SYNOPSIS FOR REVIEW. 1. Defs. 2. 648. 3. 649. 5. 651. 6. 652. 1. Corporation. 2. Charter. 3. Capital Stock 4. Certificate of Stock, or Scrip. 5. Share. 6. Stocks. 7. Stockholders. 8. Par Value. 9. Market Value. 10. Premium, Discount, Brokerage. 11. Stock Broker. 12. Stock jobbing. 13. Installment. 14. Assessment 15. Dividend. 16. Net Earnings. 17. Bond 18. Dif. Kinds of U. S. Bonds. 19. Cou pon. 20. Currency. 1. Insurance. 1. Defs. 2. Insurer or Underwriter. 3. Policy. 4. Premium. 5. Fire Insurance. 6. Marine or Inland Insurance. 2. Corresponding Terms in Percentage. 3. 664. 1. Defs. 1. Life Insurance. 2. Term Life Policy. 3. Whole Life Policy. 4. Endowment Policy. 5. Dividend. 6. Table of Mortality. 7. Table of Rates. 2. 675. Rule. Formula. 1. Defs. 2.685. 1. Tax. 2. Poll Tax. 3. Property Tax. 4 Real Estate. 5. Personal Property. 6. Assessor. 7. Collector. 8. Assessment Roll 9. Rate of Property Tax. (Sum to be raised. Formula. To find {Amt. of Tux. Rule, I, II, III. EXCHANGE 687. Exchange is the giving or receiving of any sum in one currency for its value in another. By means of exchange, payments are made to persons at a distance by written orders, called Bills of Exchange. 688. Exchange is of two kinds, Domestic, or Inland, and Foreign. 689. Domestic or Inland Exchange relates to remittances made between different places in the same country. 690. Foreign Exchange relates to remittances made between different countries. 691. A Bill of Exchange is a written request, or order, upon one person to pay a certain sum to another person, or to his order, at a specified time. An inland bill of exchange is usually called a Draft. 692. A Set of Exchange is a bill drawn in duplicate or triplicate, each copy being valid, until the amount of the bill is paid. These copies are sent by different conveyances, to provide against miscarriage. 693. A Sight Draft or Bill is one which requires payment to be made "at sight," that is, at the time it is presented to the person who is to pay it. 694. A Time Draft or Bill is one that requires payment to be made at a certain specified time after date, or after sight. 695. The Buyer or Remitter of a bill is the person who purchases it. The buyer and payee may be the same person. 696. The Acceptance of a bill or draft is the agreement by the drawee to pay it at maturity. The drawee thus becomes the acceptor, and the bill or draft, an acceptance. 1. The drawee accepts by writing the word “accepted” across the face of the bill, and signing it. 2. Three days of grace are usually allowed on bills of exchange, as well as on notes. When a bill is protested for non-acceptance, the drawer is bound to pay it immediately. 697. The Par of Exchange is the estimated value of the coins of one country as compared with those of another. It is either intrinsic or commercial. 1. The Intrinsic Par of Exchange is the comparative value of the coins of different countries, according to their weight and purity. 2. The Commercial Par of Exchange is the comparative value of the coins of different countries, according to their market price. 698. The Course or Rate of Exchange is the current price paid in one place for bills of exchange on another place. This price varies according to the relative conditions of trade and commercial credit at the two places between which the exchange is made. Thus, if New York is largely indebted to London, bills of exchange on London will bear a high price in New York. 699. $500. FORMS OF DRAFTS AND BILLS. A SIGHT DRAFT. NEW YORK, July 1, 1874. At sight, pay to the order of WILLIAM THOMPSON, five hundred dollars, value received, and charge to the acct. of HENRY J. CARPENTER. To HARRIS, JONES & Co., Cincinnati, O. 99.66 Other drafts have the same form as the above, except that instead of the words "at sight," days after date," are used. after acceptance. days after sight," or When the time is after sight, it means £700. SET OF EXCHANGE. NEW YORK, August 1, 1874. At sight of this FIRST of Exchange (Second and Third of the same tenor and date unpaid), pay to the order of Samuel Monmouth, Seven Hundred Pounds Sterling, for value received, and charge the same to the account of MORTON, BLISS & Co. MORTON, ROSE & Co., London. The above is the form of the first bill; the second requires only the change of "FIRST" into SECOND," and instead of "Second and Third of the same tenor," etc., "First and Third." The Third Bill varies similarly. DOMESTIC OR INLAND EXCHANGE. The course of exchange for inland bills, or drafts, is always ex. pressed by the rate of premium or discount. Time drafts, however, are subject to bank discount, like promissory notes, for the term of credit given. Hence, their cost is affected by both the course of exchange and the rate of discount for the time. WRITTEN EXERCISES. 700. What is the cost 1. Of a sight draft on New Orleans for $1750, at 11% premium? OPERATION.-$1750 × 1.01 = $1771.871. (512.) FORMULA.-Cost Facc x (1+ Rate of Premium. 1 Rate of Discount. 2. Of a sight draft on Troy for $1590, at 11% discount? 3. Of a draft on Boston for $1650, payable in 60 days after sight, exchange being at a premium of 1%? OPERATION.-$1.0175 $.0105 $1.007 Course of Exchange. Bank Dis. on $1, for 63 da. Cost of Exchange, for $1. $1.007 × 1650 = $1661.55, value of Draft. 4. Of a draft on New York at 30 da. for $4720, at 11% premium? 5. Of a draft on New Orleans, at 90 da., for $5275, int. being 7%, and exchange 1% discount? 6. Find the cost in Philadelphia of a draft on Denver, at 90 da., for $6400, the course of exchange being 101? 7. What must be paid in New York for a draft on San Francisco, at 90 da., for $5600, the course of exchange being 1021%? 701. Find the Face 1. Of a draft on St. Louis, at 90 da., purchased for $4500, exchange being at 1011% ? |