There are companies which will insure a manufacturer, or wholesaler, against loss arising from selling goods on credit. The usual method is for the wholesaler to show his average loss for the past five years, and for the company to insure him for annual losses in excess of that amount. He, very likely, will be required to sell to retailers of a certain commercial rating (see " Commercial Agencies "), and the premium charged may depend upon the grade of rating allowed. The amount of credit allowed to any one purchaser is dependent upon the size of the policy, and the rating of the debtor.
One of the French banks, corresponding to the joint-stock banks in London. It holds the same relation to the Bank of France as do the English banks to the Bank of England. The head office is in Lyons, but its principal business and most important position are in Paris.
See " Clearing-house."
A signed statement by certain persons especially selected or appointed, or a certain committee authorized so to do, that they have witnessed the burning (total destruction by fire) of the securities or papers named in the certificate.
See "Movement of the Crops."
See "Mark Signature."
An English custom. When the maker of an ordinary check draws bars, i. e. parallel lines, across its face it is understood that the person to whom it is payable cannot collect it directly of the bank upon which it is drawn, but must do so through some other bank or banking house. By this plan the payee will be obliged to seek a bank at which he is known and which will accept his indorsement as satisfactory evidence of the maker's credit.
When the two bars have " & Co.," between them, the check is said to be " crossed in blank," and may be presented at any bank other than the one on which it is drawn, but when the maker wishes it presented at some particular bank, he stamps across its face the name of such bank, and the check is then " specialized."
The above method is a safeguard against checks being cashed when in the hands of illegal holders.
See "Crossed Check."
See "Triangular Operation."
The same as " cross trade," to which refer.
An English coin equal to five of their shillings or $1.216 in United States money. Also the monetary units of Austria-hungary, Denmark, Norway, and Sweden, the first being equal to $0.203, the other three $0.268 in United States money.