,,up-,,to-,,date ,,business ,,home ,,study ,,circle ,,library ,,edited ,,by ,,seymour ,,eaton ,,up ,,to ,,date ,,business ,,including ,,lessons ,,in ,,banking1 ,,exchange1 ,,business ,,geography1 ,,finance1 ,,transportation ,,and ,,commercial ,,law ,,from ,,the ,,chicago ,,record ,,new ,,york ,,the ,,doubleday ,mc,c,l,u,r,e ,,co4 #aijj ,copyright1 #ahig1 #ahih1 #ahii1 by the ,,chicago ,,record ,,copyright1 #ahii by ,,seymour ,,eaton ,,copyright1 #ahii1 #aijj1 by ,,victor ,f4 ,,lawson ,,contents ,i ,,general ,,business ,,information ,,page ,i4 ,commercial ,terms and ,usages #c ,,ii4 ,commercial ,terms and ,usages 7,continued7 #d ,,iii4 ,bank ,cheques #f ,,iv4 ,bank ,cheques 7,continued7 #h ,v4 ,bank ,cheques 7,continued7 #ab ,,vi4 ,bank ,drafts #ae ,,vii4 ,promissory ,notes #ah ,,viii4 ,the ,clearing-house ,system #ba ,,ix4 ,commercial ,drafts #bf ,x4 ,foreign ,exchange #ca ,,xi4 ,letters of ,credit #cg ,,xii4 ,joint-stock ,companies #da ,,xiii4 ,protested ,paper #df ,,xiv4 ,paper ,offered for ,discount #di ,,xv4 ,corporations #ea ,,xvi4 ,bonds #ed ,,xvii4 ,transportation #eg ,,xviii4 ,transportation ,papers #ei ,examination ,paper #fd ,,ii ,,business ,,geography ,,trade ,,features ,i4 ,the ,trade ,features of the ,british ,isles #fi ,,ii4 ,the ,trade ,features of ,france #id ,,iii4 ,germany #ajb ,,iv4 ,spain and ,italy #aaa ,v4 ,russia #abj ,,vi4 ,india #abi ,,vii4 ,china #aci ,,viii4 ,japan #adh ,,ix4 ,africa #aeg ,x4 ,australia and ,australasia #aff ,,xi4 ,south ,america #agg ,,xii4 ,canada #ahg ,,xiii4 ,the ,united ,states #aid ,examination ,paper #baj ,,iii ,,finance1 ,,trade1 ,,and ,,transportation ,i4 ,national and ,state ,banks #bae ,,ii4 ,savings ,banks and ,trust ,companies #bba ,,iii4 ,corporations and ,stock ,companies #bbe ,,iv4 ,borrowing and ,loaning ,money #bbh ,v4 ,collaterals and ,securities #bcc ,,vi4 ,cheques1 ,drafts1 and ,bills of ,exchange #bdj ,,vii4 ,the ,clearing-house ,system #bdh ,,viii4 ,commercial ,credits and ,mercantile ,agencies #bed ,,ix4 ,bonds #bfc ,x4 ,transportation by ,rail #bfg ,,xi4 ,freight ,transportation #bgd ,,xii4 ,railroad ,rates #bha ,,xiii4 ,stock and ,produce ,exchanges #bhh ,,xiv4 ,storage and ,warehousing #bid ,examination ,paper #cja ,,iv ,,commercial ,,law ,i4 ,the ,different ,kinds of ,contracts #cji ,,ii4 ,the ,parties to a ,contract #cab ,,iii4 ,the ,parties to a ,contract 7,continued7 #cae ,,iv4 ,the ,consideration in ,contracts #cah ,v4 ,the ,essentials of a ,contract #cba ,,vi4 ,contracts by ,correspondence #cbf ,,vii4 ,what ,contracts ,must ,be in ,writing #ccb ,,viii4 ,contracts for the ,sale of ,merchandise #ccf ,,ix4 ,the ,warranties of ,merchandise #cdj ,x4 ,common ,carriers #cdd ,,xi4 ,the ,carrying of ,passengers #cdg ,,xii4 ,on the ,keeping of ,things #cej ,,xiii4 ,concerning ,agents #cec ,,xiv4 ,the ,law ,relating to ,bank ,cheques #ceh ,,xv4 ,the ,law ,relating to ,leases #cfc ,,xvi4 ,liability of ,employers to ,employs #cfi ,,xvii4 ,liability of ,employers to ,employs 7,continued7 #cgc ,examination ,paper #cgg ,v ,,preparing ,,copy ,,for ,,the ,,press ,,and ,,proof-,,reading ,i4 ,preparing ,copy #cha ,,ii4 ,on the ,names and ,sizes of ,type #chb ,,iii4 ,the ,terms ,used in ,printing #chd ,,iv4 ,marks ,used in ,proof-reading #chg ,,illustrations ,i ,,general ,,business ,,information ,,page ,a ,poorly ,drawn ,cheque #g ,a ,carefully ,drawn ,cheque #h ,a ,cheque ,drawn so as to ,insure ,payment to ,proper ,party #i ,a ,cheque ,payable to ,order #aa ,a ,blank ,indorsement #aa ,a ,cheque ,made to ,obtain ,money for ,immediate ,use #ac ,a ,certified ,cheque #ad ,a ,cheque for the ,purchase of a ,draft #af ,a ,bank ,draft #ag ,ordinary ,form of ,promissory ,note #ah ,a ,promissory ,note ,filled ,out in an ,engraved ,blank #ai ,a ,special ,form for a ,promissory ,note #bj ,the ,advantages of the ,clearing-house ,system #bb ,the ,route of a ,cheque #bd ,backs of ,two ,paid ,cheques #be ,a ,sight ,draft ,developed from ,letter #bg ,a ,sight ,draft #bh ,an ,accepted ,ten-day ,sight ,draft #bh ,an ,accepted ,sight ,draft #bi ,a ,time ,draft #bi ,foreign ,exchange #cb ,a ,bill of ,exchange 7,private7 #ce ,a ,bill of ,exchange 7,banker's7 #cf ,first ,page of a ,letter of ,credit #ch ,second ,page of a ,letter of ,credit #dj ,a ,certificate of ,stock in a ,national ,bank #db ,a ,certificate of ,stock in a ,manufacturing ,company #dc ,a ,protest #dh ,a ,private ,bond #ee ,a ,shipping ,receipt 7,original7 #fj ,a ,steamship ,bill of ,lading #fa ,a ,local ,waybill #fb ,,ii ,,business ,,geography ,london the ,natural ,centre of the ,world's ,trade #gb ,british ,mercantile ,marine #gd ,london ,bridge #gf ,the ,coal-fields of ,england #hj ,the ,manchester ,ship ,canal #hd ,the ,great ,manufacturing ,districts of ,england #hh ,france ,compared in ,size with the ,states of ,illinois and ,texas #ie ,street ,scene in ,paris1 ,showing the ,bourse #ig ,approximate ,size of the ,german ,empire #ajd ,north ,central ,germany1 ,showing the ,ship ,canal and the ,leading ,commercial ,centres #aji ,spain ,compared in ,size with ,california #aac ,italy and its ,chief ,commercial ,centres #aag ,russia1 the ,british ,empire1 and the ,united ,states ,compared #aba ,moscow #abg ,comparative ,sizes of ,india and the ,united ,states #acc ,china and its ,chief ,trade ,centres #ade ,japan's ,relation to ,eastern ,asia #aee ,the ,partition of ,africa #aei ,australia #aga ,the ,most ,prosperous ,part of ,south ,america #ahc ,trade ,centres of ,canada and ,trunk ,railway ,lines #aib ,export ,trade of ,united ,states and ,great ,britain ,compared #aih ,united ,states ,manufactures and ,internal ,trade ,compared with the ,manufactures and ,internal ,trade of all ,other ,countries #aii ,principal ,articles of ,domestic ,exports of the ,united ,states #bje ,,iii ,,finance1 ,,trade1 ,,and ,,transportation ,the ,bank of ,england #baf ,showing ,cheque ,raised from #g4ej to #gj4ej #bda ,a ,certified ,cheque #bdd ,a ,bank ,draft #bde ,a ,bill of ,exchange #bdf ,illustrating ,cheque ,collections #beb ,a ,mercantile ,agency ,inquiry ,form #bei ,specimens of ,interest ,coupons #bff ,judge ,thomas ,m4 ,cooley1 ,first ,chairman of the ,interstate ,commerce ,commission #bhg ,the ,paris ,bourse #bhi ,interior ,view of ,new ,york ,stock ,exchange #bij ,v ,,preparing ,,copy ,,for ,,the ,,press ,,and ,,proof-,,reading ,a ,printer's ,proof #cij ,a ,printer's ,corrected ,proof #cia ,,general ,,business ,,information ,i4 ,,commercial ,,terms ,,and ,,usages ,illustration ,there is a distinction between the usage of the names ,,commerce and ,,business4 ,the interchange of products and manufactured articles between countries1 or even between different sections of the same country1 is usually referred to as commerce4 ,the term business refers more particularly to our dealings at home--that is1 in our own town or city4 ,sometimes this name is used in connection with a particular product1 as the coal business or the lumber business1 or in connection with a particular class1 as the dry-goods business or the grocery business4 ,the name commerce1 however1 seldom admits of a limited application4 ,in the ,united ,states ,,trade is synonymous with business4 ,the word ,,traffic applies more especially to the conveyance than to the exchange of products2 thus we refer to railroad traffic or lake traffic4 ,,products1 when considered articles of trade1 are called merchandise1 goods1 wares4 ,the term ,,merchandise has the widest meaning1 and includes all kinds of movable articles bought or sold4 ,,goods is applied more particularly to the supplies of a merchant4 ,,wares is commonly applied to utensils1 as glassware1 hardware1 etc4 ,,gross commonly means coarse or bulky4 ,in trade it is used with reference to both money and goods4 ,the gross weight of a package includes the weight of the case or wrappings4 ,the larger sum in an account or bill--that is1 the sum of money before any allowance or deductions are made--is the gross amount of the bill4 ,the word ,,net is derived from a ,latin word meaning neat1 clean1 unadulterated1 and indicates the amount of goods or money after all the deductions have been made4 ,to say that a price is net is to indicate that no further discount will be made4 ,the word ,,firm relates to solidity1 establishment1 strength1 and in a business sense signifies two or more persons united in partnership for the purpose of trading4 ,the word ,,house is very frequently used in the same sense4 ,in mercantile usage house does not mean the building in which the business is conducted1 but the men who own the business1 including1 perhaps1 the building1 stock1 plant1 and business reputation4 ,the name ,,concern is often used in a very similar way4 ,the name ,,market expresses a locality for the sale of goods1 and in commerce is often used to denote cities or even countries4 ,we say that ,boston is a leather market1 meaning that a large number of ,boston merchants buy and sell leather4 ,in the same sense we call ,chicago a grain market1 or ,new ,orleans a cotton market4 ,in its more restricted sense the name market signifies a building or place where meat or produce is bought and sold4 ,we say that the market is flooded with a particular article when dealers are carrying more of that article than they can find sale for4 ,there is no market for any product when there is no demand4 ,the money market is tight or close when it is difficult to borrow money from banks and money-lenders4 ,,ii4 ,,commercial ,,terms ,,and ,,usages 7,continued7 ,,the ,,natural ,,resources of a country are mainly the mineral commodities and agricultural produce that it yields4 ,the lumber and fish produced in a country are also among its natural resources4 ,the positions and industries of cities are usually fixed by natural conditions1 but the most powerful agent is the personal energy of enterprising and persevering men1 who1 by superior education1 or scientific knowledge1 or practical foresight1 have often been able to found industrial centres in situations which no geographical considerations would suggest or explain4 ,,commission ,,merchants receive and sell goods belonging to others for a compensation called a commission4 ,a ,,selling ,,agent is a person who represents a manufacturing establishment in its dealings with the trade4 ,the factory may be located in a small town1 while the selling agent has his office and samples in the heart of a great city4 ,as regards the quantity of goods bought or sold in a single transaction1 trade is divided into ,,wholesale and ,,retail4 ,the wholesale dealer sells to other dealers1 while the retail dealer sells to the consumer--that is1 the person who consumes1 or uses1 the goods4 ,a ,,jobber is one who buys from importers and manufacturers and sells to retailers4 ,he is constantly in the market for bargains4 ,the names ,,jobber and ,,wholesaler are often used in the same sense1 but a jobber sometimes sells to wholesalers4 ,,wholesale has reference to the quantity the dealer sells1 and not to the source from which he buys1 or the person to whom he sells4 ,the wholesaler1 as a rule1 deals in ,,staples--that is1 goods which are used season after season--though of course there are wholesalers in practically all businesses4 ,wholesale dealers send out ,,travellers or ,,drummers1 who carry samples of the goods4 ,frequently the traveller starts out with his samples from six months to a year in advance of the time of delivery4 ,it is quite a common thing for the retailer to order from samples merchandise which at the time of placing the order may not even be manufactured4 ,by the ,,price of a commodity is meant its value estimated in money1 or the amount of money for which it will exchange4 ,the exchangeable value of commodities depends at any given period partly upon the expense of production and partly upon the relation of supply and demand4 ,prices are affected by the creation of monopolies1 by the opening of new markets1 by the obstructing of the ordinary channels of commercial intercourse1 and by the anticipation of these and other causes4 ,it is the business of the merchant to acquaint himself with every circumstance affecting the prices of the goods in which he deals4 ,the entire world is the field of the modern merchant4 ,he buys raw and manufactured products wherever he can buy cheapest1 and he ships to whatever market pays him the highest price4 ,our corner grocer or produce-dealer may furnish us with beef from ,texas1 potatoes from ,egypt1 celery from ,michigan1 onions from ,jamaica1 coffee from ,java1 oranges from ,spain1 and a hundred other things from as many different points2 and yet1 so complete is the interlocking of the world's commercial interests1 and so great is the speed of transportation1 that he can supply us with these necessaries under existing conditions more easily and readily than if they were all grown on an adjoining farm4 ,,iii4 ,,bank ,,cheques ,a ,,cheque is an order for money1 drawn by one who has funds in the bank4 ,it is payable on demand4 ,in reality1 it is a sight draft on the bank4 ,banks provide blank cheques for their customers1 and it is a very simple matter to fill them out properly4 ,in writing in the amount begin at the extreme left of the line4 ,the illustration given below shows a poorly written cheque and one which could be very easily raised4 ,a fraudulent receiver could1 for instance write1 ninety before the six and #i before the figure #f1 and in this way raise the cheque from #f to #if4 ,if this were done and the cheque cashed1 the maker1 and not the bank1 would become responsible for the loss4 ,you cannot hold other people responsible for your own carelessness4 ,a cheque has been raised from #ajj to #aij by writing the words and ninety after the words one hundred4 ,one of the ciphers in the figures was changed to a #i by adding a tail to it4 ,it is wise to draw a running line1 thus 1 after the amount in words1 thus preventing any additional writing4 ,illustration3 ,a poorly drawn cheque4 ,the illustration on page #h shows a cheque carefully and correctly drawn4 ,the signature should be in your usual style1 familiar to the paying teller4 ,sign your name the same way all the time4 ,have a characteristic signature1 as familiar to your friends as is your face4 ,a cheque is a draft or order upon your bank1 and it need not necessarily be written in the prescribed form4 ,such an order written on a sheet of note-paper with a lead-pencil might be in every way a legally good cheque4 ,illustration3 ,a carefully drawn cheque4 ,usually cheques should be drawn to order4 ,the words ,pay to the order of ,john ,brown mean that the money is to be paid to ,john ,brown1 or to any person that he orders it paid to4 ,if a cheque is drawn ,pay to ,john ,brown or ,bearer or simply ,pay to ,bearer1 any person that is the bearer can collect it4 ,the paying teller may ask the person presenting the cheque to write his name on the back1 simply to have it for reference4 ,in writing and signing cheques use good black ink and let the copy dry a little before a blotter is used4 ,the subject of indorsements will be treated in a subsequent lesson4 ,,iv4 ,,bank ,,cheques 7,continued7 ,the banks of this country make it a rule not to cash a cheque that is drawn payable to order1 unless the person presenting the cheque is known at the bank1 or unless he satisfies the paying teller that he is really the person to whom the money should be paid4 ,it must be remembered however1 that a cheque drawn to order and then indorsed in blank by the payee is really payable to bearer1 and if the paying teller is satisfied that the payee's signature is genuine he will not likely hesitate to cash the cheque4 ,in ,england all cheques apparently properly indorsed are paid without identification4 ,illustration3 ,a cheque drawn so as to insure payment to proper party4 ,in drawing a cheque in favour of a person not likely to be well known in banking circles1 write his address or his business after his name on the face of the cheque4 ,for instance1 if you should send a cheque to ,john ,brown1 ,st4 ,louis1 it might possibly fall into the hands of the wrong ,john ,brown2 but if you write the cheque in favour of ,john ,brown1 #bdf ,west ,avenue1 ,st4 ,louis1 it is more than likely that the right person will collect it4 ,if you wish to get a cheque cashed where you are unknown1 and it is not convenient for a friend who has an account at the bank to go with you for the purpose of identification1 ask him to place his signature on the back of your cheque1 and you will not likely have trouble in getting it cashed at the bank where your friend keeps his account4 ,by placing his signature upon the back of the cheque he guarantees the bank against loss4 ,a bank is responsible for the signatures of its depositors1 but it cannot be supposed to know the signatures of indorsers4 ,the reliable identifier is in reality the person who is responsible4 ,,indorsing ,,cheques ,in indorsing cheques note the following points3 #a4 ,write across the back--not lengthwise4 #b4 ,if your indorsement is the first1 write it about two inches from the top of the back2 if it is not the first indorsement1 write immediately under the last indorsement4 #c4 ,do not indorse wrong end up2 the top of the back is the left end of the face4 #d4 ,write your name as you are accustomed to write it1 no matter how it is written on the face4 ,if you are depositing the cheque write or stamp ,for ,deposit or ,pay to ,,bank1 as may be the custom1 over your signature4 ,this is hardly necessary if you are taking the cheque yourself to the bank4 ,a cheque with a simple or blank indorsement on the back is payable to bearer1 and if lost the finder might succeed in collecting it2 but if the words ,for ,deposit appear over the name the bank officials understand that the cheque is intended to be deposited1 and they will not cash it4 #e4 ,if you wish to make the cheque payable to some particular person by indorsing1 write ,,pay ,,to 7,,name7 or ,,order1 and under this write your own name as you are accustomed to sign it4 #f4 ,do not carry around indorsed cheques loosely4 ,such cheques are payable to bearer and may be collected by any one4 #g4 ,if you receive a cheque which has been transferred to you by a ,,blank indorsement 7name of indorser only71 and you wish to hold it a day or two1 write over the indorsement the words ,,pay ,,to ,,the ,,order ,,of 7yourself--writing your own name74 ,this is allowable legally4 ,the cheque cannot then be collected until you indorse it4 ,illustration3 ,a cheque payable to order and a blank indorsement4 #h4 ,an authorised stamped indorsement is as good as a written one4 ,whether such indorsements are accepted or not depends upon the regulations of the clearing-house in the particular city in which they are offered for deposit4 ,the written indorsement is considered safer for transmission of out-of-town collections4 #i4 ,if you are indorsing for a company1 or society1 or corporation1 write first the name of the company 7this may be stamped on7 and then your own name1 followed by the word ,,treas4 #aj4 ,if you have power of attorney to indorse for some particular person1 write his name1 followed by your own1 followed by the word ,,attorney or ,,atty41 as it is usually written4 #aa4 ,it is sometimes permissible to indorse the payee's name thus1 ,,by 7your own name74 ,this may be done by a junior member of a concern when the person authorised to indorse cheques is absent and the cheques are deposited and not cashed4 #ab4 ,do not write any unnecessary information on the back of your cheque4 ,a story is told of a woman who received a cheque from her husband1 and when cashing it wrote ,your loving wife above her name on the back4 ,v4 ,,bank ,,cheques 7,continued7 ,if you wish to draw money from your own account1 the most approved form of cheque is written ,pay to the order of ,cash4 ,this differs from a cheque drawn to ,bearer4 ,the paying teller expects to see yourself1 or some one well known to him as your representative1 when you write ,cash4 ,if you write ,pay to the order of 7your own name7 you will be required to indorse your cheque before you can get it cashed4 ,if your note is due at your own bank and you wish to draw a cheque in payment1 write ,pay to the order of ,bills ,payable4 ,if you wish to write a cheque to draw money for wages1 write ,pay to the order of ,pay-roll4 ,if you wish to write a cheque to pay for a draft which you are buying1 write ,pay to the order of ,n4 ,y4 ,draft and ,exchange1 or whatever the circumstances may call for4 ,illustration3 ,a cheque made to obtain money for immediate use4 ,if you wish to stop the payment of a cheque which you have issued you should notify the bank at once1 giving full particulars4 ,banks have a custom1 after paying and charging cheques1 of cancelling them by punching or making some cut through their face4 ,these cancelled cheques are returned to the makers at the end of each month4 ,if you have deposited a cheque and it is returned through your bank marked ,no ,funds1 it signifies that the cheque is worthless and that the person upon whose account it was drawn has no funds to meet it4 ,your bank will charge the amount to your account4 ,the best thing to do in such a case is to hold the cheque as evidence of the debt1 and write the person who sent it to you1 giving particulars and asking for an explanation4 ,if you wish to use your cheque to pay a note due at some other bank1 or in buying real estate1 or stocks1 or bonds1 you may find it necessary to get the cheque certified4 ,this is done by an officer of the bank1 who writes or stamps across the face of the cheque the words ,certified or ,good ,when ,properly ,indorsed1 and signs his name4 7,see illustration47 ,the amount will immediately be deducted from your account1 and the bank1 by guaranteeing your cheque1 becomes responsible for its payment4 ,banks will usually certify any cheque drawn upon them if the depositor has the amount called for to his credit1 no matter who presents the cheque1 and this certifying makes it feasible for a man to carry in his pocket any amount of actual cash4 ,if you should get a cheque certified and then not use it1 deposit it in your bank1 otherwise your account will be short the amount for which the cheque is drawn4 ,in ,canada all cheques are presented to the ledger-keeper for certification before being presented to the paying teller4 ,illustration3 ,a certified cheque4 ,,the ,,usefulness ,,of ,,banks ,banks are absolutely necessary to the success of modern commercial enterprises4 ,they provide a place for the safe-keeping of money and securities1 and they make the payment of bills much more convenient than if currency instead of cheques were the more largely used4 ,but the great advantage of a banking institution to a business man is the opportunity it affords him of borrowing money1 of securing cash for the carrying on of his business while his own capital is locked up in merchandise or in the hands of his debtors4 ,another important advantage is to be found in the facilities afforded by banks for the collection of cheques1 notes1 and drafts4 ,,vi4 ,,bank ,,drafts ,a draft is a formal demand for the payment of money4 ,your bank cheque is your sight draft on your bank4 ,it is not so stated1 but it is so understood4 ,a cheque differs from an ordinary commercial draft1 both in its wording and in its purpose4 ,the bank is obliged to pay your cheque if it holds funds of yours sufficient to meet it1 while the person upon whom your draft is drawn may or may not honour it at his pleasure4 ,a cheque is used for paying money to a creditor1 while a draft is used as a means of collecting money from a debtor4 ,nearly all large banks keep money on deposit with one or more of the banks located in the great commercial centres4 ,they call these centrally located banks their correspondents4 ,the larger banks have correspondents in ,new ,york1 ,chicago1 ,boston1 and other large cities4 ,as business men keep money on deposit with banks to meet their cheques1 so banks keep money on deposit with other banks to meet their drafts4 ,a ,,bank ,,draft is simply the bank's cheque1 drawn upon its deposit with some other bank4 ,banks sell these cheques to their customers1 and merchants make large use of them in paying bills in distant cities4 ,these drafts1 or ,,cashiers' ,,cheques1 as they are sometimes called1 pass as cash anywhere within a reasonable distance of the money centre upon which they are drawn4 ,bankers' drafts on ,new ,york would1 under ordinary financial conditions1 be considered cash anywhere in the ,united ,states4 ,a draft on a foreign bank is usually called a ,,bill ,,of ,,exchange4 ,illustration3 ,a cheque for the purchase of a draft4 ,cheques have come to be quite generally used for the payment of bills even at long distances4 ,if a business man desires to close an important contract requiring cash in advance he sends a bank draft1 if at a distance1 or a certified cheque1 if in the same city4 ,if he desires simply to pay a debt he sends his own personal cheque4 ,bank drafts are quite generally used by merchants in the ,west to pay bills in the ,east4 ,a draft on ,new ,york bought in ,san ,francisco is cash when it reaches ,new ,york1 while a ,san ,francisco cheque is not cash until it returns and is cashed by the bank upon which it is drawn4 ,in the ordinary course of business cheques are considered cash no matter upon what bank drawn4 ,the bank receiving them on deposit gives the depositor credit at once1 even though it may take a week before the value represented by the cheque is in the possession of the bank4 ,illustration3 ,a bank draft4 ,all wholesale transactions and a large proportion of retail transactions are completed by the passing of instruments of credit--notes1 cheques1 drafts1 etc42 a part only of the retail trade is conducted by actual currency-bills and change4 ,banks handle the bulk of these transferable titles and deal to a very small extent--that is1 proportionally--in actual money4 ,the notes1 drafts1 bills of exchange1 and bank cheques are representative of the property passing by title in money from the producers to the consumers4 ,a small proportion--perhaps six or eight per cent4--of these transactions is conducted by the use of actual bank or legal-tender notes4 ,this trade in instruments of credit amounts in the ,united ,states to fifty billions of dollars yearly4 ,,vii4 ,,promissory ,,notes ,illustration3 ,ordinary form of promissory note4 ,a ,,promissory ,,note is a written promise to pay a specified sum of money4 ,at the time of the note's issue--that is1 when signed and delivered--two parties are connected with it1 the maker and the payee4 ,the maker is the person who signs or promises to pay the note2 the payee is the person to whom or to whose order the note is made payable4 ,,negotiable in a commercial sense means transferable1 and a negotiable note is a note which can be transferred from one person to another4 ,a note to be made negotiable must contain the word bearer or the word order--that is1 it must be payable either to bearer1 or to the order of the payee4 ,a ,,non-,,negotiable note is payable to a particular person only4 ,a note may be written on any kind of paper1 in ink or pencil4 ,it is wise1 however1 to use ink to prevent changes4 ,all stationers sell blank forms for notes which are easily filled in4 ,the samples of notes which appear in this lesson are selected simply to illustrate to students the fact that there are a great many special forms of notes in common use4 ,the wording differs slightly in different ,states4 ,the ,,date of a note is a matter of the first importance4 ,some bankers and business men consider it better to draw notes payable at a certain fixed time1 as1 ,i promise to pay on the #ajth of ,march1 #ahig4 ,the common custom is to make notes payable a certain number of days or months after date4 ,a note made or issued on ,sunday is void4 ,the ,,day ,,of ,,maturity is the day upon which a note becomes legally due4 ,in several of the ,states a note is not legally due until three days1 called ,,days ,,of ,,grace1 after the expiration of the time specified in the note4 ,illustration3 ,a promissory note filled out on an engraved blank4 ,the words ,,value ,,received1 which usually appear upon notes1 are not necessary legally4 ,thousands of good notes made without any value consideration are handled daily4 ,the ,,promise ,,to ,,pay of a negotiable note must be unconditional4 ,it cannot be made to depend upon any contingency whatever4 ,notes that are made in settlement of genuine business transactions come under the head of regular1 legitimate business paper4 ,an ,,accommodation note is one which is signed1 or indorsed1 simply as an accommodation1 and not in settlement of an account or in payment of an indebtedness4 ,with banks accommodation paper has a deservedly hard reputation4 ,however1 there are all grades and shades of accommodation paper1 though it represents no actual business transaction between the parties to it1 and rests upon no other foundation than that of mutual agreement4 ,no contract is good without a consideration1 but this is only true between the original parties to a note4 ,the third party or innocent receiver or holder of a note has a good title1 and can recover its value1 even though it was originally given without a valuable consideration4 ,an innocent holder of a note which had been originally lost or stolen has a good title to it if he received it for value4 ,illustration3 ,a special form for a promissory note4 ,a note does not draw interest until after maturity1 unless the words ,,with ,,interest appear on the face4 ,notes draw interest after maturity and until paid1 at the legal rate4 ,a note should be presented for payment upon the exact day of maturity4 ,notes made payable at a bank1 or at any other place1 must be presented for payment at the place named4 ,when no place is specified the note is payable at the maker's place of business or at his residence4 ,in finding the date of maturity it is important to remember that when a note is drawn days after date the actual days must be counted1 and when drawn months after date the time is reckoned by months4 ,to ,,discount a note is to sell it at a discount4 ,the rates of discount vary according to the security offered1 or the character of the loan1 or the state of the money market4 ,for ordinary commercial paper the rates run from four to eight per cent4 ,notes received and given by commercial houses and discounted by banks are not usually for a longer period than four months4 ,,viii4 ,,the ,,clearing-,,house ,,system ,in large cities cheques representing millions of dollars are deposited in the banks every day4 ,the separate collection of these would be almost impossible were it not for the clearing-house system4 ,each large city has its clearing-house4 ,it is an establishment formed by the banks themselves1 and for their own convenience4 ,the leading banks of a city connect themselves with the clearing-house of that city1 and through other banks with the clearing-houses of other cities1 particularly ,new ,york4 ,country banks connect themselves with one or more clearing-houses through city banks1 which do their business for them4 ,the ,new ,york banks1 largely through private bankers1 branches of foreign banking houses1 connect themselves with ,london1 so that each bank in the world is connected indirectly with every other bank in the world1 and in ,london is the final clearing-house of the world4 ,illustration3 ,the advantages of the clearing-house system4 ,suppose that the above diagram represents the banks and clearing-house of a city1 and also the two business houses of ,brown and ,smith4 ,brown keeps his money on deposit in ,bank ,e1 and ,smith in ,bank ,b4 ,brown sends 7by mail7 a cheque to ,smith in payment of a bill4 ,now1 ,smith can come all the way to ,bank ,e1 and1 if he is properly identified1 can collect the cheque4 ,he does not do this1 however1 but deposits ,brown's cheque in ,bank ,b1 the bank where he does his banking business4 ,now1 ,b cannot send to ,e to get the money4 ,it could do this1 perhaps1 if it had only one cheque1 but it has taken in hundreds of cheques1 some1 perhaps1 on every bank in town1 and on many banks out of town4 ,it would take a hundred messengers to collect them4 ,so1 instead of ,b's going to ,e1 they meet half-way1 or at a central point called a clearing-house1 and there collect their cheques4 ,b may have #ejjj in cheques on ,e1 and ,e may have #djjj in cheques on ,b1 so that the exchange can be made--that is1 the cheques can be paid by ,e paying the difference of #ajjj1 which is done1 not direct1 but through the officers of the clearing-house4 ,now ,bank ,e's messenger carries ,brown's cheque back with him and enters it up against ,brown's account4 ,this in simple language is the primary idea of the clearing-house4 ,the clearings in ,new ,york in one day amount to from one to two hundred millions of dollars4 ,by clearings we mean the value of the cheques which are cleared--that is1 which change hands through the clearing-house4 ,usually once a week 7in some cities oftener7 the banks of a city make to their clearing-house a report1 based on daily balances1 of their condition4 ,illustration3 ,the route of a cheque4 ,to illustrate the connection between banks at distant points let us suppose that ,b of ,media1 ,pennsylvania1 who keeps his money on deposit in the ,first ,national ,bank of ,media1 sends a cheque in payment of a bill to ,k of ,south ,evanston1 ,illinois4 ,k deposits the cheque in the ,citizens ,bank of his town and receives immediate credit for it upon his bank-book1 just the same as though the cheque were drawn upon the same or a near-by bank4 ,the ,citizens ,bank simply sends the cheque1 with other distant cheques1 to its correspondent1 the ,national ,bank of the ,republic1 ,chicago1 on deposit1 in many instances in about the same sense that ,k deposited the cheque in the ,citizens ,bank4 ,the ,national ,bank of the ,republic sends the cheque1 with other cheques1 to its ,new ,york correspondent1 the ,national ,park ,bank4 ,it may possibly send to ,philadelphia direct1 or even to ,media2 but this is very unlikely4 ,the ,national ,park ,bank sends the cheque to its ,philadelphia correspondent1 say the ,penn ,national ,bank4 ,now the clearing-house clerk of the ,penn ,national carries the cheque to the ,philadelphia clearing-house and enters it1 with other cheques1 on the ,first ,national of ,media4 ,custom1 however1 differs very greatly in this particular4 ,many near-by country banks clear through city banks2 others clear less directly4 ,if the ,first ,national ,bank of ,philadelphia is known at the clearing-house as the representative of the ,first ,national ,bank of ,media it likely has money belonging to this ,media bank on deposit4 ,in that case the cheque is charged up against the account of the ,first ,national of ,philadelphia4 ,this bank then sends the cheque to the ,first ,national of ,media1 by which it is charged up against ,b4 ,this system of collection of cheques is about as perfect as is the post-office system of carrying registered mail4 ,illustration3 ,backs of two paid cheques4 ,now1 the banks and clearing-houses through which the cheque passes on its way home stamp their indorsements and other information upon the back4 ,our illustration shows the backs of two cheques which have travelled4 ,millions of dollars are collected by banks daily in this way1 and all without expense to their customers4 ,it is estimated that these collections cost the ,new ,york ,city banks more than two million dollars a year in loss of interest while the cheques are en route4 ,ten thousand collection letters are sent out daily by the banks of ,new ,york ,city alone4 ,,ix4 ,,commercial ,,drafts ,a ,,commercial ,,draft bears a close resemblance to a letter from one person to another requesting that a certain sum of money be paid to the person who calls1 or to the bank or firm for whom he is acting4 ,for instance1 the draft shown in the first illustration might be worded something like this3 ,st4 ,louis1 ,mo41 ,feb4 #bb1 #ahii4 ,mr4 ,robert ,elsmere1 ,jefferson ,city1 ,mo4 ,my dear ,sir3 ,will you kindly pay to the messenger from the ---- ,bank who will call to-morrow the sum of three hundred and ninety-seven dollars and charge to my account8 ,yours1 very truly1 ,david ,grieve4 ,illustration3 ,a sight draft developed from the above letter4 ,commercial usage1 however1 recognises a particular form in which this letter is to be written1 and the address of the person for whom it is intended is usually written at the lower left-hand corner instead of on an envelope4 ,commercial drafts usually reach the persons upon whom they are drawn through the medium of the banks rather than directly by mail4 ,let us illustrate4 ,suppose that ,a of ,chicago owes ,b of ,buffalo #bjj1 and ,b desires to collect the amount by means of a draft4 ,he fills in a blank draft1 signs it1 and addresses it on the lower left-hand corner to ,a4 ,instead of sending it by mail he takes it to his bank--that is1 deposits it for collection4 ,it will reach a ,chicago bank in about the same way that cheques for collection go from one place to another4 ,a messenger from the ,chicago bank will carry the draft to ,a's office and present it for payment or for acceptance4 ,if it is a sight draft--that is1 a draft payable when ,a sees it--he may give cash for it at once and take the draft as his receipt4 ,if he has not the money convenient he may write across the face ,accepted1 payable at 7his7 ,bank1 as in the illustration4 ,it will then reach his bank and be paid as his personal cheque would be1 and should be entered in his cheque-book4 ,banks usually give one day upon sight drafts4 ,the draft will not be presented a second time1 but will be held at the bank until the close of the banking hours the next day1 where ,a can call to pay if he chooses4 ,leniency in the matter of time will depend largely upon ,b's instructions and the bank's attitude toward ,a4 ,if the draft is a time draft--that is1 if ,b gives ,a time1 a certain number of days1 in which to pay it--,a1 if he wishes to pay the draft1 accepts it4 ,he does this by writing the word accepted with the date and his signature across the face of the draft4 ,he may make it payable at his bank as he would a note1 if he so desires4 ,he then returns the draft to the messenger1 and if the time is long the draft is returned to ,b2 if only a few days1 the bank holds it for collection4 ,illustration3 ,no4 #a4 ,a sight draft4 ,illustration3 ,no4 #b4 ,an accepted ten-day sight draft4 ,illustration3 ,no4 #c4 ,an accepted sight draft4 ,illustration3 ,no4 #d4 ,a time draft4 ,an accepted draft is really a promissory note1 though it is more often called an acceptance4 ,when a man pays or accepts a draft he is said to honour it4 ,in the foregoing illustration ,a is not obliged either to pay or to accept the draft4 ,it is not binding upon him any more than a letter would be4 ,he can refuse payment just as easily and as readily as he could decline to pay a collector who calls for payment of a bill4 ,of course1 if a man habitually refuses to honour legitimate drafts it may injure his credit with banks and business houses4 ,it is a very common thing to collect distant accounts by means of commercial drafts4 ,a debtor is more likely to meet--that is1 to pay--a draft than he is to reply to a letter and inclose his cheque4 ,it is really more convenient1 and safer1 too1 for there is some risk in sending personal cheques through the mail4 ,there are some houses that make all their payments by cheques1 while there are others which prefer to have their creditors at a distance draw on them for the amounts due4 ,if a business man who has been accustomed to honour drafts continues for a period to dishonour them1 the banks through which the drafts pass naturally conclude that he is unable to meet his liabilities4 ,some houses deposit their drafts for collection in their home banks1 while others have a custom of sending them direct to some bank in or near the place where the debtor resides4 ,if the place is a very small one the collection is sometimes made through one of the express companies4 ,when goods are sold for distinct periods of credit1 and it is generally understood that maturing accounts are subject to sight drafts1 there should be no need of notifying the debtor in advance4 ,some houses1 however1 make a general custom of sending notices ten days in advance1 stating that a draft will be drawn if cheque is not received in the meantime4 ,notice the illustrations4 ,the protest notice at the left of ,nos4 #a1 #b1 and #d is intended for the bank presenting the draft for payment4 ,the reason for this will be fully explained in our lesson on protested paper4 7,see ,,lesson ,,xiii47 ,no4 #b shows an accepted draft payable to the order of a bank in the city upon which it is drawn4 ,no4 #a is payable to the order of a bank in the city of the drawer4 ,no4 #c is a sight draft payable to the order of a bank and accepted payable at a bank4 ,no4 #d is a time draft payable to ourselves--that is1 the ,pennsylvania ,steel ,company4 ,drafts are often discounted at banks before acceptance where the credit of the drawer is good4 ,in such cases the drafts which are dishonoured are charged up against the drawer's account4 ,x4 ,,foreign ,,exchange ,it is quite in order that we should follow lessons on the clearing-house and commercial drafts with a lesson on foreign exchange4 ,we learned in the last lesson that commercial drafts are made use of to facilitate the collection of accounts4 ,they are simply formal demands for the payment of legitimate debts4 ,when these formal demands are made upon foreign debtors they are called bills of exchange2 and the process of buying and selling these drafts1 the drafts themselves1 and the fluctuations in price1 all are included in the general name exchange4 ,illustration3 ,foreign exchange4 ,to illustrate the principles of exchange let us suppose that the following transactions have occurred3 #a4 ,c of ,boston has sold goods1 #bjjj1 to ,h of ,hamburg4 #b4 ,d of ,chicago has sold goods1 #ejjj1 to ,f of ,glasgow4 #c4 ,m of ,chicago has sold goods1 #cjjj1 to ,k of ,london4 #d4 ,e of ,philadelphia has sold goods1 #fjjj1 to ,r of ,paris4 #e4 ,p of ,new ,york has sold goods1 #ajjj1 to ,g of ,paris4 ,c draws on ,h for #bjjj1 sells the draft to a banking-house in ,boston2 they send to ,bank ,a of ,new ,york1 and the ,new ,york bank to their ,london correspondent1 say ,bank ,b1 with instructions to collect from ,hamburg4 ,d draws in a similar way on ,f4 ,e draws on ,r1 and ,p on ,g4 ,suppose that ,m instead of drawing on ,k receives a draft drawn by ,bank ,b of ,london on ,bank ,a of ,new ,york1 payable to ,m's order4 ,,america has sold goods worth #ag1jjj to ,,europe4 ,,europe 4 4 4 4 4 4 owes #ag1jjj to 4 4 4 4 4 4 ,,america ,but ,b has paid ,a #cjjj4 --------------- ,b 4 4 4 4 4 4 therefore owes #ad1jjj to 4 4 4 4 4 4 ,a ,now it will cost ,b a considerable sum of money to ship #ad1jjj in gold to ,a1 for all exchanges between ,europe and ,america are payable in gold4 ,suppose that ,s of ,new ,york owes ,t of ,london #ad1jjj1 and ,t draws on ,s and takes the draft to ,bank ,b in ,london and offers it for sale4 ,will ,b offer more or less than #ad1jjj for the bill of exchange or draft8 ,he will offer more4 ,it will be cheaper for him to pay a premium for the draft than to ship gold1 for he can send this draft to ,bank ,a to pay his indebtedness1 and ,a can collect from ,s4 ,in the money market in ,new ,york there is a constant supply of exchanges 7drafts7 on ,london1 and in ,london a constant supply of exchanges on ,new ,york4 ,experience has shown that at all times the number of persons in ,europe indebted to ,american business houses is about 7though of course not actually7 the same as the number of persons in ,america indebted to ,european houses4 ,hence when ,a of ,new ,york wishes to make a payment to ,b of ,london he does not send the actual money1 but goes into the market--that is1 to a banker doing a foreign business--and buys a draft1 called a bill of exchange1 which is in reality the banker's order on his ,london correspondent1 asking the latter to pay the money to the person named4 ,it may be that about the same time some ,london merchant who owes money in ,new ,york goes to the very same ,london banker and buys a draft on the ,new ,york bank4 ,in this way the one draft cancels the other1 and when there is a difference at the end of the week or month the actual gold is sent across to balance the account4 ,these exchanges have a sort of commodity value1 and like all commodities1 depend upon the law of supply and demand4 ,when gold is being shipped abroad we say that the balance of trade is against us--that is1 we are buying more from ,europe than ,europe is buying from us1 and the gold is shipped to pay the balance or difference4 ,the par of the currency of any two countries means1 among merchants1 the equivalency of a certain amount of the 7coin7 currency of the one in the 7coin7 currency of the other1 supposing the currencies of both to be of the precise weight and purity fixed by the respective mints4 ,the par of exchange between ,great ,britain and the ,united ,states is #d4hf-b_/c2 that is1 #a sterling is worth #d4hf-b_/c4 ,exchange is quoted daily in ,new ,york and other city papers at #d4hg1 #d4hh1 #d4hh-a_/b1 etc41 for sight bills and at a higher rate for sixty-day bills4 ,business men who are accustomed to watching fluctuations in exchange rates use the quotations as a sort of barometer to foretell trade conditions4 ,the imports and exports of bullion 7uncoined gold7 are the real test of exchange4 ,if bullion is stationary1 flowing neither into nor out of a country1 its exchanges may be truly said to be at par2 and on the other hand1 if bullion is being exported from a country1 it is a proof that the exchange is against it2 and conversely if there be large importations4 ,the cost of conveying bullion from one country to another forms the limit within which the rise and fall of the real exchange between them must be confined4 ,if1 for illustration1 a ,new ,york merchant owes a debt in ,london and exchange costs him1 say1 two per cent41 and the cost of shipping the gold is only one per cent41 it will be to his advantage to pay the debt by sending the actual coin across4 ,a favourable real exchange operates as a duty on exportation and as a bounty on importation4 ,illustration3 ,a bill of exchange 7private74 ,it is to the interest of merchants or bankers who deal in foreign bills to buy them where they are the cheapest and to sell them where they are the dearest4 ,for this reason it might often be an advantage for a ,new ,york merchant to buy a bill on ,london to pay a debt in ,paris4 ,illustration3 ,a bill of exchange 7banker's74 ,two illustrations of bills of exchange are given in this lesson4 ,each is drawn in duplicate4 ,the original is sold or sent abroad1 while the duplicate is preserved as a safeguard against the loss of the original4 ,when one is paid the other is of no value4 ,notice the similarity between bills of exchange as shown here and commercial drafts as shown in our last lesson4 ,the first form shows a draft made by a coal company upon a steamship company to pay for coal supplied to a particular steamer4 ,suppose that the steamship company has a contract with ,robert ,hare ,powel ,co4 of ,philadelphia to supply coal to their steamers4 ,the steamer ,cardiff1 when in port at ,philadelphia1 is supplied2 the bill is certified to by the engineer2 the master 7captain7 of the vessel signs ,powel ,co4's draft 7and in doing this really makes it the captain's draft72 the bill is receipted4 ,now ,powel ,co4 sell this exchange 7draft7 on ,london to a broker or banker doing a foreign business4 ,it is forwarded to ,london and presented in due time at the office of the ,wales ,navigation ,company for payment4 ,the second form shows a bill of exchange drawn by a ,philadelphia banking house upon a ,london banking house and payable to the order of the firm buying the draft4 ,c4 ,h4 ,bannerman ,co4 will send this bill 7the original7 to pay an account in ,europe4 ,the first form bears the same relation to a commercial draft that the second does to a cashier's cheque4 ,illustration3 ,first page of a letter of credit4 ,,xi4 ,,letters ,,of ,,credit ,the usual instruments of credit by means of which travellers abroad draw upon their deposits at home are known as ,,circular ,,letters ,,of ,,credit4 ,these forms of credit are of such common use that every one should be familiar with their form4 ,we reproduce here a facsimile of the first and second pages of a circular letter for #ajjj1 copied with slight change of names from an actual instrument4 ,the first page shows the credit proper authorising the various correspondents of the bank issuing it to pay the holder1 whose signature is given on its face1 money to the extent of #ajjj4 ,the names of the banks who are authorised to advance money upon the letter are usually printed upon the third and fourth pages1 though letters issued by well-known banking houses are usually recognised by any banking house to which they are presented4 ,the second illustration shows how the holder of a particular letter availed himself of its advantages4 ,it gives the names of the banks to which he presented his letter1 and the amounts paid by each4 ,with such a letter a traveller could make a trip around the world and not have in his pocket at any one time more gold or silver or bills than would be necessary to meet immediate expenses4 ,suppose that ,a4 ,b4 is about to make a ,european trip4 ,he goes to a bank doing a foreign business1 say ,brown ,bros4 ,co4 of ,new ,york ,city1 and asks for a circular letter for #ajjj1 for which he is obliged to pay about #dhhj4 ,copies of ,a4 ,b4's signature are left with ,brown ,bros4 ,co41 and may perhaps be forwarded to their foreign banking houses4 ,when ,a4 ,b4 presents himself at a ,glasgow or ,paris bank with his letter of credit1 and asks for a payment upon it1 the banker asks him to sign a draft on ,brown ,bros4 ,co41 ,new ,york1 or more likely on their ,london bank1 for the amount required1 which amount is immediately indorsed on the second page of the letter of credit1 so that when the indorsements equal the face the letter is fully paid4 ,a4 ,b4 is simply drawing upon his own account--that is1 upon the money he deposited to secure the letter of credit4 ,payment is usually made upon the simple identification or comparison of signatures4 ,if a traveller should lose his letter of credit he should notify at once the bank issuing it and1 if possible1 the banks upon which drawn4 ,illustration3 ,second page of a letter of credit 7used74 ,there are several other forms of travellers' credits in use4 ,the ,cheque ,bank1 an ,english institution with a branch in ,new ,york ,city1 issues to travellers a book of cheques1 each of which can be filled up only to a limited amount1 as shown by printed and perforated notices appearing on the face4 ,for instance1 for #ajj one can buy a cheque-book containing fifty blank cheques1 each good1 when properly filled up1 for #b4 ,each of these cheques is really a certified cheque1 only it is certified in advance of issue4 ,any of the thousand or more foreign banks which are agents for the ,cheque ,bank sell these cheque-books1 and cash the cheques when presented4 ,the amounts that may be short drawn