This section is from the book "Money And Investments", by Montgomery Rollins. Also available from Amazon: Money and Investments.
Where speculation or trading in cotton goes on in New York.
This exchange was founded in 1870 and the largest of its kind in this country.
When such a statement as this is made, it means that the demand at Chicago for exchange on New York, i. e. "New York funds," was just about equal to the supply; the Chicago banks carrying deposits in New York City were perfectly willing to exchange, without charge, checks against those accounts for cash or checks on local banks.
There are several methods of computing time for which interest is figured, and fully explained under the subject "Interest."
The "New York Method," so-called, is undoubtedly the correct one and usually followed in Canada. In this case, the time of computation is based upon the actual number of days elapsed; that is to say, if a note were dated March 1st, and due July 7th, the time upon which to compute the interest would be figured as:
31 days in March; 30 days in April; 31 days in May; 30 days in June; 6 days in July. Total, 128 days.
After obtaining this result, an interest table is used based upon there being 365 days in the year, or, in other words, the yearly interest rate divided by 365 gives the rate for one day.
To be consistent in the use of this method, a 366-day table should be used for leap years, and such tables are in vogue.
This corresponds to the Chicago Board of Trade, and it is where transactions in grain, cotton seed oil, pork, lard, etc., take place.
(See "Stock Exchange.") This is a voluntary association, not corporation.
See
"Commission."
A small coin of the United States of the value of 5 cents, containing 57.87 grains of fine copper and 19.29 grains of nickel. "Legal tender " to the extent of 25 cents.
See last subject.
The New York, Chicago & St. Louis R. R. Co.
A bill of exchange (see " Exchange ") may be drawn payable in ninety days after date, but it is more customary to draw them payable ninety days " after sight; " that is, after presentation. If in the latter form and drawn on England, roughly speaking, ten days may be reckoned as the time elapsed after drawing before presentation, and as the three days "grace" is allowed there on time bills, it would make a total of approximately one hundred and three days before actual maturity.
Bills of this kind are called " Nineties."
Stamped across a check to show that the "drawer" has no account at the bank against which it was drawn.
 
Continue to: