An international postal card can be bought.

Postal cards and letters may be redirected and forwarded without extra charge, where the address of the receiver has been changed. Packages require a renewal of payment in such cases.

REGISTERING LETTERS

A letter or a parcel may be registered to further insure its safe delivery.

When a letter or parcel is registered, it must have the sender's name and address written across the left-hand end of the envelope and on the reverse side.

In addition to the stamps required ordinarily, eight cents in stamps or in a regularly prepared stamp, is the registration fee.

The clerk, receiving a registered parcel, gives the sender a receipt for the same. After the letter has reached its destination, the sender gets a second receipt, through the post office, signed with the receiver's name.

The receiver of a registered parcel signs two receipts, one for the post office and the other for the sender.

SPECIAL DELIVERY

The purpose of what is known, in connection with the post office, as the "Special Delivery System", is to insure the delivery of any letter or package to the person, to whom it is addressed, as soon as it reaches his post office.

In addition to the regular post charge, a fee of 10 cents is added for special delivery. This is in the form of a special stamp, though when this cannot be had, the same amount in ordinary stamps may be attached.

In the case noted, the sender should write in line with the stamps, "special delivery."

Special delivery messages are delivered, not by ordinary carriers, but by special delivery messengers.

The special delivery letter is used when immediate knowledge is necessary. It saves a long telegram.

MONEY ORDERS

Money, in limited sums, may be sent through the post office. One advantage of sending money in this way is that it practically insures the sender against loss.

All post offices are not money order offices.

A post office money order may only be sent to those places where there are such offices.

At all post offices, authorized to send money orders, proper blanks can be had on which the sender can write his order.

Any sum may be sent by postal order, from one cent to one hundred dollars.

The fee is from three to thirty cents.

Read the blank carefully; it is simple, but be sure you understand it before filling out the order.

If in doubt, ask the clerk.

Having filled out the order, hand it to the clerk with the sum required, and the additional fee.

The clerk then prepares and hands out an order for the amount, on the postmaster of the town to which you are sending your letter, and this you enclose to your correspondent.

CASHING POST OFFICE ORDERS

The money order never contains the name of the sender; this the postmaster of the office from which it is sent supplies in a separate communication to the postmaster who is to pay.

No money passes from one office to the other.

A post office order is like a draft drawn by one postmaster on another. The one credits the sum, the other debits it.

The holder of an order will not get his money unless he is known to the paying postmaster or is identified.

Before paying an order the postmaster requires the holder to receipt it.

A post office money order, like a check or draft, may be transferred to another for collection.

Banks receive transferred money orders as if they were cash deposits.

The party to whom orders are transferred must go through the same forms at the office, where payment is made, as if he was the original payee.

ADVICE

It is not necessary to register letters containing checks. Never write "personal" on a business letter.

Always enclose a stamp for reply when writing to a stranger.

See that the addresses on your letters are distinctly legible.



CHAPTER XIV

TELEGRAMS—THE TELEPHONE



To send a telegram, you or your messenger must take what you have written to the nearest telegraph office.

You may write a telegram on any kind of paper, provided always that the writing is plain.

All telegraph offices are provided with regular blank forms, which may be had without cost, and it is better to use these when they are available.

The blank is properly ruled, with lines for the date, for the address of the one to whom it is to be sent, and for the message.

CHARGES

The telegraph company charges a fixed sum for a message of, say, ten words. These words do not include the name and address of the sender.

The amount of the charge is always dependent on the distance between the office from which the message is sent and the one at which it is received.

Every word over ten, in the message, pays an extra fee, dependent again on the distance.

Getting just what you mean into ten words may seem difficult when you have a lot to say, but it is surprising how you can boil the message down when each additional word costs five or more cents.

It may pay to practice this.

If it is actually necessary to make your meaning clear by the addition of more words, do not hesitate at the cost.

If you are known at the telegraph office, you can send a message to be collected from the receiver.

Never permit the receiver to pay for a message that is exclusively on your own business.

Always make and keep a copy of every important telegram you send away. Do not neglect this.

If you have neglected to keep a copy of a telegram, or having made one have lost it, you may get a copy from the telegraph office, provided the application be made within six months of the sending of the message.

Telegrams are delivered by the company's messengers.

You must give receipt to the messenger on the delivery of a telegram.

Where the receiver lives a long distance from the telegraph office, it is customary to pay the messenger an additional fee, depending on the distance.

The charges for telegrams to be sent at night and delivered in the morning, are much lower than for day messages.

For an additional charge, less than the original, messages may be repeated back to insure their accuracy.

Read over to the official, or still better, have him read your message over in your presence, that you may be sure he understands it as written.

You cannot hold others responsible for your own mistakes.

TELEGRAPHING MONEY

You can telegraph money with as much safety as you can send it through a bank.

In handling money in this way, the telegraph company does not act as a banker but as a carrier.

Telegraph money orders are a great convenience, when one wants to send cash to a distant point in a hurry.

Country telegraph offices do not, as a rule, transmit money; that function is left to the offices in the larger centers.

THE METHOD

One wishing to "wire money" will find at the telegraph office suitable blanks; they are furnished gratis.

On lines provided for the purpose and properly indicated, as in a postal order form, write the name and address of the person to receive the money, with the amount.

This paper, properly signed, is handed to the clerk with the money to be sent and the fee for transmission.

The fee is double that charged for an ordinary message of the same length.

If, for any reason, the person to whom the money is sent cannot be found within forty-eight hours, the money is returned to the sender, but the fees are retained, as the company is not to blame for failure.

The receiver of a money order, if unknown, must identify himself as he would at a bank, and he must receipt for the money.

If the person to receive the money is an entire stranger in the place to which the money is sent, the sender knows it, and he provides for the situation by signing, on the reverse of the application, an order to the distant operator to pay the money to the person named within, without further identification.

When a telegraph operator receives a money order, he at once seeks out the person to whom it is sent, and pays the money in accordance with his instructions as to identification.

THE TELEPHONE

The telephone, local and long distance, is fast superceding the telegraph as a medium for speedy business communications.

Its use is not confined to large cities as at first.

Nearly every village is now in communication with the outer world through the telephone.

The world has just awakened to the needs of its food producer, the farmer.

In Norway, which is not a rich country, the telephone has been introduced on the farms. The rates are low and the benefits are inestimable.

On our large farms, in the West, telephones have been in use for some time as an essential part of the machinery.

Now, there is a move on foot to make them available for every farmer in the more settled regions.

While business can be conducted over the telephone, as if the speakers stood face to face, yet such transactions not being recorded, will not stand in law, if one of the parties should dispute the other's word.



CHAPTER XV

BUSINESS BY EXPRESS



There are two kinds of expresses, viz.: local and general. The names describe the provinces of each, though a general express may do a local business.

All express companies are common carriers.

The carrying business done by our express companies is enormous. They have their own special cars attached to passenger and fast freight trains, and their goods are given special departments in water transportation.

If living between two towns, it is always better to have your letters and express business done through one office.

INSTRUCTIONS

When ordering material by express, make sure that you give the address, to which you wish it sent, in such a way that a mistake on the part of the forwarder will be out of the question.

If you send away goods by express, make sure that they are securely packed, and be equally sure that the address is clearly written and in a large hand. It would be better if the address could be painted on with a brush.

If you should send perishable stuff, like meat, flowers, glass, or fruit, be sure to label the package "perishable" or "Handle with care, glass."

On long distance transportation prepayment is required; on short distances it is optional.

It is always better to get from the express agent a receipt for the matter taken in charge.

Take care to put your own address on the lower left-hand corner of the package to be sent.

If the person to whom the parcel is sent cannot be found, the address will enable the express company to notify the sender at once of the fact.

When sending any goods by express, it is always prudent to notify the person for whom they are intended of the fact by mail, and also to state the company by which the matter was sent and the date of shipment.

THE COMPANY'S DUTY

The express company must always require, on delivering goods, a receipt from the receiver.

If the goods should be received by a second person, on behalf of the consignee, he must sign the consignee's name, and under that his own.

If a package appears to be damaged in transmission, the express company must permit the receiver to examine it before signing. He may refuse to sign or to accept in any way, if the goods are injured, or not as he ordered.

Express companies are responsible for all damages sustained by goods while in their charge.

COLLECTIONS BY EXPRESS

All the large express companies have the machinery for collecting accounts and notes whenever they have branch offices.

Such companies are reliable collectors. Their services are prompt and their charges reasonable.

Where an express company fails to collect, notice is promptly given with the reasons for failure.

When you wish an express company to collect, it will be necessary for you to make out a statement of the account. This is placed in a special envelope, provided by the company. It is properly indorsed and handed to the company's representative.

The company charges a small fee for collection, whether it succeeds or not. In any case the fee is not much above a fourth of one per cent, unless there should be unusual trouble.

C. O. D. BY EXPRESS

As you know, C.O.D. means "cash on delivery".

Cash on delivery orders constitute no small part of every express company's business.

When goods are forwarded in this way, the sender furnishes with the goods an itemized bill duly receipted. The express company's charges should be included in the bill.

The express agent is sure to collect the bill before he lets the goods leave his keeping.

MONEY BY EXPRESS

Should you desire to send money by express, it will be well to go to the company's office before you pack it up.

Express companies have special receptacles or envelopes in which to store coin or bills. There is no charge for these.

The sender must himself seal the packages containing the money, and write on them the address of the consignee, also the amount enclosed.

