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Commerce and Finance | by O. M. Powers



The book is a combination of history and economics. It relates to both the past and present. In the first 146 pages of the book, embracing a history of commerce and of banking, a foundation is laid for the proper consideration of the subjects which follow. In dealing with historical facts we have aimed to show why commerce flowed in certain channels at certain times and the influences which have affected its progress and development. In the discussion of the various subjects which follow, the aim has constantly been to reach the basic principles underlying each, to discover the theories upon which business is done. Necessarily the subjects could not be treated in exhaustive detail in a work of this size, but the most important features are set forth, and a basis is thus furnished for those who wish to pursue any special line of study farther into its details and intricacies.

TitleCommerce and Finance
AuthorO. M. Powers
PublisherPowers & Lyons
Year1903
Copyright1903, Powers & Lyons
AmazonCommerce and Finance

Designed as a Text Book for Schools and a Volume of Business Information for the General Reader.

By O. M. POWERS

Principal of the Metropolitan Business College Author of The Complete Accountant, Etc.

-Preface
As a consequence of the diffusion of general intelligence, the improvement in means of transportation, and the rapid transmission of information, the business world of to-day is more highly-organized,...
-History Of Commerce. Chapter I. Ancient Commerce. Origin Of Commerce; Egyptians; Phoenicians; Greeks
The history of commerce is the history of civilization. In his barbarous state man's wants are few and simple, limited to his physical existence, such as food, clothing and shelter, but as he advances...
-The Greeks
This enterprising people became not only masters of the Mediterranean Sea, but were instrumental in scattering the germs of taste and intelligence, elevating the standard of civilization and establish...
-Chapter II. Ancient Commerce. Continued. The Carthaginians; The Roman Empire
About the year 850 B. C. the Phoenicians had founded the city of Carthage on the north coast of Africa, planting there a colony which was destined to have a remarkable career. The city was built upon ...
-Carthage
The Greatness of Carthage The Decline of Carthage The dividing line between Greece and Carthage seemed to bisect the island of Sicily. The western half belonged to Carthage and the eastern half ...
-Roman Supremacy
Rome, in its golden era of the Emperor Augustus, had a population of 1,800,000 people, besides its numerous suburbs, and to supply the needs of this vast population required a large number of merchant...
-Roman Slavery
Western Commerce of Rome Roman Commerce in the Eastern Provinces In commenting upon the commerce of Ancient Rome we must remember that nearly all of the labor of the Empire was performed by slav...
-Chapter III. Medieval Commerce. Decline And Fall Of Rome; Decay Of Commerce; Confusion And Ignorance; Charlemagne; Venetian Commerce
About the middle of the fourth century the Roman power began to decline. It had held unbounded sway over an immense empire for five hundred years, and had created a high degree of civilization and an ...
-Confusion And Ignorance
It was impossible in the four or five centuries after the fall of Rome to carry on agriculture or other industries with any degree of success. The bare necessities were the sole aim of a great majorit...
-Charlemagne
Revival of Learning and Commerce Charlemagne A. D. 768-814 Passing over a period of perhaps two centuries after the reign of Charlemagne, in which there were some occasional indications of the ...
-Commerce of Venice
By her extensive trade and navigation Venice raised herself to a degree of prosperity and magnificence which recalls the memory of the most flourishing period of ancient Greece. She established a repu...
-Chapter IV. Decline Of Venice; Commerce of Genoa, Florence And Pisa - Effect Of Discovery Of America
Venetian Skill and Learning Besides Venice there were several Italian cities which achieved great renown in commerce, art and learning during the middle ages. These were Genoa, Florence, Pisa and M...
-Genoa
Genoa was the proud rival of Venice. Founded by the Romans before the Christian era, Genoa flourished as a commercial emporium from the beginning. It had a spacious harbor, from which it sent timber, ...
-Discovery of America
Having finally been robbed of its Black Sea commerce by the Turks, and later defeated by the superior power of its old enemy the Venetians in other parts of the Mediterranean, the Genoese turned their...
-Florence
Situated above Pisa, on the River Arno, and being without shipping facilities, the success and commercial importance of Florence were achieved in the direction of manufacturing, finance, literature an...