go toward the cost of a new cheque-book1 or may be returned in cash4 ,the ,american and other express companies have forms of travellers' cheque-books very similar to those issued by the ,cheque ,bank4 ,,xii4 ,,joint-,,stock ,,companies ,to organise a stock company it is necessary for a number of persons to come together and make a certificate to the effect that they propose to form a company to bear a certain name1 for the purpose of transacting a certain kind of business at a certain place4 ,the certificate states that they propose to issue a certain number of shares of stock at a certain price per share1 that the capital stock is to be a certain amount1 and that the company is to continue to exist for a definite period of time4 ,blank forms for such certificate are supplied by the ,secretary of the ,state where the company is being organised1 and when such certificate is properly filled out1 signed1 and delivered to him1 he issues a license1 or charter1 to the persons making such certificate1 giving them permission to open books1 sell stock1 and carry on the enterprise outlined4 ,state laws regarding stock companies differ very largely4 ,students of this course who desire to know the law in any particular ,state can easily secure the information by writing to the secretary of that ,state4 ,the usual par value of a share of stock is #ajj4 ,that is1 if a company organises with a capital of #bjj1jjj1 there will be #bjjj shares to sell4 ,each person who buys or subscribes for the stock--that is1 who joins the company--receives a ,,certificate ,,of ,,stock4 ,our illustrations show two examples2 one of a national bank1 and the other of a manufacturing company4 ,these certificates are transferable at the pleasure of the owners4 ,the transfer is made usually by a form of indorsement on the back of the certificate1 but to be legal the transfer must be recorded on the books of the company4 ,illustration3 ,a certificate of stock in a national bank4 ,the men subscribing in this way become responsible for the good management of the business and are obliged to act according to the laws of the ,state in which the company is organised4 ,usually they are not responsible individually for the liabilities of the concern beyond the amounts of their individual subscriptions4 ,illustration3 ,a certificate of stock in a manufacturing company4 ,every person who subscribes for stock owns a part of the business and is called a ,,shareholder4 ,all the shareholders meet together1 and out of their number they choose a certain number of ,,directors4 ,the directors choose a president and other necessary officers1 and in a general way direct the policy of the company4 ,as a rule directors have no salaries attached to their positions4 ,general meetings of shareholders are held once a year to elect the directors and to hear the reports of the officers4 ,the student should be familiar in a general way with the different classes of stock and with the technical terms familiar to stock companies4 ,the more important of these matters are as follows3 ,,directors4 ,all the shareholders meet together and out of their number choose a certain number of directors4 ,the directors choose a president and other necessary officers and fix the amount of salary which shall be paid such officers for their work4 ,,capital ,,stock4 ,this name is given to the gross capital for which the company is organised1 without any reference to its value or to whether it has been fully paid in or not4 ,the paid-in capital is the amount received from the stockholders on the shares for which they have subscribed4 ,,dividends4 ,the directors of the company1 after paying the expenses and laying by a certain amount for contingencies1 divide the profits among the shareholders4 ,these profits are called dividends1 and in successful concerns such dividends as are declared quarterly1 semiannually1 or annually usually amount to good interest on the shareholders' investments4 ,,treasury ,,stock4 ,it often occurs that a new company finds it necessary to set aside a certain number of shares to be sold from time to time to secure working capital4 ,such stock is held in the treasury until it is needed1 and is called treasury stock4 ,,preferred ,,stock4 ,preferred stock is stock which is guaranteed certain advantages over ordinary stock4 ,it is usually given to secure some obligation of the company1 and upon it dividends are declared in preference to common stock4 ,that is to say1 if a man holds a share of preferred stock he will receive interest thereon out of the profits of the business before such profits are given in the form of dividends to shareholders generally4 ,preferred stock can be issued only when authorised by the charter of the company4 ,the interest on the investment in the case of preferred stock is more sure1 but the security itself is not any more secure than in the case of common stock4 ,,guaranteed ,,stock4 ,guaranteed stock differs from preferred stock in this--that it is entitled to the guaranteed dividend 7interest7 before all other classes of stock1 whether the company earns the necessary amount in any one year or not4 ,this right is carried over from year to year1 thus rendering the shares absolutely secured as to interest4 ,,watered ,,stock4 ,when stock is issued to the shareholders without increase of actual capital the stock is said to have been watered4 ,a company may organise for1 say1 #aj1jjj1 and may want to increase to #ej1jjj without adding to the number of its shareholders4 ,each holder of one share will1 in this instance1 receive four new shares1 and in future instead of receiving a dividend on one share will receive a dividend on five shares4 ,the object of this is1 quite commonly1 to avoid ,state laws requiring certain corporations to pay excess of profit over a stated rate per cent4 into the ,state treasury4 ,,forfeited ,,stock4 ,stock is usually sold on certain explicit conditions1 such as the paying of ten per cent4 down and the balance in installments at stated intervals4 ,if the conditions which are agreed to by the shareholder are not met his stock is declared forfeited1 or he can be sued in the same manner as upon any other contract4 ,,assessments4 ,some companies organise with the understanding that a certain percentage of the nominal value of the shares is to be paid at the time of subscribing1 and that future payments are to be made at such times and in such amounts as the company may require4 ,under these conditions the stockholders are assessed whenever money is needed4 ,such assessments are uniform on all stockholders4 ,,surplus ,,fund4 ,it is not customary to pay a larger dividend than good interest4 ,the profits remaining after the expenses and dividends are paid are credited to what is called a surplus fund4 ,this fund is the property of the shareholders and is usually invested in good securities4 ,,franchise4 ,a franchise is a right granted by the ,state to individuals or to corporations4 ,the franchise of a railroad company is the right to operate its road4 ,such franchise has a value entirely distinct from the value of the plant or of the ordinary property of the corporation4 ,,sinking ,,fund4 ,a sinking fund is a fund set aside yearly for the purpose at some future time of sinking--that is1 paying a debt4 ,,xiii4 ,,protested ,,paper ,when a note is presented for payment at maturity and is not paid it is usually ,,protested2 that is1 a notary public makes a formal statement that the note was presented for payment and payment was refused4 ,notice of such protest is sent to the maker of the note and to each indorser4 ,the bank should never hand to its notary any paper for protest until it has made sure that its non-payment has not been brought about by some error or misunderstanding4 ,quite often1 even though the paper has been made payable at a bank1 the notary sends a messenger with the note to the maker to make a formal demand for payment4 ,in taking in collection paper1 banks should obtain clear instructions from its owners as to whether or not it should be protested in case of non-payment4 ,it by no means follows that a formal protest is not desired because the paper bears no indorsements4 ,many banks make it a rule to protest all unpaid paper unless otherwise ordered4 ,we often see attached to the end of a draft a little slip with the words3 ,no protest2 tear this off before protesting4 ,this is simply private advice to the banker informing him that the drawer does not wish to have the draft protested4 ,it may be that he does not wish to wrong or injure the credit of or add to the expense of his debtor2 or it may be that he considers the account doubtful and does not wish to add to his own loss the cost of protest fees4 ,to hold an indorser1 he must be properly notified of the non-payment of the note2 and whether this has been done is a question of fact4 ,if he was not properly notified this defence will avail whenever it is clearly proved4 ,a great variety of defences may be successfully made by an indorser4 ,a few of these defences are here briefly noticed3 ,one is usury2 another is the maker's discharge by the holder2 nor can he be held when he has paid the note2 nor when its issue was unlawful1 nor when the note was non-negotiable1 nor when his indorsement was procured by fraud4 ,finally1 an indorser may avail himself of any defence existing between the holder and the maker or principal debtor4 ,this is evidently a just principle1 for the holder should have no more rights against an indorser than he has against the maker4 ,if1 therefore1 the maker can interpose some just claim as a partial or complete defence the indorser should be permitted to avail himself of this claim4 ,in order to recover from an indorser it must be proven that a formal and proper demand for payment was made upon the maker4 ,the formal protest is usually undisputed evidence of this4 ,the maker is liable in any event4 ,illustration3 ,a protest4 ,to make the indorser's liability absolute it is necessary to demand payment at the specified place on the last day of the period for which the note was given1 and to give due notice of non-payment to the indorser4 ,for1 as the contract requires the maker to pay at maturity1 the indorser may presume1 unless he has received a notice to the contrary1 that the maker has paid the obligation4 ,ordinarily a notice of an indorsement by a partnership need not be sent to each member4 ,even after the partnership has been dissolved a notice to one partner is sufficient to bind the other members4 ,if the note is owned jointly 7that is1 by parties who are not business partners7 the indorsers are not liable as partners but as individuals4 ,in such a case the notice of non-payment should be sent to each4 ,our illustration shows a facsimile of a protest notice4 ,,xiv4 ,,paper ,,offered ,,for ,,discount ,one of the most valuable parts of a banker's education is to learn whom to trust4 ,every bank should have a well-organised and thoroughly equipped credit department1 in charge of some one who can be relied upon to investigate carefully all names referred to him by the officers4 ,a banker has the right to expect the fullest confidence on the part of the borrower1 and the borrower should furnish him with a complete and detailed statement of the condition of his affairs4 ,it is safe to conclude that when a borrower refuses absolutely to give any information as to his financial condition his credit is not in the most favourable shape4 ,many of the banks have blank forms which they1 from time to time1 ask borrowers to fill out4 ,these statements show in detail the assets and liabilities of the firm in question2 they show the notes which are outstanding1 the mortgages on real estate1 and many other particulars1 including the personal or individual credit of members of the firm1 if a partnership4 ,in estimating the value of paper offered for discount the following points should be considered3 #a4 ,the total net worth of the borrower4 #b4 ,the character of his business2 whether it is speculative or staple4 #c4 ,the borrower's record and standing in the community and his business habits4 #d4 ,whether he is in enterprise abreast with modern ideas and methods4 #e4 ,the character of the merchandise owned by the borrower4 ,what would it bring under the hammer8 ,groceries and raw material can usually be turned into cash at a forced sale at very small discount from current prices4 ,not so with hardware1 glass1 dry goods1 boots and shoes1 books1 etc4 ,machinery and fixtures are not a bankable asset upon which to base credit4 ,the banker should note his borrower's bills payable4 ,why did he give notes8 ,are they met promptly8 ,many houses prefer to sell their own paper in the open market1 and keep their banks open for accommodations when they are unable to secure outside credit4 ,the insurance carried should be considered2 also the volume of business done4 ,a large business on moderate capital1 with long credits1 will naturally have large liabilities1 while a small business with a liberal capital and short credits should have small liabilities4 ,paper offered for discount is of a variety of kinds4 ,the larger proportion of it is from customers of the borrower who have extended their credit by paying their accounts in notes instead of in cash4 ,such paper is really1 though having two names1 very little better than single-name paper1 for it is not the maker's credit1 but the payee's1 which the bank usually considers4 ,many very small notes offered for discount usually indicate a very needy condition4 ,there are many firms which carry two or more bank accounts1 and others who sell their paper to out-of-town banks4 ,in buying paper it is important to ascertain whether the firm is in the habit of taking up paper at one bank by floating a loan at another4 ,paper may be classified for purposes of discount as follows3 #a4 ,bills drawn by shippers on the houses to which the goods are shipped4 #b4 ,bills drawn by importers against commodities placed in brokers' hands for sale4 #c4 ,bills arising out of our manifold trades and industries4 #d4 ,drafts with bills of lading attached4 #e4 ,paper having personal indorsements4 #f4 ,paper secured by collateral4 #g4 ,one-name paper4 ,,xv4 ,,corporations ,stock companies are in a sense corporations1 but the name ,,corporation has in its common application a broader meaning4 ,,public ,,corporations are those which are created exclusively for the public interest1 as cities1 towns1 counties1 colleges1 etc4 ,,private ,,corporations are created wholly or in part for the pecuniary benefit of the members1 as railroad companies1 banks1 etc4 ,corporate bodies whose members at discretion fill by appointment all vacancies occurring in their membership are sometimes called close corporations4 ,in this country the power to be a corporation is a franchise which can only exist through the legislature4 ,in municipal corporations the members are the citizens2 the number is indefinite2 one ceases to be a member when he moves from the town or city1 while every new resident becomes a member when by law he becomes entitled to the privileges of local citizenship4 ,the laws which corporations may make for their own government are made under the several heads of by-laws1 ordinances1 rules1 and regulations4 ,these laws may be made by the governing body for any object not foreign to the corporate purposes4 ,a municipal corporation1 for example1 makes ordinances for the cleaning and lighting of its streets1 for the government of its police force1 for the supply of water to its citizens1 and for the punishment of all breaches of its regulations4 ,a railway corporation establishes regulations for signals1 for the running of trains1 for freight connections1 for the conduct of its passengers1 and for hundreds of other things4 ,but such by-laws and regulations must be in harmony with the charter of the corporation and with the general law of the land4 ,for instance1 a municipal corporation could not enforce a by-law forbidding the use of its streets by others than its own citizens1 because by general law all highways are open to the common use of all the people4 ,again1 a railway corporation could not make a rule that it would carry goods for one class of persons only1 because as a common carrier the law requires that it carry impartially for all4 ,as a general rule private corporations organised under the laws of one ,state are permitted to do business in other ,states4 ,it is quite often to the advantage of a company to organise under the laws of one ,state for the purpose of doing business in another4 ,for instance1 there are many companies chartered under the laws of ,maine with headquarters in ,boston4 ,the ,massachusetts laws require that a large proportion of the capital be actually paid in at the time of organising1 while the ,maine law has no such provision4 ,for similar reasons many large companies doing business in ,new ,york or ,philadelphia are organised under the laws of ,new ,jersey4 ,a corporation may make an assignment just as may an individual4 ,if all the members die the property interests pass to the rightful heirs1 and under ordinary conditions the corporation still exists4 ,a ,,franchise is a right granted by the ,state or by a municipal corporation to individuals or to a private corporation4 ,the franchise of a railroad company is the right to operate its road4 ,such franchise has a value entirely distinct from the value of the plant or the ordinary property of the corporation4 ,an ,,unlimited ,,liability corporation is one in which the stockholders are liable as partners1 each for the full indebtedness4 ,a ,,limited ,,liability corporation is one in which the stockholders1 in case of the failure of the corporation1 are liable for the amount of their subscriptions4 ,the name limited is required by law to appear after the name of the company4 ,if a subscription is entirely paid up there is no further liability--that is to say1 the property of a shareholder cannot be attached for any debts of the company4 ,understand clearly that the name limited printed after the name of a company does not indicate in any way that the capital or credit of the company is limited1 only that the liability of the shareholders of the company is limited to the amounts of their shares4 ,a ,,double ,,liability corporation is one in which1 in case of failure1 the stockholders are further liable for amounts equal to their subscriptions4 ,all national banks are double liability companies4 ,if ,a owns #ejjj stock in a national bank1 and the bank fails1 he loses his stock2 and if the liabilities of the bank are large he may be obliged to pay a part or the whole of an additional #ejjj4 ,,xvi4 ,,bonds ,when a railroad company1 or a city or any other corporation desires to borrow money it is a common practice to issue instruments of credit called ,,bonds4 ,a bond means something that binds4 ,bonds bear the same relation to the resources of a corporation that mortgages do to real estate4 ,corporation bonds are issued for a period of years4 ,they usually have coupons attached which are cut off and presented at regular intervals for the payment of interest4 ,a bondholder of a corporation runs less risk than a stockholder1 first1 as to interest3 the corporation is obliged to pay interest on its bonds1 but may at its own pleasure pass its dividends2 secondly1 the bondholder is a creditor1 while the stockholder of the corporation is the debtor4 ,on the other hand1 if a concern is very successful1 a shareholder may receive large dividends1 while the bondholder receives only the stipulated interest4 ,a bond is evidence of debt1 specifying the interest1 and stating when the principal shall be paid2 a certificate of stock is evidence that the owner is a part-owner in the corporation or company1 not a creditor1 and he has no right to regain his money except by the sale of his stock1 or through the winding up of the company's business4 ,the name ,,debentures is given to a form of municipal bond in common use4 ,nearly all the large sums of money used by ,states and cities for the building of ,state or municipal buildings1 bridges1 canals1 water-works1 etc41 are raised through the issue of bonds 7debentures71 which are sold1 usually at a price a little below par1 to large financial institutions1 banks1 and insurance companies4 ,generally speaking1 such bonds are good securities1 and are marketable anywhere4 ,illustration3 ,a private bond4 ,at different times the ,united ,states government has issued bonds to relieve the treasury4 ,these bonds are absolutely safe and are always marketable4 ,registered bonds have the name of the buyer registered2 unregistered bonds are payable to bearer4 ,municipal bonds are issued by cities and other municipalities to raise money for local improvements4 ,if proper precautions are taken by buyers1 municipal securities may be considered among the safest and most remunerative investments4 ,when a new railroad enterprise is undertaken its promoters often expect to make the road not only supply the money for its construction but also give working capital in addition4 ,this is done by the issue of mortgage bonds4 ,default in the payment of interest throws the road into the hands of a receiver4 ,the securities immediately fall in value and are perhaps bought up by a syndicate of crafty speculators who are permitted to reorganise the road and its management4 ,this is the history of many of our roads4 ,there are exceptional cases1 of course1 but the investor should be familiar with the facts before buying railroad mortgages4 ,a ,,bottomry ,,bond is a kind of mortgage peculiar to shipping4 ,it is a conveyance of the ship as security for advances made to the owner4 ,if the ship is lost the creditor loses his money and has no claim against the owner personally4 ,it is allowable for a loan made upon such a bond to bear any rate of interest in excess of the legal rate4 ,a vessel arriving in a foreign port may require repairs and supplies before she can proceed farther on her voyage1 and in occasions of this kind a bottomry bond is given4 ,the owner or master pledges the keel or bottom of the ship--a part1 in fact1 for the whole--as security4 ,we have now upon the market stocks and bonds representing all conceivable kinds of property4 ,not only are properties of many kinds used to issue bonds upon1 but many kinds of bonds are often issued upon the same property4 ,thus we find among our railroads not only first1 second1 and third mortgage bonds1 but income bonds1 dividend bonds1 convertible bonds1 consolidated bonds1 redemption bonds1 renewal bonds1 sinking-fund bonds1 collateral trust bonds1 equipment bonds1 etc41 until they lap and overlap in seemingly endless confusion4 ,,receiver',s ,,certificates are issued by receivers of corporations1 companies1 etc41 in financial difficulties1 to secure operating capital2 they are granted first rights upon the property and are placed above prior lien and first mortgage bonds4 ,,xvii4 ,,transportation ,the most common effect of cheapened transportation is to increase the distance at which it is possible for producer and consumer to deal with each other4 ,to the producer it offers a wider market and to the consumer a more varied source of supply4 ,on the whole1 cheapened transportation is more uniformly beneficial to the consumer2 its temporary advantage to the producer very often leads to overproduction4 ,it has the effect also of bringing about nearly uniform prices the world over4 ,the time was when nearness to market was of the greatest possible advantage4 ,at the present time a farmer can raise his celery in ,michigan or his beets in ,dakota and market them in ,new ,york ,city about as easily as though he lived on ,long ,island4 ,it is no longer location which determines the business to be carried on in a particular place1 but natural advantages more or less independent of location4 ,but the railroad or the steamboat very often determines where a new business shall be developed4 ,it is this quickening and cheapening of transportation that has given such stimulus in the present day to the growth of large cities4 ,it enables them to draw cheap food from a far larger territory1 and it causes business to locate where the widest selling connection is to be had1 rather than where the goods or raw materials are most easily procured4 ,it is the quick and comfortable transportation facilities which our large cities possess that have given strength to the great shopping centres4 ,shoppers for thirty or forty miles around can easily reach these centres1 and the result is that trade gathers in centres rather than at local points4 ,a city of a million population in the most productive agricultural section of country could not be fed if the food had to reach the city by teaming4 ,with this growth of trade centres comes the increased gain of large dealers at the expense of the small2 with it comes organised speculation and its attendant results1 good and evil4 ,prior to the completion of the organisation of trunk or through lines1 freight was compelled to break bulk and suffer trans-shipment at the end of each line1 where a new corporation took up the traffic and carried it beyond4 ,to prevent this breaking of bulk and to expedite the carriage of freight1 fast freight lines on separate capitalisation were organised4 ,the purpose of the interstate-commerce law is largely to prevent discrimination and corruption in freight charges1 to secure for every person and place just and equal treatment at the hands of the transportation companies4 ,the freight rates are arranged and regulated by the traffic associations1 and the various conditions and compromises necessary have made both classifications and rates about as complicated as anything possibly could be4 ,the name ,,differential as applied to freight rates refers to the differences which are made by railroad companies4 ,certain roads are by agreement allowed to charge a lower rate than others running to the same points4 ,to and from each of the eastern cities there are two classes of roads--the standard lines and the differential lines4 ,the standard lines have the advantage of more direct connections2 the differential lines reach the freight destinations by circuitous routes1 in some instances by almost double the mileage4 ,with a view to equalising these conditions the general traffic associations allow the differential lines to carry freight at a lower rate per mile than the rate charged by the standard lines4 ,the transportation business of the ,united ,states is so varied and complicated that a proper study of its freight tariffs and classifications would require much more space than can be given the subject in these lessons4 ,,xviii4 ,,transportation ,,papers ,the common transportation papers1 familiar to all shippers1 are the 7#a7 shipping receipt1 7#b7 bill of lading1 7#c7 waybill4 ,,original ,,receipts1 stating marks and quantities of goods1 go with each separate lot of merchandise to the freight sheds or vessels1 and these are summed up in a formal bill of lading1 for which they are exchanged when all the cases or bundles belonging to the particular shipment have been delivered4 ,the duplicate receipt1 or the part commonly marked invoice1 is kept by the receiver of the freight1 and the other end1 commonly marked original1 is given to the drayman4 ,in making ordinary shipments it is not usual or necessary to make out a formal bill of lading4 ,of course1 when no bill of lading is made out1 the receipt should be preserved by the shipper4 ,the full contract is usually printed on the receipt1 but it must be remembered that a receipt is not a negotiable instrument and cannot be used as security for money4 ,illustration3 ,a shipping receipt 7original74 ,a ,,bill ,,of ,,lading is an acknowledgment by a transportation company of the receipt of goods specified1 and contracts for their delivery at a certain place1 under conditions stated thereon1 upon payment of freight and expenses4 ,bills of lading are negotiable and maybe transferred by indorsement1 but are of no value apart from the goods to which they give title4 ,a bill of lading goes with certain named goods and cannot be transferred to other goods1 even though of precisely the same kind and price4 ,marine bills of lading are usually made in triplicate2 one is kept by the shipper1 another by the vessel1 and the third is sent by mail to the person to receive the goods4 ,illustration3 ,a steamship bill of lading4 ,the parties to a bill of lading are three--the shipper1 the consignee1 and the transportation company4 ,the declaration of having received the goods in good order and condition1 and the consequent obligation1 subsequently expressed1 of delivering them in like good order and condition1 is sensibly lessened in its importance by the additional clause now adopted by almost all transportation companies--namely3 ,contents and condition of contents of packages unknown4 ,should the goods or part of them be shipped in a damaged condition1 or in a bad condition of packing1 a note to that effect should be made by the transportation company on the bill of lading1 which ceases then to be a clean bill of lading4 ,illustration3 ,a local waybill4 ,like any other instrument of credit1 a bill of lading may be deposited with a creditor as security for money advanced 7or it may be transferred to a buyer7 by means of indorsement1 and the property or goods will be thereby either mortgaged or assigned4 ,acting upon this principle1 the shipper declares in the bill of lading that the goods shall be delivered unto the consignee or his assigns4 ,when a shipper is unable to insert the name of the consignee at the time the bill of lading is made out1 a bill to order is drawn up wherein the consignee's name is superseded by the words shipper's order1 or simply order2 it being thus understood that the goods shall be delivered to whomsoever presents1 at point of destination1 the bill of lading duly indorsed by the shipper4 ,by such a simple arrangement as a bill to order the merchant is enabled to sell the goods while they are at sea1 or in transit1 and a consignment of merchandise may change hands several times before arriving at its destination4 ,when a case of merchandise to be shipped has been properly entered and weighed it is then ready to be manifested or waybilled1 as no shipment is allowed to go forward without a waybill4 ,the ,,waybill is simply a memorandum of the consignment1 together with full and complete shipping directions1 giving also the number of the car into which the case has been loaded1 and the point to which the car is carded4 ,the freight conductor has waybills for all goods which he carries4 ,they are turned over with the merchandise to the agent of the railroad at the point of destination4 ,our illustrations show 7#a7 a shipping receipt--the half marked original2 7#b7 a steamship bill of lading2 7#c7 a local waybill4 ,,examination ,,paper ,,note4--,the following questions are set as an indication of the sort of knowledge a student should possess who has carefully read the several papers of this course4 ,the paper covers only about the first half of the course4 ,the student is recommended to write out the answers carefully4 ,only such answers need be attempted as can be made from a study of the lessons4 #a4 ,what in a general sense is meant when we speak of the currency of a country8 #b4 ,enumerate some of the advantages afforded to the community and to commerce in general by banking institutions4 #c4 ,a bank cheque is a demand order for money1 drawn by one who has funds in the bank4 ,how does a cheque differ from an order on ,john ,smith to pay bearer a certain sum of money8 #d4 ,why is it important that cheques should be very carefully drawn8 #e4 7a7 ,a cheque has no date4 ,does this make it void8 7b7 ,how about a cheque dated months ago8 7c7 ,is a cheque dated on ,sunday good8 7d7 ,why are cheques sometimes dated ahead8 7e7 ,are you at liberty to print your own form of cheque8 7f7 ,is it necessary that your cheque be written on the prescribed blank form8 7g7 ,how would you write a cheque for #ge cents8 #f4 ,how would you word a cheque to give to a person who is unknown at your bank1 but who wishes to draw the money over the counter8 #g4 ,you are sending a cheque through the mails to ,john ,brown1 ,philadelphia4 ,how will you prevent the cheque from falling into the hands of the wrong ,john ,brown8 #h4 ,you identify ,a4 ,b4 at your bank4 ,the cheque ,a4 ,b4 presented turns out to be a forgery4 ,are you responsible8 #i4 ,a4 ,b4 transfers a cheque to you by a blank indorsement4 ,it is then payable to bearer4 ,how can you legally make it payable to your own order8 #aj4 ,what is meant by power-of-attorney8 ,how should an attorney indorse cheques for any person for whom he is acting8 #aa4 ,if a note were about to be transferred to you by indorsement and delivery in payment of a debt1 would it make any difference to you whether or not it was overdue8 ,explain in full4 #ab4 ,tell how you would receipt for a payment of a note4 ,why is not an ordinary separate receipt sufficient8 #ac4 ,why are notes protested8 ,why is a formal protest sometimes desired even though the paper bears no indorsements8 #ad4 ,if an indorser is compelled to pay a note1 against whom has he a good claim8 ,,note ,,to ,,the ,,foregoing ,,examination ,,paper ,it is a mistake to answer questions for a student if he is able of himself to find the answers4 ,a question which sets a student thinking1 even though he cannot immediately find a satisfactory answer1 affords educational training of considerable value4 ,a few of the answers to the foregoing questions are as follows3 #e4 7a7 ,not necessarily so4 7b7 ,such a cheque would under ordinary conditions be all right4 ,cheques should be presented as soon after date as convenient4 7c7 ,cheques dated on ,sunday are very commonly paid4 ,cheques or notes delivered on ,sunday are void4 ,the delivery makes the contract1 not the dating4 7d7 ,that the maker may have a few days in which to deposit sufficient money to meet them4 7e7 ,you are at liberty to print your own form of cheque or to write it out in full if you wish4 7g7 ,write the words ,seventy-five cents plainly along the money line4 #h4 ,yes4 ,,business ,,geography ,,the ,,trade ,,features ,,of ,,the ,,great ,,commercial ,,nations ,i4 ,,the ,,trade ,,features ,,of ,,the ,,british ,,isles ,,london ,,as ,a ,,food ,,consumer ,london is the greatest seat of trade and commerce in the world4 ,its commercial greatness is evidenced by its greatness of population4 ,its inhabitants number over #f1jjj1jjj4 ,the houses in which this vast population lives1 would1 if placed end to end1 make a continuous street that would stretch across all ,europe and ,asia4 ,the mere effort of providing food for this vast population necessitates an enormous commerce4 ,half a million of beeves are required every year to supply its meat market2 also #b1jjj1jjj sheep and #h1jjj1jjj fowls4 ,to supply its fish market #djj1jjj1jjj pounds of fish are required1 and #ejj1jjj1jjj oysters4 ,grain1 flour1 fruit1 butter1 eggs1 cheese1 sugar1 tea1 and coffee1 are brought to ,london daily in such quantities that the prices of these commodities all the world over are based upon what they will fetch in ,london4 ,whole nations and provinces and districts get their subsistence from industries that have for their end the supplying of some of this enormous food demand4 ,denmark1 for example1 owes its entire prosperity of recent years to its profitable manufacture of butter for the ,london market4 ,brittany and ,normandy1 in ,france1 are almost wholly occupied in supplying that market with poultry and eggs4 ,the islands of ,jersey and ,guernsey derive their principal wealth1 not1 as might be supposed1 from the sale of milk and butter1 but from the supplying of ,london with potatoes4 ,canada during the last six or eight years has built up with ,london an immense trade in cheese1 a trade that exceeds in importance any other that ,canada has1 while even our own home ,states--,illinois1 ,iowa1 and ,wisconsin1 for example--have found new sources of wealth in catering to the ,london dairy trade4 ,elgin and ,ames creamery butters are products well known to the ,london consumer4 ,,london ,,the ,,commercial ,,centre ,,of ,,the ,,world ,what is the reason of ,london's wonderful prosperity8 ,already its population is one fifth the entire population of ,england and ,wales1 and it is increasing at the rate of about #bj per cent4 per decade4 ,three hundred people are added to the number every day in the year1 a rate of #aaj1jjj inhabitants in the course of the year4 ,it is now one half greater than the total population of all ,ireland4 ,london's ,scotch population is almost as numerous as that of ,edinburgh1 while its ,irish population is quite as numerous as that of ,dublin4 ,every civilised country is represented among its people1 and every civilised tongue is spoken among them4 ,a sea of brick and mortar1 even now fifteen miles long and ten miles broad1 it is growing at the rate of a new house every hour of its existence4 ,its streets are already #bh1jjj miles in length1 and these are spreading out so rapidly that every year many whole villages and townships are enmeshed by them4 ,every day #a1jjj1jjj people enter ,london by railway1 and at least #ejj1jjj people have occupations in it in the daytime who reside beyond its limits at night4 ,fifty thousand people have occupations in it in the night-time who reside beyond its limits during the day4 ,it is the largest importing centre in ,great ,britain1 and the largest in the world1 and its exports are exceeded only by ,liverpool1 and not always by ,liverpool4 ,it is also the centre of the world's financial business4 ,for example1 traders in the ,east ,indies who ship cargoes of spices and other ,eastern produce to ,america1 draw in settlement on ,london rather than on ,new ,york1 while traders in ,america who ship cargoes of cotton to ,marseilles or ,riga1 draw in settlement on ,london rather than on ,paris or ,st4 ,petersburg4 ,what is it that thus makes ,london the chief seat of population in the world1 the commercial metropolis of the world1 the great financial clearing-house of the world8 ,,london ,,the ,,centre ,,of ,,the ,,land ,,surface ,,of ,,the ,,globe ,illustration3 ,london the natural centre of the world's trade4 ,london stands as nearly as possible in the centre of the land surface of the globe4 ,its situation1 therefore1 eminently adapts it to be the great centre of the world's trade--the great distributing centre of the world's products4 ,its ships can go to the farthest parts of the earth1 and1 loading themselves with the natural products of these parts1 can bring them to its docks without breaking bulk1 deposit them there for assortment1 and then take them away again to other parts of the earth1 and do this more economically than the ships of almost any other port in the world4 ,but a greater reason is to be found in the fact that for centuries the ,british people have pursued a definite policy of manufacture1 trade1 and commerce1 and have had the good fortune to have had that policy interfered with in a less degree than any other nation in the world by commerce-destroying war1 whether internal or external4 ,and whenever ,britain has been in external wars her navy has been able to protect her commercial interests4 ,london1 being the capital of the kingdom and its chief seat of trade1 has naturally derived the principal benefit from these many years of peaceful industry and commerce4 ,then1 again1 ,london is favourably adapted to trade in respect to its own country4 ,it is a seaport1 sixty miles inland1 and is connected by navigable canals with all the other chief manufacturing and commercial centres of the country4 ,its railway facilities1 too1 are so complete that there is not a manufacturing town in the whole island that is not within fifteen hours of freightage from it4 ,then1 too1 the peculiar configuration of the coast-line of ,great ,britain makes every point on the island within an hour or two of carriage from a seaport4 ,finally1 all ,british seaports are in trade connection with ,london by a coasting service unequalled in the world for cheapness1 completeness1 and efficiency4 ,in a word1 ,london stands not only in the centre of the land surface of the globe1 but also at the commercial centre of its own home territory--that is to say1 within easy reach both by water and by land of all the trading and producing interests of a people that for centuries have been leaders in commercial and manufacturing industry and enterprise4 ,,great ,,britain',s ,,commercial ,,policy ,but that which more than anything else has made ,london the great trade centre of the world has been the policy1 now for many years adopted by the ,british people1 of allowing the goods and products of all other nations to enter their ports untaxed4 ,every port in ,britain is a free port of entry for all imported merchandise except spirits1 tobacco1 wine1 tea1 coffee1 cocoa1 and chicory2 and ships of all nations are allowed to trade at ,british ports upon terms exactly the same as those laid down for ,british ships4 ,the result is that ,britain has become the entrept or distributing mart for the produce of the world4 ,ships of all nations are found at her wharves1 and commodities from all parts of the world brought in those ships are found in her warehouses4 ,her mercantile navy numbers #ba1jjj vessels1 and #hjjj of these are steamships4 ,the tonnage of these vessels amounts to over #h1gej1jjj tons1 and of this nearly #h1jjj1jjj is engaged in the foreign trade alone4 ,her mercantile sailors number over #bej1jjj men1 and over #aej1jjj of these are engaged in the foreign trade4 ,london is1 of course1 the chief gainer from this perfect unrestriction of trade4 ,twenty-seven per cent4 of the whole trade of the country is in its hands4 ,its merchants do business in every seaport on the globe1 and the trade of ,great ,britain with ports in ,europe1 the ,levant1 ,egypt1 ,india1 the ,east ,indies1 ,china1 ,japan1 and ,australasia1 is almost wholly controlled by them4 ,its shipping embraces the finest trading fleets known to commerce4 ,its docks and wharves extend on either side of the ,thames for twenty-four miles from ,london ,bridge down to ,gravesend1 and are the largest and finest in the world4 ,illustration3 ,british mercantile marine4 ,compared with that of other countries4 ,,london ,,the ,,clearing-,,house ,,of ,,the ,,world ,a similar explanation is to be given of the fact that ,london is the great financial centre of the world4 ,the same policy which has made ,britain a great trading country has also made her a great manufacturing country4 ,the food products of all the world pour in upon her shores1 and ,britain has become a cheap place to live in4 ,her artisans are supplied with the best food that the world can produce1 and this at prices that are practically what the ,british demand makes them to be4 ,the ,british artisan is therefore both well fed and cheaply fed4 ,as a consequence of this1 ,british manufactures are produced more efficiently and more cheaply than those of most other nations1 and they are therefore exported enormously to every quarter of the globe4 ,london1 from its accessibility with respect to the great manufacturing centres at home1 and from its trade connections and facilities for trade abroad1 is the great distributing centre of this enormous manufacture4 ,london exporters have accounts for goods sold by them all the world over4 ,there is1 therefore1 no quarter of the world where money is not constantly owing to ,london2 or1 if not to ,london1 then to ,manchester1 ,birmingham1 ,sheffield1 ,leeds1 ,glasgow1 or some other manufacturing centre in close financial touch with ,london4 ,in this1 then1 lies the explanation of the financial supremacy of ,london4 ,no matter in what quarter of the world money is owed by any place1 the final destination of that money is ,london2 for in almost all cases it will be found that the locality to which the money is owed1 if it be not ,london1 will itself be a debtor to ,london4 ,london1 therefore1 from necessity1 and as a matter of custom and convenience1 has become the great clearing-house of the world4 ,the final adjustments of the indebtedness of all the commercial centres of the world are made there4 ,illustration3 ,london bridge4 ,,great ,,britain ,,the ,,creditor ,,nation ,,of ,,the ,,world ,one other reason for the financial supremacy of ,london lies in the enormous wealth of ,britain4 ,for now almost half a century ,britain has been importing far more than she has been exporting1 and the total volume of her import and export trade is more than quadruple what it was in #ahej4 ,the consequence is that not only has ,britain been accumulating wealth1 but she has been accumulating it enormously4 ,her accumulated savings1 therefore1 have been at the world's disposal1 and she has had so much money to invest that she has become the creditor nation of the world4 ,the total investments of ,british capital in foreign countries 7in loans1 railways1 manufacturing syndicates1 etc47 is estimated to be the enormous sum of over #aj1ejj1jjj1jjj4 ,london1 of course1 is the investing1 controlling1 and supervising counting-house for all this capital4 ,and as so much ,british capital finds in ,london its place of investment1 it naturally follows that nearly all the remaining unemployed capital of the world1 that seeks investment1 either is sent to ,london as a market1 or else assumes a price for investment elsewhere which the current price of capital in ,london warrants it to assume4 ,the ,london market rate of capital1 therefore1 determines its market rate in every other commercial centre of the world4 ,,great ,,britain ,a ,,beehive ,,of ,,mercantile ,,and ,,manufacturing ,,industry ,britain like all other civilised countries1 was originally an agricultural country4 ,although for some centuries she has been one of the chief manufacturing and mercantile countries of the world1 it has been only during the past one hundred years1 and especially during the past fifty years1 that her development in manufactures and in commerce has been remarkable4 ,britain is still1 in respect of quality1 the foremost agricultural country on the globe4 ,her breeds of horses1 cattle1 sheep1 and swine are the standard breeds from which almost all other breeds derive their origin1 and by which from time to time they are improved4 ,and nowhere is the raising of grains and roots for food of man and beast pursued with more skill and success than in ,britain4 ,but agriculture is fast ceasing to be an important industry of ,britain4 ,two million acres less are under cultivation now than were cultivated fifty years ago4 ,the total amount of wheat raised is sufficient only for three months' consumption of the people2 the remaining quantity needed must be supplied by importation4 ,three fifths of the total population of the island live in towns1 and only a small proportion of the population that live in the country is actually supported by agriculture4 ,agriculture1 in fact1 supports only fifteen per cent4 of the population in all ,britain1 and in ,england only ten per cent4 ,three and a half times as many people are personally engaged in manufactures as in rural pursuits4 ,for three quarters of a century the population in towns and cities has been growing four times faster than the population of the rural parts4 ,at the same time the working power of the urban population has been constantly growing more effective4 ,in fifty years1 by the general adoption of machinery1 the effective working power of the ,british workman has been increased sixfold4 ,in ,england eighty-six per cent4 of the total work of the country is done by steam1 and in ,scotland ninety per cent4 ,great ,britain1 therefore1 has become practically one great beehive of mercantile and manufacturing industry4 ,agriculture as a general occupation of the people1 except in the production of the finer food products1 such as choice beef and mutton and high-grade dairy products1 is no longer profitable4 ,indeed1 during the last fifteen years the plant 7including land7 employed in agricultural industries has been depreciating in value at the rate of #aej1jjj1jjj yearly2 that is1 in these fifteen years the enormous sum of #b1bej1jjj1jjj of capital employed in agriculture has been obliterated4 ,but the gain to capital employed in profitable mercantile and manufacturing pursuits has much more than compensated for this enormous loss in agriculture4 ,,great ,,britain',s ,,coal-,,fields ,,and ,,iron ,,deposits ,one reason for the great development which ,britain has made as a manufacturing and trading nation lies in the fact that ,britain was the first nation to utilise on a large scale the power of steam as a help to manufacture and trade4 ,the steam-engine was a ,british invention4 ,the first railways were built in ,britain4 ,the first steamship to cross the ,atlantic was a ,british enterprise4 ,a second reason lies in the fact that when ,britain began to use steam as a motive power she found her supplies of coal so near her iron mines1 and so near her clays and earths needed for her potteries1 that from the very first she was able to manufacture cheaply and undersell most of her competitors4 ,her coal-fields have an area of over #ab1jjj square miles1 and wherever her coal-beds are other natural products have been found near by1 so that her manufacturing areas and her coal areas are almost identical4 ,taking ,liverpool1 ,manchester1 ,birmingham1 ,wolverhampton1 ,sheffield1 ,leeds1 ,newcastle1 ,durham1 ,bristol1 ,stoke1 ,carlisle1 ,cardiff1 ,swansea1 ,glasgow1 ,paisley1 and ,dundee as centres1 around each of these lies a coal area of such richness as amply sustains it in its commercial and manufacturing pre-eminence4 ,london is almost the only great commercial centre of ,britain that does not lie in the midst of or quite adjacent to a rich coal and other mineral region4 ,but ,london is within easy distance1 not only by rail1 but also by canal and by coastwise sailing1 of every coal-field and mineral deposit of ,britain4 ,london1 however1 is an importing and exporting centre rather than a manufacturing centre4 ,illustration3 ,the coal-fields of ,england4 ,,london',s ,,special ,,trade ,,features ,the commercial supremacy attained by many of the large cities of ,britain is not wholly due to natural causes1 or even to ordinary causes4 ,much of it is due to extraordinary enterprise and forethought on the part of their citizens4 ,london1 for example1 is the centre of the wool trade of ,britain4 ,the woollen manufacturers of ,britain use about #bej1jjj tons of wool annually1 and three fourths of this is imported4 ,other cities that lie near the seats of the great woollen manufactures--,liverpool1 for example--have tried to secure a share of this vast importation of wool1 but ,london1 because of the special attention it gives to this trade1 manages to keep almost the whole of the trade in its own hands4 ,similarly1 ,london almost wholly monopolises the trade of ,england with ,arabia1 ,india1 the ,east ,indies1 ,china1 and ,japan4 ,it is therefore the great emporium for tea1 coffee1 sugar1 spices1 indigo1 and raw silk4 ,it also enjoys the bulk of ,britain's trade in fruits 7oranges1 lemons1 currants1 raisins1 figs1 dates1 etc47 and in wines1 olive oil1 and madder1 with the countries that lie about