a I BRA RY OF THE U N 1 VERS ITY or ILLINOIS 031 M33e 190 7 r;^99H JjSL/ ''-‘'^ilM&mKSif^ »g~. f^W ' Wfe: Wt'-- ■ri'^f'i^-'Vl ■jHTV - V •V o 9 A. \ < • V / ■j - V 4 COMMERCE NOTICE HOW TO OPEN A BOOK. From ^^Modern Bookbinding.^* Hold the book with its back on a smooth op covered table; let the fpont board down, then the other, holding* the leaves in one hand while you open a few leaves at the back, then a few at the front, and so on, alternately opening back and front, gently pressing open the sections till you reach the center of the volume. Do this two or three times and you will obtain the best re¬ sults. Open the volume violently or carelessly in any one place and you will likely break the back and cause a start in the leaves. Never force the back of the book. “A connoisseur many years ago, an excellent customer of mine, who thought he knew per¬ fectly how to handle books, came into my office when I had an expensive binding just brought from the bindery ready to be sent home; he, before my eyes, took hold of the volume and tightly holding the leaves in each hand, instead of allowing them free play, violently opened it in the center and exclaimed: ‘ How beautifully your bindings open!’ I almost fainted. He had broken the back of the volume and it had to be rebound.’* COMMERCE In his Colossal Allegory of the Apotheosis of Washington in the Rotunda of the Capitol, Bruimidi has a group symbolical of Commerce. Mercury, with portrait of Alexander Hamilton, and of Robert Morris, signer of the Declaration, financier of the Revolution in the last days of his life imprisoned for debt, and here given enduring fame. ..^ •v*': '• «'.••■ ^ V* -Sk ' ■' ■ V^K '■• 1 -' ‘ ' ■ ' ^ A -iu . %.:r^ , ')^ ■ v*r= ^r.v’* •' .mmv 33XHMM03 C' • orfi ni ” froJ^nirfgfiW lo «i803riioqA arfi lo Ib^zoIoD 8iii nl /joiDxiimoD io [fiDilodra’^z quoi^ b asr! ibiinimH ,^o^iqB^ arfi lo isbnuioM larr^ia .ainoM fudoH }o bnfi ,noJlimBH labnexalA io liBiJxoq dJiw ,^(10319!^ 9 itl aid io syjsij JzbI aril ni noiiuIov 9 >I 9 rfJ lo labnsari ,noi}BiBlD 9 (l 9 <7 = 35 ; (S x 4) + (2 x 7) + 3 = 37 ; (5 x 5) +(2 X 4)+ (3x7)+ 3 = 57; (5x3)+ (2x5)+ (3x4)+ 5 = 42; (2x3)+(3 X5) + 4 = 25; (3X3) + 2 = ii. To prove a problem in multiplication divide the product by the multiplicand, and if the quotient gives the multiplier the multipli¬ cation is correct. A second method is similar to that employed in 7453 325 1152775 BUSINESS AND COMMERCE 15 proving addition by the cross addition of the digits in the numbers. Multiply the sum found by the cross addition of the digits of the multiplicand by that found in a similar way from the multiplier; add the digits of this product and the sum should be the same as the sum of the digits in sum found by the cross addition of the digits of the original product of the multiplication. Thus: — 234 2 + 3 + 4 = 9 1+4 + 5 = 10 Q + o = 9 145 - - 90 33930 (34-3 + 9 + 3) annex 0=180 i+8 + 0 = 9 Multiplication by Aliquot Parts .— In commercial arithmetic it is very important that one should have a perfect knowledge of aliquot parts of 10, 100, and 1000, and of its practical use. Suppose, for ex¬ ample, that you wish to multiply by 3^. Now since 3^=-!^, you may multiply by 10 and divide by 3. Since 33^=-i|-^, to multiply by 33^ you may multiply by 100 and divide by 3. You will find that in a similar manner many whole and mixed numbers may be used in fractional form, and a large amount of time saved thereby. Following is a partial list of such numbers: — T 1 10 ^9 - = -T- 125 =1-0/- T 1 _ 10 ■*^4 - 8 i6|=ir 150 = H - t 3 _ 10 ly- - j - - c 100 ‘^0 = 4 i 66 | = 1 - 0/1 T 2 10 = ^, 1_100 33^ — ^ 175 =-f- ^1 _ 10 ^2 - 37 y — —g— 250 = 1-0/1 ,1 _ 10 50 275 —1-1/0 c _JL0_ 5 — 2 1 _ 5 0 0 ^^2 - 8 -,-7^1 _ 10 0 0 333'3‘— 3 ^1_100 66| = lfA 375 =-^Y- « 1 _ 10 0 75 450 j r,l _ 10 0 625 =1-0/1 875 Subtraction. — Since subtraction is concerned with only two num- bers there is no way ' of shortening the operation appreciably. In mental subtraction, such as in making change, it is sometimes conven¬ ient to subtract the tens figure first, and then the units. Suppose, for example, that you wish to return change from a dollar tendered in payment for an article that cost 32 cents. Subtract 3 from 9, leaving 6, and 2 from 10, leaving 8. In this way you find that you must return 68 cents in change. Of course you would have obtained the sanie result if you had subtracted the 2 first, but the other method is considered by many to be preferable. Division.— There are few methods of shortening the operation of division that are at all practical, for though there are numerous so i6 BUSINESS AND COMMERCE I called short cuts,^^ their complexity deprives many of them of utility. After acquiring a thorough knowledge of the multiplication tables for the numbers up to 20, it will be found a rapid and convenient/method when dividing by one of these numbers to perform the operation by short division.Thus: 14) 289756947 Divide through by 14 as 20696924^^ though it were a number of one digit, omit the partial subtractions, and record only the quo¬ tient and the remainder. When possible to do so it is sometimes convenient to separate the divisor into factors, and proceed as follows: To divide 485923 by 96, divide 96 into its factors 12 and 8 and divide first by 12, then by 8: — 12 ) 485923 8) 40493....7 remainder 5061....5 “ There is a remainder left after each division, but the true remainder is (12x5)4-7 = 67, hence the result of the division is 5o6i-||-. One of the best methods of shortening the operation of division is by the use of aliquot parts in a manner similar to that in multi¬ plication. Suppose, for example, that 3mu wish to divide 896745 by i66|. Now i66-| 1000 “6”’ hence 896745 i66| 896745 1000 896745 X 6 I 6 I X 1000’ You therefore, multiply by 6 and point off three places of decimals, the latter being equivalent to division by 1000. Thus the result is: — 896745 ^ I X 6 5^80470 --= 5380.47. 1000 1000 In a somewhat similar manner we may treat the aliquot parts as decimals instead of fractions: thus in the foregoing example instead of multiplying by the fraction the same result would be obtained by multiplying by the decimal .006. This applies to all of the numbers given in the table of aliquot parts under the subject of Multiplication. The following hints regarding the divisibility of various numbers will be found useful: — Any number is divisible by 2 if its last digit is even. Any number is divisible by 3 if the sum of its digits is divisible by 3. Any number is divisible by 4 if it ends with two or more ciphers, or if the number expressed by its two rightrhand figures is divisible by 4. Any number is divisible by five if its right-hand figure is a 5 or a o. BUSINESS AND COMMERCE 17 To multiply together two mixed numbers in which the whole numbers are the same, and the sum of the two fractions equal i, as in y-J and yf, multiply the whole numbers by the next higher whole numbers, and to this product annex the product of the fractions. Thus. 7ix 7|= (7 x8) + (ixf) = 56|. To multiply together any two numbers, each of which contains the fraction add to the product of the whole numbers half their sum plus Thus: 6ix8-i- = (6x8)+i(6 + 8)+^=55j. In a similar manner to multiply together two numbers each containing add to the product of the whole numbers f of their sum plus Thus: 6|-x8f=(6x8)+f (6 + 8) 4-y^^ =59 yV- ^ similar method may be em¬ ployed in all cases where the fractions are alike. Although the foregoing methods will often be found useful, the best general method for multiplying mixed numbers is to reduce them to improper fractions and multiply by cancellation. Thus: 15 60 8^ X 14-5- =-X 17 111 8 2 Decunals .— It often happens that in operations involving decimals the result is required to be correct only to two or three decimal places, hence it is advisable to avoid work that gives more decimals than are required. Suppose, for example, that you wish to find to the nearest cent the cost of 26^ bushels of wheat at 62^ cents a bushel. Write the multiplier with the figures reversed under the multiplicand so that the units figure (6) of the former falls directly beneath the units figure (2) of the latter. Now proceed as indicated by the figures at the right, getting the figures to carry by multiply¬ ing the figure used in the multiplier by the next figure of the mul- tinlicand to the right of it. 6225 5762 1245 =(2 X 622)+I (carried from 2x5 = 10) 3y3=(6x 62)+! ( “ “ 6x2 = 12) 43=(yx 6)+i ( “ ■“ yx2 = i4) 3 =( 5 X o)+3 ( “ “ 5x6 = 30) $16.64 In determining what number to carry if the product from which the carrying number is obtained is between 5 and 14 (in¬ clusive) carry i; if between 15 and 24 (inclusive) carry 2; and so on. If it is desired to have the product correct to three decimal places, 13—2 BUSINESS AND COMMERCE i 8 arrange the numbers as before, and in multiplying by each number in the multiplier begin with the first number to the right of it in the multiplicand. Thus, in the same problem, proceed as indicated. It 6225 5762 12450= 2x6225 (nothing to carry) 3735 =(6x 622)43 (carried from 6x5 = 30) 435 =(7 X 62)41 ( “ 7x2 = 14) i6.63i=( 5X 6)41 ( “ “ 5x2 = 10) $16,651 will be observed that there is a difference of i cent in the two re¬ sults, which shows that the latter method is more accurate, and hence is the better to use even in finding the result of the two decimal places. The division of decimals may be shortened in a nearly similar manner, when the quotient is required to a given number of deci¬ mal places. Thus: to divide 65.743 by 3.1846, the result to be correct to two decimal places proceed as follows: Write the dividend and divisor as in ordinary division, without reversing either. You see that the whole number of the divisor is contained in the whole num- 3.1846 ) 65.743 ( 20.64 ber of the dividend a number of times ^369 such that there will be two places of whole numbers in- the quotient. Now as you are to limit the number of decimal places in 14 1 . .... the quotient to two, the entire quotient ~ will contain four places. Hence take only the first four places of the divisor, that is 3184, and strike out the fifth place. Proceeding as in ordinary di¬ vision, you find that the first figure in the quotient is 2. Now, in multiplying the divisor by this 2 multiply by the 6 that was struck out, so as to get the carrying figure, hence you get (2x3184)41 (car¬ ried from 2 X 6 = 12)= 6369. Subtracting, you get 205 as a remainder. Do not bring down the next figure in the dividend, as in ordinary division, but instead strike out the next right-hand figure of the di¬ visor (4). Now since 318 is not contained in 205, write a o in the quotient, and strike out the next right-hand figure of the divisor (8). The next figure in the quotient is 6, since 31 is contained 6 times in 205. Proceeding as in the first part of the operation you get: (6x31)45 (carried from 6x8 = 48)=i9i. Subtract as before and strike out the next right-hand figure of the divisor. The next figure of the quotient, which is obtained as before is 14. This com- BUSINESS AND COMMERCE 19 pletes the operation, and gives the result to two decimal places. The result may be found to three decimal places in a similar manner by using all of the five places in the divisor, instead of only four. Percentage.— The calculation of percentage is an operation that is required very frequently in the commercial world, and speed and accuracy in its computation are very necessary. The various rates per cent, may be expressed in three different ways, namely, with the per cent, sign (%), as fractions, or as decimals. As each of the methods is useful at various times a study of the following table of equivalents may be found to be of benefit: — I %=TOT=-°I 4 % = TCI =-025 = "sV 5 % = A- =-°5 = tV =-0625 8 % = A H% = tV = 10 % = j,, = .1 14% = i =-125 i6i%= I =.i6-p 20 % = 25 33 i% = 5 ° % = 66 |% = 75 % = O X 4 1 3 X 2 _2 3 X 3 X 8 Xoj^ _ 3 __ 4 A - 4 0 0 - 25 33 i 66 | 75 875 005 0075 two or more discounts are allowed 25% and 20% 1.00—.20=.80; 1.00 — 270, which is the ^^net^^ 3 — 6 — *^^3 Often in commercial transactions allowed, as, 33^% and 10%. In computing these, subtract'each from 100% and multiply together the two results. This last result will give the desired net after deducting the single discount correspond¬ ing to the various others taken together. Thus to find the net amount of a bill of $500 on which there are discount, proceed as follows: i.oo—.25 = .75; .io=.9o; .75X.80 x.9o = .54. 54% of $500 = of the bill. To mark goods purchased by the dozen so as to make a certain rate of profit, proceed as follows: — To make i8|^ move decimal point in cost one place to the left and add ^ of itself i6|^ I 2 §^ 20 $ 25 i 26 io 28 io 30 i 32 i zzW" 35 % 37 i 40 % 44 Io 50 i 60 io 80 io (( u it 3 ^ i ii 1*6 ii 0 i 3^4 it i A ii iS i a ii \ ii h ii 7 i( h ii i i i ii i ii ii i 20 BUSINESS AND COMMERCE If a man buys socks at $4.50 a dozen pairs, and desires to mark them so as to make 35% on each pair, he may determine the marking price per pair by reference to the table, as, Removing the decimal point of 4.50 one place to the left, he gets .45. Adding to this of 45 (=5) he finds that the selling price a pair must be $0.50. There are numerous methods for shortening the operation of find¬ ing the interest on a given sum, at a given rate per cent., for a given number of days, months, or years, but the best practical method for ordinary use is by means of cancellation. Write the principal multiplied by the rate per cent., multiplied by the time in years (for instance), as the numerator of a fraction and 100 as the denominator, then find the result by cancellation. If the time is given in months, write the number of months as part of the numer¬ ator, and 12 as a part of the denominator. Thus to find the interest on $500, 6% for 9 months we get $500 X 6 X 9 100 X 12 — = $22.50. If the time is given in days, write the number of days as part of the numerator and 360 as part of the denominator, since in ordinary operations in interest the year is regarded as made up of 360 days. As the year really contains 365 days, however, we must write 365 in the denom¬ inator instead of 360, if we desire to be exact. Having found the interest by regarding the year as made up of 360 days, if we desire to find what it would be on the basis of 365 days, we need only sub¬ tract* from the interest first found -^3 of itself. Thus, if the interest on a certain amount for a certain time is $146, on the basis of 360 days to the year, we may find what it is on a 365 day basis as follows: — $146 — (ytg. of $146) =$144. With sums of $500 or less, or with times of 30 days or less, the difference in the use of the two bases is too small to be appreciable. Following is a very useful rule for calculating 6% interest on any sum for a given number of days: multiply the sum of money by the ^ number of days, point off three places of decimals, and divide by 6. The quotient is the desired interest. Thus: Find interest on $639 at 6% for II days. 639x11 = 7029; 7029-i-6 =$1.17. Assets. — All the property of every sort, belonging to a business or any individual, solvent, bankrupt, or deceased. Assignee. — A person to whom an assignment is made. N BUSINESS AND COMMERCE 21 Assignment. — The transfer of a whole or part of an interest in an estate or property. Assume. — To take upon oneself, as a debt or an obligation. Assured and Assurance. — The same as insured and insurance. Attachment. — A taking of the person, goods, or any property by legal process, to secure a debt or demand. Attorney. — One legally appointed by another to transact business for him. Such power is called power of attorney. Auction.—A public sale of property to the highest bidder. Audit.— To examine and adjust accounts. Averages. — In marine insurance there are two kinds, particular and general. A particular average is a pro rata contribution levied upon all underwriters to cover damages to a vessel from accidents of the sea. A general average is a contribution ■ levied upon* ship¬ owners, and owners of cargo or freight for mutual protection as the cutting away of masts or rigging, etc., or throwing goods overboard. Award. — The decision of a board of arbitrators in a case. Balance. — The difference between the debit and credit sides of an account. Balance Account.— A general account in the Ledger to which are transferred at a certain date the balances of all other accounts. This then indicates the financial condition of the business. Balance Sheet. — A statement of affairs at a given period based upon the books and accounts. It sets forth the capital, liabilities, assets, and funds on hand. Balance of Trade. — The difference in value between the exports and the imports of a country. Bale. — A bundle of goods in a cloth cover, ready for carriage. 22 THE LADDER TO SUCCESS IN BANKING V By LTMAN J. GAGE 1 SHALL deem myself fortunate if I can paint in adequate language, for the young men of our glorious country, the magnificent prospect which opens before us in the new century. With a land whose material resources are just coming into view; with a population strong, vig¬ orous, inventive, and full of enterprise; with a climate stimulating to mental and physical activity, what may not be expected in the way of material accomplishment ? But these conditions will be deeply affected by the moral quality and political wisdom of our people, particularly of our young men. A right knowledge of our true relation¬ ships, a mutual confidence between sections, and a loyal adhesion to true economic and financial laws, are con¬ ditions precedent and indispensable to the highest degree of attainment, whether in material progress or in social happiness. To promote these conditions, to help to the realization of these results, the judicious cooperation of intelligence and of patriotism is necessary. In this needful cooperation, the banker is an all-important factor. May he never be found wanting! Now, what qualities must a young man have to make a successful banker,— that is, one who is upright, intelligent, and reliable ? A true sense of patriotism is the first essential, for in no other relation is the state so dependent on the integrity of its servants. The man who han¬ dles finances, whether public or private, must give his best thought and his best efforts to the betterment of his country and of his fellow-citizens; for this is, in the highest type, the cause of humanity. The successful banker must be a trained man, and, as a rule, he goes through a long and rigorous novitiate. He must have a realizing sense of the truth of the proverb: A teachable spirit is essential to the gain¬ ing of wisdom. Certainly it is essential for the gaining of financial acumen, and I would advise all aspirants for success along financial lines to frame this proverb in their offices or bedrooms. Originality counts for a great deal; but it is safer, when one is young, to follow the beaten track, and to profit by the wisdom of those who have learned in the BUSINESS AND COMMERCE 23 school of experience. When experience comes, you will be in better shape to profit by it. More solid fortunes have been made by industry and perseverance than in the so-called coups of the market. It goes without questioning that integrity is an indispensable quality. A young man must learn to be mentally honest,— that is, he must not deceive himself. A wise father said to his son who was called to the bench: My boy, in giving judgment, be not ruled by love or by hate, for both are equally disastrous to justice. It would be trite to say that in no occupation can a young man succeed without industry, but this is particularly applicable in the banking business. Finance is a hard mis¬ tress to serve, and she showers her favors only on those who woo her untiringly, and with unfaltering devotion. She requires all the time, energy, and effort of a young man’s life. After the usual working hours, she insists on extra duty. You must plan and study and work out your own problems and solve your own difficulties. As in the case of learning, no royal road leads to success. But few occupations offer more flattering rewards than the bank¬ ing business. It is a healthy sign of the times that the majority of suc¬ cessful financiers have risen from the ranks. Some men, whose word now affects the world of money to the uttermost ends of the earth, began life as bank messengers. They struggled and studied, observed condi¬ tions around them, and picked up the golden words of wisdom which fell from the lips of the Solons of their line, — in a word, they solved the problems, and made their fortunes. Patriotism, courage, integrity, in¬ dustry, perseverance, and an intelligence which embraces all practical branches,—these are the qualities necessary for the young man who aims to be a successful banker. But this question has also an academic side, and there are many points which as yet are not definitely settled and determined. Forty years ago, we had no such problems as we now face. The Civil War burdened us in many ways, not the least being the financial load placed upon our shoul¬ ders. Our bankers, since that trying period, have had more arduous duties to perform, more difficult threads to untangle. Drastic legislation struck down the faulty system of bad currency, and established another, the im¬ mediate purpose of which was to facilitate the negotiation of the rapidly growing public debt. Through taxation, every channel was drained, and these influences, acting both separately and conjointly, brought vast sums of money which were locked away from current use in trade and industry. The banker had to face the greenback problem, a measure which, even in the trying days of the Civil War, had been adopted with fear and hesitation by all thoughtful statesmen and financiers. But the green¬ back was then, as it is now, associated in the minds of the people with things sacred. It is battle-scarred,— battle-stained,^^ and every effort 24 BUSINESS AND- COMMERCE which bankers made to throw upon it the light of economic truth was, and still is, in many quarters resented as a sacrilege. As if this problem left by the Civil War were not enough, bankers have, through political compromise, been made to assume others. The complications introduced into an already serious difficulty by the legis¬ lation concerning the silver coinage and money standard, between 1878 and 1893, is familiar to even the youngest financiers. Now, what is the present situation ? We have in circulation among the people, and as a reserve fund in the banks, three hundred and forty-six million dollars’ worth of government notes. They constitute an enormous public debt, payable on demand. We have, or soon will have, substantially six hundred millions of silver, or paper representatives of silver, whose parity with gold value the gov¬ ernment is under obligation to maintain. The ultimate measure of this obligation is the difference between the commercial value of the money metal and the face value at which it circulates. This difference is not far from three hundred million dollars. We have a system of banknote currency whose volume is but faintly related to the needs of the community, which a properly constructed bank currency most economically serves. It is, on the contrary, as all know, controlled as to volume by the price of interest-bearing United States bonds in Wall Street. The banker, whether acting as the servant of the people in the gov¬ ernment offices, or doing business for himself, has it within his power to work much good or evil. His peculiar position is that of an inter¬ mediary in affairs, and this gives him an exceptional opportunity to study and grasp these momentous questions. ‘His interests, tied as they are to varied and multiplied business activities, put him under bond to do all he can for the general welfare. Upon his.character, intelligence, and fidelity to duty and truth, as applied to all these questions touching the national honor or private trust, the country has a right to rely with implicit confidence. Here in our own land, we are witnesses of the metamorphosis of previous conditions and methods of business. The consolidation of capital, the centralization of industries, excite new and serious inquiry as to the consequences and effects they may carry in their train. Are they the natural and healthful unfolding of a true economic movement ? Will they carry beneficial fruits which will find an equitable distribu¬ tion through the body politic as a whole, or will they prove to be engines of power, by the aid of which the few can exploit the many ? My faith is strong in the first direction, but the real meaning and fu¬ ture influences of these modern phenomena should be studied and made clear to the general comprehension. Grave consequences depend upon BUSINESS AND COMMERCE 25 it. Two dangers are apparent. One is that, through prejudice and ig¬ norance, we may block the path of natural progress. The other is that the force and power involved in these great organizations may be utilized for oppression and robbery. To the banker, the country looks for safety. May he never be found lacking in those qualities of mind, of heart, and of head which must form the country’s safeguard. THE MAKING OF A BANKER By GEORGE G. WILLIAMS President of the Chemical National Bank of New York T he making of a banker is a slow process. The man who reaches an important position in any substan¬ tial bank, does so only by long years of faithful and painstaking service, either in the particular bank with which he is identified, in some other banking institu¬ tion, or in a commercial house. I have no sympathy with any man’s ambition to become rich over night. Such an ambition is unwholesome and dangerous, and is the off¬ spring of aggravated avarice and ill-advised enterprise. One can count on the fingers of a single hand almost all the men in this country who have retained suddenly acquired riches. A longer time is required to learn how to take care of wealth than to learn how to acquire it. As the founder of the house of Rothschild once said: It is easier to make money than to keep it.^^ To the men who have suddenly come into possession of wealth, but wno have been for years laying the foundations of their fortunes, I do not, of course, refer. The banking business is not the one for the youth who is ambitious to be a rich man at thirty. But for him who is intelligent, persevering and patient, willing to wait and to work hard for his reward, banking offers a most satisfactory c ireer. A man can achieve success in this profession without brilliancy or any unusual gifts. But he must have a high standard of integrity, and the strong will necessary to live up to this standard amid the temptations of the banker’s life. The first thing we do when we contemplate engaging a young man is to satisfy ourselves that he is honest and strong, the rest does not bother us. Having such material to work with, we can soon make a banker. But the young man must have, or must acquire, the habit of polite¬ ness. When I became assistant paying teller, 1 recognized the necessity 26 BUSINESS AND COMMERCE of uniform courtesy to all. It was then that the formative influences of early life became of practical value to me. My childhood had been spent in a professional atmosphere. Culture and refinement surrounded me at home, and I would have been a pretty poor specimen of humanity if I had not become to some extent imbued with these qualities. My father and mother always showed the strongest contempt for duplicity and cowardice. I learned to share their feelings, and have tried to im¬ part my ideas in this respect to all who have come under me in the bank. At the very beginning of my experience, I observed that many a shabby coat hid a package of bonds or a snug sum of money, and that fine attire did not always cover a millionaire. This knowledge suggested to me the prudence, as well as the justice, of being courteous on all oc¬ casions, and I have always made it a rule of the bank that its employees be considerate and polite to every one. Many an important customer has been lost to a bank through the incivility or neglect of an employee. We act on the principle that an ounce of politeness saves a ton of correc¬ tion. The officers and clerks of this bank, being always civil to those who enter its doors, have set an example to clerks and messengers com¬ ing in here, which has borne good fruit, as we have been told by their employers. If I had twenty tongues, I would preach politeness with them all, for a long experience has taught that its results are tangible and in¬ evitable. It is the Aladdin's lamp of success. If a man is a gentleman, he can lift a trade up to the standard of a profession. A man can make of banking a trade, a business, or a pro¬ fession. Some men go into a bank with no other ambition than to be useful machines; at a salary and in a position for life. This is by no means an illaudable ambition, as such men have usually recognized their inability to grasp questions of finance, and measure their desires by their capacity. These intellectual machines are an invaluable part of the mechanism of a bank, and, if the president be wise, he will treat them well, pay them fairly, and try to keep them contented. Of course, the men to whom I refer are often able, and are philosophically resigned to good, steady situations that secure to themselves and their families com¬ fortable incomes. These men are unprogressive, and after reaching a certain stage of their careers the)" rarely acquire new knowledge. To attain to positions of high authority in banking, a man must be on the alert for. information and try to profit by each new experience. To speak personally, the most valuable part of my training was received when I became a discount clerk. The handling of commercial paper is one of the most difficult functions of a bank. Any fairly educated man can acquire the technical features of banking, but the science of banking is the study of men. The discounting of paper peculiarly involves such a study. In the dis- BUSINESS AND COMMERCE 27 count department I learned that the basis of all great institutions is in the character of the men who control them, and not in the brick and mortar, steel rails or money which are behind them. A man may be a member of a most reputable and wealthy concern, but, if he lives beyond his means, it is necessary to be very careful about his or his firm’s paper, for his course is a dangerous one. The principle applies equally to great corporations, which from time to time require loans on their se¬ curities. Finance is so intimately connected with all human affairs, that the man at the helm of a great bank must watch all the points of the compass for warnings of impending storms. It is the study and knowl¬ edge of extraneous matters in their relation to finance that make bank¬ ing a profession. To find in banking a satisfactory career, a young man must not, as I have said, hurry to acquire wealth. He should not only live within his income, no matter how small, but should save a little. This may be hard to do, but it is indispensable, and I don’t know of a successful man, who has made his own money, who has not had to do it. The youth should remember that knowledge increases his capacity to make money, and so should devote his evenings to study and reading. He should also avoid bad company, not only in people, but in books and newspa¬ pers. Self-denial is at times painful, but it is part of the fiery ordeal that produces the true metal. Trouble should always be faced squarely. We often see lions in our paths, which, upon approach, prove to be shad¬ ows. The value of time is too little appreciated and cannot be measured by money. A young man should be careful to avoid temptation be¬ yond what he has strength of mind to resist. Temptation strengthens character, if resisted,— but it is a very dangerous thing to trifle with. The great trouble with most country boys who come to the city is that they haven’t sufficient stamina to resist temptation. All such would do better to stay at home. The cause of disaster to many country boys in the city is not in themselves so much as in their surroundings. They are sociably inclined, but have, as a rule, no society, save that which they pick up, and which too often proves not only unprofitable, but ac¬ tively pernicious. The city boy, on the other hand, has the advantage of home and high social influences to guide and restrain. I should say to young men anxious to make the most of their lives: Live to build up a temple within yourself. Fear God and do your duty,—that means, to yourself and to your fellow-men. God has given you the rough marble; shape it into divine form or shatter it, as you will. It all rests with yourself. 28 THE MANAGEMENT OF A BANK By JAMES G. CANNON Vice-president^ Fourth National Bank, New York I T IS not my purpose at this time to go into a lengthy discussion of any particular branch of the banking business, but 1 shall endeavor to enumerate some special points which I believe worthy of considera¬ tion in conducting the business of a successful banking institution. No one can dispute the fact that this is an age of great advancement; and it seems to me that progress should manifest itself not only in the devel¬ opment and perfection of the steam engine, the telephone, and the X rays, but quite as much in the machinery of the banking business, and in all legitimate mercantile pursuits. Competition in all lines is steadily increasing, thereby narrowing the margin of profit, and it is important that we should so adjust the intricate machinery of our business by the introduction of modern methods of conducting it that we shall not only keep abreast of the times, but, if need be, a little in advance of them. The preference for antiquated methods is well illustrated by the fact that there are to-day scattered over the country a large number of bank¬ ing institutions that are suffering from dry rot, and this may be attrib¬ uted largely to the fact that their officers are timid about advancing new theories and outlining up-to-date policies in the management of their business; consequently, the banks, with their listless and indifferent directors, coupled with small profits, barely manage to maintain their existence. For convenience, I have divided my subject into four parts: First, The Business of a bank; second. Its Officers; third. Its Employees; fourth. Its Machinery. First, Its Business. A bank should not be organized nor its business conducted for anyone set of men or class of trade. No bank can be successful when managed exclusively in the interest of a political party, whether Republican, Democratic, Prohibition, or Populist. Neither can it be expected to prosper when conducted for the benefit of one section of the country — East, West, North, or South — nor when managed for the sole interest of one religious denomination, whether Presbyterian, Baptist, Episcopalian, Hebrew, or Catholic. While a good bank should know neither politics nor religion, I believe that every bank, as well as every other institution or business, should be conducted on strictly Christian principles. A bank should so unite the different interests of a community that all’may contribute to its success and prosperity. BUSINESS AND COMMERCE 29 As an organized and legalized money-lender, a bank, in making loans, should endeavor, as far as possible, to avoid favoring any one class of the business community above another. It should so distribute its funds that no matter what financial complications may arise, its loans shall be diversified and its risks divided in such a manner as to insure it against anything but comparatively slight losses. It should never ex¬ tend such a large credit to any one person or firm that the failure of such a party or parties would embarrass or imperil the institution. Over¬ loaning is an error that a bank officer is very liable to fall into, as it is so much easier to loan freely to a person whom we believe to be perfectly sound and solvent than to go to the trouble of investigating a large num¬ ber of borrowers and dividing the risks. Many bank failures have been the result of loaning to single firms and individuals larger amounts than were prudent or lawful. A well-known writer states that the most important part of a banker’s education is to learn whom to trust. This is undoubtedly true, but un¬ fortunately many bank officers have no careful system of investigating the standing and credit of those who borrow from them. They simply rely upon the prestige of the concern, so to speak, or upon some vague idea or memory of the past goodness of the customer. Every bank should have a carefully organized and thoroughly equipped credit depart¬ ment, to determine the reputation and responsibility of its customers, and, as it is quite impossible for a bank officer to keep in mind the finan¬ cial status of every firm and individual doing business with his institution, this department should have the custody of these records, besides keep¬ ing a check on the amounts and different classes of paper under discount. There is a strong aversion on the part of some borrowers to having their affairs investigated, but any one wishing to borrow money from a bank should have the same feeling toward it that a merchant does who purchases goods from a wholesale dealer. The latter has a commodity to sell, but before shipping the goods he naturally requires a statement of the purchaser’s condition, and any facts that will aid in arriving at a decision as to the line of credit to be granted. The banker, also, has a commodity to sell — for money is a commodity — and he should be doubly sure of the financial strength of the party to whom he is loaning or selling it, as the funds he advances do not belong to him, but to the bank’s stockholders and depositors, and are held in trust by him; hence he should exercise the utmost care in ascertaining the credit worth of parties to whom he grants accommodation. Borrowers who hesitate and refuse to give their banks a complete statement of their condition, take an unreasonable position, as, no matter how great their reputation for soundness and integrity may be, the bank cannot be expected to make a credit basis upon something that is, at 30 BUSINESS AND COMMERCE best, only indefinite and uncertain. I have always held that a bank is entitled to know the fullest details regarding its customers, if they come to it with their hats in their hands. This may be a homely way of put¬ ting it, but its meaning cannot be misunderstood. Some houses consider themselves entitled to financial favors at the hands of their banks; but, if they are asked for particulars regarding their condition, they are at once disposed to resent inquiry, taking it as a piece of impertinence. Experience has shown that in ninety-five cases out of a hundred where borrowers take this stand, they are in a precari¬ ous condition and have something to conceal. Recent failures have con¬ firmed my opinion of this matter, and I am more strongly convinced than ever that it is the part of wisdom in all such cases to accept the benefit of a doubt and decline the advances desired. Of course, it is possible that a concern of high standing will sometimes refuse to make a statement, and yet be entirely able to meet its obligations. Sooner or later, however, it will feel the desirability of having its bank entirely confident of its position. Nerve is sometimes needed to carry into execution the suggestions I have offered; but time will convince the bank officer who adopts them that he has taken the right course, and the results will be equally grati¬ fying to himself, and to the bank’s directors and stockholders. If, in every case where credit is desired, a statement is obtained and thor¬ oughly analyzed, as well as supplemented by a careful investigation in the trade as to the promptness and integrity of the parties making it, the banker has the assurance that he has done all within his power to protect his institution against imposition and fraud; and if, under these circumstances, he finds that his confidence has been misplaced, he has the satisfaction of knowing that he did his full duty. The funds of a bank should be loaned on short time. There is a growing disposition in the mercantile community to sell goods on longer time and date bills further ahead, and this naturally leads merchants to ask for extended tim^e on their paper; but if a banker complies with such requests, the maturities of his bank are seriously disarranged. If all bank officers would insist, as far as possible, upon shorter notes, the re¬ sult would be beneficial to themselves and to the community, as it would produce a more healthful state of commercial affairs, and tend to curtail excessive credits on the part of the merchants. In some sections it is, of course, impossible to do business in this way, but in large cities and im¬ portant money centers it can be done with but little inconvenience. Another point which should be carefully considered is that of renew¬ ing paper. ' After a note has been renewed once, the bank should insist upon payment when due, and thus be allowed to see the color of its money. This may seem a hardship to those who, especially in small BUJ5IN15SS AND COMMERCE 31 country towns, borrow with the expectation of having the loans renewed year in and year out, they simply paying the interest; but it forcibly re¬ minds them that their debts must be paid, and they will no longer regard them as trivial matters, which may be adjusted merely by an interest payment once or twice a year, as the case may be. I have good author¬ ity for the statement that at least sixty per cent, of the assets of many country banks consist of what may be said to be virtually past due paper, upon which the banks are obliged to accept renewals. This is certainly startling. No bank should treat its customers in such a way as to lead them to believe that it stands ready to furnish permanent capital for their business; and the payment of a note should be insisted upon, even if the borrower is allowed to have the money back within twenty-four hours. I should like to emphasize the importance of having a bank treat all its customers alike, and upon a fair and equitable basis. A bank is con¬ ducted for the purpose of making money for its stockholders, and in loaning no favoritism should be shown. Besides its capital stock, it has the use of its customers’ deposits; and the average balance of a customer’s account is the proper basis upon which he should be treated, all other things, of course, being equal. The funds of many banks are monopo¬ lized by supplying the requirements of their directors or the wants of the friends of the officers; and it is often a cause for wonderment on their part why the bank is not more successful in its business operations. But if the depositors are treated in a fair, straightforward manner, and given the attention to which they are entitled, the bank will inevitably win its • way into public favor and achieve success. People love fair play, and no one desires it more than the man who keeps his money in your bank, and he justly expects to be treated with the consideration which is ac¬ corded to others. The reserve is another important feature. In addition to the cash reserve required by law, every bank should have a reserve, either in the shape of call loans or some other available assets, which can be quickly converted into cash. In determining of what this latter reserve should consist, and the amount to be carried, the location of the bank, and its business and customers, should be taken into consideration. Its quick asset reserve should, however, be a liberal one, as nothing yields so much prestige to a bank as to be able to respond promptly, if for any reason its depositors should find it necessary to withdraw a large amount of money in a short time. The last point to which I shall direct your attention in regard to the business of a successful bank is the question of advertising. A promi¬ nent advertising agent says in a treatise which he has written on this subject: — I 32 BUSINESS AND COMMERCE The objects to be attained by advertising are to increase business, to procure additional trade, to win the attention of persons who have not acquired the habit of bestowing their custom at any fixed place, to secure the attention of the man who never did want anything in your line till now, and never expects to do so again, but is ready to go for it wherever he is told that it can be obtained on reasonable terms. Therefore I am thoroughly convinced that a bank should judiciously advertise its business. In advancing this opinion I am no doubt run¬ ning counter to a large number of conservative bankers who pride them¬ selves upon the fact that, although their banks never advertise, they have a good business and consider it beneath their dignity to solicit an ac¬ count. These gentlemen are sustained in their opinion by such a well- known financial writer as George Rae, who stated in the, Country Banker, that banking is a business to which the process of pushing must be applied, if at all, with the utmost circumspection, and that you should rely upon your customers’ good-will to bring fresh business to the bank without moving yourself in the matter. This may be true in old, settled communities like those in England, but in sections which develop as readily as those in the West, progress requires information, which can properly be imparted through the medium of advertising. The question now arises: What is the best way for a bank to adver¬ tise ? This, of course, depends largely upon the situation of the bank and upon its officers; but careful and judicious advertising through any medium wdiich reaches the public has more to do with the prosperity of a bank than many men realize. A. careful record should be kept of every letter soliciting an account, every circular mailed, every new account received, and all matters pertaining to new business, for it is only in this way that you can see the benefits of advertising. Tell the absolute truth in your statements and make them so plain that no question need be asked to ascertain the exact condition of your af¬ fairs. My second topic is the bank’s officers. The latter should be broad¬ minded men, thoroughly conversant wdth all classes of business. They should not give themselves up to narrow views or prejudices, but should endeavor to look upon business matters from an unbiased standpoint and to give careful, conservative, and, at the same time, quick judgment. Promptness of action is one of the most desirable qualities in a bank officer. If he shows any hesitancy about answering the questions that come before him from day to day, or if he be dilatory about passing upon the problems presented by customers or clerks, it at once creates a lack of confidence on the part of those coming in contact with him, and in many cases his judgment is doubted. A bank officer should always be courteous; there is no good reason why a person who is the custodian BUSINESS AND COMMERCE 33 of Other people’s money should exhibit a disposition that is overbearing- and disagreeable. Many bank officers expend a good part of their time in looking after detail work, which, if properly systematized, could be satisfactorily han¬ dled by others. An officer has the direction of the affairs of the institu¬ tion— he is supposed to have certain capabilities that other men do not possess — to be able to handle and place men so that they will do the best work, and, in general, to be the governing power of the bank. An offi¬ cer should be able to select from his force competent clerks to attend to comparatively unimportant matters which require research and time. This will relieve his shoulders of many burdens, keep his mind free for large matters, and enable him to grasp the reins of the whole bank » and guide it to success. The officers of a bank should work as a harmonious whole for the welfare of the institution. No bank can be truly successful when its officers are continually at loggerheads with one another, or when there is jealousy among them, and one tries to take advantage of another. They should have strong confidence in one another, and should remember the old but ever true adage: In union there is strength. One of the most essential qualities of a bank officer is executive abil¬ ity. A story is told of an elderly lady whose daughter attended a fash¬ ionable boarding-school. At the beginning of her second year’s course, the mother inquired of the principal how the young lady was progress¬ ing. She was informed that her daughter was doing nicely but that she lacked one thing—capacity. The old lady immediately took out her pocketbook, inquired the cost, and said she was prepared to pay for it. Executive ability, like capacity, cannot be purchased, but must be ac¬ quired by long study and hard work, and even then some men never seem to attain it. This should be one of the chief virtues of a bank offi¬ cer, and is one which a board of directors should carefully consider when selecting him. The position of the bank officer is trying in more ways than one. He must know how to say no to a man who keeps a small ac¬ count, when a five thousand dollar loan or discount is th^ object of his visit, and say it in such a way that it will leave no sting. It would hardly be fair, after discussing the officers of a bank, to pass over the board of directors, which is an invaluable adjunct to every well- managed bank. The directors are the counselors of the officers, but they should not assume the responsibilities or duties of the officers. They may advise or direct concerning the general policy, but should leave details to the executive management, and before entering into any transaction for the bank, they should consult the officers and secure their approval. 13—3 34 BUSINESS AND COMMERCE They should be broad and liberal-minded men of high character and standing—men who command respect in the community. An ideal board of directors should be composed of leading men who are actively engaged in the different business interests of the community, so that when an offering for discount is received from any of the various branches of trade, there will be some member of the board who is able to pass upon it. By associating this class of men in your board, you are likely to bring to the bank customers from the entire community, and the bank will not be managed in the interests of a clique. There is a feeling in some quarters that directors should not be bor¬ rowers from their own bank, and, in fact, they should keep their accounts elsewhere; but if a director does not ask any more than his account entitles him to receive, if he will comply with the conditions as regards security, and within the limitations of the National Bank act, and does not try to make better terms for himself than he would give to other customers in like circumstances, there is no reason why he should not be a borrower from the bank. The third important feature of a bank is its employees. They must be, first and foremost, loyal to the bank and its officers. No institu¬ tion should tolerate in its employ a man who is disloyal or who does not have its active interests at heart. They should learn this lesson when they first enter the institution. The employees should be men of good education. Some institutions are giving preference more and more to young men who have graduated from business colleges, as they have proved to be more competent to take up the general work of the bank. One of the best recommendations a young man can have to-day in applying for a position in a bank is a diploma from a good business college. The employees of a bank sometimes demur against what they call espionage upon their private conduct, saying that it is very humiliating to be suspected of wrong-doing. Someone has said: Watchfulness is not synonymous with suspicion. With a man’s politics or religion, a bank should not interfere; but no possible check should be omitted upon any officer or employee, and all honest men should court these checks as good business methods. An employee of a bank, by reason of the position of trust involved, should keep his private life above suspicion. The least tendency to dissipation or fast life should work his discharge. This sort of life has been the foundation of more than one-half of all the defalcations in banks. Neither should an employee ever permit himself to be open to the temptation incident to speculation of any sort. A bank, on the other hand, has its duty to perform toward its em¬ ployees. It should treat them fairly and justly in the matter of salary, not overwork them, and give them a reasonable vacation period. A BUSINESS AND COMMERCE 35 fair compensation for service rendered should be the spirit that governs all institutions in regulating the salaries of employees. No bank can be thoroughly successful without the hearty cooperation of those in its employ; and, as an efficient and loyal service is indis¬ pensable to good management, the officers of a bank should advance its prosperity by securing the very best service that can be obtained. They should recognize that if the work of a bank has been well done, this re¬ sult has not been achieved by the officers alone, but through the well- directed efforts of all — that each clerk contributes his share in handling the business of the bank and is entitled to credit therefor. Every bank should have a system of promotion, and matters pertaining to the wel¬ fare of the employees should receive careful attention. No bank should ever go outside of its own working force for a man to fill an advanced position, if it has in its ranks a man capable of discharging the duties of that office. Fourth, the bank’s machinery must be considered. Here we come to a point where a whole day could be spent in considering different plans. By machinery, I refer more particularly to the internal working of a bank. Experience has taught me that the machinery of a bank should be as simple as possible, free from all complications, so that a person of ordinary intelligence could go into the bank and understand its book¬ keeping. Every improvement that will save time and labor should be introduced. Careful statistics of the various transactions of the bank should be gathered, and the general summary of its condition, as it comes to the officers, should be so plain that he who runs may read. The stationery should be a distinctive feature of the institution—neat, plain, without flourishes, and business-like. I do not believe in fancy letter-headings or envelopes. The machinery should be well oiled by employing plenty of help. Short help should be the last economy practised in a bank. Large institutions should employ at least one or two extra men to fill up any gap that may be occasioned by illness, so that the business may not become congested by reason of the absence of two or three clerks. I cannot close these remarks without referring to the position a bank should take with regard to its neighbors and competitors. There should be a community of interest between banks, not only in large cities, but throughout the country. ^^No man liveth to himself, and we all need the help and cooperation of our neighbors. There should be a stronger bond of fellowship between banks, and in this way, if in no other, we can avoid some of the large losses which come upon us from time to time. There is business for all, and every bank officer should face the mat¬ ter of honest competition fairly and squarely, and try by all the means 36 BUSINESS AND COMMERCE in his power to keep his bank in a healthy condition. I look forward tO the time when all the state banking associations in the United States will be joined in some union that will make them of still greater service to their members, as well as to our beloved country. Bankrupt.— One who fails or cannot pay his just debts. Bankruptcy has a dual meaning; it is a state of inability to pay all debts, and the word also designates the process by which an individual or a corporation may obtain a discharge of his or its indebtedness, by surrendering his or its property and otherwise complying with the law. A bankruptcy law enacted by Congress in 1800 was repealed in 1803. In 1837 a commercial crisis in this country resulted in failures to the extent of about $100,- 000,000. In consequence of the panic that ensued, Congress passed another bankruptcy act in 1841, but repealed it in 1843. Most of the banks suspended specie payment in 1857, during the financial panic. The Lowell act, passed in 1867, was in force until 1878. The existing law dates from 1898.^ During the intervals when there was no national bankruptcy law, all matters pertaining to insolvencies were under the control of the states. Bankrupt Law.— A law under which a man surrenders all his property to assignees for the benefit of his creditors, and receives a discharge from all indebtedness and freedom from liability against future acquired property. Banks. — A bank is an institution for receiving, holding, and lend¬ ing money, and, when a national bank, for the issue of money. The banking institutions of this country are. national, state, private, sav¬ ings, and loan and trust companies. In 1780 the Continental Congress granted a charter to the Bank of North America. Doubt arose as to the power of that body to perform this act, and the bank was rechar¬ tered by Pa. in 1781. By 1791 twm other banks, one in Boston and one in New York, had been founded. In that year Congress estab¬ lished the Bank of the U. S., which had an authorized existence of 20 years and a capital of f 10,000,000, one-fifth to be supplied by the Fed¬ eral Government. In 1811 Congress declined to recharter the bank, and the country had no other than state banks until, in 1816, the Second U. S. Bank was established to run 20 years, with a capital of $35,000,000, of which $28,000,000 was represented by government stocks. It had 25 directors, of whom five were appointed by the U. S. This bank was the custodian of the public funds, and the veto by President Jackson of the act renewing its charter was made an issue BUSINESS AND COMMERCE 37 in the presidential campaign of 1832. After the election, the national funds were removed from the bank and deposited in state banks, which emitted bills indifferently secured and of various denominations. This system worked so disastrously to the commercial interests of the country that a national bank act, suggested by Secretary Chase, was passed in 1863 and amended in 1864. It is modeled on the old New York State banking law, by which the circulating notes of all the banks of that state were secured by stocks and bonds, one-half of which had to be securities of the state itself. Under the existing national banking law, any five persons with a total capital of $50,000'' are empowered to open a bank and issue circulating notes to the amount of 90 per cent, of their capital invested in U. S. bonds, but not to exceed 90 per cent, of the par value of those bonds. In cities of more than 6,000 population, the minimum capital is $100,000 and where the population is more than 50,000, double that amount. The same ratio of circulating medium to capital is maintained everywhere. The existing law has added some $350,000,000 to the currency. Banks, Postal Savings. — Originated in England, where they were established in 1861. The system was not general at first, but it was eventually extended to all the money-order offices in the kingdom. The depositor is given a pass-book, in which his deposit is credited, whereupon the postmaster-general is notified of the transaction by the official and immediate receiver of the money, and the deposit is ac¬ knowledged by the department. The government, which is responsi¬ ble for all money received, invests the latter in national funds and the depositors are in every conceivable way secured against loss. So elastic is the system that the depositor may apply for repayment at any post office in the kingdom and may direct that payment be made to him there or at any other postal savings bank. His order is sent to the postmaster-general, from whom he receives a warrant on the office named. When he presents this, with his pass-book, the money is paid. Deposits may range from one shilling to ^50 in one year, but the total, including interest, which is 2-J per cent., must never exceed ^£ 200 . The system is especially adapted to the needs of people who are remote from any regular savings institution, and it has found favor in continental countries. Several postmasters-general, endorsed by the Presidents, have urged its adoption in the U. S., and bills to that end have been repeatedly introduced. The system is growing in public favor and there is little doubt that something of its kind will be established in the United States in the near future. Barratry.— Cheating or fraud on the part of a ship master against the owners or insurers of a vessel. 38 BUSINESS AND COMMERCE Bill.— An account of goods sold or delivered, or for work done, with items, price, and dates. Bill Clerk. — One who makes out the bills of goods sold. Bill of Entry. — A written aecount of goods entered the custom house for importation or for exportation. Bill of Exchange.— An order, drawn on a person in a distant plaee, requesting the payment of a sum of money to another person or his order. Bill of Health.— A certificate from the health authorities that a ship’s company is in good health on leaving port. Bill of Lading. — An aceount of goods shipped and an aeknowl- edgment of their reeeipt and promise to forward safel)^ made by the agent of the transportation company. Bill of Parcels. —A bill accompanying a sale of goods fully item, ized. Bill of Right.— A form of entry at the custom house which pro¬ vides for a provisional landing of goods pending further information. Bill of Sale. — A writing which conveys personal property to an¬ other for a eonsideration. It corresponds to a deed of real estate. Bills Payable.— Promissory notes or drafts held against a firm by other parties. Bills Receivable. — Promissory notes or drafts due to an individ¬ ual or firm from others. Bond.— A written obligation to pay a debt or to faithfully perform some duty. A mortgage as an additional security usually accompanies a bond. The penalty attaehed to a bond is usually twiee the sum for which one is bound. Witnesses and formal acknowledgment are nee- essary. Bonded Warehouse.— A government warehouse for storing goods until duties are paid. Bonus. — A premium paid for a loan, charter, or privilege. BOOK-KEEPING.— Book-keeping is the art of recording business transaetions in a systematie manner, so that a proprietor may know the true state of his business and property at any time. The same system is not used by all business houses, but the differ¬ ence is only in form^ not in the principles employed. If these principles are once learned, a set of books can be kept in whatever enterprise the book-keeper may obtain employment, BUSINESS AND COMMERCE 39 There are two methods of book-keeping in general use, termed Single Entry and Double Entry. In single entry book-keeping only personal accounts are kept in the ledger. In double entry book¬ keeping, accounts are kept in the ledger with things as well as persons. Single Entry.— The books to be used depend much upon the character and extent of the business. Those usually employed are Cash Book, Bill Book, Journal and Ledger. Other books, such as Sales Book, Order Book, Shipping Book, etc., are sometimes used. The Cash Book contains the receipts and payments of cash. The difference between the sum of the receipts of cash and the sum of the payments of cash will show at any time the amount of cash on hand. The Bill Book contains a record of all written obligations issued by the proprietor to others, and of those in his possession made by others. Such obligations in favor of the proprietor are called Bills Receivable., and those made by him in favor of others are called Bills Payable. The Journal contains all debits and credits to persons growing out of transactions with such persons. An explanation of each transaction should be made, so that anyone may understand all important facts regarding them. A clear and complete history of every transaction should be kept, and the book formerly used for this purpose is called a Day Book, or Blotter, though the Journal is now generally used instead. The Ledger is the account book. In it the debits and credits are called Accounts, and the grouping of these is called Posting. Debit, abbreviated Dr., shows either that the person after whose name it is entered has become indebted to the proprietor, or that the proprietor has got out of his debt, in part or in whole. Credit, abbreviated Cr., shows that the proprietor has become in¬ debted to the person after whose name it is entered, or that such per¬ son has got out of the proprietor’s debt, in part or in whole. A Resource is any kind of property belonging to the business; as, bills receivable, an account owing to the proprietor, cash on hand or in bank, real estate, stocks, bonds, mortgages, stock, furniture, fixtures, unpaid interest, etc. A Liability is a debt of any kind owing by the proprietor as an outstanding note or a debt due to another person. Investment, as used in book-keeping, means the capital put into the business. It may be cash, property, real estate, amounts due from others; in short, anything of value. The Present Worth of the proprietor is the net amount of his in¬ terest in the business at any stated time. To ascertain present worth, 40 BUSINESS AND COMMERCE find the difference between the resources and the liabilities. If the resources exceed the liabilities, the difference shows that the proprietor has property in the business to that amount. If the liabilities exceed the resources, the business is insolvent ; that is, there is not sufficient property in the business to pay its debts. Net Gain is the excess of present worth over the investment. Net loss is the excess of investment over present worth. The term Cash is applied to specie, government bills, bank bills, bank checks, sight drafts, postal notes, money orders, and all other pa¬ per that is payable on demand. In keeping books by single entry, the following rules for debit and credit should be observed: — The Proprietor is credited with the sum of his resources at begin¬ ning of business; with subsequent investments; and with his net gain, if any, when books are closed. The Proprietor is debited with the sum of his liabilities at begin¬ ning of business; with sums he draws from the business; and with his net loss, if any, when the books are closed. Others are debited in the Journal when they get into the proprie¬ tor’s debt; and when the proprietor gets out of their debt, partly or wholly. Others are credited in the Journal when the proprietor gets into their debt; and when they get out of his debt, partly or wholly. Cash is debited in the Cash Book when it is received into the busi¬ ness from any source. Cash is credited in the Cash Book when it is paid out, for what¬ ever purpose. Bills Receivable are entered in the Bill Book as soon as received, together with the date of the note or acceptance, the date on which it will fall due, the name of the party who will pay it, name of en¬ dorser, if any, name of the place where payable, and the amount. When paid, this fact is indicated in the proper place. Bills Payable are entered in the Bill Book with date of issue, date of maturity, name of the payee, where payable, and amount; when paid, entry of that fact is made in the -proper column. The Cash Book.^— There are two methods of making entries in the Cash Book. One is to have its pages ruled for two sets of figures, the left-hand column being used for receipts of cash, and the right- hand column for payments of cash. The other method, which is safer and more commonly used, is pursued by using the opposite pages, the left-hand page being used in place of the left-hand column in the first method and the right-hand page being used in place of the right- hand column. BUSINESS AND COMMERCE 41 Suppose the following transactions to have been made; — January^ 1901. 1. Commenced business this day, investing as capital $1,000 cash. 2. Bought iron safe for which I paid cash, $100. 3. Bought 20 barrels of flour at $4 per bbh, for which I paid cash, $80. 4. Bought a horse and wagon for which I paid cash, $100 and $75 respectively. Sold, for cash, 4 barrels of flour at $7 per bbh, $28. 6. Sold, for cash, 2 barrels of flour at $7 per bbh, $14. 7. Bought, for cash, 100 bushels of oats at 50 cents per bushel, $50. 8. Sold, for cash, 25 bushels of oats at 60 cents per bushel, $15. 9. Bought, for cash, 200 pounds of Java coffee at 20 cents per pound, $40. 10. Bought, for cash, 50 pounds of Oolong tea at 50 cents per pound, $25. 11. Sold, for cash, 10 pounds of coffee at 30 cents per pound, $3. The Cash Book entries covering these transactions should be made as shown by Diagram No. i. Diagram No. i — Cash Book January, 1901 I Investment $1000 5 4 bbls. flour $7 28 6 2 bbls. flour $7 14 8 25 bushels oats .60 15 II 10 lbs. coffee •30 3 2 Safe |ioo 3 20 bbls. flour $4 80 4 Horse 100 4 Wagon 75 7 100 bushels oats •50 50 9 200 tbs. Java coffee .20 40 10 50 lbs. Oolong tea •50 25 The entries for the remainder of the month of January should be made in a similar manner, when the month of February should be started. To balance the Cash Book, add the amounts on the left-hand, or debit, side of it, and enter the total as shown in the illustration. Do the same with the right-hand, or credit, side. If there be an excess of received cash over cash paid out, it will represent the balance on hand, which amount should be entered below the total of the entries on the credit side and a total entered at the bottom of the page, which total will obviously balance the total on the debit side. 42 BUSINESS AND COMMERCE It is customary to balance, or close^ the Cash Book at the end of each day, carrying the balance to the following day. The Journal.— The journal, as previously stated, contains all debits and credits to persons arising from transactions with such persons, with clear explanations of such transactions. The following transactions are represented by the Journal entries shown by Diagram No. 2: — January^ 1901. 1. Commenced business this day with a cash capital of $1,000. 2. Bought of John Smallwood, on account, at 10 days, 50 barrels of flour at $5, $250. 3. Sold Henry J. Miller, on account, at 5 days, 10 barrels of flour at $6, $60. 4. Bought of S. M. Smith, on account, at thirty days, 40 pounds of coffee at 20 cents, $8; and 40 pounds of tea at 50 cents, $20. 8. Credit Henry J. Miller, cash, $60. , Diagram No. 2.— Journal January, 1901. 1. Proprietor Investment. 2. John Smallwood 50 bbls. flour at 3 - Henry J. Miller 10 bbls. flour at 4 - S. M. Smith 40 lbs. coffee at 40 lbs. tea at 8 . Henry J. Miller Ca.sh in full of Cr. |iooo Cr. • $5 250 Dr. $6 60 Cr. .20 8 •50 20 28 Cr. 60 The Ledger.— Posting the Ledger is performed by carrying to that book all of the debits and credits to persons that are contained in the Journal, opening an account with each of such persons by placing the amounts for which he is debited in the left-hand. Dr., side of his account, and the amounts for which he is credited on the right-hand, or Cr., side. BUSINESS AND COMMERCE 43 The proprietor’s name is usually the first that appears in the Journal, hence his account is naturally the first to be opened in the Ledger. Whenever an entry is made in the Ledger the page on which such entry is made in the Journal is shown also, and, similarly,* an entry of the Ledger page is made opposite the corresponding entry in the Journal. These figures operate as a check, showing that the entry in the Journal has been posted to the Ledger. Always check each entry. The entries shown on the sample leaf of the Journal (Diagram No. 2) should appear then, under their proper dates in the Ledger as shown by Diagram No. 3. Diagram JNo. 3.— Dedger Jour- Jour- 1901 nal Proprietor igoi nal Page Page John Smallwood Jan. i Investment i $1,000 2 Mdse. I 250 Henry J. Miller Jan. 3 Mdse. I 60 8 Bal. of acct. I 60 S. M. Smith 4 Mdse. i 28 Note.— Enter only two accounts on each page of the Ledger, one occupying the upper half, and one occupying the lower half. When an account in the Ledger is made to balance by a payment, it should be ruled and footed at once. See ledger account of Henry J. Miller. From the rules and examples given the student should now be able to know immediately in what book or books every transaction should be entered. Suppose a record of the business to have been kept in the manner indicated up to February i, 1901, and that on that date the proprietor desired to know the results of his business operations. As previously stated, the present worth may be ascer¬ tained by finding the differenee between the amount of resources and the amount of liabilities, and the net gain or net loss may be ascer¬ tained by finding the difference between the investment and the present worth. To find the exaet results, therefore, the following di¬ rections should be earefully observed: — First, make an inventory of all stoek and property on hand, esti¬ mating the stock at cost unless there has been a material change in its value since it was purchased. To this result add the amount of 44 BUSINESS AND COMMERCE cash in hand which is obtained by deducting from the amount of cash received, as shown by the debit side of the Cash Book, the amount paid as shown by the credit side of it. To this second total add the net amount of personal accounts in the proprietor’s favor. These items constitute the resources of the business. Next, find the total liabilities of the business which are made up of the personal accounts which the proprietor has to pay. The dif¬ ference between the resources and liabilities will be the present worth of the proprietor’s business, and the net gain or net loss will, as stated, be the difference between the present worth and the original invest¬ ment. This is called a Statement of Resources and Liabilities. It is customary to make a statement of this kind semi-annually or an¬ nually. The period of one month here given is only for the purpose of. illustration. When the proprietor keeps accounts at a bank, a Bank Account should be kept which will be the same as a personal account. Debit the bank with all deposits made and credit it with all checks drawn. There is, however, no necessity of keeping a Ledger account with the bank, as the record of the currency and checks on hand, and the cash in the bank, may all be kept in the Cash Book as though it were all currency. This last observation presupposes a record of checks to be kept in the Cash Book, which is always done. Double Entry. — As before stated, in double entry book-keeping, accounts are kept in the Ledger with things as well as persons. Ev¬ ery kind of property belonging to the business is represented by some account in the Ledger, and every obligation due the proprietor, as well as his obligations to others, is represented by some account. The books usually employed are Cash Book^ Journal^ Ledger^ and Bill Book. Sometimes a Day Book^ Sales Book^ and Bivoice Book are used. Whether the latter books should be used depends upon the nature and extent of the business. The Day Book is seldom used, the entries being made with full explanations in the Cash Book, Journal, and Sales Book. The Cash Book, Journal, Ledger, and Bill Book have already been described in connection with the single entry method. The Sales Book is designed to contain a record of all sales of merchandise. The Invoice Book is for the purpose of keeping a record of all purchases of merchandise. In keeping books by double entry, the following rules of debit and credit should be observed: — The Proprietor is credited with the sum of his resoui^ces at the be¬ ginning of business; with subsequent investments in the business; and with his net gain, if any, when the books are closed. BUSINESS AND COMMERCE 45 The Proprietor is debited with the sum of his liabilities, at the be¬ ginning of business; with such sums as he may draw out of the busi¬ ness from time to time; and with his net loss, if any, when the books are closed. Persons are debited when they become indebted to the proprietor; and when the proprietor gets out of their debt, in whole or in part. Persons are credited when the proprietor gets into their debt; and when they get out of the proprietor’s debt, in whole or in part. Cash is debited when it is received into the business from any source. Cash is credited when it is paid out for any purpose. Bills Receivable are debited with all negotiable written obligations of other persons when they are received. Bills Receivable are credited with all negotiable written obligations of other persons when they are paid or otherwise disposed of. Bills Payable are credited with all negotiable written obligations of the proprietor when issued. Bills Payable are debited with all negotiable written obligations of the proprieter when they are paid or otherwise canceled. Merchandise is debited with the cost of all merchandise purchased. Merchandise is credited with the proceeds of all sales of merchandise. Expense is debited with all expenses of the business; as, clerk hire, fuel, light, feed, and miscellaneous expenses. Expense is credited when anything of value is disposed of, which was previously debited to expense. Interest is debited when interest or discount is allowed to others. Interest is credited when interest or discount is allowed to the pro¬ prietor. Suppose a business to have been started on January i, 1901, and transactions to have been made during the first few days of the month as follows: — January^ 1901. 