-Commerce of Milan
Milan, the ancient capital of Cisalpine Gaul, and the favorite residence of the Gothic kings, is the fifth of the Italian cities which achieved commercial distinction in the middle ages. Without a sea...
-Chapter V. The Cape Route To India; Portuguese Commerce; Spain's. Vast Possessions; Expulsion Of The Moors;. Dutch Commerce
Allusion has been made to the discovery of America and of the Cape Route to India, two events which occurred at the dawn of the modern era of history, and were destined to exercise a momentous influen...
-The Cape Route To India; Portuguese Commerce; Spain's. Vast Possessions; Expulsion Of The Moors;. Dutch Commerce. Continued
Not only did Spain possess a monopoly of the Western Hemisphere at the beginning of the sixteenth century, but also controlled a large portion of Europe, including what is now the empire of Germany, t...
-The Dutch
Equally unnecessary and unwise was the breach between Spain and the Dutch. The Netherlands were Spanish territory, and the Dutch were Spain's best customers. Their ships were in the habit of going to ...
-Chapter VI. Commerce Of Germany. Hanseatic League; Effect Of Thirty Years' War; Revival Of German Commerce; Zollverein; Present Commerce
In order to better understand the commerce of Germany we must go back a little in point of time to the middle ages, and glance at the civilization and commerce which had grown up in the north of Europ...
-Commerce Of Germany. Hanseatic League; Effect Of Thirty Years' War; Revival Of German Commerce; Zollverein; Present Commerce. Continued
Passing over the history of Germany prior to the Thirty-years war, a history of wars, feuds, successions and religious contentions, we find the country at the close of that conflict almost d...
-Chapter VII. Commerce Of France. Flemish Commerce And Manufactures; Age Of Louis XIV;. Colonial Possessions; Revocation Of The. Edict Of Nantes
Before entering directly upon the history of French commerce, let us refer briefly to a small country called Flanders, which during the middle ages existed and flourished directly north of France, upo...
-Commerce Of France. Flemish Commerce And Manufactures; Age Of Louis XIV;. Colonial Possessions; Revocation Of The. Edict Of Nantes. Continued
The development of French colonial ambition was also due largely to the sagacity and labor of Colbert. The French had not been very successful in the East, but Colbert turned his attention to the more...
-Chapter VIII. Commerce Of France - Continued. Colbert; John Law; The French Revolution; Napoleon's Policy; Recent French Commerce
Louis XIV lived to see his kingdom torn and distracted, his conquests lost, a large portion of his colonies in the possession of his enemies, and a smouldering hatred for each other arise among his su...
-Commerce Of France - Continued. Colbert; John Law; The French Revolution; Napoleon's Policy; Recent French Commerce. Part 2
Napoleon's Policy To Napoleon is due the creation of Chambers of Commerce and Manufactures, of the Conseils de Prudhommes or mixed juries of the most skillful operators and masters for settling in...
-Commerce Of France - Colbert; John Law; The French Revolution; Napoleon's Policy; Recent French Commerce. Part 3
Although one of the Great Powers of Europe, France has never, since the sale of Louisiana, possessed extensive colonies. Her West Indian possessions and the settlements in Asia were too small to affec...
-Chapter IX. Commerce Of England
Ancient English Commerce Under Roman rule (B. C. 54-A. D. 455) the Britons partook to some extent of the refinement of their masters, and reached a higher state of commercial development than they ...
-Commerce Of England. Part 2
Edward III offered special privileges to the weavers and dyers of Flanders who would settle in his realms, yet fettered the grant with absurd regulations in order to prevent his invited guests from be...
-Commerce Of England. Part 3
During Elizabeth's reign trade and manufactures prospered beyond all former periods in English history. The comforts of life were multiplied and the style of living among all classes greatly improved....
-Chapter X. Commerce Of England - Continued. Manufacturing; Postal System; Banking; Speculation;. Colonial Policy
From exporting her wool and importing her manufactures as England had done during the Middle Ages, she had in the seventeenth century risen to the position of a manufacturing nation, sending large qua...
-Commerce Of England - Continued. Manufacturing; Postal System; Banking; Speculation;. Colonial Policy. Part 2
*The pin that pricked the bubble was the discovery that Sir John Blount and other promoters of the scheme had quietly disposed of their stock. While the events previously enumerated were transpirin...
-Commerce Of England. Postal System; Banking; Speculation;. Colonial Policy. Part 3
Following closely upon the inventions enumerated above came the Napoleonic wars, which engaged the most of the continent and threw a large share of European commerce into English hands. At a prodigiou...
-Commerce Of England Banking; Speculation;. Colonial Policy. Part 4
The English acquired the Cape of Good Hope (called Cape Colony) from the Dutch in 1806. North of this colony were the independent states of the Transvaal Republic and the Orange Free State, still occu...
-Chapter XI. Commerce and the Colonies
Under The Confederation Commerce Of The United States. Colonial Period; Financial Policy; War of 1812. By the treaty of Paris in 1783, the American Colonies secured their independence and became...
-United States Bank
Continental Money The Colonies under the Confederation To add to the unfortunate situation the states became involved in quarrels with each other. Having the right to levy duties on imports, the...
-United States Bank. Part 2
An untoward combination of circumstances in Europe arising about this time proved a great advantage to American commerce. The French Revolution was in progress and had moved beyond control. Thrones we...
-United States Bank. Part 3
*The price was $11,250,000 payable in 15-year 6 per cent. United States bonds, and the assumption by the United States of claims of American citizens against France, amounting to $3,750,000. Napoleon ...
-Revival of Manufacturing; Tariff Laws; Slavery;. Civil War
When the embargo, followed by war, withdrew the stimulus from American husbandry by destroying the market for our produce, and foreign commerce and ship-building were at a standstill, the people's min...
-Revival of Manufacturing; Tariff Laws; Slavery Civil War. Part 2
The wise navigation laws of 1792 provided that only American built vessels should be employed in American commerce. Following this was the enlightened foreign policy of neutrality during the Napoleoni...
-Revival of Manufacturing; Civil War. Part 3
The application of steam power to transportation brought about an economic revolution throughout the world, but nowhere was this more marked or beneficial than in the United States. The canal boats an...
-Revival of Manufacturing; Civil War. Part 4
During the period of 1840 to 1855 there had been established throughout the country a system of banking, under state laws, called free banking/' by which banks were allowed to issue circulating notes...
-Chapter XIII. Commerce Of The United States - Continued. Growth Of Industries; Inventions And Discoveries;. Foreign Trade
The Southern states were the scene of the conflict, and resounded with the tread of armies. As a consequence, the prosperity of the South was arrested during the war and its fields and towns destroyed...
-Commerce Of The United States - Continued. Growth Of Industries; Inventions And Discoveries;. Foreign Trade. Part 2
In 1867 the United States again enlarged its territory, by the purchase of Alaska from the Russian government for $7,200,000. This has proven to be, like other extensions of our boundaries, a profitab...
-Commerce Of The United States. Growth Of Industries; Inventions And Discoveries;. Foreign Trade. Part 3
About 1876 there was a great advance in the production of breadstuffs in the United States. The vast wheat fields of Dakota were opened up to cultivation, and with improved farm machinery and faciliti...
-Commerce Of The United States. Inventions And Discoveries;. Foreign Trade. Part 4
Allusion was made to the division of the landed estates of France under Napoleon, by which agriculture was greatly improved, and also to the division by Henry VIII of England of the large landed prope...
-Chapter XIV. Nature And Use of Money. As An Element In Civilization; Kinds; Barter;. Essentials Of Money
Having traced briefly the history of the commerce of different nations and times, we shall now proceed to consider the nature and uses of one of the most important instruments of commerce, viz., money...
-Precious Metals as Money
As previously stated, gold and silver are used extensively for articles of adornment and as jewelry, tableware, etc., and it is probable that their general usefulness as commodities first suggested th...
-Coinage
Money is a Commodity Coinage a Convenience Essentials of Money recent years, but on the whole these metals are nearest uniform in value - fluctuate less than other commodities. Divisibility is t...
-Money as an Aid to Progress. Functions And Kinds Of Money. Chapter XV. A Measure of Value
Four Functions; Subsidiary Coin; Comparative Value of Silver And Gold; Demonetization Of Silver, Etc. Money has four functions, viz.: 1. A medium of exchange. 2. A measure of value. 3. A standard o...