the ,mediterranean4 ,by virtue partly of its situation1 but largely because of the enterprise of its merchants1 it absorbs nearly the whole of ,britain's ,french trade1 and of ,england's trade with ,germany1 ,belgium1 ,holland1 and ,denmark4 ,this includes principally wines 7from ,france71 and butter1 eggs1 and vegetables4 ,another great branch of its trade is that with the ports of the ,baltic1 including those of ,russia1 the imports comprising1 besides wheat and wool1 tallow1 timber1 hemp1 and linseed4 ,the tobacco imported from ,virginia into ,england goes almost wholly to ,london2 so does almost the whole of the ,central ,american and ,south ,american trade in fine woods1 dye-stuffs1 drugs1 sugar1 hides1 india-rubber1 coffee1 and diamonds4 ,quite a large share of the trade of ,britain with ,canada is concentrated in ,london2 also1 more than one half of the trade of ,england with the ,west ,indies1 the imports from the latter country comprising principally sugar1 molasses1 fruit1 rum1 coffee1 cocoa1 fine woods1 and ginger4 ,,the ,,special ,,trade ,,features ,,of ,,glasgow1 ,,liverpool1 ,,and ,,manchester ,the great commercial centres of ,britain after ,london are ,,glasgow 7#hjj1jjj71 ,,liverpool 7#gjj1jjj7 and ,,manchester 7#fdj1jjj1 including ,,salford74 ,all these cities have derived the greater portion of their size from the progress they have made during the present century4 ,all1 of course1 owe their progress and their prosperity largely to their natural advantages of situation1 etc4 ,,liverpool stands on the margin of the ,atlantic1 the ,mediterranean of the modern world1 and thus enjoys the principal share of the trade with ,america1 especially that with the ,united ,states4 ,great ,britain's imports from the ,united ,states amount to over #ejj1jjj1jjj per annum1 and her exports to the ,united ,states 7exclusive of bullion1 etc47 to over #ajj1jjj1jjj4 7,formerly the exports to the ,united ,states were twice this amount47 ,of this vast trade1 amounting to one fifth of ,britain's total trade with the world1 ,liverpool enjoys the lion's share4 ,nearly all the cotton1 not merely of the ,united ,states but of the world1 that is used in ,europe is sent to ,liverpool for distribution4 ,similarly1 ,,glasgow1 situated with its aspect directed toward the same maritime routes1 enjoys also an immense transatlantic trade both north and south4 ,and ,,manchester1 situated in the very heart of the richest coal districts of the kingdom1 and within easy reach of the great cotton port1 ,liverpool1 has built up a cotton-manufacturing industry surpassing that of all the rest of the world4 ,,the ,,business ,,enterprise ,,of ,,glasgow1 ,,liverpool1 ,,and ,,manchester ,but the natural advantages of situation possessed by these great cities have been grandly supplemented by the enterprise of their inhabitants4 ,,glasgow is only a river port4 ,for twenty miles below its site the ,clyde is naturally narrow1 shallow1 and shoal-encumbered4 ,in places it is naturally not more than fifteen inches deep4 ,by the expenditure of no less a sum than #fj1jjj1jjj this shallow stream has been converted into a continuous harbour1 lined on either side for miles with wharves and docks1 and easily capable of accommodating the largest and finest merchant ships afloat4 ,as a consequence of this enterprise ,glasgow has become the greatest ship-building port in the world4 ,no less than twenty shipyards--in efficiency and magnitude of the very highest class--are to be found along the banks of the once shallow1 impassable ,clyde1 between ,glasgow proper and the river's mouth4 ,similarly1 the enterprise of the ship merchants of ,,liverpool has converted a port1 that high tides and impassable bars would naturally render unfit for modern ships1 into the greatest shipping port in the world4 ,one hundred million dollars were spent in making the improvement1 but #e1jjj1jjj is the annual revenue derived therefrom in dock dues alone4 ,and because of this enterprise ,liverpool can now boast of controlling one fourth of all the imports of the kingdom1 and two fifths of all the exports1 and of handling three fourths of all the grain and provision trade of the kingdom1 and of having the largest grain warehouses in the world4 ,illustration3 ,the ,manchester ship canal4 ,but ,,manchester1 a wholly inland city1 forty miles distant from ,liverpool1 its nearest port1 has outdone even ,glasgow and ,liverpool in its endeavour to bring the sea to its own doors4 ,it also has spent #ajj1jjj1jjj--not1 however1 in amounts spread over a number of years1 and as occasion seemed to demand1 but all at once1 in one lump sum1 in one huge enterprise4 ,it has built a canal to the ,mersey where it is navigable1 thirty-five and one half miles in length1 and sufficiently deep and wide1 so that the whole of its vast importation of cotton1 and the whole of its vast manufacture of cotton and other textile fabrics1 and as much else as may be desired1 may be brought in from the sea or taken to the sea in merchant vessels of the very largest size now afloat4 ,and it has done this in the face of engineering difficulties1 and of obstacles raised against it by jealous competing interests that were almost insurmountable4 ,,great ,,britain',s ,,specialisation ,,of ,,her ,,industries ,,in ,,definite ,,centres ,in no part of the world are manufacture and trade carried on with such strict regard to the conditions of economic production and the economic handling of goods as in the ,british ,isles4 ,the free-trade policy of the empire permits everywhere within its borders not merely national but world-wide competition2 and yet it is but truth to say that wherever ,great ,britain attempts to sell her goods abroad every nation and every community in the world rises against her4 ,even her colonies are against her4 ,her markets are open to every one's trade1 and yet in almost every market in the world which she does not absolutely control barriers are raised against her trade4 ,she is able to sell goods in foreign markets only because1 despite these barriers1 she is able to undersell all competitors in them1 or to give better value for the same money than they4 ,even when she obtains the control of new markets1 as she has in ,india1 ,china1 ,egypt1 ,west ,africa1 etc41 she allows every nation to trade in these markets on precisely the same terms as she herself trades in them4 ,in the face of this world-wide competition1 therefore1 the industries of ,britain would cease to exist if every condition conducive to economy of production--climatic suitability1 availability of cheap motive power1 accessibility to cheap raw material1 and accessibility to natural and cheap means of transportation--were not taken advantage of to the utmost4 ,but this is just what ,britain does4 ,she does take advantage to the utmost of conditions conducive to economy of production2 and this is why1 to a degree nowhere else attempted in the world1 she has specialised her industries in definite favouring localities4 ,,the ,,natural ,,aptitudes ,,of ,,communities ,,in ,,great ,,britain ,,for ,,special ,,industries ,a result of this specialisation of industries in definite centres is that a natural aptitude for the industry specialised in a locality is developed among the inhabitants of the locality1 and this1 being stimulated by association1 is transmitted from generation to generation with ever-increasing efficiency4 ,again1 this inherited aptitude of the community for the industry historically associated with it is a prime element in the economic prosecution of the industry4 ,also1 in turn1 it acts as an important influence in continuing the industry in the locality where once it has been successfully specialised4 ,in no country in the world1 outside of ,asia1 have great industries had such long-continued successful existence in definite localities as in ,britain4 ,and therefore in no country in the world do the natural aptitudes of communities for special industries constitute such an important element of economic industrial production4 ,a community of efficient smiths1 for example1 has existed in and about ,birmingham since the fifteenth century4 ,as a consequence of this the ,birmingham country has for several centuries been the greatest seat of the metal or hardware industries in the world4 ,again1 the manufacture of woollen cloths has been an industry successfully specialised in ,west ,yorkshire from the fourteenth century4 ,it results that nowhere in the world is the woollen manufacture carried on more prosperously than in ,west ,yorkshire to-day4 ,the potteries of ,staffordshire have been in existence time out of mind1 and in the eighteenth century they took a pre-eminent place among the industries of the world4 ,they hold that place of pre-eminence now1 even though since then the methods of manufacture have been several times revolutionised4 ,,the ,,cotton ,,manufactures ,,of ,,great ,,britain ,but the influence which more than anything else has determined the specialisation of industries in certain places in ,britain rather than in others has been the presence of coal-fields4 ,in only a very few instances have great industries been maintained in districts that are not coal-producing4 ,the busiest industrial centre in all ,britain is1 perhaps1 ,south ,lancashire1 the great seat of the ,,cotton ,,manufacture4 ,south ,lancashire is one great coal-field4 ,,liverpool1 the great cotton port of the world1 is at one edge of this field4 ,,manchester1 the cotton metropolis of the world1 is at the other edge4 ,between and near these two chief towns is a whole nest of large towns and cities--,,preston1 ,,burnley1 ,,blackburn1 ,,rochdale1 ,,bolton1 ,,bury1 ,,ashton1 ,,stockport1 ,,oldham1 etc4--every one of which is wholly devoted to the cotton interest4 ,from their position all these towns obtain both their motive power and their raw material at the lowest possible cost4 ,but1 in addition to its advantages of cheap coal and cheap raw material1 ,south ,lancashire has one other great advantage in favour of its special industry--its climate is eminently suited to the industry4 ,its atmosphere is moist1 and not too moist1 and its temperature is not too cold4 ,cotton thread can be spun and woven in ,lancashire which elsewhere would break4 ,in scarcely any other place in ,england has cotton-weaving or cotton-spinning ever proved a success4 ,the cotton industry of ,scotland is not so localised as it is in ,england1 but ,,paisley 7#fe1jjj7 is famous all the world over for its identification with the manufacture of cotton thread4 ,ireland has no important cotton manufactures except in ,,belfast4 ,one third of the cotton manufactured in the world is manufactured in the ,united ,kingdom4 ,the total product is about #ad1jjj miles of cloth daily4 ,the number of separate mills is over #bejj4 ,the annual product is #ejj1jjj1jjj1 which is one hundred times what it was one hundred years ago4 ,the quantity of raw cotton imported annually to sustain this immense production is #a1gej1jjj pounds4 ,illustration3 ,the great manufacturing districts of ,england4 ,,the ,,woollen ,,manufactures ,,of ,,great ,,britain ,a second great industry of ,great ,britain is its ,,woollen ,,manufacture4 ,this industry is specialised in ,england1 principally in ,west ,yorkshire1 a district which is as well supplied with coal as is ,south ,lancashire4 ,,leeds 7#daj1jjj7 and ,,bradford 7#bcb1jjj7 are the two principal seats of the industry1 but ,,huddersfield and ,,halifax are also important cloth towns1 and many other communities are identified with the manufacture of woollens4 ,the noted ,west of ,england cloths are made principally in ,gloucestershire1 where their manufacture in the town of ,,stroud is a survival of an ancient industry once general throughout the whole county4 ,in ,scotland there are two centres of the woollen industry4 ,the first and most important is in southeast ,scotland1 where1 in the valley of the ,tweed 7in ,,galashiels1 ,,hawick1 ,,jedburgh1 etc471 the celebrated ,scotch tweeds are manufactured4 ,the second is in the valley of the ,teith 7,,stirling1 ,,bannockburn1 etc474 ,at one time the sheep that were pastured on the wolds of ,yorkshire were the chief supply of the raw material for this industry in the whole of ,britain1 but that time is now long past4 ,the total annual import of wool into the ,united ,kingdom is about #gej1jjj pounds1 of which about one half is retained for home manufacture4 ,two thirds of this import comes from ,australia4 ,the number of wool and worsted factories in the kingdom aggregates over #bgej4 ,the value of the woollen goods produced annually is about #bej1jjj1jjj1 which is about one fourth of the total product of the world4 ,,the ,,linen ,,manufactures ,,of ,,great ,,britain ,the third great textile manufacture of the ,united ,kingdom is that of ,,linens4 ,this is the one manufacture in which ,ireland surpasses her sister kingdoms1 ,england and ,scotland4 ,the cultivation of flax and the spinning of linen yarn have been domestic industries throughout all ,ireland from time immemorial4 ,but at the present time the linen-manufacturing industry of ,ireland is almost wholly concentrated in ,,belfast4 ,in ,scotland1 which now almost rivals ,ireland in the extent and perfection of her linen manufactures1 the industry is principally located in ,fifeshire and ,forfarshire1 especially in the towns of ,,dundee and ,,dunfermline1 the latter town being greatly famed for its napery and table linens4 ,linen1 like cotton1 requires a peculiar atmospheric condition of temperature and moisture for its manufacture1 and only in few localities has the linen industry been successfully established4 ,the total value of the annual linen manufacture of the ,united ,kingdom is #ajj1jjj1jjj4 ,,other ,,textile ,,manufactures ,,of ,,great ,,britain ,the annual value of the total manufacture of textile fabrics in the ,british ,isles is about #a1jjj1jjj1jjj--not far short1 indeed1 of one fourth of the total manufacture of textile fabrics in all the world4 ,great ,britain has over #a1jjj1jjj1jjj invested in her textile industry1 and one half of her total exports consists of textile manufactures4 ,cotton1 woollen1 and linen cloths are the chief staples of this industry1 but there are many other branches of it and many other localities in which it is specialised besides the ones already mentioned4 ,,leicester 7#bjd1jjj71 which1 like so many other manufacturing cities of ,england1 lies at the centre of a coal-field1 is the chief seat of the ,,woollen ,,hosiery manufacture4 ,,dumfries is the chief seat of the woollen hosiery manufacture in ,scotland4 ,,kidderminster1 in ,worcestershire1 is the chief seat of the ,brussels carpet industry2 ,,wilton1 in ,wiltshire1 of the ,wilton carpet industry4 ,,kilmarnock1 in ,ayrshire1 is the chief seat of the carpet manufacture in ,scotland4 ,,nottingham 7#bcc1jjj7 is the metropolis of the cotton hosiery and lace manufacture of ,england4 ,,norwich 7#aaj1jjj71 in eastern ,england1 has a noted manufacture of muslins and fine dress-goods4 ,the ,norwich textile manufacture is an instance of the continuance of an industry in a community historically associated with it1 although its seat is far removed from a coal-field4 ,the ,,silk manufacture of ,great ,britain is almost entirely confined to the county of ,derby and adjacent districts in ,england4 ,,macclesfield1 in ,cheshire1 is the chief centre4 ,,coventry is noted for its silk ribbons and gauzes4 ,but the manufacture of silk in ,britain is not prospering like that of her other textile fabrics4 ,in fact1 in forty years it has depreciated three fourths4 ,british silk manufacturers are not as adept in weighting their products with dyes as their ,french competitors are1 and in consequence ,english silks1 though intrinsically better than ,french silks1 look inferior and therefore cannot be sold at profitable prices4 ,but1 on the other hand1 the ,,jute manufacture of ,great ,britain is increasing by leaps and bounds4 ,established only sixty years ago1 the value of its annual output is now twice that of the whole manufacture of silk1 and in twenty-five years has tripled4 ,the chief seat of this industry is ,,dundee 7#afj1jjj71 in ,scotland4 ,,the ,,hardware ,,manufactures ,,of ,,great ,,britain ,the textile manufactures of ,great ,britain are in the aggregate first in importance1 but the ,,hardware manufactures come a close second4 ,the total amount of ,great ,britain's hardware products is about #gej1jjj1jjj1 or one fourth of the total product of the world1 and of this about one third is exported4 ,even more than her textile fabrics1 the hardware manufactures of ,great ,britain are associated with her coal-fields4 ,the most distinctive hardware centre is that one which is identified with the great coal-field in the middle of ,england known as the ,black ,country4 ,,birmingham 7#ejf1jjj71 the chief place in this centre1 is unrivalled in the world for the multifariousness and extent of its metal manufactures4 ,it is literally true that everything from a needle to an anchor is made within its limits4 ,but though its industries comprise principally those of iron and steel1 its manufactures in gold1 silver1 copper1 zinc1 lead1 and aluminium are also very important4 ,birmingham1 too1 is unrivalled in the world in the application of art to metal work4 ,its manufacture of jewellery1 and gold and silver ornaments1 is enormous4 ,its manufacture of small wares is also enormous4 ,for example1 it turns out #ae1jjj1jjj pens weekly4 ,its manufacture of buttons runs into the hundreds of thousands of millions4 ,,wolverhampton 7#hh1jjj71 also in the ,black ,country1 is noted for its manufacture of heavy hardware and machinery4 ,so also in ,,oldham1 in the ,lancashire district4 ,so also in ,,leeds1 in the ,west ,yorkshire district4 ,,sheffield 7#ceb1jjj71 also in ,yorkshire1 is historically identified with its celebrated cutlery manufacture1 an industry that first began there because of the quality and abundance of the grindstones found near by4 ,with the coal-beds of ,durham and ,cumberland are identified the great ship-building and locomotive-building industries of ,,newcastle 7#bah1jjj71 ,,sunderland 7#adb1jjj71 and ,,darlington1 on the northeast side of ,england1 and the great steel manufactures 7the largest in the kingdom7 and ship-building industries of ,,barrow-,,on-,,furness1 on the northwest side4 ,with the coal-fields of ,south ,wales 7noted for its smokeless coal7 are identified the smelting industries of ,,swansea 7#gj1jjj74 ,ores of copper especially1 but also of silver1 zinc1 and lead1 are brought from all over the world to ,swansea to be smelted4 ,these ,south ,wales coal-fields also account for the fact that in respect to amount of tonnage ,,cardiff 7#afj1jjj7 is one of the chief ports for exports in the world1 ranking in this respect next after ,new ,york4 ,the exports of coal from ,cardiff are now #ab1jjj1jjj tons annually4 ,,ii4 ,,the ,,trade ,,features ,,of ,,france ,,france ,a ,,richly ,,favoured ,,country ,france by nature is one of the most highly favoured countries in the world4 ,its climate is genial4 ,its temperature is so varied that almost every vegetable1 grain or fruit needed for the sustenance of man may be raised within its borders4 ,its soil1 though not surprisingly fertile1 yet yields abundantly such products as are suited to it4 ,its mineral resources1 especially in coal1 iron1 lead1 marble1 and salt1 are very considerable4 ,its area is compact4 ,its facilities for foreign commerce are unsurpassed4 ,it lies between the two bodies of water--the ,atlantic and the ,mediterranean--of greatest commercial importance in the world4 ,and its people1 especially those in rural parts1 are exceptionally frugal and industrious4 ,but ,france as a nation has not made the progress in the world that its natural advantages call for4 ,it has been cursed with expensive and unstable governments and sanguinary wars4 ,its upper classes1 the natural leaders of its peoples1 are excessively fond of pleasure and military glory1 and the energies of the nation have been much misdirected4 ,as a consequence1 despite its natural advantages1 ,france is losing ground among the nations of the world4 ,its national debt amounts to nearly #g1jjj1jjj1jjj1 the largest national debt known in history1 being per head of population seventeen and one half times as great as that of ,germany1 six times as great as that of the ,united ,states1 and much more than one and one half times as great as that of ,great ,britain4 ,but1 what is of more serious consequence1 the vitality of its people seems debilitated4 ,for years the annual number of births in ,france has been steadily decreasing1 while the annual number of deaths has been more or less increasing4 ,over a great part of the country the number of deaths annually exceeds the number of births4 ,in numerous years this is so for the whole country4 ,the birth rate is the lowest in ,europe4 ,the death rate1 while not the highest1 is yet higher than in many other countries4 ,as a consequence of all this the population of ,france is almost stationary4 ,during the last seventy years it has increased only #ah per cent41 while that of ,great ,britain has increased #fc per cent41 ,germany #ge per cent41 ,russia #ib per cent41 and ,europe as a whole #fb per cent4 ,and even this increase1 small as it is1 is largely due to immigration from other countries4 ,nor is the emigration of ,frenchmen to their colonies or to other countries to be set down as a sufficient explanation4 ,the ,french are averse to emigration4 ,at the present time the number of ,frenchmen residing abroad is only a little more than half a million1 while of foreigners residing in ,france the number is not far short of a million and a quarter4 ,illustration3 ,france1 compared in size with the ,states of ,illinois and ,texas4 ,,the ,,french ,a ,,thrifty1 ,,frugal ,,people ,when ,france is compared with other countries in respect of commercial development and progress1 the results will in almost every particular turn out unfavourable to ,france4 ,for example1 since the close of the ,napoleonic wars eighty-three years ago the national trade of ,great ,britain has quadrupled1 while that of ,france has only trebled4 ,at the close of the ,franco-,german war ,france was eighteen per cent4 ahead of ,germany in the carrying power of her shipping4 ,now ,germany is seventy per cent4 ahead of ,france in that respect4 ,but it must be remembered that the ,franco-,german war cost ,france in army expenses and in indemnity no less a sum than #c1bej1jjj1jjj4 ,the effect of that tremendous expenditure upon the prosperity of the nation can be estimated by one comparison4 ,since that war the annual average savings per inhabitant in ,france have been #ag4 ,for the same period the annual average savings per inhabitant in ,great ,britain have been #ai4ej4 ,had that war not occurred the average annual savings per inhabitant in ,france would have been #ba4ej4 ,in short1 no people in ,europe are comparable with the working classes of the ,french people in frugality and thrift1 and because of this characteristic1 if ,france were well governed1 its prosperity would be equal to that of any country in the world1 and this would be so in spite of the fact that ,france's interest bill imposes a tax of #f4ej a year on every inhabitant of the country4 ,illustration3 ,street scene in ,paris1 showing the ,bourse4 ,,the ,,importance ,,of ,,agriculture ,,in ,,france ,france has one element of stability1 one characteristic inducive of thriftiness1 that most other countries of ,europe lack4 ,in most other ,european countries the land is held by few proprietors4 ,in ,france it is held by many4 ,in ,great ,britain and ,ireland1 for example1 the land that is devoted to agriculture is held by only #ai1jjj proprietors4 ,in ,france it is held by #c1ejj1jjj proprietors4 ,there are also #c1ejj1jjj district farms in ,france1 though only sixty per cent4 of the farm land of the country is cultivated by the owners4 ,it follows from this that agriculture has in ,france a hold upon the affections and self-interest of the people that it has in no other country in the world4 ,about forty-two per cent4 of the total population of the country able to work are employed in agricultural pursuits4 ,agriculture1 therefore1 is one of the most important industries of ,france4 ,one fifth of the total earnings of her people are made in agriculture4 ,it cannot be said1 however1 that agriculture in ,france is pursued as successfully as it is in some other countries--in ,great ,britain1 for example4 ,france1 with sometimes the exception of ,russia1 is the largest wheat-grower of all the nations of ,europe1 but its production of grain per acre is not more than four sevenths that of ,great ,britain1 while its production of grain per farming hand is only two thirds that of ,great ,britain4 ,but so much of the agricultural effort of ,france is devoted to such industries as can be carried on in small farms or holdings--potato-raising1 for example1 and fruit-raising and poultry-raising--that the total money product per acre in ,france is not far short of what it is in ,great ,britain4 ,that is to say1 while agriculture is more profitably carried on in ,great ,britain than in ,france1 it proportionately supports a larger number of people in ,france than in ,great ,britain4 ,,france',s ,,waterways ,,and ,,railways ,france1 like ,germany1 is well supplied with navigable rivers1 and these1 with its canals1 constitute a complete network of navigable waterways that cover all the country and greatly promote the internal commerce of the nation4 ,these navigable rivers aggregate #eejj miles1 and the navigable canals over #cajj miles4 ,the tonnage of goods carried on these waterways compares quite favourably with that carried by the railways4 ,the railways aggregate #be1jjj miles4 ,,the ,,distinctive ,,and ,,important ,,manufactures ,,of ,,france ,the most distinctive manufacture of ,france1 the one in which she surpasses all other countries of the world1 is the ,,silk ,,manufacture4 ,france's total production of silk is not far short of one third of the total production of the world4 ,,lyons 7#dff1jjj71 on the ,rhone1 is the chief seat of the industry1 having had this pre-eminence ever since the ,jacquard loom was invented there at the beginning of this century4 ,its production is not far short of three fourths of the total production of the country4 ,the most important manufacture of ,france1 however1 is her manufacture of ,,woollens4 ,in this manufacture she comes next after ,great ,britain1 her total production being a little ahead of that of both ,germany and the ,united ,states4 ,her woollen mills number over #bjjj4 ,her consumption of wool for this industry is about three fourths that of ,great ,britain1 but the value of her production is only two thirds that of ,britain4 ,,lille 7#baf1jjj7 and ,,rheims 7#ajh1jjj7 are the chief seats of the woollen industry4 ,of about equal value with the woollen manufacture of ,france is its ,,hardware manufacture1 but the importance of ,france's hardware manufacture is national rather than international4 ,of next importance is the manufacture of ,,cottons and ,,linens4 ,the chief seats of these industries are1 for cottons1 ,,rouen 7#aac1jjj71 the ,manchester of ,france1 and for linens1 ,,lille4 ,near ,lille is ,,cambrai1 the chief place of manufacture for that finer class of linens known as cambrics4 ,a second distinctive manufacture of ,france is that of ,,glass and ,,porcelain4 ,in this manufacture ,france quite equals ,great ,britain in respect of value1 and surpasses her in respect of the artistic character of the wares4 ,,limoges 7#gg1jjj7 and ,,st4 ,,cloud 7near ,paris7 are the chief seats of the ,french porcelain manufacture4 ,it is at ,st4 ,cloud that the celebrated ,svres porcelain is made4 ,,paris ,,and ,,the ,,great ,,seaports ,,of ,,france ,paris 7#b1ecf1hcd7 is1 of course1 the chief trade centre of all ,france1 but the trade interests of ,paris are general rather than special4 ,the manufactures that are most localised in ,paris are those of articles of luxury1 such as jewellery1 perfumery1 gloves1 fancy wares1 novelties1 and fashionable boots and shoes4 ,paris is also a great financial centre4 ,,marseilles 7#ddb1jjj71 one of the oldest cities in ,europe1 is the great seaport of ,france4 ,its trade amounts to over #cej1jjj1jjj annually1 and it ranks next after ,hamburg among the great seaports of central ,europe4 ,its specialty is its great trade with the ,mediterranean and the ,east4 ,the opening of the ,suez ,canal has been of incalculable advantage to ,marseilles4 ,next as shipping port comes ,,havre 7#aai1jjj71 at the mouth of the ,seine1 with a total trade not far short of that of ,marseilles4 ,havre is in reality the port or haven of ,paris4 ,it is the great depot for ,french imports from ,north and ,south ,america4 ,these comprise principally cotton1 tobacco1 wheat1 animal produce1 and wool4 ,its import of ,south ,american wool is enormous1 for three fourths of the wool used in ,france now comes from the region of the ,la ,plata4 ,recently the ,seine has been deepened and now both ,rouen and ,paris may be considered seaports4 ,by this means ,paris has direct water communication with ,london1 and is1 indeed1 the third seaport in the country4 ,next comes ,,bordeaux 7#beg1jjj71 the chief place of export for ,french wines and brandies4 ,about twenty years ago the wine industry of ,france suffered tremendous loss from the ravages of the insect phylloxera4 ,over #d1jjj1jjj acres of vineyard1 representing a value of #a1jjj1jjj1jjj1 were wholly or partially ruined by this terrible pest4 ,the plague1 however1 has now been stamped out1 but nearly #b1jjj1jjj acres of vineyards have been permanently destroyed and have been devoted to potatoes and the sugar-beet root4 ,the result is that the production of wine in ,france is now less than what is needed for home consumption1 and over fifty per cent4 more wine is imported than is exported4 ,the remaining great shipping ports are ,,dunkerque 7#dj1jjj7 and ,,boulogne 7#cg1ejj74 ,,calais 7#eg1jjj7 has a great passenger trade with ,england4 ,,iii4 ,,the ,,trade ,,features ,,of ,,germany ,,germany ,,the ,,most ,,prosperous ,,nation ,,in ,,continental ,,europe ,the greatest and most prosperous commercial nation in the old world after ,great ,britain is ,germany4 ,its population is #eb1jjj1jjj1 as against ,france's #ch1ejj1jjj2 and while ,france's population is scarcely increasing at all1 ,germany's population is increasing the most rapidly of any in ,europe4 ,since the ,franco-,prussian war ,france has gained in population only a little over #b1jjj1jjj1 while ,germany in the same time has gained #ab1jjj1jjj4 ,in the middle of the present century the populations of ,germany and ,france were equal1 being each about #ce1jjj1jjj4 ,since that date ,germany's population has increased by about fifty per cent4 and ,france's by only about ten per cent4 ,similarly1 the commerce of ,germany not only greatly exceeds that of ,france1 but is growing much faster than that of ,france4 ,the total exports and imports of ,germany1 exclusive of bullion1 now foot up to nearly #b1jjj1jjj1jjj a year4 ,the total exports and imports of ,france1 exclusive of bullion1 foot up to only #a1ejj1jjj1jjj a year4 ,the total commerce of ,germany is therefore about one third more than that of ,france4 ,at the close of the ,franco-,prussian war the total commerce of ,france considerably exceeded that of ,germany4 ,,the ,,character ,,of ,,germany',s ,,industries ,,changing ,germany1 like ,england1 is rapidly changing the character of her industries and becoming a manufacturing and commercial nation instead of an agricultural nation4 ,this is the cause of her well-known anxiety to secure control of territories in ,africa1 ,asia1 etc41 as exclusive markets for her manufactures1 for1 unlike ,england1 ,germany is at present a believer in exclusion in trade1 both at home and in her colonies4 ,fifty years ago about four sevenths of the people of ,germany were engaged in agriculture2 now only about one third of the people are so employed4 ,the growth of the great cities of ,germany is eight times faster than that of the rural districts1 and in fifty years the aggregate population of the six largest cities of the empire--,berlin1 ,hamburg1 ,leipzig1 ,munich1 ,breslau1 and ,dresden--has grown sixfold1 namely1 from #fjj1jjj to #c1fjj1jjj4 ,in fifty years1 too1 the manufactures of ,germany have nearly doubled1 the commerce nearly trebled1 the shipping increased more than fivefold1 and the mining output more than sixfold4 ,while all this is true1 it nevertheless is also true that the area of cultivated soil in ,germany is double what it was fifty years ago4 ,but this is because much land1 formerly waste or in pasture1 has been brought under cultivation4 ,yet even now only one half of the land of ,germany is cultivated1 and thirty-three per cent4 of the total food consumption of the people has to be imported4 ,fifty years ago only five per cent4 of the total food consumption was imported1 and this small fraction consisted almost wholly of luxuries4 ,,germany',s ,,success ,,in ,,technical ,,education ,illustration3 ,approximate size of the ,german ,empire4 ,,note4--,the population of that part of the ,united ,states included within the circle is about #aj1jjj1jjj4 ,the population of the ,german ,empire is about #eb1jjj1jjj4 ,germany's prosperity and progress cannot wholly be measured by statistics4 ,no one can predict what it will be1 for it is partly based upon elements that unfortunately other countries have not taken much account of4 ,germany pays greater attention to the ,,practical ,,education of her people than any other nation in the world4 ,her system of technical education extends over the whole empire1 and provides technical instruction for every class of the people and for every occupation of the people--night schools for those already engaged in life's work1 agricultural schools1 forestry schools1 commercial schools1 mining schools1 naval schools1 and schools in every branch of manufacturing industry1 besides1 of course1 schools for the education of those intending to follow the learned professions4 ,as a consequence of this very general provision of technical education1 there is engaged in ,german manufacturing pursuits a class of workmen not found in the workshops of any other country--men of industrial skill and experience1 and at the same time of the highest scientific technical attainments in the branches of science that bear particularly upon their work4 ,these men work at salaries that in other countries would be considered absurdly low4 ,in almost all other countries the possession of a sound scientific education is a passport to social distinction1 and every profession is open to him who is deserving to enter it4 ,in ,germany1 however1 the learned professions1 and especially the official positions of the army and navy1 are almost the exclusive preserves of those who are born to social rank4 ,the educated commoner1 therefore1 has to betake himself to manufacture1 trade1 or commerce4 ,it follows that scientific skill and intelligence are more generally diffused in ,german commercial industries than in those of all other nations4 ,so far1 however1 the ,german artisan has not been the equal in special technical skill of his more rigidly specialised ,english competitor1 and as a consequence of this more than one sixth of ,germany's total imports consist of goods brought from ,england--principally the finer sort of textile fabrics and articles of iron and steel4 ,this inferiority in specialisation in the ,german workmen cannot continue long1 and the successful rivalry of ,germany with the manufacturing pre-eminence of ,great ,britain may soon be a startling fact4 ,,germany',s ,,mines ,,and ,,hardware ,,manufactures ,it is in the development of her mines and of manufactures in which ,,minerals are employed that ,germany has made most noticeable progress4 ,she produces four times as much coal as ,france1 and she has over #ajjj separate iron-mines4 ,her production of iron has increased tenfold in fifty years4 ,she employs over #djj1jjj men in her mines1 and by the use of labour-saving machinery one man can now produce as much as three men could produce fifty years ago4 ,her ,,hardware manufactures are one sixth of her total manufactures1 and in the past half century they have increased sixfold4 ,they are now double those of ,france1 and are only one fourth less than those of ,great ,britain4 ,she has #gej factories devoted to the making of machinery alone4 ,two of these--,krupp's at ,essen1 and ,borsig's at ,berlin--are among the largest in the world4 ,krupp's employs #bj1jjj men1 has #caj steam-engines1 and covers an area of #ajjj acres4 ,borsig's employs #aj1jjj men1 and in fifty years1 starting from nothing1 has turned out nearly #djjj locomotives4 ,one of ,krupp's hammers 7a fifty-ton hammer7 cost #ejj1jjj4 ,,germany',s ,,internal ,,trade ,germany's commercial energies up to the present have been mainly concentrated on her ,,internal ,,trade4 ,the total amount of this trade foots up to #g1jjj1jjj1jjj1 against ,france's #f1jjj1jjj1jjj1 and in fifty years it has trebled1 while that of ,france has scarcely doubled4 ,germany has more miles of railway than any other country in the world except the ,united ,states1 her mileage being nearly #cj1jjj1 against ,france's #be1jjj and ,great ,britain's #ba1jjj4 ,her natural and artificial waterways are also the best in ,europe1 and her vast production of mineral wealth is transported from mine to foundry and factory1 and her vast production of lumber and grain is transported from forest and field to seaport1 largely by means of water carriage4 ,the ,rhine1 the ,elbe1 the ,oder1 and the ,vistula are all navigable throughout their whole courses through ,german territory1 while the ,weser and the ,danube are also navigable throughout great parts of their courses4 ,all these navigable rivers are interconnected by canals4 ,the total length of possible river navigation is nearly #fjjj miles1 while the total length of canals and canalised rivers is #bgjj miles4 ,besides1 in #ahie there was completed the ,kaiser ,wilhelm ,canal1 a lockless sea-going vessel canal1 twenty-nine feet six inches deep and sixty-one miles long1 connecting the ,north ,sea and the ,baltic1 and constructed at a cost of nearly #dj1jjj1jjj4 ,this canal effects a saving of almost one whole day for commercial steamers1 and of three days for all sailing-vessels1 engaged in the ,baltic and ,north ,sea trade4 ,,germany',s ,,foreign ,,trade ,but while it is true that ,germany's internal trade is her most important trade1 it is also true that her ,,foreign ,,trade has during the last half century made more progress than that of any other ,european country1 and during the last three or four decades more progress than even that of the ,united ,states4 ,since #ahdj it has increased six and two third times1 while that of ,great ,britain has increased six times1 and ,france only four and one fifth times4 ,it is now second in the world1 being more than half of that of ,great ,britain1 ahead of that of the ,united ,states1#a and very considerably ahead of that of ,france1 while in #ahfj it was much less than half of that of ,great ,britain1 less than that of the ,united ,states1 and considerably less than that of ,france4 ,germany1 however1 is not well favoured with respect to seaports1 for in its transmarine trade it is largely dependent on foreign seaports--namely1 ports in ,belgium1 ,holland1 ,france1 ,italy1 and ,austria4 ,rotterdam in ,holland and ,antwerp in ,belgium are much more favourably situated with respect to the commerce of its chief mining and manufacturing regions than any of its own ports4 ,there are only two ,german seaports with water of depth sufficient to accommodate the deep-drawing vessels in which foreign commerce is now mainly carried on--namely1 ,,cuxhaven1 the outport of ,hamburg1 sixty-five miles from ,hamburg1 and ,,bremerhaven1 the outport of ,bremen1 thirty-five miles from ,bremen1 though recent improvements in the navigation of the ,elbe allow vessels of even twenty-six feet draught to ascend the ,elbe wholly to ,hamburg4 ,but ,,hamburg 7#fbe1jjj71 for the reason that for centuries it was a free port of entry1 has built up a very large foreign trade1 being the fifth in the world in this respect1 ,london1 ,new ,york1 ,liverpool1 and ,rotterdam1 alone being ahead of it4 ,hamburg's foreign trade is almost one half greater than the whole foreign trade of all other ,german ports put together1 while the foreign trade of ,bremen is about one fourth that of ,hamburg4 ,,bremen1 like ,hamburg1 was for centuries a free port of entry1 but in #ahhh both ,hamburg and ,bremen gave up in great part their free port privileges and entered the general customs union of the empire4 ,both cities were extremely loath to give up their ancient unique commercial privileges1 for they feared an immense loss of trade in doing so1 but it was hoped that what they lost in foreign commerce would be made up to them in increased commerce with other parts of the empire4 ,one reason for the great development of ,germany's foreign trade in late years is found in the facilities that it possesses for rapid transit to and from ,italy by means of tunnels through the ,alps4 ,illustration3 ,north central ,germany1 showing the ship canal and the leading commercial arteries4 ,,footnote3 #a ,during the last two or three years the foreign trade of the ,united ,states has greatly expanded and has exceeded that of ,germany1 and is making a close push upon that of ,great ,britain4 ,the above statement was intended to represent the situation as existing during a period of some years4 ,,the ,,special ,,trade ,,centres ,,of ,,germany ,,berlin 7#a1gjj1jjj71 the capital of the empire1 is a chief seat of machinery manufacture4 ,for many years ,,frankfort-,,on-,,the-,,main enjoyed the pre-eminence of being next to ,london the greatest money market in the world2 but since the establishment of the ,german ,empire ,frankfort's financial business has been absorbed by ,berlin4 ,,leipzig 7#djj1jjj7 has the distinction of being the seat of a book-publishing trade that turns out over #fj1jjj1jjj volumes in a year1 amounting in value to #cj1jjj1jjj4 ,leipzig has also the honour of being the greatest fur market in the world4 ,,dantzig 7#abj1jjj7 is ,germany's chief port on the ,baltic1 and the chief seat of its great export trade in timber1 grain1 flax1 hemp1 and potatoes4 ,its harbour1 however1 is closed in winter because of ice4 ,,dresden 7#ccj1jjj7 is noted for its porcelain manufacture1 but the porcelain is not manufactured chiefly in ,dresden1 but in ,,meissen1 fifteen miles from ,dresden4 ,,munich 7#djg1jjj7 manufactures largely the national beverage1 beer4 ,finally1 ,,nuremberg 7#afb1jjj71 in southern ,germany1 is remarkable for its continuance into modern days of manufactures for centuries carried on domestically4 ,of these the most noted are watches1 clocks1 pencils1 and toys4 ,,iv4 ,,trade ,,features ,,of ,,spain ,,and ,,italy ,,italy1 ,,turkey1 ,,and ,,spain1 ,,the ,,three ,,decadent ,,nations ,,of ,,europe ,the ,mediterranean from the very earliest epochs of civilisation has been a chief highway of trade1 and along its shores every sort of commercial activity has been prosecuted4 ,for centuries and centuries the nations upon the borders1 especially those upon its northern borders1 were the leading nations of the world1 and their empire1 indeed1 comprised the empire of the world4 ,but during the last two or three centuries1 and especially during the nineteenth century1 commercial pre-eminence and pre-eminence in empire have departed from the ,mediterranean4 ,italy1 the ruler of the whole ancient world1 and even in modern times a ruler of almost equal potency2 ,turkey1 during the middle ages a chief power both in ,europe and in ,asia2 ,spain1 for two centuries at the beginning of our modern epoch a chief power in ,europe and the mistress of almost the whole ,western world as well1--these countries have all sunk to positions of comparative insignificance1 and ,italy alone shows signs of effectual regeneration4 ,and yet on the whole earth's surface there are no lands more richly endowed by nature as abodes for man than ,italy1 ,turkey1 and ,spain4 ,,spain3 ,,its ,,trade ,,and ,,its ,,special ,,trade ,,centres ,spain1 because of the varied climate of her several parts1 is capable of producing almost all the edible fruits and grains known to both temperate and tropical regions4 ,though there are some desert areas1 a great portion of the soil is abundantly productive1 and were agriculture pursued with the same skill as it is in other countries--in ,england and ,scotland1 for example--,spain would be one of the richest agricultural regions on the globe4 ,but not only is agriculture very inefficiently pursued1 but the country is also sparsely inhabited 7only #ij to the square mile1 as compared with #bgj to the square mile in ,italy7 and only one fourth of it is cultivated4 ,as a consequence only those products are raised in ,spain in which1 because of her advantages of climate1 etc41 she has least competition4 ,the principal commercial agricultural product is ,,wine1 the vine being cultivated in every province in the kingdom4 ,six hundred million gallons of wine are raised annually1 which is more in value than the total quantity of grain raised4 ,only one fifth of this1 however1 is exported 7principally to ,france71 and even of this the greater portion is wine of inferior grade1 used for mixing4 ,the remaining agricultural products of ,spain exported are chiefly oranges1 lemons1 grapes1 raisins1 nuts1 olives1 and onions4 ,of these over #ae1jjj1jjj worth go to ,england annually4 ,england and ,france1 indeed1 enjoy the great bulk of ,spain's foreign trade1 but of late years ,germany and the ,united ,states are taking a small share of it4 ,the ,,mineral ,,wealth of ,spain is enormous1 and as the mines are often controlled by foreign capital they are worked with energy4 ,the iron ore of the ,basque provinces of the north and the copper ore of the district about ,cadiz have been renowned for ages4 ,thirty-five million dollars' worth of copper1 iron1 lead1 silver1 and quicksilver are exported to ,great ,britain annually4 ,there are manufactures of cottons1 woollens1 linens1 and silks1 but none of these can be said to be very prosperous1 although during the last twenty-five years1 owing to a high protective tariff1 the quantity of raw material used in textile manufacture in ,spain has doubled4 ,spain produces excellent wool1 but her woollen manufacture is unable to use it all and one fourth is exported4 ,similarly1 although ,spain is especially rich in iron-fields1 she gets about one third of the hardware she needs for her own consumption from ,england4 ,the total area of ,spain's ,,coal-,,fields is estimated at #eejj miles1 but hitherto little coal has been mined1 partly because it is somewhat inaccessible4 ,four million dollars' worth of coal is annually imported from ,england4 ,whole mountains of ,,rock ,,salt exist1 but little is mined and none is exported1 although bay salt obtained in the south is exported to the fishermen of ,cornwall4 ,another important export is ,,esparto ,,grass1 which is sent to ,england to be used in paper-making4 ,and still another is ,,cork1 although ,portugal1 which adjoins ,spain1 is the chief seat of the cork-producing industry4 ,,madrid 7#dgj1jjj7 is the capital and largest city4 ,,barcelona 7#bej1jjj7 is the chief seaport of ,spain and the chief manufacturing centre4 ,,valencia 7#ade1jjj71 in the southeast1 and ,,seville 7#ace1jjj7 and ,,malaga 7#aae1jjj71 in the south1 are the principal seats of the fruit export trade of the country4 ,,cadiz 7#fe1jjj71 ,spain's principal naval seaport1 has a famous export trade in sherry wines4 ,the total population of ,spain is #ag1ejj1jjj4 ,illustration3 ,spain compared in size with ,california4 ,,italy',s ,,lamentable ,,condition ,italy's condition is in some respects better than that of ,spain1 but in others worse4 ,its population is #cj1ejj1jjj1 being three times more to the square mile than that of ,spain1 and fifty per cent4 more to the square mile than that of ,france4 ,since #ahcj the population has increased forty-five per cent41 and this notwithstanding the fact that the loss by emigration is equal to one half of the natural increase from the surplus of births over deaths4 ,two million people of ,italian birth are to-day residing in foreign countries4 ,again1 the ,italians1 except those in the southern parts 7the ,italians of ,naples and vicinity1 for example71 are the ,,most ,,industrious ,,people in ,europe1 with a special aptitude for gardening and tillage4 ,in fifty years they have reclaimed #bj1jjj1jjj acres from forest1 and increased the area of land under cultivation by one hundred per cent4 ,in fifty years1 too1 they have trebled the amount of capital invested in agriculture4 ,since #ahfj they have increased the amount of material which they use in their textile manufactures 7cotton1 wool1 silk1 and linen7 nearly fivefold4 ,since #ahej they have increased their external commerce two and one half times4 ,finally1 since #ahcj1 they have increased their internal trade two and one quarter times4 ,but all these signs of prosperity in ,italy are negatived by the constantly increasing magnitude of her ,,national ,,debt4 ,this now amounts to more than #b1ejj1jjj1jjj1 or more than two and one half times the total net national debt of the ,united ,states1 and about one fourth more than the total national1 state1 county1 municipal1 and school-district debts of the ,united ,states4 ,and this vast debt for a people of #cj1ejj1jjj is exclusive of the provincial and communal debts1 which amount to #bge1jjj1jjj additional4 ,italy since her reorganisation as a kingdom in #ahgj has set out to be a first-class military and naval power1 and the cost is more than she can stand4 ,she has a permanent army of nearly #hjj1jjj men1 #bej1jjj of whom she keeps under arms constantly4 ,she has a fleet of seventeen battleships1 two coast-defence ships1 eighteen cruisers1 and #bgb torpedo craft1 most of these being of modern type and first-class rating4 ,she spends on her army nearly #ej1jjj1jjj annually1 and on her navy nearly #bj1jjj1jjj annually4 ,this1 with an annual interest payment of #aae1jjj1jjj1 all unproductive expenditure1 makes a demand upon her revenue that is draining her people of their life's blood4 ,,every ,,sort ,,of ,,taxation is resorted to--direct and indirect2 land1 house1 and income2 succession duties1 registration charges1 and stamps for commercial papers2 customs1 excise and octroi2 besides government monopolies2 and all this exclusive of communal taxation4 ,and yet since #ahia there has been an annual deficit of national revenue under national expenditure averaging #b1bej1jjj4 ,as a consequence of these taxes1 and of the repressive effect they have upon industrial enterprise1 the net earnings of the country per inhabitant are lower in ,italy than in any other ,european state except ,turkey1 ,russia1 and ,greece--lower1 even1 than in the ,danubian states and ,portugal and ,spain4 ,,italy',s ,,trade ,,and ,,special ,,trade ,,centres ,the most distinctive natural product of ,italy is ,,silk1 and the amount of raw and thrown silk exported is about #eg1ejj1jjj annually4 ,silk culture is carried on all over the kingdom1 though the industry flourishes most extensively in ,piedmont and ,lombardy1 in the north4 ,over #eej1jjj people are engaged in rearing silkworms1 and the annual cocoon harvest approximates #ajj1jjj1jjj pounds4 ,silk-throwing1 or-spinning1 is the principal manufacturing industry1 and the amount of silk spun and exported is about #de1jjj tons1 most of which goes to ,france4 ,after silk the products of the country that constitute the principal exports are ,,olive ,,oil1 ,,fruit 7oranges1 lemons1 grapes1 almonds1 figs1 dates1 and pistachio nuts71 and ,,wine 7in casks74 ,the olive-oil export and the fruit export are each about a fifth of the export of silk1 and the wine export about a sixth4 ,other important and characteristic exports are raw hemp and flax1 sulphur1 eggs1 manufactured coral1 woods and roots used for dyeing and tanning1 rice1 marble1 and straw-plaiting4 ,the principal import is ,,wheat1 for agriculture1 though generally pursued1 is still in a backward state of efficiency1 and the average grain crop is only one third what it is in ,great ,britain4 ,one eighth the total amount of wheat needed to support the people has to be imported4 ,in fact1 the total amount of food-stuffs raised in the kingdom is much less than the amount required1 being1 for example1 per inhabitant1 not more than one half of what is raised in ,france4 ,in particular1 there is a deficiency of meat1 and the amount of meat raised per inhabitant is the lowest in ,europe4 ,as a consequence the ,italians are poorly fed1 and it is estimated that four per cent4 of the annual death loss is occasioned by impoverishment of blood due to insufficiency of wholesome food4 ,after wheat and raw cotton1 the next principal import is ,,coal1 for ,italy has no workable coal-fields4 ,as far as possible water power is used as a motive power instead of coal1 especially in the iron industries4 ,an important import also is ,,fish1 for1 owing to the great number of fast days which the ,italian people observe1 and to the dearness and scarcity of meat1 fish is a very general article of consumption4 ,six million dollars' worth is imported annually1 and perhaps an equal amount is obtained from local fisheries1 for there are over #bb1jjj vessels and boats and over #gj1jjj men engaged in this industry4 ,after silk-throwing1 the most characteristic ,italian manufacturing industries are those which are of an artistic or semi-artistic nature1 such as the making of fine earthenware1 porcelain1 glassware1 mosaics1 and lace4 ,,venice 7#aed1jjj7 and ,,genoa 7#bbe1jjj7 are still the principal seaports and trade centres of ,italy1 but in commercial importance these famous cities are only the mere shadows of what they once were4 ,,naples 7#ebi1jjj71 the largest city1 is a place of little enterprise1 for its imports1 principally cereals1 are three or four times the value of its exports1 which are mainly cheap country produce4 ,,milan 7#deg1jjj7 and ,,turin 7#cdh1jjj7 are the great trade centres of the north interior1 and the most prosperous places in the kingdom1 being the chief seats of the silk-throwing industry4 ,milan is also the chief seat of the ,italian cutlery manufacture4 ,,palermo 7#bhd1jjj7 and ,,messina 7#aej1jjj71 in ,sicily1 are the chief ports for the export of ,italian fruits1 and also of ,italian fish 7anchovies1 tunnies1 etc474 ,,rome 7#dgd1jjj7 and ,,florence 7#bjg1jjj7 owe their chief importance to their art interest and to their historic associations1 but ,florence has an important manufacture of fine earthenware and mosaics4 ,rome is the chief seat of government4 ,,catania 7#abg1jjj71 in ,sicily1 is the chief seat of the ,italian sulphur export trade4 ,,leghorn 7#ajd1jjj71 the port of ,florence1 is the chief seat of the export straw-plaiting trade4 ,it should be noted that notwithstanding ,italy's extent of coast-line a large part of her foreign commerce is transacted northward by means of the railways that tunnel the ,alps4 ,illustration3 ,italy and its chief commercial centres4 ,v4 ,,the ,,trade ,,features ,,of ,,russia ,,russia1 ,a ,,country ,,whose ,,future ,,is ,a ,,problem ,the position of ,russia in the world is a sort of problem4 ,its area is immense4 ,more than one seventh of the land surface of the globe is included within its compact borders4 ,of this vast territory the area of ,european ,russia alone is only a fourth2 but even so it is larger than the area of all other ,european states put together4 ,the population of ,russia is over #abi1jjj1jjj1 of which over #ajf1jjj1jjj belong to ,european ,russia4 ,but taking even ,european ,russia this is a population of only fifty-four to the square mile1 the lowest proportion in ,europe1 except in ,sweden and ,norway4 ,and the population is increasing4 ,the birth rate is the highest in the world4 ,and though the death rate is very heavy1 being fifty per cent4 more than it is in ,england1 the increase from births is so great that the population doubles in forty-six years4 ,there is thus apparently a prospect that ,russia will1 in the near future1 play an important part in the drama of nations1 her capacities and capabilities for growth seem so prodigious4 ,and yet there is a reverse side to the picture4 ,of the #ajf1jjj1jjj inhabitants of ,european ,russia #aj1jjj1jjj belong to a cultured1 progressive class1 quite the equal of any people in ,europe4 ,but the remainder are principally a low grade of peasantry1 not long removed from slavery4 ,the principal occupation of these peasantry is farming4 ,but their farms are small1 not more than ten acres apiece1 and the total revenue they get from them does not average more than #fe a year per farm4 ,the food of these peasantry is the poorest in ,europe4 ,in the main it consists of rye bread and mushroom soup1 worth about four cents a day4 ,the houses are often mere huts1 not more than five feet square4 ,women as well as men work in the fields1 and yet the total amount of food raised is not more per head of population than one tenth of what is raised by the peasantry of ,france4 ,the value of food raised per acre1 too1 is but little more than one third of the average per acre for all ,europe4 ,illustration3 ,russia1 the ,british ,empire1 the ,united ,states compared4 ,,russia ,a ,,country ,,of ,,social ,,extremes ,the degradation of the peasantry of ,russia is not simply material4 ,it is also moral4 ,in the language of a recent traveller1 they are the drunkenest people in ,europe4 ,the principal intoxicant is a sort of whisky called vodka4 ,with drunkenness exist also dirtiness1 idleness1 dishonesty1 and untruthfulness4 ,and as yet little has been done to ameliorate this degradation4 ,ignorance prevails everywhere4 ,even of the young people of the peasant class more than eighty per cent4 can neither read nor write4 ,there is no middle class4 ,the gulf between the upper class and the lower is so wide as to be absolutely impassable4 ,and for the most part the upper class is quite content to have this state of affairs continue4 ,,the ,,artels ,,of ,,the ,,russian ,,peasants ,there is1 however1 some hope for the lower classes of ,russia4 ,this is because of the prevalence among them1 especially in villages1 towns1 and cities1 of a communal custom in which self-restraint and self-government are necessary conditions of existence4 ,in every branch of common industry artels are found2 that is1 communistic organisations1 where all labour for a common purse in accordance with rules and regulations determined by the members of the organisations4 ,these artels have done much toward increasing the industry1 the honesty1 the truthfulness1 the thrift1 and also the sobriety of their members4 ,they exist throughout all ,russia1 but in some parts more prevalently than in others4 ,as yet1 however1 they scarcely affect the character and condition of the rural peasantry1 and it is these who are most in need of elevation4 ,it should be said1 too1 that the government is doing something to lessen the evil of drunkenness4 ,,russia ,,principally ,,an ,,agricultural ,,country ,russia's principal business is ,,agriculture4 ,more than one half her whole internal trade is agricultural4 ,her agricultural products are one and one half times greater than the products of her manufactures and ten times greater than her mining products or her imports4 ,and though her production of grain per acre is the lowest in all ,europe except ,italy1 ,spain1 and ,portugal1 and her total production of all food products per acre by far the lowest in ,europe 7not more than one third that of ,spain1 which is next lowest71 yet she manages to export a larger quantity of ,,grain than any other country in ,europe1 ,france only sometimes excepted4 ,russia's export of grain for some years past has averaged #bff1jjj1jjj bushels a year4 ,her export of ,,wheat alone has averaged #id1jjj1jjj bushels a year1 or considerably more than a fifth of the total wheat export of the world4 ,the explanation of this enormous export of wheat from so poor a country is that three fourths of the people live on rye4 ,among the peasants wheat bread is practically unknown1 and nothing could be more pathetic than the hard rye lumps which passed as bread during the last famine4 ,other agricultural exports 7besides grain7 are flax1 hemp1 oil-seed cake1 linseed and grass seed1 butter1 eggs1 wool1 hides1 and hogs' bristles4 ,wood1 lumber1 and timber are also extensively exported4 ,england is ,russia's best customer4 ,the amount of ,england's annual importation of the above products 7including grain7 exceeds #aab1jjj1jjj4 ,,russia',s ,,mineral ,,wealth ,in ,,minerals ,russia is enormously wealthy1 but the mining lands are not diffused throughout the empire but confined to definite areas4 ,nor can they be said to be energetically worked4 ,the great gold-fields of the ,ural mountains would not pay expenses as worked at present were they not supplied with convict labour4 ,owing to the heavy import duty which is imposed on pig-iron nearly all the iron now needed for the ,,iron manufactures of the empire is obtained at home1 but this amounts to only #df pounds per inhabitant1 as against #haj pounds per inhabitant used in ,britain4 ,,coal is very abundant1 especially in the valley of the ,donetz1 but fire-wood is so plentiful for domestic purposes1 and water power so plentiful for heavy manufactures1 that the amount of coal mined in all ,russia is only one twelfth that mined in ,germany1 and only one twenty-fourth that mined in ,britain4 ,over #b1bej1jjj tons of coal are imported despite very heavy protective duties4 ,there is one mineral product1 however1 in which ,russia excels all other ,european countries4 ,this is ,,petroleum4 ,the oil-springs on the ,caspian ,sea produce an annual yield of crude petroleum of an average value of #ae1jjj1jjj4 ,the value of the petroleum and petroleum products exported in #ahif was over #bb1jjj1jjj4 ,,russia',s ,,trade ,,and ,,manufactures ,despite ,russia's resources in farm products and in minerals1 yet1 owing to the ignorance and degradation of her people1 she is a poor country1 and her exports are always more than her imports4 ,her total wealth per inhabitant is only #cje1 as against #ghj per inhabitant for ,germany1 #abfj for ,france1 and #aeaj for ,great ,britain and ,ireland4 ,her total foreign trade is only #e per inhabitant1 whereas the foreign trade of her neighbour1 ,germany1 is #ce per inhabitant4 ,her total internal trade is only #ej per inhabitant1 whereas even in ,greece the internal trade is #fe per inhabitant1 while in ,germany it is #acj per inhabitant1 and in the ,united ,states #bae per inhabitant4 ,the reason of all this is the lack of energy and industry in the people4 ,their earnings per inhabitant average only #ab cents a day4 ,another reason is the lack of modern labour-saving devices4 ,comparing inhabitant with inhabitant1 ,russia has only one sixth of the steam power which ,germany has4 ,one half of all the manufactures of the country are produced domestically--that is1 without motive power or machinery4 ,no industry in ,russia is fully up to the needs of the people when judged by the standards of other countries4 ,for example1 notwithstanding the severity of the climate1 only two pounds of raw wool per inhabitant are consumed in ,russia's woollen manufactures1 as against seven pounds consumed in ,germany1 and the total annual value of all manufactures is only #bj per inhabitant1 as against #ef in ,germany1 and #hh in ,britain4 ,notwithstanding these unfavourable comparisons1 the factory industries of ,russia are making progress4 ,in seventy years the textile factories have increased fivefold and in thirty years twofold4 ,in sixty years the cotton-manufacturing industry has increased sevenfold1 and in fifteen years twofold4 ,until recently ,russia exported wool4 ,now she imports more wool than she exports4 ,ninety years ago in ,russia iron was dearer than bread1 and the peasants used wooden plough-shares and left their horses unshod4 ,now the consumption of hardware1 though still per inhabitant the smallest in ,europe1 is yet in the aggregate the fourth in ,europe1 although even so it is only two ninths what it is in ,britain4 ,beet-root sugar-making is also a new industry1 and #ejj1jjj tons are made annually1 the number of sugar works being #bce4 ,the beet-root crop of the country amounts to nearly #f1jjj1jjj tons annually4 ,but the consumption of sugar per inhabitant is only seven pounds annually1 as against eighteen pounds per inhabitant in ,germany4 ,a universal industry throughout ,russia is ,,tanning1 and ,russia leather1 with its fragrant birch-oil odour1 is a highly prized commodity the world over4 ,but the amount manufactured is only #aad1jjj tons yearly1 and the quantity exported is inconsiderable4 ,,russia',s ,,railways ,,and ,,navigable ,,rivers ,the most characteristic physical feature of ,european ,russia is its flatness4 ,in consequence its rivers are almost all navigable1 and1 as the most important of them are interconnected by canals1 the facilities for transportation which they afford are very considerable4 ,altogether the length of inland navigation thus afforded amounts to nearly #dg1jjj miles4 ,this abundance of navigation facilities has retarded the growth of railways1 but there are already #be1gef miles of finished railway in ,european ,russia alone4 ,the total length of railway in all ,russia built and in building is #cd1hdi miles4 ,the most important railway enterprise in the empire is the ,trans-,siberian ,railway1 which will afford through communication from the ,baltic to the ,pacific4 ,the shortest possible distance between these two bodies of water is #dejj miles4 ,the length of the railway will be #diej miles1 and its cost1 it is supposed1 will be #abj1jjj1jjj4 ,it is to be completed by #aije4 ,,russia',s ,,cities ,,and ,,towns ,illustration3 ,moscow4 ,,st4 ,,petersburg 7with suburbs #a1bfg1jjj71 the capital of ,russia1 is1 like most ,european capitals1 an important trade centre as well as the seat of government4 ,its manufactures are general and numerous1 but the chief ones are those concerned in making munitions of war4 ,until #ahhe ,st4 ,petersburg was not a seaport1 but in that year a canal was built which now permits vessels drawing twenty-two feet of water to enter its docks4 ,its harbour1 however1 is closed with ice from ,november to ,may4 ,near ,st4 ,petersburg is ,,reval1 the chief cotton port of ,russia4 ,the raw cotton importation of ,russia averages about #fj1jjj1jjj annually1 most of which comes direct from the ,united ,states4 ,,moscow 7#ihh1jjj71 the ancient capital of ,russia1 is also a great manufacturing city1 but its principal importance is derived from the fact that it is the great centre of the internal trade of ,russia4 ,,warsaw 7#fae1jjj71 the capital of ,polish ,russia1 is a great railway centre1 and the principal entrept of railway traffic between ,russia and the rest of ,europe4 ,l,,dz 7#cae1jjj71 also in ,polish ,russia1 is the great cotton-manufacturing centre of the empire4 ,,odessa 7#dje1jjj7 is the chief seaport of ,russia4 ,it has an immense export trade in grain1 tallow1 iron1 linseed1 wood1 hides1 cordage1 sailcloth1 tar1 and beef4 ,,riga 7#bhc1jjj71 the chief port of ,russia on the ,baltic1 has a large export trade with ,england in characteristic ,russian produce4 ,,kieff 7#bdi1jjj7 is the centre of the ,russian sugar-refining industry4 ,,astrakhan 7#aac1jjj71 on the ,volga delta1 is noted for its sturgeon fisheries1 and its export of caviare1 amounting1 it is said1 to #a1ejj1jjj yearly4 ,,tula 7#aaa1jjj7 is the ,sheffield of ,russia4 ,even in #ahbh there were #fjj cutlery establishments in ,tula1 but the manufacture was then principally domestic4 ,it is now a city of factories1 for it stands on a large coal and iron field4 ,,nijni-,,novgorod 7#ii1jjj7 is noted for its fair1 an ,asiatic institution which modern civilisation will no doubt soon disestablish4 ,once a year merchants to the number of #bjj1jjj come to ,nijni-,novgorod from all over ,russia1 and even from ,india and ,china1 to exchange their wares4 ,the value of the exchange sometimes amounts to #ajj1jjj1jjj4 ,,orenburg 7#gc1jjj71 on the ,ural1 is the terminal depot of the caravan trade of ,asiatic ,russia4 ,,archangel 7#be1jjj71 on the ,white ,sea1 is the chief emporium of trade in the north1 with exports of characteristic northern produce4 ,,baku1 on the ,caspian ,sea1 is the chief seat of the petroleum industry of ,russia4 ,all the towns and cities above named have grown enormously during the last twenty years4 ,,vi4 ,,the ,,trade ,,features ,,of ,,india ,,india',s ,,past ,,and ,,present ,,compared ,to the student of civilisation ,india is one of the most interesting countries in the world4 ,it has always been one of the most fertile and populous regions of the globe4 ,for centuries it was thought to be one of the richest4 ,in consequence it has1 time and time again1 been the scene of invasion1 conquest1 and spoliation4 ,but its riches never consisted so much in natural treasure as in the savings of an industrious and frugal people4 ,since the year #afjj ,european nations have had much to do with ,india1 especially ,england1 ,france1 ,portugal1 and ,holland4 ,during the last #adj years1 however1 ,england has been the dominant power there4 ,whatever may be said as to the motive of ,england's interference in ,india's affairs in the first place1 it can only be said that the present influence of ,england in ,india is immensely beneficial to the country4 ,india's prosperity on the whole is now comparable with that of any civilised nation on the globe4 ,and a people that once1 because of repeated conquest and spoliation1 had lost all sense of honour and self-respect1 are now1 under the benign influence of peace1 law1 order1 and security1 rapidly becoming honourable1 self-reliant1 and enterprising1 and ambitious to possess all the rights and privileges of modern civilisation4 ,,india',s ,,size ,,and ,,population ,india is a much larger and more populous country than most people think it to be4 ,in shape it is somewhat like a huge kite1 each of whose diameters is over #bjjj miles long1 or more than the distance across the ,atlantic from ,ireland to ,newfoundland4 ,its ,,territory is about #a1gjj1jjj square miles4 ,of this area1 over #a1jjj1jjj square miles1 a territory considerably greater than the territory of all the states of ,europe 7including the ,british ,isles7 except ,russia1 is directly under ,british control4 ,the remainder is indirectly under ,british control4 ,the ,,population is #cjh1jjj1jjj1 of which #bcf1jjj1jjj are directly under ,british control and #gb1jjj1jjj indirectly so4 ,this population is made up of people who speak seventy-eight different languages1 of which twenty languages are spoken by not less than #a1jjj1jjj persons each4 ,,india',s ,,great ,,fertility ,india owes much of its fertility to the fact that its soil is constantly being replenished by alluvium brought down from its high mountains by its immense rivers4 ,the valleys of the ,indus 7#ahjj miles long71 the ,ganges 7#afjj miles long71 and the ,brahmapootra 7#aejj miles long7 include an area of #a1abe1jjj square miles1 a part of which1 the ,indus-,ganges plain1 consists of a great stretch of alluvial soil whose fertility is as rich as that of any portion of the globe4 ,one hundred and eighty millions of people live in this plain4 ,so finely pulverised is its soil that for a distance of almost #bjjj miles not even a pebble can be found in it4 ,and so fertile is it that there are some agricultural districts in the plain where the population exceeds #ijj to the square mile4 ,in that part of the plain which the ,ganges waters1 #fj1jjj1jjj of people find support on the soil by agriculture1 at a density of over #gjj persons to the square mile1 which is #adj persons more to the square mile than the density of ,belgium1 the most thickly populated country in ,europe4 ,,india',s ,,irrigation ,,canals ,,and ,,river ,,embankments ,but1 fertile as is the soil of ,india1 and propitious to agricultural industry as is its climate generally1 its climate is not always favourable4 ,it suffers periodically from excess of drought4 ,as a consequence artificial irrigation has to be resorted to1 or much of this fertile country would oftentimes be a desert4 ,in ,british ,india alone #bh1jjj miles of irrigation canals are under the control of the government1 #ad1jjj of which have been constructed by the present 7,british7 government--works of vast dimensions and the highest engineering skill4 ,altogether #bh1jjj1jjj acres in ,british ,india are dependent for their necessary supply of moisture upon general irrigation1 and #h1jjj1jjj upon irrigation canals4 ,were it not for these irrigation canals1 #b1jjj1jjj acres in ,scinde 7northwestern ,india7 would be a perpetual desert1 for ,scinde is almost wholly rainless4 ,on the other hand1 in a great part of ,india the rainfall is excessive4 ,some districts indeed are the wettest on the globe4 ,in ,assam1 for example 7which is also one of the hottest places in ,india71 the rainfall is #fjj inches yearly1 and it has been #fej4 ,as a consequence rivers in ,india often overflow their banks4 ,therefore to protect the country on the lower river reaches from floods the ,british government has built over #aejj miles of embankments4 ,,india',s ,,mineral ,,resources ,at one time ,india was famed for its wealth in precious minerals and precious stones4 ,poets often celebrated its golden resources4 ,but its wealth in this respect was always fabulous rather than real4 ,india is in reality poor in minerals4 ,it has a good deal of iron--iron of the choicest quality4 ,it has also a good deal of coal1 but its coal is poor1 owing to its superabundance of ash4 ,it has also a little copper and tin4 ,it has gold-mines that are worked4 ,diamonds1 too1 are found in southern ,india1 and numerously so4 ,the celebrated ,koh-i-nur 7#bhj carats7 was an ,indian product4 ,but neither diamond-hunting nor gold-mining is any longer a profitable industry in ,india4 ,the principal mineral industry of ,india is salt-mining1 pursued in the ,punjaub1 where there are solid cliffs of pure salt4 ,owing to the fact that the people of ,india are mostly vegetarians 7#bej1jjj1jjj of ,hindoos would rather die than eat flesh71 salt is a necessary article of diet and a universal commodity4 ,its production1 therefore1 is controlled by the government as a means of raising revenue4 ,,india',s ,,wonderful ,,agricultural ,,resources ,illustration3 ,comparative sizes of ,india and the ,united ,states4 ,the real wealth of ,india lies in the luxuriance and economic value of its ,,vegetation4 ,as a consequence the principal industry is ,,agriculture4 ,only one tenth of the people live in towns4 ,two thirds of the adult males in the country are engaged wholly in tilling the soil4 ,every sort of agricultural product known to commerce is raised in ,india2 for from the high levels on the mountain sides to the low levels on the coasts the vegetation of the whole world is produced within its borders4 ,even in ,,wheat ,india competes in the world's markets with countries like ,russia and ,argentina4 ,in #ahif ,british ,india had #ai1jjj1jjj acres of wheat under cultivation1 and 7though a dearth year7 an exportation of #d1jjj1jjj4 ,in #ahib the exportation was #be1jjj1jjj4 ,the district known as the ,central ,provinces of ,india has become one of the most important wheat areas in the world4 ,but the principal agricultural product of ,india is ,,rice4 ,british ,india alone has #gj1jjj1jjj acres of rice under cultivation1 and an annual exportation of #fj1jjj1jjj4 ,in all the coast regions rice is grown universally1 and also in the lower parts of the river plains1 especially in the ,ganges valley4 ,it is the staple food of the people everywhere except on the higher levels4 ,on the higher levels millet and maize 7corn7 are the staple foods4 ,the next important agricultural product of ,india is ,,cotton1 of which #dg1jjj1jjj worth in the raw state is exported annually1 besides what is used at home4 ,the ,american civil war was the great cause of the starting of the cotton-growing industry in ,india4 ,the next important agricultural product is ,,jute1 of which the export in the raw state is about #ce1jjj1jjj4 ,no country in the world can compete with ,india in the production of this fibre1 for jute is very exhaustive of the soil1 and in the ,ganges valley1 where it is principally raised1 the soil is annually replenished by alluvium4 ,a fifth great agricultural product is ,,tea1 in which ,india now leads the world4 ,england uses twice as much ,india tea as ,china tea1 the reason being that ,india teas are produced with all the economic care of a high-class ,english or ,american manufactured product4 ,the value of the tea export of ,india is about #bg1jjj1jjj4 ,other chief agricultural products are ,,opium 7which is a government monopoly71 oil seeds1 hides1 and skins1 ,,indigo 7in which ,india excels the world1 the value of the export being #ad1jjj1jjj71 ,,coffee 7the best grown anywhere--except perhaps that of ,arabia and ,java--though the bean is sometimes injured in transit71 raw wool1 lac 7for dyeing71 cinchona or ,peruvian bark 7which since it has been raised in ,india1 has greatly reduced the price of quinine71 raw silk1 raw sugar1 tobacco1 and spices4 ,spices are produced abundantly in ,india1 but their quality is not equal to ,east ,indian spices4 ,also the cotton1 rice1 sugar1 and tobacco of ,india1 though produced plentifully1 are inferior in quality to those of the ,united ,states4 ,nor are the wheat and corn of ,india so good as the wheat and corn of the ,united ,states and ,canada4 ,improved cultivation will1 however1 in time improve the quality of all these products4 ,of exports of natural products not agricultural the principal are ,,wood 7chiefly ,,teak1 the most valuable timber known for ship-building1 and sal1 a most valuable wood for carpentry7 and saltpetre4 ,,india',s ,,growing ,,manufactures ,though ,india is now chiefly an agricultural country her people from time immemorial have been adepts in manufacturing4 ,the domestic textile manufactures and the domestic metal manufactures of ,india were for ages among the most beautiful and ingenious in the world4 ,these ,,domestic ,,manufactures are principally pursued in small villages1 of which there are over half a million in ,india4 ,but under the influences of modern civilisation introduced by ,british rule1 the domestic industries of the country are now giving way to ,,factory ,,industries4 ,these have already become well established1 and are rapidly increasing in number and importance4 ,the stability of ,india as a nation is now so well assured that capital can be had there as cheaply as in ,england or the ,united ,states4 ,besides1 co-operative or joint-stock enterprises are becoming common4 ,the ,indian people1 with their natural aptitude for weaving1 make the best of textile operatives1 and ,india bids fair soon to become a formidable rival of ,western nations in ,,textile ,,manufactures4 ,in twenty years the cotton spindles have increased sixfold4 ,in ten years the ,,cotton ,,output has increased twofold4 ,bombay has become one of the greatest cotton centres in the world1 a sort of ,liverpool and ,manchester combined4 ,it has practically shut the doors of ,india to ,english manufactured cottons of the cheaper grades4 ,bombay manufactured cotton is even sent to ,england in immense quantities1 but the principal export is to ,china4 ,the total export of ,indian manufactured cotton is #bc1jjj1jjj4 ,another important modern manufacture is that of ,,jute4 ,the jute factories of ,bengal are now competing with those of ,scotland1 and the total export is #ag1ejj1jjj4 ,a similar development is expected in iron manufactures1 for already iron-smelting has begun4 ,but1 notwithstanding these developments1 ,india still remains a tremendous market for the manufactured goods of ,england1 especially in cottons and hardware and machinery4 ,the value of the annual cotton importation from ,england is #ajj1jjj1jjj1 equal to the total of ,england's exportation of goods of every sort to the ,united ,states4 ,the value of the annual hardware and machinery importation from ,england is #ce1jjj1jjj4 ,,india',s ,,external ,,and ,,internal ,,trade ,the total yearly value of the ,,exports of ,india amounts to the enormous sum of #cej1jjj1jjj1 more than a third of the total exportation of the ,united ,states for the banner year #ahig4b ,of this ,england receives about one half4 ,the total yearly value of the ,,imports of ,india 7exclusive of bullion7 amounts to #bee1jjj1jjj1 which is considerably more than a third of the total importation of the ,united ,states4 ,of this ,england sends out about two thirds4 7,india is therefore ,england's best customer1 although from the ,united ,states ,england purchases vastly more47 ,of the internal trade of ,india no statistics are available1 but with the rapid advances in modern conveniences for doing business which the country is adopting1 the internal trade is also enormously increasing4 ,already #bj1bij miles of railway are built and opened1 and #ac1jjj miles of canals and canalised river navigation4 ,railways are rapidly being constructed in every part of the country4 ,over #ca1jjj miles of metalled roads for highways and #ajf1jjj of unmetalled roads are now maintained by the government as public works4 ,there are #ch1jjj miles of telegraph routes4 ,the government highways and canals as well as the railways are all splendidly engineered and solidly built works4 ,the greatness of ,india is only just beginning4 ,,footnote3 #b ,the total exports of the ,united ,states for the years #ahih and #ahii have exceeded #a1bjj1jjj1jjj1 each year4 ,in the year #ahig they were about #a1jej1jjj1jjj4 ,,india',s ,,cities ,,and ,,towns ,,calcutta 7#hfb1jjj7 is the capital of the empire of ,india and the second city in the ,british ,empire4 ,although situated on an arm of the delta of the ,ganges1 eighty miles inland1 ,calcutta is an immense seaport1 but its sea-going privileges can be maintained only by great engineering works1 because of the silt which the ,ganges is constantly bringing down and depositing in its seaward channels4 ,calcutta enjoys almost a monopoly of the whole trade of the ,ganges and ,brahmapootra valleys1 and until the building of the ,suez ,canal it had almost a monopoly of the outward trade of the whole ,hindustan peninsula4 ,its total trade is even yet very large1 aggregating for outward and inward business together about #gjj1jjj1jjj per annum1 a sum which can be appreciated from the fact that it is about equal to the total import trade of the whole of the ,united ,states4 ,,bombay 7#hbb1jjj71 the second city of the ,indian ,empire1 owes its eminence to three things3 7#a7 the opening of the ,suez ,canal1 which has made it the port of ,india nearest ,england2 7#b7 the starting of the cotton-growing industry in ,india1 owing to the ,american civil war 7the cotton-growing district of ,india is adjacent to ,bombay72 and 7#c7 the development of the railway system of ,india1 which is making ,bombay rather than ,calcutta the natural ocean outlet for the trade of the country4 ,,madras 7#dec1jjj71 the third city of ,india1 is also the third seaport4 ,but it has no natural harbour1 and its shore is surf-beaten and for months together exposed to the full fury of the northeast monsoons4 ,an artificial harbour1 however1 has recently been built4 ,besides the cities above mentioned there is one 7,,hyderabad7 with a population of over #djj1jjj2 there are two 7,,lucknow and ,,benares7 with a population of over #aej1jjj each1 and eleven more with a population of over #ajj1jjj each4 ,there are besides forty-seven towns with a population more than #ej1jjj each1 and over a thousand towns with a population of about #aj1jjj each4 ,,vii4 ,,the ,,trade ,,features ,,of ,,china ,,the ,,vastness ,,of ,,china',s ,,area ,,and ,,population ,china1 to the student of commerce1 is the most interesting country on the globe4 ,the reason for this is that its area is so large1 its population so vast1 and its chances for development so magnificent4 ,the total area of the empire1 according to late estimates1 is #d1bah1dja square miles4 ,other estimates make it #d1dfh1dgj square miles4 ,the greatness of this area may be understood from a few comparisons4 ,it is about one twelfth of the total land surface of the globe4 ,it is two and one fourth times the size of ,european ,russia4 ,it is almost one and one half times the total area of the ,united ,states1 exclusive of ,alaska4 ,but all of this territory is not of equal commercial interest4 ,the ,chinese ,empire consists of six parts3 ,china ,proper1 ,manchuria1 ,mongolia1 ,tibet1 ,jungaria1 and ,eastern ,turkestan4 ,because of recent treaties1 which give to ,russia the right to build and control railways in ,manchuria--ostensibly for the purpose of securing for the great ,russian ,trans-,siberian ,railway a shorter route to ,vladivostok1 its ,pacific terminus--,,manchuria becomes practically a ,,russian ,,possession4 ,turkestan1 ,jungaria1 ,tibet1 and ,mongolia are thinly inhabited countries1 scarcely semi-civilised4 ,but the part which remains when these dependencies are left out of consideration--,,china ,,proper--is at once one of the largest1 most thickly populated1 and most fertile countries on the face of the globe1 and one also of the most richly endowed in mineral products4 ,its area is #a1ccf1hda square miles4 ,its population is #chf1jjj1jjj4 ,its population per square mile is not far short of #cjj4 ,that is to say1 its area is more than eleven times that of ,great ,britain and ,ireland1 and almost one half that of the ,united ,states1 exclusive of ,alaska2 its population is ten times that of ,great ,britain and ,ireland1 and more than six times that of the ,united ,states2 while its population per square mile is greater than that of any ,european or ,american country except ,great ,britain 7which1 however1 it nearly equals71 ,holland1 and ,belgium4 ,in fact1 more than one fourth of the total population of the globe is concentrated within the boundaries of ,china ,proper4 ,,china ,a ,,country ,,of ,,great ,,trade ,,possibilities ,the great commercial nations of the world are now all trying to get shares of the trade of this ,,vast ,,and ,,populous ,,country4 ,for not only is ,china 7,proper7 large and populous1 but it is also wealthy1 for its inhabitants are both industrious and frugal1 and1 besides1 as compared with the people of ,european countries they have been greatly spared the disastrous commerce-destroying effects of war1 both foreign and internecine4 ,centuries ago the ,chinese had made great progress toward civilisation4 ,their skill in the manufacturing arts1 and in agriculture and horticulture1 was for ages superior to that of ,western nations4 ,but1 unfortunately for their advancement1 they are conservative1 self-conceited1 and averse to improvement1 especially if they have to learn improvement of others4 ,as yet they have almost wholly ignored the ideas and methods of modern ,western civilisation4 ,they have scarcely any railways1 but few steamships1 almost no steam-power manufactories1 and no telephones4 ,the only modern improvement which they have made much use of is the telegraph4 ,some years ago 7in #ahgf7 a ,european company secured the privilege of building a short railway from ,shanghai1 but it was scarcely built before the government got fearful of its influence and bought it up and stopped its running4 ,but the ,chinese people are not averse to foreign trade2 on the contrary1 they are rather fond of it4 ,if only the thing could happen in ,china that happened in ,japan--that is to say1 if only the government could fall into the hands of rulers who were open-minded to improvement and inclined to be progressive--the rush that ,china would make toward civilisation and the adoption of modern trade methods and modern processes of manufacture would be startling4 ,,china',s ,,foreign ,,trade ,at present the foreign trade of ,china is largely in the hands of the ,english4 ,in the year #ahif the foreign export trade of ,china amounted to #afg1jjj1jjj4 ,of this amount #acb1ejj1jjj was with ,great ,britain and her dependencies2 #aj1jjj1jjj with the ,united ,states2 something over #h1jjj1jjj with the continent of ,europe exclusive of ,russia1 and less than #b1jjj1jjj with ,russia4 ,in the same year the foreign import trade of ,china was #ajb1ejj1jjj1 of which #ef1jjj1jjj was with ,great ,britain and her dependencies2 a little over #i1jjj1jjj with the ,united ,states2 #ae1jjj1jjj with the continent of ,europe exclusive of ,russia1 and #ab1ejj1jjj with ,russia4 7,the rest of her trade was principally with ,japan47 ,the policy of the government of ,china has always been to prevent or restrict foreign trade2 and even to-day foreign trade can be carried on in only twenty-six ,chinese ports--the so-called ,,treaty ,,ports4 ,the policy of ,great ,britain has been to secure by treaty as large a privilege of trading with ,china as possible2 then to throw open the privilege to the world1 but to follow it up with such commercial activity on her own part as would secure to her the lion's share of the resulting trade4 ,of the twenty-six ports now by treaty open to the world for trade1 twenty-three have been secured by ,great ,britain and three by ,japan4 ,,china',s ,,exports1 ,,imports1 ,,and ,,resources ,china's principal exports are ,,tea and ,,silk1 tea constituting about one third and silk 7principally raw silk7 fully one half of her total export trade4 ,other principal exports are sugar1 ,,straw ,,braid 7one twentieth of her total exportation71 hides1 paper1 chinaware1 and pottery4 ,her principal imports are ,,opium and ,,cotton ,,goods1 opium constituting a fifth1 and cotton goods considerably more than a half1 of her total import trade4 ,other principal imports are woollen goods1 metal goods and machinery1 coal1 and kerosene oil4 ,a considerable importation is also made of raw cotton4 ,but if ,china only had the blessing of an enlightened and progressive government this disposition of exports and imports would not long continue4 ,china's resources of ,,coal are among the finest and certainly among the largest in the whole world4 ,her coal-fields1 indeed1 are estimated to be twenty times as great as those of all ,europe combined4 ,much of this coal1 too1 is of the purest quality1 and much of it very accessible to the miner4 ,and near her coal-fields are vast deposits of some of the richest ,,iron ,,ores in the world4 ,again1 a great portion of the soil of ,china is extremely fertile4 ,there are indeed two regions1 one of ,,red ,,soil and another1 much vaster1 of ,,yellow ,,soil1 that are among the most fertile in the world4 ,it is because of the extent and fertility of the yellow soil of ,china that yellow is the imperial colour1 and the emperor called the yellow lord4 ,the climate1 too1 of ,china permits almost the whole range of useful vegetable products to be raised4 ,the growth of ,,cotton is already very great1 because for seven centuries cotton has been the staple cloth for the clothing of the people4 ,and already it is being manufactured by modern machinery4 ,but both the growth of cotton and its manufacture by modern methods would be enormously increased if only facilities for internal transportation existed1 and freedom from unjust taxation could be secured4 ,if1 in short1 ,china only had railways and a good and enlightened system of government her progress and prosperity would soon make the ,western world envious4 ,but her government is not only stupidly unprogressive1 it is also disastrously wasteful4 ,about seventy per cent4 of the whole revenue of the country is lost to the public use through the malfeasance of officials4 ,and only about #he miles of railway have as yet been opened1 although it must be said that #bjj or #bej miles more are under construction4 ,,possibilities ,,of ,,increased ,,foreign ,,trade ,,with ,,china ,there are1 however1 even now several ways in which foreign trade with ,china may be increased4 ,two of these are the supplying her people with ,,woollen ,,goods1 and the supplying them with ,,wheat and ,,flour4 ,the winters of a great part of ,china are so cool that warm garments are necessary4 ,at present these are made principally of padded cotton4 ,owing to the density of the population pasturage is scarce1 and sheep are almost unknown4 ,for an indefinite time1 therefore1 there will be a demand for woollen goods in ,china1 a demand that will constantly increase as the superior convenience of woollen garments over garments of padded cotton becomes more and more known to the people4 ,and though rice is now the staple food of the people even of all classes1 the wealthy classes are fond of wheat bread and obtain it when possible4 ,but the agriculture of the country does not permit of the profitable growth of wheat and flour1 and wheat if used must be imported4 ,,the ,,principal ,,trading ,,cities ,,of ,,china ,the cities of ,china are large and numerous4 ,,peking 7#a1ejj1jjj871 the capital1 is not open to foreign trade4 ,in fact1 it has no trade of any sort1 and derives its whole importance from being the seat of government4 ,but ,,tientsin 7#gej1jjj71 the port of ,peking1 and an important treaty port1 has a large trade1 both foreign and local4 ,tientsin and ,peking are connected by rail1 and since the ,russian government has obtained the right of connecting ,peking with the ,trans-,siberian ,railway1 it is more than likely that in time ,tientsin will become a terminus of that railway4 ,of treaty ports other than ,tientsin the principal are ,shanghai1 ,hankow1 ,foochow1 ,hangchow1 ,amoy1 and ,canton4 ,,shanghai 7#dje1jjj7 exceeds all other ports of ,china put together in the amount of its foreign trade4 ,its foreign trade is1 indeed1 almost three fifths of that of the whole empire4 ,and of the total number of foreigners residing in ,china 7in #ahif said to be #aj1hee1 of whom #dcfb were ,british subjects and #adci ,americans7 about one half reside in ,shanghai4 ,shanghai is1 indeed1 the ,new ,york of ,china1 and if railways were only built from it 7as has been proposed7 to the capital1 ,peking1 and up the ,yang-tse-kiang to ,hankow1 and by way of the coast cities to ,canton1 ,china would begin a new era in her career4 ,,hankow 7#hjj1jjj71 on the ,yang-tse-kiang1 about #gjj miles from its mouth1 is the chief emporium of the tea-producing area of ,china4 ,ocean-going steamships ascend the river to ,hankow for their cargoes4 ,,foochow 7#fej1ijj7 also has a great tea export trade4 ,,hangchow 7#gjj1jjj71 one of the most beautiful cities in ,china1 is also the chief city for the manufacture of silks1 and of gold and silver ware1 lacquered ware1 and fans4 ,,amoy 7#ajj1jjj7 has the best harbour in ,china and an immense import trade1 ranking in that respect next after ,shanghai4 ,,canton 7#b1jjj1jjj87 is the largest city in the ,chinese ,empire4 ,a considerable portion of its inhabitants live in boats4 ,of these house-boats there are said to be #dj1jjj4 ,the foreign trade of ,canton is next to that of ,shanghai4 ,once it was superior1 now it is much inferior4 ,its manufactures1 however1 are still important and include silk1 cotton1 glass1 porcelain1 paper1 sugar1 lacquered ware1 and ivory goods and metal goods4 ,,nanking 7#aej1jjj71 once the capital of ,china and once the largest city in the world1 is now comparatively a small city4 ,although a treaty port1 its commerce is not important4 ,it was once famous for its beautiful tower of porcelain1 #bjj feet high1 but that is now destroyed4 ,there are many other large cities in ,china4 ,illustration3 ,china and its chief trade centres4 ,,hongkong ,,hongkong 7#bde1jjj7 is a small island belonging to ,great ,britain situated in the mouth of the ,canton ,river1 seventy-five miles from the city of ,canton4 ,its population is made up principally of ,chinese1 who have been attracted there by its trade privileges4 ,the ,british population is only #ac1jjj1 even including the garrison of #bhjj4 ,almost the whole population reside in the capital1 ,,victoria1 for the island itself is a barren rock4 ,forty-four per cent4 of the total foreign trade of ,china passes through ,hongkong4 ,its harbour is one of the finest in the world4 ,it has magnificent docks4 ,its port is entirely free1 and there is even no custom-house4 ,it is calculated that the foreign trade transacted by its merchants amounts to #ajj1jjj1jjj a year1 exclusive of what passes through its port without breaking bulk4 ,the whole of the vast export trade of ,china in silk and tea is largely handled by ,hongkong firms4 ,other commodities of which ,hongkong is the chief trade centre for ,china are opium1 flour1 salt1 earthenware1 oil1 cotton1 and cotton goods and woollen goods1 which it imports from other countries and exports to ,china2 and sugar1 rice1 amber1 sandal-wood1 ivory1 and betel1 which it imports from ,china and exports to other countries4 ,its trade is not confined to ,great ,britain1 but includes ,france1 ,germany1 the ,united ,states1 and all other trading nations4 ,but of course ,great ,britain has the greatest share4 ,,viii4 ,,the ,,trade ,,features ,,of ,,japan ,,japan ,,the ,,great ,,britain ,,of ,,asia ,japan consists of a group of islands situated to the east of the continent of ,asia1 somewhat as the ,british ,isles are situated to the west of the continent of ,europe4 ,but the ,japan islands are of volcanic origin and are very numerous4 ,there are said to be #dbbc of them4 ,however1 there are only four that are of important size1 and it is these that are usually thought of when ,japan is spoken of4 ,the area of these four islands is #adg1fee miles1 which is almost a fourth more than that of ,great ,britain and ,ireland4 ,the population 7census of #ahie7 is #db1bgj1fbj1 which is #d1jjj1jjj more than that of ,great ,britain and ,ireland4 ,the population per square mile is #bhf1 which1 though large1 is not quite so large as that of ,great ,britain4 ,if1 however1 we do not take into consideration the northern island 7,yezo71 which is still partly inhabited by uncivilised aborigines1 the population per square mile is #cge1 which is considerably in excess of that of both ,china and ,great ,britain and ,ireland1 though still considerably less than that of ,england alone4 ,the above statistics do not include the island of ,formosa 7area #ac1ejj miles1 population almost #b1jjj1jjj71 which was transferred from ,china to ,japan in #ahie1 at the close of the late ,chino-,japanese war4 ,,japan',s ,,wonderful ,,transformation ,the significant thing about ,japan is the rapidity with which it has become transformed from a semi-civilised nation into one of the great nations of the modern world4 ,until the year #ahfh ,japan was an unprogressive1 unenlightened country of the usual ,asiatic type1 scarcely differing in any way from an inland province of ,china of to-day4 ,in that year a revolution took place which put the whole power of the empire into the hands of the present ,mikado1 or ,emperor4 ,immediately ,japan began to assimilate ,western ideas of civilisation and to adopt ,western methods of trade1 commerce1 manufacture1 government1 and education4 ,until #ahhi the government remained an absolute monarchy4 ,in that year the ,mikado voluntarily promulgated a constitution by which a legislative ,parliament1 or ,imperial ,diet1 and an executive ,cabinet of ,state ,ministers were instituted1 so that the government of ,japan is now as constitutional as that of ,germany or ,great ,britain4 ,the government is in other ways thoroughly modern4 ,education1 for example1 is almost as well looked after as in ,germany or ,new ,england4 ,there are #bbj kindergartens established1 #ig technical schools1 and #di normal schools for the training of teachers 7one being for the training of high-school teachers71 besides elementary schools1 middle schools1 high schools1 special schools 7#abfc of these71 and universities4 ,the ,university of ,tokio is an imperial institution1 supported entirely by the government1 with colleges in law1 science1 medicine1 literature1 engineering1 and agriculture4 ,education1 between the ages of six and fourteen1 is compulsory4 ,the army1 too1 is wholly a modern affair4 ,it consists of #bhe1jjj men1 and an idea of its modernness may be gathered from the fact that an important part of its organisation is its training schools and colleges4 ,even the non-commissioned officers are specially trained and educated4 ,altogether the students in the military schools and colleges of ,japan number #bdjj4 ,the navy1 too1 as is well known1 is both modern and efficient4 ,it consists of #e battleships and #ae high-class cruisers1 besides #df other vessels1--torpedo craft1 gunboats1 convoy ships1 etc41--and it is intended to build an immense fleet of #ai battleships and cruisers1 and #ajj torpedo craft in addition4 ,,japan',s ,,agriculture ,japan being of volcanic origin1 much of its soil is unfit for cultivation4 ,the total productive area amounts to less than thirty per cent41 and even of this only a small portion is capable of being tilled by modern methods4 ,at present only twelve per cent4 of the whole surface of the country is devoted to agriculture1 even including pasturing4 ,there is1 however1 but little pasturing1 and the principal implement of cultivation is the spade4 ,the modern plough is unknown4 ,but manure 7principally domestic manure and fish refuse7 is very generously used1 and by this means the returns are abundant4 ,the principal food crop is ,,rice4 ,other food crops are wheat1 barley1 and the soya bean1 but these not numerously so4 ,the principal cultivated products for purposes of commerce are the mulberry tree 7for supporting the silkworm71 the tea plant1 the lacquer tree1 and the camphor tree4 ,rice also is grown for export as well as for home consumption1 and ,,cotton is very largely grown for home manufacture4 ,no milk1 butter1 or cheese is produced1 scarcely any meat1 no wood1 and scarcely any leather4 7,for boots and shoes paper is used instead of leather47 ,of cattle there are only #a1jjj1jjj1 as compared with #aj1jjj1jjj in the ,british ,isles1 although the population of ,japan is considerably the greater4 ,of horses there are #a1ejj1jjj1 and the raising of horses is much encouraged by the government1 but principally for military purposes4 ,horses1 indeed1 are but little employed4 ,in cities1 