1. Commenced business this day with a cash capital of $3,000. 2. Bought a horse and wagon for use of the business for which I paid cash, $200. 3. Bought of John Simms, for cash, 100 bbls. of flour at $5, $500. 4. Bought,of Chas. Smith, on account, at 30 days, 100 pounds of coffee at 20 cents, $20. 5. Sold to J. R. Smallwood, for cash, 5 bbls. of flour at $6, $30. 6. Sold to J. T. Anderson, on account, at 30 days, 10 pounds of coffee at 30 cents, $3. 4?) BUSINESS AND COMMERCE Such transactions should be shown in the Journal as indicated by Diagram No. 5. Diagram No. 5.— Journal (Double Entry) January i, 1901 Commenced a general pro¬ duce business with a cash cap¬ ital of $3000. Cash Investment I3000 To Proprietor $3000 2. Expense Horse & Wagon 200 To Cash 200 3 - Mdse. 100 bbls. flour at $s 500 To Cash bought of John Simms « 500 4. Mdse. 100 lbs. coffee at .20 20 To Chas. Smith at 30 days 1 20 5 - Cash 5 bbls. flour at $6 30 To Mdse. Sold J. R. Small¬ wood 30 6. J. T. Anderson 10 lbs- coffee at .30 3 t To Mdse. at 30 days 3 From the rules for debit and credit above given it will be seen that instead of only one posting being required for each Journal entry, as in the Single Entry method, two postings are necessary in every case, and sometimes three. Thus, in posting Journal entry No. 2, Expense is debited $200 and Cash credited with the same amount. Suppose the history of a transaction to be that on Jan. 21, 1901, John Steady proposes to pay his note of $157.50, due Feb. 8, providing the proprietor will allow him discount (amounting to 47 cents) on the amount for the time the note has yet to run; which proposition is accepted: Cash should be debited. Bills Receivable $157.03; Interest should be debited, Bills Receivable $.47; and Bills Receivable should be credited, Sundries $157.50. Stmdries here means two debits, thus saving the entry of one credit in the Bills Receivable Account. The Ledger entries covering the Journal entries in Diagram No. 4, would, therefore, appear as in Diagram No. 5. In observing Dia¬ grams Nos. 4 and 5 reference should be made to the rules for debit BUSINESS AND COMMERCE 47 and credit, so that the student may see which one is applicable in each case. Diagram No. 6. — Ledger (Double Entry) 1 19^1 1 • Jour¬ nal Page Proprietor 1901 Jour¬ nal Page Cash Jan. I I |i,ooo Jan. I Proprietor I $1,000 2 Expense I 200 5 Mdse. I 30 3 Mdse. 1 500 Expense 2 Cash I 200 Mdse. 3 Cash I 500 5 Cash 30 4 Chas. Smith I 20 6 J.T.White&Co. I 3 Chas. Smith 4 Mdse. I 20 J. T. Anderson 6 Mdse. • I 3 Note.—E nter only two accounts on each page of the Eedger, one occupying the upper half and one occupying the lower half. The Cash Book does not differ from that in Single Entry. The Trial Balance The Trial Balance is a test employed to determine whether the Ledger is in balance, or whether the sum of all the debits is equal to the sum of all the credits. Add your Ledger accounts, making the totals with lead pencil so that they rnay be erased after they have served their purpose. Transfer to your Trial Balance book from the Ledger the names and footings of the accounts in which the footing of the debit column is not equal to the footing of the credit column, placing the debit footings in the left-hand column and the credit footings in the right-hand column. Add each column, and if their footings are the same your Ledger is in balance. If the footings do not agree, there is an error somewhere, which must be located. To do this the following rules will be found effective: — 1. Make sure that the columns of the trial balance are correctly added. # 2. Test the footings of the accounts in the Ledger. 3. Find out whether the footings are transferred correctly to the balance sheet. 4. Add the columns of the Journal to see if the Journal is in balance. 5. Examine each Journal entry by itself, and also the posting of it, checking both the Journal and the Ledger with a mark (\). 48 BUSINESS AND COMMERCE 6. Look through the Ledger for unchecked entries, and when one is found search for the cause of its appearance. It will not, perhaps, be necessary to resort to all these rules; but until the error is located the foregoing should be applied in the order given. The net gain or net loss of the business may be ascertained by exactly the same process as in Single Entry. This operation may be proved by making a statement of resources and liabilities which is also done as in Single Entry. Changing from Single Entry to Double Entry. — In order to change from Single to Double Entry it is necessary to open an account for every resource and liability, except those connected with personal accounts, these being already represented. The balances representing these resources and liabilities should be entered on the proper side in these new accounts, and the net gain or net loss transferred to the proprietor’s account, after which, if the work be correct, the Ledger will be in balance. It is customary to close the Ledger, but it is not really necessary to do so, as the balances can all be found without closing the books. Of course they must be closed, if a new set of books is to be used after the change. Petty Cash Book .— In this book are entered the small sums of cash received or paid out. At the close of each day it is balanced, and the amount representing the difference between the Dr. and the Cr, sides is transferred to the main Cash Book. The object of this is to save space in the main book. Petty Ledger .— When persons are not likely to do much business on credit, it will be found convenient to open accounts with them in this book. Care must be taken, however, not to open two accounts, one in the Ledger and one in the Petty Ledger, with any person, as confusion would result. The indexing, therefore, should be promptly attended to. Sundry Debtors' Accoimt .— This account is sometimes kept when transactions are had with persons who are likely to purchase but little. The object of it is to save space in the Ledger. If such persons buy on credit oftener than once, an account should be opened with them in the regular way, and their entry in the Sundry Debtors’ Account should be closed into the new account. \ Transferring Accounts from an Old Ledger to a New One When a Ledger is filled and it becomes necessary to transfer the accounts from it to a new one, the following course should be adopted:— BUSINESS AND COMMERCE 49 1. See that the old Ledger is in balance. 2. Mark the old one Ledger Aand the new one, Ledger 3. Close the first account in' Ledger A By (or To) Balance to Ledger B,^^ making the entry in red ink. • 4. Open a new account in Ledger B, having the same heading as the one just closed, and make the entry ^^To (or By) Balance from Ledger A in black ink. 5. Index the account as soon as opened, and indicate in each Ledger the page of the other on which it appears. 6. Treat all the accounts in a similar manner. Information Necessary for Intelligent Book-Keeping Bank Checks .— A check is an order for money, drawn by one who has funds in the bank, payable on demand. It is practically the same as a sight draft. Exercise the utmost care in drawing checks and all forms of commercial paper. A carelessly drawn check may be raised^ that is, it may be made to read for a larger amount than that for which it was originally drawn, by a dishonest holder. The bank cannot be held responsible for carelessness of this character. Identification .— It is the rule in this country not to cash a check that is drawn payable to order unless the person presenting the check is known at the bank. It should be remembered, however, that a check drawn to order and then endorsed in blank by the payee, is really payable to bearer, and all that is necessary in order to get it cashed is that the bank be satisfied of the genuineness of the endorsement. When checks are to be deposited, the words For Deposit should be written above the endorsement. When so endorsed, the bank will refuse to cash them, which operates as a safeguard in case they are lost or stolen. In drawing money from the business account for use in the business, the check should be written Pay to the order of Cash. This differs from a check drawn to Bearer. The paying teller will not then cash the check unless presented by the proprietor or some one well known as the latter’s representative. If the check is drawn payable to the proprietor he will be required to endorse it before it will be cashed. If you wish to draw a check to pay a note, write Pay to the order of Bills Payable ; if for money for wages, write Pay to the order of Pay Roll ; if to pay for a draft which you are buying, write Pay to the order of N. Y. Draft and Exchange^^; or whatever the circurnstances may call for. 13—4 50 BUSINESS AND COMMERCE If it is desired to stop the payment of a check which has been issued, notify the bank at once, giving a full description of the check. Checks should be numbered so that each can be readily accounted for. It is important that the check book be correctly kept, so that the exact amount of money in the bank may be ascertained at any time. Bank Drafts. — A bank draft is the bank’s check, drawing on its deposit with some other bank. Banks sell these drafts to their cuD'- tomers. Merchants make frequent use of them in making remittances from one part of the country to another. They pass as cash any¬ where within a reasonable distance from the money center upon which they are drawn. A draft on a foreign bank is usually called a Bill of Exchange. They are, as a rule, drawn in duplicate, one of which is forwarded and the other retained, and are so worded that when the original is paid the duplicate becomes void. Promissory Notes. — A promissory note is a written promise to pay a certain sum of money. At the time of making the note there are two parties: the maker and the payee. The maker is the person who signs the note, and the payee is the person to whom, or to whose order, the note is made payable. Negotiable means transferable.^ and, therefore, a negotiable note is one that can be transferred from one person to another. To be negotiable, a note must contain the word order or the word bearer^ that is, it must be made payable to bearer or to the order of the payee. A non-negotiable note is payable to a particular person only; but notes of this character are not frequently accepted for the reason that they possess none of the attributes of currency, differing in this respect from negotiable paper. The date of a note is a very important item, and great care should be exercised in writing it. A note made on Sunday is generally con¬ sidered void, but this is not strictly correct. If made and issued on Sunday it is void, but if made on Sunday and issued on any other day, it is legal. Issue means delivery. The words value received are usually inserted in a note but they are not legally necessary. A promise to pay anything but money is not a note; it is simply a form of contract. A note does not draw interest until after maturity unless the words with interest appear on its face. After maturity it draws interest at the legal rate until paid. An endorser of a note is any person who writes his name on the back of it, thereby guaranteeing its payment. Notes are usually en¬ dorsed in blank, which leaves the receiver free to endorse it or not BUSINESS AND COMMERCE 51 at his pleasure if he wishes to transfer it. The endorser is liable for its payment if the maker fails to meet it. If the endorser desires to escape this liability he should write above his signature the words without recourse. A note should be presented for payment on the exact date of ma¬ turity and at the bank or place where it is made payable. In finding the date of maturity, remember that when a note is drawn payable so many days after date^ the actual number of days must be counted; and when drawn payable so ma 7 iy months after date, the time is i;eck- oned in calendar months. If a payment is made on a note, such payment should be endorsed on the back of the note, with the date. It is unnecessary to affix any signature to the entry. Drafts .— It is quite a common practice to collect debts by draft. When the messenger from a bank presents a sight draft he is not authorized to accept a check in payment, but the person upon v/hom the draft is drawn may, if he chooses, write across the face of the draft, Accepted June —, 190-, payable at Second National Bank,^^ and sign his name. Such a draft is then practically converted into a check, and the particulars must be entered in the check book in the same manner as if an actual check had been issued. Discounting .— It sometimes happens that drafts are discounted be¬ fore they are accepted. If a merchant has accounts out and desires immediate capital, he draws on his customers and sells his drafts to a bank, either directly or through a broker. Notes may be discounted as well as drafts. The rates of discount vary according to the paper offered and the state of the money mar¬ ket. The rates usually run from 4 to 8 per cent, per annum. Having made your statement of liabilities and resources, you should now make your Ledger show the proprietor’s real present interest in the business. In the proprietor’s account, place on the credit side, in black ink, the net gain. If there has been a loss the amount of such loss should, by force of the rules for debit and credit, be shown on the debit side. The date on which you close the account should be shown opposite such entries. The difference between the sides of your account will now show the proprietor’s present worth, as shown by your statement of resources and liabilities. On the opposite side of the account you will now write in red ink the date of closing and Present Worth, ^- f and foot up both sides of the account. Under these footings rule two lines in red ink, next transfer the amount of Present Worth to the credit side of the account in black ink, dating the entry the day after that on which you close the account, as that amount will be your capital at the 52 BUSINESS AND COMMERCE commencement of the new account. Your Ledger will then show the proprietor’s interest in the business. The Ledger should now be closed by finding the difference between the two sides of each account in that book. Add each difference to the smaller side of the account, showing the date of closing. To Balance, foot up both sides of the account. The totals will, of course, agree. Make the entries, rulings, and footings in red ink. To open the proprietor’s new account in the Ledger, bring forward the amount of Present Worth as Investment. The date of this entry will be the day on which the new account is commenced. To open the other accounts, bring forward the balance in black ink, entering them as Balance under the date of the new account on the proper side of the page. Let us now proceed to close the Ledger account. Make the Ledger account as indicated by Diagram No. 3, show the proprietor’s present worth and close the Ledger accounts preparatory to the com¬ mencement of a new set of accounts. Suppose it to have been ascertained that the present worth is $1,050 00, and the net gain $50.00. The closed Ledger should appear as in Diagram No. 4: — Diagram No. 4 —Closed Dedger 1901 ' PROPRIETOR 1901 Jan. 12 Present Worth $1050 Jan. I Investment 1 $1000 , 1050 Jan. 12 Net Gain 50 1050 John Smallwood Jan. 13 Present Worth 1050 Jan. 12 By Balance 250 2 Mdse. I 250 Henry J. Miller Jan. 3 Mdse. I 60 8 Bal. of Acct. I 60 S. M. Smith Jan. 12 By Balance 28 4 Mdse. I 28 To close the Double Entry Ledger, first, enter the amount of the inventory on the credit side of the merchandise account as Inven¬ tory,^^ showing the date of closing in red ink. Next, find the differ¬ ence between the two sides of the account, entering the amount of each difference also in red ink, on the smaller side of the account as ” Loss or Gain.^^ If the total of the credit side be larger than the debit side, the difference will obviously be a gain. If the total of the debit side BUSINESS AND COMMERCE 53 exceeds that of the credit side, the difference will be a loss. Now foot up both sides of the account, making the rulings and figures in red ink. Second, open an account with Loss and Gain one-fourth of a page below the Interest account. Transfer to the Loss and Gain account in black ink the amount of loss or gain, as shown in the Mer¬ chandise account with date of closing, placing the amount on the proper side of the account, i. to the debit side if a loss; to the credit side if a gain. Third, refer to the Interest account and ascertain whether it shows loss or gain, and how much, by comparing the totals of the two sides of the account. Balance the account by entering on the smaller side in red ink this difference, showing it ^^Loss^^ or ^^Gain,^^ as the case may be. Now transfer in red ink the loss or gain, as shown by the interest account, to the proper side of the Loss and Gain account, showing it as Interest. The Loss and Gain account now contains all of the items of gain and loss, and it may now be closed. To do this, compare the totals of both sides of it, and placing the difference on the smaller side in red ink, as Proprietor. If the debit side exceeds that of the credit, the difference is loss; if the credit exceeds the debit side, the dif¬ ference is gain. Now rule and foot up the account in red ink. Fourth, transfer the amount shown by the Loss and Gain account as Proprietor in black ink to the proprietor’s account, debit if loss, credit if gain. Fifth, close the proprietor’s account. To do this, enter in red ink the amount of Present Worth, excess of resources over liabilities and the amount of the loss or gain in his account, and bring down the totals of both sides in red ink. Enter in black ink the amount of Present Worth below the red ink footings on the credit side, showing the date as that on which you are to start the new account. Sixth, close the other accounts in the Ledger the same as in single entries. This completes the closing of the Ledger. Supposing the present worth to be $2,012.50, net gain $1,812.50, inventory $1,499.50, interest, loss $50.00. 'The closed Ledger page should appear in Diagram No. 7. To open the new Ledger, bring forward in black ink the entries in all of the accounts in the old Ledger, except the Loss and Gain account. Date the entries in the new Ledger the day on which the new account is opened. To ascertain the amount of discount on a time draft, first find its present worth. To do this, it is only necessary to divide the face 54 BUSINESS AND COMMERCE value of the draft by the amount of $i at the given rate and time. The difference between the present worth and the face of the draft will be the discount. Thus, if a draft for $750.00, due in 4 months, is discounted at the rate of 6%, the amount of the discount will be; $750.00 divided by $1.02 ($1.00 and interest at 6% for 4 mos.) =$735.29 (present worth). $750.00 — $735.29 =$14.71 or the amount of discount. This is called true discount, but the custom among business men is to use what is called Business discount, that is, simply the interest on the face of the draft taken in advance. Thus, if a draft for $106. oc, due in one year, is discounted when money is worth 6% per annum, the discount will be 6% of $106.00 = $6.36, which deducted from the face of the draft leaves $99.64, the present worth or the amount for which the draft is to be sold. This principle also applies to non¬ interest bearing promissory notes. If an interest bearing promissory note is discounted, the present holder is simply paid the face value and the interest to and including the day of discount. Diagram No. 7 — Closed Dedger I9CI Proprietor 1901 Jan. 31 Present Worth $2012.50 Jan. I 31 Net Gain I $1000 1012.50 2012.50 20T3.50 Feb. I Present Worth 2012.50 2 Cash I Expense 200 Jan. 31 Inventory 200 Jan. 3 ■ 4 31 Cash CJias. Smith Gain I I Mdse. 500 20 1012.50 Jan. 5 6 31 Cash J. T. White & Co. Inventory I 30 3 1499.50 1532-50 Interest 1532.50 Jan. 21 Bills Receivable I •50 Jan. 31 Eoss •50 Eoss and Gain Jan. Jan. 31 31 Interest Proprietor .50 1012 Jan. 31 Mdse. 1012.50 1012.50 Bottomry Bond. —mortgage given on the hull of a vessel to secure payment of money raised in a foreign country in times of emergency. Broker.— An agent or factor employed on commission or fee to buy or sell commodities. ; Brokerage. — Commission charged by a broker. BUSINESS AND COMMERCE 55 Building and Loan Associations. — First devised and organized in England, early in the 19th cent'iry. Their purpose is to enable per¬ sons of small means to secure homes, and at stated intervals to put aside fixed sums to make the investment safe and profitable. For¬ merly the home-building or home-buying fund was derived wholly from the periodical payments of members (shareholders). Now prepaid, full paid, and permanent shares are sold by the associations, payable in full in advance or by installments as the subscribers may elect. Special deposits in any amount may be made, and shares partly paid are raised to their par value by adding to payments made, the divi¬ dends apportioned to such payments. Special deposits may usually be withdrawn by the depositor at will, but installment and prepaid shares must remain in until they reach par value. Full paid shares must remain in a certain time and permanent shares until the corpo¬ ration dissolves. The first association in the U. S. was the Oxford Provident Building Association, founded at Frankford, Pa., in 1831. Now this country has more than 6,000 such organizations, with assets exceeding $650,000,000. Bull. — A term applied in the stock market to one who buys with the expectation of an advance in prices. Bullion. — Gold and silver uncoined. Bursar.— Treasurer or cashier of a college or other institution. 56 TRAINING YOUNG MEN FOR BUSINESS By C. C. GAINES President of the Eastman Business College I N THESE early years of the twentieth century, the para¬ mount interest is business. The enormous aggrega¬ tions of capital engaged in trade and commerce, in manufacturing and transportation, have given a new meaning to the word The business men of the day are the rulers of the world. The men whose names are on all tongues, and in whose deeds all continents are con¬ cerned, are the men of millions. To the average young man, the names most familiar are those of John D. Rocke¬ feller, Andrew Carnegie, John Wanamaker, Marshall Field, and others, once poor boys, but now prominent through great achievements in business. Are leaders like these produced by training ? If so, what is the process ? Is it possible to discover, the formula, to enunciate the set of rules, by which genius in business is developed ? I fear not. Preeminent men are blessed with exceptional gifts. They arise out of that mysterious combination of innate faculty, force, and opportunity which are always coefficient in the making of a great man. But the problem before us does not concern genius. It is what to do for the average American boy,— the boy who in the near future will begin life; whose economic activity will be business, and who would seek through training to become an able man of affairs. I want what I may say to help this boy to become a better man; to enable him to render better service, and to inspire him to a higher view of the vocation to which he is called. I shall confine myself to his character, his habits, his qualifications, and his opportunity. The most important part of training is man-building, the greatest work in the world. The bed-rock on which to build the business man is character. What is character? It is the work of many unseen influences; heredity is its seed, environment its soil, and will force its secret. BUSINESS AND COMMERCE 57 % Character grows. It does not spring, like Minerva, full-panoplied; no, not even in those who are born again; but day by day, here a little, there a little, grows and strengthens for good or bad. Good intentions and good principles may both be unheeded, and go to atrophy and decay; or they may grow into that superb discretion which gives masterly control of all wrong impulses, that splendid moral potency which neither temp¬ tation can weaken, nor disaster destroy. Disraeli remarks: The youth who does not look up will look down, and the spirit which does not soar is destined to grovel. The future holds blessings for the young man who goes into business with the ambition to deserve the respect and esteem of the wise and good; who appreciates the value of loyalty, purity, honesty, and truth — the un¬ stained shield. But the boy who believes that success depends on sharp¬ ness and chicanery; that the ability to get the best of the bargain, no matter by what deception and meanness, is business — is sure, sooner or later, to discover that he is the victim of his own treachery. All expe¬ rience goes to show that no enduring success in business can be achieved through dishonesty; and that no matter what the talents and energies, no matter how liberal, polished, and profound the education,— these are of little value unless accompanied by personal integrity. May character be inculcated? Not in perfection, perhaps; yet, with proper training, everything is in favor of giving the average young man good character. But his heart must be educated not less than his head. If as much attention is not given to his conscience as to his mind, the knowledge we may give him, no matter what the branches of study, will be just as apt to polish a cunning scoundrel as to perfect a Christian gentleman. To this end we want better schools, rather than more schools, and higher instruction, rather than the higher education. Above all, we want better training, more knowledge of the moral law, more restraint by and obedience to parents, more self-control, more thorough discipline, early begun, and never relaxed, on the great doctrine of will-force as the secret of character. God gives the opportunity; man's free-will makes the choice. It was Solomon who prayed: ^^Give, therefore, thy servant an understanding heart, that I may discern between good and bad.^^ Every day of his life, again and again, man must decide between true good and what is ®only evil continually.^^ This conflict he must face in every environment,— domestic, social, political, business. With persist¬ ency of purpose, with patient and skilful labor, he must pluck out the weeds, and plant good seed, or nettles and thistles will take root and grow, to bring thorns for his feet and stings for his hands. It is for you to determine what your habits shall be; whether you shall rise when the time comes for leaving your bed; whether you shall BUSINESS AND COMMERCE 58 be promptly in place at meals; whether you shall eat only wholesome food; whether you shall study, or hate your books; whether you shall get an education, and be known as a cultured gentleman; whether you shall be polite and appreciative or the opposite; whether you shall work with energy and enthusiasm, ^^with a will,^^ or be lazy; whether you shall read the best books, or those which corrupt good taste; whether you shall select good companions and elevating associations, or those which are degrading; whether you shall speak kindly, truly, distinctly, correctly,— or roughly, profanely, and with foul words; whether you shall spend your leisure in exercise, reading, wholesome amusement, and recreation, or in loafing around the street corners and saloons, in card playing and telling filthy stories; whether you shall pay cash, or run in debt; whether you shall keep good hours, and preserve your physical health and vigor, or waste your energies in late hours and dissipation; whether you shall meet temptation, and master it; whether you shall smoke a cigarette, or never touch tobacco; whether you shall shun intemperance, as you would a contagious disease, or take the first drink; whether you shall purify your thoughts, or have a mind full of evil imaginings, unclean sights, and lascivious pictures; whether you shall ‘be brave enough to set a good example, and to refuse to follow a bad example; whether you shall support the right, and be an aggressive force for good, or throw away your manhood and make your life worse than a failure. You maybe what you will; what is good, or what is bad. But be careful. Your reputation; your position socially, your standing and success as a business man, your health of mind and body, your happiness, your character, your destiny—will all be determined finally and forever by the habits you are now forming, of thought, of speech, of action. If I were a boy,^^ says Bishop Vincent, I should want father and mother, older brother and sister, pastor and teacher, neighbor and best friend, books and periodicals, to say and resay, and to say it over again, as birds sing their songs, and as waves roll on the worn beach: ^ You are not a thing,— a stick, a stone, a lump of clay or putty, — but a person, — a power, a creator; not so much an effect as a cause; not to be led by a whim, but to be ruled by a will.^ Classes for spelling and word learning, for reading and writing, for handling figures and drawing geometrical lines, are good, but the best class to be earliest organized and longest sustained, the class in which a two-year-old should be an advanced pupil, the class that never graduates, — is the class in which a boy is trained to say: ^ I ought, I can, I will; and what I am, in the long run, in the final outcome, I am to make myself. ^ The primary training prescribed for all young people should never lose sight of the fact that it is impossible, whatever the individual func- BUSINESS AND COMMERCE 59 tion in life, for them to escape business relations. Man living In a state of society is, by nature, a commercial being, a creature of exchanges. He cannot get without giving. His duty is not to himself alone, but to neighbors, to country, to God. He should be able, not only to under* stand, but to discharge acceptably, the duties arising out of these several relations; and for his own comfort, if from no higher motive, he should be given such a course of instruction and practice as will fit him for the proper conduct of his own affairs. I conceive that the training of all children, to a certain point, should be uniform. I would measure that training by this standard; what is it the boy most needs to be and to know, in order that he may act with dis¬ cretion and wisdom in meeting his various responsibilities as a man ? The first essential of education is to know something; the second, to know the most of that which one most needs to know. How to work is the thing the boy most needs to know who has his way to make in the business world. Labor omnia vincit,^^ and no busi¬ ness man may expect to conquer without it. In my twenty years’ ex¬ perience as principal of a business school, I have found only those young men impossible — I may even say hopeless — who could not be induced to work. The business men who succeed do so by unceasing application. Ask any man the secret, no matter in what activity, and he will answer: It is toil, grit, endurance; not simply ambition, but sustained ambition; not only aspiration, but perspiration.® When¬ ever I hear a young man praised as giving unusual promise, as a man of genius,® says Ruskin, I always ask just one question. Does he work ?® Dr. Edward Everett Hale once told me that his father was so bent on teaching his children to employ their leisure profitably, that he made it a rule to arrange every day some useful work to occupy part of their time. Of hardly less significance is concentration, or patient industry—the power of drudging, hour after hour, and day after day, until the work in hand, whatever it may be, is done. Be it sweeping the store, or ex¬ tending and adding columns of figures, or planning the season’s pur¬ chases, or writing advertisements, or selling goods,—handwork or head work,—the business man must be so trained that he is able and willing to do it, if need be. The successful man not only thinks; he acts. He does things. His secret is in his plans, it is true; but it is hardly less in the promptness and]efficiency with which he executes them. Ability, or the power of doing well the thing to be done, comes next. The successful manager must take pride in his work, and be clearly mas¬ ter of every detail, small and great. The most satisfactory means of acquiring this mastery is by actual experience. To this end, the mer¬ chant should have early contact with the business he is to follow; the 6 o BUSINESS AND COMMERCE younger he begins to trade, the more likely he is to love it. No man may expect to prosper who does not have a taste for his business, a gen¬ uine appetite for its most commonplace transactions. If these seem to him arduous, unpleasant or trifling, he had better devote his energies to some other vocation. One cannot succeed eminently in what one de¬ spises. The late A. T. Stewart never lost his eagerness for his business, and is said to have taken as much pains, and as evident pleasure, in wait¬ ing on a customer during the latter part of his life as when he began business. It should be added that his customers were never better pleased than when he served them, whether they knew who he was or not. I have thus far said little of what training should be given at school. The business man should have the best education the time and means at his disposal make possible, but should never be permitted to lose sight of the calling to which he is to be devoted. The contact-experience, suggested above, should not be permitted to take the boy from school, but should be given on Saturdays and during vacations, in the time not required for study. The merchant of fifty years ago believed that business could not be learned by educational processes. So the school which proposed to teach business was looked upon with suspicion. It advertised to do the im¬ possible. The tricks of trade had to be taught in the shop or in the counting-room, under a system of apprenticeship. The merchant re¬ ceived the boy into his family, and made him the trusted companion of his life and labors. It was the same in that day in all trades. But con¬ ditions are changed. The volume of business now transacted, and the methods in vogue in offices, stores, and factories make it impossible for the business man of to-day to afford time for the general training of his clerks and assistants. The shop is the place where training must be used rather than sought. Thus, in many occupations, it has become necessary to substitute practical training in the schools for the teaching formerly given through experience. Until very recently our general scheme of education in America, ex¬ cept in proprietary business schools, made no provision for specialization in this direction. The same condition prevailed in England. On the Continent, especially in Germany, Austria, and France, public attention has for many years been wisely drawn to the importance of commercial education, and courses of instruction, admirably systematized, have been arranged for their higher schools. In the present keen struggle for trade, place, and position, the work done by these schools has so clearly demonstrated its advantages to the commerce of the country, and to the students themselves, that educators, both in England and America, have been induced to provide adequate systems of training for pupils of all ages; for those who would begin as office boys and clerks at from BUSINESS ANt) COMMERCE 6 i fourteen to sixteen, and for college and university men of from twenty to twenty-five, who wish to be prepared for higher functions than merely clerical service or trading behind the counter generally entails. In this great work the American business college has been the pio¬ neer. The training given in these schools has, indeed, been narrow, but it has also been thorough and practical. With ninety-five per cent, of the youth of this country, girls and boys, the question is not so much how to live, as how to make an honest living. The commercial schools solve this problem by affording the shortest road to business employments. A few of the schools give excellent courses of public lectures by men of note, a sort of chair of entertainment and inspiration. The aim is to give the qualifications sought by business men in an assistant prop¬ erly equipped. These are really accomplishments, and not scholarly attainments, and, for this reason, I fear, they have received too little at¬ tention at the hands of educators who rather despise what they conceive to be utilitarian. But the present generation is persuaded that ability is of not less im¬ portance than erudition. ‘Gradually, the world is learning the necessity for skilled, trained work in everything from the lowest to the most intel¬ lectual vocations. The business school owes its existence to this fact, and will continue to occupy itself largely, if not exclusively, with utili¬ tarian purposes. It believes in holding definitely to its training, and in drilling incessantly toward the realization of practical results. Its work is not as well done by any other type of school, high or low. That the accomplishments it imparts are of prime necessity to good clerical effi¬ ciency the business men themselves bear witness. Mr. Robert Ogden, manager of Wanamaker’s New York store, said in a recent address to teachers that through errors from bad writing, alone, their business was losing more than twenty thousand dollars a year. In appreciation of the value of this work, the University of New York, through its Board of Regents, extended recognition to the more worthy proprietary business schools of this state about five years ago, by offering to register such as were found on inspection to maintain sat¬ isfactory standards, and to have facilities for preparing students to take examinations for state certificates and diplomas. The movement has . not accomplished all that was hoped for it, except in the direction of awakening interest. It will finally result in elevating the standards of the commercial schools all over the United States, and in establishing in other schools professional training for our great captains of commerce. Already, Commercial High Schools are being organized in all our chief cities; and the University of the City of New York has established a School of Commerce, Accounts, and Finance, in which to give more extensive advantages to public accountants and business men generally. 62 BUSINESS AND COMMERCE Similar schools have also been opened in the Universities of Pennsylva¬ nia, Chicago, Wisconsin, and California, and one is being organized by Columbia. The rapid development of business life among us, and the wide diffusion of\ wealth, require that our colleges and universities shall afford the best education for the young business man of the future, by whom is to be administered the largest trusts and responsibilities in which private capital has ever been employed. The opportunity is to the young man who will qualify himself. Said Hamilton W. Mabie in an address to my students: — This is the age of the trained man and the trained woman. That is the thing I want to write on your hearts. There was a time in this eoun- try when opportunities were so great, and there was so mueh to be done, that any man or any woman who had a^ good heart and a good character, and a strong arm, might achieve a certain degree of success. I am not saying that that time is entirely passed. I hope it will be long before it is entirely passed. But this I am saying to you, that if I were a young man or a young woman going out into the world to-day, I should not dare to go, unless I had given myself every possible educational opportunity; unless I had made myself absolutely master of the thing I wanted to do. I tell you to-day that the tragedy of modern life is the tragedy of the half-educated man or woman; it is the tragedy of the man or woman who wants to do something and cannot do anything well.^^ Our trade, both domestic and international, is growing more complex. Its transactions are larger, but keener competition reduces the percent¬ age of profits, and makes it necessary for the successful merchant to know more than he ever knew, if he would not be at a disadvantage in the general struggle. The nation whose resources in agriculture, in mining, in manufactures, in commerce, enable it to feed and clothe the world, needs merchants of the highest intelligence, financiers of wisdom, alert, inventive, and enterprising organizers. Recognizing this as their opportunity, all the universities of the country will, in the near future, provide for the higher scientific training of our merchants and business men. Such training alone will qualify young business men to work with the foresight and certainty which are rendered necessary by our social and commercial relations. Already these schools, in their technological departments, are training men of science for our laboratories, mines, electrical and railway plants. What they have done in this field accounts, in a large measure, for the tremen¬ dous advances we have made during the last fifty years in all things material. They may, with equal promise, undertake to train the sons of our famous business men of to-day to be worthy successors of their sires; to give to our business interests leaders fitted both to live and to make a living. BUSINESS AND COMMERCE 63 Nor will the course of study they give be open to the charge super¬ ficial and narrow. It will include every branch of knowledge that^ bears in any way on the practical side of a business life, or that leads to larger comprehension of his duty as a citizen of this great country. Our future merchant will be taught, not only arithmetic, bookkeeping, correspondence, and other things that make him efficient for clerical service, but the sciences, natural and philosophical; the economics, political and social; the principles of government and institutes of law, commercial, statute, constitutional, and international; besides English, the modern foreign languages, as German, French, and Spanish,—all, but especially the last, of growing importance in the United States. He will also be taught how to establish and conduct a business; the uses of credit; the rules of commercial and industrial action and administration; the art of public address; the methods of financing and organizing cor¬ porations ; the means of transportation and communication by land and water; as to industrial combinations of capital, labor unions, etc.; the duties of employers and employees; about raw materials, commercial products, general cost and selling price, markets, tariffs, and every other matter which goes to fully equip the future leader in the field in which he is to be active. There is a fine future before the young business man, if he will only fit himself to occupy his place. Already the United States Senate is referred to as the millionaires’ club. A recent English Cabinet contained directors in not less than sixty-four companies. The business man is the power behind the throne. He controls the sinews of war, and the des¬ tinies of empires are in his hands. He is the modern Joseph to the Pha¬ raohs of the twentieth century. He is the king-maker, if not the king. ARE THE CHANCES FOR YOUNG MEN LESS TO-DAY? OPINIONS OF CHARLES R. FLINT, RUSSELL SAGE, GEN FRANCIS V. GREENE, JAMES B. DILL, AND OTHERS C ONTEMPORARY history is filled with inspiring stories of fortunes won and fame achieved by men who began life poor. Most of these men belong to a generation that is passing away. In the com¬ mercial and industrial realm, conditions have greatly changed since they struggled against poverty and hardship. Great corporations known as 64 BUSINESS AND COMMERCE trusts, and representing vast aggregations of capital, have come into existence and already exercise a dominating influence in many depart¬ ments of trade and manufacture. There is every indication that com¬ binations of this sort will increase. The trend of industrial evolution is certainly in that direction. Of vital interest is the question: How do these new conditions affect opportunities of young men now begin¬ ning the battle of life ? Answers to the question here presented have been obtained from men who are peculiarly qualified to speak with authority on the subject, because their knowledge has been derived from practical experience and observation, rather than from theoretical study. No one has a closer acquaintance with business conditions as they actually exist than has Charles R. Flint, one of New York’s most conspicuous captains of com¬ merce and industry. Mr. Flint says: — Highly developed organizations, resulting in an enormous volume of business, have increased the necessity for intelligence ; and, since the supply of brains is not equal to the demand, the price of brains has risen. The combining of individual enterprises has caused the retire¬ ment of old men to the advisory boards, and has made way for young men for the active posts. In our factories, our mines, our railways, in every field of organized industry, there are ten times as many men receiving $3,000 a year or more as there were thirty years ago. The population of the country certainly has not increased tenfold in that period; this increase in the number of good salaries is prima facie evi¬ dence that there has been an increase in the number of opportunities for men of ability. While economic evolution is centralizing production in large cor¬ porations, decentralization of ownership goes on simultaneously through the rapid distribution of shares. Under the old conditions of private ownership, the control of many of our industrial enterprises would have been inherited by one individual or family. Now the control is subject to the rule that prevails in the administration of our state — the rule of the majority. It is seldom that the heirs of industrial giants have the capacity to succeed to the management of gigantic enterprises. The majority of stockholders — for, generally speaking, the numerical ma¬ jority is also the majority in interest — elect as officers aspiring young men who, through years of application to a particular industry, have proved their ability to assume the responsibilities of leadership. It is not merely in the highest positions that this rule holds good. The rule in every corporate business is to divide responsibilities among men fitted by their training to direct special departments. The head of a single department in a great modern concern has more authority and responsibility than the owner of a private business had twenty-five years BUSINESS AND COMMERCE 65 ago. I know that great industrial concerns are frequently embarrassed because they cannot find men who can command big salaries, and that the directors of our financial institutions are put to it to find trustworthy men capable of handling great undertakings. Russell Sage, who has apparently found the secret of youth as well as of success that leads to ever increasing millions, says: — *^The young man of to-day eertainly has far more opportunities to succeed than existed thirty or forty years ago. The field is broader. New industries are constantly being established. Big en¬ terprises create a demand for men of big brains. The salaries paid are such as in my early days were never dreamed of. Large corpora¬ tions are in the market for talent, and they are bidding more for it than was offered before, beeause they cannot get enough of it.^^ General Francis V. Greene, soldier, engineer, business man, and suc¬ cessful in all three capacities, says: — There are three sorts of men, and for two of these sorts the tendency toward industrial consolidation is a distinct advantage, while for the third there is no salvation in any economic system that has yet been de¬ vised. These three classes are: First, the thoroughly competent, who go to the top and command annual salaries that would once have been for¬ tunes; second, the half competent, who find profitable employment in sub¬ ordinate positions, and are saved from going into business for themselves and failing, as they would have fallen under the old system; third, the ineompetent, who sit on the park benches as they would have done before. In the four years ending June 30, 1900, the exports of the United States were $4,800,000,000. In this same period the imports were $2,900,- 000,000, leaving a balance in our favor of almost $2,000,000,000. This country is so big, and its trade is becoming so vast, that big concerns are needed to handle it. No collection of small manufacturers, without a common purpose except to fight one another, could hope to handle such a business. It requires consolidation, organization, and heads capable of handling armies of men. Thisfis the opportunity of the young man with brains. So far as I know anything about large concerns, they all are looking for good men to take high executive positions. The man who has the advantage of an education in a technical school, and possesses business ability, will be rushed right along to the top. The great com¬ binations can well afford to pay large salaries to men who can manage their expensive machinery and who are trained to high special labor. Every increase in the extent of commercial organization and in the trade of the country widens the range of opportunities. There never has been a time in the history of the world when there were so many chances as there are now for young men. 13-S 66 BUSINESS AND COMMERCE James B. Dill, the corporation lawyer, who finds that the new condi¬ tions contribute very materially to his own success, since he has received a fortune in a single fee, says: — In the great corporate combinations of to-day, individualism of character, individualism of brains and training, individualism of mind, are at a premium. The solution of the corporate problem,^the trend to corporate combination, the tendency to the centralization of control in¬ stead of displacing men, arranges men in their order according to their character and education. United States Senator Dolliver says: — It is evident that the enlarged activity of commerce and industry calls for better training than the simpler methods of the past, and enough is already known to make it sure that, instead of cutting off the chances of success, they have been multiplied in a thousand ways. It is signifi¬ cant that practically all the great fortunes of our time were accumulated by men who started with nothing and worked their way to the front. Whether these estates are in mercantile establishments, in railroads, or in factories, one thing may be set down for certain,— that they require brains to administer them; and every one of them is a bidder for the best administrative talent there is to be found. The truth is that the new industrial conditions have put emphasis on the demand for men of brains and^character, the like of which this world has never before known. It is for the young men of the United States to get ready to meet the conditions of these larger problems. The call is not for all; it is only for those who are prepared. The prepara¬ tion required is not altogether theoretical; it is intensely practical. The man w'ho fully masters the business with which he connects himself, is bound to come to the front. The tendencies of modern business have created an almost un¬ limited number of positions of responsibility which, in the very nature of the case, must be filled from below. Young men without means, and without influential connections, will fill these positions. Within a few years the great merchants of to-day will be dead, and their places will be taken by those connected with the houses who have demonstrated their fitness to become leaders. The railroad officials whose commands now control the commerce of a continent will soon be in their graves, and anxious boards will be looking for their successors. They will pass by even their own children, and go down the pay-roll of the company to find the man who, by his complete grasp of its business, is better qualified than anybody else to manage it. Though men pass from the stage of action, these great business enterprises must go on; and, while they go on, they have a thousand eyes looking for the men intellectually equal to the task of administering their affairs. BUSINESS AND COMMERCE 67 W. A. Nash, President of the New York Corn Exchange Bank, says: — Our country is filling up rapidly, but new avenues of occupation are being constantly opened and opportunities for advancement are far more frequent to-day than when I was a boy. Bankers are on the alert for trustworthy and capable young men. Influence and personal interest may be important in securing a position, but afterward, every man must stand on his own merits. Alfred F. Bolles, Professor of Finance and Political Economy at the University of Pennsylvania, discussing the effects of the tendency to consolidation in the banking business, says: — Manifestly, the prospect for the top places is not so bright as it was a few years ago. But then there are many places of great re¬ sponsibility which demand a high order of ability and whose occu¬ pants are well rewarded. The great banks have more of these places than the smaller, and thus much that is lost to the individual through consolidation is returned, in nearly, if not quite, as high places and salaries as under the old order. President Schurman, of Cornell University, takes this hopeful view of the outlook for the young man ambitious to succeed:— Judging from our experience at Cornell University, there never has been a time when there were so many demands for able and well-trained young men as at present. Perhaps the majority of these applications come from concerns supported by large combinations of capital. As the success of this sort of business depends upon the ability with which its affairs are managed, young men of character and brains are indispensable, and wonderfully high salaries await those who can earn them. I think that the opportunities for young men under the present system of large combinations of capital are greater than ever before in the history of the world. It is a mistake, however, to suppose that small concerns and competitive undertakings have been eliminated by these great com¬ binations. There are now, and always will be, small factories, small stores, and other similar enterprises. Service in some of these may give a young man more varied responsibility and consequently more varied training. But so far as success is concerned, if one measures success by the financial compensation received, I think young men will have better opportunities in the large institutions than in the small ones.^^ Speaking of the engineering profession, Mr. Schurman relates this striking example of the growing demand in its ranks for young men properly trained:— Fifteen years ago, the manufacturers of machinery had to be coaxed to take those pioneers, the Cornell men, into their shops and 68 BUSINESS AND COMMERCE give them a chance. But where one went, many followed. Last spring, when the class of 1900 came to graduation, every student in this branch was eagerly bid for two or three times over. One great electrical firm alone asked to be given the entire class. A writer, discussing the chances of the young man of to-day, says; — During a recent visit to that hive of industry which swarms around Pittsburg, and in the valleys of the Monongahela and Alle¬ gheny, we were impressed with the fact that in most of the great manufacturing establishments, the highest positions of responsibility were filled by men who were yet several years on this side of the prime of life. That such young heads should so often be directing vast industrial concerns, is due in part to the amazing rapidity with which new industries have sprung up during the past decade, and in part to the fact that the keen competition of the age calls for the adaptiveness and energy which are the natural qualities of youth. Time was when there was an overplus, especially in the technical trades and professions, of the supply of qualified young men; but to-day conditions are entirely reversed. Clear proof of this was shown at the recent annual commencement exercises of the Stevens Institute of Technology, Hoboken, when, out of forty graduates, only a dozen were present to receive their diplomas. This unprecedented condition of things was explained by President Morton on the ground that the demand for graduates to fill business positions this year had been the most urgent in the history of the Institute, and that most of the ab¬ sentees had been induced to leave the Institute a week or more before commencement, in order that they might begin their professional duties at once. President Morton further stated that the whole of the forty graduates could have secured positions at once if they had so desired. There is no gainsaying the significance of such facts as these. Some striking examples might be cited of men who have achieved success under existing industrial conditions. One such is Charles M. Schwab, of Pittsburg. Twenty years ago he received as wages a dollar a day, at the Carnegie Works. Now, he receives an enormous salary and is worth several million dollars. Among his subordinates are forty or more who are paid salaries ranging from $15,000 to $50,000 a year. H. H. Vreeland, of the Metropolitan Street Railway Company, is another inspiring type of the man who finds existing conditions an aid rather than an obstacle to success. Twenty years ago he was shoveling gravel on a construction train on the Long Island Railroad. Now, as the execu¬ tive head of a vast street traction service, he is in receipt of a princely income. It is not easy to find men who have themselves succeeded, who take other than a most sanguine view of the opportunities for the brainy BUSINESS AND COMMERCE 69 young man, afforded by the changed industrial conditions that dominate the business world. But it is said that the young man has fewer oppor¬ tunities th^n formerly to set up in business for himself. J. Harry Selz, a member of a large manufacturing and jobbing firm in Chicago, says: — Whenever a manufacturing plant becomes the property of a trust or combination, a change takes place in the spirit of the men, partic¬ ularly of the young ^ men, in its employ. The hope of securing a proprietary interest is gone and with it the ambition it inspires. From the manager to the cheapest laborer, all who are actively identified with the work of the trust, are employees. To be sure, some of them command imposing salaries, but there is no escaping the uninspiring consideration that they are servants and must remain servants, doing the bidding of a ^ board ^—of an impersonal master. There is little in this prospect to fire the ambition of the typical American, who loves personal liberty and independence, and who would prefer to be his own master, and the proprietor of a humble enterprise expressing his own individuality, than to hold a position of large responsibility and limited authority in the service of a combina¬ tion. The answer to this made by men who defend industrial combinations, is that statistics show that only a very few of every hundred who set up in business for themselves escape failure; that being one’s own boss is usudlly by no means an enviable lot, and that, measuring success by dol¬ lars and cents, which is the practical business way of looking at it, the opportunities for achieving it are open to a far greater number to-day than ever before. 70 HOW TO GET A POSITION AND KEEP IT ADVICE OF MARK TWAIN TO A TOUNG MAN— WHAT OTHER SUCCESSFUL MEN SAT A GOOD many years ago, a young stranger, from the West, who was anxious to become a journalist, but was without friends or influence, appealed to Samuel L. Clemens [Mark Twain], to help him to a po¬ sition on some metropolitan newspaper. Mr. Clemens, who had ideas of his own about how to get a situation, re¬ plied as follows: — If you will obey my instructions strictly I will get you a situation on a daily newspaper. You may select the paper yourself: also the city and the state. Back came a grateful answer from the young man, naming the journal of his choice, and promising that whatever his benefactor’s instructions might be, he would obey them to the letter. Then Mr. Clemens wrote in this wise: — Almost any man will give ^mu a situation if you are willing to work for nothing. The salary will follow presently. You will only have to wait a little while and be patient. Therefore,— You are to apply for work at the office'of your choice. You are to go without recommendations. You are not to mention my name, nor any one's but your own. You are to say that you want no pay. All you want is work,— work of any sort. You are so tired of being idle that life is a burden to you. All you want is work and plenty of it. You do not want a penny’s worth of remuneration. You will get the place, whether the man be a gen¬ erous or a selfish one. ^^When you have got it, do not sit around and wait for others to find work for you. Keep watch and find it for yourself. When you cannot find it, invent it. This will rriake you needed friends among the members of the staff. When you see a thing that is worth reporting, go to the office and tell about it. Soon you will be allowed to put such things on paper your¬ self. Thus you will drift by natural and sure degrees into regular reporting, and will find yourself on the city editor’s staff, without any one’s quite knowing how or when you got there. Meantime, though you may have made yourself necessary, possibly even indispensable, you are never to mention wages. You can afford to wait, for that is a matter that will take care of itself. By and by there will be a vacancy on a rival paper. Some reporter of your acquaintance will speak of you, and you will be offered the place at current wages. HERBERT H. VREELAND BUSINESS AND COMMERCE 71 You will report this good fortune to your city editor. He will offer you the same wages, and you will stay where you are. After that, when higher pay is offered you on another paper, you are not to take the place if your original employer is willing to keep you at a like price. The young man, though much surprised at their character, faithfully followed Mr. Clemens’s instructions. He got the situation for which he applied,—that of general utility man,— and within a month was on the city editor’s staff. Before the end of the second month, he was offered a salaried position on another paper. His employers duplicated the offer, and he remained with them. His salary was twice raised by the same process during the next four years. Then he became chief editor of an important daily in the South, and he still holds that position. Five other young men, who subsequently applied to Mr. Clemens for aid, were furnished with the same letter of advice, followed it, and found the posi¬ tions they were seeking. One of the five is now chief leader writer on one of the most widely known and successful daily journals in the world. He has never served but the one employer. The same man pays his large salary to-day who took him, an unknown youth, at nothing and find himself,less than twenty )^ears ago. Herbert H. Vreeland, the president of the Metropolitan Street Rail¬ way Company of New York, delights to tell of how he secured his first situation. He was born a poor man’s son, and his father died when he was a child. Then the widowed mother moved to Jersey City, and the ten-year-old lad set out to find work. For days his search was without avail, but, in the end, a German grocer, touched by his earnestness, gave him a place as chore boy. He did his errands briskly, and was on the alert for something better. He had not long been chore boy when, one day, the driver of the grocer’s wagon had trouble with a horse in front of the store. The driver wanted to go in one direction and the horse in another. The driver resorted to profanity and a whip, and the horse finally refused to do anything but to kick the wagon into smithereens. The chore boy watched the horse and the driver for a time, and then said to his employer that he thought he could make the horse go. What does a boy like you know about horses ? replied the grocer. You just keep away from that animal or you will get the top of your head knocked off.^^ But I know something about horses,persisted the lad; I was brought up with them, and I know I can handle that one.^^ All right, said the grocer, keep away from his heels and see what you can do with him.^^ This was Vreeland’s opportunity and he made the most of it. Taking the horse by the bridle, he began softly rubbing his nose while he talked to him, and soon the animal forgot all about the trouble he had had with 72 BUSINESS AND COMMERCE the driver. Then young Vreeland climbed into the wagon, drove the horse around the block, and came back to the store. He was then and there promoted from chore boy to driver of the delivery vragon. He had gained his first job, and had mounted the first round in the ladder of success. place a great premium on faith in oneself, said he. Man can be too confiding in others, but never too confident in him¬ self. It is not so much method as mind that is needed to solve the problem how to do it. If you believe that you have talent, you have it,— use it. Most men who succeed in this world make their own oppor¬ tunities. Erastus Wyman secured his first situation through his own unaided efforts. I earned my first money, said he, selling newspapers on the streets of Toronto. While thus employed, I learned that an apprentice was wanted in a printing office. I applied for the position and secured it. I was then fourteen years old, and received in one payment $1.50 for my first week’s work. The pride and joy that thrilled my slight frame on the Saturday night when I took to my mother that immense sum — the earnings of six days’ and two nights’ hard labor — has never been equaled by any emotion since experienced, in a life that has proved more than ordinarily successful. We—my mother, my sister and myself,— .were havings hard struggle, living over a little grocery store on King Street, Toronto. The first fruits, in the shape of absolute cash, were the most welcome harbingers of a happy future for both these dear ones, that a loving son and brother ever enjoyed. For four long years I earned, as an apprentice at the case, wages enough to help sustain our happy house¬ hold, never, however, exceeding nine dollars per week. I shall never forget the first Saturday night on which I received the magnificent sum of five dollars. My sister and myself walked down the principal street with this great sum, looking in at the milliners’ windows, intent upon buying a bonnet for our mother with that not absolutely needed to pro¬ cure food. It was a discouraging journey, for everything seemed beyond I our means, but finally a bonnet shape was secured, and, with a few black ribbons and a purple flower, the dear sister worked a miracle of beauty out of a trifling expenditure. Those were happy days, when it took ten long hours of hard labor to earn a dollar,— ten cents an hour,— yet in that week’s experience was laid the foundation of a love for work, that is at once the delight and the reward of life.^^ The early experience of John V. Farwell, the founder of the great wholesale dry-goods house known as The John V. Farwell Company of Chicago, offers an inspiring example to a young man who is seeking employment and anxious to get on in the world. Mr. Farwell owed his start on the road to business success, not to securing a position, but to being discharged from one, I settled in Chicago in 1845,^^ BUSINESS AND COMMERCE 73 said he, not long- after. I had no friends in the city, and only a few dollars in my pocket. I at once started out to seek employment, and finally secured a position in the city clerk’s office. By virtue of the posi¬ tion, I was soon assigned to make reports of the meetings of the city council, securing, for this work, extra pay to the amount of two dollars a meeting. Soon, however, I ran against a snag that caused me to meet with shipwreck. In my reports of council proceedings, I set down things exactly as they occurred, and this did not please certain aider- men. Although I received more than an inkling of this, I continued to make accurate reports, and, the first thing I knew, I was discharged from the employ of the city. The blow was a severe one to me, as work was hard to find. I was, for a time, deeply discouraged, but quickly rallied and soon found work as a bookkeeper for a dry-goods firm. It was in this place that I resolved to become a merchant, and, although my salary was very small, the work gave me an insight into the dry- goods business. After a time, I was offered a position with another house at six hundred dollars a year, which enabled me to save a good deal of money. Within five years of my arrival'in Chicago, I was made partner in the firm. I have sometimes wondered what would have been my lot if I had stayed in the city clerk’s office. Getting a position is one thing; making it a road to something better is another and an equally important thing. William H. Newman was a clerk in a Louisville hotel, at ten dollars a week. He had come to Louisville from a Kentucky farm, and by his own efforts had secured a position as clerk. He gave strict attention to his duties, made himself popular with the guests of the hotel, and saved his money. Theodore Harris, now the president of a Louisville bank, was proprietor of the hotel. Associated with him in the management were John S. Long and Colonel R. B. Hall. All three took a fancy to young New¬ man, and, when Mr. Hall was elected president of the Southern Pacific Railroad, he made Newman its freight agent at Shreveport, Louisiana. The young man quickly mastered the duties of his new business, and within a few years was at the head of the traffic department. His ability to secure and handle business attracted the attention of the late Jay Gould, who put him practically at the head of the traffic department of the Gould Southwestern Railway system. Another step upward made him vice-president of the Missouri Pacific Railway, and in 1889 he took a similar position in the management of the Chicago and Northwestern Railroad. Four years ago, Mr. Newman entered the service of the Great Northern Railway, where he remained but a short time. One day, in the summer of 1899, he met an old Louisville friend at the Waldorf-Astoria, in New York. How are you getting along ? said the Louisville man to Mr. Newman. 