-Gresham's Law
Flat Money Paper Money The advantages of fiat money are that it enables a nation to increase its circulating medium rapidly, or temporarily, without increasing its stock of precious metals. The ...
-Chapter XVI. Theories Of Money. Coinage; Volume Of Money; Substitutes; Monometallism;. Bi-Metallism
Convertible and Inconvertible Notes Representative Money Coinage is the process of manufacturing bullion into money of proper form, weight and fineness. This is done only by the government, at i...
-Monometallism
From the foregoing we may conclude that the volume of a nation's currency is not necessarily a measure of its wealth, and that the wisest and safest method of regulating the amount of money in circula...
-Monometallism And Bimetallism. Chapter XVII. Bank Of Venice; Amsterdam; Wisselbank; Bank Of France;. French System
Banking, as we understand the term, had its origin in the Italian cities during the middle ages. Prior to that time bankers were merely money changers, who set up their banks or benches in the stree...
-Bank Of Venice; Amsterdam; Wisselbank; Bank Of France;. French System. Part 2
Every merchant was obliged to keep an account with the bank in order to pay his foreign bills of exchange, and once having made a deposit it was to his advantage to continue it, because the moment he ...
-Amsterdam; Wisselbank; Bank Of France;. French System. Part 3
The bank does an extensive business in discounting short time commercial paper, according to the above-mentioned regulations, but its business in this line is considerably hampered by its rule which r...
-Chapter XVIII. English Banking. Bank Of England; Peel's Act, 1844; One Reserve; Banking. And Issue Departments
After the industrial revolution which set in during the latter part of the eighteenth century, England took first place, commercially, among the nations of Europe, and London became the financial capi...
-English Banking. Bank Of England; Peel's Act, 1844; One Reserve; Banking. And Issue Departments. Continued
Thus matters progressed until the accession of Sir Robert Peel to the Premiership of England, and the question of the renewal of the bank's charter in 1844. The panics of 1811 and 1825, and the panick...
-Chapter XIX. English Money System. Bank Of England; Immense Responsibility As Keeper Of The Reserve; Bank Rates; Management
The banking department of the Bank of England is substantially the equivalent of an extensive banking house, with all banking functions except that of issue. It receives deposits, discounts commercial...
-English Money System. Bank Of England; Immense Responsibility As Keeper Of The Reserve; Bank Rates; Management. Continued
But the reserve in the Bank of England is subject to a still further strain occasioned by the necessities of foreign commerce. London is the center of English commerce, and in case the balance of trad...
-Chapter XX. German Banking. Reichsbank; Elasticity Of German Currency; Stability;. Russian Banking
Prior to the unification of the German Empire in 1871 each state had its own hanking system, and most of the hanks were allowed to issue notes according to certain restrictions and upon such bases as ...
-Banking Reserves
While the notes are not issued against a specific reserve, as in the case of the Bank of England, but against the general assets of the bank, and are not even a prior lien on those assets, nevertheles...
-Russian Banking
The Imperial Bank of Russia was established in 1860 with a capital of 25,000,000 roubles. It is wholly a government institution, controlled by the Czar, and has no connection whatever with private ind...
-Chapter XXI. Scotch And Canadian Banking. Scotch System; Branch Banks; Canadian System; Asset Banking; Elasticity
Elasticity Organization of the Banks of Scotland Banking in Scotland is conducted upon a system resembling in many respects the English, and yet differing from it in several important particular...
-The Canadian Banking System
Prior to the consolidation of the various provinces into the Dominion of Canada, in 1867, a number of the largest banks issued circulating notes under permission of their respective provincial governm...
-The Canadian Banking System. Continued
With the currency based upon the general assets of the bank having a priority of lien over all other liabilities, being True elasticity in bank note circulation implies automatic adjustment...
-Chapter XXII. Banking In The United States. Colonial Period; Bank Of North America; Hamilton's Views; First United States Bank; State Banks
Dominion Notes Prior to the achievement of their independence the banking facilities of the colonies were not only very limited, but crude and unsettled. No well defined system of finance or bankin...
-Banking In The United States. Colonial Period; Bank Of North America; Hamilton's Views; First United States Bank; State Banks. Part 2
As some doubt existed as to the validity of a charter from Congress, the bank applied to and received one from the state of Pennsylvania. After the close of the war the bank did a prosperous business,...