Having received the packages, the express agent ties them up, affixes his official seal, which is so arranged that the package cannot be opened or tampered with, without breaking. This done, he gives the sender a receipt. This should be cared for as a vital part of the record.

The charges for sending money by express may or may not be paid in advance. They vary with the amount to be carried and the distance.

Packages of money are receipted for in the usual way. They are delivered only to the legal consignee, unless a second person should appear with an order, amounting to a power of attorney, and which the company cannot reject.

MONEY ORDERS

The foregoing by no means limits the express company's usefulness or field of opportunities.

Express companies issue money orders much as does the Post Office Department.

As with the post office, the fees for orders vary, but no order is issued for more than fifty dollars.

If you want to send such an order, the express company will furnish the proper blank for you to fill out.

On this form must be written out very plainly the name and address of the person to whom the order is to be sent, with the amount, in words and in figures.

On receiving the money the express agent gives to his customer two papers; one is the company's receipt for the money, the other is the order itself.

The order instructs the agent at the point to which it is to be sent to pay the sum named to the person named.

To complete the order the sender should sign his name in a place indicated for the purpose on the back of the paper.

This done, the order can be sent to the person for whom it is intended, in an ordinary envelope.

The receiver of an express money order can have it cashed at the express office in his town, or sign it and place it in his own bank as if it were cash.



CHAPTER XVI

ABOUT RAILROADS



Not everything about railroads, that would be a tremendous undertaking, but just enough to show what everyone should know about them as carriers of goods.

The express companies have practically a monopoly of the transportation of the smaller packages of goods requiring quick transit and immediate delivery, but the longer, heavier, and slower freight are in the hands of the railroads, and where it can be done, and time is not a first factor, the steamboat takes the place of the train.

BILLS OF LADING

As most of the goods in changing hands are carried by steamboat or railroad, the method of shipment should be understood by everyone who may be called on to use one or the other means of transportation.

The person shipping goods in this way is the "consignor."

The person to whom the goods are shipped is the "consignee".

The goods shipped are described in a paper called a "bill of lading."

A bill of lading is a written contract, or statement of the goods shipped, their condition, and the time of shipment.

Bills of lading and receipt blanks are furnished at the offices of the transportation companies.

Two copies of the bill of lading should be made out. One of these is signed by the consignor and the other by the transportation agent.

The copy signed by the consignor is kept by the agent, and the copy signed by the agent is retained by the consignor, as a voucher for the goods shipped.

This receipt should be mailed to the consignee.

When the consignee gets this bill of lading, it is a voucher to the freight agent, where the goods are to be delivered, as to the ownership.

It is usual for the agent at the point of shipment to send a copy of the bill of lading to the agent where the goods are received. In this way he can compare the consignment with the consignee's bill.

EXPENSE BILLS

It is not usual to pay freight bills at the point of shipment, that being left till the goods reach their destination.

The agent at the place of delivery makes out an "expense bill," which is an itemized statement of the freight charges, and must be paid by the consignee before delivery.

This done, the consignee must sign a receipt for the goods delivered, and the affair is closed.

A BILL AND A DRAFT

Before wholesale houses or manufacturers ship goods, they are either paid for or they have a business understanding with the consignee as to when and how the payment is to be made.

There are occasions, however, when no such arrangement has been made, and a man not well known to the merchant orders goods shipped by freight.

In a case like this, the merchant may ascertain through a commercial agency—the agencies make it their business to keep posted in such matters—the standing of the man giving the order.

Trade has its risks and the merchant, even where the information is not quite assuring, may decide to fill the order and ship it.

As with express companies, goods may be sent as freight, C. O. D.

This is done by means of a bill of lading, to which is attached a draft. The shipper bills the goods to himself at the point to which they were ordered.

To the bill of lading he attaches a draft for the sum involved, but this, instead of being forwarded to the consignee by mail, is sent to him through a bank for collection.

Now before the consignee can get the bill of lading, which authorizes him to receive the goods, he must pay the draft.

The bill, which is in the shipper's name, is then endorsed over to the payer of the draft.

Country merchants and sometimes farmers send produce by freight to be sold on commission in the city.

AN INVOICE

Delhi, N. Y., Sept. 9, 1910. Invoice of Merchandise shipped by Harry T. Jackson and consigned to Brown, Smith & Co., Newburg, N. Y. to be sold on commission. 120 bbls. Potatoes 70 " green apples 40 Crates tomatoes.

Mark plainly all goods shipped.



CHAPTER XVII

TAXES



Generally speaking, tax bills are paid with reluctance.

This is no doubt due to the fact that with every other form of payment one has something tangible to show for the expenditure.

If every good citizen could be brought to see that his private interests are closely linked with public affairs, he would take more interest in the local politics of his town and county, and so have a voice in the expenditure of taxes by selecting the best men to do the work for him.

Taxes are forced contributions levied on citizens to provide money for public expenses, such as law and order, schools, charities and public institutions.

All tax laws are made by the men who pay the taxes.

You say "No" to this.

"The tax laws are made by the legislators up at the state capital."

Very true; but who nominates and elects the legislators? Did you not put them into office?

"No, the bosses did that," you reply.

True again, but good men are in the majority and if they did their duty to their country and themselves, there would be no bosses and taxes would be honestly spent.

KINDS OF TAXES

Tax laws are enacted by Congress, and by the legislatures of our many states. Taxes cannot be collected without this authority.

State taxes are collected for the state use only.

United States taxes are expended for the benefit of all the people of all the states.

Taxes may be further divided into direct and indirect.

Direct taxes are, at present, only employed by the states. They are levied on realty and personal property, and are paid by the particular person named in the tax bill presented by the authorized collector.

The amount of these taxes vary each year, depending on the public requirements.

They are based on assessments made by officers appointed for the purpose and generally known as assessors.

CUSTOMS DUTY

Though there is no demand made on each individual to pay the indirect taxes required by the Government, yet indirectly every person who spends little or much money is paying them.

The Government's chief means of raising the great sums of money needed yearly to carry on its machinery is by customs duties and internal revenue collections.

The customs revenue is obtained from a tax levied on certain articles imported from foreign countries.

This customs tax is called a tariff.

The question as to the goods that shall be subject to a tariff and the amount to be levied on the same, is one that has long perplexed statesmen and been a leading party issue.

The merchant, to whom the goods are assigned from a foreign port, must pay the duty levied on them by a Government Appraiser before he can take them away.

Private parties, landing from abroad at any of our ports of entry, are required, before getting their baggage, to write out a declaration of the things contained in their trunks. But this declaration does not prevent the customs inspectors from making a careful personal examination. All things found dutiable, whether declared or not, are set apart and held until the assessment or duty is paid.

The evasion of a customs duty is called "smuggling" and is punished by the confiscation of the goods, and penalties in the way of fine and imprisonment.

There are people who would consider it a sin to cheat their butcher, but see no wrong in cheating the Government.

To the merchant who pays tariff duties the amount involved is a direct tax.

When the merchant sells his goods to the retailer or consumer, he adds the tariff to his freight, insurance, interest, etc., as direct purchase cost. This is strict business, but the consumer pays all the bills with the profit added.

INTERNAL REVENUE

The second great source of Government revenue is derived from the internal revenue tax, or excise duties.

Manufacturers of alcohol, whether as wine, whiskey, or beer, and the producers of tobacco, in its manufactured forms, have to pay an excise tax in proportion to the amount and character of their products.

As with the customs tax, the excise tax is added by the manufacturer to the cost of production, so that at last it is the consumer who pays it.

STAMPS

While the manufacturers of alcohol pay the excise tax in bulk, that is on the number of gallons produced, the manufacturers of cigars and tobacco have to attach to each separate package a distinct internal revenue stamp.

These stamps are purchased from the internal revenue collectors, appointed by the Government to certain districts. The stamps show at a glance that the proper tax has been paid, just as the postage stamp affixed to a letter proves that the price for carrying it and delivering it has been paid.

As it is a penal offence to use a postage stamp a second time, so it is a punishable offence to attempt the use of a cancelled or torn internal revenue stamp.

If demanded, the Government will give a receipt for the sum received from any one for considerable sales of postal or revenue stamps.

STATE TAXES

State taxes, as has been stated, are levied on real and personal property. Some states have in addition a poll tax. This is levied on the individual without any regard to his property, and a receipt for it may be a requirement before a citizen is permitted to vote.

Of course the real estate and personal property taxes are not the same in all the states, for each state must raise every year the sum necessary to meet its own special requirements.

The intention of all tax laws is to have every citizen's contribution bear the same proportion to the whole amount to be raised that his possessions bear to the aggregate property of all the owners in the commonwealth.

EXEMPT FROM TAXES

All our state laws exempt from taxation certain kinds of property.

The state cannot tax the property held by itself for the common use.

The buildings and related properties of religious bodies and societies are not taxable.

Such educational institutions as colleges, seminaries, and private charities are not taxed.

Cemeteries and other places where the dead are disposed of are not taxed.

County buildings, city parks, public schools, penal institutions, fair grounds for public use and similar property is never taxed.

INSUFFICIENT TAXES

There have been times in the life of the Government, and in the building up of the states, when the funds necessary for maintenance from taxes, heavy though these have been at times, have not been sufficient to meet the essential expenditures.

This was particularly the case with our Government during the trying days of our Civil War.

States entering on great public works, for the benefit of the commonwealth, frequently cannot raise the necessary money by the usual forms of taxation.

In these cases loans have to be made, that is the Government and the state go out and borrow from those who have it to spare, the necessary money.