74 BUSINESS AND COMMERCE Pretty well,^^ was the answer. I have just had a conversation with Vanderbilt and he offered me the presidency of the Lake Shore. Well, that is about as high as you can get in the railroad world, is it not ? was the response. Perhaps, answered Mr. Newman. Since then he has been advanced to the presidency of the New York Central Railroad, with a salary of fifty thousand dollars a year. Jacob L. Greatsinger, president of the Brooklyn Rapid Transit sys¬ tem, was so anxious to become a railroad man that, at the outset, he worked for nothing, learning to fire on an old wood-burning switch en¬ gine at Elmira, N. Y. Three years later, he became an engineer, but was soon impatient to become a mechanical engineer. He went from the cab to the shops, and, at the same time, devoted his nights to mas¬ tering telegraphy. In 1874 he was a full-fledged train dispatcher, and two years later became the assistant superintendent of the Elmira, Courtland and Northern Railroad, now a part of the Lehigh system. Soon afterward, he was made general superintendent, and left that posi¬ tion to become master mechanic and superintendent of motive power on the Chicago and Eastern Illinois Railroad. He went thence to the Duluth and Iron Range Railroad as master-mechanic, and became, in a very brief period, president of the road. He ascribes his success to the fact that he has sought to make the most of every position that has come to him. The same trait explains the remarkably successful career of Lindsay Coleman, now the foremost bicycle manufacturer in America. Coleman was born, less than fifty years ago, in Richmond, Virginia, and, while still in his teens, had a taste of mining life in Colorado. His opportu¬ nity did not come until he was thirty-three years old, and, when it did, he made it himself. It was in 1885 that he sought employment with a toy company in Chicago. The manager of the company at first declared that there was no vacancy, but Coleman was not to be denied; and, finally, work of an humble sort was found for him. The business of the concern was the making of baby carriages, wooden playthings for the nursery, and velocipedes. Ere long Coleman asked to be allowed to go on the road to sell goods, and, when his wish was granted, he secured so many orders that the factory was unequal to the demands made upon it. Thus he became an important factor in the firm’s business, which grew by leaps and bounds. When it opened an Eastern branch in New York, he obtained a proprietary interest in the new concern, and soon after came into entire control. During the next six years, he became a prin¬ cipal, with a controlling interest in the Chicago business, and, in 1894, its manager and vice-president. The struggling toy factory had grown to be a great corporation, worth one million dollars. Twenty-five hundred BUSINESS AND COMMERCE 75 persons are now employed by Mr. Coleman in the various departments of his business. Had he accepted no for an answer, when he first applied for employment, his career might have been a widely different one. Men who compel success do not wait for employment, when it is not to be had from others. They make it. Leopold Schepp, whose fortune now mounts into the millions, began business life at the age of eight years, with a capital of one cent. This one cent was a gift. The man who gave it perhaps forgot the sturdy little fellow who received it. Young Leopold at once invested in two newspapers, and sold them on the street. With the increased capital he bought more papers, and so kept expanding his trade, until he was one of the most successful newsboys of the day. Not satisfied with selling papers, young Schepp got a stock of suspenders, and other little articles, which he sold on the streets. Every time he changed the nature of his business, he got into something better and more profitable. Thus, through numerous ven¬ tures, he rose to the dignity of a merchant. It is his boast that he never’ sought employment from another. William R. Grace earned his first money as an errand boy and shop sweeper, in New York. Then he drifted to Peru, where, in Callao, he worked in a butcher shop, and later became a ship-chandler. It was the ship-chandler’s business that started him on the road to fortune. He was a shrewd, sturdy youth, industrious and ambitious. He was ob¬ servant, and ever ready to grasp an opportunity and to make the most of it. He saw, at a time when few others did, the possibilities that lay in commercial exchange between South America and the United States, and as soon as he could he set up as a trader between the two countries. The business that was then very small is now very large. To-day the house of William R. Grace and Company has an international reputation, with branches in many countries. It almost controls the American trade between Peru and Chile, and a fleet of ships is engaged in its commerce. Those who are acquainted with such houses say that the former ship- chandler is now worth between ten and fifteen million dollars. Mr. Grace was asked, not long ago, what he regards as the elements of success in a business career. He replied that there were three. One, and perhaps the chiefest, was good health. Without that, he said, no person could hope for success in a prolonged business career. The second element was the power of perfect concentration, and absolute devotion to an idea until it had been accomplished. The third was the power, partly natural, he thought, but to a considerable extent to be acquired, of prescience, or an ability to forecast the future with a fair degree of accuracy. Given these three qualifications, Mr. Grace declared, in a country like the United States, a business career of dazzling and magnificent success is assured to the man who undertakes it. 76 BUSINESS AND COMMERCE When Lyman J. Gage was eighteen years old, he sought and secured work as office boy and junior clerk, in a bank, at Rome, New York. His duties were to sweep the office, go on errands, and to help with the bookkeeping. His wages were one hundred dollars for the first year, and when he asked for a raise for the second, the firm urged that he was already well paid for a beginner, and, rather than pay him more, allowed him to leave their employ. Young Gage thereupon made his way to Chicago. He had determined to become a banker, but no Chi¬ cago bank was in need of his services. He could not afford to be idle, however, and decided to take any work that might be offered him. The only opening was little-to his liking, but he took it. He was employed as a sort of roustabout in a lumber yard. His duties were to carry logs from the wagon to the pile, feed logs to circular saws, and, occasionally, to drive a team of mules. The pay was a pittance. After a year passed in this way, he became night watchman of the yard, and spent his time guarding against fires, which ever menace lumber piles. An¬ other year passed before he was again promoted. Then he was made s the junior bookkeeper, but this promotion was not for long, for the panic of 1857 came on, and business depression made it necessary for his em¬ ployer to dispense with the junior bookkeeper’s services. Seeking in vain for other employment, he was obliged to resume the night watch¬ man’s task. Not until he had been three years in Chicago did his for- tune turn. During all that time, he had clung to the idea that he was ^^cut out for a banker, and had become a familiar applicant for employ¬ ment at every bank in town. One day in August, 1858, he was sum¬ moned to the office of a trust company where his name was on file as a candidate for any opening, however humble. The cashier asked him if he could keep a set of books. I can try. That is not what we want, can you do it ? I can if it can be done in twenty-three hours out of the twenty-four.^^ On that assurance he was engaged at five hun¬ dred dollars per year. He had obtained the long desired standing-room in a Chicago bank. A few months later he was the paying teller, at twelve hundred a year, and, thenceforward, his course was clear and his progress rapid. Mr. Gage believes that the needed position and opportunity come to the young man who seeks them and is not to be denied. Advancement, in one form or another, always awaits a young man who makes the most of his first position. Some years ago, a diffident, serious-faced young St. Paul lad, named Frank E. Ward, went to work for James J. Hill, the president of the Great Northern Railway, as his personal stenographer. Times had never been easy with the lad, and he approached his duties with terrible earnestness. From the first, Mr. Hill was interested. He noticed that the boy always had a book handy, which BUSINESS AND COMMERCE 77 he pored over, whenever there was a minute’s respite. One day, the president picked up the book. It was not a work of fiction, but an alge¬ bra, and no objection was made to the continued study. It is Mr. Hill’s custom, when traveling over his road, to sit at the rear end of the train and make a flying inspection of the tracks and the right-of-way. Until Frank E. Ward’s time, Mr. Hill had always insisted that whoever was with him, on a trip of inspection, should watch the tracks; but he made an exception in the case of the young stenographer, who was allowed, and en¬ couraged, to study during the trips. Nevertheless, the boy kept a rather close watch on everything pertaining to the road and its operation, as Mr. Hill found out, from tim'e to time, by talks with him. In due time the stenographer was promoted to be the president’s assistant. Later, when Mr. Hill saw the lad, now grown to be a man, so competent to work alone, he promoted him again, and now Frank E. Ward writes general superintendent after his signature. Chauncey M. Depew’s ideas of how a young man can best get a situa¬ tion, and keep it, are charged with hopeful common sense. A pleasing address and an air of self-reliance,^^ said he, are often worth more to an applicant for work than a dozen letters of introduction and testimonials. When he has secured the position, he has only to display industry, good sense, and confidence in himself, and advancement is only a question of time.^^ Mr. Depew cited the case of James H. Rutter, as proof of his asser¬ tion. Rutter was a poor boy, who lived somewhere on the line of the Erie Railroad. He found employment as a clerk, or sort of freight and baggage agent, at a country station, and within a month revealed that the place and the man were suited to one another. That was in the earliest days of the road. Some of his doings which indicated talent attracted attention, and he was promoted. Then he was put in charge of the freight traffic centering at Dunkirk. There he revolutionized the methods then prevailing, brought order out of chaos, and was regarded by the Erie management as a young marvel. They advanced him until he was in control of the freight traffic of that road, and then- he dis¬ played a generalship, which, although it was costly for the Vanderbilts gained the admiration of the old commodore, so that he said: That is a young man whom we must have.^^ He tempted Rutter away from the Erie road with a salary of $15,000 a year, and created a new office for him in the Central system which was called general traffic manager. One day Rutter called upon Commodore Vanderbilt and spoke of a matter of extraordinary difficulty and importance respecting some freight ar¬ rangements, and then he asked the commodore what he should do. Jim,^^ said the old man, what does the New York Central pay you $15,000 a year for ? ” 78 BUSINESS AND COMMERCE To manage its freight business. ^^Well, do you expect I am going to earn your salary for you?” replied the commodore. Rutter turned and left the room. He went out and acted on his own judgment; acted with unerring foresight, and was soon prom.oted to the vice-presidency. Later, he succeeded William H. Vanderbilt as presi¬ dent of the New York Central Railroad system. Rutter was hired,” said Mr. Depew, to manage the freight busi¬ ness of the Central. He was expected to manage it. If he did not do it, some one would be hired who could.” And this remark points a moral for every young man who is anxious to find a situation and to keep it THE YOUNG MAN IN THE LAW By FREDERIC R. COUDERT Ex-President of New York State Bar Association I KNOW of no rules or set of rules which can be formu¬ lated like the provisions of the Constitution of the United States, and which, being followed, necessarily lead to eminence in the law. The elementary conditions which underlie success in every walk of life underlie this. It goes without saying that the aspirant for worldly honors or financial achievement must have intelligence, moral and physical health, and a constitution that will enable him to stand disagreeable friction and frequent disappointment. Nothing can take the place of a classical four years’ course in college in its influence on the aspirant for pro¬ fessional success. Many have succeeded and become leaders of men without the training and culture of a college education. Many others with all the advantages of such an education have passed unnoticed through life. But we arte not speaking now of exceptional cases and may overlook both classes. Nature will have her joke at times, and laugh at rules, and scoff at experience, and give sophists a chance to argue and show their wit; but the fact, none the less, remains that the youth who has gone through the course of intellectual gymnastics that a college affords starts in life with an advantage. Those who doubt this may look at our public records, and will And how far the college- bred man is in the lead. In Congress, on the bench, at the bar, he stands out conspicuously. If you consider the small number of college BUSINESS AND COMMERCE 79 graduates in the country compared to the whole population and see what proportion they hold of the high positions within the people’s gift, you must acquiesce in the general proposition. Charles Francis Adams, some years ago, spoke of the classical Shib¬ boleth,^^ as he termed it, with something like a sneer, and almost inti¬ mated that he and his forebears had made something of a failure of life by going to and graduating from Harvard. Perhaps they might have done better if they had never studied Virgil or Horace, and had never heard of Demosthenes or Euripides, but on the whole they cannot, one would think, complain of the effects of the Shibboleth on their house. Two presidents of the United States, one minister to Great Britain (aye, and a great one), scholars, litterateurs^ lawyers, four genera¬ tions, in a word, of conspicuous citizens! If these are the legitimate proofs of Harvard training, may she long continue to pursue the useful tenor of her brilliant way and with her great American sisters continue to develop the latent possibilities in our young men. It is the mission of all of them to do this; not to create but to draw out, to quicken, to strengthen and to adapt what already exists to the purposes of a useful life. Mr. Brice could not fail to recognize the superiority which a classical training had secured for the bar of our country. Next after wealth, he says, education may be taken to be an element or quality on which social standing in a purely democratic country depends. In this respect the bar ranks high. Most lawyers have had a college training and are, by necessity of their employment, persons of some mental ability. In the older towns they, with the leading clergymen, form the intellectual dite of the place. If the young man is to rise as a lawyer, it is essential that he should not be a fool, and it is equally important that he should not be a liar. There is no other profession in the world in which a deserved reputation for truth is so important. Of course, we know that there are many people who delight in their own small witticisms at the ex¬ pense of the legal profession, their sense of humor being somewhat limited. It certainly is a fact that we do very often make untrue statements, but, be it remembered, those statements are not ours. We are the mouth-pieces of clients who are not lawyers, and who may or may not be truthful. We are bound to accept their statements; we make them as their statements and we endorse them as coming from them. If false, the moral obliquity is to be traced to their consciences, and not to that of an advocate whose function it is to present the facts upon which he relies for success in any given cause, together with the argu¬ ments based upon such facts. If the young advocate does not love the truth for itself, and is not self-respecting enough to despise a lie, even if 8o BUSINESS AND COMMERCE he can thereby achieve success, he were wise to do from expediency what it were better to do for conscience’s sake, or else to go into some other business where he can falsify to his heart’s content. The student must be a persistent reader. If he is fortunate enough to be able to go to a law school, a wise preceptor will solve his doubts as to a choice of books by giving him the intellectual pabulum that will best serve his purpose. If not, he may read Kent and Blackstone, and then re-read them, and, if he has no other books, read them over and over again, together with the most important decisions, federal and state. One good book is worth a dozen mediocre ones. The man of one book, homounius has proverbially been a dangerous adversary. The study of the Code of Practice is not of itself, although a useful, an ennobling pursuit. One of the leaders of the bar, many years ago, when the Code had been in existence for half a dozen years, gravely told me that he had discovered that the more a man knew of the Code, the less he knew of anything else. It is fair to say, however, that all the old-fashioned law3^ers denounced the Code as an atrocious invasion of their time-honored monopoly, and were extremely reluctant to go to school to David Dudley Field and his colleagues. Lessons obtained from experiences, even discouraging experiences, are as valuable as school lectures. As to my first ^discouragement, I do not remember what it was, but the most discouraging emotion, and the most exacting as well, is to feel that you have been vanquished by an opponent whose very weak¬ ness and incompetence enlisted the favor of the court, and compelled its interference for the sake of justice. A virtually unprotected adversary is a formidable foe. As a young man, I infinitely preferred to encounter an able and experienced lawyer rather than an incompetent, ignorant, and foolish pettifogger. If beaten, the consciousness that I had not been, in common parlance, kicked by a mule was comforting. A lawyer’s first case is, relatively, his most important. My experience, while not thrilling, was unique in its way. A milli¬ ner, who spoke no English, sued a lady whose early education had been likewise neglected. The case was tried before Judge Lynch, of the Marine Court, who was an accomplished French scholar; the lawyer on the other side was of French extraction. As I was also familiar with the language, and the witnesses spoke no other, the judge suggested that we try the case in French, thus obviating the need of an interpreter, which we did. It was very pleasant, in a way, because it was novel, and Mr. O’Conor himself could not have done it; but I have never cared to try cases in French since that time, for the milliner got a judgment in her favor, which, after forty years’ reflection, I am inclined to think was quite correct. Whether she recovered anything besides a judgment, I BUSINESS AND COMMERCE 8t cannot say. I believe that she became my client afterward, and I found her much better in every way than when she insisted on her dues from a dilatory and impecunious customer. Whether the newly-fledged barrister should at once open an office and boldly challenge fortune, single-handed, under the influence of his own shingle or enlist in the ranks of an established firm in a humble capacity, is a rather debatable question. If he is a man of independent means, with benevolent relatives who are willing to allow him to flesh his maiden sword at their risk and expense, the experiment of a solitary attack upon the community may be made. But, as a rule, he will be willing to drop his pride and begin at the lowest rung of the ladder. Assuming him to be well equipped in the theory of the law, and to have assimilated something from the many books which he has read, he needs experience, above all things, and this he will more readily find in an active office where clients are not looked upon as phenomena, than in the solitude of the unknown and friendless attorney. Virtue is as likely to be found out as crime. If the beginner is diligent and intelligent he will be discov¬ ered. Here, as in every other calling, brains and fidelity are indispensa¬ ble. The opportunity to learn by experience the young lawyer must have; and he runs great risks of not getting it, if, unknown, unheralded, and without conspicuous claims to public notice, he ensconces himself, alone and unmolested, in a brand new office. In this respect he is less fortunate than the young physician, for the latter has in the hospitals, the asylums, the jails, and the reformatories, opportunities to practise on patients whose financial and personal conditions do not permit them to select their advisers. He does not write his first prescription for a mil¬ lionaire or amputate a limb belonging to .a member of Congress. If he fails in his honest efforts to cure, the obscurity of the patient removes all temptation to unkind comment by outsiders. Besides this, he has behind him the careful and skilful experience of the veteran to guide, correct, advise, and help, him. This invaluable experience gives us a corps of young physicians and surgeons as able, probably, as any in the world. But the young lawyer cannot always get clients even without a fee. He cannot, generally, secure the watchful and kindly supervision of a competent senior. If he breaks down in court or commits a palpable error or loses a manifestly good case, or egregiously blunders, his mor¬ tification cannot well be conceived. Sometimes these failures, severe as they are to his pride, are blessings in disguise, for they teach him that Minerva has not filled his cradle with unearned gifts. If he is wise, he may comfort himself with the reflection that the man, lawyer, or layman, who never made a fool of himself, was spared the trouble when he was born. 13—6 82 BUSINESS AND COMMERCE The question of adopting a special branch of the law sometimes pre¬ sents itself to the beginner. The adoption of such a branch as patent law, admiralty law, or corporation law, implies a faculty of choice which the young practitioner cannot well exercise. He must first get what he can of the substantial food of life, but in the formation of his menu he has little to do. The president of a rich syndicate or of a mighty cor¬ poration will probably not call upon him before his hair is gray. He must go through many a field of battle and prove himself a valiant knight before the highest rewards are brought to his feet. No doubt brave young privates would like to wear the epaulets without waiting for the slow process of time, but alas! there are others in the way. There are stern rules which will not allow untried heroes to be taken at their own measure of value. It is best, therefore, for a young lawyer to prepare, to some extent at least, for business of every kind. He can be ready, if a sudden and un¬ expected opportunity arise, to show that he knows something of a special subject with which he has to deal. There is danger, too, in his devoting himself entirely to a specialty — danger of contracting his mind and pre¬ venting its due and legitimate expansion. An old-fashioned physician once said that he objected to specialists because they made lop-sided doctors. There is much the same danger in the law. A taste for mechanics is an excellent ally in the practice of patent law, which is, of all, the most profitable branch of law practice. I recall a lawyer practising in one of the Eastern States who was reputed to have made a large fortune out of a single patent. It was probably true, for his client said to me, whether humorously or not I shall not now under¬ take to say: ^^Oh! Mr. So-and-So, my counsel, treated me very liber¬ ally. After we got through with our fight, he gave me $250,000.^^ How much,he retained I did not inquire. That this should be so is only nat¬ ural, for a successful patent carries with it profits enough to divide among many associates. vSome of them have been gold mines, as the advocates and experts, and frequentl}^ the parties themselves, can tes¬ tify. But there is not much foundation for the superstition that it re¬ quires exclusive and persistent study to master the principles of patent law. It will be found that the men who have been most successful owed that success not so much to a mastery of the principles applicable to that kind of litigation, but rather to a thorough understanding of the me¬ chanical and scientific principles involved. Admiralty law was at one time a fruitful source of litigation and of moderate emolument for the bar, but it has greatly degenerated from its pristine glory since the commerce of the world has been carried by steam. The lovely old cases in which two sailing vessels would run foul of each other, and when bottomry bonds were taken thousands of miles BUSINESS AND COMMERCE S3 away, and when ships were not heard of for many months at a time, have passed forever. Besides this, underwriters have contracted a beggarly way of defrauding proctors in admiralty and advocates of their just dues by settling whenever they can; no effort on the part of the rising gen¬ eration can probably counteract this tendency. Arbitration is the order of the day, and millions of dollars are disposed of every year in the City of New York alone in contests wherein lawyers have no share. I am inclined to believe that the bar itself is responsible to a great extent for this. Enormous charges for ordinary services have alarmed and dis¬ gusted clients. Always keep your client within the squealing point, said an old lawyer who was flourishing when I began,— a lesson which young men should take to heart. They often forget that being dubbed with the title of counselor-at-law does not All them to overflowing with knowledge, as it certainly does not bestow upon them the invalua¬ ble gift of experience. They are very apt to kill the goose that lays the golden egg, in their impatience to reach pecuniary independence. Many of them have lived to rue the day and to regret that they had not learned and observed the practice of moderation. Do what they will, the gray¬ headed hero of a thousand fights must perforce know something that the stripling just out of his teens has not yet acquired. The latter may not believe this, but he will discover it in time. Every young lawyer ought to have something to do with polities, that is to say, he should entertain an opinion upon the living issues of the day, and should be able, in some measure, at least, to assist the cause which he believes to be just. Not that he should necessarily become a slavish adherent of any one of the political parties, although they are great and efficient instrumentalities, when properly directed, for do- ing good. A Don Quixote going around with an old-fashioned sword and battle-ax, and no one but his faithful Sancho behind him, will ac¬ complish little, even if the principles that he advocates are entitled to re¬ spect and admiration. Political parties must be taken as they are and as representing averages. A soldier will do more fighting with one hun¬ dred or one thousand trained men with him than alone. While it may be justifiable at times to cut off from all party affiliation when con¬ science orders, it is wise, on the whole, for a young man to study the ground carefully and to attach himself to that organization which, in his judgment, will best serve the great, permanent interests of the country. The hardest lesson for the young lawyer to learn, and one which some older lawyers have never been taught, is that a judge is not neces¬ sarily his enemy, a fool, or a knave, because he decides against him. As to eloquence. The young lawyer naturally desires to be heard and to display whatever eloquence nature may have kindly endowed him with, on all reasonable occasions. This is but natural. After all, 84 BUSINESS AND COMMERCE the barrister is the knight of the profession, and has always occupied a place to which his silent brother never could attain, for eloquence is a divine gift. The human voice is the noblest of instruments, and the faculty of swaying a crowd, whether of twelve men or ten thousand, to one’s caprice, is the highest with which the Creator has endowed the human being. The real orator is a magician. He may laugh at experi¬ ence and snub common sense; he may fill the breast of every one of his hearers with his own passions, make them unwilling witnessed of his own prejudices and enslave them to his will. For the moment, they become his puppets and sometimes his instruments. But the real orator is very rare. Counterfeit presentments fill the land, and this fact makes it difficult for the ordinary ear to distinguish between the reality and its imitation. Many claim that eloquence is dying, or is dead, because men are now too intelligent to be swayed by an orator’s accents. We might as well say that Paganini, playing on his Stradivarius, could not charm, captivate, and delight his audience, to-day, as he could have done centuries ago. The men of the twentieth century have the same organs, the same passions, the same heart, and the same brain, that they had when Demosthenes denounced Philip, and Cicero pursued Catiline. Eloquence has its value now, and always will have ujitil the constitution of men is changed. Only the circumstances for its exercise must be considered. Eloquence out of place is no eloquence at all. To make the walls of a court-room quake when you are disputing a bill of costs will seem ridiculous. The thunders of the orator should be kept for more serious occasions. But when a human life, or the prospect of a great political party, or the welfare of the nation, is concerned, the orator stands out the master of men. When I am asked whether the young lawyer should endeavor to be eloquent or impassioned before a jury, or merely state his case and ar¬ ray his facts simply and logically, the answer must be that he had better not try to be eloquent, even where eloquence is necessary, for if he has the divine fire in his breast, it will break out and burn every obstacle strewing its path. He can no more help yielding to the impetus of his own genius than can the newly-fledged pigeon be restrained from flying as soon as his wings are strong enough to bear him. But he must begin, and he will begin if he is a true orator, by work¬ ing upon himself. It is only when he is hurried away beyond the bounds of cold and phlegmatic reason that his true powers come into play. As Mr. Hume says, speaking of the ancient orators: ^^Nay, to consider the matter right they were not deceived by any artifice. The orator, by the force of his own genius and eloquence, first inflamed himself with anger, indignation, pity, sorrow; and then communicated those impetuous movements to his audience. LAW AS A PART OF BUSINESS EDUCATION By GENERAL BENJAMIN F. TRACT M any men do not feel it necessary to have even a rudimentary knowl¬ edge of the legal principles which regulate their business and social activities, though it is self-evident that all men should know something at least of that which has so direct and important a bearing upon their conduct. The words of Pope: A little learning is a dangerous thing, are particularly true when applied to law, yet all active men and women should undoubtedly possess some degree of legal learning. Many costly and bitter experiences are the result of lack of knowledge of the law. It is a well-known maxim that ignorance of the law excuses no one. Many men have innocently committed illegal acts at the penalty of much trouble and expense, and even at the cost of their lives. While consequences of infractions of the law are often so serious that no layman should take important action involving legal considerations without the advice of a practicing lawyer, there frequently occur in the course of a business day, exigencies which must be immediately faced, allowing no time for consultation. In these numerous cases, a knowl¬ edge of the fundamental legal principles and practices frequently is of great service. Every man who is engaged in some commercial pursuit, should, for example, have a clear idea of what constitutes a contract. « Unless he knows that there must be in his contract a consideration on both sides, that no contract is valid which does not involve mutual obli¬ gations, he may make mistakes that will cause important transactions to come to naught. He should know also the general legal principles regu¬ lating the loaning and borrowing of money and the making of notes. If he is a merchant, he should have knowledge of the law as applied to the buying and selling of goods; if he is engaged in real estate operations he should be familiar with the numerous common law principles and statutory enactments relating to lands and houses; if he is an importer or exporter of commodities, and is identified with the shipping business, or follows the sea in some responsible capacity, a knowledge of mari¬ time law will be very serviceable to him. In short, the activities of every man who is engaged in an occupation are affected by certain laws, an understanding of which will enable him to proceed with much more wisdom and safety than if he were ignorant of these principles. Yet not a little danger, as I have already indicated, lies in the posses¬ sion of legal knowledge by the layman. If he depends too much upon 86 BUSINESS AND COMMERCE his own comprehension of law, if he attempts to steer his craft through the rocks and shoals and currents of law without the aid and advice of an experienced pilot,— that is, a lawyer,— he courts disaster, and, sooner or later, will run afoul of some legal reef. He would better know nothing of law than not to understand his own limitations and know when to call in his attorney. It has been often and well said that the man who is his own lawyer has a fool for a client. Even a member of the profession calls to his assistance some brother practitioner, when his own private interests are involved. The possession of a little legal law is like the possession of a revol¬ ver ; its timely use may be a great protection to a man, while its abuse, on the other hand, may get him into the most serious kind of trouble. But, if he applies, discreetly and carefully, his knowledge of the law, he will not only be relieved of the necessity of employing a lawyer in many instances where one would otherwise be needed, but he will be able to greatly facilitate the work of the lawyer when he is called in. He has an understanding of the salient facts and conditions of his case and is able to bring them clearly and concisely to the attention of his attorney, which is much to the interest of both concerned. Aside from the purely practical use to which a man’s knowledge of law can be put, he derives much mental benefit from its study. Its framework is a symmetrical structure of justice, reason, and common sense, which appeals to every man of normal intellect, and which, in its analysis, trains the mind to accurate and logical thinking. While the law embraces an immense amount of detail, its general principles are based on fundamental human rights and obligations, and constitute, I think, an important branch of general education. Every intelligent man, and woman, too, is given a broader and more comprehensive out¬ look on life and a better trained mind, both for abstract thought and for practical action, by a year or two devoted to the study of law. They also reach, by this means, a better understanding of the institutions of their country and of their rights and obligations as citizens, and are thus able to fulfill their various civic duties much more intelligently and to lend their influence in the direction of good government. This is particularly advantageous in a nation which, like our own, has a repub¬ lican form of government. The benefits of a certain amount of legal knowledge on the part of the layman is becoming more and more generally recognized. Every law class nowadays contains a number of young men who have no ex¬ pectation of practising law. They are studying it for the sole purpose of adding to their equipment as business men. A large number have found it of great value in commercial careers. Many women, also, study law for the purpose, not of becoming practicing lawyers, but of BUSINESS AND COMMERCE 87 gaining accurate knowledge of their legal position and of their property rights before the law. Women of wealth are thus able to manage their own estates with a large degree of independence. To recapitulate, both men and women are given, by legal study, broader and more completely furnished minds, greater practical ability, clearer ideas of justice, and a better appreciation of the duties of citi¬ zenship than are possessed by those to whom law is a sealed book. Therefore, I believe that every young man and woman would be bene¬ fited by even a small amount of legal study. To the active mind, the subject is by no means a dull one, built, as it is, upon human effort and the incessant play of passions and desires. THE SUCCESSFUL LAWYER MUST HAVE A KNOWLEDGE OF BUSINESS By AUSTIN B. FLETCHER, LL. D. Of the Bar of New York City I T IS frequently stated that law has ceased to be a pro¬ fession, and has become a business. The statement is extravagant, but contains enough of truth to find ready acceptance with many. The commercial spirit of the age has im'pressed itself upon everything in it. The lawyer is no exception. He is continually consulted upon the law applying to business transactions and situations, and, if he is to give the best advice, he must thoroughly understand that to which the law is to be applied. To be qualified for this, one must have a keen business instinct, and this should be supplemented by a commercial experi¬ ence. The latter may be obtained by any one, but the former is as much a gift of the gods as oratory or poetry, either of which may be improved by study and exercise, but can never reach the dignity of true success unless it is implanted in one’s nature. A lawyer possessing the highest business instinct, a calm, well-balanced judgment, and the ability to quickly grasp the situation, is to-day more sought than the great advocate; and if the making of money, that last infirmity of noble minds, is an indication of the measure of success, he is the most successful in his profession. Ninety-five per cent, of those who enter upon the practice of the law would probably have done much better if they had chosen a different kind of work. Not more than five per cent, attain a genuine success, in 88 BUSINESS AND COMMERCE accomplishment or reward. No one should enter any of the learned professions because he believes it offers large pecuniary promise. The various mercantile and allied pursuits present far’greater inducements in this direction. If one prefers the law to any other occupation, he pos¬ sesses one of the elements of success in taking it up. He should next be certain that he has sufficient stamdna to hold the moral rudder true, for there is no profession or business vocation which requires a keener moral sense and greater strength of character than the practice of the law. Some of his clients who criticize the acts of others and the legal profession generally, will probably be the first to openly or guardedly request him to do that which all men know to be dishonorable, or un¬ lawful. The day is approaching when the law schools will as carefully examine into a candidate’s moral antecedents, condition, and tendencies, as into his mental ability. He should next have the broadest general and legal education that his circumstances will permit him to obtain. The race is not to the swift, and no time is so well spent as that given to a thorough and careful preparation. To the information gathered from books and schools, should be added a thorough knowledge of accounts, the general principles of business, rules of trade, commercial usages, and methods. The attainment of the above will require the best efforts of a young man until he is nearly thirty years of age, but at forty he will have far outstripped those who hurried through their preparation and began prac¬ tice at twenty-one, and succeeding years will continue to widen the dif¬ ference between them. _ To lawyers of this class falls the management of large estates, in¬ volving the investment and care of vast sums. They become directors in banks, trust companies, and business corporations, in which their knowledge of the law, together with their acquaintance with business principles and methods, gives them an advantageous position. Many lawyers in our largest cities have given up the general practice of their profession, and have become the legal and business heads of some of the most important corporations. Instances can readily be given by any well-informed lawyer of members of his profession, who, because they combine a knowledge of the law with a thorough knowledge of business principles, have been taken into partnership in some of the largest bank¬ ing houses in the world; elected to the presidency of the greatest financial institutions, with remuneration commensurate with their re¬ sponsibilities; placed in charge of railroad systems with a salary of $100,000 per year, which is largely increased by the opportunities for advantageous investment; or who have been given the management of estates of many millions, upon the income of which they receive ten per cent, which rapidly leads on to fortune. Not one of these positions is BUSINESS AND COMMERCE 89 obtained or held because of an intimate knowledge of the law alone, but because the holder has also a business experience and capacity that en- - titles him to all that he receives. Such opportunities and demands will continue to increase, and the lawyer who will be most sought is he who has also a practical knowledge of business principles. A simple instance may be given illustrating a greater necessity for business foresight than knowledge of the law. The lawyer has trust funds to manage. His first desire is that the investment shall be safe, and next that it shall earn a fair rate of interest. Government, state, and municipal bonds return from about three per cent, to less than two per cent., which renders them unsatisfactory in many instances. First mortgages on improved real estate pay from four per cent, to five per cent., and are a favorite investment. The drawing of the mortgage and the strictly legal work connected with the instrument is a very simple matter, but the business judgment necessary in examining the property is far more important. Most mortgagors in our large cities are real estate speculators, and, desiring to borrow as much as possible, will resort to all means to accomplish that end. The lender must rely upon his own judgment, and very many conditions and circumstances enter into its formation. The bond is not to be considered, for the bondsman is almost invari¬ ably a dummy who is paid ten dollars for his trouble, and is entirely irre¬ sponsible ; and even if he was responsible when he signed the bond, he might not be when the mortgage became due. The lender has nothing to look to for payment but the value of the property. The loan is usually for three or five years, and it is even more important to know what the property will be worth when the mortgage expires than it is when the ap¬ plication for the loan is made. The value of property in some localities in New York City has within five years fallen from twenty to forty per cent. If new business property is being examined, the question of whether it is well adapted for its purposes must be considered: does it meet modern requirements; is it too good or not good enough ? Either may prove fatal to its success. Will the locality continue as a business center, or will trade move away ? If it is an apartment house, it is necessary to consider whether the class for which it was built will continue to live in the vicinity; or will it change? Surroundings, objectionable features, and people, and numerous other considerations all enter into the question of the loan, and are vastly more difficult to dispose of than the mere legal examination of the title and the drawing and execution of the mortgage. Men of important affairs are too busy to follow details. They pre¬ sent the skeleton of a proposed contract to their attorney with the remark: These are the main features, put it into proper form, and see 90 BUSINESS AND COMMERCE that I am fully protected. The successful lawyer must catch the spirit of the contract, furnish the details, and supply omissions. Business methods, conditions, and influences are continually chang¬ ing ; questions arise which have no precedent, vast interests are involved, and mistakes are expensive. If advice is to be valuable these must be understood. The craze for the indiscriminate combination of business enterprises during recent years, with the clumsy and unbusiness-like methods pursued, the result of bad advice, poor judgment, and the desire for speculative gain, has laid the foundation for years of employ¬ ment for the thoughtful lawyer with keen business capacity, who will be called upon to reorganize and correct the mistakes that have been made. Many other instances can be readily supplied. A business instinct and experience is always desirable, regardless of the nature of one’s practice, and is absolutely necessary for success in most branches of the law. Calendar (Old English Calend^ a month).— An orderly arrange¬ ment of the divisions of time, adapted to the purposes of civil life, as years, months, weeks, and days; also a register of the year, with its divisions; an almanac. In reckoning time, the month seems to have been suggested by the period of the moon’s revolution, in 29^ days, and this method of computation was adopted in the Jewish and Greek calendars. This was, however, only a rough approximation to the true year, as we now understand it, and to adjust matters both Jews and Greeks, as well as the Romans after them (the Romans originally had a year of only ten months) intercalated a month from time to time to adapt the lunar to the solar year. In the year 46 B. C., Caesar, with the assistance of an Alexandrian astronomer, made a reform in the Roman calendar. He effected this by making the year 46 B. C. (^Ghe year of confusion, as it was called) consist of 445 days, and the succeeding year 365 days, with the exception of ^every fourth year, which was to consist of 366 days. This change is known as the Julian Calendar, but as it was not strictly accurate, even with Caesar’s reconstruction of the months and their altered number of days, and his transferring of the beginning of the year from Mar. i back to Jan. I, a later change took place in the era of Pope Gregory XIII., known as the new style, or Gregorian Calendar, when ten days were dropped and the calendar was made more in harmony with the sea¬ sons and the true year. A change in the calendar was' made in France during the Revolution, but this was discontinued in 1805, and the Gregorian Calendar method was resumed. Calendar — Roman Year .— The new year of the Romans began in March. This made September, October, November, and December BUSINESS AND COMMERCE 91 the seventh, eighth, ninth, and tenth months respectively, and their names are derived from the corresponding Latin numerals. Up to the time of the Emperor Augustus the fifth and sixth months of their year were called Quintilis and Sextilis; meaning fifth and sixth. These were changed to Julian and Augustus in honor of the Caesars. The first day of the Roman month was called the KalendsC^ Whence we get our word Calendar. The Nones fall on the seventh day of March, May, July, and October, and on the fifth of the other months. The Ides^^ came eight days after the Nones. They reckoned the other days of the month as so many days before the Kalends, Nones, or Ides. The Ides of March, the day upon which Julius Caesar was assassinated, was the fifteenth of March. December 31st was ^Mhe day before the Kalends of January but by a peculiar and confusing method of including both days involved the 30th of December was not the second but the third day before the Kalends of January. The Greek month had no Kalends, and when a Roman wanted to name an indefinite date he would jokingly say that it would occur on the Greek Kalends, which meant never. Rather akin to our method of saying that to-morrow never comes. Russian Year .— This varies little of ours except that they have retained the old style of computation which makes all their dates thirteen days later. The Russians have shown great conservatism in refusing to change their dates to correspond to the rest of Europe. Advent.— The space of four weeks immediately preceding Christmas. It commences on the Sunday nearest St. Andrew’s Day (Nov. 30). All Saints’ Day or All Hallows (Halloween). — A festival to commemorate Saints and Martyrs not honored by the assignment of an especial day. Begun by Pope Boniface IV., about 607, established by Pope Gregory IV. (about 830). All Souls’ Day.— (Nov. 2) A festival of the Roman Catholic Church, to commemorate the souls of the faithful. Andrew, St.— The first disciple. He is the principal patron of Scotland. Tradition says he was crucified at Patrse, now Patras, in Greece, upon a cross of this form, X (crux decussata), called St. Andrew’s Cross. It is a white saltire on a blue ground. Combined with the crosses of St. George of England and St. Patrick of Ireland it forms the Union Jack. St. Andrew is also much venerated in Russia, and the order of St. Andrew, founded by Peter the Great in 1708, is the highest in the state. St. Andrew’s Day falls on Nov. 30. 92 BUSINESS AND COMMERCE Anno Domini (A. D., the year of our Lord).— The Christian era begins with the first day of January in the fourth year of the 194th Olympiad (Greek mode of estimating time); or in the 753d year of the building of Rome (according to the Roman method). Dionysius Exiguus, or Denys Le Petit, finst introduced the era about the year 532. Charles III., of Germany, was the first to use the phrase ^Gn the year of our Lord in connection with his reign, in 879. Annus Mirabilis (The year of wonders). — A year (1666) noted for the plague, and the great fire in London, and the English victory over the Dutch — the subject of a poem by John Dryden. April.— The Romans gave the name Aprilis to the fourth month. It is derived from the verb aperire ^Go open,^^ perhaps because the buds began to open at this season. The custom of play¬ ing little tricks on the first day of this month is almost universal. It is believed that the custom spread to England and Germany from France, but its origin is doubtful. Arbor Day.— A day set apart with the object of restoring forest trees. It was first recommended by Gov. Morton, of Nebraska, to raise a barrier of trees to protect the land from the winds of west and south. Most of the states have legalized the holiday. The public schools have fostered the idea. Ash Wednesday.— The first day of Lent; so called from the religious custom of strewing ashes on the head as a sign of penitence. Bartholomew Fair.— Originally the great cloth fair or market of the kingdom. Held annually on St. Bartholomew’s Day at Smith- field, London, until 1840, then removed to Islington, where it ceased to exist in 1855. Black Friday.— (i.) In England, Good Friday is so called because on that day the vestments of the clergy are black. 2. Also in England, Dec. 6, 1745, the day on which news reached London that Charles Edward, the Young Pretender, had reached Derby. Another Black Friday in England was the day of the great commercial panic caused by the failure of the banking house of Overend and Gurney, May ii, 1866. In New York, a memorable Black Friday was Sept. 24, 1869, when a great panic was caused by reckless gold speculation in New York City. Calendar-Amendment Act.— In 1751 an act of British Parlia¬ ment was passed, to take effect in 1752, which made some changes in the mode of reckoning time. January i, 1752, was made the begin ning of the year, instead of March 25 or Lady Day. The ii days excess was gotten rid of by making Sept. 3, 1752, the 14th. It is also known as Lord Chesterfield’s Act. BUSINESS AND COMMERCE 93 Candlemas Day (F^b. 2).— To commemorate the purification of the Virgin. Carnival.— A season of revelry, masquerading, and buffoonery in Italy, which in modern times is restricted to the eight days before Ash Wednesday. Originally it began on the feast of Epiphany or Twelfth Day — January 6 — and ended on Shrove or Pancake Tuesday (Lent). During the middle ages, banquets of rieh meats and drinking bouts were the chief attractions. Carnivals are widely held in Ger¬ many, in the eities of the Rhine provinees; in the south of France, and throughout Italy. In these sections and also in Venice the Car¬ nival is still a popular festival. At Rome, on the oceasion of a carni¬ val, the streets are en fete^ and much fun and entertaining frolie mark the eelebration. ✓ Century (Latin, centiirid). — A term, in our day, mostly used to denote a period of 100 years. In Roman times, the term indicated a civil division of the people formed for the purpose of voting; it also meant a company of 100 men {centtnn^ a hundred) in the Roman army, or a division consisting originally of a hundred. As used to denote a period of time (a 100 years), we have come to reckon a century (such, for instance, as the 19th century), as beginning with Jan. i, 1801, and ending Dec. 31, 1900. In common speech, we also apply the period denoting a century to cover a 100 3^ears of literature, of art, of music, of missionary work, as well as of history, polities, the Chris¬ tian centuries, in contrast with the earlier era before the birth of Christ. The latter we indicate by the letters B. C. (before Christ) or A. D. (Anno Domini) in the year of our Lord. The term is known also in botany, in the case of the Agave or Century plant, formerly supposed to flower but once in a 100 years. Chinese Year.— The year is lunar, each month coming in with the new moon. The difference between the lunar and solar year is made up by adding one month in every thirty. The greatest feast is New Year’s Day, which may fall on any day between January 21 and February 28. The festival lasts three or four days. Visits are exchanged, all debts paid up, if possible. If a Chinaman is insolvent he appears before his ereditors upon the New Year’s Day and states the faet, when all debts are discharged. The fifth day of the fifth month is the dragon festival. The fifteenth da)^ of the eighth month is a moon festival, corresponding somewhat to the harvest moon. The Winter solstice, or December 21, is an official holiday when the Emperor is worshiped. The birthday of the Emperor is a compul¬ sory holiday of rejoicing, while that of the Dowager Empress is an official holiday only. 94 BUSINESS AND COMMERCE Christmas (Dec. 25).— The day on which the nativity of Jesus Christ is observed. The real date of our Lord’s birth is not known; by the Eastern Church, Jan. 6 was held in commemoration as that both of the birth and the baptism^of Christ; but later on (in the 4th century), the date adopted was that which we now commemorate, the observance being ascribed first to Julius, bishop of Rome. The fes¬ tival of Christmas was celebrated with great feasts alike by Romans, Celts, and Germans, Yule-tide being a season of rejoicing. The heathen elements of the festival were gradually dropped, as the Church sought to introduce, in lieu of them, its liturgy and the ritual adopted by both the Roman and Anglican (Protestant) Episcopal churches. To add to the church ritual devised for''the season came the Christ¬ mas carols and manger songs, and such customs as are now con¬ nected with the day socially, with its family reunions, feasts, and gifts. The Christmas tree, with its lights, hanging toys, and Santa Claus visits, as a' festival of St. Nicholas dear to childhood’s days, are additional features of the season which almost all the world now com¬ memorates, to which has to be added ^Ghe Christmas-box^^ — the money^gifts distributed among children, servants, employees, and the poor and needy on the glad return of the day. Clock. — A machine for measuring and marking the flight of time. In early times, the sun-dial was the apparatus in common use for registering the progress of the sun through the sky by a shadow cast upon a graduated plate. This, however, was useless at night and on cloudy days. The hour-glass was another early contrivance. With the invention of the escapement and the regulation of its action by means of a pendulum, the construction of clocks may be said to begin. We owe the idea of a pendulum clock to Huyghens, a Dutch physi¬ cist, who set the escapement or crown wheel horizontal, whith had hitherto been set vertical, and attached the pallets to the horizontal rod from which the pendulum hung. In large-sized clocks, the mov¬ ing power is a raised weight; in chronometers, watches, and small clocks, the power is derived from a coiled, elastic, highly tempered spring. In the former, the weight in descending, and in the latter, the spring in uncoiling, sets a cylinder in rotation, and this rotary motion is transmitted through wheels and pinions to the hands on the dial-plate, which by their motion indicate the hours, minutes, and seconds. In both cases, the motive power must be properly regulated so as to indicate accurate time. When the nioving power is a main¬ spring (contained in a cylindrical box) the motion is regulated by the escapement and balance-wheel, and for greater accuracy by a contriv¬ ance known as the fusee. The varieties of clocks, chronometers, and BUSINESS AND COMMERCE 95 watches are now many and varied; the striking- clock is familiar to everyone, and is fitted with a bell struck by a hammer at certain equal intervals, generally an hour. Driving clocks, electric clocks, and musical clocks are other types and fashions of time-pieces familiar to us to-day. Corpus Christi Day.— A festival of the Roman Church, in honor ot the Consecrated Host. Curfew (Fr. cotLvre-feii^ cover fire).— The evening hour when, according to an old English custom, the people were notified, by the ringing of a bell, to cover up their fires, extinguish lights, and retire for the night. The practice is referred to in many English poems, in a lyric of Longfellow’s, and especially in the first line of Gray’s Elegy — <) 8 3 States and Territories Interest Laws Statutes of Limitations Legal Rate Rate Allowed by Contract Judg¬ ments, Years Notes, Years Open Ac¬ counts, Years Nebraska. Per ct. 7 Per ct. 10 5 « 5 4 Nevada. 7 Any rate 6 6 4 N. Hampshire. 6 6 20 6 6 New Jersey ... 6 6 20 6 6 New Mexico... 6 , 12 7 6 4 New York. 6 6tt 20 ( t ') 6 6§§ North Carolina 6 6 10 3* 3 North Dakota. 7 12 10 6 Ohio.. 6 8 15 6 Oklahoma. 7 12 5i^) 5 3 Oregon. 6 10 10 6 6 Pennsylvania . 6 6 5 (/) 6|| 6 Rhode Island.. 6§ Any rate 20 6 6 South Carolina 7 8 10 6 6 South Dakota. 7 12 io(/) 6 6 Tennessee. 6 Any rate 10 6 6 Texas. 6 10 I0« 4 2 Utah. 8 Any rate 8 6 4 Vermont. 6 6 8 6 6?^ Virginia . 6 6 20 5* 4 Washington... 7 12 6 6 3 West Virginia. 6 6 10 10 3 Wisconsin. 6 10 20 ( Z) 6 6 Wyoming. 8 12 5(*) 5 8 * Under seal, lo years, fif made in state, if outside, 2 years. jNo law and no decision regarding judgments. §Unle.ss a different rate is expressly stipulated. (|Under seal, 20 years. ^Store accounts, other accounts 3 years. ffNew York has by a recent law legalized any rate of interest on call loans of $5,000 or upward, on collateral security. JjBecomes dormant, but maybe revived. §§Six years from last item, (a) Accounts between merchants 2 years. (6) In courts not of record, 5 years, (d) Twenty years in Courts of Record ; in Justice’s Court 10 years, (e) Negotiable notes 6 years, non-negotiable 17 years. (A) Ceases to be a lien after that period. (/^) On foreign judgments i year, (z) Is a lien on real estate for only 10 years, (j) Any rate, but only 6 per cent, can be collected at law. (>^) And indefinitely by having execution issue every 5 years. (/) Ten years foreign, 20 years domestic. SIMPLE INTEREST TABLE (Showing at different Rates the Interest on $i from i Month to i Year, and on $100 from i Day to i Year.' Time 4 Per Cent 5 Per Cent 6 PER Cent 7 Per Cent 8 Per Cent Dollars Cents Mills Dollars Cents Mills Dollars Cents Mills Dollars Cents Mills Dollars 1 Cents Mills One Dollar I month. 3 4 , , 5 , , 5 6 2 “ . . . 7 8 I I I I 3 i i 3 “ . I I I 3 I 5 I 7 2 6 “ . 2 . . 2 5 3 3 5 4 12 “ . 4 . . 5 6 , . 7 8 One Hundred Dollars i day. i I 1 3 I 6 I 9 2 2 it “ 2 " . 2 2 2 7 3 2 3 8 4 4 t “ 3 “ . 3 4 4 , I .5 . . 5 8 6 7 i< 4 . 4 5 .5 3 6 6 7 7 8 9 ii 5 y 5 6 6 9 8 2 9 7 II I 4t “ 6 “ . 6 7 8 3 10 11 6 13 3 ti “ I mouth. 33 4 41 6 50 58 3 66 7 “ 2 “ . 66 7 83 2 I . . I 16 6 I 33 3 “ 3 “ I I 25 I 50 I 75 2 . . . . “ 6 “ . 2 . . . . 2 50 3 . • 3 50 4 • • (( 12 “ . 4 5 , . 6 . . 7 , . , , 8 , , BUSINESS AND COMMERCE I 2 I COMPOUND INTEREST TABLE COMPOUND interest OP ONE DOEEAR FOR loo YEARS. Am't Years Per cent. Accumulation Am’t Years Per cent. Accumulation Am’t Years Per cent. Accumulation $I lOO I $2.70,5 $i 100 4/4 $ 81.58,9 $i 100 10 $ 13,780.66 I lOO 2 7 - 24,5 I 100 5 131-50,1 I 100 II 34,064.34,6 I lOO 2^ 11.81,4 I 100 6 339.30,5 I 100 12 83,521.82,7 I lOO 3 , ig.2i,8 I 100 7 867.72,1 I 100 15 1,174,302.40 I lOO 3 ^ 31.19,1 I 100 8 2,199.78,4 I 100 18 15,424,106.40 I loo 4 50.50,4 I TOO 9 5,529.04,4 I 100 24 2,198,720, 200 YEARS IN WHICH A GIVEN AMOUNT WILL DOUBLE AT SEVERAL RATES OF INTEREST Rate At Simple Interest At Compound interest RATE At Simple Interest At Compound Interest Compounded Yearly Compounded Semi-Annu¬ ally Compounded Quarterly Compounded Yearly Compounded Semi-Annu¬ ally Compounded Quarterly I 100 years 69.660 / 69.487 69.237 6 16.67 11.896 11.725 11.639 66.66 46.556 46.382 46.297 654 15-38 11.007 .10.836 1,0.750 2 50.00 35.003 34-830 34.743 7 , 14.29 10.245 10.074 9.966 2^ 40.00 28.071 27.899 27.748 754 13-33 9-584 9.414 9.328 3 33-33 23.450 23.278 23.191 8 12.50 9.006 8.837 8.751 3 ^ 28.57 20.149 19.977 19.890 854 11.76 8.497 8.327 8.241 4 25.00 17.673 17.501 17.415 9 II.II ■ 8.043 7.874 7.788 4/4 22.22 15-747 15-576 15-490 954 10.52 7.638 7.468 7-383 5 20.00 14.207 14-035 13-949 10 10.00 7-273 7.103 7.018 554 18.18 12.942 12.775 12.689 12 8.34 6.I16 5-948 5.862 Intestacy. —•The state of a person who has died without leaving a will. Every person has the right, as one of the incidents of owner¬ ship, to regulate the succession of his property after his death. In all places the principle is th^t if no will or deed equivalent to a will is executed, or if a will executed is invalid from defect of form, an intestacy follows and the law provides an heir or next of kin in lieu of the owner himself doing so. In Transitu (Latin). — In transit. Inventory. — A list of goods and merchandise on hand. Joint Tenants. — Those who have a unity of time, title, and pos¬ session in real property. Judgment. — A judicial decree. Landlord and Tenant. — A landlord is one who owns real estate; a tenant is one who hires such real estate and adapts it to his own personal use for a monetary consideration called rent. In such a bargain the tenant is liable for all taxes unless it is otherwise stated in the lease. Leases for a year or less may be verbal, but those for a longer period must be in writing and under seal. All leases should be duplicated; one to be retained by the landlord, the other by the tenant. A tenant can sublet the property so hired, or any portion of it, unless the lease expressly forbids it, but a sub-tenant cannot underlet because a new lease invalidates a former one. 122 LAW OF BUSINESS, THE Controversies of Business Grow out of Simple Affairs — Agreements Should RE Put in Writing and Dated — Husbands and Wives Cannot be Witnesses FOR Each Other — Wills Should be Written in Plain, Simple Language — Powers of Attorney—Care in Preparation of Business Papers — The Laws OF Business—Statute oP'Frauds and Statute delimitations — Minors under the Law — Necessity of Knowing Authority of Agents before Transacting Business — Law for Descent of Real Estate — The Orphan’s Court — Per¬ sonal Rancor in Lawsuits Deprecated by Attorneys — Arbitrating Lawsuits. # P ROBABLY the first thing that strongly impresses a woman new to business is the frequency with which simple matters, plainly understood at the time they were talked about, turn out in the end to be neither simple nor understood. Such a woman is likely to be surprised that there shoulij afterward be any question about the matter, and almost sure to be indignant that her recollection or un¬ derstanding is disputed by the other party. If she only knew, this is her opportunity for a display of that sweet reasonableness which is at once the grace of humanity and the salt and savor of the law. For a woman who has, or is likely ,to have, business to transact, should learn, in the beginning, that the controversies of business life grow largely out of affairs so easy to comprehend, and so quickly agreed upon, that neither speech nor memory is greatly burdened with them at the time they are supposed to become fixed or settled. A difficult or complex matter is almost sure, at some stage of its dis¬ cussion, to become the subject of a written instrument, whether a letter, a memorandum, or a formal statement. But the little things of business life, as they are assumed to be at the time, are put off with mere word of mouth agreements, subject to all the risks of de¬ fective speech and defective memory. An oral agreement between two persons of legal capacity is, in law, binding upon both; but the law looks beyond the mere words proved to be used, to see if the minds of the parties met, as well as their tongues. For if the mind of one party meant one thing, and the mind of the other meant some¬ thing else, the supposed unity of speech goes for nothing. A lot owner and a builder may orally agree upon the full interior details of a three-story dwelling; but if, all of the time, the mind of the owner was upon an opulent stone front, and that of the builder upon a mod- BUSINESS AND COMMERCE 123 est brick structure, there never was an agreement to build the house for the price agreed. In such a case, the owner must be content with a brick front, or pay the greater value of a stone front. The safe rule of business conduct is to put into writing any agree¬ ment or understanding not immediately to be executed. The writing need not be formal in arrangement or language. For most of the purposes of business life, a pencil memorandum, in common, every¬ day language, is as good as anything. But it should be signed by the parties, and every written paper should be dated. A long chapter might be written upon the importance of dating every piece of business writing, whatever its character or form. A hastily written signature may afterward become doubtful to the writer of it, or to those familiar with his handwriting. Therefore, every signed business paper amounting to an agreement to do, or not do, something should, when convenient, bear-also the signature of at least one witness. The witness need not see the paper signed; it is enough if, at any time after the signing, the parties or the party against whom the paper is intended as a safeguard, acknowledge or acknowledges that they, or he, or she, executed the paper. The wit¬ ness, identifying his own signature, proves the genuineness of the paper, and the contents of the paper prove the agreement. It happens sometimes, by accident, oversight, mistake, or fraud, that a written and signed paper does not express the true intention of the signer. As an agreement consists in the mutual agreement of the parties — that is, in the coming together of their minds at the same time upon the same subject — the law, upon due proof, will make the paper read as it ought to read. In view of this long discourse, it is almost unnecessary to say a word upon the advisability of preserving all business writings for at least three or four years after they have apparently ceased to have any importance. A very common experience of business life is to suddenly discover the value of a writing after it has gone to the waste-basket as useless. After all, a great proportion of matters of business must unavoid¬ ably rest upon merely oral communications between the parties concerned. If the parties subsequently disagree as to what their agree¬ ment was, no great harm is done so long as they do not waste time and money in litigation over the disputed agreement. In law, and in the absence of an agreement, nobody can claim, or be made liable for, more than the fair, current value of the thing supplied or the service performed. Written agreements have a special importance where a married woman is concerned. For in a dispute with an outside party over an oral agreement, she cannot be a witness for 124 BUSINESS AND COMMERCE her husband, nor he for her; and unless his or her testimony is strongly supported by eircumstanees that sustain the testimony, the contrary testimony of the other party may destroy the efficacy of the testimony given by the husband; or by the wife, if the case be her own. A serious mistake often made by persons unused to important matters of business, is to destroy some memorandum hastily or roughly written, perhaps on a ragged or scrappy bit of paper, after replacing it by a carefully written substitute on a fresh sheet of paper. But the destroyed paper was the original writing, and its destruction tends to cast doubt upon the integrity or the accuracy of the copy or substitute. All that has now been said concerning writings and agreements is to be understood as applying to business matters and to transac¬ tions of every kind, without repetition hereinafter. That even an experienced woman of business should personally draw up deeds of real estate, wills, building contracts, partnership agreements, statements of complex accounts, papers to be used in court proceedings, or other documents requiring expert knowledge or technical arrangement or expression, is not to be expected and hardly to be desired. But any intelligent woman who can write, can put into writing a plain informal statement of anything she wishes or that she agrees to do, or to have done, or wishes to have somebody else do or not do, or agree upon, and such a writing, properly signed or otherwise afterward proved, will usually enable the proper court to give effect to the intention of the writing. But here a special caution is needed respecting writings intended to operate as wills. A will does not take effect until the person who made it is dead, and,, therefore, unable to amend or alter it. Very often, the contents of a will do not become known to others until after the death of the maker. Courts are very liberal in giving effect to wills, for the reason that the makers have passed beyond self-help or help from others. But no court can give effect to a will that directs an unlaw¬ ful or impossible disposition of property, or that does not conform to the formalities required by the law of the place where the will is to operate, or which is so uncertain that the true intention of the maker is left in doubt. Yet a lawfully executed will is good as to those provisions of it that can be understood and law¬ fully effected, though other parts rnay fail because of incurable defects. When there is both time and opportunity, a will should be written in language so full as to leave no doubt of its meaning. It should be dated and should be signed by the maker. If unable, or too BUSINESS AND COMMERCE 1^5 weak, to write, the maker can sign by touching the pen with which another person makes a cross mark for the signature. Not less than three persons should sign a statement written below the will, to the effect that the maker declared the foregoing writing to be his or her last will and testament, in testimony whereof the witness has signed the statement in presence of the maker. Against the maker’s signature should be a seal of some kind, as a wafer; or, failing that, a small piece of paper gummed to the written sheet; or, failing that, a scroll made on the sheet with pen and ink. In case all of these described formalities cannot be effected,. they should be followed as far and as closely as possible. Wills often have many antiquated, fanciful, and wasteful begin¬ nings. A good and sufficient beginning may be like_ this — /, Mrs. Mary J. Smithy of Auburn^ in the State of New York^ do make this my last will and testanmit^ this fourteenth day of October., igo2. All that follows, down to the signature and seal, may be strictly devoted to business. When a will apparently favors or disfavors some beneficiary, it is well to make a short statement of the reason for the discrimination. Wills often fail because the maker has sought to control the disposition or management of the property for too long a time, or has sought to have it go this way or that way, according to a multitude of things that may never happen, or has sought to tie up the property for an excessive or indefinite time, in order that it may greatly increase, and ultimately go to persons unborn. When the maker of a will has arranged it accord¬ ing to living persons, and their children — born or yet to be born — he or she has done all that duty or affection requires, and about all that can be safely attempted. It is also unwise to fence the gifts of a will about with unusual or overstrict conditions. In the eye of the law, this world and its belongings are for the living, and the dead are not permitted to inflict injury or tyranny upon it. Connected with the subject of wills, is the practice of writing in the pass-book of a savings bank a direction to pay the amount of the deposit to a particular person, in case of the death of the holder. Such a writing is either a bank check, in which case it is revoked by the death of the maker, or it is a will, in which case it must conform to the law of wills as to execution and subsequent proof. If, in expectation of death, the owner of the pass-book makes a gift and delivery of it, such gift and delivery will pass a good title to the deposit without any writing; but if a writing be put in a book, it should mention the gift and delivery, and the expectation of death then entertained by the giver. BUSINESS AND COMMERCE I 26 Any other personal property may be given and delivered in the same way, and the delivery may consist in telling the beneficiary where the article is, and in authorizing him or her to take possession of it either immediately or when the expected death occurs. The recovery of-the giver from the supposed mortal sickness revokes all such gifts. Promissory notes are familiar by sight to everybody brought into contact with business, and blank notes are among the commonest of printed forms; so that but little needs to be said about them. If the person who is named as the beneficiary of one wishes to pass it to another owner, he writes his name on the back, which is called endors¬ ing it. This makes him responsible for its paym.ent at maturity, if the maker fails to pay and the endorser is promptly notified. But the holder of a note who endorses it only to transfer the title to it, may escape liability for its non-payment by writing, before or after his signature on the back, the words Without Recourse. When a promissory note does not state any time at which it is to be paid, it is due from the moment of its delivery by the maker. Sometimes the maker of a note does not wish it to be negotiable ; that is, capable of being transferred from one person to another by delivery. In that case, he makes it pa3^able simply to John Smith, instead of to John Smith or order, or to the order of John Smith. By so making it non-negotiable, he can set up against any holder of it the same objections or defenses against payment that he could have raised against John Smith, if the latter had retained the ownership of it. When a mere written acknowledgment of a debt is all that a creditor desires or needs, the debtor can give it this form: /. O. U. Fifty. Dollars^ November /y, igoi. To this brief acknowledgment he signs his name and then he owes the money to whoever is in lawful possession of the so-called I. O. U. This is an improvement upon the promissory note — for the debtor. There is no promise to pay the debt, nor any time or place mentioned for payment, nor any admis¬ sion that the debt is based upon value received. The paper is pre¬ sumptive evidence of the debt, and puts upon the signer the burden of proving that he does not owe the debt, if he disputes it. As to all business writings, it may be remarked that every such paper should show the place where it originated; the date when written; the person from whom it proceeds; the character in which he issues it — whether personal or official, in his own right, or as an agent, attorney, or trustee, for another; his customary address or location; the name, quality, and location, of the person to whom issued or for whom intended, and the object or occasion for making it. Some BUSINESS AND COMMERCE 127 of these particulars must, of necessity, be expressly stated, while others may be plainly inferred from the whole contents of the paper, and need not be expressly mentioned. These remarks apply to a brief, informal memorandum, to a formally addressed and arranged letter, and so upward in the scale to a legal deed of conveyance. A word may be added regarding the signature of papers. Some writings require to be subscribed — that is, signed at the end, and it is customary and advisable so to sign all papers; but even a prom¬ issory note that reads /, John Smithy promise to pay, is legally signed if John Smith wrote his name, and a signature by initials is good unless the law otherwise provides. ^ Mistakes are sometimes made in the given names of persons, or in the initials of their given names, or in the spelling of their surnames. Such mistakes may cause trouble or inconvenience, but are of no other consequence if the person meant can be iden¬ tified beyond reasonable doubt, for names are but ear-marks in law, to distinguish one person from another. If Mary Bowen is called Mary Brown in a check, draft, or note, she first endorses it as Mary Brown, and then in her true name. If in a deed that has been recorded and not corrected, then in her own subsequent deed she may be described as Mary Bowen, sometimes called Mary Brown. So much has been said in favor of the use of printed forms for business purposes, that a short list of the