 
 
 Enclosures : 
 
 5. Put the following letter on the blackboard, and require the 
 students to indicate the enclosures in the proper manner : 
 
 BATLEY, 28th May, 1897. 
 Messrs. TAYLOR, HEATON & Co., 
 
 LONDON. 
 DEAR SIRS, 
 
 We beg to acknowledge receipt of your favour of yesterday, 
 handing us cheque for 123 4s. 9d., in settlement of last month's a/c, for which 
 we are obliged. Enclosed please find receipt for the same. 
 
 We now have the pleasure to wait upon you with invoice for Tweeds 
 despatched to-day, amounting to 23 19s. 4d., for which please give us credit 
 in account. 
 
 Kindly note that we have removed to more commodious premises, 
 situated in Claramont Terrace. 
 
 We are, Dear Sirs, 
 
 Yours faithfully, 
 
 J. W. HEAPS & SON. 
 
 Instruct the students : 
 
 (a) To copy this letter. 
 
 (6) To indicate thereon the enclosures. 
 
 (c) To make out a receipt in due form, as per example on page 52. 
 
 (d) To make out invoice as on page 53. 
 
 (e) To press-copy letter and invoice. 
 
 (/) To make up and address letter and enclosures. 
 
 Postal Rates : 
 
 6. Those given on page 16 should be committed to memory. 
 An easy way of doing this is to remember that the inland rate is Jd. 
 for each 2 oz. or part thereof, Id. being the minimum, and that 
 the foreign rate is 2|d. for each J oz. or fraction thereof. 
 
 Late-fee Letters. 
 
 7. The teacher should provide himself with two or three local 
 postal guides, showing the times up to which letters may be posted, 
 with ordinary and late-fee postage. The method of using these 
 guides should be explained, and also the method of ascertaining the 
 mails by which collections from local pillar-boxes, &c., are forwarded. 
 
 Registration of Letters : 
 
 8. Explain the regulations and afterwards ask a number of 
 questions similar to the following : 
 
AN INTRODUCTION TO MODERN BUSINESS METHODS. 19 
 
 If the following letters be lost, what compensation would be 
 obtainable from the G.P.0. ? 
 
 (a) A letter containing 6 in coin. 
 
 (It) A letter containing two 5 notes, on which a registration fee of 
 
 threepence has been paid. 
 (c) A letter containing diamonds to the value of 500, registered to 
 
 the fullest extent. 
 
 9. On the 31st October, letters addressed as at foot of page 9 in 
 the text-book were intended to be registered. Instruct the students 
 to make out a list in duplicate of the addresses, as mentioned on 
 page 18 (par. 5). 
 
 10. A registered letter to Williamson Bros., 27, Watling Street, 
 Manchester, miscarries. Ask the students to make out an applica- 
 tion for compensation for the loss thereof. 
 
 CHAPTER IV. 
 
 Materials required for practical work : 
 
 Macmillan's Book of Modern Business Forms, No. 1. 
 Quarterly postal guide (6d.). 
 Wrappers and envelopes. 
 
 Postal Rates : 
 
 1. Explain the following postal matters, using the quarterly 
 British Postal Guide (sixpence) : 
 
 Inland letters. 
 Foreign and colonial letters. 
 Inland book post. 
 Foreign book post. 
 
 2. Show how to make up circulars, invoices, <fcc., for Jd. post : 
 
 (a) In envelope with flap turned in. 
 
 (b) In wrapper. 
 
 (c) Without either envelope or wrapper. 
 
 Postage Book : 
 
 3. Enter in the postage book (using Macmillan's Book of 
 Modern Business Forms, No 1) the names and addresses of the 
 students in the class, who, for the time being, should represent 
 firms in different towns at home and abroad, the letters being 
 despatched by different mails and posted by different clerks. 
 
20 TEACHER'S COMPANION: 
 
 Petty Cash Book : 
 
 4. Instruct the students to write up and balance the Petty 
 Cash Book, using the forms given in the Copy Book, and 
 making use of the following or other items, the teacher 
 supplying dates: Balance in hand, 5 10s.; letter book, 6s.; 
 telegram, 3s. 8d. ; ink and note paper, 12s. 6d. ; postage stamps, 
 40s. ; postcards, 6s. ; string, Is. 6d. teas, 3s. 6d. ; gratuity, Is. ; 
 carriage on parcel, 9d. ; new typewriter ribbon, 2s. 6d. ; stencil 
 paper, 5s. ; newspapers, Is. 6d. ; tram fares, 6d. ; fare to Windsor, 
 5s. 6d. 
 
 Enter the above into : 
 (a) The columnar Petty Cash Book, providing suitable headings to the 
 
 columns. 
 
 (6) The ordinary Petty Cash Book, summarizing the expenditure as at 
 foot of page 21. 
 
 CHAPTER V. 
 
 Materials required for practical work : 
 
 Macmillan's Book of Modern Business Forms, No. 1. 
 
 Files of various kinds. 
 
 Set of pigeon holes. 
 
 Newspaper wrappers. 
 
 String. 
 
 Quarterly postal guide. 
 
 Letter and Telegram Register. 
 
 1. Enter up all letters previously written, also other letters in 
 the body of the book. 
 
 Filing Letters. 
 
 2. It is preferable that actual files should be used, but where 
 such are not available, explain the nature and principles of the 
 various files. Illustrations of a variety of files of different makes 
 may usually be found in commercial stationers' catalogues. 
 
 The students should file letters previously written and all future 
 letters as written. 
 
 Pigeon Holing and Docketing : 
 
 3. It is very desirable that a set of pigeon holes be used. If 
 these are not provided and a set cannot be borrowed for the occasion, 
 the blackboard may be divided into a number of compartments and 
 lettered, or a temporary set of pigeon holes fixed up with boxes, &c. 
 
 4. Show the students how to fold letters, care being taken that 
 each folded paper opens from the right-hand side like a book does ; 
 
AN INTRODUCTION TO MODERN BUSINESS METHODS. 21 
 
 also show that if the papers open some from the left and some from 
 the right, it is impossible to place other papers inside them, which 
 is the usual procedure. 
 
 5. Instruct the students to docket all letters previously written, 
 taking care that this is done in a proper manner, and as near to the 
 top of the folded paper as possible, in order that the names of the 
 writers, &c., may be easily ascertained, without untying the bundle 
 or unduly bending each paper ; having to do either of the latter 
 means loss of time and considerable inconvenience. 
 
 6. Fold, docket and pigeon hole all letters previously written, 
 also, if thought desirable, those in the body of the book and other 
 future letters and documents. 
 
 Postal Matters : 
 
 7. Explain the postal regulations relating to newspapers, using 
 the quarterly British Postal Guide. 
 
 8. Explain and demonstrate how to make up newspapers for 
 post : 
 
 (a) With a post-office wrapper. 
 
 (It) With the ordinary wrapper supplied by stationers. 
 
 (c) Without a wrapper. 
 
 9. Explain the advantages to firms of having private boxes and 
 bags. (See page 157.) 
 
 CHAPTER VI. 
 
 Materials required for practical work : 
 
 Macmjllan's Book of Modern Business Forms, No. 1. 
 
 National Telephone Company's Directory. 
 
 Material for pattern post, book post, and parcel post. 
 
 Bags, envelopes, &c., for sample post. 
 
 P.O .Customs Declaration forms and Despatch Notes. 
 
 Tapes, sealing wax, seal, &c. 
 
 Parcel Rate Books. 
 
 Quarterly postal guide. 
 
 The Telephone : 
 
 1. Explain, by means of a diagram or diagrams on the black- 
 board, how communication is effected between a merchant's office and 
 (a) His three warehouses A, B and C, in different parts of the town. 
 (I) Between warehouse A and warehouse C, by means of a switch- 
 board in the merchant's office. 
 (<-) Between the office and another firm in the same town. 
 
 (d) Between the office and a firm in another town. 
 
22 TEACHER'S COMPANION: 
 
 2. The National Telephone Company's Directory contains a 
 number of illustrated advertisements of telephone instruments, &c., 
 from which a teacher may make on the blackboard diagrams illustrat- 
 ing this lesson. 
 
 3. Resolve the class into a number of Telephone clerks and 
 dictate to them imaginary enquiries and replies, requiring them 
 to fill up the forms in proper style. 
 
 Postal Matters : 
 
 4. Explain the following postal matters : 
 
 (a) Pattern and sample post (foreign and colonial). 
 
 (b) Parcels (inland, foreign, and colonial). 
 
 (c) Post cards. 
 
 With regard to (a), the teacher should explain, demonstrate, 
 and then require the students to make up a packet of patterns or 
 samples, leaving the ends open or enclosing them in other ways 
 readily open to inspection, e.g., a transparent bag, an envelope 
 fastened with a paper fastener, &c. With regard to (6), a parcel 
 should be made up neatly and securely tied for transmission by post, 
 railway, or parcel-carrying company, It should then be addressed 
 in accordance with the mode of transit. When sent abroad, the 
 Despatch Note and/or the necessary Customs Declaration Form or 
 Forms should be properly filled up. Foreign parcels must be sealed, 
 bearing the private mark of the sender, and the students should be 
 shown the correct methods of sealing. 
 
 5. The Railway Companies', the Parcel Carrying Companies' 
 and the Post Office rates for carrying parcels, might be compared 
 by placing them side by side on the blackboard. 
 
