A COUNTING-HOUSE GUIDE CONTA.ININO COPIES OF THE CHIEF COMMERCIAL DOCUMENTS NOW GENERALLY USED TOGBTHEB WITH PRO forma invoices, ACCOUNT SALES, ETC., AND USEFUL BUSINESS TABLES AND CALCULATIONS BY W. G. COEDINGLEY, AUTHOR or “ OORDINQIiEY H COMMERCIAL GUIDE,” ** COMMERCIAL TERMS, FHRASE8 AND ABBREVIATIONS,” “ CORDINOLEy’s GUIDE TO THE STOCK EXCHAN<»E,” “ CORDINOLEv’s DICTIONARY OF STOCK EXCHANGE TERMS,” ETC., ETC. LONDON EFFINGHAM WILSON 11 ROYAL EXCHANGE, E.C. 1901 PREFACE. The publisher of Tate’s Counting -home Guide has felt that in its present form the book was getting somewhat out of date, and to take its place I have therefore, at his request, written the following Counting-home Guide according to the principles and practice now generally followed by the mercantile community here. One of the chief features of the work is the insertion of copies of the chief documents now used in general commercial transactions, and these, I feel sure, will be found a valuable addi- tion to the book. In arranging the classification of the various subjects treated, I have consulted The Merchants Clerk ; The Work of a Bank ; Hills, Cheques and / O IPs ; and The Monet/ Market Primer by the s|.me publisher. r vi PREFACE. I trust the book will be found to answer its title, and as the information given is written after a long practical acquaintance with all branches of mercantile affairs, I sincerely hope the work will merit the confidence so long en- joyed by the book it is written to replace. W. G. CORDINGLEY. September^ 1901 . CONTENTS. CHAPTER 1. t PAGE Invoices ft ft ft ft ft ft • ft • 1 Statements . • « ft ft ft ft ft ft ft 2 Debit Note . « a ft • • ft ft ft ft ... 3 Credit Note ft • ft • ft ft 4 Account Current .. • • ft ft ft ft 4,5 Interest in • • • ft ft ft ft ft ft 6-17 Interest in Banking Accounte .. ft ft ft 16-20 Bank Holidays • • • ft ft 21 Divisors for Interest Numbers — How to find ft ft ft ft 21, 22 List ot . ft ft ft 23 Account-Current • ft ft 24 Goods on Consignment • ft 25 Account-Sales • ft ft 26-29 Pimento ft • ft ft 30 Cochineal ft ft ft 31, 32 Elephants’ Teeth ft ft ft ft ft ft 33 Tobacco ft ft ft 34, 36 Tobacco ft ft • 36, 37 Olive Oil ft ft • 38-40 French ft ft ft ft ft 41, 42 Coal * ft ft ft ft • • • 42. 43 Pro Pormfl Accounts ft ft ft • 44 Discount ft ft • 44 * How to Calculate • • ft 45 Percentages • ft 46 Interest ft ft ft 46 Simple ft 47 Compound • ft ft ft . 47 Shipping Specifications * • » ft ft ft ft ft ft 48-50 ^SPrice Current » • ft ft ft ft 51 V]]l CONTENTS. PAGE Circulars and Market Reports . .... ... . 52, 53 Contract Notes ... . .... . .64 With a Prompt . ...... 55 Brokers . ..56 Order Sheets .... ... 56, 57 Confirmation Notes . .. 67, 58 Shipping Parcels Receipt . . 58, 59 Sur\'eys ... . 60 Bonded Goods . ... ... 60, 61 Delivery Orders ... . 61-67 Indents 67 - 69 Euquines ... . 70 Quotations . . ..71 Merchant’s Order Sheet 72 Consignment . .73 Note .. 73 Railway Advice ... 73 - 76 CHAI^TER II Shipping Instructions . 77 Shipping Advice . . 78 Invoice . 79 Shippi ug 79 Shipping Card 80, 81 Freight Engagement 81 Freight 81 - 84 Dead . 84 Short Shipment ... . 84 Shipping Clerk's . 85 Shipping 85 Lighterman . 85 Shipping Dof uments . 86 Receiving Note^ 87 Mate’s Rect^ipl 88 Merchant’s Form 88 Shiphroker’s 89 Clauses on a Receipt . .90 Demurrage . 91 Backed Note .. , 91 Broker’s Older . . 91 Wharfinger’s Receipt . 92 Freight Note . ... 95-98 Shipper's Measurements . ... 9f‘ CONTENTS. IX PA(}B Freight Receipt . . .... 98 Bills ot Lading ... . ... .. 98-104 How to Endorse . .. ... 105-107 Freight Release . . 108 A Set of Bills of Lading ..... .... 109 Clean . . . 109 Dirty ... 109 Clauses on . . . 110 - 112 Letters of Indemnity 113 - 115 CHAPTER III Foreign Invoices 115-117 Forwarding Documents .. 118 Consular Invoices 118 - 121 Certifu ate of Origin 122 CHAPTER IV Importing Te CONTENTS XI CHAPTER VII. TAGS Charter Party ... . . .... 201-213 Clauses on .. . ...... . ... 214, 215 CHAPTER VIII. Opening a Banking Account . ... . 216 Paying-m Slips . . .. . 217, 218 Money on Deposit . . .. 218-220 Deposit Receipt . . . .... 220 CHAPTER IX. Cheques . . ... 221-223 Crossed Cheques . .... 224-226 Not Negotiable .. . . .. .. 227 CHAPTER X. Doans . . ... ... 228 On Bonds .. . ... .. 228 On Shares .... .... .... 229 Against Guarantee ... ... ... 232 On Goods ... . ... . .. 233 On Warrants .. . . . . . 233 On Insurance Policies . . 235 CHAPTER XI. Bills of Exchange .. .. . . 237 - 242 CHAPTER XII. Foreign Bills of Exchange . , ... 243, 244 Allonge ... .. 245 Set of Bills of Exchange . . 245, 246 Bill Books 246 Preseutjition tor Acceptance .. . . . 247 Accepting a Bill . . .. 248 A General Acceptance . .. .. 249 A Qualified Acceptance .... . 249 Endorsing a Bill ... ... .. 252-255 Case of Need ... . . 255-263 Usance ..... 259 Maturity of a Bill . .... .... 259 ^esentation for Acceptance ... .. 259 CONTENTS. « • Xll PAOK Protestlug a Bill ... .. ... 260 For Non- Acceptance 260-262 For Non-Payment . 260-262 For better Secunty . . 262 Case of Need . . 263 Acceptance tor Honour 263 Payment for Honour . . . 264 Notice of Dishonour .. 266 Re-Exchange Account . 267 Notary 268 Consul . .. 269 Stamp Duties on Bills of Exchange . 269 Discounting a Bill 270, 271 Table of Days between Dates . 272 Telegraphic Transfers . , 273 Ihromissoiy Notes . 273 -276 Stamp Duties on .. . 274 I 0 U’S 277 Circular Notes 278, 279 Lettei ot Indication ... 279 Letter of Credit 280 Bank Letter of Credit . 281 Marginal Credits . 282, 283 Bank of England 281 Bank Price ot Gold 284 Mint Price ot Gold .. 28,^) Bank Notes 285 Bank of England Notes 285 Bank Ketuni 2Sb Bank Kate . . 287 - 289 Money Market .. 290 Market Kate ot Discount . . 292 Bill Brokers 293 Discount Houses .. 293 CHAPTER XII 1 Rates ot Exchange . 295 Course ot Exchange 295 How Exchanges are Made 297 A Direct Exchange . 297 Balance of Trade 298 Gold Shipments . , 299 How the Price ot Silver Affects the Rates of Exchange 300 CONTENTS. Xlll PACIE How to Calculate Exchanges . 301 Arbitrations of Exchange .. .. 393 Bills of Exchange . . 305 Bullion . 306 Coins .... . . .. 309 Merchandise . . 311 Weights and Measures . ... . 312 Metric System . . . 314 CHAPTER XIV. Percentages of Rates of Exchange . . 316 - 320 Interest on Bills of Exchange . . 321, 322 CHAPTER XV. Arbitrated Prices .. . .. 323 - 325 CHAPTER XVI. Comparison of Direct and Arbitrated Rates of Bills of Exchange 325 - 328 Banking Operations 329 - 335 Arbitrated Rates ot Exchange . . 335 - 343 Foreign Courses ot Exchange .. 343, 344 Coins of Foreign Countries 345 Monetary Tables and Pars of Exchange 346, 347 Exchange Value of Foreign Money , 348, 349 Mint Pars . 350, 351 CHAPTER XVII. Cold and Silver Corns 351 Gold Coins . 352 Silvei Coins . 352 CHAPTER XVIII Bullion 353 Currency . . . 354 Legal Tender . . 354 British Gold Coins . 355 British Silver Corns 355 ^ntish Copper and Bronze Coins . 365 XIV CONTENTS. CHAPTER XIX. PAGE Regulations for the Coinage of Gold and Silver . . 3.5(3 Remedies of Coins .. ..... . ... . .. . . 357 lYial of the Pyx ... . . ... ... 859 Value of British Coins . ... . . 863 Standard Gold .. .. .... . 363 Standard Silver . ... .. . 365 Foreign Reports on the Purities of Gold and Silver . 867 CHAPTER XX Standard ing of Gold and Silver ... . .. 368 Gold and Silver Reports ... . ... 373 CHAPTER XXI The Standards and Regulations, etc For Gold For Silver The Standard Mark The Hall Mark The Duty Mark The Date Mark CHAPTER XXII Mental Calculations of Percentages For 10 per cent. • For 5 per cent • • • For 2h per cent • • • For 2 per cent • • • For per cent. For 1 per cent. For i per cent • • For ^ per cent • For ^ per cent. For ^ per cent CHAPTER XXIII Practice • For Dozens • • « • « • For Scores • • • For Cwt Qrs Lb. • • • For Tons Cwt. Qrs. and Lb. For Ozs. Dwts. Grs. . Rate per £ Percentages 376 377 . . 377 . 380 380 381 381 383 383 . 384 385 386 387 . . 388 389 390 . 391 392 393 393 . 395 ... 396 . 397 398 . 398 . 39f CONTENTS. XV CHAPTER XXIV. PAOK Government Stocks . .. 400 Terminable Annuities ... .. . ... .. .... 403 Exchequer Bills . . ... .. ... 403 Bonds . . . . . . ... 404 CHAPTER XXV. Chain Rule .. .. .. .. .. . .. 405 CHAPTER XXVI. Equation of Payments . . 407 2 A COUNTING-HOUSE GUIDE. Statements. A Statement is an account of floods owin^, and it m either issued to the debtor at regular periods — usually at the end of each month — or is used for each separate transaction, as when goods are sold for cash against documents. Example of a Statement, 22 St Andrew Street, London, E C., 31 sV Decnnhci 1900. Messrs. Black & Co , Lombard Stieet, Pj C l)n to (1 PllATT Fol 34 1900. Dec » 5 To Good >5 1 i 1 84 i 10 i 0 18 ' ' ' If) 3 ! 1 5 n , 1 ^ 1 ' 48 12 9 23 ' , 3 1 5 0 ! ' €152 11 2 The folio No 84 i-s the page lu Page & Pratt’s Account Book When a statement is paid, it is usual to enclose with the cheque a printed form as follows, which pievents a letter being written and sent with every payment. In some establishments, where on pay days a hundred or more cheques are sent out at one time, these pnnted forms are of great value, saving as they do a vast amount of writing. , STATEMENTS. 3 Example of a Printed Form used when sending out Cheques in Payment of Account, 38 Lombard Street, London, E.C. 19 Messrs Dear Sirs, Herewith we beg to hand you clieque for £ in settlement of your account to , as per statement enclosed Kindly acknowledge leceipt and oblige You IS faithfully, Alfred Bird & Co Debit Note. A Debit Note is used when one party doliits another for ^oods sent back, or for any charge to be made on them, and, of couise, the wording of it will vary with each particular case. Example oj a Debit Note, 22 St Andrew Street, London, E C , 1st Jannoty, 1901. Ml. J. WniTK Son, Cannon Stiect, E.C D)s to PAGE A PRATT. Fob 27. 5 0 11 6 16 I 6 The folio No 27 is tlic page in Page & Pratt's Account Book. It should bo noticed that Invoites aic used foi goods, and Debit Notes for the charges, etv*., on them. 1900 flan , shipping cliargcs and caitagc | on 0 cases of bought of ^ you f o b Tiondon Cartage to Docks ... Dock charges .... 4 A COUNTING-HOUSE GUIDE. Credit Note. A Credit Note is used when one party credits another in his books for goods returned, or for any allowance made, and the wording will, of course, depend upon what the credit is for. Credit Notes are usually printed in red ink. Example of a Credit Note, Messrs BiiACK & Co., Lombard Street, E.C, 22 St. Andrew Street, London, E.C., 1st January, 1901. Fol 16 CIS, by PAGE & PRATT 1900 ! Dec. ! 8 By allowance on goods invoiced j this date as follows — 1 Case of returned as not being of the quality ordeiod, i say 2 cwtb 10/- ewt - - 1 ZyfSS 5 ! f 0 1 0 0 m i 19 ! 0 The folio No. IG is the page in Page & Pratt’s Account Books. Account Current. An Account Current, or a Statement of Account, is a copy of a person’s account as shown in another’s ledger ; and it is usual with mercliants here to charge or allows interest on all moneys paid or received on another’s account, the Account Current being made up at regular intervals, or on the termination of any transaction, so that both paities may see the state of their account and pay or receive the difference to regulate it. The interest on each sum is calculated in days at the percentage previously agreed upon. Example of an Account Current. ACCOUNT CURRENT, 5 ■id a o w o 03 03 i D $:] o 4N Eh g3 ^2; ,£> a n o o PQ o « c o O 6 A COUNTING-HOUSE GUIDE. Interest Accounts in Accounts-Current and Balance-Sheets Calculated by Various Methods. The Interest upon Accounts-Current or Kunning Accounts, or in Balance-Sheets, is reckoned in various ways, VIZ. — 1. With respect to the Principals, or the amounts on which the Interest is calculated . in some accounts the Interest is reckoned upon the balances resulting from eacli operation or variation in the account ; l)ut it is the more usual practice to reckon it upon each sum, separately, on each side of the account, placing it in separate columns, and to take the balance of these separate results. 2 and 3 With respect to the time , in most mercan- tile accounts, it is reckoned in days only, but some- times it is reckoned m months and days {See Example 2, on page 9.) 4 and 5. When the Interest is reckoned upon the balances, the time is carried forward from one day of taking the balance to the next ; but w^hen the Interest is calculated upon the separate debits and credits, the time is commonly reckoned backwards from the day of settling the balance (that is the date of the Balano INTEREST ACCOUNTS IN ACCOUl^TS-CURRENT. 7 Sheet or Account-Current) to each of the days in the account ; and, in this case, the Interest on the sums which are due beyond the day of settlement is added to the opposite side of the account, which has the effect of discounting such sums, and rendering them due on the day of the general settlement. Instead of reckoning the Interest backwards, another method of settling accounts reckons the interest forwards, from the pre- vious date of settlement of account, and adjusts the balance accordingly. {See Example 8, on page 10.) 6. In accounts in which the Interest is reckoned in days ; the statements are made out either with the actual amount of the Interest on each sum, or with what are technically called ‘‘Interest Numbers,’' formed from the product of the Principals multiplied by the number of the days, and the balance of the Interest is calculated from the balance of these numbers. The shillings and pence of the Principal, if over 10s., are generally reckoned as £1 in creating the Interest Numbers. Example 1 : First Method . — On the 30th of June, 1BB7, there was due to me, upon an account, a balance of £1,426 16s. 4d ; since which time I have received and paid the following sums, viz. 10th July, I received £1,000, IHth July, I paid £124 7s 6d , 22nd Aug, I received £600 ; 20th Sept , I paid £200 ; 18th Oct., I received £400; 24th Nov., 1 paid £500; 1st Dec., I received £450 , and on 11th Dec. I paid £500. It is required to find the balance of this account. Dr. or Cr., with Interest at 4 made up to 81st Dec , 1887. A COUNTING-HOUSE GUIDE. 8 1887. £ B. D. Days. Dr. Int. Cr. Int. Dr. June 80 1,426 16 4 10 £1 11 3 Cr. July 10 1,000 0 0 Dr. 426 16 4 8 7 6 Dr. July 18 124 7 6 Dr. 661 3 10 35 2 2 3 Cr. Aug. 22 600 0 0 — £ B. D. Cr. 48 16 2 35 3 0 Dr. Sept. 26 200 0 0 Dr. 161 3 10 22 7 3 Cr. Oct. 18 400 0 0 Cr. 248 16 2 37 1 0 2 Dr. Nov. 24 500 0 0 Dr. 261 3 10 7 3 10 Cr. Dec. 1 460 0 0 Cr. 198 16 2 10 4 4 Dr. Dec. 11 600 0 0 Dr. 301 3 10 20 13 2 Dr. Interest 3 17 0 to Dec. 31, 1887, Balance 3 17 0 Dr. Balance £305 0 10 of Acct. £6 5 3 £5 5 3 Dr. Balance of Account, Dec. 31, 1887, £305 Os. lOd. In this mode of making out the account a balance is struck at the time of each receipt and payment ; then the Interest is calculated upon the preceding amount for the time between the two dates, and the Interest is entered in the proper column according as the balance is Dr. or Cr. (that is, for or against the party who makes out the account). To make the Interest totals equal an amount must be added to the smaller sum. That amount is the Balance of Interest. k Example 2. — {Second and Fourth Methods combined ; with Interest Numbers of Sixth Method.) The preceding Account made out in Dr. and Cr. form. INTEREST ACCOUNTS IN ACCOUNTS-CURRENT. d o d o .S .k • 00 Oi 00 lO -2 t- oa r-( CO c8 (D Ph OQ <13 a ce -4J c • 00 00 CO . o o o o . o o o o OQ _888S •-rt o CO o t-i o iQ Q I'O <0 o o & o > o O no cd cd f-i CO OQ C3 1-4 Si S 8 8 S ^ »0 •TS 05 X -43 CC 3 CM to ce to 00 O’ 2^ 05 rO a 3 % X ®4:i 05 O 2 2 J — a d M «.g 05 m X U nH d PQ Example 3 . — (Second and Fourth Methods combined , with Interest Numbers of Sixth Method.) 10 A COUNTING-HOUSE GUIDE. P o C o p o OQ u c8 0 u5 J25 tc ca ^CO ^ CM Q S8 tH »o ^ •» * * t- 00 CO CO CO UO 05 CM CM Ttl CM tc 't^CO00O5rHCOCO'«*i ^ • ^ 05 tH OJ t— ( t- O 95 ^ 2: oc Cl, „ ^ ^ ^ fli - — “ o o ^ m A o ciOOO»-iQDcrjoo ^ rH gJOOC 0 050 COOO O Q CM lO C5 xo O ^ O CO o 00 00 r- o O _Q ^ rQ 9 s cn^ -u. Oh O Q *3 ifl o u O d 'S 15 PP t- ro Tje ?n O --t tH O OS t- OS tH 05 XO cc 00 cn W Q c3 t; c3 3^ oc 00 o p ce .X z> o CO Ei ^ %• X X 15888 Cl uS ■»f O 05" r-T of 3 ^ ss S 8 S X cq cc CO t>^ ¥ 01 Cfj 88 g X X » 0 . 05^ 0 L- CO -rt- ♦ ♦ T. X _ >¥ v-t ^ 3 oj’ « Q r= d QO/^000000000000 X OOQQCnOOOOQO rHXOl 40 > 0 »-lXrMr-» X >0 X cs t- cn 05 SO X X X For the explanation of these tran^fe^red numbers, and general remarks on this account, see next page. EXPLANATION OF THE PRECEDING ACCOUNTS. 11 Explanation of the Preceding Accounts. This Account-Current of Messrs. Hollis & Pearson, the parties making out the account, commences with the balance in their favour on 30th June, 1887, and it is made up to 30th Sept., 1887. There is one item after- wards entered on the Cr. side, which is due previous to the date of the last Balance, vi 2 :., £25 Os. 9d., which is •entered as due to Prada & Co. on 16th Feb , 1887. Such entries occur m business either as corrections to former entries made in error on the opposite side of the account, or as arising out of transactions, which have not come to maturity at the time of striking the previous balance. The days are here reckoned backwards from 30th Sept, to the respective days on which the sums of money are due before that period, and forwards to the days on which the amounts are due after that date ; and each Principal (reckoning 10s and above as £1), is multiplied by the number of the days set against it, to form the Interest Number for that Principal. In this account, the days for the sums not yet due, but for which, notwithstanding, the correspondents Messrs Prada Co. are debited or credited, are severally marked with asterisks, and the Interest Numbers for these sums are entered m a separate column on each side ; but it is to be observed, that it is the practice in business to write these days and numbers m red inky and to enter all the Numbers on each side in one column ; then the amount of the numbers in red on each side is entered on the opposite side (using red ink |or the words in italics in this account, but not for the 12 A COUNTING-HOUSE GUIDE. Numbers, and writing the word red instead of using^ asterisks as necessitated in printing), and a balance is struck and entered of these numbers. The balance of these numbers is then valued, by dividing it by 9125 (the divisor for 4 per cent.), and an entry is made of the amount in the cash column on the opposite side of the account. Whatever further charges or allowances are to be made are then entered on the proper side of the account, and the final balance of the account is taken. In closing this account it therefore appears that, after crediting Messrs. Prada & Co. £10 14s. 7d. for the balance of the Interest account, and that, after adding in the amount to be charged to them for commission and postages, there is finally a balance of £301 10s. 3d. to be carried to their debit in their new account. Before showing another method of working the Interest Calculations, it seems necessary to explain why the Interest Numbers on sums due in advance of the day to which the account is made up, should be entered on the opposite side of the account. It being understood that the Interest Numbers are the representatives of the Interest amounts we have to consider that — Isf, In the practice of making up accounts to a cer- tain day, the balance of the account is the amount then due. 2ndly, By taking off the discount on a sum not yet- due for the time in advance of any day, it is made due on that day . thus, if on the 30th of September a person owes me a sum of money, or in other words, if I have a right to charge his account with any sum which I have engaged to pay for him, say £500, on the 6th of October, I make that sum due on the 30th of Septem-^ EXPLANATION OF THE PEECEDING ACCOUNTS. 13 ber, by allowing him the Interest on £500 for 6 days, which at 4 per cent, is £3,000 divided by 9125, or €s. 7d. ; consequently by deducting 6s. 7d. from £500 due on 6th October, I have £499 13s. 5d. due on 30th September. Srdly, In mercantile practice, instead of making a deduction from one side of an account, the same is effected by making the amount that should be deducted an addition to the opposite side of the account ; for it is the same in effect, to debit a person for £500, and to credit him for 6s. 7d., as to debit him for only £499 13s. 5d , and hence it is, that amount of these numbers is entered on the reverse side of the account to that on which these numbers for days in advance are entered. Instead of this method of reckoning the days back- wards, trom the day of the present settlement of the account, a method has recently been introduced, par- ticularly in ioreign banking accounts, of reckoning the days forwards from the day on which the last balance was taken, and adjusting this result to the proper result, m the manner of the following Example, which will be explained {see page 16), after showing how this method operates upon the sums in the preceding account. It may here bo remarked that the days employed m this next account are either the difference between the days in the last account and the 92 days, the time which this account runs ; or, for the days marked with asterisks, they are 92 days more ; and therefore the sum or difference of the two products equals the product of the principal multiplied by 92. Thus, for the second item on the Dr. side of Examples 3 and 4, which is ^800 due 14th Sept., 1887. 14 A COUNTING-HOUSE GUIDE. In Ex. 3, we have £800 x IG = 12,800 4, „ 800 X 76 = 60,800 The amount is 800 x 92 — 73,600 If the account were for the whole year 1887, the sum or difference would be for 365 days. If for 1888, or any other leap year, it would be for 366 days. In the forms used in Examples 2, 3, 4, the date of entry in the books of the party making out the account is omitted, as being of no importance to the party to whom it IS to be sent ; and the principal sum is placed on the left of the account, to be followed bv the cause of its being charged, by the date when due, the number of the days for which the Interest is reckoned, and the amount of the Interest or its equivalent Interest- Number. Example 4. — (Second and Fifth Methods combined . inth Interest Numbers of Sixth Method,) r. — Messrs Prada & Co , of Eio Janeiro, in account with Hollis & Pearson. — Cr. INTEEEST ACCOUNTS IN ACCOUNTS-CUERENT, 15- 2 SOQiO'^'^OOQOOtH jdOQ>O'^»^‘0C0O'5I0S dt'-OTHiot-ooaot-oao yO'rt.10 +3 ^ ^ “ - - ' o o c a d d 1—4 d d cqp5 SOOOt-hxc^OO cflOocroioooo rH r-4 O Q 'M iC C5 lO O Q •4J>0^-tJ'!N0w Cl ca »r) cr X rH 1 -H -H o o !=J tH O CO QQQQc I -C ^ ^ xocLi»- --*3t)^3^ti0cu'^Oj a XOOOOOOOOOOO T-1 tH »a o o o o o o o o o o o io rH 00 Q Q Q Q 00 Q Q Q O Q O X rHQOOOOiOOO^OO rH H X CM 40 O tH X CN rH X * This number (S/^50) in the Interest column should either be entered in led ink, or be annulled by ciossing it with a line wlien earned to tlie opjiosite side It is not included in the total of the Cr, numbers. I This 1:293 IHs lid is the f)t, Haiance at this point (oi b3,81G 15s 3d. less 43,522 IGs. 4d.) 16 A COUNTING-HOUSE GUIDE, Explanation of the Preceding Account. In this account the days are reckoned from 30th J une, 1887, the date of the last balance, /orz/;arrfs, to each of the days on which the amounts become due (that balance having no Interest to be calculated upon it), and each Principal is, as before, multiplied by its respective number of days to create an Interest Number In this account one sum on the Cr side is due on 16th February, or before the day of the last balance ; the days for this item are therefore calculated back- wards from 30th June to lOth February, and this alone forms what is called a red number to be added to the opposite side, to make it due, like the preceding balance of £118 15s. 3d , on the 30th of June, having also like it no interest or rather discount to be calculated m advance. When these entries of the Interest Numbers have been finished, the balance of the Cash columns is taken and multiplied by the number of the days from the day when the account commences to the day on which it is made up, and the product or inteiest number is added to the OPPOSITE side. (In this account the amount of the Dr side being the greater of the twt) sides, the product or Interest Number is added to the Cr, side.) With this correction the balance of the Interest numbers is then taken and entered, and the anwunt it gives of Interest is extended in the Cash column upon the same side of the account, and not on the opposite side. EXPLANATION OF THE PRECEDING ACCOUNT. 17 To explain the reason that this method shoull^ro- duce the same effect as the preceding plan, we must observe, that by reckoning the days forward, as in this account, from 30th June, and applying the number of these days to the respective sums, we, in fact, reckon the Discount on each, and render them due on the day the account commences ; then, when we strike a balance of the sums, exclusive of the Discount, and calculate the Interest for the days between the two periods of settlement, we add the result to the opposite side. Being interest, its nature is opposite to that of Dis- count ; this correction thus settles the difference be- tween the two methods, and the lialance of the Interest is found as before, but, for the reason above given, it is entered upon the opposite side of the account. The chief advantage of this method is, that the Num- bers in the Discount Columns can at once be filled in ; but this, by using an adjusting entry if required, may also be done with the former method, and the red numbers may m like manner be avoided, by making uj) the account to the last day in it, as m the following example. It 18 proper lurther to remark, that fiom the practice of reckoning iOs. and above as another pound, and rejecting less sums in the calculation of the Interest, and also from the balance being taken independent of these adjustments, a little variation will sometimes arisfe between the results of the two methods; but if the balance be reckoned from the difference in the amounts of the pounds employed, both will agree. 2 18 A COUNTING-HOUSE GUIDE. gOQt-QCNOQQOC j:;r-HrtCL'-O StNlOCOr-tt-t'-O'^t- PtHOiOCOOJ tH cm >-^00 Q5O5Q00Q0COt-Ol^.^:; aj’^OClOTHr— T-* X C5 :: c3 r- X lO ■:m L- X O w :: 2- <> XX) -M U ^ C3 •“ ► ^ 4-» 2^ r-^ w > bc CL, CL-^ G c < X ^2; X m o CLXOOCOOOOOOOO oooooooooooc XQQQQXOQOQQO nature are usuallv madt* ¥ip ('Very six months, to the last dav of June and of Deceni- b('r, and the Jntc'K'st, by being charged to the general account, is then inach ])ait of the Biincipal. For the sake of convenuuice, liowaiver, wa" have taken the account as cmly for three months, or as if opc'iied on Tuesday, 1st April, IS9(). 20 A COUNTING-HOUSE GUIDE. ill the following account are marked by an asterisk in the table of the balances ; and the balance of the preceding Saturday is entered to each Sunday as the balance for another day : — ' I \ PIUI May 1 1 June 1 I Days Dr Or Dr Cr Dr 1 1 1 Cr 1 ‘ 1 ' < 3,972 1 1 1 1,790 ' 1 1,789 2,051 ' 1,955 J 4,0(W) 1 — > 3 — 475 , 4()0 — j 1 628 4 — 1,510 ' * 460 ) ) — 1 329 5 Ill — ' 6,590 ( 500 1 — : 6 ' * Til — ! 2,1.36 — 500 ! — 7 ’ 2,075 — S.58 — 500 ' — i 8 1 945 t 1,120 1 * 500 ! — 4,751 — 1,120 ' 1,784 . — ' 10 , 1,036 1 1 1.120 1,()22 - — ' 11 1,046 1 * 1 1,120 ' 3, ISO ' — i li , — 2,175 748 1 — 2,216 ; __ 1 1*-^ ♦ 2.175 8,s64 — 1,828 ; — ' 14 — 1,150 8,140 , — 4,154 . __ i 15 ' 4,310 — , J,7S0 , — * td54 I — 16 > 515 — 1,160 , — 1 ,428 — . 17 1 150 , 1,673 i — ' — 18 ' 2,127 — * J ,678 5,982 — 19 i 310 — 4S6 , 1 H.()41 — 20 * S80 — ! — ' S3S , 4,882 , — 21 8,192 — 1 1,372 5,165 — 22 5,210 — 515 , *5,165, — 23 3,125 i 3, SOS 1 2S2 — 24 : 2,160 — 4,()17 1 4,781 25 500 — * 4,0 17 1 1 ( — 6,883 26 — 954 ' 4,637 1 6,388 27 ♦ 954 2,2f»S - — — 2,100 28 1 1,030 — 2,052 — 1,742 ^ ; — 1,075 8h9 1 * 1,742 so 1 — 2,500 f»92 1,429 — 31 i 1 1 I i 1 • \ 1,789 — — 1 i 1 1 1 £45,299 412,008 1 448,018 i t f 1 \ i £18,461 401,0.31 £25,877 Total Dr. £45,299 + £48,018 + £01,081 = £154,848, which for one day at 5^/^ is £21 2s. lOd Total Cr £12,968 + £13,461 + £25,877 - £52.300, which for one day at is £4 6s. HOW TO FIND DIVISORS FOR INTEREST NUMBERS. 21 Bank Holidays. In explaining the methods adopted by London Banks to lessen the labour of calculating interest on Country Banking Accounts, we have stated that in making the Table of Daily Balances the preceding day’s balance for Sundays and Bank Holidays is repeated. The General Bank Holidays in England and Ireland are : Good Friday, Easter Monday Whit Monday, First Monday in August, Christmas Day and the following day ; or if that be Sunday the Bank is closed on Monday. In Scotland New Year’s Day, Good Friday, First Monday in May, First Monday m August and Christ- mas Day. How TO find the Divisors for Interest Numbers. As the student may not readily remember the proper Interest Divisor for a particular rate of Interest, we here give a simple Eule for creating the proper Divisor for any rate per cent. — Divide 30,500 bi/ the Rate per Cent,, and the Quotient is the Interest Divisor, The explanation of this easy method is simple enough. The Interest of £100 for one year at 1 per cent, is of course £1. If this were found as an item in an Account in which the Interest had to be calculated by Interest Numbers, Dr, or Cr,, we should have to multiply the amount of money (£100) by the number of days (365) to produce the required Interest Number 22 A COUNTING-HOUSE GUIDE. (36,500). If this Interest Number were taken, per h (without considering the other varied amounts of money and statements of days arising from the various dates m the Accounts), and divided by 36,500, the Divisor Number for 1 per cent , the Quotient would be 1, that IS, £1 Interest. Therefore, by parity of reason- ing, if we divide 36,500 by 1, the rate per cent., the result of 36,500 is the proper Interest Divisor foi 1 per cent. By the same method, at the rate of 2 jier cent, per annum, 36,500 -i- 18,250 yields interest £2, the proper divisor being obtained by dividing 36,‘)0() b\ 2 = 18,250 ; and at the rate of 24 jier cent pei annum, 36,500 14,600 yields Interest C2 10s , the proper divisor being obtained by dividing 3(),500 by 2^ (oi 73,000 -4 5)- 14,600 The pimciple being correct, it is certain that any amount of money for any nunibei ot days, multiplied into each other, will produce Interest Nunilnirs, whence th^- Interest m money, at any latt' pei cent., can be found, if the proper divisoi foi such laU* ))(‘ used. The result can be readily arrived at, for (I) a Dr. Account only , (2) a Cr Account only , or (3) a Dr. and Ct\ Account-Current. In the latter case, as shown by the examples already mentioned, it is thti balance of the Interest Numliers w’hich has to be founri, and has to be divided b}" the proper Intercist Dnisor to produce the interest, whether expressed in £ s d or in terms of foreign money. The following list of inteiest divisors is more than BufScient for all business £)urposes The divisor multi- plied by the rate per cent, should make 36,500, or as near that amount as possible. In the selected instances, HOW TO FIND DIVISOBS FOR INTEREST NUMBERS. 23 we have proved the calculations, and placed the result at the right hand. The reader may practise with other rates of interest (as IJ, 1], 2|, 3J) in the same way. List op Interest Divisors. 36.5 days = 1 year. Divisor No Rato 7o per annum. Proof. 7‘I,000 J 3G,500 3G,500 1 36,500 24,SM4 U 30.501 18,i^50 16,500 14, GOO 36,500 12,167 3 36,501 10,429 34 36,501 9,125 4 36,500 8,111 44 36,499 7,300 5“ 36,500 (),G \b 54 36,498 G,0H3 g“ 36,498 5,()15 64 36,497 5,21 1 7 36,498 4,81)7 ‘4 36,502 4,5G2 8 36,496 1,294 84 16,499 4,055 9“ 36,495 {,812 94 36,499 3,650 10 36,500 In interest accounts where the yeai is taken as -^GO days, and a month as the IJtli of a \ear, the divisors ^^lll of eoiuse be difterent. We give the dnisors foi * /o 7^ List of Interest Divisors 360 days = 1 year. Divisor No 14,400 9,000 7,‘JOO Rate pel annum. 4 5 and so on. 24 A COUNTING-HOUSE GUIDE. Another Example of an Account-Cunent. Messrs. F. H Valpy & Co., New York, in account with Hall & Hollis, Liverpool. Cr. By your half Net Proceeds of 840 Bales Cotton V Exeter, on joint account, due on average 6th July 5 21 »» To your Drafts, favour of Palmer & English J & N Perkins - Bruce Brothers - Cash paid by your order to George Ager- Interest on £ b D. 2,371 13 0, 123 days, 39 19 4 1,000 0 0, 107 „ 14 13 2 622 7 6, 69 „ 5 17 7 £ s. 5 March 1,000 0 1,371 13 1,000 0 D. 0 6 0 £ 4,054 ♦» 28 April 622 7 5 £ s. D. GO 10 1 E. E. Liverpool, Dec. 31, 1900 James Black & Co. s. 11 D. 0 4,054 11 0 The above is the usual appendage to an Account Sale when specific advances have been made. In the present transaction, the whole has been settled by the paying over of the balance according to the directions of the house in New York. GOODS ON CONSIGNMENT. 25 Goods on Consignment. It often happens, when a merchant is unable to find a market for certain goods, that he arranges for their consignment to another, who sells the goods for the consignor (a consignor is one who forwards goods to another for sale) for a stipulated percentage or com-^ mission on the gross amount of the sales. When the- goods are shipped, the consignee (that is, the party to whom the goods arc sent) in due time receives the docu- ments. He discharges all liabilities m connection with the goods, obtains delivery of them, and sells at the highest prices he can obtain for them, either privately or by public sale. When the goods have been sold, an account called an Account-Sales, is prepared by the consignee and forwarded to the consignor, in which the latter is credited with the amount of each item sold,, and debited in detail with all disbursements consequent upon the consignment, including the fixed rate of com- mission agreed upon, any payment that may have been remitted on account, discounts upon acceptances, the cost of freight, wharfage, and other incidental charges in the shipment of goods ; and if a credit balance re- mains, a bill for the amount is attached to the Account Sales, or the amount is passed to the credit of the consignor's account m the consignee’s books It will thus be seen that the sender of the goods is called the Consignor, the receiver of them the Con- signee, and the goods themselves the Consignment, or, as it is sometimes caUed, an Adventure. Thus a merchant would say his '^Adventure in straw hats’’ consisted of a Consignment of twenty cases -26 A COUNTING-HOUSE GUIDE, Account-Sales. An Account-Sales is an account of ^oods received and sold for another. It should specify the marks, numbers and particulars of the diderent packages or lots and their respective selling pi’ices The account also specifies the charges for freight, landing, storing, insurance, commission, dut\g if paid, etc , and where the goods have been sold by public sale, the sale expenses. All these charges are deducted from the gross pioceeds of the goods, the balance being called the net proceeds Merchants usually have then Account-Sales printed to cover all the charges inciured in then particular- trade. Account-Sales are usually rendered to the Consignor after each transaction , and the amount due to him is either paid at once oi* at stated intervals as shown in an Account-CuiTent ITe following is a copy of an Account-Sales, which, by the way, means an Account of Sales Specimen of an Account Sales. ACCOUNT-SALES. 27 1=5 eA in O) > o 1 1: o - o 4-* CO , o; o - c c ::: w N A- - j: - ;-H cS o ni CT' ci O ^ >0 CO CO o ai C/l' O o • 00 0 00 Q tH CO CO 02 tH iH t-. CM b- crt oi »o> CM CM 2=“ cr ^ o -*-t 'O r !/J O ^ -1 -C ^ o (d M O OJ C -*-' - ^ CO f-i ^ c3 '-r Q H r-£ cr a O o iO o 10 4a if 0 P4 1 rH o3 o PU CTi CO a c/ o cJ 3 •M 01 iz; 3 t5 c S' c3 CJ O o -H OT o c3 H »o cr ' M c t-l tUD -4^ '^1 o d -'I T-t ^ rH CM ?-i C O CJ cr tCi 53 Q »o 01 3 c3 H S 05 43 0 dl 1 CO 0 01 fM 0 •«-M 0 1 rH 1 1 tH CM 0 »-H 'M c 0 1 1 >0 uO iC 0 0 1 CM -^1 r-i *c rH CM >»> •ri CO T—i 1 1 00 1 — ( CO CO Canted fonvard £767 19 28 A COUNTING-HOUSE GUIDE o:» o CO rH O rH t- CM CO rH rH rH 40 CO CO 00 tH »o CO O London, litJi Octobei, 1900. Williams, Marshall <& Co, EXPLANATION OF THE PREVIOUS ACCOUNT. 29 Explanation of the Previous Account. Gross IS the weight of both goods and packing. Tare means an allowance for the weight of a cask, case, or wrapper. There are three weights with packed goods : the Gross Weight, which is the weight of both goods and packing ; the Tare, which is the weight of the package itself ; and the Net Weight, which is the actual weight of the goods before being packed, or after the weight of the packing has been deducted. Draft is an allowance to the buyer for dust, dirt, etc., or the turn of the scale, and it is made to insure his getting full weight. The draft allowed varies in all trades according to the articles dealt in. Brokerage is the charge made by the broker for handling the goods and attending to their disposal. Cooperage is a charge for opening or repairing barrels. Commission is the merchant’s charge for attending to the whole business. Freight is the steamer’s chaige for carrying the goods. Customs Entry and Stamps is the merchant’s charge for passing an entry for the goods at the Custom House, and the money he has spent in stamps while dealing with the goods Fire Insurance is the cost to the merchant for insuring the goods against fire whilst in warehouse. The charges on goods are so various that we give several specimens of Account-Sales to show their working in various trades, and, where necessary, an explanation of the charges made will be given at the foot. Merchants usually have their Account-Sales printed to suit their particular trade. 30 A COUNTING-HOUSE GUIDE. Account-Sales of 113 Bags Pimento per RoV^, Captain Colvin, from Jamaica, sold on account of J. Simpson, Esq. 19001 May ' 9 1 ' 20 Bags - Sold at Public Sale. - cwt IS 3 10 ( I 20 „ - 18 3 21 IS 1 IG 20 „ - -cwt. 1 8 8 21 5(> 0 19 20 „ - - 18 0 IG 2 4 Dft. , 13 „ - - 14 2 11 ' ,55 2 15 51 2 20 1 3 27 Taie 51 0 28 2 0 7 Tret 51 2 9 49 3 1 8 17 5,777 2^(1 57 3 4 47 I 25 =-5,317 ,. 2^0 49 1 IG ' 11 107 ' 0 ' 3 Discount 1 115 10) IS 10 Wai chousing Eiiii} - - - 1)0 2 (> lu*^' on 1,80 40/-, 1*' - - 1 17 3 hieiglit on L^^t 99 3 7 4d 9' lb 24 2 8 Pi image, etc , 10, G Dock Hates on do (o 1/2 P cv\t - G 14 1 Soiting, etc , 17;1U VcHoj tiding A Sale pj\p‘‘ - - 0 12 0 Hi ok oil 1107 0 3(« J - - 1 1 5 Coinmiss onil05 18 10 (o 2»d - 2 12 11 Net pioco(‘ds due ,i7tli Ma\, 1900 - - t 1)S H) 2 Trot luoans a tuitluo* alluwaiico on <4oods liable to waste aft(n’ the Tare and Draft liave been d^aliicted, PiriK^nto })ein^^^ one ol the i(*w ai tides on which Tret is still allowed. I ACCOUNT-SALES 31 Account-Sales of 7 Serons Cochineal per Crmadcr^ Captain Lawson, from Honduras, sold for account of Rqbinson & Coiapany. 1900 Sold at Public Sale. Feb. 7 i No Cwt qr lit oz 1 — 1 1 2 10 2 — 1 0 14 G 3 — 1 0 20 6 4 — 1 0 24 G 5 — 1 0 25 10 n — 1 0 20 12 7 __ 1 0 20 G 8 1 00 8 S 7 Taro 1 14 1-lb 9381 a/ 3/10 - - 179 15 11 , - _ Disco 111 ' t » S ( ) O - - 4 9 1 11 i 176 () 0 lloc’il for 7 L'.k ka^es (a 3/- - £1 1 0 1 ,, Garbiiiins, I 11) Cq 1/- - 0 4 0 1 5 0 11 0 Ch\rges Waiolioubiii;; b’utiN eo 2 () Dof k Hates on cwt 8 1 14 (a ]j-, Taring, etc . - - - 1 9 0 (laibling (n () O' Seion A Bags - 0 3 () k’li'igiit on cwt 8 114 (o 111 1' Ih , and I’iiiiiag<' 5 / - [ 0 1 Insurance on £150 (n 40/-, and PoluA Stamp . - - - 3 10 0 Adveitising A Sale C’h.irges - 1 \ G Biokciagc 4 / on tl79 15 11 0 18 0 1 ('.unmission 24^/^, on il7G 11 0 - 1 8 5 f 1 — — 1 P" * 1 / 1 18 4 Ni't Piocceds, due 9tli !Maic!\ 1900 - - £' 158 1 12 8 Garbling is a charge for sorting or picking out the da^naged parts. A COUNTING-HOUSE GUIDE. 52 Account-Sales of Cochineal. Cochineal from the Spanish Settlements is packed in bags, which are almost universally covered with a Hide, and such package is called a Seron, from the Spanish word Zurron signifying a Heather Bag. Before taking the weight, this covering is removed, and the Tare is the actual weight of the Shirts or Linen Bags ; and both the Gross and Tare are taken to ounces. Cochineal is sold at the prompt, or term of payment, of one month, the prompt expiring according to the general custom of London on the following Saturday, the day named at the foot of the Account- Sales. Cochineal is sold in Bond In London, the Ware- houses and Quays of the respective l>ocks are bonded by the Companies of the Proprietors, and the Charges which they make for the landing, weighing, housing, delivering, etc., of the Goods, are called Dock Bates. Of these Bates then' are two kinds, tlie Landing Bate, which does not include any rent, and the Consolidated Bate, which, with an extension of tlietroufile taken with the Goods, includes the rent for a stated jieriod, from the time of the ship’s commencement of discharge. The Charge for Garbling, that is sifting and picking, IS an extra charge — New Bags are re({Uired for the Garblmgs, and also for any Bags which have been sea- damaged. The rate of Freight is according to the tc^rms specified in the Bill of Lading — ^Prirnage was originall^^ a gratuity to the Captain for his care of the Goods. The Charge for Brokerage is commonly, if not always, made upon the Gross amount of the (roods, while that for Commission is usually made upon tlie Net amount. In a few cases, the rate of the Brokerage is upon the number of the Casks or Packages, as 5s. or 10s. per Hhd. or Puncheon ; but it is far more generally a rale per Cent., as one- If or one per Cent., the latter being ACCOUNT-SALES. 33 usually charged either when much trouble has been re- quired to be taken, when the Goods have been sold by Public Sale, or when advances have been made by the Broker to his Principal. Account-Sales of 406 Elephants’ Teeth, ex Chieftain^ Captain Pattison, from Cape Coast, on account of Messrs Wilson Company. London, Dec 1st, 1900. Sold ^ Public Sale 406 Teeth in bond. Teeth 7 Weight Cwt qr Ib 4 0 21 Net Cwt. qr 4 0 lb 20 Dft 1 lb per Lot £ s 25 0 104 9 3 10 4 0 22 4 0 21 9 9 23 0 96 6 3 10 3 1 19 3 1 18 9 9 19 16 67 7 3 13 2 3 14 2 3 13 9 9 18 0 51 11 9 10 3 3 17 3 3 16 99 20 0 77 17 2 9 2 3 6 2 3 5 9 9 20 0 55 17 10 20 2 2 14 2 2 13 9 9 17 5 45 i I 2 7 30 2 2 0 2 1 27 9 9 15 0 37 7 4 62 2 3 1 2 3 0 9 9 19 0 ! 52 5 0 83 2 1 15 2 1 14 99 13 10 32 1 3 52 2 1 21 2 1 20 9 9 14 6 34 12 2 110 2 0 22 2 0 21 99 13 10 , 1 10 8 406 Teeth 684 8 6 Discount 2^% - j 17 2 6 Charges. 667 6 0 Insurance on £650 @ 40/- Policy 35/- & Commission ^% - - - - £18 0 0 Ft 2% on £650 - £13 0 0 Primage, etc. - - 19 6 13 19 6 Dock Charges - - - - - 5 17 8 Advertising & Sale Charges - - 1 12 6 Brokerage 1% on £684 8 6 - - 6 16 10 Commission 2 „ - - 13 13 9 60 0 3 Net Proceeds due Feb. Ist, 1901 - £ !’ 607 6 9 Elephants’ Teeth are divided into five different sorts, according to their Weight, the smaller ones, or those under 18 lb., being called Scrivelloes. •The Commission in this Sales is charged, like the Brokerage, upon the gross amount. 3 34 A COUNTING-HOUSE GUIDE. Account-Sales of 10 Hhds. Tobacco, ex ’'•Dolphin, Capt. Lee, from Richmond, sold on account of A M Browne, Esq. 1900 ]\Iar. Bv F Na> lor Co Cg^ 2 months 4 1 1 « No (’1^t qr 11) 1 1 10 3 11 1 2 11 1 0 1 3 10 1 IG 1 4 10 3 4 t 1 1 5 11 2 14 I t 1 6 10 2 4 ! 7 12 0 1 ! 8 11 0 2G i 9 10 1 0 1 10 10 3 27 1 ( 1 109 3 19 -- 12,311 Ib } i j 880 ,, Shrinkage 11,931 1 } 459 „ Tret 1 1 Net 11,472 <«■ lb - 167 G Discount, 2% - £3 6 11 Charges, 3/7 Hhd - 1 16 10 5 1 2 1 . 1G2 3 Chahoes Entr}' . ^ £0 4 (> ' Custonis Kent, 2/- ^ Hhd 1 0 0 } Import Rate, Weigh* & Samp* 1 12,311 lb. (h Od. 100 lb. - 3 1 G i Porterage of Samples 0 1 0 j Brokerage, 10/- fr*' Hhd 5 0 0 i — 1 ^ 7 t |162 IG E E London, May 7, 1900 i 1 1 1 0 9 8 0 3 ACCOUNT-SALES 35 The importation of tobacco into this kingdom is placed under very severe restrictions. Where it is per- mitted to be landed, it is placed m appointed ware- houses under the special charge of the Customs, and it is weighed net or without the cask. Before, however, being thus weighed, any unsound part is cut off, and instead, as formerly, of its being destroyed (as is still required to be done to such tobacco as the importer may choos(' to wholly abandon), it may now be exported, but not in packages of less than 300 lb. in weight. The undamaged tobacco is rocased, and the allow'ance for shrinkage is made, to compensate' for the loss of w^eight that may arise from the drying up occasioned by this cutting and exposure to the atmosphere. As wTth other bondc'd goods, no duty is required to be paid at the time of importation, but upon making the warehousing entry, a charge of ’is per cask or jiackage IS made for rent in such warehouses as are provided by the Ciowui, and the same is also payable on taking the tobacco from tlie wTirehouse (with a further charge of 4s per annum it remaining warehoused longer than 5 years), to defray which and other trivial charges, the allowTince of 3s. 7d per cask is made to the purchaser of either sort ot tobacco from the United States. The import rate is charged hy the Dock Company for the services stattni in the Account-Sales. All tobacco is sold in London at *2 months' prompt, or a discount, at th(' rate of 5 per cent, per annum, is allow'ed for any unt'xpired time. Both this and the following Account-Sales are supposed to be from brokers to their principals, and consequently they do not include the charges for freight and insurance. 36 A COUNTING-HOUSE GUIDE. Account-Sales of 7 Hhds. Tobacco, ex White Rose^ Baltimore, sold on account and nsk of Messrs. Palmer Sc English. 1900. 1 r~ 1 July 17 ByC. Brooks & Co., the whole 1 1 i payment 2 & 2 mos. j No 0. No Cwt. qrs. . lb. i 1 409 12 1 6 Net. 2 405 15 3 7 i ( 3 407 12 1 16 1 4 406 13 2 22 i 5 403 18 3 20 6 401 14 0 1 7 408 16 1 19 \ 1 1 1 1 1 98 2 6 1 1 J i or 11,0381b. > ! Shrinkage 119 »> j 1 i i 1 1 r j 10,919 ,, (a> 3Jd. ^ lb. i i ! I 1142 ' 1 1 3 6 ! 1 > i Import Charges, Weighing and I Sampling, ^ 5/6 ^ Hhd. - • £l 18 6 I Mats, „ 5d. „ - - 2 11 Allowance, „ 2d. „ - - 12 Carriage of Samples ... 6 j Brokerage, 6/- Hhd. - - - 1 15 0 8 18 138 5 ‘ 6 Errors and Omissions Excepted. Liverpool, 18 July, 1900. ACCOUNT-SALES. 37 Ji Account-Sales op Tobacco. The allowances upon the weights of most articles of commerce are the same in the out-ports as in London, but in Liverpool, on this article, there is considerable difference. Except that an extra shrinkage is allowed when the tobacco has been long in the warehouse, on Virginia and Kentucky, the shrinkage is only 15 lb. per hhd., and on Maryland only 10 lb. per hhd , each with a draft of 2 lb. per hhd., but with no allowance of tret. The times of credit are also generally different. On this tobacco the time is four months, here stated to be two and two months, by w'hich is meant, that at the expiration of two months, payment must be made either in cash w’lth the allowance of discount, as interest i/pon the money paid^ at the rate of 5 per cent, per annum for the iinelapsed time, or in approved bills at two months’ date. This settlement is called “as four months’ cash,” signifying that payment may be made either on the day of sale or at any lime within the first two months, with the allowance of divscount as above, the four months’ payment being what is called “bill tune,” or four months and three days’ grace. There is no percentage discount, nor are any charges allowed to the buyer; and the tobacco w^arehouse for this port being free of rent to the Crown, this article is free of rent for eighteen months from the date of im- portation, after which tune the rent is charged at the rate of lid. per package per week, which is payable by the then owner. 38 A COUNTING-HOUlSE GUIDE. Account-Sales of 73 Casks Olivet Oil, rec’d per Adriatic^ Capt. Hughes, from Trieste, and sold on account of Messrs. Westby & Co., London 1900.1 1 f May I 8 By Watson A Co. the whole payment 1 & 8 mos. Cw't qrs. lb Wg. 710 1 13 3 0 16 Dft 707 0 25 113 2 18 Tare 593 2 7 Net or Tuns 29 I 15{J (a £52 Tun * - j, 1,524 4 > 2 Charofs April I 6 I Duty on Tuns 29 1 48 ^ 40/ £58 17 7 5 - - - . 2 18 11 61 16 6 Dk Rate, 45/10, Town Ds , 48/8 * 4 14 6 10 Freiglit on cwt 596 0 22 (a 35/- ^ Ton - - £52 3 4 Primage, 10 - - 5 4 4 57 7 8 Insurance against Fire - - - 7 10 0 Cartage and Poiterage - - - 13 1 7 Coop , Sampling A S Bottles - - 7 9 4 Waiehouse Rent - - - - 3 13 0 Interest on Duty, Freight, etc. - 2 11 9 Brokerage on £1,524 42(q^- - 712 5 ' Bank Comm. | ^0 2 I Comm and Guarantee ,, 4 - - 60 19 4 230 12 3 Net Proceeds due Sept. 11 - - £ 1,293 11 11 E E. Liverpool, May 18, 1900. N B. — The tun cf 252 Imperial Gallons is divided into 4 Quarters eacVi of 63 gallons, reckoning 9 lb weight to each gallon. C ACCOUNT-SALES. 39 At the date of the Account-Sales, shown on the previous page, the rates of the selling price and of the duty upon olive oil, were per tun of 252 imperial gallons, calculated upon the delivery net weight for the former, and upon the Customs net weight for the latter ; it being estimated that the gallon of such oil weighed 9 lb. avoirdupois, which was about per cent, less than its real weight, as 100 gallons weigh on an average 913 lb. avoirdupois. The rate of freight is very often cal- culated in the same manner, but, in this instance, it was rated upon the Customs net weight, at the given rate of 35s. per ton of 20 cwt. The tun of 252 gallons IS one-quarter of a cwt. m excess of 1 ton in w'eight. The rates of draft vary according to the weight of the cask . — Under 1 cwt. it is 1 lb Undei 10 cwt it is 4 lb „ ‘2 cwt. ,, 2 lb ,,18 cwt ,, 7 lb ,, H cw’t, „ 3 lb 18 cwt. and aboNc 9 lb Thus in this Account-Sales, of which only the total gross IS given, on 53 casks under 10 cwt and not less than 3 cwt. each, the draft was 4 lb. each cask , and on 20 casks under IS cwt. and not less than 10 cwt. each, the draft was 7 lb. each cask \Vliether bonded or not the selling price was for duty paid, and from there bcung no charge for the bond, it appears that the goods in this Account-Sales were not housed m a bonded warehouse, and an opportunity is thus afforded of giving some explanation of the nature of the entries at the Custom House in those places in which the warehousing system of the London Hock Companies has not been established. Before a landing waiter is appointed to the charge of a vessel which has entered the port, and therefore, 40 A COUNTIl^a-HOUte GUIDE. necessarily, before commencing its discharge, it is re» quired that at least two-thirds of the cargo should be entered (an entry is merely a description containing the name of the vessel and of the consignee or party making the entry, the sort of goods thus entered, and, in the above case, the quantity on which the duty is proposed to be paid), and unless the goods are bonded, the duty must be paid upon an estimated amount. This is called making a x^rimc-entry , and when afterwards the goods have been landed, and the net weight or quantity has been ascertained, the consignee is required to make a second or post-entry, and pay the remaining duty. The goods are then given out ol the charge of the Customs, and when the prime-entry has been made for more than the landing weight, etc,, which is rarely the case, the surplus can be recovered upon application to the Board of Customs. In Liverpool, at the time of making the prime-entry, the dock rates and town dues had to be paid, the former being calculated similarly to the duties, and therefore requiring to be adjuste > 3 milhemes d’or 365 78 8086 41 Prime 12 50 p' mille 101 08 .J500 I’lastres A Colonnes (d 5 37 - - 18795 00 5000 Piastres ^lexicames ,, 8 39 - - 26950 00 Frs. c 19947 58 8187 49 1 » I 45745 00 Eusomblo Frb. 73880 07 Frais a deduno Prajs A Calais Port de Calais A Pans - Kshais, Balances, et Fral^dl^er'^ Commission, i ^/o - Frs. 27 70 86 75 I 52 20 ij 184 70 ' 350 85 Net Prod u it Frs. ! 73529 72 Pans, Octobro 23i»«, 1900. 42 A COUNTING-HOUSE GUIDE. By the laws of France, the kilogramme of gold of the purity of 9-lOths, or 900 milliemes fine, is coined into pieces of money worth 3,] 00 francs, and the same weight of silver of the same fineness, into 200 francs ; and by a decree of 22nd March, 1854, the charges to be made, as the expense of fabrication, to persons bringing these metals into the Mint to be coined, were fixed for Gold, at Fr. 6*70 (from 1835 to 1854, 6 Francs), Silvor, ,, 1‘50 ( ,, ,, ,, 2 ,, ), ^ Kilogramme of the standand purity. A charge of this nature, or tor the coinage of gold or silver, IS technically called a brassage or seignorage. These deductions being made from the preceding or mintage rates, give Fr. 3,093 30 for gold, and Fr. 198 50 for silver, as the tariff rates per kilogramme, 900 mil- liemes fine ; the latter rate being exactly 22 centimes for each milheme in the purity of silver. Bars of siher containing gold bear, as in this country, a higher price or premium than those whicli are witli- out it; and, in the valuation of this gold, 1 milluune is allowed for the expense of refining, being equal to 5 5 grains in the pound troy The rest is charged for, as if pure gold, at the tariff rate (between 1835 and 1854) of h"rs. 3,437 77 per kilogramme. Gold in bars is now negotiated at Frs 3,437*00 fine (new tariff), and silver at Prs. 218’89 fine (old or commercial tariff) The calculation for the gold in this Account-Sales is thus made, the weight of the bars being 35*407 kilo- grammes, and charge being made for 3 milliemes of gold : — K. 35*467 X 0*003 = K. 0*106401 Frs. 3437 77 x 0 106401 = Frs. 366*78 The following is an Account-Sales of coal sold by a factor for account of a colliery : — t 1st June, 1899. — London, Entered on 25th May ; Sold 24th May ; Cleared 25th May. Meter, John Smith. The Blank Colliery Co., Account-Sales of the Ship Jane . — John Thompson 44 A COUNTING-HOUSE GUIUB. Pro Forma Accounts. Pro forma means for the sake of form, and Pro Form4 Accounts are statements showing what it is considered, in the current state of the market, goods would realise. The accounts are of course in the same form as those used for actual transactions, except that the price and the charges are either estimated or they are copied from documents already used for transactions that have taken place. They are headed pro forma, to show that they are only to be considered as specimens, and that the prices shown might or might not be obtained. Thus, we are often asked for Pro Forma Invoices when a merchant desires to know what are the prices and charges on goods, and Pro Forma Account-Sales when It IS required to know what a proposed adventure or consignment of goods would realise in some particular market. Discount. Discount is an allowance for paying money before it IS due ; or it means a reduction from the amount of an account, or from the price of an article, and it is usually considered to be given in return for a prompt cash pay- ment. But it has other meanings in commerce. The manufacturer’s prices of some goods, especially in the hardware trades, never vary, but it is the discount upon them, that is made to alter, and it amounts in some cases to 75 per cent, or more ; and it is common to see such discounts as 60 per cent., 10 per cent., 5 per pent. TO CALCtTLATE DISCOUNT. 45 and 2J per cent., all taken from one account, in the order named. As referring to bills of exchange, discount may be defined as the difference between the value of money paid at once and money payable a certain time hence ; and, of course, the rate of discount to be charged on a bill will vary according to the time which will elapse before the bill matures or becomes due. When we speak of the Bank Bate being 3 per cent, it is under- stood to be for good bills having not more than three months to run ; longer bills are rarely discountable except at higher rates. (See Discounting a Bill.) To Calculate Discount. % Bide . — To find the discount at any given rate per cent, multiply the sum by the rate per cent., and divide the product by 100. Example. What is the discount on £154 12s. 6d @ 8 ? £154 12 6 3 20 12,77 12 = £4 128. 9d. When dividing by 100, it is only necessary to point off two figures from the right, as shown in the above example. 46 A COUNTING-HOUSE GUIDE. Percentages. Percentages for discount or interest are calculated by multiplying the given sum by the discount or interest required, and dividing the product by 100, which gives either the discount or the interest for one year. Example. What is the interest for one year on £154 ISs. 6d. @ 3 % ’ £164 12 6 3 4,68 17 6 20 12,77 12 9,30 = £4 12s. 9d, Per cent, is always written 7o ; thus 5 “7. ^Mien dividing by 100, it is only necessary to point off two figures to the right, as shown above. The rules for mental calculations of percentages are given on the following pages. The easiest way of calculating interest on any sum, Jor any 7iumher of days, at a given rate per cent., is explained on page 47. Interest Interest is the premium paid for the use of money, and the rate of interest to be paid may be fixed by agreement, or it may vary according to the current value of money in the market during the time the debt may be running. The Bank of England Kate of Discount is the standard which usually regulates interest on money transactions INTEEEST. 47 in London, but merchants often charge their debtors more, and London bankers usually allow their depositors less, than the official Bank Rate. Of course the interest to be charged a debtor will vary according to the security he offers for the repayment of the principal, and according to the time for which he may require the loan. Some articles of commerce are dealt in for payment in fourteen days or thirty days after delivery, and in such cases, when a prompt cash payment is made, it is usual to allow the fourteen days’ or the thirty days’ interest at 5 per cent, per annum. Simple Interest. It IS called Simple Interest when the interest due is not added to the sum lent so as to bear interest. For the convenience of merchants, tables of various rates of interest have been published, but when these are not obtainable the following is the easiest and <|uickest method of calculating interest on any sum, for any number of days, at any rate per cent . — Rule . — Multiply the pnhcipal by the days, and by double the rate jier cent., and divide by 73,000. Example . — Find tlie interest on £l,o00 for 120 days at 4 per cent. ^1,500 X 120 X 8 -r 78,000 ^ £19 14s. 6d. (’OMPOX^ND Interest. Compound Interest is wdiere the interest on money is added to the principal, and then considered as a part of It, so as to bear interest itself. $ 48 A COUNTING-HOUSE GUIDE. Buie . — Find the interest due on the principal for one year and add it to the principal, consider the result as a new principal and proceed as before. Example . — What is the compound interest on £200 for 3 years at 5 per cent, per annum £200 0 0 principal interest 10 0 0 for first year. 210 0 0 principal for first year, interest 10 10 0 for second year. 220 10 0 principal for second year, interest 11 0 G for third year. 231 10 6 Deduct 200 0 0 principal, £31 10 6 the compound interest required. Shipping Specifications. A shipping specification is a form on which are fur- nished, for the information of the Customs authorities, details of cargo on board a ship. Each shipper of goods furnishes a specification of the goods he has placed on board ship, and all specifications are required by law to be delivered at the Custom House within six days after the clearance of the vessel under a penalty of £5, and when these documents are not presented within due time the parties at fault are apprised by the Custom House of the infringement of the law, and they are requested to at once supply the omission and state the cause of the delay, and when this is considered satis- factory no fine is imposed. The Customs forms used for the clearance of goods vary both in colour and in wording, but we give examples of the specification forms used for foreign goods free of duty, and for British and Irish goods. Example of a Specification for Foreign Goods free of Duty, SPECIFICATION for Foreign Goods free of Duty, or on No. 30 (Sale) which all Duties have been paid. SHIPPING SPECIFICATIONS 49 ■S 03 03 ^ s ^ o tc ■s a 53 o O w o O cr 2 I Vi rd o< g " K S flj o3 2 03 .d d Sod. d ^ ^ d 'g C/2 ^ ^ C3 Q fl ■*3 d 03 V 5) d a *1 •d — , <0 d V a O d3 03 w •d o g I o a *o 03 9 O -« . ^ § «d .is O CO S. S* c« 2 « .d 00 H 4 I declare that the particulars sot forth above are correctly stated. (Signed) f pated 190 (Countersigned) (Address) Officer of Customs. t Adding Exporter, or Agent, as the case may be. Example of a Specifidaiion for British and Irish Goods. SPECIFICATION for British and Irish Goods only. No. 706 .) Port of Ship’s Name Master, for 50 A COimTINa-HOUSE GUIDE 2 1 OS rrt a ® •*9 C/J o o ns ►H PBICE CTTEBENia 51 t Example of a Price Current, WHITE, BLACK & CO.’S Price Current, 6th Sep- tember, 1900. Present Prices Dis- count. Copper, — Sheets and Sheathing - £84 0/- ^ Ton o o \ Sheets, 4x4- 83 0/. „ It (^f.o.b., London Yellow Metal Sheets, 4x4 6jd. # lb tt j or Liverpool. „ „ Sheathing - 7id. „ 0/- # Ton »» Chili & Gmb. (Warrants) »> in whse , L’pool. Tough Ingot - - - 77 10/- „ ) f.o.b , London Best Selected Ingot 79 0/- „ Composition Nails - Zinc. — Sheet zinc, best 8Jd. ^ lb. r or Liverpool. brands - - - - £24 0/- ^ Ton Net. f.o.b., Antwerp. „ in discs 27 0/- „ t» »» ,, perforated - 2/8 Sheet ar/o f.o.b., London. Hard Spelter, g.o.b.s. 16 15/- Ton Net. f.o.b , L’pool. Virgin „ - - - 19 5/- „ >» > c.i.f., London „ „ special brands 19 15/- „ »> \ or Hull. Remelted Spelter - 18 10/- »» f.o.b., Hamburg. Tin. — Foreign (Warrants) - 136 10/- »> in whse., London English Ingots „ Bars (4-cwt. Bar- 140 10/. ii7o 1 f.o.b , London rels) - . - . 141 10/- „ t» j or Liverpool. Tin Plates, IC Coke - 15/0 ^ Box 37o f.o.b., L’pool. „ ICW „ tin lined 15/0 „ 1 IT II - IC Charcoal 16/6 „ »* * II II Quicksilver £9 Bottle >> in whse., London Lead. — L.B. Pig- 18 10/- ^ Ton f o.b , London. Spanish Pig - 17 16/- „ »> c.i.f., London Sheets - . - - 19 0/- „ 11 f.o.b., London. Pipe .... 19 10/. „ »» ! II II Shot .... 22 0/- „ 91 1 Tea Lead — 5 oz. 21 10/- „ 99 1 ft ff i 99 11 Type Metal, No. 1 - 83 0/- »» 99 11 Nickel. — Cube - German Silver. — Electric 2/0 ^ lb. Net. II 11 brand Ist quality (Sheets & Wire) 13d. #?lb. 247 = 1 II II 5th „ llW. „ 9id. „ I ! »» 1 1 II II t 1 II . II 1 t 16 Cannon Street, London, E.C. I 52 A COUNTING-HOUSE GUIDE. Price Currents. A Price Current is a printed form issued periodically by dealers, brokers, merchants and others to customers in their trade, showing the present current or ruling prices of goods they deal in. The specimen shown on the previous page is a form used in the Metal Trade, and, as will be seen, it shows the day’s prices, the dis- counts and the usual places where delivery is made, so that intending buj’ers may see the tendency of quota- tions — whether upwards or downwards — of all articles they are interested in. Circulars and Market Eeports. A Circular or Market Report is a letter, printed m the form of an address, sent out daily, weekly, or at other regular intervals, by dealers, brokers, merchants and the like, to all their customers, showing the ruling prices of goods and indicating the general trend of the market or the prospects of the articles dealt in, and the probabilities of any rise or fall in values. The following is a copy of the sort of circular used in the Metal Trade : — Example of a Circular, WILLIAMS & GEANT’S MONTHLY lEON AND STEEL CIECULAE. 10 Wood Street, Liverpool, 10th October, 1900. CIBCULARS AND MARKET REPORTS. ||£ •wm 2! d) ■j.® . **3 qoo 0 0 C 5 0 aiS^P X 5 0 IP rH ca CO rH crt 00 05 hH H *1 0 0 0 0 - «k Hi * •« «s qOO 0 0 CO CO 0 3; 0 0 ® rH IP kp oi kp tH rH rH rH rH Crt 00 05 00 CO 0 0 0 tH I ,H • 00 Q .o > £ u 2 •— I ^ rr* a d gS C3 cfi O V ;^2Q C r- o ^ O o o ^ O . CO ^ CO 1-4 Qj I— ( ^ bDp^ fl 0 . H to "o d o OD CJ 00 o ^ 8 /J o o QJ O c8 tH ^ O <0 ^ 0 ) Ph ^ O O rSj o fl a Q H H 3;£ QO OO O OOOO'OO y:iC iOO ‘C' O0‘)OO'>J‘O "-H tH rH ortcs oici a> <^00000 o Q o QO OO o oooooo OO O* rH rH r— ( r-H 050 05 rH0050500 I r-j I fl d ^■■■^ • S’' CO W ^ H -4 I M o U CO "iS d : ^ u . 2 r ' r ' no no , ^ to >-, jf p is p d to d dffi d^^q 4A 4.3 'Ji n • > I CO I P4 § ^ to HH • Qt « CC -i S fe ° © Jz P4 pL, O tS > M p-^.^a S'? rP P^ S C3 a> *S ■*^ 2| « F- 1-4 _r? ^ cc ^ .>N. — M ^Vl ^ *=> »>>a: ^ns -- d Pro g-o - ^ H d *• ) sa w >.Q HC — ' - 04 © — M W .-4 a 2 P5 >H *0 P “ 2 °I„S ao 5 SP= = ^ c _o S 2 ^*^ p ^ s - 2 ^ tc 2 -p © r X ^ 2 H -4 x y. <-< — 1 '“P P o ^ ^ 3^ g P -^CO O ^ -rM d ' » • ^ nf ^ HwCO o © o 3 t, ^ c3 3 = p O'- 1 - a ’'■-' a - tiC' >1 a © © -P no 4-3 d © G a i~i 1 -^ rjq P © P-t -P -* S ^ 2 O C/3 *- o « © - d 2^no 0 S 2 ©02 a O'- »■:) r- © 123 © O s-P — © ^ '/' Hi a O H P '’/'a a bo: --no P . a a 3 : " pn: a — ® PI - p r 00 ‘1'' ^ +i <4 54 A COUNTING-HOUSE GUIDE. Contract Notes. « Contract Notes are issued when one person has bought goods of or sold goods to another, and they are issued so that the terms and conditions of the purchase or sale may be definitely stated and agreed upon. The three following examples contain the wording generally used by merchants and brokers here, but the printed forms will of course vary somewhat for any special trade : — Example of a Contract Note. W. G. CORDINGLEY, Metal Merchant & Agent 85 GRaCECHDKCH Street, , Tflboiuphic Address LONDON, E.C. “ CORDWAIN, LONDON.” A B 0 A A 1 Codes used M- I have this day (Bought of or Sold to) you on customary terms and conditions. — Quantity Description Delivery- Discount Packing- Payment - Mark CONTBAOT NOTES. 55 Example of a Contract Note with a Prompt, W. GEORGE & CO. 23 Gbacechubch Stbbet, London, E.C 19- M- We have this day (Bought of or Sold to) you on customary terms and conditions * — Quantity — - - ' Description - Delivery . Discount — Prompt Payment — Prompt means the time fixed for payment. The prompt date varies in all trades according to the goods dealt in, and when the prompt date arrives a delivery order or a warrant will he tendered for the goods by the seller, when they must be taken up and paid for. 56 A COUNTINa-HOUSE GUIDE. Example of a Broker s Contract Note, GEORGE WILLIAMS & SON, Broken 85 QUBFN StBBET, London, E.C 19 M We have fehis day (bouglit of or sold to) you on account of our Principals — Quantity Description — -- — - Price _ - - — - Deliver} Discount - - - Prompt - -- — - Payment — - Commis<^ion (or Brokerage) -- Brokers ol all goods usuallv give up tlie names of their Principals, and when they do so their contracts on each side \^ould read . — We ha\e this da> (bought of or ^old lo) \f)U on account of our Principals, Messrs - . . _ _ Order Sheets. General merchants, as a lule, df» not use contract notes, but .send out order sheelb tor all the goods bought by them. They are usually in printed lorm, and contain any special conditions the merchant desires shall be complied with The tollowing is a common lorm : — OBDEB SHEETS AND CONFIBMATION NOTES. 57 Example of an Order Sheet. From B. FLOWER & CO. 16 Leadenhall Stbbet, Obdeb No. 668. London, E.C , 21st Dec,^ 1901. To Messrs. JAMES TAYLOR & CO., Swansea. Below we hand you an Order to be executed in strict conformity with the prices and instructions given, any deviation from winch will be at your risk, unless referred to and autliorised by us. Net and Gross weights of each class of goods, and measurements of each package, to be stated on Invoices, of which Two Copies besides the Original must bo supplied Order No and Mark to be put on all Invoices and communications referring to this Indent . MARK 10 Tons Copper Slieets Si/e, 4' x 4', 20 to 80 MAC equall} assorted packed lu cases of 10 cwls each, (a £65 16s. per ton overhead, less 2J '7o ^ '"lo days’ int ^/o P ^ » B’hcad , packing in cases 20/- por ton extra. blupiuent in 4 weeks. Instructions on applica- tion B. FLOWLK A CO. Please ackuowledge receipt of tiu-> Older, and state date \^hen Goods will he icad\ Confirmation Notes At the foot ol an ordei sJieet, and some contract notes, IS a perforated lorm, or, where this lorni is not attached, a printed slip is usually sent wuth them, called a continuation note, by the Bigning of wdnch the party to wdioni the order is sent confirms or agrees to the order with the terms and conditions named therein. Besides which a signed confirmation note is a proof that the party has received the order. i C A L S Madras 1/20 58 A COUNTING-HOUSE GUIDE. Example of a Confirmation Note, Kessrs. BLANK & GO.. London. Dear Sirs, We beg to acknowledge receipt of your Order No. dated the inst., which we hereby confirm. Yours faithfully, Some merchants do not issue confirmation notes, but always ask a manufacturer to “ confirm the order by return,’* when, of course, the manufacturer uses big own printed form, somewhat as follows : — Example of a Mamifacturer's Confirmation Note, Blank Works, Birmingham, 190 Messrs Dear Sirs, We thank you for your valued Order of the inst., which shall receive our best and prompt attention. Solicitmg a continuance of your esteemed commands, Yours truly, THOMAS BAKER A CO. Shipping Parcels Eeceipt. Shipbrokers do not usually sign a Bill of Lading for less value than 10s. 6d., and when small packages or samples of goods do not exceed £5 in value, they are generally shipped on a parcel’s receipt at a charge of 5s, But there is usually a condition that, where the measurement of a case at current rates would exceed Ss, in freight, the parcel’s receipt would be charged at lOs. fid. The following is a copy of a ship’s parcel receipt : — Example of a Ship*$ Parcel Receipt, Livebpool, 190 . SHIPPING .PARCELS RECEIPT. , 59 w T 5 2 «> aS S -a a ® •4* 3 « S ^ £ fl 'SS'gS g Ond Ora ^ g'P- S Si Q CO jin 4* c 4» £ ^ ^ 2 a3:= o*^ « > c ^ o '3 ►j W 43 50 0 o © ^ CC O r; ® is »o 2 Cu CO 4a © 1 CL .. w CO £oS>-^ ©^ P,|> o fl S S " C P ' o a P 'XJ - C II3 c8 ®® ^ e-s §• 0 o -- ^ be cr © g P -S c8 c3 ® o © ^ © C o »P © ■e 3 m O 43 O ^ >>oM H p ^ ^ ® >H S*< L. O O • Q «« 43 , S -73 3 - o td 2o I P ^ ’H. o I a< e8 I P © bO <5 • O O o m W o >-a This Receipt must be piesented by Consignees to Agents of Steamer at Port of Pestination, 60 A COUNTING-HOUSE GUIDE. SUBVEYS. A survey is often appointed on the other side where a buyer makes a claim on or rejects certain goods ex ship, when they are not up to sample, or when they have been damaged in transit, and, in such cases, it is usual for him to appoint a person m the same trade to inspect and report on the goods, so that the claim made upon them may be supported by independent evidence. The result of the survey is embodied m a survey report somewhat as follows, but of course the actual wording of the report will depend upon the circumstances con- nected with each case . — Example of a Siuvcy Report. I, James Greeu, a British Merchant in Bombay, liavc, at the rcque.st of Messrs Black A Co , this day inspected — i _A Jl__ . Bombay 1/50 -- 50 Cases Tm Basins, ei “King” s (3) Fiondou and now i>ing at Blank Wliarf I find on examination that the contents of cases ^ 1/20 arc badly damaged and bent, and I estimate the damage on them at lis.4 per case I also find that Case was broken owing to its not being securely hooped, and the contents were so damaged and bent out of shape as to make them almost worthless 1 estimate the damage to the goods in tins case at Ks.7 per case. Dated in Bomba} this 3rd day of January, 1901. JAMES GREEN, of the lirm of J. GREEN, SON (1 CO Kecei\ed the Survey Fee of Rs Bonded Goods. When a merchant imports dutiable goods, he does not always sell them to arrive, and, if he paid the duty of ail unsold goods upon their importation, he would requ^e DELIVEBY OEDER. 61 to sink a very large amount of capital, for such goods at times remain on hand for years. A system has there- fore been arranged by which an importer of dutiable goods can, by signing a bond that he will pay the duty when the goods are cleared for consumption, land and warehouse the goods in a Government warehouse, or one of the bonded warehouses or vaults, without pay- ing the duty until the goods are required for use, when the goods are said to be In Bond. The place where they are stored is known as a Bonded Warehouse or a Bonded Vault, and they are handled or sent from place to place by bonded carmen, who are licensed by the Customs, as all goods liable to duty are only removed under the superintendence of the Customs officials, who either go with the goods, or send them in locked vans under Crown locks and keys. Delivery Order. A delivery order is an authority to obtain goods lodged at a wharf or warehouse by the importer or owner, and it must bear a Id. stamp. Merchants usually have their delivery orders printed in books (each order being numbered and beanng their name) so that the counterfoil may be filled in to show for what goods each order has been used, each order, of course, being torn from the counterfoil and issued after it has been filled in with the particulars required. Delivery orders are negotiable and are transferable by endorse- ment. The following is the usual form of book used when a delivery order is issued against goods which have been put on warrants, and the warrants have been lodged, so that delivery orders may be issued against them : — 62 A COXJNTING-HOtJSE GUIUJi- HOW TO BNBOBSE A BELIVEEY OBBER. 63 How TO Enborse a Delivery Order. A delivery order made out to Alfred Bird & Co. or ‘‘Bearer” does not require endorsement, and such an order is generally used by firms who have their own carts and carmen, A delivery order made out to Alfred Bird & Co. or “ Order ” wall require this firm’s endorsement, as follows, before the goods can be obtained, or the order given by them to another party, and the endorsement here shown is known as a blank endorsement. Example of a Blank Efidorsement on a Delivery Order, o o -e CQ C K 2 ? Pu < The goods will now be deliverable to bearer, and the delivery order could be passed on from hand to hand without further endorsement. If Alfred Bird & Co. (to whom or “Order” we will assume the delivery order is made out) wished a carrier or carman to collect and deliver the goods for them # 64 A COUNTING-HOUSE GUIDE. — say, Carter, Paterson & Co. — they would endorse the order : — € eS O O o Q -2 ►> ai ^ -§ •« m O to d o § ^ g W d o dS Q - < and give the carmen separate instructions where to deliver the goods. If Alfred Bird & Co. did not actually want the goods at the moment (or only wanted a part of them), they would endorse the order : — o o J3 d 03 d 0} ^ o a X P X M- 1 X 0^ >M a> -C at P a Q 2 X ■s X If Alfred Bird & Co. wished to transfer the goods to 5 66 A C6UNTING-H0DSa ©UIDEi I Peak, Bean & Co., they would endorse the order: — o o ^ “ G £i PQ « o A3 o o o 'O o CO oO « •T 3 cn a* a a .• HA 'd « 0 ) e « S Pm ^ '"tJ A. ns o JO c 6 a> 2 CQ c o H 7 » O Q •Si CQ W Pm A~i HM when the order would require John Brown’s signature, INDENTS. 67 either in blank, or in favour of another, in the same manner as the examples shown above, the order thus passing from hand to hand either m blank, or m favour 'of a named assignee, according to the wishes of the last holder. Indents. An indent is an order for gootis, sent from the other side of the water, containing mil partiruhars as to the execution of the order and the terms and conditions upon which it is given. In India, wlven a naiive wishes to buy certain goods, he ^oes to one of the European houses established ihero, and tells Mieni h:s requirements. They thereupon make out an indent 1uhi\ specihnng the goods lie requires, and he signs his mine ai the bottom of the writing as agreeing to the p.ir oiase iieuig made on his behalf. He is then called b\ tlieui an indentor because^ bo indents to Iheiu. h\ t* gnmg ins name at the foot of the indent, the gofid-; ho recjUiits This indent, or a copv o1 it. i- then ® 52 I gj fi o Q .-I ■~£& . Ss g -»3 X d 3 T G * S'JS-S 'tJ a O) Q C as S ' r* CU 40 «44 S t O O * ^ «►< 't3 O 9 P 3 d fc< % c « 9 «M 4 } ... ® ^ o t ® c C -W i ®t C s ® c ® o o , d C;^ 1^0 ■ 2 : f § ® o g -»a h-t 4 ^ 'T? o T P ® ® 5—*' 'O ^ d r C x: 3 : c 3 ^, ® o P cH|£ WJdi ; M oi CC 3 q ' I s q ! 1 (S QjdOrqvo^O 43 qj-M M q — c3,^ O ®^SW >., 40*'Po^^^gCJ ' 5 )S ®.g g-s “ d »p^ !ri ^T3 O O M nrj ® CO O 0) Q S3 - Oij-s § S a ^ S' I BO o a C-^S S>f- a &P a-a /-V 1 - w ry JU -S § g 43 5 oc O « iTD X 01 O H X o ^ tS o o 0) 4J r> ® -»s tS — < d - .j; »-CQ S ^ ® £ ®-P 4= a ? ® c *- c 2 d X P -5 q ct,«^ r — ® P P a P >^43 4 : d Cj ^ ^ ^ P ^ d 0 P “S'ra g ' 5 ,° g.'g •' £■ o t! a “ ■p ^ P ®* d d 5 ® 4.^ ti 4 a d IT P C C 9 ® P ^ _ ® d 9 P ® 4-> ® 6 rC ^ r" C O 'S ^ Pi p et . r - r' r? 4-^ ^ S ^ £ c S? ® S c, p P T g-CTT c ® 4- C C P O P *“ q P S C P O ® ‘■2 ^ ^ T O P ^ P ® I”' ® ’T. d > ® 2.P ii o £ 0 ; C- 13 P S X 5 ^ X :: p»rj d S ' flj P n P ® cw O ^ 4^ d > d js O ^ I4 bC a « jS P P «5 O P -p 52 ?|e 5 o 13 -p d ® u d >► 2'S’® Z'P *^’5 o A- q 5 vh. ^ c P P - 4> 4^ 2 ® g S 0 d . Px 'f q4< p .* o P .2 O ^ rq 'XJ X, ’ w 2f ^ *<^ Mi# P P P 5C 3 3 q -iJ c C ^ O . p- c5 9 ® ^ ^ CO o cl d > d X d i 3 bc £ ^ 2 c S q ® P W5 O p C d ® ^ p c 4 -* L# IT^ L# -♦-43 P tr S'" O 4 j 0 ) +a 2»t- p p fli £ d cs ® (2 o n 3 'Si S recover the amount of anv deficiency in con«equonce arising, in a Biimmary way, and we agree not to raise any dispute whatever in respect to your actions in the matter, but hereby undertake to make good the amount of such deficiency, together with the exj^enses incurred thereon here, your Paying and Selling Commission at 5 °/p and interest at 9 per Annum, waiving all advantage thereon, but should the goods arrive before the Bill falling due, we agree to retire the same in the u«ual manner or to pay cash before delivery of the Goods if required. INDENTS 69 0) ^ 4) OB 0) I ® * 2 ® -H S 5 ® oS S 43 T3 > 4* ;h 4-) E « " « S ^ M »*H CJ 00 S w £3 no gj p H 3 ^ o ofl 2 c3 O y <» y *=* +a M >P c 3 ^ 0^0^’^ u ^ z ^ ^ d ^ |)S S£'^ e^'Ssv d ^ ns c o t: o . a o fc i^ P tf- P GC ® «5 -rj y C ^ fc, o C - ti >3 O ^ SO *-> Q p . y Q y *j 43 *s c. *“ 5 - « a a - « C 5 3 ns ^ C ^ V -P •r' , / d "o P -S - ^ - < *=”" i o o = £ w "33 ^ ^ ^ tr n P o o 2 P SS 3 ^ 3 2-' ^ V. aS f5 w ^ i-n § y 03 7 GDC Jr -< 2(2 3 P4 O o .r >^01- ? rt — ® z: Gc 3 d -t; 0 '7 >- 1 - J. — _ 0 3^ -P £ cc ° ^3 P O ^ 5 0^ O 03 « >»rd GO^ ^ P O ^^CCcBC-* — •*®M-io8^^o8it^t>«» S °« 3 “ S g 2 >'32'— C§0<9 ° g -§ O a g;2 S ^ y >-P d 2 -P 3 3 S w P ^ o ?« yl. k4 O ^ W •eiT cr g P d d ^ 2 o P 2 ''' '-' iM ^ .IN . 3 iJi3>°Po'Z'p S ^p-gozSd2z s f W 2 a S “? g, 'i>^z^p24:'P s: o2o«>^— ..^S C r^2®42g3a>d 3 j d O T3 - 0d^'P£2©y r — P /■?j*j O j£,Cjwd»^r“'~Cli o' oS^d — 'CnS^ Cj ^ ^ O. 0o7— -©dO o £ ^ d-S'P'^ 5 z -rd o d ©^d"*" 5^43 y ^ 43 O O — O 2 GO P — — . c 2 --z © w !t3 3 d ^ '5 © :! /* CO © ^ 43 O — r © © r- ^ *" a-S P P 2s dy?'£'P'5""lr. P ©43 03 P GOo" n r »- « Ur ..5^3— i^zyzd*^* 2^ay'C-P-©2.2>- -- aT3©a©^'p©3'.^^Gc=o . **-4 — n tj •^ n w ^ ^ 4sdgi -d°2^nr7 *a©PyP£>.>'0'Pi^*}rj© a5'aSo3 = -a^aE?,§i Co434io©diJO'C_ ©'T3 C tm — ^ ^ 2 w r! H ^ •«* ^ r* I ^ ^ 5 I ' i 5 Zi •"• p^-p GO P -' r* D P <*- O P^ ^ *_J P ut, z © 45 © Z ■*!> m o ^ e © 4a o c ir' © 2 d d ^ O p 45 O 43 4; o © p* d 43 O Oi'Z ° • o'. 43 «1— OC !f e »s O © i3 d - 2 X SB o °-S-3Wl5-^ ,2 -t.a3ai» ^-35 s'® S g-g oocno©©!}*- GO <. © >»<£> ns j., p< 59) Ci i.. §{ - ^ c ■- Q CO *4««> fiO ^ ^ « M m0 &H ^ * ^ ~ y *1 © 2 •JS IN* nO C "N «. ttj JN* 5P d ^ ^ M ri ^ • © Ph I ^ c ^ E. ^ 2 ~ "w y P ^ ^ sj _ y> ^ © *P (M 5; - y > nO' no nC ••w 2f ^ ■c *>» 7> i! 351 ON* "O .C“P oj 'XT -5 -4i •N =2^3 ^ J:5^ S ✓“ IN* C P d 4 ^ 5 -O -=2 -5 r* m rm ^ yz ^ ^ S s. © —1 IHeasr h(Yp fins ordi*r <>l>tni tu n<>ii) htnids for 16 (toifs^ and o» place^^ mrnt irnr the irotd^^Ma- honwd^' so that nw niay send you fin ther orders. 68 A COTJNTING-HOTTSE GTTIDE. R .O g o c; o‘ o B o ♦o Vi o a> O o •«a 0 m *0 a o W « >* S i & •«» r» #■ o »© 0 pq S o ffi #» • o o ;:i: c o 1 ^ CO p? tj: CO W ^•i=: SdCQP®So ©0 ®rri O 03 »^ 0 Q 0 *!SJ 3 pt* C3 g 0^ g § S ei 3 ,JC 0 +»a)<^oSSb*t 2 rr'COOnS*^ 20 ^ vCJ^-^C 3 °^Cr; ^-,5 «£ §2 £ «s :0 ^ rC ? S 5 »>. -w _ fl o r> «- ^ c tJDS > *^0 0 ♦i ^ CS 5 OS (Q . 03 W>-^^ 03 Cr^'P o fe cj *r — I o ^ « g S T c-^p- J- p cx *- c ce V ■‘^ *-« ^ ^ ^ r^ w S o V ♦- c ^ cj o ^ 0.2 oT c£ ifiCTj S ^ ^ o i C ^ 03 '*-' ^ fl! to jIi-4P<^i**ioCO 0«’^ "is 0 P/vi Pi' 0 ! 0 <^03 P»l-^ 0 o oCC ona &I 0 >-tJ INDENTS f 69 a> xi •iM O "a U o CD O ♦5 o8 o w M 'tS O O sJC i:® -d Qj S x •n o ^ S OJ Otf rj '/) 4 J 0 ) 2 MH CJ efl p oj g en p 0 ) pj 0 * in od p ei) ^.2 P- d w d <» bD d 'H 0) 63 5^ Cd P y y ■« 43 C g " *3 O ^ i> -• OJ d ^ d o O e3 u d o; o f a; ao o d .ii rt 2 d d rJ^ o «-< i 23 y P bC ® ^ 'tS ii d ^ d § s ^ 'g ^ sbn 5 g w 5} o p g S IS ^ cs o 7 - d ^ d" 3 3J d ^ ^ 5i ^ ^ r i d f <»4 ^ - r-* /■ ^ f ^ »'^ 'S'P p '^. 4 . Ofl O 43 * n-l «> > 'Xi ^ O <3i ^ a> o y ^ UXI f? 21^. O 43 ^a £"-* 2: - d CD Ui O y +3 7 Pi 4^ d d d d3 d S d d O) o fl d o b 0 ;i 3 'P P d P r5d3 3 CO d o g fl * P 2 d ^ CO J>i f«4 m n-T O 1-§2 Sa^ % 43 ;-i d ® d 0-2 CD ^ 43 d -2 ^ d d »H d d 43 P P Pi c cr 'S d cr ® S r A 43 « “• d -4 a p P *44 •44 ^ O ^ — <1> rQ >. <4 44 d P . P r-4 p73 d o d Vi d > d d P Vi ^ d 3^ P O •‘do P •4 Qj >4 2 2° 2 p ::; w V- ^ o p d K ‘ 4- ' P p: d d gj <-i 44 O 2 bc "" p •P o d S s ^ ^ ^ ^ 0 ^ w ^ »iw d o ® f=^7 y =: o 3 js 'TJ 5r> j) o'Z'^ bo 2 2 d ^ d >, /- Pi d ••• w Pi P d ^ j Jr — P c 5 bc -- o d ^ ^ C iO - d ^ *” -C d d P 2 d _ r V *-> •P O <3^ 2 CO j:; 2 p o 8 -^ d d o P '^-4 P 3 43 :f d p cr 7 d 2! V 5 Sg ^d C a, d P t: - •P top 44 • ~k *••• X c o ^ ^ 43 d y c- P b£» - d d d w w ? c p .•d d C d id^dy JZOr- P-P—P w C ^ ^ ^ > 4->«l 0^ — ^c yd PP-eS-^P IP d- P •a ^ - d-p'^ - w — y „ p d ^ 43 •P'P 23 / jr ^ ^ r r- ^ *? o a £ ? 2 , 'P •‘“> 4^ O «-! / s p '“f /■ — -V y d , o to r -p c — — d d -> d V. d 30 -P d SC— - £ 2 -7 - d = d £ 2 - 7 5iF'5 ^ i_ or £—37 - < *2 i -r' H 2 P = • i -- 4 i #4 ri — 44 ^ d v< P 44 2 > -> t" 4*4 W P d -C d d 4P p 43 ' vl5 d d *4 J d r Vi 4f d bO - P ••I* 2 i »r* d P2 P / .4 d i; y-» w ^ ^ I— * ^ c s: li** ^** ° p; bop P 3 d < ® P op - t = >1 23 z'y ^ ^ — d 14 * A 43 d d r d d jS — d , • r or d . P bc d -P d d y , 2 d o 2 O D -2 ^ P O yj -P o 0 C •4 1 ;^ w d P p --rj P ^ 4 d *- P ,-/ d o ctf -P d O P n « — — d d OS £ — ' 3 p£ d • ^ p «s *“ d . 7 -P £ pos ;; ' -p -0 o P 3^ u. C ^ <3* > P JP ”P "P •— 14 , ^ -5 fi, 'i O ^ *4^4 «ii^ ^ ■•4 .4 y 0 3 P p ^ Si- o O cr O ® O bo 4». d -p .> 0*7 C 5 ^ bO d i 7 cC — ✓ r- p7 == r' ^ „ w tc 3 3 ■- £ "“i / mm ^ "7“ mmm _ “1 4 •2 " r3P P d 40 _ '' d £ t- < /'i ;:i -' 4 ! I ■ P i r 15 o "o ■3 d d c r aJ S '- p *•• &i *0 o •S p ***w o C cc s Js (-4 Q ec a> bj V. S ^ • I ° c §i? p 5i "§ S-S - VN,> ^ ^ '^5 S d* ^ P P o ::5 cv !! ? « 5 ; *4 bi •*- !ii ^ 4 ^ ^ ^ •uA ^ CO V«* s.y -Si P « ?« -w 45 V 4 ^ P 4$ ^ >> d X X b -r, S I 'N P o Q «« m o o < WH r=i >^ IX X < 'Jt "y* d « C, -j, 4H *W *0 •A t o d •-< "Hr ^ 5 ft -r ^ *4^3 O ^ ^ 4 o d ■;? $4 P; -o ^ P" 4ti P '*m. /Vprn in // •«/ Jitnuis for 15 (lojfs, and <>?,’ place- ment irne the irofd *‘ A/a- honudf" so that 7ve »tay send i/ou fm ther otdc^r,^. 70 A COtJNTING-HOtrSE GUIDE. Enquibies. Having received an indent, the merchant will send out eiiquires lor the goods to the various manufacturers in the kingdom, oa a form somewhat as follows : — Example of an Enquiry Form, ENQUIRY. Teleqkafhic Addrehs : “COKI), LONDON.” Ficnti * W. G. HINES k CO., 73 GRACECHURCn STREET, LONDON, E.C. .189 To Please quote us your lowest price for the followiog, stating the earliest time you could deliver f.o.b. Birkenhead — Aru)the7 Exa?nple, ENQUIRY 6237. Telephone No. 4289 Avenue. Address lor Telegrams **blLTOK,” IjO.NDON From H. J. BILTON k Co., Steel k Hardware Merchants, I 112 LIME STREET, j — LONDON, K.C. I Please quote us per return of post certain your lowest inclusive or overhead price, open iirm for reply witkin 21 days d/d f.o b. London, Liverpool and Glasgow, with your iiest cash discounts for — To 1900. Kindly state when you could deliver. Be good enough to mention our reference or Enquiry No. Pieaee advise us approximate weight. QtrOTA,TIONS. 71 t Quotations. In due time he will receive his various quotations from the manufacturers on forms as follows : — Example of a Quotation Form. QUOTATION. TELEGu\rHic Address “ WHIP. SWANSEA.'* From THE BLANK TIN PLATE CO , PARK WORKS, SWANSEA. .189 To In reply to your esteemed enquiry of the inst., we have pleasure in quoting you as follows, and shall be glad if you can favour US with the order — Open for reply on the inst The object of sending out enquiries is to get the lowest possible quotation, as competition prevents all makers from asking the same price, and, further, as an indent usually gives a limit delivered Bombay harbour, a differ- ence even ol a lew pence will prevent an order “ coming through." When thi) quotations have all come m, the merchant will look through them and select the one most suitable, giving instructions for an order sheet to be made out for the goods. All merchants have their own particular wording suitable for their particular trade or loquire- ments, but the following is a common form : — 72 A COUNTINa-HOUSE GUIDE. Example of a Merchant's Order Sheet, From B. FLOWER & CO. 15 Leadknhall Stbeet, London, E.C Oboeb No. 190 To Below we hand you an Order to be executed in .strict conformity with the prices and instructions given, any doMation from which will be at your risk, unless referred to and authorised by us. Net and Gioss weights of each class of goods, and measurements of each package to be stated on Invoices, of wliicli Two Copies besides the Original must be supplied Order No. and Maik to be put o^ all Invoices and communications referring to this Indent MARK Please acknowledge the receipt of this Order, and state date when Goods will be ready. CONSIGNMENT AND RAILWAY ADVICE. 73 Consignment As soon as the goods are ready at the works the manufacturer will write to us to that effect, and ask for consignment —that is, instructions as to their disposal, and if we wished to attend to the shipment ourselves we should piobably want the goods at Poplar Station, and should write the manufacturer a memo, as follows : — Example of a Consnjmnent Note. Order N(j dated . for Please forwaid at once to Poplar Station, Loudon, to our ordei A B & C Some firms have their instructions in printed form with blanks for the necessary particulais to be tilled in. Of course no set wording is required, the object being to get the goods here to our order at some convenient railway station lor shipment. Kailway Advice. As soon as the goods arrived here, w c should receive a notice from the Railway Company, called a railw^ay advice, in the iollowing lorm . — Example of a Railway Advice. GEEAT WE STEEN E AIL WAY. 74 A COUNTINQtHODSB GUIUJi ' <0 0 ) O *3 cr 0 h 1-1 J ^ rU • 2 e£ g 6 1 < 1 ^ a ^ d O s § § m T3 ^ < « c» t. &“o T g * 5 O S' o 01 C O ,, Oj -S 2 ^ 'C -i r c ® ^ t-1 43 'sj ii' 5 ) O is. r o « di 00 cd ;: £ CO d 2 a ? ar* o O .s. 55 cr^ £ © to r 5 5^ O CCS t S ^2 9 1-5 'fils's © © X *5 *-* ^ s ^ X 'r © a T/iW iVb^k'<» »»««/ be produced trJien the Goods are applied for. EAILWAY ADVICE 75 iL ^ O CQ jz; o 00 (D CA a> CO a> > o O) C O >> ^ —•'‘S -rj ^ S*^ S s - s $ « 3 •* rj '3 B LJ ^ ^ ^ ^ ® Bx ^ t- 4J O - s ^ Cm C i a? 5 00 Sb« P-Q ^ 4; V u !-• iJ = § " 2 c p c« .- O CJ O j3 P «i^ s ;;:* aj 73 2 ^7 a > C3 P » 2 p e> >« 5 S'- £ 4) cu O o'- 5f 3 M 5 P 5 c .O V ^ Siic'’C ° “ ■< r O >» *3 ^ r* t- fl* s ®s ■28g 00 > °.I “ '>^ "Ij 'D C ^ ^ #— i C , O ci 0^ c ^ - C P 5 S ^ flj ^ c 4) P »- O ^ 0) ^rP OJ ^ — w ^ll^l ^ ^ *^* ^ ^ r\ r^ « CS ® ® 43 r'-t 4-> ^ P O O i- O 4 > O -V — P 4/ P •' 1 ^ A^o) 43 p S 4; »7. ^ O - o ^ rj: p o ^ ® S !>>t^ - 4i ^ « — 'x J -r S- ^ O ~ i! 4> !/■ V w> ID OC 73 § ^4 o ID o p 0) sc a^’P'T! 9S® P»P®5« X:® 0 ®P 73 DrHj 13 > csJ^ ^P 3 § I 2 «s: fc* a “ i 3^ g S O cj ^ rt ♦73 _ cC *71 p ^ O 3S - ® -P 'P rt 'C'TliS P^S S ^ ^ si^ ■” 1^ ® ^ P o^ Sf ® 3 3 p — ♦J pL,jz: ^ cj o 4) «*-• ^.73 p j:- a - =y.43 w ‘ - s D "3 y' h . P 30 O P O P o 00 -M 0* M) ^ 08 p!4 2 r* ly CO **“ 7 3 c P f— i a> K p ^ *- 4> r^ ^ 5? A> ^ ^ -»^ wm^ PM ^ Sc bp-4 a** p8 o8 P ^ ® , p = P |)” P 53 .H®S.«§id 5 g PS Cl. X CO Q :z; o o ►j « pq w o /. p -%* N :5i:'3-=S b P ^ P * c ^ '^* 2 . / oa ti p 3 rP PT-P .p: _ „„« C‘t S ::5 * S*^ fa -i-B " -•-roBT _- PPe3c< - iiZ^^ B 1^ *55 « '3 15 o ^ ® 1S ol ^ h* ^ to o >. p ® £ «= s 2 5 - -fe i 2 S '® 4> '5 IS 73 P3 2 b - -1^ . ^‘ 32 ?® 2 013 s- _A_a ^ ^ cC c® ^ p O O D ,^ CO Tt* b +J ci ^3 , a> P3 4> o P p a. 'P —7^ 73 03 -' 5 2 O-P y s ^ - b a> oiP^ M O On >*iS r 2 , ^ -O - p b ^*43 Sc - *= 73 c to oc w * ^ ^*Om 08 _ W I— n *-< a P b 2 fa 2 P! !- X ou B P fa o n-. PC o ^73 V P ^ ■D p b ® 00 i4 « fa •*~* b rl 2 ^ ® +* 4) JP O 'P 08 ftr. ^ ^ ^ W rl ® B 3 ® 2 2.2 fa — I'o P 'T- o 2 £ (N -b ® - -fa ^'^.2 ^ S ^^- ^ « ® 4^ 'CS C^ oa ^ +a *— • ca-— p o P b p b* a)'p4 —i ? 7 'S b ® 2^3^y44^>PO *'5^8^3 1^5 2 3 5-2 a ^ ^ -'Bo ^ ^ ^ C3 • a> 3? 5 y -P'S 2^0 b^b'^V'/J xfafai'X'— *73 Ha fc j ' -zf-a §•§ * c" ~S 24)5g^*p^5'^®,3 Si t> p b fa P C - faTp Cb”b • O ' « O 00 .'ll? . ^ -=& sliZS^ J.- S I ” fa'O I, 3 I. 5 c 4 ;- c s ^ - ^73 s. £ ® ® * >>^ 7 — b P3 "* cs u o p 4> ®:p 05 QS ***■ V r-p C •(5 C JZ ^ >4) 4^ ^3 * ® 0 1^ ^ 2 ^ ^ p bfe*4- ipp c jc ■— 4) *-4 n -b S «n3 ® P fa 'B'2'5 § § ^ 76 A COUNTING-HOUSE GUIDE. etj j' O ilc ^ S a> c S3 >. O) s o — o - - ^ o ^ 0 m 4 • Si 5 ♦J c X 2-^0 JZ ^ O. ^ ^ U: ^ *s» Xi ' *** e$ c3 j' 3 £ #1^ ^ ^ ^ a if &§D ® i. cS ~ o ./ J= C ^ iT sC ^ C s c t rt ^ a. = 5 ^ rf J" ^ / -tf X c $>i« <•* - o r ^ y ^ tS ^ 2 3 - SP^ a> w* -- fc# ^p* ^ >, ^ ® 0 ^ i 1 - c CS ^ C CriU ^g ^:: oTO 2 c: :S £ fc'S -2 §£ ^ rt 3 *3 tr r*. -2 .i= c ”c ^ 1 ^ 3 ^ — 9- O 'T3 ® U s a5 »' be o o ® w « « y !> r 3 - ^Z. S.S / /• ^ 5 ® w - Z L ^ bt _ y Si ^JZ‘ ® 'tr x c ?* c ^ - t- rt ^ •" C; — v. r X r ^ ’ — ^ ~ — _z: S' rt i_ .rr-'^'rr-^S'*-' — - r:t.c / ;= 3= •• ^ y y s' bi. y , O' J y X u 1 ~ -B y — rt X. - ® *“ *- » . i** si ^ r, / ^ -* S i, i' 3 ; ,.* JT X ^ ^ ? c E.- 'x - " ^ *— ,j£ XT rr^ — -.'v^i— ”.r'’*^ *- ^ u y "tr ^ ^ 5 ^ " ti ^ s •— • — ~ - ci C y 5 - o s bo ■rr bC y = 5 tr -Z S z o Id be p c J ^ bo ^ S p .2 rt a; > .P ^ a> - 4 -* y* £ lx ” S o A 0 \ ^ cn :£ 4^ CA Hm P ® fc: - £ 2 £ fl. 4> 3 PS S’» ^ » s* P O 1“ s-S >•? a> p £ P .E o be bC) - p p y c u tr o tn 07 ® — s — 2 S a> e?i |g ee a -. oS P P. yj £ X ^ . a? o 'T- — C 3 X ® P S o -i 2 btir 0,3r+- P P (i^j .x ^ 1-^ ^ ? X ^ l^t; o o Si S> E E a « o -■ r- o-P «P _. *-• X2 2 a as f'S -4-^ CJ or o'* *»c SoS flS «XX rt 2 u -r rs ® " P J rt ci ^ 33 P 3 .2 'p = E — Si Si c *: o d x* 3 ^ ai r« P — c c ~ X ® ^ y ^ — xP - t; o r — M i' 4-4 i t- !-• j-\ ns C 0 1 4. S « tJ 2 c^ ^ ^ 'T r-i 5 4, ^ X# -5 o a Si T? ■^'i^ it tAi c< y / ‘- - u P p p p: ® ^ P — < ^ , . IX 4 ^ * ' •V y '— ® X c tr,“P I- xt X 33 p - p o i ^ ""XL ® X 2 _ i u 3 p 5 . ® i rr* P 7 ? r- 3 } X i. P P. P u ^ Z Si p cj y C , c p. — 3 ^ _p pr ii T c ' a p r u,-'- •:: p ® y i- / -I P* iL P r - p ♦i* ^ a t c SP p i: ' t: 7 t£ f ^ ^ ^ r 1 ^ / J O ^ P-* :? ^ ^ C' , = = tec 2 . :: 7 -J — t, G _X -- s ^ S p *“ tr" £; y ♦P* ^ i J-, r^i -r %• - w ;3 / ^ -- ^ imM u :r ^ . f— •J p3 ^ c t, mi Zi ^ ^ ^ '^-* w y ^ 'JT ■—• ^ ^IIT* 2-.. rL""y^P. Pt?'*^-*-iP P P y ' r* ■*»v- -j# ^ 4 pr ^ •• *- ,p-^^GX-’^r»- / ^t 7 ii.P*'r"''SxC' r" *” *— P •* p a X" ^ ^ y p G P p £ — '“' t » 9 ^ ‘iZi c B z ^ it ^ ^ ~ '- ax'**, ^ T. rr. !•. it X.' . Z >mi ■* ^ •*’ X / ««< X p p ^ , - ® 2 ? = X ^ 2 2 *► ^ ^ - p" -^ "- 0 - G j J £ 's: ^ y o p- 5 > O ^ ^ 5 S "'5 s S sp: lx P ^ i. t- Pu 2 - ^ X V , -x' ^ X ;s - X ® — ^ / X ^ r 4 P2 Cl •S P C y — tL p— t— ■♦-'G pp:^aS:f.Si=i( |/^!= ^ 7 * 1 " p 2 .!c. 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— ^ ^ ^ ^ C ^ 5 ^ ^ ^ l«- M iTfv ^ 0 WW »■ •-* O tj P- "" Si d T* •'•< -S c C Uj"' 5 - -■*"' = P P ;S C.P xPSpg: t* fc C C“ 332 ScP^ ZrniitSm, "P £U P- PO *- '-3^ SHIPPING INSTRUCTIGNS. £ 77 and this shows us the terms and conditions upon which the goods are carried. Each railway company of course uses its own form, but the illustration given will show the reader the general wordin^r of such documents. CHAPTEE II. Shipping Instructions. But as we liave brought tlie goods fob ''free on board) we shall jirelei that tlie manutacturer attends to getting them on boaid tlie ship, and instead of sending him the memo shown on page 78, wt shall send him Ship))ing Instructions in a torm somewdiat as follows, leaxing him to make arrangements eithei witli his Shipping Agent or the Kaihvay as he may desire — Example nt Skippuia Instnictiofis Ord No datod Please si up tlu* above per Doi ks on the Customs eiitrv we attend to foi . _ . s , closing in the - . uist \ B & Co. Some firms liave their Shipping Instructions printed, m similar form to the abo\e, while others, to prevent the necessity oi passing the instructions through the Letter i^ook, ust^ their instructions printed m book form, with a (*ounteifoik so that the coiTesponding particulars may he vvutten on the foil as each sheet is issued. 78 A COUNTING-HOUSE GUIDE. Shipping Advice. Now the manufacturer, having no shipping agent here, will generally arrange with the Eailway Company to ship the goods for him, telling tlie compaily that they are for our account, and as soon as thi'v arrive here we shall have a shipping advice from the railway in the following form : — Example of a Railway Skippniq Advice. ( 572 ) GREAT WESTERN RAILWAY. (lOODS Dr PAKTMIONT, POPLAH OoODh hl\TION, LoNDON, E MR, 1 Im'J' \ HI that wo juuo tins ihiv {oi »Aaided the undoritioiiiMMod < '>)'■> K to thi - _ Do^ ks, on your a‘“count, foi '^iiipincnt on board tin* 1 am, t>iu, \oui oiiudicnt Seivant, No oi Packaf'u'i l)h>. lUiniON nv (i( OI)N Mark.'* Sr VI ION I AiMo'iutof I HoM I ( to pa> M INVOICE. 79 Invoice. As soon as the goods left the nianufiu-t ^rcr’s works, he would send us an invoice , and it shouid be iMjtTced that a manufacturers invoice of goods dilfers botii ni wording and m form from the shij)pnig invoice we shall send out to our customer. Example of a Manufacturer s Invoice, 22 ST ANDREW STRE^ T, BIRMINGHAM 190 M. }h7ii/htof PAGE k WKTGIIT, MARK A B Bombay. 1/20 120 Bundles, li .ih o'> lb , \ 20 Gain’ 1 f f > I I » » W lh> ,-^1 U 0 1 4 iO Cairiage l*aid per (i \\ U t • 1”: m 1 to \oili . JO, SlUCPiNG. Befoie we can ship giiod-, it necc^ ,’rv for ns to engage frciglit lor them, and h vV‘n<^; oht.i mv 1 a p»*oniise horn the inanulactur’ r tlmt Wio go(\^s v id l>e reiu"\ bv a certain daU', wt‘ turn tu o' r slopjo ig ^ards, or to c>ne of the published shipping li >1^, to sei' steamer vill be *‘on the bi'rth ’ aiiou^ tmiv . The ^ollowniig is the shipping card Uvod h\ ih‘ thhiu' liine * f steamers: — 80 A COUNTING-HOUSE GUIDE. Example of a Shipping Card, THE “SHIRE” LINE OF STEAM SHIPS. MIDDLESBRO' AND LONDON, Pm ^CRZ CANAJj s s Cardiganshiue. s s. Giamohqanshire, ,, Carmarthenshiue, ,, Meiuonkthshike, ,, Denbighshire, ,, Monmoethshiue, „ Feintshiue, „ Pembrokeshire, s s Radnorshire, FOR PENANG, SINCUPORE, HONG KONG. NACIASAKl, HIOGO, AND YOKOHAMA, Taking (’aigo for JAVA. BANGKOK, MANILA, SWATOW. FOOCllOW \MOY, (MIEFOO, TIENTSIN. (’flKMt'LFO. VLADl VOSTOC'K, and otliei C‘oast Ports at through rates at Sliippeis ijsk The Si'iE.NDri) NL\N i-cle i-ow muj S( kknn Stkamshib G L A M O li G A N S H I ]{ E 100 A1 ‘LOGO Toti> Net Reg 4,000 Gro^^ Reg hlK) H P Nominal I) DAVIES, Coriimandei R O Y A L A L H E R T DOC K S L\mt ShH'IMNO Dvv, ‘JJnl J.iini.irv hOR FREIGHT OR PAshAliE APPLY TO IHL OWNERS, JENKINS & Co , Ltd . Leadenliall Street, E C., n/ U) the liujkt’fh^ NOliRliS 6l JOYNER, Telephone— 11 BuA/ESNObE Street, Manchester, and 4478 Avkvde RILLITKK HORSE, IHLLn’EK ST , IAIN DON, K.C’ Agents in Middlesbro’ . T A BULMER Co FEEIGHT ENGAGEMENT. 81 On the reverse side of the card are the following con- ditions : — Who will not be accountable for demurrage on craft sent alongside without their instructions, nor in any case pay more than 7/6 per day for each barge, and then only after three working days have been allowed for discharging. All Packages must be marked distinctly with Port of Destination. Bills of Lading to be obtained of W PATERSON & SON, Cullum Street, E.C. Two unstamped copies required with each set of Bills of Lading. SO that shippers may know upon what conditions the goods will be carried and received. Freight Engagement. Having fixed on a steamer, we go to the shipbroker and engage freight, if there is room in the vessel for our goods. This is done by the shipbroker giving us a freight engagement, by writing on the back of the ship- ping card the tonnage we arrange to give him, and the rate to be paid upon it, after the following form : — 50 Tons Bar Iron, (a 36/- and 10 Primage. A. B. & Co. Primage will be found explained on p. 110, and as an inducement for shippers to keep to one line of vessels when shipping their goods, it is usual for ship- brokers to return a portion of the primage (generally a half) at once, and the remainder, after a certain time — usually at the end of their financial year. Freight. Freight means the amount of money paid for the use of a ship, or a part of her, or a sum for the carriage or conveyance of any quantity of goods in her. A 6 82 A COUNTING-HOUSE GUIDE. When a whole ship is hired, or a part of her, the freight is stated in the charter party, which is fully described on page 201 ; but when she is a general ship — that IS, carrying a general cargo for various shippers — the freight to be paid is named in the bill of lading, as explained on page 98. Freight on heavy goods, or goods in bulk, is cliarged at so much per ton weight , on light goods in cases, or bales, at so much per cubic foot, 40 cubic feet being reckoned to the ton, and such goods aie known as measurement goods Freight is charged on the quantity put on board, which IS known as the shipping wxught, and not on the landing weiglit — the weight the vessel turns out — which, from manv causefc>, is often smaller than the shipping weight. Where no stipulation is made to the contrary, the freight IS not due until the goods hav(' been delivered, and in cases where, for the ship’b safety, part of the caigo is thrown overboard during a voyage, the owner of the goods i> a loser of the freight he has paid for the gO(Kls althougli they have not been delivered ; but, of course, wheie the goods ha\e been insured, he can recover such loss from the underwriters as general -average Should a total loss occur, the shipowner has no claim for freight, but the opinion seems to be that he can claim his freight e\en though the cargo may be delivered in such a damaged state as to be almost worthless, pro- vided the damage lie not due to any fault of the captain or crew. Where freight is not prepaid, the owners of a ship have a lieu on and can stop didivery of the goods placed c FREIGHT. 83 on board until the freight upon them has been paid ; and, in such cases, it is usual to land the goods at their destination, and put a “stop” upon them — that is, instruct the wharfinger on whose wharf the goods are landed not to part with the goods until the freight upon them has been paid. In cases whore no consignee of the goods on board a ship appears to obtain delivery and take charge of them, on the vessel s arrival at their destination, the captain may, within seventy-two hours after reporting his ship at the Custom House, land, and, at his discretion, ware- house the goods, giving the wharfinger or the warehouse keeper where the goods are stored notice of his hen on them for freight — and the latter would also have a turthei hen on the L;oods against the owner for rent after the freight had hecui paid — when the wharfinger or warelnuise keepei would liold the goods until the “sto])” so placed upon them had been removed If within nin*d V davs after landing the freight has not been paid (or earliiT at his discretion where goods such as fruit, fish, etc , are of a jierishable nature), he may order the wliarfinger or warehouse keeper to sell the goods at auction, hut notice of such sale must be published, and also given to the owiU‘r of the goods if he can he found, and, if found, tlu' freight, rent, sale expenses, and all other charges maybe deducted fiom the proceeds of the sale. Should a v<*ssel during a vo\age become from any cause mca[)acitated from complt‘ti ng her voyage, the captain may lure and tranship the goods to another vessel to take the goods to tlu'ir destination, and, on arrival there, claim llu? original freight on their delivery. But should the amount to be paid for the second ship 84 A COUNTING-HOUSE GUIDE. exceed the freight agreed upon with the first vessel, the extra freight charged would fall on and be payable by the shipper. Dead Freight. Sometimes a shipper, or a charterer, fails to put goods on board a vessel for which he has engaged room in her, when the owners have power to charg^. the value of the freight engaged, although the goods have not been shipped, and this is called dead freight, the amount of which, when a steamer is chartered, is stated in the charter party. With a ship carrying a general cargo for various shippers, a claim for dead freight is seldom enforced, as the goods which miss one steamer are usually shipped by the following vessel of the same line. Short Shipment. It sometimes happens, too, after freight has been engaged, that the goods arrive too late and cannot be put on board, when they are said to be “Shut Out,” and they remain for the following steamer. Or it occasion- ally happens that, from various causes, only a part of the goods are taken on board, when there is said to be a “ Short Shipment The goods left behind are then said to be “ Short Shipped,” and they are generally taken by the following vessel. Having now engaged our freight, we must order up the goods, and instruct a lighterman, shipping agent, or the Railway Company, as the case may be, to ship the goods for us on board the steamer agreed upon. LiaHTBBMAN. ’ 86 Shipping Clerks. The shipping or forwarding of goods is usually attended to by a shipping clerk, who should be thoroughly acquainted with the docks, the Custom House, and the general routine of his particular department. A good shipping clerk who knows his way about ” can often do, in the way of shipping and dock work, what seems, at the moment,, to be an impossibility. When goods are lying in the railway trucks, he knows just where to go and find them, he understands how to* avoid a short shipment ” ; he can prevent deihurrage charges by not ordering down his barges too early ; and his services are most valuable when it is necessary to personally see goods taken on board. Shipping. We have already shown the mode of procedure with land-borne goods, where the liailway Company act as om* agents in getting goods on board, and on receiving the Kailway Company s shipping advice, shown on page 78, which indicates that our goods are in the course of shipment, we shall proceed to make out our bills of lading, as will be explained hereafter, and as soon as the shipbroker finds our goods on his Returns, we shall obtain the bills from him, duly signed, in exchange for the amount of freight Lightkrm vn. But goods often come up by water in a coaster to London, and then the mode of sliipping them is more difficult, for we shall require the services of a Lighter- man to barge our goods from the river to alongside the 86* A COUNTING-HOUSE GUIDE. steamer in the dock, for which he w^ill charge us so much per ton called Lighterage ; and if Ins barges are detained longer than three working days, which is the usual time allow^ed for discharging, he will charge us Demurrage at the rate of 7s. 6d. per day for each barge detained at the ship. Shipping Documents. In London, for water-borne goods, the shipping docu- ments are in two parts — theBeceiving Note, and a similar form filled in so that the mate or other officer of a ship may sign it as soon as the goods are on board, and, after receiving his signature, it is called the “Mate’s Rect‘ipt and as will be noticed it merely asks the ship’s officer to receive the goods on board, and instructs him not to take the goods unless he can give a “ clean ” receipt for them — which means that he is not to tak(‘ the goods on board the vessel unless he wull sign hus receipt that he has received them “in good order and condition,” as this gives the shipper an opportunity of repairing cases, casks, etc., or putting goods into condition, in cases where they arnve damaged. This clause, however, is often Ignored, and when once goods are on board a ship they cannot be discharged again, as by tbe time a ship- per has received his receipt claused with th(‘ state of the goods upon it, other cargo will have cov(*red Ins goods and so prevent the possibility of their being unshipped. We can usually, however, prevent a “])irtv’’ clause appearing on a Bill of Lading 1>} means of a Lett(‘r of Idemnity, which is explained on pp 118-115 RECEIVING NOTES. 87 Keceiving Notes. The following is a copy of the receiving note used in London * — Example of a Receiving Note, TO THE COMMANDING OFFICER OF THE Ship Captain for in the _ . , „ _ Docks PLEASE RECEIVE ON BOARD. THOMAS WILLIAMS. 190 NOTICE.— NO (U)ODS TO HE TAKEN ON BOARD FOR WHICH A CLEAN UECKIFT CANNOT BE GIVEN, 88 A COUNTING-HOUSE GUIDE. Mate’s Eeceipt. We now come to the Mate’s Receipt, of which the following is a copy, and it will be seen that this also asks the ship not to take the goods on board unless the mate or other ship’s officer is prepared to give a clean receipt in exchange for it : — Example of a Mate's Receipt used by Merchants, BECEIVED IN GOOD ORDER AND CONDITION ON BOARD THE Ship . _ _ Captain. for . ^ „ Ftiym THOMAS WILLIAMS. No goods to be taken on board unless the Mate or other bhip's Officer is prepared to give a clean receipt in cxcliango. 190 Lighter alongside Dischat^ed Signed Chief Officer 89 mate’s BEOEIPT. The following is the nsual form need by shipbrokers when the merchant does not issue a blank for the mate to sign : — * Example of a Mate*s Receipt used by Shipbrokers. TUB ANGLO- ARABIAN STEAMSHIP COMPANY, LTD. Direct Lino to and from the PERSIAN GULP. Port of . „ 190 RECEIVED in apparent good order and condition on board the Subject to the Exceptions, Limitations and Conditions of the Hills of Lading of tins Line. Marks & Noa. Quantity.! ( Goods said to be I ( \ V i Remarks. 1 ^ Olhcer's Signature. Name of Shipper 90 A COUNTING-HOUSE GUIDE. Clauses on a Receipt. It will be noticed that the form commences ; “ Re- ceived in good order and condition on board the ship This wording is necessary, as if goods are not put on board in good condition they would aiTive in a broken or damaged state on the other side, and the buyer there would either reject the goods or make a claim upon them for the damage done. Further, a merchant rarely sees tlie goods he ships — he depends upon his lighterman, and, until they reach the vessel, he does not know the condition they arrive in. If they arrive damaged, they must be put in good order or made merchantable before going on board, and to make sure that they are not damaged in any wa\ , the merchant must get the mate's signature that they are in a sound state when he receives them. Now a mate’s instructions are to protect the ship,” as, if he sigxu d for damaged gotids that they were in good order, the ship would ha\e to deliver them in like good order at their destination, otherwise a claim would rest on the shipowners for the damage done. Therefore, a mate, when receiving cargo, if he does not consider that thcw are “in good order and condition,” he notes on his receipt the condition they are in as he receives tliem on board, such as ‘*('ases broken,” or “Bundles biose ' , and, vvhen his tally does not agree with the numher of packages named on the note, he writes . “ - cases in dispute , if on hoard to be delivered,” as tins exempts the ship from discharging more than is found on board, m cases where his count and the numher of jjackages he 18 asked to receive do not agree, for, sometimes, although a stated number of packages may leave the works, some A BACKED NOTE OB A BKOKEIi's ORDEIl. 91 of them, from pilfering, or other causes, may not arrive at the ship’s side. They are ‘‘ Lost in transit,” and the railway or other carrier who signed for the full quantity received hy them are liable for the value of the package lost whilst in their care. Demurrage. At the foot of the receipt will be noticed “ Lighter alongside “Discharged This 18 for the mate to sign the actual time at which the barge arrived at the ship’s side, and also the time at which she was discharged, and this shows who is responsible for demurrage, in cases w’here it is incurred. Almost all lines have a clause on their shipping cards as follows “ The Company will not be responsible for demurrage on craft sent alongside without written instructions, and then only at the rate of Ts. 6 d. per day for each l)arge, nor will they be answerable for dock dues or lighters detained A Bac ked Note or a Broker’s Order. The ship brokers of some hiu's, particularly those of the P. i'l 0 . Co., endorse the icceiving note as follow's : — Example of a Broker f> Ordt f, Ship Tons, to be lUonghiiie 0 \ M day of IIKK) A. B A C. when the note is called a Biu'ked Note, or a Broker’s OrdcT, as this tells tht* mate that freight has been engaged for the goods, and that the barge is there by the shiphroker's instruetions. 92 A COUKTIN0-HOtJSE GUIDE. Whabfinger’s Eeceipt. With land-borne goods no receipt is issued to the shipper in London, but, in other ports, a wharfinger’s receipt is granted, so that the goods as they arrive by railway may be unloaded from the railway trucks on to the quay, ready for shipment as soon as the vessel arrives alongside to take them. The following is the usual form: — Example of a Whatfiyujcr'a Receipt. THE BRITISH AND COLONIAL STEAM NAVIGATION COMPANY. LIMITED. Direct Line of Steamers to the Persian Gulf (via Suez Canal) GELLATLV, HANKEY & CO.. 11 .Albert Square, Agents. MANCHFhlFIi, . . „ 189 RECEIVED on Quay from _ -- - . for Shipment (provided there be room) on board the Steamer “ for the undermentioned (Toods, subject to the conditions endorsed hereon - Marks V . 1 ^ ! Description of Packages, Contents, Gross * ; Weight and Measurement. This Receipt signed subject to the exceptions and rentnetions of liability contained in the special form of Hill of Lading used for the Steamer. All risk of River Craft, Lighterage, Eire and Flood to be fionie by the Shippci-s This Receipt to be given up and Freight paid in exchange for Bills of Lading. Packages must be distinctlv marked with port of deHtination. Wharfinger. wharfinger’s receipt. 93 On the reverse side is : — The within-monfcioDod Goods are received subject to the following conditions : — Any person who ma\ wilfully and surreptitiously ship or attempt to ship any Outipouder^ Aqnafnrtis^ Oil of Yttrioly Oun-Cotton^ Gkmoin or lilasttyuf Oil or Nih o-Glycer%ne^ jrre- porea Tannin^ Fog Signals^ Petroleum^ Napktlui, Paraffin OtL Sjnrits of Wine^ Father ^ Camphtne^ Twjtcnfiney Tar, Peiciisswn Caps, Tjucifrr Matches, or other ai tides of Kxplosiie, Inflam- mable, or oiheywise dangerous nature, on board one of these Steamers will he liable to prosecution under the Act 17 and 18 Vict., c 104, s d‘2^), or under the now Act 29 and 30 Vict., c. 09 The Company will not be responsible for the safe delivery of anv such aiticle so shipped, and will hold the Shippers responsible for damage-, in case of need The Company will not be responsible for Silk Goods, Specie, Jewellery, Plate, Watches, Precious Stones or Metals, or other valuable or ha>iarduus articles, unles» thev shall have been specially agreed for at the Office, and the \alue declared in the BilK of Lading Th(*8e special conditions bem<^ necessary for the ship’s protection, all shippers should be most careful to abide by them. A whartiiif^er’s receipt, as will be seen from the speci- men ^iven on the previous page, is merely the wharfin- ger’s receipt for goods received on his wharf or quay ready for shijinuuit, and he too, the same as a mate, notes on the receipt the state of the goods as he received them, if he does not consider they are in good order and condition ; *’ and when he issues a Dirty ” receipt, it will be necessary, in order to obtain Clean bills of lading, to give the shipbrokers a letter of indemnity, as explained on pp. When a wharfinger’s receipt has been issued, it does not neces- ■» 94 A COUNTING-HOUSE GUIDE. * sarily follow that the goods will go by the vessel intended, as the document reads . — Received ou quay for shipment (proMdcd there be room) on board the steamer and the proof of shipment can only he ascertained from the brokers returns, on the receipt of which, if the goods are on board, they will only issue the sigiu'd bills of lading. And here is the difference between a mate’s receipt and a wharfingers receipt : the former is a receipt tor goods actually on board a vt^ssel, while the latter is a receipt that they are on the quay aw^aiting sliipment For this reason, wdiile a mate's receipt is a negotiable document, w’hich is freely ]>ass(ql on from seller to biner again>t payment w'lu‘n goods hay(' been sold f o.b., a wdiart’inger s receipt is not always accepted by the buyer, as it ^hows that the goods are not yet on board Most {lort^ outside of London do not issiu mates’ receipts, ami, consequ(‘iitl\ , a wdiailingers lecfspt, until the bills of lading are issued, is, in most ports, the only document that can be obtaim d as repn seiiting gfaxls sold f.o.b a steamer A w'harlinger s receipt must be given uj) to the shipl^rokers in exchange for tlie hills of lading, the same as a mat(*s receifit. otlierwise theu‘ would be tw'o recaqpts in (orculation for the same goods — the bill of lading showing the goods to be on board, and the wharfinger’s nxaupt showing tium to be on quay But, as sometimes happens, when the bills of lading are issued Indore the wdiarfinger’s receipt has shipper’s measurements. 95 been obtained, the wharfinger endorses the receipt" B/L issued,” when the receipt becomes of no value. Freight Note. The freight note* is a debit note for the amount of freight to be paid on goods shipped on board a vessel, and it is sent out by the shipbrokers as soon as they see by their Keturns — that is, a list sent to tliem either daily, or as soon as a ship has closed lor cargo, showing all the goods received on lioard — that the goods are shipped , and a freight note being sent to a shipper indicates to him that the bills of lading are already signed, and that they can he obtained in exchange for the match, or the \Nhartiiigcr’s receipt, on payment of tlit‘ amount of Ircight Sifirchii’s Mk vsruEMhNTs When freight ih charged In meahiircmcnt — that is at the late of dO cubic lect per ton ~tht‘ shipper usually stmds to the shiphiokcr along with the bills of lading a memo, ot his own mt‘asurcmcms ol)tamed from the manufacturer’s iinoice. so tliat the ships olheer ma\ check the measurements as the goods go on boaitl the ship, and when tins is not done, the ship’s measure- ments, taken as tlie giuKlh an‘ in tlie slings o\er the hold, are generally accepted h\ hotli parties as correct. The following is a copy of a freight note : — Example of a Freight Note- 96 A OOTJNTINO-HOTJSE GUIDE N.B — It 18 requested that auy error in thi-^ Freight Note t»e notified within one week of its delivery. FBBIGHT NOTE. 97 Example of a Freight Note used in the Goal Trade. FREIGHT a/c COAL EXCHANGE, LONDON, E.C 190 and Captain and Owners of S.S In a/c with A. B. & Co. 190 Cu By freight on Tons Coals & p.t. I 1 nr. To Deinery i ,, Trimming I ,, Gear and Moorings 1 \ Mctago 1 ,, Clearan<*«’ Dues, Lights and Entries 1 ,, Discouiil on Fnnght Commission auil (’liarters ,, houis Dispatch (a p.h „ Signalling ,, Cash t «** *1 MV - s a i|l •2^-5 «j^ ■y £ * ® ji *1 sb^j: S) ^ 2 Si:* I.b£*S 2J£ >* 2 .S H eS s’^: s ^ 4) y •“ g = I j t* / V’ S— £ 2^5r _2 *" r £1* a> *t; £ — *- 21 ^ f4 » «V ^3h mm OJ i 3 .3 »- "* 2 t: i> ^ i £ S » .A» 5 S •Vr Id St 3/ A O tS 2 2 3^ « — o 00 o -J* A^**5s 4* b'Ss’S ® fe 5 #-i ?* S 50 i- 2 2 -g 5 2,'S b £> ^ 1. «5; 3 O " O O U <«-s -2 ® *4-^ ^ ?s i y S* o M o y;^5£2 dgs *. 'T 50 ®fc.*“5£* fc.2*'3'5:o‘~3. -ro-rt-j d2 3o°c^ d cCg K'SO ^*3-*** = i. a if 5 i cs £ 2 » ~ o a Ir « ^ " X ? ^ 3 C Sr -r- a- 4> c i £ y mm <•* 2- r C ‘f »: - 3i;’Tr'“'£*st;*^cto^2^' >* a x — V -a'jiaii::; ,2 = ^’“ -^cu — r t Z - / C •t:< r fc*^ a~ =~ = a £5 *« Kntm}iif^ it tUU at hutitut/ {t >>nf ntHfuf) 100 A COUNTING-HOUSE GUIDE CS A • go Q 3 ® g > * 2u v ^ U-r* 3 k-r = >» t c£ r 4S 5C »■* <** ~ a-* ^ i ? 35 ^ 2 > • _cs i t; «®*9 3 ® M t4M 3 0 0 ’ti r rt 3 £ C X T- aT S 3-3 ^ Ipt “ 5 * *S ts *-• *«■ ^ “ -.5- 3B («t •* '"3:2 a> 5c 3 ,3 rt - r 3-^ 3 » ^ 5 ^ « 3 oT a? a; iuD. •*“ = i Sc^P^ £ 3 '$ o S'? c . 1^ ■w « 'S u 'tr o o * «) '=* '3: tc c ^' ic c o r- 3> s ^ '3 rt >- 3 is ^ C 5p: ■ 02 02 3: a. ^ «8 31 42 •r' T ii rt 3 ♦- 4. 3 «fl 3 3 "d 02 ti a o 3 /• a> 2-5 Kl m»* ? ? t; -a ^ 3 - bkr X 3 — -r 5 I ~ 3 Ei. r t: r. r N- ^ S^ ^ M '■•2 , -V T iJ 3 : = i ^ r •— 4) w ^ i ^ £ ; ^ 2 C 3 J< s: a o ® « 3 ? »3= r "3 !S J-i *r >- ^ <3 O a 2 3 ; «-«• 2 I-** y- ^ -. >^* S£ 02 M » ji — i5 5 o “ 3 "2 w Os 42 -r -< *- c a- ^ H k 2 W 1! 3 ^ __ — t* — __ ^ T 'O- =^3 — 3 .ao-jO^aassjc r .- -ac- T t-S? -C*-— ^ I-i i~= a 5 = ;s Co 3C' 3CJ l-rl i|/y: !- --dc 3^0 -s^- ^J;*- -3u*'3:3~--d3 1,5. t! =''"r -sc;: ^a'r:~’’-^u-r'tr,5 — = ::'d 0 3 : — r.^a *— •3’3-^3;u ~'t:'-3:''a,- ‘~‘'’i>3 »- 3 ^ f --r-Tr * 3 ’^/— Ii-*^ V/® — l-rsc -.- CO rS-O--- 3 :.- ■S-g 1^ ?L -Tf c r 4) ^ "d 35 * o rr tiDti3: 02 f X 3 : >■• ^3 ^ 'S Os'* 3 «- u ra: 02 ^X 3 42 5 42 ,3 4 . ♦-> X ■*- - 4£ * 42 ^ a -j _3 c -< ' t- fc, «- a c 3 a a i"*— s d a ^ o a ■13 #< ^ • d a a 2 S ti js si Jd 52 o a X in C. a XS 33 o 6 s d s 42 ® ? •> S'S ® a 4* 3^33 3 *- a. 3= TS s-§ X i? ^ I — = 4 ^ -d £ _ V *M / ^ Y «« * f si £ :f — 3 : d i, ^ a o ti. 3 - «_ ^ u, *- »' O '" 3 ■; - o S 2 , — r a -r J. X 3 ; -3 _ - I £ "^ 5 0 d , a s- C c “ - - 4 - — u - »- 31 . w a <*. a a * -' rr ^ <0 " ^ a X ? C 3 ; 3 '*-• 1m M aM« ..a / ^ _*** ~ ? 0 a 3 — •^as—- -/ _rrt:/o^=t:a 4 a ^ ^ 3c^ :: d : ud— *- - '~‘ ' 4- ** 4, tr * ST ‘"O'” d5a"r-3^ d H • 00m f - “• !■» -t -: -tr . r — a 4- -'“ £ 1 / O / BM* ^ I* -f - C t. 2 3 5-0- a 0 c E. c ^ dui = = '^* 5 ^ s, "a ->■ ^ — — — 3 i, u - a •-^ . 0 - 4 3 o ''• *“ ’"■’t: 3 •^- ^ ^ PM ^ *-• ^ Z W :: I- ^ > o »» / S' ;c ^,d 73 d 7 ^- :z L y ij 1 -i 5 r jjc *" - / O. 0 ; c — 13 tl C - i X — - 01 — / a W S'' w *" -r - ^ ^ M- ^ •■* jn-M *“‘32 O, ^ i BILLS OF LADING 101 102 A COUXTIXG-HOtlSE GtJIDE. ’S’SasS’a-SSeSiifeJS^ S$ ■ »-S ^ .-r «- e fi.S : E SiO S o-fi S 9 s5 5 t-S S 2. V . I© $ s ft .2 tic *3 . i ts— ^ .fl ^ ^ 2*2 Mfl *■3 2 1| 8 §»sii« ,a«a§® ®« 5-S ®!5 t^j I*-® .. S'© a s fi c «* ^ s * ^ fe S jrf 2 . i2 « 'C^2 iJ 3 S s-g-Efsi -* s o J- ® « fl . a«e ii W •• JL 5 rt *© 5 »H rt© ;3iJ «c «s iic =1^g jP*© g© - « SJ*© ©’5 t lll£ o a ® »C 6C4)^ P aw ©I i $ -i-lS. * c - a tfl hS ® 1 a ’ . T u - ^ o ® 4 ^ 8 2 ►. 6 C O > »- “ u _5 y - ^ g a a •6 4 ® 0*2 J o 5 »--©j 2 ® 0, »5 ^ 5 ^ V t^fcpS js ©v ©— E . . P >* 2 I . I g *» 3 S' 2 W S «*C JZ tt i* I a; ft ! BILLS OF LADim 103 Q ® A ® lll^«S.;|.3||g-|| aJs s®'?®S'?gt; a (m o Ih 4t ^it « a Qu ?2 '*-' r « ••“■ § sli a i'''2'i I '-'.-tja .1 gE’S^-g 5!s.tfe-§-«-aS-* ^ 'Z . S®^0**©al!«*» 01 u ^ "l'S'3 y -.3 i -"7 H g ffl S 4 fe ii J « ^ i ©s •s i r 104 A COUNTIKG-HOTJSE GUIDE, . ■HC *-= ^ «» ^ w. ^ 5S ^ f C £-s r “ - • fc. — * ♦ 5-^ u-^r = 9 x" m »= S i. ■g s c ^ - >»*- « *> X ‘- - !* X C ~ * fU ^ I C O «J fe C cr ^ >>o -3 2-3 0 lelife S 5P «e d s 2 Se fc ® ' N O »*>« - OX'S C -7^ - c i 4) ' a « Im s cSm 2 ^ •■•“ , i 7 c i' T tf 7 -.btaxsr- sx - iC £ • ^ ’ >• eco £ 5 ^ "C ® ® fc - . Q SPv. ® ' be ^ *5 ® 2 : 2 £ b b*i< C3 O — 4 ; a •** ^ *- . p "-IT *+^ 2*^ SP . = e5 X® £ >-i2 ■ 2 2P§^ ^ c “C‘||«‘|"| I 2s &• ^ X I 2? 2 ^ \ ^ C fc. : 2 9 ^ y X I S &4J J^ a X 3J c 5:E‘c^ C . 57 pw ♦- rt, u 2 i ^ X i, .5 Jtsx ^ 1 2 ^ xx =. X ® !; = 7 c X Jc O »w — 2 ^ . ,^ 2—2 / cx « 2 t*2 x* ‘•li: T ac ® *« . 1. zn^-zHt .I 85 III £85 i-*. §- ? ‘■ii S'S X S.W 2 O- 2 2 *^23 ii ® C 1 *"I? B'iZI I 5x5s ®:i § ® ^ p -S>>2*2‘‘'c ®o ®X— X^®®V Jn"— s^^ 5 Pp"*ir!£ jJ £ ® - b o r o*^ "f ‘2 OXXx®^®x b"* Ort?" O ■ Q SSe U "• X • 0 9 3 . .-n®'2 5 3—> ^ tf^xv ''Cg 9m* w ^ X c -"» 55-=^ ^ ^ 5 b « ■^x - 7 C f ^ 2 SUSTxC --^Ciw—b " = V i ^ --95!: = ® 1 b.£.£ t- 2 a 5 7 2 ^Mot-r -r £>:Si.s = 5| ■a'^.x ~ « j. 2*^ — i 2 -• pw tr C' ^ 4. #i* ^ C» ^ ♦i# z" U 5 vT U ^ P— X. r*. »*■* -• • ai«,x*” b-^ ■"CSr*- ♦>»sr'* _ 2 H.- »■ r _ ^ -2 = c b 4 t. X »• 3 e* 22 w * o c j »£ 5 'Sc’S ® X 1^ ^ tfi ^ 2 i ^ 2 X i" ♦* fe C . *5 a.5 ^ y y ^ im thi m ^ 9mm -r i CSX W ^ ?f ^ «w t ^ **m 2 U C b "" f * T 2 a >. 2 ~ 5X57 2 '• >*x n — « 2y r'-^X'^ 7 -. *® 22 ^ , 7 c 2 ; 7 -_t: 2^6 x.t< -M a,® " 2 sbr-r s““ t- ^ « Jf iir 1* *• w “* i ? ?4T - u T -■ r-r: u a C --» r TT c *- a r s fc 5 d -• *m mm m* ^ ^ ^1— W— ' k? b c --^ ~t: 2 > 62 t. «'b -‘-i"'*"^C"-0'2=X a ® » r ‘' 3 t."'^*'C**** C ►'2 i 2 fc. . •*^CX^9X'*“" X •*; <- j" 'X ® 'Si—--?® ^ -■ ^ ^ A -* ^ W"* *3 ti ^ *1 •"• W ci 7 7- = * - 1 ® T »- 5 Z ^4 9 2!tC2 z T s X zrz ' ® 9b- C b 5^ *2 9 a ® - 0m 9m 0m m m : ^ tr r Jf ^ s jy— -»• s 35 •* luC-Sty-x - X /S'* Stl-^rS ^ j: a ^ 9 C« c r- S 3 90 ^ x' 5 ^«^/,' 5 cx:x ^ m V"^ 1 EC;'*' 2 «* =7 P a kj* 2 S-^f c = 7 g.^ £ C 9 n, ^xx.r X o — X * C ■'* 2 • ® X X X 2 •*"* — v s c r- Sx V — o "" ' X c: ^ g ” <5 «8 a T3 ^ s X ^ Ih 'S o S P > S -25 *5 X23 e^o 20 m sl'^ u 0*5 £ k.2 X ®*s ? »e “I S Si 3 I- *■“* 6U ® g <»' • « *mi4 7* - « « = HOW TO ENDORSE BILLS OF LADING. 105 How TO Endorse Bills of Lading. Bills of lading when made out to the ‘‘order” of a naiiml individual or firm are transferable by his or their endorsement, the same as a bill of exchange, warrant, or delivery order. When they are made out “ to order,” they require the shipper's endorsement ; and if he endorse.s them in blank ^ the goods are deliverable to the holdc) ; but if he endorses them to the aider of a named asfuijnec, they will require the a'ini^jnee^ cmloraement before the goods can be obtained. To make this quite clear, we give a few examples of endorsements . — If James Black k Co. made out a set of bills of lading “shipped by James Black & Co.” to the “ order of F. Thompson Co.,” then no one could obtain delivery of the goods until the bills had been endorsed by F. Thompson iV Co , as under — w’hen Messrs. Thompson could either get the goods them- selves or hand over tlu' bills to any one else, as the goods are now deliverable to the holder of the bills. But if 106 A COUNTING-HOUSE GUIDE. they wished to transfer the goods to William Brown & Son only, they would endorse the bills : — a o a O ^ o « 'H JZ o t 2 o ^ > ^ :r: o o C o o o fi eS 5 z; o CO =: O > S H X X X o so that William Brown & Son could not now get delivery of the goods from the steamer until they had endorsed the bills with their signature as follows : — t 2 2 - ■r. „ — ^ f '' t c ^ 0m mm0 eS ^ JS -= = X w X >: <> < * -J ^ :r Again, if James Black Co. made nut a set of bills of lading “shipped by James Black & Co." to “order,” they would simply endorse the bills in blank as follows : — HOW TO EKBORSE BILLS OF LADING. 107 6 o o xn w i«i5 -»3 when the ^^oods would then be deliverable to the holder of the bills whoever he might be. Any bowx-Jide holder of a bill of lading is entitled to receive from the ship the goods named in the bills, the law being that Any person in possession of a bill of lading shall be deemed the true owner of the goods specified therein, so as to make a sale or pledge by him of such goods or bills of lading valid, unless the person to whom the goods are sold or pledged has notice that the seller or pledger is not the actual hond-fide owner of the goods ” Merchants usually make out their own bills of lading, showing the marks, numbers and full particulars of the goods shipped, and send them in to the shipbrokers to he signed. As soon as the shipbrokers see from their returns that the goods are on board they (or, in some instances the shipowners) sign the bills of lading, and when the freight is prepaid, send out a freight note. The merchant, on receiving the freight note, will send in his cheque and the mate's receipt (or w^here no mate’s receipt is issued the wharfingers receipt) to the ship- brokers, together with the freight note, and the ship- brokers will then return him the freight note receipted, and hand him the bills of lading endorsed “ Freight Paid 108 A COUNTING-HOUSE GUIDE. Freight Kelease. If the freight is payable on the other side of the w atei% the bills would be endorsed Freight Forward,” and they would, in a similar way, be obtained from the shipbrokers m exchange for the mate's or the wharfin- ger’s receipt ; and when the ship arrived at her destina- tion a freight note would be sent to the consignee, who, on paying the amount of freight, would lodge the lulls of lading with the shipbroker, and he would endorse them — 21 ^ 3 O - 2 w in This endorsement is necessary, as the ship would have received notice of all goods “stopped for freight,” and the endorsement would show' them that the “ stop ” has been removed, the freight having now l)e<*n paid. The same mode of procedure is earned out lu*re wlien goodh sold ts ship are sent “ Freight b'orward,” the amount of freight being deducted from the shipjier’a invoice, the consignee here must pay the freight and get his bills mpanies have their own form ot hill of lading, and these* are to he obtained from the station(‘r'> named in the shipping cards. Bills vnd Dirty Clauses. It will l)(‘ noticed that a hill of lading commences Shipped in good order and condition," and it some- times ha])])(*ns, as we ha\e already stated, that g(»ods, on their arrival at tin* ship's side, are not considered hy the mate to lu* in good cTT() is a place where goods, letters, wear- ing apparel and passengers' baggage are fumigated on their being discharged from a ship m quarantine, in order to prevent a spreading ot the infection. (T)NSI(tNEE means the person to wlioiu goods are sent or consigned — tin* party to whom the goods are deliverable as named on the bills of lading. 