blanks most likely to be needed for business of one sort or another, is sure to be acceptable. In small towns or villages, where they are not kept in stock, the local booksellers can procure them as needed. Forms Relating to Real Estate. — Bill of sale; builder’s agree¬ ment; builder’s bond, with surety, for execution of agreement; deed, full title, or quit claim; leases, monthly or by the year, or term of years; mining deed; mortgage; notice to tenant to quit; promissory note, secured by mortgage, and same with separate notes for interest; release of mortgage. Forms Relating to Personal Property. — Assignment of interest in patent or invention; bill of sale; mortgage of household fur¬ niture, store fixtures, stock, farm utensils, or other movable property; promissory notes, unsecured, or secured by mortgage of movable prop¬ erty or by deposit of securities; release of mortgage. General Forms, Applicable to Real Estate, Personal Property, OR TO Mere Personal Relations or Responsibility. — Affidavit, agree¬ ment, assignment, bill of sale, bond, employee’s bond, power of attor¬ ney, receipt, will. A collection of these forms, fastened together and kept at hand, would be a ready aid to business required to be put into writing, and 128 BUSINESS AND COMMERCE a study of any of the forms, in such a way as to bring before the mind each and all of its provisions, would certainly sharpen the busi¬ ness faculty. There is a class of books that may be designated under the title of Every Man His Own Lawyer, that are more useful to lawyers than to others; but which have their usefulness in business, so long as the inexperienced do .not attempt to be exclusively their own lawyers in matters of importance or complexity. One of these publications stands so far above the rest as to warrant a particular mention of it. That is the little book entitled The Laws of Business, by the late Pro¬ fessor Parsons, one of the great names in American jurisprudence. Things, as well as persons, are under the law; wherefore, in buying lands, or stocks, or bonds, for an investment, or in lending upon the security of them, it is always needful to know the leading provisions of the law that applies to them. If this be disregarded, loss or vexation may unexpectedly follow. For example, to lend money at seven per cent., where the legal rate is limited to six per cent., may cause the loss of all the interest and, in some places, of the whole of the sum lent. This is but one of many possible illus¬ trations of the necessity of doing things according to law, as well as according to the agreement of the parties. An express agreement is a special law made by the parties for themselves, but their special law must he made within the limits of the general law and must not pass its bounds. The general law expresses the public will and de¬ fines the public interest, and when private and public policy conflict, the latter overrides the former. Every business transaction is legally assumed to be founded upon a contract, but in fact, the majority of business transactions occur without any express or prior agreement. In every such case, the law infers an agreement to pay the reason¬ able value of services rendered or of supplies furnished, and because of this sensible view of the law, the world is enabled to live and to move in a rational and diligent way. Two notable laws that bear directly on business relations are those respectively known as the Statute of Frauds and the Statute of Limitations. The object of the first is to lessen misunderstandings and perjuries by requiring all agreements affecting real estate, or personal property exceeding fifty dollars in value, to be put into some form of writing; though as to personal property, the payment of money to bind the bargain, or the delivery and acceptance of the goods, or part of the goods, dispenses with the writing. The object of the second law is to compel the bringing of lawsuits within such reasonable time after the occasion for bringing them arises that the defendants may not be put to unjust inconvenience or loss by the BUSINESS AND COMMERCE 129 failure of memory, the death of witnesses, and the disappearance or destruction of papers. These statutes have been in operation in both England and the United States for some three centuries, and have so woven themselves into the web of business life that * persons who have never heard their names, or who are unacquainted with* their provisions, in transacting business unconsciously conform to their requirements. The popular expectancy that a business agreement, not to be instantly executed, is to be put into writing, as a matter of course, arises not so much from the universality of writing in these days, as from the long-molded habit resulting from the Statute of Frauds. So, when a client consults a lawyer about bringing suit on a matter some ten years old, or thereabouts, and is advised that the case is barred,— that the claimant has waited too long,— there is less surprise than disappointment felt; because for three centuries, nearly, the Statute of Limitations has been at work; and, though the client may have had no prior occasion for direct knowledge of it, he has known and for the time forgotten, of cases of others that, like his own, had become barred by lapse of time. Both statutes have been much amended, by additions needed to fit them to modern and existing conditions of life; but these are nothing by comparison with the indirect alterations made by eourts, in osten¬ sibly applying the statutes to the cases before them. Let us suppose that a grocer, having an old and profitable stand, but whose business has outgrown its aecommodations, makes an oral agreement with the owner of the next door premises for a long lease of them. The par¬ ties have confidence in each other; the grocer is in a hurry, and, with the consent of the other party, proceeds to pull down the partition and to fit up and stock the annexed premises. Then the owner, thinking that he has the grocer shaekled, tells the latter that he has changed his mind about leasing the premises to him upon the terms agreed, and offers him the alternative of getting out or of paying an extortionate price for a new agreement. According to the language of the Statute of Frauds, the grocer is without remedy. He knows that the law required him to take a written agreement from his tor¬ mentor, and he knows that a court has no power to change or to ignore the law. But the court knows more than the grocer. Though the king and Parliament, that made the law, have been dead for cen¬ turies, and in their lifetime never uttered a word outside of the stat¬ ute itself, the judge gravely declares this to be a case to which they did not intend the statute to apply. So the grocer gets his lease; the owner gets his proper rent, but pays the cost of the lawsuit; the statute continues to flourish; the court has administered the law with- 13—9 130 BUSINESS AND COMMERCE out presuming to touch a hair of it, and one more is added to the innumerable cases outside the statute. There has been the like experience with the Statute of Limitations. A new promise to pay an old debt, or a payment on account of an old debt, or fraud practised by the debtor upon the creditor, are among the more familiar circumstances that take a case out of the statute. In the popular estimation, it is dishonorable to plead the statute against an otherwise honest debt, and this is true in many cases. For a long time the popular view was shared by both English and American judges, who grasped at the most trivial circumstances as sufficient to take a case ^^out of the statute and to allow it to be heard on its merits. But in 1828, that great jurist. Justice Story, in delivering a judgment of the United States Supreme Court, spoke strongly in favor of the law as a statute of repose, a wise and bene¬ ficial law, intended to encourage speedy settlements of accounts, and to afford security against stale demands, the merits of which had be¬ come lost to knowledge by lapse of time. If a dilatory creditor sometimes lost an honest claim, it was entirely his own fault; but there was no fault in the greater number of innocent men, for whom the statute stood as a shield against fraud and perjury. This view of the law is that now held by the courts of both countries. Except in a very plain case, it is impracticable for an inexperienced person to judge whether a particular matter does or does not come under the Statute of Frauds or of Limitations. The question is one for a lawyer, and he is not likely to, give an off-hand opinion about it. All that can be said in the way of general usefulness is that the two statutes are in force; that the tendency of the courts is to enforce them, and that in a doubtful matter, the case is most likely to be held as within the statute, and not one of the exceptions to it. Some classes of people are under legal disability to enter into business engagements that bind them, though the other party to such a transaction may be bound. Minors are the most numerous class. In some places full age is attained at eighteen; in others riot until twenty-one years. A person may be of full age for some purposes and not for other purposes. In some places, marriage hastens the attain¬ ment of full age, and in others it does not. In transacting important business, anywhere, a prime requisite is to know the law of the place. For that which is necessary to support health or education, a minor can make a binding agreement, but as to other things, he may con¬ firm or repudiate, as he pleases, after he becomes of age. Married women are under the same disability as are minors, ex¬ cept when dealing with their own separate property, as to which the law now places them on the footing of single women. BUSINESS AND COMMERCE 131 Insane persons, including idiots, are of course under disability, and as insanity is much on the increase, this is a matter that persons transacting important business must always have in mind. The most difficult case is that of an insane person who experiences intervals of sanity, because what is done in such intervals is good in laW, Rights of married women, minors, and absent persons, which otherwise would be barred by the law of limitations, are preserved for them till the wives become single, the minors of full age, and the absent persons have returned; and then, for the first time, the term of three, five, or more years granted by the law for the bring¬ ing of actions begins to run. When it has begun to run it continues, even if a widow remarries; if a girl, lately become of age, takes a husband; or if the returned absentee goes away again. Adverse possession of real estate for twenty years usually gives a good title to the possessor. But if the rival claimant out of posses¬ sion be a married woman, and she dies in wedlock, leaving as her heir a daughter under age, who marries during minority, and who dies and leaves a minor as her heir, the party in possession may be lawfully attached half a century or more after his title seems to be good. This would be a rare and an extreme case, but such cases do now and then occur. The title and the possession of real or personal property is often put in the care of a trustee, for the benefit of some other person, in whom, for one cause or another, it is not practicable, or safe, or de¬ sirable, to put the direct title or possession. So long as the trustee is diligent and faithful, the beneficiary’s interests are in a good state, and the law is very sharp in holding trustees to their duties. Never¬ theless, there are many and serious losses from negligence or abuse of trusts. Where the property put in trust is of considerable value, the best trustee to choose is one of the large financial corporations known as trust companies. They are legally empowered to act as trustee, administrator, or executor, and, as a rule, they are financially sounder, and better able to take care of a trust, or an estate, than are individuals. They are especially safe and useful for women having property interests important to themselves, or intrinsically large. Their business is so organized and conducted that they can, and will, look after small properties and large properties with equal diligence and success, and, as much of their business comes from the property interests of women and children, it is particularly agreeable for women to do business with them. Safety, speed, and comfort is a railway and steamship motto that could readily be applied to business done with trust companies. They are at once trustees, agents, attorneys, administrators, executors, guardians, savings banks, 132 BUSINESS AND COMMERCE deposits banks, storage warehousemen; real estate, mortgage, stock and bond investors for customers, and a multitude of other things in a financial and business way. Some people who live on the in¬ come of investments, put their whole capital in charge of a trust company, and cheerfully pay the reasonable charges for the safety, convenience, and profit of such an arrangement. The business transactions of life are conducted to an astonishing extent by or with persons who, because they do not act for them¬ selves, are of necessity, and in law, agents. This is true of the domestic servant who goes to the grocery for supplies to be charged to her employer, of the saleswoman or clerk in a store or commercial house, of the conductor of a railway train, of the head of an execu¬ tive department at the national capital and of such a multitude of persons and corporations, in such a variety of circumstances, that the human mind could not conceive or contain them all. And in the business experiences of a life, the losses and disappointments due to the failure of principles to confirm or to execute the agreements or arrangements of their agents, make a large and somber figure. Hence the supreme importance, in both great and little things, of what is now to be stated: namely, that whoever deals with another person, knowing or having reasonable cause to know that person to be acting for somebody else, whether an individual, an association, a corporation, or a government, is legally bound to ascertain the nature and extent of the authority of that agent before closing with him. No individual, association, corporation, or government can always act directly for himself or itself; therefore, he or it must sometimes act through agents. It is impossible that he or it could anticipate all that an agent may say or do, but it is possible for a person deal¬ ing with that agent to find out what the principal has authorized him to say or to do in the particular matter. Wherefore the law, which is nothing more than commion sense formalized, puts upon the proper party the responsibility of inquiring into that which could not be known without inquiry. Of course, if the agent chooses to act as a principal, and is financially good, the real principal may be disre¬ garded. When the owner of real estate dies without making a will, the law of the place comes into operation, and directs how and to whom the title and possession shall descend. The law of descent is not uniform throughout the United States; but, in general, it provides that one-third shall go to the widow for life, and the rest in equal shares to children; the children of any deceased child taking what would have been their parent’s share. If the lately deceased owner of the real estate was a wife, and children have been born of the BUvSINESS AND COMMERCE 133 marriage, then the husband gets the whole for his life, after which it goes equally to the children. Where there are no children, or descendants of children, the real estate goes to the brothers and sisters of the last owner, and to their descendants. If that line of inheritance fails, the law goes up to the father of the last owner and gives the property to his brothers and sisters and to their descendants. But if the real estate came to the \ last owner through his or her, mother’s side, then it goes to the brothers and sisters of the mother and to their descendants. The law for the descent of real estate not disposed of by will is so voluminous that no useful purpose could be served by following it out here. The principle of the law is to give the estate to those of the blood of the last owner; the downward line having precedence of the upward; those nearest being preferred to those more distantly connected, and those tracing their connection through fathers being preferred to those tracing through mothers, except when the estate came through the mother’s line. On a total failure of blood rela¬ tionship, and when there is no surviving husband ♦ or wife, the property goes to the state. Every state and territory of the Union has a perfectly just and reasonable law for the disposition of real estate not disposed of by will of the last owner. So that if the owner of real estate has as many as three or four children, including the descendants of deceased children, and does not wish to give husband, widow, or any child any more than as above stated in describing the general law, then there is no necessity for a will of real estate. The law everywhere, too, provides for a just and reasonable dis¬ tribution of personal property not disposed of by will. The logical cause for making a will is the desire, the expediency, or the justice, of setting the law aside in the particular case, in order to make a special arrangement better suited to the circumstances of the case, either as they actually exist at the time the will is made, or as it is reasonably possible they may exist at the time the maker of the will dies. In the case of real estate not disposed of by will, the title and the right to possession pass instantly, by mere force of law, without any special proceedings, to those entitled, called the heirs at law. But devisees, being those to whom real estate is given by will, must establish the will in the court charged with the administration of estates of deceased persons. The same court also has charge of the interests of orphans under age appointing, supervising, and controlling the guard¬ ians of their person and property. The proceedings in these courts are usually less technical than in other courts, and the judges, and 134 BUSINESS AND COMMERCE clerks, of such courts, having widows and orphans for their habitual suitors, are accustomed to do much more of the work in a case than is customary in other courts, where lawyers are habitually employed. Under favoring circumstances, it is quite possible for an intelligent woman, with the customary aid of the court officials, to carry through the settlement of a large estate; but, as a general rule, it is better to have a lawyer for any estate amounting to as much as three thousand dollars. So strong is the feeling that widows and orphans are special objects of consideration, that lawyers of good standing usually charge less in an administration case than in other kinds of professional business. True, many estates are diminished, and even wasted, in the probate courts — as such courts are called — but that is because of the hatreds and contentions of the principal parties. The popular idea that lawyers are fomenters of litigation is known to be untrue by the lawyers themselves. Their experience of the delays, uncertainties, and expenses of legal contentions, puts them in a frame of mind to avoid or to shorten litigation; beside which, the more profitable part of a lawyer’s business is that which is done amicably. Where noth¬ ing is to be spent on a lawsuit, he can reasonably charge more for a special service. A lawyer in good practice, and of good repute, dreads nothing more than the bitterness and ardor of a family quarrel over property. Any such quarrel, fought out strenuously to the end, is very likely to leave the lawyer with far less pay for his labor than he ought reasonably to receive. Family lawsuits are often proper means for bringing the judicial machinery of the state to a solution of uncertainties and conflicting claims that the parties could not settle among themselves with satisfaction. But when the parties are person¬ ally inflamed against one another, the lawyers in the case, like other members of the community, are shocked by the display of unnatural feeling, and they sometimes come together, behind the backs of their clients, to concert means for moderating a fury that they cannot openly control. For a lawyer to promote or encourage personal rancor in parties to a lawsuit, would be to blacklist himself with the bench and bar, and next to doing well at his business, there is nothing a lawyer so much esteems as standing well with those who know him better than any client can know him. Newspaper accounts of legal proceedings concern themselves mostly with exceptional cases, and with the personal affairs of the less worthy members of the bar, so that the public gets but a partial, and a misleading, view of the prac¬ tical working of the law. Jurymen learn better, but a man with repute, talent, and leisure, enough to enlighten his fellow-citizens, shuns jury service whenever he can, and drops the whole business from his mind when a reluctant tour of jury duty is completed, BUSINESS AND COMMERCE 135 What has been said suggests a referenee to the device of arbitra¬ tion, as a substitute for law, in deciding controversies between parties who cannot settle their own dispute. An arbitration is quick, easy, and inexpensive, and, therefore, free of the ingrained qualities of a legal proceeding. Unless these merits are overbalanced by incurable defects, arbitration ought to displace legal procedure to a very ap¬ preciable extent; but it does nothing of the kind. In respect to pri¬ vate contentions, it makes hardly a ripple on the surface of litigation. A legal proceeding has its formal statements, technically called plead¬ ings, which bring out clearly the questions of fact, and the legal rights upon which the decision must turn in order to be rational and just. It has its rules of evidence, for proof of the facts, under which everything pertinent is admitted and everything irrelevant shut out. It has its learned and experienced advocates, on each side, to apply the evidence to the facts, and the facts to the right of the case. Dis¬ putes about the pleadings, the evidence, or the law of the case, are submitted to, argued before, and adjudged, by a man whose profes¬ sional training and life-work have especially fitted him to consider such questions intelligently and to decide them justly. Nearly every such question has arisen in prior cases, and whenever it has been dis¬ puted and argued to the utmost limit, there is an existing report of how it was decided, and of the reasons for the decisions, that aids in rightly deciding it again. If the case is to be first decided by a jury, the judge has prepared the jury for a right decision by admitting all the proper, and excluding all the improper, evidence; by reviewing the evidence, without suggesting what parts or witnesses to accept or reject, and by putting the law before the jurymen in such a way that their untrained intelligence may apply it to any conclusion they may come to about the facts. In short, all that the civilized world has learned, in thousands of years, about finding out -the truth and ap¬ plying it to the practical uses of justice, is drawn upon to do justice to the parties in a lawsuit. Arbitration, in the way it is commonly practised, omits all these numerous and important aids to doing what is required to be done. It acts upon the theory of inviting a highly esteemed tailor or shoemaker to conduct a chemical analysis, to repair the machinery of a watch, or to operate a steam-engine. When law¬ yers go to arbitration before a single arbitrator, they always choose a lawyer, so that they may have all the attainable advantages of legal procedure without actually going to litigation. If there be two or more arbitrators, they seek to have one of them a lawyer, to help get the dispute properly sighted, properly enlightened by proof, and prop¬ erly fitted to such principles of right and justice as apply everywhere, and that never change. Indeed, to go into an unsuitably prepared 136 BUSINESS AND COMMERCE arbitration is as bad as the preceding carelessness that, in a good half, or more, of the cases, is at the bottom of the calls for arbitration or litigation. In a case of any importance, the services of a lawyer are as much needed for an arbitration as for court proceedings. SUCC£ED IN LIFE INSURANCE By GAGE E. TAR BELL Second Vice-p*'esident Equitable Life Assurance Society T he life insurance solicitor is a salesman who offers to the public one of the finest commodities in the world. It is a commodity which protects widows and helpless children from suffering, and under our modern policies, gives to a man a guarantee that poverty, like a worm, will not eat the peace and comfort out of his last years. It provides the ideal method, devised and developed by long years of study and experience, by which a part of man’s virile and efficient present can be passed on to be his protection in enfeebled age, and also the protection of those dependent upon him when he answers the call of death. But closing our eyes, as we all like to do, to the picture of inevitable age and dissolu¬ tion, the life insurance policy will increase the plenty of a man’s coming days and add to the satisfaction of the present. The life insurance agent is the intermediary in this vital transaction between the present and the future. His visit to-day, and two days from now, and next week, may not be, in the rush of business, particularly welcome, but the time is likely to come when a matured policy will be a godsend, and the agent’s work will be justified to the utmost. The agent who is most successful is he who realizes this; who knows that he is not asking a favor of a man when he requests him to sign an insurance ap¬ plication, who possesses the confidence born of the knowledge that he is putting a far-reaching benefit in the way of the man whom he solicits. This agent is enthusiastic over life insurance, and he imparts his enthu¬ siasm to others. Enthusiasm! It is the great lever in our business, the potent element in the combination which unlocks the gateway to success. Enthusiasm generates energy; in a word, it is the quality which makes the difference of a place in the rank and file and a position at the top. Point out to me a successful man and I will point out one who loves his work and finds his happiness in it. BUSINESS AND COMMERCE 137 Yet, it is well to be more specific than this in attempting to indicate the road to success in the insurance business. I will suppose that a young man has been inspired with the right spirit and starts out to de¬ vote his life to insurance. In the first place, what are the possibilities of this industry — what can the worker hope for in the matter of pecun¬ iary reward ? If he is merely an average man, of fair ability and fair energy, he will be able to make, after he has gained some experience, about two thousand dollars a year. It is true that a prominent insurance official stated in a speech that the annual income of the average insur¬ ance agent was hardly a thousand dollars, but this is misleading, for the reason that there are many men throughout the country who solicit insurance as a side issue. Not devoting their entire time to the busi¬ ness, their earnings are naturally small. From the sum of two thousand dollars earned by the man in the ranks, the compensation of insurance agents reaches the amount of a hundred thousand dollars a year or more. The men whose incomes approximate the latter figure are generally agents who control many other agents in a large territory, receiving a percentage on the business of the latter, and at the same time writing much personal business There are a number of instances -of general agents soliciting personally two or three million dollars of insurance a year; in one or two cases the sum has reached to the amount of five mil¬ lion dollars. Some remarkably successful insurance men do not care to take general agencies, preferring to devote themselves exclusively to personal solicitation. The men who commend themselves to the companies for whom they solicit, hold the situation in their own hands; they can remain field-men, or active solicitors, if they so will, or they can have positions in the home office. The ablest men are made managers of agencies, instruct¬ ors of agents, superintendents of agents, and vice-presidents; occasion¬ ally one who has worked his way up from the bottom is called to the presidency of a society. All of the good men may be sure of berths for ( life. The company to which they have devoted their best years in earnest work will, in return, be loyal to them. For the man starting out without capital, with no resources but his brain and energy, I regard the insur¬ ance business as one of the most remunerative and satisfactory on earth. The Life Insurance field is not overcrowded as are the learned pro¬ fessions. There are probably fifty men who would take out insurance, if the matter were, brought to their attention in the right way, to one who is actually approached. Another important phase of the matter is that the agent’s material is constantly freshening. Every year, hun¬ dreds of thousands of young men are getting married and arriving at an age when they can be made to understand that insurance is a proper orovision for the future. At the same time, the hosts of men who have BUSINESS AND COMMERCE 138 already Deen insured offer a field which is still productive. They have been educated to the insurance idea; many of them are themselves enthu¬ siastic; as their incomes increase they want to take out more insurance. Competition is a minor factor in life insurance. The agent who first broaches insurance to a man and establishes himself on a friendly basis with him is almost always the one who gets the business. There are so many men to solicit that it is not necessary, and rarely pays, to attempt, to make some other agent’s prospect your own. Another advantage of the insurance business is that it cannot be hurt by industrial combina¬ tions, as is that of most other salesmen. Furthermore, the insurance man need not sit in an office and wait for business, as lawyers and doc¬ tors must. He makes his own work; whether it is little or great depends upon his own efforts. Enthusiasm, as I have said, is the steam within the boiler, but energy is the locomotive which carries the insurance man farther and farther along the railway of achievement. Energy counts for about ten times as much as brilliancy in insurance. The brilliant man cannot be a suc¬ cess without energy, while the energetic man can be, and often is, a great success without brilliancy. I am willing to say unhesitatingly to the young man of intelligence and energy: Go into the life insurance business. It is an occupation in which nothing depends upon luck or favor, but all upon yourself. The first move of the beginner is to call upon the general agent of some strong association in his locality. The agent will be glad to see him. He will explain the different policies, give him a rate-book, and show him how to compute premiums according to age. Then the fledg¬ ling starts out. If he has prosperous friends, he naturally calls first upon them, but friends do not go very far, after all. The bulk of busi¬ ness will be done with strangers. The beginner must not be discouraged if his first efforts seem fruitless. March is commonly a bleak and blus¬ tering month, but is always followed by May and June and the summer harvest. Our business cannot be learned in a few weeks or months. There are plenty of disappointments at the start. Men whom the young agent feels sure of getting will often put him off indefinitely, or fail him altogether, but his efforts are not by any means fruitless on this account. He is learning something every day, and after a while first one and then another of his string of prospects will capitulate. He is beginning to gather in the crop from the seeds sown in desolate March and April. Meanwhile he is sowing more seed. From this time on he will be in the midst of a continuous seedtime and harvest. But the gleaning depends, of course, upon the extent and efficiency of the planting. A great fault of the average agent is his proneness to waste time. So numerous are the opportunities to while away hours in idleness that BUSINESS AND COMMERCE 139 the insurance man does it almost unconsciously. It would be well for him if he did not have the handling of his own time; if, for example, he had to begin at seven or eight o’clock in the morning and work until five or six at night, as do most men.. Many agents, furthermore, waste time and energy by a more or less mistaken application of them. A large number of solicitors start out with the idea that in order to write an ap¬ plication the prospective applicant must be seen many times, and gradu¬ ally be made to realize his need for life insurance, and that some day — some time in the future —he will be ready to be picked.While it is true that there are cases where it is only the constant dripping of water upon the stone that will do the work, these are exceptional. ' If the agent has carefully studied the prospect’s position and needs, if he is thoroughly posted himself and is determined and enthusi¬ astic enough to carry conviction, there is no reason why one good inter¬ view, discreetly timed and carried out in a business-like manner, should not secure the application, if it is obtainable. I believe the successful / agent of to-day very rarely requires more than two interviews, and knows that if he cannot then land his man it is better for him to look elsewhere for results. In this connection it seems pertinent to quote what one of our most successful managers said to me, in talking of his methods: — I never have very many cases on a string at a time. I take just a few — three or four. Then I sit down in my office and think hard about one of them. I go over all the ground and practically insure the man in my mind, and then I go right out after him and make the effort of my life to get his application. Then I take up the next man I have in mind in the same way.^^ That man is thorough. He thinks out the details of his work care¬ fully and earnestly before he performs it, and through this habit of seri¬ ous thinking, devel'ops originality in methods. The agent who devises ingenious ways of getting introductions or audiences, or happy methods of presenting his subject and leading up to the application, is the agent who rs always on hand with results and new ideas to work upon in the future. He is the man with not too many irons in the fire; the man who does one thing thoroughly and with all of his might. There .is much in the way a statement is put. Present your whole case, but be as concise and simple as possible about it. Try to save the time of the applicant. Remember that words are like sunbeams, the more they are condensed the deeper they burn. Put the matter in an attractive light. The most successful agents do not tell a man that it is his duty to insure his life ; that he has got to die some day and it is crim¬ inal not to provide for his wife and children; that statistics show that eighty-five per cent of men engaged in business fail. Not a bit of it! 140 BUvSINESS AND COMMERCE They paint a bright picture. They talk to a man about saving his earn¬ ings for-future years. All that the other agents say may be true, but it is not pleasant to hear. Hope is a more powerful lever than fear. The agent who does not use a great deal gf diplomacy will not be eminently successful. Many schemes fail in detail, and unless he can gather together the broken threads and resume his efforts cheerfully, he will be defeated in many cases where success is possible. But temporary defeat does not dishearten the agent who has plenty of plans to put in place of plans that fail. The very successful agent is greater than his achievements. No turn of affairs takes him by surprise or finds him un¬ prepared to make such changes as circumstances require. He knows how to stick tenaciously to the subject in hand and will not allow it to be side-tracked. He knows how to do the talking himself, and to anticipate and answer objections before they are made. He knows that he is after an application; he keeps his mind on that all the time, determined to get it; he is adroit enough to turn every suggestion to his own advantage, and he comes away with the thing he went for. He knows that the only thing that counts for anything is actual results; that promises or prospects will not buy food and clothing; that all his work and all his eloquence amounts to nothing if he cannot persuade men to actually insure their lives. Never approach a man like a supplicant craving a favor. If you have an apologetic feeling, get rid of it. There is no cause for it. The con¬ trary feeling — the feeling that you are bringing a benefit to the man you visit, is your rock of strength. A man sets his own limitation; the cause of our failure lies within ourselves. Dare to attempt. If the little fledgling stayed always in its nest and never tried the wings God gave, it would never know that it could fly, or what its wings were for. It is very true, as Schiller has said, that every man stamps his value on himself. Many men achieve only moderate results from mere lack of confidence in themselves, and because they aim too low. The determination to do one thing and do it well, the concentration of all your forces upon the accomplishment of that thing, to the exclusion of whatever may tend to draw away any part of your ability or attention; the following up of the one thing chosen, with patience and persistency; that is the essence of success; that is concentration in its broader mean¬ ing as applied to the pursuit of a lifetime; that is the concentration which is power, and which compels all your environments to subscribe to your success; which sifts out that which is inharmonious and unnec¬ essary to your plan of work, and harmonizes that which is adverse and yet essential. This is the force that gives to life a definite aim, and to each his individality; which makes of us men and women of purpose and character, working out some definite problem and proving our usefulness. BUSINESS AND COMMERCE I4I The rule is that if a man wishes to be successful he must choose his vocation in life and must concentrate all his energies upon it. If he has selected life insurance, life insurance it must be. Having selected life insurance as your business, go right ahead, working with all your might, with one end in view, and sooner or later that end will be attained. Cut off every lesser interest that takes away any of your energy from your chief interest. If there is any business in the world that pays well for singleness of purpose in its pursuit, it is certainly life insurance. Look at our leading agents to-day and see what they have accomplished in ten or fifteen years. Hundreds of them have built up independent incomes from very small beginnings. Be systematic. Accident or spasmodic effort in the life insurance agent may secure an occasional application, and if it does it ought to be accepted with thanks and ascribed to good fortune. But the steadily flowing and constantly growing business — a clientele that multiplies and increases itself by influences set in motion in thoroughly directed daily work — that comes only to the man who works systematically. In the hour when you sit down quietly and concentrate your mind on plans and their execution, you must train the mental eye to see clearly the results desired. And these results must be definite. For the solicitor, it must be Mr. White’s application to-day, Mr. Black’s to-morrow, and Mr. Jones’s the next day. Never an indefinite something—never a hazy idea that before the week is done he will have somebody’s applica¬ tion. That will not stock the larder nor pay the rent. I often think what an excellent thing it would be if we could have a school where men could come and learn How to Get Applications. But that is a knowledge not to be acquired as we get our Greek and mathe¬ matics. A man may sit down and study the principles of life insurance, and the various plans of the various companies, and the arguments pro and con^ and be greatly benefited thereby; but there is something he must possess that is not taught in schools, namely: tact, and knowledge of human nature. He must know how to handle men and mold them to his opinion. He must have the skill to create a good impression at the start, the quick perception to grasp the favorable moment and the decision to close the bargain on the spot. The agent who wishes to be most successful must have a full knowl edge of the man to whom he is talking and of all the conditions that sur¬ round him. He must know all about his family, the number and ages of his children, his business, his annual income, his wealth. Then the contract, if intelligently presented, can be made to cover the case so completely that the listener will be sure to feel that he would be very un¬ wise not to take advantage of the opportunity offered; more than likely he will feel that the subject of life insurance has never before been pre- 142 BUSINESS AND COMMERCE sented to him with such force and directness. That is the vital moment, the time to secure the signature to the application. From the very mo¬ ment the conversation begins, the agent should keep in mind that the one thing that he wants is the signature to the application. Without that, nothing has been accomplished, even though the benefits of life insur¬ ance may be discussed for hours. My experience and observation confirm me in the opinion that the thing lacking in most of those who make a trial of the business is the knack of closing a bargain when the time is ripe; either through not knowing how to do it, or not recognizing when to do it. There is a time to pull an application blank out of the pocket, fill it in, and get the ap¬ plicant’s signature, just as much as there is a time to call upon him, and a time to put in one’s most telling arguments. I have known many men who have easily h-ad the power to make their listeners not only believe that life insurance is a most excellent thing in general, but actually feel their own personal need of it at that particular time; and yet those men have failed to prosper because they lacked pressure at the proper moment. Call it tact, if you will, or what you will, but certainly much of a successful agent’s success is due to his knowledge of when and how to close a deal. Some agents, like would-be salesmen in other lines, do not know when to stop talking. Talking is like playing the harp; there is as much in laying the hands on the strings to stop their vibration as in twanging them to bring out their music. The agent who, when he sees that his listener is convinced, does not. stop talking and immediately proceed to clinch the bargain by a signed application with a binding receipt delivered, and an appointment for a medical examination, simply leaves some more clever man to gather the fruits of his labor, and goes on wondering why he does not make more money as a result of the work he does. The man of ordinarily keen perception should soon learn to recognize the proper moment and secure the prize that he is after. Some men master this most essential part of the business more easily than others. It means, in reality, the knowledge which enables us to understand the other man — the knowledge of human nature. It can be acquired only by experience, which, if it is a hard master, teaches effectively. The realization of one blunder which costs an application will help to close the next contract when the moment is propitious. You can become a successful life insurance agent only by practice. The first applications are hard to obtain, but each success paves the way to further success. Be faithful to the work and your days will be pros¬ perous. Money enough for all reasonable desires will be yours, and many men will know you for a friend. It is rather an interesting fact, that no matter how hard a man may appear to wriggle and try to draw BUSINESS AND COMMERCE 143 awav from the soft but certain pressure of the agent, he is proud of hav¬ ing taken out insurance and mentions it to everybody he meets. He rightfully regards it as just so much of an addition to his estate, and he has a very friendly feeling for the man who insisted that he should give the ihatter attention. This shows that most of the objections encoun¬ tered by life insurance agents are simulated and fictitious, springing from the instinctive desire to put off till to-morrow what should be done to-day. Every man knows in his heart that life insurance is one of the finest things on earth. SOME RULES FOR SUCCESS IN THE INSURANCE BUSINESS By OLIVER L. BROWN New Jersey Manager for The Bankers' Life Insurance Company of New York T he question is often asked whether life insurance work contains pos¬ sibilities for the young man’s future equal to those of other profes¬ sional or business occupations. In this connection the statement is made that its agency recruits are largely those who have failed in other lines. If it be true that insurance workers are often of the kind mentioned, it seems to argue well for the chances of the man of higher qualities, who enters the business early in life, with the purpose in mak¬ ing it a study and devoting himself to the attainment of success in this sphere. Perhaps it is this theory which has induced the coming of the large number of men of ability who now devote all of their time to life insurance work, for it will hardly be disputed that the standard of indi¬ vidual character is now much higher than ever before; especially is this true in the agency department. The many departments offer much latitude for choice of work. The man of mathematical turn may look to the position of actuary as a goal worthy of his efforts; one whose talents fit him for success as a salesman finds almost unlimited possibilities awaiting him as a solicitor; if one has ability in managing men, the agency department offers excellent posi¬ tions as general managers, general agents, superintendents, and the like; if great constructive genius is possessed, let him look to the forma¬ tion of new companies or the management of old; if he is a physician, the position of chief medical examiner is not unattractive; great clerical ability may lead one to the secretary’s chair. To the young man beginning his life insurance career, advice upon a few lines may well be given. In the first place, do not begin with the purpose of temporary employment in mind. First become convinced 144 BUSINESS AND COMMERCE that the profeSvSion is worthy of your best life efforts. Without this con¬ viction you cannot hope for success. Having reached this conclusion, study every detail of your profession carefully, and do not let the least of your studies be that of men. You should look well to your personal appearance, which is a power¬ ful assistant to the agent in his influence upon the mental processes of the man whom he desires to insure. The address of the agent should at all times be polite, but his manner positive and firm. In presenting the attractions of his policy, he should emphasize only those points which are certain, and avoid discussion of estimates, which are generally mis¬ leading and consequently never conducive to the permanent success of the agent. He should endeavor to so treat every man he insures that he will have made him his personal friend and an assistant to him in finding future business. He should study the methods of successful solicitors, and adopt such of those methods as seem likely to better his own meth¬ ods. When, at the end of any week, he finds that he has done much more profitable work than usual, he should remember that all weeks are not good ones, and should spend no more than he would have done had his profits been much lighter; This principle is important, for the profits of life insurance agents are so variable, and periods of depressing return so certain to occur, that he who spends his profits as he makes them, digs a pit into which he will certainly fall. The agent should let every effort be for his company’s success. While it is the individuality of the agent that induces business, the applicant seldom knows this fact, and never acknowledges it to another. The company’s success in your territory means your success, and few individuals can hope for eminence save as servants for their companies. Do not quarrel with the decision of the medical examiner of your company. If he rejects an applicant, feel assured that he, as an officer of your company, does so because it is necessary. Remember that he wishes business to be added to the books as much as you do, and that your interest is identical with his. Comply with the rules and regula¬ tions of your company, though personal hardship to yourself may res rlt. Few general rules fail to work individual hardship, but the general rule is a necessity. Do not accept money advances from your company. Advances tend to lessen effort by destroying the feeling of uncertainty which is a stim¬ ulus to the right kind of man. If you work faithfully and save syste¬ matically, you will not need them, and if you receive them and do not so work, the money given you will probably prove a bar to advancement, by giving you the reputation of requiring watching by the company’s managers, or by weighting you with debt and discouragement and un¬ fitting you to put forth your best efforts. BUSINESS AND COMMERCE 145 One other practice the agent should religiously observe. He should never ^Hwist.^^ This term is applied to the practice of disparaging the worth of a rival company, discrediting its policies, its agents, and the like. Why it should be deemed necessary, in order to do busi¬ ness for his own company, that an agent should first tear to tatters the reputation of another, is one of the mysteries of the profession. It is time wasted which might be well employed. It not only is de¬ trimental to the business, but equally so to the interests of the agent who employs these tactics. The insurance man should employ every moment not otherwise occupied, in learning things about his policy and the policies of other companies, about the insurance business in general and the relation of his company to his competitors, and, in fact, should leave nothing un¬ done to give himself a most thorough knowledge of his business and of methods which may tend to make him more successful in its practices. These are a few of the rules which I think should govern a man’s work in a business which is fast becoming of great importance in American economics. Lessee. — One to whom a lease is given. Lessor. — One who makes a lease. Letter of Advice. — One giving notice of a shipment. Letter of Credit. — A letter of credit is a letter addressed to a correspondent at a distance, requesting him to pay a sum therein specified to a person named, or to hold money at his disposal, and authorizing the correspondent to reimburse himself for such payment, either by debiting it in account between the parties or by drawing on the first party for the amount. These documents are used principally by travelers. They are issued for any reasonable amount by the banks of large cities, payable in sums to suit the holder. The amount of the letter of credit is deposited with the home banker. A list of banks which will advance money thereon is given on the back of the letter. The signature of the traveler or payee serves as a means of identification. Letter of Marque. — The commission authorizing a privateer to make war upon or seize the property of another nation. Lien.— A hold or claim on property to secure a debt. Lighterage.— Payment for unloading ships by lighters. Limited Companies are commercial organizations which limit the extent of liability that stockholders can incur. Liquidation. — Settlement of liabilities. 13—10 1 146 BUSINESS AND COMMERCE Lloyd’s.— A famous shipping-insurance corporation at the Royal Exchange, London, composed of merchants, brokers, ship-owners, and underwriters. Its purpose is to promote commerce especially by marine insurance and the publication of shipping news. Manifest. — A list of a ship’s cargo and passengers. Manor.— In English law, a freehold estate held by the lord of the manor, who is entitled to maintain a tenure between himself and the copyhold tenants, whereby a sort of feudal relation is kept up be¬ tween them. Manors closely resemble the feudal estates held in Scotland by all proprietors of land. Manors of the English type were granted in the U. S. in several of the colonies, on such terms that property right carried right of jurisdiction. In 1636 the proprietor of Maryland ordered that every grant of 2,000 acres should be made a manor. Martial Law.— A system of government under the direction of military authority. It is an arbitrary kind of law, proceeding directly from the military power and having no immediate constitutional or legislative sanction. It is only justified by necessity, and super¬ sedes all civil government. Suspension of the writ of habeas corpus is essentially a declaration of martial law. In this case,^^ says Blackstone, the nation parts with a portion of liberty to secure its permanent welfare, and suspected persons may then be arrested without cause assigned. MEASURES. (For Brick Work, see under Brick.) Stone is measured by the cord. To find the contents of a pile of stone, multiply by the length, breadth, and thickness, in feet, and divide the product by 128. The result will be the number of cords. Board Measure.— i. For boards not more than one inch thick, multiply the length in feet by the width in inches, and divide the product by 12. 2. For boards more than one inch thick, multiply the length in feet by the width and thickness in inches. 3. To find the width of a tapering board, measure it at the center, or take one-half the sum of the widths at the two ends. Lath Work, see under Lath. Wall Paper is sold by the roll, which is 18 inches wide. Single rolls are 24 feet long and double rolls 48 feet. Part of a roll is counted the same as a whole roll. The area of the walls is measured in feet, making deductions for openings. It is necessary to find the number of rolls actually used in order to ascertain the cost of papering. BUSINESS AND COMMERCE 147 Painting is estimated by the square yard. Double measure is usually allowed for carved moldings. Kalsomining is measured like painting, by the square yard. Glazing is done at so much per light, according to size. Shingling. — The average width of shingles is four inches. They are packed in bunches of 250 each. Four bunches, or 1,000 shingles, will lay 100 square feet of surface, allowing four inches to the weather. This is called a square of shingles. They require four- penny nails. Linear Measure 12 Inches (in.) = i Foot... 3 Feet= I Yard.yd. 5 >4 Yards, or 16^ Feet 320 Rods, or 1760 Yds., or 5280 ft. == I Rod I Mile ft. .rd. mi. Surveyors' Linear Measure 7.92 Inches — i Link. .1. 25 Links = I Rod. . ... .rd. 4 Rods = I Chain. .ch, 80 Chains, or \ 320 rds., or r = i Mile... 8000 1. ) In the sale of goods, the linear yard is divided into halves, quar¬ ters, and eighths; in estimating duties in the Custom House, it is divided into tenths and hundredths. Mariners’ Linear Measure 9 Inches = i Span.sp. 8 Spans, or 6 ft -= i Fathom..fath. 120 Fathoms = i Cable’s Length.c. 1 . 7^ C. Lengths, or \ 880 fath., or r = ^ Common Mile. 5280 ft. ^ No/e .— The Nautical or Geographical mile, or Knot, is 6086.7 ftp or about 1.15I common or statute miles. Square Measure 144 sq. Inches = i sq. Foot.sq. ft. 9 sq. Feet= i sq. Yard.sq. yd. 30^4 sq. Yards == i sq. Rod.sq. rd. 160 sq. Rods = I Acre.A. 640 Acres = i sq. Mile.sq. mi. BUSINESS AND COMMERCE 14b SuRVEYOPs’ Square Measure 625 Links == I Pole.P. 16 Poles == I sq. Chain.sq. ch. 10 sq. Chains ==T Acre.A. 640 Acres = i sq. Mile.sq. mi. 36 sq. Miles = I Township.tp. U. S. Public Lands 1 Township = 6 mi. x 6 mi. = 36 sq. mi. -=23,040 A. I Section -= 1 “ x i “ -= i “ “ =- 640 “ I Half-Sec. = i “ x “ = 34 “ “ = 320 “ I Quarter-Sec.=34 “ ^ 34 “ = 34 “ “ = 160“ Note. —Nearly all the land west of the Alleghany Mountains and north of the Ohio River, and the land west of the Mississippi River, has been surveyed and platted by the U. S. Government. The method of survey was to run lines north and south par¬ allel with some established meridians, called principal meridians; these lines were crossed at right angles so as to form townships of six miles square. Cubic or Solid Measure 1728 Cubic Inches (cu. in.) = i Cubic Foot.cu. ft. 27 Cubic Feet = i Cubic Yard.cu. yd. 16 Cubic Feet = i Cord Foot.cd. ft. 8 Cord Feet ) 128 Cubic Feet \ ^ ^ . Note .— A pile of wood 4 feet wide, 4 feet high, and 8 feet long contains i cord: and a cord foot is i foot in length of such a pile. Measures of Rock, Earth, etc. 25 cubic feet of sand = i ton. 18 cubic feet of earth = i ton. 17 cubic feet of clay = i ton. 13 cubic feet of quartz, unbroken in lode = i ton. 18 cubic feet of gravel or earth, before digging = 27 cubic feet when dug. 20 cubic feet of quartz broken (of ordinary fineness coming from the hole) = i ton contract measurement. Circular or Angular Measure 60 Seconds (") = i Minute.'. 60 Minutes = i Degree. ..°. 360 Degrees = i Circumference.C. Note .— The Standard unit of the circular measure is the degree. Circular or angular measure is used in measuring angles, also in determining latitude and longitude. A Quadrant is one-fourth of a circle, or 90°. A Sextant is one-sixth of a circle, or 60°. BUSINESS AND COMMERCE 149 Liquid Measures 4 Gills (gi.) = I Pint.pt. 2 Pints = I Quart. qt. 4 Quarts = i Gallon.gal. In estimating the capacity of cisterns, reservoirs, etc.: 313^ gal. = I Barrel.bbl. 63 gal. = I Hogshead .hhd. or, I hhd. = 2 bbl. = 63 gal. = 252 qt. = 504 pt. Note. — The barrel and hogshead are not fixed measures, but vary when used for commercial purposes. The capacity of these is found by actual measurement. Apothecaries’ Fluid Measure 60 Minims (m) = i Fluid drachm.f 3 8 Fluid drachms = i Fluid ounce... .. .f 3 16 Fluid ounces = i Pint.O. 8 Pints = I Gallon.Cong. Note .— Cong, stands for the Latin Congius, a gallon; and O. for Octavus, one- eighth, a pint being one-eighth of a gallon. A common teaspoon holds about one fluid drachm. In this measure the symbols precede the numbers to which they refer. Apothecaries’ Weight 20 Grains (gr. xx) = i Scruple.9. 3 Scruples O iij) = i Dram.i 3 ‘ 8 Drams (3 vijj) = i Ounce. 3 - 12 Ounces (3 xij) = i Pound.lb. Note .— Medicines are bought in quantities by Avoirdupois weight; thus, curiously, being bought by one measure and sold by another. ■ Dry Measure 2 Pints (pt.) = T Quart.qt. 8 Quarts = i Peck.pk. 4 Pecks = I Bushel.bu. Troy Weight 24 Grains (gr.) = i Pennyweight..pwt. 20 Pennyweights = I Ounce. oz. 12 Ounces = i Pound. lb. Diamond Weight 16 Parts = I Carat Grain. 4 Carat gr.= i Carat. I Carat = 3^ Troy gr., nearly. BUSINESS AND COMMERCE 150 Assayers’ Weight I Carat = 10 pwt. I Carat gr.= 6 o Troy gr. 24 Carats = i Troy lb. Note .— In weighing diamonds and other gems, the unit generally employed is the Carat. The term Carat is also used to express the fineness of gold. 24 Carat is pure gold, 18 Carat is ^ pure gold, etc. Avoirdupois Weight 16 Ounces (oz.) = i Pound.. . .lb. 100 Pounds = I Hundredweight.cwt. 20 Hundredweight, or 2000 Pounds = i Ton.T. Note .—The Long Ton = 2,240 lbs. It is used in weighing some coarser articles, as iron and coal at the mines; also goods on which duties are paid at the U. S. Custom House. Following are some approximate measures: 45 drops of water, or a common teaspoonful = i fluid drachm. A common tablespoonful = fluid ounce. A small teacupful, or i gill = 4 fluid ounces. A pint of pure water = i pound. 4 tablespoonfuls, or a wine glass = 3^ gill. A common-sized tumbler = 34 pint. Four teaspoonfuls = i tablespoonful. Approximate Speed A man walks. 3 miles per hour. A horse trots. 7 “ A horse runs. 20 “ A steamboat sails.18 “ A sailing vessel sails.10 “ Slow rivers flow. 3 “ Rapid rivers flow. 7 “ A moderate wind blows . 7 “ A storm moves.36 “ A hurricane moves.80 “ A rifle ball moves 1,466 feet per second. Sound moves 1,141 feet per second. Light moves 192,000 miles per second. Electricity moves 288,000 miles per second. t i Used by Stationers and the Paper Trade 24 Sheets = i Quire.qr. 20 Quires =i Ream.rm. 480 Sheets = i Ream. 2 Reams = i Bundle.bun. 5 Bundles =i I Bale. ^..B. BUSINESS AND COMMERCE In Counting Certain Articles the following is used: — 12 Units = I Dozen.doz. 12 Dozen = i Gross. gro. 12 Gross = I Great Gross.G. gro. 20 Units = I Score.;.sc. 151 A Book Formed of Sheets Folded In 2 leaves is called a Folio [(pages) and makes 4 pp In 4 In 8 In 12 In 16 In 18 In 24 6 ( i i a 6 6 < i U it t i ti tt Quarto, 4to. Octavo, 8vo. Duodecimo, 12 mo. 16 mo. 18 mo. 24 mo. t t ( t tt it i t Ct 8 pp 16 pp 24 pp 32 PP 36 PP 48 pp Mensuration.— The process of measuring lengths, surface, volume, and capacity, or of determining the same by measurement and calcu¬ lation. Length may be determined by mechanical measurement; surface and solidity are determined by algebraical and geometrical calcula¬ tions. The following are the rules for calculating the most important measurements: — 1. To find the circumference of a circle, multiply the diameter by 3.1416. 2. To find the area of a circle, multiply the square of the diame¬ ter by the decimal .7854. 3. To find the circumference of an ellipse, multiply half the sum of the two diameters by 3.1416. 4. To find the area of an ellipse, multiply the longer axis or diameter by the shorter, and the product by the decimal .7854. 5. To find the area of a square, multiply one side by itself. 6. To find the area of a rectangle, multiply the length by the breadth, or the base by the height. 7. . To find the area of a parallelogram, multiply the base by the perpendicular height. 8. To find the area of a triangle, multiply half the base by the perpendicular height. 9. To find the area of a trapezium, divide the trapezium into two triangles by a line joining two of its opposite angles; the sum of these triangles will be the area of the trapezium. 10. To find the area of a trapezoid, multiply the sum of the two parallel sides by the perpendicular distance between them, and one- half the product will be the area. 152 BUSINESS AND COMMERCE 11. To find the surface of a sphere, multiply the square of the diameter by 3.1416. 12. To find the surface of a cylinder, multiply the diameter by the height, and that product by 3.1416. 13. To find the solid contents of a right prism, multiply the length, breadth, and height. 14. To find the solid contents of a cylinder, multiply the area of the base by the height. 15. To find the solid contents of a sphere, multiply the cube of the diameter by the decimal .7854. 16. To find the solid contents of a cone, multiply the area of its base by one-third of its slant height. 17. To find the solid contents of the frustum of a cone, add the squares of the two diameters, to this add the product of the two diameters, multiply the sum by the decimal .7854 and the product by one-third the height. Metric System of Weights and Measures. — The Metric System originated in France in 1790, and has been adopted by all European nations except Great Britain and Russia, where it is permissive. Its name comes from the word meter^ from which all the original factors are derived The Meter, unit of length, is nearly the ten-millionth part of a quadrant of a meridian, of the distance between Equator and Pole. The International Standard Meter is, practically, nothing else but a length defined by the distance between two lines on a platinum-irid¬ ium bar at 0° Centigrade, deposited at the International Bureau of Weights and Measures, Paris, France. The Liter, unit of capacity, is derived from the weight of one kilo¬ gram pure water at greatest density, a cube whose edge is one-tenth of a meter and, therefore, the one-thousandth part of a metric ton. The Gram, unit of weight, is a cube of pure water at greatest density, whose edge is one-hundredth of a meter, and, therefore, the one-thousandth part of a kilogram, and the one-millionth part of a metric ton. One silver dollar weighs 25 grams, -i dime = 2^ grams, i five-cent nickel = 5 grams. The Metric System was legalized in the United States on July 28, 1866, when Congress enacted as follows: — The tables in the schedule hereto annexed shall be recognized in the construction of contracts, and in all legal proceedings, as establishing, in terms of the weights and measures now in use in the United States, the equivalents of the weights and measures expressed therein in terms of the Metric System, and the tables may lawfully BUSINESS AND COMMERCE 153 be used for computing, determining, and expressing in customary weights and measures the weights and measures of the Metric System. The following are the tables annexed to the above: — Measures of Length. Metric Denominations and Values. Equivalents in Denominations in Use. Myriameter. Kilometer. Hectometer. Dekameter. Meter. Decimeter. Centimeter. Millimeter. . 10,000 meters. . 100 meters. . 10 meters. . i-ioo of a meter. . i-iooo of a meter. 6.2137 miles. 0.62137 mile, or 3,280 feet 10 inches. 328 feet I inch. 393.7 inches. 39.37 inches. 3.937 inches. 0.3937 inch. 0.0394 inch. Measures of Surface. Metric Denominations and Values. Equivalents in Denominations in Use. Hectare Are. Centare . 10,000 square meters. . 100 square meters. 2.471 acres. 119.6 square yards. 1,550 square inches. Measures of Capacity. METRIC DENOMINATIONS AND VALUES. EQUIVALENTS IN DENOMINATIONS IN USE. Names. Num¬ ber of Diters. Cubic Measure. Kiloliter or stere. 1,000 I cubic meter. Hectoliter. TOO I-IO of a cubic meter. Dekaliter. 10 10 cubic decimeters. Diter. I I cubic decimeter. Deciliter. I-IO I-IO of a cubic decimeter. Centiliter. I-IOO 10 cubic centimeters. Milliliter. I-IOOO I cubic centimeter. Dry Measure. 1.308 cubic yards.. 2 bush, and 3.35 pecks 9.08 quarts. o.go8 quart. 6.1022 cubic inches. 0.6102 cubic inch. 0.061 cubic inch. Diquid or Wine Measure. 264.17 gallons. 26.417 gallons. 2.6417 gallons. 1.0567 quarts. 0.845 ^u. 0.338 fluid ounce. 0.27 fluid dram. Weights. METRIC DENOMINATIONS AND VALUES. EQUIVALENTS IN DE¬ NOMINATIONS IN USE. Names. Number of Grams. Weight of What Quantity of Water at Maximum Density. Avoirdupois Weight. Miller or tonneau Quintal. Myriagram. Kilogram or kilo. Hectogram. Dekagram. Gram. Decigram. Centigram. Milligram. 1,000,000 100,000 10,000 1,000 100 10 I I-IO I-IOO I-IOOO I cubic meter. I hectoliter. 10 liters. I liter. I deciliter. 10 cubic centimeters. I cubic centimeter. i-io of a cubic centimeter 10 cubic millimeters. I cubic millimeter. 2204.6 pounds. 220.46 pounds. 22.046 pounds. 2.2046 pounds. 3.5274 ounces. 0.3527 ounce. 15.432 grains. 1.5432 grains. 0.1543 grain. 0.0154 grain. 154 BUSINESS AND COMMERCE Approximate Equivalents. A meter is about a yard; a kilo is about 2 pounds; a liter is about a quart; a centi¬ meter is about ^ inch; a metric ton is about same as a ton; a kilometer is about ^ mile; a cubic centimeter is about a thimbleful. A nickel weighs 5 grams. The diameter of the nickel is two centimeters; therefore, five of them placed in a row will give the length of the decimeter. As the kiloliter is the cubic meter, this furnishes the key to the measurement of capacity. The nickel therefore gives the key to the entire system. Money. — The term Almighty Dollar seems to have been first used by Washington Irving. Skins, cattle, shells, corn, pieces of cloth, mats, salt, and many other commodities have at different times and places been used as money. The largest circulation of paper money is that of the U. S., being ^700,000,000; while Russia has ^670,000,000. Gold was first discovered in California, in 1848. Money simply means a common medium of exchange. The first currency used in this country was the Indian wampum. National banks were first established in this country in 1816. The highest denomination of U. S. legal tender notes is $10,000. Sterling signifies money of the legalized standard of coinage of Great Britain and Ireland. The term, according to one theory, is a corruption of Easterling — a person from North Germany, on the con¬ tinent of Europe, and therefore from the east in geographical relation to England. The Easterlings were ingenious artisans who came to England in the reign of Henry III., to refine the silver money, and the coin they produced was called moneta Esterlingorum — the money of the Easterlings. The continental money consisted of bills of credit issued by Con¬ gress during the War of Independence, which were to be redeemed with Spanish milled dollars. $200,000,000 worth were issued but they were never redeemed and caused much suffering. table showing the VAEUE of foreign coins and paper notes in AMERICAN MONEY BASED UPON THE VAEUES EXPRESSED IN THE FOREGOING TABEE. Number. British ^ Sterling-. German Mark. French Franc, Italian Lira. Chinese Tael (Shanghai). Dutch Florin. Indian Rupee. Russian Gold Ruble. Austrian Crown. I $ 4 - 86 , 6 ^ $ 0.23,8 $ 0.19,3 $ 0.63,2 1 0.40,2 $ 0.32,4 $ 0.51,5 $ 0.20,3 2 9-73.3 0.47,6 0.38,6 1.26,4 0.80,4 0.64,8 1.03 0.40,6 3 14-59,9^ 0.71,4 0.57,9 1.89,6 1.20,6 0.97,2 1-54,5 0.60,9 4 19.46,6 0-95,2 0.77,2 2.52,8 1.60,8 1.29,6 2.06 0.81,2 5 24-33,2]^ 1.19 0.96,5 3.16 2.01 1.62 2.57,5 1.01,5 6 29-19.9 1.42,8 1.15,8 3-79,2 2.41,2 2.04,4 3.09 1.21,8 7 34.06,5^ 1.66,6 1-35,1 4-42 4 2.81,4 2.36,8 3-60,5 1.42,1 8 38.93,2 1.90,4 1-54,4 5-05 6 ' 3-21,6 2-59,2 4.12 1.62,4 9 43-79.8!^ 2.14,2 1-73,7 5.68,8 3-61,8 2.91,6 4-63,5 1.82,7 10 48.66,5 2.38 1-93 6.32 4.02 3-24 5-15 2.03 20 97-33 . 4-76 3-86 12.64 8.04 6.48 10.30 4.06 30 145-99,5 7-14 5-79 18.96 12.06 9.72 15-45 6.09 40 194.66 9-52 7.72 25.28 16.08 12.96 20.60 8.12 50 243-32,5 11.90 9-65 31-60 20.10 16.20 25.75 10.15 100 486.65 23.80 19.30 63.20 40.20 32.40 51-50 20.30 / BUSINESS AND COMMERCE 155 Money, Value of Foreign.—■ Country. Argentine Rep.... Austria-Hungary.. Belgium. Bolivia. Brazil. Canada... Central America.. Chile. China. Colombia. Costa Rica.. Cuba. Denmark. Ecuador. Egypt. Finland. France. Germany. Great Britain. Greece.. Hayti. India. Italy. Japan . Mexico. Netherlands. Newfoundland.... Norway. Peru. Portugal. Russia. Spain. Sweden. Switzerland. Turkey. Uruguay. Venezuela. Standard. Monetary Unit. Value in U. S. Gold Dollar. Gold.. Peso... $0.96.5 Gold.. Crown. • 20,3 Gold.. Franc.. •19-3 Silv’r* Boliviano. .42,8 Gold.. Milreis • 54,6 Gold.. Dollar. 1.00 Silver Pesof.. • 45,1 Gold.. Peso .... .42,8 ' Shanghai .63,2 Haikwan .70,4 Silver Tael... ] Tientsin. .67,0 Canton... .68,9 Silver Pe.so .... .42,8 Gold.. Colon.. •46,5 Gold.. Peso .... .92,6 Gold.. Crown.. .26,8 Silver Sucre... .48,7 Gold.. Pound (100 piasters) 4 - 94.3 Gold.. Mark... •19,3 Gold.. Franc . • 19,3 Gold.. Mark... •23,8 Gold.. Pound sterling. 4 - 86 , 6)4 Gold.. Drachma. •19,3 Gold.. Gourde •96,5 Gold.. Pound sterling t.... 4 - 86 , 6)4 Gold.. Lira .... •19,3 Gold.. Yen. • 49,8 Silver Dollar.. .46,4 Gold.. Florin... .40,2 Gold.. Dollar... 1.01,4 Gold.. Crown.. .26,8 Gold.. Sol. .48,7 Gold.. Milreis . 1.08 Gold.. Ruble.,. •51,5 Gold.. Peseta.. •19,3 Gold.. Crown.. .26.8 Gold.. Franc... •19,3 Gold.. Piaster . .04,4 Gold.. Peso .... 1-03,4 Gold.. Bolivar.. •19,3 Coins. Gold: argentine (14.82,4) and K argentine. Silver: pe.so and divisions. Gold: former system — 4 florins ($1.92,9). 8 florins ($3.85,8), ducat ($2.28,7), and 4 ducats ($9.14,9). Silver: i and 2 florins. Gold: present system — 20 crowns ($4.05,2) and 10 crowns ($2.02,6). Gold: 10 and 20 francs. Silver : 5 francs. Silver: boliviano and divisions. Gold : 5, 10, and 20 milreis. Silver; i, and 2 milreis. Silver: peso and divisions. Gold: escudo ($1.82,5), doubloon ($3.65), and condor ($7.30). Silver: peso and divisions. Gold: condor ($9.64,7) and double-condor. Silver: pe.so. Gold: 2, 5, 10, and 20 colons ($9.30,7). Sil¬ ver : 5, 10, 25, and 50 centimos. Gold: doubloon ($5.01,7); Alphonse ($4.82,3). Silver: peso. Gold: 10 and 20 crowns. Gold: 10 sucres ($4.86,65). Silver: sucre and divisions. Gold: pound (100 piasters), 5, 10, 20, and 50 piasters. Silver: i, 2, 5, 10, and 20 piasters. Gold: 20 marks ($3.85,9), 10 marks ($1.93). Gold : 5, 10, 20, 50, and 100 frs. Silver: 5 frs. Gold : 5, 10, and 20 marks. Gold: sovereign (pound sterling) and sovereign. Gold : 5, 10, 20, 50, and 100 drachmas. Silver: 5 drachmas. Gold: I, 2, 5, and 10 gourdes. Silver : gourde and divisions. Gold : sov. ($4.86,65). Sil.: rupee and div’ns. Gold: 5, 10, 20, 50, and 100 lire. Silver: 5*lire. Gold: I, 2, 5, 10, and 20 yen. Silver; 10, 20, and 50 sen. Gold: dollar ($0.98,3), 2^, 5, 10, and 20 dol¬ lars. Silver: dollar (or peso) and divisions. Gold: 10 florins. Silver, i, and 2)4 florins. Gold: 2 dollars ($2.02,7). Gold : 10 and 20 crowns. Gold: libra ($4.86,65). Silver: sol and div’ns. Gold: I, 2, 5, and 10 milreis. Gold : imperial ($7.71,8) and )4 imperial, 7)4 rubles ($3.86). Silver: ^ ruble. Gold: 25 pesetas. Silver: 5 pesetas. Gold: 10 and 20 crowns. Gold: 5, 10, 20, 50, & 100 francs. Silver: 5 fr’s. Gold: 25, 56, 100, 250, and 500 piasters. Gold: peso. Silver : peso and divisions. Gold: 5, 10, 20, 50, and 100 bolivars. Silver: 5 bolivars. * The coins of silver-standard countries are valued by their pure silver contents, at the average market price of silver for the three months preceding the date of this circular. fNot including Costa Rica. ^:The sovereign is the standard coin of India, but the rupee ($0.32,4) is the money of account, current at 15 to the sovereign. Acre. —A standard land measure. A square, 12.649 rods, or 69.57 yards, or 208.71 feet on a side, contains one acre. It is composed of 156 BUSINESS AND COMMERCE 10 square chains, a surveyor’s chain being 66 feet. An acre is con tained by a rectangle of the following dimensions in rods: — 9 X 17I 11 X i 4 |- 12 X 13I 12} X I2| I X 160 5 X 32 7 X 22 f There are in an acre 4,840 sq. yds. ; 43,560 sq. ft. The acre in the United States and that in England are the same. Taking this as i: — The Scotch is 1.27; the Irish, 1.62; the French Hectare, 2.47; the German Morgen, 0.65; the ancient Roman Jugerum, 0.66 and the Greek Plethron, 0.24. Almighty Dollar. — A phrase first used by Washington Irving in his sketch of a Creole Village, in 1837. Angel. — A gold coin stamped with the figure of an angel, weight four pennyweights, value 6 s. 8 d. in the time of Henry VI. and at 10 s. in Elizabeth’s time, 1562. Avoirdupois. — S3^stem of weights and measures applied to all goods except precious metals and precious stones. The grain is the founda¬ tion of the system. A cubic inch of water weighs 252,458 grains; 7,000 of such grains make an A. lb.; and 5,760 a Troy lb. The A. lb. is divided into 16 ounces of 437^ grains and each of these again into 16 drams of 27^ grains each.' (See Tables of Weights and Measures.) Bimetallism. — The use of two metals as money, at relative values fixed by law; the doctrine that two metals can and should simultane¬ ously and in the same country be established as standards of value and bear to each other an arbitrary ratio. As here used, the term generally refers to the use of gold and silver at a relative value fixed by the government. Monometallism is the theory that only one metal should be used as a money standard. Bland Dollar. — An unofficial, but popular, designation of that silver dollar which was coined by the U. S. for the first time in 1878. It takes its name from Richard P. Bland, of Mo., who in the House of Representatives, in 1876, introduced a bill for the free and un¬ limited coinage of silver. It passed the House and, in modified form, the Senate. It was vekoed by President Hayes, Feb. 28, 1878, but was carried over his veto the same day. In the form in which it became a law, it provided that the secretary of the treasury should each month purchase not less than $2,000,000 nor more than $4,000,000 BUSINESS AND COMMERCE 157 worth of silver bullion to be coined into dollars of 412^4 grains each. It was repealed by the Sherman Act of 1890. Books, Sizes of. — When a sheet is folded in 2 leaves it makes a folio of 4 pp. 4 8 12 16 18 24 ii “ quarto, qto, of 8 pp. an octavo, 8vo, of 16 pp. a duodecimo, i2mo, of 24 pp. “ i6mo, of 32 pp. an i8mo, of 36 pp. a 24mo, of 48 pp. The following are the approximate sizes of books: Royal Folio. . 