" In the Red." (See " Profit and Loss.")


Same as " callable."

Redemption Agent

Same as " clearing-house agent."

Redemption Bonds

Issued to redeem - pay off - other bonds which are due or which the company or municipality has the right to prepay before maturity. Same as " Refunding "bonds.


It being understood that when a note is "discounted" that the interest upon the same is deducted by the lender from the amount loaned, it must be clear that "re-discounting" is the act on the part of the holder of a "discounted note" of negotiating the same; that is, he again "discounts" it; i. e. "re-discounts" it. Of course he must indorse if drawn so as to require it.

This is a very common practice for banks to "re-discount" notes which they hold when they need more available cash.

The method of borrowing between banks may not be strictly a "re-discount." The country bank, for illustration, may simply make an over-draft on its city depository. Or it may take "discounted paper" of its own and deposit it as collateral with its city depository together with its own note as an evidence of indebtedness. Still another way is to borrow on its own "certificate of deposit."


The elimination from bullion of all base metals.


Issuing a new lot of bonds to take the place of those falling due, and which for inability, or other reasons, the corporation or municipality is not to pay off in cash. Suppose, for example, a city has some bonds maturing which were previously issued for " Water Works; " the city brings out a new issue to replace them; this new issue ought to be called "Refunding Water," it may, however, be called simply "Refunding."

It is always advisable to ascertain the nature of the debt being "refunded" and to assure oneself that it was originally contracted for a proper purpose. This is one reason why it is well that the name be specifically set forth in the bond, as above suggested. It is desirable that the attorney examining into the legality of a " refunding" issue should likewise investigate the legal status of the old debt. The term also applies to the new bonds of which the proceeds are used to pay off the old bonds.

Refunding First Mortgage Bond

See " First Refunding Mortgage Bond." The two titles are quite distinct in their meaning.


The "ticker" and general abbreviation for "registered."

Registered Coupon Bond

A bond described under "registered bond." The principal alone is registered, the coupons being payable to bearer, and the interest collected by detaching and presenting the same for payment. The interest on the ordinary "registered bond" is remitted to the registered holder by check.