-Banking In The United States. Colonial Period; Hamilton's Views; First United States Bank; State Banks. Part 3
Branches were organized in New York, Boston, Baltimore, Norfolk, Charleston, Savannah, Washington and New Orleans, and the bank at once became a successful and prosperous institution. After the abando...
-Chapter XXIII. Banking In The United States. Second United States Bank; The Great Bank War; Suffolk. Bank System; Safety Fund System;. Wild Cat Banking
The charter of the Second Bank of the United States was for twenty years. Its capital was $35,000,000, of which amount the government subscribed $7,000,000, and in consideration of this five of the tw...
-Banking In The United States. Second United States Bank; The Great Bank War; Suffolk. Bank System; Safety Fund System;. Wild Cat Banking. Continued
On the other hand, the National Republican party, headed by Clay and Webster, immediately took sides as defenders of the bank against President Jackson. Although the bank's charter would not expire un...
-Chapter XXIV. Banking In The United States. National Banking System; Organization; Reserve; Circulation; Sub-Treasury System
Wild Cat Banking When the Civil War broke upon the country it found the national government illy prepared to meet the enormous expenditures which a war entails. The treasury was almost empty, and y...
-Banking In The United States. National Banking System; Organization; Reserve; Circulation; Sub-Treasury System. Part 2
The affairs of the national banks are managed by a board of not less than five directors, elected annually by the stockholders, as in the case of other corporations, except that all directors of natio...
-Banking In The United States. Organization; Reserve; Circulation; Sub-Treasury System. Part 3
In the early days of the national banking system circulation was extremely profitable. Government bonds bore five and six per cent, interest and kept constantly increasing in value, and this, added to...
-Chapter XXV. Banking In The United States. State Banks; Private Banks; Savings Banks; Trust Companies
Gold and Silver Certificates A large number of banks exist and flourish under state regulations. Many of them were organized and engaged in business prior to the formation of our national banking s...
-Trust Companies
During the past twenty-five years there has developed in the United States a class of financial institutions called Trust Companies, combining the functions of a bank with those of a fiduciary agent....
-Chapter XXVI. Removal of the Deposits. United States Treasury
Financing an Enterprise Banking In The United States. The United States Treasury. As before related, President Jackson removed the government funds from the United States Bank in 1833, and place...
-Removal of the Deposits. United States Treasury. Continued
One of the most important features of the Independent Treasury Act was the special clause which required all payments of public dues and also all disbursements to be made in gold or silver coin or tre...
-Treasury And The Banks
Closer Relation between Treasury and the Banks Suspension of Specie Payments The close connection between the Treasury and the banks, brought about by the exigencies of a great war, have continu...
-The Sub-Treasuries. Bank Clearing House. Chapter XXVII. Settlements Between Banks. History; Object; Methods; Clearing House Certificates
The original idea of a clearing house was an institution designed to facilitate the settlement of daily balances due to and from a number of banks. It is thus a labor saving device, arising from the p...
-Use Of Substitutes For Money
Use of Checks and Drafts History Bank Clearing House: The first clearing house was organized in London about 1775, and for three-quarters of a century it and the one established in Edinburgh...
-Clearing House Certificates
Several times during the Civil War the New York clearing house resorted to the use of certificates as a means of relieving the financial stringency, and the effect in each case was decidedly beneficia...
-Borrowing And Lending Money. Chapter XXVIII. The Use Of Credit. The Money Market; Call Loans; Collaterals. Note Brokers
Clearinghouses of the Future Non-members and Country Checks Business men must borrow money. With rare exceptions every firm and corporation in the regular course of business must at times resort...
-The Money Market
In the states where wool is extensively raised, the time of the wool clip in the spring brings need for an increased volume of money, and thus the law of demand and supply affects the money market and...
-The Money Market. Part 2
It is a good rule that all firms should be out of debt at least once a year, and better, twice yearly; otherwise the banker, through his loans, supplies in fact a part of the capital to the concern, b...
-The Money Market. Part 3
The making and selling of one's paper in the market, outside of one's bank, and free from the wholesome restraint which a bank exercises upon the inclination of a class of depositors to borrow beyond ...