 6. With regard to (c), attention should be specially drawn to 
 the regulations governing transmission of post cards to foreign 
 countries. 
 
 CHAPTER VII. 
 
 Materials required for practical work : 
 
 Macmillan's Book of Modern Business Forms, No. 1. 
 Trade Journal, containing price lists of chemicals, c. 
 Price Lists issued by different firms. 
 
 1. Give a general summary of Chapter VII. 
 
AN INTRODUCTION TO MODERN BUSINESS METHODS. 23 
 
 2. Resolve the class into a supposed house of business the 
 teacher to take the part of a business man, the students, of 
 employes chemical and colour manufacturers. 
 
 3. Read to them the following imaginary letter received from 
 a customer, Maxey & Bell : 
 
 " Please send by return your price list for chemicals." 
 
 4. Ask students to write out the price list for chemicals only, 
 as on page 29 ; also the following letter : 
 
 ' ' As requested in your letter of yesterday, we have pleasure in forward- 
 ing to you herewith, our price list for Chemicals, and trust to be favoured 
 with your valued orders." 
 
 5. If the teacher can obtain a trade journal, the prices in this 
 price list might be compared with the prices current in the market. 
 
 6. Telegram received from Maxey & Bell asking us : 
 
 (a) To make firm offer for crystals and palm oil soap. 
 
 (b) To quote for sperm oil, linseed oil, olive oil, and brown soap oil. 
 
 7. Write offering firm until 5 p.m. tomorrow, 5 tons of 
 crystals at 27s. 6d., and 5 casks palm oil soap at 18s. 6d., and quote 
 sperm oil 30, linseed oil ,18, olive oil 29, and brown soap oil 
 21s. 
 
 8. Reply received stating inability to make use of firm offers, 
 but enclosing order for 5 casks olive oil and 1 cask brown soap oil. 
 
 9. Ask the students to write this letter, enclosing the order 
 which (the order) they should also make out on one of the forms of 
 of the Copy Book. 
 
 10. Acknowledge receipt of order, and state that the goods 
 will be forwarded on the following day. (The invoicing and forward- 
 ing of these goods will be dealt with in chapters VIII. and IX.) 
 
 11. Received enquiry from a new firm ordering goods. Ask 
 for references, and make enquiries as to financial standing, &c. 
 
 12. Finding ourselves short of olive oil, we send a delivery 
 order to the docks asking for the delivery of 50 casks of olive oil. 
 Students to write out this order ex. str. "Vespasian," Smyrna. 
 
2,138, 
 
 12 3 18 
 
 ,,209 
 
 2,139, ,, 
 
 13 6 
 
 ,, 213 
 
 2,140, 
 
 12 3 4 
 
 2 18 
 
 2,141, 
 
 13 5 
 
 ,,212 
 
 24 TEACHER'S COMPANION: 
 
 CHAPTERS VIII. AND IX. 
 
 Materials required for practical work : 
 
 Macmillan's Book of Modern Business Forms, No. 1. 
 
 Specimens of invoices. 
 
 Railway classification of goods, &c. 
 
 Gray's tables of railway rates. 
 
 1. Summary of chapter. 
 
 2. Make out invoice in proper form for Maxey & Bell, for 
 5 casks olive oil at .26, and 1 cask brown soap oil at 21s. ; the 
 weights of the casks are as follows : 
 
 c. q. Ibs. c. cj. Ibs. 
 
 No. 2,137, weight 12 2 12 gross, 2 16 tare. 
 
 Brown \ c. q. Ibs. c. q. Ibs. 
 
 soap I No. 9,333, weight 13 16 gross, 2 1 8 tare, 
 oil. J 
 
 Carriage paid. Casks to be returned. Terms : 2^% one month. 
 
 3. Fill up delivery note and consignment note for these goods, 
 on the forms provided in the Copy Book, and despatch the goods by 
 rail. 
 
 4. Advise Maxey & Bell of the goods having been despatched, 
 and enclose invoice. 
 
 5. Two days later Maxey & Bell complain that cask No. 2,138 
 shows a leakage of 63 Ibs., and enclose a debit note covering the 
 leakage, in which there is an overcharge of 5s. Show this debit note. 
 
 6. Write to the firm that an overcharge has been made, and 
 enclose a debit note for the amount (5s.). 
 
 7. Maxey & Bell's pay-day approaching, send them a statement 
 containing the above items. 
 
 8. Deal with terms of payment, commission, brokerage, and 
 discount. 
 
 9. Specimens of other invoices should be made use of, as 
 additional practice for the students. 
 
 10. Explain the working of railway rates and canal rates. 
 
AN INTRODUCTION TO MODERN BUSINESS METHODS. 25 
 
 CHAPTER X. 
 
 Materials required for practical work : 
 
 Macmillan's Book of Modern Business Forms, No. 1. 
 P.O. registered envelope. 
 Quarterly postal guide. 
 
 1 Go through the following operations, and deal with the 
 regulations relating to each : 
 
 (a) Forward a 5 Bank of England note in a registered envelope to 
 
 your traveller, who has been robbed in Paris. Point out that 
 money cannot at present be wired, and that forwarding a money 
 order may mean delay until the advice note is received. 
 
 (b) Send postal orders for 10s. 9d. to J. W. Gray for his book on railway 
 
 rates and charges and postage. 
 
 (c) Send a money order for 3 19s. 6d. to Mawson fe Co., Graham 
 
 ^Street, London, S.W., in settlement of their account. Find out 
 from the British Postal Guide the nearest post office at which the 
 money order should be made payable. 
 
 (d) At 10 a.m. wire 3 to your traveller in Birmingham, that he may 
 
 be provided with funds with which to pay his hotel bill, and 
 catch the 2 p.m. express for London. 
 
 (e) Make out letters or advice notes referring to the above remittances. 
 
 2. Explain and deal with the following postal matters : 
 
 (a) Express delivery of letters and parcels. 
 
 (b) Railway letter post. 
 
 (c) Re-direction of letters, c. 
 
 (d) Perforation of postage stamps. 
 
 CHAPTER XL 
 
 Materials required for practical work : 
 
 Macmillan's Book of Modern Business Forms, No. 1. 
 Forms for receipts. 
 
 1. When making out a receipt, instruct the students to fill up 
 the counterfoil before the receipt proper. Make out the following 
 receipts : 
 
 (a) For 22 19s. 4d., in settlement of Taylor, Heaton & Co.'s a/c. 
 
 (b) Make out and receipt their invoice on page 53. 
 
 (c) For quarter's rent of office, due 31st December, 75. 
 
 (d) For 25, in part payment of Lanfear & Tate's a/c, and signed per 
 
 pro. , the name of the student. 
 
 (e) Make out separate receipts, and receipt a number of invoices for a 
 
 variety of payments, in some instances affixing small receipt 
 forms near the head of the invoice. 
 
26 TEACHER'S COMPANION: 
 
 Voucher Book : - 
 
 2. With the above materials (i.e., receipts and receipted 
 invoices) and a double sheet of foolscap, make a temporary voucher 
 book, as recommended on page 54. 
 
 CHAPTER XII. 
 
 Materials required for practical work : 
 
 List of names for addressing. 
 Paper of various sizes. 
 
 1. Place a number of names of firms, &c., such as the follow- 
 ing, on the blackboard, and ask the students to give the proper 
 mode of addressing : 
 
 Alice & Mary Smith, Mantlemakers. 
 Lord Londonderry, Colliery Proprietor. 
 John Wilks (a baronet). 
 
 Sir Matthew White Ridley (Home Secretary). 
 Also see page 9 text-book. 
 
 2. Draw diagrams on the blackboard representing roughly the 
 three sizes of paper mentioned, viz., octavo, quarto and foolscap, 
 and then build up the letters concurrently, beginning with the head- 
 ing of each, and following the order as given in the book. Get the 
 students to point out where these forms of letters differ. 
 
 The letters given on the following page show how they 
 should appear on the blackboard in their complete form. 
 
 3. Requisition another blackboard and give an example of a 
 memorandum form. 
 
 4. Show on blackboard how the following persons would 
 sign : 
 
 (a) Partner. 
 
 (b) Person authorized to sign per procuration. 
 
 (c) Clerk, not specially authorized to sign. 
 
 5. Peal with letter reference, using the copying book if 
 suitable. 
 
 6. The abbreviations on page 62, and their use in correspon- 
 dence, should be explained. 
 
AN INTRODUCTION TO MODERN BUSINESS METHODS. 
 
 
 
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TEACHER'S COMPANION: 
 
 CHAPTER XIII. 
 
 Materials required for practical work : 
 Letters for use in precis writing. 
 Extracts from daily newspapers for the same purpose. 
 
 1. After dealing with precis writing, the students might be 
 required to make a precis of other letters in the book and all future 
 letters. 
 
 2. Good examples of precis writing may be obtained from any 
 newspaper, by comparing the "summary" of the day's news with 
 the fuller accounts appearing in other parts of the paper. 
 
 CHAPTER XIV. 
 Materials required for practical work : 
 
 Inland telegram forms. 
 Quarterly postal guide. 
 
 1. Compress the commercial letter on the preceding page into 
 a telegram, using as few words as possible. 
 
 2. Deal likewise with other and future letters. 
 
 3. Deal with the regulations relating to inland telegrams. 
 
 CHAPTER XV. 
 