112 A COUNTING-HOUSE GUIDE. I QUAEANTINE. — A law which forbids all vessels not having a clean bill of health coming from any port infected with the plague or any other infections disease highly dangerous to health, without first hoisting the proper quarantine signals when within two leagues of the coast so that such vessels may be avoided and deterred from disembarking her passengers or discharg- ing her cargo until she has performed so many days* deteption at her mooring, or until the port medical officer of health has pronounced the vessel free from infection. LOCKOUTS. — This means any employers “ locking out their workmen and so preventing them from working. PEKILS OF THE SEA are those ordinary penis and danger^ which a ship encounters on her voyage. BEKTH.— Th(‘ l^erth of a ship is that place ^^hcre a vessel loads ur discharges lier cargo. BLOC'KADE. — There is said to be blockade wlnui an enemy surrounds the approaches to a jiort as to prevent ships from (iiitering therein. INTERDICT of the port of discharge means a for- bidding to enter a port for any cause whatever LIEN ON (jOODS. — Shipowners have a litui on all goods f>n board a ship for the amount of freight due, and the goods can be detained until the charges upon them are paid ■> MASTER’S COPY. — An extra unstamped copy of a bill of lading made out for the use of the ship. LETTERS OF INDEMNITY. 113 Letters of Indemnity. The object of a ietter of indemnity is to prevent trivial clauses not detrimental to the goods themselves from appearing on the bills of lading, for the opinion of a mate, whose instructions are to '‘protect the ship,” does not always agree with that of a shipper as to the merchantable condition of goods when they arrive at the ship. It IS also useful in holding the seller of goods f.o.b* responsible for the number of packages invoiced by him when the ship’s officer does not tally his count. But let us describe these letters separately. Let us suppose that iron goods have arrived at the ship wet, and that the mate has signed for them Wet and Husty As we brought these goods f.o.b., the seller must take the responsibility of getting them on board in good condition He must take the iisk of their getting wet in transit between his works and the ship, and where he delivers them to the earners and obtains their « receij)t lor the goods in good condition, he must fix the responsibility on them. Our iron is signed for “Wet and Uusty ” ; it is of no real detriment to the goods, but we must fix responsibility on some one m case the buyer makes a claim on the other side. We therefore write to the manufacturer, immediately wo get our Dirty litjceipt, telling him the iron is signed for “Wet and Rusty,” and ask him for a letter of indemnity to cover us against loss in case the buyers should make a claim on the goods as soon as they arrive at their destination, when the manufacturer would send us a letter as follows: — 8 114 A COUNTING-HOUSE GUIDE. Example of a Manufacturer's Letter of Indemnity, West Bkomwtch, 1st January, 1901. Messi-s A B hfokers. Mes^is, BLANK cV Co SuDMihOKi KS, l.ONDOS, 4i It Jail , 1901 London Dfau In consid<‘ianuii of vi-ur gianting us Clean r>il]'< of Lading foi - TIT lionil i\ 1 ion ~ irK) lUiudlt - sheet lion, pt r “ Clan Mackintosh s from hoich} agrci to ludeTniiify }(iii against an} (hum that ina> lx* made against }ou in coiisiqucnce of ilie Male’s Ue( eipi l>canng the claU'oi “ \Vi*t and Uusi, Your-' truh , scAi i-:s A CO. Sfijiie sliiphrokers fuivi* their own form ol wording, in whi(di case it would h<‘ ntjcessary to follow it. Now it sometimes happens that the full numh(*r of packages sent from the works, owing to pilfering or losa FOREIGN INVOICES. 115 in transit, does not arrive at the shij), or the ship’s count as they go on board does not agree with the shipping notes, in which case the mate will sign his receipt : — “ Bundles (Casks, Cases, etc.) m dispute ; if on board to be delivered.” and we must either ^et a credit note from the manufac- turer for the quantity supposed to be short shipped, or obtain a letter of indemnity from him covering us for the value of the packages we have received short of his invoiced number. But in this case we shall invoice the lull amount, and accept the bill of lading with the clause upon it, telling our correspondent abroad that we shall credit him with the difference* m value, if the packages in dispute aie not turned out of the ship on the other side. If, then, as is usually the case, the packages in dispute an* loiiiid to h(‘ short, we shall credit our ca)rrespondt‘nt m ac(‘(iuiil and debit the manufacturer wht)se lettei ot indemintv we have received ( HAPTKK III Fniu.lov iNVOK'hS. A foreign invoice difbu’s both m wording and in form from tho^e used i?i the home trade. In making out an invoice' foi ahioad, llu* number ot the different packages or lots, ilu'ir contents and cost, as well as full particulars ot all charges meurre'd should always be specified , and great care' sheiuld he taken that no essential particulars are omitted, or the' lect'iver ol the goods may ha\e trouble with the Pustoin House em the other side, the Customs* authoritu's in seane* feueign countries being very exacting m this respect. The following is a copy of a foreign invoice : — Example of a Foreujn Invoice. 116 A COUNTING-HOUSE GUIDE. V •1 ! 'O i 1 0 0 0 0 > fH iH 0 ! ^ i f 10 r -4 to rH 0 fM« CO CM rH .g^ 1 ) g « l> CO to to CO 5 : ^ O < O « 2 « s a ■"s P5 :S iS hh o C5 X oj OD •S « "w ^ £ •« ^ cc I '2 «*• cc o* .5s c QD 1 • I 1 f. CO o> CO tH tH 0 0 0 i • ■ ■ t* rM CO S S Q* a> 4.3 .c •la p ce u c8 ao na tiM flS O 00 3 S o # o Of s s sr U w o Q> P< cO s ^ PU •.«4 ^ » -g 12 p efl oT I - O ' •* Ci p o p p> MCI 4.3 ce m* ai o o o P 4 = ^ o 12 o »- r" O 2? tr o o O r 06 o i s I -< "SC ^ p p s a . s •5 =1 j C5 3m O {>1 GR 4M i£ -4 ♦3 ^.-4 O kM 3 » p N C T? g P H 0 01 »-i rH CM CO r-l CO nM rH *o OD 0 -^T H* H< H* H« H* rH 1— ( rH lit V #k ♦• #■ » aw p o ’ 23 o o 00 I 0) o ® p (M p r« 06 P4 Q Im Pi oO oc 3 3 ED EC & o -M to 4 08 4P o »P CM to .3 s s 04 Carried forward 212 16 foreign invoices. 117 00 a> o 00 ■HI 00 rH fH tH tH ually the case, the iiuoice should be sent bj’ mail so that tlie receiver ma> know what goods are coming to him, and so make his airango- ments accordmglv But a copy of the invoice should in any case be sent b}’ the vessel, and a fuither copy hy next mail. Cr>xstr.vK Invokes Invoices of good'- shipped to the Tnited States of Amenca must he in triplicate, and each copj certified bv one of the American ('onsiiK at the vaiions lhatish ix)rts or l)y the C’onsul in London One co])y is returned to the merchant duly certified In the ('onsul, one copy Is sent out. and the other retained by him, and it is necessary for a paltrier of the firm to certify the invoices These are called con>ulai invou*i*s, and similar docu- ments are requireci by some Kuropean and Foreign powers as well, but the forms differ in eacli ease. The following is a copy of the (’oiisular Invoices re- quired by the United States of Amenca, and great care should be taken in filling in the exact particulars nHjnirod before presenting the Docuimans to the Deputy-Consul General here : — CONSUL AE INVOICES 119 LONDON No. - . — b\ indor _ . ire base j Lssti nation atureof MoichandHt* mount I' amc of Sivip tif kiioun ) ate - _ I (iw {H*r «lin*( tioii N»i <> ) (It (>« Lil titk ) eS ^ ■*~> '** S°^ ao <13 a o o o ^ 7 w) a ■5 rS I 2 91'^ 5 -T _ ci — r 9 - ^ f ~ H 3 3 — ns - ~ >J ““ j ^ ^ ^ -i. -r -3 ^ o 3 2 SS 'tJ O 3j 3J <1 3 • O >3 fc- O ^ l-= ^ b tr ' I 3 •o ^ 3 ^ 3^ 4, •- 9^0' ' ij£ ^ Crs :d'^3'3 g^ rs'^*^ — ..3325 t 3^3"3*^'3 O A P. ^ ^ sm^ f ^ to ;;;d3 cS;^i^nSO ''r— /• osi'^OtiD ^ ^ t mrnm m Q ^ 0 K P, ^ ^ ^ to ;;;d3 cS;^i^nSO ''r— /• osi'^OtiD ^ ^ t mrnm m Q ^ tMMi M W i -« a^ »-•— Il'-''*-^ !3 1-3 3 io.2"&^3o <■ »» Cy * > » CS 3 o ' /5 se ,! 3 - ' — • 3 •— ' M •«< w tp- w 3 S , C — j- 3 a> 3 3 : ^ 3 i = 5-1 2 o 'H , C 3 ^ g ' 2 S; ^ -3 c3 i ■% “t 3 — — •- 3^X20 C r* S >fi 2 O 2 r ^ —• *- 3 ns 3 ns 3 cs 3 3 »S 2 *1 4 ^ ;2 X 3 ^ 3 ®- 3 'a- 3 *3 33 5 . — ^ ~ — 9^ jz 0-^3^ - ' i.' .. a* 2 *2 *■• 3 ^ - 23 3 - 2 3 T ■:= - 3 ? o h:*^ ^ 9 .3 d d .. 3 o ST* ns - d 3 >- *— 4 a *»4 •*>( o o 5^ -« 3 2 , ^ kes ^ ^ o| aori)?''-^. 4> .-3 <*v 4 } ^ — - > •n ‘“■ 3 — o JZ £3 Z ’ — <'^ *4 ^ «a •.. X CL ♦> -*>4 C _3 jsnS.J-Q.wO !Q H^^tc-^3^0 .(>*2 ■ is aP h S S 3 w X* 1' 2 * ! j {t*< cMVt'd ftu* *<2 f }0 I . (, o o UQ . 2-*3y-^3COO o® .*^38 0~3333ir;23h-S « ^J= 3 > 3 ^ O !«» 43 jji S 3 a-i 00 £ TSl^-A-g rjxd*3 3 nSS Ji ^4)a'®J;;^-3^+a «n a3 .-s t. "2 '3 O Odd '— _ nn , n' '*« a- ^ 4 3 C* j- .2? c »- X n-T*** ^ -J — S W Q'O .-4 • w r* ^ 'y *«« T! 5 g - -"2 2 r j3 ^ o S ' i'S 1 o |; Q 1 55 It ^ i '3 S7J3;5 «JSoS 1 , 1,2 *3 CJ SS 0-3 ^«,cs , . ^ « - 2§^2§a> 1!;:.-^ .§a-§sis.ss (Contin^fid,) diiteounts, bounties, or drawbacks are contained in the said invoice but such as have been ' actually allowed thereon ; that the currency in which the said invoice is made out is the cur> rency which was actually paid, or is to bo paid, for the said merchandise ; and that no different 120 A COtmTING-HOtrSB GUIDE. eS o 2 t C o xM c ^ ' S 'S “ o 9 a; o ^ r fi eS z- a o c o « g c S < ® 5 r 045 s S-s 2 O orL::> ot jie o OS o gS5 o S o .49 c- CJ ■■ . •- « goo o ^ r: ^ §< si d 'SjS ••2 S'. o »- 90 o 2 3 5- «« ^ 'W E ® JS ►H *» c < g t a ^ « »2 § o to X ■** Oi flOD IS d no ® . JS"3 *•> X e* l! C M BS •Is Sm *T> o ■s S , TO o ,3 fci no 0 d O fl 2 S? >/i3 .2 d fl tT3 O 1 '2 a < d I Ik ••K oS ® 2 -* « JS *0 2"-= 5 c-f ® s ■g§-, ■4» a ° *0 d •' '2 ■** d ®.‘ax St 2 9 S g 2 0 © o O X ^ a >. C t-4 ■** *XJ a , a &cx 5 o ^ Q »t3 r* ■ B S .iS' d g- o'® 2 rt d © O M d -a d *" ^ S tJ no . « ° §|g ^ ^ I., £3 0 E 2 0 S ® S 1 2< o a :2 o 2 3 JT 2 S ee (D X •Sig a ■« £ S §5 d w « *a "d £ J^*S aS d d Ms ed ^2 ^ -4 a a ** .2 © - a *^2 1 5 cj d ** •- o i? 2 -s a, s 3'2 S' a o © a 5: ila i a 0) Ip- o* & 00 0-S’ j ^ «M» d - ** £> t> *a e ^ d ^2 a5 a X ’ o£S © M 1-H i.a Mf 4 a . M d < a

d 'Wh Urn O ©^ 'I's .a* 8)8 0^2 .3 3 S ot d 4- « a -g fl9 fl* d » 5 K ^ O c X S e- ^ the person he represents himself to lx>, and that the price stated in the said invoice, represents the actual market value or wholesale price of the merchandise described in the said invoice in the principal markets of the country, and at the time of exportation excepting as noted by me upon said invoice or respecting which 1 shall make special communication to proper authority. Witness my hand and Seal of Office, at Ixndon, the day and year aforesaid. CONStriiAE INVOICES. 121 The name of Deponent’s firm should be signed below the total of this Invoice. 122 A COUNTING-HOUSE GUIDE. Certificate of Origin. Some states require a certificate in the form of an invoice showing the origin of goods imported into their country, but the certificates vary in form according to the requirements of the state demanding them. The following, however, used by one of the European powers, will show the general import of such docu- ments • — Example or a Certificate or Orujtft. INVOICE of Goods slnppecl Messrs. .T\MEb Hunt ('f> , of London, on board the Steamoi „ hound for Gro>s Mark" Non Weiglit iiG Pack- Menh'iiuli't. , Oii^'in Kilo- ' ages Tlie aforeBaid paekagefi do not contain mure than is aboxt* declarod. London, _ _ 1900 . IMPORTING TEA. 123 CHAPTEE IV. Importing Tea (a Dutiable Article). When a merchant in Ceylon buys tea from a grower, or where a grower himself ships direct to England, he usually sends the tea to his London agent for sale by public auction, and although temporarily losing posses- sion of the goods, he is enabled, by means of document bills, to obtain a large portion of their value at the time of shipment, and the balance after the goods are sold. The mode of procedure is invaiualily the same ; and having shown how goods are exported, we now propose to illustrate how to import them, taking the case of a dutiable article — tea. Wiien the Ceylon mercliant ships Ins tea, he makes out a bill of lading, insurance policy, and an invoice at what lie con.siders the tea should be worth. He then makes out a set of bills of exchange, drawn three months after sight, and attaches to them the bill of lading, invoice and insurance ))olicv, the bills of exchange being then known as “Document Ihlls” These docu- ment bills he will sell to one of the Ceylon banks having a branch in London, and tlu‘ Ceylon bank will then forward the bill of exchange to its London branch for collection. Having shipped the tea and sold his bills, the Ceylon merchant will send to his London agent a copy of the invoice in a letter stating that a set vrf bills of exchange have been drawn upon him for the invoice amount. When the bills t)f exchange arrive here, the London bank will at once present them to the agent for accept- ance ; and, as they are drawn three months after sight, 124 A COTTNTING-HOUSE GUIDB. the date of his acceptance will determine the date on which they will become due. When the ship arrives the agent will pass an entry for the tea at the Customs on the prescribed form, and will land and warehouse the tea in a bonded warehouse under a bank letter as follows : — Example of a Bank Letter. London, January, 1901. THE BLANK BANK, L’D. 68 Threadneedle Street. E. C. Dear Sirs, Please allow The Monastery Bonded Tea Warehouse Co , Limited, to warehouse the following goods Ex * Omrah,** s. ^ A " / London, 1/200 200 Chests Tea. at their Abbey Wharf, Bill of Lading being held by you. We are, Vour obedient Ser\'antii, JOSEPH k SONS. Having filled in the necessary particulars, the agent will hand this letter to the wharfingers, who will take the letter to the bank named, and they will endorse the letter somewhat as follows : — Example of an Endorsement on a Bank Letter, A» holders of the within tea, we asHent to the tea being landed at the Blank Wharf For the A. B. Bank, JAMES GUEKN, Manager. A SAMPLING OELER* 125 This bank letter, when so endorsed, is provisionally accepted by the shipbrokers in lieu of the bills of lading, and on the agent paying them the amount of freight a release is given for the tea to be landed, the wharfinger guaranteeing to the shipbrokers that the tea shall not be delivered from the warehouse, nor a warrant issued, until the bill of lading is lodged with them, so that although the tea is landed and warehoused the bank here is still the holder of the tea, they holding the bill of lading for it until the bills of exchange are paid. A Sampling Order. As soon as the tea is w^arehoused the agent wdll tell his brokers to sell the tea by public sale, and give them a sampling order on the wharf as follows : — Examjile of a Saniphwj Order, To TrK WhAUPINGRR of the nLA>’K Whauf. Kindly allow Messi^. Drown & Jones to sample Loudon, 1/40 = 40 Chest', Tea . « “ Oinrah,” s. (a Ceylou. JAMES BLACK. The selling brokers will present this sampling order at the wharf, draw samples and generally inspect the tea. The tea is then catalogued for sale on a specified day, and before the sale it is valued and reported on to the agent by the selling brokers, the following being the general conditions of the sale: — 126 A COUNTING-HOUSB GUIDE. Example of the Conditions of Sale for Tea Sold by Public Auction, INDIAN AND CEYLON TEAS. Conditions op Sale 1. The highest Bidder to be the Purchaser, and an) dispute that may arise to be settled by the Selling Broker. 2. Brokers must declare, in writing, their Principals (to be ap- prox ed by the Selling Brokers) within 24 hours after the pundiase, or be held responsible and those who may execute orders at this Sale for parties not resident in London shall produce a know'ii agent here, who shall undertake to complete the Contract . in failure of which tlie Broker so buying shall be held resfionsible ; and if any broker shall purchase for an\ jicrson or persons under age, he shall be held rc>ponsibie In the case of Teas sold for Cash, the buxing Broker to be held responsible. 3. Ever) person who shall be declarc he taken from the packages {uUhmtt irtuin.s) before* delivering them to the Buyer, HhiUl be that drawn for Merchants’ Samples and for iiciessar) inspi'cung purposes 4. These Teas have been weighed, ins)>€Kled, bulked (in tbo country of production or London) and iart*d, and will lx? reweighed, papered, and leaded down, by the evening of the da) after the day of sale. All pac'kages will be nailed down within six days. De- livery will lie given on tlie day after the day of sale, and up to the delivety of Weigitt Notes, on notice l>eing given (in writing) tba CONDITIONS OF SALE. 127 day before it is required, to the Selling Broker and Warehouse Keeper. The Buyer to have the option of refusing any packages as to which the above conditions have not been complied with* Three clear Working Days are to be allowed for delivery of Weight Notes. The Buyer to have the option of refusing to accept any lot or lots for which Weight Notes have not been delivered by the evening of the third day, by giving a written notice to that effect to the Selling Broker on the following morning, if, on appli- cation, he cannot then obtain them. Missing packages, if equal to bulk, and not more than 5 per cent., are exempted from this Condition, and are to be taken by the Buyer at the original price and prompt if tendered within fourteen working da>s from date of contract. 5. No tlaim for difference in hulk from show or selling sample will he enicrtaincu unless notified m writing to the Selling Broker within Three Working I)a\s from the Day of Sale. No allowance will be made on account of an} damage, rubbish, false package, or unequal goodness, found, or alleged to be found, after the Goods ha\e iieen taken from the Warehouses. G, All Tea sold at this Sale to be at the risk of the Sellers until the Piompt Das, unless paid for prosioush. but onh to the e.xtent of inaiket \aliu' In the eseni of non-dehserv hs losi» from fire, the • ontmn foi -jiich pirtioii to he void, and the Deposit paid to be returned Heni to conmiente frtiin tiie J’rompt Dav. 7 la t Moiies t(j the .Selling Broker ai» usual. H, If an> Biner shall fail U> comply wiili the abose Conditions, the Vcndois, shall be at libertv to nsell the Teas either b\ Public or Pn\aie Sale, the UetKieucv, if an\ , wuh Interest of Money, from ilie Pioia]H Da\ Waiebouse Kent, and all other inirges and damages of e\ei> kind, to be chargeable to sxuh Defaulter, and be lecoverablc against him at Law *d, .\iiy dispute that ina\ arise concerning any ivarcoi sold in tbifi t*atalogue to be referred to two Arbitrators (who must 1>€ mcinUus t>f cither the Indian Tea Association, the C'e\lon -\ssoeia- lion, in liondon, the Tea lUivors’ Association, or of ilie Tea Brokers* .\sstdtit an rmpiri', if neecsHary, the loser to j>a\ the Fees (Two Guineas) to each Arbiimtur, and Two Guineas to the Umpire if called in (or all arbilratious, including atteudanee at the Ware- houses if neceasarv. t28 A oommschHousB amcB. The Pbompt Date. « « When the tea is sold the selling brokers pass con** tracts to both buyer and seller, the prompt (that is, the time fixed for payment) being three months from date -of anction, the buyer paying a deposit at the time of sale and the balance on or before the prompt date. f Taking up the Bills. The tea having now been sold, the agent must take ,up his bills &om the bank in order to get possession of the goods, for it will be noticed that one of the condi- tions of sale is, delivery will be given on the day after* the sale, and up to the delivery of weight notes, on notice being given in writing the day before it is re- quired to the selling broker and warehouse keeper. As soon as the agent has taken up his bills from the bank, he receives fi^>m them the bill of lading and insurance policy for the tea. The bill of lading he will lodge with the wharf (the wharfinger passing it on to the shipbroker), and the tea will then, be held to his order. Immediately after the sale, the selling broker (or eoinetimes the agent) will give instructions to the warehouse keeper to make out a waurrant and a weight note for every six packages in the parcel. WABEHOUSE WARBAKTS AND DOCK WARRANTS. 129 Warehouse Warrants AND Dock Warrants. Warrants are known as dock warrants and warehouse warrants, according as the goods may be deposited in warehouse at the docks or in one of the recognised bonded or other warehouses. A warrant may be defined as a document which is the evidence of the title of any person Jhereon named or his assigns, or the holder thereof to the property m any goods, wares or merchandise lying in any wai'ehouse or at a dock or wharf, and signed and certified by or on behalf of the person having' the custody of such goods, wares or merchandise. It is in fact a receipt for the goods, and contains all particulars of the goods it repre- sents, showing the number of the lot, the rotation nuinlHT, the w^arehouse where they are stored, the name of the party to whom they are deliverable, etc., as will be seen from the example given. The Inland It even lie duty on a warrant for goods is 3d A pnme warrant means that only one w’an'ant haa been issued for the whole parcel of goods. How Endorsed. » Like a Delivery Order (which see), a warrant is transferable by endorsement, and the remarks given on pp. 63-07 will, in the main, apply to warrants e(|iia!ly with Delivery Orders. The following is a copy of a dock wanant : — 9 Example of a Dock Warrant. 130 A cotnmiro-HocaB otjipb. Prompt- DOCK WABBAKT. ^ I 131 Observe : A weight note for these goods has been issued and no delivery will be made under this war^nt before the expiration of the prompt without the production of such weight note. The possessor of the weight note is entitled to this warrant upon complying with the condition of sale and paying the balan^ of the purcha^ money as expressed on the weigrit note on or before the expiration of the prompt. After partial deliven^ this wanrant will he returned and the bearer thereof entitled to the remainder of the teas. Example of a Weight Note. 132 A COUNTING-HOTJSK GUIDE. 1 O e i i a n x> & t I o JS o 00 n -c oa ■*a 04 ^ * CB c c T3 C w o oc o o c o c ' Im o c * O gS Ci> I H I c S © o VC *s OB © o K c/:( (m c o .4^ © © o (S o 5?; t c; © o :z; JC Bf *o .*3 © 9 X •4iS C o U © 0 ^ o- ts S © 1 i c 2 fl g o8 © X 4 ^ © -.a c8 •TJ O X 2 tr ea X o >41 © X •XJ § u © d ^ e8 3 3 o ^ ® ^ s?5 i5 O .S ® "g o d o d ^ © S 5 M © -e X 04 'i X © d ^ "§ § a ® •c 2 ce »d 4 3 Cu ce d c C/J I t « © © d © 6 S o © o © £ © X S 3 JIC a h l6 © X „ ^ X o fe i i t 04 1 i ( © { X 1 1 43 1 ! 1 i X 1 '3 i © ' ! 1 I 3 c to w ! • 4 i 9 ~ bO ' “ - -- d i . 3 r ) 1 X d ^ I ' 5 ) f 1 a) — t C ® -1 ^ i o »«► « . 43 1 ® i 1 3 * o s d eS 06 X £ bo © O o X +» r* © ^ E S ll rs § t a r-4 a c S 0 } rT3 ® 2 *3 s ® d -H d o •M -43 g P4 H © © X -43 © Vi o * 4 ^ © X © o 0 o >» . O .43 d 04 o d © ts eS r* d o u 04 © < »• ea ‘ H • 4 > © d ta *a B 2 3 9 Q CC A warrant for tlie above-nieutioned goinls having been is«iucd, no delivery will be made without the produc- tion of such warrant and this weight note. The holder is entitled to the warrant upon complying with the conditions of sale After the expiration of the prompt this weight note will be of no validity. WEIGHT NOTES. 133 Weight Notes. A weight note is a similar document to a warrant, except that the word '‘warrant” appears on one and the words " weight note ” on the other. The example on page 132 is the copy of a weight note. The warrant is sent to the agent and the weight note to the selling brokers. The selling brokers fill in the name of the purchaser on the weight note and deliver it to him. Now a weight note is valueless without its correspond- ing w^arrant, and until the expiration of the prompt no delivery w'lll be made against the w’arrant without pro- ducing its corresponding weight note, so that for the bu\ ei to obtain possession ot the tea he must pay the selling brokers the balance of the purchase money on or before the prompt date and hand them the weight note. The selling lirokers will then send the weight note and an application for the corresponding warrant, together with cash, to the agent The agent then gives up the warrant to the selling brokers, and they hand over thi‘ warrant, together with the weight note re- turned, to the buyer, wiien he can either pay the duty and get possession of the tea or lodge the warrant and W'eight note with the warehouse keeper and obtain a fresh warrant made out in his own name. 184 A COUNTING-HOUSE GUIDE. CHAPTEK V. Mabine Insukance. While our goods are in transit, or in the course of shipment, it is usual to insure them in case of loss or damage while on board, for it should be remembered that the shippers and shipowners are liable, not only to suffer the loss or damage incurred by their particular property during a voyage, but also to contribute a pro- portion to cover any loss or damage resulting to or incurred by any of the other interests, where if has been incurred for the general benefit or safety of the whole ; and, to safeguard themselves against these contingencies, business men protect themselves by an insurance on the goods they ship. Marine insurance is accomplished by means of a stamped document, called a policy of insurance, where- in certain persons, called insurers or underwriters, en- gage, for an agreed consideration, called premium, to take the risk of certain losses by sea and navigation on themselves, and, in the case of loss, undertake to indemnify the assured (the name by which the owner of the ship, goods or other interest is called) for the amount of loss sustained. Under wRiTEiis. Underwriters are divided into two classes — the As- sociation of Lloyd’s and the various marine insurance companies. Generally speaking, insurances can be effected cheaper at Lloyd’s than with the marine in- MABINE' mSUBANCE. 135 Sf surance companies, for although Lloyd’s is an associa- tion, each member of it trades on his own responsibility and capital, or, where an underwriter signs for another, as many of them do, on the capital of the parties he represents ; and as some insurers do not consider in- dividual underwriters so safe as many of the powerful marine insurance companies, who trade with capitals of hundreds of thousands of pounds, the companies manage to get a good share of the business offering. Lloyd’s. Lloyd’s is a name given to the place of general in- surance business, from that of the proprietor of a coffee- house, formerly used for the same purpose, in Lombard Street. The concern was afterwards removed to Pope’s Head Alley, where it was called New Lloyd’s, and sub- sequently, in 1773, to some rooms in the upper part of the Koyal Exchange ; and the interest in the same having long since been purchased of the proprietor, it has from that time been placed under the management of a committee of the members. Premium. A premium of insurance is commonly for a specified voyage, as from one port to another, or to various ports; or from a ship’s departure from a given port until her return, as out and home ; and sometimes, when upon the ship or the freight, it is for a hmited time, as a rate per month ; but when the time is thus specified, the insurance cannot be in force for a longer period than twelve months without being renewed by a fresh policy. 136 A COUNTING-HOUSE GUIDE. Keturn of Premiums. A return of premium is claimable, unless precluded by any illegality in the transaction, (1) when there has been no risk upon the policy, and it thus becomes wholly cancelled : (2) when there has been an over-insurance, forming what is called a short interest ; (3) when the conditions of the policy prescribe such return, as, for instance, if the voyage is shorter than the whole dis- tance wdiich IS covered by the full or long premium, or if the goods that are shipped are of a preferable quality, as mdigo or silk m what is called a sugar risk. In estimating the amount of tlie return ot premium, either for cancelment ot the policy or for short interest, the rate or the amount of the return is to be according to what the insuiois or underwrilers have received, or deducting tlie pre\ious allowances they have made In making returns of premium, as well as m other settlements of insuiance.s, a distinction is often made in pohcio as being eitiier valued oi open A Valtki) roLir\. A Policy is one in which (Uiher the whole of the iii'^ured interest is \a!ued at a given sum, or the various portions into which the interest may b(» divided are estimated from a pro rata valuation. In any aver- ment of fiaudulent over-valuation, the buiden of proof lie^s on the underwriter. An Open Policy. An Open Policy is one in which, at tlie time of elTecting the insurance, it is stated tliat the interest is to be here- after declared. The interest so insured may he either iudetinite, as when it is not known what projx^rty is to MARINE INSURANCE. 137 be shipped, or it may be made definite by giving it a ratable value. Eunning Policies. Sometimes an insured interest partakes of both the preceding characters, and open policies are frequently of the class called Bunnhuj Policies, when the risk attaches to the property on board of ship or ships, during a season, or to a specified day. Keturn of Premium for Cancelment of the Policy. A want of interest may arise either from the contem- plated voyage or hazard of the goods not taking place, from the \oyage not having been commenced within a specified tune, from the goods not having been sent by the vessel named in the policy, or from any departure from the terms ot the policy lietore the risk has begun. In all such cases, if the subject of the insurance has not been illegal, the undeiwTiters or companies are bound to retuiTi the premium, or to allow it in account. Tin? brokerage is, however, always to be deducted or allowed on such returns: for if the assured has trans- acted his owm business, he has had it previously allowed to him, 01 if he has eniplojed a broker, the latter, being his agent, has had a claim to the commission. The discount, wnth the companies, comes under the sanu‘ rule, for il before allowed upon the premium, it must be allow^ed on the return. In insurance at Lloyd’s, the policies are furnished by the l>rokers. In insurances wnth the companies, the policies are provided by them. In both cases, neces- sarily, at the expense of the assured. 138 A OOUNTING-HOirSB 0U|DE. Ebturn of Premium for Short Interest. When at the time of effecting an insurance it is un- certain what quantity or what sort of goods may be shipped, it is usual to insert, in that clause of the policy which states the agreement between the assurers and the assured as to the value, words to this effect ; that the insurance is upon goods as interest shall appear or be hereafter declared, and it is generally added, that certain enumerated goods, as sugar, indigo, silk, etc , are to be valued at a stated rate per hhd., chest, bale, etc., either in sterling or in foreign money at a specified rate of exchange. This rate of exchange is also some- times expressed, when it is possible that a valuation may have to be made upon the invoice amount of an undefined shipment If, therefore, in such an insurance the interest declared or shipped does not amount lo the sum insured, the assured has a claim for a return of premium on the short interest or the amount over- insured, under the same conditions as on the cancel- ment of the policy. Example, To find the amount of the claim for return for short interest upon a policy of insurance effected at Lloyd’s, for £1,700 at 50s. per cent., the amount of the declared interest being £1,464. InHured Interest - - - £1,700 0 0 Declared do. - - - 1,464 0 0 Short do. . - . 11236 0 0 at 478. 6d. i)er cent. £5 12 1 As £1,700 ; £6 12 1 . . £100 : 6 h. 8d. And £1,700 at 6s. $d. per cent. = £5 ISs. 4d. Claim. MABIKE INSUBANCB, 139 Eeturn of Premium FOR Various Claims Combined. To find the amount of the claim for returns upon an insurance for £5,000, effected with the Universal Marine Insurance, on bullion and specie from Vera Cruz to London, at 20s. per cent., to return at 4s. 9d. per cent,, if shipped per packet or man-of-war, the amount of the declared interest which arrived per packet being $16,500^ valued at 4s. 2d. per the premium having been settled in monthly account. Insured Interest .... £5,000 0 0 Declared Interest, $16,500 at 48. 2d. - 3,487 10 0 Shortr Interest - £1,562 10 0 Returns on< £3,437 lOs. at 48. 9d. % for Interest per Packet - £8 3 3 £1,562 10a. at lOs. °/o for Short Interest - - 14 16 10 £23 0 1 Less 10”/, - 2 6 0 Claim £20 14 1 Covered Interest in Open Policies. When it is required to ascertain what amount will cover the amount of the goods, and of other charges except those of insurance, this amount is to be found by the following rule : — 140 A COUNTING-HOUSE GUIDE. Rule . — Subtract the amount of the premium, policy and other percentage insurance charges, if any, from £100; then say, as the remainder is to £100 so is the sum to be covered to the amount of the covered interest. Example, To find the amount of the covered interest to include £567 10s. ()d , the premium being guineas, the policy 4s., and the agents commission i per cent. I-lOO less JbM Gn 6d ^ £9G ISs Gd As £*96 Ids Gd £100 £5G7 10s. Gd. Ans Product, £5S7 Os lOd. Covered Interest When a claim is made upon the underw nters for any partial loss upon the declared interest, the amount ol such claim is taken from the amount t>f that interest, and any return of premium for short distance (or for convoy in time of war), etc., is calculated on the re- maindei. When the insurance has been effected at Lloyd’s, the amount of the return for short interest is to be per- centaged upon the amount insured, in order to distribute it among the separate underwriters, and then the amount to be recovered from them is to be calculated, with this rate upon the insured interest; but in insurances with the companies this is not required to be done. Kktukn of Stamp-Duj^. A return of the stamp-duty is allowed in exchange for another policy, at the stamp office, piovided the original policy has not been signed by the underwriters and has never been in force. EFFPJCTING INSURANCE AT LLOYD’S. 141 Where Marine Insurance Commences and Where it Ends. An insurance “from London to Bombay” commences on the sailing of the vessel An insurance “at and from London to Bombay” commences as soon as the goods are insured, and con- sequently it covers the risk while the vessel is m port as well as while she is sailing, and until the goods are safely landed. Insurance on cargo continues until the goods have been safely landed on tora firma or a quay wharf, or other usual place of discharge. A Slip. The mode of effecting an insuiance at Lloyd’s is this: The clerk writes on a piece of papei, called a “ slip,” the name of the ship, the particulars of the voyage entered into, or to be entered upon, the nature of the goods, and the amount to b(‘ insured upon them. He should also state the conditions upon which the insurance is re- quired — whether it is to cover all risks or to be free of particular average, or what — and if he is used to insunng goods he wx)uld add the rate of premium he thinks the insurance should be done at. On the following page an example is given of the usual form of “slip”. This IS a “ slip ” lor insuring goods outw’ards to cover all risks except the war risk. The S. or S 8. after tlie vessel’s name means that she is a steamer, and insurances on steamers can be effected cheaper than on sailing vessels. 142 A COUNTING-HOJCTSB QTJIDB. Example of a Marine Insurance Slip. W. JONES & Co. 16/1/91. OOPBRNICUS. S. Liverpool to Brazil. Goods. To pay average on each package, separately or on the whole. /. g. a. and /. c. «. £2,100 (a 16/- A M D 110/114 — ^6®'. canvas valued £650 TAP 1/15 — 16®/. cottons „ 760 »« B p ^20/32 — 13^', . hardware 790 EFFECTING INSURANCE AT LLOYD’S. 143 f, g, a. means foreign general average, and this in- dicates that underwriters are to pay for any general average according to the statement made abroad, should it be made there. /. c. s. means free of capture and seizure. In times of peace, or when no war is proved, underwriters take the risk of capture and seizure without charging any extra premium, and the letters are not then written on the slips The premium of los. is of course to be paid on each £100 of the amount insured, as a premium is always at so much per cent. Sometimes the marks and particulars of the goods are written on the back of the slip. The following is a slip for insurance on the cargo of a vessel which has been chartered to call at Lisbon for orders, and it will be seen that it sets forth the range of ports the vessel can be ordered to discharge at ac- cording to her charter. The insurance is done at 60s. per £100, but if the ship discharges in the Mediterranean, or the Adriatic, the Underwriters wnll return the mer- chant 83s. 3d. per £100 of this premium : if she dis- charges at one of the German ports, they will return 9s. 6d. ; and if she discharges at any other of the Continental ports except Havre, they will return 19s. ; if she discharges in the United Kingdom or at Havre, no return wnll be made. The underwriters are not liable for particular average unless the vessel discharges in the United Kingdom or at H^vre. Should any claim for particular average arise on her discharge in either of these two places, it is either to be paid on each fifty bags of coffee or on the whole cargo, as the merchant may elect. 144 A COUNTING-HOUSE GUIDE. Example of a Marine Insurance Slip. W. JONES & Co. lC/l/91. Rebecca. Rio Janeiro, to A port in the I’ K , or on tlie Continent between Havie and Hamburg* both inclusive, or Mediter- ranean as high as Trieste included, calling at Eisbon for orders on 4,175 bags of coffee Valued at tH,500 Of GO/ Ret** 33/B for Medit and Adriatic ,, 9/C ,, German ports ,, 19/ ,, Other Continental ports except HA.vre / g a and f c ^ J p a., out of the U K except Havre, av* on each 50 «/ Ac RATES OF PREMIUM. 146 Rates of Premium. The rate of premium to be paid on goods will vary very much according to the nature of the ship and merchandise, the voyage and the time of the year, the amount to be insured and the conditions upon which the insurance is to be effected, and so on. The rates of premiums and the risks of insurances have frequently peculiar terms, according to their nature or their application ; thus there are summer premiums and winter premiums ; long premiums, when there may be a return of premium upon stipulated conditions, and short premiums, when, a return is excluded or not named ; Baltic risks, Mediterranean risks, etc., etc. The rates of premiums are always percentages, the higher rates, as well as some lower ones, being fre- quently in guineas or parts of a guinea per cent. ; otherwise they are in pounds or shillings per cent, or even pence. Having filled in the slip, the clerk will take it upstairs to the underwnters’ room, at the Royal Exchange, and show it to one of the members ^^nth w’hom his employers are in the habit of insuring their goods, w’hen the under- writer writes on the slip his initials, the proportion of the risk he will accept, and, where not satisfied with the rate filled in, the premium he will charge. Having obtained one signature, the clerk will go to another member, and so pass on from one to another until he has completed the amount he wishes to insure. The insurance is then considered to be done and in full effect, although the signed and stamped policy may not be ready for some days later. 10 146 A COUNTING-HOUSK GUIDE. A person used to insuring goods at Lloyd’s will soon find that there are certain leading underwriters there, and that wdien he has got one of them to initial a slip for him he will have no difficulty in getting others to follow at the same rate. Blank forms of policies may be obtained at Lloyd’s, and after being filled in they must be signed by all the underwriters who have previously initialled the slip. No policy of marine insurance can be made for any time exceeding twelve months. St.\mp Duty on Policies. On Voyage Policies : — For every £100 insured and for every fractioiial part of £100, 3A per cent where the premium is over ‘2s. Od. per cent ; under that rate the duty on an\ sum is one penny only. On Time Policies — For every £100 insured and for every fractional part of £100, where the time does not fexceed SIX months, Md. per cent.; where the time exceeds SIX months, Od. per cent. Lloyd’s Insukanck Policy. The forms and conditions of the policies used by underwriters slightly differ from those used by the chartered companies. Their general tenor being, how- ever, the same, and for the information of those who are nnacquainted with insurances, we give below a copy of LLOYD'S INSURANCE; POLICY. 147 a policy as used at Lloyd’s. It is also to be observed that an original document occupies only one large page, and that to each underwriter’s signature is added the amount, both in words and figures, of the risk which he has undertaken ; and it is requisite also to state the day and year on which the signature is aflSxed, in order to give validity to the insurance. It may be here observed that in policies of insurance from one foreign port to another, as from Rio to Trieste an addition is sometimes made to the memorandum, giving permission for any average to be made up ac- cording to the custom of the port of discharge. With merchants who are in the habit of regularly insuring goods with an underwriter the premium on a policy IS not paid at once, but is passed to their account for settlement at regular intervals. Uni)Krwritin(t ry Power of Attorney. It generally happens that an underwTiter divides a portion of the risk undertaken among the various parties he represents, and they do not appear as signatories to the policy, but have given the underwriter power to underwrite and sign for them. Suppose, for instance, that James Brown initialled the slip for £800, he will often sign the policy as follows : — James Brown for Tom Smith, €100 James Brown for Frank Jones, €100. James Brown for George Green, €100. thus dividing the risk equally betw^een the persons he signs for and represents. 148 A COTOTING-HOtrSE GUIDE • o S S d % f § o ns o;;; o^d 2 c a fl d ** 5? S •** 2 a o ^ U m - S'© H ec 0) |S| It 2 § •inf o e d •^0,0 2 -jc _2 ‘ C '«0 o o - s ® ® au ^ fS M o 2 o o S fc* O d £ t; o- £ S ® fl» »«'© a 0 *- .2 d ^ a Q o d § ^ jXS I'S.i d d d — r •© o S S'S P4 te ^ >*4 M to S 2 H 5 »rt O »TS CQ a <0 d xt ^ o a qT O I- p^a jg •4>3 0 5 09 }-• a a ^ X-** 1 "" 2^? ns a If? a’^l • 2-^5 tK d d r a ^ ^ *^0 0 O'© r u 2 2 ® T. ? • ^ •5 a ;2 <=^2 0 •© -^ •© 2 S fc 2 fS cr s cc "S © 05^-0 S 1 § g'd-’O-S R"*" 3 d ^■g Sg >» ^ *« *© o a — « i- 1" C o W ^ g* QO 4^ III ^ .aa K. d d § ►‘00 a > a §1 a'H S aO- 1 ^ ©4 GT ^ 2 >^CC ^ o o rr ‘ > »© O Z •"S X I « d O o a ^ X ® o ® O o'H o 27 J *i x: o IS ® d ^ -^rr *- d d ^ o *5j x: a ^ ^ O d 'tS u u ^ 0-2 °=2 '©sz^cB'S a d o d =*-an- " * - a ^ o © d ^ i? s "-g ;i t d 2||§>l 1|is = ^ XU M o o fe ^ ‘r* " S ► t!0 O •g *- t- d - nS^ k d d ► ^ Q « ® d * M si ‘1 S ^=■3^ Sr'S a -n: o -g <3 d a g a I A. » Gl O >U4 ^ « 2^ 2^ a ©•©,§ d d g .►O * d a r a o 0^ a ^ « d W-^ I tM d 2 S ® S X ®v ^ §. 2 "g)S o • “XJ drrt^ -g*oCDQ: a^ a x ir^ ^ d a d ii s iu flj ^ 5 o ^ I Has * wo Et 2 a ^ fe Jh ^ g «* o t-.s a < 2 - d -118 ^ nS 5 ■*» ©t ta * a ‘S d *a d 'g '©-^ ^ S £ g * a !..2 o X ^ tf Z '2 *- *- ^ o o ” Q 5 2 “ §. 2 a ■m» ^ a ®" It 9 »- ► d o X o a O d ■g-g X ► dO o d X X S' ts ^ d Ilf’S “-^s S "'3 Ss-o- Jr'S J= j:S 2d ^ g ” 3 = d ® 43 3 y) *2 X 00 •- O - W ” © 'x *© ^ © ^ a X X a '© a © 3 » d a d x; f ^ O d M 43 g I ®'S2 S S f . 3-S'S = “'g>;. ' : - 3 S 2 2 j Q ax a ^ © *^ 2 *».*a *» Q . > ^ a-x‘ a o d ^ o p^ ad dX c£ w -|'S“'2Si5 2® §^ g-So a iVd ^ 2 « C V ■*'— ir i ,•' - s«-* t. c c «*£x 5— .r: « d© !-'&“= i |l|p|i5 b « ^ ^ «:» 4*^75 « ►.S-Sgiis’ 5|=cll|a Ik&sb 1 “S n « S S , ^2® §-« g^t ® T3 a O 3 = ■S g^R ag E iEc^iSPp 'sS.| 2 |'|^ I X 3 t©*© > P LLOYD’S IKStJBANCB POLICY. 149 S'S'^'a'g.sg CD Oi cB ^ td •2 i-'o ® •S.I o 3« o 00 « q ® fl S 'q ^ 5 S S s H .3 1 i 1 *-*S S« S'^ S -E Ij >>>i>0 'q 1 I o q ^ § 2 S^ 2s*W5 »§'^sS5'55qq4lfeo 'S sjg ai o o gg'gflp.S.S.S f I § “ I« ^ « s S'® oJJ ® ■®®flt,g-5®-' - HO"®® 'q^S^S® S®*Sas^O'^ §®H3-S3S^S>|S|5 - S 5 s-^o 0 g Si-* °5-§ ® O O'^ 2 -«r|g|8.s==i§iis q ^ <0 £§®Ar§^>‘^Sq*^®3 ®a,« ® oS fe >.io>^ S 3 g fe£-2o5 S^rcjo2i2K Sec ® 5 O " aa r**^; *-' OO ® ^ ^ ^ flj i-H 03 (35 2 «r2cy5 ^ i:- 2® "s a ^ Cfi ® « o < ^ n HH o ^o-<-3§K,|^'“5;3g?Soo „a^-3°o.®»o®cus->-q M S? frt S St - W ^>205® 2 a'S §j d 3 — ' ^ W o ® — : cu CJ ^ ^ SF ^ S-22 I'SJ oc^.e-a - fcn Q «®i® jH q <«>« ~ q oAc ea o o X A "2 •q «■ q qg — ” ^sg32ix^-=^ d^§>SQx‘2^ flo-q ooq: ^a w'’ 0 ®'t 3 ^ 5 S tr ^ w 1^ M ^•j:;g^«^tajgSj35 O i<^ 'J2 •< ^ j»WX **4 Qu « AM® 0 SP g 4 » *9 «B 1 g g 8 Cl O ^ ^ a I ^1 rfd © ► «-* © O i S S S 08 ^ «s q 'q “ ^ a 5 S -T S q I a-fci a « i-aS o8 O O M a M ® a E <« I 2 i ?'» ^ g S ^'S iJ i 08 M ns 5 . ^ iS q o ns * efl ^ a2s-§ X 2“ ^2 X q a 3 q4 ^ §;S*q 3 cc X “ 2 g © ^ © ® ^ X © > '^X 2 ^ 5:3 o £ cc ^"3 o 2 '§r ^“'5 X * 0 © * " CV o c -< q 2^0 © 2 1§-» - feW^ I 1 -S o c a «*-r £ — ' o CtJ S ^ £ .oq a S s^ch g © X ^ ► ®3 o ^ ^ d “ © CO q* q® S !^ -" p 2 -■'c s = ^ g-S^^ y S ns ? ^ • X q X r « Si£H 8 • <=•£■5 *q ^ a 3 150 A OOtINTING-HOUSE GUIDE. Explanation of a Policy. 1 In elucidation of the peculiar terms used, we give the following explanation of the wording of a Lloyd’s policy : — The letters S.G. means ship and goods, because the fonn of policy used by Lloyd’s is applicable to either or both of these interests. The clause between the figures 1 and 2 is the risks undertaken. vt »» 2 »» 3 „ sue and labour clause. 3 t. 4 „ confirmation clause. 4 5 ,, binding clause. »» 5 tt 6 „ receipt clause. »« It 7 „ 8 ,, confirmation. 1» »t 9 „ 10 „ warranty or memorandum. The reason why corn, fish, salt, fruit, flour and seed are warranted free from average unless general, or the ship be stranded (which also extends to vessels being sunk or burnt), is that they are by nature so very sus- ceptible to irreclaimable damage by the slightest contact of sea-water, and also by inherent causes, such as heat- ing and sprouting of grain, or rotting of fruit and fish, which may arise without sea-water contact. Sugar, tobacco, hemp, flax, hides and skins are war- ranted free from average under five per cent., and all other goods under three per cent., unless general, or the ship be stranded. Both of these clauses are inserted to protect under- writers against vexatious and trifling claims on ship’s goods and freight. These clauses are fully dealt with under the heading of average. MARINE INSURANCE COMPANIES. 151 Marine Insurance Companies. The only chartered companies which were formerly authorised to subscribe policies of marine insurance were the London and the Royal Exchange Assurance Companies This exclusive privilege was conferred upon them by authority of an Act of Parliament passed in 1719, but this act having been repealed in 1824, various other companies have since been incorporated, and it is still considered to be illegal, under the penalties of rendering the insurance void and of forfeiting an amount equal to the sum subscribed, for a partnership firm to be affixed as underwriters to a policy ; a restric- tion which is, however, rendered in a great measure nugatory by the subscription of their separate signatures, or by one party acting for the others as their agent. In effecting insurance with a marine insurance com- pany, the clerk will take his slip (made out as shown on pp. 142-144) to the company’s office, and an officer there, if he IS willing to accept the risk offered, wnll initial the slip, after which the clerk will fill in the company’s form or slip, which they return and from which the policy is made out by them. Some companies use a covering note as an interim policy instead of a slip, but the form is much the same. The companies always make out their own policies, using their own forms, and deliver them wffien ready. The forms and the conditions of a policy used by com- panies slightly differ from those used by Lloyd's, but their general tenor is the same. On page 152 is a copy of a company’s covering note, and on page 158 w'e give a copy of a company's form of policy as now used. Example of a Company's Covering Note. THE HT.ANK insurance CO&IPANY, LONDON. 152 A COUNTINO-HOUaE GUIDE. H a §1 iS Sg B ® 2 » & a ^ 3 ^ » 5 ^ ' ^ ^ ^ ^ •. •s 2 5.|'= 5: » 5 »r 5 ^ ? V I C ^ V i{ « •fj ^ V ^ V » I u CQ^ pu c- J » >< 'b 5 ^ s ^ ^ O V w »»» s> § O s c ^ Sc s o cosS a 5 » S, ac i: ?> ST- -tj c §"3 "5 A S S (a eS es "» e g §j c "3 iiaS C loss's lllll sSjli Sst-Sf 5 e 3 £. 2 _' S>- ^ s s’-o ■g sfe^jg I— A ^ « » .3 &t TS « o , 3 ^ 'S {'3 i fca 3 2 S - n .s t« ^ « SU5 C c;' • a fca c o O 2 u ■<-» ^ , _ S C/ c «-c 3 | •f *3 - V 4) Isi xa 5 i § e S ” o* & 2 “ a-* ^ S S tc? — 5 o 5 X) ^ c"^ *2 3 > c $ »a ta ^ V* cti O sS ■*— “ V. 2 3 ^ K -■s- I S Si c •^1 ^ i-f ^ 2 g.,&=S.. 3 ^ tA 4 > a **^ 50 ^ 5 SB % C* ^ 3 r — t;^ rt ^ 3 *3 • r* 4 ® * ID ^ u:; 3 3 . sagij'c >" u ^ s » “4 ^ s ^ < iC* ' MABINE INSURAlfCB POLICY, 153 o S 5 » 31 ffl ◄ s s * I ^ s. ^ & I ig ^ 1 I ' X 2 1 S* « ' i •« ^ <=> ' t! > O o3 I'O « ^ I ® 21? ' i ! 5 ' ^ >*® : 2 *^ fl 2 « r* a ® ® o i»G'd^ ' ^ §^- I <2 jj* i • « O s > S s« " ^ .S C os 5 J »- 5 o o < -M 3 ® 0^3 2 fls t 4^ 3 u,rs o o=: ® ® c! ^ fe 3 *- > u C o O «$ 'd ® S'3 tj SI •dCQ §■3 p 43 ^ « 06 *a *0 S s i * c *»« I ® «*M 3 ® r 2 3 *3 fc« es O h - ”*^ an P~< 4> 3 ^ *3 3 u 5 VNf 5 ^ 3S :5 5 .ti c ill 111 Uilii -3 ^5-3 ® 'g *'- ? 3 s S fc J o<5 -^-d ■g® &«S-S “ S«5-o g *3 CO fl _2 C o -tJ o > I “iS-tTij' *" S 20 ^ V *2 S M ♦J 33 S ® o4 S — efi e i,^« s| *5 i O TJ S'? ^ 9 ©ii L- ^ ® •« O S ^ ® 73 »- i 2 ^ 3 Ss|„o g ?2; f I a-' >g g ►- =1 £■2 S ,3 ^3 ® s Vt o: •£ 9 © ® C c ^ 5 fc- o8 ® ^ c 3^ 3 85 ^ © ©-5 ** ® I" lill^ - ®-- ? i 3 a,> * oS ^ 45 #v^r ^ ^ S bc-s c ^ ® ? ^ © s t; SL. >i X t* s d Q 11 © W as >>^w SX © '*3 o ©• "2 aT "g ' •♦* © M 1 « .P 3 3 q 3 T 3--2 5 **i'a i § s . g 1 »H © 3 t* >2 OipC: 0 3 3 o -^,3 ®3 ■S o «^2 oS ^leS o* ^ a 3 ^ I J^J 2 ■*^i 2 o S S3 ^ - ,3 © an rsL ^ ^ s, is-i’s " a s g !>;? g5 ® fr* ^ © 3.0 2 S •13 ^ ?5 ■*■* 2 *3 -0 g cfl B '3 Oi §r * 3 P a# « G pH O Oh 9 ■H» eA . t aj ^ t 3 O AS ® y '3 2 o «3 '* ca: jC >». 1^ ■** * - ^ a! W ^ -r ^ -1 ^5 •3 i >•§ g tJ 3 ©>5 ^ " 18.2 is-|5 ^ S 08 3 >3 © p- 5 .=! ® ^ a o © i 2 H -=3 ^ <1 _ a: ,2 20 £ i ♦a ® »3 ^ © 3 cxi'^n n- rp H -pj u» © P-i C ^ 2 S i 3 2 toa ® o g SW c( J-a g 3;^ o ® 3 iSfe-IaS-S. . s © 3 ^ a •“ *• © bp’P pT a a» •« 3 B. 3 C as 3 s o c *3 qa; ©ar ^ £5 ^ 2 © o SjS «3 S'o [ChiUtnv^^) much an concerus the A88URBD, are and Aball be rated and Talued at 154 A COUNTING-HOUSE GUIDE flO * ~ ^ ^ §.S® 5 s ^•s•g•ts ^ C fc cj ^ C ■C a e 8 2 e| S #5* fl« w « ^ bD ® » ® x' a cji x*Sd ffi^ 0,r ® ss c £ os o 5^ I £ “H - -r 1 s a C w X 5 «a c g V t 3 c E * ^ B = « ^'S -fe ® ' 2 'Z = — ^ £| S'*? ^ ^ is §5 rt = <5 « Sm O c) |«s=- 5t^ c X c> « cs ^ — * k C «.. X W O*^ , ® 5 5^’''^ at" »- ^ ® # ee s iS t c “ ^ -e S * tJ nS^i S 3 f£ ^*5:5?? s >»£ s ®'-C* 22 :b s ^ ? C A 5 ^ g z: 0 ^ I 5 ^ 5 X -r •“ > 4 - <5 ♦; >1 jrns ® «? a3 s S S. « a Sn^ a > 5' ^ ffl „ a ,X'»Tj a ® P '2 c I' a Q te ® sa*o ^ i«£Sgi-s ^ pO 2 . J** B t* a tf « ^ ® « 5-2 o- =< 5„-w-:rs o ^ .crs ji £ rtjp g^ ■S ® J g g .£*£ ^.'‘'55 g 6 ^ 5 3 2 2c ® ** '2 D . r!* 5C «5 ££ •c 5 E_g v a £ =* o> .St? •*« e C *2.5 Id * lu - £- ^ 5 *5 »’ •r— ^ a ^ It fc * *5 ^ g O * - 2- — ® £ a - 5 ‘i= ! ^ 2 *.r c 3 a = , u •H g<5 «$ 3 2 « « tt> g *33® ® w ^ »3 a ^ K tS £ -2 g cTW W £ oT © * k - c 5? a ><^ t §, fc; a ® T ® a ® 5 ?;:Hn33 eJ C I- ^ 3 ^ HI c 25 5 ^ c ? X ^ 2 < 8 5 i . tf Ok «'■ X ^ a > «M S-r C :l|^ -< c fi £ - fc ® t k *3 *<^ - tr AND FCRTHER. We, the A^RUREB.'S, DO HEREBY covenant, promise, and anee, and oblige our*iel\es, our Heirs, Executors, Goods and Chattels, in case of Xoss happening (which God forbid ')— to satisfy and pay in HONGKONG the Sum of Money by ns so ASSURED, at the expiration of One Month after the proper notice of the Loss IS given to Messieurs JAMKH BLANK, SON & Co,, General Agents for MABINB INSURANCE POLICY. SJ 43 * rjj £ is QO-^ gs £W^ SrS505 5S S? “ ttj ^ © p 15 ^

*£ © o O E"^ a ^ S-T! 2 ^ ® "tf ***—*© 2 £ s >‘E gap g-= « O ©-r C g i ©-c g g £ 7 5S|£&S - s S Il^ “'2 1' O V I ^ *'1 ^ cl - Jv V *K> •■ ii -r *9 C^'^'S *:.§’■« t ‘ < 8 !t «-a I ® 31 0.5 9 ? O a Bk^ S* * ft •Ct * lirf ^ M A .IsSvaS- fc^sjrss *0 . ♦! F S5 r* ^ S ~ :S « ^♦"i: K ^ « 5 8"S.|S-^ irrst'S'^- ^ f ; '"“sst. g si s>5~ e 3 S i; »> St§k.a 5. ^ !*i ft •< > *^1 ^ l.l' C ■»- a I 1 V '•N O •S >< ^ ce © to © ^ j*** ^ ®,C! © . © .'“'53 a © ® © Siil eo P< ^-TJ 2 E 3 2® Q g r* o ^ g 2P., " 2*5 SE S gl^'? ^ 2C S-f'g-g ^ o a . «©: ? o 2 c ei ^ A 4> c 5 s s i a£ ? S “" $-•§ K “ '-■o * < o < ^ w3 "3 “ a »§S.“ agg« .SSSs 0^31 ■*'“ p ■S a a rt £ 5 5-“^ = to fc4 7 ^ . a w — 4" © © a a .a a ® o ? ^ fe u — . '< •• ’•^ © tS o © a 2* *2 “* 7“ u- o .a "J s « V- £' © ..^ U S ^ >'>■*» © — SI .a «— _c •*< y - c a ^ -b to a N as © X 3 •"* M e >. ® ’* 2 t «c£ *"'S £ ^ !r 5 a ,ii ^ w “ a c S S “ E © 5:3 .Ageuts iu London. 156 A COtrKTING'HOUSB OUIDS. t Marine Insurance Brokers. Of course all insurances are not made direct with the underwriters, a very large proportion of them being made through insurance brokers, to whom only a note of the particulars of the required insurance is given, and they attend to all the details relating to it, sending on the policy as soon as it is completed. The charge made to the assured by brokers or agents for the policy duty is often rated at 5 per cent, or 10 per cent, above the actual duty on account of credit and interest. Marine Insurance Brokerage. At Lloyd’s the allowance for brokerage is 1/- in the guinea when the rate of premium is m guineas, or !/• in the £ when the rate is lu £ s. d. per cent. A 1/- in the £ is 5 per cent. ; a 1/- in the guinea is only £4 los. 3d. percent., but the difference is not considered material. With the companies the brokerage is the same upon any rate of premium, wuth the further allow^ance of 10 per cent., called discount, for monthly settlements. Marine Insurance Discount. Besides the allowance for brokerage on premiums named above, Lloyd’s formerly gave a discount of 12 per cent, upon the balance of the yearly account, when in favour of the underwTiters, upon the settlement of the account, and the custom still maintains in a few instances with some of the older firms The companies also make an allowance to parties having accounts opened with them ; but if these accounts LLOYD’S CLAD8E8. 157 are settled monthly, or if the premium is paid at the time of effecting the insurance, besides the 5 per cent, on the premium, a further allowance of 10 per cent, is made on the remainder, as a discount, practically in the same manner as at Lloyd’s. Lloyd’s Clauses. The following clauses have been adopted by under- writers at Lloyd’s, so that the phraseolog\" shall have a uniform wording where no special agreement to the contrary^ has been arranged * — A P. P. A. (Free of Particular Average) — Warranted free from particular average unle«»8 the vessel or craft be stranded, sunk or burnt, each craft or lighter being deemed a separate insurance. G. A. (General Average) — General average and salvage charges payable as per official foreign adjustment if so made up, or per York-Antwerp rules, if in accordance vrith the contract for affreightment. P. C, & S (Free of Capture and Seizure) — Warranted free of capture, seizure and detention, and the con* sequences thereof or of any attempt thereat, piracy excepted, and also from all consequences of hostilities or warhke opera- tions whether before or after declaration of war. Deviation — In the event of the vessel making any deviation or change of voyage, it is mutually agreed that such deviation or change shall be held covered at a premium to be arranged, provided due notice be given by the assured on receipt of advice of such deviation or change of voyage. No Thirds as applying to Iron Ships and Steamers — No thirds to be deducted, except as regards hemp rigging and ropes, sails and wooden deck. Continuation Clause on Ship or Ship’s Policies — In the event of any shipment coming upon this policy, the value of wliich is in excess of the sum then remaining available, it is mutually agreed that the underwriters shall grant a poUoy 158 A COUNTING-HOUSE GUIDE. for such excess up to but not beyond the amount of this policy, and the assured shall pay the premium thereon at the same rate. Continuation Clause on Time Policies — Should the vessel hereby insured be at sea on the expiration of this policy, it is agreed to hold her covered until arrival at port of destination at a premium to be arranged, provided due notice be given on or before the expiration of this policy. Lloyd’s Warranties — Warranted not to sail from the Baltic, White or Black Sea, or British North America, between the 1st day of October and the 1st day of April ; nor from the Wo!>t Indies or Gulf of Mexico between the Ist day of August and the 12th day of January ; nor to sail to the Baltic before the 20th day of March, nor after the 10th da> of September, and not to go to the Azores. M. C (Metalling Clause) — Warranted free from particular average beloi\ the load water- line, unless occasioned by fire or contact with some substance other than water. The Names of the 1\)LI(TEs Issued. Policies are known l)v various names, and tlie prin- cipal policies issued are : — A Valued Policy is one in which either the whole of the insured interest i» valued at a given sum, as exprcshcd on the face of the policv , or the various portions into which the interest may be divided are estimated from a7>ro rata valuation. An Open Policy is one m which, at the time of effecting the in- surance, it IS stated that the interest is to be hereafter declared. Tlie interest so insured may be either indchnite, as when it is not known what property is to be shipped, or it may be made definite by giving it a rateable value. .Sometimes it partakes of l>oth of the preceding characters, and open policies are frequently of the class called running policies, when the nsk attaches to the property on board a ship or ships during a season or to a specihed day. A Voyage Policy is a jKilicy coven ng a certain voyage, as from London to Bombay, and may include vanous ports of call, but these, of coarse, would be specified. CLAUSES ON A POLICY. 1S9 Time Policy is a policy covering insurance till a certain date and which terminates on a specified time, as till noon on the 2nd October, 1901. They are usually on the hulls of steamers, with separate valua- tion as between the hull and machinery and (sometimes) the boilers. No marine insurance policy can be in force for more than twelve months. An Interest Policy is one m which some real and specified interest is insured, as 200 cases of sugar. A Wager Policy is one used for insuring profits or one in which there is no real interest at risk, and the underwriters agree to dispense with the usual documents which are generally used to prove a loss. Such policies have the words, “ Interest or no interest,” “ Policy proof of interest,” “Without benefit of salvage,” “Profit on 200 cases of sugar,” and similar phrases A Named Policy is one in which the steamer’s name is inserted — the steamer is named. A Floating Policy is where, when insuring goods and the name of the steamer which is to carry them is not known, the policy insures “ anv ship or ships,” or “ steamer or steamers,” for a named sum, and as eacli vessel ih fixed, declarations are afterwards endorsed on the poh(‘ie’> giving the various steamers’ names and tlie amounts which aio apportioned to them Clauses on a Policy The wordinjjf of an insurance p()lic\ does not cover all the of na\igation to meet even case, and clauses are therefore often added to a policy to hniit or ex- tend th(» risk undertaken The following clauses are commonh used : — The Metalling Clause. — This usually reads “Warranted free from particular a\erage below the load water-line, unless occasioned bv fire or eontat't with some substance other than water,” and under- writers insert this to limit their habiUt\ in case of particular average to the repair of damage ab(^\e the water-line, unless the damage is caused hv fire or through contact with some substance other than water The Waiver Clause. — This clause usually reads “ It is expressly declared and agreed that no acts of the insurer or insured in recovering, saving or preserving the property insured shall be considered as a waiver A COUNTING-HOUSE GUIBB. or acoeptanoe of abandonment;" and this clause involves both the underwriter and the assured, in the case of any accident to the vessel, to do such acts as they may think necessary, either to prevent or to dimmish a loss without compromising thoir rights as defined by the general wording of the policy. The Hide Clause. — Hides are generally insured F. P. A., but with the condition that the underwriters pay the expense of washing and drying any that may become " washed " or sea-damaged , and when the hide clause is inserted on a policy it means that the underwriters agree to the terms named. The Running-Down Clause. — Policies of insurance on ships often contain a clause called the running-down clause, by which the under- writers. bind themselves to pay .a certain proportion of the damages which may be assessed by a court of law against the insured vessel for damage occasioned by her to another vessel in collision. Various Other Clauses. Besides the clauses named, various other clauses are used either in printed slips, which are attached to a policy, or they are pnnted or written on the policy itself The following are a few of the clauses used : — \ Including all risks incidental to steam navigation, and all clauses, conditions and liberties as per bills of lading or charter party. With leave to c-all and/or tranship at all ports and plac^es on the passage, intermediate or otherwise, for any purpose whatsoever. With leave to sail with or without a pilot, to tow and to be towed and to assist vessels in all situations without being deemed a deviation, and without prejudice to this insurance. Including all risk from the warehouse, factor}’ or calendar, while in transit by railway, or any conveyances, and while in warehouse and/or shed, or on wharf awaiting shipment, and of transhipment, and all nsk of craft, lighters, and/or boats to and from the vessel, and particularly any special lighterage, and all risk of landing from the ship at the docks, or other places of discharge of the vessel and while there, and of lighterage thence, and all risks, particularly of fire, until safely de- livered into the consighee's wharf or place of ultimate destination, and all risks from the im^rt steamer and/or ship and/or docks and/or wharf to export vesseL ABBREVIATIONS USED IN INSURANCE. 