-Corporations. Chapter XXIX. Character Of Corporations. Formation; Promotion; Kinds Of Stock; Watering Stock;. Dividends
A corporation is an artificial person created by law. It is a personage entirely distinct from the individuals who form it or conduct its affairs. Its members may all die and be succeeded by others, b...
-Character Of Corporations. Formation; Promotion; Kinds Of Stock; Watering Stock;. Dividends. Continued
Preferred stock is that which entitles its owner to profits or dividends in preference to other stockholders. Guaranteed, preferential, preference and like expressions mean the same. Interest b...
-Watered Stock
The stock of a corporation is sometimes watered by the officers or a few large stockholders for their own benefit. They represent that it is necessary to largely increase the capital stock of the comp...
-Corporations - Continued. Directors; Duties Of Officers; By-Laws; Records
The owners of the stock of a private corporation, as soon as the charter is granted by the state and the corporation fully organized, proceed to choose and elect a board of directors, and the board of...
-Corporations: Directors; Duties Of Officers; By-Laws; Records. Continued
When the minutes of the corporation are transcribed by the secretary into the minute book they should be signed by the president of the corporation and attested by the secretary. These signatures ar...
-Chapter XXXI. Corporations - Continued. Subsidiary Corporations; Control And Manipulations. Subsidiary Companies
Termination of Existence Subsidiary or auxiliary companies are those which are formed or controlled by, or are dependent upon some large company. It frequently becomes necessary in order to promote...
-Chapter XXXII. Corporations. Combinations; Trusts; Promotion; Underwriting
The word trust has been perverted during recent years from its proper signification. Properly speaking, trusts are of many kinds, but they all imply the placing of property or power, or both, in the h...
-Chapter XXXII. Corporations: Trusts; Promotion; Underwriting. Continued
There is another class of corporations, which are formed by the consolidation of several corporations into one. The method of forming such a consolidated corporation is to have the stockholders of two...
-Monopolies
Instances are not uncommon where consolidations are complicated by reason of the companies which it is desired to combine owning public franchises which are not transferable. The most usual way of get...
-Chapter XXXIII. Corporations - Continued. Receiverships; Reorganizations
Duties of Receiver The affairs of private corporations are frequently wound up under the control of a receiver, who is appointed upon the application of some interested party by a court, usually in...
-Foreclosure
If a proper proportion of the bondholders of a corporation, usually one-half, are not satisfied with the reorganization as outlined by the committee, or the amount or kind of new securities to be give...
-Bonds. Chapter XXXIV. Government And Corporate Obligations. Kinds; Refunding; Negotiating; Foreclosure
A bond is an obligation or promise to pay money, which differs from a promissory note in that it is given under seal, the effect of which addition is, under the common law, that if default is made and...
-State And Municipal Bonds
State and Municipal Bonds Coupon and Registered Bonds A generation ago it was common, more especially in the middle west, for municipalities to issue bonds to aid in the construction of ra...
-Bond Issues
Bonds of Private Corporations Income Bonds Mortgage bonds may be secured upon lands, buildings, manufacturing plants, telephone and telegraph systems, street car lines, franchises, toll ro...
-Reorganization. Securities And Investments. Chapter XXXV. Bonds, Stocks And Mortgages. Governments; State And Municipal; Kinds of Mortgage. Securities
By the term securities we usually mean stocks or bonds of corporations, either public or private, and mortgages upon real estate. These are evidences of property, and in the eyes of the law are regard...
-Local Securities
Leaving now the consideration of the securities of public corporations, we come to that larger class of mortgage securities based upon private property, either corporate or individual. Mortgage securi...
-Disposition to Pay. Commercial Credits. Chapter XXXVI. Our Credit System. Assets; Losses; Limit Of Credit; Machinery Of Credit
The wonderful commercial progress and development of this country during the past century has astonished the old world and amazed even ourselves. In looking about for the moving causes which ha...
-US Credit System. Assets; Losses; Limit Of Credit; Machinery Of Credit. Continued
The nature of the assets should be considered, however, as this may vary the amount of shrinkage greatly. If the assets consist largely of staple merchandise and secured notes or accounts, the shrinka...
-Credit Associations
In extending credit to a co-partnership some factors enter into the problem which do not appear in the case of a single individual. In order that a partnership may be successful in business it is esse...