19 inches X 12 Demy. . 18 X II Super Imp. Quarto (4to). . X 13 Royal 4to. . X 10 Demy 4to. . X 8K Crown 4to. . II X 8 Royal Octavo. X 6K Medium 8vo. . 9 V 2 X 6 Demy 8vo. . 9 X 5 Yz Crown 8vo . . 7K X 4 K Foolscap 8vo. . 7 X 4 i2mo. . 7 X 4 i6mo. . 6K X 4 Square i6mo. . 4 >^ X Royal 24mo. . X 3 X Demy 24010. . 5 X Royal 3 2 mo. . 5 X 3 Post 32100.. . 4 X Demy 48010.. . . . YA X 2% Book-Type, Smaller Sizes of,— Semi-nonpareil is the smallest size of type, 288 lines being required to make a foot. There are no fewer than 190 different widths or thicknesses of types used in printing, whieh are of all sizes, from the immense poster types one is accus¬ tomed to see on hoardings, down to an infinitely small size that can be read only by the aid of a magnifying glass. The body of Tit- Bits is printed in bourgeois type, of which 102 lines go to the foot. There are, at least, eleven sizes of type smaller than the bourgeois, as shown in the following list, namely: — Lines to Types. the ft. Bourgeois. 102 Brevier. in Minion. 122 Emerald. 128 Nonpareil. 144 BUSINESS AND COMMERCE Types Ruby Nonpareil Ruby. Pearl. Diamond. Gem.. Brilliant. Semi-Nonpareil. Lines to the ft. ., 162 .. 166 .. 179 .. 204 . . 222 ■ • 238 . . 288 A little book called the ^^Mite^^ was recently published. It is set in brilliant, and the pages are ten centimeters by seven centimeters. The Oxford University Press publish an edition of the Bible in this small type. Another typographical curiosity is a copy of a French translation of Dante’s Divine Comedy, which was exhibited at the Paris Exhibition of 1882. The tiny volume is less than half an inch square, and consists of 500 pages, to make which only two sheets of printer’s paper were required. It contains in all 14,323 verses, and is set in semi-nonpareil. Brick Work, Measurement of.— Work is generally estimated by the 1,000 brick, on the basis of a wall a brick and a half thick, which is regarded as the standard to which all work must conform. To find the contents of a wall which varies from the standard,— Multiply the superficial contents of the wall by the number of half bricks in thickness and take one-third of the product. A brick is 8)4 inches long, 4 inches wide, and 2)4 inches thick; 20 bricks, laid dry, form a cubic foot. So that, with the dimensions of a wall given, we may find the number of bricks required by multiply¬ ing the length, breadth, and thickness in feet and fractions of a foot, and dividing the product by 20 — or by 22^ if the bricks are smaller than the average given. The quotient will be the number of bricks required. • Bushel.— A dry measure used for fruit, grains, and vegetables. It contains 8 gallons of 267.27 cubic inches, and holding 10 lbs. of dis¬ tilled water. Thus the bushel contains 80 lbs. of water, and measures 2,218.2 cubic inches. The U. S. Government standard for dry measure is the Winchester bushel, being a cylindrical vessel having an in¬ side diameter of 18^ inches, and 8 inches deep and containing 2,150.42 cubic inches. A box 16 in. x 12 in. x 11.2 in. will hold a bushel. A box 12 in. x 11.2 in. x 8 in. will hold half a bushel. Cent. — Vt. was the first state to issue copper cents. In June, 1785, she granted authority to Ruben Harmon, Jr., to make money BUSINESS AND COMMERCE 159 for the state for two years. In Oct. of the same year, Connecticut granted the right to coin 0,000 in copper cents, known as the Con¬ necticut cent of 1785. Mass., in 1786, established a mint and coined $60,000 in cents and half cents. In the same year, N. J. granted the right to coin 10,000 at 15 coppers to the shilling. In 1781, the Con¬ tinental Congress directed Robert Morris to investigate the matter of governmental coinage. He proposed a standard based on the Spanish dollar, consisting of 100 units, each unit to be called a cent. His plan was rejected. In 1784, Jefferson proposed to Congress that the smallest coin should be of copper, and that 200 of them should pass for one dollar. The plan was adopted, but in 1786, 100 was substi¬ tuted. In 1792 the coinage of copper cents, containing 264 grains, and half cents in proportion, was authorized; their weight was subse¬ quently reduced. In 1853 the nickel cent was substituted and the half cent discontinued, and in 1864 the bronze cent was introduced, weighing 48 grains and consisting of 95 per cent, of copper, and the remainder of tin and zinc. Chain, Engineer’s.— Is used by railroad and canal engineers. It consists of 100 links, each i foot long. Chain, Gunter’s.— Used in land surveying, is a measure of 100 links of 7.92 inches each. It is 4 rods or 66 feet long. Coinage Laws. — The importance of a sound system of coinage early impressed itself upon the founders of the Government, and laws were passed to regulate the proportion of metal in the different coins and the ratio of value of one metal to another. Among the more important of these laws was the act of Apr. 2, 1792, which provided that any holder of gold or silver could have the same coined at the mint, receiving for it coins of the same metal in equal weight. The standard of fineness of gold was 11 parts pure to one of alloy; for silver, 1,485 pure to 179 of alloy; the ratio of gold to silver was one to 15, and silver and gold coins were legal tender. By the act of Mar. 3, 1795, the treasurer kept 24 cents per ounce for silver below standard and four cents per ounce of gold, as toll for Coinage. Under the same law the President reduced the weight of the copper coin one pennyweight, 16 grains, in each cent, and in this propor¬ tion in each half-cent. By the law of Apr. 21, 1800, a sum sufficient to pay for refining was retained in the case of deposits of gold and silver below standard, and by that of May 8, 1828, enough to pay for materials and waste was deducted from silver bullion needing the test. The act of June 28, 1834, provided that one-half of one per cent, should be deducted from all standard gold and silver, if paid for in coin within five days from deposit. Under the law of Jan. 18, l6o BUSINESS AND COMMERCE 1837, all gold and silver had to be nine-tenths pure, with one-tenth alloy, and was to be legal tender for all sums. Feb. 21. 1853, the half-dollar was redueed from 206^ grains to 192 grains; the same proportion was applied to the lesser silver coins, and they were made legal tender in sums not exceeding $5.00. Private deposits were not received for conversion into these coins, and the charge for refining was one-half of one per cent. The trade dollar dates from 1873, when the law passed that year ordained that its weight should be 420 grains and of the half-dollar 193 grains; these coins to be legal tender up to $5.00. The coinage of silver dollars of full legal tender value was left unprovided for, and silver bullion could be deposited for coinage into trade dollars only, and gold for coinage for the benefit of the depositor. Directors of mints were empowered to buy silver for coins below the dollar, and one-fifth of one per cent, was charged for the conversion of standard gold into coin and standard silver into trade dollars. Silver coins, trade dollars excepted, were made exchangeable at par for gold coins in sums not in excess of $100. In 1875 gold coinage was released from charges and in 1877 Congress decreed that the trade dollar should cease to be legal tender. By the law of Feb. 28, 1878, the present silver dollar of 412|- grains came into existence, and was made legal tender for all debts. The secretary of the treasury was authorized to buy at market value not less than $2,000,000 nor more than $4,000,000 worth of silver bullion each month and to coin it into dollars. In 1879 silver coins of less than $1.00 were made legal tender to the amount of $10.00. In 1890, when the law of 1878 was repealed, the secretary of the treasury was authorized to buy 4,500,000 ounces of silver bullion each month, paying for it with legal tender notes, and mak¬ ing a sufficient monthly coinage to redeem the notes. The silver- purchase clause of the act was repealed in 1893. Coins, Metric System in. — It may not ‘be generally known that we have in the nickel five-cent piece of our coinage a key to the tables of the linear measures and weights of the metric system. The diameter of this coin is two centimeters and its weight is five grams. Five of them placed in a row will, of course, give the length of the decimeter; and two of them will weigh a decagram. As the liter is a cubic decimeter, the key to the measure of length is also the key to measures of capacity. Any person, therefore, who is fortunate enough to own a five-cent nickel may be said to carry in his pocket the entire metric system of weights and measures. Crith (Greek, kpiOij^ a barleycorn, a small weight).— In chemistry the unit for estimating the weight of aeriform substances;—the weight BUSINESS AND COMMERCE l 6 l of a liter of hydrogen at o° centigrade, and with a tension of 76 cen¬ timeters of mercury. It is 0.0896 of a grain, or i..38274 grains. Cubit (Latin, cubitum^ cubitus, an elbow, an ell).—An ancient meas¬ ure of length, being the distance from the elbow to the extremity of the middle finger. In England the cubit is 18 inches; the Roman cubit was 17.47 inches; the Greek 18.20; and the Hebrew somewhat longer. Decimal System.— That system of weights and measures in which the unit or standard is divided into tenths and multiples of tens. It is applied to the U. S. money system, and the French metric system. (See Weights and Measures.) Degree. — (i) The 360th part of a circumference. (2) A unit in thermometric measurement; that of Fahrenheit’s scale being the i8oth part of the distance between the freezing and boiling points; in the Centigrade system it is the looth part, and in Reaumur’s the 80th part of the distance between zero (the freezing point) and the boiling point. Demonetization of Metal.— When a metal is deprived of its standard monetary value and thus made merely a commodity, it is said to be demonetized. Dime.— The smallest piece of silver now coined by the U. S., one- tenth of a dollar in value. The word is taken from the French dixi^me, one-tenth, and was spelled disme on some of the first coins. The dime was authorized in 1792 with a weight of 41.6 grains; reduced in 1853 to 38.4 grains. The first dimes were issued in 1796. Dollar.— Derived from daler or thaler. The first American silver dollar was modeled after the Spanish milled dollar, and was author¬ ized by act of Congress in 1792. It was first coined in 1794 and weighed 416 grains, 371:^ grains being of silver and the remainder alloy. In 1837 the weight was reduced to 412-J- grains for use in trade with China and Japan, known as the ^Hrade dollar. The gold dollar was issued under the act of Mar. 3, 1849, its coinage being dis¬ continued in 1890. The act of Feb. 12, 1873, suspended the coinage of silver dollars — trade dollars excepted — and made the gold dollar the standard of value. Eagle.— The $to gold coin of the U. S. Its coinage was author¬ ized in 1792. Coined first in 1794. It has ever since been a legal tender to any amount. The first delivery was of 100 eagles Sept. 22, 1795. Coinage was suspended in 1805 and resumed in 1837. It takes its name from the figure of the national bird which is stamped on the reverse, ij—II i 62 BUSINESS AND COMMERCE Farthing. — An English coin; was originally coined in silver. It was first coined in copper by Charles II., in 1665. It is worth about a half cent. Four farthings make a penny, worth 2^ cents. Fiat Money.— A proposed circulating medium often heard of during the greenback delusion that followed the Civil War. The term was applied to projected irredeemable paper currency, which its advocates claimed could be made valuable, though it had neither intrinsic worth, nor the promise to pay, by the mere governmental assertion of its equality and identity with money of known, accepted, and established excellence. ^^Fiat,^^ a Latin word, means Let it be done,^^—Say it is money, and it is money. Five-cent Piece. — A silver half-dime of 20.8 grains; was the first coin struck by the U. S. mint. In 1853 the weight was made 19.2 grains. This chin was not issued in 1798, 1799, 1804, or from 1806 to 1828. The nickel five-cent piece dates from 1866, when the legal tender of five-cent pieces was reduced from $5.00 to 30 cents. No silver half-dimes have been coined since 1873. Furlong.— (As long as a furrow.) A measure of length, 220 yds., or the eighth part of a mile. Gallon.— A liquid measure, composed of four quarts, eight pints, or 32 gills. The standard liquid gallon of the U. S. contains 231 cubic inches; the imperial gallon of Great Britain 277,274 cubic inches. Gold and Silver Production in 500 Years. COUNTRIES GOLD SILVER Tons Value Ratio Tons Value Ratio Africa. 740 $ ^20,000,000 7-1 Australia. 1,840 1,290,000,000 17.8 Austria. 460 '325;ooo'ooo 4-4 7.930 $ 305,000,000 4.1 Brazil. 1,040 725,000,000 lO.O Germany. 8,470 325,000,000 4.4 Mexico. .... .... 78,600 3,040,000,000 40.7 Peru. 72.000 2 . 770 . 0 (X ).000 * 17 . Russia. 1.235 865,000,000 12.0 3.200 120 , 000 , OCX) 1-7 Spanish America. 2,220 I.SSO.OOO.OOO 21 .S United States. 2,042 1,430,000,000 19.7 11,600 445,000,000 6.08 Other Countries. 778 535,000,000 7-5 11,200 430,000,000 5.8 The World. 10,355 $7,240,000,000 100.0 193.000 $7,435,000,000 100.0 Gramme.— The unit of the standard of weight in the French sys¬ tem. It is determined by the weight of a cubic centimeter of distilled water at 0° Centigrade. It is equal to 15.43248 grains Troy. Granby Token.— An unauthorized coin issued by John Higley, of Granby, Conn., in 1737. It was made of copper and on the obverse BUSINESS AND COMMERCE 163 bore a deer, with the words Value me as you please, the Roman numerals III., and a crescent. The design on the reverse consisted of three hammers on a triangular field, each bearing a crown. The legend was, I am good copper. Greenbacks.— The popular name for the legal tender treasury notes, printed on one side in green ink, issued by the , Government during the Civil War. The right of the Government to issue bills of credit was disputed by many statesmen and financiers, but the exi¬ gencies of the time seemed to render some such measure .necessary, and the Supreme Court finally established their validity. Issues of $150,000,000 each were authorized by the laws of Feb. 25 and July II, 1862, and Mar. 3, 1863. The result was that, as compared with greenbacks, gold was held at an average of 220 throughout 1864 and at one time, actually rose to a premium of 285, and did not again touch par with greenbacks till Dec. 17, 1878, nearly 17 years after the last previous sale of gold at par. By the specie-resumption act of Jan. 14, 1875, was ordered that on and after Jan. i, 1879, all legal tender notes presented to the assistant treasurer of the U. S. at his office in N. Y., should be redeemed in coin. The term Greenback has been applied to other forms of U. S. securities printed in green ink. Guinea.— A gold coin formerly current in England. It took its name from the gold which came from Guinea in West Africa. It was of 21 shillings value; coined first in the reign of Charles II. (1664) and was superseded by the sovereign, of 20 shillings, in 1817. Though it is no longer current, it is used as a measure of value. Height, Measurement of.— This is done in one of four ways: by trigonometry; by leveling; by the barometer to test the atmospheric pressure at top and bottom; and by finding the boiling point of water at top and bottom by the thermometer. Land Surveying. — An important application of mathematics to the measurement of an area of land, whether small or large. It requires a thorough acquaintance with geometry, trigonometry, and the theory and use of the instruments employed for the determination of angles. Lath Work.— The standard size of laths is 4 feet long, ij^ inches wide, and ^ of an inch thick. * They are sold in bunches containing 50 each. One bunch will cover about 3 square yards of wall space. Lathing is measured by the square yard, one-half of the surface of openings being deducted. Legal Tender Cases.— During the financial emergency caused by the Civil War, Congress in 1862 issued $150,000,000 of treasury notes. The law authorizing their issue made them legal tender for all pri¬ vate debts and public dues except duties on imports and interest on 164 BUSINESS AND COMMERCE the public debt. The constitutionality of the act was frequently dis¬ puted, especially in its application to debts contracted prior to its passage, and the Supreme Court was* called upon in several cases to decide the question. State courts generally maintained the constitu¬ tionality of the law. The Supreme Court, in 1869, in the case of Hepburn vs. Griswold, maintained the validity of the law only in so far as it did not affect contracts made prior to its passage. In 1870 this decision was overruled, and the constitutionality of the law in its application to preexisting debts was maintained. Mint.— By an act of Congress passed Apr. 2, 1792, the first U. S. mint was established at Philadelphia. The first machinery and first metal used were imported, and copper cents were coined the follow¬ ing year. In 1794 silver dollars were made, and the succeeding year gold eagles. In 1835 branch mints were established at New Orleans, *La., at Charlotte, N. C., and at Dahlonega, Ga. ; in 1852 at San Fran¬ cisco, Cal.; in 1864 at Dalles City, Ore. ; and in 1870 at Carson City, Nev. The mints at Charlotte and Dahlonega were suspended in 1861, and that at Dalles in 1875, that at Carson City in 1885, and that at New Orleans from i860 to 1879. Assay offices, which were formerly considered branches of the mint, were established at N. Y. in 1834; Denver, Col., in 1864; Boise City, Idaho, in 1872, and at other places at later dates. New England Shilling. — A rude coin minted in Boston from the year 1652, bearing the denomination mark ^^XII,^^ signifying i2d., and valued at about i8j^ cents. ' Pine Tree Money. — The general court of Mass., May 27, 1652, passed an act establishing a mint in Boston. John Hull was ap¬ pointed mint master, and the coins manufactured under his super¬ vision were called Pine Tree Money,from a design on the obverse of a pine tree encircled by a grained ring, with the legend Masa- thusets In.^^ Their coinage was discontinued at Hull’s death, Oct. I, 1683. Pistole. — A name formerly given to a gold coin circulated in Spain, Italy, and some parts of Germany. Its value in U. S. currency is $3.90. Postage Currency.— A form of fractional paper currency, resem¬ bling postage stamps in appearance, used in the U. S. for a brief pe¬ riod during the Civil War. Quarter Dollar.— The Continental Congress in 1786 decided upon certain coins. Among these was a quarter dollar to be made of silver. It was first issued in 1796 and its weight was fixed at 104 grains. In 1853 it was reduced to 93 grains, and by the coinage act / BUSINESS AND COMMERCE 165 of 1873 was raised to 96.54 grains, or 0.2 of an oz., the present weight, and 900 fine. The eoin is legal tender to the amount of $5. The quarter dollar of 1827 is one of the rare eoins of the U. S. There were no issues of this eoin during the years 1798 to 1803; 1808 to 1815, nor during 1817, 1824, 1826, and 1830. Quarter Eagle. — A gold coin of the U. S., authorized in 1792 and first coined in 1796. It is legal tender to any amount. The present weight of the coin is 0.134 oz. or 64.5 grains, and the fine¬ ness 900. It was coined under act of Congress June 28, 1834. Quint.— One of the silver coins presented by Robert Morris to the Continental Congress in 1783 for consideration as a national coin. It weighed 5 pennyweight, 15 grains, and was equal to 35 cents. On the reverse was S. 500^^ surrounded by a wreath and legend Libertas, Justitia,^^ on the obverse was an eye, 13 points crossing (equidistant) a circle of as many stars and the legend Nova Con- stellatio.^^ The coin was not accepted and afterward became known as the Nova Constellatio coinage. Shinplasters. — This name was first applied to the depreciated Continental paper currency after the Revolutionary War. Later it was applied to other issues of paper money. Trade Dollar.— Issued by the L^nited States, 1874-78, for use in trade with China. It was legal tender to the amount of $5.00 until 1876. The weight of the trade dollar was 420 grains; that of the standard American silver dollar, 412J4 grains. The treasurer was authorized by an act passed in 1887 to redeem in standard silver dol¬ lars all trade dollars presented within the following six months. Treasury Notes. — The first issue of treasury notes was necessi¬ tated by the War of 1812. They amounted to $36,000,000 with sf per cent, interest, and were receivable for all dues to the government but were not a legal tender. From the panic of 1837 to the close of the Mexican War, treasury notes to the amount of $73,000,000 were is¬ sued, and an issue of $53,000,000 followed the panic of 1857. In 1862 an issue of $150,000,000 of non-interest bearing treasury notes were authorized. These were legal tender and were known as green¬ backs. The U. S. seven-thirties, of which $830,000,000 were is¬ sued, were a variety of treasury notes, and treasury notes were issued to pay for the monthly purchases of bullion authorized by the Sherman Act of 1890. Twenty-cent Piece. — This U. S. silver coin was minted from 1875 to 1878, when its issue was discontinued. It weighed 77.16 grains, was legal tender up to $5, and circulated principally on the Pacific coast, for which it was especially intended, i 66 BUSINESS AND COMMERCE Wampum. — The shells strung together by the Indians and used as money or worn as ornaments. The round clam-shells were preferred for this purpose though other kinds were also commonly used. Merger. —Absorption of a lesser by a greater debt or obligation. M.ountains, Accurate Method of Measuring Them.— There are three ways of accomplishing this measurement, so far as their height is concerned, namely: by the barometer, by observation of the atmospheric pressure; by observation of the boiling point of water; and by calculation from data supplied by accurate surveying instru¬ ments, the necessary formulae being supplied by trigonometry. This last plan, known as triangulation, is by far the most accurate method. The first method is based on the fact that the atmosphere is densest at the surface of the earth, having there to support the weight of the whole column of air above it, and the decrease in pressure being known by the barometer enables the observer, after due allowances, according to temperature, to work out the height of the mountain. The second method of observing the boiling point of water by the thermometer is based on the well-known fact that water boils at 212° Fahr., at the level of the sea, or at a pressure of 30 in. of mercury; and as the relation between the pressure and the boiling point is known exactly, the height can be measured in this way more or less accurately. Triangulation is the name applied to the process of cal¬ culation by measuring the angles of triangles. The angles having been measured by the theodolite, and knowing them and one side, trigonometry enables the surveyor to calculate the other two. Measuring by this method is done with wonderful correctness. Two instances of this accuracy are given in Thornton’s Physiography, one of a plain and the other of a mountain. The length of Salisbury Plain was ascertained with a result which was less than 5 in. from the measured value. The height of Ben-Macdhui was calculated to be 4,295.6 ft., and this height, when checked, proved to be within il in. Net.— The clear amount; what remains after deducting charges and expenses. Overdraw. — To call for more money than there is on deposit. Paper, Negotiable. — Is documentary evidence of debt, and includes promissory notes, due bills, drafts, checks, deposit certificates, bills of exchange, bank bills, and treasury notes. Such documentary evidence of debt must contain a promise to pay or an order for another to pay. One receiving such paper must see that the amount is exactly stated, that the paper is transferable and signatures and names are correctly written. I BUSINESS AND COMMERCE 167 National Debts. — Compiled from the summary prepared by the Bureau of Statistics, Treasury Department. Countries Year National Debts Revenue Expenditure Commerce with the United States Total Inter’st Per Cent. Per Capita Exports from United States to— Imports into United States from— Argentina. 1900 $509,604,444 41^-6 $128.85 $63,339,188 $63,283,632 $11,558,237 $8,114,304 Australasia. 1900 1,183,055,000 3 -5 263.90 167,335,000 161,738,000 26,725,702 5,468,196 Austria- Hung’ry 1900 1,154,791,000 3 -4 25.80 73,659,000 *73,659,000 7,046,819 9,079,667 Austria. 1900 642,194,000 3 -5 24.89 215,237,000 215,208,000 (f) (t) Hungary. 1900 904,941,000 3 -4 47.75 209,001,000 208,509,000 ( 1 ) (t) Belgmrn. 1899 504,459,540 23^-3 75.63 85,494,672 83,883,860 48,307,011 12,940,806 Bolivia.. 1898 2,336,258 4 -5' 1.16 3,431,000 3,712,000 59,223 22 Brazil. 1898 480,985,000 4 -5 33.56 90,152,000 70,061,000 11,578,119 58,073,457 British Coloniesg 1899 265,541,000 3 -6 26.43 79,956,595 81,071,024 41,011,125 22,687,814 Canada. 1900 265,494,000 21^-5 50.59 1151,030,000 1142,975,000 95,319,970 39,369,074 Chile. 1898 113,240,000 4J^-5 36.41 43,206,000 38,052,000 3,287,565 7,112,826 China. 1899 287,123,500 434-7 .72 173,500,000 173,500,000 15,259,167 26,896,926 Colombia. 1898 15,809,000 3 -5 3.95 7,031,000 8,697,000 2,710,688 4,307,814 Costa Rica. 1899 13,124,000 3 -5 43.75 3,513,000 3,180,000 1,462,355 2,980,030 Denmark. 1899 55,795,724 3 24.15 19,247,008 20,619,361 18,487,991 920,455 Ecuador. 1897 7,882,435 334-5 6.21 3,564,000 3,620,000 1,216,008 1,524,378 Egypt. 1899 500,402,729 3 -434 53.61 56,424,345 54,437,259 1,095,673 8,278,022 France. 1900 5,800,691,814 3 -334 150.61 691,349,500 691,291,192 83,335.097 73,012,085 German Empire 1900 557,626,622 3 -334 9.96 471,002,000 489,804,000 187,347,889 97,374,700 German States.. 2,015,958,000 Greece. 1900 168,548,444 4 -5 69.25 13,650,533 13,626,200 290,709 1,122,855 Guatemala. 1899 20,826,507 4 -5 13.23 2,687,000 2,643,000 785,462 2,402,978 Honduras. 1899 89,376,920 4 -5 219.60 1,114,429 1,119,295 1,181,453 988,606 India (British).. 1899 1,031,603,705 234-434 4.67 328,955,934 316,105,507 4,892,323 45,355,976 Italy. 1899 2,583,983,780 334-5 81.11 317,349,332 313,276,071 33,255,620 27,924,176 Japan . 1899 206,799,094 4 -5 4.73 121,433,725 119,934,893 29,087,475 32,748,902 Mexico. 1900 168,771,428 3 -5 13.36 29,267,131 26,035,775 34,974,961 28,646,053 Netherlands .... 1899 466,410,294 234-3 90.74 58,323,000 60,922,000 89,386,676 15,852,624 Nicaragua. 1898 4,901,819 4 -6 9.80 11,409,950 12,433,250 1,817,869 1,520,266 Norway. 1899 53,211,132 3 -334 25.08 21,457,420 20,912,308 Paraguay . 1898 19,972,000 3 -434 30.45 844,000 892,000 4,884 PeruT... 1898 20,321,784 4 -6 4.41 5,914,000 6,072,000 1,662,475 2,122,543 Portugal. 1899 670,221,374 3 -434 143.82 56,363,000 59,207,000 5,886,542 3,743,216 Rumania. 1899 280,136,991 4 -5 47.37 28,001,000 29,249,000 41,562 101,042 Russia. 1899 3,167,320,000 3 -5 24.56 891,772,000 921,068,000 10,488,419 7,246,981 Servia. 1899 81,972,108 4 -5 33.43 15,144,348 14,842,825 Spain. 1899 1,727;994,600 4 -5 95.53 170,998,000 174,752,000 13,399,680 5,950,047 Sweden. 1899 85,154,320 3 -334 16.71 39,043,000 39,043,000 10,436,467 4,244,302 Switzerland. 1899 15,919,219 334 5.10 19,392,000 18,924,000 250,477 17,393,268 Turkev. 1899 726,511,195 3 -5 29.25 81,893,462 81,533,341 667,062 7.928,534 United Kingdom 1900 3,060,926,304 234-2% 74.83 583,201,360 650,258,113 533,819,545 159,582,401 United Statesff . 1900 1,107,711,257 2 -4 14.52 669,595,430 590,068,371 Uruguay . 1899 124;374,189 334-5 148.06 16; 608; 000 16; 608,000 1,816,780 1,848,077 Venezuela. 1898 37,725,814 4 -5 14.51 6,452,000 8,790,000 2,452,757 5,500,019 Total. .... $31,201,759,274 $24.15 $5,888,392,563 $5,875,645,277 $1,332,308,717 $750,363,442 * Does not include debt charged nor military expenditures in Bosnia and Herzegovina, f Included with Austria-Hungary. { Estimated, g Except Australasia, Canada, and British India. ]| From and on ac¬ count of consolidated fund. ** Included with Sweden, ft Figures for June 30, 1900. PENMANSHIP. Nearly every nation of antiquity has at some period attributed the origin of letters to the beneficence of the that they worshiped. This appears not only from the writers but from the nature and meaning of the words used for writing. In the Egyptian language the term writingsignified: Writing heavenly words. This meaning is not only beautiful but essentially true, for whatever may be the origin of letters, no gift of of its history divine beings statements of i68 BUSINESS AND COMMERCE invention has been so useful nor has contributed so much to the ad¬ vancement and the civilization of men, as the art of writing. The study of the writings of the different nations shows us that there were generally two motives that guided their course of progress. The most important was the desire to save work. The other was the love of beauty. The desire for beauty was especially marked in the Europeans and led to the Gothic script, but our own forms of writing have developed through the constant forming of the Roman letters with a pen in such a way as to not only save time but to give the letters lines of beauty. Whatever your profession in life may be, there is nothing that you will find more important to your progress than the art of writing well. The world has many places for good penmen. Too many people look upon writing as something that anybody can accomplish and think that it does not matter how it is done. A certain amount of individ¬ uality in penmanship there will surely be, but this can remain even if the fixed rules for good penmanship are closely followed. Your own characteristic style will take chre of itself, and, if you carefully follow the rules which are considered as essential in the art of writing well, you will not only learn to write a good clear hand, but will always preserve it. It has been clearly demonstrated that the use of the pen, even for long periods of time, is not unhealthful or exhausting, providing it is used in the right way. This is a very important matter to book¬ keepers, copyists, or others who are using a pen constantly, and who are liable to what is known as writer’s cramp, unless they carefully observe the rules for correctly holding the pen. Some people sit down to write as if they were inviting an attack of cramps. They sit or hold the pen so as to produce an undue strain on muscles which ought to act freely. There is no occupation more tedious and none more severe upon the energies of a person than the use of the pen by improper methods. Many men and women whose health has bro¬ ken under the task of writing, have failed and suffered, not so much from the difficulty of their work as from the attempt to do it in the unnatural and the hardest way. It is no use to fight against nature and whoever attempts it must suffer in the end. The knowledge pertaining to penmanship has been classified and the rules of the natural methods have been made complete. Anyone who follows them carefully will be rewarded by a power to write easily and rapidly. The style of writing which has had the approval of a long period is known as the slanting or Spencerian style. The letters are formed at an oblique angle to the line. A mode which has recently come BUSINESS AND COMMERCE 169 into common use in many schools is called the vertical style, for the letters are formed perpendicularly to the line. Some advantages in the way of clearness are claimed for this, but the friends of the old method say that vertical letters do not admit of either the grace or the rapidity of the old method. But whichever style is used, the general rules for the natural way of using the pen apply. These are more important than the mere matter of the slant of the lettqrs. Attention must first be paid to the matter of a correct position. You cannot write well lying down, nor can you write well if you curl yourself up into an awkward and cramped position at the table or desk. There are recognized three different positions, any one of which is proper. The Front Position is most generally used and most recommended, especially to students who are learning to write. In this position you should sit square with the desk but not in contact with it. Keep the body erect and the feet level on the floor. Place the paper on the table directly in front of you and, if you are to write by the slanting method, it should be in a position oblique to the body but square with the right hand. If using the vertical method, the paper should be nearer square with the body. Let the left arm rest on the table with the hand on the paper to steady it. In what is known as the Right Side Position you should sit with the right side to the desk but wdthout touching it. Let the paper lie square with the edge of the desk or nearly so and place the right arm on the desk parallel to the edge. The left hand may be placed on the paper so that the left arm makes right angles to the right arm. If the paper is made fast the left hand may be left free. This is a good position to use, therefore, if you wish to hold a book in the left hand while writing. In this position as in the other and in fact in any position the body should be erect and the feet should rest squarely on the floor. The Left Side Position is a very convenient one in counting houses where large books are used. The left side is turned to the desk and the left arm is placed parallel to the edge of the desk with the hand on the paper above the writing. The right arm should be nearly at a right angle with the desk. The most important matter to observe in all these positions is that the muscles of the arms and right hand should be free to move. Any position which binds the right arm to the desk requires the muscles of the hand to do all the work. This in time must result in weariness and pains not only in the hand but in the arm. Moreover, it cannot result in good penmanship. Three different movements may be noticed in writing: First, the Finger Movement; second, the Forearm or Muscular Movement, and third, the Off Hand or Whole Arm Movement. BUSINESS AND COMMERCE 170 To secure the proper Finger Movement the arm should touch the table on the muscles only and about three inches from the elbow. You should hold the wrist clear from the table and square, so that a pencil laid on the wrist would be nearly in a horizontal position. Always hold the pen between the thumb and first and second fingers. Keep the second finger nearly straight with the tip about three- quarters of an inch from the point of the pen. The penholder should rest half-way between the tip of the finger and the first joint. The forefinger which should also be nearly straight, should rest over the holder. The thumb, slightly bent with its end against the holder opposite the first joint of the forefinger, keeps the holder in a proper position. Guard against letting the holder drop into the hollow between the forefinger and the thumb. The upward strokes of the pen are made by extending the first two fingers and thumb and the downward strokes by contracting them. The hand should glide over the paper on the nails of the third and fourth fingers which should be kept closed above the second joints. This position you will see if you will try it gives the hand perfect freedom and enables it to readily guide the pen in any desired direction with very little effort. The same position of arm and hand is used in the Muscular or Forearm Movement as in the Finger Movement, but instead of form¬ ing the letters by the extension and contraction of the fingers, they are formed by letting the hand, the wrist, and the pen move together. The pen practically remains fixed in the fingers, but the arm, rolling on the muscle near the elbow, gives the necessary motion for the making of the letters. Undoubtedly you will find that this does not come so easily or so naturally at first as the Finger Movement, but it is regarded as the proper movement for business writing. You will notice it often if you are in banks or counting houses. It is a good plan to practise the movement when you are learning to write and in a short time with care you will acquire a good business hand. When a business man is seeking good clerks or employees he always wishes to see a sample of their handwriting and he can tell very quickly something of the qualifications of an applicant by the way he writes. If he sees a good business hand, such as you may with practice acquire by the Forearm Movement, he will give the one who shows it the preference, other things being equal. The Off Hand or Whole Arm Movement is only used in making large capital letters or in ornamental writing. It consists in raising the elbow from the desk and moving the whole arm with the pen. The hand slides along on the nails of the third and fourth fingers. This is such a movement as you would make if you were writing in large letters on a blackboard. It is frequently useful to a good pen- BUSINESS AND COMMERCE 171 man, but the essentials of a good hand are all contained in the first two movements mentioned. Very often new styles, something like the varied fashions in dress, come into more or less common use. One of these consists in taking the penholder between the first and second fingers. This is apt to be formed by those using a stub pen. But a position like this is not adapted to constant writing nor does it make a good business hand. Such a method is apt to lead to a sprawling style of writing and it is generally hard to read when the writer attempts to write fast. Moreover, it cramps the hand. It is not so easy on the nerves. Anyone who is compelled to write his signature a great many times a day^ one signature following another, will find himself quickly worn out with the effort, unless he adopts one of the proper positions described above. If you wish to write nicely you should practise writing by these proper movements of the hand and fingers, hand and arm, and then adhere to them. When you have acquired enough skill to write well in this way, you would destroy all your good work if you tried to adopt another method which might come into style for the time being. In trying to learn the new style you would not simply undo all your good work on the old but what you had done would prevent your accomplishment of good penmanship by the new method. One would destroy the other. Business men see many samples of handwriting showing that the gift of writing clearly has been destroyed in this way. It will be evident in the irregularity of the letters. It^ is this which often makes such a style difficult to read. By making such a mistake you will find that you get into the way of never writing twice alike. The writing at the end of a short letter even, will not look like that at the beginning. This fault would prevent your keeping a neat set of books. You can only do this by adopting a proper style and sticking to it. Having secured an understanding of the proper position to assume and the correct movements to miake in your pen practice, you should then acquire a knowledge of the principles on which different letters are formed. While no two letters are alike, it is found that when correctly made all are made iip of straight and curved lines. The straight lines should all be parallel and of the same slant. The curved ones are either convex or curving outward; concave or curv' ing inward and sometimes a combination of the two called compound curves. Now in all the poor handwriting you observe, you will notice that the straight lines are not always of the same slant. This gives the writing a ragged and uneven appearance. Then you will notice that some lines are curved that should be straight, and you 172 BUSINESS AND COMMERCE will see that of the curved lines some curve too much and some not enough. No good penmanship has such variations as these. Every stroke of the pen will show perfectly one of these three principles of formation of letters. It is these which give a good handwriting that even appearance. In vertical writing the straight lines are of course perpendicular ^nd the curved lines conform to them, but in the older style of mak¬ ing -slanting letters, good penmen are agreed that the angle or slant should be about 53 degrees from the base line. You know that a right angle is 90 degrees and thus an angle of 53 degrees would be a little more than half of a right angle. To write at a slant of 45 degrees or half of the right angle would give it too much of a slant either for speed or good looks. Shading is not essential to good writing but when it is properly done adds to its beauty. It is always made w^hen the pen is brought toward you by pressing slightly and gradually on the pen. Care should be taken not to press too suddenly or too hard. Too much shading is not only tiresome for the hand but destroys the beauty of the writing. There should never be but one shade in a capital let¬ ter. In the small letters many prefer to shade only the letters d, p, and t. At any rate it will be better for you when learning to write or in striving to improve your writing to follow this plan at first. After the principles of the formation of the letters are mastered you may practise shading with less danger of mistakes. You can always tell where a capital letter should be shaded, for as a rule it can con¬ veniently occur in but one place. It is always when the pen is drawn directly toward you. It will be of advantage to you in the first place to make a study of each letter before you attempt to write sentences. Many people fail to acquire a good handwriting because they never take the trouble to do this but begin at once to copy lines. In doing this they strive simply to imitate the general appearance of the copy, without being informed of the real principles on which the letters w^ere formed. Get a perfect understanding of one letter before you go to another. Learn just how it is made and then practise making it till it comes easily. This is the same kind of practice which would be required of you were you to study drawing. You would not sit down to draw a picture at once. At first you would be told to practise in making straight lines and then in drawing curved lines with reference to the straight ones. In time you could draw a face or a tree but you could draw nothing well till you had first mastered the principles. You will find that all small letters are formed by a combination of three different lines, a concave curve, a convex curve, and a straight BUSINESS AND COMMERCE 173 line, and by making these lines all at the same angle your letters will all be alike. The line on which the writing rests is called the base line and that at the head of the shorter of the small letters is called the head line. While both lines are used for the first instruction in writing, only the base line is used on ordinary paper. It is supposed that the writer will become so proficient in making the small letters that he will need only the base line to guide him. Many prefer no line at all. The first principle of making small letters is a convex curve com¬ mencing at the base line and running at the proper angle to the head line. When you write the small letter a for example, you begin at the base line and run a convex curve to the head line. You then come back to the base line with another convex curve. The next move is on the second principle of the coneave curve by which the pen ascends again to the head line. You next return the pen to the base line with a perfectly straight line which is the third principle. You then finish the letter with a line which will connect it with the next letter and which may be either a convex or concave curve according to the letter. In making this letter, therefore, there are five distinct movements but they are of only three kinds. No matter how many movements are required to form any small letter, you will always find that they are always of these three kinds. You can do no better than to prac¬ tise for a little in making these different curves and the straight line. When you have onee become skilful in this, the making of good letters will come easily. Study each letter in your copy and observe just how the three different lines are employed in eaeh. You will notice the same kinds of lines in the formation of cap¬ ital letters. One very common stroke is the Capital Stem which you recognize as the first part of the letters A and M. This is modified in various letters, but all are formed of convex and concave curves. So also are the oval forms, sueh as are seen in the capital letter O. There is an inverted oval which is used in the first part of the letter W. By a little examination of 3^our copy in accordance with these simple principles you will observe at once the proper way for making all the letters. If you have alread}^ learned to write merely by copying certain lines of copy and without an understanding of the principles, you can greatly improve your hand by practice according to the principles. Take any letter and write it a great many times in succession, study¬ ing carefully the nature of each curve. You cannot give too much care to these little things at first. After a time they will become 174 BUSINESS AND COMMERCE second nature and you will see that it is as easy to write a perfect and a graceful hand as it was to write in an uneven, careless way. Many people write fairly well when young but gradually get care¬ less and allow their writing to become worse and worse till it is well-nigh impossible to read it. Those who are writing very much and very rapidly easily fall into this mistake. They might easily avoid it with a little care and they would save their friends a great deal of time in trying to make out letters they have received. But those who fall into this habit are generally those who learned to write without an understanding of the first principles. They just let their handwriting grow up as a tree does in the woods without any care. With a handwriting properly acquired in the first place, you will find that you may easily preserve it, no matter how much it may be your lot to write or how rapidly. Many people who have care¬ fully followed these rules have been able to write beautifully grace¬ ful hands when they have become very old. Flourishing is the art of making various figures of beautifying letters by means of a rapid whole arm movement of the pen. This species of the penman’s art was practised in very early days of writing. It was regarded not only as a distinctive feature of penmanship in the production of designs representing birds, animals, and fishes, but it was used for the embellishment of writing important documents. It was of greater practical advantage in former times than it is to-day. Before the discovery of printing when the books of the world were written and during the centuries immediately following the discovery of printing the art of flourishing was extensively used. It was con¬ sidered as a valuable accomplishment and anyone who could do it nicely was sure of plenty of work. Many of the written books were illustrated with fanciful pen designs called illuminations and impor¬ tant state papers or letters patent or charters were beautifully written and embellished by clever penmen. Even now such services are often required in making certificates of membership in societies or in me¬ morial resolutions which are intended to be framed for preserva¬ tion. But a good round clear hand\ is now generally regarded as of much more practical advantage. Every legislature, including the Con¬ gress of the United States, has engrossing clerks who write out the official Copies of bills and resolutions on very durable paper. It is necessary that such documents should not only be perfectly legible but that they should be punctuated exactly right. Often grave dis¬ putes in law arise over the meaning of the words, and this meaning very often depends upon where a comma or a semicolon is placed. BUSINESS AND COMMERCE 175 If you should go to Washington you would find in the archives of the Department of State many volumes of bills and other documents which have been written by penmen who write perfect hands. These are the official copies. All printed laws are made from copies of these. The clerks who make these copies do nothing else and receive handsome salaries for their work. They have acquired the skill in writing perfectly through the practice of the principles which have been stated above. In some of these documents you will observe evidences of skill in flourishing with the pen, and the exercise of the hand in making long, graceful lines tends to give ease and dexterity in the execution of practical writing. When seated for flourishing you should employ the Front Position, already explained, for it enables one to use the arm more freely. The pen must be held differently so as to give the shading to the upward or outward stroke instead of the downward or inward stroke as in the direct or ordinary position when writing. Sit squarely at the desk, as close as is practicable without touch¬ ing it. Let the left hand rest upon and hold the paper in the proper position which must always be in harmony with the position of the right hand -and pen. The penholder is held between the thumb and first and fore fingers. The thumb presses upon the holder about two inches from the point of the pen. The first finger is bent at the second joint and forms nearly a right angle. It is held considerably back of the second finger which rests upon the under side of the holder and supports it. It should rest about midway between the thumb and the point of the pen. The third finger rests upon the fourth. The nail of the latter rests lightly upon the paper about one and one-half inches from the pen in a straight line from the point, and parallel with the arm. For some kinds of work in which longer lines are made, the position may be changed so that the ball of the hand instead of the nail of the fourth finger rests upon the table or paper. This method is preferred in work requiring large sweeps of the pen. In the former method the fingers are liable to strike into the ink lines and mar the work. In the ornamentation of letters and in the making of small designs or in any off-hand pen work the former method is, how¬ ever, generally employed. The movement employed in all flourishing is that of the whole arm. This is obtained by raising the entire arm free from the table. The hand rests lightly upon the nail of the fourth finger and all the motion of the arm is from the shoulder. This gives the greatest freedom and scope to the movements of the pen. The same move¬ ment is used when making large capitals. When the arm rests upon 176 BUSINESS AND COMMERCE the ball of the hand the hand does more and the arm less, for the hand works upon the ball as a pivot. But in all cases the arm should be free to move. You should not make any attempts to acquire the art of flourish¬ ing’ till you have mastered the principles of making good letters and perfected your writing so far as possible. When this has been done you will find the practice in flourishing, while a separate accomplish¬ ment, will give you a greater facility in ordinary writing. But flour¬ ishing should not be a part of your ordinary writing. You should strive to make that plain and even. Flourishing will provide you with amusement for many an hour and will enable you in time to draw some very beautiful designs with the pen. It will often supplement your writing, for sometimes you may wish to prepare some paper with ornamental letters or designs. As a rule the practice of form¬ ing with the pen good German text or other ornamental letters is of more practical advantage than the making of fancy birds or animals. Ornamental letters are often used in the titles to documents or archi¬ tect’s plans. If you do not care to perfect yourself in the use of the pen for ornamental work you may gain considerable amusement by copying designs by what is known as the Transfer Process. This has long been known to penmen and pen artists and is frequently used when exact copies are required. It is so simple and easy that a child can make an exact copy of any kind of ornamental pen work or even of outline pictures. It will not teach you how to make the originals and yet it will give you a good idea of how they are made and the kinds of lines that are used. Any kind of paper that is so thin that lines can be readily seen through it will do, but it is better to secure regular transfer paper which is not only very thin but is so made as to be transparent. Take a sheet of this paper and place it on the picture to be copied. Then with a good lead pencil trace all the outlines and shadings of the entire picture. Do not neglect any line but make a complete and perfect picture on the transfer paper of the original. Having done this turn your paper over and blacken the whole of the other side of it. You will readily see why this is done. If you attempted to transfei the pencil drawing to white paper the picture, while like the original, would be turned around so that it would face the other way. This is avoided by blackening the whole of the other side of the transfer paper. When you have done this, place the transfer paper, blackened side down, on your white paper and with a hard, fine-pointed lead pencil trace over all the outlines and shadings of the entire picture. As you do this the lead on the blackened side will mark the impression BUSINESS AND COMMERCE 177 on the white paper. Thus you will print in pencilings a perfect copy of the original and it will face the same way. When you have done this it is a very easy matter to finish the picture with a pen and ink. Put the ink on over the pencilings and shade according to the shading of the original. After the ink is on, erase the pencil marks with a rubber. Care should be taken in hll these operations to keep the paper from moving so that none of the lines or shades may be misplaced. If you read these instructions carefully you may sit down and make an exact copy of any outline picture you may wish and do it so nicely and perfectly that you will be surprised at yourself. It is of course not much of an accomplishment and it would be much better for you to learn to make nice originals with your pen. But not everyone has the gift for such work and if you have not, you will find the transfer process will furnish you good profitable amuse¬ ment and some instruction. If you are clever with your pen, never put it to anything except good uses. Your gift will delight others as well as yourself if you make pictures which will delight any eye. There have been some wonderful penmen in the world who have put their accomplishment to bad purposes and have suffered accordingly. Once the United States Government detected a counterfeit of a one hundred dollar bill which was so good that it passed through one of the banks. A few inches away it seemed perfect, but a closer examination revealed at once that it was done with a fine steel pen. The penman was arrested and spent a long period of his life in a prison and died poor and miserable. He had a gift which if properly used would have gained him riches and fame. As it was his gift and all the long hours he had spent in training himself only went to make him a miserable out¬ cast. Happiness can come only when your gifts and accomplishments are ever employed in a good purpose. Permit. — Written authority to remove dutiable goods. Personal Property. — Chattels which consist of things temporary and movable, including all property not of a freehold nature. Policy. — The instrument by which a contract of insurance is made. Poll-tax.— A tax levied upon the person of the citizen himself, in distinction from that upon property. Post Obit.— A promise to pay loans after the death of some person. Preferred Creditor. — One whom a bankrupt debtor elects to pay first. 13—12 178 BUSINESS AND COMMERCE Principal.— The sum on which interest is paid. Protest. — Notice to the sureties of a note that it was not paid at maturity or to the drawer of a draft that acceptance was refused. Punctuation is the art of dividing composition by points or stops for the purpose of showing more clearly the sense and the relation of the words, and of noting the different pauses and inflections required in reading. Though necessary to the clear expression of thought in writing, few master the proper use of punctuation, and so often give trouble to their correspondents, and are perhaps misin¬ formed as to what they designed to say or relate. How necessary it is to punctuate properly may be seen from the following confused sentence: — The party consisted of Mr. Smith a merchant his sister a governess Senator Jones a Southerner his aunt and a young lad. Without punctuation it is impossible to gather how many were in the party, or what their relationship was. If commas are inserted, it will appear that the party comprised eight people, thus: — The party consisted of Mr, Smithy a merchant^ his sister,, a gov¬ erness, Senator Jo7ies, a Southerner, his aunt, and a young lad. By inserting semicolons in place of commas, the number of the party is reduced to five, as follows: — The party consisted of Mr, Smith, a merchant; his sister, a gov- er7iess; Senator Jones, a Southerner; his au7tt, ayid a young lad. Usage, as a rule, determines how compositions ought to be punc¬ tuated, so it is not safe to lay down arbitrarily any hard and fast rule. This, however, should not prevent one from paying attention to the matter, and fall into the habit of careless and slovenly writing. Punctuation Points and Accents Period. Colon. Semicolon. Comma. Interrogation Point Exclamation Point. Dash. — Parentheses. ( ) Brackets. [ ] Hyphen. - Quotation Marks Apostrophe. Ellipsis.j i i i Caret. Index. -6®=“ Paragraph. ^ Brace......| Accute Accent. e Grave Accent. e Circumflex Accent. § Tilde, or Circumflex. g The Long, or Macron. . g The Short, or Breve. e Diaeresis. e Cedilla. g Asterisk. ♦ Dagger, or Obelisk. f Double Dagger. J Section. g Parallel. y Leader. [.] BUSINESS AND COMMERCE 179 Plural of Foreign Nouns, Rules for the. — In forming the plural of foreign nouns, the following rules apply:—■ The termination A becomes JE; sometimes ata^ as larva, larvae; miasma, miasmata. Is becomes Es, sometimes Ides, as axis, axes; apsis, apsides. Us becomes I, as magus, magi; but genus becomes genera. Um and On become A, datum, data; phenomenon, phenomena. Ex and Ix become Ices, as vortex, vortices; helix, helices. O becomes I, as virtuoso, virtuosi. (See Spelling.) Real Estate.— This term in law includes land, and whatever else attaches to or is a part of it: either added by nature, as trees, min¬ erals, water, or by artificial construction, as houses, etc. REAL ESTATE, INVESTMENTS IN Character of Such Investments — Caution Needed in Dealing with Agents — Title Guaranty Companies—-Real Estate Investments Compared — Manner OF Preparing Deeds — Deeds in Wife’s Name—Bills of Sale — Official Records of Realty Transactions—Improved Real Estate Should be In¬ sured— Landlords and Tenants — The Art of Renting Houses—Present Tendency of Real Estate toward Steadiness. I N TOWNS and cities, investments in real estate are often pressed upon the attention of persons who have money to spend. An improved lot, bringing in rent enough to pay taxes, insurance, repairs, and interest upon the purchase money, is a good investment when bought at a fair price; but there are usually too many experienced investors ready for such a purchase to leave many bargains for the inexperi¬ enced. The best opportunity for the latter is when times are hard, money in demand, and real estate depressed in value. Even then, the price paid should bear a proper relation to the present earning power of the property, with reasonable assurance that both the prop¬ erty and the neighborhood have a promising future. For a building is constantly becoming the worse for wear and out of date, so that the wisdom of any purchase must rest largely, in the end, upon the value of the ground. That is a reason for estimating the values of ground and building separately, according to the invariable custom of real estate experts. If the purchase be store property, the future business prospects of the street must be considered, and care be taken BUSINESS AND COMMERCE 180 not to buy a piece of ground too small for such a building as the fu¬ ture business necessities of the locality are likely to require. If it be a dwelling, the tendency of the people who live in rented dwell¬ ings to move to the newer and better suburban dwellings, made ac¬ cessible by modern methods of rapid transit, ought to be kept in mind. The effect of the multiplication of apartment houses, commonly called .flats, upon the value and renting capacity of single dwellings, is also to be considered. Sometimes there is an overbuilding of flats, in this year or that, but they suit a good many town dwellers, and a flat is so costly a building that it will stay, and be rented, however low the rent obtainable, until the flight of years shall make the bare ground more valuable than is the ground and the unprofitable building to¬ gether. This reference to flats suggests the remark that in a city or a good-sized town, a well-built and wisely planned three-storied flat is likely to prove a very satisfactory and stable investment. It is generally better, however, to build such a flat than to buy one already built. A desirable small apartment house cannot often be bought at a bargain, and the latest-built flat can easily be made the best of its kind. It is not a bad thing to buy a good-sized villa plot in the suburbs of a town or city, either for all cash or on the installment plan, so long as the buyer does not pay the fancy price so often demanded for ground that is still farming land, though beautifully laid off on paper into streets, lots, parks, fountains, lyceums, and factories. If street cars, water mains, gas or electric lights, and public schools, already make the suburb a comfortable residential place, so that the buyer can go and live on the plot in a modest frame dwelling, the investment, if properly made at the beginning, is likely to become the event of a lifetime. In ten, fifteen, or twenty years, the villa can be pulled down, and the plot be cut np into city lots and sold at a fabulous advance on the original value. Nobody having a compara¬ tively moderate sum of money to invest need hold off through fear or expectancy of a sudden or general upheaval of the old ways of living. A real estate purchase is usually made through a real estate agent. Unless especially employed by the buyer, at the expense of the buyer—■ which rarely happens—he is the agent of the seller, interested in getting the best price for the seller and, therefore, the largest com¬ pensation for himself. Whatever his moral obligations toward the buyer, his legal obligations allow a wide latitude for exercise of the imagination in his alleged statement of fact. So that, however useful he may be in bringing property to the knowledge and inspection of an investor, in bringing buyer and seller together on a price satis- BUSINESS AND COMMERCE l8i factory to both, and in arranging the details of sale and settlement, all that he says about the value, position, and prospects of the prop¬ erty, its promising future, the prices' that have been offered for it in the past, the peculiar circumstances that enable the present customer' to get it at an astonishing reduction from its real value, and the celerity with which he can make a quick resale of it at a big profit, should pass through the ears of the customer without affecting the mind. If, in the end, the purchaser feels compelled to rely upon some representation of the agent as an inducement to make the purchase, there should be inserted in the bill of sale or receipt, issued upon payment of the deposit, a declaration that the purchase is made upon the faith of that representation, and that the agent issuing the bill of sale warrants the representation to be true. Then, if the representation be untrue or erroneous, and the purchaser suffers loss thereby, and the agent is financially good for the amount of the loss and costs of the lawsuit, the purchaser ‘will be safe. The necessity of caution and self-diligence in dealing with a real estate agent for a purchase, is enhanced by the frequency with which the actual negotiation with the purchaser is conducted by a permanent or casual feeder of the real estate office, with whom the agent divides the commission, without being responsible for any of the acts or representations not brought to his knowledge or confirmed by him. Deeds of real estate are usually written on printed forms, and it is better to use such a form than to attempt to draw a deed from knowledge or memory of what should be put into it. Yet, even with a printed form, it is dangerous for other than an expert to draw a deed, since the parts to be written into the form are the more diffi¬ cult and important. Some real estate agents, notaries public, and justices of the peace, are expert in drawing deeds and, therefore, may be trusted in ordinary cases; but where anything more than a simple conveyance from one person to another is to be made, it is better that a lawyer should prepare or revise the deed. t The deed to a house intended as the family home should prefer¬ ably be taken in the name of the wife, so that the safety of the home may be assured if the husband should afterward become involved by bad investments or speculations, or by endorsing, or going security, for others. This advice is good, even in those states that have liberal laws exempting the homestead from liability for debt. If, unhappily, the couple should afterward become divorced, the divorce court would decree a just disposition of real estate stand¬ ing in the name of the wife, according to the circumstances of the case. In private litigations, which make up much the greater mass of legal business, the courts may be trusted to do strict justice be- i 82 BUSINESS AND COMMERCE tween the parties, upon the evidence produced; those guilty of offend¬ ing, receiving their proper due, with no burden added or benefit taken away merely because of their offense. One of the consolations of being forced into a lawsuit is the assurance of having it presided over by a judge at once experienced and impartial. It is worth the time and trouble of spending an hour or two at the trial of an important or noted civil case, to contrast the calm, and even cold, demeanor of the judge, with the obviously interested behavior of the principals and witnesses. He often has his private opinion of the case, of the parties, and of the witnesses; but he keeps it to himself, shows favor or disfavor to neither side, and though he may have to deal with the testimony of witnesses who flatly contradict each other, he accuses neither of per¬ jury, but temperately states the reason why, upon the whole, one piece of evidence should be accepted and another rejected. It would be half-way to the millenium could the judicial habit and manner be universally adopted by the community; but the judge began as a lawyer, and the lawyer began by learning that there are two sides to every contention, in which iieLther side is likely to be wholly right or wrong, and with a reasonable chance that the other side is the right side Though an inexperienced person should not presume to draw a deed of real estate, any intelligent person may draw such a bill of purchase or sale of real estate as will bind the bargain until the time comes for deeding the property. Such a bill should state who is buying and who is selling; should specify' the lot or tract of land bought and sold, which may be described in any brief or familiar language that will enable it to be fully and accurately described afterward; the price to be paid; the time and manner of payment; how the de¬ ferred part of the payment is to be secured, which is usually by a mortgage upon the property itself; whether the whole and perpetual title to the property is to pass, or only a limited or partial title; which party is to pay the costs of title searching, deeding, and recording; whether the seller is to guarantee a good title; how long a time is allowed the purchaser to complete the purchase; how much has been paid by way of deposit, and how much, if not all, of the deposit is to be retained by the seller if the purchaser alters his mind and chooses not to take the property. If an existing mort¬ gage is to be assumed by the purchaser, the amount of it and its assumption should be stated, and it should also be stated up to what time the seller is to pay accrued interest on an assumed mort¬ gage, and accrued taxes. Any special or additional arrangements concerning the purchase or sale should be mentioned. If a purchaser by bill of sale desires to record the bill, to protect BUSINESS AND COMMERCE 183 his interest until a deed can be recorded, the seller should acknowl¬ edge it as he would acknowledge a deed; otherwise the witnessed signature of the seller will be sufficient. A merely signed, or signed and witnessed, bill of sale may be recorded, if necessity or occasion should arise, by attaching to the bill such an affidavit of the pur¬ chaser as the recording officer may prescribe. Real estate may be, and often is, rented by oral agreement; but a vvritten agreement, or lease, is better for both landlord and tenant. Forms of leases are kept by dealers in legal blanks, and should al¬ ways be used. The printed parts indicate or suggest how the blank parts should be filled. When filled, they should express the agree¬ ment fully and clearly, and additions to the statements provided for by the printed form may be made, if it is necessary to include in the document the whole agreement. A lease for more than two years should be recorded among the land records, to which end the land¬ lord should acknowledge it in the same manner as he would acknowl¬ edge a deed. A lease should always be in duplicate, so that each party may have an original lease. A lease is sometimes accompanied by a privilege to the purchaser to buy the property at an agreed price, at any time while the lease is in operation. Such a privilege should be included in the lease, or in a separately written agreement referring to the lease. If the privilege is a valuable one, the paper containing it should be recorded. A great deal of business concerning real estate and personal prop¬ erty is performed by means of powers of attorney. Blanks for power of attorney are sold by law stationers, and should always be used, the maker of a power first canceling any of the printed matter that goes further than his intention, or that does not fit the case. Ordinarily, a power of attorney is revoked by the death of the maker or the subject of it, but powers of attorney are often used for matters, and under circumstances, wherein it would be inconvenient or uujust to have the death of either party terminate the power. Some of the blank forms contain provisions for making the power irrevocable by death, but if such a form is not obtainable, it can be done by canceling such of the printed words in an ordinary form as are un¬ suitable, and then by adding written words expressing just what is desired. A power of attorney to sell and convey land should be acknowledged and recorded. One objection to real estate investments has been the apprehen¬ sion that something unexpected might turn up to impair the title, thus causing delay, trouble, and expense, when a sale or mortgage is pending. This rarely happens with agricultural land, or town prop¬ erty that has been long held in one family. But it does happen often 184 BUSINESS AND COMMERCE with city real estate of the active kind, which has been repeatedly transferred or mortgaged. The danger is now removed by the exist¬ ence of title guarantee companies, which, for a reasonable fee, will ex¬ amine a title and prepare the deeds, and for a further reasonable fee, will guarantee the title to be good against all comers. Such a guar¬ antee from a well-known title company almost universally does away with any doubt or question, and has given an augmented value to real estate as an investment. Experienced persons lending money on mortgages now often insist upon a guarantee certificate of title, and no important purchase should be made without one, or a certificate from a title company that the title is already good. Such a certificate will satisfy any reasonable buyer, and once issued, will serve indefi¬ nitely thereafter, the only subsequent expense being for continuations to bring the title down to date. Real estate investments have the general modern tendency to be¬ come specialized. Some people habitually invest in business property; others in resident property; others in vacant lots; some in suburban investments; and others in ground that can be rented for market garden plots until the town comes near enough to turn them into villa sites or suburban homes. Suburban investments are likely to pay a high profit when made as the result of experience and caution; yet, such is the general tendency of land to grow in value, that even an ex¬ travagant purchase may become a profitable one in twenty years; which, however, is a long time to wait. No other kind of real estate has so much of a future as that lying on the borders of a growing town or city. The late John Sherman, of Ohio, appreciated this fact many years ago in respect to the city of Washington, and though all his life one of the busiest of public men, he made a large fortune by bold, yet always sagacious, investments in outlying farms, which he bought by the acre, at farming land prices, and sold by the square foot, at city prices. Taxes on such lands are light, whereas vacant ground, already in the town limits, may eat itself up in taxes and interest while waiting for a rise in price. The particular class of real estate with which one deals is less important than the dealing with one class, so that the investor may become familiar with the ins and outs of that class of property and be in the best position always to buy or to sell. There is no such thing on earth as an absolutely safe invest¬ ment, but among the nearest approaches to one are government bonds, which pay a discouragingly low rate of interest, and real estate, which habitually pays fairly well and often far beyond moderation. Instead of paying all cash for one piece of real estate, it is often better to buy two or more pieces, letting as much as two-thirds of the purchase money remain on mortgage. But unless there is likely BUSINESS AND COMMERCE 185 to be a comparatively quick resale of some of the property, the pieces bought should be improved property, bringing in enough to fairly pay their way. In that case, the now low rate of interest on first mortgages, together with the constant, even when slow, tendency