The Government, the state, and it may be the city or county, gives to the party providing the money what is known as bond or bonds, each of a fixed amount and bearing a fixed rate of interest, payable as a rule semi-annually.

PERSONAL PROPERTY

There is no form of property so easy to assess for the purpose of taxation as real estate, that is the land and the buildings, for the last selling value of this property is a matter of public record, and then the assessors, who should be men of honesty and good judgment, are generally posted as to the value of the property under consideration.

When, however, it comes to the taxation of personal property, which means any kind of property that can be detached and carried about, it is a different matter.

Just as many people, otherwise regarded as honest, do not think it a great wrong to get the better of the Custom House, so many reputable people are inclined to revolt against the tax on personal property and to conceal their actual possessions from the assessor, nor is this peculiarity confined to the poor.

Any man may be legally compelled to swear to the accuracy of his statement, and if it is found that he has knowingly sworn to a false statement, he may be brought to task for perjury.

What is known as "personal property" varies in many of the states.

Personal property generally includes, merchandise in possession; all fixtures, all furniture in home, offices, and factories; all live stock, all money on hand and in banks; other men's notes, not transferred; all stocks and bonds and other forms of security.

TOWN TAXES

Townships or counties, if properly authorized by charter or the votes of the people, may levy special taxes for special purposes within the limits of their own jurisdictions, or they may in the same way sell bonds to carry out some work that has been decided on for the common weal.

Two or more towns, or counties, may join in the same way to carry out a project of benefit to both, provided that the burden of the undertaking be equitably assessed.

PAYMENTS

All tax bills are due and collectable on presentation, but this is never enforced.

A time is, however, fixed beyond which payment cannot be deferred.

A sufficient amount of any property may be sold at auction to satisfy a tax bill.

Of old, and still in some places, the road taxes were paid in cash, but more frequently by work on the roads, either by the individual man, or in connection with his team, each day's work of one or both being fixed at a regular rate.

TAXING CORPORATIONS

The state does not tax the individual members of a corporation for property held in common. The same result is secured better by taxing the corporation as a body. This applies to banks, railroads, and incorporated manufacturing establishments.

Savings banks are taxed lightly. Every depositor is liable for a personal property tax proportioned to the amount of his credit.

To make collection easy the savings bank always pays the amount of this tax in bulk, and then charges it to the expense account of the establishment, so that indirectly the depositors pay after all, as their dividends are reduced by just the amount of the tax.

TAXES IN GENERAL

When a man owns property in different towns, counties, or states, he is regarded as so many individuals, and must pay each as the local demands require. No matter where a man's personal property is placed, the rule is to tax him for the whole at the place of his usual residence.

The landlord and the merchant each pays a direct tax to the collector, but it would be a business error to think that in so doing either or both is carrying more than his share of the total taxation.

The landlord keeps in mind the added expense when he comes to adjust leases with his tenants. The merchant, who pays taxes on his stock and so adds to his expense account, should not be blamed if he keeps this in mind when he fixes the selling prices of his goods.

THE RETURNS

Taxes duly paid, honestly collected, and properly expended should never be regarded as a burden.

From no equal expenditure of money do the people get so much good.

The public schools, the public highways, the protection of life and property, public hospitals, public libraries, residences for the old, the blind, the orphaned and the insane, as well as secure places for the lawless, are built and maintained by the taxpayer.

As a rule all these things are done honestly and well, notwithstanding the outcry to the contrary.

If there be dishonesty in places, it is the fault quite as much of the voter who selected him as of the official culprit himself.

We must take all the responsibility of our agents, whether they be public or private.

Every good citizen should feel that his public duty is an important private business.



CHAPTER XVIII

CONTRACTS, LEASES, AND GUARANTEES



The law books define a contract to be "An agreement between two or more persons to do or not to do a certain stated thing or things, for a consideration."

The consideration is a vital part of every contract.

There can be no binding contract without a consideration.

The other requisites of a contract are—

1. It must be possible of accomplishment. 2. It must be in accordance with law. 3. Its performance must not injure the public. 4. The parties to a contract must be competent to do the things to which they pledge themselves. 5. A drunken or an insane man cannot make a contract. 6. All parties to a contract must be agreed.

THE CONSIDERATION

No contract can be held as binding where the consideration is not named.

A promise, verbal or in writing, to do something for a certain party, cannot be enforced.

A promise to do the same thing for a stipulation named is a contract and may be enforced.

A gift is not a form of contract. Once made it cannot be legally taken back.

WRITTEN AND VERBAL CONTRACTS

There are certain forms of contract which cannot be legally enforced, unless they are in writing.

1. All contracts for the sale of real estate. 2. Contracts that are not to be performed for a year or more. 3. All contracts, to answer for the debt and obligations of another, must be in writing.

If the contracting parties put but a part of their agreement in writing the law will recognize only the written part. The whole must be in writing, or the agreement will not hold.

Verbal contracts are not safe.

Although the law does not require even contract to be in writing, yet, as it never declares that a contract must be verbal, it is the part of prudence, wherever possible, to put every contract in writing.

Owing to defects of memory even honest men may, and frequently do, disagree as to the terms of a verbal contract.

Because the party with whom the contract is made is a close friend, one is apt to depend on a verbal agreement, but the closer the friend or relative, the more reason there is for an exact written contract, if we would keep the friend.

FORMS OF CONTRACT

The law is never specific as to the form of contract that may be used.

It is not necessary to draw up the contract with the formal accuracy of a real estate deed.

Any one with good sense and a fair common school education can draw up a contract that will hold.

Know what is required, then state the facts simply.

Contracts need not be sworn to or even witnessed.

KINDS OF CONTRACT

Every note, mortgage and other form of obligation is a specific contract.

A lease is a form of contract between two people, known as landlord and tenant, for the use of real estate for a period and at a rental specified in the document.

A verbal lease may be made for a short period, but if for a year or more, it must be in writing.

A lease should state when, where and to whom the rent is to be paid.

Each party to a lease, or other form contract should have a copy.

If the premises rented should become unusable by fire or any action of the elements the tenant is still liable for rent, unless there is a special clause in the lease providing for such a contingency.

A tenant cannot, without the written consent of the landlord, use the rented premises for any other purpose than that stated in the lease.

AS TO REPAIRS

In some states the law compels the landlord to keep the premises in habitable repair, but this does not seem to be the rule. It should be decided, where there is doubt, before signing the lease.

Where it is agreed that the landlord shall keep the premises in repair, and, after due notice of the fact, he fails to do so, the tenant may himself make the repairs and deduct the amount from the rent.

SUBLETTING

If there is no contract to the contrary, the tenant may sublet the whole or any part of the premises, but this does not release him from liability for rent.

If the tenant fails to leave the property when his lease has expired, the owner may make his demand through what is known as a "notice to quit," which must be served on the tenant in person.

WHAT IS A GUARANTY?

A guaranty is sometimes required to insure the payment of rent.

Plainly, a guaranty is an agreement to assume, under certain conditions, the liabilities of another.

If a man makes a contract, a lease, or a note, and his personal resources are not deemed sufficient to secure his performance of the things agreed to, the other may require that some one, in whom he has more faith, shall give him a guaranty, or personal security in writing.

The following might be used as the form for a guaranty for a lease, contract, note or other obligation of contract:

"For value received, I hereby guarantee the payment of the within lease (bond or contract). George L. Roberts." Short Hills, N. J. October 1, 1910.

A BILL OF SALE

This is a written agreement by which one person transfers to another his interest in certain personal property.

The law lays down no rule as to the form.

A bill of sale usually passes where the property paid for is not immediately removed from the possession of the seller.

This form would answer in any state:

"Bridgeport, Conn., Aug. 2, 1910. "I have this day sold to Calvin E. Platt, of New Haven, in this state, my team of bay horses, with their harness, one family carriage, and a two-seated cutter. "Thomas P. Fletcher."

Be sure, where the bill of sale includes many articles, to name every one of them in the bill.

If paid for, whether by cash or a note, be sure to get a receipt for the same.

OBLIGATIONS

A bond is a form of obligation.

Every enforcible bond must be in writing and under seal.

The maker of a bond by the act acknowledges a liability in the form of a debt or a duty.

The maker of a bond is the "obligor."

The party to whom it is made is the "obligee."

The bond names the liability or indebtedness; then follows the condition wherein it is stated the particular thing that the obligor is to do, or not to do.

The penalty for the non-compliance with a bond is twice the amount of the money involved.

It is often required that the bond shall be further guaranteed by one or more sureties. These sureties may be required to certify that they are worth a certain sum, free and clear of all indebtedness.

Persons holding positions of financial trust, whether public or private, may be, and most of them are, required to furnish bonds for the faithful performance of their duties.

In the larger cities there are casualty and liability companies, which, for a fixed or annual consideration, act as sponsors on official and other forms of bond.

Where there are no such companies, as those just named, then private citizens of known responsibility must be secured to go on the bond.

In every case the amount of the bond or security is measured by the responsibilities of the man from whom it is required.



CHAPTER XIX

LIFE INSURANCE



Life insurance may be defined to be "A contract for the future payment of a certain sum of money to a person specified in the body of the policy, on conditions dependent on the length of some particular person's life."

There are two parties to this contract—the insured and the insurer.

The purpose of the insurer, if he take out the policy in his own name, is to provide in a measure for the care of his family, or other dependents, in the event of his death.

After a long experience with the death rates in all lands that keep mortuary statistics, the actuaries of insurance companies can now estimate with surprising accuracy the probable length of life before any man of any age.