for purposes of carriage and cartage1 men are used instead of horses4 ,even in rural districts horses are unknown for farming purposes1 and not even the hand-cart or wheelbarrow is used4 ,everything is carried4 ,fruit is much raised1--oranges1 apples1 walnuts1 plums1 peaches1 and grapes1--but ,japanese fruits are of very inferior quality4 ,,flowers are raised everywhere in great variety and in great abundance1 and the chrysanthemum is the emblem of the country and is used on postage stamps4 ,,japan',s ,,manufactures3 ,,their ,,future ,,possibilities ,the future of ,japan depends upon its ,,manufactures1 but these also are not without their difficulties4 ,the mineral wealth of the country is very great1 principally in ,,coal and ,,iron4 ,on the northern island alone 7,yezo7 the coal deposits are two thirds those of all ,great ,britain4 ,unfortunately1 however1 owing to the mountainous character of the country1 railways in ,japan are difficult to construct1 and the transportation of coal or of ore is difficult and expensive4 ,as the coal deposits and iron deposits are not near together charcoal has been used for smelting purposes4 ,iron1 therefore1 so far1 has not been produced profitably1 and its production has decreased4 ,but silver is mined abundantly1 and also ,,kaolin1 or the raw material used in the manufacture of the beautiful porcelain of the country4 ,copper and antimony are also large articles of export4 ,the principal manufactures of ,japan as yet are the ,,textiles1 especially ,,silk and ,,cotton4 ,in these modern methods are used1 although so far the productions of the native domestic looms are superior to those of the factory looms4 ,the production of textiles by machinery has increased fourfold in ten years1 and now amounts to about #dj1jjj1jjj annually4 ,this1 however1 is not a large amount1 being less than the textile production of any important state in ,europe1 even ,switzerland1 or ,sweden and ,norway1 and is only one twentieth that of the ,united ,states4 ,until recently the factory owner in ,japan has had the advantage of cheap labour4 ,but the ,japanese artisan is also becoming modernised1 and is now demanding higher wages1 and enforcing his demand by strikes4 ,and for all their deftness in domestic manufacture ,japanese workmen are not yet as skilful in machine labour as ,british or ,american workmen4 ,it follows1 therefore1 that textile manufacturing in ,japan1 especially the manufacture of cotton and wool1 is not yet out of its tentative or probationary stage4 ,but ,japan1 having the advantage of an extensive home market for cotton goods 7like the ,chinese1 the ,japanese common people wear cotton garments all the year round1 in winter padding them for warmth71 and having the raw material at her own door 7she already grows a large proportion of all the raw cotton she needs71 and having1 too1 an abundance of coal at hand1 must needs become a great cotton-manufacturing country4 ,the same conditions hold with regard to the possibilities of ,japan's silk manufactures4 ,,possibilities ,,of ,,increased ,,foreign ,,trade ,,with ,,japan ,as in the case of ,china1 the possibilities of increased trade with ,japan lie principally in ,,woollen ,,manufactures and in ,,breadstuffs4 ,in addition there is a fair chance of increased trade in metal manufactures4 ,the use of woollen garments in ,japan in winter is extending even to the middle and working classes4 ,and inasmuch as the country does not raise sheep1 and is1 indeed1 not well able to raise sheep1 such woollen clothing1 woollen cloth1 or raw wool as is used must be imported4 ,hitherto the woollen manufactures which have been established in the country have not been very successful1 and the probability is that ,japan's import trade in woollen clothing and woollen cloths will increase year by year4 ,similarly1 from the fact that the agriculture of the country is not adapted to the growth of wheat1 nor seems ever likely to be so adapted1 and also from the fact that both the higher and the middle classes of ,japan are rapidly adopting ,european and ,american habits of living1 it is very probable that the importation of wheat and wheat flour into ,japan will also continue to increase year by year4 ,and from the difficulty there is of smelting iron cheaply it is probable that the importation of iron and iron goods 7which in raw iron1 iron and steel rails1 iron small wares and nails1 spinning and other machinery1 and steel ships1 already amounts to #h1jjj1jjj a year7 is likewise likely to increase greatly year by year also4 ,,japan',s ,,modern ,,trade ,,facilities ,owing to the irregular conformation of the surface of the country1 good roads in ,japan can scarcely be said to exist4 ,but #bj1jjj miles of roads have been built1 of which the state maintains about one fourth4 ,there are also #beje miles of railway1 of which the state owns and maintains about one fourth also4 ,there are #aa1gbj miles of telegraph routes1 with #cg1jjj miles of wire2 #ebj miles of telephone routes1 with #fcdg miles of wire2 and #chg miles of submarine cable routes1 with #adha miles of wire4 ,the country also has a merchant navy of #hbg steam vessels of modern type and #gjb sailing-vessels of modern type1 besides #ffh native craft4 ,owing to the irregular and rocky nature of the coast-line and the great number of small islands which exist1 numerous lighthouses are needed2 but ,japan's lighthouse system is one of the best in the world4 ,,japan',s ,,foreign ,,trade ,japan has a foreign trade of #fj1jjj1jjj annually in exports and #hf1jjj1jjj annually in imports4 ,of the export trade the principal part1 running from a fourth to a third1 is with the ,united ,states4 ,the next largest part is with ,france1 the next with ,hongkong1 the next with ,china1 and the next with ,great ,britain4 ,but ,great ,britain's direct share is not more than a twelfth4 ,of the import trade the principal part1 almost one third1 is with ,great ,britain4 ,the ,united ,states' share is about a twelfth1 and that of ,france about one twenty-fifth4 ,the principal exports are ,,raw ,,silk 7about one third of the whole71 ,,silk ,,goods 7about one tenth of the whole71 ,,tea1 coal1 copper1 rice1 and matches4 ,the export of matches amounts to #b1ejj1jjj annually4 ,characteristic exports1 though they do not figure largely in the total amount1 are floor rugs1 lacquered ware1 porcelain ware1 fans1 umbrellas1 bronze ware1 repouss work1 paper ware and papier-mch1 fibre carpets1 and camphor4 ,there is also a large export of fish1 shellfish1 cuttlefish1 edible seaweed1 and mushrooms to ,china and other ,asiatic countries4 ,the chief import is ,,raw ,,cotton 7almost one fifth of the whole74 ,other important imports are sugar 7although she raises almost #ajj1jjj1jjj pounds of sugar herself annually71 cotton yarn1 cotton goods1 woollen cloths1 flannels and blankets1 kerosene oil1 watches1 and articles of iron and steel as above enumerated4 ,the fishing industry is a very important one and over #b1ejj1jjj people are engaged in it4 ,the number of fishing-boats is about #djj1jjj4 ,the fish trade1 which includes seaweed1 is 7when not for home consumption7 principally with ,china4 ,illustration3 ,japan's relation to eastern ,asia4 ,,japan',s ,,special ,,trade ,,centres ,the foreign commerce of ,japan1 like that of ,china1 is allowed to be carried on only at certain ports1 called treaty ports1 of which there are nineteen1 the principal being ,yokohama1 ,osaka1 ,nagasaki1 ,hakodate1 ,niigata1 and ,kobe4 ,the two principal cities1 not treaty ports1 are ,tokio and ,kioto4 ,,tokio 7#a1cjj1jjj7 is the capital and chief centre of the political1 commercial1 and literary activity of the empire4 ,in many respects ,tokio is a modern city4 ,its educational features are excellent4 ,its sanitation also is good4 ,,kioto 7#cdj1jjj7 was formerly the capital1 but after the revolution of #ahfh it was superseded in this respect by ,tokio4 ,,yokohama 7#agj1jjj71 distant from ,tokio eighteen miles1 is the chief place of the empire for foreign trade4 ,its foreign trade1 indeed1 is more than half that of the whole empire1 being about #ge1jjj1jjj annually4 ,,osaka 7#dhg1jjj7 is in respect to population the second city of the empire1 but its foreign trade is not large and is carried on principally at ,,hiogo1 a port near it4 ,,niigata 7#ej1jjj7 is the only treaty port on the west side of ,japan1 the surf caused by the winter monsoon making the flat west coast of the country very dangerous for shipping for half the year4 ,other important ports are ,,kobe 7#afa1jjj7 and ,,nagasaki 7#gb1jjj74 ,,nagoya 7#bae1jjj7 is an important inland town4 ,,ix4 ,,the ,,trade ,,features ,,of ,,africa ,,africa ,,fifteen ,,years ,,ago ,within a period of about fifteen years the continent of ,africa has been the scene of a vast partition4 ,at the beginning of that period the amount of ,african territory that was subject to ,european control was comparatively small4 ,the ,british were firmly established in ,south ,africa1 and had possessions along the coasts elsewhere principally in the west4 ,the ,french were firmly established in ,algeria and in ,senegal4 ,the ,portuguese had their ancient settlements in ,mozambique and ,lower ,guinea4 ,morocco on the northwest and ,abyssinia in the northeast were more or less well-established governments that were independent4 ,egypt in the extreme northeast1 with tributary possessions extending along the ,nile into the far interior of the continent1 was also a more or less well-established government that possessed a quasi-independence1 though it was nominally dependent upon ,turkey4 ,but elsewhere1 except in a few other places controlled by ,european authority1 the whole continent may be described as having been in its original state of savagery or semi-savagery4 ,no government existed anywhere that was either beneficent or stable4 ,the slave-traffic abounded everywhere4 ,,european ,,spheres ,,of ,,influence ,,in ,,africa ,the ,european governments that had possessions in ,africa were all doing their best to suppress the slave-traffic4 ,but they could not take very salutary steps in this direction without exercising authority beyond the territorial limits they were supposed to occupy4 ,gradually1 for these reasons1 and also for the reason that they were all anxious to extend their commercial dealings in ,africa1 they began to exercise authority beyond their old-time territorial limits4 ,in this way began the establishment on the part of ,european nations of what are known as spheres of influence in ,africa4 ,at first ,england and ,france were the only nations that were at all active in establishing these spheres of influence4 ,later on ,germany and ,italy and other nations began to establish them also4 ,beginning1 therefore1 with the years #ahhc and #ahhd there has been a general establishment and gradual extension of these spheres until now the whole continent has been practically parcelled out among a few ,european powers4 ,,the ,,great ,,partition ,,of ,,africa ,illustration3 ,the partition of ,africa4 ,the ancient empire of ,morocco still exists in an independent state4 ,abyssinia1 though ,italy attempted to subjugate it1 is again also independent4 ,the little republic of ,liberia is nominally independent4 ,some territory in the very heart of the ,sahara or ,great ,desert is yet in its aboriginal independence4 ,but elsewhere1 throughout the whole continent1 ,africa is either ,british1 or ,french1 or ,german1 or ,belgian1 or ,portuguese1 or ,italian4 ,spain's holding is not worth mentioning4 ,italy's holding also is scarcely worth mentioning4 ,portugal's holding has not been increased in the recent scramble--only made more definite4 ,france's holding1 however1 has been enormously increased1 and is now the largest 7#c1cjj1jjj square miles71 although much of the ,french area is barren desert1 and much of the rest of it uninhabitable by white people4 ,great ,britain's holding also has been greatly increased1 but not nearly so much so as it would have been if in the earlier years of the scramble the ,british government had not been singularly blind to the actions of other governments in the matter4 ,germany1 too1 has got a substantial holding 7#ibe1jjj square miles74 ,the ,kongo ,free ,state1 which1 though nominally independent1 is practically under the suzerainty of ,belgium1 and must look to ,belgium for the funds with which to promote its development1 is also a substantial possession1 being a little less than ,germany's holding--#ijj1jjj square miles4 ,,great ,,britain ,,in ,,africa ,great ,britain's holding1 however1 in the partitioned continent comprises its best portions4 ,much of ,africa is uninhabitable by white men4 ,wherever1 however1 white men can live--except in northern ,africa--there ,great ,britain has managed to get control4 ,excluding the shore of the ,mediterranean1 the best part of ,africa1 considered from the view points of colonisation and commerce1 is what is now known as ,british ,south ,africa4 ,this is an immense area--an area of almost #a1jjj1jjj square miles4 ,it comprises 7#a7 that whole southern portion of the continent known as ,cape ,colony1 and 7#b7 that portion of the great central plateau of the continent which extends from ,cape ,colony northward to ,lakes ,nyassa and ,tanganyika--all except the two ,boer republics1 the ,orange ,free ,state and the ,south ,african ,republic4 ,british ,east ,africa 7#hjj1jjj square miles7 includes the territory of ,uganda1 north of ,lake ,victoria1 a territory which from the character of its native population and its possibilities of trade has been called the pearl of ,africa4 ,british ,west ,africa 7#ejj1jjj square miles7 includes the basin of the lower ,niger1 the most densely peopled area in all ,africa1 the seat of the great ,fula-,hausa empire of ,sokoto-,gandu1 the wealthiest and greatest trading nation in the continent4 ,furthermore1 in the northeast1 ,great ,britain exercises protectorate control over ,egypt--a control that is likely to be instrumental in reclaiming for ,egypt1 and thus for civilisation and commerce under ,british authority1 the whole of ,egypt's ancient possessions along the ,nile as far at least as ,uganda4 ,the total area of the ,british possessions in ,africa1 exclusive of the two ,boer republics and ,egypt1 is over #b1cjj1jjj square miles4 ,,the ,,dominion ,,of ,,south ,,africa ,south ,africa is practically ,british ,south ,africa4 ,the ,german portion is either largely barren or else inaccessible4 ,the ,portuguese portion is only a narrow strip along the east coast1 much of which is too unhealthy for habitation other than by natives4 ,the two ,boer republics are rapidly filling up with ,british people1 are being developed by ,british capital1 and must in time become confederated with the states that environ them4 ,one of them1 too1 is already under ,british suzerainty4 ,british ,south ,africa1 however1 is as yet only a name4 ,it has no real existence except in hope4 ,the aspiration of statesmen in southern ,africa is that all the territories of southern ,africa under ,british control shall form one confederation1 and that in this confederation the ,orange ,free ,state and the ,south ,african ,republic shall join4 ,the territories entering into this confederation would therefore be as follows3 ,the self-governing colonies of ,cape ,colony and ,natal1 the crown colony of ,basutoland1 the protectorates of ,bechuanaland and ,zululand1 the territory now administered by the ,british ,south ,africa ,company1 popularly known as ,rhodesia1 and the ,british ,central ,africa protectorate1 with in addition the two ,boer republics previously mentioned4 ,the length of this proposed ,south ,african dominion would be #ahjj miles4 ,its width would be from #fjj to #hjj miles4 ,and1 as said above1 its area would be about #a1jjj1jjj square miles4 ,mr4 ,stanley predicts that in a hundred years the ,dominion of ,south ,africa will have a white population of #h1jjj1jjj1 and a coloured population of #af1jjj1jjj4 ,,south ,,africa',s ,,agricultural ,,possibilities ,of ,south ,africa as above defined ,cape ,colony and ,natal are at present the most important portions4 ,their climate is in some respects the finest in the world4 ,their soil is of remarkable richness4 ,the number of distinct species of indigenous plants found upon it is greater than for any other equal area on the globe4 ,the same remark was once true of the animals found in ,south ,africa1 which again is testimony to the great fertility of the soil4 ,but a serious drawback is the insufficiency and uncertainty of the rain supply4 ,irrigation1 however1 is practised1 and wherever irrigation is possible the land may be made to blossom like the rose4 ,agriculture1 however1 is only indifferently pursued4 ,the ,,vine in ,cape ,colony produces more abundantly1 very much more abundantly than anywhere else in the world1 and yet neither grape-raising nor wine-making can be said to be successful4 ,,pasturing is the principal occupation of the people in rural districts4 ,there are #ag1jjj1jjj sheep in ,cape ,colony1 and #f1jjj1jjj goats4 ,natal1 which is warmer1 has #ejj1jjj sheep4 ,another principal occupation is ,,ostrich-,,farming4 ,the ostrich1 once wild in ,south ,africa1 is now bred domestically4 ,cape ,colony has #bcj1jjj ostriches4 ,ostrich feathers fetch from #aej to #cjj a pound4 ,the ,,raising ,,of ,,cattle is another principal occupation1 and draught cattle are much used for transport purposes4 ,cape ,colony has #b1jjj1jjj cattle2 ,natal1 #a1jjj1jjj4 ,the principal food crops are wheat and maize1 but little is raised for export4 ,in ,natal1 sugar is an important product1 and also tea4 ,many magnificent timber woods are found1 but the trees are stunted and little timber is exported4 ,much has been wasted by fires4 ,the great agricultural possibilities of ,south ,africa are ,,wool1 ,,mohair 7the hair of the ,angora goat71 fruit1 wine1 and skins4 ,the breadstuffs of ,south ,africa will probably all be needed for home consumption4 ,,south ,,africa',s ,,great ,,mineral ,,wealth ,all the world over ,south ,africa is famous for its ,,diamond-,,mines and its ,,gold-,,mines4 ,the diamonds are found principally in ,griqualand1 north of the ,orange ,river1 now a part of ,cape ,colony1 but they are also found in the ,orange ,free ,state4 ,the diamond areas are very circumscribed1 the diamond-bearing pipes being supposed to be craters of extinct volcanoes4 ,the principal pipes are at ,,kimberley 7#bh1gah71 in ,griqualand4 ,these constitute the richest diamond-fields in the world4 ,it is estimated that over #cej1jjj1jjj worth of diamonds have been taken out of ,kimberley since their first discovery there in #ahfg4 ,the largest ,south ,african diamond yet found was worth #cjj1jjj1 but many other large ones have been found4 ,the annual diamond export now is about #bj1jjj1jjj4 ,for #ahif the export was #bc1bjj1jjj2 for #ahig a little less4 ,the production and export are strictly limited1 so that prices may not depreciate4 ,next in interest to the diamond-fields are the gold-mines4 ,these so far have been found principally in the ,south ,african ,republic1 or ,transvaal as it is popularly called1 in the rand1 or reef1 near the far-famed town of ,,johannesburg 7#ajb1jgh74 ,since gold was first discovered in the rand 7#ahga7 #bej1jjj1jjj worth has been taken out4 ,the annual output now is nearly #ej1jjj1jjj1 but it is estimated that before the rand can be exhausted #b1bej1jjj1jjj worth of gold must be taken out--an amount much greater than the total public debt of the ,united ,states1 national1 state1 and municipal4 ,but north of the ,transvaal1 in ,rhodesia1 especially in ,mashonaland1 is a territory popularly called the ,land of ,ophir1 where mining operations are only just begun1 but where gold is supposed to be even more richly stored than in the ,transvaal4 ,of this district the newly built town of ,,salisbury is the centre4 ,other mineral products of ,south ,africa are coal in ,natal1 mined at ,,newcastle1 and copper in the northwest of ,cape ,colony1 shipped at ,,port ,,nolloth4 ,,south ,,africa',s ,,foreign ,,trade ,the import trade of ,south ,africa so far consists of almost everything needed by the inhabitants except meat1 flour1 vegetables1 and fruit1 for there are as yet almost no manufactures4 ,the principal exports are3 7#a7 gold1 #fj1jjj1jjj per annum1 including that from the ,transvaal2 7#b7 diamonds1 #bb1ejj1jjj2 7#c7 wool1 #ab1ejj1jjj2 7#d7 mohair1 the hair of the ,angora goat1 #c1jjj1jjj2 7#e7 ostrich feathers1 over #b1ejj1jjj2 7#f7 hides and skins1 #b1bjj1jjj2 and 7#g7 copper ore1 #a1bej1jjj4 ,the export of wine and fruit1 for the production of which the country is so well suited1 and also of grain1 is inconsiderable4 ,,shipping ,,ports ,,and ,,railways ,,of ,,south ,,africa ,british ,south ,africa1 like all of ,africa1 is wanting in seaports4 ,in fact1 it has but few4 ,however1 it has one1 ,,walfish ,,bay1 which territorially does not belong to it1 inasmuch as it is in the middle of the coast of ,german ,southwest ,africa--the only port in that coast4 ,the principal port in ,british ,south ,africa is ,,cape ,,town 7#hc1gah71 which is also the capital and principal place4 ,the next principal ports are1 for ,cape ,colony1 ,,port ,,elizabeth 7#bc1bff7 and ,,east ,,london1 and for ,natal1 ,,durban4 ,,lorenzo ,,marquez1 on ,delagoa ,bay1 and ,,beira1 at the mouth of the ,pungwe1 both in ,portuguese ,east ,africa1 are natural ports for northern ,british ,south ,africa1 and are used as such1 railways being constructed from them into the interior4 ,railroad-making1 indeed1 is now the all-important matter in ,south ,africa4 ,lines are already built from ,cape ,town1 ,port ,elizabeth1 ,east ,london1 ,durban1 and ,lorenzo ,marquez to the diamond-fields of ,kimberley and the gold-mines of ,johannesburg4 ,these also give to the pastoral and agricultural parts of the interior facilities of access to the sea4 ,but the line from ,cape ,town to ,kimberley is being rapidly extended northward to ,salisbury1 the central point of the gold-fields of ,rhodesia1 and already has reached ,,bulawayo1 #afjj miles from ,cape ,town4 ,the line from ,beira is also to end at ,salisbury4 ,already a telegraph line extending from ,salisbury northward has reached the west shore of ,lake ,nyassa1 and by the close of this year 7#ahih7 it will reach the south end of ,lake ,tanganyika4 ,it is proposed that the railroad from ,bulawayo shall follow this same route1 and it is the dream 7or shall we say the hope87 of the empire-builders of ,south ,africa that this railway shall before many years be so far advanced northward that it will meet the railway that is now being built from ,cairo southward through the continent along the ,nile4 ,mr4 ,stanley predicts that the ,cape to ,cairo railway will be an accomplished fact before #aibe4 ,the white population of ,south ,africa1 even including the ,boer republics1 is still less than #gej1jjj4 ,x4 ,,the ,,trade ,,features ,,of ,,australia ,,australia ,,and ,,australasia ,the term ,,australasia1 as now generally used1 comprises ,australia 7including ,tasmania7 and ,new ,zealand1 and a number of small neighbouring islands4 ,so used it practically denotes a ,british possession2 for such islands as are comprised by the term and yet do not belong to ,great ,britain are comparatively unimportant4 ,but when we speak of ,australasia1 we are generally thinking of ,,australia1 for ,australia is so large and important that it seems to overshadow the other parts of ,australasia4 ,but in respect to politics or commerce ,australia is not one country2 it is divided into several self-governing colonies4 ,these are1 in order of importance1 ,victoria1 ,new ,south ,wales1 ,south ,australia1 ,queensland1 and ,west ,australia4 ,but a movement is now being made to unite all these colonies1 and ,tasmania as well1 into one ,australian ,confederation1 just as the several provinces of ,canada1 which were once independent colonies1 have been united into one ,dominion of ,canada4 ,this confederation scheme1 however1 has not yet been accomplished4#c ,new ,zealand1 because of its distance 7#abjj miles7 from ,australia1 has so far shown no desire to enter into this confederation4 ,,footnote3 #c ,since the above was written the scheme has been developed a very considerable way toward completion4 ,the name of the confederation is to be ,the ,commonwealth of ,australia4 ,,the ,,area ,,and ,,climate ,,of ,,australia ,australia is a continent not only in name but in fact4 ,its area1 including ,tasmania1 is almost #c1jjj1jjj square miles1 which is about the area of the ,united ,states exclusive of ,alaska1 and only about one fourth less than the area of the continent of ,europe4 ,fully two fifths of this area lie within the torrid zone1 and of the rest1 even in ,victoria1 the part farthest from the equator1 the climate is so warm that it corresponds with that of ,spain1 southern ,france1 and ,italy4 ,but over so vast a territory great differences of climate must occur1 and consequently of products also4 ,a general description of the climate and products of ,australia is therefore impossible4 ,yet there are several characteristics which appertain to the whole continent4 ,the chief of these are 7#a7 the great ,,dryness of the ,,atmosphere--not merely its lack of rain1 but its absolute freedom from moisture2 7#b7 the remarkable ,,inequality1 or want of regularity1 in the ,,rainfall4 ,occasionally the rainfall is excessive1 but a more frequent and serious cause of trouble is excessive drought4 ,the continent on every side has a low coast region1 where the rainfall is heavier and the temperature generally hotter than in the corresponding table-land interior to it4 ,but the vast table-land of the interior has comparatively little rain1 and indeed in some parts of it1 especially in the centre and west1 the rainfall is so slight that the country is practically a desert4 ,but even when all the desert areas of ,australia are excluded from calculation there still remains in the interior plateau1 toward the east and south1 an immense area of country of great fertility and productiveness4 ,the ,murray ,river alone drains an area of #ejj1jjj square miles1 one sixth of the whole continent1 a great part of which is of exceeding richness4 ,in these fertile parts irrigation by artesian wells has been tried1 and always with great success4 ,and it is thought that almost the whole continent can be regained for agriculture1 or at least for sheep-pasturing1 by similar means2 for even in the arid and so-called desert parts of the interior1 there is very little soil that is not really fertile1 for all of it is covered with thick brushwood4 ,moisture alone is needed to make it bear crops abundantly4 ,and this dryness of the atmosphere which prevails throughout the whole continent is not without its compensations4 ,it renders the climate exceedingly healthful4 ,,australia ,a ,,continent ,,of ,,peculiarities ,australia has ,,many ,,peculiarities4 ,it has only one large river1 and even that in summer becomes a series of isolated pools4 ,it has no high mountain range1 its principal mountains being only a series of ramparts marking off the lower coast lands from the interior plateau4 ,again1 its native quadrupeds are entirely different from those of other continents1 being almost all1 whether little or big1 marsupials1 or pouch-bearers1 like the kangaroo4 ,its birds are mostly songless4 ,its flowers1 for the most part1 have no scent4 ,its trees are leaved vertically and cast no shade4 ,its indigenous inhabitants have made no progress toward civilisation4 ,when ,europeans first came to the country they found no native animal that could be put to any use1 nor any native fruit1 vegetable1 or grain that could be utilised for food4 ,still1 all ,european domestic animals thrive abundantly in the country1 and so do all ,european fruits1 grasses1 grains1 and vegetables4 ,the ,english rabbits1 indeed1 have become a terrible pest4 ,as many as #be1jjj1jjj of them have been killed in a year without any apparent diminution in their numbers4 ,over #a1jjj1jjj a year has at times been spent to exterminate them1 all to no effect4 ,,victoria ,victoria1 the smallest of the ,australian colonies1 had until recently the largest population 7,june1 #ahig1 #a1agg1cjd7 and also the largest trade4 ,in both respects1 however1 it is at present surpassed by ,new ,south ,wales4 ,victoria has owed its past pre-eminence to its ,,gold ,,production4 ,gold was discovered in the colony in #ahea1 and for years the output of the precious mineral was not less than #ej1jjj1jjj per annum4 ,the present output of gold in ,victoria1 however1 is only #aj1jjj1jjj per annum4 ,richer1 however1 than the gold-mines of ,victoria is the fertility of its soil4 ,a large part of the soil is exceedingly fertile--with irrigation one of the finest fruit-bearing soils in the world4 ,the arboreal vegetation of the country is magnificent4 ,trees thirty feet in diameter rise to the height of #bjj feet without a single lateral branch1 and then #ajj feet to #bjj feet higher still4 ,pear-trees grow to the height of eighty feet1 with trunks three feet in diameter4 ,but as yet wool-growing1 wheat-raising1 and vine-growing are the principal agricultural occupations of the people4 ,the principal agricultural export is ,,wool--#be1jjj1jjj worth per annum4 ,but a considerable portion of this comes from ,new ,south ,wales4 ,the ,,sheep kept number #ae1jjj1jjj1 the cattle #b1jjj1jjj4 ,but the colony still remains principally a mining community4 ,five ninths of the population live in towns4 ,yet there are few towns1 and two fifths of the whole population live in ,melbourne--a city almost exactly as large as ,boston4 ,,melbourne ,,melbourne 7#dea1aaj2 with suburbs1 #ejj1jjj71 the capital city of ,victoria and the chief city in ,australia1 is also one of the most beautiful cities in the world4 ,its parliament buildings1 town hall1 post-office1 treasury1 mint1 law courts1 public libraries1 picture galleries1 theatres1 churches1 and clubs are all edifices of architectural magnificence and beauty1 while its boulevards1 parks and gardens are equally splendid4 ,at one time money flowed freely and great commercial recklessness prevailed4 ,but though ,melbourne has sustained several severe depressions its present condition is prosperous and its future is assured4 ,it is1 however1 a pleasure-loving city1 and it is as much on this account as on account of its great beauty that it is called the ,paris of the southern hemisphere4 ,nowhere else in the world1 perhaps1 are indoor amusements--the theatre1 concerts1 etc4--or outdoor amusements--cricket1 football1 horse-racing1 etc4--more devotedly patronised than in ,melbourne4 ,other important places in ,victoria are ,,ballarat 7#dj1jjj7 and ,,sandhurst 7#cg1jjj71 both mining towns1 and ,,geelong 7#be1jjj7 locally noted for its manufacture of tweeds4 ,,new ,,south ,,wales ,illustration3 ,australia4 ,shaded portions show where the rainfall is sufficiently abundant4 ,new ,south ,wales 7population #a1caa1ddj7 is the oldest colony of ,australia and the parent of both ,victoria and ,queensland4 ,of all the colonies1 it has1 perhaps1 the greatest range of productions4 ,on the low coast lands its soil is of extraordinary fertility1 and even in the dry interior1 when irrigation is employed1 the fertility is still extraordinary4 ,as yet1 however1 but one acre out of every two hundred is under cultivation1 the chief agricultural occupation being pasturing4 ,over #ej1jjj1jjj ,,sheep are kept1 principally the ,,merino4 ,grass grows everywhere1 and even the summits of the mountains are covered4 ,drought1 however1 is a terrible drawback1 and sometimes tremendous losses occur4 ,in #ahgg over #h1jjj1jjj sheep perished1 and in #ahhd over #ab1jjj1jjj4 ,the total ,,wool ,,production is very large1 averaging #ej1jjj1jjj a year4 ,the export of hides1 skins1 leather1 and chilled meat1 principally mutton1 amounts to #aj1jjj1jjj annually4 ,chilled mutton and beef are sent direct to ,london1 though the passage takes five or six weeks by steamer and twelve to sixteen weeks by sailing-vessel4 ,scarcely less important than its agricultural products are the mineral products of ,new ,south ,wales4 ,its ,,coal-,,mines are the finest on the continent1 and #d1ejj1jjj worth of coal is exported annually1 besides what is consumed locally4 ,its gold production1 though not very large1 is general throughout the whole colony4 ,its ,,silver-,,mines in ,,silverton and ,,broken ,,hill are among the most famous in the world1 and its tin-bearing lands comprise over #e1ejj1jjj acres4 ,the foregoing comprise the staple products--the production of industries already well established4 ,but fruit-growing1 including all fruits1 from apples1 pears1 and peaches1 to olives and oranges1 is a rapidly developing industry1 no country in the world being better suited to it4 ,wine-making1 too1 is quickly coming forward1 the ,new ,south ,wales wines equalling in flavour those of ,france and ,spain4 ,wheat-growing1 cotton-growing1 and even rice-growing are also in their several districts rapidly extending and prosperous pursuits4 ,the development of ,new ,south ,wales has only just begun4 ,,sydney 7including suburbs #daj1jjj7 is the capital and by far the largest city4 ,sydney1 like ,melbourne1 is a beautiful city1 but its beauty is natural rather than artificial1 and it is well entitled to its name1 ,queen of the ,south4 ,it is situated on ,port ,jackson1 one of the finest and most beautiful harbours on the globe4 ,sydney is the headquarters of all the various lines of steamships--,british1 ,american1 ,french1 ,italian1 etc4--that trade with ,australia1 and is indeed one of the great seaports of the world4 ,,south ,,australia ,south ,australia 7#ceh1bbd in #ahig7 occupies the whole central part of the continent from north to south4 ,but as only a very small portion of this vast area is settled--the southeast corner--it may be described as in characteristics resembling ,victoria4 ,its principal industry is ,,wheat-,,growing4 ,south ,australia is indeed the great granary of the continent1 and is destined to be one of the great granaries of the world4 ,like the other divisions of ,australia1 ,south ,australia1 when once drought has been overcome by irrigation1 is destined to become a great fruit country1 its warm1 moistureless climate being peculiarly well suited to the ripening of fruits of exquisite flavours4 ,already its olives are pronounced the finest in the world4 ,the principal city and chief port is ,,adelaide 7with suburbs #add1ceb74 ,like other ,australian ports1 ,adelaide possesses excellent steamboat shipping facilities4 ,in the north1 on the ,timor ,sea1 is ,,port ,,darwin1 likely to be an important trade centre4 ,,queensland ,the most interesting of all the ,australian colonies is ,queensland 7population #dgb1agi71 for it is a tropical country with a climate so salubrious that white people can live in it and be comfortable and healthy4 ,the heat1 instead of being enervating1 is stimulating and bracing4 ,a great portion of its soil is of unsurpassed fertility4 ,the only drawback is the unequal distribution throughout the year of the rainfall4 ,but wherever irrigation wells are sunk the climate becomes highly suitable for ,,sheep-,,raising1 and also for the growing of many kinds of ,,fruit4 ,there are already #ae1jjj1jjj sheep and #e1jjj1jjj cattle in the colony1 and wool is exported to the amount of #ae1jjj1jjj annually4 ,other agricultural exports are frozen beef and mutton1 and hides and skins4 ,,wool is the chief export4 ,the second export in importance is ,,gold1 which reaches #aj1jjj1jjj per annum4 ,tin is also exported1 and coal1 though little worked1 is abundant4 ,developing exports are sugar 7#b1ejj1jjj per annum71 arrowroot1 cotton1 tobacco1 rice1 and coffee4 ,a difficulty1 however1 in the development of these products is the labour question4 ,white men cannot work in the plantations4 ,chinese prefer to work in the mines4 ,the natives won't work anywhere4 ,no negroes are obtainable4 ,as a consequence ,polynesians have to be imported4 ,,brisbane 7#ajj1iac7 is the capital and chief city and port4 ,,west ,,australia ,west ,australia 7population #afb1cid71 the largest of all the ,australian colonies1 has only been recently settled1 and its constitution as a self-governing colony dates only from #ahij4 ,a large part of its area has never been explored1 and a large part is known to be scrub desert4 ,but there is scarcely any part of it1 even of its scrub areas1 but that will support sheep when once artesian wells have been sunk1 and large portions of the colony1 especially along the coasts1 are as fertile as need be4 ,and the climate1 though very dry1 is exceedingly healthful4 ,,perth 7#dc1jjj7 is the capital4 ,,albany is the principal port4 ,,the ,,immense ,,resources ,,of ,,australia4 ,,its ,,probable ,,future ,australia is undoubtedly on the eve of a period of great development4 ,its resources are known to be immense4 ,its climate has been found most favourable to human health1 and the objectionable feature of the climate1 the smallness and irregularity of the rainfall1 has been studied and become understood and found remediable4 ,once the confederation that is now in process of formation takes place1 there is no doubt that ,australia will enter upon a new and prosperous commercial era4 ,owing to the fact that its chief opportunities for wealth lie in the development of its natural resources1 it is probable that for some time to come almost all the manufactured goods ,australia needs will have to be imported4 ,already its importation amounts to #bge1jjj1jjj1 of which1 of course1 ,great ,britain supplies the principal share4 ,this importation is principally clothing and materials for clothing1 but it also comprises hardware and machinery1 and in fact everything required by a highly civilised and money-spending people1 except breadstuffs and provisions4 ,the magnitude of this importation may be comprehended from the fact that it is more than one third of the total exportation of the ,united ,states for any year save one up to #ahif1 including our immense export of breadstuffs1 provisions1 and cotton4 ,and besides the articles of export already mentioned--,,wool1 ,,meats1 ,,hides1 ,,skins1 ,,minerals1 ,,fruits1 etc4--there is one other ,australian resource that is capable of almost indefinite development4 ,this is its ,,timber4 ,the eucalyptus or gum-tree prevails almost universally in ,australia1 and some of its commonest varieties1 being both strong and indestructible by insects1 are of almost unequalled value for ship-building1 railway ties1 and dock and harbour construction4 ,that the ,australians are fully alive to the importance of developing their foreign trade is seen in the efforts they have made to provide facilities for bringing their products to ocean ports4 ,there are #aa1ihj miles of railway1 almost every mile of which has been built by the governments4 ,this is one mile of railway for every #cjj inhabitants1 as against one mile for every #djj inhabitants in the ,united ,states4 ,these railways run wholly to and from the seaboard4 ,there are no manufacturing towns to be catered to4 ,australian trade consists wholly in exchanging home-raised natural products for imported manufactures4 ,equally remarkable with the railroad enterprise of the ,australians is their enterprise in telegraphic construction and the establishment of cable communications4 ,for example1 a telegraph line #bjjj miles long1 running across the continent from ,adelaide to ,port ,darwin1 has been built by the province of ,south ,australia so as to connect with a cable from ,port ,darwin to ,java1 ,singapore1 etc41 and thus with ,europe and ,america4 ,for at least #aejj miles this telegraph line runs through one of the most desolate and inaccessible regions in the world4 ,,xi4 ,,the ,,trade ,,features ,,of ,,south ,,america ,,south ,,america1 ,a ,,fertile ,,continent ,,with ,,drawbacks ,south ,america is an immense but very fertile continent1 whose natural resources are as yet scarcely begun to be utilised4 ,though not so large as ,north ,america1 it has a far greater area of productive soil--and1 indeed1 much of its soil is quite unsurpassed in fertility4 ,it suffers1 however1 from two great drawbacks4 #a4 ,a great portion of its area 7four fifths7 lies within the torrid zone4 ,in the low coast regions of this torrid area1 and also in the low forest regions watered by the great flat rivers of the interior1 the climate is for the most part unendurable to white men4 #b4 ,south ,america has been unfortunate in its settlement and colonisation4 ,until in recent years colonisation as understood in ,anglo-,saxon communities has scarcely been attempted in ,south ,america at all4 ,all the earlier immigrations from the ,old ,world were prompted by the thought of getting gold and silver and precious stones--if need were by the spoliation and enslavery of the natives4 ,only a small proportion of the population--not more than a quarter of the whole--consists of whites1 and these are principally from ,spain and ,portugal4 ,these conquerors of the continent have not in the main succeeded in establishing either stable forms of government or high types of civilisation4 ,furthermore1 the mixed races--the ,,mestizos or ,,metis1 as they are called1 the descendants of the earlier ,europeans and the natives--instead of advancing in civilisation have for some time past been retrograding4 ,then1 again1 there is a large negro element1 the descendants of ,africans once imported as slaves1 to still further complicate the race question2 and there is a considerable element partly negro and partly ,indian4 ,in only one state1 ,argentina1 can affairs be said to be really prosperous1 and even in ,argentina the civilisation developed by its prosperity is gross and material rather than refined and intellectual4 ,the next most prosperous and important states are ,brazil and ,chile4 ,perhaps ,uruguay1 though the smallest of all the states1 should be placed after ,argentina4 ,the remaining independent states of the continent--,venezuela1 ,colombia1 ,ecuador1 ,peru1 ,bolivia1 and ,paraguay--are all states of the prevailing ,south ,american type4 ,their governments are more or less unstable4 ,they are terribly burdened with debt1 and their credit is such that they must pay high rates of interest4 ,the civilisation once introduced among their native races by the zeal of ,spanish missionaries is deteriorating if not vanishing4 ,and even among their leading classes there is much to be desired in the observance of the ordinary principles of right and wrong4 ,,european ,,immigration ,,in ,,south ,,america ,all the ,south ,american states enumerated above1 with the exception of ,brazil1 were first taken possession of and settled by the ,spanish1 and the ,spanish language still remains in them the language of government1 education1 and society4 ,brazil was first taken possession of and settled by the ,portuguese1 and in ,brazil the ,portuguese language prevails1 just as elsewhere in the continent the ,spanish language prevails4 ,among the natives many different languages are found1 but in ,brazil a common language is used1 one introduced by the original ,portuguese missionaries1 and understood by nearly all the tribes4 ,between ,brazil and ,venezuela is a triangular piece of country called ,guiana1 which1 unlike the rest of ,south ,america1 is still under the control of ,european powers4 ,it consists of three parts--,french ,guiana1 ,dutch ,guiana1 and ,british ,guiana--colonies of ,france1 ,holland1 and ,great ,britain1 respectively4 ,leaving out ,guiana1 ,south ,america has received its entire civilisation from ,spain and ,portugal1 and1 with the exception of ,argentina1 ,uruguay1 and ,brazil1 there has been little or no emigration to any ,south ,american country except from these two ,european countries4 ,to ,argentina1 however1 there has been a large emigration from ,italy especially1 but also from ,france1 ,great ,britain 7mainly from ,ireland and ,wales71 ,germany1 and ,sweden4 ,a similar emigration has taken place to ,uruguay1 though the foreigners in ,uruguay are principally ,basques1 a people that live on the border-land between ,spain and ,france1 but are neither ,spanish nor ,french4 ,in ,brazil the immigration1 where it has not been ,portuguese1 has been chiefly ,italian and ,german1 and in the temperate region of the extreme south of ,brazil a large ,german population exists4 ,everywhere in ,south ,america the parts most prosperous are the parts that have come most directly under the influence of recent ,european emigration4 ,,the ,,argentine ,,republic ,the ,argentine ,republic1 or ,argentina1 as it is popularly called1 is the most prosperous and most important of all the ,south ,american states4 ,its area 7#a1cai1bdg square miles7 is equal to the total area of the ,states of the ,united ,states east of the ,mississippi and ,missouri1 including the ,dakotas1 ,missouri1 ,arkansas1 and ,louisiana4 ,although a portion of this vast area is not of much value for agricultural purposes1 especially in ,patagonia1 a very large portion of it does consist of soil of great fertility1 while the climate1 which for the most part is a temperate one1 is such as is well suited to ,europeans and white people generally4 ,the population ,may #aj1 #ahie1 was #d1jid1iaa4 ,of this population it is estimated that over #hej1jjj are ,italians1 #ahc1jjj ,french1 #afa1jjj recently emigrated ,spaniards1 #fj1jjj ,english1 and #ed1jjj ,germans and ,swedes4 ,the language of the government and of the schools is ,spanish4 ,at one time in ,argentina there was a disposition to take the ,united ,states as a model in everything1 but of late years there has been a tendency toward taking ,france as a model in manners and customs4 ,this disposition to imitate ,european peoples is particularly true of the wealthy classes4 ,,argentina',s ,,rapid ,,progress ,the pride and boast of ,argentina has been its rapid progress4 ,in the thirty years ending #ahhf the immigration was over a million4 ,from #ahhf to #ahhi it was from #ajj1jjj a year to #bjj1jjj a year4 ,in #ahij1 owing to the financial crisis of that year1 it fell away almost to nothing4 ,since #ahij it has gradually increased until now it is about #ajj1jjj a year again4 ,in #ahfi the population was only #a1hcg1jjj4 ,now it is over #d1jjj1jjj4 ,similarly the capital city1 ,buenos ,ayres1 has made an increase not easily paralleled4 ,in #ahfi its population was only #ahg1abf4 ,in #ahhg it was #dbc1iif4 ,by the census of #ahie it was #ffc1hed4 ,to-day it is said to be #gej1jjj4 ,of this number about one half are foreigners4 ,the high protective tariff established by ,argentina in #ahgh had the effect of instituting many small industries in ,buenos ,ayres1 and to this cause the exceedingly rapid growth of its population is partly attributable4 ,,argentina',s ,,agriculture ,,and ,,manufactures ,the great prosperity of ,argentina has been due to the extent and immediate availability of its agricultural resources1 for its forest wealth remains undeveloped1 and its mineral resources are comparatively scanty4 ,its vast treeless and stoneless plains have needed no improvements to make them fit for settlement1 and the soil which covers them being of virgin richness bears crop after crop without fertilising and with very little cultivation4 ,immigrants arrive in the country without a dollar and in twenty years are owners of estates of #ejjj acres each4 ,in no country in the world has agricultural extension been more rapid4 ,in twenty years the acreage under cultivation increased #adjj per cent4 ,the amount under cultivation in wheat alone increased #bfjj per cent4 ,the ,,wheat ,,production averages #dj1jjj1jjj bushels1 which is not far short of one fourth of the total wheat export of the ,united ,states4 ,the production for #ahig was #fj1jjj1jjj bushels1 although the amount exported was much less than that4 ,the wheat product is indeed very variable1 owing to droughts and locusts1 for1 like ,australia1 ,argentina is uncertain in its rainfall4 ,the ,,corn ,,crop is steadier1 and in #ahif amounted 7for export alone7 to #fj1jjj1jjj bushels4 ,more important in the aggregate than the direct products of the soil are the indirect products4 ,there are #bb1jjj1jjj ,,cattle kept in ,argentina1 #ge1jjj1jjj ,,sheep1 and #d1ejj1jjj ,,horses4 ,the total exportation of animals and animal products amounts to #gj1-jjj1jjj4 ,of this exportation the principal item is ,,wool1 the wool-clip of ,argentina being1 in weight1 one seventh of the total wool-clip of the world4 ,unfortunately1 however1 ,argentina wool is very dirty1 and when washed reduces to one third1 while ,australian wool reduces only to two thirds or three fifths and is free from seeds4 ,the profit accruing to the ,argentina wool-grower is thereby lessened4 ,but1 nevertheless1 wool-growing in ,argentina is a very profitable industry1 and many farmers 7principally ,irish settlers7 have from #ej1jjj to #ajj1jjj sheep each4 ,cattle-farming is carried on mostly by native ,argentines1 and many cattle farms are stocked with as many as #aj1jjj cattle and #bjjj horses each4 ,the great exports of ,argentina1 therefore1 after wheat and corn and wool1 are ,,hides and ,,skins1 ,,tallow1 ,,chilled ,,beef1 and ,,mutton and bones4 ,there are five factories in ,buenos ,ayres engaged wholly in chilling mutton1 and the export of chilled mutton to ,great ,britain alone is #e1jjj1jjj a year4 ,another growing agricultural product is ,,wine1 the yearly production being #a1ejj1jjj gallons4 ,notwithstanding ,argentina's magnificent forest areas1 but little timber is exported or even manufactured for home consumption4 ,the other principal manufacturing industries are carriage-1 cart-1 and harness-making1 cigarette- and match-making1 preserving and tinning meat1 brewing1 flour- and corn-milling1 and the making of macaroni4 ,,buenos ,,ayres ,illustration3 ,the most prosperous part of ,south ,america4 ,,buenos ,,ayres1 the capital of ,argentina1 is the largest city not only in ,south ,america but in the whole southern hemisphere4 ,the ,la ,plata1 at whose mouth it stands1 affords navigation into all the northern parts of the republic1 as well as into the neighbouring states of ,uruguay1 ,paraguay1 ,brazil1 and ,bolivia4 ,the riverside at ,buenos ,ayres is at all times of the year a perfect forest of masts and smoke-stacks belonging to the shipping that supplies this navigation4 ,recently1 at a cost of #be1jjj1jjj1 the river1 which here is shallow1 has been deepened and new wharves and docks have been built1 and ocean-going vessels of the deepest draught 7which formerly used to be lightened fourteen miles away7 can now unload or be loaded right in the very heart of the city4 ,the total commerce of the republic amounts to #bjj1jjj1jjj or #bbe1jjj1jjj a year1 and of this trade ,buenos ,ayres transacts seven eighths in imports and three fifths in exports4 ,the amount of this trade secured by the ,united ,states is about a tenth1 running from #ab1jjj1jjj to #bd1jjj1jjj4 ,in #ahif it was only #ab1ejj1jjj4 ,the principal export trade is with ,france 7#bd1jjj1jjj71 ,great ,britain 7#ad1jjj1jjj71 ,germany 7#ac1jjj1jjj71 and ,belgium4 ,great ,britain does not buy ,argentina wool4 ,the principal import trade is with ,great ,britain 7#de1jjj1jjj71 ,germany 7#ad1jjj1jjj71 ,france 7#ab1jjj1jjj71 and ,italy4 ,the ,buenos ,ayreans are fond of display and of dress and of ornamentation1 and the importations from ,france and ,italy are principally of goods to gratify this fondness4 ,there is a considerable exportation of wheat1 flour1 tobacco1 and mat 7,paraguay tea7 to ,brazil and other ,south ,american states4 ,buenos ,ayres is the centre of the ,argentina railway system1 which consists of about #ijjj miles of road4 ,there are #be1ejj miles of telegraph routes4 ,the national debt amounts to #dcj1jjj1jjj4 ,the provincial debts amount to about #adj1jjj1jjj4 ,the taxation amounts to nearly ten per cent4 of the earnings of the people1 as against four and one half per cent4 in ,canada and five per cent4 in ,australia4 ,,brazil ,brazil is a much larger and more populous country than ,argentina4 ,its area 7#c1bji1hgh square miles7 is as large as that of all the ,united ,states1 less half of ,alaska4 ,a great portion of this area is of superlatively tropical richness of production4 ,but1 unfortunately1 the most fertile parts of ,brazil are the parts least fit for settlement by white men4 ,the population by the last census is approximately #ad1ejj1jjj1 but less than #d1jjj1jjj of this population are pure whites4 ,the negroes that were lately slaves number over #b1jjj1jjj1 and there are supposed to be about #a1jjj1jjj ,indians4 ,intermediate between the ,indians and negroes and the white population are the numerous mixed races or half-breeds4 ,agriculture is the chief industry1 but is of two kinds3 the tropical agriculture of the central and south central seaboard1 which is carried on principally by negro and mulatto labour1 and the agriculture of the temperate region of the extreme south1 which is carried on mainly by colonists from ,europe1 the recent ,european emigration being almost wholly directed toward that region4 ,almost the whole of the interior of ,brazil still remains unsettled and untilled4 ,the ,,coffee yield of ,brazil is enormous and is its principal product4 ,the production amounts to #h1jjj1jjj bags or over #a1jjj1jjj1jjj pounds annually1 which is more than two thirds of the total amount of coffee used in the world4 ,labour for coffee cultivation is scarce and dear1 and in the earlier stages of the production of the berry the ,brazilian coffee gets badly treated4 ,but machinery is used wherever possible1 and in the later stages of the production the ,brazilian coffee gets the best attention that skill can devise4 ,as a consequence the coffee product of ,brazil is rising in the estimation of coffee-users4 ,the shrubs are cultivated under palm-trees so as to keep them from the intense heat of the sun4 ,three or four harvests of berries are obtained in a year4 ,rio ,janeiro and ,,santos are the two chief centres of the coffee industry4 ,next to coffee the chief tropical product is ,,sugar1 the export of which is about #bej1jjj tons annually1 principally from ,pernambuco4 ,other products of the tropical area of ,brazil are ,,cocoa and ,,cotton1 from the cultivated coast regions1 and ,,rubber and ,brazil-nuts1 from the dense forests of the lower ,amazon2 also ,,dyewoods and ,,cabinet ,,woods1 drugs1 and diamonds4 ,for many years ,brazil was celebrated for its diamonds--obtained chiefly from a town in the interior named ,diamantina4 ,the present diamond production is not large4 ,from the temperate agricultural region of the south1 dried beef1 hides1 and tallow are the chief exports4 ,the greatest customer of ,brazilian produce is the ,united ,states1 which takes #gj1jjj1jjj worth4 ,great ,britain is next1 with #ce1jjj1jjj worth 7in rubber alone in #ahif #ae1jjj1jjj74 ,brazil gets her goods principally from ,great ,britain1 the ,united ,states1 ,france1 and ,germany--from ,great ,britain #bj1jjj1jjj1 from the ,united ,states #ac1jjj1jjj4 ,the imports include almost all articles needed for domestic and manufacturing purposes--particularly cottons and woollens1 ironware1 machinery1 lumber1 flour1 rice1 dried meats1 kerosene1 butter1 and fish4 ,there are1 however1 #aee cotton factories established in ,brazil1 with capital to the value of #ej1jjj1jjj1 and cotton manufacturing is protected by very heavy duties4 ,but agricultural machinery and such like manufactures are very lightly taxed4 ,the principal food of the people is manioc flour 7tapioca74 ,,rio ,,janeiro ,,rio ,,janeiro 7#fgd1igb71 the capital and principal city1 though a poor-looking place1 is situated on a magnificent harbour--one of the very finest in the world4 ,about #aejj vessels1 with tonnage amounting to #b1ejj1jjj tons1 enter ,rio ,janeiro with foreign trade annually4 ,nine thousand miles of railway have been built in ,brazil and #cejj more are in course of construction1 and #ab1jjj miles of telegraph routes have been built4 ,rio ,janeiro is the chief railway centre1 but other centres are ,,rio ,,grande ,,do ,,sul1 in the temperate regions of the south1 and ,,bahia and ,,pernambuco1 in the tropical regions4 ,the public 7national7 debt of ,brazil is not far short of #a1jjj1jjj1jjj1 bearing interest 7a great part of it7 at from four to six per cent4 per annum4 ,,xii4 ,,the ,,trade ,,features ,,of ,,canada ,,canada1 ,,practically ,,an ,,independent ,,federal ,,republic ,the dominion of ,canada comprises all that portion of the continent of ,north ,america north of the ,united ,states--except ,alaska and ,newfoundland and the coast of ,labrador4 7,newfoundland and the ,labrador coast is a colony in direct relationship to ,great ,britain47 ,canada is entirely self-governing and self-maintaining1 and its connection with ,great ,britain is almost wholly a matter of loyalty and affection4 ,it consists 7#a7 of seven ,provinces3 ,ontario1 ,quebec1 ,nova ,scotia1 ,new ,brunswick1 ,prince ,edward ,island1 ,manitoba1 and ,british ,columbia1 which1 in their self-governing powers and their relation to the general government1 correspond very closely to our ,states2 7#b7 of four ,territories--,assiniboia1 ,alberta1 ,saskatchewan1 and ,athabasca1 which correspond somewhat to our ,territories2 7#c7 of four other ,territories--,ungava1 ,franklin1 ,mackenzie1 and ,yukon1 which are administered by the general government2 and 7#d7 the ,district of ,keewatin1 which is under the jurisdiction of the lieutenant-governor of ,manitoba4 ,the capital of the whole dominion is ,ottawa4 ,each province has its own capital4 ,,size1 ,,soil1 ,,climate1 ,,and ,,population ,,of ,,canada ,the area of ,canada is immense4 ,it figures up to #c1def1chc square miles1 which is almost #ejj1jjj square miles more than the total area of the ,united ,states exclusive of ,alaska1 and not far short of being equal to the area of all ,europe4 ,but almost #aej1jjj square miles of this area are taken up by lakes and rivers2 and a much greater portion than this1 under present conditions of civilisation1 is wholly uninhabitable1 being either too cold or too barren4 ,yet when all the necessary allowances have been made there still remains in ,canada an immense area with soil fertile enough and climate favourable enough for all the purposes of a highly civilised population4 ,over #ijj1jjj square miles are already occupied1 and of the occupied area fully one half has been improved4 ,the older provinces are1 acre for acre1 as suitable for agricultural pursuits as the adjoining ,states of the ,union4 ,manitoba1 the ,prairie ,province1 is almost one vast wheat field1 with a productivity for wheat unequalled anywhere except in the ,red ,river valley of ,minnesota and ,dakota4 ,the ,manitoba grain harvest foots up to #ej1jjj1jjj bushels4 ,british ,columbia is a land of almost infinite possibilities1 not only because of its mineral and timber resources1 but also because of its capabilities for agriculture and fruit-growing4 ,the ,territories are so vast an area that no general description of them is possible1 but it may be said that the great wheat valley of the ,saskatchewan1 the sheltered grazing country of ,alberta1 and the great wheat plains of the ,peace ,river valley in ,athabasca1 are regions adapted in soil and climate to sustain a hardy and vigorous people4 ,the population of ,canada is comparatively small4 ,it is estimated at #e1bej1jjj4 ,over #a1jjj1jjj people of ,canadian birth reside in the ,united ,states1 and the number of ,americans residing in ,canada is only #hj1jjj4 ,out of the #b1dbe1jjj persons who came to ,canada as immigrants in a period of forty years1 no fewer than #a1caj1jjj1 or fifty four per cent41 came over into the ,united ,states4 ,it is stated that this exodus has ceased1 and that if any great movement of population now exists it is toward ,canada4 ,,canada',s ,,forest ,,wealth ,canada1 like all new countries1 depends for her prosperity upon the development and exportation of her natural products4 ,these are of four great classes3 7#a71 the products of her forests2 7#b71 the products of her mines2 7#c71 the products of her fisheries2 7#d71 her agricultural products4 ,canada's forest resources1 when both extent and quality are considered1 are the finest in the world4 ,the forest area uncut was in #ahia nearly #a1bej1jjj square miles1 or more than one third of the area of the whole country4 ,the annual value of the timber and lumber produced is about #hb1ejj1jjj4 ,the annual value of the timber and lumber exported is about #cb1jjj1jjj4 ,two thirds of this goes to ,great ,britain1 and over #i1jjj1jjj in lumber and logs goes to the ,united ,states4 ,quebec and ,ontario have unlimited supplies of spruce for wood-pulp manufacture1 the annual output of which reaches #bjj1jjj tons4 ,the uncut lumber of ,british ,columbia1 which includes ,douglas pine1 ,menzies fir1 spruce1 red and yellow cedar1 and hemlock1 is estimated to be #ajj1jjj1jjj1jjj cubic feet4 ,,canada',s ,,mineral ,,resources ,canada is just beginning to realise the largeness of her mineral resources4 ,the most talked of gold-mines are those of the ,klondike district1 the extent of which is still uncertain4 ,much more definitely known and almost as productive are the gold-mines of ,british ,columbia and the newly discovered gold-fields of the ,rainy ,river district in northern ,ontario4 ,more important than the gold-mines of ,canada are its coal-fields4 ,these are principally in ,nova ,scotia and ,british ,columbia4 ,the latter province is destined to be the coal-supplying region for the whole ,pacific coast of ,north ,america4 ,the yearly output at present is about #a1jjj1jjj tons2 the yearly output of ,nova ,scotia is about #b1jjj1jjj tons1 principally produced by ,american capital4 ,in ,alberta there are said to be coal-fields having an area of #fe1jjj square miles4 ,iron is found in abundance in both ,british ,columbia and ,ontario4 ,ontario has in its nickel-mines of ,sudbury a mineral treasure not found elsewhere in equal abundance in the world4 ,experts have estimated that #fej1jjj1jjj tons of this ore are actually in sight4 ,ontario produces petroleum and salt4 ,silver1 copper1 lead1 asbestos1 plumbago1 mica1 etc41 are found in varying quantities4 ,canada imports annually from the ,united ,states nearly #aj1jjj1jjj worth of coal and coke4 ,,canada',s ,,fisheries ,the fisheries of the ,gulf of ,st4 ,lawrence and of the shallow waters bordering on ,nova ,scotia and ,newfoundland have for centuries been the most productive in the world4 ,the ,canadian fishing interest in these waters is very great4 ,cod1 mackerel1 haddock1 halibut1 herring1 smelts1 and salmon1 are the principal fish1 and the annual take is about #ae1jjj1jjj4 ,about #b1ejj1jjj worth of whitefish1 salmon-trout1 herring1 pickerel1 and sturgeon are produced annually from the ,canadian lakes4 ,the salmon-fishing of the rivers and great sea-inlets of ,british ,columbia brings about #d1ejj1jjj annually4 ,about one half of the total product is exported to ,great ,britain and the ,united ,states4 ,,canada',s ,,agricultural ,,produce ,agriculture1 including stock-raising1 dairying and fruit-growing1 is ,canada's greatest industry4 ,over #bc1jjj1jjj acres are under crop and about #bj1jjj1jjj under pasture4 ,over #c1jjj1jjj acres are under wheat cultivation4 ,ontario exports more than twice as much cheese as the whole of the ,united ,states1 and her cheese product is recognised as the finest in the world4 ,canada exports to ,great ,britain alone #ae1jjj1jjj worth of cheese annually4 ,in #ahif1 in ,ontario alone1 #agj creameries turned out over #f1jjj1jjj pounds of butter at an average net receipt of #ah-a_/d cents a pound4 ,by the cold-storage facilities provided by the government ,canadian butter can be sent even from far inland points to ,liverpool or ,london without the slightest deterioration4 ,england buys #f1jjj1jjj worth of ,canadian bacon and hams annually1 and ,canadian beef is already famous on the ,london market4 ,american corn for stock-feeding is admitted to ,canada free of duty and about #aj1jjj1jjj worth is imported annually4 ,a great deal of eastern and southern ,canada is well adapted to fruit-raising4 ,the ,niagara-,st4 ,clair peninsula of ,ontario is especially famous for its peaches and grapes4 ,,canada',s ,,trade ,,with ,,the ,,united ,,states ,canada has made a great effort in the direction of encouraging home manufactures1 but her most progressive and most staple industries are those concerned in the conversion of the raw products of the country into articles of common merchandise4 ,her steam horse-power in proportion to population is the largest in the world4 ,the capital invested in factories as a whole amounts to over #djj1jjj1jjj1 with an annual output of over #ejj1jjj1jjj4 ,her total annual importation is now over #acj1jjj1jjj4 ,more than half of this is from the ,united ,states4 ,canada's total annual exportation is about #afj1jjj1jjj4 ,of this over one third goes to the ,united ,states4 ,canada's total trade with the ,united ,states is about forty one per cent4 of her total trade with all countries1 and almost equal to her total trade with ,great ,britain4 ,canada's total trade with the ,united ,states is exceeded only by that of ,great ,britain1 ,germany1 and ,france1 and her import trade with the ,united ,states is exceeded only by that of ,great ,britain and ,germany4 ,illustration3 ,trade centres of ,canada and trunk railway lines4 ,,canadian ,,cities ,,montreal 7#bej1jjj7 is the commercial metropolis of ,canada4 ,it is situated on an island in the ,st4 ,lawrence ,river1 and1 though #ajjj miles from the open ocean1 the largest sea-going vessels reach its wharves with ease4 ,it is the headquarters of ,canada's two great railways--the ,canadian ,pacific system1 with its #hjjj miles of road1 and the ,grand ,trunk system1 with its #ejjj miles of road4 ,through passenger-trains run from ,montreal to ,vancouver on the ,pacific coast1 a distance of nearly #cjjj miles4 ,montreal is the centre also of the great inland navigation system of ,canada4 ,,toronto 7#bjj1jjj71 the capital of the province of ,ontario1 is the second city of ,canada4 ,while ,toronto has a great local trade and many important manufactures1 it is specially noted as an educational centre4 ,,quebec 7#hj1jjj7 is the oldest city of ,canada and one of the oldest upon the continent4 ,,halifax 7#ej1jjj71 the eastern terminus of the ,canadian railway system1 has one of the finest harbours in the world4 ,,winnipeg 7#ce1jjj7 is destined to be the centre of the great inland trade of ,canada4 ,,xiii4 ,,the ,,trade ,,features ,,of ,,the ,,united ,,states ,,the ,,character ,,of ,,our ,,export ,,trade ,having reviewed the industrial and trading conditions of the other great commercial nations of the world1 it should now remain for us to review these conditions in the ,united ,states4 ,but the ,united ,states is so large a country1 and its trading and industrial interests are so diversified and extensive1 that it would be impossible for us in the limits of our space even barely to touch upon all these interests4 ,so that with respect to the ,trade ,features of the ,united ,states we shall simply confine ourselves to one part of the subject--namely1 the character1 extent1 and importance of our foreign trade4 ,and we shall1 further1 have to restrict ourselves in the main to our exports4 ,these will be found to be principally not manufactures1 but the products of our great agricultural1 mining1 and forest industries4 ,the total value of the manufactures of the ,united ,states amounts in round numbers to the immense sum of #aj1jjj1jjj1jjj annually1 a sum considerably more than a third 7it is thirty five per cent47 of the total value of the annual manufactures of the world4 ,but only a very small portion of this vast output is exported4 ,the greater portion of it is used to sustain the still vaster internal trade of our country1 a trade which amounts to more than #ae1ejj1jjj1jjj annually1 an amount not far short of being one third of the total internal trade of the world1 and not far short of being twice the internal trade of ,great ,britain and ,ireland1 the country whose internal trade comes next to ours4 ,our exports1 therefore1 are not in the main manufactured goods1 but breadstuffs1 provisions1 and raw materials1 the production of our farms1 our plantations1 our forests1 and our mines4 ,but principally they are the products of our farms and our plantations1 for with the exception of cotton we do not export much raw material4 ,nearly all the raw material we produce 7other than cotton7 we use in our own manufactures4 ,and even this is not enough1 for in addition we have to import considerable quantities of raw material for our manufactures from other countries1 the principal items being raw sugar1 raw silk1 raw wool1 chemicals of various kinds including dye-stuffs1 hides and skins1 lumber1 tin1 nickel1 and paper stock4 ,,our ,,export ,,trade ,,in ,,detail ,our total exportation for the twelve months ended ,june #cj1 #ahih1 amounted to the unprecedented sum of nearly #a1bej1jjj1jjj 7#a1bca1cbi1iej74d ,this is an amount almost a quarter of a billion dollars greater than ever before1 the only years when the export even approximated this amount being #ahig and #ahib1 when the exportation was slightly over a billion dollars in each case4 ,of this exportation the sum of #hee1jjj1jjj1 or seventy one per cent4 of the whole1 was for the ,,products ,,of ,,agriculture1 the principal items being 7#a7 breadstuffs1 including wheat and wheat flour1 corn and cornmeal1 oats and oatmeal1 rye and rye flour1 #cce1jjj1jjj2 7#b7 cotton1 #bca1jjj1jjj2 7#c7 provisions1 including beef and tallow1 bacon and hams1 pork and lard1 oleomargarine1 and butter and cheese1 #aff1jjj1jjj2 7#d7 animals1 including cattle1 horses1 sheep1 and hogs1 #dg1jjj1jjj2 7#e7 raw tobacco1 #bc1jjj1jjj2 7#f7 oil-cake1 #ab1ejj1jjj1 and 7#g7 fruits and nuts1 #i1jjj1jjj4 ,the exports of the products of our mines amounted to only #a4f per cent4 of the total export1 or scarcely #bj1jjj1jjj1 the principal items being 7#a7 coal and coke1 #ab1ejj1jjj2 7#b7 crude petroleum1 #d1jjj1jjj1 and 7#c7 copper ore4 ,the exports of the products of the forest amounted to only three per cent4 of the total export1 or #ch1jjj1jjj1 the principal items being 7#a7 sawed and hewn timber1 logs1 lumber1 shingles1 and staves1 #bh1ejj1jjj1 and 7#b7 naval stores1 including resin1 tar1 turpentine1 and pitch1 #i1jjj1jjj4 ,the exports of the products of our fisheries amounted to only #d1ejj1jjj1 or less than one half of one per cent4 of the total exports4 ,the exports of the products of our manufactures1 according to the official returns1 amounted to #bhi1jjj1jjj1 or twenty four per cent4 of the total export4 ,but this sum included many items which represent raw natural products converted merely into material for subsequent manufacture1 as1 for example1 pig- and bar-iron1 planed boards1 sole leather1 ingot- and bar-copper1 cotton-seed oil1 and pig- and bar-zinc4 ,the principal items in the true manufactures list are 7#a7 machinery1 including metal-working machinery1 steam-engines and locomotives1 electrical machinery1 pumping machinery1 sewing-machines1 typewriting-machines and printing-presses1 and railway rails1 hardware1 and nails1 #fe1jjj1jjj2 7#b7 refined petroleum1 #ej1jjj1jjj2 7#c7 manufactures of cotton1 #ag1jjj1jjj2 7#d7 vegetable oils and essences1 #ab1jjj1jjj2 7#e7 agricultural implements1 #g1jjj1jjj2 7#f7 cycles1 #g1jjj1jjj2 7#g7 paper and stationery1 #e1ejj1jjj2 7#h7 furniture and other manufactures of wood1 #e1jjj1jjj2 7#i7 tobacco and cigarettes1 #e1jjj1jjj2 7#aj7 fertilisers1 #d1ejj1jjj2 7#aa7 boots and shoes1 harness1 and rubber shoes1 #c1ejj1jjj2 7#ab7 telegraph1 telephone1 and other instruments1 #c1jjj1jjj2 7#ac7 bags1 cordage1 and twine1 #b1ejj1jjj2 7#ad7 books and pamphlets1 #b1ejj1jjj2 7#ae7 sugar1 syrup1 molasses1 candy1 and confectionery1 #b1jjj1jjj2 7#af7 spirits1 including brandy and whisky1 #b1jjj1jjj2 and 7#ag7 clocks and watches1 #b1jjj1jjj4 ,,footnote3 #d ,for the year ending ,june #cj1 #ahii1 the total exportation amounted to #a1bjd1abc1acd4 ,,our ,,exports ,,and ,,those ,,of ,,great ,,britain ,,compared ,the significance of these figures descriptive of our export trade will be better understood from a few comparisons4 ,our total exportation for the year #ahig-h was1 as said before1 in round numbers1 #a1bej1jjj1jjj4 ,for the year previous it was over #a1jjj1jjj1jjj4 ,the exportation of ,great ,britain for the year #ahif was #a1ejj1jjj1jjj4 ,for the year #ahig it was almost the same amount4 ,for the year #ahie it was #a1dej1jjj1jjj4 ,but whereas our exportation of breadstuffs1 provisions1 animals1 fruit1 etc41 and of raw materials1 such as cotton1 lumber1 ores1 etc41 amounts to probably #gg or #gh per cent4 of our total exportation1 while our exportation of manufactured goods amounts to not more than #bb or #bc per cent41 the exportation of breadstuffs1 provisions1 raw material1 etc41 which ,great ,britain makes is not more than one sixth1 or #ag per cent41 of her total exportation1 while her exportation of manufactured goods is five sixths1 or #hc per cent41 of her total exportation4 ,for example1 ,great ,britain's export of textiles alone amounts to over #ejj1jjj1jjj a year 7for #ahif #ebf1fdg1ebe71 while our total export of textiles1 including cottons1 woollens1 silks1 and fibres1 is not more than #ai1jjj1jjj a year4 ,great ,britain's total export of hardware and machinery amounts to over #bej1jjj1jjj a year2 our total export of these articles does not amount to more than a third of this sum4 ,on the other hand1 ,great ,britain's total export of raw materials of all sorts is not more than #ajj1jjj1jjj a year1 while ours of cotton alone is almost two and one-third times that sum4 ,and while ,great ,britain exports no breadstuffs or provisions to speak of1 our exportation of these articles 7including animals7 amounts to the enormous sum of #hee1jjj1jjj a year4 ,,our ,,imports ,,and ,,those ,,of ,,great ,,britain ,,compared ,illustration3 ,export trade of the ,united ,states and ,great ,britain compared4 ,similar differences with respect to our import trade and that of ,great ,britain are observable4 ,our imports do not amount to more than from #fjj1jjj1jjj to #hjj1jjj1jjj a year4 ,for the year ended ,june #cj1 #ahig1 they were #gfe1jjj1jjj4 ,for the year ended ,june #cj1 #ahih1 they were #faf1jjj1jjj4 ,the imports of ,great ,britain1 on the other hand1 amount to over #b1jjj1jjj1jjj a year4 ,for the year #ahif they were #b1baj1jjj1jjj4 ,for the year #ahig they were #b1bbe1jjj1jjj4 ,but1 while our imports1 with the exception of coffee1 sugar1 tea1 fruits1 and fish1 consist chiefly of manufactured articles1 such as woollen goods1 cotton goods1 silk goods1 and iron and steel goods1 with only moderate amounts of raw material 7for example1 hides1 skins1 and furs1 #da1jjj1jjj2 raw silk1 #cb1jjj1jjj2 raw wool1 #ag1jjj1jjj71 ,great ,britain1 besides importing coffee1 sugar1 tea1 fruits1 and fish1 the same as we do1 and manufactured goods to a far greater amount than we do 7not less than #ejj1jjj1jjj annually71 imports likewise an enormous quantity of raw material for her manufactures1 all duty free1 and a still more enormous quantity of breadstuffs1 provisions1 etc41 also all duty free4 ,for example1 for the year #ahig her imports of raw materials for her manufactures were not less than #gej1-jjj1jjj1 while her imports of duty-free food products were not less than #hbe1jjj1jjj4 ,the difference between the two countries1 therefore1 so far as their foreign trades are concerned is simply this3 ,the ,united ,states is an immense exporter of food-stuffs1 and also of raw materials for foreign manufacture2 but for the raw materials for her own manufacture she depends principally upon her own products4 ,in comparison she is only a moderate exporter of manufactured goods4 ,great ,britain1 on the other hand1 is an enormous importer and consumer of food-stuffs and also of raw materials for her manufactures4 ,she1 in fact1 depends very largely upon other countries for her food products and her raw materials1 and obtains them wherever she can1 very largely from the ,united ,states4 ,she is also an enormous exporter of manufactures4 ,illustration3 ,the ,united ,states manufactures and internal trade compared with the manufactures and internal trade of all other countries4 ,,our ,,cotton ,,production ,,and ,,cotton ,,export ,the one article of export that is of greatest importance in our commerce is ,,cotton4 ,the production of cotton in the ,united ,states is enormous4 ,it is not far short of #e1jjj1jjj1jjj pounds per annum4 ,this is probably four times the amount produced upon the whole globe elsewhere4 ,our export amounts annually to about #d1jjj1jjj1jjj pounds1 with a total value of about #bdj1jjj1jjj4 ,our greatest competitors in the world's cotton markets are ,egypt and ,india4 ,the export of cotton from ,egypt amounts to #ej1jjj1jjj annually4 ,the export of cotton from ,india amounts to #de1jjj1jjj annually4 ,at least one half of our export of cotton goes to ,great ,britain4 ,our next greatest customers are 7in order7 ,germany1 ,france1 ,italy1 ,spain1 and ,russia4 ,we send about #g1ejj1jjj worth annually to ,japan1 and #d1jjj1jjj worth annually to ,canada4 ,all our southeastern ,states produce cotton1 but the ,states that produce it most plentifully are 7in order7 ,texas 7about one third of the whole71 ,georgia1 ,mississippi1 and ,alabama4 ,the area under cultivation in the whole country is about #ba1jjj1jjj acres1 which is about one sixth of the area devoted to corn1 wheat1 and oats1 or one half the area devoted to hay4 ,the areas of greatest cotton production are 7#a7 the ,yazoo bottom1 a strip on the left bank of the ,mississippi extending from ,memphis to ,vicksburg1 and 7#b7 the upper part of the right bank of the ,tombigbee4 ,the productivity of cotton is much higher in the ,united ,states than it is in ,india1 averaging not far short of #bjj pounds per acre1 as against less than #ajj pounds in ,india4 ,in ,india1 however1 the cotton crop has been grown on the same soil for ages1 whereas in the ,united ,states the practice is to substitute new soils for old ones as soon as crops begin to fail4 ,on the other hand1 the ,united ,states cotton crop is much less per acre than the crop in ,egypt4 ,there the yield per acre is from #cjj pounds to #ejj pounds4 ,the remedy for this defect of productivity in our cotton crop as compared with that of ,egypt is manuring4 ,where the manuring is properly attended to our cotton crop is comparable with ,egypt's4 ,but the cotton of ,egypt is of better quality than the great mass of the cotton crop of the ,united ,states 7the upland cotton crop74 ,on the other hand in the low1 flat islands off the coast of ,georgia and ,south ,carolina a species of cotton grows 7sea-island cotton7 which is the finest in the world1 its fibres being the longest1 finest1 and straightest1 of all cotton fibres produced anywhere1 and the most beautiful in appearance in the mass4 ,of this sea-island cotton about three to four million dollars' worth is exported annually at a price averaging from two and one fourth to two and three fourth times the value per pound of the upland cotton4 ,the great cotton ports of our country are 7in order of amount of exportation7 ,,new ,,orleans1 ,,galveston1 ,,savannah1 ,,new ,,york1 ,,charleston1 ,,mobile1 and ,,wilmington4 ,new ,orleans' export is about a third of the whole1 and ,galveston's about a fifth4 ,,our ,,production ,,and ,,export ,,of ,,breadstuffs ,the item in the official returns that figures largest for exports is that which is set down as ,,breadstuffs4 ,this term includes wheat1 corn1 oats1 rye1 and other grains1 and the flours or meals made from these4 ,for the year ending ,june #cj1 #ahih1 our total export of breadstuffs was #ccd1jjj1jjj4 ,this is an enormous increase over the year before1 when the amount was not quite #bjj1jjj1jjj4e ,a large part of this increase was due to the high prices for breadstuffs which prevailed in the ,european markets during the past autumn and winter1 but a part of the increase was due to an increased acreage and to good crops4 ,the main products that composed this vast exportation were3 wheat1 #adf1jjj1jjj2 wheat flour1 #gj1jjj1jjj2 corn1 #ge1jjj1jjj2 cornmeal1 #b1jjj1jjj2 oats and oatmeal1 #bb1ejj1jjj2 rye and rye flour1 #i1jjj1jjj1 and barley1 #e1ejj1jjj4 ,the magnitude of our breadstuffs exportation can be judged from the magnitude and importance of our exports of wheat and flour as compared with those of other countries4 ,our average ,,wheat ,,export is two and one half times that of ,russia1 four and one third times that of ,argentina1 five and one half times that of ,india1 and almost twenty-five times that of ,canada1 while it is also four and one half times that of all other countries in the world combined4 ,our ,,flour ,,export 7#gj1jjj1jjj7 is without a rival4 ,the export from ,canada is now not much more than #a1ejj1jjj a year1 and the export from ,hungary not more than #b1ejj1jjj a year1 and these are the only countries with which we have to compete in the western ,european markets4 ,still it must be remembered that ,hungarian flour1 owing to the dryness of the climate in which it is made1 is the best in the world1 while the flour of ,canada made from ,manitoba hard wheat is alike unsurpassed4 ,as a rule much more than one half of our total exports of breadstuffs goes to ,great ,britain4 ,germany is our next best customer1 but her imports of our breadstuffs are not more that a fifth to a tenth of those of ,great ,britain4 ,france comes next1 but her importation of our breadstuffs is still more uncertain1 ranging from a half to a hundredth of that of ,great ,britain4 ,our other principal customers for our breadstuffs are 7#a7 the other states of ,europe1 7#b7 ,canada1 7#c7 the countries of ,south ,america1 7#d7 the ,west ,indies1 7#e7 ,hongkong1 7#f7 the islands of the ,pacific1 and 7#g7 ,british ,africa4 ,our exportation of breadstuffs to ,japan and ,china 7direct7#f is still inconsiderable4 ,since the close of the ,war of the ,rebellion our exportation of wheat has increased thirtyfold and our exportation of flour fifteenfold4 ,our chief wheat-growing ,states are ,minnesota and ,california1 each with about #ej1jjj1jjj bushels a year2 then ,kansas1 ,north ,dakota1 ,illinois1 and ,south ,dakota1 each with about #cj1jjj1jjj bushels a year2 and then ,ohio1 ,indiana1 ,nebraska1 ,pennsylvania1 ,missouri1 and ,michigan4 ,the best wheat is grown in the deep black soil1 rich in organic matter1 of the ,red ,river valley of ,minnesota1 and in the dry1 sunny climate of ,california4 ,the total yield for #ahig was #ecj1jjj1jjj bushels1 which was about #gj1jjj1jjj bushels more than recent averages4 ,the estimate for this year 7#ahih7 is over #fjj1jjj1jjj bushels1 which was also the yield for #ahia4 ,the total area sown to wheat was for several years about #ce1jjj1jjj acres1 but the average is now increased to about #dj1jjj1jjj acres4 ,large as is the gross production of our wheat1 however1 the yield per acre is somewhat small1 being only from #ab to #ac bushels as against #ah bushels in ,ontario1 #bj in ,manitoba1 #bf-a_/b in ,new ,zealand1 and #cj in ,great ,britain4 ,in fact1 the wheat yield per acre is lowest in the ,united ,states of all the great wheat-producing countries of the world1 except ,australia 7#g to #aa-a_/b71 ,italy 7#aj-a_/b71 ,germany 7#aj-a_/d71 ,india 7#i-a_/d71 and ,russia 7#h74 ,but far greater than our production of wheat is our production of ,,corn4 ,of corn we have nearly #he1jjj1jjj acres under cultivation and a production of nearly #b1ejj1jjj1jjj bushels4 ,our export of corn1 however1 is proportionately not large1 and figures only to about #baj1jjj1jjj bushels a year1 with a value 7including cornmeal7 of about #gf1jjj1jjj4 ,as is well known1 ,,chicago is the great commercial centre of the continent for breadstuffs4 ,,new ,,york is the great port of export for the ,atlantic seaboard1 ,,san ,,francisco for the ,pacific seaboard4 ,,duluth is the great receiving point for the wheat of the ,red ,river valley and the northern ,mississippi4 ,,buffalo is the great point where the wheat brought down from ,chicago1 ,duluth1 etc41 in barges1 whale-backs1 and immense propellers1 is trans-shipped to the small boats of the ,erie ,canal for carriage to ,new ,york4 ,,minneapolis is the great milling point of the continent1 its mills being the largest and most capacious in the world4 ,,footnotes3 #e ,for the year ending ,june #cj1 #ahii1 the amount was #bgd1jjj1jjj4 #f ,a portion of the exportation of breadstuffs made to ,hongkong is no doubt intended for consumption in ,china and ,japan4 ,,our ,,export ,,of ,,provisions ,,and ,,animals ,illustration3 ,principal articles of domestic exports of the ,united ,states4 7,for the year ended ,june #cj1 #ahih47 ,the next most important item in our list of exports is ,,provisions4 ,but1 like breadstuffs1 provisions also is a composite term1 including two main divisions1 meat products and dairy products4 ,practically there are three main divisions1 beef products1 hog products1 and dairy products4 ,we have in these great products of our country an export trade of #afe1ejj1jjj per annum1 and if we add animals1 a similar item1 we have #df1ejj1jjj more1 or a total of #bab1jjj1jjj per annum4 ,our export of fresh beef is nearly #cjj1jjj1jjj pounds a year4 ,almost the whole of this goes to ,great ,britain4 ,our export of canned beef runs from #dj1jjj1jjj to #fj1jjj1jjj pounds a year4 ,about three fifths of this goes to ,great ,britain1 the remainder going principally to ,germany and other parts of ,europe and to ,british ,africa4 ,we have about #ej1jjj1jjj cattle upon our farms and ranches1 and our production of beef is estimated to be the enormous amount of #e1djj1jjj1jjj pounds a year1 which is between a third and a fourth of the total quantity produced throughout the world4 ,of course the greater portion of this is retained for our own home consumption1 for we eat more meat per inhabitant than any other people in the world except the ,english4 ,in addition to our beef we export about #djj1jjj cattle annually1 more than seven eighths of which are taken by ,great ,britain1 our other principal customers being the ,west ,indies and ,canada4 ,the principal export1 however1 among our provisions is our ,,hog ,,products4 ,we export annually of these products #ajj1jjj1jjj pounds of pork1 #hej1jjj1jjj pounds of bacon and hams1 and #gjj1jjj1jjj pounds of lard1 with a value greater than #aaj1jjj1jjj4 ,as with our beef products1 so with our hog products--by far the greatest share goes to ,great ,britain4 ,great ,britain1 however1 does not import largely of our pork or of our lard4 ,and though she purchases from us over four fifths of our total export of bacon and hams1 she does not pay for them so much as she does for the bacon and hams of ,ireland1 ,denmark1 and ,canada4 ,the reason for this is that as a rule our corn-fed bacon and hams are too fat--a fault that could be easily remedied4 ,after ,great ,britain our next best customers for our hog products are ,germany 7principally in lard71 the ,netherlands1 ,sweden1 and the ,west ,indies 7the latter principally in pork74 ,we keep on our farms from #dj1jjj1jjj to #ej1jjj1jjj hogs1 and our production reaches nearly to #d1fjj1jjj1jjj pounds of pork1 bacon1 hams1 lard1 etc41 per annum4 ,a great drawback to our swine-raising industry is the terrible swine plague which so frequently devastates our swine herds4 ,were this plague stamped out by thorough preventive measures our swine industry would soon become very much larger and more profitable4 ,the third principal item in our provisions export trade is dairy produce4 ,our export of butter now amounts to #cj1jjj1jjj pounds a year4 ,our cheese export1 once much greater1 is now about #ej1jjj1jjj pounds a year4 ,as in our beef products and in our hog products so again in our dairy products ,great ,britain is our chief customer4 ,but our butter export to ,great ,britain is only one twelfth of her total importation of butter1 and our cheese export to ,great ,britain is only about one eighth of her total importation of cheese4 ,our cheese has lost its hold on the ,english market because of its relative deterioration of quality1 and its export is not more than a half or a third of what it once was4 ,much of our butter also is not suited to the ,english taste4 ,but both our cheese and our butter are now improving in quality4 ,our great competitor in the cheese export trade is ,canada4 ,canada's export of cheese to ,great ,britain is #ae1jjj1jjj annually1 while ours is only a fifth of that amount4 ,our great competitor in butter is ,denmark4 ,denmark's export of butter to ,great ,britain is #cb1jjj1jjj while ours is not more than a fourteenth of that sum4 ,our competitors in the markets of ,britain for cattle are ,canada and ,argentina1 but their exports together1 however1 are less than a third of ours4 ,our competitors in the ,british markets for the sale of meats are principally the ,australasian colonies and ,argentina1 but their principal exportation so far is chilled mutton1 which they send to ,britain to the amount of many million dollars annually 7,argentina alone #e1jjj1jjj a year1 ,new ,zealand alone #aj1jjj1jjj a year71 while our exportation of mutton is practically nil4 ,we do1 however1 export #a1jjj1jjj worth of sheep a year1 but in this item we are frequently far exceeded by ,canada4 ,,chicago is1 of course1 the great commercial centre of the continent for provisions and live stock1 and ,,new ,,york the great shipping port4 ,of the entire export trade of the whole country ,new ,york does two fifths4 ,,baltimore comes next with about one ninth4 ,then 7in order7 come ,,philadelphia1 ,,boston1 and ,,new ,,orleans4 ,the chief centres of our great provision and live-stock trade1 other than ,chicago1 are ,,cincinnati1 ,,kansas ,,city1 ,,indianapolis1 ,,buffalo1 and ,,omaha4 ,,our ,,foreign ,,carrying ,,trade ,one aspect of our foreign trade is not so well understood as it ought to be4 ,our foreign commerce is carried on largely in foreign ships4 ,the reason is that no vessel is allowed to be registered as belonging to a ,united ,states owner unless she is built in the ,united ,states1 and it therefore seems as if our ship-builders could not compete 7in price7 in the building of steel and iron ships with those of ,great ,britain and ,germany4 ,formerly1 when wooden ships were used1 our foreign trade was carried on in our own vessels1 and our clipper sailing vessels beat the world4 ,in #ahei seventy per cent4 in value of our foreign trade was carried in ,american vessels4 ,since that date the proportion has decreased steadily until in #ahif-ig it was only eleven per cent41 and for #ahig-ih it was even less than this4 ,during the five years #ahha-he it averaged barely twenty per cent4 ,taking into consideration tonnage only the proportion at present varies from twenty five to thirty per cent41 showing that the ,american vessels are used for carrying the cheaper sorts of goods4 ,the aggregate tonnage burden of vessels belonging to the ,united ,states registered as engaged in the foreign trade #ahif was for #gib1hgj tons4 ,for the same year the aggregate tonnage burden of vessels belonging to ,great ,britain engaged in the foreign trade was considerably more than ten times that amount4 ,of our export trade to ,europe ,united ,states vessels carry only five and one half per cent41 and of our export trade to ,africa only four and one half per cent4 ,but of our export trade to ,asia and ,oceanica our own vessels carry twenty six and one half per cent41 while of our export trade to other countries on the ,american continent our own vessels carry nearly forty per cent4 ,but as our ,atlantic trade is seventy six per cent4 of the whole1 and as our trade elsewhere than on the ,atlantic is more than one third carried by sailing-vessels1 it is evident how largely our steamship ocean carrying trade has been allowed to fall into the hands of foreigners4 ,seven tenths of our total export trade1 and nearly two thirds of our total foreign trade1 both export and import1 are carried in ,british vessels4 ,the next greatest carriers of our foreign trade are1 first1 the ,germans1 then ourselves1 then the ,norwegians1 then the ,dutch1 then the ,french1 then the ,belgians4 ,,examination ,,papers ,,note4--,the following questions are given for the purpose of indicating to the student the sort of knowledge he ought to be possessed of after he has made a careful study of the papers of the course4 ,the student is recommended to write out carefully the answers to the questions asked4 ,only such answers need be attempted as can be made from a careful study of the papers4 ,,part ,i #a4 ,,great ,,britain4 ,give as full an account as you can of the causes which have made ,london the great commercial centre of the world4 #b4 ,,great ,,britain4 ,england is said to be a beehive of mercantile and manufacturing industry4 ,give reasons for this statement and also show how ,england has become such4 #c4 ,,great ,,britain4 7a7 ,describe the foreign trade of ,great ,britain4 7b7 ,describe the steps taken by ,liverpool1 ,manchester1 and ,glasgow to improve their natural facilities for external trade4 #d4 ,,france4 7a7 ,describe the conditions which 7#a7 conduce toward1 and 7#b7 militate against1 ,france's being a great commercial nation4 7b7 ,give an account of the distinctive manufactures of ,france4 #e4 ,,germany4 7a7 ,give an account of what ,germany has accomplished in technical education4 7b7 ,compare ,germany and ,france as commercial nations4 7c7 ,give a brief account of ,germany's foreign trade4 #f4 ,,spain ,,and ,,italy4 7a7 ,why are ,spain1 ,italy1 and ,turkey sometimes called the three decadent nations of ,europe8 7b7 ,give some account of ,spain's foreign trade4 7c7 ,give an account of the conditions that militate against ,italy's prosperity as a trading nation4 #g4 ,,russia4 7a7 ,describe the social condition of the ,russian people4 7b7 ,what are the artels of ,russia8 7c7 ,describe ,russia's export trade4 #h4 ,,india4 7a7 ,describe the present condition of the manufactures of ,india4 7b7 ,give a brief account of ,india's trade--7#a7 external1 7#b7 internal4 #i4 ,,china4 7a7 ,give an account of ,china's size1 population1 and trade resources4 7b7 ,give an account of ,china's present foreign trade4 7c7 ,give an account of the trade possibilities of ,china1 and show in what manner an increase of the foreign trade of ,china is most likely first to occur4 #aj4 ,,japan4 7a7 ,describe the transformation which in recent times has been witnessed in the ,japanese nation4 7b7 ,describe ,japan's manufactures4 7c7 ,show in what respects an increase in the foreign trade of ,japan is presently possible4 ,,part ,,ii #a4 ,,africa4 7a7 ,describe the partition of ,africa4 7b7 ,describe more particularly ,great ,britain's possessions in ,africa4 7c7 ,describe ,south ,africa's mineral wealth4 #b4 ,,australia4 7a7 ,describe ,australia's peculiarities4 7b7 ,enumerate the political divisions of ,australia1 and for each describe briefly 7#a7 its climate1 7#b7 its resources and trade4 #c4 ,,south ,,america4 7a7 ,describe the social and political condition of the various peoples of ,south ,america4 7b7 ,describe the agricultural resources and export trade of ,argentina4 7c7 ,describe 7#a7 the resources1 and 7#b7 the export and import trade1 of ,brazil4 #d4 ,,canada4 7a7 ,describe ,canada's resources 7#a7 in forest wealth1 7#b7 in minerals1 7#c7 in fisheries4 7b7 ,describe ,canada's agricultural trade4 7c7 ,describe ,canada's trade with the ,united ,states4 #e4 ,,the ,,united ,,states4 7a7 ,describe the export trade of the ,united ,states4 7b7 ,compare our export trade with that of ,great ,britain4 7c7 ,compare our import trade with that of ,great ,britain4 #f4 ,,the ,,united ,,states4 7a7 ,describe our cotton production and our cotton export trade4 7b7 ,describe briefly our export trade in breadstuffs4 7c7 ,describe briefly our export trade in provisions and animals4 ,,finance1 ,,trade1 ,,and ,,transportation#h ,i4 ,,national ,,and ,,state ,,banks ,,origin ,,of ,,banking ,,institutions ,illustration3 ,the ,bank of ,england1 showing the ,threadneedle ,street entrance4 ,the world has had its bankers and money-changers for thousands of years4 ,babylonian tablets have been found which record banking transactions which took place in the reign of ,nebuchadnezzar4 ,modern banking institutions1 however1 had their origin in the twelfth century4 ,the first institution of this character in ,europe was the ,bank of ,venice1 founded ,a4 ,d4 #aaga4 ,it was based upon a forced loan of the republic4 ,funds deposited in it could not be withdrawn1 but were transferable on the books at the pleasure of the owners4 ,the ,bank of ,genoa was founded in #adjg1 and for many years was one of the principal banks of ,europe4 ,it was the first to issue circulating notes2 these were negotiable only by indorsement--that is to say1 they were not made payable to bearer4 ,this was a long step in advance of the earlier system of deposit transfers which was also employed by this bank4 ,the ,bank of ,amsterdam1 established in #afjg1 was the earliest considerable institution of the kind which looked to the promotion of commerce4 ,the ,bank of ,hamburg1 established in #afai1 was a bank of deposit and circulation based upon fine silver bars4 ,the deposits were confined to silver4 ,the ,bank of ,england is more than #bjj years old and is to-day acknowledged to be the greatest financial institution in the world4 ,nearly all the paper money of ,england is issued by this bank4 ,this currency is based partly upon securities and partly upon deposits of coin4 ,there are three or four banks in the ,united ,states more than one hundred years old4 ,in #agha ,robert ,morris1 then superintendent of finance1 submitted to ,congress a plan for the establishment of the ,bank of ,north ,america at ,philadelphia4 ,in #aghd the ,state of ,massachusetts incorporated the ,massachusetts ,bank4 ,the ,bank of ,new ,york was chartered in #agia4 ,,footnote3 #h ,,suggestions ,,as ,,to ,,method ,,of ,,study #a4 ,read the lessons as printed very carefully4 ,the aim will be to give fundamental knowledge as to the organisation and conduct of modern business4 #b4 ,books will not be necessary4 ,the student1 however1 who wishes to make a more thorough study of the national banking system will find excellent chapters on the subject in ,carroll's ,principles and ,practice of ,finance 7,new ,york3 ,putnams7 and ,white's ,money and ,banking 7,boston3 ,ginn ,co474 #c4 ,take up the papers of the course paragraph by paragraph and ask yourself the reason why each is introduced4 ,discuss with your friends the advantages or disadvantages of particular requirements4 ,,our ,,national ,,banking ,,system ,the national banking system of the ,united ,states was established by an act of ,congress in #ahfc1 revised in #ahfd1 and amended by later legislation4 ,the great advantage of the system1 it is said1 is the feature of uniformity1 the fact that it brings the banking business of the whole ,united ,states under one authority and under the supervision of one set of administrative officers4 ,the note-issuing department is subordinate in its public usefulness to the facilities afforded by banks and clearing-houses for the interchange of credits4 ,the essential features of national banks are briefly set forth as follows3 #a4 ,there is a bureau of the ,treasury ,department having charge of all matters relating to national banks1 the chief officer of which is the comptroller of the currency4 #b4 ,any number of persons1 not less than five1 may form an association for banking purposes1 to continue not more than twenty years1 but renewable for twenty years with the approval of the comptroller4 #c4 ,the powers of the bank are limited to the discounting of promissory notes1 drafts1 bills of exchange1 and other evidences of debt2 receiving deposits1 dealing in exchange1 coin1 and bullion1 loaning money on personal security1 and issuing circulating notes4 ,it cannot hold real estate except such as may be necessary for the transaction of its business1 or such as may have been taken as security for debts previously contracted in good faith4 #d4 ,there can be no national banks anywhere of less capital than #ej1jjj1 and these small ones are restricted to places of not more than #fjjj inhabitants4 ,in cities of more than #fjjj and less than #ej1jjj inhabitants there can be no bank of less than #ajj1jjj capital1 and in cities of #ej1jjj inhabitants or more none of less than #bjj1jjj4 ,one half of the capital must be paid in before the bank can begin business and the remainder must be paid in monthly instalments of at least ten per cent4 each4 #e4 ,shareholders are liable for the debts of the bank to an amount equal to the par value of their shares in addition to the amount invested therein4 #f4 ,each bank having a capital exceeding #aej1jjj must deposit in the treasury of the ,united ,states registered interest-bearing bonds to an amount not less than #ej1jjj4 ,those having a capital of #aej1jjj or less must deposit bonds equal to one fourth of their capital stock4 ,each bank may issue circulating notes to the amount of ninety per cent4 of the market value of the bonds deposited by it1 but not exceeding ninety per cent4 of the par value of the same1 and not exceeding ninety per cent4 of the paid-in capital of the bank2 but no bank is compelled to issue circulating notes4 ,no bank-notes shall be issued smaller than #e4 ,the notes are receivable at par for all dues to the ,united ,states except duties on imports1 and are payable for all debts owing by the ,united ,states within the ,united ,states except interest on the public debt and in redemption of the national currency4 #g4 ,every bank in certain designated cities1 called reserve cities1 must keep a reserve of lawful money equal to twenty five per cent4 of its deposits4 ,all other banks must keep a like reserve of fifteen per cent41 but three fifths of the said fifteen per cent4 may consist of balances on deposit in banks approved by the comptroller in the reserve cities4 #h4 ,each bank must keep on deposit in the treasury of the ,united ,states lawful money equal to five per cent4 of its circulation as a fund for redeeming the same4 ,this five per cent4 may be counted as part of its lawful reserve4 ,this does not relieve banks from the duty of redeeming their notes at their own counters on demand4 #i4 ,one tenth of the net profits must be carried to the surplus fund until it is equal to twenty per cent4 of the capital4 #aj4 ,a bank must not lend more than one tenth of its capital