 Materials required for practical work : 
 
 Duplicating apparatus of various kinds. 
 Directions for using same (illustrated). 
 Stencil sheets. 
 Paper for use in making copies. 
 
 1. Teachers should make a complete collection of the illus- 
 trated directions as to the working of the various kinds of 
 duplicating apparatus now on the market. These instructions are 
 supplied gratuitously by commercial stationers. 
 
 2. If these machines are not provided, and cannot be 
 borrowed for the occasion, the printed directions should be care- 
 fully explained, and illustrated by means of diagrams on the black- 
 board. (It is preferable that the working of only one, or at most 
 two kinds of apparatus should be dealt with at one lesson.) 
 
 3. Explain, demonstrate, and afterwards require the students 
 to obtain a number of copies of a given circular, letter, &c. 
 
AN INTRODUCTION TO MODERN BUSINESS METHODS. 29 
 
 CHAPTER XVI. 
 
 Materials required for practical work : 
 
 Articles which have been, or are being, used as money. 
 
 1. Put on the blackboard a complete list of articles which 
 have been, and are being, used as money. The articles themselves 
 would, of course, be more striking if the teacher could show them to 
 the students. 
 
 (a) 
 
 The following list is fairly complete :- 
 
 Goods for goods (pure barter) : 
 Cloths, 
 Beads, 
 Wire, 
 Buttons, 
 Looking-glasses, 
 Clocks, &c., 
 
 for 
 
 Palm Oil. 
 Gold Dust. 
 Ivory. 
 
 Indiarubber. 
 Gall Nuts. 
 Fruits, Gums, &c. 
 
 Taking the place of coin : 
 Cattle. 
 Skins. 
 Leather. 
 Gold. 
 Shells. 
 Furs. 
 Copper. 
 Rings. 
 
 Iron. 
 
 Tin. 
 
 Tobacco. 
 
 Silver. 
 
 Nails. 
 
 Slaves. 
 
 Cowrie Shells. 
 
 Tin-plates. 
 
 (c) Coin : 
 
 Pieces of stamped metal, as the gold, silver, and copper coins of 
 England. 
 
 (d) Paper money : 
 Bank notes. 
 Bills of exchange. 
 
 Cheques. 
 Dock warrants. 
 
 3. Deal with the Mint ; coinage of money ; metallic and paper 
 currency ; also the issue of bank notes by Bank of England, and by 
 other banks possessing this right before A.D. 1844, from which date no 
 other bank has been able to get authority to issue them, B/E, 
 B.P.B. (bank post bills), and cash credits. 
 
 4. Bullion. Specie. Legal tender. 
 
 5. Monometallism. Bimetallism. Standard of value. 
 
 6. Deal with the Money Market report of a daily newspaper. 
 
30 TEACHER'S COMPANION: 
 
 CHAPTER XVII. 
 
 Materials required for practical work : - 
 
 Macmillan's Book of Modern Business Forms, No. 1. 
 P.O. Savings Bank books and forms. 
 Paying-in slips, pass books, cheque books, &c. 
 Paid cheques (received from the bank after payment). 
 
 1. Go through the whole procedure of opening an account 
 at a Post Office Savings bank, paying in money, receiving advice 
 note, and withdrawing money (a) by giving notice in writing, (b) by 
 telegraph. 
 
 2. Deal briefly with the different kinds of banks. 
 
 3. Let the teacher, for the time being, be a banker, and his 
 students business men who have no banking accounts : 
 
 (a) The teacher should place before the embryo business men the help 
 
 which he, as a banker, can be to them, as traders, if they will 
 only open accounts at his bank. 
 
 (b) Let the students then go through the whole procedure of opening 
 
 a banking account and paying in money, the teacher, as banker, 
 fulfilling his part by giving them "pass-books," &c. 
 
 (c) ' Instruct the students how to pay money into the bank. 
 
 CHAPTER XVIII. 
 Materials required for practical work : 
 
 Macmillan's Book of Modern Business Forms, No. 1. 
 Blank forms of actual cheques. 
 Cheque punch. 
 
 1. The teacher, as a banker, will now give his students, as 
 traders who have just opened current accounts with him, full 
 directions as to 
 
 (a) How to draw cheques. 
 
 (b) Altering " bearer " cheques to " order " cheques and vice versa. 
 
 (c) Crossing generally. 
 
 (d) Crossing specially. 
 
 (e) Crossing " not negotiable. " 
 (/) For a/c of payee. 
 
 (g) The use of the "cheque punch." (If this instrument is provided 
 or borrowed, the students should be shown how to mark the 
 cheques. ) 
 
 2. " Endorsements " should be fully explained and dealt with. 
 
 3. Presentment for payment. 
 
AN INTRODUCTION TO MODERN BUSINESS METHODS. 31 
 
 4. Stopping payment. (This can only be effectually done in 
 writing, not by telegram or telephone or verbally.) 
 
 5. The students should be instructed to draw cheques in 
 various ways in payment of imaginary accounts, and should pass 
 them round the class in order to get a number of endorsements in 
 the proper manner. 
 
 CHAPTER XIX. 
 
 Materials required for practical work : 
 
 Macmillan's Book of Modern Business Forms, No. 1. 
 
 Blank forms of B/E. 
 
 Blank forms of P/N. 
 
 Specimens of paid B/E and P/N's. 
 
 1. Explain how money is transmitted by B/E from : 
 
 (a) Manchester to London. 
 
 (b) Quebec to London. 
 (r) Bombay to London. 
 
 Show how these documents do away with the necessity of 
 sending large sums of money over considerable distances, thereby 
 avoiding inconvenience, loss of time and interest, risk of theft, and 
 other disadvantages. 
 
 2. Explain the advantages of these documents in relation to 
 the Home Trade. 
 
 3. Refer to B/E on page 111. Call attention to : 
 
 (a) Stamp. 
 
 (b) Date. 
 
 (c) Amount. 
 
 (d) Parties. 
 
 (e) Acceptance. 
 
 (/) Due date, and days of grace. 
 
 (g) Liabilities of the parties. 
 
 (h) Term or currency of the bill. 
 
 (t) Meaning of the word "month " in a B/E. 
 
 (j) Advising drawing of bills. 
 
 4. Divide the students into sets of two, and ask each couple 
 to draw on one another at 3 m/s. 
 
 5. With the material provided by No. 4, the teacher should 
 let the following occur to the various sets, and take the necessary 
 steps, requiring each couple of students to follow the routine of 
 their own bills, the remainder of the class participating in the work. 
 
TEACHER'S COMPANION: 
 
 Set 1. Duly accepted, presented, and honoured. 
 
 Set 2. Refused acceptance (wire parties, and ask for instructions ; if no 
 reply, have bills noted and advise parties accordingly). 
 
 Set 3. Dishonoured and noted by Notary. 
 
 Set 4. Dishonoured (no Notary available). 
 
 Set 5. Discounted at 3 per cent., state amount received. 
 
 Set 6. Passed round the class, properly endorsed by six students. 
 Dishonoured when presented. (Noted, then student 6 
 advises student 5, 5 advises 4, 4 advises 3, 3 advises 2, 
 2 advises 1, then if drawer will not pay, another endorser is 
 made to do so). 
 
 6. Accommodation bills, explain them. 
 
 7. Deal with P/N", and explain the difference between this 
 document and a B/E. 
 
 8. Touch on I. O. U.'s, and show how these differ from : 
 
 (a) A P/N. 
 (6) A B/E. 
 
 9. A British merchant in the Home Trade, being induced by 
 the preferential rates for British goods, intends to open up business 
 with Canada. He sends one of his assistants to visit Quebec, 
 Montreal, Ottawa, &c., and gives him a letter of credit for 1,500 
 dollars, addressed to Messrs. Pickard Bros., Montreal. Write out 
 the letter. 
 
YVJNIVERSITY j 
 
 AN INTRODUCTION TO MODERN BUSINlfeir METHODS. 33 
 
 ANSWEES TO QUESTIONS 
 
 SET IN 
 
 "A BEGINNER'S GUIDE TO MODERN BUSINESS METHODS." 
 
 THE HOME TRADE. 
 
 1. The materials required for press-copying are : (a) A copying-press, 
 (b) copying paper, (c) water well and damping brush, (d) drying sheets and 
 oil-sheets. When rubber or linen sheets are used, the water well and damping 
 brush are not required. With a " Rapid Roller Copier " nothing is required 
 beyond the machine itself. 
 
 2. Copying ink or combination ink should be used for documents 
 requiring to be press-copied. The other kinds of ink chiefly used in offices 
 are : (a) Office or black ink used for writing in books and for documents 
 which do not require to be press-copied, (b) red ink used chiefly for ruling 
 arid for corrections. Other inks occasionally used are : (a) Violet, red, or 
 black ink for india-rubber stamps, (b) hectograph or other ink for duplica- 
 ting apparatus. 
 
 3. The process of press-copying is fully described on page 5, and need 
 not be repeated here. 
 
 4. To copy ten letters at once ten pages of the Letter Book or ten 
 loose sheets should be damped at the same time, leaving one of the 
 corners dry, and partly dried by pressure in the press. The letters should 
 then be inserted one to each page. It is desirable, but not necessary, to 
 place an oil-sheet on each wet page ; but an oil-sheet must always be 
 placed on the top or first damp page. The book or loose sheets are then 
 placed in the press in the usual way. Six copies of a single letter may 
 be obtained at once by damping six sheets of copying paper as described 
 above, placing these sheets in a block on the letter required to be copied, 
 and giving a good squeeze in the press, leaving the letter in about five minutes. 
 In this case the damp drying sheet should be placed on the top of the copying 
 paper and an oil-sheet on top of all. 
 