161 Total loss of any package or packages to be recoverable as if separately insured. Particular average payable as customary General average, salvage, and special charged payable according to foreign statement, or per York- Antwerp rules if required Held covered in the event of deviation at a premium to be hereafter arranged. Warranted free from capture, seizure, and detention, and the cf)risequ<‘uces thereof, or any attempt thereat, piracy excepted, and also from all consequences of riots civil commotions, }lo^tl]ltles, or warlike operations Abbreviations used in Insurance. The followin^^ abbreviations are recognised in all iiianne insurance affairs — F. C S — Free of capture and seizure. FC&S- F (t A — Foreign general average F P A - -Free of particular average F A A —Free of all average H. D C - Running-down clause. T Ij. O — Total lo>s only M C — Metalling clause A U— All risks A A R — Aganwt all risks G/A — General average A marine insurance policy, as will be seen, will not in all cases jirott'ct the insurer against loss, and the following an* some further exceptions — rnderwritcis arc not liable for loss to goods occasioned bv the act of our own (tovernment ; a.s. for instance, when goods are destroyed at sea by a British man-of-war. Nor are they liable for loss occasioned bv a broach of the revenue laws on the part of the shiiwwner, although ihcj are liable for loss due to anv illegal a< ts on the part of the captain or crew of a vessel NtMlher are thev liable for anv loss occasioned bv a breach of the law of nations, sucli as running a blockade 11 f 162 A COUNTING-HOUSE GUIDE. Nor are they liable for losses incurred after a deviation from the oonditions of the insurance has taken place; as, for instance, if a vessel on a voyage, notf being in danger or in difficulty, calls at a port not comprehended in the policy, such as calling at Lisbon on a voyage from London to St. Michaers, the underwriters on the ship, and also those on the cargo, would not be liable to make good any loss incurred after such calling at Lisbon had taken place. Nor would they be liable for loss or damage either to ship or cargo if the ship failed to sail bj the date mentioned in tlie policy, as the time of sailing matenally affects the risk of some voyages. Of course the owner of goods would ha\e his remedy against the shipowner for loss or damage incurred through the deviation or failure to sail accord* mg to contract Underwriters are also not liable if they can show that the vessel carrying the goods was unseaworthy at tlie commencement of the voyage : that is to say, if she was out of repair, short of stores, pro- visions, or cri'w, or not ably commanded. Ee-Insurance. An underwTiter, after having taken a risk, is some- times dissatisfied with the insurance he has taken upon himself, or he fears that where a steamer is over- due and has not been reported the vessel may have foundered, and in such cases he re-insures his interest with other underwnters more venturesome than himself Ey paying them a Ingher premium than he has himself received, when there is said to he a re-insurance. lie- insurance is, at times, verj^ satisfactory, and cases of vessels arriving safely after having been re-insured at Jheavy premiums are not uncommon. Again where an underwnter finds that, by declara- tions on open, or floating policies, the amount of risk becomes, by such declarations, far in excess of his normal liixe — that is, the amount he is satisfied to run— he then re-msures the excess beyond such amount, generally at the same rate of premium as that received by him. GENERAL AVERAGE. 163 CHAPTER VI. General Average. General average is a contribution, according to value made by the whole of the interests concerned in a ship or cargo, to pay for any loss, damage or disbursement voluntarily incurred by one or more of the interests for the benefit of all ; or, in other words, the shipowner, the contractor for freight and the merchants owning the cargo each combine together and contribute a pro- portionate amount to compensate the owner of whatever has been voluntarily sacnficed, whether it be part of the cargo or fittings of the ship, or whether it is paid to recoup the person any disbursement or expense which has been made for the benefit of all the rest. As, for instance, where through stress of weather the safety of both ship and cargo demands that one or more of the masts, spars or sails shall be cut away, or that part of the tackle, anchors or chains shall be thrown overboard, or, in order to lighten the vessel, part of the cargo is thrown overboard. This would be a case of general average, and the owners of the cargo and freight must each contribute a share of the loss incurred by the parts of the ship or the cargo thrown overboard, as they will all have benefited by the captain’s act of sacrificing a part in order to preserve the rest. The following expenses usually come under the head- ing of general average : money paid to boatmen, lands- men, or to tugs, etc., for assistance rendered to ships in distress ; port charges, pilotage, boat-hire, etc., incurred by a ship forced by stress of weather to put in to a 164 A COUNTING-HOUSE GUIDE. port short of her destination for repairs ; and also the premium paid for the loan of money raised to meet disbursements incurred under such circumstances, and the expenses incurred in discharging cargo at an inter- mediate port in order to stop a Icmk. In order that ship’s tackle or cargo cast away may be recovered as general average, it must Ix' distinctly shown that the act of jettison was deliberatelv resorted to ior the satety of all Tackk' carried aw a\ , and cargo w’ashed aw’ay bv sea perils, class as particular average Of course it must be understood that the ownei ol a ship winch has cast away part of her apparel, oi* tlu^ ow’ner of goods jettisoned, recovers his kiss in lull from the rest of tln^ contributories, but he must bear his share of the general loss, and this share is in the case of goods calculated on their value, and in the case of a ship b\ a properly legalised sui\e\ at tlu‘ port of discharge If a vessel in immiiK'iit danger of foundering is de- liberatelv run on shore, the owner cannot n‘eo\er as general average the damage incurred in so doing; one of the principal grounds for this exception is, that as tlie vessel would c(*rtainlv have been lost by lonndering had she not been run aground, llu* ow ikt is no los<‘r by tins having becm done. The value of ship s stores or tackle thrown oxorhoard in distress is usually taken at tw’o-lhirds of their cost « when new% unless the vessel he on her first voyage, when tlie full cost IS allow'ed , hut it is the custom to allow for anchors in full, and for chains five-sixths of their onginal cost. The value of the cargo as a contnhutnr is takiui at what it w'ould feteh if sold on arrival, deducting freight, DOCUMENTS REQUIRED TO PROVE A DOSS. 165 duty and all other charges, except the merchant’s com- mission. The selling value must be certified by mer- cliants or brokers of the port who are acquainted with the trade in the particular article, and a pro forma account-sales of them should be rendered. If the dis- charge takes place abroad, and the goods are insured in this country, the certificate should be legalised by the British Consul there If the goods are sold immediately on arrival, the net proceeds of the account-sales is the pJO[)er value for the contribution. Tlie value of freight as a contributor is the amount earned by tlie ship on the delivery of the cargo, but from this amount is sometimes deducted the wages of the cai)tain and crew, etc If the vessel is chartered for the round \oyage out and home, the total freight miiht contribute should she make a general average on the outward \u\age, hut il the geiieial average is madt' on the homew'aid \oyage, the freight on the homeward caigo onl\ i*^ to contiihute HKQriHLi) '10 Provi: a Loss It generallx happi’iis that there are several interests concerned in a cast* ot ^eneial a\t‘rage, tlu* ship's protest and (Ulun papers necessaix to pro\e a loss are handed round from one t(» the other till all have settled tlie claims on them, and n‘co\eit*d the amounts from their uinlerw l iters il insured lh“>idt‘s the shiji’s protest, tlu^ certificate of survey and those of the \alue of shij), cargo and Ireight, the general account of all di^mrsements, wnth the receipted bills as voucluas, the bottomry bond (it any) and in- surance ])ohcy ol the ship will lx* ret|Uired in a ship’s claim against underwriters 166 A COTJKTING-HOUSE GUIDE. In making claims on policies for gonds» the most necessary documents are the protest, bills of ladings invoice, insurance policy, certificate of survey, as well as sound and damaged value, or the account sales of the damaged goods if they have been sold. General Average According to Foreign Statement. When a ship discharges her cargo at a foreign port the general average is usually made up according to the laws of the country wherein the port is situated, which will explain the meaning of the clause in a marine in- surance policy, general average according to foreign statement,'* as it indicates that in the event of general average being claimed the underwriters undertake to settle any loss according to the distribution or adjust- ment made abroad. York-Antwerp Rules. In 1877 an attempt was made to arrive at uniformity in the adjustment of general average, and a conference was held in Antwerp which resulted in certain rules being formulated which go by the name of the York- Antw^erp rules, and where a clause is inserted in a policy, general average per York-Antwerp rules,** it means that both parties agree that in ca.se of general average the adjustment shall be made in accordance with these rules. The Antwerp Committee adopted as a basis for their regulations certain rules proposed by a committee at York in 1864, which were known as York rules, and by adding to and modifying these York rules the Antwerp Committee formulated and agreed to the present code, calling it the York-Antwerp rules. PAETICBLAB AVERAGE ON SHIPS. 167 i Particular Average. Under this heading are classed any partial loss, damage or deterioration of any part of either or all of the interests insured, whether it be the ship or cargo, arising from the ordinary perils of the sea and navigation, when the conditions detailed under the heading of general average do not apply ; but in particular average each sufferer bears the loss or damage incurred on his particular interest, and, if insured, recovers it from the under- WTiters. Particutar Average on Ships. In order to class as particular average, and be thus recoverable from the underwriters, the damage to ships must have been actually occasioned by accidents inci- dental to navigation, and not by simple w'ear and tear : and m cases where vessels have to repair damages to their hulls the underwriters only pay hir those charges rendered necessarv by a specitied accident, and not for remedying any old imperfections that may be found to exist while repairing the damage done. Masts, spars and ship's tackle carried aw^ay by bad weather are particular average, as are also any sails that may liave been on them when earned away, and so are damages to the hull, rudder, hatches, skylights, cabin stores, instruments, boats, galleys, etc., and damages by sea perils, which includes collision, fire, pirates and enemies. Some parts of a ship’s stores and tackle aie not allowed for when carried away, such as the ropes and water casks kept on deck, the steamboat hung on davits and sails split by the wind. 168 A COUNTING-HOUSE GUIDE. In like manner repairs, such as caulking and re- sheathing, rendered necessary by the ship's straining and labounng in the sea. are not made good by under- writers unless the ship has stranded, or, in cases of resheathing, struck against something below water-level. From the cost of repairs rendered necessary by sea perils (which includes collision, fire, pirates and enemies) the underwriters, when settling a claim, usually deduct one-third for melioration, on the principle that a ship is a gamer by having old material replaced by new. But when a vessel is on her first voyage the repairs are allowed lor in full, as are also anv temporary rejiairs effected at an intermediate port merely to enable tin* ves^d to continue her voyage* to her port ot di'stiuation Anchfiis are allowed for in full, and chains at five-sixths of their cost Slnp's provisions carritHl away or damaged are also allowed for in full Ship'^ are “warranted free from average under d per cent , unle>r> gt'iitial oi the .'.liij) he stranded” This clause IS in'5eit(Hl to piuleet tin* undervvi iters against vexatious anti trifling claims, fora \essei scarcely ever perf'»rms a vovage without incurring sonn* shglit damage* soinewliere, aii\ the* ship Uin* claim for whu h does not amount to per C(*nt of the d(‘clared value*, unless tlie damage (*omes under the he^ading of gene-ial axeuage*, or unle ss the ve sse'l has htraiide*el, in both e)f whu li cases the damage is maehi ge)od, howexer sinalJ it may In* PARTirijLAR Avi:k.\gk on Goods Undt r tins heading comes special le>.->s oceasioned by damage by sea-water, fire, etc., to any part e)l the cargo, PARTICTJLAR AVERAGE ON GOODS. 169 accidents in loadinj^ or unloading, and also expenses in- curred in repairing packages and rendering sea-damaged goods merchantable The loss on goods which have sustained damage is ascertained by deducting their sale value in the damaged state from their value when sound This sound value is certified to by biokers and merchants acquainted with the trade in the particular article, and the loss from deficiency of weight caused by sea-damage is ascertained from the invoice for the goods, or by a comparison with the weights of the sound packages The {percentage of loss thus ascertained forms the basis of a percentage claim to be made on the sum insured Tlu' jtssured do not necessaiilv recover the exact «• amount of tlieir loss fiom the underwriters, as the follouing ease will show Let us suppose that a cargo ot sugiii insult d for £5,000 is found, when discharged, to l)e damagt'd to tlie (‘xtent oi 10 {lei cent of its insured vahu' Tht' meiehant owning the goods w’ould only be able O' i(‘eo\er 10 })ei cent t)n the duiount (p 1 lus policy, ri:: , t’500, allliougii, owing to the sound \alue of tht^ carg«» on airi\al being gu'attu than tlu* sum insured. Ills los> may l»e mucli mou* than tlu‘ amount thus re- coMut'd Mereliants, theretoie, usually proteel them- sehts against this contingincy b\ insuimg ior 10 per cent to '10 per et*iit more than the invoice value of got)ds iij oidtu to cover thi^ ex[)eett‘d protit In oidtu that a claim may In* against underwriters as particulai avt‘iage on gotals, it must be shown that the damagt* was din^ctly occasioned by s(*h jhuiIs Thus, if a cask le adjustment, are so diitieult to be resohed, that the most experienced average adjustor^ often dider greatly in their dt*cisions. It \vouid tluu'efoie he useless here to attempt to give more than an initiatory explanation m th(‘ most snnjde forms of statements ol this natun*, confining the atten- tion to tlu' two statements of general averages on the followTng Images, The first of these stateimmts has reference to a j('ttison which h'ls been defined to he “the moht ancient and legitimate source ot general average contribution In this the lf)ss lias been occasioned bv the lu^cessitv of making a sacrifice of part ot the cargo for the preserva- tion of tiie rest and of the vessel, and by the necessity also of having assistance to get the ship from her STATEMENTS OF AVERAGES. 173 dangerous position and to })nng her into port The remuneration paid for this assistance, the value of the jettison, ascertained from the deficiency of delivery and the rate of price w^hich it ^vould have produced if it had arrived, and the amount of the freight upon it which liad thus been lost, together with notarial charges and the expense of making out the statement, form the amount to be contributed by the three separate interests named m the apportionment, each according to its stated valuation. As already explained, the underwriters upon each of these interests, if insured, are liable to make good the loss thus incurred ; and it may he further observed, that this loss coming, in the first instance, upon the owmers of the property, it is not rtMjuisite to make a percentage of it in this statcmiont It is w^hen the amount so borne by them has to be lecovered of the underwriters, if iiisim‘d at Lloyd’s, that this is necessarv The owner of the cargo or jettison w’oukl, m this case, also recover from them tlu* amount of the jettison, or a proportional amount according to the insurance The cause of damage which forms the subject of the second statement of a general average was mjurj^ done to save the vessel, as explained in tlie protest, also designedly and for the safety of the vessel and cargo, for accidental damage forms no ground of general claim, though it may he one as a claim for particular a Virago The reason of making a deduction of one-third of the valui‘ of the new articles replacing the old ones, is assumed to be fiom their superior value to those de- stroyed (this in new vessels is commonly one-sixth), and any such deduction is carried to the account of i74 A COUNTIN0-HOUSE GUIDE. the owners, as improving their property. On the first voyage no deduction is made on this account. In the apportionment of the whole claim, the amount at which the freight is rated is stated to be net, that is, after the sum paid for wages is deducted. STATEMENTS OF GENEEAL AVERAGE. Statement op General Average on the Spet^dwell, Robert Simpson, Master, from Yarmouth to London, in consequence of getting aground near Harwich, and having the assistance of two Fishing Smacks, by which, and by throwing part of her cargo overboard, she was got off and brought into Harwich. Paid, per agreement, to John Morris and it James Daniel, of the smacks Dolphin and Emily JkGOOO Notarial Charges, Agency, and Postages - 4 14 0 Value of Barley thrown overboard, Shipped - 690 quarters Landed • 509gths Thrown over 180^ at 32s. • £289 0 0 ' Deduct Freight and Lighterage 36 8 2 252 11 10 Add Freight of Barley throw'n overboard •! • 'i 22 11 ^ i 389 17 4 .Statement * 1 1 0 £ |{ 840 18 Apportionment. Ship - - - £800 pays £148 V2 7 Cargo ... 965 179 5 8 } Freight - - - 70 „ 13 0 1 !| £1,635 £340 18 4 STATEMENTS OF GENEBAL AVEBAGE. 175 Statement op General Average per Nonsmh^ John Bloomfield, Master, accrued on her passage from Demerara to Liverpool, m consequence of cutting away part of her ngging and receiving other damage, as appears by protest. 1 i Sundry Cordages for fore top-mast-stay, back- 1 stays, running riggings, etc., as per B. & T. 1 Morris’s bill, 1 Cwt. 8 2 5 at 508. • £21 7 2 i i Off \ new for old 7 2 4 £14 4 10 New top-sail fixing and fitting. j as per J. Caley’s bill - £21 6 6 i Off \ new for old ‘ 7 2 2 i i £U 4 4 1 £ 28 1 9 1 2 Survey, ♦ • ( 1 I : 1 0 1 Noting and extending Protest • • • 2 2 0 1 Postages and Petty Expenses m t 10 6 1 1 1 £ 1 32 2 8 1 Less proceeds of old cut rigging saved m 1 8 0 i 1 £ 30 14 8 Stating Claim ) 1 1 0 £ i t 31 8 Apportionment. 1 £ s. \ i ! 4 D. 1 1 1 i Ship valued at £3,200 pays £11 4 4 Cargo „ 6,220 „ 18 6 0 Freight, Net, „ 647 „ 2 5 4 £9,067 {£81 IS 8 i ! 1 176 A COUNTlNG-HOrSE GUIDE. Statement of Particular AvERAGii. A careful study of the following statement, taken from actual practice, will ^ive the leader a f^ood idea as to the manner in which particular avera^^e is adjusted. It was the case of a cargo of sugar, in boxes, insured for 1*1 ‘2, ‘200, and sold at 24s. 6d. per cwt for the sound portion, 21s. being the value fixed for the portion “ washed,” which IS a temi used in the trade to signify salt wah'r damaged. The chief points to which th(' attention is to be directed in making a statement of particular avt'rage upon goods aie the follcming, viz. . — tl) What the damaged goods would probably have produced it they had armed safe. (2) What they did product' in their damaged state (8) What the assurers are to pay according to the conditions of the policy, taking also into eonsideiation the extra charges which have attended tlu' salt' and the damaged state of the goods The first point is found by comjiaring the invoice weights of the sound and damaged, and finding the probable gro'^s eight ot the latter from th<‘ actual gross of the fonner , and the rate of valut* is taken from the certificate of the brokers appointed to survey th(' goods. The second j joint is determined Irom the broker’s axx’ount of the actual sales at pul)lic auction. The third point is ascertained from the valuation in tlie poIicA, and if this valuation is gr(‘at(T than (*ven the sound valu(% the assurers have to pay a gr<‘ater sum than the actual deterioration The extra charges then being added, tlie amount of the claim is percentaged upon th(‘ amount insured, to show that It is sufficient to render the assurers liable according to the terms of the memorandum to the policy. STATEMENT OF PARTICELAB AVBBAOB 177 SlTATEMBirr OF CLAIM FOB FaBTICULAB AVBBAOE OB SOOAB, BOa- damaged by the Neptune, from Havana to London. Damaged Noh 2805/280C = 2 boxes landed empty 2807/2814 = 8 „ washed. Particular Avehaok— Series 2801/2810 — 6 boxes washed If 2,814 boxes be valued at £12,200 (value Insured on the cargo). Nos 2805/2800 = 2 landed empty are insured for 2,804 sound boxes landed— 12,020 cwt 8 qr 8 lb Tare 2 qr. 17 lb 1,827 „ 2 „ 12 „ Net - 10,103 cwt 0 qr 19 Ib cwt. qr lb No 2807/2810 only landed - - . 14 0 5 Tare 2 qr 17 lb. - - 2 2 12 11 1 21 at 21/ j 12 I 5 lNsuuEi> Value— | 4 boxes £17 Os, KSl , depreciation H2 540 ' per cent. Series 2811/2814, 4 boxes washed — cwt. qr lb Should have landed 14 2 4 at 24/6 x; Did land • Tttre2qr 171b. 14 2 26 2 2 12 12 0 14 at 21/ 12 1 INSURED Value— 4 boxes £17 6b. lod. . depreciation 28 605 per Survey Statement • 8 D. £ S. D £ 1 8 i I 13 6 ! ! A i' : 1' 1. !i !' ! ) t 1 ; 16 ( '' 1 : 'i 1 ! t t > 0 II ,1' 2 1 1 1 1 1 16 ! » i j I i ,1 12 10 ! i 14 16 t 1 , 1 i i ( *■ I 1 t 14 ’i! 1 8 D 6 t cent 18 ! 6 0 10 19 15 ( 1 i . 1 20 ' 16 (Signature of Average Stater ) 12 178 A COUNTING-HOUSE GUIDE. Statement of Particular Average on Cotton, per Exetei, Capt. White, from New Orleans to Liverpool. Insured £ s. d. 840 Bales of Cotton, valued at £10 each, to pay average on every 10 Bales running landing numbers 8,400 0 0 Arrived 808 Bales, of which 81G Bales wore sea- damaged. Jettison 32 Bales, paid by Ship — No Claim Insured Value of 310 Bales - £1,100 0 0 The same would have sold if drj, as Statement No. 1 • - £3,821 13 0 Sales of B‘ wet as ^r^.stat No 2 - £014 0 0 Do of 237 B’' lep'* , I as Irt Stat No 3 2,501 10 0 I 3,170 2 0 I If £.3,821 13s. lo^e - - £045 10 0 , then Insured Value, £i3,Hj 0, lose • • £ 538 15 ! 3 hxTR^ Cha^koes Brokers’ Survey . . - - Watching on Qua\ Extra Labour, Cartage, & Canva^ f General Average, per Statement Adjustment .... 1 0 0 64 1 688 3 4 211 0 8 2 0 801 12 0 STATEMENT OF PARTICULAR AVERAGE. 179 The proportionate loss to be borne by the under- writers upon the damaged part of the sugar, forming the subject of the particular average, on page 181, may be explained as follows : — The first portion of the statement contains the account of the insured interest, with the condition relative to the average, w'hich, by the clause m the memorandum to the policy, must amount to 5 per cent., in order to enable the assured to call upon the assurers for reimbui'seinent The second portion is the general declaration of the cause of the present claim. The third portion contains an account of the esti- mate.s of what the twenty-two boxes of damaged sugar should have weighed, proportionately to the w^eight of the whole of those which arrived sound, and of what they should have produc(Hl, according to the liroker's certificate of their estimated selling prices, if they had not been damaged. From the amount of these valua- tions is deducted the aclUtd produce of the twenty-one boxes (one box having been emptied to fill up three of the damaged boxes), as shown in the preceding account- sales, and from the estimated sound value compared w'lth the estimated loss, thus found, is obtained the percentage rate of the deterioration. The last portion of the statement has for its object the distribution of the loss upon the series of the numbers, and as the insured value of each of the boxes W'as stated m the policy, no valuation of them is here necessary from a proportionment of the whole amount insured, ujion the whole number of the boxes, as would otherwise be required. Also, as in the landing of the sugars, those which were damaged were set apart for 180 A COUNTING-HOUSE GUIDE. examination until after the rest had been weighed and numbered, as is usually, but possibly not very fairly, done, the numbers of the boxes of the damaged sugar come all in the latter senes of numbers. Hence, in the present case, the separate amounts, calculated for each series of ten running numbers, are each of them more than 5 per cent, upon the insured value of ten boxes, and no question therefore arises as to the liability. It may further be observed, that when the last numbers are damaged and do not make 10 boxes of a senes, as m these boxes for numbers 961, 962 and 963, they are reckoned by themselves or without reference to any 10 boxes, and a single box, slightly damaged, might thus claim an average. On the other hand, if there had been only 961 boxes in all, and 22 boxes out of them had been damaged, then 1 box would have come into the series 930 to 940, and as the deterioration for this box would have been only £1 7s. 4d., it would not have amounted to 5 per cent, upon £50, and there would, consequently, have been no claim for making good the damage on this number. The same sometimes happens when one box, case, etc., or more, has been passed over at the first as being sound, and has afterwards been discovered to be damaged. The amount of the detenoration has, m this case, to be ascertained and percentaged upon the series to which it belongs, and there being a claim, or there being no claim, depends in like manner upon its amount. This insurance having been effected at Lloyd's, the amount of the claim is percentaged upon the amount insured in order to show the pro rata claim upon each of the underwriters. STATEMENT OP PABTICXTLAB AVBRAOB* IBl Statbmbnt of Particular AvKRAas: on Sugar, sea-damaged, per Susqueharmah^ Captain Wilson, from Havana to Liondon. Intrrsst. D. 963 Boxes Sugar, Valued at £5 per box - 4,815 0 0 To pay average on every 10 boxes, following landing Numbers. Damaged. 22 Boxes : — 18 Sea-damaged. 3 Washed and filled up. 1 Emptied to fill up. Particular Average 941 Boxes sound, Net Cwt 3,644 3 2 Sound Value. If 941 Boxes weiglied Cwt 3,644 3 2 j then 22 Boxes should weigh — !• 12 B- 46 1 26 (a 32/6 - £75 10 8 ! 6 „ 23 0 27 „ 31 6 - 36 12 1 . 4 „ 15 1 27 „ 31- - 24 O 3 | £136 3 0 i ! They produced — jj B- 46 0 5 (a< 27 - - £62 8 2 6 „ 22 3 17 „ 22 6 - 26 15 3 I 3 10 H 27 ., 20/- - 10 19 10 ;! Deteriorated tha or 27*35 136 Continued. . 1S2 A OOUNTING-HOUSE GUIDE. £ 8. D. mhniml). Insured Value. I 1 i ^ox. Series. JBo.rcs. » 940 to 950 9 £45 at 27 35 7„, 12 6 2 961 „ 960 10 60 „ „ - - 13 13 G 961 „ 963 3 15 „ • - 4 2 ! 1 1 ; 30 1 1 1 9 Examining Documents d Stating Average i 1 1 1 0 1 31 1 2 9 i i I I On £4,816 = 13/- '/< .30th Jan., 1901. Exd. and found Correct. J0H5 OlBbON, Average Adjuster, G4 Impenal iiuildtngH, Ludgaie Circus, London, E C For the reader’s guidauco in more complicated cases of particular average the following example is added : — STATEMENT OP PARTICULAR AVERAGE. 183 e8 a o 0 0. nS a> bo cS c d nd 1 eS o «/3 a; a “ = < ■“ c: » > < os < H SS < OS o A »«< < o o H v; b< M h < H X? Cl d 1 X • L- X Cl fl A fH ,-4 ] Q '•t* Cl CO oc O 'M Mr 1 1 • c o ts • < » o a> ■s Cl Cl r-4 3 43 *3 > o - •* 1 * «» ^ Cl — «—» Cl Cl 2 1 (i V o Cl ri 9 3 X •-1 cc X d ^ ?i x Cl s M < *s Cl 10 . Cl ' 43 as •4^ a 0 »-4 c3 “ h< K 1 43 jc u 1 rH Cl C *• •• u: W> «— >*> w X 'i' X 4^ C 1 *Q t'- Jo 1 Cl I * -c ? c ^ ed r4 4^ 1 O 4t. I •-< 1 ““ 1-4 T-l • t 1 o ^ 1 m " (C j- X X «i « •*3 Q fm O O i Cl x> o u; Oi* ’««> ICi cc 'H E jrt 2 “s T :* e8 x: 4^ r-t •T' ~ 'X i.*-i Cl o X i 00 . c£ fS jO ^ ■* *>- •jm, *> « c ^ u d X&- A X 1—. o ^ o 'i'- t> cs {Continued.) 184 A COUNTINQ-HOtJSB GUIDE o o iH *o CO 8 OJ O) rH s iO 00 to to (N S' ■4» <6 CO 00 0« % 0> CO tH 1 Ms » Oi O «N O Cl Cl o 1 • ^ o*®® o • n if fo CO d ^ d 2 o -o « §5 O £ Net cwt. 88 3 14 (Continued,) 37 bags should land ... - Cwt 49 0 9 at 30/2 p. cwt. STATBMBKT OP PABTICXTLAB AVEBAGE, 185 GO i GO tH « 0 9 l> CO I »H ^ I 8 16 £3 iH «H CO I >0 iH tH I >0 lO tH CO o) CO uO r-4 18 O CO CC fH >o 3> r-4 49 ? o • 49 Q . I > . u o8 (N (M I 00 <4^ 49 a o I spii 0} SP = jO CC I tc eS » 00 t-H iS o 6'- o 5 ^^ - r-t M . r’ 2 2 o ® o 2^ P aT 2 ^ 49 ^ 1 - 05 cu s 0H statement Ill 186 A COUNTING-HOUSE GUIDE. General AND Particular Average. In the following statement the remote cause of a claim for general contribution arose out of an accident, but the direct cause was the necessity of having assist- ance, and of putting into Cowes for general preser\ a- tion. In making it out, the amounts and causes of all dis- bursements are first set down ; the distribution is then thus made : the pilotage inwards, half the surveyor’s fee, the protesting charges, the award to boats’ crews, the anchorage and harbour dues, the charge for certifi- cate and bill of health, and the petty expenses are made general. The ship is charged with the other half of the surveyor's fee, and those expenses which attended the repair, such as those of the sailrnaker, smiths, and shipvvnght, and of which a portion is to be borne by the owners for the improved state of the articles, are at first put into a separate column ; then when the amount has been ascertained, two-thirds of it are placed to the account of the ship, to be recovered of the assiirtTs upon the ship, and the other one-third is placed to the account of the ow^ners, together, for tln^ same cause, with part of the bill for smith’s work The pilotage outw^ards and the bill of liealth belong to tiie freight. The amount ot the general average is then distii- buted. The deterioration occasioned by the accident is taken from the value of the ship, and the general average on the remainder being added to the claim on GENERAL AND PARTICULAR AVERAGE. 187 the underwriters for particular average, on account of the ship, forms the amount of the whole claim on this account. In like manner and for like purpose, the con- tribution on the freight is added to the particular average on the same, but the contribution on the cargo is with- out such adjustment, as indeed there is here no state- ment of particular average on the cargo. It IS very common for the average stater to specify the amount which each shipper has fco contribute ; as SJwiL d Trundle - - £11,000, to pay £,21 4 10 a CV;., . . . 2,740, „ 6 15 9, etc But this 18 sometimes done by the ship’s broker, who collects the amounts and repays the disbursements. StATEIIKXT of GbNKRAL and PARTlcrLAR AvSHAOKt 188 A COUNTINO-HOtTSB ffUIDB. 190 A COUNTING-HOUSE GUIDE. A Captain’s Protest or a Ship’s Protest. On resorting to any act of sacrifice, or on a ship or her cargo suffering any extraordinary damage, a captain must enter in his log-book a full account of what transpired, and on touching land, whether it be at any intermediate port, or on the termination of a voyage, he must within twenty-four hours after landing, and while the causes and circumstances are considered to be fresh in his memory, note a protest before a notary or a public magistrate, if at home, or before the Consul if abroad, and should he require further advice or assist- ance he should put himself in communication with Lloyd’s agent, one of whom he is almost sure to find at any port of importance, as the acts of thc^se officials are generally respected Iw the insurance companies, as well as h\ Lloyd’s. The captain s protest is a document wherein he sots forth the full particulars of the circumstances which led to the collision, disaster, the act of sacrifice, or the running into port in distress, and is the principal docu- ment requisite in the settlement of all question^ relating to average, and of all matters relative to any loss or damage to shipping. As a piotest must be begun within twenty-four hours after the captain’s arnval m port, it is now a veiy common practice with them to simply note a protest on the termination of every voyage to protect them- selves in case any claim for damage should arise, leav- ing the formal document to be drawm up, or, as it is called, extended, later on if necessarj^ The following will serve as a guide as to the manner in w'hich a protest is drawn out by a notaiy, thi* case being supposed to be a collision. A captain’s responsibility. 191 Example of a Captain's Protest Know All Men By These Presents that on the 2nd day of June, 1900, at the City of Liverpool, in England, before the Notary Public, whose name is heieunto subscribed, appeared personally James King, Master or Commander of the steamer or vessel called the Viking, of the Register of 1,900 tons, or thereabouts, belonging to the port of Gothenburg, m Sweden To Ihotest for that the said vessel, at G‘H0 a.m. on the 2nd day of June, 1900, being laden with a general cargo, and being tight, staupch, strong, and perfectly seaworthy , proceeded out of the Morpeth Dock, bound for Gothenburg, in Sweden, in charge of a Pilot, that immediately the Appearer’s vessel got outside the Dock to proceed to sea, a vessel, seen and believed to be the Kingfisher, was observed coming down the rivei, and when approaching the Appearer’s vessel, the Kingfinhei ran into and collided with the Viking, smashing in her bulkhead, and doing groat damage to her engines The Appearer’s vessel, after getting clear of the Knigff^hei, went back into Dock, and moored there. Wherefore the Appearer protests against the aforesaid collision, and against all persons whom it does or may concern, as well as for all such injury or damage, loss, costs, charge^, and expenses, suffered or sus tamed, or sustained by leason of orm consequence thereof JAMES KING Taken before me, Ch\ules Solas, Notaiv Public, Liveipool A C\p'j ain’s Responsibility. Tlie captain of a vessel is the confidential servant or a^ent of the shipowners, and in conlurmity with the rules and niaxniLs of Kn^lish laN\, the owners are bound to the pertormance of every lawful contract made by bun relative to tlu‘ usual employment of the ship. Sucli IS the dictum of Tjord Tenterden, and it is a very important point to hoar in mind, for it very often hajipens that a captain, m the absence of a shipowner’s instructions, is under the necessity of acting on his own discnition. Lord Denman has laid it down that 192 A COUNTING-HOUSE GUIDE. a captain on a voyage is also an agent for the cargo owners, but where practicable a captain is bound to communicate with his owner when in difficulty. In cases of distress, before proceeding to jettison any portion of the interests confided to him, it is better for a captain to consult with his officers or crew, but he is not bound by law to do this. Jettison. Goods, ships stores and tackle thrown overboard are said to be jettisoned, and so are goods on board put into boats, or into any insecure place, to relieve a ship in danger, as they may thereby be lost. The value of goods jettisoned is usually reckoned at the price they would net if sold immediately on arrival, but occasionally the invoice value is taken. When goods are jettisoned there is usually a loss of freight, and the freight contractor, be he the shipowner or any one else, can recover the amount as general average. Stranding The main condition for a stranding would seem to be that a vessel shall have ceased to bo waterborne for a perceptible interval of time, whether for five minutes or five hours matters not, provided it can bo shown that she was detained by resting on something solid, mere bumping or striking on the bottom, or on a rock, how- ever severe the damage thereby occasioned, would not be a stranding. The stranding must also be occasioned by accident, and not be purposely or voluntarily done. Grounding in the Suez Canal or the Manchester Ship Canal is not considered as stranding within the terms of a policy. ABANDONMENT. 193 Collision. In cases of collision, the owner of the injured vessel may bring an action at law against the vessel at fault without prejudice to his right to recover from the under- writers, should he fail in getting compensation from the other ship, and shipowners generally prefer taking their remedy in this way, because, for one reason, if they get a verdict in their favour, they have the cost of repairs allowed in full, whereas if they recover from the under- writers as particular average, one-third of the cost is deducted for melioration. Abandonment. When parties have a claim for a total loss, they should at once give the underwnters notice of abandon- ment in writing, wherein they formally abandon to the underwriters the whole or whatever may he left of the goods, for delay in giving notice may, under certain circumstances, act prejudicially to the interests of the assured, although omitting to give this notice does not bar the right to recover for a total loss, if such a claim can be established. It is usual for underwriters to refuse an abandonment for total loss, for their acceptance would render them liable to pay, even though circumstances should subse- quently come to their knowledge to remove the claim from the category of a total loss, provided, of course, there is no question of fraud ; but an underwriter's refusal to accept an abandonment does not exonerate him from paying, if the total loss can be established. If the abandonment is refused, the assured may still use the discretion allowed him by his policy, and sell 13 194 A COUNTING-HOUSE GUIDE. what is left of his goods for the benefit of the under- writers, and act generally as their agent, without pre- judice to his claim for a total loss. An abandonment once made cannot be withdrawn. Should certain cases of average occur during a voyage — such as disbursements incurred for repairs — and the ship or cargo subsequenth’ become a total loss, the fact of their having to pay for a total loss would not relieve the underwriters from making good the average pre- viously incurred, and therefore it may happ(‘,ii that underwriters on a policy of £1,000 may have to pay £1,500 or more. Toial Loss. To claim for a total loss it is not necessary that the interest insured be really lost or destroyed ; it will be sufficient to show that owing to some of tlu* jierils insured against such damage lias l)(‘en inciiiTed as not to be wwth repairing, or prcjve that the interest insured was in such a position as to be viitually out of the coiu trol of the owner or his rejiresentative. A ship stranded upon a desert coast wluTe there are no appliance^ for getting her (^ff would be a case of total loss, even though the ship should be in all respects per- fectly sound. Where a \essel from damage received puts into a poH short of her (h^stination, and it is found by survey that the expense of repainng her damages so as to enable her to complete her voyage would exceed lier presumed value, the captain is then justified in abandoning her to the underwriters, or in selling her for ilwir benefit, the shipowner claiming on them for a total loss. Seizure by enemies or pirates comes under the cate- TOTAL LOSS. 195 gory of total loss, and the owner can recover from his underwriters, unless his policy contains the clause free from capture and seizure, and the consequences of any attempt thereof,” which is known as the war risk, and in time of war it is usual for underwriters to charge an extra premium for insuring against this risk Barratry, or the fraudulent running away with a ship or caigo by the captain or crew is recoverable as total loss, but where th(‘ captain is the owner or part owner of the ship his fraudulent act is not barratry, and the underwrilors are exempt Iroin liabilit}^ m such a case. Wher(i goods through ptTils of the sea are put on shore at any port short of their destination in such a damag(‘d stat(‘ that, according to a surveyor’s opinion, it would be l)ett(‘r for the und(‘r\vut ^ *2* r* w ix C ta 'H-'C O s ? •“ S a ^■§S.S^ . 2-o| " a « . 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PQ TS ^ c X « X C • ft4 l-sM a o 2. a =H §* ^ o Q»d d bogps ® U.«5 m CJ timm TlS §-S|S 3 ® ■» a 2 * 5* •" kj :3 ns l»«i «* >^ 00 •- a/tj ■p ^ 5 --C J- -P Cm p 2^x3 a 2 i I C«ejkarf2'd-a2 =<^ fx5 £ - S O k •— 21 — ' ZL4 ^ ^ -PS O © ^ 3 M : ,p ** Q bc a jr S « o8 3 o S -'C! 4m P P b *4 bfi n rf © **- O • S £ « c8 o p« a< 2? j2 w ^ JZ, •p it is «r^ a 3 © U- ^ ^ Cj a Si® P 4a ISpJP S'® 1S P SP;,; g Sox^ 2: ^ H ?» P 3 ♦» © © P 5»--«-g,||4i 1,1 CHARTER PARTY. ^ 5 !>! ^ g^l s S'! .§ a o O r§ 2 O ^ §-r o V* « ^ (A ® -'S' I « 5 « s 9 ^ H i: S d ^ p ^ x s .. ^ OB O O rt t® M-. « 9 to O eS oj "5 -9 SS J =>■§.'>! S ® - oT 9<'T3 - to 2 2 « 2 ^ ^ 9^ p 2 *3 §^-"S to P to ^ ^ «A &i O^ fl 03 c9a P<0^ ^ .S toCJ ^ -. -.c ' on P 03 UJ ^ J.1 « •" P 9 c ^ ^ o tooO^toP to to -*2 S. ” <8 -w ^ Sbji< Cl, §5St Sn3 o P 2 -w to 2 jD ^ P 'T? 9 to to fl -P «S S go 03 ® .P 01 Cii O to ftO to n3 ^3 O EO Ch to ■2J ? S ■ 3 to tl >- p t 9^ to 01 c^S o 7L rmi M % . . w 01 “ O O 03 2 3 P O « ^ to Z! •*-• ci'O o8 t/ — — to ^ X 2 ^ ec P to ^ ed to od Cl • to 9 a-c p to jg . to *1 > to! sd o a.p .3 - to tc5' 'P ” 3 2 p r' ® 9 ^ rQ O » oi 'O ■'a to 3 P a _ ^2 9 ^ *0 2? S ^ cd to s jJ o ^ ^ CO c «» to ® a a P '9 cd to to r> **- p ♦3 <« X P 03 « ^ o oT 3 O to o ^ ^ cd cc to a zr to _ 3 P P P CO Co to> ^.a 01 ^ rto cd a 2 s g S « fc •s «a to. -a Q w 3 p a to to 5 ^ J3 GJ cy C ^ « 2 c> jdx o 2 E ^ CC'^ g a cc a 'P 9 to cd CO to D 1h »H '“' Od *3 a O \j »“ *to X to P la a m od H 2^' 'S ^ a to a: a: a 45 g 3 to P ^ to to» o o ^ ^ ^ w .. -» 5l3f C o ^ c:> P toS a ■p a cd o i to to a a ■ 3 P •-^ bc c o I-' s - g p .. 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Lay da^s not to count bcfoie The Captain to sign Bills of Lading at any freight lequired by Charterers, not less than aforesaid rate, and dilfeiencc to be endorsed on Bills of Lading as cash advanced on account of freight The Captain to einploy Charterers agents at Ports of Loading and Discharging (or CustoiU'house business inwards and outwards^ on ttie usual terms, or for each dpfault pay £20 as luiuidated or agreed damages. Steamer to be reported during utheial hours onl^ Any averages occurring under this Charter to be settled according to the York 210 A COTJJfTlNO-HOUSE GUIDE. (3 F-SI rC ns 'p O ^ S S s ® ,9 £ ^ TS S' g £ ^ 5‘a«| 2 ..-a gS ® a _ ^ « C o {5 $ 2 A, '3 q ®-Sa <* £.2~ £ Sp^ Q is *»H ft. o8 '** > 2PS 3 e3 oj i-t -C > 'C ^ o k o ■st s §■ 0) >>*2 ® o is ** sr»s S 5 «5 o8 5 ^•3 O'® 'tS O 4-» _ a _2 d'C'S'** p J'O P o «j g "p *2 9 C) «-i «o £ H ® Q o 3 2 dj «,-g ■^3 ^ qi,® JS ^ s -« j *M a O <2 O <3 .2 J 3 g "•s5 2 o XX ® fc. 1 ' 3 ; O o a «fl es n ..X o > 3 , MX ^ 73 -- «: O 'C' 5 m 3 GP .w 2 S»o ^>.is* aM-®«8 ►sp'ts 2 ® J ^ 't: d SiSfeo^-p d^ ®.2 p < psq^ 5= ^'Ox- &. f« p a'9 u p c3 .ild cs u O -3 71' 0^\ O P ® a u> 3 u CO o* • p o p o •♦a "cS 'S CU CO cn H Example of a Charter Party for the Madras Coast, STEAM CHARTER PARTY S S. “ »* MADRAS COAST. LONDON, 19 CHABTBB PABfy. ' S3 3 a o pi iG as S 5 e ^ X a C o Zi as .C O Pi «*- r - — « O'® P >3 2 ^ p e: 2 ^ to Ji 2 •PI * flfl ert (i» 9"^ m 'rt .2 ® 2 5^2 tc - o u fc, a? o -p* . i2 -I 't! 5? 2-® 2 «g flfi <2 " ^ 4> 2 S ‘‘PS 2 C ^ sA IN «*• »«iii4 » M S :2 c ® toE.®"' c i' ^ ir ^ V/ ^ ^ S ' - Jif'.a r 2 u '-® 2 !> V »> c - rt ^ “ - *2 t: •p' _ r f __ /•» 5^.2 iS . C.!^ cS - rr p /! 'S w 5 i j;. Is: pS < D >- a ac »** rj p p 23 a) ^ j, « v; T W ^ Z1 X S t * 2 ^ O - P * ^ tmmt _ — i ^ 2 i p ^ '*" P - 3 2 — t : p , p 2 c -= 2 C 2 . - . ^ s ? ^ » iC «s V .2 ^ '/•) ». = 5 :2 ^^"2 »-• 2 i> C9 M« = J:X SS w i » p p y si _ - t ^z *5 ® y J c p EZ ' ^ to a "x ij i ' aJ i ® t 0 r 3 ~?S p r ^ -p o 'f C ^ 35 /* * A ^ E,6 .2 ii oj 1 '2 ' as 2 *J^'tC 0 T 5 j ^ <■* ^ p 02: ^ ^ 2 *5 es K-r S •f 2 ® * §c o tcjs C - Co w*. 4) O 2 ®2: « > p -r >» 1 2 ^ P* — ®^E . O I— 1 *5C P y «• ir <» PI O • ‘ 5 !*® 2 ' 2 l 2 - r®.L * ® 2«'S‘Sp e 3 ® b « CO o cr-M J JjH a > O r ? gtJH C 2 a ^ K ^ ^ ^ Lm mS i'S ^ ° gSSii’^ •S S| s s-g j-s,i 2 Pi/CJ 5p*^32HS p £ « M « -SS 9 Sa 2 2 g'gTJ SS>^’*-* 9 S>p CU3> Sti-^^-ra ® .JO- 9 7 rr ' CeSa ' tsSg'Mo » CJ X ^ W C3 In © 2? ?>U § *-3 ® o 8_- §S§.§ - M, , ■2^6 a;35 S ? g.?5 Ot, 2s,.. :5fe 2 a: IS a — p at Si o t* «® poOOp 2 •p p 2 9 p "p a ^ ^ 2*P 2 .1^ 2 C — 2 oitf) ® ccpp - 2:^^ ‘^^2 0, -a o "3 a ic ^ 'a P* p m ^ 5 y no'^p J,-®£-i - asC a-o-r 2 £1 i «* g)^ 2-5 «> tip o5 t £,p 2‘t55S52®>25 ® iT 3-““2t eS 2 ^ 2 2 3: . * 1 . PiK '^'^ aj ^ — -a fcst ^ ^ 9t 4> _P >» ■a o « |a5|li|5f 2 P . SPppir^s p a ’ p '^ a 2 '«>, a «>"2 22 ;* "? 2 .2 2 ^ S? SlWtjbid^OfcCp 9 2 211 or HO uear thcrcuuto as she may safely get, ami lay ahoat, aiul deliver the same, always afloat, in any Dock the Freighters or their Ag«.*iits may appoint, Freight in full ot all port charges^ pilotages and primages to be paid on the unloading and right delivery of the cat go at and after the rate of 212 A COUNTING-HOUSE GUIDE. 9 .ioqo sv UOf t?i/ < «r ^ s ® :5 ?? r « :s -- J5? 5^ « ^ ^ iJC V: tt s: ^- « ^ * tr tc SSB «» S t* c < IM X c c c c c u C pH > c r^^ a> 2 T SS. 2 v< »># •r* ^ ti r **> u Ct£ «e ^ i> -« — r '5!'^ 4> fc ^ V u « S V <« > « £ 2i B t ^ .s c *C iC'i « >5? 3 r* ^ C5 S ® fc-" ^ ^ I ^ 4id •ii ^ ■J ^ ^ 2 _ w C O 'Z Si e* Cm c o ^ >> «! P — «5 >> t- P O < . u a O *P iCX flS B} 4M tr — i ^ .s/' t- Sr 2< g ju fe 2-c 2 21 .fl P H- ^ ^ o JU ► c t« »i« jB 4>.2 i>^ O © ^ X tJ &3 -M js &0t-. S.p^ig © l^ge ^ to £ o 2- ^ 4J 08 £ £ r T? eft 2 _3 a> P C © '■^ -• 6* - - . v/- 6i* ^ mm ** X - g —a* ■“' u *2 © # T t ^ » r2« 2 — ^ -*“ ^ - «"2£;r-2'2^'Et Pji »— © 'T— Ce8*-*SJ' 2© pH PH« P * « rt = -C rt © 2 O <«>> & ej # S p ~ ~ "S a i, © 5 C5 c X 2— C"2 ^ p .. 2 <2: csr:^: ^ 'rin' t iri^o tfi )*t.* l'r<‘!i>;)it tf» .iwl t.ikt u fioiti aIoiij^nhIc tho httMiuer at tl»t* ri«»k and expense of the ShipiK^r-H y. iiiarterers ro'^jH^nsdnlit \ tnut.t>cel htiny: loadttl, providtMl the cargo i- worth the Freight, the Ownerx. haMiig an ahMilnte lien on the < urgo tor all tn ight, dead Freight and Demurrage. In c.\se of average, to 1 h '^itth'^l m wording to N ork- Vntw « i ]» Ilule> 10. The vessel *4 hold to l*e sulhcn utl> \entilate >1 a 1 " 2 3 ►*4 -.4 -1. © © © © ^ •W » <« ^ ♦>< » © 0 © ’a 3“ © .•^ ^ m a 0 'r? ^ ►*« M rt 0 0 © a 22 © © C!S ^ ►3 0 « 1 7 2^ 0 — © 0 22 0 : © a '©. 0 : A a 1-2 1 ^ S 0 2 a* - i "© .0 Jr ^ a c ^ *7 o S “ 0^ M 0 if' to z 0 £ ;= 2i ^ 2 O ^ F0 0 cl -M Si- a- if 0 0—0 .-• a •«-• s ® r ^3 0 O— a © a> c2 -• ?• c ® i' Sr? qj ^ « rt ® - " S> ^ s g “fbb -e^S-j a S 2 ^ ^rt 5 € ^ n* > 0-t t: ^ 0-0 =J ^ 3 25*00 — a G 4> 4 > ^ C ^ c -V 0 ^ f n -^•-“* fe s 0.M 2 1*' f- G. ® t» tr 2 "■, -i. - a. r: 7 ^ S -a* 0 ~ JL i»# ^ •! «• ^ ^ ^ X **** £S Jit i!: V «- tf c ^-2 2-0 © 0, ^ 0/ ^ ri 0 - 2 l‘ . g s i 2 S- es ♦-» /> *" «iii to 5* 5, *" K «■« Ti ^ fc* 7» i ^ -J 2 ^ ^ ^ - flt: -5 ^ © — /■ f— • ^ 4^21 5 tt^ £ 2 0 3, 0 a •• G - cJ a? 21 — c ^ X G t ti.*^: •w ^ ^ w — X to to 2 *^ »- 0 0 0 0 0 © - i to W •4-* -« tr 5 © " -■ 2^ a» s' c 5^ ^ — 3^ — 0 © i 0 0 0>T T. 0 C ^ r ~ ^ to - a M 2 ^ - Q ir — - J3 ® G 5 a —“ ^ I "G ^ © i 0 'i ^* © 0 -©S-- ^ a a» < «» / ••S ** ^ & o ^ ^ ^ c Im CS O "“ o. r ^ ^ /, a a -T _ -Sj 0 0 -t d - a ^ y to C ® © <0 • -^ — • ^taa 'I*' JL 22 ^ ~ ►3a ^ jr O i «5 y ^ V ^ f z; — c a © a -0 ^22 ’■^ i- — 0 0 0 £ 0 ‘ - ”' atf C -0 -£ ==a®0^*^ ^ 2 0 ?S2: O rt ©JS^Fat* -a'©-; ^ r^-©0^vs0r2 — ^ £ '-'«-• ^a — IJ J SO -0 a rt © ^ -a s ~a-^ ©,J:a-»^ 5 © 12 0 -0 tt gF . © ^t: c' •sS-Ee A2 C3 a ® © • 0.0 — ' »“ ■*-* — © (^ jj ' e a ^ i' cci £ S’" 41 0 0* £ a -j .0 © — •*>* /_’-'*-*0-a~'a5, — 6^ a'0'0 - T" :r §.'5.-'^ •’ ^ /■ 0 0 ' 0 'a. ^ «- G^>©«''^*:a4 - 0 C r^-r -*— ^ ' © w G 0 5Z! r i ^ Gi a ■0 a* a © 5 o . © Gr hr a ^ ™ © G «« ^ — c V '*■' ^ - ^ -/"A a 0 A ,2 © G © © a 5f_ •- . "* "ti - 0 ^ -H 2 © "T - a ? « a - - a O 0 15 a 0 V © — e ■<' -a — ^ —I ^*0 r C' 5 ^ ^ *z ^ ^ ml ^ ^ i ^ ^ ^ t 1 ^0 - = ^ 0 - ca^r/:ar:0©* , a ’' »- •^ 4 '’^ «*-* *1*©aa -a « • / Jl oj / j:. 0 ^ a a 0 T* eg ^ ^^4 ., ti4 ^ W ^ © 0 2 C -3 a tt— -0*5 ^ — G -=^5 0 ti.^- a « 0 tf ia GJ ”“0t 5- cc 0 2-- a i:- ‘i © a C 0 : a -0 3J '’“ JG 5? Tg jr ? CS C' ? '^'T 0 t: 4 S r 0 - 0 : r ? ?!:£ "t © rf © •“ a J55 © .~ © 0 “' a a —0 ^ l3 "a *" 0 © © 0 , 00 :© X 0 S w* ** T* 0 0 a T - C -3 / a 0 5 -.i« 20 0 t V :/. w c ^ •4 0 !>» S ^ p r- I— • G a a — a y © if =.0 , M. '»>> -X 2 C (.> o) P*-*** cejjt l>rok«'ragi* oil the estimated aiuouiit ot Fieight is due imdei this Ciiarter- h\ the Owners to Ship lost or not lo&t 20 Li(|Uidated damages lor iion-pertorraaneu ot tins agieemeiit estimated amount of Freight. Witness to the Signature ot Witness to the Signature ot 214 A COUNTING-HOUSE GUIDE. Clauses on a Chabteb Pabty. The chief clauses on a charter party are explained below, where they differ from those on a bill of lading. hi BcUlasL — A steamer is said to be m ballast when she does not carry a cargo, but has ballast on board to trim her or steady her in the water ; and the ballast may be either gravel, flints, stones, etc., or large tanks full of water for ballast, as in many of the modern steamers. Dead Weight refers to heavy goods either sent loose in bulk, or packed in casks, cases, baiTels, etc., and this is usually placed in the bottom of a vessel to steady her, the lighter cargo coming on top. Dunnage is a term used for the pieces of wood, mats, or small goods of any kind packed in between other merchandise to fill up the spaces and prevent the cargo from shifting or getting damaged. Pilotage . — The fees paid to a pilot. Consulage . — The fees paid to a Consul for getting his seal and signature to any document. Trimming . — Stowing cargo in bulk by spreading it equally over the surface so that it shall not rest cone- shaped as it falls down the hold. Cranage . — A charge for the use of cranes. Uaulage . — A charge distinct from carriage, for hauling or carrying goods from point to point on a railway. Lighterage . — A charge for the use of a lighter or barge. Towage . — A charge for towing a boat or a vessel. Lay Days^ or Laying Days, are the number of days agre^ upon to load and discharge a steamer, and they CLAUSES ON A CHABTBR J»ABTY. 215 begin to count from the date of the vessel’s arrival at the proper place for loading, discharging, or receiving orders, A Ships Husband is the person who attends generally to a vessel’s requirements when in port, and furnishes stores for her voyage, attends to her repairs, etc. Stevedore , — This is a man whose business it is to stow cargoes in ships. The miscellaneous cargo as it goes down a ship’s hold is of such a varied kind that only experienced men could pack (or “ stow,” as it is called) the goods in such a manner as to prevent them from shifting on the voyage, while at the same time utilising every inch of space. Liquidated Darnages are damages the amount of which has been ascertained or agreed upon beforehand. Dispatch Money is an allowance of so much per hour or per day, made by the owners of a chartered vessel when she is loaded or unloaded in a quicker time than that agreed upon in the charter party. Demurrage is a charge per hour or per day made by them when the vessel is detained longer than the lay days agreed upon m the charter party. Bunker Coal in a coal charter means coal put into the bunkers for the ship's use on the voj^age, and is of course distinct from the cargo of coal she carries. Bunning Days . — The number of days following each other, Sundays and holidays excepted, in which the cargo is to be loaded or discharged. Bunning Hours . — The number of consecutive hours allowed for loading or unloading a chartered ship. 216 A COTTNTING-HOUSB GTTIDE. CHAPTEK VIII. Opexing a Banking Account. When a person wishes to open an account with a bank he usually takes an introduction to them, and having paid in a sum of money he wntes m the signa- ture book his name, address and occupation, and thus shows the bank his signature by signing his name in the same way in which he intends to sign his cheques, so that, m cases of doubt, the bank can verify his signa- ture upon any of his cheques or bills of exchange. He IS then supplied with a cheque book containing a certain numlier of blank cheques either to bearer or to order as desired, the amount of which, for the value of the stamps only, his account will be deinted. A book of paymg-in forms is also supplied free of charge, so that he may record upon them the amount of bank notes, gold, silver, cheques or bills of e.xchaiige as they are paid into the bank for collection. The following is a leaf from a paymg-in book On the counterfoil is re- corded the name of the party from whom the cheque has been received for copying into our account books, while on the slip itself we only insert the amounts under their proper headings, and fill in the total. The separation in this way of the various items paid into a bank is of great importance to them, because it facilitates their work in book-keeping. OPENING A BANK ACCOUNT. 217 Example of a Book of Paying-in Slips. Customers paying in before quarter-past B o'clock, and on Saturdays before quarter-past 1 o’clock, will greatly facilitate business. THE BUNK JOINT STOCK BANK LIMITEB, LEADENHALL STREET, E.C. Date Credit Bank Notes. Or old « • • • Silver Cheques, &c. SHORT BILLS. N.B. — Cheques drawn on this Branch are paid through the Clearing House. 218 A COTOTING-HOTJSE GTJIDE. Having filled in the leai> we take the book to the bank» and hand it to the cashier, who checks the amounts on ihe counterfoil with the amounts on the slip and initials the counterfoil if found correct. He then tears out the slip which is called the paying-in slip, and hands the book back to us again. When country cheques are paid in, a book of a diflferent colour — usually green — is used. The banker also gives us free of charge a pass book showing a complete record of all suras received and paid by us, and which is in fact a copy of our account in the bank ledger. The left or Dr. side of the pass book shows the amounts we have paid into the bank, and on the right or Cr. side the amount we have either received ourselves or paid away to others. Pass books should be frequently left with the bank to l>e made up, by being dropped into the box marked “ Pass Books,’* and if not returned oftener, they should at least be deposited some days previous to the 80th June and 31st December in each year, in order that they may be balanced and agreed with the bank ledger. Merchants wbo accept bills usually make them pay- able at their bankers, and they are consequently paid into their bank by the holders for collection at maturity in the same manner as cheques. In all the large banks all cheques are paid by one set of clerks, called paying cashiers, who become experts in their knowledge of signatures and other .tt*chnical work which a bank cashier should know, and when the signature on a cheque appears doubtful to them, the cheque is usually referred to us for verification. Money on Deposit. When a customer wishes to transfer a sum of money from his current account to a deposit account at '' call,” MONEY ON DEPOSIT. 219 or at a seven days* or other notice of withdrawal, he obtains from the bank cashier a printed slip on white paper in the following fonn, and after filling in the particulars required, he hands the slip back to the cashier, who then passes the transfer through the books. Example of a slip transferring money from current to deposit accou/nt, FROM CURRENT ACCOUNT. To Date The Blank Joint Stock Bank, Liboted. Leadenhall Street, E.C. Please TRANSFER the siim of £ ^from y CURRENT to DEPOSIT Account on the^ When it is desired to transfer any amount back from deposit to current account, w^e obtain and sign a blue slip as follows : — Example of a slip transferring money from deposit to current account. PROM DEPOSIT ACCOUNT. fTo Date The Blank Joint Stock Bank, Limited. Leadenhall Street, KC. Please TRANSFER the sum of £ from DEPOSIT to CURRENT Account on the 220 A COCTNTING-HOUSE GUIDE. Where no fixed rate is agreed upon, the interest allowed on deposits at call and notice is a varying one^ dependent upon the bank rate, and is fully explained in money market, to which the reader is referred, and the account is usually credited either quarterly or half yearly. In some cases, however, when the deposit is withdrawn after a short period, the interest is credited to our account at once. Deposit K]*:ceipt. hen money is placed on deposit at a fixed rate of interest for a stated time, it is usual for a bank to issue a deposit receipt in the following form : — Example of a Dcjhk^H Receipt. Fur. UuKSh IUnk, London, Is/ .fanuanj, UK31. I>epo.^it iiecfipt. No R€cei\ed of Janies firaiii, Km] , the xuin of Ouu liuudrod Pounda lor two to beai inieresi ui tlio rate ol S per cent per annum for that pcrioii oni>, from Uk- Ihi jij'vt Fur the iJiank Hank, Lutnied. Similar receipts are givt*n by the many DiHcount Houses and others who borrow money for stated periods at a fixed percentage rate. CHEQUES. 221 CHAPTKE IX. Cheques. A cheque is an unconditional order m writing, ad- dressed to a banker, signed hy the person giving it, requiring the banker to pay on demand a sum of money to, or to the order of, a specified person, or to bearer. The stamp on all cheques is Id The person who signs the cheque is called the drawer, iho banker on whom it is drawn the drawee, and the person namt'd (if any), or to whose order the money is to bo paid, the paytn* The payee, while he holds th(' cheque, or any person who holds it by transfer from him, is called the holder. Ivxcept where otherwise pnnided by the Bills of Ex- change Act, the laws applicable to a Ihll of Exchange payable * • O CO o « Xi a Ph c 8 ^ a o &o ? ^ s> o o ® o a p iS o o o 5zi When a cheque is crossed generallyy the banker on whom it 18 drawn must only pay it to some other bank. Example of a Siyccial Crossing on a Cheque, 1 i i When a cheque is crossed specially, the bank on whonn it is drawn must only pay it to the bank w^ith whose name it is crossed, or to his agent for collection ; but the banker whose name is written across the cheque may cross it to his agent for collection. The drawer may cross a cheque in any of these waya^ and so may the holder if he gets it uncrossed ; and where it is crossed generally, the holder may cross it specially by adding the name of a bank, and m any case he may add the words “not negotiable" to a crossed cheque, but nothing can be added to a crossing. NOT NEGOTIABLE. 227 Not Negotiable. Not negotiable, as defined in section 81 of the Bills of Exchange Act, means that the person who takes the cheque '' shall not have and shall not be capable of giving a better title to it than that which the person from whom he took it had,** but these words, as already stated, can only be added to a crossed ** cheque. A further safeguard is secured by adding to a crossing the words not negotiable,** as in the case of theft the banker on whom it is drawn may pay it, and the banker to whom it is crossed may receive the money for his customer without being liable to refund ; but should the cheque get into wrong hands the man who cashed the cheque for a thief and received the money through the bank will have to refund that money to the true owner of the cheque. The reason is that the man who took it for value and presented it took a non-negotiable instrument as shown on the face of it. In fact the cheque is put upon the same footing as an overdue bill. To any person for whom it is not in- tended it bears dishonour on its face, and the man who takes it m payment or in exchange for money takes it at his peril. If the person who gave it him had a good title the taker of the cheque is safe ; otherwise he is not. For the same reason, if the not-negotiable cheque IS stopped, the bomX-fide holder for value who has taken it from one who had no title has no action against the drawer. 228 * A OOUNTIKG-HOUSB GUIDE. CHAPTEK X. LOANS. Obtaining Loans from Banks. Loans are made by bankers on various kinds of marketable securities, and as it is necessary to see that the loans granted by them are properly secured, various documents are used, worded to suit each particular case, when such securities are pledged for money lent. A Loan on Bonds to Bearer. If a loan is granted on bonds to bearer, it is usual for the borrower to sign an agreement, which may be in the following form : — The Bl^k Bank, Limited. 1st January^ 190L In consideration of your advancing to me One hundred pounds on loan until the 1st July next, I deposit with you £300, Chilian 6 Bonds, as collateral security for the due repayment of the said loan and interest at the rate of per cent, per annum, or at such rate of interest as may hereafter be agreed upon , the present market value of the said secunties is £_. This value, during the continuance of the loan, 1 engage to maintain, and if the market price of the said securities decline, I hereby agree to deposit other approved securities, or to pay off a proportionate amount of the said loan before its maturity, should you consider it necessary. Unless I am able to fulfil these conditions, I hereby authorise you to realise, at any time, the said securities, or any part thereof ; and, m the event of the loan not being repaid when due, I authorise you to deal with the secunties as you think desirable, so as to repay the said loan, or any part thereof with interest and expenses. A LOAN ON SHABBS. 229 These securities are to cover any other sum, or sums, of money which I may at any time, either alone or jointly with any other person or persons, be indebted or liable to yc secunties, or any part thereof, may remain with you. 6d. Stamp nature A Loan on Shares. When shares are deposited as security for a loan, the usual course is to transfer them into the name or names of the manager or other head official of the bank. This is done by means of a transfer deed, which is shown on the following page, blank forms for which can be purchased at almost all stationers. Such a transfer is, however, usually made in blank — that is, the names of the parties to whom the shares are to be transferred are not filled in — so that when the loan is redeemed, the transfer deed can be destroyed. But in case the money is not repaid, the banker is able to sell the shares and fill in the name of the transferee at the time of sale. Example of a Transfer Deed. 280 A COTJNTING-HOtrSB GUIDB Signed, sealed, and delivered, by the above-named in the presence of r Signature, 4 Address. A LOAK ON SHABEB. 281 9 Ji, A ® i |i^ 1 s^'a n .O ■*» ^ ■C3 c0 e8 & I nf ^ §11 » “la © , '2^'C 5 * fl ® I :ili« lIS'sS js ta^ s err 3i?ii. igegg t> ju - ® ® S5-“5.S £— *i-S a ^ I- © s e p,S.p 2&l| l2 OfOns *a 2 C ^ 9 -a a s Pii sSS-c s-s e •fife «ife 2 11 PM V O -w K ® 2 S « -s S o - :ak e S.F !,§&=' life j5a,_g >15 ® a 3 3® !>| “ s l*Ss »| m ^ ^ 3 ft ©^^ f § 2 •S 2*33 e i fe I S a c«8 E ^•1*1 11 8 , 880 U!