to one person1 corporation or firm1 directly or indirectly1 nor lend money on the security of its own shares1 nor be the purchaser or holder of its own shares unless taken as security for a debt previously contracted in good faith1 and if so taken they must be sold within six months under penalty of being put in liquidation4 #aa4 ,each bank must make to the comptroller not less than five reports each year1 showing its condition at times to be designated by him1 and he may call for special reports from any particular bank whenever he chooses to do so4 #ab4 ,each bank must pay to the treasurer of the ,united ,states a tax equal to one per cent4 per annum on the average amount of its notes in circulation4 ,the shares are liable to taxation by the ,states in which they are situated at the same rate as other moneyed capital owned by the citizens of such ,states4 #ac4 ,any gain arising from lost and destroyed notes inures to the benefit of the ,united ,states4 #ad4 ,the comptroller has the absolute appointment of all receivers and fixes their compensation4 ,all moneys realised from the assets are paid into the treasury to the credit of the comptroller1 and all dividends are paid out by him4 #ae4 ,over-certification of cheques is strictly prohibited1 rendering officers or clerks liable to imprisonment4 #af4 ,national bank directors are by law individually liable for the full amount of losses resulting from violations of the national banking laws4 ,,state ,,banks ,upon the establishment of the national banking system the greater number of the banks incorporated under the laws of the several ,states were organised as national banks4 ,with others1 however1 the rights of issue did not outweigh some inconveniences of the national system1 and as a result there is now an important class of banks1 and loan and trust companies1 organised under ,state legislation and carrying on a deposit and loan business4 ,the regulations under which they work are necessarily diverse1 and the amount of public supervision over them varies in different states4 ,the ,state banks in existence when the national banking system was organised were obliged to retire their note circulation1 owing to the fact that the government imposed a tax of ten per cent4 on their circulation4 ,the object of the tax was to secure the retirement of the ,state bank-notes to make room for the circulation of the national banks4 ,the internal mechanism of ,state banks differs but slightly from that of national banks4 ,,ii4 ,,savings ,,banks ,,and ,,trust ,,companies ,,savings ,,banks ,nearly #b1jjj1jjj1jjj is deposited in the savings banks of the ,united ,states4 ,this large sum represents the savings of about #e1jjj1jjj people4 ,the primary idea of a savings bank and of the post-office and other forms of saving institutions in foreign countries is to encourage thrift among the masses of the people4 ,the older savings banks1 especially those in the eastern ,states1 have no capital stock4 ,that is to say1 they are mutual in their form of organisation4 ,their capital is the accumulated deposits of a large number of people4 ,the depositors are the owners4 ,when taxes and other expenses are paid and a proper reserve set aside1 the remaining profits go in the form of interest to the depositors4 ,many of the savings banks in the western ,states are capitalised as are other financial institutions1 and on the ,pacific coast they have capital stock or its equivalent in the form of a reserve fund in which the majority of the depositors are not interested otherwise than so far as it affords security for their deposits4 ,as these banks are the custodians of the surplus savings of large numbers of people the laws of the several ,states have hedged them about with many safeguards1 not only for the protection of the depositors but of the institutions themselves4 ,it is eminently right and proper that the ,state1 through its bank commissioners or otherwise1 should so far supervise the operations of savings banks as to see that they perform their part of their contract with depositors4 ,safety1 at best1 is relative only2 there is no absolute safety for the twenty-dollar piece a man has in his pocket1 whether he is on the street1 at his office1 or by his own fireside4 ,we are reminded that 'riches take to themselves wings' and that 'thieves break through and steal4' ,no savings bank can keep money on hand or deposit it or loan it with absolute safety4 ,all is comparative4 ,it is a peculiarity of money that each dollar requires watching2 general supervision is insufficient2 hence it is that the safety of moneyed institutions depends upon the capacity and honesty of those in control1 and not upon adherence to arbitrary rules4 ,no set of rules can be adopted that will bind dishonest men nor that will compensate for want of experience and ability of honest ones4 ,there is really no conflict between commercial and savings banks4 ,in fact1 a large number of the commercial banks of a country allow interest upon average balances and standing deposits in the same manner as savings banks4 ,primarily the savings bank creates wealth1 while the commercial bank handles it2 the savings banks are creative1 while the commercial banks are administrative4 ,the aim of the savings bank is to gather money and invest it safely and thus bring profit to the depositor2 the aim of the commercial bank is to lend money at fixed charges and thus bring profit to the institution4 ,the former opens its doors to savers1 the latter to borrowers4 ,one serves by receiving and keeping and the other by lending4 ,the savings bank aims at making men savers as well as producers4 ,it offers the aid of the strong1 who can manage well1 to the weak and inexperienced4 ,if the #e1jjj1jjj depositors of savings in the ,united ,states were to hide away their own savings nearly #b1jjj1jjj1jjj would be withdrawn from circulation4 ,the savings bank invests its money4 ,its managers are as a rule intelligent men1 competent to make safe investments in solid securities4 ,the best savings banks are conservative and do not encourage speculation4 ,the rules and regulations of savings banks differ largely4 ,in some institutions deposits of a dime at a time are accepted2 in others a dollar is the limit4 ,deposits usually begin to draw interest on the first day of each quarter1 but they are entitled to it only if they remain until the end of the half-year4 ,thus money deposited on the #ast of ,january is entitled to six months' interest on the #ast of ,july1 though it is not entitled to any interest if withdrawn in ,june4 ,some few banks allow interest to begin on the #ast of each month4 ,most savings banks do not permit money to be withdrawn short of thirty days' notice4 ,students of this course who are interested in securing definite information upon this subject regarding any particular bank should apply to that bank for a set of its rules and regulations for the information of depositors4 ,,trust ,,companies ,there has grown up in this country a class of financial institutions which take a sort of middle ground between the commercial bank and the savings bank1 so far as their service to the public is concerned4 ,these are what are known as trust companies4 ,national banks are prohibited by law from making loans on real estate1 and though ,state banks are not hedged in this way1 as a matter of good banking they usually avoid loans of this character4 ,the policy of commercial banks is to make a great many comparatively small loans on short-time paper1 while that of the trust company is to make large loans on long-time securities4 ,the deposits of trust companies consist largely of undisturbed sums such as might be set aside by administrators1 executors1 trustees1 committees1 societies1 or from private estates4 ,they are such as are not likely to fluctuate greatly in amount4 ,from the very nature of their deposits trust companies find it convenient and profitable to make larger loans and at longer periods than do ordinary banks4 ,trust companies not only receive moneys upon deposit subject to cheque and for savings1 and loan money on commercial paper and other securities1 as do commercial banks2 but they also act as agents1 trustees1 executors1 administrators1 assignees1 receivers for individual properties1 and corporations4 ,they frequently assist as promoters or reorganisers of corporations and in the sale of stocks1 bonds1 and securities4 ,they act also as agents for the payment of obligations maturing at future dates1 such as the premiums on insurance1 interest on mortgages and bonds1 etc4 ,trust companies are organised under the laws of the ,state in which they exist and are usually subject to all the supervision required in the case of ,state banks4 ,,iii4 ,,corporations ,,and ,,stock ,,companies#i ,,corporations ,stock companies are usually referred to as corporations1 though all corporations are not stock companies4 ,a corporation is a body consisting usually of several persons empowered by law to act as one individual4 ,there are two principal classes--7#a7 public corporations and 7#b7 private corporations4 ,public corporations are not stock companies2 private corporations usually are4 ,public corporations are created for the public interest1 such as cities1 towns1 universities1 hospitals1 etc42 private corporations1 such as railways1 banks1 manufacturing companies1 etc41 are created usually for the profit of the members4 ,corporate bodies whose members at discretion fill by appointment all vacancies occurring in their membership are sometimes called close corporations4 ,,power ,,to ,,be ,a ,,corporation ,,is ,a ,,franchise ,in the ,united ,states the power to be a corporation is a franchise which can only exist through the legislature4 ,there are two distinct methods in which corporations may be called into being3 ,first1 by a specific grant of the franchise to the members1 and1 second1 by a general grant which becomes operative in favour of particular persons when they organise for the purpose of availing themselves of its provisions4 ,when the specific grant is made it is called a charter4 ,in the case of private corporations the charter must be accepted by the members1 since corporate powers cannot be forced upon them against their will2 but the charter is sufficiently accepted by their acting under it4 ,when special charters are not granted individuals may voluntarily associate1 and by complying with the provisions of certain ,state laws may take to themselves corporate powers4 ,in some of the ,states private corporations are not suffered to be created otherwise than under general laws1 and in others public corporations are created in the same way4 ,,footnote3 #i ,for a preliminary treatment of the subject of this lesson the student is referred to ,part ,i4 of this book1 entitled ,general ,business ,information1 especially ,lessons ,,xii4 and ,,xv4 ,a ,,corporation ,,must ,,have ,a ,,name ,a corporation must have a name by which it shall be known in law and in the transaction of its business4 ,the name is given to it in its charter or articles of association and must be adhered to4 ,the necessity for the use of the corporate name in the transaction of business follows from the fact that in corporate affairs the law knows the corporation as an individual and takes no notice of the constituent members4 ,,corporate ,,interests ,in municipal corporations in the ,united ,states the members are the citizens2 the number is indefinite2 one ceases to be a member when he moves from the town or city1 while every new resident becomes a member when by law he becomes entitled to the privileges of local citizenship4 ,in corporations created for the emolument of their members interests are represented by shares1 which may be transferred by their owners1 and the assignee becomes entitled to the rights of membership when the transfer is recorded2 and if the owner dies his personal representative becomes a member for the time being4 ,in such corporations also shares may be sold in satisfaction of debts against their owners4 ,,advantages ,,of ,,corporations ,,and ,,joint-,,stock ,,companies ,,over ,,partnerships ,the following are given as a few of the advantages which are claimed for corporations and joint-stock companies over partnerships3 #a4 ,union of capital without the active service of the investors4 #b4 ,better facilities for borrowing4 ,it is a common thing for a partnership to be changed to a stock company for the express purpose of raising money by the issue of bonds or stock4 #c4 ,limited agency of directors4 ,a partner may pledge and sell the partnership property1 may buy goods on account of the partnership1 may borrow money and contract debts in the name and on the account of the partnership4 ,directors of a joint-stock company must act in accordance with the provisions of the by-laws of the company4 #d4 ,the continuous existence of a company4 #e4 ,new shareholders are admitted more easily than new partners4 #f4 ,a retiring partner is still liable for existing debts4 ,a shareholder may retire absolutely by selling his stock and having it legally transferred4 ,,iv4 ,,borrowing ,,and ,,loaning ,,money#aj ,,the ,,money ,,market ,money1 like other articles of commerce1 has for hundreds of years had its fields for the production of the raw products1 its manufacturing establishments1 its markets and exchange centres1 its sellers and buyers1 its wholesale and retail dealers1 and its brokers and commission merchants4 ,out of this trade in actual coin has grown a trade in paper notes1 which are really only promises to pay coin1 and out of this latter trade has grown up during recent years a still further enormous trade in securities representing all kinds of property4 ,very often these securities are based solely upon the credit of the names attached to them1 so that our modern system of borrowing and loaning money is really a system of borrowing and loaning credit4 ,when our government borrows #ajj1jjj1jjj1 as it did a few years ago1 it gives its bond that the money will be paid4 ,when ,states1 or cities1 or railroads1 or other corporations borrow money they issue bonds guaranteeing payment at a particular time4 ,when an individual borrows money he gives his bond in the form of a promissory note4 ,these bonds pass from hand to hand and have a fairly constant value in the money market4 ,they really represent the money trade to a much larger extent than does actual coin1 so that the borrowing or loaning of money really means1 to a very large extent1 simply the borrowing or loaning of credit4 ,if we borrow a #aj gold piece we borrow money2 if we borrow a #aj bill or an indorser's name for the back of our note we simply borrow credit--in the one instance the credit of the ,united ,states and in the other the credit of the man who indorses our paper4 ,,footnote3 #aj ,the student is also referred to ,part ,i4 7,general ,business ,information71 ,lesson ,,ix4 ,,borrowing ,,from ,,banks ,it is the business of a bank to loan money to responsible persons within reasonable limits4 ,the regular customer of the bank is entitled to and will receive the first consideration if the demand is larger than the bank can safely meet4 ,a business man should not hesitate1 when occasion requires1 to offer his bank any paper he may want discounted1 if in his opinion it is good1 nor should he be offended if his banker refuses to take it even without giving reasons4 ,a portion of the loans of many banks consists of investments in solid bonds1 but the bulk of the loans of banks is made on commercial paper4 ,time and demand loans are made upon collaterals of many descriptions4 ,the larger banks loan on an average from #ej1jjj to #ajj1jjj a day4 ,banks discount paper for their depositors--and simply term the operation discounting2 but when they go outside of their line of depositors in making investments in time paper they call it buying paper4 ,they generally buy from private bankers and note brokers4 ,national banks are prohibited from loaning over ten per cent4 of their capital to any one individual or corporation except upon paper representing actually existing merchandise4 ,,what ,,are ,,collaterals8 ,if a business man borrow #ajjj from a bank on his note and give ten shares of stock to the bank1 to be held by it simply as security1 the stock thus given would be termed collateral4 ,these collaterals are not the bank's property and the bank is responsible for their safe keeping4 ,if coupons mature while bonds are being held as collateral1 the owners are usually allowed to collect the amount for which they sell4 ,sometimes one note is given as collateral security for another which is discounted4 ,,accommodation ,,paper ,notes and acceptances that are made in settlement of genuine business transactions come under the head of regular1 legitimate business paper4 ,an accommodation note or acceptance is one which is signed or indorsed or accepted simply as an accommodation and not in settlement of an account or in payment of an indebtedness4 ,with banks accommodation paper has a deservedly hard reputation4 ,however1 there are all grades and shades of accommodation paper1 though it represents no actual business transaction between the parties to it and rests upon no other foundation than that of mutual agreement4 ,no contract is good without a consideration1 but this is only true between the original parties to a note4 ,the third party1 or innocent receiver or holder of a note1 has a good title and can recover its value even though it was originally given without a valuable consideration4 ,an innocent holder of a note which had been originally lost or stolen has a good title to it if he received it for value1 the law justly protecting such a holder against the fault or carelessness of others4 ,,note ,,brokers ,merchants sell a great many of their notes in the open market--that is1 to note brokers4 ,the banks buy these notes from the note brokers4 ,the assistance of the broker who handles commercial paper is a necessary and valuable aid to the purchasing bank4 ,fully three fourths of all the paper purchased by banks in large cities is purchased upon the simple recommendation of the note brokers4 ,as a rule these brokers simply transfer the paper without guaranteeing by indorsement its payment4 ,notes bought by banks from note brokers without their indorsement are held to be guaranteed by them to be all right in all points except that which covers the question of whether they will be paid or not4 ,the bank uses its best judgment in taking the risk4 ,if the note dealer in selling notes to a bank makes what he believes to be fair and honest representations regarding any particular paper--statements of such a straightforward type that upon them no charge of false pretenses can be made to rest--he simply guarantees the note genuine as to names1 date1 amount1 etc41 and that in selling it he conveys a good title to the paper4 ,as business men1 however1 they are very cautious and are exceedingly anxious that the paper they sell shall be paid1 and as a rule they make good any losses which grow out of apparent misrepresentations on their part4 ,,bankers' ,,rates ,,for ,,loans ,in loaning money on demand1 when it is strictly understood between bank and borrower that the money so advanced is positively minute money--money returnable at any minute when the bank calls for it--banks usually charge low rates of interest4 ,when interest rates are high bankers prefer to deal in long-time paper4 ,this general rule is reversed when the situation is reversed4 ,bankers aim also to scatter and locate their maturities so that as the seasons roll around they will not have very large amounts maturing at one time and very small amounts at another4 ,they plan also to be in funds at those seasons when there is always a large and profitable demand for money4 ,for instance1 in the centres of the cotton-manufacturing interest the banks count on a large demand for money between ,october and ,january1 when the bulk of the purchases to supply the mills are made4 ,again1 among those who operate and deal in wool there is an active demand for money in the wool-clip in the spring months4 ,the wheat and corn crops are autumn consumers of money4 ,midwinter and midsummer in the north are usually periods of comparative stagnation in the money market4 ,all these things affect rates1 and the successful banker is he who from observation and large experience shows the most skill in timing his money supply4 ,v4 ,,collaterals ,,and ,,securities ,,two ,,distinct ,,classes ,,of ,,securities ,there are two distinct classes of mortgage securities--one class based upon the actual value and the other upon the earning value of the property4 ,when a man lends money upon a dwelling-house he bases his estimate of security upon 7#a7 the cost of the property1 7#b7 its location1 7#c7 the average value of adjoining properties1 and 7#d7 the general character of the locality2 that is to say1 the value of the property is the basis of the security4 ,on the other hand1 the lender of money upon railway mortgages1 for instance 7that is1 the buyer of securities known as railway mortgages71 considers the general earnings of the road rather than the cost of building and equipping the road as the correct basis upon which to estimate the value of the security4 ,these two classes of securities differ in other particulars4 ,the value of the mortgage upon ordinary real estate is constant and the security itself is not so likely to change ownership1 while the value of the railway mortgage may vary with the success or failure of the road1 and the security itself is in the market constantly as a speculative property4 ,the whole property of a railroad company1 considered simply as real estate and equipment1 is usually worth but a small fraction of the amount for which it is mortgaged4 ,the creditors1 as a rule1 depend for the security of their money upon the business of the company4 ,we have already learned that collaterals are mortgages1 stocks1 bonds1 etc41 placed temporarily in the hands of lenders as additional security for money borrowed4 ,the student will note1 further1 that the borrowing value of such securities depends very largely upon the character of the property represented4 ,,mortgages ,,as ,,securities ,a ,,mortgage is a conveyance of property for the purpose of securing debt1 with the condition that if the debt is paid the conveyance is to become void4 ,a mortgage in form is really a deed of the land1 with a special clause stating that the grant is not absolute but only for the security of the debt4 ,it is usual for the debtor at the time of executing the mortgage to execute also a bond or promissory note in favour of the creditor for the amount of the debt4 ,this is called a ,,mortgage ,,note4 ,mortgages are frequently given in cases where there is a debt existing to secure or indemnify the mortgagee against some liability which he may possibly incur on behalf or for the benefit of the mortgagor4 ,for instance1 when a man has indorsed another's note for the latter's accommodation or gone on his bond as surety the latter may execute to the former a mortgage of indemnity4 ,the power of a corporation to mortgage its property is usually regulated by its character or by the general law under which it is organised4 ,all mortgages must be recorded in the office of the register of deeds for the county in which the property is located4 ,the object of recording is to give notice of the existence of the mortgage to any one who might wish to purchase the land or to take a mortgage upon it4 ,there may be several mortgages upon the same property4 ,the first mortgagee is entitled to be paid in full first1 then the second1 and so on4 ,the mortgagee may use his mortgage as security for loans or he may assign it as he pleases4 ,when the requirements of a mortgage are not met the holder has under certain conditions the right to ,,foreclose--that is1 to advertise the property for sale and1 within a time fixed by law1 to sell it to satisfy the mortgage4 ,it is usual for the mortgagor to insure the property for the benefit of the mortgagee4 ,although the terms of corporation mortgages are similar to those on real estate such as is represented by dwelling-houses1 the commercial conditions make it inconvenient or impossible to foreclose and sell such properties4 ,to stop all business of a railway or to shut down the work of a manufacturing concern would not only result in injury to the public but would reduce largely the earning value of the property4 ,to overcome this difficulty where an active concern is financially embarrassed1 the court appoints a receiver1 who is responsible for the proper conduct of the business until a satisfactory reorganisation or sale is accomplished4 ,mortgages upon improved property1 if properly graduated in amount1 should be safe and profitable investments4 ,the buyer1 however1 must exercise great care and good judgment4 ,should there be collusion between the loaning agent and the land-owner1 the money advanced may be largely in excess of the actual property value4 ,villages with less than a dozen houses are often the sites of investment companies doing business under pretentious names and offering mortgage investments at interest rates which by the local conditions are impossible4 ,one of the devices of these enterprising companies is to offer their own guarantees as to both principal and interest of all mortgages negotiated by them4 ,the investor should be sure of two things3 7#a7 ,the safety of the principal1 and 7#b7 regularity in the payment of the interest4 ,there is great danger of default from causes not anticipated by the mortgagor and over which he has no control4 ,,stocks ,,as ,,securities ,to make a profitable investment in stocks the buyer must anticipate the future4 ,a mill that may be working day and night this year may be obliged to shut down entirely next year4 ,a business which is open to public competition must take its chances on its future success4 ,the greater the earnings1 the more certain the competition4 ,many corporations owning monopolies by virtue of patent rights have made large fortunes1 but there is always the possibility of new discovery4 ,electricity has succeeded gas2 the telephone is competing with the telegraph2 the trolley is cutting into the profits of railways4 ,a good thing in stocks to-day does not necessarily mean a good thing next year4 ,railroad stocks are of such varied character that it is impossible here to make more than general statements4 ,many of our railroad stocks bring prices far above par and pay liberal interest on investments4 ,some of them are so profitable that they are really not on the market and cannot easily be bought4 ,others represent roads loaded down with mortgages and other obligations so heavy as to make the stock really a liability rather than a resource to its owner4 ,the stock quotations represent in a general way the comparative value of these securities4 ,of recent stock electric-railway stock is the most popular and in many instances the most profitable4 ,the introduction of electric power has reduced the working expense one half and in most instances has doubled the traffic without any reduction in fares4 ,the buyer should make sure that the road is in a busy community able to sustain it1 that its franchise will protect it from dangerous competition1 and that the securities have been legally issued4 ,,substitution ,,securities ,there have recently been formed several large companies whose business it is to issue bonds on the security of other bonds4 ,the idea is similar to that of real-estate title insurance4 ,such companies are supposed to have superior facilities for investigating securities4 ,they purchase those which they consider good and at the best prices possible4 ,these they deposit with some trust company or banking institution4 ,with these bonds which they buy as their original property they issue new bonds of their own1 which they sell to the public and which they guarantee4 ,the differences in prices and in interest make up their profits4 ,,loans ,,and ,,investments ,with the growth of wealth we find increasing numbers of persons who want to invest their means in good securities4 ,to do this successfully and safely is a very difficult question4 ,it is even more difficult to keep money profitably employed than to make it4 ,changes and innovations are of continual occurrence4 ,not only are new securities constantly coming upon the market1 but new subjects as a basis of their production are industriously sought after4 ,every newly discovered force or process in mechanics means the appearance of another detachment of paper securities4 ,the ,war of the ,rebellion popularised the coupon bond1 in consequence of its adoption by the government1 and made it the favourite form of investment paper4 ,railroads and other corporations soon availed themselves of the confidence which that species of paper inspired1 and ,states1 cities1 and counties were soon flooding the country with obligations carrying long coupon attachments4 ,many persons have purchased and paid good prices for mortgage coupon bonds1 giving them no control over their security1 who would have rejected share certificates standing for an equal interest in the property pledged and giving them the right to participate in its management1 with the possibility of a greater return for their money4 ,many of the ,states through careless legislation have permitted corporations to decide for themselves the amounts of obligations they might put out1 and the privilege has been very much abused4 ,we now have stocks and bonds upon the market representing nearly all conceivable kinds of property--telegraph and telephone companies1 mining companies1 cattle ranches1 grain farms1 water-works1 canals1 bridges1 oil- and gas-wells1 electric lighting1 trolley companies1 factories and mills1 patent rights1 steamboat lines1 apartment-houses1 etc4 ,not only are properties of many kinds used to issue bonds upon1 but many kinds of bonds are often issued upon the same properties4 ,one issue of bonds is sometimes made the basis of other issues4 ,some one has said that there never was a time in the history of the world when it was so easy to invest money--and to lose it4 ,of the securities that are offered with first-class recommendations it is probable that about one third are actually good1 one third have some value1 and one third are practically worthless4 ,in making investments the first and main thing to be studied is safety4 ,never buy a security of any kind without having read it4 ,do not buy what are commonly known as cheap securities4 ,do not rely solely upon the advice of a broker2 he may have personal interest to serve4 ,by far the greater number of losses to investors have been in securities purchased exclusively on the recommendation of interested commission men4 ,it is a mistake to give preference to listed securities--that is1 those reported on the stock-exchange lists4 ,stocks are too often listed simply for speculative purposes1 and the price represents not so much the value of the property as the pitch of the speculation at the time4 ,securities in the long run must stand upon their merits4 ,as a rule the best time for an experienced investor to buy is when others are unloading4 ,,vi4 ,,cheques1 ,,drafts1 ,,and ,,bills ,,of ,,exchange#aa ,,bank ,,cheques ,illustration3 ,showing cheque raised from #g4ej to #gj4ej4 ,a ,,cheque is an order for money1 drawn by one who has funds in the bank1 payable on demand4 ,banks provide blank cheques for their customers and it is a very simple matter to fill them out properly4 ,in writing in the amount begin at the extreme left of the line4 ,the illustrations given here show a poorly-written cheque and a copy of the same cheque after it has been raised4 ,the original cheque was for #g4ej and shows very careless arrangement4 ,it was a very easy matter for the fraudulent receiver to change the seven to seventy and to add a cipher to the amount in figures4 ,the running line was written in on the raised cheque to deceive the bank4 ,in this case ,mr4 ,carter and not the bank must suffer the loss4 ,mr4 ,carter cannot hold the bank responsible for his carelessness4 ,drawers of cheques should exercise the greatest care in writing in the amount to prevent changes or additions4 ,draw a running line1 thus3 ,nine before and after the amount written in words4 ,if the words are commenced close to the left margin the running line will be necessary only at the right4 ,the signature should be in your usual style familiar to the paying teller4 ,the plain1 freely written signature is the most difficult to forge4 ,usually cheques are drawn to order4 ,the words ,pay to the order of ,john ,brown mean that the money is to be paid to ,john ,brown or to any person he orders it paid to4 ,by indorsing the cheque in blank 7see indorsements7 he makes it payable to bearer4 ,if a cheque is drawn ,pay to bearer any person--that is1 the bearer--can collect it4 ,the paying teller may ask the person cashing the cheque to write his name on the back1 simply to have it for reference4 ,safety devices to prevent the fraudulent alteration of cheques are of almost endless variety1 but there has not been a preventive against forgery and alterations yet invented1 which has not been successfully overcome by swindlers4 ,a machine for punching out the figures is in common use1 but the swindler has successfully filled in the holes with paper-pulp and punched other figures to suit his purposes4 ,the safest cheques are those carefully written upon what is known as safety paper4 ,,footnote3 #aa ,a part of the matter of this lesson has already appeared in ,part ,i4 of this book 7,general ,business ,information71 but it is here repeated to preserve the connection4 ,,identification ,,when ,,cheques ,,are ,,paid ,the banks of this country make it a rule not to cash a cheque that is drawn payable to order unless the person presenting the cheque is known at the bank--or unless he satisfies the paying teller that he is really the person to whom the money is to be paid4 ,it must be remembered1 however1 that a cheque drawn to order and then indorsed in blank by the payee is really payable to bearer1 and if the paying teller is satisfied that the payee's signature is genuine he probably will not hesitate to cash the cheque4 ,in ,england all cheques apparently properly indorsed are paid without identification4 ,in drawing a cheque in favour of a person not likely to be well known in banking circles1 write his address or his business after his name on the face of the cheque4 ,for instance1 if you should send a cheque to ,john ,smith1 ,boston1 it may possibly fall into the hands of the wrong ,john ,smith2 but if you write the cheque in favour of ,john ,smith1 #hdi ,tremont ,street1 ,boston1 it is more than likely that the right person will collect it4 ,if you wish to get a cheque cashed where you are unknown1 and it is not convenient for a friend who has an account at the bank to go with you for the purpose of identification1 ask him to place his signature on the back of your cheque and it is likely you will not have trouble in getting it cashed4 ,by placing his signature on the back of the cheque he guarantees the bank against loss4 ,a bank is responsible for the signatures of its depositors1 but it cannot be supposed to know the signatures of indorsers4 ,the reliable identifier is in reality the person who is responsible4 ,,cheques ,,for ,,special ,,purposes ,if you wish to draw money from your own account the most approved form of cheque is written ,pay to the order of cash4 ,this differs from a cheque drawn to bearer4 ,the paying teller expects to see you yourself or some one well known to him as your representative when you write cash4 ,if you write ,pay to the order of 7your own name7 you will be required to indorse your own cheque before you can get it cashed4 ,if you wish to draw a cheque to pay a note write ,pay to the order of bills payable4 ,if you wish to write a cheque to draw money for wages write ,pay to the order of pay-roll4 ,if you wish to write a cheque to pay for a draft which you are buying write ,pay to the order of ,n4 ,y4 draft and exchange1 or whatever the circumstances may call for4 ,,cheque ,,indorsements ,in indorsing a cheque remember that the left end of the face is the top when you turn it over4 ,write your name as you are accustomed to write it4 ,if you are depositing the cheque1 a blank indorsement--that is1 an indorsement with simply your name--will answer2 or you can write or stamp ,pay to the order of 7the bank in which you deposit7 and follow with your signature4 ,either indorsement makes the cheque the absolute property of the bank4 ,if you wish to transfer the cheque by indorsement to some particular person write ,pay to the order of 7naming the person7 and follow with your own signature2 or you may simply write your name on the back4 ,the latter form would be considered unwise if you were sending the cheque through the mail1 for the reason that a blank indorsement makes the cheque payable to bearer4 ,an authorised stamped indorsement is as good as a written one4 ,whether such indorsements are accepted or not depends upon the regulations of the clearing-house in the particular city in which they are offered for deposit4 ,,the ,,numbering ,,of ,,cheques ,illustration3 ,a certified cheque4 ,cheques should be numbered1 so that each can be accounted for4 ,the numbers are for your convenience and not for the convenience of the bank4 ,it is important that your cheque-book be correctly kept1 so that you can tell at any time how much money you have in the bank4 ,at the end of each month your small bank-book should be left at the bank1 so that the bookkeeper may balance it4 ,it may happen that your bank-book will show a larger balance than your cheque-book4 ,you will understand by this1 if both have been correctly kept1 that there are cheques outstanding which have not yet been presented at your bank for payment4 ,you can find out which these are by checking over the paid cheques that have been returned to you with your bank-book4 ,the unpaid cheques may be presented at any time1 so that your actual balance is that shown by your cheque-book4 ,cheques should be presented for payment as soon after date as possible4 ,,certified ,,cheques ,illustration3 ,a bank draft4 ,if you wish to use your cheque to pay a note due at some other bank than your own1 or in buying real estate or stocks or bonds you may find it necessary to get your cheque certified4 ,this is done by an officer of the bank1 who writes or stamps across the face of the cheque the words ,certified or ,good when properly indorsed and signs his name4 7,see illustration1 p4 #bdd47 ,the amount will immediately be deducted from your account1 and the bank by guaranteeing your cheque becomes responsible for its payment4 ,if you should get a cheque certified and then not use it deposit it in your bank1 otherwise your account will be short the amount for which it is drawn4 ,,bank ,,drafts ,illustration3 ,a bill of exchange4 ,nearly all banks keep money on deposit in other banks in large commercial centres--for instance1 in ,new ,york or ,chicago4 ,they call these banks their ,new ,york or ,chicago correspondents4 ,a bank draft is simply the bank's cheque drawing upon its deposit with some other bank4 7,see illustration1 p4 #bde47 ,banks sell these cheques to their customers1 and merchants make large use of them in making remittances from one part of the country to another4 ,these drafts or cashiers' cheques1 as they are sometimes called1 pass as cash anywhere within a reasonable distance of the money centre upon which they are drawn4 ,,bills ,,of ,,exchange ,a draft on a foreign bank is commonly called a bill of exchange4 ,bills of exchange are usually drawn in duplicate and sometimes in triplicate4 7,see illustration1 p4 #bdf47 ,only one bill is collected1 the others simply serving in the meantime as receipts4 ,these bills are used to pay accounts in foreign countries1 just as drafts on ,new ,york or ,chicago are used to pay indebtedness at home4 ,,vii4 ,,the ,,clearing-,,house ,,system#ab ,,the ,,clearing-,,house ,,system ,a ,,modern ,,institution ,the clearing-house is a comparatively modern institution1 the ,edinburgh bankers claiming the credit of establishing the first one4 ,the earliest clearing-house of whose transactions we have any record is that of ,london1 founded about #agge4 ,for fully seventy-five years the ,london clearing-house and that of ,edinburgh were the only organisations of the kind known to exist4 ,the monetary systems of most ,european countries centring around one great national bank located at the capital of each1 found in this a means of effecting mercantile settlements4 ,the ,new ,york clearing-house was established in #ahec1 from which date the ,american clearing-house system has grown to enormous proportions4 ,no country in the world has so large a need of clearing-houses1 for in no country is the bank cheque so generally used in the payment of ordinary accounts4 ,,transfer ,,of ,,credits ,,in ,,clearing-,,houses ,the purpose of the clearing-house is largely to facilitate the transfer of credits4 ,this is explained by the following illustration3 ,suppose that ,brown and ,smith keep their money on deposit in ,bank ,a and that ,brown gives ,smith his cheque for #ajj and ,smith deposits it in the bank to his 7,smith's7 credit4 ,the officers of the bank will subtract #ajj from ,brown's account and add the same amount to ,smith's account4 ,no actual money need be touched4 ,it is simply a matter of arithmetic and bookkeeping4 ,credit has been transferred from ,brown to ,smith4 ,if all the people of a city kept their money in one central bank there would be no need of a clearing-house4 ,the bookkeepers of the bank would be kept busy transferring credits from one customer to another on the books of the bank4 ,but if ,brown keeps his money in ,bank ,a and ,smith keeps his money in ,bank ,b it is necessary that ,bank ,a and ,bank ,b come together somewhere to conveniently make the credit transfer1 and this is practically what they do in the clearing-house4 ,then1 again1 if ,bank ,a should be located in ,san ,francisco and ,bank ,b in ,boston1 the difficulty of transfer of credit is greatly increased4 ,through the agency of clearing-houses located in money centres and of co-operation between banks at distant points1 the transfer of credits between business men located anywhere in the ,united ,states1 or for that matter in the world1 has become a comparatively simple matter4 ,if it were not for the agency of this system it would be utterly impossible for a great city to do the business of a single day4 ,all the actual money in all the banks and stores and safes and pockets of ,new ,york ,city to-day would fall far short if used to pay to-day's transactions4 ,it is estimated that the cash transactions of a single day are fifty times greater than the actual cash changing hands in one day4 ,so that the great bulk of the business of the country1 both cash and credit1 is done on a system of credit transfers made possible wholly through the agency of our banking system4 ,,footnote3 #ab ,see also ,lesson ,,viii4 of ,part ,i4 of this book 7,general ,business ,information74 ,,organisation ,,of ,,clearing-,,houses ,each large city has its clearing-house system4 ,to establish a clearing-house a number of banks associate themselves together1 under certain regulations1 for the purpose of exchanging daily at one time and place the cheques and other commercial paper which they hold against each other4 ,the usual officers are a president1 a secretary1 a treasurer1 and manager1 and a clearing-house committee4 ,the cheques1 etc41 which the banks take to the clearing-house are called the clearing-house exchanges1 and the total amount of paper exchanged is called the day's clearings4 ,those banks which bring a less amount than they take away are obliged to make the difference good in cash or its equivalent within a fixed time upon the same day4 ,suppose1 for illustration1 that a clearing-house association consists of five banks--,a1 ,b1 ,c1 ,d1 and ,e--and that ,bank ,a took to the clearing-house cheques against ,b1 ,c1 ,d1 and ,e amounting to #bj1jjj1 and that ,b1 ,c1 ,d1 and ,e took to the clearing-house cheques against ,a amounting to #ba1jjj4 ,then ,a is on this particular day a debtor bank1 and owes the clearing-house1 or the other banks through the clearing-house1 #ajjj4 ,the payment of the balances by the debtor banks and the receipt of the balances by the creditor banks complete each day's transactions4 ,as the total amount brought to the clearing-house is always the same as the amount taken away1 so the balances due from the debtor banks must be exactly equal to the amounts due the creditor banks4 ,the clearings in ,new ,york ,city in one day amount to from #ajj1jjj1jjj to #bjj1jjj1jjj1 and the actual cash handled1 if any1 need only be for the actual debit balances4 ,usually once a week 7in some cities oftener7 the banks of a city make to their clearing-house a report1 based on daily balances1 of their condition4 ,the clearing-house establishes a fellowship among banks that has already proved in times of money panics of the greatest service to themselves and the community4 ,,payment ,,of ,,balances ,,in ,,clearing-,,houses ,clearing-house certificates are made use of in many cities for the payment of balances by debtor banks4 ,these are issued against gold deposited with one of the associated banks4 ,they are numbered1 registered1 and countersigned by the proper officer1 and are used only in settlements between the banks4 ,various methods of making settlements are in use4 ,in some of the cities the balances are paid by drafts on ,new ,york or other money centres4 ,the debtor bank sells some creditor bank ,new ,york exchange1 and receives in return a cheque or order on the clearing-house1 which when presented makes the debits and credits balance4 ,it is estimated that the actual cash employed in ,new ,york clearings is less than one half of one per cent4 of the balances4 ,,how ,,distant ,,banks ,,are ,,connected ,,by ,,the ,,clearing-,,house ,,system ,illustration3 ,illustrating cheque collections4 ,to illustrate the connection between banks at distant points let us suppose that ,b of ,haverhill1 ,mass41 who keeps his money on deposit in the ,first ,national ,bank of that city1 sends a cheque to ,s of ,waconia1 ,wis41 in payment of a bill4 ,s deposits the cheque in the ,farmers' ,bank of ,waconia and receives immediate credit for it in his bank-book1 just the same as though the cheque were drawn upon the same or a near-by bank4 ,the ,farmers' ,bank deposits the cheque1 with other cheques1 in1 say1 the ,first ,national ,bank of ,minneapolis1 or it may send the cheque to its correspondent in ,new ,york--say the ,ninth ,national--asking to be credited with the amount4 ,for sake of illustration1 suppose that the cheque is deposited with the ,first ,national of ,minneapolis4 ,now1 this bank has a correspondent in ,chicago--the ,commercial ,national--and a correspondent in ,new ,york--the ,national ,bank of the ,republic4 ,if sent to the ,commercial ,national1 this bank has a correspondent in ,boston--the ,eliot ,bank1 where the cheque would be sent4 ,now1 the ,first ,national of ,haverhill has a correspondent in ,boston--the ,national ,revere ,bank4 ,the ,eliot ,bank would likely take this cheque to the ,boston clearing-house as a charge against the ,revere ,bank4 ,the ,revere ,bank would deduct the amount from the ,first ,national of ,haverhill's deposit and send the paid cheque to the ,haverhill ,bank1 where at the close of the month it would be handed to ,b1 showing on the back the indorsement of ,s1 and stamping representing all the banks through whose hands it passed4 ,if the ,farmers' ,bank of ,waconia had sent direct to its ,new ,york correspondent1 the ,ninth ,national1 this bank would have sent to its ,boston correspondent1 the ,north ,national1 and the cheque would have been charged up through the clearing-house against the ,revere ,bank4 ,if the ,first ,national of ,minneapolis had sent direct to its ,new ,york correspondent1 the ,national ,bank of the ,republic1 this bank would have sent to its ,boston correspondent1 the ,shawmut ,national1 etc4 ,as a rule1 banks collect by whatever route seems most convenient or advantageous4 ,it is estimated that millions of dollars are lost to the banks each year on account of the time consumed by cheques en route4 ,,viii4 ,,commercial ,,credits ,,and ,,mercantile ,,agencies ,,how ,,the ,,world',s ,,trade ,,is ,,largely ,,transacted ,,upon ,,credit ,it is estimated that about ninety per cent4 of the world's trade is transacted upon credit4 ,and in no country of the world are commercial credits so freely granted as in the ,united ,states4 ,this is a land of seemingly unlimited faith in humanity1 and yet a land in which hazardous speculation1 extravagance1 and bankruptcy have often prevailed4 ,statistics show that about ninety-five per cent4 of our merchants fail to succeed1 and yet no other country can boast of such wealth1 industrial energy1 and generous confidence in business integrity4 ,while credit is not money1 in that it cannot settle a debt1 it must be considered a very powerful agent in the creation of capital4 ,credit is another name for trust4 ,the business world bases its confidence or trust in men upon their character and resources4 ,and the extent of this trust becomes the only limitation of the business man's purchasing power4 ,he who can show conclusively the ability and disposition to fulfil obligations1 has it within his power to command the capital or merchandise of others4 ,credit is one of the fruits of a higher civilisation and a settled condition of a country's business4 ,it bespeaks a quality of government1 too1 that is not to be depreciated4 ,the nations that are most successfully and equitably governed and show the most stable conditions of currency also show us the most extensive and efficient credit systems4 ,it is abundantly true that these same nations have on many occasions passed through periods of great distress from failures widespread and panics severe1 but it must also be borne in mind that these very bankruptcies are more often the abuse of prosperity than the product of adversity4 ,over-confidence in men and things has resulted in speculation and precipitated bankruptcy4 ,and if it be urged that to the undue expansion of credit is traceable the greater number of our financial disasters1 it may be said with still greater force that all our impetus to industrial achievement has been and still is dependent upon the generous exercise of credit4 ,the construction of our railroads and canals1 the operation of our mines1 the improvement of our great farm areas1 the building of our towns and cities1 and the development of our extensive manufacturing interests are all the result of the trust reposed in men and the industrial interests they represent4 ,,the ,,importance ,,of ,a ,,high ,,standard ,,of ,,credit ,,to ,,business ,,men ,reticence on the part of business men respecting their financial position may seriously impair their credit4 ,it is universally regarded by the intelligent business man to be good policy to make known his condition4 ,a refusal to do so throws a suspicion and doubt upon his financial ability1 and at some future time when