 5. If a page in the Letter Book be spoiled, the word "Cancelled" should 
 be written across the page in blue or red pencil. The leaf must not be torn 
 out of the book, because if it were necessary to put in the book as evidence 
 in a Court of Law, suspicions would be aroused if some pages were found to be 
 missing. 
 
 6. In press-copying type-written matter it is best to make use of rubber 
 or linen damping sheets. With an old ribbon in the typewriter the letter 
 requires to remain in the press a longer time than when a new ribbon has 
 been iised. 
 
 7. An Index is the term applied to a number of sheets of ordinary 
 writing-paper, each bearing a letter of the alphabet. These sheets are 
 usually bound up at the beginning of a book, but they are sometimes found at 
 the end, as in the case of the Extension Index. The latter extends beyond 
 the book itself, and can be used without having to turn back the pages each 
 time when indexing. A Loose Index is the same as those already described, 
 but is "loose " that is, not attached to the book. 
 
 8. (a) Turn to the letters written on the date given, and turn back- 
 wards or forwards until the required copy is found ; (b) refer to the index. 
 
 C 
 
34 TEACHER'S COMPANION: 
 
 9. 
 
 Page W Wilson, John, & Co. 
 
 F Fox, W., & Co. 
 
 ,, G Gregory, Shaw & Co. 
 
 ,, A Amalgamated Cotton Spinner*' Society. 
 10. 
 
 (1) Ideal Club Co,, Ltd. on page I 
 
 (2) Wilson, Sir Joseph W 
 
 (3) Yorkshire Coal Co., Ltd. 
 
 (4) Gilpin- Brown, W. G. 
 
 (5) Bariisley Banking Co., Ltd., 
 
 (6) Lamb, Edward, & Co. 
 
 (7) Wilson, John, & Son 
 
 Y 
 
 G 
 B 
 L 
 W 
 
 11. The cross-reference is a device to enable us to find the immediately 
 preceding or the immediately succeeding copy of a letter to the same person 
 or firm without making use of the index. For instance, supposing the 
 letter-book is open at page 93, on which page is the copy of a letter to 
 Messrs. Edward Lamb & Co., the cross-reference on that page might appear 
 
 45 
 thus : ^oo^ meaning that the previous letter to that firm would be found on 
 
 page 45 and the next letter on page 123. 
 
 12. If letters to Williamson Co. were copied on pages 5, 29, 52, 76 and 
 93 of the letter-book the cross-references on each page would be as follows : 
 
 On page 5 29 53 76 93 
 
 5 29 52 76 
 
 Cross-references ... 
 
 13. A Vowel Index is an index in which each initial letter is followed by 
 one of the vowels a e i o n and sometimes y. In an index of this kind, the 
 letters referred to in questions 9 and 10 would be indexed thus : 
 
 Aa Amalgamated Cotton Spinners' Society. 
 Ba Barmley Banking Co., Ltd. 
 
 GiQilpin-Brown, W. G. 
 Fo Fox, W. & C. 
 Ge Gregory, Shaw & Co. 
 le Ideal Club Co., Ltd. 
 La Lamb, Edward, <fc Co. 
 
 Wi Wilson, John, & Co. 
 
 ,, ,, ,, <fc Son. 
 
 , , Wilson, Sir Joseph. 
 Yo Yorkshire Coal Co., Ltd. 
 
 14. The Card Index consists of a number of movable cards (each bearing 
 a letter of the alphabet, or two letters as in the vowel index) placed upright 
 in a drawer-like receptacle. The matter requiring to be indexed is written on 
 cards bearing no letters, and these are inserted in their proper places between 
 the other cards. A brass rod is sometimes run through a hole in the centre of 
 each card, in order to keep the cards in their places and to prevent the indexed 
 matter from being displaced. 
 
 15. Folding should be done as described on pages 12 and 13. 
 
 16. Sheets of paper are fastened together (1) by paper-fasteners of various 
 kinds ; (2) by staples affixed by means of a stapling machine ; (3) by pins ; (4) 
 by gum or paste, and (5) in Government offices by tape or cord. The left-hand 
 top corner is invariably used for the purpose. 
 
AN INTRODUCTION TO MODERN BUSINESS METHODS. 35 
 
 17. Ah Address Book is a book in which the addresses of every person or 
 firm written to, as well as their registered telegraphic addresses, should be 
 entered. This book is used for ascertaining the full addresses of such persons 
 or firms and is also of great service whenever it may be necessary to address a 
 circular to all one's customers. 
 
 18. The letter should be addressed as follows : 
 
 Robert Campbell, E*q., 
 Manager, 
 
 National Bank of India, Ltd. , 
 
 39a, Threadneedle Street, 
 
 London, E.G. 
 
 19. The maximum dimensions permissible for an inland letter are 
 2 ft. x 1 ft. x 1 ft. 
 
 20. In the improbable event of a letter exceeding these dimensions, in 
 order to send the packet through the post the contents should either be 
 divided, so as to make two or more packets, or it should be sent by parcel post. 
 
 21. If a letter weighing 5i oz. be posted with only a penny stamp affixed, 
 the surcharge on delivery would be Id., viz., double the deficiency. 
 
 22. The postage would be as follows : (a) l|d., (b) 7id., (c) Id., (d) 2d., 
 (e) 15d. 
 
 23. Prepayment of postage is compulsory on letters addressed to 
 Abyssinia, the West Coast of Africa (native possessions), Arabia, Madagascar, 
 Morocco, the Society Islands, &c. 
 
 24. If a letter addressed to any of the countries named in the preceding 
 answer be not prepaid the letter would be returned to the sender. 
 
 2~>. A /afe-fee letter is a letter posted within a certain time after the hour 
 fixed for the closing of the mail, such extra time being prescribed by the post 
 office at the place where the letter is posted. An extra fee in the shape of a 
 halfpenny stamp must be affixed, otherwise the letter will not be forwarded 
 until the next mail. 
 
 26. A late-fee letter may be posted in the late letter box to be found at 
 the railway stations in some large towns, or in the travelling sorting-box 
 attached to mail trains. 
 
 27. If money be enclosed with a letter, the packet should be registered, 
 and one of the registered letter envelopes provided by the post office made use of. 
 
 28. When a number of letters are sent by the same firm for registration 
 they should be accompanied by a list in duplicate of the addresses ; one copy 
 to be retained at the post office and the other signed and returned to the sender. 
 
 29. The limit of compensation in case of the loss of a letter containing 
 coin is 2. 
 
 30. Money, when sent by post, should be enclosed in one of the registered 
 letter envelopes provided by the post Office, otherwise no compensation will be 
 given for loss or damage. The following precautions should also be observed : 
 
 (a) If the letter contain coin, the coin should be packed in such a 
 
 way as to move about as little as possible. 
 
 (b) If bank notes be enclosed, the name of the bank of issue, the 
 
 number and amount, and (where necessary) the date of the 
 note must be retained, and, in case of loss, must be furnished to 
 the Postmaster-General if required. 
 
 (c) If a postal order be enclosed, the amount and number of such 
 
 order should be kept for reference and to be supplied to the 
 Postmaster-General if required. 
 
36 TEACHER'S COMPANION: 
 
 (d) If a bill of exchange, bond, coupon, or other order or authority 
 for the payment of money be enclosed, particulars sufficient to 
 identify the document must be supplied to the Postmaster- 
 General when required. 
 
 31. The Postage Book is a book in which all letters, &c., posted, and 
 the postage on them, are entered. It serves to show the dates on which 
 the letters, &c., were posted and to check the expenditure on postages. 
 
 32. Some firms require the exact address on the envelope to be entered 
 in the postage book in order that in case of a letter miscarrying it may be 
 ascertained whether it was properly addressed. 
 
 33. In order to prevent pilfering, postage stamps are frequently 
 perforated with the initials of the firm. This is done by a machine, some- 
 times called a " Sloper," after the name of the inventor. 
 
 34. A record of small payments is usually kept in a book called the 
 Petty Cash Book, which is generally in charge of one of the junior clerks. 
 
 35. This Petty Cash Book should show on one side the amounts 
 received or the cash in hand, and on the other the items of payment. 
 
 36. It is opened by entering the cash received or the amount in hand. 
 The payments as made are entered in the columns provided for the purpose. 
 When there is orily one column, the expenditure is summarized at stated 
 times, and the cash in hand is compared with the balance shown in the book. 
 
 37. The examples will be found on page 21 ; also specimen entries. 
 
 38. At stated periods the cashier examines the Petty Cash Book, checks 
 the additions, and after seeing that the balance in hand agrees with that 
 shown in the book, gives a cheque or cash sufficient to bring the balance up to 
 the amount of the original advance. 
 
 39. The registration fee for a foreign letter is the same as for an inland 
 letter, viz., 2d. 
 
 40. (a) Is. 7d., (b) 3d. 
 
 41. The cheapest way of sending by post a packet of books weighing 
 23 oz. is by parcel post. This would cost 4d. ; by letter post it would be 6d. 
 
 42. 1,271 W. Lamb & Co. Enquiring about Jorkins ds Co. 
 
 2 Inewell & Dowson. Wish to renew their acceptance. 
 
 3 William Brown. Remitting cheque 50. 
 
 4 Stephenson & Jones. Order for serge. 
 
 5 A. L. Wright. Complaint about, coatings. 
 
 6 B. E. Sharpe. Wants goods hurrying off. 
 
 43. The Letter Register forms a systematic record of all incoming 
 correspondence, and enables one to ascertain at a glance when a particular 
 letter was received. It is also a summary of all letters received, and thus 
 obviates reference to the letters themselves in the case of a person who has 
 been absent for some time. 
 
 44. The two most common forms of preserving letters are (1) by 
 filing, i.e., placing in files; (2) pigeon-holing. 
 
 45. (a) In N ; (6) in C ; (c) in W. 
 
 46. A " docket " is an endorsement on a letter, and is made before 
 the letter is placed in the pigeon-hole. It should always show (1) the year, 
 (2), the name of the writer, (3) the date. Occasionally a short precis of the 
 contents of the letter is included in the docket, and the dates of receipt and 
 answer are sometimes added. 
 
AN INTRODUCTION TO MODERN BUSINESS METHODS. 37 
 
 47. (a) 2Jd., (6) 2s. 3d., (c) Id., (d) Is., (e) 2fcd., (/) 2s. Id., (gr) id., 
 (A)2d., ()2d. 
 
 48. A Despatch Note and two Customs Declaration Forms are required 
 for a parcel sent to Spain by parcel post. 
 
 49. To telephone to a firm whose number is 324, ring up the Central 
 Exchange and call out, "324." If the firm is not connected with another 
 subscriber's wire, they will immediately reply "Holloa?" or "Yes?" and 
 conversation may then commence. 
 
 50. The telephone clerk's duties are to receive and send telephonic 
 messages and record the same on the forms provided for the purpose. 
 
 51. For a Telephone Message Form filled up, see page 27. 
 
 52. If you were not a subscriber to the Telephone Company, you could 
 use the telephone by going to one of the "Call Offices" and paying a fee 
 of 3d. for a message to a firm in the same town. 
 
 53. The charge for sending telephonic messages over the trunk wires 
 depends upon the distance. Up to 25 miles the charge is 3d. to a subscriber 
 and 6d. to a non-subscriber, for a conversation not exceeding three minutes ; 
 6d. and 9d. respectively for 50 miles, and so on. 
 
 54. A "trunk telephone" means the telephone wires connecting one 
 district (or telephonic area) with another. The trunk wires are the property 
 of the Government, as distinguished from the wires in towns, which, in most 
 cases, belong to the National Telephone Co. 
 
 55. When posting a parcel to Portugal, via France, a despatch note and 
 four Customs Declarations must be made out. 
 
 56. The postage on a 5 Ib. parcel to Germany via Belgium is Is. 9d. 
 
 57. There is at present no parcel post either to the United States of 
 America or to Russia. 
 
 58. A sale is a transaction by which the ownership of property is trans- 
 ferred for a money consideration called "the price." A transfer of goods for 
 goods is not a sale but an exchange. A contract is an agreement for the sale 
 and purchase of goods which are to be delivered at some future time. 
 
 59. Sales may be made either verbally or in writing, but a contract for 
 the sale of goods of the value of 10 or upwards is not enforceable by action 
 unless (1) the goods or part of them have been accepted and received, or (2) the 
 price or part of it has been paid, or (3) there is a note or memorandum of the 
 contract made in writing and signed by the buyer and seller. 
 
 60. The essential points in a contract or sale are (1) the article sold, (2) 
 the price, (3) the terms of delivery, and (4) the terms of payment. 
 
 61. A price list is a list of goods offered for sale with the prices which the 
 person issuing the document is prepared to accept. 
 
 62. A price current is a statement of the market prices of the day, but 
 does not bind a dealer to accept the prices named therein. 
 
 63. In commercial affairs the firm offer usually takes the place of a tender 
 or estimate. A firm offer is a fixed price for goods, which the person making 
 the offer binds himself to accept, generally, however, subject to certain con- 
 ditions as to quality, quantity, time for delivery and time for reply. The 
 following is an example : 
 
 As requested in your letter of yesterday we offer firm for reply by noon 
 to-morrow 2,000 pcs., 42 in., 17 x 16 Grey Dhooties, 60/70, \ in. coloured 
 border, at l/3i, f.o.b. Manchester, shipment in 14/21 days. 
 
TEACHER'S COMPANION: 
 
 64; An order is a definite request to supply a specified quantity of goods, 
 usually at a certain price and on certain terms. A quotation, is simply a stated 
 price at which goods are being sold, or, at which a person is prepared to sell. 
 
 65. A purchase or sale should be confirmed in writing when the goods 
 sold are of the value of 10 or upwards, as mentioned in Answer No. 59. This 
 may be done by embodying the order in a letter or by filling up an order form 
 or a contract note. 
 
 66. . Business may be opened either in writing or verbally or by telegraph 
 or telephone. 
 
 67- Enquiry Associations are companies formed for the purpose of making 
 enquiries about the standing of firms, their financial status and so on. Business 
 men make use of them when business is proposed by persons M'ith whom they 
 have not previously had dealings or as to whose stability doubts have been 
 expressed. 
 
 68. The essential difference between a Contract Note and an Order Form 
 is that the former is usually given by the seller or on his behalf, whereas the 
 latter is usually given by the buyer. 
 
 69. A Del Credere Contract is one in which a broker or agent guarantees 
 payment for the goods specified in the contract, for which guarantee he usually 
 receives an extra commission from the buyer. 
 
 70. One form of Delivery Order is to "bearer," the other to "order." 
 The former is transferable without endorsement, but the latter must be 
 endorsed before it can be transferred to another party. Delivery orders are 
 made use of ( 1 ) for the purpose of authorizing one's servants or agents to obtain 
 possession of goods stored in a warehouse, or at a dock, &c., and (2) in order to 
 transfer such goods to another party. 
 
 71. 
 
 375, Brown Street, 
 
 Stalybridge, 27th January, 1898. 
 Mr. John Heyivood, 
 
 Manchester. 
 Dear Sir, 
 
 Please supply the undermentioned goods at your earliest convenience 
 and debit the cost of the same to 
 
 Yours faithfully, 
 
 Roger Stephens & Co. 
 25 reams rtiled foolscap @ 6/6. 
 30 reams Imperial note paper @ 5/-. 
 10,000 A B envelopes @ 3/6. 
 To be forwarded by L. & N. W. Railway. 
 Usual terms. 
 
 72. The principal documents used in commercial sales are : Price Lists, 
 Order Forms or Contract Notes, Delivery Orders, Invoices, Credit Notes, 
 Debit Notes, Statements and Receipts. 
 
 73. A Price List is a statement of prices which a dealer is prepared to 
 accept ; a Prices Current is a statement of the market prices of the day. 
 
 74. A fixed price at which certain goods are offered. This is binding 
 upon the person making the offer, subject to certain conditions specified there- 
 with. 
 
 75. The carman or carrier signs a Delivery Book. Should the goods 
 miscarry, this book can be produced as evidence that the servants of the 
 company received them. (For specimen see page 42. ) 
 
 76. A Consignment Note is handed to the carman who collects the goods 
 for the railway company. 
 
AN INTRODUCTION TO MODERN BUSINESS METHODS. 39 
 
 77. Date, consignee, description of goods, c. (as on page 43). 
 
 78. "Counterfoil" means "opposite leaf." It contains a precis of the 
 matter appearing on the Consignment Note proper (as on page 43). 
 
 79. An Invoice. This is a document giving a detailed account of goods 
 purchased, their price, &c. 
 
 80. The necessary forms and documents to be filled up are (a) Invoice, 
 (b) Delivery Book, (c) Consignment Note. For forms see pages 36, 42, and 43. 
 
 81. Your customer would send a Debit Note (as per page 38) ; if he did 
 not, you would send him a Credit Note (as per page 38). 
 
 82. Before your customer's fixed pay-day you would send him a " State- 
 ment." (For specimen see page 39. ) 
 
 83. Discount is a rebate. Commi**ion is a charge for services rendered, 
 such as selling, &c. Brokerage is much the same as commission, except that 
 it is usually made by a broker for transacting business between a buyer and 
 a seller. 
 
 84. Gross weight is the total weight of the goods, including cases, wrap- 
 pers, bands, <fcc. Net weight is the weight of the goods alone. 
 
 85. Tare is the weight of the bags, cases, cans, &c., in which goods are 
 packed. Particular tare is the actual weight of these articles. Average tare 
 means that the average weight of a few of these articles is taken and applied 
 to the whole. Customary tare is a fixed and recognised allowance for these 
 articles made off goods in given trades. Computed tare is an allowance off 
 certain goods mutually agreed upon at the time of their sale. Super tare is 
 an extra allowance made when the cases, &c. , are exceptionally heavy. 
 
 86. Waste, i.e., an allowance made that goods may weigh out or measure 
 out fully, when sold in small quantities. 
 
 87. s. d. 
 25 reams foolscap ... 6/6 ... 826 
 30 reams notepaper ... of- ... 7 10 
 10,000 envelopes ... 3/6 ... 1 15 
 
 Packing case ... 16 
 
 17 9 
 Carriage paid. 
 