^IM s.ssauinjvv s.Bseuiji^ 232' A ootrimKa-EOvaB oums. When shares are transferred at a nominal considera- tion, the deed must be impressed with a 10s. stamp, but when the consideration exceeds a nominal amount the stamp duty is as follows : — s. D. Exceeds £5 and does not exceed £10 - 1 0 10 it 15 - 1 6 15 it 20 - 2 0 20 it 25 - 2 6 25 it 50 - 5 0 50 ^i 75 - 7 6 75 it 100 - 10 0 and 2s. 6d. for fractions of £25 up to £800, and then for every £50 or fractional part thereof 5s. However, it may not be considered necessary to transfer the shares, and in such cases the transfer is stamped with a nominal consideration of 10s. per cent., and duly signed by the transferor. At any time the bank is then in a position to sell and transfer the shares into such name or names as it requires if the loan is not repaid at the stipulated time. A Loan Against Guarantee. Sometimes a loan is granted against the guarantee of some other person, called the guarantor, who is required to sign a form, which may be as follows : — In consideration of your advancing to John Jones the sum of Five hundred pounds for three months, 1 hereby agree to hold myself, my executors and admmistrators responsible for the due repa 3 rment of the same, or any unpaid portion thereof, together with interest at the rate of 4 per cent, per annum, and I undertake to pay you the amount which may become due to you under this guarantee upon your demand. This guarantee should be impressed with a 6d. stamp at the Inland Bevenue Office. A IiOAN OlSl GOODS. 23 » A Loan on Goods. Merchants sometimes require to have advances made on documents representing goods which are either on board a ship or landed &t some warehouse previous to sale in order to pay for other goods they have purchased. Of the first kind we have bills of lading, which may be drawn in four parts, viz.y one sent by the ship, the second sent by post to the consignee, the third to an agent or factor of the shipper in the same country as the vendee, and the fourth being retained by the shipper. Bills of lading, as will be seen from the copy on p. 98, represent goods shipped to another country, and the master of the ship is bound to deliver the goods to the first person who presents the documents, pro- vided they are properly endorsed. A bank will rarely take bills of lading as security unless they are endorsed in blank, and the bills should be accompanied by the policy of insurance insunng the goods to their destination. A Loan on Wareants and Delivering Orders. Wurrants and delivery orders are sometimes lodged with a bank as security for a loan, when the merchant signs an agreement as follows : — 334 A COUNTING-HOUSE GUIDE. In consideration of your advancing to me the sum of Five hundred pounds on loan until the day of next, I herewith •deposit Warrants for the undermentioned goods, which are insured under Pohcy No. in the Office for £ until , as collateral security for the due payment of the same with interest at the rate of per cent., and in case I am unable to pay the above-mentioned loan and interest when due, I hereby authorise jou to sell the said goods, of which the Warrants or Delivery Orders may be substituted, either by Public Auction or Private Contract, and in such lot or lots as you may think fit, and out of the net proceeds to pay the said loan and interest and any other moneys then due to you. I hereby engage to renew the aforesaid Policy of Insurance when necessaiy, and in the event of my not doing so, 1 liereby authorise you to insure the said goods and debit me with the premiums tliereon, and to repay yourselves out of the proceeds. The present market value of the goods is , and this value •during the continuance of the loan I engage to maintain, and in the event of the market price declining, I hereby agree to deposit other approved security, or to discharge such portion of the loan as you may require , otherwise you are at liberty to realise in the manner above stated. This security is to cover any sum or sums of money in which I may be indebted or liable to you, while any goods or warrants or remain in your possession, and either on joint or separate account. 6d. Stamp. nature Shimnarks and Numbers Merchandise i 1 Net Weight, j i f 1 \ l*n<*e Value 1 i 1 1 1 ! i f 1 £ ■ s. 1 I). ; 1 1 1 1 £ 1 S • D. 1 1 1 1 1 ! 1 1 1 ( t 1 1 1 I i 1 1 ) 1 LOANS ON INSUBANCE POLICIES. 236 Loans on Insurance Policies. When bankers make advances on insurance policies the party who deposits the policy signs the following agreement, which must be impressed with a 6d. stamp : — To THE Blank Bank, Ld. Referring to the Deed of Assignment of the Policy set out in the schedule below, this day executed by me in your favour, I hereby agree and undertake, in consideration of the moneys due from me to the bank, to keep the premium on the said Policy duly paid, and to produce the receipts for the same if and when called upon. The Schedule referred to £1,000, annual premium £30. THOMAS JOHNS. The assignment would be as follows, and it must be stamped with the ad valorem duty, which depends on the amount of the consideration money paid : — l of , m consideration of the sum of , do hereby assign unto A B the Policy of Assurance for Five hundred pounds on my Life with the Life Assurance Company dated and numbered . As witness my hand and seal this day of . Signed, sealed and delivered by the above named in the presence of It will now be necessarj" for the bank to give the assurance company notice that the policies have been assigned, when the following form would be used 286 A COtTNTING-HOUSB GtTIDB. To THE SeCBSTARY AND JDlBBGTORS OF THE Blank Asbubance Company. Oentlemen, Please take notioe that by an instrument bearing date ^ and lor the consideration therein mentioned, Thomas Johns of assigned to ns the Policy of Assurance for £500 effected on his life in the above Company, dated , and numbered An acknowledgment of the receipt of this notice, for which 1 enclose the Statutory Pee of 5/-, will oblige. For the BLANK BANK, LTD. - , Manager. On receipt of this notice of assignment the insurance company will acknowledge receipt in a letter as fol- lows : — The Blank Absubance Company. PoUcy No. Sib, I beg to own receipt of your favour of the — inst.,. intimating that by an instrument bearing date __ — — Mr. Thomas Johns assigned the above Policy to you. We have duly recorded the intimation in our books, but in acknow- ledging that we have done so no opinion or admission on the part of the Company is to be implied as to the validity or legal effect of the Deed. The Statutory Fee of 6/- is to hand. To the BLANK BANK, LTD. We have described the principal documents used by commercial men when securities are lodged with banks for the due repayment of money lent, and the most important point to be remembered in connection with obtaining loans and advances from banks is that BILLS OF EXCHANGE. ^ 237 the security offered should be a marketable one and capable of being transferred to the bank without much •difficulty or expense. With regard to loans on mortgages, leaseholds, ground rents, works, machinery, mines, the uncalled capital of a registered company, or upon its debentures, the documents required would be somewhat voluminous and would generally require special forms prepared by solicitors. CHAPTER XI. Bills of Exchange. A bill of exchange is an unconditional written order signed by A and addressed to B directing him to pay on demand or at a fixed or determinable future time a named sum of money to, or to the order of a specified person or to bearer Bills of exchange are of two classes — Inland Bills, or those drawn and made jiayable in the same country, and Foreign Bills, or those drawn in one country but made payable in another. The person who draws a bill is called the Drawer, the person on whom it is drawn is called the Drawee, and when the bill is accepted by him he is known as the Acceptor, while the party to whom a bill is payable is the Payee. As bills of exchange form a method of payment, they pass from one person to another, or, as it is termed, they are negotiated, and when this is done the Payee before delivery to another signs his name on the back of a bill, and then he becomes the Endorser. If the 238 A COUNTING-HOUSE GUIDE. Endorser makes a bill payable to another person, this latter becomes the Endorsee. Every endorsement on a bill constitutes the endorser as a new drawer, and the endorsement admits the signa- ture and capacity of every prior party to the bill, so that every endorsement on a bill is an additional security to the Holder — that is any party who holds a bill payable to him. The simplest form of a bill of exchange is one made out to Bearer payable On Demand, At Sight, or On Pre- sentation. Example of a Bill of Exchange Payable to Bearer on Demand. £50 Os. Od Liverpool, Janiiaty, 1901. Pay to the bearer on demand Fifty Pounds. To Mr James Reed, 840 Leadenhall St., London. FRANK JONES. Here Frank Jones is the Drawer, James Keed the Drawee, and whoever holds the bill is both Holder and Payee. The bill does not require acceptance — it is pay- able on presentation at any time, six days of grace being allowed on bills payable At Sight, On demand, or On Presentation. Another form is one payable to Bearer at a fixed time. Example of a Bill of Exchange Payable to Bearer at a Fixed Time. £50 Os. Od. Livebpool, 1.s/ Januauj, 1901. Three months after date pay the bearer Fifty Pounds. FRANK JONES. To Mr. James Reed, Leadenhall St.. London. BILLS OF EXCHANGE. 239^ Here the bill is payable at a fixed time, and it does, not require acceptance by the drawee, but is payable on demand on the 4th April, the last day of grace. A further form would be one payable to Bearer at a determinable time, dependent upon the date that the Drawee sees and accepts the bill. Example of a Bill of Exchange Payable to Bearer at a Determinable Time, Liverpool, 1st January, 1901 £50 Os Od. Three months after sight pay the bearer Fifty Pounds PRANK JONES To Mr. James Reed, Leadenhall St , London. Bills drawn in favour of the bearer, whether on demand or not, pass by delivery from hand to hand without endorsement, but they may of course be en- dorsed by each holder, and then passed on any number of times. Here the date of payment will date from the time of the bill being accepted by the drawee, and all bills drawn payable after sight should be presented to the drawee for his acceptance at the earliest possible moment, and in the above case the three months run from the date of the Drawee’s acceptance. Another form would be a bill made payable to the Drawer on a fixed date. Example of a Bill of Exchange Payable to the Diawer. £100 Os. Od Liverpool, 1st Janunty, 1901 Three months after date pay to me One Hundred Pounds. To Mr. James Reed, Leadenhall St., London. FRANK JONES. 240 A OOUNTlNGhHOUSB aUJDBi Here the date of payment is fixed for the Ist April, hut with the days of grace the bill is not actually payable until the 4th April. A further example of a bill is one made payable to the Drawer on his order. Example of a Bill of Exchange Payable to Drawer or his Order. Liverpool, Ist Jamtary^ 1901. £100 Os. Od. Six months after date pay to me or my order One Hundred Pounds, value received. FEANK JONES. To Mr. James Reed, 840 Leadenhall St., London. Without endorsement this bill is payable to Frank Jones only, but of course he can endorse it payable to any one he pleases. If Jones, instead of making himself the payee, desired the amount to be paid to Samuel Johnson, the bill might be drawn as follows : — Example of a Bill of Exchange Payable to a Third Party. Liverpool, Is^ January^ 1901. £100 Os. Od. Six months after date pay to Samuel Johnson One Hundred Pounds, value received FRANK JONES. To Mr. James Reed, Leadenhall St., London. This bill, although made payable to Johnson, will pass current on receiving his endorsement in blank, or he may endorse it payable to another party by naming him in the endorsement. BILLS OF EXCHANGE. 241 For the purpose of negotiation, bills are mostly drawn payable to a third party or to his order as follows : — Example of a Bill of Exchange Payable to a Third Party or to his Order, Livekpool, 1st Jamuiry^ 1901. £100 Os. Od. Six months after date pay to Samuel Johnson or order One Hun- dred Pounds, value received. FRANK JONES. To Mr. Jambs Reed, Leadenhall St., London. Here the bill is payable to' Johnson, or to his order by endorsement — that is, he may order the bill to be paid to another party by endorsing the name of the party to whom he wishes the payment to be made, and the Endorsee thus named may in turn endorse the bill over to another person, thus passing on the bill from hand to hand in payment of a debt until the bill is due, when the last holder will present it to James Reed for payment. To avoid the risk of loss in transmission, bills are usually drawn in sets of three, all of the same wording, except that they are specified as First, Second, or Third ; and when one of these is paid, the others are of no use or effect whatever. It is a common practice among merchants to send one of these three Vias,” as they are sometimes called, usually the First unendorsed to their correspondents in the city on which the bill is drawn, to get it accepted, keeping the others for negotia- tion, and when the bills are sold a merchant will put an indication on them to the effect that the accepted via is 16 242 A COON'CING-HOUSB GUIDE. the hands of his correspondents, naming them by writing across the face of the bill : — ** First accepted with Messrs. Hall & Sons ** (the name of hia correspondent). His correspondent, having got the bill accepted, will keep it, and deliver it up to the party presenting one of the endorsed vias. By this means the risk of sending accepted bills backwards and forwards by post is avoided. It very often happens that only one bill is drawn, called a Sola bill, or, when a set is drawn and the others are not to hand, the single via is sent forward for accept- ance in the usual way, and a copy of it made and negoti- ated. In such cases the party to whom the bill is sent to get accepted will hand it over to the presenter of the endorsed copy. A clerk, in copying a bill, should do so very exactly, and should write the word copy legibly on the face of his copy. If there are any endorsements, he must copy them on the back of his copy, and having done so, he should write thereon directly after* the last endorsement, “Thus for copy,” so that all the writing above these words shall be taken as a true copy of the onginal. Even if there are any mistakes in the true spelling of a word he should copy the original exactly. FOREION BILLS OP EXCHANGE. 24a CHAPTEE XII. Foreign Bills op Exchange. Foreign bills of exchange are those drawn in one country, but made payable in another. Example of a Foreujn Bill of Exchange drawn Abroad. First. Seville, 1st January ^ 1901. £500 At sixty days after date of this First of Exchange (Second and Third of the same tenor and date not being paid), Pay to the order of Messrs. Gil Perez & Co, the sum of Five hundred pounds sterling, and charge the same to account as advised by OLANDO & CO. To Messrs. Smith & Dawson, London. Here Messrs Olando & Co are the Drawers, Messrs. Smith & Dawson the Drawees, and Messrs. Gil Perez & Co. the Payees. Now the Payees can transfer their right to the money to another party by endorsement, and if Gil Perez & Co. wished to transfer the money to A. Jones & Co they would endorse the bill * — O c O l.'N A OH Here Gil Perez & Co. become the Endorsers, the 244 A COUNTINa-HOUSB OTIDB. writing itself is called the Endorsement, and A. Jones & Co. are the Endorsees. If A. Jones & Co. kept the bill they would become the Holders, and when the bill became due, the Payees ; but before they could get payment for the bill it would require their endorsement under Gil Perez & Co. as follows : — o u o o Q CO o a o .d o a o o m 5 fit o o But A. Jones & Co. might endorse it to James Brown as follows, when A. Jones & Co. would become the Endorsers, and James Brown the Endorsee : — O tN a, *3 o o W S'-^P4 Q. ^ O O dO CQ C/3 c« B Bo o8 • Ol < U a> nd (-1 o o Xi -ts and so on ad infinitemy the last Endorsee being the Payee, and therefore the person entitled to receive the money as soon as the bill became due. A SET OP BILLS OF EXCHANGE. 245 An Allonge. Should a bill not be large enough to carry all the endorsements which may be wanted to be made, a piece of paper, called an Allonge, can be pasted on to it, and the further endorsements written thereon. Any important alteration will invalidate a bill, so that if a mistake is made in the amount, date, or time of pay- ment, it must not be amended, but the bill must be drawn afresh. Foreign bills are drawn payable on Demand, at Sight, and so many days or months After Sight or After Date. Immediate advice of bills drawn should be sent by the drawer to the drawee, so that the latter may be pre- pared to meet them. A Set of Bills of Exchange. The three copies of a bill forming a set would appear as follows : — Example of a Set of Foieign Bills of Exchange, 1 . First. Seville, 1st January^ 1901 £600. At sixty days after date of this First of Exchange (Second and Third of the same tenor and date not being paid), Pay to the order of Messrs. Gil Perez & Co., the sum of Six hundred pounds sterling, and charge the same to account as advised by OLANDO & CO. To Messrs. Smith & Dawson, London. 246 A COTJKTING-HOtrSB GUIDE. 2 . Second. Sbvillb, January ^ 1901. £600. At sixty days after date of this Second of Exchange (First and Third of the same tenor and date not being paid), Pay to the order of Messrs. Gil Perez & Go., the sum of Six hundred pounds sterling, and charge the same to account as advised by OLANDO & CO. f To Messrs. Smith k Dawson, London. 3. Third. Seville, Is^ January ^ 1901. £600. At sixty days after date of this Third of Exchange (First and Second of the same tenor and date not being paid), Pay to the order of Messrs. Gil Perez & Go., the sum of Six hundred pounds sterling, and charge the same to account as advised by OLANDO & CO. To Messrs. Smith & Dawson, London. The Second and Third documents differ from copies, as we have already shown, and as we know of no better term to express them by, we have called them by the name used by many merchants in the foreign trade, m., ‘‘Via’’. Bill Books. Merchants usually keep a book in which they enter the particulars of the bills sent them to get accepted and the names of the houses to whom they are to hand them over. This is called the Bills for Acceptance Book. Bills received as remittances are entered in another book called Bills Receivable ; bills drawn on them they enter in a book called Bills Payable. PBE8BNTATI0N FOB ACCEPTANCE, 247 I V Presentation for Acceptance. The first thing a merchant does on receiving a bill of exchange is to present it to the Drawee for Acceptance. This should be done as soon as possible, whether the bill is received direct or by endorsement, although it is not absolutely necessary with bills drawn at so many days* date, but if the bill is drawn at so many days* sight the holder is bound to get it accepted at once, as should he omit to do so within a reasonable time he would lose his remedy against the drawer and endorser should the drawee refuse or fail to pay it when due. Besides this, by delaying to procure the acceptance of a bill payable after sight he would lose interest, as the time for its payment only begins to count from the date of its acceptance by the drawee. The presentation of a bill for acceptance must be made during the recognised business hours ; that is, before four o’clock p.m., and it is usual in London to leave a bill one day and to call for it the next. The drawee accepts the bill by writing his name across it, and usually states with what banker it will be payable. In accepting a bill payable after sight, he must add the date on which he accepts, which must be that on which the bill was left, provided of course it was put in the “Bills for Acceptance” box before four o’clock, and the clerk calling for the bill should see that this requirement is complied with. Tf the bill is drawn payable after date, it is not necessary to insert the date of the acceptance, as the date of its payment is fixed. Merchants who accept bills of exchange usually make them payable at their bankers, and they are conse- 248 A OOUNTINa-HOUSB GUIDE. quently paid in at maturity by the holder to his bank for collection there, in the same manner as cheques. The duty of getting bills accepted usually devolves on the junior clerk in an ofi&ce, and we will now say a few words as to the process of obtaining an acceptance. When the bills are handed to him to take out he enters in a memorandum book certain particulars of the bill, such of the amount, name of drawee, and his employer’s mark or number. Having done this, he leaves the bill at the drawee’s counting-house, by putting it into a box which he will generally see there, marked bills for acceptance. Next day he presents himself at the drawee’s counter, and calls out, ‘‘ Bill left”. The clerk will then ask him what amount, the mark or number, etc., and on being answered correctly, hands over the bill. When a clerk is instructed to obtain the accepted via of a bill which is waiting for the presentation of the endorsed vin or copy, he takes the endorsed via or copy to the counting-house of the firm mentioned as holders of the accepted bill, and hands it over the counter, saying “ First The clerk presently returns it with the accepted bill, inquiring at the same time whose hands it is in. When applying for an accepted via a clerk should be careful to take both parts away with him, and see that they correspond. Accepting a Bill. An acceptance must be by writing on the bill signed by the acceptor, or some person duly authonsed by him in his name, and an acceptance must not express an intention to pay in any way but in money. Acceptances are divided into general and qualified. A QUALIFIED ACCEPTANCE. 249 A General Acceptance, A general acceptance on a bill of exchange assents without qualification to the order of the drawer, and may be expressed in either of the following ways : — Example of a General Acceptance. A Qualified Acceptance. A qualified acceptance is one which, in express terms, varies the effect of the bill. An acceptance is qualified when it is conditional, as in the first and second example ; an acceptance is qualified when it is partial and not for the full or the first amount drawn, as in the third and fourth examples ; and acceptance is qualified when it is local, as in the fifth and sixth examples ; or it may be qualified as to time, as when the bill is drawn at three months and is accepted payable in six months. 250 A COUNTIKO-HOUStf GUIDB. Example of a Qualified Acceptwnoe, p .§0 a< eS Oi •SJZi |pE) fl ng Q i *1 s Sw o dM ih cu o o O < 55 W SW li AS o < 5^ S ^ >> ^4 O c8 O tTl ai Example of an Endorsement by an Agent without Liability, ao 0) S O r s o u 4^ 0 */: w e3 cr 0/ s o c: 88 O s O 4.9 < iz; W o A Case of Need. Let us take the case of the following bill which we will suppose we have taken in the course of trade. On many foreign bills, as in this case, will be seen a memo- randum as shown at the foot of the bill, “in need with Messrs. A. B. & Co.’' This is called a Case of Need, and means that if the drawee should fail to accept, or having accepted, should fail to pa}" the bill, A. B. & Co. will do so for the “honour” of the drawer or the endorser of the bill w"ho inserted this clause, as explained in case of need. The bill is drawn in Seville as shown on the other side : — 1256 A OOUNTINGhHOUSB GUIDE. First. Sbvillb, Jafiuary^ 1901. £600. At sixty days after date of this First of Exchange (Second and Third of same tenor and date not being paid), Pay to the order of Messrs. Gil Perez «fe Ck)., the sum of Six hundred pounds sterling, and charge the same to account as advised by OLANDO & CO. To Messrs. Smith & Dawson, London. In need, with Messrs. Knight & Go., for honour of C. D. In case of need, with Messrs. Williams, Marshall, &. Co., for honour of 0. 03 o 09 o >.1 03 09 o o 'VS a o o d cB Q S a A o CO 43 ^ eS ,2^ CO "I S I ® 03 S y-t M - q3 - < < O O < PQ U «>8 o •4:3 CO cd a o XI H jO . S O PLi o Si tH CN CQ *< o o O O < w The words in Spanish mean ** pay to the order of,*' and the explanation of the bill with these endorse- ments is that Olando & Co., the drawers, m Seville, having credit or value with Smith & Dawson, in London, and desiring to pay Gil Perez & Co., in Seville, £600, they draw a bill for the amount on Smith & Dawson, and give it to Gil Perez & Co. in satisfaction of the debt. Gil Perez & Co. in their turn sell the bill to Mr. Carlos Dantas in Barcelona for its equivalent value in Spanish money, or they transfer it to him in payment A CASE OP NEED. 257 of a debt, and they therefore endorse the bill to him as shown in the first endorsement, so that he now becomes the party entitled to receive the money for it. Carlos Dantas, in the same way, passes on the bill to E. Latonr & Co., in Paris, and transfers the bill by endorsing it as shown in the second endorsement. E. Latour & Co., in Paris, doubtless in exchange for value received, now transfer the bill to Thomas White & Co., in London, as shown in the third endorsement. Thomas White & Co. wrill now get the bill accepted and hold it till it matures. They are termed the Holders, and they and no others are the persons now entitled to receive the money, but the bill will require their signature, and, when paid, the endorsements will appear as follows : — o iC CD 02 & 02 f O CO s 02 CO o I—* 02 d 02 'S o 6 eB flj to s 5P eS *8 iJ 02 < $ p ^ 02 q < o d « Q d pq P 5 < Q 02 43 CO o8 S O E-i CO . S O P 4 * ^ O o o o rH* ^ 8 p? P I % CN CO H 4 d O* O o E-I I— ( w 1/2 o HI EH Prom the foregoing illustrations it will be apparent that it is possible for a bill of exchange to travel about a great deal in various parts of the world before it reaches the hand of a final payee, or even before it is presented to the drawee for his acceptance. But we will suppose that our bill was drawn at sixty days’ sight, instead of sixty days’ date. In such a case Gil Perez & Co. would have sent the first via to their 17 258 A COUNTING-HOUSE GUIDE. London correspondent to get accepted, and would have endorsed the semid to Mr. Carlos Dantas by writing on the face of it first accepted with ” the name of their correspondent, as explained on page 242. The amount of a foreign bill is usually expressed in the money of the country in which it is to be paid, but sometimes it is drawn in the money of the country of the drawer of the bill ; thus, in this kingdom, mercantile bills for shipments, or for settlements of accounts, and especially those remitted from the country for negotia- tion or sale in London, are frequently drawn in sterling money, and then the amount which is to be paid abroad is fixed by the rate of exchange at which it is first negotiated l)eing stated on the bill, usually in the en- dorsement. The times for which bills are drawn vary, in sonic measure, according to the usages of different places ; but more generally they are according to the purposes for which they are drawn. Bills at sight, or to be peremptorily paid on their being presented, are for re- imbursement on account, commonly, of returned or dis- honoured bills. Those at short sight, as three days’ sight, are usually for returns for operations in bills, bullion and foreign stock. Bills at one month have no Xiarticular character; those at two months are commonly mercantile bills; and those at three months, for banking operations, which latter bills are drawn at this long period, in order to afford full time for waiting to take advantage of any rise m the rates of exchange, or for their being sent about from place to place, wherever there is a probable opportunity of making a profit. PRESENTATION FOR ACCEPTANCE. 259 Usance. Bills at usance are at the customary time of drawing upon or from the given place, but very few bills are now so drawn. In this country, usance from France, Holland and Germany means thirty days’ date ; from Spam and Portugal sixty days’ date; and from Italy three months’ date. The Maturity of a Bill of Exchange. The maturity of a bill is at the expiration of the term for which it is drawn, plus three days called Days of Grace, except for bills payable At Sight, On Demand, or On Presentation, which are, of course, payable as soon as they are presented. When the maturity of a ))ill falls on a Sunday or legal holiday, the bill must be presented for payment the day preceding ; but when the maturity falls on one of the Bank Holidays, the bill is payable on the following day. Presentation for Acceptance. When a bill matures it must be presented to the acceptor, or (where he has named one) to his banker for payment, and the presentation for payment must be made during the usual business hours. It is the custom of merchants to pay the accepted bills which they have received into their bankers, who attend to their collection on the due dates. The consequence of not presenting a bill for payment at maturity is that, although the acceptor still continues liable upon it, all the other parties to the bill — the 260 A COUNTING-HOUSE GUIDE. drawer and endorsers — become discharged from liability should the acceptor fail to pay. The acceptor of a bill has the whole of the day of maturity to pay in. When a bill is not made payable at a bank, it is not necessary that the presentation for payment be made to the acceptor personally ; it is sufficient to present the bill to his clerk or to any one else who may be found at his place of business during business hours^ and should the bill not be met the holder can Protest it. If the acceptor of a bill should have become bankrupt, the bill must still be presented to him for payment at maturity. Protesting a Bill for Non-Acceptance or Non-Payment. A bill is ‘‘ Dishonoured by non-payment when it is duly presented for payment and payment is refused, or cannot be obtained, or when presentment is excused and the bill is overdue and unpaid, and this brings us to the formality of protesting a bill. When a foreign bill is refused acceptance or payment by the drawee, it is necessary to have it protested ; this is done by a Notary, who again presents the bill to the drawee for acceptance or payment, as the case may be, and in the event of his meeting with a refusal, he draws up a formal document called a Protest. This begins with a verbatim copy of the bill, and goes on to state at whose request it was presented for acceptance or payment, states what was the answer given, and winds up with a protest signed by the notary against the drawer and endorsers for re-exchange and charges PROTESTING A BILL FOB NON-ACCEPTANCE. 261 incurred, through the drawee’s refusal to accept or pay, according as the case may be. The signature to the protest should generally be attested by the Consul of the country in which the bill was drawn, for the object of the Protest is to furnish the parties to the bill residing abroad with incontestable proof of its dishonour, thus enabling them to make arrangements for their security with those from whom they took the bill. It very often happens that the drawee of a bill pre- sented for acceptance will answer that he believes it to be in order, but having received no advice of it he cannot accept at present, and asks that it may be again presented a little later on ; or his clerk may answer that the bill is all right, but that the drawee is out of town or is absent from ill-health ; in such cases the holder will be guided according to circumstances, and often content himself with having the bill simply noted by the notary to avoid the expense of a protest, but it is his duty to immediately advise the parties Irom whom he received it of what has taken place The small charge for noting should be paid by the drawee ; and should the drawee subsequently agree to pay a bill he has previously refused to accept, he must pay it plus the notarial charges incurred by his refusal to accept the first when it was presented to him ; should he decline to pay the notarial charges, the holder of the bill can refuse to give it up, and can protest for non-payment of the notarial charges. Should a drawee accept for, or pay only a part of, the amount of a bill, the holder will protest for non-acceptance or non-payment of the balance. The merchant holding a bill, acceptance of which 262 A COUNTING-HOUSE GUIDE. has been refused by the drawee, will send the protest to the party from whom he received the bill, retaining the bill itself for presentation for payment at maturity ; should the bill not then be paid, he will have another protest made out for non-payment, and send it out with the bill and Ke-exchange account for the amount of which he will draw on him ; the bill thus drawn IS called the Re-draft Any holder can cause a bill to be protested for non- acceptance, but in order to have it protested for non- payment he must stand m the position of payee — that is, he must be the person entitled to receive the money. It has before been said that the holder of a bill which has been sent to him merely to get accepted, will protest it should the drawee refuse to accept, and the holder of the endorsed bill bearing the indication that the accepted via is in the hands of such a person will have his bill protested for non-dehvery of such accepted via. Protesting for Better Security. When a merchant holds a bill accepted by a party who fails before its maturity, he should cause his notary to present it to the acceptor as soon as he becomes aware of his failure, and demand better se- curity for the payment than his acceptance thereon ; the answer most likely will be, “ No better security to offer ” ; the notary will then protest the bill, “ For better security,” and his protest will be sent out as in the case of a protest for non-acceptance to enable the sender to claim better security from the drawer. ACCEPTANCE FOR HONOUR. 263 Case of Need. We now come to consider the words written m italics at the foot of the bill on p. 251. On many foreign bills will be seen a memorandum to the following effect : 111 case of need, with A. B. for honour of C. D.’* (either the drawer or one of the endorsers). This is called a “ Case of Need When there are many en- dorsements a bill will sometimes contain two or three of these memoranda. This addition of a “Case of Need ” on a bill signifies that should the Draft not be honoured either in acceptance or payment, or both, the party thus named is to be applied to for his interference for the honour of his correspondent, and for preventing his incurring those expenses which attend the return of the bill through the intervening Endorsers. Acceptance for Honour. When the drawee of a bill refuses to accept it, or having accepted it becomes a bankrupt, any one who chooses can accept the bill for the honour of the drawer or either of the endorsers, whether the bill bear an indication to him in case of need or not ; or the drawee himself, although he may refuse to accept it as drawn, may accept a bill for honour of the drawer or either of the endorsers. The holder of a bill thus accepted for honour having sent out a protest for non-acceptance by the drawee, will, at maturity, present the bill to him for payment, and in the event of his not paying, will take out another protest for non-payment, and present the bill for payment with the protest for non- payment to the acceptor for honour. 264 A COTJNTING-HOTTSE GUIDE. Payment fob Honouh. When a bill has been protested for non-payment, anybody may pay it for honour of either of the parties thereto, and will send his re-exchange account and draw his re-draft on the party for whose honour he interferes. In all cases the Holder of a bill has the first right of interfering for honour of any of the other parties to the bill, but as a matter of commercial etiquette and good feeling he will first present the bill to the firm indicated by the drawer as an intervener in case of need ; that is, if the bill bears any such indication. In our example on page 251, Olando & Co., the Drawers, to provide against the possibility of Smith & Dawson, the drawees, refusing to accept the bill, or after having accepted, failing to pay it (in either of which cases they fear their credit would suffer with Gil Perez & Co., or with those to whom these parties might sell the bill), indicate that Williams, Marshall, & Co., their friends in London, will accept or pay the bill in case of refusal or failure to do so on the part of the drawees. In like manner, and to provide against a like eventuality, Mr. Carlos Dantas indicates that his friends in London, Messrs. Knight & Co., will interfere for his honour if occasion should arise. In doing this both Olando & Co. and Carlos Dantas have another motive in view besides preserving their credit, and that is saving expense. As already stated on page 262, the holder of a bill, the payment of which has been refused at maturity, will generally draw a Ke-draft on the party from whom he received the bill. Now we will suppose that our bill was not paid by thew PAYMENT FOB HONOUR. 265 acceptors at maturity, and that it bore no such words as those written in italics ; Tjjiomas White & Co., the Holders, would then protest the bill, make out a Ee- exchange Account, and draw their Ee-draft on E. Latour & Co. of Paris. These in their turn would make out their Ee-exchange Account and draw their Ee-draft on Mr. Carlos Dtotas of Barcelona ; he in turn upon Messrs. Gil Perez & Co. of Seville, and they would claim the amount of Carlos Dantas’ Ee-draft, which^ by this time, would considerably exceed the equivalent of £600 from Olando & Co., who will, m any case, have to pay the money at last ; but, by Williams, Marshall & Co. pajdng the bill for them, they avoid all the intervening Ee-exchange charges, and have to pay only those incurred in London. But, the reader might say, if Williams, Marshall & Co. are going to pay the bill if the drawees do not, why should Carlos Dantas take the trouble to refer it to Knight & Co. in case of need ^ We reply that he haa no assurance that Williams, Marshall & Co. will do any such thing, and as he is liable for the money ta E. Latour & Co. and all subsequent endorsees, who may be a dozen or more for all he knows, and as he may not after all succeed in getting the money from either Gil Perez & Co. or Olando & Co., who are re- sponsible to him, he has, also to save excessive re- exchange charges, referred the bill to his London fnends m case of need. Cases have been known where the re-exchange charges on a bill have amounted to 30 per cent. The mere fact of the bill being referred to Williams,. Marshall & Co., or Knight & Co., in case of need, entails no obligation on them to interfere, but if they 266 A COUNTINO-HOUSB GUIDE. ^0 accept it, they are as much bound to pay the bill as if it had been drawn on Ijhem. Should they refuse to interfere, the notary would state the fact in his protest. Notice of dishonour should in all cases be forwarded to the party sending the bill directly it is refused Sicceptance or payment. Merchants consider this sufficient when they have confidence in the solvability of the party from whom they received the bill ; but if they have any doubt Sibout the matter and wish to retain their right to claim on all the other endorsers and the drawer, they should send notice of dishonour to all of them. Each endorser will also, in turn, give similar notice to the parties liable to him. Want of notice of dishonour would exempt them from liability. The notice of dishonour need not be in any particular wording, but care should be taken that it is clear and precise. The following is a very good form of notice : — Example of a Notice of Dishomur, “ We beg to give you notice that the undernoted bill has been “ duly presented to for payment, and “ has been dishonoured, and that we shall look to you for ** payment “ Yours, Ac., “A. B. & CO. “ Date “ Amount “ Drawer “ Endorser.” re-exchangeJ account. 267 Ee-Exchange Account. The Ke-exchange Account is a document setting forth the expense of protest incurred through the bill not having been honoured, and it should be accompanied by a broker’s certificate of the current exchange, as the drawer is bound to refund the money at the exchange of the maturity of the dishonoured bill. The following example will serve as a guide to show how a Ke-exchange Account should be made up We will suppose that the acceptors have failed to pay the bill shown on p. 251, and that Thomas White & Co., the holders, alter havmg had it protested, have presented it through the notary to Messrs. Williams, Marshall & Co., who have paid it for honour of the drawers. Example of a Re-Exchange Account Re-exchange account of a bill of £600 drawn by Olando & Co., dated Seville, 1st January, 1901, at sixty days’ date, on Smith & Dawson, of London, protested for non-payment, but paid by us for honour of the drawers. Amount of bill . - . . Cost of protest for non-pa>nient and act of honour Brokerage on re-draft Stamp on ditto . . . , Postages Commission J per cent. - E. & O. E. £ i ! S . i £ s D. 1 i 1 i 600 0 0 1 ' 9 ^ i 0 12 0 ! 0 ‘ 6 0 j 0 2 6 ! i 3 ' 0 0 ! 5 10 0 .. t 1 £605 10 0 London, 1th Mmch^ 1901. WILLIAMS, MARSHALL, & CO. 268 A OOtTNTISQi-HOUSE OTTIDB. ' Here Williams, Marshall & Co., would draw a bill on Olando .& Co. for the amount of the Ee-exchange Account, which they send.to them with the protest, the dishonoured bill, and the Broker’s Certificate of Ex- change. But we will again suppose that there was no indica-^ tion in case of need on the bill, and that nobody paid it for honour of the drawer or either of the endorsers in such case as before said, Thomas White & Co. would draw their Re-draft on E. Latour & Go., of Paris, to* whom they would send their Ee-exchange Account, of the same tenor as regards charges, but with a different, beading — something of this sort : — Another Example, Ke-exchange account of a bill of £600 drawn by Olando & Co.,, dated Seville, Ist January, 1901, at sixty days’ date on Smith & Dawson, of London, and sent us by Messrs. E. Latour & Co., of Pans, to whom we now return it protested for non-payment. It is not usual to allow more than one re-exchange commission on the same bill. A Notary. A notary is a public officer whose business it is to* certify to the execution of deeds, to serve notices, and to perform acts of which formal or judicial evidence ia required. His acts are respected both in this country and abroad, but when his acts are to be used abroad his signature should be attested by the Consul of the coun- try in which they are to be used. In the same way notarial acts made abroad and in- tended for use in this country should bear the attesta- tion of the British Consul there. STAMP DUTIES 01^ BILLS OF EXCHANGE. 269 A Consul. A Consul is an officer appointed by a Government to look after the interests of its traders, seamen, or tra- vellers abroad. All the chief trading countnes have Consuls at our principal ports, and we in the same way maintain Consuls at theirs. Stamp Duties on Bills of Exchange. All bills of exchange must bear the stamp fixed by Act of Parliament. If a bill is not sufficiently stamped, the maker or negotiator is liable to a penalty. The following is a table of the stamp duties fixed by Act of Parliament : — Bills payable on demand • - - - «» - Id. Bills otherwise than on demand under £5 - • - Id. Over £5 and under 10 - - - 2d. „ 10 »» 26 - - - 3d. 25 »» 50 - - - 6d. „ 50 »» 75 - - - 9d. 75 100 - - - Is. And Is. for every additional itlOO or fraction of £100. The penalty is that every person who issues, endorses, transfers, negotiates, presents for payment, or pays any bill of exchange or promissory note liable to duty, and not being duly stamped, shall forfeit the sum of £10, and the person who receives in pa3maent or as security such bill or note not being duly stamped, shall not be entitled to recover thereon, or to make the same avail- able for any purpose whatever. From the above wording of the Stamp Act it will be seen that an imperfectly stamped bill is absolutely void 270 A COTJNTING-HOtTSB GUIDE. I in law, but the fact of its bearing a larger stamp than required would not invalidate it, noi* would any penalty attach thereto. When bills are drawn in sets of three, one of these — usually the first — only is to bear the whole of the stamp. With bills drawn in the United Kingdom otherwise than on demand, the stamp must be impressed. Discounting a Bill. It often happens that the holder or payee of a bill of exchange requires the money before it becomes due, and* he therefore takes the bill to his bankers or to one of the discounting houses, to whom he endorses it, and they pay him at once the amount of the bill, less a certain charge per cent, per annum called “ Discount The discount is charged on the number of days a bill has to run, and is calculated in exactly the same way as interest, but it is of course deducted from the prin^ cipal. The merchant who gets a bill discounted continues, as an endorser, liable until it is paid. Very often the acceptor, having more money than he requires for immediate use, will affix a ticket to the bill, when he gives it up after acceptance, bearing an indication to the effect that he will pay it under discount at such a rate, when the holder of the bill will of course accept this offer or not as he pleases. The charge for discounting bills of exchange varies according to the financial standing of the drawers or endorsers and the state of the money market. It is also much influenced by the bank rate of discount, fixed by DISCOUNTING A BILL. 271 the directors of the Bank of England, who raise or lower the rate for discounting the bills of its customers as the abundance or scarcity of the floating supply of money renders it desirable ; for money, like everything else dealt in, rises and falls m value according to the inflexible rules of supply and demand. When the bank rate of discount is low, we say money is Cheap ” ; when it it high we say money is ‘‘ Dear As a rule bankers, bill discounters, and the various discounting houses will work for rather less than the official bank rate of the Bank of England. Bill discounting, as a business, is a special trade of itself, requiring extensive knowledge of a superior kind, and the subject will be found explained under the head-^ ing of Money Market. A TABLE OP THE NUMBER OP DAYS FROM ANY DAY IN ONE MONTH TO THE SAME IN ANY OTHER. 272 A COUNTING-HOUSE GUIDE COQt^'^rHOOlloGflOi^OW o5 o COiO'^’^OOCOfNtHrHMDiO 00 MO (M O) CO 00 CD CO t** (M CO 00 CO CO CO 00 00 OO CM CM rH 00 CM CM 09 tH O 09 O M? ■Ti< CM CD CO CO CO OO »H CO CO CO CM CM iH »H '•tC rH CD MO CM CM 09 tH rH s C9r-«»O»O^-^^C0CM09r-CD 00 00 a5cMOlCMrHT-COCO C000C0 s H O I t I I t I I I a p I I E?S - o8 p rr d!) rO M" M § 2'2-s . s|-| i I S S' § SP 0^-2 > o »-a To calculate the days required, look along the length of this Table Example : say from May 10th to October 15, 153 days in the Table, add five, the difference in the dates from the 10th to the 15th = 158 the Qurnber required. In case of Leap Year one more day to be added. PBOMISSORY NOTBS. 273 Tblbgbaphic Tbansfbbs. There is a tendency more and more apparent each year for mercantile transactions to be settled on a cash basis, and instead of settlements being made by bills of exchange, a great number of trade payments are made by cable transfers, which are variously called telegraphic transfers, telegraphic remittances, or T.T’s. which avoids the uncertainties of a fluctuating discount rate, saves the cost of bill stamps, and reduces the nsk of loss to a minimum. The cable exchange ruling between America, Bombay, Calcutta, Hong-Kong, Shanghai, Yokohama, is quoted in the newspapers each day, but telegraphic remittances can be made at most of the London banks having a branch at the place where it is desired to remit, and also at Reuter’s Telegraph Company, Limited, and on paying into the bank the equivalent amount to that which is to be paid to a nominee or the other side, the bank here will telegraph out to their house the amount to be paid, together with the nominee’s name, who will then receive the payment. Promissory Notes. A promissory note is an unconditional promise in writing made by one person to another, signed by the maker, engaging to pay on demand, or at a fixed or determinable future, a certain sum of money to, or to the order of, a specified person, or to the Bearer. The person giving the promise is said to be the Maker of the note, and the words Payee, Transferror, Transferree, En- dorser, Endorsee and Holder are applicable with reference to Promissory Notes the same as to Bills of Exchange. 274 A COUNTING-HOUSE GUIDE. A promissory note must be made on stamped paper before the note is drawn. The stamp duties on a promissory note are : — Where the amount or value of the money for which the bill is drawn or made does not exceed - - - £5 Id. Exceeds £5 and does not exceed - - - - 10 2d. „ 10 „ 25 3d. 25 „ „ . . . . 60 6d „ 50 „ „ . . . - 75 9d „ 75 ,, 100 Is For every £100 and also for every fractional part of 100 Is A promissory note drawn in favour of a person named without the words '' or order," as, for instance, Six months after date 1 promise to pa} to Alfred Green Fift}- Pounds. is transferable by his endorsement, and when endorsed in blank by him, it becomes payable to bearei Example of a Promissory Note, £50 Os. Od London, li^ Januaiyy 1901 On demand (or thiee monllis aftei date, oi two months aftei si^lic), 1 piomisc to pa> to Allied Green, oi order, Fift} Pounds P'RANK JONES A promissory note may be made by two or more makers, and they ma\ l)e lial>le thereon jointly or jointly and severally, according to its tenor. Era7n2)lc of a Jomt Promissory Note, £50 Os Od London, Is/ 7m; //, 1901 Six months after date we promise to pay to Alfred Green, oi order. Fifty Pounds FRANK JONPlts. .TAMES REED. PBOMISSOBY NOTES. 275 This is a joint promise to pay by the two parties, and not a promise to pay by each one Example of a Joint and Several Promissory Note. £50 Os. Od. London, l.s/ January, 1901 Six months after date we jointly and severally promise to pay to Alfred Green, or order, Fifty Pounds. FRANK JONES JAMES REED This is a promise to pay by both parties together, and a promise to pay by each one separately. Days of grace are allowed on all Promissory Notes payable after date or after sight, the same as with Bills of Exchange, and payment (;an only be claimed on the last day of grace ; but if it is desired to avoid giving days of grace, a Piomissory Note may be worded — Si\ months aftei date (or aftci sight), without grace, I promise, etc When a promissory note falls due on Sunday, Christ- mas Day, Good P'riday, a public fast or thanksgiving day, the note is payable on the preceding business day. When a note falls due on Easter Mondav, Whit Monday, 1st Monday m August. 26th Decemlier, if a week day 27th Dectmiber, if the 26th w^as a Sunday, any proclaimed bank holiday, the note is payable the suc- ceeding business day, Promissory Notes mav be endorsed like bills of ex- change, and like them wdien not made payable to bearer can only be negotiated alter being endorsed by the payee Promissory notes drawn in the forms given above need not be presented in order to charge the makers, e\en though he gives his address under his name as — Fr^nk Jones, 120 Coruhill. 276 A COUNTING-HOUSE GUIDE. or specifies a place of payment not in the body of the note as — Frank Jones, Payable at the Bank. But in order to charge the endorsers the notes must be presented for payment somewhere. The presentment of a Promissory Note for payment need not be personal, but may be made by presenting the note at the maker’s place of business, or if he has none, at his abode, or if that cannot be found, to him personally anywhere. But where a place of payment is made on the note, presentment there will suffice. Sometimes a promissory note is made, in the body of it, payable at some particular place as follows : — Example of a Promissory Note made in the Body payable at a particular place, £100 Os. Od London, 1901. Three months after date I promise to pay, at the London and Westminster Bank, Pall Mall, to Alfred Green, or order, One Hundred Pounds. FRANK JONES In this case the note must be presented for payment during the business hours at the bank named in order to render either the makers or endorsers liable. A person taking a promissory note will do well to have a place of payment indicated at the foot of the note, and not in the body, especially where there is moje than one maker, because the maker or makers are liable without presentation, and it is easy to present, if necessary, to charge the endorsers should there be any. Promissory notes for less than 20s. are void at law, and the maker or negotiator of them is liable to a penalty. I o u’s. An acknowledgment of a debt is frequently made in an abbreviated form of I owe you, as follows : — London, 1 st Jantuiryy 1901 . To Mr. Alpbed Bird. I O U One Hundred Pounds. Charles Danes. «■ An acknowledgment m this form is called an I O U, and being merely evidence of the existence of a debt, it requires no stamp. Except that it cannot be negotiated and circulated, it has all the effect of a Promissory Note payable on demand, for the debt is acknowledged to be due, and can be sued for at any time. It is always desirable to adhere strictly to the above form, for if any words be added expressing a promise to pay the amount on a particular day, as I 0 U One Hundred Pounds, which I promise to pay on the the document would then be a promissory note requiring a stamp, and it could not be given in evidence of a debt without a stamp, and further it would require to be made on stamped paper. If the name of a person to whom the debt is due does not appear on the I 0 U, it will primd facie be taken as evidence of a debt due to the person who produces it, and to avoid difficulties the creditor’s name should always be mentioned as m the form given above. 278 A COUNTING-HOUSE GUIDE. CiKCULAE Notes. The issue of circular notes by bankers is a great convenience to those persons who intend travelling abroad, because it obviates the necessity of taking coin or notes, and it is always somewhat difficult to change cheques in foreign countries. Circular notes are addressed to the bank’s corre- spondents in French because that language is uni- versally known. Circular notes are accepted by hotel - keepers and others, and are therefore considered more useful than Letters of Credit, especially in towns wffiere there is no foreign correspondent representing the bank issuing Letters of Credit The following is the usual form used by banks . — Example of a Ci'imlai Note, The Bl\niv IUnk No Lettre de Credit Circulaire pour £10 sterling Lon ORES, 19 A Messieurs les Banquiers desjgnes dans notre Lettre d’lndication Messieurs, Cette lettre vous sera remise pai M - . _ - , dont vous trouverez la signature dans notre Lettre d’lndication susdite. Nouh vous prions de vculoir bion lui compter sans frais ijuelconques la valeui dc Dix Livres Sterling au coiirs a usance sur Londres contre sa Tiaitc ci-jomto sur cette Banque Nous avons ITionneur d’etre, Messieurs, Vos trea ob^ihsants serviteurs, , Gerant , Recr^aaire. CIBCULAB NOTES. 279 On the reverse side is :■ Thu Blank Bank, Londres £10 A sept 3 oars de vue prefix payez a I’ordre de M liivres Sterling, valeur levue. a Dix ce 19 The circular notes are accompanied by a Letter of Indication as follows : — Example of a Letter of Indzcatio?i. Londres, ce 19 MKShlEURb, Le porteur de cette Lettre, M , poui lequel nous reclamons vos attentions, est muni de nos Billets de Change Circulairo pour son voyage Nous vous prions de lui on fournir la valeur sur son double acquit au cours de change a usance sur notre place et sans •deductions de frais Si la ville od il eu touchera le montant n’a pas de Change direct sur Londres vous voudrez bien en combinei un avec la Place Cambiste la plus voisinc. Vous observerez que tout Agio sur especes d’or ou d’argent, il tout frais extraordmaires dans le cas d’un remboursement indirect doivent •f^tro supportes par le Porteur ot ne peuvent etre a notre charge. Cette lettre devant accompagner nos Billets Circulaires doit rester dans les mams de leur Poiteur jusqu’a leur epuisement Nous avons I’honneur d’etre. Messieurs, Vos tres humble et tr^s obeissants scrviteurs, , Gerant. , Secretaire The letter of indication must be produced when a Circular Note is presented for payment, and the holder then endorses it. The person or firm who pays the amount must see that the signature agrees with that given in the Letter of Indication, 280 A COUNTINa-HOUSE GUIDE, A Letter of Credit. A Letter of Credit is a letter written by one person to another, directing him to pay or to hold at the disposal of a third party a certain sum of money. These letters are not transferable by endorsement. It is a very common practice for merchants to give their correspondents who are travelling what is termed a Circular Letter of Credit. These letters, while being for only one sum of money, are addressed to several merchants or bankers residing at different places abroad, as this enables the party to whom the credit is given to receive the whole of the money at any one of the cities named, or a part of it at either or all of them as may be desired. The banker making any payment against a letter of credit should endorse or write upon it the amount he has paid, and all subsequent payers Will do the same until the whole amount for which the credit is issued has been disbursed. A letter of credit, whether circular or otherwise^ should state the time for which it is to remain in force, and indicate how the payer of it is to take his reim- bursement ; that is, whether he is to draw upon the giver of the credit, debit him in account current, or, as is very often done, take the payee’s draft upon the giver of the credit, which draft is generally made to include the payee’s commission. The giver of any Letter of Credit should forward to his correspondents by post a letter of advice, giving full particulars of the credit issued, and, to provide against the chance of the letter being lost and getting into wrong hands, he should attach to the Letter of Advice the signature of the party to whom the credit has been given, to serve as a means of his identification* BANK LBTTEB OF CBEBIT. 281 Bank Letteb of Cbedit. A Bank Letter of Credit is somewhat similar to the Circular Notes issued by them, but instead of the pay- ment being made against notes of certain specified sums, the amount paid is recorded on the back of the credit. The form of a bank letter of credit would be as follows : — Example of a Bank Letter of Credit drawn in London^ J^SOO (amount perforated). No. London, 19 Messrs. Gentlemen, This Circular Letter of Credit will be presented to you by Mr. Thomas Brown, and we request you to hold at his disposal the sum of £300, say Three Hundred Pounds, and to pay him in such sums as he may require. Please to endorse hereon any advances made to him, and to draw upon us at sight, which we hereby agree to accept. This Credit is to continue in force until the 1st July, 1901. We remam, Your obedient Servants, _, Manager. , Secretary. The reverse side of a letter of credit is as follows : — Example of the Reverse Side of a Bank Letter of Cred%L Date By whom paid 1 , Amount paid 1 1 Amount m figures 1 1 i 1 1 1 1 I 1 i , 1 1 1 1 1 1 i 1 [ s. D. m2 A COUNTING-HOUSE GUIDE. When a Letter of Credit is issued by a bank the customer's account is debited with the amount, and the correspondent's account is credited, so that when the bills drawn against the credit are presented for payment the correspondent’s account is debited with the amount in the banker’s books. As there is always a demand abroad for bills drawn on London, the foreign correspondent is usually able to make a profit on the transaction by the variations in the rates of exchange. A London bank is also required to open Credits for the travelling customers of foreign banks in the same manner as the issue of a letter of credit just described. Example of a Leitei of Credit dratvn Abroad. Buknos Ayui:s, 19 Thk Blank Bank, London Dkau Sirs, We shall be obliged b) your placing the sum of Five hundred pounds (£500) at the disposal of Mi. John Jones, making the whole amount, or an}' part of it, available to him at other places if desired. This Credit to remain m force foi three months from this date Please debit our account with payments made undei this Credit, and favour us with your accustomed early advice of same I am. Your obedient Servant, , Manager. Mr John Jones will sign (his signature). Marginal Credits. London is the financial centre of the world, and con- sequently we find that shipments of goods from one country to another are often paid for by means of bills of exchange drawn on London. MABGINAL CEEDITS. 283 For example, a merchant in Melbourne, Australia, is an importer of goods from America, and wishes to pay the buyer, who resides in New York, and in order to do this the Australian merchant obtains from the Mel- bourne Bank what is known as a “ Marginal Credit The Australian Bank informs its agent in New York that a credit has been granted m favour of the Amencan firm, which is allowed to draw on the London branch of the Australian Bank, provided the conditions under which the credit is granted are complied with. The margin of the bill of exchange is as follows : — Example of a MaKjinal Ctedit. We, as agents of the Bank, hereby certify that A. B. has complied with the conditions of a Ciedit issued by that Bank at Mel- bourne, No , dated 1st January, 1901, so far as regards the set of exchange, of which the annexed is the first, and that the first presented bill of such set of exchange, if drawn by them m terms of the said credit before Ist Jul>, 1901, for £500, payable ten days after sight, will be entitled to due honour by the Bank, provided this Certificate as annexed to such bill be presented herewith and de- livered to the said . , _ Bank in acceptance thereof This Certificate is attached to the Bill, which is as follows : — No. £500. New Youk, , 1901. Ton days after this sight pav this First of Exchange (second and third of the same tenor and date being unpaid), to the order of W. B & Co., the sum of Five Hundred Pounds, as per Melbourne Branch, Credit No. _ , dated , To the B\nk London. 