The methods of insurance companies mean to be scientific, but be that as it may, they are certainly interesting.

HOW IT IS DONE

Let us take a young man of thirty, married, with one child, in good health, and in receipt of a fair salary, but with no property to leave his wife and little one in the event of his death.

To secure his dear ones, he decides to insure his life for, let us say, $3,000.

He fills out the blank, in which his age and all the other required information is given; then the insurance company's doctor examines him and he is accepted as what is called "a good risk."

Now, from its actuary tables, the company knows, with reasonable accuracy, the number of years this young man should live, barring accidents.

Already they have their tables of calculations for such cases. They know what expense will be required in the way of rent, clerks, advertising, etc., to care for this case till the prospective, the inevitable end is reached.

On these calculations the immediate and all subsequent premiums or payments are based.

The insurance company invests and reinvests the premiums, and the total of these, it is estimated, will meet the expenses and the amount of the policy at the time of its calculated expiration.

AS AN INVESTMENT

If the young man in question had the money, he would find it to his advantage to buy a paid up policy, that is one on which no further premiums would be required.

But, having the money for a paid up policy, could not the young man, without any expense for clerk hire or rent, invest it, and reinvest it with the interest, as long as he lived, and thus make by insuring himself?

There can be no question as to that, provided always that the young man lived out the calculated time, invested his insurance money at once, and kept on investing it in "safe things" as long as he lived. But how many young men are there who could or would take this course?

It is much easier to save from our earnings than it is to invest those earnings wisely.

FORMS OF LIFE INSURANCE

The straight life policy, payable to the heirs at death, is the form in general use, but there are others.

There is yet another form, known as the "endowment," which in itself combines the usual life insurance with some of the privileges of a savings bank.

The endowment policy, while payable if death should occur before a fixed time, specifies the date when it shall be payable to the insured himself, if he should live till that time.

In this case the family is secured, in the event of death, and the insured has a guarantee for himself when he reaches life's unproductive years.

The premiums on an endowment policy are necessarily greater than those on a regular life, and the premiums increase with the shortness of the time.

MUTUAL INSURANCE SOCIETIES

Seeing the vast sums accumulated by what are known as "the old line companies," despite their high salaries and great expenses, working men throughout the world, but more particularly in the United States, have banded together and formed mutual insurance companies.

These companies, there are many of them, are known as societies, and their local branches are called "lodges," "councils" or a similar name.

Properly conducted, these mutual societies should be able to furnish insurance at about actual cost, for the expenses of management and collections are small.

It can be said that some of them have been and are being well managed, but others, like their predecessors, the old line companies, have unfortunately been conducted for the enrichment of their promoters.

The mutual insurance companies, like their more pretentious prototypes, are now placed under the supervision of inspectors in nearly all the states.

AMOUNTS OF POLICIES

In the society companies, there is a limit to the amount, usually $3,000, for which one can be insured, but the regular companies have no such limitation.

In the mutual insurance companies, the insured cannot leave his insurance to his creditors, or to any one not within a certain degree of kinship.

In the regular companies a man may insure for any amount he thinks he can carry, and he can insure in the same way in any number of companies, and he can leave the money to any one he may select, or for any purpose he may choose.

Sometimes the policy is made payable to unnamed executors. These may be named in a will made after he has taken out his policy.

POLICIES AS SECURITY

Sometimes a man, without real estate or other personal assets, desires to raise a loan on his life insurance, which, it should be said, is a form of personal property. In this case he may assign his life policy, or his endowment policy, as security for the loan.

Again, if he is not insured and has no shadow of an asset, he may have his life insured for the benefit of another, in consideration for a loan.

LAPSES

When there is a failure to meet premiums, the policy is said to "lapse" or default.

Even in this case the insured has an equity.

Every policy, depending on the amount paid, has what is known as a "surrender value," and by proper process this may be collected from the company.

In some states, if the insured fails to meet his premiums, the company is compelled to pay on the policy at his death a sum equivalent to that which he paid before default.

Some insurance policies have a clause stating that the contract will be void in the event of the suicide of the holder. The highest courts have set this clause aside. The ruling is that a suicide is an insane man, and that his heirs should not be made to suffer for his misfortune.

PROPRIETARY AND MUTUAL COMPANIES

The larger insurance companies may be either proprietary or mutual, some are a combination of both.

The proprietary companies are corporations organized by a number of men to conduct life insurance as a business enterprise.

Such a company must be regularly chartered, and is under the supervision of the state department of insurance.

Mutual companies, as the name implies, are organized and are meant to be managed for the benefit of the policy holders, who are also regarded as stock holders, with the right to vote in the election of officers and other company affairs.

Aiming to create a strong reserve fund to secure the policy holders, the mutual life insurance companies usually charge a little more in the way of premiums.

Many rich men have their lives insured for great amounts. This is done that their heirs may not be forced to break up the estate, at death, in order to settle the ordinary liabilities.

If it can be afforded, it is always well to carry some life insurance.



CHAPTER XX

FIRE AND ACCIDENT INSURANCE



We hear and know much about life insurance because, no doubt, it has to do directly with the individual, and so has a personal appeal; but there are other forms of insurance, forms that have to do with things material, that play an important part in the world's business.

LIKE GAMBLING

The gambling spirit, like the desire for stimulants and the tobacco habit, seems to be well nigh universal.

Men bet on the turn of dice, the cutting of cards, or the tossing of a coin, and we very properly denounce it as gambling. We take money without giving an equivalent, or we part with it and have nothing to show for the transfer.

There are insurance companies in England and in other parts of Europe where they insure risks from life to fire, from ships to crops, and from the turning of a card to the tossing of a coin.

The English company, known the world over as "Lloyd's," is ready to insure an ocean liner, or to guarantee that the next child born into your family will be a boy or a girl; it will even insure that there will or will not be twins, and that, if twins, they will be boys or girls, or one of each.

Now, this looks like gambling, and you would be quite right in so classing it, yet it is founded on the well considered law of chance, and the premiums—call them bets—are calculated with a mathematical precision surprising to one who has not studied the matter.

WHAT IS FIRE INSURANCE?

Fire insurance is a contract between the insured and the company taking the risk, in which for a consideration called a "premium," the company agrees to pay to the insured a stated sum, should the property, named in the policy, be destroyed by fire.

If there should be a fire, during the life of the policy, and the damage is not total, the company pays only enough to cover the loss.

Should the property be totally destroyed the company pays up to the amount named in the policy.

No company cares to insure for the full amount of the property; that might be an incentive to incendiarism.

In taking a fire risk, the companies base their estimates on tables as carefully worked out and from experiences quite as well studied as those of the actuaries of life companies.

Fire companies are purely business corporations, and their conduct is subject to the inspection of the officials of the state from which they receive their charters.

PREMIUMS

As life companies have rates dependent on the age of the insured, so fire companies regulate their premiums by the location and other circumstances of the buildings; in other words, they calculate the probabilities, and charge accordingly.

There are buildings particularly subject to combustion on which American companies will not take a risk. Among these may be classed kerosene and turpentine stills, sulphur and powder mills, and the buildings in which these products are stored.

Buildings not used for the purposes named, but in close proximity to them, are often considered too dangerous to warrant the issuance of a policy.

In all cases, the company makes a careful survey of the property to be insured, and on this report the amount of the premium is based.

Premiums on fire policies must be paid in bulk and in advance.

Policies should be renewed some days before the expiration of the old ones.

Fire premiums, taking into consideration the amount to be paid, are much lower than life premiums. We know that a man must die, but a building may never burn down, therefore the risk is less.

COLLECTING

A man may insure in a dozen life insurance companies, and each must pay the amount of the policy on his death, but not so with fire companies.

A man owning a house worth, say ten thousand dollars, can insure it in ten companies, each taking a risk of eight thousand dollars.

If this house burns down the man does not receive eighty thousand dollars. The actual loss is calculated and the companies divide it up, each paying its part.

Fire companies, while anxious to issue policies on every insurable house, are more than willing that their business rivals should do the same, as in the event of fire the burden of loss will not be borne by one.

After every fire the company's agent examines the damage and estimates what is saved. On this the payment is based.

INSURABLE PROPERTY

A building is classed as real estate, but personal property is just as liable to be destroyed by fire.

Fire policies can be secured on goods, furniture, machinery, live stock and other things, and the method is about the same as where buildings are insured, but as a rule the premiums are higher, for such things are apt to be ruined by smoke and water, when the building in which they are stored may not be much injured.

MUTUAL COMPANIES

Men can associate for any legal purpose, and mutual protection against loss by fire is one of these.

In many neighborhoods throughout the country, but particularly in the eastern states, there are mutual insurance companies, usually composed of a number of men who know each other and who agree to share the losses of a member, in proportions agreed to in advance.

This form of insurance is cheap and effective, but the field of its operations is necessarily limited.

STOCK COMPANIES

The stock companies start with a fixed capital, each member receiving stock in proportion to the amount contributed.

The capital and the interest from it, after paying the necessary expenses, is invested, and reinvested, till it often reaches a large sum.

At the end of every fiscal year, usually June 30th, the expenses and the losses paid are deducted from the earnings and the net gain may be divided as dividends.

Often there are not only no dividends, but a great conflagration, like that of San Francisco, may wipe out all the earnings, all the reserve and even the capital itself, leaving the company bankrupt and heavily in debt.