 88. To goods 17 9 
 
 89. Gross weight is the total weight of goods and cases, bags, &c., in 
 which they are packed. Tare is the weight of the cases, bags, &c., alone. 
 Net weight is the weight of the goods alone, thus : 
 
 1 cask oil ... ... 13 1 5 gross weight. 
 
 Weight of cask ... 2 1 14 tare. 
 
 10 3 19 net weight. 
 
 90. In invoices, discount means a rebate either for prompt payment or in 
 accordance with the terms of the sale, as, say, 2^ per cent, three months. 
 
 91. Payment in a few days less four months interest at 5 per cent, 
 per annum. 
 
 92. (a) Notify the company to call for the goods ; (b) fill up your delivery 
 book ; (c) make out the consignment note ; (d) see that the carman signs for the 
 goods when carted away. 
 
 93. (a) Is 0cl. ; (b) J,d. ; (<) 9^1. ; (d) 2s. Id. 
 
 94. Fold the newspaper either with or without a wrapper, in such a way 
 as to leave the title exposed. 
 
40 TEACHER'S COMPANION: 
 
 95. It is treated as a letter. In this case the extra charge would be Id. 
 
 96. A Money Order may be obtained for any amount (not containing 
 fractions of a penny) up to 10, on filling up a printed application form stating 
 the names of payee and remitter. Postal Orders are supplied for fixed amounts 
 only, ranging from Is. to 20s. ; broken amounts, but not fractions of a penny, 
 may be made up by affixing postage stamps, not exceeding 5d. in value, to the 
 face of the Order. 
 
 97. (a) 148, King Street, Hammersmith, W. ; (b) 228, Edgeware Road, W. ; 
 (c) Swiss Cottage, N.W.; (d) Whitchurch, Bucks. 
 
 98. Enclosed we beg to hand yon invoice for goods despatched to-day, 
 amounting to 9 10s. As we are in need of money to meet a heavy payment due 
 to-morrow, we should feel greatly obliged if you would remit the amount to us 
 to-morrow by telegraph, less cost of remittance, payable at the General Post Office, 
 Manchester. 
 
 99. We are in receipt of your favour of yesterday, and, as requested, have 
 remitted to you by telegraph the sum of 9 8s. 3d. , being the amount of your 
 invoice, less Is. 9d. cost of remitting. Your acknowledgment in course of post trill 
 oblige. 
 
 100. A receipt is an acknowledgment in writing that money, goods, or 
 valuables have been received. Any receipt for a sum of 2 or upwards requires 
 a stamp or stamps to the value of one penny. 
 
 101. Received by cheque, 
 
 19th January, ! 1898, 
 
 37 
 
 4s. 6d. 
 
 JOHlN JON 
 
 ES & SONS. 
 
 102. " Received on account, 150." 
 
 103. The various forms of receipts are specified on page 52. 
 
 104. The "counterfoil " of a receipt is a small portion separated from the 
 receipt proper by a perforation. On it is written a memorandum of the matter 
 contained in the receipt itself. 
 
 105. A stamp is required on a receipt given at the foot or on the back of 
 a cheque. 
 
 106. "Express delivery," as applied to postal packets, means special 
 delivery in advance of the ordinary mail. 
 
 107. Hand in the letter at the post office after having marked it 
 " Express " in the left-hand upper corner. The charge for a distance of a mile 
 and a half would be 6d. 
 
 108. (a) Messrs. Henry Livesey, Ltd., Blackburn ; (b) Messrs. Dunlop 
 Bros. & Co., 26, Great St. Helens, London, E.G.; (c) John Dewhurst, Esq., 
 24, Brook Street, Bradford ; (d) The Bradford Manufacturing Company, Ltd., 
 Bradford. 
 
 109. 26th August last, 2nd May last, 15th ult., 12th prox., 4th inst., 
 21st December next. 
 
AN INTRODUCTION TO MODERN BUSINESS METHODS. 41 
 
 110. Enclosed please find cheque for 7 5s. 6d., in payment of your 
 invoice, enclosed herewith, which kindly return receipted. 
 
 1897. 
 
 Broadhurst & Co., 
 Leeds, 27th January. 
 
 Remitting cheque, 7 5s. 6d. 
 
 111. Months, account, pieces, packages, bales, cases, parcel, discount. 
 
 112. Gentlemen, I beg to offer myself as a candidate for the situation 
 advertised in to-day's Mercury. I am 14 years of age, and have just left the 
 Central Higher Grade School, the head master of which will be pleased to 
 answer any inquiries. I am, gentlemen, yours respectfully. 
 
 113. There are three distinct styles of correspondence, viz., (1) Official, 
 used in Government offices and by private individuals or firms in correspon- 
 dence with Government departments ; (2) Commercial, used in business by 
 mercantile firms, bankers, &c. ; (3) Private, used by private individuals. 
 
 114. 
 
 BRADFORD, 14th January, 1S98. 
 Messrs. LATHAM, STEEL & Co., 
 
 LONDON. 
 DEAR SIRS, 
 
 We are obliged for your letter of yesterday, covering order for 
 80 pcs. worsted tweeds, at 3s. per yd. We regret to say, however, that as the 
 price of these goods is advancing rapidly, we cannot to-day execute an order 
 at less than 3s. 3d. We advised you to this effect by wire, and, awaiting your 
 reply, 
 
 We are, dear Sirs, 
 
 Yours faithfully, 
 
 STEPHENSON, BROWN & CO. 
 115. 
 Messrs. STEPHENSON, BROWN & Co., 
 
 BRADFORD. 
 DEAR SIRS, 
 
 In reply to your telegram and letter of yesterday, we now beg to 
 inform you that we have induced our customer to raise his limit to 3s. 3d. for 
 the goods referred to, and shall be glad if you will book the order at that 
 price. We could not reply by wire to-day, as we only received our customer's 
 instructions this evening, too late for to-day's market. 
 
 Yours faithfully, 
 
 LATHAM, STEEL & CO. 
 116. 
 Dear Sirs, 
 
 We are in receipt of your letter of yesterday advancing your limit 
 for the 20 pieces worsted tweeds to 3s. 3d. Much to our regret, we find your 
 limit is again impracticable, the lowest price to-day being 3s. 4|d. We have 
 a firm offer of the goods at that price subject to a reply by 11 a.m. to-morrow. 
 If you wish to secure them, please wire first thing in the morning. 
 
 117. 
 
 Accept your offer at 40 pence. Writing to-day. 
 
 LATHAM. 
 
42 TEACHER'S COMPANION: 
 
 118. 
 
 WEST HOLME MILLS, 
 
 BRADFORD, 24th January, 1898. 
 Messrs. Latham, Steel A Co., London. 
 
 $0ujljt of STEPHENSON, BROWN & CO. 
 
 Terms 2J% 14 days. 
 
 Yds. s. d. 
 
 80 pcs. Worsted tweeds ... 2,510 3/4 423 11 3 
 Per G. N. R., paid. 
 
 Messrs. Latham, Steel & Co., London. 
 
 (KreMtcit b STEPHENSON, BROWN CO. 
 
 Yds. s. d. 
 
 Worsted tweeds 63 3/4| 10 12 7 
 
 Returned January 28. 
 
 BRADFORD, February, 1898. 
 Messrs. Latham, Steel & Co., London. 
 
 STEPHENSON, BROWN & CO. 
 
 s. d. 
 
 To Goods 423 11 3 
 
 Cr. by Returns 10 12 7 
 
 412 18 8 
 
 119. (a) Brompton, 3 miles, Is. 6d. ; (6) Kirton, 1 mile, 6d. ; 
 (c) Leominster, 5 miles, Is. 9d. 
 120. 
 
 (63) Offer firm, reply noon to-morrow, two thousand 42 inch, 
 17 15 Grey Dhooties fifteen half f.o.b. Manchester fourteen 
 21 days. 
 (99) Have remitted nine eight three, as requested. 
 
 (114) Order received; prices advanced; lowest to-day three and 
 
 threepence. 
 
 (115) Raise limit to three and threepence. 
 
 (116) Regret again too low. Offer firm, reply eleven to-morrow 
 
 at forty and half-pence lowest. 
 
 121. Telegraph to the Post Office at the port of departure of the 
 steamer, adding the words, " Post from 
 
 122. A telegram enclosed in an envelope, and marked "Telegram 
 immediate " may be posted in a wall-box or pillar-box, and will be for- 
 warded on reaching the telegraph office provided it be prepaid in postage 
 stamps wholly or in part. 
 
 123. A "registered telegraphic address" is an abbreviated address 
 registered at the General Post Office, for which a fee of 1 Is. per annum 
 must be paid ; for example, "Hercules, London." 
 
AN INTRODUCTION TO MODERN BUSINESS METHODS. 43 
 
 124. Six identical telegrams directed to persons in the same free delivery 
 are delivered at a charge of twopence per copy, with an addition of a half- 
 penny for each word in the address of the copy. 
 
 125. Broadly speaking, "money" means any substance or commodity 
 that is freely taken in exchange for goods or for services rendered. Ordinarily 
 it applies only to coin and its equivalents, such as bank notes, &c. 
 
 126. Cattle, shells, tobacco, furs, tin, irpn, copper, silver, gold, and slaves. 
 
 127. Metal of one kind or another, on account of its portability and 
 stability in value. 
 
 128. "Standard of Value" means, in civilized countries, that substance 
 which is fixed by law as the measure or gauge of all other commodities. 
 
