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18. With the proceeds of Louisville & Nashville stock which I sold at 525, I purchased $21000 in Rock Island 5's, at 1007. What was the par value of the stock sold, brokerage %?

19. What is the total par value and the total market value of 50 shares Amer. Ex., at 114; 125 shares Adams Ex., at 146}; 200 shares Chicago Gas, at 734; 150 shares N. Y. C. & St. L. 1st preferred, at 65.

20. Jones bought 100 shares of railroad stock paying a regular annual dividend of 4%, at 75. Smith bought the same number of shares of bank stock paying 8% dividend, at 123. Which made the better investment, and what per cent. better?

21. I bought Canadian Pacific stock at 65, which paid regular annual dividends of 4%. What rate per cent. of income will I receive on my investment?

22. Purchased 1000 shares of Amer. Sugar Refinery at 80%; 500 shares General Electric at 377; 125 shares of Manhattan Elevated at 1135. Sold the Sugar at 811, the General Electric at 37), and the Manhattan at 1131. What was the net gain or loss, brokerage 1% each way, no interest?

23. Jones bought Ches. & Ohio bonds at 25% below par and by so doing realized 8% on his investment. He also purchased Texas Pacific bonds bearing the same rate of interest at 15% below par and received on these an annual income of $1800. What did he pay for the Texas Pacific bonds?

24. I own 150 shares of Western Union Telegraph stock, for which I paid $13500. If I realize 5% annually on my investment, what is the rate per cent of dividend?

25. A capitalist invested $5306.25 in “industrial” stock at 106, paying 9% annual dividends; $2678.13 in U. S. cur. 6's, '97, at 107; $5012.50 in express stock at 50, annual dividends 3%; and $7471.88 in railroad stock, at 997; annual dividends 4%; brokerage 5%. How much was invested, and what was the total annual income?


866. Exchange is a system by which debts are paid in distant places without the transmission of money. This is done by the meanss of written orders called Bank Drafts, Bills of Exchange, Commercial Paper, Express Orders, Telegraphic Money Orders and Post Office Money Orders.

867. Bills of Exchange are classed as Domestic or Inland, and Foreign.

868. Domestic Bills of Exchange are those payable at some place in the same country in which they are drawn.

Domestic Bills are called Drafts whether drawn at sight or on time.

869. Foreign Bills of Exchange are those payable at some place in another country.

870. A Place of Exchange is some great money center.

The principal centers of exchange in the United States are New York, Boston, Philadelphia, Chicago, St. Louis, Baltimore, Cincinnati and San Francisco. Those of Europe are London, Paris, Antwerp, Geneva, Amsterdam, Hamburg, Frankfort, Bremen, Berlin and Vienna,


871. A Bank Draft or Domestic Bill of Exchange is an order written by one bank directing another bank to pay a specified sum of money to a third party or to his order. Following is a form of



To Ninthew Formal Bank, }


No. 769,

ROCHESTER, N. Y., Nov. 18, 1894, PAY TO THE ORDER OF Williamson Publishing Co.,

$155.86, One Hundred Fifty-five.

86 Dollars. To Ninth National Bank,

New York.

Cashier. Nearly all banks keep money deposited with some one bank, called a correspondent, at one or more commercial centers, against which they draw drafts to sell to their customers for remittance to creditors; these drafts pass as cash in the section of country tributary to the commercial centers where the banks are located upon which the drafts are drawn.

872. Commercial Paper consists of Sight and Time Drafts drawn by one person or firm, called the drawer, directing a second person or firm, called the drawee, to pay to a third person or firm, called the payee, or to his order, a specified sum of money. Following is a common form of




ALBANY, N. Y., Dec. 1, 1894. At one day's sight

Pay to the order of M. F. Brownell & Son, Four Hundred Eighteen.

.and 10Dollars, and charge to the account of

W. B. REYNOLDS & Co. Newark, N. J.

Bank drafts are drawn against cash balances on deposit, while commercial drafts are drawn to collect a debt due.

873. United States Post Office Money Orders are drawn by the postmaster, or his clerk, at one office, directing the postmaster of another office to pay to the person named in his private letter of advice, the sum specified in the order.

Applications for money orders must be in writing, and must state the amount of each order wanted, the name and address of the person to whom the order is to be paid, and the name and address of the remitter. Application blanks may be obtained at any money order office The maximum amount for which a single money order may be issued at an office designated

Money Order Office” is $100, and at an office designated as a “Limited Money Order Office,” $5. When a larger sum is to be sent, additional orders must be obtained

But postmasters are instructed to refuse to issue in one day to the same remitter, and in favor of the same payee, on any one post office of the fourth class, money orders amounting in the aggregate to more than $300, as such office might not have funds sufficient for immediate payment of any large amount.

The payee who desires a money order to be paid to another person must fill in and sign the form of transfer which appears on the face of the order. More than one transfer is prohibited by law.

If a money order is lost, a certificate should be obtained from both the paying and issuing postmasters that it has not been paid, and will not be paid, and the Department at Washington will issue another on application. If a money order is not collected within one year from date, it is invalid, and can be paid only by the Department at Washington on application through the issuing or paying postmaster.

as a



INTERNATIONAL. For $2.50 or less 3 cents. For $10.00 or less

10 cents. Over $ 2.50 to $ 5.00..-- 5 cents. Over $10.00 to $ 20.00 ------- 20 cents. Over $ 7.00 to $ 10.00.... 8 cents. Over $20.00 to $ 30.00.. 30 cents. Over $10.00 to $ 20.00.... 10 cents. Over $30.00 to $ 40.00. -40 cents. Over $20.00 to $ 30.00... 12 cents. Over $40.00 to $ 50.00. -50 cents. Over $30.00 to $ 40.00... .15 cents. Over $50.00 to $ 60.00.. - 60 cents. Over $40.00 to $ 50.00.------18 cents. Over $60.00 to $ 70.00---- 70 cents. Over $50.00 to $ 60.00.. 20 cents. Over $70.00 to $ 80.00 -80 cents. Over $60.00 to $. 175.00. -25 cents. Over $80.00 to $ 90.00... -90 cents. Over $75.00 to $100.00..-----30 cents. Over $90 to $100.-... 1 dollar.

The above and following tables of rates are given to aid the student in working the examples relating to money orders in this subject. These rates, while current at the time of the writing of this chapter, are subject to change, and hence should not be regarded as authentic by the business man, until verified.

874. An Express Money Order is an order drawn by the agent of an express company at the office where the order is bought, directing another agent of the company, at some place designated, to pay to the person named therein a certain sum of money.

Express orders are transferable by indorsement the same as checks.


Payable in U. S., Canada or Europe. Not over $5.00.--

5 cents. Over $ 5.00 to $10.00... 8 cents. Over $10.00 to $20.00.. .10 cents. Over $20.00 to $30.00. 12 cents. Over $30.00 to $40.00. 15 cents.

Over $ 40.00 to $ 50.00...--18 cents.
Over $ 50.00 to $ 60.00 --- 20 cents.
Over $ 60.00 to $ 75.00... _25 cents.
Over $ 75.00 to $100.00 ------30 cents.
Over $100.00 at above rates.

875. Telegraphic Money Orders represent a system of exchange by which the remitter sends a message to the payee, directing him to call at a certain telegraph office for the sum named therein. The telegraph agent at the sending office instructs the agent at the receiving office, to pay to the person named in the message, the sum specified, upon his personal application and proper identification.

Express companies also contract to transmit orders for funds by telegraph, but instead of requiring the payee to call for the funds in person, they deliver them to him at his residence or place of business.

TELEGRAPHIC TRANSFER RATES. For not more than $50, 50¢; $50 to $100, 1%; $100 to $200, $1.25; over $200 to $300, $1.50; over $300 to $400, $1.75; over $400 to $500, $2.00; over $500, special rates.

The above rates are in addition to cost of telegraphic service, which is based upon distance and the number of words contained in the message.

876. To Find the Cost of Domestic Exchange.

EXAMPLE.—A hardware merchant of Toledo, Ohio, owes Morgan & Co., of Taunton, Mass., an account of $750. He buys of his banker a draft on the Commercial Bank of New York, at a cost of 10€ per hundred. How much did the draft cost?

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Rule.-Add to the face of the draft, the charge for drawing same; the sum will represent the cost of the draft.

Formerly domestic exchange was at a premium or discount in the city where purchased, according as the balance of trade between that city and the one on which the draft was drawn,

was in favor of or against the former city. If the drawer city owed the drawee city, exchange on the latter would be at a premium in the former. If the balance of trade was in favor of the drawer city, the conditions of exchange would be reversed in the two places.

For several years past, however, domestic exchange has been practically at par throughout this country. Bankers usually make a charge, called “exchange,” for the trouble of keeping funds at commercial centers and drawing drafts against these funds, and also one, called “collection," for collecting drafts deposited with them payable at banks outside of the section in which the banks receiving them are located, or where they have no regular correspondents. Some bank drafts, as those drawn on New York, are current at par almost everywhere in this country.

Some banks make no charge for domestic exchange to regular depositors.

Instead of making remittances by exchange, merchants often send their personal checks in payment of bills. These, having to be returned for collection, command a small charge, as 15¢ or 20¢ on each check, and not a per cent, on the amount.

877. To Find the Cost of Exchange by Express Money Orders, U. S. Money Orders and Telegraphic Money Orders.

EXAMPLE.—W.J. Boone & Co., of Bandon, Oregon, have bills to pay as follows: T. W. Brooks, Dayton, O., $650; E. L. Greyson & Sons, Rosedale, Oregon, $45.53; Barnes & Snyder, Bolton, Mo., $48.50; and their traveling salesman, W. H. Post, is wanting $100 for expenses at Denver, Colorado. They pay the amounts by remitting as follows: T. W. Brooks and E. L. Greyson & Sons, express money orders; Barnes & Snyder, P. O. money order, and W. H. Post by telegraphic transfer in a 10-word message, the message costing 50¢. Find the total cost of the remittances.

Express orders:
Dayton remittance, $650.00

Exchange, 1.98 $651.98
Rosedale remittance, $ 46.53

Exchange, 18 = $ 46.71
U. S. money order:
Bolton remittance, $ 48.50

Fee, .18 = $ 48.68
Telegraphic transfer:
Agent's remittance, $100.00

commission, 1%, 1.00
cost of message,

.50 = $101.50


EXPLANATION.- By the table of rates under Art. 874, the cost of $650 in express order is $1.98 (30¢ on each $100 and 18€ on remaining $50) and the total cost of the remittance to Dayton is therefore $651.98, and to Rosedale, $46.71. The fee on U.S. money orders being 18¢ for sums over $40 and less than $50, the order on Bolton costs $48.68. The rate for sending money by telegraph being 1% on sums of not more than $100, and the cost of the service being 50¢, the total cost of the remittance to the agent at Denver is $101.50. The total cost of exchange for the bills paid is $848.87.

Rule.-I. To find the cost of a remittance by express order or P. O. money order: Adil to the sum remitted the exchange as determined by the table of rates.

II. To find the cost of telegraphic transfer of money: Add to the sum transferred the commission, as determined by the table, and the cost of sending the message.

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