Great calamities cannot be foreseen. No actuary has yet appeared to forecast the acts of Providence, but on the whole our fire insurance companies are well managed and prosperous.

ACCIDENT INSURANCE

We have insurance against storms, against the breaking of plate glass and even against loss from burglars, but the best known of the minor insurance societies are those known as "accident companies."

Accident policies are of many kinds, and there is no reason why the companies, under their charters, should not extend their risks indefinitely.

Accidents against property are insured much as is destruction from fire, but the nature of the accident as "hail," "explosions," "tornadoes" and "insect destruction" must be specified in the policy.

The most popular form of accident policy is that which is sold to travellers, and which can usually be had at the office where one buys his ticket.

The method here is simple, and the purchase may be made in a minute. "I want a policy for $1,000 for ten days," you say to the clerk. He tells you the amount, you pay and get your ticket, and there you are.

Prudent men have a stamped and addressed envelope ready. Into this they push the policy, and the wife gets it. No, it does not startle her. It is just Harry's prudence and she is used to that.



CHAPTER XXI

PARTNERSHIPS



If properly conducted, there is much to commend the management of a business through partners.

Never go into a partnership with a man who puts in his experience against your capital, unless you know him like a brother.

"It lasted about a year," said a man who had done this. "Now the fellow, who has cleared out, has the capital and I have the experience."

A partnership is an agreement between two or more persons to associate for the purpose of carrying on a certain form of business.

Each member of a copartnership must contribute a stated contribution to the establishment of the enterprise, but each need not give the same amount.

Neither is it necessary that the contributions of each to the firm shall be of the same character.

One may contribute a building, another machinery, or material, and still another money.

The shares in the profits are based on the cash values of the different contributions.

The work of the different parties may be estimated as contributions, but in such cases it is better to pay the worker a fixed compensation, and charge this to the expense account.

PREPARE AND SIGN

Never go into a partnership based on a verbal agreement, unless it be for the distribution of fish, game or nuts, when out with a friend for a holiday.

Have the copartnership articles carefully drawn up and signed before you put a cent into the undertaking. A document like this can be appealed to should disputes arise; and should a partner die, his heirs may find it of the greatest value.

The articles should contain:

1. The amount to be contributed by each. 2. The nature of the business. 3. The time which the partnership is to last.

If the time is not specified, a partner may withdraw whenever he pleases.

If the profits are to be equally divided, this should be stated and provided for.

SILENT PARTNERS

When a man invests money in a business in the management of which he takes no active part, he is said to be a "silent partner."

Such a partner has a share in the gains and he is responsible as the others for the firm's liabilities.

Again, a man may not give money or time to a firm, but is willing, for business reasons, that his name shall appear as if he were in the association. In this case the man is known as a "nominal partner."

Although this man is not entitled to a share in the profits and has no money invested, yet he can be held liable for the debts and other obligations. The reason for this is very plain.

LIABILITY

In all matters rightly belonging to the business of a firm, any member has the right to act, and his acts will be held binding in law.

It is usual for partners active in a business to have each his separate duties, but even if these duties be designated in the articles of agreement, the outside business world is not supposed to know anything about the relative duties of the members of a firm as decided among themselves, so it is decided that each is empowered to act for his partners.

Under the usual articles, it is stipulated that while a dual partnership lasts, neither of the members shall make a note, sign a bond, or enter on any outside obligation as an individual without having secured the written consent of his business associates.

Each partner in a firm is liable with the others for all the business indebtedness.

If a firm fails, and the assets are found not sufficient to satisfy the creditors, they can levy for satisfaction on the private property of one or all of the partners.

If a member of a firm should become so far indebted, as an individual, that he cannot comply with his obligations, the interest he holds in the firm may be disposed of and applied to the payment of his debts.

This does not mean that the creditors may take or seize on any particular thing which the firm holds jointly, but that the debtor's interest in the concern may be so disposed of. All this the law has provided for.

A new partner admitted into a firm cannot be held responsible for the debts of the old concern.

HOW TO DISSOLVE

Every partnership agreement must provide for and distinctly state the period for which it is to continue.

At the end of the period named, the partnership is dissolved by limitation.

If the partnership is to continue, a new agreement must be made and signed.

On proper application, a partnership may be dissolved by an order of the court.

If a member who has become objectionable to his partners should not agree to a dissolution of the firm, the partners may apply to a court of competent jurisdiction for a decree of dissolution.

No member of a firm can withdraw at his own option. The consent of the other partners is necessary, and before he is released he must provide for his share of the obligations.

Notice of dissolution should be published, and notices sent to agents and others interested.

The following is the customary form of notice:

The copartnership heretofore existing between John Smith, Harry Roberts and Thomas Allen, under the firm name of Smith, Roberts & Co., is this day dissolved by mutual consent. John Smith. Harry Roberts. Thomas Allen. June 30, 1910.

SPECIAL PARTNERSHIPS

Limited or special partners are not recognized in some states.

This is a method of association whereby a person joins a partnership, putting in a sum agreed on, and which he may stand to lose as an investment. He is entitled to a pro rata in the profits, but he cannot be held for the debts.

In some countries marriage is regarded as a civil contract or form of partnership, subject to dissolution by the courts.



CHAPTER XXII

INVESTMENTS



It is a remarkable fact that many men who have shown remarkable shrewdness in conducting a business in which a fortune may have been accumulated, exhibit the judgment of children when it comes to making investments.

There are able lawyers who have made fortunes in the practice of the profession which they understood, only to lose them by investments in mines or other ventures, about which they knew absolutely nothing but what was told them by the scheming speculator and smooth-tongued promoter.

As has been intimated before in these pages, there is a great difference between saving through and hoarding through a spirit of miserliness.

SAVINGS

Every wage or salary earner, no matter how small his compensation, should try to lay by something of that little as a provision against the unproductive days.

No matter how small the amount a man has set aside, after paying for life's necessities and meeting all just debts, he is to that extent a capitalist.

The miser would hide his savings out of reach, but the man with the foresight to save will usually have the judgment to place these savings where they will fructify and grow, producing the fruitage known as interest.

The young man or the young woman, or any one else who places his little accumulations in a savings bank, has begun a form of investment that may, if persisted in, place him or her above want, even if it does not entitle either to a place on the lists of great capitalists.

CAPITALISTS

The capitalist not only has money of his own to invest, but he may and very often does need more money properly to exploit the enterprises in which he is engaged.

Money loaned to such men, after being assured of their ability and integrity, is an advantage to the lender as it is to the user.

The lender's profit is assured if the enterprise does not fail, and the added capital not only insures against failure, but it may enable the manager to succeed beyond any expectations he could have if forced to carry on the work with only his own resources.

The capitalist may choose to buy land in the suburbs of a city and build thereon a house to be sold or rented. This should always be made to secure the money borrowed.

A capitalist may establish a fund from which, on good security, the business men of the community may obtain loans, for which they get a higher interest than that which they undertake to pay to those whose money they are using.

Again a capitalist may undertake to loan to farmers, who have not the means to carry on the work, but who are anxious to make their lands more productive, through drainage and crop rotation. In this case the money loaned is secured by the usual bond and mortgage.

Or it may be that another body of men is anxious to start a great manufacturing enterprise in the neighborhood, but has not enough money to place the venture on a paying basis.

In the latter case it appeals to the capitalist, and he, though not bearing enough available means of his own, undertakes the work with the knowledge that he can rely on the small investors, whose contributions he has before managed successfully.

STOCKHOLDERS

Or it may be that the manufacturing company does not ask the capitalist to assist, but itself goes to the small investor with a prospectus of the enterprise, and offers to sell stock in the concern at $50 or $100 a share, as the case may be.

This gives a chance to enjoy the profits, be they great or small; but with the chance for larger profits there comes the greater risk which must always be assumed in such cases.

Sometimes, when a company is starting, its stock may be put below par. This stock, in the event of success, may appreciate, as with some bank and other corporation stocks, many times above the par value.

When stocks sell in the open market for their face value, they are said to be at par.

KINDS OF STOCKS

Most companies, organized on a stock basis, issue stocks of two kinds. One is known as "common" the other as "preferred."

As the name implies, preferred stock (its rate of interest is always fixed) is entitled to be paid out of the net dividends first.

Whatever is left after paying the preferred stock interest is divided up equally among the shares of common stock, each getting according to his holdings.

Sometimes the dividends on common stock are far greater than those on the preferred. The preferred stock dividends are regarded as a fixed charge, but there can be no limit as to the payments on the common stock, if the funds are available.

The stocks of railroads, factories, banks and other enterprises may be good forms of investment, and for this they are often held for long periods by investors for revenue.

Most stocks, however, particularly of railroads, are continually changing hands. The buying and selling of such securities has grown to be an enormous business, managed largely by men known as "stock brokers," many of whom are strong factors in the financial world.

As a rule, the buying and selling of stocks through brokers is a hazardous form of speculation, which has in it all the elements of gambling, and we cannot advise too strongly against it.

There is another kind of stock, which some companies keep in their safes to meet an emergency. This is known as "treasury stock," and, like the preferred, its rate of interest is fixed.

Let us suppose that a company is capitalized and prints stock to the amount of $100,000.

This company sells $80,000 worth, and the officers believe that they can force the enterprise to success with the money on hand.

Now, it follows that, with the same amount of earnings, the profits on $80,000 will be greater than on $100,000, so the $20,000 unsold stock is held in reserve.

If to extend the business, or for any other reason, it is necessary to have more money, the treasury stock may be sold to secure the extra capital.

If the business is placed on a basis where its success is beyond all question, then the treasury stock may be divided pro rata between the holders of the other stock, for, till disposed of in some way, it was an asset common to the whole company.

Each stock certificate tells when dividends are declared; they may be paid quarterly, half yearly, or annually.



CHAPTER XXIII

BONDS AS INVESTMENTS



The best way in which savings can be invested is to use them in the extension of the business in which they were made.

The wage earner and the man on a salary cannot, of course, do this, but the farmer, the small tradesman, and the mechanic, who is his own employer, may be able to do so. And so, before looking for a field for investment outside, such men should look about them and consider how best the money may be used right on the ground.

AS TO BONDS

But after considering the points suggested, the man who has some money may not be able to find a secure and profitable place for it in or near his own home. One of the safest forms of investments is bonds, though, as with other forms of security, the rate of interest declines as the margin of safety increases.

If a well-established stock company should wish for any reason to increase its available cash, it may issue bonds, or certificate of indebtedness, bearing from four to five per cent interest, payable semi-annually.

These bonds may be transferred the same as stock. They are a good form of security when it is desired to borrow money from the bank, and for many purposes they are as available as so much cash.

Such bonds are issued for a specified number of years and have coupons attached, which are cut off when interest is due, and presented to the treasurer of the company for payment.

These bonds are secured by a mortgage or deed of trust on all the property of the corporation they represent.

To redeem these bonds, when due, the company annually sets apart a sum, known as a "Sinking fund," for their redemption.

Such bonds are far safer than any form of the company's stock, for they bear interest that must be met, whether or not dividends are declared.

As with a real estate mortgage, the property pledged in the bond should be defined.

RAILROAD BONDS

Every railroad in the country has been built and equipped by the sale of its bonds. In such cases amounts of stock of the same, or approximately the face value of the bond, have been given to the purchaser as a bonus or inducement. Of course, the controlling stock is always retained by the promoters; and it is through the representation of this stock that all the business of the corporation is carried on.

The cases are few where any money was paid directly for the original issue of any railroad stock.

Bonds sold to build a road are usually known as "construction" bonds. There may be another bond issue for equipment—with a stock bonus—and still other bonds, each series stating the property pledged and the purpose for which the money from sales is to be used.

The Christian Herald, in one of its recent financial articles, clearly defines this species of bonds, as follows:

"Railroad bonds are usually pledged by the President and Treasurer of the railroad and by the Trustees, to whom the bonds are made out, and who must defend the rights of bondholders, should the company fail to meet any of the obligations it undertook in the mortgage deed.

"In other words, a bond is the Corporation's promissory note for the money originally paid by the investor, with interest for the same, to be paid to the investor in stated amounts at stated intervals; and to guarantee its good faith in the matter, the Company pledges the bondholder an interest in certain property in its possession. It follows that a bond has a first call upon the property rights of the corporation; that it represents something tangible; that it pays a definite amount of interest, and that it may be reduced at its full value at a certain time."

BUYING BONDS

Bonds, like wheat, have their selling prices quoted from day to day, and they are equally a thing of purchase and sale.

There are banks and brokerage firms that make a specialty of bonds, and most of these houses are entirely reliable; still, the novice in such things would do well to investigate for himself before investing in any bond recommended by any seller.

It is the purpose of the seller to sell; it should be equally the purpose of the buyer not to be "sold."

Our government, state and municipal bonds speak for themselves, and in the main require no examination as to the security, though there have been cities and even states that have defaulted in their payments.

Bond houses and banks of established reputation cannot afford to deceive; they receive their compensation in the way of commissions on sales, and their characterization of the bonds may be accepted without question, for they invariably investigate the bonds, before they lend their names to them by offering them for sale.

If there is any doubt in the mind of the would be purchaser as to the character of the seller, that should be the first thing investigated.

What the buyer must satisfy himself of is:

1. Who is the seller? 2. What do the bonds represent? 3. Are they negotiable? and 4. Can they be sold again for about their face value?

Every one who has saved money, it is to be supposed, has a bank account and is acquainted with the president of his local bank. When in doubt, the advice of such a man may be of great help.



CHAPTER XXIV

THINGS TO REMEMBER



If a man is making a living he should not change his business after he has passed middle life, unless, indeed, he has a guarantee that the new venture will be greatly to his advantage.

The best business for the average man is that which affords him the most pleasure in carrying it on, or at least with which he is most familiar.

Happiness in one's work means far more than the accumulation of a fortune in discomfort.

DON'T DECEIVE YOURSELF

Having made your credit and business standing good, keep them good by an adherence to the same course.

If you can avoid it, do not loan your name to every needy friend that comes along. Your neighbors question your good judgment every time you have to meet a note which you were coaxed into endorsing. You would have saved yourself by loaning the money outright.

Do not deceive yourself into the belief that you are making money when, as a matter of fact, you may be losing.

You buy an article for two dollars and sell it for two and a half, and you say to yourself: "There is fifty cents made." But is it? Let us see.

Before crediting your business with that fifty cents, you should have considered these points.

1. The loss of interest on that two dollars. 2. Your own time or other time paid for. 3. The capital invested in things not sold. 4. The rent. 5. The transportation, insurance, heat, light, bad accounts, unsalable goods, taxes, public donations, and the flood of items that go to swell the outlay of every merchant, whether in the great city or at the country crossroads.

WEEDING OUT

Every man in trade should make an inventory of his stock at least once a year. Having done this, he should give his stock a fresh appearance, whether new goods be added or not, by relegating to the scrap heap, cellar or the garret all the dingy, dirty, disreputable stuff that he could not sell or give away, and which has induced sore eyes whenever seen.

Keep a stock book.

Quite as important as keeping the stock in order is keeping the books in good shape.

At least once a year the books should be weeded out. Why carry as bills collectable accounts which you have been assured, for years, would never be paid?

Wipe them out and charge them to profit and loss.

Where machinery is used, it is a good plan to charge off every year ten per cent of the cost; this to make good the loss from wear and tear.

It is only by annual house cleanings and account clearings that you can tell about how you stand.

LET YOUR WIFE KNOW

It is usually wise for a woman, married or single, to keep her real estate and her money, if she have any, in her own name. So also with property bought with her money.

In these cases the woman should deal with her husband, or the members of her family, the same as she would with strangers with whom she is transacting business.

Some may say that this suggests a want of confidence and a lack of that affection that should exist between husband and wife or near kinsfolk. Such an objection is sheer sentimentality. Be as open handed and generous as you will with your loved ones, but when it comes to business, let the work be done in a strictly business way or not at all.

Many a good business has gone to ruin after the death of the owner and manager because he had kept his wife in blank ignorance of his affairs and the way in which he conducted them.

Many a business, that just dragged along till the death of the manager, has sprung into new life when the widow took charge. This must in part be credited to natural ability and inborn pluck and energy, but even these gifts could not have availed if the woman had been left in ignorance of business methods.

Women, like men, are awkward in new positions, not so much from a want of ability as a lack of experience.

Put the average man suddenly in charge of a house, and he will soon demonstrate his helplessness. The woman's deftness comes from her experience.

As far as it is possible, every husband should post his wife as to his methods of doing business.

He should not keep her ignorant of his financial affairs.

If he conceal from her the amount of his secure holdings, it may be that he hopes to surprise her at his death, or long before that event. But if he have any regard for his family, he should not hide from her the obligations which may spell ruin if the wife is not prepared in advance to meet them.

Whether the husband lives or dies, the wife must still care for the children and attend to her never-lessening household duties. Think of her as taking on the added burdens of a business of which she is ignorant.

There are many prosperous husbands to whom what has just been said will not apply, but if you should ask them the secret of their success they will not hesitate to tell you that when they married they took their wives into full partnership, business secrets and all.

CHILDREN AND BUSINESS

When you send your children to school it is that the training there received may qualify them to fight the better the ceaseless life battle.

Of course, we should not regard all education from a business viewpoint. Money apart, learning is its own greatest reward.

It widens the horizon at every step, and lifts the soul into strength and a profounder worship. But it will not do to overlook the business side of the training which the child should receive in school and out of it.

It is all very well to teach children the sources of the family revenue and the way to secure it. It is right that they should be impressed with the dignity of labor and trained in the ways of earning money, but it is far more important that they should be taught how to spend money, so as to get the most good from it, once it is earned.

The boy or girl is in a safe way to learn self-control and build up character when he or she, with some nickels at command, can pass a candy or a fruit shop without being compelled to spend their cash assets.

Children, wherever it is possible, should be given opportunities for earning money, which they can feel is "really and truly" their own.

They should not be made to feel that the money is not actually theirs, to do with as they please, but they should be taught self- denial, and that they must not get rid of their earnings by the purchase of things not needed.

On the farm, children unconsciously learn much through occasional work and constant observation, but away from the farm, boys and girls are apt to know little or nothing of the work in which the father, the bread winner, is engaged.

Where it is possible, the children should be made familiar by actual contact with the father's work.

This knowledge may never be used, still it will have value as a factor in the child's training, for in our modern life all business is inter-related.

Let the youngsters know something about banks by entrusting them there when old enough.

Teach them to keep accounts of their own little money affairs, their earnings, their expenditures, and their balances.

If they should borrow, even a cent, see that they return it at the time agreed on. Impress on them the fact that debt is a burden which it is well to get rid of as soon as possible, if one would stand erect and be entirely free.