-Purchase And Sale Of Real. Estate. Chapter XXXVII. Landed Property. Titles; Values; Ninety-Nine Year Leases; Mortgages
Private ownership in land is a recognized right among all civilized governments and people. Titles are derived originally from the government,* which continues to be the paramount owner of the land un...
-Landed Property. Titles; Values; Ninety-Nine Year Leases; Mortgages. Continued
The most desirable form of investment in property, and by far the safest, is to purchase land and then lease it for a long period, usually ninety-nine years, the lessee or lessees agreeing to pay gene...
-Fire Insurance. Chapter XXXVIII. Indemnity For Loss By Fire. History; Classes Of Companies; Risks; Rates
In the Wealth of Nations the author* expresses the philosophy and purpose of fire insurance in the following: The trade of insurance gives great security to the fortunes of private people, and by ...
-Indemnity For Loss By Fire. History; Classes Of Companies; Risks; Rates. Continued
The rate, which is the prime factor in the estimation of the insurer, may be determined in either one of two ways. First, it may be made arbitrarily upon the judgment of a competent and experienced pe...
-Chapter XXXIX. Fire Insurance - Continued. Boards Of Underwriters; Co-Insurance; Losses
Boards of Underwriters are associations composed of the representatives, managers or agents of insurance companies doing business within the state in which the association has jurisdiction. Such board...
-Insurance Policies
It is desirable, on occasion, for an insurer to secure a policy covering property indefinitely located, as, for instance, covering merchandise, being received at and shipped from freight depots and do...
-Life Insurance. Chapter XL. Indemnity Against Misfortune. History; Methods; Kinds Of Companies; Kinds Of Policies
Life insurance is the combination of prudent men against misfortune. It is an invention of civilization and a practical application of the principle of co-operation, by which many contribute small sum...
-Life Insurance History; Methods; Kinds Of Companies; Kinds Of Policies. Continued
Life insurance policies may be divided into four general classes, viz: Term, Life, Limited Life and Endowment. Any of these may be purchased by a single payment of premium, but the usual method is to ...
-Chapter XLI. Life Insurance - Continued. Premiums; Dividends; Loans; Annuities; Assessment. Insurance
Industrial Insurance Premiums are payable on definite days and unless the policy provides otherwise, the payments must be made with absolute promptness. A grace of thirty days is allowed under some...
-The Stock Exchange. Chapter XLII. Dealing In Securities. Incomes; Investments; Speculation; Gambling In Stocks
Annuities Assessment Insurance From the time when the first company was formed and its capital represented by shares, which were offered to the public, or the first responsible government issued...
-Dealing In Securities. Incomes; Investments; Speculation; Gambling In Stocks. Continued
From an investment to a speculation is only a short step. A. buys a share of stock or a bond, pays for it, and lays it aside in order to derive an income from it. That is an investment. B. buys a s...
-Chapter XLIII. The Stock Exchange. Broker; Bulls And Bears; Listing Securities
The stock broker acts as the middleman in negotiating contracts between buyer and seller, but in a legal sense is the agent of only one party to the transaction. Since the trader must rely very largel...
-The Stock Exchange. Broker; Bulls And Bears; Listing Securities. Continued
No one but members are allowed upon the floor of the exchange. All buying and selling, or agreements to buy and sell are made by oral contracts. The member making the offer specifies the number of sha...
-The Produce Exchange. Chapter XLIV. Board Of Trade. Character; Organization; Members; Benefits To Public
The United States has never, thus far, been a great manufacturing country. Its commerce and wealth are chiefly based upon the products of the soil. Its mining and lumbering interests have been small c...
-Margins
The customer may feel that he can not or will not risk more money on his open trades and orders them closed at a loss. If customers do not respond to margin calls the house with the open lines on its ...
-Benefits of the Exchanges. Chapter XIV. The Produce Exchange - Continued. Cash Grain; Futures; Inspection; Bucket Shops
Although about ninety per cent. of the contracts made on any exchange are in futures there must always be the very important basis of cash business. Without the actual property the contracts for fut...
-The Produce Exchange - Continued. Cash Grain; Futures; Inspection; Bucket Shops. Continued
Assume that the original trades stood on the books without any offsetting transactions until delivery day, the last day of the month named in the contracts. Then at that date, under the rules, the b...