of real estate to grow in value, will work together to make a profit for the investor. Real estate speculation is as safe and as unsafe as speculation in general. The fact that the land is solid and fixed, while other sub¬ jects of speculation may vanish altogether, is of more interest to the creditors of a speculator than to himself. For speculation is not in¬ vestment, but a species of gaming, in which the speculator, relying on his own judgment, relies also, upon having luck on his side while the speculation lavSts. If luck fails him, his good judgment cannot save him. On the other hand exceptionally good luck may save him, even if his judgment was bad. A good investment is either made out of surplus means, or within the means of the investor, closely calculated. Such a purchase can endure a run or two of bad fortune without collapsing. But speculation, pursued as business, is based upon an inflation of actual means, and is subject to the universal law that one must take large risks to make large gains. In short, speculation is one of the business arts, and those who master the art are the win¬ ners. No habitual speculator wins always; indeed, the anticipation of losses and the provision for them in the general scheme are parts of the art. Occasional speculation, however, can be ventured upon by amateurs, so long as they do not go so deeply in any case as to risk permanent injury; and for speculation of that mild sort real estate is a good subject. A few words more may be said about mortgages — this time from the standpoint of the borrower. To pay four or five per cent, a year for money obtained or retained on mortgage, in order to employ that money in purposes that reasonably promise a gain or saving of from seven to ten per cent., is to make what may be termed a productive mortgage. Of this sort are many of the mortgages on store property, dwellings, and farms, and the borrowers, who are profiting as well as the lenders, need no commiseration. The fact that mortgages flourish most in prosperous times is a proof that they are among the means of bringing about that distribution of capital which is essential to a sound and active condition of industry. In bad times, a borrower dislikes to mortgage, through fear of losing his property, and a lender because he fears that he may not get his interest, which he does want, and may have to become the unwilling owner of real estate. An owner of improved real estate, like the holder of a mortgage upon that kind of proper.ty, should, of course, keep the buildings i86 BUSINESS AND COMMERCE well insured. Fire insurance on brick dwellings is comparatively so cheap that unless there be a good many houses to insure, the cost does not call for much study of economy. At the same time, it is to be remembered that brick dwellings are rarely totally destroyed by fire, so that an insurance to three-quarters of the value may be ordinarily regarded as safe; and the saving of cost, if there be four or five, or more, houses to insure will be an appreciable item. The insurance premium on any kind of building used for business pur¬ poses is heavier than in the case of a dwelling, and so is the chance of damage. The most frequent and most destructive fires are in those buildings where the business carried on is so hazardous that the cost of the insurance is almost, and sometimes quite, prohibitory. Speaking generally, the rule of wisdom is to keep the property insured to at least half its value. Out of forty planing mills, sepa¬ rately located, not more than two in a year are likely to catch fire, so that the owner of a building so used has nineteen chances to one of escaping loss. For the forty buildings, therefore, half insurance is a good average measure of safety. Fire insurance is effected by a written contract called a policy. This policy, with its many provisions, is really a most interesting historical document, for its language has been chosen, and put together, as the result of centuries of experience and centuries of liti¬ gation. It is also an interesting legal document, since in case of fire loss, and dispute, its provisions bind both the company and the loser and it is too late for the loser to make that addition to, or alternation in, the contract that could have been made beforehand, and probably would have been made if the printed parts of the policy had been carefully read. For the written parts of the policy are flexible, and so long as the rule of paying according to what one gets is complied with, a policy holder can have anything reasonable and consistent inserted in the policy. In the renting of a building for business purposes, the owner must be careful that the tenants are not privileged by their leases, or other forms of consent, to do things that would annul the policy on the building. The policy always describes the character of the build¬ ing and the uses to which the building is put; and if things are to be kept, or done, in it that go beyond the ordinary risks of such a building so used, the policy should contain statements covering the extra risks. This remark applies to a dwelling in which gasoline is to be used for fuel. So long, however, as the owner acts in good faith, and with reasonable care, the policy on the building is not affected by the bad faith or negligence of a tenant. The law demands reasonableness, but it requires nothing more. BUSINESS AND COMMERCE 187 In some places there are fire insurance companies operated on the mutual plan, so that the insured are also the insurers; where such a company is old, and in good repute, it offers a cheap yet safe kind of insurance. Storm losses on modern buildings are greater than in former days on the lower, smaller, and plainer, yet structurally strong, buildings then in vogue. Cyclone insurance, as it is popularly called, is becom¬ ing familiar in the cyclone or tornado districts, but elsewhere, severe storms occur every few years, and insurance against damage by wind, lightning, hail, and torrential rains, is very cheap. Plate glass insur¬ ance for costly store windows is already so common as to require nothing more than this passing mention. According to their own casual talk, landlords and tenants are the unhappiest and most unfortunate of mankind. Everybody knows what they say of one another, and how each thinks what a model landlord or tenant he would make, if the positions were reversed. Upon an average, each tells about half the truth concerning the other, and if they should ever get together in a kindly way, each could teach the other something worth knowing. Taking them in the mass, landlords as a class, and tenants as a class, the latter have rather a better position under modern law and present-day conditions. But a man who would live contentedly in a hovel that he owned himself could not be content in a rented mansion. Yet, in the nature of things, there must be landlords, and the owning of rented premises must, on the whole, be profitable; otherwise the overworked and inef¬ ficient government would have to face a crop of new blunders in trying to provide homes for the people. As a matter of fact, there are many landlords who find a satisfying profit in renting out dwell¬ ings, stores, factories, and farms. If, theoretically, it is always unprofitable to be a landlord — and practically it is often profitable — there must be an art of being a landlord. That there is such an art, let the following story, especially obtained for this work, attest. I own, in my own right, or as trustee for others, about seventy- five houses. The majority of them are dwellings, but there is quite an assortment of stores, stables, blacksmith, and carpenter shops, greenhouses, and a few small factories or shops of a miscellaneous kind. Some are rented by the year, but most by the month. Whenever I rent a place, I have a written lease. I use the form drawn up by the bar association of this country, but because of my long experience, I have added a provision that tenants shall pay for damage done by careless use of the plumbing fixtures. I have never demanded nor received, nor ever expect to receive, a dollar from a tenant for plumbing repairs, but as the condition is in the i88 BUSINESS AND COMMERCE middle of my own printed lease, in heavy black type, I have seventy- five people looking after my plumbing, and that is the next best thing to being a plumber myself. My calculation is that if a house is worth twenty dollars a month, I can get ten months’ rent in a year, taking one year with another, and allowing for bad tenants and for months when the house is vacant. That is two hundred dollars a year; but this sum divided by twelve months, instead of ten months, is $16.66 a month. So I put the rent at eighteen dollars a month, which, being a cheap rent, enables me to select and to keep good tenants. In that way, I find I get quite eleven months’ rent in every year, which is only two dollars less than ten months’ rent at twenty dollars a month. But my saving of loss and damage, through having good tenants who seldom move out, is quite worth twenty dollars a year; so I get more than if I held the rent at twenty dollars. Whenever one of my houses is vacant, I go over it carefully and jot down what I should want done to it if I were going to occupy it myself. These things I have done. Very often, a tenant is willing to take the place without these repairs, or with only a part of them. That does not make any difference, the repairs are made all the same. I want him to have so good a house for his money that he cannot afford to leave it, or to be ejected for non-payment of rent. I never have to spend money in advertising a house for rent, because I have a long list of people who want to rent from me, and I am able to choose my tenants. What I save in advertising, I put on the prop¬ erty. Although I have the best lot of tenants in the city, they will come to me with excited complaints of things out of order. I go at once and examine the plaee. If anything is out of order, I have it made right at once. If they are complaining without cause, I invite them to vacate the house, and that brings them to order. The kind of tenants I have, spend considerable money, in the aggregate, to have things to suit themselves, and what they spend to please themselves is usually a benefit to the property. Many of my houses are old-timers, and originally lacked what are now regarded as modern improvements. But they now have all the modern improvements that can be put into them, short of tearing them down to the ground. There are electric push buttons instead of door bells, electric gas lighters instead of matches, gas heaters in the bath-rooms, wood mantles with mirrors, and nearly all the latest notions. Some years ago I took the fancy of putting a small sized gas stove in each of the kitchens of my dwelling houses. Very few wanted them, and some of the tenants intimated that I owned stock BUSINESS AND COMMERCE 189 in the gas company. Now, seven-eighths of the breakfasts are cooked on the gas stoves, and the quick-breakfast gas stove will rent a house when all other attractions fail. I hear a good deal of outside talk about rents being so low as to leave no profits for the landlords. I make a clear six per cent, on the houses I rent, and if I sold them all for cash, I should not know where else to put the money to bring in six per cent. Besides that, I have the profit of the increasing value of the ground, which costs me nothing except an occasional trifling addition to the taxes. Add¬ ing that to the income from rentals, I am getting at least eight per cent, on the investments.^^ This story of some seventy-five rented houses might as easily be the story of a single rented house, and shows that the secret of suc¬ cessful investment in improved real estate lies in a just balancing of the separate, but not hostile, interests of landlord and tenant. The experience is common enough among the great landholders and the tenant farmers of both England and Wales, but that would be too far-fetched an example for this country, where such interlocked classes are almost unknown. It is easier to make a good investment by way of a secured loan than to buy the property outright. The amount of a loan rarely does and never should exceed seven-tenths of the carefully ascertained value of the property, whereas, even a bargain purchase seldom falls much below the true general market value of the property. In the case of a loan, there is a broad margin to absorb such unforeseen contingencies as a defective, or incomplete, title; costs of litigation, or other extraordinary expenses; a decline in the value of a particular property, or of property in that neighborhood, or of that kind of property in general; or any other casualty lessening or tending to lessen the value of the security. In the case of a purchase invest¬ ment, if anything of an unfavorable nature develops, there is always the fear of an actual loss, and very often the empty joy in the end of getting out of the investment without profit. So that anybody sat¬ isfied with moderate gains, if well assured of them, may wisely look to mortgages as a good kind of investment, safe, and comparatively easy to make. City real estate is harder to value for a purchase than for a mort¬ gage. Among real estate men, a difference of ten to fifteen per cent, in the valuations of expert appraisers excites no surprise. Real es¬ tate logicians say that the true value of a piece of realty is what it will bring when put to public auction, after being fairly advertised. Private sales are but loose evidence of value. A seller may be com¬ pelled to forego what he regards as a fair price, in favor of a quick BUSINESS AND COMMERCE 190 sale at almost any price. The price that a buyer considers low, may be twenty per cent, higher than the best offer that can afterward be obtained for it. A real estate agent, charged with a private sale, may impress his valuation upon the purchaser, while the latter or his agent may never be able to raise anybody else to an equal figure. At present, the tendency of real estate values is toward steadiness, except in what are called boom towns,— while the boom is working. With steadiness, instead of rapid increase, as the tendency, expert valuers now give the first place to a calculation of rent earning capacity, instead of, as formerly, to a calculation of the yearly rise, and of the time intervening before the next period of general de¬ pression. Upon ground already improved, rental capacity is figured upon the improvements as they stand. If, without extensive rebuild¬ ing, the improvements are obviously capable of being themselves im¬ proved, and the character of the property and the locality justify it, the cost of the further improvement is calculated, and then the rental value in the new state. If the ground be vacant, the cost of suitably improving it, according to its own character and its surroundings, is approximately estimated, and then the rental value; and from these figures is calculated the value of the vacant ground, reduced to so much by the front foot or square foot. Farming lands are more easily valued, as their ups and downs are much slower. In such a case, the valuer inquires into the local average rate of rise or fall during the last ten to fifteen years, takes into account the agricultural prospects of the neighborhood for about the same time ahead, and then makes allowances, upward or downward, for the particular features and circumstances of the farm under valuation, including fences and buildings. To buy a home, or the site of a home, in town or country, is not, strictly speaking, an investment, and to pay ten or fifteen per cent, more than a mere investor would pay, for a place that, suits, is not to be regarded as an ultimate misfortune. A real estate agent who knows that a prospective customer is looking for a home, talks much more about the attractions of the place he is showing than of their intrinsic values, knowing that when the right place is found, any price within reasonable bounds will be cheap to the homeseeker. Human nature works the same in this case as- when a woman shop¬ per buys a dress pattern or a bonnet that she particularly likes. It is invariably a bargain, and its being a bargain is half the pleasure. Receipt. — A written acknowledgment of payment. Receiver.— An officer appointed by a court to hold in trust prop¬ erty in litigation, or to wind up the affairs of a bankrupt concern. BUSINESS AND COMMERCE 191 Refunding. — The substitution of low interest-bearing bonds for those paying a higher rate. Remittance.— Transfer of funds from one party to another. Renewal. — Giving a new note for an old one. Returns. — Profit on an investment. Reversion.— Right to possess property after the happening of some event, as the death of a person. Salvage.— Compensation given those who rescue ship or cargo from loss. Scrip. — Certificate of stock given before registration. Securities. — Documents securing a right to property. SECURITIES, DEALING IN Functions of the Stock Market — How Capital Is Put to the Most Produc¬ tive Use — Warning against << Bucket-Shops and Foolish Speculation — Sound Investments in Securities— How Rothschilds Deceived the London •* Market — Danger of Plausible Schemes Presented to Women—Small In¬ vestment Returns the Safest — Government Bond Issues — Difference be¬ tween Stocks and Bonds — The Principle of Limited Liability—Market Price and Par Value. S OME knowledge of the character and operations of the stock market is desirable for all engaged in practical business, and especially for women who have independent resources, or whose affairs are in the hands of trustees or attorneys. Speculation on margins in the stock market is unwise, and is almost certain to result in loss rather than profit, except to those whose business brings them legitimately into the market. The stock market and the produce exchanges have definite uses, however, in the structure of modern industry. The crit¬ icisms against them, so often heard, are due to ignorance of their beneficial functions, and to the abuse of these functions which has been practised. The stock market and the produce exchanges, in their legitimate sphere, are only the final expression of that thorough or¬ ganization which extends through modern industry. The stock market is the place where the value of securities is de¬ termined. This value finds expression in changes of quotations. While these quotations are sometimes affected by false rumors and influenced by manipulation, they usually find their true level in the 192 BUSINESS AND COMMERCE long run, according to the real value of the security. If, for instance, the Pennsylvania Railway is well managed, and is earning large divi¬ dends, its stock and bonds will be quoted high. Enemies of the road may cireulate false rumors which may carry the quotations off a few points, or a group of speculators may undertake to depress the market by selling a block of the stock at a low price, in the hope of buying back a larger amount while quotations are feeling the effect of their operations. But if the stock has real value, these devises will accom¬ plish little against it. The speculators who make sales at low prices may be forced to make actual deliveries to those to whom they have sold, and to pay high prices in order to get the stock. The market will then go up again and the real solidity of the investment will be shown. In the long run, therefore, the stock market is the sensitive and accurate register of the value of any enterprise or investment. It is the operations of the stock market that determine the direc¬ tion in which capital shall be- invested with the greatest benefit to the community. If an enterprise is not paying well, people will stop buying its securities. They will not buy new securities put on the market for similar enterprises. This is where the stock market ren¬ ders its highest service to the community. If there were no stock market, with its sensitive register of the real value of investments, shrewd and unscrupulous speculators might continue to create worth¬ less enterprises, and to dispose of their securities at their own prices, thereby swallowing up the savings of the poor as well as those of the rich. It would be not only the individual who would suffer in such a case, but the entire community, because the stock market would cease to drive capital toward profitable enterprises. Under the sys¬ tem of public quotations on the stock market, if cotton mills are pay¬ ing well, their stock sells high. It becomes possible to sell stock in new cotton mills. Capital can therefore be found for new mills as long as they continue to be needed. When they become too plentiful, the rate of profit in such mills falls to the rate of profit in other en¬ terprises. Then the stocks are no more attractive than are other stocks, and they cease to draw the savings of the community into such investments. The result of these operations is that the stock market affords a constant medium for drawing the savings of the community into those enterprises which are most useful. The market operates with an intelli¬ gence that, although automatic, is more accurate and delicate in employ¬ ing saved capital, where it accomplishes the most of all, than is any single human intelligence. The proof that it does the most is the fact that it earns the largest returns. Men pay the highest price for the thing they need the most, and they pay the highest price for money BUSINESS AND COMMERCE 193 when it yields the largest net income. The stock market, therefore, is the center in which are determined the equations of value. With¬ out it, organized industry would be seriously crippled, if not para¬ lyzed. The same may be said of the produce exchanges. Sales of products for future delivery on these exchanges are only the expression of the judgment of experts as to future conditions of supply and demand. It has been contended by critics of the exchanges that the offer of a man to sell what he has not at his command has a similar effect upon the price as an actual increase in the quantity of the goods. A little examination, however, will show that this could net be the permanent effect. If he sold below the real value of the goods, as determined by supply and demand; and by intelligent esti¬ mates of future supply and demand, he would be forced to deliver the goods which he had sold, and would be subjected to severe loss in finding them at the high prices which they really commanded. The grocer who takes an order for a barrel of flour when it is not in his store, cannot prudently sell below the real value of flour. If he does so, he will attract a great many orders, but he will have to find the flour and to pay its real cost of production. The anticipation of future conditions, and of sales for delivery under those conditions, tends to steady prices and to prevent violent ups and downs. These are the fundamental principles that justify the operations of the stock and produce exchanges. They are subject to abuses, among the greatest of which is the appearance of gamblers, who do not judge intelligently of the conditions of the market, have not the means of judging, and do not seek to obtain them. Business on the stock and produce exchanges, however, even when conducted imprudently, differs radically from dealing with the bucket-shops,^^ which infest American cities and towns. These institutions are usually run by persons of limited responsibility, leading a nomadic life, and are only gambling rooms. A broker is an agent, whose interests are not hos¬ tile to those of his client. He buys and sells securities, with the in¬ tention of delivering them if called upon to do so. It does not change the nature of the transaction that a buying order may offset a selling order, and reduce the amount of stock actually delivered. A bucket- shop, on the other hand, does not deal in securities. It deals only in wagers on the probable fluctuations in their prices. These wagers cannot affect prices as legitimate offers to buy and to sell affect them, because they do not involve a real offer to buy. The bucket-shop keeper, moreover, profits by the losses of his patrons. If they bet that a stock will go up and it goes down, he pockets the margin. As the public usually takes an optimistic view, and buys in expectation of a rise of prices, the bucket-shop keeper profits by their fall. A Vol. XIII—13 194 BUSINESS AND COMMERCE long-continued upward movement usually drives the bucket-shops to suspend, and those who patronize them lose the benefit of their oc¬ casional correct guesses. Such transactions do not possess even the character of unwise speeulation, but involve the hopeless folly of other gaming, betting against the bank.^^ No man or woman should have any dealings with bucket-shops, no matter what alluring stories of success may be told by their acquaintance. Stock exchange securities are legitimate investments, and the person with money saved may often profitably engage in their pur¬ chase and sale. The best course to pursue, however, is to buy them for full value, and to retain them until there is special reason for making a sale. If bought for full value, they can be held by the owner in spite of temporary fluctuations, and, finally, can be sold at a profit, if the priee rises much above the priee that he paid. In making such a sale, however, with the expectation of profit, it would be' neces¬ sary to consider whether a better investment could be made with the money obtained. If business was active and all stocks had risen, the apparent profit of selling what he had might be offset for the investor by the high prices he would have to pay for a new investment equally good. In any case, the owner of a security need not be disturbed by temporary fluetuations, caused by politieal rumors or by changes in general business conditions, so long as he is assured of the soundness of the security, and of the regularity of its dividends. The chief influence which should lead him to disDose of his securitv would be some positive information regarding the mismanagement of the enter¬ prise, or the decline in its earning power. If a prudent investor should seek to make money by other means than through the actual dividends paid upon securities, he should pro¬ ceed with great conservatism, and should be prepared to retain stocks that did not move upward in price as expected. Some of the greatest fortunes have been made by speculators who have bought in periods of panic when everyone else was selling. They picked out the securi¬ ties which they believed to be sound, and held them until the panic ended and priees rebounded. They were then able to sell at a hand¬ some profit, independently of the dividends earned by the securities. Henry Clews, speaking of the veterans of the market, in his Twenty- Eight Years in Wall Street,says; — << These old veterans of the street usually spend long intervals of repose at their comfortable homes, and in times of panic, which recur sometimes oftener than once a year, these old fellows will be seen in Wall Street, hobbling down on their canes to their brokers’ offices. They always buy good stocks to the extent of their bank balances, which have been permitted to accumulate for just such an emergency. To this method of dealing is attributed much of the wealth of the BUSINESS AND COMMERCE 195 great European houses, like that of the Rothschilds. One of them, when asked for the secret of his success, offered the simple formula, I buys ^ sheap ^ and sells dear. An interesting story is told of Nathan M. Rothschild, who was the London representative of the house at the time of Napoleon’s last campaign. Rothschild was determined to get the earliest news of the result of the fighting in Belgium. He was with Wellington at Waterloo, and the moment he was confident that the issue was decided against Napoleon, he spurred his horse to Brus¬ sels, took post carriages to the seashore, chartered a small fishing boat, in the face of a terrific storm, by a bonus of $400, and the next morning stood on the London exchange with gloomy countenance, hinting at a terrible defeat for the English and allied forces. Stocks tumbled violently. Several independent brokers whom Rothschild had secretly retained, bought quietly, but steadily, at the reduced prices. Next day came the news of the great victory of Wellington and the retreat of Napoleon. Stocks bounded upward, and Rothschild sold at enormous profits. This incident, not very creditable to the honesty of the principal actor, illustrates the methods which can be resorted to by the great speculators in order to mislead ^Hhe small fry and to manipulate the market. The telegraph, the telephone, and the ocean cable, have greatly diminished the opportunities for frauds of this character, but they are still possible within narrow limits. The foolish young man or woman who bets on margins, ignorant alike of the real value of the securities and of the secret scheming of the great speculators, is likely to find himself or herself as hopelessly plucked as is the most innocent ^Hamb^^ from the backwoods who ventures into the maelstrom of the stock market. The small or ignorant operator usually makes the mistake, also, of embarking all his resources on narrow margins. An unexpected change in market conditions, causing prices to fall violently, exhausts his margins, and compels the sale of his holdings at a loss. Many professional operators in securities take advantage of these conditions to raid the market, knowing that when they have reduced these unsupported margins, there will be a rush of selling orders that will tend to break down prices. If small operators kept strong cash reserves for strengthening their margins, the power of the bears and the wreckers to raid the market would be reduced, and fewer serious losses would result. It is the judgment of many veteran brokers, upon the whole, that no man who speeulates on margins ever comes out ahead in the long run. A big haul at one time only spurs him to greater recklessness in other ventures, to say nothing of the temptation to expand his expenses and manner of living, that comes naturally when money can be obtained without being squarely earned. BUSINESS AND COMMERCE 196 The legitimate broker or speculator who gives his whole time to the study of market conditions, the needs for commodities in different countries, the influences tending to create abundant or scarce money, and the probability of panic or prosperity, earns what he gets as the reward of his research and judgment, but even he, with the utmost exertion of his faculties, acts in the presence of manifold uncertainties, which may turn an expected margin of profit into a heavy loss. The safest rule to be followed by women with property is to seek sound and safe investments, and to draw a regular income from them, and not to meddle with the stock market in any other way. There is no occasion for changing investments, unless there is reason to believe that they are losing their safety and earning power. One of the most dangerous temptations set before women, as well as before many men, is the promise of large dividends through investment in some new enter-prise. A persuasive friend, whose reputation, so far as the woman knows,‘may be as good as that of any person among her acquaintance, will often urge such investment, and paint glowing pictures of the large and certain returns to be derived from them. For several reasons, serious warnings may be given against listening to such propositions. The first reason is that there is a great difference in the character and integrity of business and professional men. These differences are well understood by men who come often in contact with them, but they may not be known to their women friends. The man who is apparently plausible, ingenious, and socially popular, may be well known by his fellow business men and by brokers, and financiers, to be untrustworthy, shady, and more or less unscrupulous in his deal¬ ings; If he is known to possess these traits with men, where he has to be on his guard against making statements which are subject to the test of their long business training, he will be likely to give much freer play to such traits with women, who are not familiar with busi¬ ness matters, because they cannot apply the test of minute knowledge of business propositions to his rose-tinted bubbles. Such men are extremely dangerous to women, and the more so, the greater their personal and social charms. They carefully avoid acts that are con- ' trary to law, or that would brand them publicly as criminals, but they sail as close to the edge of fraudulent misrepresentation as can be done without sacrificing respectability. In some cases, their fault is not intentional dishonesty, but a real exuberance of enthusiasm for dubious enterprises by which they deceive themselves as completely as they deceive other people. It may be safely declared, that if the investments which this class BUSINESS AND COMMERCE 197 of men offer to g-iilHble men and women were as meritorious as they describe, they would have no occasion to urge them. They would find capitalists with hundreds of thousands of dollars, eager to invest in any safe enterprise that promised more than the current rates of four or five per cent. These capitalists are the very people who ought to embark on such enterprises, where they are somewhat spec¬ ulative and yet give actual promise of merit. Capitalists with large means often take shares in new enterprises because they embody the possibilities of great things in spite of serious risk. They can afford to lose. They act with their eyes open, and take the chances of loss. The man and woman of moderate means, who does not care to lose, cannot afford to go into such enterprises. The chances of loss are great enough in those enterprises upon which capitalists are will¬ ing to embark, they are infinitely greater in those which do not even tempt capitalists, and which are imposed upon men and women who have not the business and professional training to see their weak points, or to resist the special pleading of their promoters. Sight. —The time when a bill is presented to a drawee. Sight Draft.— One payable at sight, i. c., when presented. Silent Partner.— One who furnishes capital but takes no active part in a business. Sinking Fund. — A fund set apart from revenue to pay a public or corporation debt. Specialty.'— K written, sealed, and delivered contract. Specie. — Any kind of coined money. SPELLING Much has been said and written of the somewhat arbitrary and irregular manner in which the words of the English language are spelled, and although many steps have been taken to bring about a reform, nothing really radical in that direction has been done. It is not an easy matter to overthrow a system of spelling which has become firmly established by the usage of hundreds of years, especially when this is sought to be accomplished by thrusting upon the country at large a set of rules with the expectation that everyone will learn and faithfully follow them. Unfortunately, the contentions of those who cry out at what they term the absurdity of our spelling are, to a certain extent, true. It is contended by some philologists that originally our spelling was purely phonetic and that the present awkward forms are the result of BUSINESS AND COMMERCE 198 typographical errors, ignorance, and whim, but this theory is ridiculed by many others. The* fact is, we are struggling toward a consistent and phonetic system by degrees, which, although almost imperceptible, are thoroughly in accord with the philological maxim, write as you speak. This struggle is but a natural evolution whose course cannot be quickened artificially, as is believed by those individuals who call themselves reformers. The natural antipathy of the race to incon¬ sistency and complexity will continue to assent itself, and by a process of mutual tacit consent, these objectionable features will slowly, but certainly, wear away. It is conceded^ however, that much positive good can be done by the votaries of the arts and sciences, so far as the nomenclatures of their professions are concerned, for the reason that the words which they contain are used by the laity to a very limited extent, and it is possible that among such a small percentage of the population of the country as each profession comprises a reform can be made. In this connection the action of the chemical section of the American Asso¬ ciation for the Advancement of Science may be mentioned. This body passed a resolution advising that the report of its committee on spell¬ ing and pronunciation of chemical terms be followed. This section has received the approbation of many eminent chemists in the United States, among whom may be mentioned Harvey W. Wiley, M.D., Ph.D., chemist of the U. S. Department of Agriculture; Albert B. Pres¬ cott, M.D., Ph.D., late president of the American Association for the Advancement of Science, and Edward S. Wood, Professor of Chemis¬ try, Harvard University. The number of conventions that have been held for the purpose of endeavoring to bring about a general reform in spelling is sur¬ prising, and this coupled with the fact that very little has been ac¬ complished would seem to indicate the almost utter uselessness of such a method. They have, however, been attended by eminent and learned men, prominent among these being Benjamin Franklin and Noah Webster, both of whom made vigorous efforts for reform. In England, Isaac Pitman, the inventor of phonography, spent a number of years laboring for it. In 1874, at the annual meeting of the Amer¬ ican Philological Association, in Hartford, the president called atten¬ tion to the monstrous spelling of the English language. In 1875, a committee was appointed, consisting of the first president of the association (Professor William D. Whitney) and other representatives of our great universities of linguistic science, to whom the whole sub¬ ject was referred. The next year, 1876, they reported in favor of a reform and laid down the principles which should guide it. This committee has been continued ever since from year to year. BUSINESS AND COMMERCE 199 In 1876 an international convention for the advancement of Eng¬ lish orthography was held in Philadelphia. It was well attended from all sections of this country and England. It was presided over by Professor Samuel S. Haldeman, of the University of Pennsylvania, and at that time president of the Philological Association. On August 17, the convention resolved itself into the Spelling Reform Associa¬ tion. The deliberations of the convention led to an agreement to re¬ fer all alphabetic questions to the Philological Association, and their ideas and the proposed methods of reform laid before the committee of that association. In July, 1877, the committee presented to the Philological Association a report that contained the recommendation of a phonetic alphabet, and in the same year this alphabet was adopted by the Spelling Reform Association. It is called the Standard Phonetic Alphabet and by it words can be formed with simplicity and correctness. In addition to this alphabet, the Philological Asso¬ ciation in 1886, adopted a set of rules which if put into general use would greatly change the spelling of a large majority of our words. But where are the results ? In spite of the vast amount of work, no newspaper or magazine has had the courage to change, even in slight- particulars, the spelling of the words intended for the public eye. It seems, therefore, that while it is a comparatively easy matter to suggest reform and where it shall be applied, it is an exceedingly difficult, if not impossible, project to bring it about, and while we may hope that a simple method of spelling will fall to the lot of succeed¬ ing generations, it is our manifest duty to fall to work and master the spelling of the present day in spite of its difficulties. Incorrect spelling is so common a failing that even men deeply learned in other sciences are deficient in it. The Civil Service ex¬ aminations in this country show that about eighty-five per cent, of those examined for clerical positions fall short in this branch. The other fifteen per cent., however, show aptitude for it, which would in¬ dicate that there are but two degrees of spellers, ^^good^^ and ^^bad,^^ and from this it may be fairly inferred that spelling is as much of a natural gift as painting or singing. Certainly we do not spell entirely by rule. What sense then is it that is employed ? Obviously that of sight, together with the faculty of association. If a person endowed with a keen sight and a good memory sees a rosebush growing beside an oak tree, he will remember, should he desire to locate the bush at some future time, that it is adjacent to a tree of that character, and thus he will be enabled readily to find it. Similarly he will be en¬ abled to remember that in certain words an e follows a g and in cer¬ tain others it is followed by some other letter. There is no excuse for misspelling ,the short words that appear 200 BUSINESS AND COMMERCE before our eyes hundreds of times a day, unless we be bereft of our faculties, yet how frequently are we surprised at the ignorance of our learned friends from whom we receive communications; as to the longer words, why should we misspell them while there are good dic¬ tionaries in abundance and every means of access to them? In spite of the vagaries and inconsistencies in our spelling, hundreds of errors may be safely attributed to carelessness and negligence. With a full realization of the danger of error, it is our duty to employ all possi¬ ble means of improving ourselves in this, the most important branch of our education. The following set of rules for spelling English words is strongly commended to the student who desires to pursue the subject of or¬ thography in an orderly manner. This classification and arrangement is made with a view to sim < plicity, and if the student will master one rule at a time, and that one thoroughly, in a short time he will possess a systematic knowledge of spelling that will prove of inestimable value. Monosyllables 1. Monosyllables ending with /, or y, preceded by a single vowel, double the final letter; as staffs wtl/, pass. The only important ex¬ ceptions are clef., if., of; bul., nul., sal., sol; as, gas, has, was, yes, gris, his, is, this, pus, thus, us. 2. Monosyllables ending in any other consonant than f, I, or do not double the final letter. The only common exceptions are abb, ebb, add, odd, bigg, egg, mumin (to mask), inn, bunn, err, burr, purr, mitt, fizz, fuzz, buzz. 3. A consonant at the end of a word immediately after a diph¬ thong or double vowel is not doubled; except in the word guess. Doubling Final Consonants I. Monosyllables and words accented on the last^ syllable ending with a single consonant (except h or x) preceded by a single vowel, or by qu and a vowel, double the final consonant before an additional termination beginning with a vowel, whether a syllable is added or not; as rob, robbed, robber, robbing; regret, regretting, regretted; fop, foppish, foppery; committee; thin, thmner, thmnest, etc. Except that when the place of the accent is changed, the final consonant is not doubled; as refer, referenee, referable; prefer, preferable. BUSINESS AND COMMERCE 201 2. A final consonant when it is preceded by a diphthong or by two vowels, or when the accent is not on the last syllable, is not doubled on assuming an additional termination; as oil^ oiling^ oily; briefs briefer^ briefest; real^ realize^ realist; benefit^ benefiting^ benefited; equals equalize^ equality. 3. An important exception to this rule exists, by general usage, in regard to words ending in in which / is usually doubled on taking an additional termination beginning with a vowel, excepting only in the word novelist and the derivatives of parallel., as paralleled, paralleling, etc. The following list comprises all the verbs which double the final / on taking an additional syllable: — apparel drivel imperil parcel shovel bevel duel jewel pencil shrivel bowel embowel kennel peril snivel cancel enamel label pistol tassel carol empanel level pommel trammel cavil equal libel quarrel travel channel gambol marshal ravel tunnel chisel gravel marvel revel unravel counsel grovel model rival vial cudgel dishevel handsel panel rowel victual Other common exceptions to the rule are humbug, periwig, zigzag, kidnap, worship, eompromit, carburet, and similar chemical terms ending in uret, which double the last letter before an addition, and also the word woollen, from wool. 5. The reason for doubling in all these cases is to prevent mis¬ pronunciation. Webster, however, allows none of these exceptions to the rule except in the derivatives of hmnbug, periwig, zigzag, and eompromit. Words Ending with a Double Letter 1. Words ending with any double letter preserve it double before any added termination not beginning with the same letter, and in all derivatives formed by means of prefixes; as wooer, seeing, agreeable, stillness, blissful, recall, depress, foresee. 2. Except instalment, enthralment, thraldom, ejirolment, dulness, ful¬ ness., skilful, skilfully, wilful, ivilfully, and words derived from pontiff, pontific. Also withal, therewithal, wherewithal, until, as well as distil, fulfil, and instil, with their derivatives. Webster, however, doubles the I in all these words, except withal, therewithal, whereivithal, and until. 202 BUSINESS AND COMMERCE Final or « CK » 1. Monosyllables and verbs of more than one syllable ending with the sound of k take ck at the end, as black, stick, knock, etc. The only exceptions are the monosyllables lac, sac, talc, zinc, plac, roc, soc, marc, arc, and fisc; and the verbs frolic, mimic, physic, traffic, havoc, and bivouac, with the present tense. But when these verbs assume the termination cr, ed, or mg, the k is inserted to show the hard sound, as frolic, frolicking; traffic, trafficked. 2. Words of more than one syllable ending in ic or iac are written without the k; as music, critic, maniac {derrick is an exception). Words of more than one syllable, in which c is preceded by any other vowel than is or ia, end in ck. But almanac, sandarac, limbec, xebec, maniac, and havoc are exceptions. Final Or or Our All words formerly ending in our with the o unsounded are now invariably spelled in America or; as honor, labor, parlor, etc. The only exception is the word Saviour in referring to Christ. In Eng¬ land the u is retained in many of these words. Final Ise or Ize The only verbs ending with the sound of ize which are now spelled ise in this country are the following:—r advertise compromise enfranchise premise advise comprise enterprise reprise affranchise criticise exercise revise apprise devise exorcise rise arise despise improvise supervise catechise disfranchise merchandise surmise chastise disguise misprise surprise circumcise divertise 1. Derivatives from words ending with silent e after a conso¬ nant, asA, edge, edgeless ; hate, hateful; chaste, chastely, ^\.q. The words zvholly, nursling, abridgment, acknozvledgment, judgment, lodgment, and wisdom are the only common exceptions. 2. When the final e is immediately preceded by another vowel (except e or i), it is generally dropped before a consonant, as true, truly; argue, argument; awe, awful; woe, woful. But the e is retained in some words of this class, as bluely, blueness, trueness, rueful, shoe¬ less, eyeless. BUSINESS AND COMMERCE 203 3. Derivatives from words ending with silent e omit the e when the termination added begins with a vowel (with the exeeption given below); as bride ^ bridal; guide, guidance; use, ifsage; force, forcible; triie, truism; sale, salable; eye, eyeing; centre, centring; rule, ruling; mileage is an exception. 4. Words ending with cc or ge retain the e before the words begin¬ ning with a or 0 to preserve the soft sound of the c or g; as trace, traceable; change, changeable; courage, courageous ; outrage, outrageous. Legal usage, however, is in favor of mortgagor. 5. The e is retained in hoeing, shoeing, and teeing; and also in the words dyeing, singeing, and tingeing to distinguish them from dying, singing, swinging, and tinging. 6. Words ending with ie change the ie to y on taking the addi¬ tional syllable ing; as die, dying; lie, lying; vie, vying. Final 1. Words ending with y preceded by a consonant change the y to i before any termination not beginning with i; as, cojitrary, contrarily, co7itrariness; icy, iciest, icily; merry, merrier, merriest, merrily, merri¬ ment; pity, pitiful, pitiless, pitiable, pitied, pitiest; spy, spied, spies. 2. Adjectives of one syllable ending in y are exceptions, and retain the y; as sly, slyer, slyest, slyly, slyness; spry, sprycr, spryest, spryly, spryness; dry, dryly, dryness. But dies and driest are usually written with the i. 3. Derivatives of words ending in y which are formed by adding ship are also exceptions; as ladyship, suretyship. Also the words baby¬ hood and lady kin. 4. Words ending with y preceded by a vowel, do not change the y before an added termination; as gay, gayety, gayly, gayness; play, playful, playing. The word daily is an exception, as are a few irreg¬ ular verbs, like said, saith, paid, laid, etc. The Plural 1. The regular plural of nouns is formed by the addition of .y to the singular; as book, books; shoe, shoes; eye, eyes; straw, straivs; horse, horses, etc. 2. If the singular ends with .9, sh, eh soft, or x, the plural is formed by the addition of es; as omnibus, omnibuses; mass, masses; lash, lashes ; church, churches; fox, foxes. 204 BUSINESS AND COMMERCE 3. If the singular ends in 0 preceded by another vowel, the plural . is formed regularly by adding as folio^ folios; cameo^ cameos; bam¬ boo, bamboos; embryo^ embryos; two, tivos. 4. If the singular ends with 0 preceded by a consonant, the plural is generally formed by adding echo, echoes; hero, heroes; motto, mottoes ; potato, potatoes. 5. Proper names ending in 0, and the following commion nouns, form the pliiral regularly, as Ncros, and albino fresco limbo portico solo canto grotto momento quarto stiletto cento halo octavo rotundo torso domino junto piano salvo tyro duodecimo lasso proviso sirocco 6. Nouns ending in y preceded by a consonant or by qu form the plural by changing y into ics; as lady, ladies; mercy, mercies; body, bodies; colloquy, colloquies. But if the y is preceded by a vowel, ^ only is added for the plural; as boy, boys; day, days; valley, valleys; but ay, ayes. Some proper names ending in y simply add for the plural; as Henry, Henrys; Tally, Tallys. 7. The third person singular of verbs is formed in accordance with the foregoing rules; as sides, marches, goes, begs. 8. The following nouns ending in f or fe form the plural f or fe into ves; viz, beef, calf, elf, half, knife, leaf, life, self, sheaf, zvife, zuolf and zvharf. Staff is usually written staves in the plural. All other nouns ending in f, fe, or ff^ form the plural regularly; as proof, proofs; strife, strifes, etc. 9. The plural of the following words is made by changing the vowel sound of the singular; as, man, men; zvoman, women; goose, geese; foot, feet; tooth, teeth; mouse, 'mice. Compounds of these words form the plural in the same way; as, dormouse, countrymen. But the syllable man at the end of a word must not be mistaken for a com¬ pound of the word man; as german, germans; talisman, talismans. The plural of ox is oxen; child, childreti. 10. Many words derived from the classical or from foreign lan¬ guages retain the plural form of the language from which they are taken, although many of them have also the regular English plural; as crisis, crises; hypothesis, hypotheses; criterion, criteria ; memorandum, 'jjiemoranda; matrix, matrices; larva, larvce; appendix, appendiees; genus, genera; beau, beaux; bandit, banditti or bandits; seraph, sera¬ phim or seraphs. BUSINESS AND COMMERCE 505 Below is given a list of words the spelling of which is dis¬ puted, showing the opposing forms. The form given first is the one accepted by the higher authorities, whose criterion is, of course, the concensus of usage. The tendency nowadays is to simplify the spelling of words. This has given use to two or sometimes more forms of the same word. Those in favor of spelling reform adhere to the simpler form. Those who believe that the word should in its form show some re¬ semblance to the foreign word whence it was derived cling as per¬ sistently to the old form. This is largely the cause of disputed spell¬ ings. There are other factors which cause this duplication of form. Among these are local peculiarities of pronunciation which frequently distorts the form of a word. The most noticeable among the list here given are chemical terms such as bromin or bromine; iodin, iodine; chlorin, chlorine. The elision of the final e of this class of words conform to a resolution passed by the Chemical section of the American Association for the Advancement of Science advising such form to be adopted. The best authorities are not always in our immediate reach, and in cases where such as are accessible are considered only mediocre, or are in conflict, a reference to this list will afford the desired information: — List of Words of Disputed Spelling. abatis; abattis abetter; abettor abietin; abietine abridgment; abridgement acacin;' acacine accessary; accessory accounter; accountre acetamid; acetamide Achean ; Achaean; Achaian achenium; achsenium; akenium; achene acknowledgment; acknowledgement acmite; akmite; achmite aconitin; aconitine addable; addible addorsed ; adorsed; adossed adipocere; adipocire admittable; admittible; admissible adz; adze segilops; egilops seolididae; eolididae; eolidae aepyornis; epiornis; epyornis aerie; aery; eyrie; eyry; airy agistor; agister; agistator aglet; aiglet agriculturist; agriculturalist aide-de-camp; aid-de-camp aigret; aigrette ajutage; adjutage alanin; alinine alantin; alantine alcaide; alcaid ; alcade Alcoran; Alkoran Algonkin; Algonquin aline; align; alline • alkahest; alcahest alkali; alcali; alcaly alouatte; alouate; allouatta ambassador; embassador ambergris; ambergrease amianth; amiantus; amianthus amidin; amidine amortize; amortise ampere-meter; amperemeter; ampere¬ meter amphidisc; amphidisk amphitheater; amphitheatre 2o6 BUSINESS AND COMMERCE amjlin; amyline anacoluthon; anacolouthon analyze; analyse anapest; anapaest anchoret; anchorite andesine; andesin android; androides anemia; anaemia anent; anenst annat; annate antecians; antaecians antemetic; antiemetic anthocyanin; anthocyane antiarin; antiarine; anthiarine antihypnotic; anthypnotic antimonureted; antimoniuretted apar; apara apheresis; aphaeresis apheretic; apaeretic apodictic; apodeictic apodixis; apodeixis apostil; apostill; apostille apothegm; apophthegm apothem; apotheme appal; appall appalment; appallment; appalement appareled ; apparelled ; appareld apprize; apprise appui; appuy arabin; arabine araeostyle; areostyle arbalest; arbalist; arblast arbor; arbour archeus; archaeus ardor; ardour argol; argal armor; armour arnut; arnot; arnott arrondi; arrondee ; arrondie arsenate; arseniate arshin; arshine; arsheen artocarpeous; artocarpous asafetida; asafoetida asbestos; asbestus asbolite ; asbolan ; asbolane ashlar; ashler assizer; assizor; assisor; assiser astrean; astraean attar ; ottar; otto attracter; attractor aubergist; aubergiste aunty; auntie auripigment; auripigmentum autopsic ; autopsical; autoptical avellane; avellan aventurin ; aventurine ; avanturine avocet; avoset ax; axe ay; aye aye; ay azym; azyme babiroussa ; babyrussa; babyroussa back-stairs; backstair backward ; backwards bade; bad bailor; bailer bakshish ; bakhshish ; backshish balk; baulk ballatodse ;. ballottade; balotade baluster; banister; balister bandanna;bandana bandoleer; bandileer; bandolier banian; banyan banns; bans bapistery; bapistry barbecue; barbacue bark; barque barreled; barrelled barytone ; baritone ; baryton basin; bason bass; base bastile; bastille bastihado; bastinade basyl; basyle battledore; battledoor bauble; bawble bayadere; bayadeer bazaar; bazar befall; befal behavior; behaviour belabor; belabour beldam; beldame benumb; benum benzin; benzine bergamot; burgamot berth; birth bestrew; bestrow betulin; betuline beveled ; bevelled ; bevilled biased; biassed binnacle; binacle binoxid; binoxide; binoxyde bisk; bisque bismuthin; bismuthine bismutite; bismuthite BUSINESS AND COMMERCE 207 bister; bistre blamable; blameable bogie; bogey; bogy boil; bile bombazine ; bombasin ; bombasine booze ; boose ; bouse boozy; boosy; bousy; bouzy bothie; bothy; boothy bourgeois; burgeois brachiopod; brachiopode braize; braise brand-new; bran-new brazilin; brasilin; brasiline bridesmaid; bridemaid bridesman; brideman brier; briar brooch; broach brucin; brucine brunette; brunett; brunet brusk; brusque bruskness; brusqueness bryonin ; bryonine ; brionin bucaneer; bucanier; bucaneer bun; bunn buncombe; bunkum bunion; bunyon burnoose; burnous; burnos butyrin; butyrine buxin ; buxina; buxine cacique; cazique caesura; casura calcareous; calcarious caldron; cauldron caliber; calibre calif; caliph; kaliph; kalif caliper; calliper calk; caulk calligraphy; caligraphy caltrop; calthrop; caltrap calyx; calix camlet; camblet; caemlet camomile; chamomile camphor; camphire cannel; canal; candle; kennel cannoneer; cannonier cantilever; cantiliver; cantaliver carat; caract; carrat; karat caravansary; caravansera; caravansery carnelian; carnelion; cornelion cassava; cassada; casava; cassavi caster; castor catchup ; ketchup; catsup; katsup caviar; caviare celiac; caeliac centiped ; centipede chalcedony; calcedony chalice; calice chap; chop char; chare; chore check; cheque checker; chequer chints; chintz chlorid; chloride cigar; segar clarinet; clarionet clew; cltie clinch; clench doffs; dough coddle; codie colander ; cullender coolie; cooly , coquette; coquet cordwain; cordovan cotillion; cotillon courtezan; courtesan cozy; cosey; cosy; cozey crawfish; crayfish crosslet; croslet crum; crumb cruse; cruise cyclopedia; cyclopaedia czar; tzar; tsar dactyl; dactyle daisied; dazied dangeld; dangelt defense; defence defier; defyer deflower; deflour delft; delf; delph demain; demesne; demean demeanor; demeanour dependent; dependant desolater; desolator despatch; dispatch detector; detecter detractor; detractor develop; develope devest; divest dialed; dialled diarrhea; diarrhoea dieresis; diaeresis dike; dyke disDurden; disburthen disenthrall; disinthrall; disinthral 2o8 Business and commerce disabile; deshabille disheveled; dishevelled disk; disc disseize; disseise disseizin; disseisin dissolvable; dissolvible; dissoluble distil; distill distrainer; distrainor doctoress; doctress dodecahedron; dodecaedron dolor; dolour dorj; doree dowry; dowery draft; draught dram; drachm; drachma driblet; dribblet drier; dryer driveler; driveller drought; drouth; drout dryly; drily dryness; driness dueler; dueller dulness; dullness edile; aedile eloin; eloign; eloigne embarkation; embarcation embassage; embassy embitter; imbitter embosom; imbosom embound; imbound emir; amir; ameer empale; impale emu; emeu enameler; enameller enamor; enamour encase; incase encenia; encaenia enclasp; inclasp enclose; inclose enclosure; inclosure encumbrance; incumbrance encyclopedia; encyclopaedia endeavor; endeavour endure; indure engulf; ingulf enroll; enrol; inrol; inroll enrolment; inrolment; enrollment ensnare; insnare enthrall; enthral; inthrall; inthral entwine; intwine envelope; envelope Eolian; ^olian eolipile ; aeolipile; eolipyle epauleted; epauletted ephah; epha epistolize; epistolise equaled; equalled equerry; equery equivoke; equivoque esophagus; aesophagus esthetics; aesthetics etiology; aetiology exactor; exacter fagot; faggot farther; further favor; favour fecal ; faecal feces; faeces feldspar; felspar fetal; foetal fetus; foetus fie; fy filibeg; fillibeg; philibeg; filybeg flavor; flavour fleur-de-lis; flower-de-lis flier; flyer flotage; floatage fluke ; flook; flowk fogy; fogie; fogey foray; forray foss; fosse foundry; foundery frantic; frenetic; phrenetic frowzy; frouzy; frousy frumenty; furmenty; furmety fueled; fuelled fugleman; fiugelman fulfil; fulfill fulness; fullness fusee; fusil fusileer; fusilier gage; gauge gaiety; gayety gaily; gayly galleass; galeas galosh; golosh; galoche; galoshe galtp; gault; golt gamboled; gambolled gang (mining) ; gangue gantlet; gauntlet; gantlope garrote; garote gasogen; gasogene gasolier; gasalier; gaselier BUSINESS AND COMMERCE 209 gasoline; gasolene gastropod; gasteropod gavot; gavotte gazel; gazelle gelatin; gelatine germane; germain; german gild; guild gipsy; gypsy glave; glaive gliadin; gliadine globulin; globuline glochidiate; glochidate glycerin; glycerine goiter; goitre goldilocks; goldylocks good-by; good-bye gormand; gourmarkd gram; gramme graveled; gravelled gray; grey groveler; groveller grue ; grew; grouse gruesome; grewsome Guelf; Guelph guerrilla; guerilla haggis ; haggess ; haggies hallo; halloo; hollo; holla; hullo halloo; hollo; holloa; hollow harbor; harbour harken; hearken harmin; harmine hashish ; hasheesh ; hashash hatcheled; hatchelled havesine; havesin havoc; havock hematic; haematic hemorrhage; haemorrhage hiccup; hiccough; hickup hindrance; hinderance Hindu-ism; Hindoo-ism hoarhound ; horehound homeopathy; homaeopathy homonym; homonyme honor; honour hoope; hoopoo hostelry; hostlery; ostelry; ostlery hoveler; hoveller humor; humour humulin; humuline hureaulite; huraulite hypotenuse; hypothenuse hypoxanthin; hypoxanthine 13—14 idolize; idolise ignorantin; ignorantine illegalize; illegalise illicin; illicine Illinoisan; Illinoisian immaterialize; immaterialise immersable; immersible immortalize; immortalise impaneled ; impanneled ; impanelled imperiled; imperilled incloister; encloister indart; endart indelible; indeleble indicter; indictor indigotin; indigotine indin; indine indiscerpible; indescerptible indite; endite indorse; endorse inferable; inferrible ingrain; engrain inventor; inventer Jacobin; Jacobine jailer; gaoler; jailor jaunty; janty jenneting; geniting jetty; jutty jeweled ; jewelled jowl; joll; jole julep; juleb; julap junket; juncate just; joust Kaaba; Caaba kafir; kaffir kale; kail kaleidophone; kaleidophon kamila; kamala; kameela kapellmeister; capellmeister keelhaul; keelhale keg; cag kenneled; kennelled kermess; kirmess kernely; kernelly khamsin; kamsin labeled; labelled labor; labour lac ; lakh ; lack lacrimal; lachrymal; lacrymal lanyard; lanard laureled; laurelled 2 10 BUSINESS AND COMMERCE leach ; leech ; letch lectern ; lecturn ; lecturne ledgment; ledgement leger; ledger leucorrhea; lucorrhsea leveled ; levelled libeled; libelled license; licence licorice; liquorice likable; likeable lingot; linget linnean; linnsean litchi; lichi; leechee liter; litre llama; lama lodestar; loadstar lodestone; loadstone lodgment; lodgement longe; lunge louver; louvre ; loover macaw; macao maccaboy; maccouba; maccoboy mahlstick; malstick; maulstick mama; mamma; mammy ; mammie mamelluke; mamaluke manchu; manchoo ; mantchoo maneuver; manoeuver; manoeuvre margaron; margarone mark; marc marshaler; marshaller marten; martin martin; marten martingale; martingal marveled; marvelled meager ; meagre medaled; medalled medic; medick medieval; mediaeval metaled; metalled meter; metre milleped ; milliped ; millipede milreis; millrea; millree mistletoe; misseltoe; misletoe miter; mitre mizzle; misle; mistle mode; mood modeled; modelled Mohammedan; Mahometan; Mahomedan mold; mould molt; moult moneved; monied moneys; monies monoecian; monecian mopsy; mopsey mortgagor; mortgager; mortgageor - mullein; mullen multiplied; multipede murrine ; murrhine ; myrrhine muscatel; muscadel musrole; musrol mustache; moustache muxy; mucksy naught; nought neighbor; neighbour nilgau; nilghau niter; nitre noblesse; nobless obfuscate; offuscate ocher; ochre; oker ochery; ochry; ochrey octastyle; octostyle octogynous; octagynous octoped; octopede odalisk; odalisque odor; odour offense; offence oleomargarin; oleomargarine oligemia; oligeemia olio; oglio omber; ombre omneity; ornniety opuscule; opuscle orang-utan; orang-outang; orang-utang orthopedic; orthopaedic ossein; osseine; osteine; ostein osteitis; ostitis otolith; otolite oxid ; oxide ; oxyd oyes; oyez pahlavi; pehlevi palestra; palaestra panchway; pansway pandour; pandoor paneled; panelled pantile; pentile pantograph ; pantagraph papoose; pappoose pappose; pappous paraffin; paraffine paraleipsis; paralipsis paralleled; parallelled parallelepiped; parallelopiped paralyze; paralyse BUSINESS AND COMMERCE 2X1 parceled; parcelled pardao; pardo parlor; parlour parol; parole parrakeet; paraquet; paroquet parrel; parral partizan; partisan pasha; pacha ; pashaw ; bashaw pasquilant; pasquillant patchouli; patouchly peascod; peasecod pedler; peddler; pedlar pedlery; peddlery; pedlary pedobaptist; psedobaptist pemmican; pemican penciled; pencilled penology; poenology periled; perilled peroxid; peroxide petrolin; petroline pewit; peewit; pewet; peetweet phenician; Phoenician phenix; phoenix phenology; phtenology phenyl; phenyle picul; pecul piepoudre; piepowder pilau; pillau pincers; pinchers pipistrel; pipistrelle pistoled; pistolled pittizite; pitticite platyrhine; platyrrhine plot; plat plow; plough pluviometer; pluviameter polyp; polype porcelane; porcellane portress; porteress pouter; powter practise; practice pretense; pretence pretor; praetor prillion ; prillon program; programme prologize; prologuize provendor; provedore ptyalin; ptyaline pullicat; pulicat; pullicate purr; pur purr; purre purslane; purslain pyemia; pyaemia quarreled; quarrelled quarterfoil; quaterfoil; quatrefoil quartet; quartette ; quartetto questor; quaestor quintest; quintette; quintetto quitter; quittor raccoon ; racoon ; rackcoon radical; radicle raffia; roffia; rofia raja; rajah raj put; rajpoot raki; rakee rambutan; rambootan rattan; ratan raven; ravin raya; rayah raze; rase reconnaissance; reconnoisance reconnoiter; reconnoitre redout; redoubt reenforce; reinforce referable; referrible regrator; regrater reremouse; rearmouse retroflexion; retroflection reveled; revelled reverie; revery reynard; renard rhubarbarin; rhabarbarin ridable; rideable ritornelle; ritornello rivaled; rivalled rotunda; rotundo roweled; rowelled rubicel; rubicelle ruche; rouche rundel; rundle ryal; rial saber; sabre sabianism ; sabaism ; sabaeism salaam; salam salep ; salop ; saleb salmi; salmis saltier; saltire saltpeter; saltpetre sambo; zambo samester; samestre sandarac; sandarach sanguinarin; sanguinarine sanhedrin; sanhedrim Sanskrit; Sanscrit 212 BUSINESS AND COMMERCE sapajou; sapajo sapodilla; sapadillo; sappodilla sappar; sappare; sapparite sarlak; sarljk ; sarlac ; sarlik sarsenet; sarcenet sassolin ; sassoline ; sassolite scamel; scammel; scainell scathe ; scaith ; scath scepter; sceptre scotfree; shotfree scow; skow seawan ; seawane ; seawant sebat; shebat sebundy; sebundee; sibandi seidlitz; sedlitz seizin; seisin seleniureted; seleniuretted semeiography; semiography Semitic; shemitic semolina; semolino septemia; septaemia sepulcher; sepulchre sextet; sextette sestette; sextetto Shakesperian; Shakespearean shekinah; shechinah sherif; scherif; shereef; shirriffe shoveled; shovelled shriveled; shrivelled silicious; siliceous sillibub; sillabub; syllabub simitar; cimeter; cimiter; scimiter; scym- itar; cymeter sirup ; syrup ; sirop siscowet; siskiwit; siskowet skeptic ; sceptic ; sceptick skilful; skillful slay; sley; slaie sloke; sloak smolder; smoulder sniveler; sniveller solan; soland sollar; soller; solar somber; sombre somersault; somerset, summersault sorbin ; sorbine ; sorbite spahl; spahee ; sipahi spanceled; spancelled spanemia; spanaemia specter; spectre spicknel; spignel squatarole; squaterole stenciler; stenciller subungual; subunguial sufi; sofi sulfureted ; sulphureted ; sulphuretted swankie; swanky swanpan; schwanpan swap; swop swiple; swipel; swipple syenite; sienite sylvan; silvan synalepha; synaloepha synonym; synonyme tarpaulin; tarpauling; tarpawling tartan ; tartane tasseled; tasselled tasset; tasse; tasce tatar; tartar taut; taught teazel; teasel; teasle tellureted; telluretted tenail; tenaille tendriled; tendrilled theater; theatre theatin; theatine tibet; thibet tiffing; tiffin timbal; tymbal tingeing; tinging tinseled; tinselled titbit; tidbit tole; toll topi; topee toweling; towelling trammeled; trammelled tranquilize; tranquillize tranship; transship traveler; traveller travertin; travertine trivet; trevet troweled; trowelled trundle-bed ; truckle-bed tryst; trist tumor; tumour tunneled; tunnelled turnsole; turnsol ungeneraled; ungeneralled unriiowed; unmown unspilt; unspilled uzbeg; usbeg; usbek valor; valour vapor; vapour BUSINESS AND COMMERCE 213 veil; vail vial; phial victualed ; victualled vigor; vigour villainy; villany villenage; villeinage; villanage vurtu; vertu vise; vice vizor; visor wagon;waggon weir; wear; wier whelk; welk whippletree; whiffletree whisky; whiskey whooping-cough; hooping-cough whop; whap withe; with wizen ; wizzen ; weazen woful; woeful woolen; woollen worshiper; worshipper zaffer; zafire; zaffir zoolitic; zoolithic ) zymic; zumic Staple. — Principal commodity of a country or district. Statute Law. — Body of laws established by legislative enact ment; written, as opposed to unwritten or common law. THE ATTAINMENT OF SUCCESS IN STENOGRAPHY By EDA C. HOWARD I T is a significant fact that the United States Government is, at this writing, finding it very difficult to secure capable stenographers. In the Land Office Department alone there are several vacancies for good shorthand writers, and the same eondition exists in other departments. So critical has the situation become,,that the Civil Serv¬ ice examiners are instructed by the government to endeavor to get as many applicants for these positions as possible. It is true that the examinations for government positions are so rigid as to debar those who have not a thorough knowledge of the art, but the fact remains that there are not enough good stenographers who are willing to give up positions which their ability has gained for them, to aceept even a government situation, with its assurance of a life position. The demand for good stenographers is constantly increasing, and the problem of meeting this increased demand is becoming serious. The supply of seeond and third-class shorthand writers is practieally unlimited, but business men are realizing more clearly every day the necessity of having thoroughly competent stenographers, and they will not knowingly engage those who are not. They insist that every letter which is sent out shall be above critieism as to form, gram¬ matical construction, punctuation, and spelling. They want to feel ^USINESS AND COMMERCE 214 that they can depend upon the good judgment of their stenographers to relieve them of much of the burden of their correspondence. Re¬ garding the ordinary run of letters, they want to be able to have them answered by giving a few general instructions, without being compelled to dictate every word. They want to feel that slight gram¬ matical errors, which are apt to creep into quickly dictated letters, will be corrected. In this way the stenographer becomes invalu¬ able to the employer, whose time must be economized and for this reason, ability and attention to details will be more promptly and generously recognized in a stenographer than in any other posi¬ tion in business life. The legal department of a great city recently urged the Civil Service Commissioners to offer double the maximum salary usually paid stenographers, as it was found impossible to secure the right sort without such inducement. There is plenty of room on the upper floors in this business edifice, and the fact ought to be an inspiration to every young man and woman who has chosen stenog¬ raphy as a profession. In addition to being pleasant and profitable, it has the peculiar advantage of throwing one into constant and inti¬ mate communication with heads of firms and the managers of great interests. It gives one a rare opportunity to become thoroughly fa¬ miliar with every branch Df businCvSS. It is not easy to become a good stenographer. It requires hard work, patience, and perseverance, but success is within the reach of all who are ambitious and who are willing to pay the price. Those who practise constantly in order that they may increase their speed and efficiency will find that their work will be appreciated and their serv¬ ices in demand. A good English education is a condition precedent to the study of shorthand. No one can possibly hope to be a good stenographer who is not familiar with the rules of grammar, punctuation, and spell¬ ing; and unless these rules are learned thoroughly, failure will be inevi¬ table. The system of shorthand which the student chooses is also an important factor. A standard system, such as Munson’s, Graham’s, or Pitman’s should be selected. It is desirable that the student attend regular lectures and continue to take lessons until able to write quickly and accurately, and to transcribe notes without hesitation. If attendance at a stenographic school is impracticable, a thorough knowledge of the art may be acquired at home by closely following the course of instruction marked out in a standard text-book, but in this case the greatest care should be taken to avoid bad habits at the beginning of study. No one should take a position as stenographer until he or she is able to write with absolute accuracy at least one hun- BUSINESS AND COMMERCE 215 dred words per minute, and to transcribe the same perfectly. It is well to remember that in shorthand practice is everything, and that it should be persisted in until the student is able to take down, verbatim, the most rapid conversation. There are thousands of successful men in every branch of busi¬ ness, and in every profession, who have used a knowledge of short¬ hand as a stepping-stone to their present positions. Indeed, a knowl¬ edge of this art cannot fail to be useful, no matter what subsequent position one may occupy. Frank A. Vanderlip, assistant secretary of the United States Treasury, says that a knowledge of shorthand was one of the most important factors in giving him his start in life, and it is safe to say that it has furnished opportunities to more people than any other single profession or business. During the past few years, a great many women have entered the field of shorthand as a means of livelihood and have met with much success. There is no danger of having too many first-class stenogra¬ phers. The demand will exceed the supply for many years to come. Stock. — Shares in the capital of a corporation. Stockholder. — One who holds shares of stock. Subpoena.— 'A writ commanding a person to appear in court. Suffrage. — The right to vote for public officials or for proposed changes in the fundamental law, at an election in town, county, state, or nation. Sundries. — Unclassified articles. Surety.