All this can be quietly inculcated into the mind of the child without making him old-fashioned or miserly. The more he knows of the world the more he can enjoy it in a wholesome way.



CHAPTER XXV

WORTH KNOWING



If things are said in this chapter that seem like a repetition of things already told, it is that their importance warrants a repetition in another form.

OVER-GENEROSITY

"There are no pockets in a shroud," it is said. True it is that we cannot take material things with us to the other side of the grave, and so before the end comes it is well to make preparations for their disposition.

There are three ways of getting possession of property:

1. To have it given. 2. To earn it. 3. To steal it.

We shall not consider the last method; that is the business of the law, but let us look at the first.

Property is given in two ways:

1. By direct gift from one to another. 2. By will, when the amount is payable on the death of the donor.

Of course, the widow and children, if there be any, are first to be considered in either of the cases named.

Many people, when the end is nearing, think that it is better to make sure that their wealth will reach the right hands by giving it direct and at once.

Now, no matter the nobility of the motive that prompts such an act, it is one which, on the whole, cannot be commended.

It is all very well to spend available means in order to set a son or daughter up in business, but such sums, if there are other heirs, should be charged against the share of the probable donee, with interest, and a record made of the same.

Under no circumstances should old people, who, after raising a family and living honorable lives, have saved enough to own their home and secure an income for their declining years, deed or give this property to their children, or to any one else, in consideration of their having all their subsequent wants met.

The better way for the farmer, the merchant, or the manufacturer, when he feels the years pressing heavily and that he can no longer attend properly to the old demands on him, is to shift by a properly drawn contract the business management of the enterprise to his children, or to those whom he wishes to place in charge.

In this way the ownership is not changed, and if the new management should prove to be inefficient, it can be placed in more efficient hands.

CARE OF WILLS

As has been said, every person having property of any kind to dispose of should make a will.

Already ways have been given as to how wills should be made and estates administered, but to these it may be well to add another point.

Do not imagine that the making of a will shortens life.

Too often, after the demise of a testator who it is known has made a will, the heirs cannot find the document, and the lawyer who drew it knows nothing more about it.

Many men leave their wills with their lawyers. If this should not be done, then it would be well to keep it in the safe of the bank in which the testator has his account.

But whether in these places or another, there should be no doubt as to the existence of a will, or the place in which it may be found.

Only the last will should be kept; all preceding wills should be destroyed.

CARE OF PAPERS

While writing about the care of wills, we are struck with the recollection that wills are not the only papers of value that are apt to be mislaid or lost.

Never pay out money without taking a receipt, and never receive money without giving one.

You are not responsible for the care of the receipts you give, but you certainly are for the receipts you receive.

The trained business man has a place for everything, but there is no reason why the man not so well trained should have to turn his shop or his home upside down every time he wants a paper that proves he has paid a bill, which he must pay again if that receipt is lost.

Everything may be regarded as "lost" that cannot be found, even if you are sure "it is about somewhere."

No valuable paper should be "about." The only place for it is just where you can lay your hand on it when wanted.

In addition to keeping your papers where they can be found the instant they are wanted, see to it that every paper is self- explanatory and clear of meaning on the face of it.

CHECKS AND STUBS

It has been advised that the stub be always filled out before the check, and that the check be then copied from the stub. This course will greatly lessen the chances of disagreement between the two.

When the last check in the book has been filled and torn out, do not throw away the stubs. They contain important data and may be of use in proving payment should a question arise.

In like manner, never destroy the cancelled checks handed you by the cashier when your bank account has been balanced. Each of these checks, if drawn to order as it should be, is a receipt, a voucher, for some payment that may possibly be demanded again.

Be on the safe side.

SENDING AWAY MONEY

It may be well to repeat again, in more condensed form, just how money may be safely sent to a distance.

1. By bank draft, payable to your order and endorsed over to the person whom you wish to pay. The party receiving the draft must endorse it before he can collect, and this endorsement is a receipt for the money, as the cancelled draft must eventually come into your possession. 2. You can buy an express order up to fifty dollars, but you may send money in a package to any amount. Only banks or large dealers in money do this. Like the bank draft, the express order must be endorsed by the receiver, and the express company returns it to you, when it becomes a receipt. 3. By post office orders, up to one hundred dollars. 4. By postal notes, in small amounts. 5. By telegraph. 6. By transmitting a personal check. 7. By a trusted messenger authorized to get a receipt.

The bank draft is the very best way of transmitting money.

As has been said, drafts can be bought at any bank, and they should always be made payable to your order.

You want to pay a bill of goods to Lloyd, Smith and Company, New York, so you sign on the back of your draft for the amount:

Pay to the order of Lloyd, Smith and Company, Henry C. Robbins.

Lloyd, Smith and Company must endorse the draft before it can be cashed. The draft, after payment, is returned to you, and it becomes the best form of receipt.

LOST IN MAILS

Were you ever at the Dead Letter Office in Washington? If you have never paid such a visit, you can form no conception of the tons, the hundreds of thousands of letters and parcels that are lost every year in the mails.

Unaccounted for drafts, checks, postal orders, books, jewelry, medicine, everything, indeed, that the mails will agree to carry, may be found piled in that cemetery of lost communications, the Dead Letter Office.

Have you added to the mortuary list?

All these deaths, like many of living creatures, are due to carelessness.

As a rule, the sender is to blame. He has misdirected. He has placed papers not properly folded in the envelope and then neglected to seal it. He has neglected to write any address at all, and dropped the letter into the box. Again he has addressed the parcel, but neither men nor angels can decipher the writing.

MORE ABOUT NOTES

The note, as has been said, is one of the most usual forms of obligation, yet misunderstandings often arise as to its settlement.

Here are the points that must be attended to, nor shall we offer any excuse for repeating them collectively:

1. The date and amount must be so plainly written as to leave no doubt as to either. 2. The rate of interest, if any, must be clearly expressed. 3. The post office address of the signer or signees must be written opposite the name. 4. The note should be made payable at a definite place and on a definite date. 5. In taking a note or other obligation from a person who cannot write, be sure to have his "x" mark witnessed.

Should you receipt certificates of stock as security for the payment of a note, or the payment of any other debt, be sure to notify the company issuing them.

In giving this notice, which should be done at once, state clearly the number of shares you hold, the number of the certificates and to whom issued.

The enforcement of this rule will depend altogether on the character of the person with whom you are dealing.

Never, if you can help it, buy a past due note, especially if it is not secured by a mortgage.

If a note, which a third party has endorsed, becomes due, never agree to an extension of time without getting the written consent of the endorser.

Many men have lost through their ignorance of this essential transaction.



CHAPTER XXVI

LOOK BEFORE YOU LEAP



We are not quite through with the note.

When making a payment of principal or interest on a note, be sure to take a receipt for the amount, stating specifically what the payment is to be credited to. In addition, if it be possible, see that the sum paid be endorsed on the back of the note itself.

The endorsement of the sum paid on the back of the note bars its being negotiated for more than the amount actually due.

Sometimes the owner and the maker of a note live at points some distance apart. If you were the maker of the note, and wanted to make a payment, but wished to avoid the expense and annoyance of a trip, what should be done?

In this case a good plan would be to write to the owner of the note, asking him to send it by a certain bank in your neighborhood where you can pay. The bank will receive the cash, make the endorsement in your presence, and then send its check for the amount with the note to the owner.

You must pay the cost of this transaction.

Or you may send the amount to be credited on your note, through a bank draft, as already indicated.

Never destroy a cancelled note.

NOTES IN BANK

If you have money at a bank your note will form the chief evidence of indebtedness and be the paper for which the security is pledged.

Keep careful track of the date of payment and the amount. There must be no neglect or carelessness.

Never permit your note to go to protest.

If for any reason payment cannot be made at the time fixed, then the better way is to go, as soon as this is learned, to the bank or other holder of the note, and frankly explain the situation.

Bankers are not shylocks. They realize that good and responsible men are often disappointed in their collections, or in the payment of a sum on which they depended for the settlement of their account with the bank, and in such a case they are usually willing to grant an extension.

Private individuals, as note holders, should be treated in just the same way.

WELL TO KNOW

When calling at a bank for your note, always give the exact date on which the note falls due.

If the note belongs to another party, and is held by the bank for collection, then mention the name of the person to whom it was originally given.

If the bank has sent you a written notice about the note, take the notice with you. It will be found to contain all the desired facts.

Banks keep their own notes in one place and those of their customers in another.

Banks keep each date by itself, and can so find required notes more readily if the owner's names and the dates are given.

DISCHARGING LIENS

Remember a mortgage is a lien or security given for the payment of a note.

If you get a mortgage, have it recorded at once.

If you pay off a mortgage, take it at once to the office of record and have the discharge of the instrument properly entered on the folio in which the mortgage is recorded.

Many lawsuits have resulted from the temporary neglect of this important duty.

BE PROMPT, BUT NOT TOO PROMPT

Sometimes a man will give a number of notes and secure them by one mortgage.

The notes may pass into the hands of a number of people.

Let us suppose that you hold one note and the mortgage, and that the mortgagee comes to you and tenders the amount of your note, should you then surrender the mortgage to him?

By no means, until the last note is paid that mortgage remains as security, and the holder of it is responsible for its safety to the holders of the other notes.

In such a case it is better to have the mortgage held by one party for the protection of all.

BE IN NO HASTE TO INVEST

When a person not accustomed to managing money comes into the possession of a sum that it is not safe to carry about in the pocket, what should he do with it?

Obviously the first answer to this question must be "He should put it in the bank."