284 A .COITNTIN0-HOU8B GUIDE, Bank of England. The Bank of England was the first Joint Stock Banking Association established in this country ; it dates back from its inception on the 27th July, 1694, and is the foremost iu stability, magnitude, and importance of all the great financial institutions in the world. Prom the day of its foundation down to the present time the Bank of England has discharged a double function : it is the bank of the State, as well as one of the banks for the public. It transacts the entire bank- ing business for the Government, receiving its revenues from the collectors all over the country, paying all out- goings, managing the public debt, issuing Exchequer and Treasury bills, and advancing money when the country's expenditure temporarily overtakes income. The bank is the sole repository of our stock of bullion,, and as the repository of the Government balance of the bullion reserve, and of the ultimate banking reserve of the country, it is invested with a certain stateliness and dignity of standing which place it hors de conccncrsy and which restrain it from working as other banks solely with a view to dividend earning. The Bank Pkice of Gold. The law compels the Bank of England to take at a fixed price all the gold that may be offered to it. The bank price of gold is £3 ITs. 9d. per ounce of standard gold, and all persons are entitled to demand from the Issue Department Bank of England Notes in exchange for gold bullion at the rate of £3 17s. 9d. per ounce of standard gold, the person tendering the same to be at the expense of melting and assaying it. BANK OF ENGLAND NOTES. 285 The Mint Pbice of Gold. The holder of gold bullion is not bound to go to the Bank of England, the coinage of gold being gratuitous in this country, and he may, if he so pleases, deliver it, if of sufficient amount, direct to the Master of the Mint, who will in due time return it in the shape of sovereigns at the rate of 1,869 sovereigns for every 480 ounces metal of standard fineness, which is equal to the price of £3 17s. lOJd. per ounce. This is known as the Mint Pnce of gold, and is lid. per ounce higher than the bank price, which, as we have stated, is fixed at £3 17s. 9d. per ounce standard. Bank Notes. There are two forms of bank notes in circulation — Notes issued by the Banks of England and Ireland, and Notes issued by the other various English, Scotch, and Irish banks. The Notes of the Banks of England and Ireland are a legal tender in their respective countries, but their issue is limited by Acts of Parliament, and the holder is entitled to demand com for tliem on presentation to the bank which issued them. The notes of the other various English, Scotch, and Irish banks are not a legal tender, but form a useful circulating medium m the country. Bank of England Notes. The Bank of England note was made a legal tender in England and Wales m 1833, and it may be legally tendered in payment of all sums above £5 everywhere except at the bank itself — that is to say, the Bank of England cannot compel its creditors to take its own notes, but gold can be demanded there. 286 A COUNTING-HOUSE GUIDE. Bank Keturn. This is an account of the amount of Bank of England notes issued by the Issue Department of the Bank of England, and of the gold com, the gold and silver bullion, the securities, capital stock, deposits, etc., be- longing to the Governors and Company in the banking department of the Bank of England. This account is laid before the Directors at their weekly meeting on Thursday morning, and is afterwards made public. The following is a copy of the bank return : — Example of the Bank Ret urn. BANK OF ENG T. AND. An Account pursuant to the Act^ 7th and 8th Vict , cap 32, foi tti& Week ending on Wednesda}, Ist August, 1888. ISSUE DRPARTMI NT £ t Notes issued - - 35,502,860 Government Depart- ment - - - 11,015,100 Other Securities - 5,181,900 Gold Com and Bullion 19,302,860 Silver Bullion 35,502,S()n 35,502,860 HANKING DEPAHI’MKNT 1 i. Proprietors’ Capital - 14, £53.000 Government Secuiities K), 717, 828 Best - - - - .3,357,157 Gthci Set unties - 18,(188,429 Public Deposits^ - 3,507,46.3 Notes- - - - 10,261,920 Other Depohits - - 25,285,906 Gold and Silver Com - l,3(K),l()5 Sev'en-Da} and other Bills - - - 204,816 46,9(>8,342 4(),9()H,:342 * Including Excheejuer, .SiMngs Banks, CouiniissKHjers of National Debt, and Dividoiid Accciunts F. Ma\, Chu’f CdsJiun. Dated 2nil August, 1888. BANK BATE. 287 As will be noticed the items are arranged under two headings — the Issue Department and the Banking De- partment, the former giving particulars of the circula- tion, and the latter of the gross liabilities and assets of the bank at date. The details in the Bank Keturn are always interesting to men of business, and m critical times its appearance is awaited with anxious impatience, as the information it contains will either allay or aggravate apprehension of danger. The vital figures in the bank return are the reserve, which means the total amount of notes and coin, or the cash in hand held by the banking depart- ment, for on the maintenance of a sufficient store of actual cash to satisfy the claims of depositors depends the very existence of the bank, as the whole of the deposits arc pi’actically debts payable in gold on demand, the bank must either fulfil its obligations to repay w’hen called upon or close it^ doors. The Katio spoken of by business men means the ratio, or the proportion, of reserve to liabilities Bank B\ti: The bank rate, or the Bank of Fmgland minimum rate of discount, is theoretieallv the lowest rate at w^hich the liank will discount approved Bills of P^xchangc' or make advances on mercantile securities for short periods, but since 1878 the bank has adopted the practice of discounting for regular customers (those who keep their regular banking accounts there) at market rates, m ordei to place them on as favourable a footing as the customers of other banks When trade is active rates wull advance, as every one is anxious to profit by rising prices ; money is in de- mand, there will be more banking operations, and we ■288 A COtrUTING-HOtrSB guide. I get a large number of applications for loans of capital •either to extend or to meet the business passing. When trade is depressed rates will fall away, for the demand for loans or capital will be small. Banking operations, and indeed the dedings in the Money Market generally, are governed by the Bank of England Bate of Discount. The Bank of England has a large paid-up capital ftnd has large deposits on private and Government e»ccount, and holding as it does the cash reserve of the country, it assumes the responsibility of fixing the price for the loans of capital. One important reason why the Bank of England occupies this unique position is that all the banks m this country keep their reserves at that institution, and therefore any considerable demand for capital is soon reflected in the amount of deposits held there. All our transactions are based upon gold, and although we use cheques, bills and notes for transferring capital from one person to another, yet the transactions are all based upon the understanding that if necessary gold shall liquidate the debt. Our foreign trade is carried on upon the same basis. Bills of exchange are used for settling international trade, and yet it often happens that gold is finally required to settle the transaction. The Bank of England holds a very large stock of gold, and therefore the movements of the metal to and from that institution are watched with considerable interest by the mercantile world, and when any deple- tion takes place, by raising the bank rate of interest capital can be attracted to this country, because gold will always find its way to the most profitable market. BANK BATE. 289 Changes in the bank rate depend, roughly speaking, on the proportion which the reserve of notes and coin in the Banking Department bears to the total amount of deposits, and when the reserve falls to a point at which it is deemed advisable to adopt protective measures the rate is raised ; when, on the other hand, the necessity for protecting the reserve no longer exists, the bank finds its discount business falling off, because competitors can outbid it, then the rate is lowered again. The proportion which the reserve should at any time bear to deposit, liabilities — the point at which safety ends and danger begins — is determined not by any hard and fast rule, but by the circumstance of the moment, and by contingencies within the knowledge of the directors, who are at all times in possession of a mass of information that never reaches the public. When the discounting houses cannot obtain all their requirements from the money market or the banks, they have recourse to the Bank of England, where loans are only made for certain stated periods. The bank thus knows when capital is getting scarce in the market by the applications that are made, and con- sequently raises the bank rate if necessary, m order to protect the gold reserve from flowing away. From the foregoing it will be seen that the total amount of capital held by the bank is the guiding force or pivot which directs the money value of gold as interest on loans, and thus the official rate of interest fixed by the directors of the Bank of England at their weekly meeting is taken by other banking institutions as a guide for the rates charged by them. 19 290 A COtJNTING-HOUSE GUIDE. Money Mabket. The Money Market is a term covering the whole of the dealings in money, the discounting of bills of ex- change, the rates of interest charged on loans, and the transactions in money dealings generally. A full know- ledge of the Money Market and the influences which affect it cannot be learnt from books, but we offer the following explanations as showing the importance of the subject. When trade is active money gets scarce — there are more banking operations, more bills are created, and more money is wanted for business ; when trade is stagnant less money is wanted, few^er bills are issued^ and the supply of money will be large. It is somewhat difficult for a beginner to understand the causes of fluctuations m the value of money ; that is, the interest that can be obtained upon it ; but the most important point to remember is the price to be paid, for a loan of capital necessarily varies with the supply and demand, the same as it does with everything dealt in , but capital is also subject to a great number of fluctuations, partly due to the state of credit. In this countrj^ a large number of commercial tran- sactions are based upon credit ; that is, a merchant sells, goods and receives in exchange a bill payable at some fixed period Through the medium of banks he is able to get this bill discounted, provided the acceptor is well known to the banker and the merchant’s credit is good. 'When, however, there is a feeling of distrust m the market, it is somewhat difficult to get any but the very best bills discounted, and naturally the rate of intereat rises according to the demand for accommodation. MONEY MABKET. 291 There is more risk attached to the transaction, and consequently a lender expects to receive a higher rate of interest for the business than when his risk is smaller. Again, when trade is active rates will advance, as every one is anxious to profit by rising prices, money is in demand, and we get a large number of applications for loans of capital either to extend or to meet the business passing. The reverse takes place when trade is depressed, for the demand for the loan of capital is small, and competition among lenders will cause rates to fall, as each will be anxious to get a share of what is offering. The demand for capital is therefore laigely dependent upon the activity of trade, and the supply of capital is dependent upon the rate of interest which can be obtained for the loan of it, for with a high rate every one is anxious to lend. The supply of capital is also affected by the savings of the people, and with a large accumulation of capital the rate of interest always tends to fall. The general loan fund of the country is held by the banks, and is made up of customers’ deposits on which low interest is paid, and on customers’ balances, on which as a rule no interest is paid. Now all this borrowed capital, with the exception of the varying proportion reserved to meet withdrawals^ has to be made use of somehow, and it must necessarily be laid out in securities that are realisable without difficulty or loss, and of all such securities first-class bills of exchange are indisputably the best. They are self -convertible, turning into cash automatically and at par. After bills of exchange, the next best outlet is to be 292 A COUNTING-HOUSE GUIDE. found in advances for short fixed periods on good security, and in these two directions — bills and loans — a banker generally employs the bulk of his customers’ money. The borrowers of money are the merchants and manufacturers of the country, and the extent of their requirements varies with and is dependent upon the state of trade, for as the settlement of business transac- tions (especially with foreign countries) is usually effected by means of bills of exchange, it follows that the greater the volume of trade the greater will be the number of bills to wdiich it gives rise, and the greater will be the quantity of them tendered for discount Next to the supply and demand the chief influence that governs the value of money on the market is the rise and fall of the official minimum inasmuch as bankers regulate their allowance on deposits, raising or lowering it with the bank rate, and as we have already show’n, a good part of their supply comes from money on deposit The Market Rate of Discount The Discount Rate in the Open Market is determined to a great extent by the deposit rate, or the price at which Banks and Discount Houses and DealtTs can borrow, and the Deposit Rate is more or less dependent on the bank rate, as depositors look to the official rate as a standard of value. If the Bank Rate be per cent., depositors expect to get 2 per cent., and if they could not obtain it at one bank they would try another. Consequently the advertised Deposit Rate rises and falls with the advertised Bank Rate. But the price that a DISCOUNT HOUSES. 293 banker pays for the money he borrows will necessarily affect the price at which he lends it, and if the deposit rate be 2 per cent., his discount rate will usually be as far above 2 per cent, as he can venture to go without driving his customers into the hands of his competitors. Bill Brokebs Besides the dealings in bills made by banks, a very large business is done by middlemen, called Bill Brokers, and the various large Discount Houses. A bill broker’s business is to buy bills from merchants and others and to resell them to the banks. Some of the best trade bills pass through their hands, and as their turnover is usually on an enormous scale, a very small difference between his buying and selling prices is sufficient to remunerate him. A banker lends money “ at Call ” to the bill brokers, who pay a small interest on the loan and deposit a collateral security, undertaking to repay the amount at a inoinent’s notice. This call money the bill brokers employ in the discounting ol bills, making their profits between the rate at wdiich tliey borrow^ and the rate at w^hich thev discount. « Discount Houses. Outside the Bank of England and the private banks, we have a group of persons, called Bill Brokers, who are willing to discount bills at a lower rate than the Central Institution. They are enabled to do this by receiving money on deposit, and the rates allowed for such de- posits are arranged at a meeting previously held at one of the Discount Houses. When this rate has been 294 A COTINTING-HOTJSB GUIDE, I decided, each discount house settles for itself what rate they will quote for bills, and sometimes the competition for business among them is very keen, so that the differ- ence between the rates they allow on deposits and their discount rates is Only per cent, or even less. The Banks lend their daily surplus balances to the Discount Houses and Brokers, and this tends to increase the competition for bills, because there must not be, if possible, any surplus capital lying idle. When the discount houses cannot obtain all their requirements from the banks, they have recourse to the Bank of England, where loans are only made for certain stated periods. Thus the bank knows when capital is getting scarce by the applications which are made to it, and consequently the bank raises the bank rate if necessary in order to protect the gold reserve from flowing away. COUBSB OF EXCHANGE. 295 CHAPTEB XIII. Rates of Exchange. The rate of exchange is the current value of the money of one country when exchanged into the money of another country. Thus, when we say in London that the rate of exchange on Lisbon is 35i, we mean that the Portuguese milreis is worth thirty-five pence farthing when exchanged into English money. Simi- larly, when we say the exchange on Paris is 25.20, we mean that twenty-five francs twenty centimes are worth £1 of English money, according to the present value of exchange. The rates of exchange between any two places are constantly varying, but it is only one of the values that varies. Thus in Portuguese exchange operations, it is always the English pence that varies, and not the Por- tuguese milreis. With the French exchange the Eng- lish money never varies, but the French francs and centimes, as the exchange is always computed at so many francs and centimes per £1 sterling, and similarly with other countries. Course of Exchange, The rates of exchange at which bills have been negotiated, and the ruling rates between London and most foreign places are fixed on ’Change every Tuesday and Thursday, and they may be ascertained from the lists which the various bill brokers publish. These lists are called a course of exchange. Example of a Course of Exchange. COUKSE of EXCHANGE, Ac., of 6th November, 296 A COUNTING-HOUSE GUIDE CO 00 «M-COOO O QOQ r-» rH ^ Gn >4 W t>» I'o !>• OOCOOOCSIi • w o « QC U • • » . v.^ « ^ ‘ bo^ oa*^ a • *5 cc ^ : g S : : S 00 "la* » :-S o . . . CU-4^ *• « g rs CO ^ O ^ . Ji 33 ;:§ FP«» ^ s ^ cS ^ oc -«''»r-^-co X) t^: »« CO ‘O 74 cr. CO !N CO »rs .. * 1 ^ o ’^r-r-, •3*<« CO <-• -ri — ^ OfX CO O Q X r-x X »0 CR> X Q WO COCOf— '■^MOCO'X'^'XiCOCO ■ tft W 747i04>c:tc:ircio»r:»opopi’’^'^’>a'kO?D»oi^x»Oi f— r-tr-H0404 0lMOJ04?4'^?4>»^MO»^OJCO COr-ir-i-J« 53 ^ 55 53 53 ^ •v^ * .. 33 i _ - 5 _ •' 5 ^ ^ ^ ^ 33 “*■ -■- i •’2^ '-^coco^co ^ r ~ rr « i C' fLj 3^ Oi R i a 2 JS ;r a- ■«4 «»• 5*^ X X X 5x O 53 et\ ^ ^ :5 X ^ 5o=JSSS r> . = «* = 5 M ^ S a» --• ^ c3 »■ 5 -a : :| O ^ ►> zf'X *-• ^ 2 o « S 05 ,55 Q< A DIEECT EXCHANGE. 29T How Exchanges are Made. England ships her manufactured goods largely to other countries, and imports in return foreign produce of as great or of a greater value. Trade has reached such huge dimensions that it would be impossible to settle these transactions by means of gold, specie, or bullion, as there is not enough gold in the world, and if there were the expense and risk of continually sending gold backwards and forwards would be a great obstacle to ita use for making the payment of each debt due between one country and another. Therefore, as a convenient circulating medium for trade Bills of Exchange were invented, and they now form the current medium of exchange between one country and another. We have already explained the nature of and the pnncipal laws governing these documents, and we will now endeavour to show how, by their means, the debts of mercantile transactions are settled between any two countries with- out gold being shipped for each payment. A Direct P^xchange. As an example, let us take the case of England and Portugal. We ^^ill suppose that Smith, an English merchant here, has shipped goods to Pinto, of Oporto, to the value of £500, and that about the same time,. Jones, another English merchant, has bought wine, of Millo, of Oporto, of the same value. Smith wants to get paid for his goods, and he has the choice of three ways of getting his money — he can tell Pinto to send him gold, which, as we said before, would entail gi'eat expense ; he can draw a bill on Pinto ; or he may tell Pinto to remit him a bill on London. In the usual ,298 A COTTNTING-HOUSB GtHDE. course of things he would draw a bill on Pinto, and we will assume that he does so. Smith having drawn his bill on Pinto, will take, it to a bill broker, who, if he Approves of the bill, will pay Smith the amount at once, at the current rate of exchange, less a brokerage for the accommodation. Now Jones wants to pay Millo for his wine, and he also has the choice of three ways of doing so — he can either send gold, or tell Millo to draw a bill on him, or remit to Millo a bill on Oporto ; he decides to remit a bill. He therefore buys Smith’s bill on Pinto through a bill broker on ’Change, paying English money for it at the current rate of exchange, besides a small charge for brokerage. Jones sends this bill to Millo, who pre- sents it to Pinto, and he pays Millo the amount in Portuguese coin. Thus it will be seen that Smith gets paid for his goods on this side, and Millo for his wine on the other side, without any gold passing between the two coun- tries. Balance of Teade. The balance of trade is the difference in the money value between the exports and imports of a country, and this, too, will cause variations in the rates of exchange. Now, if England sent regularly a certain value in goods to Portugal, and received in return pro- duce of an equal value from there, the rate of exchange between the two countries would fluctuate very little, if at all. But the contrary happens, as the shipments from either country are spread unequally over the whole year, so that at one time our shipments to Portugal will exceed the value of our imports from GQLD SHIPMENTS. 299 there, and at another time our imports from Portugal will exceed the value of our exports there. It is clear, therefore, that in the first position, where our shipments to Portugal exceed in value our imports from there, we shall have a surplus of bills on Portugal to dispose of, as they will owe us more money than we owe them, and the market value of these bills would fall, owing to the supply being greater than the demand. And in the other position, where the value of our imports from Portugal exceeds the value of our exports there, the supply of bills on Portugal would not be equal to the •demand for them, and they would consequently rise m value, as bills of exchange, like cotton, sugar, and every- thing else dealt in, rise and fall in value according to supply and demand. Gold Shipments. f But however great the demand for bills may be, they will never rise in value beyond specie point, the price at which gold can be bought and shipped ; so it often happens that when the balance of trade with any country is very much against us, we have to ship gold, and similarly, when the balance of trade is very much in our favour, gold comes in. When an exporter wishes to make a shipment of gold to a foreign country he usually goes to the Bank of England and buys bar gold or specie, but while the latter always commands a premium, bar gold is less liable to loss from friction, and is more convenient for export than coins. Bar gold, therefore, forms an inter- national currency, travelling backwards and forwards as a sort of make-weight to balance the difference of international trade. 300 A COUNTING-HOUSE GUIDE. How THE Price of Silver Affects the Rates OF Exchange. How the price of silver affects the rates of exchange- between one country and another is, to some persons, a problem quite bewildering in its perplexity, yet the subject is not a difficult one to grasp when once its underlying principles are understood and remembered. As a purely imaginative case, therefore, let us suppose that the market price of silver is 2s. per ounce, and that a silver rupee weighs one ounce, thus making it worth exactly 28. for the silver it contains, while, for exchange purposes with England, ten of them are reckoned to £ 1 , If silver rises in the market to 2s Id. per ounce, our rupee, weight for weight, must be worth the same amount, and ten of them, for their weight value of silver, will fetch £1 Os lOd. That is, while the rupee, as a com at home, would only be worth, or would only have a purchasing power of 2s , its weight value as silver would be worth 2s. Id. in the market, and to prevent our buying rupees for 2s. each, and selling them as silver for 2s. Id , the exchange value of the rupee between India and England must be raised, until it shall not be profitable for us to buy as a com and sell as silver,, otherwise it would be a most profitable business for us to buy a large quantity of rupees for 2s. each, and after melting them down, sell the silver m the market at 2s. Id. per ounce. Again, if silver fell to Is. lid. per ounce, there would be an inducement for coiners to buy silver and com it into rupees of full weight, which have a purchasing power of 2s. each, and these m turn could be exchanged for gold, which would soon deplete the coinage of the country. HOW TO CALCULATE EXCHANGES, 301 Of course, it must be understood that our illustration is purely an imaginative one, but it is admirably -adapted for showing how the price of silver necessarily affects the rates of exchange, which must rise or fall pro- portionately to the intrinsic value, weight for weight, or price for price, of the coins to be exchanged between one country and another. How TO Calculate Exchanges. Owing to the continuous fluctuations of the ex- changes, it becomes a matter of calculation with a mer- chant in London wishing to place money in any foreign city, whether it will pay him best to buy bills here to remit abroad, to ship bullion or specie there, or to direct his correspondent abroad to draw on him Similarly, when he wishes to get money over from abroad, he will calculate whether he will draw, or ask his correspondent to remit, or to send specie, and in making these calcula- tions there are other elements to be taken into con- sideration beyond the actual rates of exchange — such as the differences of the rates of interest on money and the brokerage, freight, packing and insurance on specie. Taking an imaginary case, let us suppose that in London the sight exchange on Pans is 25.25 fr , and that in Paris the sight exchange on London is 25 30 fr. It will be clear that for a London merchant to place money in Pans, it will be better for Paris to draw bills on London than for London to remit bills on Pans, for while the Pans house gets 25’30 fr. for every £1 it draws, the London merchant would have to give £1 for every 25*25 fr. on Paris. Similarly, if it is required to bring money over from Pans to London, it will pay better for the London merchant to draw bills on Pans, 302 A COUNTING-HOUSE GUIDE. for he will get £1 for every 25*25 fr. he draws, whereas if Paris were to remit bills on London, the Paris house would have to pay 25.30 fr. for every £1 sterling. When it is desired to calculate between operations at any term not at sight, we must bring both values to the short or cash value. For instance, suppose that in London the three months’ exchange on Paris is 25*50 fr., and that in Pans the three months’ exchange on London is 25*05 fr., and we wish to place £1,000 in Paris. Will it pay us best to remit, or to tell our Paris correspondent to draw on us, the rate of interest in both places being 4 per cent. ? Example In London £1,000 remitted at 25*50 will produce in Pans fr.25,500 00 To turn it into its cash value, deduct three months’ in- terest, or rather discount at 4 per cent, per annum - 256 00 Net proceeds of £1,000 remitted to Pans - fr.25,245 00 In Paris a £1,000 bill drawn on London and sold in Pans at 25 05 will give fr. 26,050 00 And as tlie bill drawn on us is not due for three months we must add three months’ interest at 4 per cent, per annum = 250 60 Net proceeds of £1,000 drawn in Pans - fr.25,300 60 By deducting the proceeds of the £1,000 remitted to Pans, 25,245 00 It will be seen that it will pay us better by - - - fr. 55 50 for our Pans correspondent to draw on us. In calculating the best way of placing money in Paris, or any other continental city, a merchant will also con- sider whether it will be to his advantage to effect the operation through the medium of some other country, as, for instance, by buying a bill on Hamburg or any ABBITBATIONS OF EXCHANGE. 303 other place, and directing his correspondent there to invest the proceeds in the purchase of a bill on Paris, as. explained in Arbitrations of Exchange. Every exchange calculation in reality resolves itself into a rule of three sum, and a moment’s consideration will show the reader how to work out direct exchanges,, but we illustrate one or two examples below. Sterling into Fua^ncs. To exchange £560 into Francs at exchange 25*50 per £1. £1 fr.2.5*50. £560. Francs into Sterling. To exchange fr.12,500 into Sterling at exchange 25*05 per £1. f 1.25-05 £1 :: fr. 12,600. Sterling into Milreis. To exchange £560 into Milreis at exchange 6‘2^d. per ^Iilreis 52id. reis 1,000 £560. Reis into Sterling. To exchange reis 475,000 into Sterling at exchange 53(1 per milreis. reis 1,000 ; 63d ; . reis. 476,000. (1,000 leis = 1 milreis ) Arbitrations of Exchange. (a) Bills of Exchange. (b) Bullion. (c) Coins. {d) Merchandise. (e) Weights and measures. Arbitrations of exchange are calculations to determine the rates of exchange produced by Indirect Bills of Exchange, Bullion, Coins, or Merchandise, purchased in one country and sold in another. They are Simple or 304 A COUNTING-HOUSE GUIDE. Compound, according as they are based on one or several Cross Exchanges. These arbitrated rates are often called Pars of Ex- change. The object of finding Arbitrated Kates of Exchange being explained, it is necessary here to mention that although coins, bullion and merchandise will be brought into the general definition, they are generally excluded from consideration when use is made of the term Arbitra- tions of Exchange. General Rule. Make an equation or statement of the given rates in the form of a continued proportion in the following order : — Place the fixed term of the rate of the place making the operation as the term of demand (indicated by ?) : then when the fixed term of the required par is in the money of the place where the bills, etc., are bought, the buying 'price at that place is to be the first rate of the equation, and the selling price at the other place is to be the second rate of the equation ; but when the fixed term of the required par is in the money of the place where the bills, etc., are to be sold, make the selling price the first rate and the buying price the second rate of the equation. In both cases, such extra rates are to be introduced or added as are necessary either to connect the terms of the rates, or to reduce the results to such quantities as the answer may require ; and the whole is then to be worked by the Cham Rule or “ Rule of Equations Thus, as £1 or 240d. is the fixed term of the rate between London and Pans, Amsterdam, Hamburg, GENERAL RULE. 305 Vienna, etc., in arbitrations between London and these places, this sum of money must be made the term of demand; then the Sterling money in the buying rate must be made the first term of the 1st equation, and its value the second term . that term of the selling rate which is like the last term must then be made the first term of the 2nd equation, and its value in the money of the other place concerned must be made the last term ; but as the fixed term of the rate between London and Lisbon, Naples, Madrid, etc., is in the money of those places, the fixed price is made the term of de- mand ; the first rate of the equation is then the selling price, and the second rate, (unless any intermediate connecting term is required) is the buying price. (a) Arbitrations of Bills of Exchange. Example, To find what par of exchange is established between London and Paris, by bills on Madrid bought in London at 49id. per dollar, and sold in Paris at 5 frs. 17 cents per dollar. Statement ... - 240d. = £1 Buying Pi ice - - - 49 J = 1 Dollar Selling Price . - - 1 = 6*17 Frs. 5-17 X 240 = 1240*80. 1240*80 -f 495 = Frs. 25, 06J Cts. Hence bills on Madrid bought in London at 49^d, per dollar and sold in Paris at 5*17 frs. will produce frs. 25,06J cents for £1 sterling. 306 A COUNTING-HOUSE GUIDE. The routine of the calculation for drawing as well a& for remitting is the same for the one purpose as for the other, as may be seen from the working of the following example. Let the exchange of Paris on Madrid be frs. 5*30 per peso duro (5 pesetas), and on London frs. 25.30 per £ sterling. It is required to find the arbitrated rate per peso duro for bills drawn in London upon Madrid, and remitted to Paris for sale. 1 Peso Duro^ 1 = 5*30 Francs. 25 30 = 240 Pence. Arbitrated rate, 50^d. The extra charges attendant upon these indirect operations, as well as the interest upon the bills in return, are not taken into account in the above example. (b) Arbitration of Bullion. Example. To find the par of exchange established by the pur- chase of gold in London, at 77s. 9d. per ounce standard fineness, or ll-12ths fine, and the sale of it in Pans at the rate of 4^ per mille premium upon the fixed price, of fr. 3,437*77 cents, per kilogramme which is reckoned equal to 15,434 grs. troy. statement 20 s 77^ — 1 oz bt 12 = 11 oz. fine 1 = 480 grs tio}, 16434 = 1 kilogramme. 1 - 3437 77 francs 1*000 = 1 (X)4i with premium. 3437-77 X 40 x 220 x 1*004/^ X 15434 = francs. 25 33 cts. GEi^EKAL RULE. 307 Bullion, or gold and silver in bars or ingots, may be considered as the chief regulator of exchanges ; for when the arbitrated rate produced from the prices in this and any other country, differs from the rate of exchange for bills between the same, by an amount exceeding the charges of purchase, transport, and sales, bullion imme- diately begins to flow into that country in which it yields the best comparative price. Gold, as being the easier of transport, is the more commonly thus employed ; though when taken to places where there are no facilities for its mintage, gold in coin IS always preferred. Owing to this circumstance, and to the necessity, from our monetary regulations, of our having a large supply of gold in this country, some of our public journals periodically statti the arbitrated pars between London and Paris, as well as Berlin, Hamburg, Amsterdam, and other commercial centres, and compare them with the prices of bills at short sight, such bills being considered as present cash, as are the prices of bullion. Respecting these statements, it may be mentioned that it is incorrect to employ, as is donc\ the old French tariff rate (known as the “ commercial tanff”) of gold, which was in use before the year 1835, because in all large operations, as well as in most of the minor ones, the new tariff’, or that established m that year, is now almost exclusively used. Nor should the selling price in London be taken at the mint rate for coinage, or 77s. 10 hi., instead of the long established and uniform bank buying rate of 77s. 9d. per ounce, because the former is a price which gold now^ never fetches m the bullion market. These deviations from the ordinarj practice, unfortuiiatel}% greatly detenorate the value of these statements. 808 A OOtJNTING-HOUSB GUIBEJ. Calculations of this nature are made from fixed num- bers, such as those given in the bullion tables in the Modem Cambist^ but as the fixed numbers for the rates of gold for Paris and Hamburg may be useful for the purpose of checking the statements alluded to, we here give them : — Fixed Numbers for Gold in operations with Paris. At the old tariff, of francs 3434*44 per kilogramme Bank rate, 77s. 9d per oz. « - F. N. 26*186 Mint rate, 778. lOJd. „ . - „ 25*146 At the present tariff, of francs 8437*77 per kilogramme. Bank rate, 778 9d. per oz - - F. N 25.210 Mint rate, 77s lOJd. „ - - „ 26*170 Whichever of these fixed numbers is used, if the rate of premium is applied, the Arbitrated Bate is at once obtained. Fixed Numbers for Gold in operations with Hamburg, under the old Monetary System. In marks banco, per Hamburg mark weight. Bank rate, 77s. 9d. per oz - - F. N. 3137 Mint rate, 77s. lOJd. „ - - ,, 3132 For the rttke of showing the application of these fixed numbers, we here give the following calculation : Sup- posing the price of bar gold in Hamburg to have been 434 marks banco per Hamburg mark of fine gold, and in London 77s. 9d. per ounce standard, and the rate of short bills in Hamburg to draw for the amount, 13 mks. 9| sch. banco per £ sterling. MB. M. B MB. Sch. 4*34 X 3*137 = 13*614 = 13 9y\ Bills 13 9i = 13*609 On 13*609 the Diff. 0*005 nearly equals 0*04 per cent. GENBEAL RULE. 309 This shows that at the time of such an operation gold was dearer, by this rate per cent., in Hamburg than in London ; whereas, if the mint price were taken, gold would have been about 0*12 per cent, dearer in London. (c) Arbitrations of Coins. In the valuation of gold coins of other countries it is usual to rate them at 77s. lO^d. per ounce standard, this being the British mintage selling rate (the buying rate being 77s. 9d.) ; and in the valuation of silver coins to rate them at 60d. per ounce standard, as being the full average value of standard silver. Spanish doubloons and dollars are commonly valued by weight as articles of merchandise. Example, To find the par of exchange established by French gold coin in comparison with British standard gold at 77s. lOJd. per ounce, the full standard weight of the 20-franc piece or Napoleon being 97 i grains troy. Statement 20s. ^ 77 J = 480 grs. troy. 97i = 20 francs. ^ 20 X 480 X 20 20 X 3840 x 80 6144000 111 X 97^ ~ 623 X 391 “ 243693 = Frs. 26 22 ots In consequence of the fractions it is requisite to mul- tiply both sides of the equation by 8 and by 4 ; there- fore, instead of 77§ = 480 grains troy, we must say 6238. = 3840 grains troy, and instead of 97| grains troy = 20 fr., we must say 391 grains troy = 80 fr. In the calculations of this section, the weight of the different coins in troy grains is deduced from the mintage 310 A COUNTING-HOUSE GUIDE. full rates of the various countries ; but these can hardly be said to afford any correct data for forming pars of exchange, further than for the purpose of general infor- mation, because several of these coins are not worked fully up to their standards, and because gold being the standard of value m this country, and not in some con- tinental states, where it bears a variable agio or pre- mium, this agio would be required to be taken into consideration, and then the valuation of the gold coin would become, at least as far as regards one of the places, properly only a valuation of bullion. Silver is the general money of payment abroad ; here it is so but to a very limited amount ; and in conse- quence of the high relative value which our mintage regulations have given to it, as against gold, no mintage- pars of exchange can, with any near approach to truth, be formed from a comparison between the British and any foreign silver coins. For example, from the mintage rates of the French and English silver coins, the par would be 23 francs 44 centimes sterling, while from gold, without the agio, the par is 25 francs 22 centimes per pound sterling. This disagreement arises from the different relative values of the two metals in the two countries. In France, and it is elsewhere nearly the same, 1 portion of fine gold is rated equal to 15 J like portions of fine silver, or the mintage relative values of silver to gold, are as 1 to 15J, while in England, they are as 1 to 14’287 ; an arrangement by which we are certain to keep our silver com in the country, since it has no value, approximate to its English current value, in any other country, and therefore gold coin, which, as the standard of value, should be kept here as the medium GENERAL RULE. 311 of payment, is employed to restore the equilibrium of exchanges, which necessarily occasions, by the conflict of these antagonist principles, a great liability to serious disturbance m our monetary system. ( d ) Arbitrations of Merchandise. Case 1. When the whole cost and the net proceeds are given. Example. To find the course of exchange established between London and Pans, from the purchase of Bullion in London, and sale of it in Pans, the cost and charges amounting to £27,416 10s , and the net proceeds yielding frs. 702,467*60. t s Frs Cts £ As 27,416 10 702,467 60 1 . Ans. Frs 27,416 ) 702,407 Aus. — Frs. 26 62 J Gts. Case 2. When the prices, weight and percentage^ charges are given. Obs. — 1. The percentage of the charges on the cost price is to be added to 100, and the same on the selling price is to be subtracted from 100; and m applying these, the former amount is to be on the same side of the equation as the buying price, and the latter remainder is to be on that side which contains the selling price. Obs. 2. — When there is a percentage discount on either the buying or the selling prices, it is to be taken from 312 A OOUNTING-HOtrSB GUIDE. 100, and the remainder is to be applied to the same side of the equation as that which contains the price on which the discount is allowed. Example, To find the rate of exchange established between London and Hamburg from coffee bought in London at 61s. per cwt., and sold in Hamburg at 75 pfennige per lb. ; supposing that 112 lb. English render 102 lb. Hamburg, that the export charges m this county amount to 3 per cent., and the charges of the sale in Hamburg amount to 10 per cent. In arbitrations of merchandise the relations of the weights are generally not made from the exact absolute standard weights of the two places concerned, but fnom the average net weights of the particular goods. Statement 20 s. ? 61 = 112 lb. 103 = 100 with Shipping Charges. 112 = 102 lb. Hamburg. 1 = 75 Pfennige. 100 = 90 with Hamburg Charges, ^ - Pf. = Imp. Mks. 21 91 Pf. 103 X 61 (e) Abbitrations of Weights and Measures. Arbitrations of weights and measures are calculations for determining the relations between the weights and measures of two countries, from their mutual relations to those of another country. Rule. — Make the weight, etc., for which the equiva- lent is required the term of demand ; make that rate the first rate of the equation which contains a similar GENEBAL RULE. 3ia weight, etc. ; and make that rate the second rate of the equation which contains the weight, etc., that is similar to the equivalent quantity required. N.B . — It is sometimes necessary to introduce other terms to reduce the rates, as in the following example. Example 1. To find the weight in Hamburg lb. which is equiva- lent to 1 cwt. English ; the Hamburg lb. being reckoned equal to 10,080 Dutch asen, and the Dutch mark of 5,120 asen being reckoned equal to 3,798 grs. troy, of which 7,000 grains are equal to 1 lb. avoirdupois. Statement . 112 Avoud. ^ 1 = 7,000 Grs. Troy. 3,798 = 6,120 Asen. 10,080 = 1 lb. Hamburg. 112 X 7,000 X 5,120 __ 401,408,000 " "10,080 “x '3,798 3,828,384 = Hamburg. Examjyle 2. To find the weight of the Vienna mark in ounce troy the estimated weight of 1,000 marks being 280,644 French grammes, and 1,000 grammes being equal to 15,434 grains troy. Statement 1 Vienna Mark ^ 1,000 = 280,644 Grammes. 1,000 = 16,434 Grs Troy. 480 = 1 Oz. 480,000,000 “ Troy. Example 3. To find the contents in imperial gallons of the Ham- burg ahm, which is reckoned to contain 7,300 French cubic inches (old measure), 100,000 French cubic inches 314 A COUNTING-HOUSE GUIDE. being reckoned 121,057 English cubic inches, and 277*274 English cubic inches being the measure of an Imperial gallon. statement 1 Ah in ^ 1 = 7,300 F. C. Inches. 100,000 = 121,057 E C. Inches. 277*274 = 1 Imp. Gall. 121,057 X 7,300 ^ ^ „ 27 727 400 — Imperial Gall. Example 4. To find the length m English inches of the Prussian foot, 100 feet being reckoned equal to 13,913 old Paris hnes of 144 to a foot ; 1,000,000 Pans feet being reckoned equal to 324,839 metres, and 1,000 metres being •equal to 39,371 English inches. Statement 1 Fuss (Prussian foot) ? 100 = 13,913 Pans Lines. 144 = 1 Pans Foot. 1,000,000 = 324,839 Metres 1,000 = 39,371 P^ng. Inches. 39,371 X 324,839 x 13,913 ^ , 14,400,000,000,000 ' "" Inches The Metbic System. We had intended to have given in this place a series of tables of the weights and measures, both of the old and new denominations and values, but finding that our space IS too limited for the purpose, we have printed only a few tables illusl.rative of the French metrical system, which is now adopted in Austria, Belgium, Denmark, Greece, Germany, Italy, Netherlands, Nor- way, Portugal, Spam, Sweden, and Switzerland, and which has swept away the heterogeneous medley of systems formerly existing on the Continent. THE METRIC SYSTEM. 315 (1) Mbasuees op Length. English Value Inches 1 Millimetre = 1000th of 1 Metre = 0*03937079 1 Centimetre = 100th of 1 Metre = 0 3937079 1 Decimetre = 10th of 1 Metre = 3*937079 One Metre (the Unit of Measure) is 39*37079 inches = 1 yd. 0 ft. 3-87079 1 Decametre = 10 Metres = 10 2 9*7079 1 Hectometre = 100 Metres = 109 1 1*079 1 Kilometre = 1000 Metres = 1093 1 10*79 One Myriametre == 10,000 Metres, or G nnles 37G yds. 0 ft. and 11*9 inches. (2) Measures op Capacity Cubic Inches 1 Milhhtrc = 1000th of 1 Litre = *061027 1 Centilitre — 100th of 1 Litre = 0*61027 1 Decilitre — 10th of 1 Litre — 6*1027 One Litre, oi Cubic Decimetre (the Unit of Capacity) - - - = 61 027 or 1*7607 Imperial Pints Cul)ic Feet 1 Decalitre = 10 Litres — 0 3531 or 2*2009 Imperial Gallons. 1 Hectolitre = 100 Litres = 3 5316 or 22 019 Imperial Gallons. 1 Kilolitre =r 1,000 Litres = 35*3165 or 220 09 Imperial Gallons One Myrialitre — 10,000 Litres = 353*1658 or 2200 9 Imperial Gallons. N B. — The Millilitre is the Cubic Centimetre. The Litre is the Cubic Decimetre. The Kilolitre is the Cubic Metre. (3) Measiues of Surface. Square Feet 1 Centiare or St^uare Metre = 100th of 1 Are = 10 76429 One Are (the Unit of Surface) = 1076*429 1 Hectare — 100 Ares = 107642*9 or 2*47114 Square Acres, ix , nearly 2J Acres. 816 A COUNTING-HOUSE GUIDE. (4) Weights. Grains Troy. 1 Milligrajnme = 1000th of 1 Gramme = *0154823 1 Centigramme = 100th of 1 Gramme = *154823 1 Decigramme = 10th of 1 Gramme = 1*54828 One Gramme (the Unit of Weight) is 15*4828 1 Decagramme = 10 Grammes = 154*323 1 Hectogramme = 100 Grammes ~ 1548*28 or 3 oz. 8*438 drs. avoirdupois. 1 Kilogramme = 1,000 Grammes = 15432*3 or 2 lb. 8 oz. 4*38 drs. avoirdupois. One Myriagramme = 10,000 Grammes = 154323* or 22 lb. 0 oz. 11*8 drams avoirdupois. N,B . — The parts of the metre, the litre, and the gramme are distinguished by prefixes taken from the Latin — deci, c&ntiy and milli. The multiples of the mfetre, the litre, and the gramme, preceding m decimal progression, have prefixes derived from the Greek — decay hectOf kilo, and myria. The Are has its parts and mul- tiples similarly distinguished. CHAPTER XIV. percentagb:s of rates of exchange. Percentages of rates of exchange are the parts of the rate of exchange that are equivalent to given rates per cent. Case 1. When the rate and the percentage are given, to find the part of the rate. Buie , — Multiply the rate of exchange by the given rate per cent,, and divide by 100. PEBCENTAGBS OF BATES OF EXCHANGE. 317 Example 1. To find the amount of If per cent, upon the rate of exchange on Pans at frs. 25 45 cts. per £ sterling. Cts. 26*46 12*72 6*36 for 1 ♦> 2 >» a 4 Cts. 44*53 or 44^ Cts. N,B . — In London quotations of Paris, Amsterdam, Genoa, and Leghorn rates, the number of francs, flonns, and lire in the rates is the number of cents., etc., that are equal to 1 per cent. Example 2. To find the amount of If per cent, in the old Ham- burg rate of M. B. 13 14 Sch., and in the new German rate of M. 20 80 Pf. per £ sterling. Mks. Bo. 13 14 Sch. Mks. 20 80 Pf. 16 Sch Bo. 2 22 1 Ml i M 55 i „ Phen. 20 8 1 7^ 10 4 62 Sch. 3*88 or 3} Sch. Plien 36*4 or 36J Pf. Example 3. To find the amount of IJ per cent, on the rates of exchange of 54i per milreis on Lisbon, and 49 per dollar on Madrid. 64id. 4 2*18 1*09 3*27 ^rthings or 49d. 4 196 *98 2 94 or 3 farthings nearly. 318 A COUNTING-HOUSE GUIDE. — In the Madrid, Lisbon, Gibraltar, and Venice rates, |d. sterling is usually reckoned as 1 per cent. Interest calculations on rates of exchange are made in the same manner when the time is in months or a fraction of a year. For example, at 4 per cent, per annum, nine months’ interest is 3 per cent., six months” is 2 per cent , three months’ is 1 per cent., two months” is 4 per cent., six weeks’ is i- per cent., one month’s is J per cent. At 5 per cent, per annum nine months’ interest is 3| per cent., six months’ is 2i per cent., three months’ is IJ per cent., two months’ is ^ per cent., and one month’s is yV per cent For days it is usual to multiply the rate by the num- ber of days (360 days being reckoned a year), and divide the product by 7200 for 5 per cent , by 9000 for 4 per cent., and by 12,000 for 3 per cent., or to take parts for the number of days out of these divisors. Exavij)Ie 4. To find the net rate of exchange of London on Pans, or the short price * of a bill drawn on Pans at 25 65 that has three months to run, and of another at 25*40 that has twelve days to run at 5 per cent. - 25 40 Rato. 4J Int. Frs 25 Not 12 out of 7200 IS the part. * The short prices of bills of exchange are the prices of bills at sight, or at three days’ sight, and they are generally neaily equivalent to the prices of bills at other periods of payment aftei allowing for the interest. . - 25 65 Rate. 32 Int. Frs 25 33 Net PEBCENTAGES OF BATES OF EXCHANGE. 319 ^ Case 2. When the whole rate and a part are given, to find the percentage. Buie , — By proportion, say, as the whole rate is to its part, so IS 100 to the rate per cent. Example 1. Find the percentage of 83 centimes in the rate on Pans of frs. 25 70 cts. As 25 70 0*83 . 100 Ans 2570 ) 3800 Product 1 per cent In general the product may be obtained by inspection to any degree of nicety required for purposes of business ; thus, reckoning in the above rate that 26 cents, is 1 per ct., the remaining 7 cents, give an additional \ per ct., making the pioduct 1| per ct. Example 2. To find the percentage produced by ;d in the Lisbon rate of 54;d. As 219 far 1 far 100 Aus 800 - 219 = 1*37 or nearly 1§ per cent It IS very common, as said before, to reckon one half- penny in the rate of exchange between London and Lisbon as I per cent., but it may be more correctly taken as being equal to 9-lOths per cent. In making the corrections for interest upon the rates of exchange, 4 per cent, per annum has been generally taken for both the places concerned, as rendering the calculations more easy of performance, and as being sufficient to show their principles and the objects for which they are made. ^20 A COUNTING-HOI7SB GUIDE. In practice, however, it is usual to take the current rates for the discount of bills at the places on which they are drawn, as it is these which chiefly influence the difference between the rates of bills at short and long dates. The difference of time is not generally the sole cause of the difference in the rates ; for the price of the one or the other class of bills is also influenced by the greater or less demand for them. When banking operations are extensive, when bills are in demand for sale in other places than those on which they are drawn, or when they are wanted for holding, from an expected approaching rise in the rates, three months* bills command a better relative price. On the contrary, when political events occasion an apprehension as to the security of payment, no bills, except short time ones, are saleable, and these upon disadvantageous terms. An instance of this may be shown from the Paris quotation of bills on London, in which the rate for thirty days, at a set date, is given at 25*50, and that at ninety days at 25*42|, making a difference of 7| cen- times for sixty days, or 45 centimes for one year,* being 1*76, or nearly 2 per cent, per annum, for the rate of discount in London. So also, at a like date, the rate in London upon Paris was, for bills at three days’ sight, 25*55, and for bills of three months’ date, 25*72|, giving a difference of 17| centimes for three months, or 70 centimes for one year, and being 2*74, or nearly S per cent., for the rate of discount in Pans. * The difference in these rates does not exactly show the rate of discount, because the negotiating difference is not less than 2} oen< times, except in particular instances. INTEREST ON BIIiLS OF EXCHANGE. 321 Interest on Bills of Exchange. The following observations respecting interest will be of service : — (1) Bills at sight, or the short cash prices of bills, are dearer than bills at three months, because upon the latter there is a loss of the interest for the time they have to run. (2) The interest on the London price is subtracted ; for this rate on Paris being in foreign money, the lower the number of francs is that are given in London for £1 sterling, the dearer the bills are. (3) The interest on the Paris price is added ; for in Paris the rate is in the money of the country, and therefore the greater the price is that is given in Paris for £1 sterling, the dearer the bills are. (4) The same principles apply to London rates in sterling ; but they appear to operate the reverse way ; thus, in the rate of London on Madrid the interest is added, and in the rate of Madrid on London it is sub- tracted. To show that the reversing in the additions and subtractions, which takes place when rates aie in ster- ling instead of being in foreign money, is correct, we shall make out a statement for the following example : — If by sending goods to Cadiz I establish a net arbit- rated rate of 35 Jd., what is the rate per cent, of my gain if I have bills in return at three months at 37|d., after adding nine months’ interest at 4 per cent, to the arbitrated rate ? According to the data it may be supposed that 35,250 pence were laid out in this country in the purchase of goods, which have been sold in Cadiz for a sum, after 21 322 A COtJKTING-HOUSB GUIDE. paying ali expenses there, equivalent to 1,000 pesos of plate ; that nine months elapse before return bills aie obtained at three months’ date ; and that these bills, are then discounted at 4 per cent, per annum. Pence. Amount of Cost and Charges 35;250 Interest for nine months 1,05T Cost and Interest 36,807 Ponco* Return Bills for 1,000 Pesos at 373d. - - - 37,750 Discount for three months 377 37.37a Profit, 2*93, or nearly 3 per cent, on Cost and Interest - - l.OCa The rates here being in sterling, the interest is additive to the arbitrated rate, while the discount is subtractive from the return rate, which is the reverse of what takes place when the rates are in foreign money It further requires to be remarked, that there is a similar reversal of the rates upon which the profit is to be estimated ; for when the rates are in foreign money the return rate is used, but when they are in sterling the arbitrated rate is employed ; m either case, however, the discount upon the former or the interest upon the latter should be previously applied. AEBITRATED PRICES. 323 CHAPTEE XV. ARBITRATED PRICES. Arbitrated prices are rates or prices produced by bullion or merchandise from the cost or selling price m one of the two places concerned, together with the arbitrated weights or measures, and the charges, allow- ances, and rate of exchange ; an arbitrated cost pnce being the price at which the article should be bought to admit of its being sold without loss at the given selling price ; and an arbitrated selhng price that at which it should be sold to cover the cost and charges Example. To find the arbitrated selling price in imperial marks per lb. in Hamburg, produced by the purchase of indigo in London at 5s per lb , calculating that the export charges are 3 per cent , that 100 lb. English yield 92^ lb Hamburg, that the freight and sale charges are 5 per cent , and that the course of exchange is mks. 20 50 pf. Statement 1 lb. Hamburg? 24 = 100 lb. English. 1 = 5 s. Sterl 20 = 20 Mks. 50 Pf. 100 = 103 with export charges. 95 ~ 100 less Hamb. charges. 108 X 20 50 X 5 X 10 l86 X 96 Mks. 6 00 7 Pf., or 6 Mks. Obs. — The London charges here increase the cost price, and therefore the 100 with these charges are placed on the side of the equation containing this price. 324 A COUNTING-HOUSE GUIDE. The equation then reaches to the net selling price at Hamburg, where, from the charges being estimated at 5 per cent, on the full price, 100 full price yields 95 net price. Therefore, as we want to find the full price, we reverse this analogy, and make 95 net equal to 100 less charges. In the application of the percentage rates, as terms of the equation, it is considered that the shipping or export charges are rated on the cost price, and that the sale or import charges are rated on the selling price. For these and for discounts on each price the equa- tional terms then are as follows : — (I) To find a Sale Price — 100 = 100 + Export Charges 100 - Import Charges = 100 100 = 100 - Discount on Cost 100 ~ Discount on Sale = 100. (J) To find a Coit Price — 100 4- Export Charges == 100 KX) = 1(K) - Import Charges 100 - Disctiunt on Cost = 1(X> 100 = 100 - Discount on Sale The objects of tliese calculations may )>e more clearly understood if we state that m finding an arbitrated cost price it is to be the highest price at which the article should be bought , or, in finding a selling price, the lowest price at which it should be sold, either to pre- vent any loss upon the transaction or to realise any proposed profit. In calculations of this kind there are generally two classes of Charges to be taken into account . the one comprises the percentage charges, as commission, in- surance, etc., which are dependent upon the amount of merchandise, and tlie other the fixed charges, as duty, COMPARISON OF DIRECT AND ARBITRATED RATES. 325 freight, etc., which attach to the article without regard to its value. Houses of business having frequent occasion for cal- culations of this nature generally make up tables of fixed numbers, from which, by applying either the rate of exchange or the given price, the required price can be obtained with little calculation. Percentage charges chiefly depend upon agreement ; charges for insurance and freight can frequently be but httle more than sur- mised ; and the rate of exchange, particularly with some places, is rarely so steady as to be depended upon at the time when the order is executed as at the time when quoted or when the calculation was made Hence limits are generally attached to the order upon these different points. CHAPTEE XVI. THE COMPARISON OF DIRECT AND ARBITRATED RATES OF BII.LS OF EXCHANGE. Arbitrated Pars, or Indirect Eates of Bills of Exchange, are compared with the direct rates for the purpose of determining the most advantageous method of either making remittances or disposing of drafts and obtaining returns. For the making of remittances, as from London to Pans, this purpose is to find whether the purchase of bills on other places and the sale of them m Pans will, after defraying the extra expenses, produce a greater amount of French money than would be obtained by the remittance of direct bills on that place. For either reimbursement or obtaining remittances 826 A COUNTING-HOUSE GUIDE. or returns, as with the same places, whether it is better for London to draw upon Paris, or for Paris to remit to London, and whether such remittances should be in direct or indirect paper. The terms better and worse as applied to rates of exchange are convertible according to their application, and they must not be confounded with those of higher and lower prices. Thus 25 francs 50 centimes per £ sterling give a bettei rate for drawing, and a %oorHe rate for remitting, than 25 francs 70 centimes, the former being the dearer^ and therefore the better rate for selling, than the latter, which is the cheaper and therefore the better rate for buying For disposing of drafts, whether such paper would sell for a better price elsewhere than in the place making the operation, taking also into consideration the means of reimbursement, b}’^ either counter-drafts or return reimttances. These are the general purposes of arbitrating the rates and making these comparisons, but they can be carried much farther, as operations m bills of exchange are capable of being rendered very complicated and circuitous by extending them through several places. In making the calculations for either drawing or remitting, as the purchase and sale of bills are for im- mediate payment, while direct remittances are in cash only when due, m order to make the comparisons upon a footing of equality in point of time (unless bills at short sight are used, which is seldom the case), the direct bills require to be discounted, at the rate of interest in the place on which they are drawn. In like manner, also, when any indirect bills are for longer or shorter periods than those for which the selhng rates are made, OOMPABISON OF DIRECT AND ARBITRATED RATES. 327 adjustments of interest or discount are required to be applied, in order to bring them to the level of those prices. All operations of Bills of Exchange, unless they are direct Drafts for direct remittances, are attended with the charge for brokerage, which is commonly per cent, or 1 per mil. Hence the purchase of either direct or indirect remittances has one brokerage ; the sale of in- direct bills, a second brokerage ; the purchase of either sort of returns, a third brokerage; and the sale of in- direct returns, a fourth brokerage. There is also a charge for Commission to be taken into calculation, unless the operation is upon the joint-account of the parties concerned in it, and between whom the profit or the loss is to be divided. The rate of this charge is the subject of agreement, and is necessarily dependent upon the trouble and responsibility incurred by the guarantee which is given by the endorsements at each step of the operation. In the following examples and exercises this charge is, with one exception, taken at J per cent. It cannot be too often impressed upon the attention of English inquirers into the nature of exchanges, that a rise or fall in the price of rates of exchange expressed in foreign money is directly the reverse of w^'hat it may appear to be, and of what it is generally described to be. The true principle is, that the greater the quantity of foreign money which is given for the pound sterling, the lower the rate of exchange becomes ; for, to use a familiar illustration, every one would say that the price of oranges had fallen, when it had varied from twelve for a shilling to sixteen for a shilling, although in speaking, for example, of the exchange on France, it is commonly 328 A COUNTING-HOUSE GUIDE. said, when the rate has varied from fr. 25*20 to fr. 25'40, per £ sterling, that the later is the higher instead of its being the lower of the two prices ; it is, as with the oranges, the francs which are bought and sold, and not the shilling or the pound sterling. It is clear that at 24 francs per £, the value of each franc would be lOd. ; at fr. 25*25, 9Jd. ; at fr. 27*4, 8|d. ; and at fr. 30 it would be only 8d. When thp rates are not in foreign money an increase in the quantity of the rate is, then, an increase in the price ; as 37 id. ^et peso duro, or hard dollar, is a higher price than 37d. for bills on Madrid ; but with rates in foreign moneys, the prices are inversely as the quantities of those moneys ; and thus we find, in bargaining, that a party will say, I will not take them at 25*70, but I will give 25*75 for them — the latter being a less price than the one demanded. Banking Operations. The direct object of any bill of exchange is to obtain the payment of a sum of money due to the drawer of it, by his transferring his claim, through the instrumen- tality of the bill, to another party from whom he receives the value either in money, or in credit, or account ; and the transferment is thus continued, through the various possessors of the bill, until it comes into the hands of a party finally claiming payment. Many bills are, how- ever, drawn merely for the purpose of taking advantage of the state of foreign exchanges, while, on the other hand, purchases of foreign bills are continually being made, with the intention of either holding them and taking the chance of a rise in the rates of exchange, or BANKING OPEBATIONS. 