— One who binds himself to pay money in case another person fails to pay, to fill a contract, or to serve with integrity. TABLES The Metric System — What It Means and Where It Is Used One of the first difficulties which confronts the merchant in enter¬ ing into trade with foreign countries is the diversity of weights and measures used by them. Countries Which Use the Metric System. — The principal systems of weights and measures used in various parts of the world are: The Imperial System, which is used in the United States, Great Britain, and all the British Colonies; and the Metric System, which is the legalized standard, and is used in the following countries: — BUSINESS AND COMMERCE 216 Algeria, Argentine. Austria (1876). Azores. Belgium (1820). Brazil. Canary Isles. Central America. Chile. Colombia. Ecuador. France (1790). Fernando Po. Germany (1868). Greece (i8",6). Holland (1816). Haiti. Italy (1845). Java. Madeira. Mexico. Norway (1882). Peru. Portugal (1S52). Roumania. Senegambia. Spain (1853). Sweden (1889). Switzerland (1875), Turkey. Uruguay. Venezuela. West Indies. The population of the metric-using nations aggregates about 445,- 500,000. It practically includes the civilized world, except Great Britain, Russia, and the United States. The Metric System has been authorized by Act of Congress in the United States, and by Act of Parliament in the United Kingdom. Denmark is just introducing a bill for its use, and Russia adopted the system Jan. 14, 1901. Metric System Explained. — The Metric is a decimal system, the meter being the basis of all measures, whether of length, surface, capacity, volume, or weight. It measures 39.37 inches, and is theoret¬ ically one ten-millionth of the distance from the Eq^iator to the Pole. Where the measurements are too great to use the single unit, multiples of the unit are used, and are indicated by the Greek pre¬ fixes deca., hecto., and kilo.^ indicating respectively tens, hundreds, and thousands. When the quantities are so small that the unit cannot be conveniently used, decimal parts are taken, and are indicated by the Latin prefixes deci.^ centi^ and wz 7 A, meaning respectively tenth, hun¬ dredth, and thousandth, as illustrated in the following table: — I millimeter.equals jAn meter I centimeter. “ “ I decimeter. “ “ I meter. I decameter.equals 10 meters I hectometer. “ 100 “ I kilometer.. . “ 1,000 “ Measures of Length. — The unit of length is the meter (39.37 inches). The divisions are the decimeter, centimeter, and millimeter; the multiples are the decameter, hectometer, and kilometer. The meter, like the English yard, is used in measuring cloth, lace, moder¬ ate distances, etc. For long distances, like the mile, the kilometer is commonly used; but for short or minute distances, the centimeter and millimeter are used. The customary abbreviations in the measures of length are: — mm.millimeter. cm.centimeter. dm .decimeter. m.. . .meter. km.kilometer. BUSINESS AND COMMERCE 217 Measures of Surface. — Measures of surface are derived from measures of length, and the unit is the square meter; but it must be remembered that a surface area is the product of its length and width — thus, a square centimeter would equal one hundred square millimeters. Hence the following: — 100 sq. millimeters equal i sq. centimeter. 100 sq. centimeters equal i sq. decimeter. - TOO sq. decimeters equal i sq. meter. 1,000,000 sq. meters equal i sq. kilometer. The square meter is used, like the square yard, in measuring small areas — ceilings, floors, etc. In land measure the are is the unit, and is equal to a square decameter; the square meter is called the cen- "tare, one hundred square meters the are, and ten thousand square meters the hectare (2.471 acres), which is used like the acre. Cubic Measure. — Cubic measure is constructed in the same way, remembering that a cube is the product of the length, width, and height; a cubic centimeter would be a cube measuring ten millimeters each way and would contain 1,000 cubic millimeters. Hence—the following: — 1,000 cu. millimeters equal i cu. centimeter. 1,000 cu. centimeters equal i cu. decimeter. 1,000 cu. decimeters equal i cu. meter. 1,000 cu. meters equal i cu. decameter. 1,000 cu. decameters equal i cu. hectometer. 1,000 cu, hectometers equal i cu. kilometer. The unit is the cubic meter, which, like the cubic yard, is used in measuring embankments, excavations, etc., cubic centimeters and mil¬ limeters are used for minute bodies. Measures of Capacity. — Measures of capacity are based on the cubic meter, but as the cubic meter would be too large and unwieldy for ordinary purposes, the cubic decimeter was adopted as the unit, and the name liter was given to it. The liter is equal to 1.0567 quarts, and is used like the quart or gallon, multiples forming the larger, and decimal parts the smaller denominations, as follows: — 10 milliliters equal i centiliter. 10 centiliters “ i deciliter, 10 deciliters “ i liter. 10 liters “ I decaliter, 10 decaliters “ i hectoliter. 10 hectoliters “ i kiloliter. BUSINESS AND COMMERCE 218 Metric Weights. — The unit of weight is the gram (15.432 grains), and is the weight of a cubic centimeter of water at its greatest den¬ sity— about 39° F. Metric Weights .— Milligram (y-oVo' gi'am) equals 0.0154 grn. Cen¬ tigram (y^y gram) equals 0.1543 grn. Decigram gram) equals 0.5432 grn. Gram equals 15.432 grns. Decagram (10 grams) equals 0.3527 oz. Hectogram (100 grams) equals 3.5274 ozs. Kilogram (1,000 grams) equals 2.2046 lbs. Myriagram (10,000 grams) equals 22.046 lbs. Quintal (100,000 grams) equals 220.46 lbs. Millier or tonnea — ton (1,000,000 grams) equals 2,204.6 lbs. Metric Dry Measures. — Milliliter (yyyy liter) equals 0.061 cu. in. Centiliter (yyy liter) equals 0.6102 cu. in. Deciliter (Jy liter) equals 6.1022 cu. ins. Liter equals 0.908 qt. Decaliter (10 liters) equals 9.28 qts. Hectoliter (100 liters) equals 2.838 bus. Kiloliter (1,000 liters) equals 1,308 cu. yd. Metric Liquid Measures. — Milliliter (yyyy liter) equals 0.0338 fluid oz. Centiliter (y-^y liter) equals 0.338 fluid oz. Deciliter (y^y liter) equals 0.845 Liter equals 1.0567 qts. Decaliter (10 liters) equals 2.6418 gals. Hectoliter (100 liters) equals 26.417 gals. Kiloliter (1,000 liters) equals 264.18 gals, Metric Measures of Length.— Millimeter (yyyy meter) equals 0.0394 in. Centimeter (yiy meter) equals 0.3937 in. Decimeter (y^y meter) equals 3.937 ins. Meter equals 39.37 ins. Decameter (10 meters) equals 393.7 ins. Hectometer (100 meters) equals 328 ft. i in. Kilometer (1,000 meters) equals 0.62137 (3,280 feet 10 ins). Myriameter (10,000 meters) equals 6.2137 mis. Metric Surface Measures. — Centare (i sq. meter) equals 1,550 sq. ins. Are (100 sq. meters) equals 119.6 sq. yds. Hectare (10,000 sq. meters) equals 2.471 acres. The above tables were prepared by the Philadelphia Metric Com¬ mercial Museum. BUSINESS AND COMMERCE 219 This Metric Rule = a decimeter. The 10 divi.sions are centimeters. The small sub-divisions are millimeters. TABLES AND FOREIGN COINS.— Square or Surface Measure. Long Measure. Dry Measure. Ale and Beer. 144 sq. ins.i sq. ft. 9 sq. ft. I sq. yd. 305^ sq. yds. i rod, pole, or perch. 40 rods. I rood. 4 roods, or 4,840 sq. yds. i acre. 640 acres.i sq. mile. 3 barleycorns i inch. 12 inches . . i foot. 3 feet ... I yard. 5^4 yards i rod, pole, or perch, 40 poles . . I fur. 8 furlongs, or 1,760yds. I mile. 3 miles . ”. I league. 4 gills . . 2 pints . . 2 quarts 4 quarts 2 gallons . 4 pecks 8 bushels . I pint. . I quart. . I pottle. . I gallon. . I peck. . I bushel. . I quarter. 2 pints . I quart. 4 quarts . i gallon. 9 gallons . I firkin. 36 gallons . I barrel, barrels . i hogshead. 2 barrels . i puncheon. 3 barrels . i butt. Solid or Cubic Measure. Sizes of Printing Paper. 1728 inches i solid foot. 27 feet I yard or load. Demy Medium Royal . 22j^ X 17H . 23 X 18 . 25 X 20 Dble. Flscp. Super Royal Dble. Crown 27 X 17 27J4x 20^ 30 X 20 Imperial Dble. Demy Dble. Royal 30 X 35 X 40 X 22 22 % 25 Foreign Coins — The English EquivALENxs. Countries. Foreign Coins. English Equivalents. Countries. Foreign Coins. English Equivalents. Argentine Republic... Austria- Hungary Belgium. Brazil. Bulgaria. Chile. China ...... Costa Rica Denmark . Peso Nacional (Gold) Krone . Gulden . Franc. Milreis. I 220.4 “ “ 2.204 “ “ 22 Imperial gallons. 2.75 Imperial bushels. 1.33 oz. 1.33 ft) avoirdupois. I- 333 avoirdupois. 1.41 inches. 1.175 feet. II - 75 “ 2.115 “ 4.68 miles. 4.61 miles. 21.195 square miles. 1.36 acres. 3.8 Imperial bushels. 4.6775 bushels. 28.92 Imperial gallons. 1.102 It) avoirdupois. 0.213 of an Imp. gallon. 2.75136 ft) avoirdupois. 99.05 ft) avoirdupois. Foreign Weights. English Equivalents. Ardeb of wheat (118 okes) Ardeb of maize (118 okes) Ardeb barley (88 okes). “ rice (152 okes).. Greece. Ocque. Quintal. Uivre. Drachme. Japan. Ri. Square ri. Tch6 (long measure). Tch6 (land measure). Ken. Tsubo. Kcku (liquid). “ (dry) . Sho (liquid). “ (dry). Kwau. Russia. Verste. Sq. verste..... Pood. Berkovets. Tchetvert..... Dessiatine .... Vedro . United States. Bushel (Winchester) Gallon (Old English) Barrel of flour. Short ton. Eong ton. 324.6 ft) avoirdupois. 324.6 “ “ 242.6 418.3 fti it 2.84 ft) avoirdupois. 123.2 “ “ 1.1 “ I of an ounce. 2.4403 miles. 5.9552 square miles 5.4229 chains. 2.4507 acres. 1.9884 yards. 3.9538 square yards. 39-7033 gallons. 4.9629 bushels. 1.5881 quarts. 0.1985 pecks. 8.2817 ft) avoirdupois. 0.663 of a mile. 0.44 of a square mile. 36 ft) avoirdupois. 360 “ 5.77 Imperial bushels. 2.7 acres. 2.7 Imperial gallons. 0.9694 of Imperial bushel, or 33 Winches¬ ter bushels = 32 Im¬ perial bushels. 0.883 of an Imperial gallon, or 6 United States gallons = 5 Im¬ perial gallons. 196 ft) avoirdupois. 2,000 lb avoirdupois. 2,240 “ “ Tare. — Allowance in weight or quantity on account of cash, bag, or covering. TA RI F P The word tariff is probably derived from Tarifa, a town in Spain, where, while the Moors ruled, all vessels passing through the strait near by were obliged to pay duties to the governing 'chiefs. Marine taxes had, however, been exacted long before. Tariffs not unlike ours BUSINESS AND COMMERCE 221 were imposed by the Greeks and Romans, and England, in the nth century, levied duties on ships and cargoes. In 1663, during the reign of Charles IL, a regular schedule of rates was enforced. After 1846 the tendency in England was toward free trade. The corn laws were abolished, and in 1892 less than 20 articles paid revenue duties. The first Federal Congress in the U. S. enacted a tariff law that averaged below 8 per cent, ad valorem duties on imports. The bill became a law, but was in the nature of a compromise, as a majority of the Southern States favored a lower rate while New England and Va. favored a higher one, though not so high as Pa. advocated,— 12 per cent. The tariff of 1816 was distinctly in the direction of protection, for in the face of protests from the agricultural section of the South, it advanced the tariff to about 25 per cent, on many important articles of manufactures. In 1824 there were further increases.' Early in 1828 the tariff of abominations,^^ as its opponents called it, was introduced in the House. It embraced the recommendations of a national con¬ vention of manufacturers held at Philadelphia, and increased the rate to 41 per cent. This tariff was advocated by Daniel Webster, who in 1824 had favored a low tariff. S. C. was foremost in the opposition and denounced the proposed tariff as unconstitutional, unjust, and oppressive. N. C. took a similar position, and Ala. and Ga. declared that Congress had no constitutional power to lay duties for protection. To appease the dissatisfied. President Jackson, in 1832, signed a bill reducing the duty on iron, increasing the tax on woolens, allowing certain raw materials to enter free, and leaving cotton as it was. The bill, however, retained the protective feature of the tariff of 1828, and S. C. went so far as to attempt to nullify this act by an ordi¬ nance which was repealed after the compromise tariff of 1833. Clay introduced the latter measure which provided for a gradual scaling of duties until the minimum and uniform rate had been reached in 1842. In that year the Whigs were in control of both Houses of Con¬ gress, and they enacted a protective tariff, which the Democratic President Tyler vetoed. The law of 1846, better known as the Walker tariff, made the principle of protection secondary to that of revenue. It passed both Houses, but in the Senate it required the casting vote of Vice-president Dallas. It lowered the average duty to about 25 per cent., and this was further reduced in 1857 to 20 per cent. By the Morrill tariff act of 1861, a protective revenue measure, the rates of 1857 were increased about 33 per cent. As the Civil War pro¬ ceeded, the tariff was repeatedly raised, money urgently needed was realized, and manufacturing was greatly stimulated. The war tariff remained in force long after 1865. In 1882 a tariff commission visited different sections of the country for data on which to base a 222 BUSINESS AND COMMERCE recommendation for a reduction in rates. The commission suggested a cut of 20 per cent. President Cleveland, in his message to Congress of Dec., 1885, favored a reduction, and in 1889 he made it the sole subject of his message. The Mills bill, in which the President’s views were incorporated, passed the House, but was defeated in the Senate. The 51st Congress, by the McKinley bill, raised the duties to an aver¬ age of about 48 per cent. The Wilson bill, a low-tariff measure with an income tax provision, which was later declared unconstitutional, became a law without the President’s signature in 1894, and in 1897 the present Dingley protective tariff went into effect. (See McKin¬ ley, William.) Tenants.— Those who lease or rent real estate. Tenants in Common.— Those who hold property in common, i. e., by distinct titles and not as joint tenants. Testator. — One who has made a will; feminine form is testatrix. TOUCH TYPEWRITING The use by nearly all standard machines of what is known as the Universal Keyboard has made it possible to teach the principles of typewriting by the touch method in such a way that the pupil who has mastered them on one machine can easily adapt them to the use of any other of the universal boards. The student’s work should be undertaken on a firm resolve to follow directions carefully, and to practise faithfully every lesson. The first thought must be of accuracy, without which the highest rate of speed will count for naught. For the student’s encouragement he should remember that a rate of thirty words per minute in continuous writing is equal to one of sixty words per minute when the hands stop for half of the time while the eyes are on the copy. The first step is to learn, from the book of directions which accom¬ panies every machine, the uses of all the principal parts of the style of machine to be used. Every operator should know the mechanical con¬ struction of his machine so well as to detect immediately the slightest disorder, and to be able to adjust the simpler parts. Proper care of the machine, cleaning and oiling, are easily learned from the book of directions. Only the best oil should ever be used on a typewriter, and the machine must be kept closely covered when not in use. The type are cleaned with a brush, and should never be, touched with a pin. When the brush is not sufficient, benzine should be applied. BUSINESS AND COMMERCE 223 A copyholder which holds the chart, exercise, or notebook, above the machine, and directly in front of the- eyes, is by far the best. With its use the student naturally maintains a healthful, erect position, and a much less fatiguing one than that of bending over to look downward at the copy. A better light also can usually be had on the copy in this position than when it is lower than the machine. The operator should sit at such a height that, when the fingers rest on the keyboard, the forearm is horizontal. The starting point of the hands on the keyboard is the middle row, on which the fingers should be plaeed as follows: — 4321 1234 asdfghjkl ; An exact chart of this row of keys — one which the student can easily make for himself — is placed on the copyholder, and the positions of the letters are learned from this, and not by looking at the keys. The forefingers must strike g and h as well as f and j. This does not cause eonfusion, as it is easy to know whether one of these fingers is striking the key next the one oecupied by the third finger, or whether it is reaching over one key to touch the next. Keys to the right or left of a and / vary in number, and in the signs repre¬ sented, on different machines, and will be considered later. On all machines the spacing is done with the thumbs. It is evident to the one who thinks for a moment, that taking the fingers from the board for this purpose would waste the time otherwise gained by touch writing. On double keyboards, and on the shift-boards that have shift keys at both sides, the work is so nearly the same for each hand that the spacing is divided between the thumbs, and the one that is nearest the space bar at the time should be used. On shift machines that have shift keys at the left only, the right thumb should do the work of spacing, as all the shift¬ ing then falls to the left hand. With eyes fixed steadily on the ehart, write the letters of the middle row in their order from left to right, without spaeing between the letters, as asdfghjkl; give a quick, light stroke, and do not hold the keys down. Train the fingers to strike with uniform force. When several rows of the letters in order have been made, call them at random, and find the keys. Writing them in their order in the row beeomes meehanical, and the student should test his knowledge of their positions by calling them in various orders, and finding their keys promptly. When this row has been written until the fingers have aequired 224 BUSINESS AND COMMERCE an even toucli, and each letter is easily found, several lines each of the following words may be written: — as sad alas falk lags ah sag asks fall slash la fad sags gash flash ash gas sash gads falls ask has slag half salad add had skag hall shall aha jag dash lass alfalfa all lag If one hand is found more difficult to control than the other, it should be given special work on words that are written all or mostly with that hand. The third bank of keys is our next lesson. The fingers must be brought up to this row as needed to strike the keys; but, when not in use, the fourth fingers are kept on a and /. It is necessary to have at all times a definite starting point, that the fingers may know in which direction to reach for a given letter. 43 21 1234 qwertyuiop The copy is now a chart which shows the middle or second, and the third, rows. Follow explicitly on this row the directions given for the third, and practise until the letters can be found instantly in any order called. we top tree write pretty to ire trio route require it out tire troupe twitter wit pet your utter pottery ere quit peep equity property eye were pyre repute etiquette rue wire quiet totter territory two ripe It is encouraging to note at this point the greater ease with which the letters of this row are ! learned, and the more uniform action of the fingers, than when beginning the first row. The following words combine letters of the second and third rows. These should be practised very thoroughly. to train the fingers to move easily from one row to the other, before the lower row is studied. adage alert gurgle what frigate eager father thoughtful kaiser after kodak quarter sirloin wrinkle worthy adieu radius height dictator egotist editor arrogate usually daily daughter legality future BUSINESS AND COMMERCE 225 Examine each sheet of your work with the utmost care, and strive to avoid any faults that it may show. Patient and faithful work at this stage of the student’s progress will yield him rich returns in all of his later work. The chart will now show the first, or lower, row. The three keys at the right are rarely the same on two styles of machine. zxcvbnm,. ? The student will write as may appear on his machine, from left to right, etc. Since words cannot be made of the letters at hand, it is neces- sary to draw for vowels on the other rows, using only consonants of the first row. cob men bin move bone vim numb vane mamma mix box cove mum above oven vex boom buzz ox moan bomb main canna beam Remember to touch the keys with only sufficient force to make a distinct impression. Turn the sheets over and see if the impress of the letters shows on the under side; if so, the keys have been struck too hard. The words below give practice on passing the hands from the lower to the middle, and the middle to the lower rows: — cash bask mammal sack jamb call bag mash fan clash cask blanch abash ham flax chasm back nag knack blank This exercise combines letters of the first and third rows, and is excellent practice : — quiz concrete battery prime even mixture never quiver tremor metric crown broom improve better cr^'pt brine We are now ready to use the letters of all the three rows, and words are easily found. The following are good, and the student can extend the list at pleasure: — attract exchange miller quaver meadow big quorum marry narrative brought swim varnish plover blossom wax trivial eliminate click narrow rock gravity dome wonder belong flavor secure extricate advise dive cringe omnivorous preliminary captivate weavil marine ird zebra nimble cough prairie Vol. XIII—15 226 BUSINESS AND COMMERCE A chart of the full board may now be used,— capitals, figures, and all other marks. On the double keyboard the capitals are found in the same rela¬ tive positions as were the small letters. After making a few rows of these, to accustom the hands to the different position on the key¬ board, write, Aa Ss Dd Ff Gg Hh Jj Kk LI Qq Ww Ee Rr Tt Yy Uu li Oo Pp Zz Xx Cc Vv Bb Nn Mm On the shift machines, the only point to learn in making capitals or other upper case characters is the proper manipulation of the shift keys. In touch writing the little fingers only can be used on the shift keys, and with a little practise they readily do this work. On a board that has a shift key at each side, the work is divided between the two little fingers, the left one being used when the right hand is to strike the type key, and the right one when the left hand is to be used on the type key. On the boards which have one or more shift keys at the left only, the left little finger must do all the shifting, and the right thumb then does the spacing. A shift key must be held firmly until the de¬ sired letter has been made, and released promptly when a small letter is to be made. Europe Brighton Alps Philippines North American Review Harvard University Raleigh Homer Leigh President Grigg London Times Adjutant General Howard South America ' Great Eastern Niagara Falls United States Senator Daily Eagle Don Quixote On the upper row of keys, which vary so widely with different machines, the student will easily apply the principles taught and illus¬ trated for the other rows. The keys at the sides of the board, beyond those that have been learned, must be struck with the little finger, in order to keep the hands as nearly as possible in their prescribed positions. There seems to be no especial order in learning the punctuation marks. Some have been learned by this time from their positions in the rows with the small letters. The others should be practised, and when they are thoroughly familiar, the exercises may be used. U. S. Oh! How? non-union << Now,^^ said he. Hudson’s (Aside.) We quote: Man proposes; God disposes. Figures are next in order, and may be best learned 0123456789 BUSINESS AND COMMERCE ^27 Perhaps more annoying and dangerous mistakes occur in striking the wrong figure than in making wrong letters. For this reason the student should give himself a thorough drill in their use. 123321 102534 901201 510435 5280 53 876 425970 12357308 6750320 76 100020 430053 105 1776 The remaining characters may form one lesson, and complete the study of the keyboard; — $500 8 34 25% @34^ * * * No, no. A space should always follow a comma, semicolon, and colon; three spaces, a period, interrogation, or exclamation point. Any matter may now be used for practice. The forms of legal papers give excellent drill; actual business letters should be copied, matter containing many figures, names, addresses, etc. Some practice should be had each day in taking dictation directly on the machine. In all writing, note carefully the marginal spacing, making it per¬ fectly even at the left, and as nearly so as the correct division of words will admit, on the right. The width of the margins differs; but on legal, and business-letter, size, from an inch to an inch and a half should be allowed at the left, with a little less at the right, and at the bottom of the page. In the Circuit Court of Broivne County., KentitckyMay Terjji., iSgej.. J. M. Johnson, Plaintiffs ) vs . y Motion to Set Aside Sheriff Sale. B. W. Morrow, Defendant. ) In the Circuit Court of Browne County^ Ky.j September Ternis 1888. State Ex. Rcl. W. E. Mallory, Plaintiffs vs . H. J, Con NOR, R. B. Briggs, and S. V. Smith, Defendants. V Petition for Mandamus. Beginning at a point three hundred and sixteen (316) feet north of the northwest corner of Block fifty-two (52) in the town of Salem, Pennsylvania, thence east one hundred and twenty-five (125) feet, thence south sixty (60) feet, thence west one hundred and twenty-five (125) feet, thence north sixty (60) feet to the place of beginning. Trad^ Discount. — An allowance made to dealers in the same line. 228 THE LAST QUARTER OF A CENTURY’S TRADE EXPANSION By WILLIAM F. KING President of the Merchants' Association of New York N O PORTION of the history of the United States will be read by future generations with greater wonder than that in which is recorded the story of the marvelous growth and expansion of our commercial in¬ terests during the last half of the nineteenth century, just closed. The story is as fascinating as any that ever fell from the pen of a Balzac or a Dumas, and has, moreover, the additional charm of truth. Previous to the Civil War, which marked the beginning of the era of our commercial supremacy, the growth of the country was slow. The people, by the hardest work, dug their living from the soil and were compelled to rely upon themselves for nearly all the necessities of life, even making their clothes on the old-fashioned wooden loom. They thought slowly, and took a week to do what is now accomplished in a day. The man who could give his wife a new silk dress each year was regarded as ^Svell off,^^ while a fortune of fifty thousand dollars seemed as great as three million dollars now. It was the day of the small shopkeeper, whose stock of goods included, possibly, two or three bolts of silk, imported from England or France, a few rolls of gaudy calico, some white sheeting, and a few other staples, with the usual pins, needles, and thread. Such a supply was, however, sufficient to meet the demands of the people. The outcome of the war was a new era of expansion and speculation. Large amounts of money passed into circulation and Croesus-like fortunes were made. The abundance of money caused the people to become ex¬ travagant, and to live on a scale of magnificence never before attempted in America. New wants were created, to supply which, especially in the matter of dress and luxuries, our merchants scoured the markets of the Old World, and soon saw their establishments expanding like mushrooms under their very eyes. Before this time the merchant could not send an ofder to Europe and have it executed under six months’ time. Sailing vessels were the only BUSINESS AND COMMERCE 229 means of communication, and the business community found itself ham¬ pered in all directions by its inability to quickly secure and deliver goods. The laying of the Atlantic cable, the establishing of telegraphic lines, the extension of the railways, and the general introduction of steam vessels, on ocean and river, brought the desired relief. Rapid communi¬ cation increased a hundredfold the dry-goods merchants’ capacity for handling business. The lines of goods in stock grew so rapidly in num¬ ber that merchants were frequently forced to add more capital to their businesses, in order to meet the demands of trade. Small shops, in the centers of trade, expanded into the modern department stores before their proprietors themselves fully realized the change. The wholesale dry-goods business had a similar evolution. It was not so many years ago that the large establishments were .confined to New York, Boston, and Philadelphia, which cities did nine-tenths of the business of the country. To-day, Chicago, St. Louis, New Orleans, St. Joseph, Kansas City, and San Francisco, are great distributing points, not only for dry goods, but for merchandise of all kinds. During the seven years following the close of the war, the prices of all commodities became so inflated that a reaction was inevitable. The panic of 1873 swept away fortunes as a flood-swollen river sweeps away bridges and houses before it. Fictitious values collapsed, over-capital¬ ized corporations became bankrupt, and small businesses were wiped out of existence. The panic was the result of a combination of causes. There had been an overproduction of manufactured goods, but instead of an in¬ creasing demand for this large supply, a failure of crops caused it greatly to decrease. Our merchants were loaded down with foreign goods for which there was no market. This state of depression con¬ tinued for three years, during which time soup-houses were opened in New York, Boston, and other large cities, to feed the hungry and starving hordes of men, women, and children, for whom there was no work. There were many men, however, whose pride led them to revolt at the idea of becoming objects of charity. What they wanted was work, work of any kind in order that they might provide for their families. It was at this juncture that William E. Dodge, Anson Phelps Stokes, and John D. Crimmins came forward, in New York, with a plan to aid the needy. These, and other rich men who owned large tracts of unim¬ proved land upon the upper west side of the city, set hundreds, and even thousands, of men at work to grade this land and to get it ready for the market. The employment thus given was sufficient to tide many over the crisis. A turn in the tide came in 1876, with the holding of the Cen¬ tennial Exposition in Philadelphia. 230 BUSINESS AND COMMERCE No one who passed through them can forget the horrors of those few years. A vast army of tramps over-ran the country, carrying terror like a pestilence in their wake. Farmers used their grain for fuel, because it was cheaper than wood or coal. Public improvements were at a stand¬ still. Under the hot breath of adversity many industries shriveled and died. The harvests of Europe had been abundant and the workshops busy, so that, for a time, there was no relief in that direction for our con¬ gested markets. It seems strange, does it not, that in the world’s economy we some¬ times profit by the losses and afflictions of others ? The great famine in India, in 1876, and the utter failure of the crops in Europe, in 1877 and 1878, created a demand for our surplus stocks of grain and goods. So quickly did we recover from the results of the panic that the year 1879 saw the resumption of specie payments. The remarkable development of the railroads of this country since the Civil War is one of the best proofs of our prosperity. It was during the speculative period following that event, and again in the late ’seven- ties and early ’eighties, that the distant portions of Uncle Sam’s territory were knit together by chains of steel. An abundance of money and un. limited credit were the forces that stimulated financiers to build railroads across wide stretches of plain and desert, over the peaks of the Rockies, and on into the garden-lands of the Pacific Coast. The completion of the Union Pacific showed that nature had reared no barriers that American skill and daring could not surmount. Then came the Atlantic and Pacific, the Santa Fe, the Northern Pacific, and the Southern Pacific lines in the Far West, enterprises that called for enormous expenditures of money and brains. In the meantime, railroad building was progressing in the East. Feeders to trunk lines were con¬ structed and absorbed with a rapidity that was astounding to visitors from the Old World. The West Shore, paralleling the New York Cen¬ tral, projected, it is said, for the purpose of embarrassing that corpor¬ ation, was built. So great was the demand for steel rails that the rolling mills, running day and night, could not meet the demand. It was found, however, that railroad building was being overdone; that lines had been constructed for which no business of any importance was obtainable; that many stocks and bonds that had been floated at par were worth little more than the paper on which they were printed. Some of the roads that were built became bankrupt and were purchased by the trunk lines at ridiculously low prices. The Hudson River Railroad, which ran from New York to Albany, absorbed the New York Central, extending from Albany to Syracuse, the Syracuse and Rochester, and other roads, until it owned a continuous line from New York to Buffalo. From time to time, feeders were purchased, or leased, until the New BUSINESS AND COMMERCE 231 York Central, as it is now called, controls a trunk line to Chicago. The Pennsylvania system has a history similar to this. This consolidation of the railroads was made necessary by the great expense involved in their equipment and operation. The weaker com¬ peting lines were forced to make traffic agreements with the stronger lines, or to go out of business. Between 1880 and 1884 many roads went into the hands of receivers. Through the introduction of economical methods in handling business, and the consolidation of several roads under one management, the cost of operation was reduced to such a point that the fixed charges could be met and dividends be paid to the stock¬ holders. Many big corporations were reorganized and placed on a firm foundation. Between 1888 and 1892, the railroad mileage of the country was again expanded with old-time fervor. I believe we have now passed the skyrocket period of railroad develop¬ ment, and that, in future, the efforts of financiers will be directed to the still further consolidation of the great and small lines of travel. The public has never been served as well as at the present time. Rates for the transportation of freight and passengers have been reduced to a point entirely within reason. The road-beds are kept in thorough repair by skilled workmen; the trains, especially the limited ones, are as luxurious in their appointments as a king’s palace; the number of accidents has been reduced to a minimum by the introduction of the block, and other signal systems. The same conditions that brought about the consolidation of the rail¬ roads have resulted in the union of industrial enterprises. Take, for instance, the mills devoted to the manufacture of woolen cloths. For¬ merly, a factory turned out, perhaps, twenty different lines of goods. When the required stock of one kind of cloth was supplied, the looms must be readjusted, new yarns run in, new patterns laid out, and a new start made generally. These frequent changes added heavily to the cost of production. ^ Then a clear-brained man appeared, and argued that, by combining a dozen or more of these mills, it would be possible to so arrange the work as to increase the output, reduce expenses, and make more money, three most desirable results from the manufacturer’s standpoint. The several plants were examined by experts who determined the kind of work for which each was best adapted, and a consolidation of the fac¬ tories under one general management was effected. Now one of these mills is kept running the year round on one style of goods, such as broadcloth, or tweeds, or worsteds. No time is lost in taking out one weave and putting in another, and the quality of the product is improved, and the output increased. The invariable result of these industrial combinations has been a reduction in the prices of the articles sold. 232 BUSINESS AND COMMERCE One of the great factors in determining the cost of goods to the re¬ tailer is the cost of the transportation of merchandise from the original point of purchase. Before the trunk lines were established, freight des¬ tined for Chicago, Milwaukee, or St. Paul, was sent by the canals to Buf¬ falo, where it was loaded upon sailing vessels and taken across the lakes to its destination — a slow and tedious process. Merchants who could not wait for their goods to be shipped in this way, and did not mind the expense, ordered them to be forwarded by rail. If they went by the way of the Hudson River Road, on reaching Albany they were taken out of the car and delivered to the New York Central, which placed them in its cars and hauled them to the end of its line, where they were transferred to the connecting road. In this way, the freight was handled six or eight times before reaching the man to whom it was consigned. Compare this slow method with that now nsed. A car-load of goods travels, on express schedule, from New York to Chicago, and even to San Francisco,— three thousand miles away,— without once breaking bulk. The handling and rehandling of freight at terminal points has largely been done away with, through the adoption of traffic agreements, under which cars are hauled over the different lines of railroad to their destinations, without being opened. The introduction of more econom¬ ical methods of handling freight has so greatly reduced the cost of trans¬ portation that a car-load of goods can now be delivered in Los Angeles at about the same rate that was paid a few years ago for its delivery in Chicago. The low charges on fruits grov^n in California and shipped in refrigerator cars across the continent to the Atlantic coast have made it possible for the growers to deliver in New York, oranges, pears, apri¬ cots, and cherries, at prices which seem ridiculously cheap, when the quality of the fruit, and the long distance, are considered. In spite of all the calamity howling of the anarchists, the socialists, and the pessimists of our day, capital and labor are more closely allied than ever before in the nation’s history. The line between the two is not so carefully drawn as it once was. The tyranny of the labor unions is lessening, and employers are, as a class, treating their men with greater consideration. When I state that this condition of affairs is largely due to the formation of trusts or combinations of capital, no doubt some of my readers will think I am mistaken, but such is my be¬ lief. There is a marked tendency among thrifty workingmen to invest their savings in these great industrial institutions, which, in many localities, are taking the place of the savings banks as depositories of surplus earnings. I am informed that for several years it has been the policy of the Standard Oil Company to encourage its emplo3’'ees to acquire stock in the corporation. The stock is sold to them on such BUSINESS AND COMMERCE 233 favorable terms that they are able to buy it without in the least crippling themselves. As a result, many linemen, agents, and superintendents have thus acquired stock from which they are now in receipt of a good income. Other corporations have followed the example of the Standard Oil Company and the number is being increased from year to year. The officers of these institutions are anxious to have their employees become stockholders, because they know that they will take a greater interest in the business, and will do all in their power to protect and advance its welfare. From a workman’s standpoint, investments in these trusts are desira¬ ble for several reasons. First, is the pride one feels in being a stock¬ holder in a great financial enterprise, with which men of national reputation and wealth are affiliated. Second, is the knowledge that the business is conducted by the best talent money can procure, and that his investment is as safe in their hands as in a bank, while it draws a better interest. I have been asked how the opportunities for young men to get on in the world in the dry-goods business compare now with those of thirty years ago. In reply, I would say that they are much more numerous, and promise greater financial returns. The creation of those large emporiums of trade, called department stores, has brought about a de¬ mand for specialists in the different lines who are paid salaries that a few years ago would have been considered princely. A boy of 1875 was obliged to begin at the bottom and learn all departments of the busi¬ ness. To-day, such has been its expansion, that a boy learns only one or two branches, for the reason that he has not the time or opportunity to learn more. If he masters these thoroughly, however, he becomes a valuable factor in the business, and he can command a handsome salary. A small merchant who was able to make $1,000 or $1,500 a year con¬ ducting a store, now receives twice, or thrice, that amount as the head of a department. While young men have to-day greater opportunities for making money than ever before, because there are more responsible positions to fill, they have fewer chances to become their own masters, owing to the condensation of the dry-goods business. Where formerly there were a dozen stores, each conducted by an individual owner, there is now one huge establishment doing business on a colossal scale. A group of such establishments, operated and owned by a single corpora¬ tion, is called a trust. Trusts are the natural outgrowth of trade conditions that cannot be changed. Much of the talk we hear about them is the veriest bosh. In these days of enlightenment there is no such thing as a trust in its strict¬ est sense. No corporation, no matter how colossal, can long defy public 234 BUSINESS AND COMMERCE opinion. To be successful it must be managed by men of brains and ability. Brains can and do command a greater income in managing such corporations than if engaged in conducting a small business or in a cooperative concern for the distribution of goods. The reason for this is that large amounts of capital are ready to go into any enterprise which promises a return of from four per cent, to six per cent. Such corpo¬ rations are attractive, not only to the wealthy, but to men of small means, who know that their money is reasonably safe and has just as good a chance to bring large returns, proportionately, as the capitalist’s millions. These combinations with millions of capital have made possible the earning of salaries never dreamed of in the old days. Presidents of in¬ surance companies receive from $50,000 to $75,000 a year; presidents of industrial institutions as much as $100,000, while Mr. Schwab, the pres¬ ident of the steel trust, is said to receive an annual fortune of half a million dollars. Of course, these are the prizes of the world, yet five- thousand-dollars-a-year places are more plentiful now than were the thousand-dollar places in the early ’sixties, or prior to the war. The expansion of this nation means much to the youth of the country. It means increased opportunities for acquiring wealth and position, both here and abroad. It means that'America, in the near future, will be in command of the markets of the world, and that those who are to direct its destinies have before them a career such as has never been dreamed of even by the most visionary of our citizens. We are destined to be¬ come the greatest maritime nation, because we hold the keys to the great storehouses from which other lands must draw supplies. Enough coal, iron, and copper, lie buried here, to meet the demands of all peoples for centuries to come. England is alarmed at the rapidity with which American enterprise is crowding her manufactures out of the home and foreign markets. We can make and deliver machinery and structural iron at a lower price, and in less time, than can any foreign manufacturer. England’s main idea has been thrift and conservatism. The time has now come when she must get out of the rut or her factories will be obliged to close. In view of the facts which I have already enumerated, and from the outlook for the future, I think I am warranted in saying that the oppor¬ tunities for young men to succeed in life and make comfortable fortunes are fully tenfold greater than they were twenty-five years ago. It must not be forgotten, however, that very much more is required. A young man of mediocre talents, who has neglected to prepare himself properly for the great struggle of life, has little chance of success. He is handi¬ capped at the very start, and cannot expect to win. ^Thoroughness of preparation is the important thing to be remembered by the youth of the land. BUSINESS AND COMMERCE 235 The one thing we have to fear is the tendency to extravagance, which is apparent among all classes. The entire European world, noting this fact, regards with great apprehension the future of our country, and ex¬ presses doubt as to a continuation of its prosperity on the present basis. The study of the economic conditions that have prevailed abroad for the past hundred years leads to this conclusion. If our young men and women will curb their extravagant tastes in dress, in amusements, and ways of living, there is no question in my mind as to the future prosper¬ ity of the nation, and the happiness of the people. WINNING THE WORLD’S TRADE By CHARLES R. FLINT O VER night, almost, the United States has grown into a great exporting nation. Merchants and manufac¬ turers who, all their lives, have been busy fighting for the home markets, with no thought beyond, suddenly find themselves thrust into the world where eager pur¬ chasers are clamoring for their wares. In the space of six years, our exports have grown from $824,000,000 to $1,477,000,000, an increase of over $650,000,000. Nothing so amazing has ever been recorded in the history of the world. The mere increase, almost approximates the total exports of France, a country that, not so many years ago, led the United States as an exporting nation. The in¬ crease in our exports represents a gain of over seventy- « five per cent., in six years. That this increase is to continue in an even greater ratio, is shown by the Treasury reports of our exports so far this year (1901). For May, we showed an increase of $i 1,000,000 over the rec¬ ord of May, 1900, and an increase of $21,000,000 over the record of May, 1899. The total exports for the month of May amounted to $124,589,029. May is by no means our best exporting month, but the total of that 9 month this year, is almost as great as was the total of a whole year’s exports fifty years ago. Figures such as these speak more strongly than words, of the enormous progress we have made in our dealing with the outside world. Literally, we are crowding every field abroad. As one English paper said recently: To-day it is literally true that they (the Americans) are selling American cotton in Manchester, pig iron in 236 BUvSINESS AND COMMERCE Lancashire, tin plate in Cardiff, and steel in Sheffield. It only remains for them to take American coal to Newcastle.” With few exceptions, Americans, in the past, have not actively sought foreign markets. What has come to them was obtained largely without solicitation. The enormous increase in exports is due, not to a sys¬ tematic effort to sell goods, but to the excellence of the goods produced by the perfected American machinery. It has been found that we can produce goods of a better quality at a lower price than any other nation. This holds good of staple articles that can be reproduced again and again in the same pattern. In these lines, where special and changeable de¬ signs are demanded, the American has had no share, nor can he hope to obtain a share. Goods of that description are produced principally through hand-labor, and our labor is too expensive to compete in that field. We are strong where our workmen act, not as direct producers, but as supervisors of improved machinery. Concerns making special articles susceptible of such reproduction, have only been required in the past to persistently send samples of their wares to the foreign markets, in order to obtain a considerable trade without much effort or serious competition. Now, however, we may look for active competition from two directions. There will be a general rush on the part of all American producers, for a share in this very desirable foreign business, and the European manufacturer, seeing his market slipping away from him be¬ cause of the advanced methods in machinery of the American, will seek to copy these methods and this machinery. The foreigner’s success in this direction, has been indifferent, but he is sending his young men to us to observe our ways and copy our methods, and it is reasonable to suppose that, in a few years, he will have put himself fairly abreast of the times, and will give us, if we are not careful, a hard fight to hold the markets which are now fairly tumbling into our lap. It is essential, therefore, that the American manufacturer and mer¬ chant should not be content with merely filling'the orders that come in, but that he should cultivate and enlarge the opportunities that are now his. Once he is fairly established, he maybe reasonably sure of holding his trade, for the foreign consumer is conservative, and strong induce¬ ments must be offered him, to induce a change of base, once he has formed the habit of buying in certain quarters. But this habit has to be formed, and, aggressive as the American is, he has heretofore not done much in that direction The methods to be employed to secure trade abroad are very much the same as those that must be employed in se¬ curing domestic trade. The first thing to do is to study the market carefully. This can be done best by sending a thoroughly equipped rep¬ resentative into the field. It is not always enough that the goods to be sold are better and cheaper than the goods sold by other manufacturers. BUSINESS AND COMMERCE 237 The foreigner is not accustomed to our rush methods, and is not always susceptible when they are applied. It is necessary, therefore, to study his idiosyncrasies and cater to them. For example, in South America the American salesman is almost in¬ variably beaten by his German competitor; not because the German’s goods are any better — often they are not so good — but because the Ger¬ man lends himself to the peculiar customs of the country. The South Americans are a fine, hospitable race, generous and considerate, and, with fair treatment, they are easily won. Unfortunately, the average American makes the mistake of underestimating their ability and genius. He does not understand their character, and, nine times out of ten, runs afoul of what he considers their peculiarities. He fails to understand that these peculiarities are only peculiarities in his eyes, and that it is his part to recognize this and conform to them. The ordinary American under¬ stands only the American method of selling goods. He wants to go into a town, arrange his samples, show his wares, take orders, and de¬ part. That sort of thing will not work in our foreign trade. Whether it is in South America, Europe, or the Orient, the salesman will find that he must adopt different methods. He must first get in touch with the people whom he wants as customers. When a salesman enters a foreign town, he must make it his duty to call on all the leading merchants without mentioning trade. Social rela¬ tions should be established, and, as a matter of course, courtesies ex¬ changed. It is well to keep business in the background, for a while. The result of this will be, that the merchant, of his own accord, will request that the samples carried by the traveler be shown, and, on this basis, trade may be established. Of course this system should not be adopted universally. Each country, whether in South America, in Eu¬ rope, Asia, or Africa, has its peculiar characteristics, and the thing to do is to study these characteristics. It is idle to expect that a man whom you want as a customer will mold himself to your ideas; instead, you must mold yourself to his. The wise business man is quick to under¬ stand this. Another thing of great importance is the packing and preparation of goods. With the average American, the package is of little importance. What is wanted are the goods inside. With the foreigner, in many cases, the wrapper is almost as important as the contents. Too much emphasis cannot be laid on this question of packing. In the future, the foreigner maybe relied on to recognize the superiority of American goods, regardless of their envelope. For the present, how¬ ever, while we are still engaged in building up our reputation and establishing our trade marts, it is absolutely essential that we should conform to the demands of foreign buyers, by furnishing goods prepared 23S BUSINESS AND COMMERCE in the way that they have been accustomed to receive them for years,^—- in many cases, for centuries. It is a singular thing that, whereas, in shop trade, America has long led the world in the way of wrapping, little or no attention, comparatively, has been paid, until recently, to this branch of the business by manufacturers and wholesalers. In the retail shops of England, France, and Germany, as well as in the South American and Oriental countries, goods are delivered to buyers without any attention to the wrapping. Old newspapers are considered good enough for such a purpose, where there is any wrapping at all. In many of the countries, goods are delivered across the counter without any wrapping. Such an elaborate system of parcel wrapping as prevails in our retail stores here, large and small, is unknown. On the other hand, foreign merchants have been accustomed, for many generations, to receive their goods from the manufacturers in the most compact and portable shape. Out of this has grown a habit of demanding goods that need little or no wrapping, after they are put on the shelves for sale in the retail establishments. It is the duty of the American firms that want to share in this trade, to study this question with great care, and to adapt themselves, as much as possible, to the custom in this regard. Of course, there are some cases where the American cannot, profitably, follow these demands. In such cases, he has little chance for competition; and, on the whole, it is well, perhaps, for him, if he does not try to enter these fields, which may well be left to the English and Germans, who, like ourselves, do not depend upon the duplication of machine-made goods, but rather upon the cheapness of theii: labor in producing just what is wanted in various shapes and sizes. Nothing else has helped more to stimulate our foreign trade than the excellent work of our consuls. In theory, our consular system is the poor¬ est of any of the great nations; in practice, it is the best. Every time a new president is elected, theie is, practically, a complete change in every important consulate. This means that, just when a man is thoroughly mastering the field in which he is operating, he is recalled, to make way for a new appointee. In the nature of things, one would suppose that this continual changing would demoralize the consular service, and render it useless for the purpose for which it was established. A man entering the United States consular service has no future, no career, the situation en¬ tirely differing, in this regard, from that existing in the services estab¬ lished by England, Germany, France, and other countries. Yet, in spite of this handicap, so great is the superiority of the average American, that it is conceded, abroad, that we get better and more important service out of our consuls than does any other country. This is due to the fact that the American, in every rank of life, is a keen, shrewd observer, and a hustler. The foreign consul is content to sit at his post and do as his BUSINESS AND COMMERCE 239 predecessors have done. The American is instinct with a desire for new and improved methods, and the man appointed to a consular post plunges into his work at once, determined to make a record. How much more might we get out of our consuls, if the hustling, observing spirit was further stimulated by an assurance of permanency as a reward for good work, and a chance of promotion! That there would be a great im¬ provement is easily conceivable. It is more than probable that Con¬ gress will enact measures along this line, by which the efficiency and the value of the consular service will be greatly enhanced. The foreigners are beginning to appreciate the value of our consular methods. This is shown by the numerous foreign newspapers that are urging their governments to copy the better features of our plan. Speaking of the methods of American consuls, one of the papers says:— Every shipment of goods to a United States port must pass through the hands of the American consul, vice-consul, or consular agent for the district from which the goods are sent, and the amount, value, place of origin, market price ruling in the country of production, the method of pro¬ duction, and similar data, are carefully noted. In virtue of this system, the United States obtains valuable information, which is used to the best advantage at home, and, naturally, is of great assistance to American ex¬ porters, who know exactly what is wanted abroad, and where it is wanted, and, consequently, have not to work blindly or to pay dearly for the les¬ sons of experience. Still more important is the fact that the Americans obtain all this information practically gratis, since the foreign producer or shipper not only is obliged to supply the above data, but has to pay more or less heavy fees for the consular signature, which alone is taken in proof that these formalities have been fulfilled. Another factor that may be relied on to enlarge our trade abroad, is the tendency that is showing itself in the way of restoring our suprem¬ acy as a nation of ship owners. It is undoubtedly true that trade follows the flag. While, in our own case, it is shown that the establishment of foreign trade does not depend necessarily upon carrying goods in our own bottoms, still it is undoubtedly true that the flag helps materially. Eng¬ land owes much of her world-wide commerce to the fact that her flag flies in every port. If we can do what we have done without this stimu¬ lus, with it, our progress will be rapidly increased. Everything that encourages American shipping is to be carefully fostered by those mer¬ chants and manufacturers who seek to have a share in our commercial expansion. From this standpoint alone, the measure that has been dis¬ cussed for stimulating American shipping, the ship subsidy, is a good business proposition. Viewed, too, from another standpoint, it is a measure that should command general support. To-day, we are paying 240 BUSINESS AND COMMERCE hundreds of millions of dollars to foreign ship owners for carrying our products to the markets of the world. This money should be kept at home. Instead of enriching foreigners with our freights, we ought to do our own carrying, and keep the money in this country. Such a course would add materially to our prosperity. The vast sums we are now pay¬ ing out to foreign carriers is a tremendous drain. There is one point to be rigorously observed by every house that wants to send its goods abroad. The foreign trade is not worth culti¬ vating unless it is to be a permanent trade. It is too expensive a propo¬ sition for a mere temporary outlet. Therefore, the man or the concern desiring to go into this market should see to it, first of all, that, once in the field,.he has every prospect of remaining there. The main consid¬ eration is to supply a standard quality of goods. Strict honesty is abso¬ lutely essential. Everything sold must be exactly as represented. To send high-grade goods at the beginning, and then to let the quality drop, is worse than folly. It is a good form of business suicide. Whatever else he may be, the foreign buyer is generally a shrewd judge of values, and it is impossible to deceive him more than once. True, there is a considerable market, especially in South America, for adulterated goods of a certain form, but this market is not worth cultivating. It is con¬ trolled at present by the English, and we may well rest content to let them have this control. It is a question merely of time when the people who are now buying these goods will awake to the fact that they are not receiving value for their money, and then the reaction is bound to do great damage. So far, the American manufacturer has been very wise in not seeking to enter into competition with the Englishmen in the matter of selling adulterated and inferior articles. The Chinese are very clever buyers, even the poorest of them. They demand cheapness; but they also demand quality. The result is that in that market cheap American cottons control, and the flimsy material of British manufacture has no chance. America is thoroughly awake to her destiny as the great commercial world power, and she is preparing herself to live up to this destiny. No better indication of this is to be had than is shown by the fact that every¬ where we are taking special means to produce a class of high-grade mer¬ chants. Within the past few years, nearly every city in the land has established special commercial classes in the public schools, and many of the leading universities now have complete commercial courses. This movement cannot be too much encouraged. It assures us of a genera¬ tion of young men who will be thoroughly equipped to handle and con¬ trol the trade of the world. Such men are absolutely necessary. In conjunction with our advanced system of manufacture, which to-day is the finest on earth, these young men will make for America a permanent BUSINESS AND COMMERCE 241 place in the front in the struggle for the foreign markets. It is written that we shall be the world’s storehouse, and it is our duty to do every¬ thing in our power to equip the coming generation, in every possible way, for its great task. Trades Unions. — Organizations of workingmen formed to enable the members to secure rights and privileges, fair wages, and eco¬ nomic conditions most favorable to labor. Transit Duty.— Tax imposed on goods in passing through a country. TRAVELING AND TRANSFERRING FUNDS Large Amounts of Currency Should Not be Carried by Travelers — Safety OF Drafts—Use of Letters of Credit in Traveling Abroad—Easy Methods of Identification at Any Foreign Bank—Passing Goods through THE Customhouse—The American Tariff—Transferring Money by Certified Checks and Cashier’s Checks—Money Orders and Registered Letters. T here is a variety of banking devices for commanding money easily and safely when traveling, and for transferring money from place to place. It is unwise to carry large amounts of currency about the person. It involves not only temptation to thieves in hotels and railway trains, but the risk of loss through earelessness. A cer¬ tain amount of currency is necessary for daily needs, but banking credits of various kinds are preferable, when one travels from one business center to another. Checks upon one’s personal account, which may be carried in blank, are sufficient in many cases, but they are not always accepted from a person who is not well known. A good plan, if checks are carried, is to make part payment in advance for hotel expenses, when one stops at a hotel of good standing, giving the proprietor time to collect the check before one’s departure. A business man or woman will probably find his or her personal checks acceptable where they have become well known for prompt pay¬ ment. There are several forms of banking credits, however, which are more readily negotiable than are personal checks. Among these are banking drafts upon a commercial center, certified checks and cashier’s ehecks. Drafts are equally useful for sending by mail or for making personal payments. Vol. XIII—16 BUSINESS AND COMMERCE 242 Bank drafts are much safer than an equal quantity of currency, because if stolen they cannot be readily negotiated. The attempt to negotiate them involves skillful forgeries, and identification at a bank, unless the forger can get them accepted by some business man. Drafts are similar to cashier’s checks drawn upon other banks. They simply direct the bank upon which they are drawn to pay a given sum of money to the person named in the draft. Such drafts can be readily transferred by endorsement in any business town. If they bear the usual marks and signatures, moreover, they will be accepted even by a stranger, as, for instance, in the payment of a hotel bill, much more readily than would a personal check. Banks away from New York, and particularly in the West and South, are generally glad to receive drafts upon New York, because they entitle them to money there which they might otherwise have to send by express, or themselves pay the cost of exchange. The same is true, more or less, of drafts drawn upon any commercial center, like Chicago or St. Louis, and offered in the radius of territory doing business with them. A small charge is sometimes made for the issue of drafts, but usually only a few cents for several hundreds of dollars. Certified checks also are useful for making payments of impor¬ tance, where one is not known, or where the certainty of the validity of the cheek is an important element in closing the transaction. A certified check is a personal check, that has received the endorsement of the cashier of the bank upon which it is drawn, that it is good for its face value. The cashier satisfies himself that at least the amount of the check is on deposit to the credit of the maker, and makes a memorandum that the deposit is charged with the amount. He is then able to certify to the value of the check without running any risk of loss to the bank. A certified check is more acceptable than is the check of an individual, because it bears the stamp of the bank and its promise to pay. Certified checks are often required by banks in payments of interest for their clients, especially from persons who are not well known to them. They are sometimes required by mu¬ nicipal governments in the payment of taxes. A man or woman, for instance, who owed interest on a mortgage, might receive notice from a bank where the mortgage was left for the collection of the interest, that the payment must be made by certified check. A simple request addressed to one of the tellers, or to the cashier of one’s bank, is sufficient to secure prompt and courteous certification of the check. No charge for the service is usually made. A form of check serving somewhat the same purpose as the cer¬ tified check, is the cashier’s check. This is signed by the cashier of the bank, and drawn in favor of the person asking for the check, or BUSINESS AND COMMERCE 243 of such person as he may designate. The person asking for the check should give the cashier in payment a check upon his own account for the amount of the cashier’s check asked for. The latter may be drawn upon some other bank. Nearly all national banks have deposits in New York or in some other large city. A person having a pay¬ ment to make in New York, would find a cashier’s check drawn by the cashier of his own bank in Ohio or Kentucky, upon its reserve agent in New York, more acceptable as a means of payment to a New York firm than would be his individual check upon his home bank. He would, accordingly, give to the cashier a check upon his own account, and would receive in return a check drawn by the cashier upon the New York agent of the bank. Some business firms stip¬ ulate on their bills and accounts that they must be paid in certified checks or in cashier’s checks upon some large city. One of the objects of this is to avoid certain charges which are made by city banks for the collection of country checks. It is obvious that it must cost something, however small, to make all the necessary clerical entries in exchanging checks between different banks. There is also the cost of expressage or postage, and sometimes charges for the actual ship¬ ment of money. There is, still further, the loss of the interest upon the amount of the check while it is being sent home for collection. The loss upon a single check may be trifling, but upon a large volume of checks, constantly on the wing, as it were, between the city and hundreds of interior places, the amount of money out of the immedi¬ ate use of the bank, and upon which it is losing interest, is large enough to be a material element in its profits. The system of making a charge of a few cents for collecting checks has recently been intro¬ duced in several large cities and, whether these charges are fully justified or not, in all cases, the reasons why they were proposed are obvious from the facts just stated. The letter of credit is one of the most convenient and ingenious devices for enabling travelers to carry the title to large sums of money at almost no risk. Letters of credit are issued by several leading exchange houses and bankers of New York, and other large cities, and these letters of credit can be obtained by any bank in the country upon the application of a customer. Many banks take the trouble to post notices that they issue letters of credit. In most cases, it will be found that they simply act as agents for the New York exchange houses, but it is proper and convenient for the traveler to deal with his local bank rather than to attempt to deal directly with the exchange houses. Letters of credit are not usually issued for less than $500. They consist of a folded sheet, bearing upon its face the body of the letter, and upon another page a memorandum for enter- 244 BUSINESS ANt) COMMERCE ing the payments which are made. The illustration on the adjoining page shows the face of a letter of credit issued by a leading New York company. The essential operation of the system of letters of credit is that a firm of established resources and standing authorizes the traveler to draw upon its agents in all parts of the world for the sum of money which forms the limit of the letter of credit. Nearly all the lead¬ ing commercial banks in Europe are agents of the New York firms which issue letters of credit. They have not entered into elaborate articles of agreement in many cases, but are willing to accept a draft by the traveler upon the bank issuing the letter, because they know that it will be promptly paid. They are agents in the same sense that any bank is an agent of another which accepts a check drawn upon the other. In the case of letters of credit, how¬ ever, the checks or drafts drawn by the traveler are known to be good, because the letter of credit certifies that he has a certain amount on deposit with the company issuing the letter, and it is known that that company is a bank, or exchange house, of character and standing. The traveler, starting for Europe with his letter of credit, does not use it until he lands on the other side. It is necessary for him to take in American or English money such funds as he needs for fees and expenses on the steamer. English money is preferable on the English steamers, as all their transactions are expressed in pounds, shillings, and pence. Before starting upon the voyage, the traveler will find it most convenient, therefore, to exchange, at a New York broker’s, some American money for English gold and silver. This will be independent of the amount invested in his letter of credit. Upon landing in Liverpool, for instance, without a penny in his pocket, he can go at once to the Victoria Street branch of the Bank of Liverpool and present his letter. He will find few difficulties, or none, in obtaining such sum as he wishes. The banker will simply ask him how much he wants. He should be sufficiently familiar with English money to make his answer in its terms. If he wants about $50 he should say, would like ;£'io.The banker will then fill out a draft for ^10, requesting the house which issued the letter of credit to pay that amount to the Bank of Liverpool and to charge it to the account of the traveler. The banker will push this draft over the counter to the traveler for his signature. The traveler should read the parts filled in, in order to see that no mistake has been made as to the amount, attach his signature, and hand the* draft back to the banker. The latter will glance at the signature on the draft, and then at that on the letter of credit, to see if they are alike, and will BUSINESS AND COMMERCE 245 LETTER OF CREDIT 0<><><>0<>0<><>COO0<>0<><><>0<>00<>^0-0-0-00-00-0-000000-0-00-0O FOURTH NATIONAL BANK Letter of Credit, No. 16723 Dear Sirs: New York, April 75 , igo2 IVe have to request you to be good enough to furnish Mr. Frank f. Davis, of this city, whose signature is written below, with such funds as he 7nay reqvdre, to the amount of Thirty-five Thousand Francs in gold, against his receipts, in duplicate [one of which you will forward to us), for such sum or sums as you may make under this credit. This letter and the request contained herein is intended to continue in force until fan. I, igoj. Such sums as may be paid to Mr. Davis shall be endorsed upon the back of this letter and charged to the account of Your obedient servant The Fourth National Bank George Simpson President Signature of Frank f. Davis To Messieurs: The Ba7ikers nm^ted and addressed on the third page of this letter. O0000000000000-000000-00000000-0000000000000000-00000000000< 246 BUSINESS AND COMMERCE then hand over the money, or a slip entitling the holder to the money at another eounter. Bankers in Europe usually make no objeetion to paying amounts asked upon letters of credit, without any inquiry as to the identity of the parties. Comparison of the signatures affords suoh a sufficient safeguard that it is said that hardly a pound has ever been lost by a payment upon a letter of credit through fraudulent representations. The traveler will find, however, if any difficulty arises, that the house which issued the letter of credit has sent to a few leading points a copy of his signature. This is obtained before he leaves the country, by a request that he fill up a sheet with half a dozen or more copies of the signature. These copies, sent perhaps to. London, Paris, Ber¬ lin, Vienna, and Rome, will obviate any risk that the signature upon the letter of credit may be altered by any one finding it or stealing it. The fact that these duplicate signatures exist at the leading money centers of Europe, is doubtless a restraint upon thieves in making use of letters of credit, and contributes to the safety with which payments are made upon them all over the world. The banker who accepts and pays a draft upon a letter of credit will fill in upon the letter the amount of the draft. This is partly for the convenience of the traveler, affording him a memorandum of the amounts he has drawn, and partly a convenience to other bank¬ ers, in preventing an attempt to draw more than the balance due upon the letter. It is partly also a proof that the payment was ac¬ tually made by the bank sending the draft to the New York house which issued the letter. The entry will be made in the money of the country where the draft is drawn, so that the traveler cannot deter¬ mine to a cent the amount drawn or the margin available, unless he is able to calculate exchange to a nicety, but a general knowledge of the comparative values of foreign and American money, will enable him to tell within a few dollars, at least, whether he has reached the limit of his letter of credit. The balance due to him will be promptly adjusted upon his return to this country, or at any time, by the trans¬ mission of the letter to the issuing house. The loss of a letter of credit should be promptly communicated to the leading banks which are named as the agents of the issuing bank. This should be done by telegraph, if it cannot be done by personal notice in a leading financial center. The loss of a letter of credit is not likely to be attended by serious consequences if prompt action is taken. It may be necessary to prove pne’s identity at a leading city bank, and to submit to some expense for cable commu¬ nication with the issuing bank in New York, but arrangements can soon be made by reputable persons to have the credit renewed, and BUSINESS AND COMMERCE 247 notice given to leading banks to pay nothing upon the old letter if presented by the finder. It is well, when going abroad, to make some arrangements with one’s banker by which more money can be put to one’s credit, if nec¬ essary, than the amount of the letter of credit which is taken. Changes of plan, larger expense than was anticipated, or some temporary difficulty regarding the letter of credit, will thus be met by a cable or mail communication with one’s home banker, or with the company issuing the letter of credit. One of the best plans is to authorize one’s banker to pay over to the exchange house issuing the letter of credit such sum as may be directed by cable. Arrangements should then be made with the exchange house regarding the terms and sig¬ nature of such a message. As the cable companies charge for the address and signature of a message, at the same rates as the body of the message, most firms in the United States having any considerable business abroad, file with the cable companies an address including only one word. This address should be known to the traveler, and he should also arrange for a special signature, representing his last name, if the name is not a common one, but, otherwise, some combi¬ nation which will be distinctive. The mere designation of the amount desired, without other words, will be sufficient for the body of the message, if the matter has been previously arranged. It may be ad¬ vantageous to have such a message sent by the foreign agents of the New York house, rather than directly by the traveler. A person traveling in foreign countries will be subject to the search of his baggage for the enforcement of the customs laws. Nearly all countries levy some sort of taxes, called customs duties, upon foreign goods entering such countries for use there. These duties are limited in some countries to a few articles. Thus, in Eng¬ land, the only articles for which a traveler’s baggage is likely to be searched are tobacco, tea, and coffee. England is what is called a free-trade country, where duties are levied upon articles which are not produced in the country. There is no other country pursuing this policy so strictly. The continental countries of Europe, however, while they levy high duties upon wholesale consignments of goods, are not severe in their scrutiny of the personal baggage of travelers. A traveler from London to Paris, or from Brussels to Paris, upon a through train, does not have to submit to the customs inspection of his trunks until he reaches his destination. His hand baggage may be examined at the frontier, but the mere opening of his satchel and the announcement, Nothing dutiable, in English or French, usually relieves him from any further search or scrutiny. Even in regard to his trunks, the continental customs officers are usually lenient. They 248 BUSINESS AND COMMERCE ask, perhaps, to have the tray lifted, take a look at the general con¬ tents of the trunk, and mark it to be passed without payment of duties. This course is pursued only in the case of travelers who are not expected to reside in the country in which they have arrived. A more serious effort to collect duties upon their baggage might be made, if it were known that they were bringing the goods into the country to be left there. The system of examining passengers’ baggage is much more severe in the United States, especially in New York. It was for¬ merly the custom to pass any articles which were for the personal use of the traveler, no matter how large the amount. In deciding whether the traveler was bringing the goods for sale, some regard would be had to his social station and wealth, but duty would not be levied upon personal effects which were clearly shown to be such, and not intended for sale. The law of 1894 declared that wearing apparel and other personal effects (not merchandise) of persons arriving in the United States (shall be free of duty), but this exemp¬ tion shall not be held to include articles not actually in use and necessary and appropriate for the use of such persons for the purpose of their journey and present comfort and convenience, or which are intended for any other person or persons, or for sale.