We have already given hints as to investments, and to these it is not necessary to refer again, we are now considering another and not an unusual phase of such a case.

Young men and women of all ages are very apt to be inexperienced in these matters. As soon as it becomes known that such people have come into the possession of a goodly amount of cash, which they are not considered competent to manage, it is surprising how past acquaintances suddenly pose as old and unselfish friends, each with a scheme for doubling the money while the owner is looking at it.

Now, there may be good, honest friends who are eager to advise and help in a case of this kind, but they are sure to be outnumbered by advisers who have their own little axes to grind.

Our advice is "Don't be in a hurry to invest. Your cash is quite safe while in bank."

But no matter how promising, do not invest your money in a business you know nothing about, even if it does carry with it a position and a salary.

Find a good honest lawyer, despite sneers to the contrary, we believe most men in the profession are of this character, and ask his advice, and pay for his help if papers are to be drawn.

Buying rentable real estate is usually a good investment, provided always that the price is reasonable, the title clear, and the chances of its advancement pretty certain.

MEET YOUR DUES PROMPTLY

It is estimated that every man and woman in the United States belongs to one or more societies of some character, and this is not an overstatement.

Every member of such an organization is such by reason of election and the payment of dues.

If you are a member of, or a pledged contributor to, a church, lodge, grange, or other society, you should regard the prompt payment of your dues as sacred as any other form of obligation.

The expenses of a properly conducted church are always considerable, even in small communities. It is a disgrace to the Christian organization that, after forcing down the pastor's compensation to the barest cost of life's necessities, then force him to run into debt if he and his family would live, or to be forced continually to remind the trustees that his salary is far in arrears.

If you belong to a lodge or other society, leave it if you honestly feel that you cannot afford the dues. Neglect to do this and your name will be dropped from the rolls on which it never should have been placed.

COUNTING MONEY

Never receive money from any one without counting it. Count it at once and in the presence of the giver.

Let it make no difference, banker, merchant, kinsman or friend, do not fear to give offence, but right then and there, count the money he gave you.

Of course, these people are honest, but did it ever occur to you that honest people often make mistakes?

Whenever you pay another money, if he does not do so himself, you should insist that he count it in your presence.

If you do this you won't lose a friend, but if you do not do it you may make an enemy, should the man come back to say you made a mistake and underpaid him, and you very properly refuse to honor his claim.

READY MONEY

Do not, if you can possibly avoid it, keep money around your house, in your place of business, or on your person.

The professional thief is ever on the watch for chances to take unto himself all the money in sight.

Pickpockets reap their harvest from money carriers.

The burglar may steal or fire may destroy money left in the house.

A bank, if not near one then a safe, is the best place for money, though safes have been broken into and robbed.

Do not make a display of money at any time, but particularly in a public place.

If you are drawing money from a bank, count it quickly and quietly, then secure it in an inside pocket that cannot be reached without unbuttoning.

Never cash a check for a man whom you do not know to be square.

The same applies to the endorsement of checks.

IN TRAVELLING

Always be courteous in travelling, but never take the chance acquaintance of the steamboat or car into your confidence.

Keep an eye on the man who "fortunately is going just your way."

Watch out for the fellow who knows the leading men of your town and is a cousin of Judge Smith.

Do not respond if such men ask you to cash a small check or make a slight advance till his draft arrives.

Do not accept the invitation of strangers to visit any place.

Avoid the confidence of the over-dressed, but slightly intoxicated young fellow who "has been out with college chums." He is not a college man, nor has he been drinking.



CHAPTER XXVII

CONTRACTIONS AND SIGNS USED IN BUSINESS



" Italian ditto—The same as above. Degrees. ' Primes, Minutes, Test. " Seconds, Inches. Thus, 7 20' 10" in circular measure, or 7' 20" 10''' in duodecimal long measure. I1 One and one-fourth. I2 One and one-half. I3 One and three-fourths. + Latin plus, more—Addition. - Latin minus, less—Subtraction. X By, or into. Multiplication. Also area, as 20 X 5, read 20 by 5, means 20 long and 5 wide. Divided by—Division. The : above is also a sign of division as used in ratio, thus, 4:7; and the alone is a sign of division as used in writing fractions, thus, 4/7. = Equals. The double ::, as used in proportion, is also a sign of equality, thus, 4:7::12:21. % Per centum. By the hundred. Rate of interest. P Per, by or through. $ Dollars; said to be a contraction of U. S. for United States money. # Means Number, if before a figure, as #90, but pounds if written after, as 90#. @ Latin ad., meaning to or at. A1. First Class, the best. A. or Ans. Answer. Acc., Acct. or a/c, Account. Adv. Latin ad valorem, according to value. Admr. Administrator. Admx. Administratrix. Adv. or Ad., Advertisement. Agt. Agent. Amt. Amount. a/o At sight or Account Sales. Ass'd. Assorted. Asst. Assistant. Bal. Balance. B.B. Bill Book. Bbl. Barrel or Barrels. Bdls. Bundles. B/E Bill of Exchange. Bgs. Bags. Bk. Bank; Book. Bkts. Baskets. B/L Bill of Lading. Blk. Black. Bls. Bales. Bot. Bought. B.P. Bills Payable. B.Rec. Bills Receivable. Bro't. Brought. Bu. Bushel or Bushels. Bx. Box or Boxes. Cash. Cashier. C.B. Cash Book. Chgs. Changes. Chts. Chests. C.H. Court House; Custom House. C.F.S. Carriage and Insurance Free. Cks. Casks or Checks. Clk. Clerk. Co. Company; County. C.O.D. Cash, or Collect, on Delivery. Col. Collection. Com. Commission. Const. Consignment. Cor. Sec. Corresponding Secretary. Cr. Credit; Creditor. C.S.B. Commission Sales Book. Ct. or c. Cent, Latin Centime, a hundred. Cts. Cents. Cwt. A hundred weight. D. B. Day Book. D/d. Days after date. Dept. Department; Depment Dft. Draft; Defendant. Disct. Discount. Div. Dividend, Division; Divide, Divisor. Do. The same. Doz. Dozen. Dr. Debtor; Doctor. D/s or d.s. Days after sight. ea. Each. E.E. Errors excepted; Ells English. E.g. Latin Exempli gratia. For example. Encl. Enclosed. E.&O.E. Errors and omissions excepted. et. al. Latin et Alii, And others. Exch. Exchequer; Exchange. Ex'x. Executrix. Exp. Export; Exporter; Expense. Fahr. Fahrenheit. Fav. Favor. Fir. Firkin. Fo. or Fol., Folio. F.O.B. Free on Board. Fo'd. Forward. fr. From. Frt. Freight. Gal. Gallon; Gallons. Gr. Grain, Grains. Guar. Guarantee. Hdk'f. Handkerchief. Hf. chts. Half Chests. Hhd. Hogshead. Hon. Honorable. Hund. Hundred. I.B. Invoice Book. i.e. Latin id est. That is. Incor. Incorporated. Ins. Insurance. inst. Instant, the present month. Int. Interest. In trans. Latin, In transito. In the passage. Inv. Invoice. Inv. Inventory. Jr. Junior. Kg. Keg. L or lb. Latin Libra, A pound in weight. L/C Letter of Credit. Led. Ledger. L.F. Ledger Folio. L.S. Left Side, or in Latin, Locus Sigilli, Place of the Seal. M. One thousand. Manuf. Manufacture; Manufacturer. Mdse. Merchandise. Mem. Memorandum. Messrs. French Messieurs, Gentlemen, Sirs. Mf'd. Manufactured. Mfst. Manifest. Mme. Madame, French. Mmes. Mesdames, plural. Mo. Month. Mol. Molasses. Mr. Master or Mister. Mrs. Mistress, usually pronounced "Missis." Mtg. Mortgage. N.A. North America. Nav. Navigation. N.B. Latin Nota bene. Note well, or Take Notice. No. or # Number. N.P. Notary Public. O.B. Order Book. O.K. All Correct. Oz. Ounce or ounces. P. Page; pint; pile; part. Payt. Payment. Pcs. Pieces. Pd. Paid. Per an, or p. a., Latin per annum. By the year. % Per cent. By the hundred. Pk. Peck. Pkg. Package. P.& L. Profit and Loss. P.O.D. Pay on Delivery. P.O.O. Post Office Order. Pp. Pages. Pr. or per. By. Prem. Premium. Prox. Latin Proximo menve. Next month. P.S. Post Script. Pub. Publisher; Public. Pwt. Pennyweight. Qr. Quire; Quarter, 28 lbs. Qt. Quart; Quantity. Rec'd. Received. Ret'd. Returned. R. R. Railroad. Ry. Railway. S.B. Sales Book. Sch. Schooner. Shipt. Shipment. S.O. Seller's Option, a stock phrase. Sig. Signature. S.S. Steamship. St. Saint; Street; Sight. St. Dft. Sight Draft. Stor. Storage. Str. Steamer. Sunds. Sundries. Supt. Superintendent. T.B. Time Book. Treas. Treasurer. Ult. Latin, Last Month. U.S.A. United States of America. United States Army. U.S.M. United States Mail. U.S.N. United States Navy. Ves. Vessel. Via. By way of. Latin. V.-Pres. Vice-President. Viz. Contraction from Latin videlicet. Namely, to wit. Vol. Volume. Vs. Latin versus. Against. W.B. Way Bill. Wt. Weight. X Extra. XX Doubly Extra. Y. or Yr. Year. Yd. Yard.