-Grain Inspection
Raising the Grade Before concluding this discussion of the Produce Exchange it may be proper to refer to a species of gambling conducted under the semblance of grain trading, and known as the opera...
-Storage And Warehousing. Chapter XLVI. Bonded, Private And Cold Storage Warehouses. Importation Of Goods; Classes Of Bonded Warehouses; Restrictions; Cold Storage System
It is frequently not convenient for an importer to pay the duty upon an invoice of foreign goods immediately upon their arrival. He may have imported the goods to meet a demand several months later. H...
-Bonded, Private And Cold Storage Warehouses. Importation Of Goods; Classes Of Bonded Warehouses; Restrictions; Cold Storage System. Continued
Manufacturing Bonded Warehouses. A manufacturer may pay the duty on raw material imported, manufacture it into a finished product, ship this to a foreign market and receive a refund of the duty pai...
-Transportation By Rail. Chapter XLVII. Railroading. Railroad Ownership; Capitalization; Traffic Associations; Pooling; Differential Rates; Etc
In 1830 there were thirty miles of railroad in the United States. This had increased to 9,000 miles in 1850, to 53,000 in 1870 and to 192,162 in 1900. The total railroad mileage of the world in 1900 w...
-Railroading. Railroad Ownership; Capitalization; Traffic Associations; Pooling; Differential Rates; Etc. Continued
Another condition which has contributed powerfully towards the general efficiency of the railways of the United States during the past third of a century has been the consolidation of companies and co...
-Exceptions to a General Rule. Chapter XIVIII. Transportation By Rail - Continued. Classification Of Freight; Freight Rates; Cost Of Service; Etc
While it is strictly true that a decrease in transportation charges causes, as a rule, an increased demand for the products shipped, nevertheless this rule is not an invariable one. There are commodit...
-Transportation By Rail - Continued. Classification Of Freight; Freight Rates; Cost Of Service; Etc. Continued
Commodities of low value are carried at low rates also on account of the large volume of that traffic and the slow speed of the trains. Thus coal trains run at low speed, while trains loaded wi...
-Foreign Commerce. Chapter XLIX. Trade Relations With Foreign Countries. Duties; Reciprocity; Bounties; Subsidies; Naval. Protection
We scarcely realize to what extent we are dependent upon the products of distant countries and climes for the comforts which we are constantly enjoying. The clothing which we wear may be from wool gro...
-Trade Relations With Foreign Countries. Duties; Reciprocity; Bounties; Subsidies; Naval. Protection. Continued
Navigation and tonnage laws have at different periods been resorted to by this and other countries as a means of fostering shipping and encouraging foreign commerce. Soon after our Constitution was ad...
-Chapter L. Foreign Commerce - Continued. International Law; Treaties; Consular Service; Foreign. Exchange
The law of nations is a system of usages, customs and opinions founded upon the general principles of right and justice as understood in this enlightened age, and which has become established by the g...
-Clearance Of Ships. Foreign Exchange. Chapter LI. International Settlements. Interchangeable Values; Mint Parity; Arbitrage; Gold. Shipments
When a vessel is completely loaded the master must, before being allowed to sail, receive his clearance papers from the port authorities. The permit to sail is based upon the captain's report of cargo...
-International Settlements. Interchangeable Values; Mint Parity; Arbitrage; Gold. Shipments. Continued
Methods Arbitrage As the exchanges are above or below these points, they are said to be in our favor or against us, and this is the only real indication of balance of trade conditions, as publis...
-Basis of Exchange. Chapter LII. Foreign Exchange Instruments Of Exchange; Quotations; The Arithmetic Of Exchange
A further factor, and one of considerable importance in its effects upon trade balances, at least as far as this country is concerned, is the personal expenditure of travelers abroad. It is roughly es...
-Foreign Exchange: Quotations; The Arithmetic Of Exchange. Continued
In the foregoing only the three principal, commercial countries have been considered on account of the limited space, but the principles as applied are the same in other countries, barring, of course,...
-Arithmetic Of Exchange
Simultaneously an offer was received from a Berlin bank to buy 90 d/s bills on London at 2032, or 20 Marks 32 pfennige per , which price included stamps, brokerage and discount. However, the money wa...









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