^^ This was changed in the Dingley Law of 1897, so as to read as follows:— << Wearing apparel, articles of personal adornment, toilet articles, and similar per¬ sonal effects of persons arriving in the United States; but this exemption shall only include such articles as actually accompany and are in the use of, and as are necessary and appropriate for the wear and use of such persons, for the immediate purposes of the journey and present comfort and convenience, and shall not be held to apply to mer¬ chandise or articles intended for other persons, or for sale. << Provided, That in case of residents of the United States returning from abroad, all wearing apparel and other personal effects taken by them out of the United States to foreign countries shall be admitted free of duty, without regard to their value, upon their identity being established, under appropriate rules and regulations to be prescribed by the Secretary of the Treasury, but no more than one hundred dollars in value of articles purchased abroad by such residents of the United States shall be admitted free of duty upon their return.>> ■ This change of law subjects passengers arriving at New York to much questioning and to a close search of their baggage. It will be observed that two important changes have been made in the old requirements. A person cannot in any case bring in, free of duty, goods valued at more than $100, and he eannot even bring in artieles of this value unless they fall under the definition, wearing apparel, articles of personal adornment, toilet articles, and'similar personal effects. This language is held at the New York customhouse to exclude small pieces of bric-a-brac, books, and practically everything BUSINESS AND COMMERCE 249 which cannot be worn or has not immediate conneetion with the person. There is no minimum limit for assessing duties. An article costing less than a dollar is often singled out for the assessment of duty. Blank forms are distributed before the arrival of the steamer at the pier, which are signed by the passengers in the presence of a customs officer, but these are largely a formality. Since few pas¬ sengers are familiar with the 705 paragraphs of the tariff, it is well for a returning traveler to declare that he is not aware that he has any articles subject to duty, and to submit to the examination of his baggage. This examination is sometimes very minute, but usually more eareless. Where duties are levied under the law of the United States, they are for a very large proportion of the value of the article, and are levied at the price actually paid, but not less than the wholesale market price. A person who has bought a picture or a piece of bronze at retail will be eompelled, if he makes a truthful declaration, to pay duty upon the retail price, and not upon the wholesale price at which duty will be made by the large importer; but if the article had been given to him without cost, he will be required to pay at least the duties due upon the wholesale value as paid by the im¬ porter. The American tariff is complicated, and levies high duties upon clothing of all kinds, chinaware, and nearly all manufactured articles. These duties are of two kinds, specific and ad valorem. Ad valorem duties are levied, as the meaning of the Latin words implies, accord¬ ing to value. A duty of 60 per cent, ad valorem.^ for instance, is levied by the existing tariff upon decorated china. Specific duties are those which are levied by the pound, ton, or number of articles without regard to value. Thus, certain sizes of gloves are charged a duty of $3 per dozen pairs, and other sizes $4 per dozen pairs. These are only simple illustrations of a very complicated system. The duties on many articles are both specific and ad valorem, and the articles are classified by the number of threads to the square inch, and in other ways which enable only experts to determine their classification and the duties to be paid. A person bringing in a eonsignment of clothing, bric-a-brac, chinaware, or bronzes, would, upon arrival in the United States, probably have to pay at least half as much as their price in duties to the government, and very probably more than half. Articles manufactured abroad can be imported through the post office, but a good deal of red tape is involved in the process where the goods are subject to duty. Books in foreign languages are among the few articles that are free of duty. In the ease of other articles, it is a question whether they eannot, in most cases, be imported to 250 ■BUSINESS AND COMMERCE better advantage through a dealer than directly by the purchaser. When sealed packages, believed to contain articles liable to duty, are received in the foreign mails, notice is sent to the person to whom they are addressed to appear at the post office and to there open them in the presence of an officer of the customs. In case customs officers are not accessible, the postmaster is required to retain the packages, after they are opened by the person to whom addressed, and to report the nature and probable value of the contents to the nearest customs officer, who will thereupon notify the postrnaster what he considers the proper duties. Such duties must be paid before the packages are surrendered to the owner. The importation of merchandise by regular traders in foreign goods is organized upon an elaborate system. The process involves a great variety of legal documents, from the invoice, which is presented to a United States consul abroad for his certification, until the final delivery of the goods to the person to whom they are invoiced in this coun¬ try. There are customhouse brokers in New York, and at other important points, who are familiar with the manner of doing custom¬ house business, and who should be consulted or employed when such business is to be done upon any considerable scale. The tariff laws are strict regarding the valuation put upon imported goods by the invoice, and incorrect valuations are subject to heavy penalty. Goods on reaching the United States pass through the hands*of several classes of customhouse officers,— examiners, who determine the char¬ acter of the goods; appraisers, who determine their value; and com¬ puting clerks, who determine the duties which are due. There are methods of appeal from the decisions of the customs officers to the board of general appraisers and the United States courts, but they necessarily involve delay and expense. A complete code of customs regulations, making a volume of nearly eight hundred pages, is issued by the Treasury Department, but it would require elaborate study to enable a person to determine, without the aid of a lawyer or custom¬ house broker, all of the rules governing importations. The transfer of money from place to place is an important branch of modern banking. The sending of a check by ordinary mail is usually sufficient for the settlement of obligations at distant points within the United States. A check drawn upon one’s own account in a national or state bank is usually acceptable for small amounts in the settlement of ordinary transactions. There are occasions, how¬ ever, where a certified check, a cashier’s check,* or a draft upon a leading city, is preferred, and may be asked for, by a creditor, x These forms of payment are more nearly in the nature of cash, because they are likely to be accepted as the equivalent of cash by a city BUSINESS AND COMMERCE 251 bank. An individual check upon a distant bank rests only upon the g-ood faith of the maker of the check, until it has been returned for collection to the bank upon which it is drawn. As this might require a week or more between distant points, a person making a payment which he desires to be at once available, would better employ one of the other forms of check, or a draft. This may be important in obtaining the immediate shipment of goods, which might otherwise be held back until an individual check had been collected from the bank on which it was drawn. A draft drawn upon a New York bank, offered in payment in the South or AVest, is especially acceptable, because such large payments have to be made by those sections in New York, that an obligation entitling the holder to money at the metropolis is often at a premium. This is the nature of a draft upon a New York bank, whether given by a bank close at hand or far removed from New York. Sending Money Through the Post Office The postal service offers facilities for transmitting money in two forms,— the post office money order and the registered letter. Money orders are substantially in the nature of post office drafts. They are issued at money-order offices, which include all free delivery offices, and about 30,000 offices in all, but do not include all of the small post offices. Money orders must be paid for in legal-tender currency or in national bank notes. Postmasters and their assistants are forbidden to accept checks, drafts, or notes, in payment of money orders, and it is made a misdemeanor, with punishment by fine, to issue a money order without having received the money for it. The charge for the issue of money orders is graded according to the amount of the or¬ der. Three cents is charged on sums not exceeding $2.50; five cents on larger sums, not exceeding $5; eight cents on orders up to $10; ten cents up to $20; twelve cents up to $30; fifteen cents up to $40; eighteen cents up to $50; twenty cents tip to $60; twenty-five cents up to $75; and thirty cents up to $100. A money order is not issued for more than $100, but additional or¬ ders may be issued to the same person. The only limit now imposed upon such issues is that not more than three orders for fioo, drawn upon the same fourth-class post office, shall be issued to one person. There is no limit upon the orders that may be issued when drawn upon different offices. AVhen application is made for the issue of a money order, the ap¬ plicant is handed a printed form to be filled out with the name and address of the person, and the amount for which the order is desired. Care should be taken to give the full and correct name of the per- / BUSINESS AND COMMERCE son in whose favor the order is drawn. The postmaster receives and keeps this application, and himself fills out the money order and de¬ livers it to the person desiring to transmit the money. This order should be inclosed in an ordinary letter to the person to whom the money is to be paid. The money order has a receipt attached, which may be torn off along the line of perforation, and which should be retained by the person buying the order. The postmaster where the order is purchased, in the meantime, sends a notice to the postmaster where it is to be paid, giving the names of the parties. This is called . the letter of advice, and it is the authority by which the postmas¬ ter pays the order at the office upon which it is drawn. A postmaster will not pay a money order for which he has not received the ad¬ vice. It is the letter of advice that enables him to determine that the order has been properly issued, and who is entitled to the money. He usually requires the identification of the person presenting the order. A great many money orders are now endorsed, and deposited for collection in the banks, which assume the duties and risks of cor¬ rect identification and settle their accounts in bulk with the money order division of the post office. The government is not lawfully liable for the losses resulting from the use of money orders, but the system is surrounded with such safeguards that these losses amount to little or nothing. The num¬ ber of money orders paid during the year ending June 30, 1900, was 32,467,781, and their amount was $248,120,285.82. The amount of loss made good by the government was $69.45. Other losses,— such few as occurred,— were recovered from the post office employees whose carelessness was responsible for their wrongful payment. The amount of a money order lost in the mails can be recovered by the sender or by the payee (the person to whom the money is to be paid) upon application at the issuing office or at the office upon which the order is drawn. A duplicate order is issued by the Post Office Department, free of cost, and without unreasonable delay, where it is desired to transmit the order. The money is returned to the person buying the order when this is preferred. Persons traveling often buy money orders payable to themselves. This plan has advantages over carrying large amounts in currency, and in recent years has been growing in popularity with traveling men. It is better in some cases than carrying drafts or blank checks, because a money order is more readily negotiable, but in other cases, the drafts or checks are to be preferred. The Post Office Department makes no opposition to this use of the money-order 'system, and per¬ mits orders to be drawn by the same person in his own favor and payable at the office where they are drawn. This makes the money- BUSINESS AND COMMERCE 253 order system a sort of bank or savings deposit system of keeping money which is not needed for immediate use. A money order ceases to be valid after one year, but it is payable by a treasury warrant issued by the Post Office Department in Washington, upon be¬ ing presented for that purpose. Postmasters usually obtain the sig¬ nature of the buyer of an order upon the advice where the order is payable to the buyer. This aids in comparing the signature and in identifying the person to whom the order is to be paid. Money orders are issued for the transmission of money to foreign countries under conventions made with most of these countries. They are called international money orders and blanks are used which differ slightly from those used for domestic money orders. They can be obtained at most money-order offices. The other safeguard afforded by the government for the trans¬ mission by money applies equally to anything of value to be sent through the mails. It is known as the registry system. The govern¬ ment in this case has no exact information as to the contents of packages which are registered, except so far as it may be necessary to determine their classification as mail matter. Large packages of currency are often sent by banks through the registered mails, the charges for registration being less than the regular charges of the express companies. The registration system is also useful for send¬ ing valuable documents, silverware, or any merchandise of value. The fee for registering a letter or package is eight cents, without regard to the size of the package or the amount of postage it may require upon it. Printed matter and merchandise may be sent at the regular rates for such matter, with the payment of the registra¬ tion fee. Mail matter may be registered at any post office in the United States. A person desiring to register a letter or package, is required, not only to have the package properly addressed, but to write his name on the back of the envelope or wrapper. It should then be presented at a post office or to a letter-carrier, and the postmaster is informed that it is desired to register the package. A duplicate receipt will be written by the postmaster, or by the clerk in charge of registration, one copy of which will be given to the sender of the package and the other . retained in the post office. A person desiring to send a registered letter or package should not undertake to mail it in a letter box, as is sometimes done by affixing the proper postage, or even by dropping pennies into the box. The object of registra¬ tion is to insure complete responsibility in the passage of the letter or package from one employee to another, and great risk is run by 2^4 BUSINESS AND COMMERCE the neglect of the sender to secure a receipt from the first official who receives the package. Registration of letters by the regular mail-carriers has recently been authorized in all residence districts, and even in the business districts in some of the smaller cities. The letter-carriers are pro¬ vided with proper books and receipts for performing the same functions as the postmaster in receiving and receipting for registered matter. Special arrangements are made by the Post Office Depart¬ ment for registration by firms and corporations having large numbers of packages to register. Such establishments are furnished with registration books of their own, by which a considerable part of the clerical work is done by their own employees; the receipts are kept together in the book, instead of being detached. In such cases, the post office officials verify the registration blanks and the packages presented to them. When a registered letter or package is delivered to the person for whom it is intended, he is asked by the postmaster or letter-carrier to sign a book, acknowledging the receipt of the package, and also to sign a card making the same acknowledgment. The card is returned in the ordinary mail to the sender of the package. A person who fails to receive such a card after a proper interval, should make in¬ quiry as to the fate of the package. It may happen that the package has reached its destination, but that the card has been lost on its return trip. All such inquiries should be addressed to the postmaster at the post office where the package iS mailed, and should set forth all the facts regarding the names and addresses of the parties, the time of mailing, and any marks upon the package which might serve to identify the wrapper in case it had been broken or had strayed from its proper destination. Ordinary mail, as well as registered mail, is sometimes lost through carelessness in writing directions. The name of one’s own city is often substituted in haste for the place intended, and other similar mistakes are made. Letters misdirected in this manner are often recovered through the skill and perseverance of the postal authorities. In the case of registered letters, a law of 1897 authorizes the government to make losses good to an amount not exceeding fio, where they cannot be recovered in any other way. Trusts. — Trusts are combinations of capitalists for the purpose of restricting production and increa,sing the price of manufactures, etc., in which the members of the trusts are interested. Trusts were first introduced by American capitalists, and are in principle similar to syndicates, unions, etc. The operations of trusts in the United States, BUSINESS AND COMMERCE 255 where they prevail extensively, were investigated by a committee of the U. S. Senate which issued an. adverse report in 1888. Usance. — The time allowed by usage for the payment of a bill of exchange; any business custom. Usury.— Usury now means iniquitous or illegal interest of any kind on money lent. The Mosaic law forbade a Jew to take usury from a fellow-countryman. Greek and Roman moralists mainly dis¬ approved of any usury; the Church Fathers, the Popes, the Canon law absolutely'forbade it; hence the Jews had a kind of monopoly of usury at the Reformation. Luther condemned interest, while Calvin allowed it. A long series of laws was passed on the understanding that usury was wrong, but admitting many exceptions, the usury laws thus doing much harm and multiplying legal fictions. The moral question is still debated, and moralists such as Ruskin wax fierce against the taking of interest. But it may broadly be said that modern civiliza¬ tion fully recognizes the admissibility of fair interest. % VALUE OF A TRADE By CHARLES F. WINGATE I N THIS industrial age, no field offers such a future for an energetic and intelligent youth as that of mechanics. It is a mistaken -idea which leads so many boys to consider it more genteel to run errands, sweep out offices, build fires, and copy letters, than to make hats or shoes, lay bricks, wield the saw or jack-plane, handle the machinist’s file, or the blacksmith’s hammer. A country which has produced such men as Franklin, Robert Fulton, George Steers, Goodyear, Bigelow, the Hoe Brothers, McCormick, Carnegie, Edison, Ericsson, Herreshoff, and Fairbanks should be proud of their achievements and encourage the rising generation to emulate their deeds. The Talmud says: He who teaches not his son a trade is to be regarded as if he had taught him how to rob.^^ In ancient times even kings were required to learn trades; Queen Victoria made each of her family learn engraving, painting, or needlework, and so did the late Emperor William. Every boy should be taught to use his hands. ^Wny one who can learn to write can be taught to draw,^^ says Prof. Walter Smith; and drawing is the basis of manual education. Carlyle says: A man is a tool-using animal,and he always spoke with reverence of the bridge which his father, the stone-mason, erected at Cromarthy. Trade-schools have become indispensable. Manual train¬ ing counteracts the narrowing effect of the subdivision which tends to make a workman a mere machine. General A. Francis Walker says: ^ Manual training teaches accuracy, thoroughness, and develops charac¬ ter. ft trains the eye, the hand, and the brain. There can be no cramming in a trade-school. What we read or hear may be forgotten, but not what we do.^'^ * A smattering of book-learning may breed conceit, but skill with tools cannot. It is the little knowledge that demoralizes. Professor Sweet says: The workman is injured by scientific training when he thinks more of what he knows than of how to apply it. Some practical men are prejudiced against trade-schools. Because they got along without such aids, they think the boys of to-day can follow in their footsteps. In his address on The Artist and the Artisan,Cardinal Wiseman showed I how all the great painters and. sculptors of the fifteenth century were truly artisans as well as artists. Michelangelo hew^ed his stupendous creations from the marble; Benvenuto Cellini forged and molded his superb silverwork; Titian alone knew the secret of mixing his match- BUSINESS AND COMMERCE 257 less colors; Raphael was a master of brush work. The prejudice against trade-schools formerly existed against law schools. The men who scoif at scientific instruction in a trade do not allow for changed condi¬ tions, or understand the difference between teaching a knowledge of scientific or mechanical principles and learning by practice. Most fore¬ men or superintendents have not the time, inclination, or ability, to teach. They have learned to do many things, the processes of which they can¬ not explain. A trade-school teaches the rudiments of practice. If it can be attached to the factory, as at Worcester, Mass., where the pupil can enter at once upon practical work, so much the better. At the Baldwin Locomotive Works, in Philadelphia, the pupils from the Spring Garden Institute are placed under a veteran workman. A boy with six months’ training ranks as high as one who has had a year’s shop practice. In the trade-schools in New York, Brooklyn, Philadelphia, and Chicago, are taught carpentry, bricklaying, plumbing, plastering, metal and sheet cornice-work, stone-cutting, fresco-painting, decorating, and electrical work. Most of the graduates earn good wages. A number are master- mechanics. Many of the pupils have worked in shops and seek to im¬ prove themselves in some special line. They make rapid progress be¬ cause they know just what they want to learn. The graduates from the English technical schools earn high wages. One young graduate received more than his father and two brothers together. , By the testimony of workmen themselves, increased skill and aptitude come from education, and the superior workman performs his work with less labor than his fellows. Manual skill also breeds self-respect. An English artisan may sit in parliament, but a man servant has no higher ambition than to keep a public house. Few persons can study alone. They need the stimulus which comes from contact with other students, and also the guidance of a trained teacher. Manual training also needs special appliances and apparatus such as the ordinary shop or factory does not possess. Not every begin¬ ner becomes a skilled workman, but no more does every law student become a Marshall or an Evarts, or every clerk become a Stewart or an Astor. Many young mechanics have been benefited by taking the course at some Correspondence School, which has been most helpful in many ways, both to beginners and to older men. A boy should not be repelled by the drudgery of a trade, or be afraid of soiling his fingers. The doctor, the lawyer, and the clergyman each have to perform disagreeable service, but they do not complain. To dress a wound, visit squalid homes, or defend criminals in court, is not pleasant work, yet it must be done by some one. A youth need not 13—17 BUSINESS AND COMMERCE 258 waste a single hour in mere drudgery in mastering a trade, because he will gain benefit from every experience. Foreign workmen have gener¬ ally better preparatory training than Americans, but they are less versa¬ tile. John Lafarge considers that a first-class American mechanic has no superior. A boy who means to become a mechanic should not change from one trade to another. The shoemaker must stick to his last. As Caleb Garth says in Middlemarch,^^ You must be sure of two things: You must love your work, and not always be looking over the edge of it, wanting your play to begin; and the other is: You must not be ashamed of your work and think it would be more honorable for you to be doing something else.^^ Every young mechanic should take a scientific or trade journal which contains the latest and best ideas about each trade. The isolated artisan in some factory, town, or village, who reads the trade journals, feels him¬ self linked by sympathy and self-interest with his fellow-craftsmen. They supply a vehicle for discussion and for advancing knowledge in every department. That they are so widely read and quoted is a proof of their value. ■ In choosing a trade a preference should be given to a healthful occu¬ pation. Indoor work is not so wholesome as outdoor work. The brick¬ layer or mason lives longer than the mill hand. The man in the chemical factory is more exposed to disease than the machinist or the carpenter. The plumber has to work about sewers and drains, and must be careful. The cigar maker in the small shop is worse off than if in a factory with large rooms and plenty of windows. Working in constrained positions, as dressmakers, tailors, shoemakers, and others, do, cuts down the average length of life. Blacksmiths are very healthy, as are letter-carriers, whose exercise is the best and most natural that can be taken. Butchers do not live long, being poisoned by the exhalations of the slaughterhouses. Printers are short lived. Persons who work in high temperatures, as, for instance, bakers, cooks, .smelters of ores, and operators in many parts of woolen mills, are apt to suffer from ill health. Lives of miners are less than the average length. Engineers in charge of boilers, who spend most of their time in cellars, are not as a class long lived. The commercial world is over crowded and competition cuts down salaries to the lowest point. An ordinary clerk earns less than a first- class mechanic. He is less independent and has not as good prospects. An average clerk does not require special ability, but a mechanic must be intelligent, and, if he is industrious and observing, he improves daily. While machinery has thrown many workmen out of employment, im¬ migration has displaced thousands of clerks. A mechanic with a kit of tools and enough money to hire a basement or a loft may start on his BUSINESS AND COMMERCE 259 own account, or he may work at home. If he has energy and friends, he will have little trouble in getting along. More mechanics than clerks own their homes. They get more enjoyment and comfort out of life, and they leave their families better provided for. The mechanic’s social position compares favorably with that of the clerk. Even the much abused plumber is now a sanitary engineer, and the tinsmith is a man of stand¬ ing, while many other callings have gained in dignity and independence. Through building associations, all over the country, thousands of wage earners escape paying rent and are sure of a roof over their heads. Like Longfellow’s Village Blacksmith, ^Hhey look the whole world in the face, for they owe not any man. If a mechanic has any business faculty, he may start a shop for himself. Most of the heads of manufac¬ tories, and the majority of builders and’contractors of the United States, have risen from the ranks. Mr. Carnegie’s thirty partners in the steel industry began at the bottom of the ladder and won promotion by merit. There is an unlimited demand for capable foremen and superintendents in industrial establishments; men who are fitted for such positions usually find them. Governor Pingree, of Michigan, began life cutting leather soles ten hours a day for four dollars a week. Judge W. McHugh, of the United States District Court of Nebraska, was a cobbler, and Judge Charles Daniels, of Buffalo, was a shoemaker in early life. Admiral Sampson was the son of a farm laborer, and his early life was full of hardship. Ezra Cornell, the founder of Cornell University, was the son of a New Jersey Quaker, and in his youth followed the pottery trade. Austin Cor> bin was a farmer’s son, brought up to toil. He earned enough to pay for his own education, started in business in a small way, worked hard, and reaped the reward. The present Archbishop of Canterbury was left fatherless at the age of thirteen, and had to earn his own living at seven¬ teen. He learned to plow as straight a furrow and to thresh as well as any man in the parish. To conclude, the man who makes something always has an ad¬ vantage over the dealer who buys and sells, or the professional man who gives advice. People must have clothes, shoes, furniture, and houses, and the services of the artisan will always be in demand. The field of invention offers boundless opportunities for the ingen¬ ious. New lands are being opened up and new industries developed. Therefore, the skilled hand-workmen need have no fear of not finding steady and profitable employment. At present the most prominent field in mechanics is electricity, but the whole industrial world is open to young men of capacity and character. Vendee.— One to whom something is sold. Vendor. — A seller. Void.— That which is of no legal effect. WAGES EASILY CALCULATED —On a Basis of Ten Hours’ Labor per Day 260 BUSINESS AND COMMERCE 0 0 0 0 0 Q 0 0 0 0 0 0 0 0 0 0 M _« 0 CO VO to CO VO 0 CO VO a l-l cO to Ov M 04 Tj- VO CO vO >0 CO M —< HH M t— —1 cd to dv —t M Hrt cim c^lrt p-|« c^irt —|o Nice -lee Nice Hee 0 00 VO CO 0 CO 0 VO CO 0 VO CO 0 VO CO 0 0 M CO to 00 0 M CO to VO CO 0 VO CO 0 HH —1 M M M CO to vd CO d t— Q to 0 to 0 to 0 to 0 to 0 0 0 0 0 0 0 0 M CO Tf VO ON 0 04 CO to 0 to 0 to 0 ON M M M CO vd dv c^n r-tm cilrt —ICO N|C 9 -ice Nice Nice 0 VO CO 0 0 CO VO 0 CO VO 0 CO VO Q CO VO 0 0 0 M Tj- to VO 00 ON 0 04 CO VO 0 CO VO 0 M M M 04 to VO 00 f-t|N —In —IN 0 VO to r-' 0 04 to 0 04 to 0 to 0 to 0 to 0 M cs CO to VO 00 0 M 04 to IS- 0 04 to M M M 04 CO id vd • f-l« « 1 ® f-ilco Nirt —|ec Nice Hee ew -ee 0 VO l-H CO to VO X 0 (-H CO 10 VO CO . 0 VO CO 0 0 0 M cs CO to 00 On 0 >H cO to VO 00 0 M —i 04 CO id r-^l NiM iHie 4 r-|« ihKS Nice -IN -lee Nice Nice 0 to M HH C 4 CO '^r to VO CO VO to to —1 0 UO 0 04 CO to VO Ov 0 H 04 CO to VO M 04 CO to VO 0 to 0 0 0 0 0 0 0 0 0 0 Q 0 0 g 0 0 0 M (N CO to VO CO On 0 0 0 0 0 0 vd M 04 to to vd p^lOD *-i|eo c»lrt -|oo r-W -IN Nice —|ce Nce Hee 0 Os 00 VO VO to CO 04 ' 1— CO to 00 0 10 0 0 04 CO to VO CO O' 00 to to 10 M 04 CO td r-m r^n -w N'ro fice Nice r«|ee N|ee Q 00 VO to CO M 0 CO NO to cO VO 0 to VO 0 5 0 0 M CO T 3 - to to VO CO VO to CO M 0 to M 04 CO TT ' to *HlC< r-iM —IN -IN 0 ro to 04 0 to 04 0 to 0 to 0 to 0 to 0 0 t-t 04 cO CO to • VO VO to 04 0 to w 04 CO CO C»!W f-l« e«irt f-'.),odd; fantastic; vulgar. Blase {Fr.), surfeited ; palled; incapable of con¬ tinued pleasure. Bona fide {Lat.), in good faith. Bon ami {Fr.), good friend. Bon gre, mal gre {Fr.), willing, or unwilling. Bon jour {Fr.), good morning. Bonne {Fr.), a nurse. Bonne foi {Fr.), good faith. Bon soir {Fr.), good evening. Bon vivant {Fr.), one fond of good living. Bouillon {Fr.), soup. Bravo ! {It.) Well done ! Brevet d’invention (Fr.) letters patent. Brevete {Fr.), patented. c Cacoetbes {Lat.), a mania; a habit. Cacoetbes carpendi {Lat.), a mania for fault¬ finding. Cacoetbes loquendi {Lat.), a mania for speak¬ ing. Cacoetbes scribendi (ZaA), a mania for writing. Csetera desunt {Lat.), the rest is wanting. Caeteris paribus (Za/.), other things being equal. Capias {Lat.), you may take ; — the initial word of a writ authorizing the arrest and keeping of a person until answer or satisfaction is made. Carpe diem {Lat.), enjoy the (pleasures of the) day; seize the opportunity. Carte de visite {Fr.), a small photograph on a card originally used as a visiting card. Casus belli {Lat), a cause or reason for war. Causa sine qua non {Lat.), an indispensable condition. Caveat actor {Lat.), let the doer beware. Caveat emptor {Lat), let the buyer beware. Certiorari {Lat), to be made more certain. C’est-a-dire {Fr.), that is to say. BUSINESS AND COMMERCE 319 Champs flys^es (Fr.), Elysian Fields. Chateaux en Espagne (Fr.), castles in Spain; air-castles. Chef {Fr.), the head ; chief ; the chief cook. Chef de cuisine {Fr.), chief cook. Chef-d’oeuvre {Fr.), a masterpiece. Chemin de fer {Fr.), railroad. Chere amie {Fr.), a dear friend. Chiaroscuro (//.), distribution of light and shade in a painting. Cicerone (//.), a guide. Ci devant {Fr.), formerly; hitherto. Ci git {Fr.), here lies. Cis {Lat.), on this side of. Cogito, ergo sum {Lat.), I think, therefore I exist. Coiffeur {Fr.), a hairdresser. Coiffure {Fr.), a headdress. Comme il faut {Fr.), as it should be; proper. Compagnon de voyage {Fr.), a traveling com¬ panion. Compos mentis {Lat.), of sound mind. Comte {Fr.), Count. Comtesse {Fr.), Countess. Con amore (//.), with love ; passionately. Con dolore {Lt.), with grief; sadly. Confrere {Fr.), an associate; a colleague. Conquiescat in pace {Lat.), May he rest in peace. Con spirito (//.), with spirit; with animation. Conversazione {Lt.), conversation; a meeting for conversation. Corrigenda {Lat.), corrections which must be made. Couleur de rose {Fr.), rose-color; beauty or at¬ tractiveness. Coup d’etat {Fr.), a stroke of policy, usually a radical move. Coup de grace {Fr.), a finishing stroke. Coup de main {Fr.), a sudden effort. Coup de pied {Fr.), a kick. Coup de soleil {Fr.), a sunstroke. Coup de theatre {Fr.), a theatrical effect. Coup d’ceil {Fr.), a glance. Cui bono ? {Lat.) For whose good? What use? Cum grano salis (Za?.), with a grain of salt; with some discretion or allowance. D De bonis non {Lat.), of the goods not yet ad¬ ministered on. De die in diem {Lat.), from day to day. De facto {Lat.), from the fact; of one’s own right; really. Dehors (ZV.), without; out of; foreign; irrele¬ vant. Dei gratia {Lat.), by the grace of God. De integro {Lat.), from the start; anew. Dejeuner a la fourchette {Fr.), a meat break¬ fast. De Jure {Lat.), by law; by right. Delenda est Carthago {Lat.), Carthage must be destroyed. De mal en pis {Fr.), from bad to worse. De nihilo nihil fit {Lat.), From nothing, noth¬ ing comes. De novo {Lat.), anew. Deo volente (D.V.) {Lat.), God willing. De profundis {Lat.), out of the depths. Dernier ressort {Fr.), a last resort. Desideratum {Lat.), something to be desired. De trop {Fr.), too many; out of place; not wanted. Deus vobiscum {Lat.), God be with you. Dictum {Lat.), a decision. Dictum de dicto {Lat.), judgment from hear say. Dies irse {Lat.), day of wrath. Dies non {Lat.), a day upon which a court does not sit. Dieu avec nous {Fr.), God with us. Dieu defend le droit {Fr.), God defends the right. Dieu et mon droit {Fr.), God and my riglit. Dieu vous garde {Fr.), God protect you. Dilettante {Lt.), a lover of fine arts. Diner {Fr.), dinner. Dirigo {Lat.), I direct or guide; — the motto of Maine. Distingue (Zr.), distinguished; eminent. Distrait {Fr.), absent-minded; distressed in mind. Divertissement {Fr.), amusement; recreation. Docendo discimus {Lat.), we learn by teach¬ ing. Dolce {Lt.), sweet; pleasant; agreeable. Dolce far niente {Lt.), sweet idleness; luxuri¬ ous ease. Dolcemente {Lt.), softly. Doloroso {Lt.), soft and pathetic. Dominus vobiscum {Lat.), the Lord be with you. Double entente {Fr.), an equivocal or double- meaning phrase; — wrongly written double entendre. Doux yeux {Fr.), soft glances. Dramatis personae {Lat.), cast of characters in a play. Dulce «Domum» {Lat.), «Home, Sweet Horne.^^ Dulce et decorum est pro patria mori {Lat.), It is a sweet and becoming thing to die for one’s country. 320 BUSINESS AND COMMERCE Dum spiro, spero (Lat.), While I breathe, I hope ; —part of the motto of South Carolina. Dum vivimus, vivamiis {Lat.), While we live, let us live. Durante vita {Lat.), during life. E Eau de Cologne {Fr.), Cologne water. Eau de vie {Fr.), water of life; brandy. Ecce homo {Lat.), behold the man. Ecce signum {Lat.), behold the sign. ^cole de droit {Fr.), school of law. Ecole de medecine {Fr.), medical school. Ecole militaire {Fr.), military school. Ecole polytechnique {Fr.), polytechnic school. E contrarib (//.), on the contrary. Edition de luxe {Fr.), a splendid edition of a book. Editio princeps {Lat.), the first edition of a book. ^galitd {Fr.), equality. Emeritus {Lat.), one who has retired from ac¬ tive duties, as a professor. En arriere {Fr.), in the rear; behind; back. En avant ! {Fr.) Forward ! En bagatelle (AV.), trifling; contemptuously. En deshabille {Fr.), in undress. En echelon {Fr.), in steps ; like stairs. En eflfet {Fr.), in effect; really; in fact. En famine {Fr.), in a domestic state ; at home. Enfant gate {Fr.), a spoiled child. Enfant terrible {Fr.), a child who annoys by ill-timed remarks. Enfin {Fr.), at length; at last; finally. En grande tenue {Fr.), in full dress. En haut {Fr.), on high; above. En masse {Fr.), in a body. Ennui {Fr.), weariness; a state of being bored. En passant {Fr.), in passing; by the way. En queue {Fr.), in the rear; behind. En rapport {Fr.), in harmony, or agreement, or close touch, with. En regie {Fr.), in order; according to rule. En revanche {Fr.), in return. En route {Fr.), on the way. En suite {Fr.), in company. Entente cordiale {Fr.), evidences of good will and harmony existing between two states or kingdoms. Entourage {Fr.), surroundings. En tout {Fr.), in all; wholly. Entre deux feux {Fr.), between two fires; in a dilemma. Entremets {Fr.), small, side dishes. Entre nous {Fr.), between ourselves; in confi¬ dence. Entrepot {Fr.), a storehouse ; warehouse ; mag¬ azine. En verite {Fr.), in truth ; truly. E pluribus unum {Lat.), One out of many; — the motto of the United States, which is one government formed of many separate states. Erratum, errata, pi. {Lat.), an error. Esprit de corps {Fr.), the spirit which animates a body or organization such as the bar, the army, or navy. ^tage {Fr.), the story of a house. Et csetera {Lat.), and the rest. Et sequentes, et sequentia {Lat.), and what follows; et. seq. Et tu Brute ! {Lat.) And you, also, Brutus ! RvprjKa, (Eureka!) {Gr.) I have found it! — the motto of California. Ewigkeit {Ger.), eternity. Ex cathedra {Lat.), from the chair or bench; from one in authority; — the decisions de¬ livered by popes and others in authority. Excelsior {Lat.), Higher;—the motto of New York. Exceptis excipiendis {Lat.), proper exceptions having been made. Excerpta {Lat.), extracts. Ex curia {Lat.), out of court. Ex dono {Lat.), by the gift. Exempli gratia {Lat.), by way of example ; e.g. Exeunt {Lat.), they go out. Exeunt omnes {Lat.), all go out. Exit {Lat.), he goes out. Exitus acta probat {Lat.), The result justifies the deed ; — the motto of Washington. Ex mero motu {Lat.), of his own accord. Ex more {Lat.), according to custom. Ex necessitate rei {Lat.), from the necessity of the case or thing. Ex ofBcio {Lat.), by virtue of his office. Ex parte {Lat.), on one side only. Experto crede {Lat.), take the experience or one who has tried. Ex post facto {Lat.), after the deed is done. Ex propriis {Lat.), from one’s own resources. Ex tacito {Lat.), tacitly. Ex tempore {Lat.}, without preparation or fore¬ thought. Ex uno disce omnes {Lat.), from one learn all. F Facetiae (Z^?/.), jokes; humorous sayings. Facile princeps {Lat.), easily first; the admit¬ ted chief. BUSINESS AND COMMERCE Facilis descensus Averno {Lat.), the descent to hell is easy. Fa9on de parler {Fr.), manner of speaking. Facsimile {Lat.), make it like; an exact copy. Factotum {/.at.), man of all work. Faire mon devoir [Fr.), to do my duty. Faire sans dire (Fr.), to do without saying; to act unostentatiously. Fait accompli (Fr.), something already done. Far niente {It.), doing nothing. Fauteuil {Fr.), an armchair. Faux pas {Fr.), a false step ; a mistake. Fecit {Lat.), he made it. Femme couverte {Fr.), a married woman. Femme de chambre {Fr.), a chambermaid. Femme de charge {Fr.), a housekeeper. Femme sole {Fr.), an unmarried woman. Ferme orn^e {Fr.), an ornamented farm. Festina lente {Lat.), make haste slowly. Fete champetre {Fr.), a rural festival. Fete Dieu {Fr.), the festival of Corpus Christi. Feu de joie {Fr.), a firing of guns on joyous oc¬ casions ; a bonfire. Fiat justitia, ruat caelum {Lat.), Let justice be done, though the heavens fall. Fiat lux {Lat.), let there be light. Fide et amore {Lat.), by faith and love. Fidei defensor {Lat.), defender of the faith. Fides Punica {Lat.), Punic faith; treachery. Fidus Achates {Lat.), faithful Achates; a true friend. Fille de joie {Fr.), a woman of low pleas¬ ures. Fils {Fr.\ son. Finis {Lat.), the end. Finis coronat opus {Lat.), The end crowns the work. Flagrante hello {Lat.), while war is going on. Flagrante delicto (Za/.), while committing the crime. Fleur d’eau {Fr.), even with the surface of the water. Forsan et haec olim meminisse juvabit {Lat.), Perchance, in after years, it may re¬ joice you to remember even these things. Fortes fortuna juvat {Lat.), Fortune favors the brave. Fortiter in re (Lat.), firmness in action. Fra (//.), brother; friar. Frais {Fr.), cost; expense. Franco {Lt.), post free. Front a front {Fr.), face to face. Fugit hora {Lat.), the hour flies. Functus of&cio {Lat.), his office having been completed ; hence, out of office. Furor loquendi {Lat.), a rage for speaking. Furor scribendi {Lat.), a rage for writing. 13—21 32 1 G Gallice {Lat.), in French. Gar9on {Fr.), boy; waiter. Garde a cheval {Fr.), a mounted escort or guard. Garde du corps {Fr.), a body guard. Garde-feu {Fr.), a fire guard. Gardez {Fr.), take care ; be on your guard. Gardez bien {Fr.), take good care. Gens d’armes {Fr.), armed police. Gitano {Sp.), a gypsy. Gloria in excelsis {Lat.), Glory to God in the highest. Gloria Patri {Lat.), Glory be to the Father. TvuQl aeavTov (Gnotbi seauton) {Gr.), knov/ thyself. Grace a Dieu (Zr.), thanks to God. Grande parure {Fr.), full dress. Grande toilette {Fr.), full dress. Grand merci (Z'n), many thanks. Gratis dictum {Lat.), mere assertion. Guerra k cucbillo {Sp.), war to the knife. Guerre a mort {Fr.), w'ar to the death. Guerre a outrance {Fr.), war to the finish. H Habile (Zr.), clever; skilful. Hac lege {Lat.), with this ruling or condition. ’2,ey6iLi£vov (Hapax legomenon) {Gr.), said but once (of a rare word or remark). Haud ignara mali, miseris succurrere disco {Lat.), Not ignorant of misfortunes myself, I learn to succor the wretched. Haut et bon (Zr.), high and good. Haut godt (Zr.), high flavor; good taste. Hie et ubique {Lat.), here and everywhere. Hie finis fandi {Lat.), here there was an end of speaking. Hie jacet {Lat.), here lies. Hie labor, hoc opus est {Lat.), Plere is labor, here is work. Hie sepultus {Lat.), here is buried. Hinc illse lacrimse {Lat.), hence these tears. Hoc age {Lat.), do this. Hoc anno {Lat.), in this year. Hoc loco {Lat.), in this place. Hoc tempore {Lat.), at this time. Of ttoTLol (Hoi polloi) {Gr.), the many; the rabble; the mob. Hombre de uno libro (6)>.), a man of only one book. Honi soit qui mal y pense (Zr.), Let evil be to him who evil thinks. Hora d sempre {Lt.), it is always time. 322 BUSINESS AND COMMERCE Horriblle dlctu (Lat.), horrible to relate. Hors de combat out of condition to fight. Hors de propos not to the point or pur¬ pose ; not apropos. Hors d’oeuvre (jFr.), out of course ; out of order. Hortus siccus (Lat.), a collection of dried plants; a botanical collection. Hotel de ville the town hall. Hotel garni (/>.), furnished lodgings. Humanum est errare (Lat.), it is human to err. I Icb dien (Ger.), I serve; — the motto of the Prince of Wales. Id est {Lat.), that is ; t. e. Ignorantia legis neminem excusat {Lat.), Ig¬ norance of the law excuses no one. Impedimenta {Lat.), baggage, especially that of an army. Impoli (AV.), unpolished ; rude. Impolitesse (Ar.), coarseness; rudeness. In actu {Lat.), in act or reality. In seternum {Lat.), forever. In ambiguo {Lat.), in doubt. In armis {Lat.), under arms. In articulo mortis {Lat.), at the point of death. In camera {Lat.), in secret. In curia {Lat.), in the court. Index expurgatorius {Lat.), a list of prohibited books. In dubiis {Lat.), in matters of doubt. In equilibrio {Lat.), in equilibrium; perfectly balanced. In esse {Lat.), in being. In extenso {Lat.), at full length. In extremis {Lat.), at the point of death. Infra dignitatem {Lat.), beneath one’s dignity; infra dig. In boc signo spes mea {Lat.), In this sign is my hope. In hoc signo vinces {Lat.), By this sign )-ou shall conquer. In limine {Lat.), at the outset; on the thresh¬ old. In loco {Lat.) in place. In loco parentis {Lat.), in the place of a par¬ ent. In medias res {Lat.), into the midst of things. In medio tutissimus ibis {Lat.), you will go most safely in the middle; a middle course is the safest. In memoriam {Lat.), in memory; to the mem¬ ory of. In nomine {Lat.), in the name of. In perpetuum {Lat.), forever. In pleno {Lat.), in full. In posse {Lat.), in possibility. In praesenti {Lat.), at the present time. In propria persona {Lat.), in person. In re {Lat.), in the matter of. In rem {Lat.), against the property or thing. In rerum natura {Lat.), in the nature of things. In saecula saeculorum {Lat.), for ages on ages. In sano sensu {Lat.), in a proper sense. Insculpsit {Lat.), he engraved it. In situ {Lat.), in its proper or natural position. Insouciance indifference ; carelessness. Insouciant (AV.), indifferent; careless. In statu quo {Lat.), in the former state. In stirpes {Lat.), according to ancestry. Inter alia {Lat.), among other things. Inter canem et lupum {Lat.), between dog and wolf, i. e., twilight. Inter nos {Lat.), between ourselves. Inter se {Lat.), among themselves. In totidem verbis {Lat.), in so many words. In toto {Lat.), in the whole, entirely. Intra muros {Lat.), within the walls. In transitu {Lat.), in transit; on the journey. Intra parietes (Zu:/.), within walls; in private. In usu {Lat.), in use. In utrumque paratus {Lat.), prepared for either event. In vacuo {Lat.), in a vacuum; in an empty space. Inver so ordine {Lat.), in an inverted order. In vino veritas {Lat.), there is truth in wine. Ipse dixit {Lat.), he said it himself; a mere dogma. Ipso facto {Lat.), in the fact itself. Ita est {JLat.), it is so, or thus. J Jacta est alea {Lat.), the die is cast. Jamais arriere {Fr.), never behind. Januis clausis {Lat.), with closed doors. Jardin des Plantes {Fr.), the botanical gar¬ dens. Je ne sais quoi {Fr.), I know not what. 'Je suis pret {Fr.), I am ready. Jet d’eau {Fr.), jet of water. Jeu de mots (Fr.), a play of words; a pun. Jeu d’esprit (Fr.), a witticism. Jeu de theatre (Fr.), a stage trick; cheap play. done for effect. Joli (Fr.), pretty. Jubilate Deo {Lat.), be joyful in the Lord. Judicium Dei (Lat.), the judgment of God. BUSINESS ANt) COMMERCE 323 L La beauts sans vertu est une fleur sans par- fum Beauty without virtue is a flower without perfume. L’abito e una seconda natura (Ac.), Habit is second nature. Lahore et honore (Lat.), by labor and honor. Labor ipse voluptas (Lat.), Labor itself is pleasure. Labor omnia vincit {Lat.), Labor conquers all things. Laborum dulce lenimen {Lat.), the sweet so¬ lace of our labors. La critique est aisee, et I’art est difficile {Fr.), Criticism is easy, the doing is hard. Laissez faire {Fr.), let alone; let things take their natural course. La, la {Fr.), so, so; indifferently. Lapsus calami {Lat.), a slip of the pen. Lapsus linguae {Lat.), a slip of the tongue. Lapsus memoriae {Lat.), a. slip of the memory. Lares et penates {Lat.), household gods. . L’argent {Fr.), money. Latet anguis in herba {Lat.), A snake lies hid¬ den in the grass. Laudator temporis acti {Lat.), A praiser of past times. Laudum immensa cupido {Lat.), an inordi¬ nate desire for praise. Laus Deo {Lat.), praise God. L’avenir {Fr.), the future. Le beau monde {Fr.), the fashionable world. Le grand monarque {Fr.), the great monarch, — Louis XIV. Le jeu n’en vaut pas la chandelle {Fr.), The game is not worth the candle. Le monde est le livre des femmes {Fr.), The world is the book of women. Le monde savant {Fr.), the learned world. Le roi et I’etat {Fr.), king and state. Le roi le veut {Fr.), the king wills it. Le savoir-faire {Fr.), ability; skill. Les bras croises {Fr.), with folded arms. Lese-majeste {Fr.), high treason. Les larmes aux yeux {Fr.), tears in one’s eyes. Les murailles ont des oreilles {Fr.), Walls have ears. L’^tat, c’est moi {Fr.), I am the state. L’etoile du nord {Fr.), The star of the north; — the motto of Minnesota. Le tout ensemble {Fr.), all together; the effect of the whole Lettre de cachet {Fr.), a seal letter. Lettre de change {Fr.), a bill of exchange. Lettre de creance {Fr.), a letter of credit. Lettre de marque {Fr.), a letter of reprisal. Lex non scripta {Lat.), the unwritten law. Lex scripta {Lat.), statute law. L’homme propose, et Dieu dispose {Fr.), Man proposes, and God disposes. Libraire {Fr.), a bookseller. L’inconnu {Fr.), the unknown. L’incroyable {Fr.), the incredible. Lingua franca {Lt.), The mixed language of Europeans in the East. Lis pendens {Lat.), a pending suit. Lis sub judice {Lat.), a case yet to be decided. Lite pendente {Lat.), during the trial. Loco citato {Lat.), in the place named. Locum tenens {Lat.), one holding the place. Locus in quo {Lat.), the place in which. Locus sigilli {Lat.), the place for the seal. (L. S.) M Ma chere {Fr.), My dear. Ma foi {Fr.), My faith. Magna est veritas, et praevalebit {Lat.),Trnth is mighty and will prevail. Magnum bonum {Lat.), a great good. Magnum opus {Lat.), a great work. Maison de campagne {Fr.), a country house. Maitre d’hotel {Fr.), a house steward. Malade {Fr.), sick. Mai a propos {Fr.), ill-timed. Mai de dents {Fr.), toothache. Mai de mer {Fr.), seasickness. Mai de tete {Fr.), headache. Malgre nous {Fr.), in spite of us. Mardi gras {Fr.), Shrove Tuesday. Materfamilias {Lat.), mother of a family. Mauvaise honte {Fr.), false modesty. Mauvais godt {Fr.), bad taste. Mauvais sujet {Fr.), a worthless fellow. Mea culpa {Lat.), through my fault. Me judice {Lat.), in my opinion. Memento mori {Lat.), remember death. Memorabilia {Lat.), things worth remembering. Mens Sana in sano corpore {Lat.), a sound mind in a sound body. Menu Terms in Common Usage.— Abricots.Apricots. Agneau ----- Lamb. Alose ------ Shad. Alouettes - - - - Larks. Aloyau.Sirloin of Beef. Amandes - - - - Almonds. Ananas.Pineapples. Anchois.Anchovy. Anguilles - - - . Eels. Artichaut - - - - Artichoke. Bdcasse.Woodcock. B^cassine - - . . Snipe. 324 BUSINESS AND COMMERCE Menu Terms.— Continued Beignets. Fritters. Beurre. Butter. Blanchailles - - - Whitebait. Boeuf. Beef. Bouilli. Boiled Beef. Bouillie. Hasty Pudding. Brochet. Pike. Cabillaud . - - - Cod. Canards. Ducks. Canards Sauvages Wild Ducks. Canetons - - - - Ducklings. Cafd. Coffee. Capres. Capers. Carrelet. Flounder. Caviare. Dried Sturgeon’s Liver. Champignons - - - Mushrooms. Choux. Cabbage. Choux de Bruxelles - Brussels Sprouts. Choux Marins - - - Sea Kale. Citron. Lemon. Compote. Stew of Fruit or Pigeons. Concombre - - - - Cucumber. Confitures - - - - Consommd de tete de Sweets. veau. Mock Turtle Soup. Cotelettes de Mouton, Mutton Cutlets. Cotes de Boeuf - - Ribs of Beef. Courge. Vegetable Marrow, Pumpkin. Cressons. Cresses. Crevettes - - - . Prawns. Diablotins - - - - Chocolate Crackers, etc. Dindon. Turkey. Eglefin. Haddock. Entremets - - - - Side-dishes. Eperlans. Smelts. Epinard. Spinach. Esturgeon - - - - Sturgeon. Etuvde . Stew. Farce. Forced Meat. Farci. Stuffed. Figues . Figs. Fillet de Veau - - Fillet of Veal. Frais. Fresh. Framboises . - - Raspberries. Frit. Fried. From age. Cheese. Gateau. Cake. Gelde. Jelly. Gibelottes - - - - Rabbit Stew Gibier. Game. Glaces . Ices. Goujons - ... - Gudgeons. Gratin Burnt Bread Scrap¬ ings. GrilM. Broiled. Groseilles - . - - Gooseberries. Harengs pec - - - Pickeled or Red Her rings. Harenguets - - - - Sprats. Haricots verts - - - French Beans. Hollandaise verte Green Dutch Sauce. Homard. Lobster. Huitres. Oysters. Jambon. Ham. Jigot de Mouton - - Leg of Mutton. Lait. Milk. Laitances - - - . Fish Roes. Lapin -. Rabbit. Lapin au Kari - - - Curried Rabbit, Legumes ----- Vegetables. Lievre . Hare. Longe. Loin. Maquereau - - - - Mackerel. Marrons. Chestnuts. Matelote. Fish Stew. Merlan ----- Whiting. Monies. Mussels. Mouton. Mutton. Navet. Turnip. Nougat. Almond Cake. Qiufs a rindienne - Curried Eggs. Oie. Goose. Oignons. Onions. Oison. Gosling. Orge. Barley. Pailles de Parmesan, Cheese Straw Pain ------ Bread. Panais. Parsnip. Patd de fois Gras - - Goose Liver Pie. Patesserie - - - - Pastry. Peches . Peaches. Perdreaux - - - - Partridges. Petits Pois - - - - Green Peas. Pluviers - - - - - Plovers. Pofereau. Leek. Pois -. Peas. Poissons. Fish. Pommes. Apples. Pommes de Terre Potatoes. Potage de Leoraut - Potage de Queue de Hare Soup. Boeuf. Ox-tail Soup. Purde de Pois - - - Pea Soup. Ragout. Hash. Raie. Skate. Raifort. Horse-radish. Raitons. Small Skate. Ramier. Wood Pigeon. Rechauffe - . . - Warmed Again. Ris de Veau - - - Veal Sweetbreads. Rissolettes - - - - Roasts. Rissole:. Fritter with Mixed Meat. BUSINESS AND COMMERCE 325 Menu Terms.— Continued Rot, Roti . - - - Roast. Rouelle de Veau Roti, Roast Fillet of Veal. Rouget ----- Red Mullet. Sagou . Sago. Salmi de Gibier - - Hashed Game. Saucisses - - - - Sausages. Saumon ----- Salmon. Selle de Mouton - - Saddle of Mutton. Soupe de ITnde - - Mulligatawny Soup. Soupe Maigre - - - Soup without Meat. Terrine. Potted. The. Tea. Tortue ----- Turtle. Tortue Claire - - - Clear Turtle Soup. Tourtellettes - - - Cheese Cakes. Tourtes. T arts. Truit. Trout. Veau ------ Veal. Venaison - - - - Venison. Volaille. Fowl, Chicken. Mesalliance {Fr.), marriage beneath one. Meum et tuum (Lat.), mine and thine. Mirabile dictu {Lat.), wonderful to tell. Mirabile visu {Lat.) wonderful to see. Mise en scene {Fr.), preparation of the stage for a play. Mittimus {Lat.), we send ; — a writ of commit¬ ment to prison. Modus operandi {Lat.), mode of operation. Mon ami {Fr.), my friend. Mon Cher {Fr.) my dear. More majorum {Lat.), a^ter the manner of our ancestors. More suo {Lat.), in his own way. Multum in parvo {Lat.), much in little. Mutatis mutandis {Lat), the necessary changes having been made. Mutato nomine {Lat.), the name having been changed. N Nee {Fr.), born, used to indicate the maiden name of a married woman. Ne exeat {Lat.), let him not depart. Neglige {Fr.), a morning dress. Nemine contradicente {Lat.), no one offering opposition; nem. con. Nemo me impune lacessit {Lat.), No one in¬ jures me with impunity ; — ^ None daur med¬ dle wi’ me; —the motto of Scotland. Ne plus ultra (Z^z^.),nothing further; the high¬ est perfection. Ne quid nimis {Lat.), not anything too much or too far. Ne tentes, aut perflce {Lat), attempt not or finish thoroughly. Nihil ad rem {Lat.), nothing to the point. Nil desperandum {Lat.), never despair. Nil sine numine (Za^.), Nothing without God; — the motto of Colorado. N’imports {Fr.), it matters not. Noblesse oblige {Fr.) rank imposes obliga¬ tion. Nolens volens {Lat.), whether he will or not. Noli me tangere {Lat.) do not touch me. Nolle prosequi {Lat.), to be unwilling to pro¬ ceed. Nom de guerre {Fr.), a war name ; a pseudo¬ nym. Nom de plume {Fr.), a literary name or pseu¬ donym. Non compos mentis {Lat.), not of sound mind. Non multa, sed multum {Lat.), not many things, but much. Non nobis solum {Lat.), wot for ourselves alone. Non sequitur {Lat), it does not follow. Nota hene {Lat), mark well; note carefully; N. B. Notre Dame {Fr.), Our Lady. N’oubliez pas {Fr.), do not forget. Nous verrons {Fr.), we shall see. Nouvelles (Z>.),news. Nulli secundus {Lat.), second to none. Nunc aut nunquam {Lat), now or never. o Obiit {Lat), he died. Obiter dictum {Lat), something said in pass¬ ing a subject. Odi profanum vulgus {Lat.), I hate the com¬ mon crowd. (Eil de bceuf {Fr.), bull’s-eye ; marguerite. CEuvres {Fr.), works. Omnia ad Dei gloriam {Lat.), all things to the glory of God. Omnia bona bonis {Lat.), To the good all things are good. Omnia vincit amor (Za/.), Love conquers all things. Omnia vincit labor {Lat), Labor conquers all things. On dit {Fr.), they say ; it is said ; rumor says. Ora et labora {Lat.), work and pray. Ora pro nobis {Lat.), pray for us. Ore rotundo {Lat.), with round, fuP voice. 0 temporal 0 mores! (Z^zz*.) O the times! O the manners! Otium cum dignitate {Lat.), ease with dig¬ nity. 326 BUSINESS AND COMMERCE Oui-dire [Fr.), hearsay , rumor. Ouvert (A>.),open. Ouvrage {Fr.), work, Ouvriers (FrA, workmen. P Padrone (//.),master; employer; landlord. Pallida mors {Lat.), pale death. Palmam qui meruit ferat {Lat), Let him bear the palm who deserves it. Palma non sine pulvere {Lat), There is no palm without dust (of the arena) ; no reward without toil. Par accord {Fr.), by ag^reement. Par ci par la {Fr.), here and there. Par excellence {Fr.), by way of eminence. Par exemple {Fr.), by example. Par force {Fr.), by force. Par hasard (Fr.), by chance. Pari passu {Lat), with equal pace ; together. Parlez du loup, et vous verrez sa queue {Fr.), Speak of the wolf and you will see his tail. Parole d’honneur {Fr.), word of honor. Particeps criminis {Lat.), a party to the crime; an accomplice. Partie caree {Fr.), a party of four; two couples. Partout {Fr ), everywhere. Passager {Fr.), a passenger. Passe-partout {Fr.), a pass everywhere; a master-key. Passim {Lat.\, everywhere. Paterfamilias {Lat.), father of a family. Pater noster {Lat.),Owx Father; the Lord’s Prayer. Pater patriae {I.at.), Father of his country. Pax in bello {Lat.), peace in war. Pax vobiscum {Lat.), Peace be with you. Peccavi {Lat.), I have sinned. Pendente lite {Lat), pending the suit. Pensee {Fr.), a thought. Per annum {Lat), by the year. Per aspera ad astra {Lat), through difficul¬ ties to the stars. Per capita {Lot.), by the head. Per centum {Lat.), by the hundred. Per contra {Lat.) contrariwise. Per curiam {Lat.), by the court. Per diem {Lat.), by the day. Perdu {Fr.), lost. Pere de famille {Fr.), father of a family. Per fas et nefas {Lat.), through right or wrong. Per gradus {Lat), step by step. Per Interim {Lat.), in the meantime. Per se (Za/.), considered by itself. Petit {Fr.\, small. Petit coup {Fr.), a small domino or mask. Petitio principii {Lat.), begging the question. Petit-maitre {Fr.) a fop; dandy. Peu a peu {Fr.), little by little. Peu de cbose {Fr.) a trifle. Pezzo {It.), a coin ; a piece. Philippine Terms: Abaci, Manila-hemp. Adelantado, a ruler of high rank. Aguinaldo, a gift. The Filipino leader’s name is derived from this word. Alcalde, or Alcalde mayor, the mayor or pre¬ siding officer of a town. Anito, an idol. Areca, a palm which produces from 200 to 800 nuts in a season. The natives make the narcotic betel from it. Large quanti¬ ties are exported and used in the manu¬ facture of a dentifice. Arroba, a weight of 25 pounds. Asuan, an evil spirit which is to be espe¬ cially avoided at the time of the birth of a child. Even the most enlightened close the windows on such occasions. Bagsacay, an assagai or spear, about a half inch in diameter, in use among the Sulu Islanders. Bahay, a house. Balbal, an evil spirit. Balitao, a popular love dance among the Visayas. Bamberos, a fire company. Banos, baths or hot springs. Barong, a short sword used in close combat by the Sulu Islanders. Barrio, a ward or division of a town, Bejuco, or Bush-rope. It grows in lengths of about 100 feet and has a maximum diam¬ eter of from one to one and a quarter inches. It is of great pliancy and is used as cables for rafts and bridges. In smaller sizes it takes the place of nails and bolts. Beno, a potent native drink. It is of re¬ markable intoxicating properties. Bigaycaya, a doweiy^ settlement upon a bride among the Tagals. Bolo, or Bohie, a cane-knife or machete, used for cutting sugar-cane. Cabe9a de barangay, the officer who collects tribute or taxes from a group of families. Caguang, an animal peculiar to the Philip¬ pines and so much resembling both a monkey and a bat that it has been called the << monkey-faced bat.^^ Calao, a bird belonging to the class of horn- bills. Camote, a sweet-potato. Campilan, a short, two-handed sword used by the Sulu Islanders. BUSINESS AND COMMERCE 327 Philippine Terms.— Continued Carabao, the black water-buffalo, much used as a beast of burden. Carromata, a small two-wheeled spring-cart; the family carriage. Cascoes, the light draught-boats used for the navigation of small streams and capable of carrying enormous loads. Castila, European. Catapusan, funeral festivities lasting nine days, the last of which, the catapusan proper, is devoted to wailing, praying, drinking, and eating. Chacon, a lizard. Chinelas, flat, heelless slippers, usually worn without stockings. Cochero, a driver. Cogon, a tall jungle grass used for thatching. Collas, heavy rains at the beginning of the wet season. Compadre, a relation. Convento, a convent. Copra, dried cocoanut. Cueva, a cave. Dato, a chief among the Moros. Dubu, the carved pillar temple of the Papu¬ ans. Esposa, a wife. Fiesta, a feast day or holy day. Gente del monte, people of the wood; wood genii of Guam. Gobernadorcillo, the chief magistrate of a commune. Gracias, thanks. Iguana, the giant lizard which sometimes attains to a length of six or seven feet. Ingles, the English. Islas Filipinas, Philippine Islands. Jabul, a strip of stuff sewn together at the ends, used to protect the head from the sun’s rays. It is worn by the Sulu women. Junta, a board or commission of governors. Juramentados, one sworn to slavery to his creditor, among the Sulus. His only es¬ cape is death which he courts by entrance upon a fanatic warfare against Christians in comformity with his oath. Kris, a sword, either curved or straight, used for cutting or thrusting by the Sulus. Mestizo-Chino, a half-caste Chinese. Molave, a well-known, hard wood, of a dark brown color, and capable of taking a high polish. It is much used in interiors. It is not affected by sea-worms, ants, or cli¬ mate. Monte, a mountain. Moros, Mohammedan fanatics. Muchacha, a girl servant. Muchacho, a boy servant Narra, a much-prized wood, used in the man¬ ufacture of fine furniture. It varies in color from a light straw to a deep red. Nipa, a palm which takes the place of bam¬ boo. From its sap a native wine is made, and its large leaves are used for thatching. Padre, the priest. Palawan, a species of yam. Peso, a Mexican dollar, a value of fifty cents, Picul, a weight of 140 pounds. Pina, a fabric woven from the fibers of cocoa- nut. Plaza, the square or public place in cities. Polista, an impressed workman. Presidencia, the town-hall. Presidente, one of the chief officers of a town. Puanlada, a red spotted dove. Pueblo, a township under the rule of a chief. Pundita, a priest among the Moros. Quilez, a two-wheeled covered cart or wagon. Salacot, a large, round, basket-like hat. Salamat-po ! Thank you ! (Luzon.) Salangane, edible birds’ nests. Santones, religious fanatics who claim super¬ natural powers of second sight and heal¬ ing diseases. Senora, the title of a married woman. Senorita, the title or mode of address of an unmarried woman. Suelo, a sleeping-room. Taclobo, a huge shell-fish. The shell often attains to a weight of 200 pounds. These shells are often used as baptismal fonts in churches. Tribunal, a court-house. Tus-tus, roughly-made cigars of good quality, from Papua. Piccolo {It.), small. Pied a terre {Fr.), temporary lodging. Pinxit {Lat.), he painted it. Pis aller {Fr.), the last shift. Piu (//.), more. Plebs {Lat.), the common people. Pleno jure {Lat.), with full authority. Poco {It.), a little. Poco a poco {It.), little by little. Poeta nascitur, non fit {Lat.), The poet is born, not made. Point d’appui {Fr.), point of support; prop. Poisson d’avril {Fr.), April fool. Pons asinorum {Lat.), the asses’ bridge. Porte-chaise {Fr.), a sedan chair. Porte-voix {Fr.), a speaking trumpet. Poste-restante {Fr.), to remain until called for,— said of letters. Post mortem {Lat.), after death. Post obitum {Lat.), after death. Pour faire rire {Fr.), to excite laughter. Pour passer le temps {Fr.), to pass the time. 32* BUSINESS AND COMMERCE Pour prendre cong^ to take leave; P. P. C. Preux cEevaller (/>.), a brave knight. Prima donna (/ 4 ), the first lady; chief female singer. Prima facie {Lat.'), on the first view; upon the face of it. Prime (Lai.), in the first place. Pro bono publico (Lat.), for the public good. Pro confesso (Lat.), as if conceded. Pro et con (Lat.), for and against. Pro forma (Lat.), as a matter of form; for form’s sake. Pro bac vice (Lat.), for this turn or occasion. Propaganda (Lat.), for the purpose of extend¬ ing (knowledge). Pro patria (Lat.), for our country. Pro rata (Lat.), in proportion. Pro re nata (Lat.), for a special emergency. Pro tanto (Lat.), for so much; by so much. Protege (Fr.), one protected or patronized by another. Pro’’tempore (Lat.), for the time being; pro tern. Q Quantum (Lat.), the amount or quantity. Quantum libet (Lat.), as much as you please. Quantum sufflcit (Lat.), as much as suffices. Quantum vis (Lat.), as much as you will. Quasi (Lat.), as if; in such a manner. Quelque chose (Fr.), something. Quid nunc ? (Lat.), what now ? Quid pro quo (Lat.), an equivalent; something ' in return. Quien sabe? (Sp.), who knows ? Qui va la ? (Fr.), who goes there ? Qui Vive ? (Fr.), who goes there ? Qui vive (on the), on the alert. Quo animo ? (Lat.), with what intention? to what purpose ? Quod erat demonstrandum (Lat.), which was required to be proved; Q. E. D. Quod erat faciendum (Lat.), which was re¬ quired to be done; Q. E. F. Quod vide (Lat.), which see; q. v. Quomodo ? (Lat.), how ? in what manner ? Quo vadis ? (Lat.), whither goest thou ? R Raison d’etat (Fr.), state reason. Raison d’etre (Fr.) a reason for existing or being. Rara avis (Lat.), a rare bird; a wonder. Rechauffe (Fr.), warmed over; stale. Re9U (Fr.), received. Reductio ad absurdum (Lat.), a reducing to an absurdity; proving the impossibility by showing the absurdity. Regnant populi (Lat.), The people rule; — the motto of Arkansas. Religieuse (Fr.), a nun. Renaissance (Fr.), a revival — as of art or letters. Requiescat in pace (Lat.), Let him rest in peace. Res gestae (Lat.), things accomplished. Res judicata (Lat.), a matter already settled. Respice finem (Lat.), look to the end. Respublica (Lat.), the state. Resume (Fr.), an abstract or summary. Resurgam (Lat.), I shall rise again. Revenons a nos moutons (Fr.), Let us return to our sheep; let us return to our subject. Robe de chambre (Fr.), a dressing gown. Ruat caelum (Lat.), Let the heavens fall. Ruse de guerre (Fr.), trick or stratagem of war. Rus in urbe (Lat.), country in the city. s Sal Atticum (Lat.), Attic salt; wit. Salle (Fr.), hall of a house. Salve ! (Lat.), Hail! — the motto of Idaho. Sanctum sanctorum (Lat.), Holy of holies. Sans ceremonie (Fr.), without ceremony. Sans doute (Fr.), without doubt. Sans pareil (Fr.), unequaled. Sans peine (Fr.), without difficulty. Sans peur et sans reproche (Fr.), without fear and without reproach. Sans souci (Fr.), free from care. Sapere aude (Lat.), dare to be wise. Sartor resartus (Lat.), the tailor mended. Satis verborum (Lat.), enough of words. Sauve qui peut ( 7 ^r.), save himself w’ho can. Savoir-faire (jF>.), ability; skill.. Savoir-vivre (Fr.), good breeding; refinement. Savon (Fr.), soap. Scire facias (Lat.), cause it to be known. Secundum artem (Lat.), according to rule; in an artistic manner. Secundum naturam (Lat.), according to na¬ ture. Semel et simul (Lat.), once and together. Semel pro semper (Lat.), once for all. Semper fidelis (Lat.), always faithful. Semper idem (Lat.), always the same. Semper paratus (Lat.), always ready. Sic semper tyrannis (Lat.), Ever thus to ty¬ rants ;—the motto of Virginia. Sic transit gloria mundi (Lat.), So passes away earthly glory. Similia similibus curantur (Lat.), Like cures like. Si monumentum requiris, circumspice (Lat.), If you search his monument, look about you; — Sir Christopher Wren’s epitaph in St. Paul's Cathedral, London. BUSINESS AND COMMERCE 329 Sine cura (Lat.), with care. Sine die (Lat.), without appointing a day for a next meeting. Sine qua non {Lat.'), without which not; an in¬ dispensable condition. Si quseris peninsulam amcenam, circumspice {Lat.), If thou seekest a beautiful peninsula, look about you ;— the motto of Michigan. Soubrette {Fr.), an intriguing woman. Soupgon {Fr.), suspicion. Sponte sua {Lat.), of his own accord. Stet {Lat.), let it stand. Sturm und Drang {Ger.), storm and stress. Suaviter in modo, fortiter in re {Lat.), gentle in manner, resolute in action. Sub judice {Lat.), under consideration. Sub rosa {Lat.), under the rose, secretly. Sui generis {Lat.), of his own kind. Summum bonum {Lat.), the highest good. T Tableau vivant {Fr.), living pictures. Taille {Fr.), form; stature; shape. Tant mieux {Fr.), so much the better. Tant pis {Fr ), so much the worse. Tempusfugit {Lat.), time flies. Terracotta (A".),baked earth. Terra firma {Lat.), solid earth. Terra incognita {Lat.), an unknown land. To Kokbr (To kalon) {Gr.), the beautiful; the chief good. To TzpSTTOT (To prepon) {Gr.), the proper; the fitting; the becoming. Totidem verbis {Lat.), in so many words. Toujours pret {Fr.), always ready. Tour de force {Fr.), a feat of strength. Tout-a-fait {Fr.), entirely; wholly. Tout-a-l’beure (i^r.), instantly. Tout au contraire {Fr.), quite the contrary. Tout a vous {Fr.), wholly yours. Tout de meme {Fr.), quite the same. Tout de suite {Fr.), immediately. Tout ensemble {Fr.), the whole taken together; the effect of the whole. Tristesse {Fr.), sorrow. Trottoir {Fr.), sidewalk. u Ubique {Lat.), everywhere. Ubi supra {Lat.), where mentioned above. Ultima Tbule {Lat.), the farthest boundary. Ultimatum {Lat.), the last condition. Ultra vires {Lat.), beyond the power. Una voce {Lat.), with one voice; unanimously. Uno animo {Lat.), with one mind. Ut infra {Lat.), as below. Ut supra {Lat.), as above. V Vade in pace {Lat.), go in peace. Vade mecum {Lat.), go with me; a constant companion. VsB victis {Lat.), woe to the conquered. Vale {Lat.), farewell. Valet de cbambre {Fr.), an attendant. Vaurien {Fr.), a good-for-nothing. Veni, vidi, vici {Lat), I came, I saw, I con¬ quered. Verbatim et literatim {L^ow Lat.), Word for word and letter for letter. Verbum sat sapienti (Z • ■ • ' • s • /• > % , >! V.. .. 'a- ■» ! i •I ■/• .1 I •,' > • ' *;• X • > . « ■Hi 1^' '^S ■^Hj^K^pJK\i^> 1 . ^S ’9& }S:^ 'fiSR ■nuf' -i^SPt- Jlwv ' «'