329 remitting them abroad to create a fund which the pur- chaser may draw against, or out of which he may have- returns. Speculations of this nature constitute what are termed Banking Operations, and by some great houses they are constantly being carried on through a variety of places. The balance of trade as being for or against a particular country, in relation to some other country, has a con- siderable influence upon its exchanges, but (as with the clearances of the London bankers) the mutual relations between several countries serve to keep in check any material elevation or depression, and it is by the circu- lation of bills, sometimes aided though at other times disturbed, by operations in bullion and foreign stocks, that a comparative steadiness is attained which is con- ducive to the common advantage To ascertain in what manner such operations m bills, of exchange can best be conducted is the object of the calculations of arbitrations of exchanges. The numerical result is, however, not the only thing to be attended to in practice. Bills which may yield a good price for sale may be capable of being taken to only a very limited extent, and m like manner for return bills, those which are the cheapest for purchase may notwithstanding be only in limited supply. The abundance of certain bills is mostly to be found m particular places, and it has been w'ell observed by a sagacious practical Cambist that there is a sort of geographical influence upon the rates of exchange, and that the nearer bills m their transit approach the places on which they are drawn the better prices they commonly produce. Hence bills upon St. Petersburg generally meet with a better sale in Amster- dam or Hamburg than they do in Paris or London ; 330 A COUNTING-HOTJSB GTJIDB. bills on Leghorn or Genoa yield higher rates of exchange in Marseilles than in Pans, and in Paris than in Hamburg, and therefore it can be owing only to some accidental circumstance that any advantage can attend the sending of bills out of their duo course of travel. The state of the Money Market has also its influence. Where money is abundant, and the rate of interest is consequently low, every opportunity for investment is eagerly sought for, and bills of exchange come in for a full share of high prices, if for no other purpose than merely that of holding ; for as their due-date approaches their value increases, by the amount of the interest, or nearly so, for the running time, and at the rates of the places on which they are drawn At certain periods of seasons bills on particular places are more in request than at other times, and this is often a cause of advance in value, which those concerned in their negotiation have to take into account. Another cause which operates at all times upon the rates of exchange which can be obtained for bills is the security, or, in other words, the respectability of the names upon them Bills drawm or accepted by first- rate houses command a first-rate pnce. Original bills, or those which are sold by the drawers of the bills, can obtain such prices only when coming from houses of the highest standing ; and, indeed, in the sale of such bills, but of another class, not only do they get an inferior rate of exchange, but the payment for them, instead of being made on the following post day, is sometimes delayed until mquines have been made, while, on the other hand, the sellers of bills not unfrequently require payment for them upon delivery. Bills of exchange drawn upon or payable in this BANKING OPEBATIONS. 331 country, otherwise than at sight, have, it is well known, three days of grace, or are not due until the end of that time beyond the period for which they are drawn. Bills thus coming due on a Sunday, or Chnstmas Day, or Good Friday, are reckoned due the day before. Those falling due on Easter Monday, Whit Monday, the first Monday in August (Bank Holiday), and the 26th De- cember (or Boxing Day), are payable on the following day. France, Germany, the Netherlands, Spain, etc., give no days of grace. There is another point respecting the rates of exchange which requires to be noticed. The tenor of most of the bills upon places with which London has opened an •exchange is three months ; and when only a few days have elapsed between the time of their being drawn and that of their negotiation, it rarely makes any difference in their rates. Otherwise, when the bills have been running for a longer time, and their value has thus become increased, they either command a better rate of -exchange or the three months’ rates are taken, and in- terest IS charged for the time which has run, at an agreed percentage per annum (When there are several bills so situated, instead of taking the interest on each, it is very •common to find an average time for which the interest is taken on the whole, and this is sometimes calculated to the nicety of half a day.) Abroad it is most common to charge m this latter manner for any time which has elapsed, and it must therefore be attended to in the checking of foreign exchange accounts, because the amounts charged for remittances to this country fre- quently exceed the amounts of the bills at their specified rates of exchange, by a sum which is equal to the amount of the intex^est upon them, from the days on 332 A COUNTIKG-HOUSE GUIDE. which they were drawn to the day on which they were remitted. The number of the places with which exchange business is conducted is necessarily limited to those with which great or frequent intercourse is maintained ; and several, even of these, being excluded from anything more than occasional transactions, quotations of rates, upon them are generally only nominal. In the bill transactions with other places either some intermediate exchange places are employed, or drafts and remittances* come from only one of the two places concerned. For example, of the places given in the London Course of Exchange, there are rarely ever any bills negotiated upon either Berlin or Eio de Janeiro ; bills upon St^ Petersburg are also but seldom found in the market, drafts upon Kussian houses of business being commonly made upon their correspondents in Hamburg or Am- sterdam, or sometimes Paris, with whom credits have been opened for this purpose. So, also, though there is scarcely any place to which European commerce extends where bills upon London cannot be found, yet the reverse is the case with only, comparatively, a very few places, and the rest draw upon and remit to London, instead of London taking the initiative m the bills. In the operations of exchanges, as short bills are never used, except occasionally for returns, both direct bills and bills of a dififerent tenor to that quoted for the selling price require to be corrected, and the rates of interest in the various places concerned must therefore- be known. In those courses of exchange which have dififerent rates for dififerent times for bills such difiference of price will serve to show nearly the rate of interest in the place drawn upon, although, as before observed,. BANKING OPERATIONS. 333 there is usually a shade of difference in favour of short bills. Thus in the London rates of bills on Paris there being at times, between the rate for three days’ sight «,nd that for three months’ date, a difference of 20 •centimes, say, for three months, or 80 centimes for a year, this difference gives rather more than 3 per cent, per annum for the rate of interest in Paris. In the like manner the difference in Pans for bills on London being taken at centimes for sixty days, or 45 centimes for a year, will make the London rate of interest below 2 per cent, per annum. In the same way the rates for other places may be found, but certainly with no great degree of precision. The rate charged for commission for the negotiation of bills is commonly the subject of agreement, but it vanes also according to the nature of the transaction. Some houses increase their rates of commission, accord- ing to th^ number of their signatures or endorsements. Thus in the sale of indirect bills remitted from London to a correspondent m Pans for returns, as the bills so remitted would have been made specially payable to him he would have to endorse them, and as he would also have to endorse the return bills it would not be an uncommon thing for him to charge a double, or at least an increased rate of commission for his double respon- sibility. Poreigii bankers in such cases often charge I per cent. The profit upon exchange operations is, however, usually so small, especiallj’' between the pnn- cipal exchange places of Europe, where from the rapidity of communication every trifling advantage can be quickly seized, that unless the rate of Commission is very low no such agency can be employed. The trans- actions are in consequence generally carried on upon 334 A COTOTING-HOtTSB GUIDE, joint-account, and these operations so much influence the market that commission business can be transacted only by a very limited number of houses of such high character as to command a better selling price for bills having their endorsements. When, however, the en^ dorsements are sans garantir (without guarantee), the trouble being small and there being no risk, there may be little or no Commission charged. Brokerage is usually double ; that is, paid by both the seller and the buyer of the bills. It is sometimes objected to by the former when selling at a low price,^ or more often by the latter when buying at a higher price than he would otherwise give ; and it is some- times avoided when the course of exchange is unfavour- able by returns being made by drafts of the correspondent. In the principal places of Europe the rate is 1-lOth per cent. ; but it is sometimes l-4th per cent., and even higher, w^hen it is for the negotiation of bills having an unusually long time to run. These are the general points which seem to ri*c]uire anv notice on bill transactions. Particular regulations are dependent upon the customs of various places and upon the stringent laws which all states have established in order to give confidence in the due performance of the obligations contained in these great agents of com- mercial settlements. Various legal writers of eminence have employed their talents m clasfdfying and expound- ing the numerous decisions upon these matters in our courts of law ; but the best work on the subject is, A Practical Treatise of the Law of Bills of Exchange, I^iomissory Notes, Bank Notes, and Cheques, by the Right Hon. Sir John Bernard Byles ; fourteenth edition, 1887, published by Effingham Wilson & Co., Royal Exchange, London* BANKING OPERATIONS. 335 Many houses of business have some peculiarities in their modes of arrangement of the forms in which the statements of arbitrated pars of exchange are made out. Instead of making separate statements for the direct rates, some introduce them into the general statement, and apply, as it may be said, mentally the brokerages and commission. The prices of bills at short sight are also frequently taken into account, for the purpose of trying whether they would be more advantageous than those at the usual tenor of bills employed m exchange operations. It is by some the practice to give the arbi- trated rates of exchange produced from the prices of bullion, and the range of investigation is, in some in- stances, further extended b}^ adding tlu' same for transac- tions in the public bonds and stocks of other countries. The omission of these particulars may be considered a defect ; but m a work of this nature it could not properly be expected that every possible variation should be ex- hibited, or every possible desire for information antici- pated. The formula of some of our principal houses of quiet exchange business, both under the old and new monetary systems of the Continent, has been followed as the best guide that could be selected , and it is trusted that, from the explanations of the general principles given in this and the preceding sections, no difficulty will be found which a student of ordmarv intelligence will not be able to overcome in a short space of time. Arbitrated Bates of Exchange. We now give several Course of Exchange Lists and an explanation of the moneys of the present monetary systems, with the Arbitrated Pars for Pans, Amsterdam, and Hamburg. These exchange pnces var\" of course 336 A COUNTING-HOUSE GUIDE. from day to day, and are here given as average or definite prices, simply to guide the reader in his operations. LONDON EXCHANGE. France - - Short and 3 mos. 25*25 Fr. and Cts. Netherlands - ■ “ >> 12 3 FI. and Stiv. Belgium - ■ " »» 25*30 Fr. and Cts. Italy (Gold) - - Short and 3 nios. 25 40 Lire and Cent. Italy (Paper) - 3 mos. 28*10 „ ‘Germajiy 20 55 Imp. Mks. and Pf. Austria - 1 J 11 75 FI and Neu-Kr. Spain * 48d. Hard Dollar. Portugal - .’)2d. i\f Hihcis. Russia H 30d lt>' Rouble. New York - rhght. 48d. Dollar. Hong Kong *■ " 11 46d. ^ Dollar. Shanghai * ■ 11 G2d. Tael East Indies " ■ 11 20d Rupee Rio de Janiero " " 11 2Gd H Milreis (Brazilian), The first five rates are for £1 sterling. Hamburg, Frankfort, and Berlin are included in (-rermany ; Kome, Genoa, Naples, etc , in Italy ; Amsterdam and Itotter- dam 111 the Netherlands ; Brussels and Antwerp in Belgium ; Vienna and Trieste in Austria. We have preferred giving the names of countries. Example 1. Eemittances to Paris The rates of three months’ bills in Pans being con- sidered as follows, and those in London of the same tenor, being as in the preceding course, it is required to find whether any indirect bills will be better adapted for remittances to Pans than direct paper, and whether, for returns, London should draw upon Pans, or Pans remit ABBITBATED BATES OP EXOHANOE. 337 t to London in either direct or indirect bills, the charges being one brokerage on each operation, with a commis- sion of J per cent,, and the rate of interest in London being 2 per cent., and in Paris 3 per cent, per annum. PARIS EXCHANGE. liondon - • - Short and 8 mos Ft c 25 20 per Sterling. Belgium > - »> 99 50 „ 100 Francs. Italy - * »> 89 50 ,, 100 Lire (paper) Netherlands - - - 8 mos. 211 50 ,, 100 Florins Germany - 122 50 „ 100 Mks. Austria - - 210 ,, 100 Florins. Spain - " >» 505 „ 100 Pesos. Portugal - 550 ,, 100 Milreis. Russia * - 812 ,, 100 Roubles Equations tor Arbitrated Pars WITH Paris. Belgium Austria 1 1 k‘> 1 - -* 25 80 Fr. and C. 1 - U75F1. &Neu 100 - - 99 50 100 - 210 Fr Itesult, 25 17i Result, 24 07^. Italy. Spam 1 240d 1 - 2S 10 Lire and Ct. 48 1 Peso. 100 - 89 50 Fr and C 100 - 505 Fr. Result, 25 15. Result, 25 25. Nethei lands. Portugal. 1 240d ^ 1 - 12 i FI and St. 62 1 Milreis. 100 - - 211 50 Fr. and C 100 - 550 Fr. Result, 25 08 Result, 25 38. Germany Russia 1 240d. 1 - 20 55 Mks. and Pf. 30 1 Rouble. 100 - - 122 50 Fr and C 100 - 812 Fr. Result, 25 17 J. Result, 24 96. 22 338 A COUNTING-HOUSE GUIDE. AKBITRATIONS FOR REMITTANCES AND RETURNS WITH PARIS. Paris on London. For Returns @ 3 months ... - 25 20 Interest, 2 °l^ - m * - - - 12J 3 Brokerages - - - - 7i 20 25 40 Commission, 1 7o - - - H Pm. 25 48i Belgium Pans. Fr. C. 99 50 London 25 30 Fr. & C. Pars. Fr C. 25 17J Italy - . . . 89 50 28 10 L. & C. 25 15 Netherlands - 211 60 12 3 FI. & St. 25 63i Germany 122 50 20 55 M. > » 340 A COUNtriNG-HOtrSE GUIDE. AMSTEBDAM EXCHANGE. London, short and 2 mouths FI. C 12 05 ^ £I Sterling. France, >» »» 47 „ 100 Francs, Belgium, short and 3 months 47 60 „ 100 Francs. Germany, n 'j n 59 „ 100 Imp. Mks. Italy, ft 11 fi 43 „ 100 Lire. Austrifi, 3 months - 102 „ 100 Flor. (A.) Russia, ft - . - . 150 „ 100 Roubles. Equations ior Aubitrated Pars ^^TTH Amsterdam France. Italy 1 1 42^ 1 - 25 25 F C 1 - 28 10 L C. 100 47 FI. 100 43 FI Result, 11 8ry7. » t Result, 12 08 3 Belgium. 1 1 Austria. 1 .€'> 1 I 1 £? 1 - 25 30 F C. i 1 - 11 75 FI. K. 100 - 47 50 FI C ; 100 102 FI. Result, 12 01 7 j Result, 11 98*5 Ge^man^ 1 » Russia 1 £? 1 240 d. ’ 1 - 20 55 AI Pf. , 30 1 Rouble. 100 59 FI 100 ir>() FI Result, 12 12 4 Result, 12 00 ARBITRATIONS FOR REMITTANCES AND RETCRNS WITH AMSTPIRDAM Amsterdam on London For Returns C(f 2 mos 12 5 Interest, 2 - - - 4 3 Brokerages - - - 3-0 - 7*6 12 12 G Commission, 4- P^loims J2 IGG ABBITBATED BATES OF EXCHANGE. 341 Amsterdam Pars FJ c London Fl. c Prance - 26 26 Fr c. 11 86*7 Belgium 47 60 25 SO 12 1-7 Germany 59 1 20 66 M pf 12 12-4 Italy - 43 I 28 10 L. c. 12 8-3 Austria 102 11 75 FI. k. 11 98-5 Russia < 150 30d.p Rble 12 London on Amsterdam FI c FI St For Remittance 8 mos. - 12 15 = 12 3 Discount ^ 2^ 7o - 7 59 Less 1 Brokerage - 1 21 — 06 38 12 8‘62 If, for Bills on Berlin, realising (after discount) • 12 10* Returns are made in Bills on Pans at cost (after discount) of 11 88 7 With 4 Brokerages, - - - - 4 8 And Commission, J °/o ‘ • - 5 9 10 7 11 94-4 The profits will be - - 15*6 or nearly l/’^ per cent Example 3. Eemittances to Hamburg The rates of bills in Hamburg being considered as below given, and those in London being as in the pre- ceding course, with the same charges and rates of interest as in the last example, it is required to find the best direct or arbitrated rates for remittances and returns. 342 A COUNTING-HOUSE GUIDE. HAMBURG EXCHANGE. Mks. pf London Short and 2 mos. 20 42 per £1 Sterling. France 3 mos. 81 „ 100 Francs. Belgium 80 25 „ 100 Francs. Netherlands 169 50 „ 100 Florins. New York - - - ,, „ 100 Dollars. Austria 3 mos. 175 ,, 100 Florins. Italy - - ■ - 1 75 „ 100 Lire. Portugal 460 „ 100 Milreis. Spain • 412 100 Dollars. Equations for Arbitrated Pars WITH Hamburg. France. ' Austria. 1 £? 1 £9 1 - - 25 26 F. c. 1 - - 11 76 FI kr. 100 81 M. 100 - 175 M Result, 20 45. Result, 20 66. Belgium. Italy. 1 1 £*? 1 - - 26 30 F. c. 1 . 28 10 L. c. 100 . - 80 25 M pf. 100 - 75 M. Result, 20 30, Result, 21 07 Netherlands Portugal 1 £9 240 d. ? 1 - - 12 16 FI c. 62 - 1 Milr. 100 - 169 50 M. pf. i 100 - - 450 M. Result, 20 59. i Result, 20 76 New York. Spam 240 d ’ 240 d. ? 1 00 1 Doll. 48 - - 1 Doll. 100 . - 413 M. 100 - . 412 M. Result, 20 65. Result, 20 60 ARBITRATIONS FOR REMITTANCES AND RETURNS WITH HAMBURG. Hamburg on London. For Returns 2 mos. - - 20 42 Interest, 2^/^ - - . - - 0-8 3 Brokerages - - - - - 6 12 8 20 64 8 Commission, ] - 6-8 20 61 -6 abbitrated bates of exchange. 343 France Hamburg. M. piT 61 London. 25 25 F. c. Pars. M. pf, 20 45 BeMum - 80 26 25 30 P. c. 20 30 Netherlands 169 60 12 16 PI. c. 20 69 New York - 413 48d. ^ Doll. 20 65 Austria 176 11 75 PI. kr. 20 66 Italy - 76 28 10 L. c. 21 7 Portugal - 450 52d. ¥ Mil, 20 76 Spain 412 48d. ^ Doll. 20 60 London on Hamburg. For Remittances at 3 mos. > Discount, 2J °/o Less 1 Brokerage > 20 66 - 12-8 - 2 * 10-8 20 44*2 After allowing for discounts it will be found that, according to the above Arbitrated Bates, bills on Italy are supposed to sell, after pasnng all expenses, at a good profit, which would be much increased by making returns in bills on Brussels or Antwerp. THE FOBEIGN COUBSES OF EXCHANGE. ANTWERP EXCHANGE. London - - ! Short or 3 mos. Fr c 25 20 per £1 Sterling. Prance 99 50 „ 100 Francs. Netherlands 50 „ 100 Florins. Germany - 123 „ 100 Marks. Italy - 89 „ 100 Lire (paper). Spain 6 10 „ 1 Peso (or 5 Pese- Portugal - 6 60 tas). 1 Milreis. London - BERLIN EXCHANGE. Mks pf 8 days & 3 mos. 20 40 per £1 Sterling. Prance 8 days A 2 mos. 81 ' „ 100 Francs. Netherlands 169 60 1 ,, 100 Florins. Belgium > 81 ' „ 100 Francs. Austria 176 1 „ 100 Florins. 344 A COUNTINa-HOUSE GUIDE. VIENNA EXCHANGE. FI kr. London - - < 3 moh. 117 60 per £10 Sterling. France - - | »» 40 50 „ 100 Francs. Netherlands - ' 47 60 „ 100 Florins, N. Belgium - - * n 46 50 „ 100 Francs. Germany - - , 69 20 „ 100 Imperial Mks. Italy- - - 1 42 10 ,, 100 Lire (paper). ITALY EXCHANGE. Lire Short & 3 mos 28 per £1 Sterling. „ 110 „ 100 Francs. 133 „ 100 Imp. Mks. 217 „ 100 Florins, A. NEW YORK EXCHANGE. UoU J Cable Transfers at ' j ^ per £1 Sterling. ( sight & 60 days j „ ,, 1 „ 5 18 Francs. - 1 „ „ 41 „ 100 Florins. - „ „ 95 1 400 Imp London - Paris Amsterdam Hamburg - London > France Germany - Austria To assist the reader m his calculations of the relative values of various moneys, we here give several tables^ which may be useful, viz . : — (1) The Coins of Foreign Countries, with approximate value in English money ; (2) the Exchange Value of the chief foreign moneys compared with English £ s. d. ; (3) French and English money ; and (4) American and English money THE FOBEKJN COTJBSES OF EXCHANGE. 345 THE COINS OF FOKEIGN COUNTBIES, WITH THEIR AP- PROXIMATE VALUE IN ENGLISH MONEY * Gold (G) ; Silver (S) ; Copper (C) ; Bronze (B). America. S D 1 Eagle (G) = 10 Dollars - 41 0 1 Dollar (G) = 100 Cents - 4 1 1 Dime (S) = 10 Cents - 0 5 1 Cent (C) - - - - 0 OJ Austria-Hungary. 1 Ducat (G) - - - 9 4 1 Florin (S) = 100 ivreuzers 1 1 Ten-Kreuzer Piece (S) - 0 1 Kreuzer (C), nearly 0 0| Belgium. 1 Twenty-Franc Piece (G) - 15 10 1 Franc (S) = 100 Cents - 0 OJ Denmark. 1 Frederick d’Or (G) - - 10 3 1 Crown (G) ^ 10 Kronors - 10 ll| 1 Kronor (S) — 100 Ore (B) 1 Franck 1 Napoleon (G) 20 Fis (S) 15 10 1 Franc (S) = 100 Cents - 0 9A 1 Five-Centimes (B) = 1 Sou 0 0^ German Empire. 1 Crown (G) — 10 Marks - 9 9J 1 Prus Thaler (S) .^3 Marks 2 11 1 Mark (S) — 100 Pfennige 0 ll^* 1 Twenty-Ptenmgc Piece (S) 0 2^ Holland. 1 Ten-Flonn Piece (G) - 16 8 1 Ducat (G) = 5^ Flonns - 9 7 1 Florin or Guilder (S) = 100 Cents - - - 1 8 1 Two-and-a-half-Cent Piece (B) 0 04 1 Twenty-Lire Piece (G) - 15 10 1 Lire (S) = 100 Cents - 0 OJ 1 Five-Centimes Piece (B) - 0 OJ Portugal. . 1 Gold Half-Crown = 5 Mil- reis - - - - 22 1 Crown — 1 Milreis (S) - 4 5^ Russia 1 1 Imperial (G) = 10 Roubles 32 1 1 Rouble (S) - 100 Kopecks (C) 3 2 i Doubloon (G) = 100 Reals 20 6 1 Dollar (S) 5 Pesetas = 20 Reals - - - - 4 0 I Peseta (S) -4 Reals — 100 Ceu times - - - 0 Of I Ten-Centime Piece ^B) - 0 1 N B — This Table gives only such coins as will enable the student to understand their relative values. The English equivalents are given as near as English coins will allow. 346 A COUNTING-HOUSE GUIDE . Monetabt Tables, with the Appboximate Pabs OF Exchange. We now set before the student a series of Monetary Tables and the approximate pars of exchange with British moneys, and shall then proceed to give exchange lists for London, Paris, Amsterdam, Hamburg, Berlin, Ant- werp, Vienna, Italy, St. Petersburg, and New York, with some of the equations worked out. 1. Great Britain. 1 Pound = 20 Shillings = 240 Pence = 960 Farthings. 1 Shilling = 12 „ = 48 „ 1 Penny = 4 ,, 2. France. 1 Franc = 100 Centimes. If the Par of Exchange be taken at 25 26, then Fi 25 25 cents = £1, and 1 Fr. = 9Jd. 3. Belgium. Same as France. 4 Switzerland. Same as France 6, Netherlands. 1 Florin or Guilder = 20 Stivers = 100 Cents. 1 Stiver = 6 „ Approximate Par . FI. 12 = £1 , 1 FI. = Is. 8d. Exchanges are made in Florins and Cents , but in London custom retains the Stiver. 6. German Empire. 1 Beichsmark or Mark = 100 Pfennige Approximate Par. Marks 20 43 Pf. = £1. ; 1 Mark = 11 jd. 7. Austria. 1 Florin = 100 Kreuzers. Approximate Par FI. 11 76 Neu-Kr. = £1. , 1 FI. = 20id. 8. Spain. 1 Peseta = 100 Centesimos. Approximate Par Pesetas 25 = £1 ; 1 Pea. = OJd. or OJd. MONETAET TABLES. 347 N.B . — By a decree of 19th October, 1868, the money of Spain was assimilated to that of France, Belgium, Switzerland, and Italy — the Peseta of four reals, con- sidered as equivalent to a franc, being taken as the monetary unit. 9, Portugal. 1 Milreis = Cruaados = 25 Reals = 1000 Reis. 1 „ =10 „ = 400 „ 1 „ = 40 „ Approximate Par 4J Milreis = £1 ; 1 Milreis = 63Jd. 10. Italy. 1 Lira Italiana — 100 Centesimi. The approximate Par of Exchange being the same as that of France, Lire I. 25*25 = £1 ; 1 Lira I. = 9Jd. 11 Greece. 1 Drachme = 100 Lepta. Approximate Par . Dr. 28*25 = £1,1 Dr. = 8Jd. 12. Denmark. 1 Kronor = 100 Ore Approximate Par : Kr. 18 18 Ore = £1 ; 1 Kr. = 13Jd. 13. Russia. 1 Silver Rouble = 100 Kopeks Approximate Par . Silver Rouble 6 40 Kopeks = £1,1 Silver Rouble = 37 Jd. 14. New York. 1 Dollar = 100 Cents. Approximate Par Dollar 4 86 Gents, (taken as 4*84 per tariff) = £1 ; 1 Dollar = 49 Jd. 348 A COUNTING-HOtrSE GUIDE. ( < > EXCHANGE VALUE OF FOKEIGN MONEY. Subject to Fluctuations in the Kate. Knglish Amer Fi ench (lernian 1 Put^h- s d (1 c. f c HI P fi k. English Sovereign - 20 0 4 38 26 20 20 40 12 60< „ Shilling 1 0 0 24 1 25 1 0 0 60 French Napoleon - 15 10 J 86 20 0 16 16 9 42 „ Franc - 0 0 19 1 0 0 80 0 47 German 20-Marlv Piece 19 6 4 76 24 70 20 0 12 20 Mark - 0 Hi 0 24 1 24 1 0 0 57 Holland 10-Guldon Piece - 1 16 4 4 0 20 70 16 65 10 0 „ Florin 1 0 40 2 15 1 70 1 a Danish 20-Kron Piece 21 9 6 30 27 40 22 25 13 10 „ Kronor 1 1 0 27 1 .30 1 13 0 65 American Dollar 1 1 0 5 0 4 10 2 40 Spanish Dollar I 3 11 0 94 4 96 3 98 2 30 „ Peseta - - - i 1 0 0 19 0 95 0 70 0 40 FRENCH AND ENGLISH MONEY. s (1 s d t s d 5 Cents, 0 04 4 Fiancs, 3 20 Francs, 0 16 a 10 n 0 1 5 >» 4 0 30 »» 1 4 a 60 n 0 4/ 0 4 94 40 »» 1 12 a 76 n 0 74 7 »> 5 V 50 )» 2 0 0 1 Franc, 0 94 8 6 100 >» 4 0 0 2 »» 1 74 9 * 7 2i 131 Fr 77 r , 5 5 5. 3 jt 2 10 It 8 0 ENGLISH AND FRENCH MONEY. « s d Fr. c i: b d Fr. (• * € S a Fr. c. 0 Oi 0 0 1 0 1 26 2 0 0 60 O' 0 04 0 5 0 2 0 2 60 2 10 0 62 60 0 Oi 0 74 0 3 0 3 75 3 0 0 75 0 0 1 0 10’* 0 4 0 0 0 3 10 0 87 50 0 2 0 21 0 5 0 6 25 4 0 0 100 0 0 3 0 61 0 10 0 12 50 4 10 0 112 50 0 4 0 42 0 15 0 18 75 5 0 0 125 0 0 5 0 52 1 0 0 25 0 5 5 5 ] L31 77 0 6 0 62:^ 1 10 0 37 50 AMERICAN AND ENGJ. ISH MONEY s (1 t s (1 c d 5 Cents, 0 4 Dolb , 0 16 0 20 Dols , 4 2 4 10 0 5 5 . 1 0 7 10 If 6 3 5 50 2 OS 6 » J 1 4 8 40 9 1 8 4 7 75 ft 3 Oi 7 1 8 10 50 10 5 9 1 Del , 4 1 8 M 1 12 11 100 ff 20 11 a 2 8 3 9 » > 1 17 0 122J ft 25 4 3 12 4 10 4 « 2 1 2 MONETAB¥ TABLES. 349 ENGLISH AND AMERICAN MONEY. d. T)o1h. (•t». 8 d. DoLs eta £ s d Dels. CtH. 0 1 0 2 1 0 7 0 1 70 8 0 0 14 58 0 6 0 12 i 0 8 0 1 94 4 0 0 19 44 1 0 0 24 0 9 0 2 IS 5 0 0 24 30 2 6 0 60 0 10 0 2 4-1 6 0 0 29 16 S 0 0 72 1 0 15 0 H 04 ! 7 0 0 34 2 4 0 0 97 u 0 0 4 86 8 0 0 38 88 ■5 0 1 21 1 10 0 7 29 9 0 0 43 74 6 0 1 45 0 0 9 72 10 0 0 48 60 Mint Pars. Besides the Arliitrated Pars of Exchange between dif- ierent countries resulting from the prices of gold and silver, there is what is called the Mint Par, fixed by law, representing m countries which possess theGold Standard the number of units of coins which contain the same quantity of pure gold as the sovereign In these coun- tries the price of bar gold cannot differ much, by premium or discount, from its mint price The Mint Pars, or rather the Pars resulting from the prices of bar gold, govern the short exchanges between England and the countries which have adopted the gold standard — France, the Netherlands, Germany, Portugal, the Scan- dinavian countries, and New York. The tw’o limits between which the short exchanges can fluctuate are found, the one by adding to and the other by subtracting from, the mint par the cost of transhipment of gold from one place to the other. Those units are called the Specie Points,'’ or “ Bullion Points,” and are of great importance to the commercial world, as they govern the question of export or import of gold. 350 A COUNTINGWIOTJSB GUIDE. The Mint Par for Paris is thus found £1,869 = 480 oz. Troy, ^ Stand. Oz. Stand. 1 = 31 10349552 Grammes Gr. Stand l2 ~ 11 Grammes Fine. Gr. Fine, 900 = 1,000 Grammes French Coin. Gr. 100 = 8,100 Francs. Thus abbreviated and worked by chain rule : — 4 X 31*10349552 x 11 x 31 _ p •» Xsi^xT ^ For all practical purposes, say francs 25 22^ centimes^ As “ Specie Points,” therefore, may be taken the Short Exchanges, fr. 2511 and fr. 25*33 ; and at the fornier rate gold would be shipped fmn Lmidon to Pans, and at the latter rate from Pans to London. The following are the mint pars and specie points for the countries of the gold valuation : — Mint Pars Specie-Points. Pans - - - - Fr. 25 2215 1 Fr. 2511 and 26-3S Amsterdam - • - FI. 12 107 ! FI. 12 02 „ 12*17 Berlin - - • - Mks. 20*4294 Mks 20*31 „ 20*53 Lisbon - 53 285d Copenhagen - - - Kroii IH 1595 Kr 18*03 18*26 New York - - - $4*8065 $4 83 e. 4*90 N.B — Belgium, Switzerland, and Italy, are the same as in France. GOLD AND SILVER COINS, 351 CHAPTEK XVIL GOLD AND SILVER COINS. The following is a list of Gold and Silver Coins of a- stated full weight and Assay Eeport. We have given, the calculations of their fine and standard weights and their sterling value up to two decimal-places of pence, and would advise the reader to work some exercises for himself. We give the Calculations of the French Napoleon as an additional example for gold : — 4 dwts 3^ gr = 99*5 gr. 99 5 < 900 Qo RK xp \XT \ 4. — TTwv ~ ^9*55 gr. Fine Weight _ 97 69 gr. Standard Weight 11 6 t, 97 69 = 4 dwts. 1*69 grs. (o' 77^. 10^-d per oz = 15s. 10 19 and the calculations of the Prussian thaler as another example for silver : — 11 dwts. 20 grs. 284 grs x 6 _ 284 - 7 67 = 40 7*67 Worseness 276*33 Standard Weight. Weight 256*60 grs. at 6s. per oz. = 2s. 10 54 -362 A COUNTING-HOUSE GUIDE. Gold Coins. Full weight and reported fineness ; with their fine and standard weights, and value at 778. 10|d per ounce standard , Full \vt. , Fine- 1 Fine Wt 1 1 St Wt Value. 'dwts grs 1 uess Rrs 8 d. French Napoleon - ’ 1 ^ H i ; 900 89-55 97 69 15 10 19 German 20 M -pee. , - I 5 21 1 1 900 110 25 120 27 19 6-15 Dutch 10 Flor -pee “ ! ^ 7 900 92 70 101-17 16 4 88 Russian ^ Imperial - 1 4 917 91-21 99 50 16 171 American ^ Eagle - - i 5 9 : i 900 110 10 120-05 20 6 58 Spanish Doubloon - il7 8^ ' ' H70 302 30 395 30 04 1-60 Silver Coins. Full weight and reported worseness, with their fine and standard weights, and value at 5s per ounce standard. ! Full Wt ) W«n*se i 1 Fine Wt 1 1 8t Wt 1 V, alue dwts j Rrs K. d French 5 Francs - lib U 6 i 1 347 17 375 32 ( 3 10 91 Dutch Guilder 1 b 22 8 1 ! 148 01 160 01 i 1 8 Prussian Thaler - 1 11 20 1 6 : 1 255 bO ! 276 33 ! 2 10-54 Russian Silver Rouble - i 13 8 ■ 14 ■ 277 33 ! 299 82 ' 3 1 47 Aust. Species-Thaler (18 1 22 1 360 83 ' ' 390 09 . 4 0-76 Spanish Pillar Dollar - 17 7 : 372 66 ! 402 88 ’ ! 4 2 36 Mexican Dollar ' 17 11 65, 376 99 ! 1 406 73 i ^ 2 84 Peruvian Dollar - 17 7^ , 373 08 , 403 32 1 4 2-41 United States Dollar 17 8 8 > 370' -93 401 -01 J 4 2 12 Calcutta Sicca Rupee - 8 0 9 1 17b (K) , 190 27 ' 1 11 78 Mad. Rupee (N Gov ) - 7 12 9 ' 165 00 178 37 ’ 1 10-29 N.B — The Mexican and Peruvian dollars are those of 1833, and the United States dollar of 1792. BULLION. 353 CHAPTEE XVIII. BULLION. Bullion means gold and silver in bars, ingots, dust, small pieces, old coins and medals. Gold and silver are sold at so much per standard ounce, and owing to a varying proportion of alloy the gross weight of any parcel of bullion will almost always differ from the standard weight. The purity is found by a process called an assay, in which an arbitrary pound weight is employed. To standard gold or silver is to convert the given gross weight of any other purity than standard into its equivalent standard weight from the assay report of its quality. Standard gold is a mixture of metal containing eleven parts of pure gold, with one part of alloy. Its standard purity is \l, or 0'916if. Standard silver contains thirty-seven parts of pure silver, with three parts of alloy. Its standard purity IS ll, or 0*925. The betterness indicated by B, or worseness indicated by W, of gold or silver is the weight ot the quantity of alloy to be added to or taken from the full or gross weight, ill order to reduce it to the standard weight. In whatever state gold is found it is mixed with a greater or less quantity of silver. Native gold contains from 65 to 99 per cent, of gold, palladium gold con- tains about 86 per cent., and rhodium gold from 59 to 66 per cent. Silver is usually accompanied with gold, but there are some exceptions, particularly when it is 23 354 A COUNTING-HOUSE GUIDE. extracted from lead and other inferior metals. When the quantity of silver in such mixtures is very small in comparison with the gold, it is often disregarded or treated as alloy ; and when the comparative quantity of gold is so minute as not to be worth the expense of extracting, it is reckoned as being silver. Mixtures of gold and silver are called partings When gold IS greater in quantity the mixture is called a gold parting, and when silver is the greater, a silver parting. Gold IS weighed at the Bank of England and by private dealers by the ounce, divided into 1,000 parts, but not to a greater nicety than *025 ; and silver by the ounce, divided into tenths, but not lower than Currency. We have in this country a Gold CuiTency, the Sovereign being the basis of all money exchanges. Both silver and bronze coins are circulated, but they are known as Token Money, because they only represent fractions of gold coins, and are not intrinsically worth tlieir free value. Legal Tender. K legal tender of money in this country is gold up to any amount, silver up to forty shillings, bronze up to one shilling, and Bank ol England notes up to any amount, but not exceeding the debt to be paid, as no one except the Bank of England is compelled to give change for these bank notes. The following tables give the British imperial standard weights and fineness of the golf and silver coins now in use : — BEITISH COPPER AND BRONZE COINS. 355 BRITISH GOLD COINS. Number in the Standai d Fine Gold ^ Alloy Troy lb. Weight in each in each Gr** Grs Grs 93/^ Half Sovereigns - 61*637 56*500 5*137 46|g Sovereigns - - 123*274 113 001 10*273 Standard. 22 Carats, or 916f Mill., or ll-12th8 Fine Gold. * 9 83i „ „ l-12th Alloy. BRITISH SILVER COINS Number in the Standard Fine Silver AMf»\ Troy lb Weight in each. in each Grs. Grs Grs 264 Threepences 21*8182 A 20*1818 1*6364 132 Sixpences 43 6364 40 3636 3*2727 66 Shillings 87*2727 80*7273 6*5455 33 Florins - - 174 5455 161*4545 13*0909 26lf Half-Crowns - - 218 1818 201*8182 16-3636 131 Crowns - - 436*3636 403*6364 32 7273 Standard 11 oz. 2dwt3., or 925 Mill., or 37-40ths Fine Silver 18 ,, 75 „ „ 3-40ths Alloy, British Copper and Bronze Coins. Fonnerly 1 lb. avoirdupois of copper was coined into twenty-four pence, or forty-eight halfpence, or ninety- six farthings. In 1860 the bronze coinage replaced the copper. It was of less weight, being composed of ninety-five parts copper, four of tin, and one of zinc. 1 lb. avoirdupois of bronze (7,000 grains) was coined into forty-eight pence, or eighty halfpence, or 160 farthings. 356 A COTOTING-HOUSB GUIDE. CHAPTEE XIX. REGULATIONS FOR THE COINAGE OP GOLD AND SILVER. The privilege of coining has in all ages and countries belonged to the Sovereign, and has, in England at least, been rarely delegated to any subject, and in any case in a restricted form — the Crown always reserving the right of determining the standard, denomination, and design of the coins. Previous to 1870 the responsible direction of the coin- ages of this country was entrusted to two controlling officers : (1) the Master and Worker of the Mint, and (2) the Deputy-Master and Comptroller. The former was bound by the conditions of Indenture entered into between the Sovereign and himself to cause the coins to be worked within the “ Bemedies,'' or the limits ot deviation, in either excess or deficiency, from the legal standards. In 1870, on the death of Professor Graham, the Master, and after careful inquiry, it was decided to entrust the actual administration of the Mint to the Deputy-Master ; the office and title of the Master of the Mint to be held ex-officio by the Chancellor of the Ex- chequer for the time being, without salary. The services of a scientific officer were secured by the appointment of a Chemist of the Mint. The Coining, Die, and Melting Departments were made one operative department, and placed under a single superintendent, and under the new regulations the Hon. C. W. Eremantle, C.B., was appointed the first Deputy-Master and Comptroller. THE BEMEDIES OF COINS. 357 The Ebmedies op Coins. The remedies within which the coins are to be worked are : — For Gold - - 12 grains in the pound troy, for weight. ^th carat in 24 carats, for fineness. For Silver - 1 dwt. in the pound, for weight and fineness. These remedies remain virtually the same, but in point of fact the work is executed very far within them, as, for example, in the remedy for fineness the gold coins are not more than of a carat in the twenty-four carats on one side or the other of the legal standard. The coinage of gold is conducted for the pubhc, free of all expense whatever to the parties importing or bringing gold into the Mint, it being open to any person to have any quantity of gold, of not less than £10,000 in value, wrought into com, and redelivered to him, for standard weight of metal the same weight of com, with- out the least charge. It IS a popular error that because gold is coined under the superintendence of public officers, and the Crown, with the sanction of Parliament when any alteration is made, prescribes the standards and current values, that the gold coins are therefore issued by the Government. The fact is the Government coins no gold for itself ; it, hke any individual, procures its supplies, when wanted, from the Bank of England, which alone, for many years, has been the sole importer of gold into the Mint. No claim, therefore, can properly be made upon the Govern- ment (or indeed upon the Bank) to reimburse whatever loss arises from the wear or ill-usage of this coin. The Bank formerly deducted 2id. per ounce for light gold 358 A COUNTING-HOUSE GUIUE. from the £3 17s 9d. per ounce for purchased gold to cover expenses of melting, assaying, and casting into bars for the Mint. But since 1870 the Mint undertake to receive light gold at £3 178. 9d. per ounce, and return the same to the importer at the full Mint price of £3 17s. lOJd. — the loss being only in the deficiency of weight. The nation chooses to have gold for its standard of value. The Bank purchase gold with their notes. The Government works it into coin free of expense, and the Bank issue it to the public in re-exchange for those notes, at a trifling advance of rate, by reason of the gratuitous workmanship, but which advance is barely sufficient to defray the expenses they incur. The loss which individuals suffer, occasionally from lightness of weight, must be considered as a trivial premium paid for the use of this money. The pnvilege of having silver, copper, and bronze wrought into coin is vested solely in the Crown. These metals are supplied to the Mint by orders of the Lords of the Treasury, and as from the higher prices or rates of the coins made from them than the market prices for the same metals, the working of them yields a profit to the Treasury. The coins of these metals, therefore, being issued by the Government, and not being the standards of value, are when much worn at occasional periods either called in, and new coins given for them, or, as at present, the same principle is virtually acted upon, by giving permission to the Bank to select the deteriorated pieces, and obtain those of full weight in exchange. THE TRIAL OP THE PIX. 359 The Trial of the Pyx. i For trial of the weight and punty of the gold and silver coins of this kingdom, about once in three years the Lords of the Privy Council, generally on request of the Master of the Mint, direct the Chancellor of the Exchequer, ex-officio Master of the Mint, to issue a writ summoning a Jury of the Members of the Goldsmiths’ Company of London to meet at the Exchequer Office in order to examine and report upon the pieces of com which have been promiscuously taken (one out of each Journey- weight in every working of the Mint), and de- posited in a box called the Pyx, kept under the custody of the Warden of the Mint, and which box has been brought for examination by order of the Crown. The finished coins are delivered to the mint master in weights called journey-weights. A journey-weight is fifteen pounds troy (901 sovereigns or 1,402 half-sovereigns) of coined gold, or sixty pounds troy of coined silver. The Jury having been sworn, receive their charge from the Chancellor of the Exchequer, and proceed to count, register, and weigh the whole of the pieces of each sort of money, in order to ascertain what, if any, has been the deviation from the legal or standard weight. This done, the Jury proceed to Goldsmiths’ Hall, taking a few of the pieces in order to assay the metals, by trying their purity against portions of the standard trial plates furnished to them at Westminster, Upon the accuracy of these trial plates depends the purity not only of our coins, but also of the manulactures of gold and silver throughout the kingdom , for, practically speaking, the term standard denotes rather an accordance in degree of purity with these plates, than the assumed perfectly 360 A COTJNTING-HOTJSB GUIDE. ft legal mixture of the ^precious metals with their appointed alloys. When this operation has been finished they draw up in writing, and deliver to the Chancellor of the Exchequer their report or verdict upon the result of their investigations. There is no instance upon record of this verdict of the Jury of the Exchequer Pyx declaring that the coins of this kingdom have erred so much from their Standards as to be beyond the limits of the remedies. It is this favourable verdict which gives the Master of the Mint his quietus, and absolves him from the penalties of the Mint indenture, or from suffering fine and ransom at the will of the Sovereign. It constitutes a public attestation of the standard purity of the coins of the realm. From the several trials of the purity, from the numer- ous weighings m bars, plates, blanks, and coins, which the metal undergoes, and from the strict vigilance which is practised by the officers m all departments, the one checking the other, an extent ot exactness is attained which is without parallel, and winch makes the ‘‘Eemedy” a mere nullity. Notwithstanding the delays which these investigations necessarily occasion, such is the powder of the Koyal Mint that, on an emergency, 100,000 sovereigns can be coined in one day , and when more expedition can be easily and safely used, as in the coinage of silver, not being the standard of value, the number of pieces which can be worked is shown by the official statement that in 234 continuous working days there has been manufac- tured the enormous number of 57,960,936 pieces, being at the rate of 247,696 pieces, or 30,962 pieces for each of the eight presses per day. Before the metal is delivered to be melted it is first THE TRIAL OF THE PTX. . 361 <• « assayed by the resident assayer, in order to ascertain from the equivalent standard weight into what quantity of coin it ought to be worked. For the quality of the metal the Master of the Mint is answerable, and with what precision the weights are adjusted may be seen from reports of the jury of the pyx of the exchequer, some of which state that the weight of 1,749 sovereigns contained in the Pyx differed from full or standard weight by only two grains m excess, while the remedy ” of the same would have allowed a difference of 18 dwts. 17 grains. The work of coinage was transferred in 1810 from its old place in the Tower of London to the present Mint on Tower Hill. The head of the Department — the Chancellor of the Exchequer, ex-officto Master of the Mint — has no practical control over the operations and busi- ness of the Mint. The work is in the responsible hands of the lieputy-Master From the Mint the whole of the British Empire and its Colonies (with the exception of Australia) is supplied with coinage. Australia has branch mints at Sydney and Melbourne, and the East India branch mints are at Calcutta and Bombay. Ill addition to the gold, silver, and bronze coins struck for home use, the Mint manufactures gold coins (two dollars) for Newfoundland ; silver coins (50, 25, 20, 10, and 5 cents ) for Newfoundland and Canada, besides bronze (joins for Jersey, and nickel, coins for the West Indies, In the thirteen years 1858-70, the annual average registered import of gold and silver (real value) to the United Kingdom was £27,083,330, the annual average export being £22,095,346 In the same thirteen years the average annual coinage of gold and silver in the 362 A COUNTING-HOUSE GUIDE. Royal Mint was £4,854,661, or nearly equal to the annual excess of imports over exports of bullion which flows in ail this volume through London to and from every part of the globe. < The production of gold has declined of late years frotm the maximum attained after the great Californian and Australian discoveries, but the production of silver has. materially increased, and is generally expected, from the rapid development of metals containing it, to increase in the future. Any permanent depreciation in the value of silver in relation to gold is not anticipated however* Unlike gold, which has one fixed value, the price of silver varies considerably. In the London market from 1833 to 1873 it ranged from 59d. to 62id. per ounce. In 1875 it was 56d., and m 1885 it was at its lowest^- 48jd., at which price there was a profit (the seigniorage} of no less than 36 per cent, upon all the silver coined* The fact of £20,000,000 of German silver being dis- placed by the standard gold coinage of the new monetary system had much to do with this depreciation of silver value. In pages 348 to 349 are given the valuations of the coins chiefly used in commerce by foreign countries,, and their value in English. We now give a table of all the British coins, with their approximate German,. French and Amencan values. The German value is expressed in reichsmarks or marks (M.) and pfennige (pf.) ; the French value, inclusive of course of Belgian and Swiss, is in francs (F.) and centimes (c.) ; the Dutch in guilders or flonns (FI.) and cents (e.) ; the Austrian in flonns (FI.) and kreuzers (kr.); and the American United States value in dollars (D.) and cents (c.). The money of Italy, lire and centesimi, and the money of STANDAED GOLD. 36S Greece, drachmai and leptai, being fairly equivalent to the franca and cents, of France, the table will give the comparative values of British money for those kingdoms also : — APPROXIMATE VALUE OF BRITISH COINS, In German, French, BeiiGian, Swisb, Italian, Greek, Dutch, Austrian, and United States Money. British. German. Gold. 8. d M pf Sovereign - 20 0 20 0 Half-Sovereign - 10 0 10 0 Silver. Crown 6 0 6 0 Half-Crown 2 6 2 60 Florin 2 0 2 0 Shilling • 1 0 1 0 Sixpence - 6 60 Threepence 3 26 Bronze. Penny 1 8 Half-Penny 04 4 Farthing - Oi 2 French, Dutch Austria United etc 1 States. F c FI c FI. kr D. c. 25 20 12 0 10 0 4 84 12 60 6 0 6 0 2 42 e 30 3 0 2 50 1 21 3 16 1 60 1 25 eoi 2 52 1 20 1 0 48 1 26 60 50 24 63 30 25 12 31 15 12i 6 10 1 5 i 4 2 5 24 1 2 1 24 1 04 Standard Gold. The English Mint Standard for gold is twenty-two parts or carats fine in twenty-four parts or carats of metal, so that standard gold contains twenty- two parts of fine or pure gold and two parts of alloy. The carat is a nominal weight, and is divided into four grains. When any parcel of gold is found by the assayer to contain more than twenty-two parts of fine or pure gold in twenty-four it is said to be so much better than standard, and whfen it contains less it is said to be so 364 A COTJNTING-HOUSB GUIDE. much worse. Thus gold which assays 23 carats 2 grains is 1 carat 2 grains better, as shown below : — C. Or. Assay - - 28 2 Standard - - 22 0 = B 12 Gold which assays 21 carats 2 grains would be 2 grains worse, thus : — C Or Standard > - 22 0 Assay > - 21 2 = W 0 2 Now, as gold is always sold at so much per standard ounce, we must, in buying or selling a parcel, ascertain how many standard ounces it contains. This is done by adding the total Betterness to, or deducting the total Worseness from, the gross weight. An assayer reports on the number of parts per thou- sand of fine gold contained in the bar, and the following 18 the formula at present used in calculating the Standard Weight of gold : — As standard gold contains -J4 of fine gold and of alloy, it follows that there are 916| parts of fine gold and 83J parts of alloy in every thousand parts of standard gold. Therefore, multiply the gross weight by the assay report, and divide by 916|, or, what comes to the same thing, multiply the gross weight by the report, add -i\ and point off three decimal places. STANDARD SILVER. 365 Example. What is the standard weight of 800 ounces of gold reported 992 ? 992 800 11)793,600 72,145 865*746 ounces. To reduce Standard Gold to Fine (or pure) Gold deduct -fV from the standard weight. Thus, what is the fine weight of 124 oz. 4 dwts. 16 grs. of standard gold ? Oz8 Dwts Grs 124 4 16 Standard. Deduct A - - 10 113 17 15 Fine Standard Silver. The English Mint Standard for Silver is 11 oz. 2 dwts. of fine silver, with 18 dwts. of alloy in 12 oz. gross weight of metal. Any departure from this standard is also called Betterness or Worseness To find the Standard Weight of Silver multiply the gross weight by the number of pennyweights in the Assay Report of Betterness or Worseness, and divide the product by 222 to find the betterness or worseness. The quotient is then to be added to, or deducted from, the gross weight, according to whether it is betterness or worseness, and the result is the Standard Weight. This is the rule used in standarding silver. 366 A COUNTING-HOUSE GUIDE. Example 1. What is the standard weight of 844 ounces of silver reported better 4^ dwts. ? ^)844 Gross Weight. 3376 422 oz. dwts 222)3798(17 1 or 17 2 Betterness. 222 844 0 Gross Weight. 1578 1554 = 861 2 Standard Weight. 240 Quotient 17*1 or 17 oz. 2 dwts. Betterness, which, added to the 844 oz. gross weight, gives 861 oz. 2 dwts. Standard Weight. Examjtle 2. To find the standard weight in 72 lb. 2 oz. 10 dwts. of silver, reported worse 7 A dwts. Ib oz dwts 4 - - 72 2 10 Full Weight. 7 505 5 10 36 1 5 lb oz dwt« 222)541 6 15( 2 5 6 Worseness. Therefore 72 2 10 Full Weight. 2 5 6 Worseness lb 69 9 4 Standard. oz. 837 4 Standard. N,B . — Silver in bars is not weighed lower than to a quarter of an ounce or 5 dwts. THE PURITIES OF GOLD AND SILVER. 367 Fine Silver. To reduce standard to fine weight, take 3-40th8 of the standard weight and subtract the product. oz dwts Thus 837 4 Standard. 41 17 for 2-40ths. 20 19 „ l-40th. oz. 774 8 Fine. FOREIGN REPORTS OP THE PURITIES OP GOLD AND SILVER. The mode of reporting the purities of Gold and Silver, elsewhere than in this Kingdom, is to state the quantity of fine metal which is contained m the integer of the weight. In France and various other countries, the purity is expressed m milliemes or tenths of milliemes (or 1,000 and 10,000 parts), which is a closer calculation than in England, where thousands and thirds-of-thousands only are given. N,B , — This mode of decimally expressing the purity IS sometimes called touch, but m Indian and Chinese re- ports the integer is commonly separated into only 100 parts, though lower parts are occasionally employed. Ill Germany the Assay Integer was formerly a Mark, divided into 24 Carats each ot 12 Grains for Gold, and into 16 Loths each of 18 Grains for Silver. It is now the Mint Pound, of 500 Grammes, and reports in milliemes of fineness as in France. In Spain and Portugal, and also in the Spanish and Portuguese Settlements, the Assay Mark is divided into 24 Quilates or Carats of 4 Grams, for Gold, and into 13 Dineros of 24 Granos, for Silver. The report is now in milliemes. 368 A COUNTING-HOUSE GUIDE. In the valuation of Gold and Silver in France, the amount is calculated either from the following fixed rates, at Crold. Silver per Kilogramme. Prs 34S7-77 220*00 1000 fine 3094 00 198*00 900 „ emplo5ning the weight of the fine metal ; or from tariff rates, formed from these rates according to the purity, using, m this case, the scale weight of the metal. The variation in price is an additive premium per 1000 or Mille. In German valuations the amount is found from a vanahle price per Mark fine, at Berlin and Hamburg,, and per lb. fine at Frankfort. In Spain and Portugal it is per Mark fine. CHAPTER XX. STANDARDING OF GOLD AND SILVER. As some account of the modes of ascertaining the purities of the precious metals and the regulations under which they are either wrought into com or manufactured into plate will probably be found both useful and interesting, we give a brief outline of the chief particulars concerning them. An assay is defined to be a process m metallurgy to determine either the component parts of the material under investigation, or the relative quantity of one metal which exists in a compound of several metals. In this country an assay of either gold or silver is an analysis to ascertain whether the metal examined is present in sufficient quantity to render the compound equal, in degree of fineness, to its appointed standard, or* whether the precious metal is in too great or too STANDABDING OF GOLD AND SILVEE. 369 small a relative quantity. There is sometimes also a further purpose ; namely, in a gold assay, to find what relative quantity of silver, or in a silver assay, what relative quantity of gold there is in the compound, when, as is generally the case, these two metals are both to be found in the same mass. This is called a parting assay. The first process in either assay is to accurately weigh an assay pound of the flattened metal. In an assay of gold a quantity of fine silver, sufficient to make the weight of the silver equal to three times the weight of gold, is, if necessary, added to the gold, m order to diffuse the atoms of gold through the whole, and to thereby enable the acid used in the second or parting process to act with greater efficiency. The gold thus adjusted is then enveloped m a thin sheet of pure lead and put into a cupel, or small iiorous cup made of bone- ash, which IS placed, and has been highly heated, in an assay furnace. The intense heat soon liquefies the metals, over winch a current of air continually passes, and the baser alloys uniting with the lead form an oxide of lead or litharge, which is either gradually absorbed in the cupel or thrown off m a state of oxidous vapour. When it is observed that the metal, by its. appearance, has been completely purified from those alloys the operation is stopped and the metal is left to cool. The second process in a gold assay is to separate the silver from the gold For this purpose the button of the melted compound is first flattened on an anvil, then passed between two rollers, and the thin ribbon of metal, having been annealed or softened by heat, is. rolled up and forms what is called a coronet or cornet. 24 370 A COUNTING-HOUSE GUIDE. In the meantime some weak diluted nitric acid has been heating in a glass matrass, placed in a sand-bath, into which the cornet is put, and boiled for a time, by which a large portion of the silver is removed ; but as the gold cannot be freed from it by a single Ipreatment with acid it has now to be again boiled with a fresh and stronger acid. The cornet is next washed, first in hot and then cold distilled water, and it is afterwards placed in a small refining pot over the furnace, in order to free it from moisture and to aggregate its particles, by which its colour IS changed from a dark brown to a rich dead- gold colour. These means suffice to clear it sufficiently for all practical purposes, as by making certain com- pensations for the retention of a small portion of silver, and also for the loss of a very small quantity of the gold itself, the actual quantity of fine gold remaining may be perfectly estimated. The weight of this piece of refined metal has now to he tried against that of a check piece, or assay pound, of standard gold, which has undergone a similar process of refining, either at the same time with the assay piece or previously, with acid of the same degree of strength. If the two pieces exactly balance each other, the metal of the assay piece is said to be standard y or, -otherwise, the weight by w'hich it is either heavier or lighter is technically called its betterness or its worseness. This IS one method of weighing. But the more scientific and accurate plan is by adopting a decimal system ; that is to say, the assay pound taken for trial is divided into 1000 parts, and the refined piece is weighed in units and tenths of the thousand. Now as gold ll-12th8 fine for standard) would weigh 916f (say 917), so all weights over this would give “ better ” and all under it “ worse ” reports. STANDABDING OF GOLD AND SILVER. 371 In France the purity of gold is expressed in milli^mes and tenths of milliemes lOOOths and lOjOOOths). England has adopted this form of report, as less cumbrous than that of ‘‘ betterness ” or “worseness"’ in carats and grains, but limits the result to thousandths and thirds of thousandths. The decimal weighing is, however, also converted into the trade expression upon the report paper, as gold and silver are always bought and sold by weights or subdivisions of the pound troy, peculiar to each metal. An assay of silver may be made either by cupellation, as in the first part of the process with gold, or by dissolving it in diluted nitric acid, as in the second part. By the former and most general method the button of refined metal is weighed against a check piece of standard silver which has been refined with it, and which has therefore been subjected to the same disturb- ing influences, and the report of its quality is made in the same manner, though in different sorts of weights, as IS practised in a report of gold. The humid process of assaying silver was formerly little used here, its practice being almost confined to France. It consists in dissolving the assay pound of silver in nitric acid and then precipitating it by measured quantities of a solution of chlonde of sodium : these are added by degrees (briskly shaking the solution after each addition) until cloudiness (or even opalescence) is no longer produced by such addition The solution having been carefully made as to its strength, of course the quantity of silver present is thus readily determined by the quantity of solution used in throwing it all down as chloride of silver. It has been proposed to precipitate all the silver at once by an excess of chloride of sodium and then to collect and 372 A COUNTING-HOUSE GUIDE. weigh the chloride of silver ; but this would be too long a process when many assays have to be made at the same time. The Mints of Great Britain, France, and other Euro- pean states, as well as the United States, have adopted the humid process for the assay of silver, as it deter- mines the value of a silver alloy to within 0‘5 (or half a part) in 1,000. The principal disadvantage of cupellation is the un- certain degree of waste, varvnng from 2 to 8 dwts in the pound troy, chiefly occasioned by some of the silver pass- ing away with the oxidised alloy, so that formerly, when check pieces were not used, and when an arbitrary allow- ance was made by the assayer for waste, it was very common for silver to be reported from a half to a whole pennyweight under its real purity ; but by the employ- ment of these pieces, as near an apiiroximation to mathe- matical accuracy is attained as it seems possible to be acquired. Gold, as has already been observed, is also subject to a slight waste from a small portion of it being earned away in the Avaste of the combined silver ; hut then, on the contrarv% in ordinar} assays about an equal quantity of silver still remains in combination with the gold at the termination of the assay, and cannot be removi^d without much difficulty ; so that, as to the weight of the assayed piece, the one may be considered to nearly compensate lor the other In a parting assay of gold, one assay pound of metal IS refined without quartation or the addition of silver, and when it has undergone cupellation the weight is recorded, with such allowance as the assayer’s judg- ment directs, for lead, which, in this case, on account GOLD AND SILVEE REPORTS. 373 of their great affinity, cannot be prevented from being retained by the gold. Other two pieces are refined as in assays of gold, and the difference between their average weight and the net weight of the former piece is pre- sumed to be the weight of the silver. Two pieces of the same metal are always tried, when the assay is made for any purpose demanding accuracy, whether the assay IS for silver or for gold. The Bank of England (in bars which they purchase for coinage), very wisely, have three pieces tried ; in fact, a triple assay made. In a parting assay of silver, one piece is tried as a silver assay, and another piece, or two other pieces, being tried as in a gold assay, the weight of the gold found IS added to the worseness, or subtracted from the betterness, of the first tried piece, in order to find the standard quality of the silver In parting silver assays, however, the silver being known to be in large excess over the contained gold, it is not necessary to add silver as in an ordinary gold assay. Gold and Silver Reports. As an appropriate conclusion to these remarks, we give the following formulae of gold and silver leports. The assay paper is sent to the assayer containing the sample, and it is marked with the letter or number ot the bar, and also dated wdien delivered to him It also usuallv contains the name of the bullion brc)ker, or other party sending it for trial. The assayer stamps it with his own name, and after trial reports upon the same paper ; thus where a number ot sjiecimens are being assayed, errors are avoided. The first of the following examples is the regular form for these assay papers : — 374 A COUNTING-HOUSE GUIDE. B. & W. 80. June 12, 1900. BbOWNE & WiNGBOVE, Refiners, 30 Wood Street. Gold Double. Wm. Jones, Coleman Street. 