 129. The "standard of value" in the United Kingdom is gold; in 
 Germany it is also gold ; in India it is silver. 
 
 130. "Coin" means pieces of metal, of fixed weight and fineness, stamped 
 by the supreme authority of a country. In England coins are made at the 
 Mint. 
 
 131. " Token coins " are such as are not intrinsically worth the amount 
 they represent. Thus a shilling circulates in England as the twentieth part of 
 a sovereign, although it is intrinsically worth only 4d. 
 
 132. " Bullion " means gold and silver in bars, ingots, &c. 
 
 133. "Specie" is the term usually applied to coins when imported or 
 exported. It is also another term for metallic currency. 
 
 134. "Legal tender" means that species of money which, up to certain 
 amounts, cannot legally be refused when tendered in payment of a debt. 
 
 135. In the United Kingdom (1) sovereigns of full weight are legal tender 
 up to any amount ; (2) shillings up to 2 ; (3) pence, halfpence, and farthings 
 up to I/-. 
 
 136. The symbols ". s. (/." stand for libri, solidi, and denarii, meaning 
 at the present day 's, shillings, and pence. 
 
 137. A sum of 20/- is called a "pound " because, in olden times, a pound 
 weight of silver was coined into 240 silver pennies. At that time the silver 
 penny was the only coin in general use in this country. 
 
 138. " Metallic currency " means the coins which legally pass current in 
 a country. " Paper currency " is the term usually applied to Government and 
 Bank Notes which are legally recognised as substitutes for coins ; cheques, 
 bills of exchange, &c., are sometimes included in the term. 
 
 139. "Circulating medium" is used to express both metallic currency 
 and paper currency, but it ordinarily applies to money actually in circulation. 
 
 140. "Cheap money " means that the rates of interest are low and that 
 more money is available for loans, &c., than there is at the time a legitimate 
 demand for ; "dear money " means just the reverse of cheap money. " Light 
 gold" means gold coins which, by reason of wear and tear, &c., are below their 
 legal weight. 
 
 141. 
 
 Gentlemen, In reply to your advertisement in to-day's "Observer" 
 I Ix-ij to offer myself as a candidate for the situation. I am 18 years of age, hare 
 a fair knowledge of Modern Business M<-f/iod, Bookkeeping, French, and Short- 
 hand. I have been employed for the last ten months by Jlessrs. Sharpe & Co., 
 of 27, Gracely Street, to whom I beg to refer you for enquiries as to my character 
 and capabilities. 
 
 I am, Gentlemen, 
 
 Yours respectfully, 
 
 William Hopkins. 
 
44 TEACHER'S COMPANION: 
 
 142. A Banker is a person who receives his customers' money into his 
 care, and only pays it away again on receipt of their written orders duly 
 signed by them. His business consists in receiving and taking care of money, 
 collecting the cash value of cheques and bills, discounting bills and advancing 
 money against securities. 
 
 143. Bankers are useful to the commercial community, in that they save 
 business men the trouble, risk and expense of guarding large sums of money, 
 of carrying, forwarding and collecting large quantities of coin, and in that 
 bankers discount their bills and sometimes allow overdrafts which place 
 traders in a position to obtain extended trading facilities. 
 
 144. Savings Banks, Joint Stock Banks and Private Banks. 
 
 145. Joint Stock Bank. It was projected by William Paterson, a Scots- 
 man, and incorporated July 27th 1694, in the reign of William III. 
 
 146. (a) Commission paid by traders for the advantages enjoyed ; (6) 
 interest received for money lent ; (c) gain in interest on discounted bills ; (d) 
 commission on money remitted from provincial to London banks, and vice 
 versa ; (e) commission on securities or stocks and shares bought and sold ; (/) 
 commission on foreign exchanges ; (g) commission for taking charge of plate, 
 securities and other valuables. 
 
 147. Simple interest is charged on the principal only for any length of 
 time. Compound interest is the charge made where the interest not being 
 paid when due it is added to the principal, forming the amount upon which 
 the subsequent year's interest is computed. Thus while 100 at 5% com- 
 pound interest would in 14 years about double itself, the same sum at 5% 
 simple interest for the same time would, capital and interest added, only 
 amount to about 175. 
 
 148. Discount is a charge made for loss of interest on paying at once 
 a sum of money due a certain time hence. A rebate is practically the same 
 as bank discount. 
 
 149. A " current account " is a running account which may be added to 
 or drawn upon from day to day, without notice. A "deposit account" is 
 a sum of money deposited with a bank, in order to withdraw which it is 
 necessary to give a certain agreed upon notice, unless it be "at call," when it 
 may be withdrawn on application. 
 
 150. (See page 90). 
 
 151. W. & J. Smith. 
 
 152. Because the words following the name are simply descriptive of the 
 person's position and do not constitute a signature on behalf of the company. 
 The form required for the signing of such cheques would be : 
 
 per pro. the Airedale Spinning Co., Ltd., 
 
 Jamss Pearson, 
 
 Manager. 
 
 153. The crossing of a cheque is accomplished by drawing across the face 
 of the cheque two parallel transverse lines, with or without the words "& Co." 
 between them. The effect of crossing a cheque is that it becomes payable (by 
 the banker on whom it is drawn) to another banker only. 
 
 154. A cheque is said to be crossed generally when the crossing 
 consists only of the transverse lines with or without the words " & Co." It is 
 said to be crossed specially when the name of a bank or banker is inserted 
 between the lines ; payment would then be made to that particular bank or 
 banker only. 
 
 155. By striking out the words "or bearer" or " or order" and inserting 
 the word "only," and initialling the alteration, or by crossing the cheque to 
 the payee's banker and writing the words ' ' for a/c of payee " and making the 
 cheque "not negotiable." 
 
AN INTRODUCTION TO MODERN BUSINESS METHODS. 45 
 
 156. Either by paying it to some person who has a banking account, or 
 by taking it to some banker other than the one on whom it is drawn, and ask- 
 ing to have it cashed. (In the latter case a commission would probably be 
 charged. ) 
 
 157. John Wilson would obtain payment of this cheque by paying it in 
 to his banking account. If he did not possess a banking account, he would 
 have to pay the cheque to someone who did. 
 
 158. One is a cheque payable to "bearer" and the other to "order." 
 A cheque to " order " requires endorsing by the payee ; a cheque to " bearer " 
 does not. 
 
 159. Drawer the person who writes out and signs the cheque on the 
 face ; drawee the banker on whom the cheque is drawn ; payee the person 
 to whom the money is payable. 
 
 160. A blank endorsement is the signature of the payee or endorsee on 
 the back of the cheque without any additional words, thus, ' ' Brown, Shipley 
 &Co." 
 
 161. A crossing may be altered or added to so as to make the cheque 
 more secure, but not otherwise ; thus, a general crossing may be converted 
 into a special crossing (with or without the words " not negotiable "), but not 
 vice versa. 
 
 162. Any holder may make a "bearer" cheque into an "order " cheque, 
 but only the drawer can alter an "order " cheque to " bearer." It is done by 
 striking out the word required to be altered and writing the desired word 
 above, and initialling the alteration. 
 
 163. The meaning of the words "not negotiable" on a crossed cheque 
 is that the holder only acquires the same title as the person from whom he 
 took the cheque. If such a cheque had been stolen, the true owner could 
 recover the amount from the holder, even although he came by the cheque 
 honestly. 
 
 164 An uncrossed cheque may be crossed either "generally" or 
 "specially," by any holder. 
 
 165. For examples of the various kinds of crossing, see page 108. 
 
 166. A reasonable time for presentment of a cheque for payment is not 
 later than the day next following its receipt. 
 
 167. Payment of a cheque may be stopped by advising the banker on 
 whom it is drawn (in writing) to that effect. 
 
 168. A cheque differs from a B/E in that it is always drawn on a banker, 
 is always payable on demand, and does not require acceptance. A B/E, on 
 the other hand, may be drawn on any person or firm and either on demand or 
 for a term, and it requires to be "accepted" by the drawee. 
 
 169. The bill, if on "demand," would require a penny stamp, if other- 
 wise than on demand, a 2s. stamp ; the cheque would reqiiire a penny stamp 
 only. 
 
 170. Acceptance means either (1) a draft which has been "accepted " by 
 the drawee, or (2) the act of "accepting" meaning that the drawee under- 
 takes to pay at maturity a bill which he has " accepted." 
 
 171. A "general acceptance" is when the drawee "accepts" the bill 
 unconditionally ; a "qualified acceptance" is when the acceptance is qualified 
 by the addition of words such as "accepted for 70 only " (on a bill for 100), 
 " accepted subject to shipping documents being duly handed over," and so on. 
 
 172. The " currency " of a bill means the term the bill has to run before 
 it matures. 
 
 173. " Days of grace " in this country mean that by a legally recognised 
 custom three days must be added to the currency or term of a bill in order to 
 fix the due date. 
 
46 TEACHER'S COMPANION": 
 
 174. A "restrictive endorsement" is one which impedes or prevents 
 further negotiation of a bill or cheque, thus "pay the Commercial Bank for 
 collection. " 
 
 175. "Bills payable" are bills "accepted," or promissory notes signed, 
 by a firm, and which have to be paid by such firm at maturity. "Bills 
 receivable" are bills, either Bs/E or P/Ns, in the hands of a firm, received in 
 payment of goods, &c., and for which cash will be received at maturity. 
 