996-2 e B. 1 8| grs. Silver Double. | 918-2 W. 0*2 dwts. N.B . — Bettemess = B. Silver Double. Parting, 827-8 W. 1 oz. 8^ dwts. 10-8 Gold 2 dwts. 14 grs. Gold Double. Parting, 883-0 W. 0 3i grs. 104-0 Silver 1 oz. 41^ dwts. WorsenesB = W. As it sometimes occurs that the gross and standard weights are given in statements, without the rates of bettemess or worseness, it may be serviceable here to show the manner in which, by reversing the analogies, these rates may be found. For this purpose we will take a recorded instance. One of the parcels of sycee silver (received in part pay- ment, at the close of the war with China), after it had been melted with some of the dollars, and the gold extracted, weighed at the Mint Office 9,300 lb. 1 oz. gross, and was estimated as being 9,998 lb. 6 oz. 5 dwts. standard. Sycee is the colloquial pronunciation of the phrase Se-sze, which is strictly applicable to signify fine silk, but which is also used to mean pure silver, intima- ting that it may be drawn out as fine as silk. It con- tains gold amounting, on an average, to about 12 or 13 grains in the pound troy, and the ingots or shoes of this silver are stamped with the name of the reigning emperor, and the designation of the refiner, who is answerable for its purity. GOLD AND SILVEB REPOETS. 375 Eejecting the ounces and pennyweights as of no im- portance, and subtracting the gross from the standard weight, the betterness is 698 pounds. To find the rate of betterness, we then make a proportionate statement, bringing out the following result. As 9,300 lb. . 698 lb. . : 222 dwts. . 16*66 dwts. Showing the Betterness to be above 16^ dwts. In like manner the rate of gold may be found by taking the difference between the two weights, and saying— As the gross weight is to this difference, so are 22 carats to the rate of betterness or worseness — the follow- ing being an example of 1,100 oz. = 1,025 oz. standard : — oz varats. carats As 1,100 . 76 : 22 1*6 Showing the Worseness to be 1^ carats. A calculation derived from actual operation, and possessing some general interest, will explain the former manner of estimating the rate per ounce paid for light sovereigns in order to correspond with the Bank of Eng- land buying rate of 77s. 9d. per ounce standard for bar gold. One thousand ounces light gold com were melted into five bars, and the assay report of them was — Worse l-8th of a Carat Grain. Silver 7 dwts. in the Pound. No value was given for this small proportionate quan- tity of silver, because when the silver in bars of gold was charged for, an allowance of 4s. per lb. was made for the expense of extraction. 376 A COUNTING-HOtrSB GUIDE. The loss in melting and the charges were as given below ; — oz. lb. oz dw grs. 1,000 = 88 4 0 0 Gross. 12 0 Loss in Melting. 83 3 8 0 18 9 Worseness. lb. 83 1 19 15 = oz. 997 19 15 Standard. Oz. 997 19 16 at 77s. 9d. ¥ oz - 453,879 13 2 Charges. Melting at 6d. ^ lb Less Scrapings 5 Assays at 5s each - Porterage - -£218 - 0 16 0 15 8 - 15 0 - 0 2 G 2 13 2 Net £3,877 0 0 £3,877 on 1,000 oz. - 77s 6Jd. ■Ir? oz. N,B — On page 35S we have shown that hy a recent regulation the Mint now receives light gold, by weight, at 77s 9d., and delivers at 77s. lOJd. without charges, so that the loss is m the weight only. CHAPTER XXT THE STANDARDS AND REGULATIONS FOR MANUFACTURES OF GOLD AND SILVER The standards which have been established bv Acts of c Parliament for the purities in this kingdom of manu- factures of gold and silver are two for each metal. The first enactment for the purities ot wrought gold and silver was in the second year of the reign of Henry VI. ; but it is usual to refer to the Act of the eighteenth of STANDARDS AND REGULATIONS. 377 Elizabeth for the establishment of the standards of 22 carats for gold and 11 oz. 2 dwts. for silver. The purity of 18 carats for gold was allowed to be used by an Act of the thirty-eighth of George III., and that of 11 oz. 10 dwts. for silver was ordered to be employed as the lowest fineness for silver ware, by an Act of the eighth of William III., in order to prevent, it was supposed, the melting down of the new silver coins. The latter Act was repealed by another of the sixth of George I , which restored the old standard, but still allowed the new standard to be used at the will of the manufacturer. For Gold. 22 carats fine ; and 18 carats fine m the pound troy. Three other Gold Standards have been allowed for articles of jewellery, in order to admit of competition with foreign jewellers, viz,, The value of the various IS — Pure Gold, 24 carats, Standard, 22 ,, 2nd Standard IS ,, 3rd „ 15 4tli „ 12 „ Sth „ 9 „ 9, 12, and 15 carats standards of the pound troy 4, s (1 - 4 4 Hi - 3 17 104 - 3 3 si - 2 IS 1 . 2 2 - 1 11 104 For SlLYEK 11 OZ 2 dwts. fine; and 11 oz 10 dwts fine m the jiound troy The latter standard (of eighth William III ) IS rarely used No article of gold or silver, unless exemjited from being assayed, is allowed to be wrought of a less fineness than the lower of the respective standards 378 A COUNTING-HOUSE GUIDE* For testing the purities of wrought gold and silver^ different assay offices have been appointed in various parts of the United Kingdom, the Corporations/ or Gold- smiths’ Companies of which have jurisdiction over the manufactures of these liietals in their separate districts. They now are those of London, Edinburgh, Dublin,. York, Exeter, Chester, Newcastle-upon-Tyne, Birming- ham, Sheffield, and Glasgow. Of these places, York, Exeter, and Chester were appointed by an Act of the eleventh and twelfth of William III ; Bristol and Nor- wich were also appointed, but no use has been made m these places of this privilege. Newcastle was added, as an ancient place of touch m the first year of the reign of Queen Anne ; and Birmingham, Sheffield, and Glas- gow were created assay towns by Acts of the thirteenth and fifty-ninth of George III. The first legislation on the subject was in 1300, when the Leopard's Head was ordered to be marked upon all sterling articles of gold and silver. When the Company of Goldsmiths was incorporated in 1327 by Edward III., the Leopard's Head was borne on the shield as the dis- tinguishing mark of the company. One of the duties imposed upon this company is to test all articles of gold and silver, and impress upon them the hall mark. An ordinary piece of plate requires the following marks : — (1) The initials of the maker ; (2) the Leopard's Head of the company ; (3) the Sovereign’s mark, the Lion passant (from 1784) ; (4) a letter indicating the year of manufacture ; (5) the Sovereign’s head, m the case of articles chargeable with duty STANDABDS AND EBGULATIONS. 379 Manufacturers of gold and silver articles must register their names and their personal or private marks (gener- ally initials) at the Assay Office of their distnct, and all articles sent in to be assayed must have this makeb’s MABK impressed by himself. If they are then found to have been made in conformity with the appointed regu- lations, a small quantity, not exceeding 8 troy grains in the pound, is to be cut or scraped from them for trial of the purity, according to the standard for which they are required to be stamped. One moiety of the scrapings is to be reserved for the assay, and the other, if the purity proves to be correct, is to be put into that compartment of the diet box which appertains to its standard. These diet boxes are to be proved once a year, by or in the presence of such persons as the Lords of the Treasury shall appoint, which persons are always the wardens of the different halls, except for Birmingham and Sheffield^ the diet boxes of which places are proved at the Eoyal Mint. Should any fraud or deceit have been practised in the manufacture, the article, on discovery, becomes forfeited to the Assay Office, and if it is inferior in fineness to the declared standard, it is to be broken or defaced before it is returned. Many articles of gold and silver, as medals, settings of jewels and other stones, chains, necklaces and fancy jewellery, and all silver articles not weighing each five pennyweights, are ex- empted from being assayed. When the article has passed the assay, it is stamped with the following marks, the forgery or imitation of which, or the removal of them from old to new plate, n felony : — 380 A COtJNTING-HOUSE GUIDE. ( a ) The Standabd Mark. For Gold of 22 carats, and Silver of 11 oz. 2 dwts. • * Lion passant for England. Thistle „ Edinburgh. Lion rampant „ Glasgow. Harp crowned „ Dublin. For Gold of 18 carats fine — Crown and the figures 18. For Gold of 22 carats fine (from 1845) — Crown and the figures 22. For Silver of the New Standard (11 oz. 10 dwts. fine) — The figure called Britannia (6) The Hall Mark. Leopard’s Head crowned Castle The Figure called Hibernia Five Lions on a Cross Castle with Three Towers Three Wheat Sheaves and Dagger Three Castles Anchor Crown Tree, Fish, and Bell for London. ,, Edinburgh. „ Dublin. „ York „ Exeter. ,, Chester. „ Newcastle. ,, Birmingham. ,, Sheffield. ,, Glasgow. This mark is used to show in what district the article has been manufactured, or at what hall the assay of it has been made. The purposes of placing the hall mark upon plate are to sliow who are responsible for the purity, and at what office the return of the duty is to be claimed, in cas(‘ the plate (not having been used) is entered foi drawback upon being exjiorted. The date mark, noticed afterwards, is also partly used for the latter purpose, because as the rate of duty has at different times been increased, it is necessary that the time of its payment should be known. If the plate so entered for drawback has been assayed at any other place than STANDAEDS AND EEGULATIONS. 381 London, a certificate of such assay is required to be produced. (c) The Duty Mark. The Head of the Sovereign. This mark indicates that the duty has been paid, and it IS therefore not placed upon watch cases, which are exempted from the payment of duty. The present rates of duty are seventeen shillings per ounce for gold, and eighteen pence per ounce for silver. {( 1 ) The Date Mark The law directs that this mark is to be a letter of the alphabet, and that it is to be changed every year A knowledge of the date marks will guide to the age of any piece of plate manufactured The date marks of the (xoldsmiths’ Hall have been of a variety of types, Lom- bardic, Black Letter, Italic, C'ourthand, Roman and Old English — large and small, simjile and ornamented — running in twenty year cycles, from A to The following table gives five series of the letters, ranging from 1796 to 1895, both inclusive (1) Roman Letter, Capitals, 179r)>lS15 (2) ,, Lowercase, 1S16-18B5 (3) Old English, Capitals, 1830-1855. (4) „ Lowercase, 1866-1875 (5) Roman Letter, Capitals, 1876-1895 The letters are impressed within the outline of a shield, and the shape of this shield varies ; otherwise there would be no means of distinguishing the marks of 1876-95 from those of 1796-1815 384 A COUNTING-HOUSE GUIDE. TO CALCULATE 5 PER CENT Rule. — For the Pounds and the Shillings . — Consider the pounds in the principal as so many shillings, and value them in pounds. For the Pence . — Multiply the given shillings by 6, take in half the number of the given pence (taking Jd. as *5, and so on), and divide tlie amount by 10 , or, reduce the units of shillings into pence, take in the given pence, divide by 20, and to the quotient add 6d. lor 10s. in the principal. Fj. T ample To find the amount of £657 19s lid at 5 per cent Product, £32 17s. 11-95-lOOd. Taking the 657 as shillings we obtain the £32 17s. , taking 19s lid., we put down 5 hundredths, because there is an odd penny, and carr} 5 for the half of 11 , then we say, 6 times 9 are 54 and 5 are 59, put down 940th and carry 5 ; 6 times 1 are 6 and 5 are 1 1 . Or the pence and parts raa\ be obtained thus . 9s. lid. are 119 pence, 20 in 119 gives 5 and 19 ovei (or 19-20th) , to the 5 pence add 6 pence because there are also lOs. in the principal. The 19-20ths multiplied by 5 or divided by 2 may be set down as 95-lOOths, or *95. MENTAL CALCULATIONS OF PERCENTAGES. 385 TO CALCULATE 2^ PEE CENT. Eule. --For the Pounds. — Cut off the unit figure of the given pounds and divide the other figures by 4 For the Shillings . — Take half the number of the pounds remaining from the division of the pounds. For the Pence . — Multiply the shillings by 3, and take in one-fourth of the number of the pence (the quotient giving decimals) ; then divide the result by 10, the product will be pence decimally stated, and add in Gd. if there should be an odd pound in the principal. Or reduce the units of shillings and the whole pence into pence, divide by 40, and add in 3d. for 10s., and 6d for an odd pound. Example. To find the amount of £879 17s. lid. at per cent. Product, £21 19s 11 375d. We here say, beginning with 879, 4 into 87 produces £21 and 3 over , the half of 39 is 19 and 1 over ; and thus we get £21 19s. ; then for the pence and parts we say, 3 times 17 are 51 and 2’75d, the fourth of lid, are 53*75, which, divided by 10, produces 5*375d., and with 6d for the odd pound, produces lid. and 375-1000th8 of a penny, or ll-375d. Or for the pence we may say, 7s. lid. are 95 pence, 40 in 95 gives 2 and 15 over, set down 15-40ths and carry 2 ; this 2d. and 3d. (for 10s.) are 5d., and with 6d. (for the odd pound) makes 11 pence , the 15-40ths are equal to *875d., or 375-lOOOths of a penny. 25 386 A COUNTING-HOUSE GUIDE. TO CALCULATE 2 PER CENT. Rule. — For the Pounds .^ — Cut off the unit figure of the pounds in the principal, and divide the higher figures by 5. For the ShilUmjs , — Multiply 48. by the number of the remainder in the preceding division, and add Is. for each 10s. in the remaining part of the principal. For the Pence . — Consider the shillings in the rest of the principal, after the foregoing valuations have been made, as so many farthings, abating 1 from 12 to 37, or 2 when above the latter number. Example To find the amount of £538 IGs. 2d. at 2 per cent. Product, £10 Ids. 6|d. Cutting off the 8 m the number of the pounds, and dividing 53 by 5, we get £10 m the product, with a remainder of 3 ; then 4s. multiplied by 3, wuth 3s. for £7 lOs., make up the 15s. ; and lastly, the remainder of the shillings in the prin- cipal (£8 16s. less £7 10s. --£1 6s ) being 26, by abating 1 we ^et 25 farthings, or 6Jd. MENTAL CALCULATIONS OF PERCENTAGES. 387 TO CALCULATE IJ PER CENT. Eule. — For the Pounds . — Divide the pounds in the prin- cipal by 80. For the Shillings. — Take one-fourth of as many shillings as there are pounds remaining from the preceding division. For the remaining Pence . — Add Id. for 6s. 8d , or 2d. for 13s. 4d., and any surplus being brought into pence will then give the same number of 80ths of a penny. N B . — For general purposes Id. may be added from 3s. 4d, to 10s. ; 2d. for above 10s to 16s. 8d. ; and 3d. for above 16s 8d. Example. To find the amount of £179 15s. 7d at IJ per cent. Product, £2 4s. ll::^d. Cutting off the 9, and dividing 17 by 8, we have £2 and £19 over. — 19s. divided by 4 giving 4s. 9d.,and 15s. 7d. being 13 b. 4d., and 2s. 3d., or 27d., we add 2d. to the 4s. 9d., and reckon the 27 as so many 80ths of a penny. 388 A COUNTING-HOtrSE GUIDE. TO CALCULATE 1 PEB CENT. ft 4 BuiiE. — For the Pounds . — Separate the units and tens of pounds in the principal, and the other figures will show the required number of pounds. Far the Shillings . — Consider the tens and units of pounds as shillings, and divide them by 5. For the Pence . — Consider the remaining pounds as so many tens, and half the given number of shillings as so many units of farthings, subtracting 1 from 12 to 37, or 2 when the farthings are above 37. Example. To find the amount of £1,677 15s. 2d. at 1 per cent. Product, £16 15s. 6Jd. £1,600 gives £16 ; 77 considered shillings, and divided by 5, gives 15s. ; the 2 over with 8 (about half the number of shillings) give 28 parts, from which subtract 1, and the result is 27 called farthings, or 6|d. MENTAL CALCULATIONS OF PEECENTAGES. 389 TO CALCULATE * PEE CENT. Eule. — Cut off the unit figure of the given pounds, and the others will show the percentage in shillings ; then don- sider the units of pounds placed to the right of half the number of the given shilhngs, and read the combined figures (less 1 out of every 25) as so many tens and units of Sths of pence requiring to be divided by 8, to produce the pence. N.B , — It the pounds are above 5, reckon 6d for the £5 and apply the latter part of the rule to the remainder ; and when this rule is used for a number of pounds only, we may reckon the units as so many pence, with the addition of Id. for £3 up to £7, and 2d. for £8 or £9. Ejcamfle. To find the amount of £887 13s. 4d at per cent. Product, £4 8s. 9Jd. The 88 tens of pounds produce 88 shillings, £5 produce 6d., and the 2 over with 7 for half the number of the given shillings, considered as 27 but reckoned as 26, on being divided by 8, produce 3Jd., making the \vhole 9|d. 390 A COUNTING-HOUSE GUIDE. TO CALCULATE i PER CENT. Eule. — Multiply 5s. by the number of hundreds of pounds (or take l-4th of so many pounds) and add to the product as many pence as there are tens of pounds in 6 times the remainder of the principal. Example^ To find the amount of £1,837 14s. 6d. at \ per cent. Product, £4 11s lOd. (J-lOths. 18 times 5s. (or the fourth of £18) are £4 10s. ; we then say 6 times 37 are 222, which with 4 (for the pounds m 6 times 14s.) are 226. The tens of pounds being 22*6 are then taken as pence, Is. lOd. making the whole product £4 11s. lOd. The 6-lOths of a penny or id. may be left out, and the whole product will be £4 11s. lOd. MENTAL CALCULATIONS OF PERCENTAGES. 391 TO CALCULATE J PER CENT. Multiply 2s. 6d. by the number of hundreds of pounds (or take l-8th of so many hundreds of pounds), and add to the product as many pence as there are tens of pounds in 3 times the remainder of the principal. Example, To find the amount of £6,378 14s. 6d. at ^ per cent. Product, £7 19s 5d. 6-lOths. 63 times 28. 6d. (or the 8th of £63) are £7 17s. 6d. We then say 3 times 78 are 234, which with 2 (for the pounds in 3 times 14s.) are 236. The tens of pounds being 23*6 are then taken as pence, Is. lid., making the whole product £7 19s. 5d. The 6-10th8 of a penny or Ad. may be left out. 392 . A COUNTING-HOUSE GUIDE. TO CALCULATE A PER CENT. Reckon the thousands of pounds as so many pounds ; divide the number of the hundreds and tens of pounds by 5, and consider the quotient as so many shillings. Consider the remaining pounds (over 10s. being taken as £1) as so many farthings, subtracting 1 when they exceed 12, and 2 when they exceed 37. N.6 . — Instead of dividing the hundreds and tens of pounds by 5, we may double the number of the hundreds and add m 1 for o in the tens of pounds The surplus over 5 in the tens of pounds and the units of pounds must then be treated as above. E rumple To find the amount ol £3,7S6 17s lOd. at per cent. Product, 10s. 9d £3,000 produce £3 , the 78 considered as shillings and divided by 0 produce 10s. and 3 over , and £30 17s reckoned as 37 parts or farthings, pioduce, with the deduction of 1 (as they exceed j12). 30 farthings or 9 pence. Instead of di\idiiig the 7H by 5, we may say twice 7 are II and 1 (tor 0 out of 8 in the tens ot pounds with 3 over) are 15 . that is, 15s. The rules given for the different percentages are formed by making use of such contractions as the reduction of the pound sterhng into its low^er denominations affords, in the application of the proper divisor for each of the rates per cent. If any difhculty should occur in w'orking for any other rate per cent., a proportional statement should be made, and if means of shortening the calculation cannot readily be found PRACTICE. 393 it should be worked by the common method of Eule op Three. Thus to find the amount of £1,187 IGs. 6d, at 12^ per cent, may be thus stated : — j} As 100 : 12| . . £1,187 10 6 . Ans. r / An experienced calculator, however, knowing that 12.| per cent, is equal to l-8th of the principal, and that the difference, l-8th per cent., is the 100th part of 12i per cent., may work the calculation by first taking the 8th ot the given sum, and then deducting 1 per cent, upon the product. It 18 - J or 5 Jii - i or 12*5 - *125 The object of employing the decimal parts in some calcu- lations IS chiefly to prove the accuracy of each of the separate results, by trying the amount of the whole of theba against the same percentage on the amount of the principals. It is a method which is used at the Bank of England and other like establishments for checking the separate dividends, tables being commonly used for this purpose. Fractional parts may be sometimes more conveniently employed, as 20ths for 0 per cent., 40ths for 2^ per cent., etc. CHAPTEK XXIII. PRACTICE. I. — For valuations by Dozens. Rule. — Take as many shillings per dozen as there are pence for each, and reckon 6d. for each id., 3d, for |d., l|d. for !(d., and 3 farthings foi l-16th of a penny. This will be 9d. for each and 4Jd. for 394 A COUNTING-HOUSE GUIDE. Example 1 . To find the amount of 89^ yards at Tjjd. per yard, £ 8. d 7 4^ for 1 dozen. 1 2 11 7i for 84 3 OJ . 5 H - i M2 15 0 89i yards are 7 dozen 5J yards. For 7iM. each, we take 7s. and 4.id., or three times 14d. per dozen, Particulak Rule. For the percentage m shilhngs and pence Multiply the principal by the number of the shillings, and take parts for the pence out of a shilling, adding or subtract- ing as the example may require ; then consider the pounds in the product as so many shillings, and divide them by 100, reducing the remainder (or the figures cut off) into pence, and again dividing by 100. ExamjAe 2. To find the amount of £1,733 13s. 8d. at 13s. 9d. per cent. £ h ll 1 ,733 13 8 14 24,271 n 4 for 14s. subtract 433 8 5 for 3d. - - £23,8.38 2 11 = 2.38,38s 38 X 12 = 4,66d Amount 238s. 4Ad., called £11 ISs. 5(1. 4m * PRACTICE. 395 II. — Fob Valuation by Scores. Exile. — T ake as many pounds as there are shillings for each, and reckon Is. 8 d. per score for Id. each. Then multiply by the number of scores and take parts for the remainder. d s d. thus 1 each is 1 8 per score. 2 ,,3 4 ,, 4 „ 6 8 „ 5 „ 8 4 Example 2. To find the amount of 217^ yards at 5s 4Jd per yard. A. 8 d 5 7 G per score. 10 d 8 d IJ each is 2 6 per score. 3 „ 6 0 „ „ 7 6 „ 6 „ 10 0 „ 53 15 0 for 200 yards. 2 1.1 9 „ 10 „ 1 6 lOi „ 5 „ 13 51 „ 21 „ 9 Oi 5s. 41d =£6 Is Gd per scoie Example 3 The combination of the principles of the two preceding Eules. To find the value of 277^ yards at IO 4 per yard. 2774 - 240 and 374 ttt A s d 3 £ = 10 7 G 3. X 3 == 1 11 14 lOi value of 240 yards. »> 3G >» »» 1 i »♦ £11 19 11 396 A COUNTIKa-HOUSE GUIDE. The value of 240 yards, etc., at any number of pence per yard, etc., is evidently an equal number of pounds, and con- sequently the value of the same number at any fraction of a penny gives the same fraction of a pound. Therefore, according to this mode of calculation, the num- ber of pence in the price being reckoned as so many pounds (that is, the value of 240), is to be multiplied by whatever number of times 240 may be contained m the given number of the quantity to be valued, and then the valuation of the remainder is to be made in dozens or scores, and in odd yards and fractions. III.— For iHK VALUATION OF C\\T. Qrs. and Lb. at 20s. peb Cwt. Rule. — Reckon every cwt. as £1, every quarter as 5s., and double the number of the lb. as pence ; with the addition of Id. for every 7 Ib., and 14-lOOths of a penny for each remaining lb. At 20s per cwt., or lod, for 7 lb., 1 lb. is worth 2 l-7cl , or 2 pence and 14-lOOths of a penny. The addition of 1 or 2 extra lOOths is made in order to allow for the remaining fraction of 2-7ths of 1 -100th in the value of each pound at 20s. per cwt If great precision is required, there may be 1 part or 1-lOOth added in foi 2, 3, 4, or 5 ib,, and 2 parts or 2-lOOths for 6 lb Example 4. To find the amount of 73 cwt. 1 qr. 17 lb. at 47s. 6d. i. H ri ] - - 8 0-43 for 20 h. 146 16 0*80 „ 40ft. i - - 18 7 0*11 „ 5s. 9 3 6*05 „ 2s. 6d. £174 6 7*02 PRACTICE. 397 This valuation as 20s. per cwt. is thus made : 73 cwt. give £73, twice 17d. with 2d. (because there are 2 seven pounds in 17 lb.) give 36d., or Ss., which with 5s. for 1 qr. give 8s. ; and as there are 3 lb. above the 2 sevens, or 14 lb., we add 3 times 14 parts, with 1 more (making *43) and obtain, for the amount, the above valuation, £73 8s. 0*43d. IV. — For the Valuation of Tons Cwt. Qrs. and Lb at 20s. per Ton. Bulk. — Beckon every ton as £1, every cwt. as Is., every qr. as 3d., and every 7 lb. as ^d. , then multiply by the £s and parts of a £. Example 5. To find the amount of 37 tons 17 cwt. 3 qrs. 14 lb. at £24 10s. per ton. £ S (I 4 - - 37 17 10 J amount at 20s 4 151 11 6 6 909 9 0 = 24 18 18 llj =- i £928 7 Hi iV.B. — When the lb. are given otherwise than in 7 lb., 14 lb., or 21 lb., the preceding rule for the cwt. may be used, if the shillings m the price per ton make a fraction of a £, for which a corresponding fraction can be taken of a shilling,^ thus , — 3 tons 13 cwt. 1 qr 17 lb. at £47 10a, per ton, are 73 cwt. 1 qr 17 lb. at 47s 6d per cwt. ' Otherwise the extra pounds may be valued at 20s. per ton, which 18 at the rate of *107, or 107-1000ths of a penny per ib. 898 A COUNTING-HOUSE GUIDE. V. — Fob Valuation of Oz. Dwts. and Grains Troy at 208. per Oz. Bulb. — Beckon every oz. as £1, every dvvt. as Is., and half the number of grams as so many pence. Example 6. To find the value of 341 oz. 11 dwts. 17 grains of gold, at £3 17s. lOJd. per oz. iV £ M d 341 11 amount at 208. 4 1,3CG 6 10 34 3 2 2 2 81 £1,330 0 Hi 2s lid. £4, less 2s l^d. = MH ITs lO^d. VI.— For Finding thk Amount of a Hate per i-. Bulb. — Take the given sum as the amount at 20s., and take parts of 20s. for the given rate. Example 7. To find the amount of £079 9s. 4d. at 4s. 104d. per £. L S d 679 9 4 amount at 208 169 17 4 5s 1 4 11 lid B166 12 5 6s., less l^d = 4s lOid PKACTICE. 399 VII. — For Finding the Amounts op Rates per Cent. Eule 1, — Take parts for the rate out of the given amount. Bulb 2. — Multiply the variable term of the rate expressed in pounds by the number of hundreds of pounds in the given sum, and take parts for the remainder of the sum out of £ 100 . Eule 3. — Multiply the given sum by the variable term of the rate, and divide the product by 100. Examj)le 8. To find the amount of £649 at 8| per cent. ■a\, - - 649 amount at 100 per cent i - • 32 9 0 „ 5 „ i ■ - 16 4 6 „ 2i „ 8 2 3 „ li „ £56 15 9 Or take 10 per cent., and subtract l-8th for 1^ per cent., producing 8 1 per cent. The student is to obseive that, m rates per cent, without any valuations being given, the two terms are of the same kind or value : thus 8^ per cent, may be 8^ of a £ out of £100, or 8^8. out of 100s, , and so with any other matter of weight, measure, or quantity, as 8/ yards out of 100 yards, or 8] things out of 100 things , but when a value is given to the variable part of the rate in money, the words per cent.” always mean to be out of £100 ; as 128. 6d. per cent, means 128. 6d. out of £100, In any other case both terms of the rate are valued. 400 A COUNTING-HOUSE GUIDE. Example 9. To find the amount of £652 10s. at per cent. £ s d i - - 66 7 6 amount of £100 6 392 5 0 „ 600 A - - 82 13 9 „ 60 1 12 8i „ 2 10 £426 11 5J Example 10. To find the amount of £1,187 10s. 6d. at 12| per cent. £ s d i - - 1,187 10 6 12 14,250 6 0 =: 12 i - - 296 17 7 = J 148 8 9 = J - - 14,696 12 4 £146 19 1 CHAPTEE XXIV. GOVEKNMENT STOCKS. Case 1. To find the cost or the net proceeds of Government stocks. Eule. — Find the value of the stock by one of the rules in page 393 supra^ and add l-8th per cent, for brokerage upon buying, or subtract the same upon selling. The brokerage is on the amount of stock, and not on its value. GOVERNMENT STOCKS. 401 Example, To find the cost of £655 Consols at 95 per cent. £655 at 954 = £625 10 6 Value „ 4 = 16 5 Brokerage £026 6 11 Cost. Case 2. To find the quantity of stock that can be bought with a given sum of money. Note — Add I for brokerage to the pnce of the stock, and say, If this sum produce £100 stock what will the given sum produce ? Example, To' find how much Three per Cent Consols can be bought with £400, when the price is 98^. 98J and I = 984 £ £ t As 98^ 100 400 Ans £405 11s 6d , Quantity of Stock Case 3. To find the quantity of stock that must be sold to produce a given sum of money. Eule. — Subtract J for the brokerage from the price of the stock, and say, If this remainder require £100 stock, what will the given sum require ^ Case 4. To find the net pioceeds of Bank of England Stock, India Stock, Canadian Stock, or other stocks. Eule. — Make the calculation in tfie same manner as for Government stocks, but subtract the expense of making the 26 402 A COUNTING-HOUSE GUIDE. transfer,^ together with brokerage on the sale of the stock. The fees payable to brokers are : — For British or Foreign Funds - - - - 2s. 6d. „ Exchequer Bills Is. Od. % ,, Colonial and American Government Stocks and Railway Bonds - - - - Is. Od. Case 5. To find the amount of tlie half-yearly dividends on stock Eule. — Multiply the quantity of stock by the rate of the? dividend, and divide tlie product by 100, and again by 2 for the half-year*s dividend. Or, multiply the rate of the dividend by the number of hundreds of pounds of stock, and take parts for the remaining quantity, if any , then halve the product for the half-year. Case 6 To find the rate per cent, per annum, which is made of money by the purchase of stock Eule. — Find the amount of the proportionate or growing dividend, from the day when the last dividend was due, to the given day, and subtract it from the given price of the stock to find the net price. Then if a proportionate state- ment be made, with the net price, the rate of the annuity, and £100, for the three given terras, the fourth term will be the required rate per cent. Examjjle. To find the rate per cent, per annum, which is made of money invested m Three per C'ent. Consols at 94;^ per cent, on the 14th May, 1900. N.B. — The dividends on this stock are due on 5th January and 5th July. From 5th January to 14th May is 130 days. ^ For Bank Stock, Transfer Fee to and under, Is. Sd. , over £25, 4s. 3d , Stamp, 7s. 9d. India Stock, no Fee ; Stamp, 30s. Canada Stock, 2s 6d. 7o Stamp ; Colomai Stocks, no Fee or Stamp. TEEMINABLE ANNUITIES. 403 The Interest on £100 for 130 days is at 3 £114 £94 15 0 Price. 114 Growing Dividend. £93 13 8 Net Price. As £98 10 8 • £3 . £100 : Ans. Product, £3 4s. Id., Rate per Cent. N.B . — In calculations of this nature the given price is sup- posed to include the brokerage of per cent. If the growing dividend were not regarded in the above, and the given price were made the first term of the state- ment, the rate would be £3 3s. 4d. per cent., thus shown : — As £94 15 0 : £3 . £100 : £3 3 4 TERMINABLE ANNUITIES. Terminable annuities are annuities which have been sold by Government for limited periods. Some now extend only to 1904. The Savings Bank Annuities extend to 1908, and the Red Sea Telegraph Annuities to 4th August, 1908 The date to which they run is the chief element in estimat- ing their value The price is the number of years’ purchase at which they are sold, as 12fV» 121, 13}. The brokerage is reckoned at sixpence on each pound of the annuity. Example, To find the cost of a terminable annuity of £50 at 12 J years* purchase. £50 X 12J = £637 10 0 Value £50 at 6d. = 15 0 Brokerage £638 15 0 Cost. EXCHEQUER BILLS. Exchequer Bills are issued from the Exchequer, and bear interest from the day on which they are dated. They are 404 A COUNTING-HOUSE GUIDE. always advertised to be paid off or renewed when they have run a few days more or less than a year. The rate of interest on these bills, which varies according to the value of money, is payable at the Bank of England on March Bills (so called), 10th March and 10th September ; and on June Bills (so called), 10th June and 10th December. The interest has been as low as IJd. per cent, per day, and has reached 3 }d. per cent per day The brokerage on Exchequer Bills is Is. per £100. N,B , — Exchequer Bills are of four different amounts, and are printed w'lth ink of different colours, viz : — £100 Bills with Red ink £500 Bills with Blue ink £200 ,, ,, Yellow. £1,000 ,, ,, Black Example, To find the cost of 4 Exchequer Bills of £500 each, dated loth March, and bought 17th June, at 4s. premium. £2,000 at 2Jd. per cent, is 4s 2d. for 1 day 4 Bills — £500 each .... Interest — 94 days at 4s 2d per day • Premium — at 4s. per cent. - Brokerage - £2,000 0 0 19 11 8 4 0 0 10 0 Cost - £2,024 11 8 BONDS OF CORPOKATJONS AND COMPANIES. Bonds are issued by various corporations, companies, and associations for loans, etc. The amounts are £100, £300, £500, £1,000 (and otherwise), and bear interest from given dates at stated rates of interest per cent. The calculations for interest are made in months and days. The brokerage is the same as upon Exchequer Bills, viz,^ Is. upon every £100 either purchased or sold. Example, To find the net proceeds of 2 bonds of £500 each, dated CHAIN RULE, OR RULE OF EQUATIONS. 405 Slst March, 1900, sold 23rd May, interest 4 per cent, at 48. premium. From March 81 to May 21 is 1 month 23 days. Interest = £5 17 1 £ 8 d 1,000 0 0 Bonds. 5 17 1 Interest. £1,000 at 4s = 2 0 0 Piemium. 1,007 17 1 Amount. L^6s 10 0 Brokerage. £1,007 7 1 Net Proceeds. CHAPTEK XXV. CHAIN KULE, OR RULE OF EQUATIONS. Continued proportion is a combination of two or more proportions, when the product or fourth term of each simple proportion forms the third term of the following proportion. Instead of working these pioportions separately, they may be perforined together like compound proportion, by the following method, called the chain rule, or rule of equations. Rule. — Arrange the given quantities in the following order : make the quantity whose value, weight, or other result IS required, the teim of demand ; and in order to dis- tinguish it, place against it to the right hand a notej of interrogation , then place the first and second terms of the given proportions, so that the first term of the^rst proportion may be similar to the term of demand, and that the first term of each following propoition may be similar to the last second term. Reduce, if necessary, the similar terms into their lowest denomination, multiply the last term by the numbers in succession of all the second terms, and also the term of demand. The product should then be divided by the pro- 406 A COUNTING-HOUSE GUIDE. duct of the numbers of the first terms, and the quotient is the answer. Obseevations. — (1.) The first terms are the antecedents, and the others consequents , and the statement of them is an equation, because each consequent is the value or equivalent of its antecedent, each pair of terms being a rate of the equation. (2.) By cancellation, any antecedent and any consequent may be divided by a number that will exactly divide them, and their quotients used instead ; and this may be repeated as often as practicable, taking only two terms, one on each side, at a time. (3.) When the equation is complete the last quantity will be of the same species as that required to be equivalent to the term of demand, and represented by the note of interro- gation. Example, If 22 oz. of fine gold make 44 oz. of standard gold, and 12 oz. make 1 lb., and for the “ journey weight of 15 lb. of standard gold the Royal Mmt delivered 701 sovereigns, what number of sovereigns were delivered in return for 367 oz. of fine gold. 367 oz fine ? 1st Proportion. Oz. fine 22 = 24 oz standard. 2nd Oz. 12 = 1 lb. 3rd ft lb. 15 = 701 Sovereigns. 22 701 Sovereigns. 12 367 264 257267 15 24 396,0 ) 617440,8 ( 1559 Sovereigns. 2214 2344 3640 768 remainder EQUATION OP' PAYMENTS 407 The term of demand is here 367 oz. of fine gold, and the value of this quantity is required in sovereigns, the last term which therefore forms the last consequent, or term. Or, dividing 12 and 22 by 12 arid by 2 for 24, and dividing 24 by 24, we have on one side 11, 1, and 15, and on the other 367, 1,1, and 701, and the statement of the calculation IS expressed thus : — 701 ^ 3G7 _ 701 367 15 12 "" 22 “ 15 ^ 11 and is worked thus ; — 701 S67 i 11 ) 2572G7 15 ) 2T187 10 1 559 iV?r So V erei gns CHAPTEE XXVI. EQUATION OF PAYMP.NTS, OR AVERAOK TIMES O' PAYMENT An equated or average time of payment is a time at which the interest upon the whole of several sums ol money is equal to the amount of the discounts upon the separate sums for the separate times they have to luu. The rule for calculat- ing average time, not being given m the body of this wrork, is offered here as likely to be of service m business ItULE. — Multiply each payment by the number of years, months, or days which that payment has to run. Then say, by the Rule of Three — If the amount of all the payments require 1 year, etc., what will the amount of the products require The answer to winch statement will be the equated time required. When particular days are specified, it is usual to reckon the time of each payment from the day on which the first payment becomes due ; then the first payment wull not re- quire any multiphcation, and the whole amount will be 408 A COUNTING-HOU8E GUIDE. reckoned due at the end of a number of days in the equated time, calculated from the day of the first payment. Examjjle 1. On 2nd March J&300 is due ; on 18th March £350 is due ; and on 17th April £550 is due. It is required to find an average time of payment for the whole sum. From Maich 2 to March 18 la 16 days. M n to April 17 is 46 days. , £300 £ 350 X 16 =: 5,600 550 X 46 26,300 — day As 1,200 1 • 80,900 Ans Auswei 2(» da> s. Maith 2 Mai fli 28 = Equited date of payment. Examjjle 2. Find the equated time of paying the balance of the follow- ing account — Di Hubei t Hal) A Co (V 1888 1888 Jan 11 To Goods - - ?.750 Feb 10 By Draft, 60 Feb 1 To „ 3 inos - 600 days m - $500 Mar 16 To „ 6 n - 1500 Mar 8 Bv Cash - - 700 May 8 To „ - 900 \pnl 15 Bv ,, - - 300 Due Jan 11. Amt 750 X Days 10 Pr s X 103 1*1 oduct 51,500 May 1 GOO X 120 72,000 :Mai 3. 700 X 61 42,700 Sept. 15 1,600 X 257 386,500 Apnl 15 300 > 104 31,200 M 3. 900 X 245 220, 5(X) 1500 125,400 3,750 685,500 1,500 125,400 2,250 ) 6fi0,100 248] oi 249 da> s Balance due 249 days from Jan. 1 - Sept. 7, 1888. EQUATIONS OF PAYMENTS. 409 Assuming for convenience 1st January as the standard date, we find the term of credit for each debit amount, and reckoning from the same date, the time to each credit amount. Multiplying each amount by its time in days, and severally adding up the Dr. and Cr. products, we find the number of days' interest of $1 due to the Dr, and the num- ber of days* interest of $1 he has already received. The difference, 560,100, shows the number of days’ interest of $1 still due, and as the balance is $2,250, the time must be jy^^^ths of 560,100 days, or 249 days. Hence the equated time is 249 days from 1st January, which will be 7th Sep- tember, as above. INDEX. Abandonment, 193. Abbreviations, 161. Acceptance for honour, 263 „ general, 249 „ qualified, 249. Acceptor, 237. Account, -pro formd^ 44. Account, current, 4, 24. „ interest m, 6. sales, 26. „ ,, of laid, 27. pimento, 30. cochineal, 31. elephant’s teeth, „ „ tobacco, 34. ,, „ olive oil, 38 „ ,, French, 41. ,, ,, coal, 43. Act of God, 111. Adventure, 25 Allonge, 245. A. R , 161. Arbitrated puces, 323. „ „ comparison of, 325 „ rates of exchange, 325, 335 Arbitrations of exchange, 303 ,, bills of exchange, 303. ,, bullion, 306. „ coins, 309 ,, merchandise, 311 Average, general, 163 „ particular, 167. „ free of all, 172 ,, foreign general, 172. ,, statements of, 172. „ general and paiticular, 186 „ adjuster, 171. „ stater, 171 } Backed note, 91 Balance of trade, 298. „ sheet, interest account in, 6 Ballast, in, 214 Bank holidays, 21 ,, letter, 124 „ „ of credit, 281. „ price of gold, 284. „ notes, 285. , ,, return, 286. rate, 287 Bank of England, 284. notes, 285 Banking accounts, interest in, 19. I „ opening, 216 ! „ operations, 328 I Bariatry, 111 I Berth. 112 1 Betterness, 353 I Bill books, 246 ,, brokeis, 293 Bills, document, 123. „ oi exchange, 237 „ ,, foreign, 243 ,, ,, set ot, 245 I „ ,, presentation of, 247 * „ „ accepting, 218. ! ,, ,, endorsing, 252 , „ ,, case of need, 255, 263. I ,, ,, usance, 259. I „ „ presenting foi accep- . tance, 259 ; ,, ,, protesting, 260, \ „ „ acceptance for honour, 263 „ „ payment for honoui, , 264. ' ,, „ notice of dislionour, 266. i ,, „ noting, 268 i „ „ stamp duties on, 269. ' „ „ discounting, 270. 412 INDEX. Bills of exchange, arbitrations of, 305. „ „ interest on, 321. ,, arbitiated rates of, 326. „ of lading, 98. how to endorse, 106, 107 „ set of, 109 „ clauses on, 109 Blank endorsements, 63 on bills of exchange, 263 on bills of lading, 107. on delivery orders, 63 Blockade, 112 Bond, in, 61 Bonded goods, 60. ,, warehouse, 61 ,, vaults, 61 ,, caiinen, 61 Bonds, bottomry’, 198 „ respondentia, 198. Brokerage, 29. Broker’s order, 91 „ bill, 293 „ contiact notes, 56 Bullion, 111, 353 „ arbitration of, 306 Bunker coal, 215 Captain’s protest, 190 ,, responsibility, 191. Carmen, bonded, 61. Case of need, 255, 263 Certificate of origin, 122. Cham Rule, 405 Charter party, 201. „ ,, chiuses on, 214 Charteis, coal, 204 ,, firewood, 206. ,, ore, 208 ,, Madias coast, 211. Cheques, 221. ,, crossed, 224 Circular notes, 278 Circulars, 52. Classification of ships, 200. Clauses, dirty, 109 ,, clean, 109 „ Lloyd’s, 150, 157, 159. Clean receipts, 110. Coal charter, 204 Coinage, regulations for, 356. Coins, foreign, 346 „ French, 348. American, 848. „ gold, 352. silver, 352. copper, 356. „ bron^e, 866. „ remedies of, 357. ,, value of, 363 Collision, 193 Commission, 29 Conditions of sale, 126. Confirmation notes, merchant’s, 58. manufacturer’s, ! 58 Consignee, 25, 111. ! Consignment, 25, 73. 1 ,, goods on, 25. ' „ note, 73. Consul, 269 Consulage, 214 ' Consular invoice, 118. ■ Continuation clause, 157, 158 I Contract notes, 54 , ,, piompt, 55 I ,, broker's, 56 ] Course of exchange, 296. I ,, ,, foreigu, 343. Coveiing note, 152 I Cl an age, 214 I Credit note, 4. I Ciossed cheques, 224 1 ,, ,, general ciossmg, 226. „ „ special „ 226. I Currency, 354. 1 Customs entry, 29 , „ „ foreign goods, 49 I ,, „ Biitish and Irish, 50 I Date maik, 381 I Dead weight, 2U ! „ freight, 84 ' Debit note, ^ ! Deliverv ordeis, 61 ' „ ,, how to endorse, 63, 07. Demurrage, 91, 215. Deposit receipt, 220. I Deieliot, 197 1 Deviation, 157 I Direct exchanges, 297. INDEX, 413 Dirty receipt, 110. Discount, 44. how to calculate, 46 „ market rate of, 292 „ bank „ 2B7. ,, houses, 298. Discounting a Bill, 270 Dispatch money, 216 Dock Warrants, 129 Document Bills, 123 Draft, 29. Drawee, 237. Drawer, 237. Dunnage, 214 Duty mark, 381 Enquiiubs, 70 Entry, customs’, 29 ,, prime, 40 ,, post, 40 Equation of payments, 407 Exchange value of money, 348 Exchanges, 297 „ rates of, 294 „ course of, 295 ,, how made, 297 „ direct, 297. how to calculate, .301 „ arbitration of, 303. F. A A , 161. F C. S , 143, IGl F. C & S., 148, 157, 161. F G. A., 143, 161. Fine Silver, 367 Fire Insurance, 29. Firewood charter, 206 Floating policy, 159 Flotsam, 198. Foreign invoices, 115. „ general a\erage, 172. „ money, 348. Forwarding documents, 118 Foul receipt, 110 F. P. A., 157. Free of all average, 172. Freight, 29, 81 ,, engagement, 81. ,, when due, 82 ,, by weight, 82 ,, „ measurement, 82 dead, 84. Freight note, 95, 96, 97 „ receipt, 98 „ release, 108 G/A, 161. General average, 163. „ documents required, 165 ,, „ according to foreign statement, 166 - „ ,, statement of, „ „ general and particu- lar, 186 Gold shipments, 299 „ standard, 363 „ native, 358 ,, parting, .354. !„ and silvt^r coins, 351 „ ,, reports, 867, 373 „ ,, manufacturing of, 376 ,, ,, standarding of, 368. Goods on consignment, 25 ,, hen on, 112 Gross, 29. „ weight, 29 Hall mark, 380 Haulage, 214 Hide clause, 160 Imlorting tea, 128. Indents, 67-69 Interdict, 112. Interest, 46 „ numbers, 7 „ simple, 47 ,, compound, 47 ,, pollc^^ 159 ,, on bills, 821. ♦ „ in account current, 6 „ „ banking, 19 „ Account , how to calculate, 6 „ numbers, 7. ,, ,, divisors for, 21. ,, ,, list of, 23 Invoice, 1 ,, manufacturer's, 79 foreign, 115 consular, 118 „ shipping, 79 I O U’s, 277 414 INDEX. Jetsam, 197. Jettison, 111, 192 Lagan, 198. Landing alter, 39 Lay days, 214. Laying days, 214. Lazaretto, 111. Legal tender, 354. Letter of indemnity, 113. ,, „ indication, 279. ,, „ credit, 280. Lien on goods, 112. Lighterage, 214. Lighterman, 85 Liquidated damages, 215. Lloyd’s, 135 ,, insuring with, 141 policy, 148 clauses, 150, 157. warranties, 158 Loans, 228 from banks, 228 on bonds, 228 ( Marine insurance policy, company’s form, 161. „ clauses on, 167, 169, 160. ,, „ exceptions to, 161. Market reports, 62. rate of discount, 292. Master’s copy, 112. Mate’s receipt, 88 „ „ merchant’s form, 88. „ „ shipbioker’s „ 89. ,, „ clau.ses on, 90. Maturity of bills, 259. M C., 168, 161. Mental calculations for 383. » 384. M „ „ /,, 385 386 . M li°/ot387. »» >* »» ♦ » M >» n n n l°/o, 388. 389. 390. ,, against guarantee, 232 „ on goods, 2-i3 ,, „ wai rants, 233 ,, ,, insurance policies, 235 Lockouts, 112 Madras coast chaiter, 211 Marginal credits, 283 Marine insurance, 134. ,, ,, where it commences, 140 ,, „ where it ends, 140 „ policy, 116 „ *, brokers, 156 „ ,, brokerage, 156 „ discount, 156 documents to prove a loss on, 165 companies, 151 ,, covenng note, 162 ,, policy, 153. policy, 146 „ „ stamp duty on, 146 ,, explanation of, 150 >» »» »» I Metalling clause, 168 j ]\Iobric sTsteni, 315 I Mint price of gold, 286. j ,, jiars, 350 Monetary tables, 84G. Money, 851 ,, on deposit, 21S ,, maiket, 290. j N ■VMED policy, 159. Native gold, 353. j No thirds, 157. ’ Not negotiable, 227 Notary, 268 Notice of dishonour, 266 Open polic\, covered interest in, 139. Opening a banking account, 216. Ordei sheet, 56, 57, 72. Ore charter, 208 ParceLvS receipt, shipping, 68, 69. Pars of exchange, 346 Particular average, 167. ,, ,, on ships, 167. „ „ goods, 168 INDEX. 415 Particular average, statements of, 176. Partings, ^old, 354. ,, silver, 354. Payee, 237. Paying-m slip, 217. Payment by cheque, 3. ,, for honour, 264. Percentages, 46. ,, of rates of exchange, 316 , , mental calculation of, 883. Perils of the sea, 112. Pilotage, 214 Policy, valued, 136, 158. open, 136, 158. running, 137. voyage, 158. tune, 159. interest, 159. wager, 159. named, 159. floating, 159. covered interest in, 139. Lloyd’s, 135. company’s, 151. Practice, I Premium, 135 rates of, 145. „ return of, 136-139. Presentation for acceptance, 247, 259 Price current, 51. Primage, 110. and average accustomed, no Prime entry, 40 Pio forma accounts, 44. Promissorj notes, 273. stamp duty on. 274. ,, joint, 274. joint and several, 274. Piompt, 55 ,, date, 128 Piotest, captain’s, 190 ship’s, 190 Protesting a bill for better security, 262. „ non-acceptance, 260. non-payment, 260. Pyx, trial of, 859. >» Quabantinb, 112. Quotations, 71. Bailway advice, 73-77. Bates of exchange, 296. how silver affects, 300. percentages of, 316. arbitrated, 326, 335. premium, 146. B D C , 161. Beccipt, mate’s, 88. clauses on, 90. wharfinger’s, 92. clean, 110 dirty, no foul, 110. Beceiving notes, 87 Be-exchange accounts, 267. Be-insuranco, 162. Bet urn of stamp duty, 140. Bunning days, 215. „ hours, 215. Bunning-down clause, 160. >» >1 »» »» »» >» »» II S , 141 Salvage, 190 „ losses, 196. Sampling ordei, 125. S G , 150 Shipper’s measurements, 95. ! Shipping, 79, 85 specifications, 48, 49, 50 parcel receipt, 58. mstructions, 77 advice, 78. card, 80 clerks, 86. documents, 86 protest, 190. classification of, 200 husband, 215. Short shipment, 84 Silver coins, 852 parting, 364. fine, 367 Slip, 142, 144 Specie, 111 Stamp duties on delivery orders, 61 bills of lading, 109 warrants, If^, charters, 203. S^ips 11 »i II II II II II II 11 If 416 INDEX. >» }f Stamp duties on bills of exchange, 269. transfer deeds, 232. „ promissory notes, 274. „ policies, 146 „ „ leturn of, 136 Standard gold, 363 „ .silver, 353. „ mark, 380 Standardmg gold and silver, 368. Statements, 2 „ of average, 172 „ „ general average, 174 Transfer deed, 230. . „ stamps duties, 232. Tret, 30 . Trial of the Pyx, 859. ' Trimming, 214. i T. T., 273. ■ Tun, 38 I I ' Under wRiTEas, 134. ' Underwriting by power of attorney, 147 1 Usance, 269 I Valued policy, 136, 138 Voyage ,, 15i>. „ „ „ and particular, 176. Stevedore, 214. Stranding, 192 Survey, GO „ report, GO. Tables of interest divisors, 23. „ days between dates, 272 Taking up bills, 128 Tare, 29 Telegraphic transfers, 273. Time policy, 159 T L. 0 , 161 Total loss 194, Towage, 214 , Wager policy, 159 Waiver clause, 159. I Warehouse warrants, 129. Warrants, dock, 129 „ warehouse, 129 * Weight, gross, 29 ,, net, 29 „ note, 132 „ dead, 214 „ measure, quality and con- tents unknown, 110. Wharfinger\s receipt, 92 . Worseness, 353 , Wreck, 197 ' York-Antwerp rules, 166 THE ABERDEEN UNIVERSITY PRESS LIMITED REMIER CODE USED— see back. MAY, 1901. CATALOGUE £ega(, Commcrdat an6 otftcr 'EDorfts i>i lu isHpn ^\n soil) hy EFFINGHAM WILSON. CpuBfte^cr an> (^oofteeffcr, 11 ROYAL EXCHANGE, LONDON, lO \NHIlH ’S ADDl 1) A 1 ISl OF TELEGRAPH CODES. EFFINGHAM WILSON undertakes the printing and publishing of Pamphlets and Books of every description upon Commission. Estimates given, and Conditions of Publication may be had on application. INDEX Arbitrage — PAf.^ Haupt, O (Arbitrages et Pantos) 17 , Willcley’s Aineiican Stocks 26 Arbitration — London Chamljei of 24 l.ynch, H P'otilk*: 20 ^ Banking — i Banking, Hlstor^ of 10 Banks and their Customers ii Banks, B.ink(Ts nnd Banking 22 Bibliograph\ (Bank of Kngland) 25 ^ Easton’s Banks and Banking 15 Easton’s Woik of a Bank iS English and Poicign (Atttudd) to Examination (,^)iu stions, \ritli- metic ind Algebra 21 ilalf-vearh Balamt. '^h'^ets 11 Howarlh s clearing HoU''es iS Hiilchisun, I 18 Journal Insiituu ot Binkei^ 19 Legal 1 )< c isions affecting Bankers (Juesiions on Banking Piactiei 23 Scottish lianking iq Smith s Binkt’ ind t ustcanei 24 I'okt n Moiuv ('t tin ikink ol England 4 Bankruptcy- McF n t An.^'iunts) 20 Stew irt (L iw otl 7 Bills of Exchange Koikt nbi ck fSlamp Duikson) ig Lovd s Leciaie^ 20 Smith (Law ot I’l’i'i eu 1 7 Bimetallism - last of W'ork'- 27, j8 Book-keeping (,ariss I ^ Earr (line stors) 1 1 Drapers’ Ac( ouiii^ Harlow ’s Isxammaliori (Questions 17 Holah's Double Entry 10 lackson 18 . - I Richardson s Weekly Newspapers 23 J Saw yer 24 j Seebohrn’s ( Theory) 10 ' Shefiield (Solicitors) 24 Van de Linde . 25 Warner (Stock Exchange) 26 Clerks — Commercial Handbook 10 j Companion to ‘ ' Solicitor’s Clerk ” 19 Clerks l ( orn Trade C ountmg-house Guide Kennedy (Stockbrokers) Meicantile Practice (Johnson) Mt rchant’s School to Oftiee SollLltOI S Correspondence (Commercial) - Be.ini Mai tin (Sloe khroket b) C oumlK Counting-house - C t OA Uw FVa’ ct 1 u< County Court - loiK " Currency and Finance Mdenh-im (Lord) B i'< 1 u (Kobeil) 1 III' V Mnket Piitii'U « .bb { uthbi I tson Del Mil s 1 Ii“>u I V Di ! Mai '' "^iitiut of Mf'iu'v I 111 Gibbs Jlon H HnnetallK Primer H I'lpi Indiin ‘ oin.jgi and ( urriuicy Po>r(II \’ I 1 hi Monc) non Dictionaries — Ml hot ^ f I ( n*. li ind 1* nglish Directors - H IN craft f la ibilitie*' and Duties) Exchanges — Bt \/ili in Exchan gi ^ L lait GoscIh n Normans I nivirsal ( ambist late’s Modt ru Cambist Exchange Tables — Amtncan Exchange Rates Dollar (Eastern) Garr.itt (South American) Lecotire (French) ,, ( \ustri i and Holland) Merces (Indian) Schultj' (American) Schultz (German 1 2a 25 8 iH 1 10 / 21: X,;, lol r 1 1 IJ 13 14 M 14 15 r6 t? 23 ( (4 r a 2 ^ 2 1 O 20 22 25 10 19 16 *9 23 24 34 Effingham Wilson, 11 Royal Exchange, London. 3 Insurance — Bourne’s Publications Short-Term Table Marine Insurance Interest Tables — Bobanc^uet Oosbie and Taw (Pioduct) ( 'ainnuns (2^ "/r) (Gilbert’s Interest and ('ontango Gumei all Ham (Panton) Unnersal Indian Intert st (Men es) Tf-vvib (Time Fables) j > i iv 1 Schultz W'lhelm (Cumpf( also Stock Isxchange Manuals) — Rirk’s Investment l^edgei Investment Profit Tables Houses and Land How to Invest Money Joint-Stock Companies t hart for Ready Refeience C ompany Frauds Abolition (. ompany Piomoteis (Law of) t ompanies Acts, 1862-1900 ( uinnnns’ Formation of Accounts Emery s Tieatisi of ( ompany Law Hayciatt (Direct 01 s) Pulbrook’'' Responsibilities of Direct 01 s s monson’s C ompanies Act, 1900 Sinionson s Delicnitures and De- ixmtiix sto«.k (Law of) Smitl) Law (\. 11 ions Suhieclsi — ( h.irlei Paities ( op\ right Law 1 li'Jtricl and I’aiish ( oimcils (Lithiby ) f iclors (Law n laiing to) Fir^t M« inents c)t 1 < gal I’lo- dui e Food and Dings (jeneial \\eiagt High C oiiit Pi »ctic» ! censing Acts Mai ilinie L iw Pat( Ml L iw and Pi actice( Lniei \ ) Property Law (Maude) Railway Law Solicitors’ Forms ((dial les jones) Thames River Law Workmen s (’ompensation Legal and Useful Handy Books - Lai of Dimcils pA(jE ( Maps— PAfiK 12 I Riitish F.o]umbia . 7 . 25 Gold ( oast 6 6} Hauraki (ioldfields . , 6 1 Kalgoorlie . 6 j2 1 1 asm.inia, West Coast of 6 , Witwatersi and Goldfields . 6 I Maritime Codes— o 16 j Geimany . 10 jy I Holland and Belgium . 23 17 ' Italy 23 22 Spain and Poitugal . 23 20 Mining 2^ I Accounts of (ji M ('os 14 22 ' Beeman’s Australian Mining 26 j I British Coliimbi.i Mining Laws d2 * ■ ( dial Iton’s Information for Gold I Mining Tnvestois l-:t How to Invest m Mines Goldmann (South Afncan Mining) 16 ^ ; Milford’s Dictionary of Mining ^ I erms 22 Mount Lyell Mining Manual 24 5 i Pauli’s (^olumbia and Klondyke * ^4 j Manual 22 5 j I in-Mining in Spam 12 5 I W allach’s West Afncan Manual 26 *3 Miscellaneous — ty [ AnthmcHic and Algebra 21 ^ ! Australia in 1897 . ^2 Author’s Guide 27 On C ompound Interest and An- A ‘ nuities 24 ^ A Lotion Tradt of Great Britain 15 Gresham, Sir Thomas (Life of) 12 “d H 1 Ill’s C. nslonis Year Book 17 7 Ham’s Inland Revenue Year Book 17 1 His Lordship’s Whim . 4 s| Kew CLirdens (Illustrations) 26 13 * 1 aw\ers and their Clients «5 ils j M.iLhe, K N , Imperial Customs -o I moil 20 11 Men ol Non in Finance ii o- Mcictiandisc bv R.iil (Registered • I '^\siem) 17 5 Public Man 26 S Piihlie Meetings 26 Kc*d Palmc‘1 25 10 S(,h 25 Math leson’s Traffics 21 Pool ’s Manual (Amei lean) 23 ^ Raihoad Report ( An itoiin ol i) 27 Railwa\s in India 22 Ready Reckoners(N(^ aNnl \chanqL Tables. Inlcrtsl. etc )- Bin ei s anti St Her s’ ( ft i Qtison) t> Commission and Pank^ratn 22 Hensthn s (Muiiu)licaiion ) 17 Im^i nil (Y.itcP) t 8 Kilogramme I ibi - 2::, Kt tletmable Slot k'- iM itMit'-on) 21 Meices (Indi\n) 22 Robinson (Shalt ) _3 Sil\<‘T 'lables (Bar 'sib< ' ) i 5 BinkingFund and Annuity Tab'es Booth .iiul ( irai ic,' I (I)iai;>am) 12 Huglies i8 Speculation (m. liuts’i I " a'p 1 Stock L\t luuilieo Stock Exchange Manuals, etc - (_onianL;o Littu> i') ( or dinc^lov s ( juirk > Fcnn on i 1 k I uii i 1 .i'; 'd, .I'ld I Ol 1 1'^n i ^ H’f^eins L< on nd 1 ',i 1 t I’l 1 low to Read t’ ' \ i oiu \ ’m ciiid A’ III i 1 4 Stock Exchange Manuals, etca ont , ) — Invt ■‘tor’s Ledger 2t Investors’ Tables IVrmanent or Redeemable Stocks 18 Laws and Customs (Melsheimer) 21 Laws, I' nijlish and ftireign F iinds (Roylt ) 24 Options (Castelli) 13 Pool sAm'^rican Railroad M iiiual 23 Rapitl Shall Calculator Redt'i ni iblt Slot ks (.1 Diat^i mi) 12 kt ^isiration o! I r instei'^ 15 Rt binson (Sliart I iblesl 23 Knits ind I sa«i s (Stutheld) 2S Slock 1 \ch ni^i (Jthcial Initlli- Ut nt ( 25 W p’di \ s Xinencan Stocks 26 Tables ( w i Lvehant^t 1 ables, Inter t st Lilrlts krad\ Ret kont 1 s ruiS'iikiiiL; Fntid "ul Annui^v 1 1 b.t ■- r ’ t 1 Telegiaph Codes \t,t . (list t*l ) 2Q, Mi^t '' ineoiis (11 t i»' ) 30, .^i I h 1 'rt»m,. - ' ' .dt 32 Trustees 1 Mtt - I’lt n' ot I , iNi 1 uiuls 7 I rid t ’ I nisti I - \ct, iSi/i icj Mr u K s St 'tin . \ It list In vt ‘ me Ills 20 lit '■ t tin 'r I )i’! I' s t U Wilson’s Legal and Useful Handy Books List 7 10 NJAV r.OOKS Just Ready. MARITIME LAW. Illustrated in the F'orm of a Natrati\c t»t a Ship Im n and iiit ludiag the Aj^i c c me nt to Build he I until she Iccom-s i 1 oCil Loss By Albi.rt Sal MiFws Solicitor Price ‘dL THE COMPANIES ACT, 1900, with Commentaries. B) P F Simonson \uthor of Law Rdatinj.; to Deb ntures and Debenture Stock l^iiee 5 > RESPONSIBILITIES OF DIRECTORS AND WORKING OF COMPANIES UNDER THE COMPANIES ACTS. 1862-1900. By Anthony Pllhrook, Solicitor, Author of Numerous Book« on Companies’ Law' and Practice Price 3 s net TOKEN MONEY OF THE BANK OF ENGLAND. 1797-1816. By Maberlky Phillips, F S A Price 2 s St/ 1 1 Royal Exchange, London 5 N K W BOOKS — continued, HIS LORDSHIP’S WHIM. A NOVEL. By Gordon Cuming Whadcoat Price 65 HOW TO READ THE MONEY ARTICLE. By Chas Duguid IVice 2i be/ THE WORKMEN’S COMPENSATION ACT, 1897. A Pica for Revision By R T Thomson Price 2> br/ net A CHART OF READY REFERENCE FOR OFFICE USE, Showing at a glance the Returns to be made and Registers to be kept by Companies Registered under the Companies Acts having Capitals divided into Shares Compiled hj T L Wilkinson, Soheitoi Price 3s (-)y G Pi i r-l-.i-\\is Esq , O C Price Iss net THE LAW OF CHARTER PARTIES AND BILLS OF LADING. By Lawki NCI R Dueuw OH 1 H, Han istei -at Law Pi lee 2^ b} J a m mor(,an Esq , Hainstei-at Law Price 2s Bills of Sale. By Thos W Hwcuah Esq, Hanistei at Law Price* 25 Schonberg’s Chain Rule : A Manual o1 Bnel Commercial Anlhmttie Pnee Is 11 R{>yal BxcHVNCjr, London ^ County Council Guide. The Local Government Act, 1888. By !)» \'i\\ I RUN, Esq , Barnstei -at-Law Price B Hrf Lunacy Law. An Explanatory Treatise on the l^unacy Act 18^0 lor all who ha\c the chaij^e ol or are broui^ht in contact with, pei sons of unsound mind By I) CnAMirR, Esq , Bai rister-at -Law Price 1 i (v/ Houses and Lands as Investments. With Chapters on Mortgages Leases, and Building Societies By R Dhnnn Uhlin, Esq , Barrister at-Law PriL-e How to Invest Money. Revised Edition By E R Gahbott P rice L From School to Office. M'Vitten foi Ho>s By F B Ckouch P rice L Pearce’s Merchant’s Clerk. An Exposition of the Laws legulating the Opeiations ol the Counting House Tw^enty-third Edition Pi ice 2s The Theory of Book-keeping. By Bt-NJAviiN SM'noliM Price li Double Entry; or, the Principles of Perfect Book- keeping. By Erni st Holah Price 2.> Powers, Duties and Liabilities of Directors under the Companies Acts 1862-1890. By T W Haycraft, Esq , Barrister-at-Law Price L b in the Lnited States By W ILLIAW G SUMNE-H VoL II contains Historj ot Hanking in Gieat Bi itain Bj Henhy Duwing MACuroi' History of Banking in Russia By Ant E Horn. History of Savings Banks in the United States By John P TOW'NSEND VoL III contains History ot Banking in the Latin Nations by Pierre DES Essars , of the Banks ol Alsace-Lorraine, bj Arthur RArrALOMCH , and in Canada by B\ro\’ E W alker VOL IV contains Histor\ of Banking in Germany and Austria- Hungar} Scandinavian Nations, Holland, China, Japan etc ALDENHAM, LORD (H. H. GIBBS). 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Exchange Tables, to con\eit the Moneys ot Brazil, the Rivef l^Iate Poi ts, Chill Peru Ecuadoi , Caliloi nia, China, l\^rtugal Spain, etc ( Mill cis and Reis Dollars and Cents, Pesetas and Centimos), into Biitish Currency, and vice ■: t f sti varying hj' eij^hths ol a penny Pi ice 1(L bs at anj of the above rates, may be obtained by the inspection ol one page onl^ Nineteenth Edition, in 1 vol , Svo (pp 5(K)) price 10:» bti , cloth Ol strongly bound in calf, with the Rates per Cent cut in at the loic-cdge, price lb,s HALL, R. J. 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Consisting ol J0s,S0f) Code Woids Laitfu.l compiled in av^coidance with latest Convention lulcs Aiiangc..i i > completed hundreds Printed on hand-made papci sttongl) bound Pi icc £5 5s THE DUPLEX COMBINATION STANDARD CODE. Consisting of 150,000 Words. With a Uouhlc Set ot Figuiesfoi c\ei\ Woi d thus atfordmg oppur tunity for each Figuic System of Telegraphing to be used E\er\ word has been compiled to a\oid both literal and telegraphic similaiitics Pi icc £4 4i The Extension Duplex Code of about 45,000 more Words. These are published with the yiew to being either used in connection with the “Duplex,” or for special arrangement with the Figure System for Private Codes b\ agreement Price £1 Is. THE COMPLETE DUPLEX CODE, Of 195,000 Words in Alphabetical and Double Numerical Order, x the above tw'O Codes bound together Price £5 5s 30 Effingham Wilson, Ager’s Standard Telegram Code of 100,000 Words. 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Specially for the use of Tourists Compact and bound convenient!) for the pocket Weight only 2 oa Price Is BroomhalPs Comprehensive Cipher Code. Mining, Banking, \rbitrage Mercantile, etc Arranged foi near!) 170 (K)0 Phuiscs F*ricc £3 13s fir/ , cloth. Limp leather, price £4 45 Glauson-Thue’s ABC Universal Commercial Electric Telegraphic Code, Adapted for the L sc of Financiers .Merchants, Shipowners, Brokers, Agents, etc Fourth Edition Price 15s net Clauson-Thue’s A 1 Universal Electric Telegraph Code, Ff>i the Lse of Financiers, Merchants, Shipowners, Underwriters, Engineers, Brokers, Agents, etc Price 25s net Pigure Code for Stocks and Shares. To he used with the “Official V'ocabulary, ’ or any similai list of numbered W’ords Price 42? 11 Royal Bxchanob, London. 3t Havke’s Premier Cypher Telegraphic Code. Price lOs. Qd. See back page of this Catalogue. McNeill’s Mining and General Telegraph Code. Arranged to meet the requirements of Mining, Metallurgical and Civil Engineers, Directors of Mining and Smelting Companies, Bankers, Brokers, Solicitors and others. Price 21s. net. Moreing and MoCutoheon’s General Commercial and Mining Telegram Code. Comprising 274,000 Words and Phrases Price £5 5s net Moreing and Neal’s General and Mining Code. For the Use of Mining Companies, Mining Engineers, Stock- brokers. Financial Agents, and Trust and Finance Companies.- Price 21 s Official Vocabulary in Terminational Order. Price 40s net One-word “Firm Offer” Telegraphic Code with One- word “ 5 Offers ” Reply Code. Price 7s Orf. Scott’s Shipowners’ Telegraphic Code. New Edition 18% Price 21s Stockbrokers’ Telegraph Code. Pi icc 5s net Watkins’ Ship-broker’s Telegraph Code. Price £4 net Two copies, £7 net Whitelaw’s Telegraph Cyphers. 338,200 in all. 202,600 words, French, Spanish, Portuguese, Italian and Latin. Price . 150s. each net. 53.000 English \sords . . 50s ,, 42,600 German . , 50s , ,, 40.000 Dutch , . . . 50s ,, ,, 838,200 400.000 Cyphers in one continuous alphabetical order Price £12 10s 68.400 Latin, etc , etc (Original Edition), in- cluded in the above 202,600 60s. ,, ,, 25.000 English (Original Edition), included in the above 53,000 . 40s ,, ,, 22,500 ot the English words arranged 25 to the page, with the full width of the quarto page for tilling in phrases 60s. ,, ,, 14.400 of the Latin words arranged so as to represent any 3-letter group, or any three 2-6gure groups up to 24 15s. ,, Willink’s Public Companies’ Telegraph Code. Price 12s, 6