 176. " Discounting " a bill means selling the bill to a bank or discount 
 broker and receiving the amount, less a sum equivalent to the interest on 
 the amount for the time the bill has yet to run. ' ' Negotiating " simply means 
 transferring the bill to another party, generally by endorsement. "Retiring" 
 a bill is paying the amount to the holder on the due date. " Renewing " a bill 
 refers to the drawing of a new bill to take the place of a former one now 
 matured, which for some reason is not, or cannot, be met. 
 
 177. An "accommodation bill" is a bill drawn without valuable con- 
 sideration and simply for the accommodation of the drawer. In appearance it 
 does not differ from a bond-fide bill. 
 
 178. (a) On the 19th September, 1897, by Stephenson Bros, to J. Nutt & Co. ; 
 (b) On the 5th March, 1897, by Newman Co. to J. W. Turner. 
 
 179. They are drawn in " sets " to avoid inconvenience in case of the loss 
 of one of them, and at "so many days' or months' sight" in order to equalize 
 the inequalities arising from varying distance and means of communication. 
 
 180. A B/E is called an "acceptance," when the drawee has signified his 
 assent to the order of the drawee by writing his name across the face of the 
 bill. A B/E is "sighted " when the drawee sees and accepts it by writing his 
 name and the date of acceptance across the face thereof. 
 
 181. 
 
 No. 167. 94 3s. 2d. London, 31st July, 1895. 
 
 Three months after date pay to Messrs. Goodson & Co. or 
 order the sum of Ninety -four pounds, three shillings and twopence, value received. 
 
 JOSEPH THOMPSON. 
 To Messrs. Williamson Bros. & Co., 
 Manchester. 
 
 The acceptance would be written across the face of the bill, thus : 
 
 Accepted. 
 
 Payable at the 
 
 Commercial Bank, London. 
 
 Williamson Bros. & Co. 
 
 The endorsement would be simply : 
 
 Goodson & Co. 
 The due date is 3rd November. 
 
 182. LONDON, 
 
 31st July, 1895, 
 Messrs. WILLIAMSON BROS. Co., 
 
 MANCHESTER. 
 DEAR SIRS, 
 
 I beg to advise having drawn on your good selves, as arranged, in 
 favour of Messrs. Goodson Co., a draft, No. 167, for 94 3s. 2d., at 
 3 m/d, which please accept on presentation, and oblige, 
 
 Yours faithfully, 
 
 JOSEPH THOMPSON. 
 
 183. Sole or Sola is the term used when only one of a B/E is drawn, as 
 opposed to a " set." First is the term used to distinguish one copy from a 
 succeeding one of a set when two or more parts are drawn. Copy, an exact 
 copy of an original bill. The copy is negotiated, and the original sent to 
 drawee for acceptance. Via denotes one of a set of bills of exchange. 
 Maturity, the date when payment is due. Currency, the period of time a bill 
 
AN INTRODUCTION TO MODERN BUSINESS METHODS. 47 
 
 has to run. Inland Bill, a bill, the drawer and drawee of which both reside in 
 the United Kingdom. Foreign Bill, so called when one or both parties do not 
 reside in the United Kingdom. DjD = demand draft ; DjA = documents 
 attached ; 3 m/d = 3 months after date ; 30 d/s - 30 days after sight. 
 
 184. The term " ,sas recoil rs " means that an endorser, by using these 
 words after his endorsement, on, the back of the bill, is thereby protected from 
 liability upon the bill. 
 
 185. The parties to an accepted and endorsed B/E are : (1) Drawer, 
 (2) Drawee (or Acceptor), (3) Payee, (4) Endorser and Endorsee. 
 
 186. A blank endorsement is when the endorser writes simply his name, 
 e.cj., "James Brown." A special endorsement would contain further words, 
 e.g., " Pay to Messrs. Williams & Co. or order, James Brown." 
 
 187. A bill is "dishonoured" if the drawee refuses to accept, or the 
 acceptors refuse to meet (or pay) it when due. 
 
 188. A promissory note differs from a B/E in that it does not require an 
 "acceptance " being made out by the debtor, and handed to his creditor. 
 
 189. The due date in case (a) is 3rd March, 1898 ; case (b) is 30th October, 
 1897 ; case (c) is 28th December, 1897 (the 26th being Sunday and the 27th a 
 Bank Holiday). 
 
 190. 
 
 (1) No. 55. LONDON, 
 
 420 : : 30th September, 1897. 
 
 Three months after date pay Messrs. Skipton & Co. or 
 order the sum of four hundred and twenty pounds, value 
 received. J. HOLLAND & CO. 
 
 To Messrs. Mackintosh & Co, , 
 
 Manchester. 
 
 The acceptance would appear thus, across the face of the 
 draft : 
 
 Accepted. 
 
 Payable at the 
 
 London and Westminster Bank, 
 
 London. 
 Mackintosh Co. 
 
 The endorsement would be on the back, and would read : 
 Pay Messrs. Provost Bros, or order. 
 Skipton & Co. 
 
 (2) 160 : 10 : 
 
 LEEDS, 4th October, 1897. 
 
 Three months after date we promise to pay Messrs. Provost 
 Bros., London, the sum of One hundred and sixty pounds 
 ten shillings, value received. 
 
 SKIPTON & Co. 
 
 191. The B/E should be presented for payment January 2nd, 1898, 
 by Provost Bros, (or the holder) to the London and Westminster Bank, 
 London. The P/N should be presented for payment January 7th, 1898, by 
 Provost Bros, to Skipton & Co. 
 
 192. LEEDS, 4th October, 1897. 
 *gl Messrs. PROVOST BROS., 
 
 London. 
 DEAR SIRS, 
 
 We beg to hand you herewith a 3 m/d draft on 
 
 Messrs. Mackintosh & Co., Manchester, for 420, and our P/N at 3 m/d for 
 160 10s. in payment of your account, amounting to 580 10s. 
 Kindly acknowledge receipt per return, and oblige, 
 
 Yours faithfully, 
 
 SKIPTON & Co. 
 
48 TEACHER'S COMPANION. 
 
 193. By selling it to a bill broker or a banker, having previously 
 endorsed it in blank. The amount received would be 420, less 89 days' 
 interest at 2^% per annum, or 417 8s. 9d. 
 
 194. A Letter of Credit is a document whereby a person residing at 
 a distant place, either at home or abroad, is requested to hold at the 
 disposal of the party designated (the bearer of the L/C) any sum of money 
 up to a certain fixed amount, and generally within a specified time. 
 
 195. Bills Payable are bills "accepted," or promissory notes signed, 
 by oneself. Bills Receivable are bills either accepted or P/N's in one's own 
 possession, received in payment of goods, &c. Bills for Acceptance are bills 
 received from a correspondent for the purpose of procuring acceptance 
 to them by the firm on whom they are drawn. Post Dated. A bill or 
 cheque is said to be post dated when the date it bears is in advance of 
 the actual date on which it is drawn. 
 
 196. 
 
 No. 43,832. LONDON, 29th October, 1897. 
 
 THE LONDON AND WESTMINSTER BANK, 
 
 LONDON. 
 
 Pay Messrs. Sharpe & Short or order the sum of Two hundred and 
 fifteen pounds seven shillings and sixpence. 
 
 215 : 7 : 6. SAML. BURTON. 
 
 The crossing would be as follows : 
 
 London & South- Western Bank, 
 
 A/c payee, 
 this being written within two parallel lines. 
 
 197. LONDON, 2Qth July, 1897. 
 SAML. BURTON, Esq., 
 
 LONDON. 
 DEAR SIR, 
 
 We beg to advise having valued upon your goodself our draft, 
 No. 696, at 3 m/d 215 7s. 6d. o/ Messrs. Grimstone & Co., which we recom- 
 mend to your kind protection. 
 
 Yours faithfully, 
 
 DEARMAN & Co. 
 
 ^./ SAML. BURTON, Esq., 
 
 g LONDON. LONDON, 26^ July, 1897. 
 
 ^ DEAR SIR, 
 
 V Enclosed we beg to hand you a draft at 3 m/d on your 
 
 goodself, for 215 7s. 6d., for the favour of acceptance and return. 
 
 Yours faithfully, 
 
 GRIMSTONE & Co. 
 
 198. Council drafts are demand drafts drawn by the Secretary of State 
 for India (London) on one of the Indian Government Treasuries at Calcutta, 
 Bombay, or Madras. Telegraphic transfers are moneys paid to the remitter's 
 nominee by telegraphic request (see page 136). 
 
 199. A letter of credit is defined in Answer 124. There are two kinds in 
 general use (1) where the sum stated is to be paid at one place only, and (2) 
 where the whole of the amount may be obtained at one of several places named, 
 or a portion at some or each of such places. In the latter case the document 
 is called a " circular letter of credit." 
 
 200. A cheque is always drawn on a banker on demand; an I.O.U. is 
 simply an acknowledgment of indebtedness; a promissory note is merely a 
 promise to pay at some specified future time. Bills of exchange, unlike any of 
 the above-named documents, may be drawn on either a private individual, 
 a firm, or a banker, are usually payable some days or months ahead (although 
 they are frequently* drawn on demand), and, except when on demand, require 
 acceptance by the drawee. _ 
 
 CHORLEY AND PICKERSGILL, THE ELECTRIC PRESS, COOKRIDGE STREET, LEEDS. 
 

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