confidence in his integrity may be essential to the very life of his business1 he may find the necessary help unobtainable4 ,an applicant for credit should be willing to prove himself worthy of it4 ,but the keen competition among merchants eager for sales often enables the buyer to obtain credit without the necessity of giving very much evidence as to his commercial standing4 ,since some risks must be taken merchants frequently conclude to accept an account because of its possible acceptance by some competitor4 ,if business is to be had risks must be taken1 is the theory4 ,when former customers apply for credit the merchant is guided by the record made in previous dealings4 ,a business man's ledger is a very valuable history of credits4 ,it is his compass in a sea of doubt4 ,if upon the inspection of an old account it be discovered that in former years the customer paid cash and discounted his bills1 and that later his method of payment was by promissory notes1 and that on several occasions he asked for special favours1 such as dating bills ahead or the privilege of renewal of notes1 one is able to read a certain unmistakable sign of degeneracy in the customer's credit4 ,new orders from such a customer will bear scrutiny2 and a closer attention to the present condition of the account may save the firm from some bad debts4 ,while it is possible to-day to determine the average losses from bad debts in the various lines of business1 individual risks cannot be accepted on that basis4 ,each requires special study4 ,if an applying customer paints his financial condition in roseate colours1 let him be willing to reduce his statement to writing1 and when his signature is affixed his statement is much more reliable1 because he knows of the impending liability of fraud if he has misrepresented4 ,men averse to transforming an oral statement to writing have discredited themselves immediately4 ,men who mean to be honest may be optimistic in picturing prospects and be inclined to set an unreasonable value upon their property and extent of business4 ,it may be easier to tell the absolute truth about one's liabilities1 because they are such persistently real things2 but assets have elastic qualities in many men's minds and seem capable of any extension in an emergency4 ,buyers who impress themselves most favourably upon the business house are frank in their statements4 ,the explicit1 candid man of few words will merit consideration4 ,the cringing or pleading kind predisposes one unfavourably4 ,stephen ,girard said of one who in tears asked for a loan3 ,the man who cries when he comes to borrow will cry when he comes to pay4 ,to determine the right of a buyer to credit and the safe limit of credit to be extended to him is the seller's serious problem4 ,it is customary to request references in order to discover how other firms regard the applicant's credit4 ,but these references may be cautious of reply4 ,a selfish desire to retain the customer for themselves1 or the higher motive of a desire to be true to the interests of both the inquirer and the customer may produce dubious or very incomplete reports4 ,if a bank be among the references one does not place too much stress upon a very favourable reply from it1 because a merchant usually learns the lesson of expediency in making a friend of his banker4 ,and1 moreover1 one endeavours to reveal only the best side of his business affairs to the bank4 ,favourable replies from several firms showing a uniform line of credit go a great way toward reaching a safe conclusion4 ,but in these days of vast and multifarious interests there has developed1 as a result of this desire for adequate knowledge respecting men's credit1 an agency for the exclusive purpose of arriving at definite and reliable evidence upon financial matters2 and after years of experience men have learned to depend upon these mercantile agencies as the most valuable and trustworthy assistants4 ,,mercantile ,,agencies ,mercantile agencies had their origin in the system adopted by several prominent firms of keeping on record all the information obtainable relating to their customers4 ,in #ahda ,the ,mercantile ,agency of ,new ,york ,city began its history1 and was the forerunner of the present great agencies whose record books of credits and ratings include the names of all the business houses and corporations in this country and ,canada4 ,the pioneer institution of this character in the ,united ,states was the one bearing at present the name of ,r4 ,g4 ,dun ,co41 an outgrowth of ,the ,mercantile ,agency of ,new ,york ,city4 ,since #ahfj it has borne the name of ,mr4 ,dun1 who was formerly a partner with ,mr4 ,douglass when the agency was known as ,b4 ,douglass ,co4 ,another popular and influential concern is the one known as ,the ,bradstreet ,company1 familiarly spoken of as ,bradstreet's4 ,besides these two leaders there are many others1 whose reports on credits are limited to particular lines of trade4 ,the larger agencies soon found it necessary to establish branches in all the business sections of the country4 ,a particular field of investigation is allotted to each branch1 and an interchange of information is in constant progress4 ,illustration3 ,a mercantile agency inquiry form4 ,to be a recipient of the valuable information afforded by these agencies business men1 by paying an annual fee1 are enrolled as subscribers and furnished with books of ratings1 as they are called4 ,besides this book special type-written reports with elaborate details respecting a firm's credit are sent upon the request of the subscriber4 ,the volume of information recorded in these agencies concerning any one's credit is obtained through the effort of officials of the agencies known as reporters4 ,these men of experience1 integrity1 and discernment are seekers after truths4 ,usually each reporter has a distinct line of trade assigned him for research and investigation4 ,this brings him into intimate acquaintanceship with every trader in his particular field4 ,he is a constant solicitor of the banker and merchant for facts4 ,his business is not merely to gather information respecting the resources of business men1 but to investigate rumours that in themselves may be detrimental to one's credit1 and to disprove them where possible and sustain and support the credit of a house4 ,too often it is supposed that the reporter is seeking evidences of weakness when in reality his business is most frequently that of discovering elements of strength4 ,information is freely given him as he interviews men whose businesses and experiences are the depositories for a wealth of credit information4 ,he soon becomes a confidant of the merchant himself1 who not only tells him all he knows about the customers and their accounts upon his books1 but his own business affairs as well4 ,indeed1 the relation becomes so very reciprocal that the reporter often furnishes information to the merchant in the interview on some matter of credit of pressing notice4 ,in this way a corroboration of facts or the denial of a rumour may be effected4 ,he inspects the books of the offices of public record to find the evidence of mortgages1 judgments1 and transfers of property1 and have the same recorded on the agency's books4 ,it is the reporter who finally has gathered the information that determines a firm's ability to have and to hold a line of credit4 ,it is essential to the life of the agency that its reports be honest and free from any element of doubt4 ,the public confidence in the reliability of the reports will determine the prosperity of the company4 ,perhaps at first glance it would seem as if the system of reporting financial information was a serious discrimination against the men of smaller capital and in favour of the wealthy4 ,but mere capital is not the only element entering into an estimate of one's ability to pay4 ,character and reputation are powerful forces in assisting a merchant in determining credit4 ,an agency discloses facts and not opinions4 ,and it is within the range of possibility of any one to create and maintain his credit4 ,capital may grow gradually but credit is sometimes established or destroyed by a single act4 ,the facts obtained by mercantile agencies are not public property4 ,they are given in confidence and for the sole purpose of aiding the business with respect to the propriety of granting credit4 ,the private reports are for the eyes of the interested inquirer and not the curious4 ,whenever some particular item of interest finds its way to an agency that would affect one's credit seriously1 such as the giving of chattel mortgage or the confession of a judgment or the sale and transfer of property1 it is customary to send unsolicited a special report of these facts to all subscribers on the agency's books who have ever at any time made inquiry concerning the firm4 ,one might expect that these agencies expose themselves to risk of prosecution for libel1 but since no malice is ever intended in any report circulated1 and since it rarely occurs that damaging reports are sent out by these institutions unless abundantly confirmed1 there is little opportunity for litigation of this sort4 ,another field of usefulness of the mercantile agency is in the exposure of the absconding debtor and his whereabouts1 and also the dishonest trader who in arranging a fraudulent failure may be striving to open many new accounts4 ,the unusual demands for reports respecting such a one lead to careful investigation4 ,instead of a restrictive tendency a mercantile agency promotes the expansion of credit and yet permits of proper conservatism4 ,it opens to the trader as a market for his merchandise every new and trustworthy account4 ,it curbs speculation1 stimulates diligence in business1 habituates punctuality1 and develops character4 ,when we remember that the present annual internal commerce of our country is estimated at about #hjj1jjj1jjj tons of merchandise carried an average distance of #abj miles1 and that this volume of trade is worth over #aj1jjj1jjj1jjj1 we are forced to admit that the unique system of these credit agencies has done much to further and make possible this commercial prosperity4 ,,ix4 ,,bonds ,,united ,,states1 ,,state1 ,,and ,,municipal ,,bonds ,when a country borrows money it gives a guaranty that the money will be returned at a particular time and that interest will be paid at regular intervals at a fixed rate4 ,this guaranty is called a bond4 ,in actual practice1 instead of borrowing the money required and then giving bonds for its return1 countries usually issue the bonds first1 and sell them to the highest bidder4 ,for instance1 if our government needed to borrow #a1jjj1jjj it would issue bonds for this amount1 stating definitely the rate of interest to be paid1 and call for bids4 ,if the rate of interest were four per cent4 and a buyer paid more than #ajjj for a #ajjj bond he would1 of course1 make less than four per cent4 upon his investment4 ,such bonds are absolutely safe and always marketable on account of our strong financial standing among the nations of the world4 ,similar bonds are issued by ,states1 cities1 towns1 school districts1 etc4 ,they are not mortgages in the ordinary sense1 and their worth consists entirely in the ability of the issuer through its taxing power to meet the obligations incurred4 ,municipal bonds are issued by cities and other municipalities to raise money for local improvements4 ,,bonds ,,and ,,certificates ,,of ,,stock ,a bond is evidence of debt1 specifying the interest and stating when the principal shall be paid2 a certificate of stock is evidence that the owner is a part owner in the company1 not a creditor of the company1 and having no right to regain his money except by the sale of the stock or the winding up of the company's business4 ,bonds issued by stock companies and corporations are really mortgages upon their resources4 ,such a bond is usually secured by a mortgage upon the company's plant1 franchises1 and assets1 or some part thereof4 ,corporate bonds can only be issued by the consent and direction of the shareholders of the company or corporation4 ,at the present time a mortgage securing the payment of corporate bonds is usually placed in the hands of a trustee--generally some trust company--which is supposed to act in behalf of the bondholders as a unit and which is empowered by the language of the bond1 in the event of the failure of the corporation to perform the obligations it assumes in said bond1 to foreclose the mortgage and divide the proceeds of sale among the bondholders4--,,carroll4 ,,classes ,,of ,,corporation ,,bonds ,corporation bonds are of many classes1 differing widely in their value as securities4 ,only a few of the more important classes can be mentioned here4 ,,first ,,mortgage ,,bonds constitute1 as the name implies1 a first lien upon the property of the company issuing them4 ,it is important in estimating the value of such securities to know whether they include only the property of the corporation at the time the bonds were issued or whether they are so worded as to include all property owned or acquired by the corporation4 ,second and third mortgage bonds are second and third liens4 ,the interest upon second and third mortgage bonds is paid only after the interest upon first mortgage bonds is satisfied4 ,when bonds are issued to take up and put into one fund all previously issued mortgage bonds1 the new bonds are sometimes called ,,consolidated ,,mortgage ,,bonds4 ,holders of previously issued bonds are not obliged to exchange them for any new securities4 ,,income ,,bonds are usually secured by a mortgage on the earnings of the corporation issuing them4 ,interest on such bonds must be paid before dividends are declared to stockholders4 ,it is customary when such bonds are issued to set aside a percentage of the earnings as a sinking fund to meet the bonds at maturity4 ,bonds are issued against all conceivable kinds of securities4 ,not only are properties of many kinds used to issue bonds upon1 but many kinds of bonds are often issued upon the same properties4 ,this is especially true of railways1 where mortgages of various kinds often lap and overlap in almost endless confusion4 ,,sinking ,,funds ,money set aside by a municipality or corporation to sink a debt at a certain future time is called a ,,sinking ,,fund4 ,for instance1 if a city should issue twenty-year bonds for #ajj1jjj to secure money for street improvements the entire debt would fall due in twenty years1 but to avoid having such a large amount fall due in one year1 a proportional sum is set aside each year as a sinking fund--that is1 to sink1 or reduce1 or wipe out the indebtedness when the bonds mature4 ,bonds are not paid in advance of maturity4 ,,interest ,,coupons ,illustration3 ,specimens of interest coupons4 ,most bonds have ,,interest ,,coupons attached4 ,these are cut off and presented for payment as they mature4 ,for instance1 a four per cent4 bond for #ajjj would draw #dj interest yearly4 ,this sum would be paid in two instalments of #bj each4 ,if the bond were for twenty years there would be at the date of issue forty interest coupons1 each calling for #bj and collectable at intervals of six months4 ,x4 ,,transportation ,,by ,,rail ,,the ,,growth ,,of ,,our ,,railroad ,,system ,a railway map of the ,united ,states shows that most parts of our country have a thickly woven net of railroads4 ,the mileage of our railroad lines is now #ahd1jjj miles1 the actual length of track on these roads being about #bde1jjj miles4 ,the significance of these large figures becomes more manifest when a comparison is made between the length of our railroads and the length of those of ,europe and those of the world4 ,the railroads in the ,united ,states comprise over four ninths of the total railway mileage of the world1 and are considerably longer than the railroads of all the countries of ,europe combined4 ,the facts are shown graphically by the following diagram3 ,mileage in ,europe #aee1jjj ,mileage in ,u4 ,s4 #ahd1jjj ,total for the ,world #dcd1jjj ,the history of the construction of ,american railroads covers a period of seventy years4 ,the greater part of our mileage has been built since #ahgj4 ,the following table and diagram illustrate the growth of our railway net during each decade3 ,year ,miles -------------- #ahcj #bc #ahdj #b1hjj #ahej #i1jjj #ahfj #cj1fjj #ahgj #ec1jjj #ahhj #ij1cjj #ahij #afc1fjj #ahih #ahd1jjj ,it will be noted that the decades of most rapid railway development were the one from #ahej to #ahfj1 following the discovery of gold in ,california1 and the two between #ahgj and #ahij4 ,we added #gj1jjj miles to our railway net between #ahhj and #ahij--;a record that no other country has equalled4 ,by #ahib we seem to have met the more urgent demands for new lines1 and we are now annually building less than #bjjj miles of new roads4 ,the face value of the capital now invested in ,american railroads is #aa1jjj1jjj1jjj4 ,the number of persons employed in the railway service is #hej1jjj4 ,,the ,,railway ,,corporation ,the agents that do the work of transportation by rail are the railway corporations4 ,these artificial persons are created by the several ,states and intrusted with the performance of services of a public nature4 ,in all the ,german states and to a large degree in many other ,european states1 the governments themselves provide the means of transportation by rail2 but in the ,united ,states the ownership and management of the railroads is rightly regarded to be a task of greater magnitude than the administrative department of our government is as yet able to cope with4 ,the growth of the railway corporations of the ,united ,states has been typical of the evolution of industrial organisation in this country4 ,the early railway corporations were small4 ,the ,philadelphia1 ,wilmington and ,baltimore ,railroad1 for instance1 comprised the lines of four companies4 ,in #ahej the road connecting ,albany and ,buffalo included the lines of seven companies4 ,during the last fifty years most of the small companies have united to form the corporations which now operate our large railway systems4 ,though the last statistical report of the ,interstate ,commerce ,commission--the one for the year ended ,june #cj1 #ahif--;contains financial reports from #aihe companies1 there were only #ghb independent operating roads1 the remainder of the companies being subsidiary organisations4 ,this report shows that forty-four of these operating companies have an aggregate mileage that equals nearly six tenths of the total railway mileage of the ,united ,states4 ,indeed1 the statistician to the ,interstate ,commerce ,commission declared in #ahid that over #hc per cent4 of the business of the railways and #hb per cent4 of their earnings fall under the control of less than forty associations of business men4 ,the ,pennsylvania system affords a good concrete illustration of railway consolidation4 ,that corporation1 with its #ijjj miles of road1 was built up by the union of over #bjj railroad companies1 and it now comprises within its organisation #agg corporations--most1 though not all1 of which are subsidiary railroad companies4 ,this one railway system does one seventh of the entire freight business performed by all the railroads of the ,united ,states and handles one eighth of all the passenger traffic4 ,,the ,,freight ,,service ,,of ,,railroads ,the freight business of the railroads of the ,united ,states is much larger than their passenger service1 the earnings from freight being nearly three times that from the passenger traffic4 ,it is only in some of the ,new ,england ,states1 the most densely populated parts of the ,united ,states1 that the passenger receipts equal the freight earnings4 ,the industrial conditions of the ,united ,states necessitate the movement of great quantities of bulky freight long distances4 ,our principal grain-fields are from #ajjj to #aejj miles from the manufacturing districts and seaboard cities4 ,our richest iron deposits are in the ,states adjacent to ,lake ,superior hundreds of miles from the coal-beds of ,illinois1 ,ohio1 and ,pennsylvania4 ,most of the cotton crop is moved long distances to reach the mills of ,new ,england and ,great ,britain4 ,in fact1 most of the products of our fields1 forests1 mines1 and factories are marketed over wide areas4 ,the average distance travelled by each ton of freight moved during the year ended ,june #cj1 #ahif1 was #abd4dg miles2 and1 as the railroads carried #gfe1hia1che tons that year1 the number of tons carried one mile was #ie1cbh1cfj1bgh4 ,a comparison of the revenues received from the freight and passenger services by the ,american1 ,german1 ,french1 and ,british railways is instructive4 ,for each dollar received from the passenger traffic the ,american railroads earn #b4ie from their freight business1 the ,german roads #b4dj1 the ,french #a4ca and the ,british railways #a4ag4 ,the ,united ,kingdom has the greatest volume of passenger traffic per population of any country in the world4 ,,american ,,passenger ,,traffic ,,on ,,railroads ,,relatively ,,undeveloped ,the long distances of the ,united ,states necessitate a large freight traffic but act as a hindrance to travel4 ,it is a generally accepted but erroneous supposition that ,americans travel more than any other people4 ,a comparison of the passenger traffic in the ,united ,states with that in the ,united ,kingdom1 ,germany1 and ,france reveals some surprising facts4 ,the figures are for #ahif4 ,the number of passengers carried one mile per mile of road upon the railroads of the ,united ,states was #ga1gje1 in ,france the number was #bgc1cae1 in ,germany #cae1cii1 and in the ,united ,kingdom #ddj1jjj4 ,the average distance which the ,briton travels per year by rail is #bdd miles2 for the ,american the distance is #bji miles1 for the ,frenchman #agf miles1 and for the ,german #afe miles4 ,the ,englishman takes #bd4d trips per year on an average1 the ,german #aa4c1 the ,frenchman #i4f1 and the ,american #h4b4 ,americans travel extensively1 but it is evident from the foregoing comparisons that the possibility of developing the passenger service in this country has by no means reached its limit4 ,,relation ,,of ,,transportation ,,on ,,railroads ,,to ,,economic ,,organisation ,the economic changes which have accompanied the great development of transportation that has taken place during the last fifty years have revolutionised our industrial and social life4 ,among the effects of developed transportation upon the economic organisation may be noted3 ,first1 that relations of producers and consumers have been fundamentally changed by placing a larger market at the service of both4 ,many classes of commodities are now bought and sold in a world market that were formerly restricted to local trade4 ,second1 improved transportation has made the prices of commodities more uniform for different producers and consumers4 ,the variations due to situation have been lessened4 ,in a like manner there has been a decrease in those time variations in prices that result from changes in the supply of commodities4 ,improved transportation also makes prices lower--not only because it reduces the costs of moving the raw materials of manufacture and the finished products of industry1 but also because it enables the merchant to turn his stock oftener and thus do business with less expenses for capital4 ,as a third effect of improved transportation may be mentioned the acceleration which it has given to the growth of cities4 ,cheap and efficient transportation has led manufacturers to locate their plants where they can command a large supply of labour and where they have the greatest advantages for the distribution of their products4 ,the great manufacturing establishments are now located in ,chicago1 ,new ,york1 ,philadelphia1 ,pittsburg1 and the other large cities4 ,conditions of transportation have become a stronger factor than even the location of the sources of raw materials in determining where an industry shall be established4 ,the effect of the railroad upon the location of agriculture has been no less potent4 ,the railroad has brought new agricultural regions into cultivation and destroyed the profits of cereal agriculture in many parts of the ,eastern ,states4 ,another important consequence of improved transportation and communication has been that of bringing the nations of the world into closer economic and social relations4 ,with the growing solidarity of the economic interests of the countries of the world1 with the multiplication of the intellectual and other social ties that unite the nations1 their political relations inevitably change1 and for the better4 ,nothing is doing more to advance the attainments of the cherished ideal of international amity than is the development of transportation4 ,,xi4 ,,freight ,,transportation ,,by ,,rail ,,the ,,origin ,,of ,,railroad ,,traffic ,,associations ,the performance of the transportation services necessitates the co-operation of carriers4 ,when the government owns and operates the railroads of a country they are managed by a single authority1 and the different parts of the railway system are fully co-ordinated2 but when the railroads are operated by a large number of independent corporations1 co-operation can be secured only by means of traffic associations composed of representatives of the railway companies1 and intrusted with the power of making arrangements affecting joint traffic1 and settling questions involving the interests of two or more companies4 ,two distinct causes brought about the establishment of railway traffic associations4 ,the first cause was the necessity of co-operation to facilitate the joint business of connecting lines4 ,through tickets1 joint fares and rates1 through bills of lading1 the interchange of cars between connecting roads1 and the settlement of joint accounts led to the establishment of co-operative freight lines1 car-service associations1 claim associations1 and various other general and local organisations for the promotion of the joint transportation business4 ,the other cause of co-operation among the railways was the necessity of regulating competition4 ,this cause first became potent after the process of consolidation had brought about the formation of numerous large railway systems1 and had inaugurated the violent competition which led to discriminations in transportation charges1 rate wars1 and the other evils which have combined to produce the railway question4 ,the competitive struggles of rival railway systems began to be violent shortly after #ahfg1 and soon led to the formation of railway traffic associations1 with enlarged powers4 ,the classification of freight1 the determination of rates on competitive traffic1 and the apportionment of that traffic1 or of the earnings from it1 among the competitors became functions of the associations4 ,,the ,,work ,,of ,,albert ,,fink ,the man who did more than any other person to develop traffic associations and to promote the co-operation of competing railroads was the late ,albert ,fink4 ,it was his master mind that organised and put into successful operation in #ahgf the ,southern ,railway and ,steamship ,association4 ,the following year ,albert ,fink succeeded in organising the great trunk lines connecting the ,north ,atlantic seaboard and the ,states north of the ,ohio ,river4 ,though smaller traffic associations similar to these two organisations had been previously established where but few obstacles had to be overcome1 it was ,fink who first organised traffic associations including all the competing railroads serving large sections of the country4 ,in discussing the work of traffic associations1 which are to-day concerns of really enormous magnitude1 railway pooling and the classification of freight especially demand consideration4 ,,railroad ,,pooling ,railroad pools are agreements entered into by competing carriers1 by which the railroads provide for the division with each other of their competitive traffic1 or of the earnings from that traffic in accordance with stipulated ratios4 ,thus there are traffic pools and money pools4 ,during the decade preceding #ahhg1 the year when the present interstate commerce law was enacted1 most traffic associations had the pooling feature1 and most of the competitive railway traffic was pooled1 thus eliminating all competition in rates4 ,pooling agreements have never been legal in this country4 ,being illegal by the common law1 they could not be enforced in the courts4 ,section #d of the interstate commerce law made it unlawful for the carriers subject to the act to pool their freights or the earnings from their freight traffic1 and made it necessary for the traffic associations to reorganise without the pooling agreements4 ,until ,march #bb1 #ahig1 it was supposed that the associations1 without pooling agreements1 were legal2 but1 on that date1 in the case of the ,united ,states vs4 the ,trans-,missouri ,freight ,association1 the ,united ,states ,supreme ,court held that the law of ,july #b1 #ahij1 popularly known as the ,sherman anti-trust law1 applied to railways1 and made it illegal for railway companies to contract with each other to maintain rates4 ,thus at the present time traffic associations are permitted neither to contain a pooling feature nor to provide arrangements for the enforcement or maintenance of rates1 although the charges may be reasonable and be sanctioned by all the carriers interested4 ,the associations may now legally exercise those functions which are connected with the joint business of their members1 and they may act as bureaus of information regarding the competitive traffic4 ,they have no power to make or to maintain rates4 ,,traffic ,,associations ,,including ,,pooling ,,should ,,be ,,legalised ,the best performance of the service of transportation by rail requires the fullest possible co-ordination of the different parts of our transportation system and the largest attainable measure of co-operation among the agents who perform the service4 ,section #d of the act of #ahhg and the law of ,july1 #ahij1 as far as the latter relates to railways1 are based on an unsound theory4 ,provision having been made for that kind and measure of governmental regulation of railway rates that will insure reasonable charges1 the railways should be permitted to co-operate in rate-making and be given power to pool their competitive business4 ,,classification ,,of ,,railroad ,,freight ,there are thousands of varieties of freight offered to the railroads for transportation4 ,if each class of commodities were charged the same freight rate per ton per mile1 the charges upon many articles of prime necessity1 such as coal1 lumber1 and grain1 would be so high as to prevent their being moved1 while the rates on goods of high value per bulk would be much lower than they could readily pay4 ,classification must precede the fixing of rate schedules4 ,the railroads are interested in adjusting their charges to services performed in such a manner as to insure the greatest possible amount of traffic at rates that are properly remunerative4 ,the public is interested in having the necessary revenues of the railroads so levied as to make the burdens as light as possible4 ,to accomplish this a careful grouping of commodities is necessary4 ,the goods are usually classified in five or six large divisions4 ,the official classification referred to below has six classes4 ,the first class consists of articles of high value1 the sixth class of bulky commodities of low value1 such as iron ore1 lumber1 grain in bulk1 etc4 ,in practice1 however1 the number of classes is at least doubled4 ,goods of especially high value are made to pay once and a half1 double1 treble or quadruple the regular first-class rate4 ,a commodity is also frequently placed in more than one class1 the rating of classification being lower for car-load lots than for less than car-load shipments4 ,the classification is further extended by omitting certain articles from the list of those classified4 ,live stock and coal are illustrations of articles to which so-called commodity1 as distinct from classification1 rates are given4 ,the individual shippers are constantly endeavouring to have their goods given commodity rates1 and the effort of the railroad companies is to reduce the number of articles excepted from classification4 ,commodity tariffs have been a fruitful source of unjust discrimination4 ,from this description of freight classifications it will be perceived that the main basis upon which the grouping of commodities rests is the relative value of the goods4 ,the gradations cannot1 however1 be made strictly according to value4 ,the goods are frequently put into a lower class than their value would warrant in order to stimulate their production and shipment or to develop the industries depending upon those articles4 ,at first each railroad worked out a classification of its own1 and there were practically as many classifications as there were railway systems4 ,the disadvantages of this soon became apparent with the development of long-distance traffic4 ,the multiplicity of classifications made it difficult for shippers or purchasers to ascertain in advance what the charges on consignments would be2 there was a constant tendency to increase the number of commodity tariffs1 and unjust personal and local discriminations were in consequence made more numerous4 ,it became evident that there would be great advantages in having one uniform classification for the whole ,united ,states4 ,this ideal has not been reached yet1 but the number of classifications has been practically reduced to three--the official1 applying to the traffic north of the ,potomac and ,ohio and west of the ,mississippi2 the southern1 in force among the railroads in the ,southern ,states1 and the western1 which obtains in the territory west of the ,mississippi ,river4 ,this amalgamation of the classifications has been brought about chiefly by the traffic associations and as the result of the enactment of the interstate commerce law4 ,in order to avoid the discriminations prohibited by that law it was necessary to abandon the system of a separate classification for each railway4 ,it is to be hoped that the attainment of the ideal of uniform classification will not be long delayed4 ,,the ,,conduct ,,of ,,the ,,freight ,,business ,,of ,,railroads--,,transportation ,,papers ,the manner in which the freight business is conducted affords a good illustration of the high degree of development to which modern business methods have attained4 ,freight is accepted by each railroad for shipment not only to all points on its own system1 but also practically to every railway station in the country1 and even to many foreign cities4 ,a waybill containing the initials of the number of the car used1 the name of the consignor1 the name and address of the consignee1 the description and weight of the articles sent1 the freight class and rate of the goods1 and the total amount of freight charges1 accompanies each shipment and is delivered to the agent at the place to which the goods are shipped4 ,for the goods thus accepted for transportation1 manifests1 or bills of lading1 are issued to the consignor1 which1 like other representatives of property1 may be transferred by the owner or may be deposited in a bank subject to draft4 ,bills of lading are of two general kinds--straight consignment bills and order bills4 ,when a straight consignment bill of lading is issued the goods must be delivered to the consignee or to the person to whom he may order them delivered4 ,an order bill of lading is one that may be transferred upon indorsement4 ,the following concise description of an order bill of lading is taken from the ,book of ,general ,instructions to ,freight ,agents1 issued by the ,pennsylvania ,railroad ,company3 ,when freight is consigned to ,order it is1 as a rule1 for the purpose of securing the payment at destination of a draft for the value of the property4 ,the draft is usually attached to the bill of lading and sent through a bank for collection from the party at destination1 who is to be notified of the arrival of the freight4 ,the payment of the draft secures to the payer the possession of the bill of lading1 which must be indorsed by the party to whose order the property is consigned4 ,,xii4 ,,railroad ,,rates ,transportation charges have such a general and vital relation to industrial and social welfare that the problem of the just and equitable distribution of their assessment is one of paramount economic and political consequence4 ,a consideration of the main factors which influence the railway companies in fixing charges should precede a discussion of the regulation of transportation by the government4 ,,general ,,factors ,,which ,,determine ,,railroad ,,rates ,,and ,,fares ,the factors which have most weight in fixing schedules of rates and fares are what it will cost to perform the several services1 what the services are worth to those for whom they are to be rendered1 and the extent to which there is competition among rival carriers to secure the traffic concerned4 ,though on the face of things it would seem that the railways should fix the charges for their various services in accordance with the costs of performing those services1 it is neither practicable for them to do so nor is it desirable from the standpoint of public welfare that such a criterion should be adopted4 ,it is impracticable for the railroads to base their charges upon cost of service1 because it is impossible to determine accurately the elements which enter into the cost of performing the particular transportation service4 ,the modern railroad is a very complex mechanism1 employed in the performance of a multitude of different services4 ,no railroad official is able to say just how much of the company's total expenses are to be charged against any one particular freight or passenger service4 ,the cost of service would be an undesirable basis of rates1 because the railroads would derive such a small part of their total necessary revenues from the carriage of goods having a high value in proportion to bulk and weight1 that they would be obliged to charge much higher rates than they now do upon the cruder products of the farm1 forest1 and mine4 ,these products are the basic materials of industry1 and the lowest possible rate for their transportation is essential to social and economic progress4 ,,value ,,of ,,service ,,and ,,value ,,of ,,commodities ,value of service is a more desirable basis for rates and fares than cost of service4 ,by charging according to value of service is meant that the shippers of commodities and the passengers who travel shall contribute to the railroad's aggregate expenses in proportion to the value which they derive from the transportation service4 ,the rates and fares may cover a part or all of the value of the service obtained4 ,in either case they are fixed with reference to that value and not with regard to the cost involved in performing the work of transportation4 ,the levy of rates and fares in accordance with this theory1 which is usually called charging what the traffic will bear1 is considered by most people to distribute transportation charges properly1 because it is claimed that the true measure of a shipper's or a passenger's ability to pay for a desired service is the value which he will thereby derive4 ,that this theory1 nevertheless1 does not afford an altogether satisfactory basis of charges1 particularly in the freight traffic1 may be readily shown4 ,while it is true that the amount of value added by transportation to goods of low value is less for each unit of weight or bulk than the amount of value which is acquired by an equal weight or bulk of high-priced commodities1 yet the percentage increase in value is greater in the case of the goods of low cost4 ,expensive articles can be carried long distances without adding very much to their cost to the consumers4 ,measured in their percentages1 then1 the value of the service of transportation is relatively much lower in the case of the higher-priced commodities4 ,the freight charges on wheat range from twenty to forty per cent4 of its farm value1 while the rate on shoes is possibly two per cent4 of their factory price4 ,that these charges are levied in accordance with the real ability of the articles to pay would be hard to establish4 ,a ,,partial ,,theory ,,of ,,railroad ,,freight ,,rates ,without attempting in this connection to formulate a complete theory of freight rates1 it may be said that there are three factors to which weight should be given in fixing charges3 ,first1 the cost of service4 ,the total costs of transportation1 including a fair return on invested capital1 must be covered by total receipts4 ,furthermore1 the minimum rate charged any particular class of commodities ought to be sufficient to pay the operating expenses incurred in transporting the goods4 ,second1 the value of the service4 ,this fixes the maximum rate that may be charged4 ,were the railroads to charge more than the service is worth to the shipper the service would not be desired4 ,third1 the value of the commodities4 ,between the minimum rate fixed by the operating expenses and the maximum charge determined by the value of the service actual rates may vary through a wide possible range4 ,in determining what rates within this range will be theoretically most just and least discriminatory1 consideration should be given both to the value of the service and--more than is the case at present--to the value of the articles transported4 ,by doing this rates will be paid by the various articles of freight more nearly in proportion to their ability to pay4 ,,the ,,effect ,,of ,,competition ,,on ,,railroad ,,rates ,,and ,,fares ,whatever theory of rates may be accepted as ideally best1 it cannot be strictly adhered to under the existing conditions of active competition obtaining in the ,united ,states4 ,actual charges have to be fixed and revised to meet the varying circumstances under which railway traffic is conducted4 ,this competition takes several distinct forms4 ,one is that between railways and waterways4 ,a large part of the domestic traffic of the ,united ,states has the choice of transportation by rail or by water on the great lakes and the tributary canals1 by the navigable rivers1 or by one of the many ocean routes followed by our coastwise commerce4 ,there is also the competition of rival railways connecting common termini or serving the same cities4 ,these forms of competition are the ones most frequently noted2 but they perhaps exercise a less potent influence over rates than what is known as competition through the markets or through the channels of trade4 ,the competition between rival centres of commerce and industry--between the ,atlantic cities and the gulf ports1 for instance1 or between the manufactures of ,new ,york and ,philadelphia and those of ,chicago or ,cincinnati for the markets of the ,southern ,states1 to cite another example--is a force that must be considered in making rates and fares4 ,even towns served by only one railway and by no waterway enjoy the benefits of this industrial competition4 ,unless the railroad can give the industries in these local towns rates that will enable them to market their products1 the industries will decline and the railway will lose its traffic4 ,an interesting result of the competition of roads connecting common termini or joining a common industrial region with seaboard points is that the road whose line is the longest and whose expenses of transportation are greatest is obliged to charge the lowest rate4 ,the short lines can charge more because they compete for traffic under more favourable circumstances4 ,the lower charge of the longer line is called a differential rate1 and it is customary for the shorter or standard lines to agree to allow the differential line a stipulated differential rate4 ,this is the concession which the standard lines are obliged to make to temper competition and to prevent rate wars4 ,the ,grand ,trunk1 running from ,chicago to ,boston by way of ,montreal1 is a good example of a differential line1 and the ,new ,york ,central is a good instance of a standard line4 ,,governmental ,,regulation ,,of ,,railroad ,,transportation ,it is a maxim of common law that transportation charges must be reasonable1 and the exaction of an unreasonable rate by a public carrier is a common-law misdemeanour punishable by the courts4 ,but when1 as the result of severe competition of railroads with waterways and with each other1 unjust discriminations between persons1 between places1 and as regards classes of traffic--the abuses which constitute the railway question--became prevalent1 the common-law provisions applying to railway charges were given statutory form and were supplemented and extended by such legislation as the circumstances peculiar to the situation seemed to demand4 ,the comprehensive railway- and canal-traffic act passed by ,great ,britain in #ahed has been the model adopted for much of the railway legislation in the ,united ,states4 ,the ,constitution of the ,united ,states gives ,congress power to regulate commerce among the several ,states1 but the jurisdiction over intrastate traffic lies with the ,state governments4 ,the ,states began to pass general laws for the regulation of railroads fully twenty years before ,congress acted1 and two thirds of the ,states have established commissions to administer those laws4 ,,the ,,interstate ,,commerce ,,law ,after fifteen years of agitation and investigation the existing interstate commerce law was enacted in #ahhg4 ,the law prohibits unreasonable rates and unjust discriminations between persons1 places1 and classes of traffic1 prohibits pooling agreements1 provides penalties for the violation of the law1 and establishes a commission of five men to administer and enforce the statute4 ,fortunately for the commission and for the country the first chairman of that body was the eminent jurist1 ,thomas ,m4 ,cooley1 whose master mind did much to give vitality to the law4 ,during the first five years after the law was passed it secured a fairly efficient regulation of interstate railway commerce1 but recent decisions of the ,united ,states ,supreme ,court have so weakened the law that at present the commission has very little power4 ,the commission can investigate complaints and make reports1 it can collect statistical information1 it can and does informally adjust many differences between shippers and carriers2 but1 to quote from the last report of the commission1 it has ceased to be a body for the regulation of interstate carriers4 ,legislation to amend and strengthen the interstate commerce law is urgently needed4 ,illustration3 ,judge ,thomas ,m4 ,cooley4 7,first chairman of the interstate commerce commission47 ,,xiii4 ,,stock ,,and ,,produce ,,exchanges ,,the ,,stock ,,exchange ,the stock exchanges of the world must not be considered simply as noisy congregations of brokers speculating in securities under the guise of legitimate business4 ,they really play an important and necessary part in the financial mechanism of the country1 and are instruments of enormous value in subdividing and distributing capital1 and in directing its employment in great commercial and industrial enterprises4 ,the largest stock exchange of the world is that of ,london4 ,it is not only the centre of the ,english market for stocks and securities but1 like the ,bank of ,england1 it is linked internationally with nearly all the financial centres of the world4 ,almost every reputable security is marketable in ,london1 either through the ordinary channels provided by arbitrage dealers1 who buy in the cheaper and sell in the dearer markets1 or through the agency of trusts and investment concerns4 ,the magnitude and extent of the financial resources of the ,london ,stock ,exchange are enormous4 ,its advantages to the business public outweigh altogether the drawbacks imposed by the too-speculative spirit of mankind4 ,it is a great business barometer1 extremely sensitive to all conditions likely to disturb the world's finances4 ,the ,london ,stock ,exchange has scarcely more than one hundred years of history4 ,in the early part of the century the elder ,rothschild was one of the giants on 'change1 and it was in this business that he amassed the great fortune which makes the name of his house a synonym for money power4 ,the membership of the ,london exchange is not limited to a fixed number1 as in ,paris and ,new ,york4 ,in the ,paris ,bourse all agents are strictly forbidden to trade on their own account4 ,illustration3 ,the ,paris ,bourse4 ,the ,new ,york ,stock ,exchange was formed in #agib4 ,there are #aajj members4 ,members are elected and must be nominated by two men who will say that they would accept the uncertified cheque of the nominee for #bj1jjj4 ,the initiation fee is #bj1jjj4 ,memberships have sold as high as #cb1ejj1 and the market value of a seat on the ,exchange varies only slightly from year to year4 ,illustration3 ,interior view of ,new ,york ,stock ,exchange4 ,there are stock exchanges in all large cities1 and scattered throughout the country in convenient centres are grain and produce exchanges1 cotton exchanges1 petroleum exchanges1 etc4 ,these exchanges are really the central markets for the commodities they represent4 ,commodity exchanges deal in actual products1 even though the dealers handle nothing but warehouse receipts or promises to deliver4 ,stock exchanges deal in credits and securities1 which may or may not have a tangible value back of them4 ,there is no reason why bonds and shares should not be publicly dealt in--and in large quantities--as well as dry goods1 corn or cotton2 but1 unfortunately1 few stock exchanges confine their transactions wholly to legitimate business4 ,you will look in vain in the quotations for the stock of dozens of corporations whose securities are among the choicest investments4 ,it is upon fluctuations that stock speculations prosper1 and it is often true that the largest profits are made on the poorest stocks4 ,transactions are quickly collected and reported to the world4 ,in hundreds of offices in ,new ,york1 ,chicago1 and other ,american cities may be seen a little instrument called a ticker1 which automatically prints abbreviated names of stocks1 with their prices1 on a narrow ribbon of paper4 ,these tickers are rented to these offices by the telegraph companies1 and as fast as the sales are made the quotations are ticked off in thousands of offices in all parts of the ,united ,states4 ,,technical ,,terms ,,of ,,stock ,,exchanges ,the term bull is applied to those who are purchasers of stock for long account1 with the purpose of advancing prices1 as the tendency of a bull is to elevate everything within his reach4 ,the term bear is applied to those who sell short stock1 with the purpose of depreciating values4 ,the bear operates for a decline in prices4 ,the broker's charge for his services is called a commission1 which in the ,new ,york ,stock ,exchange is one eighth of one per cent4 each way on a par value of the security purchased or sold4 ,a point means one per cent4 on the par value of a stock or bond4 ,stock privileges or puts and calls are extensively dealt in abroad and to some extent here4 ,a put is an agreement in the form of a written or printed contract filled out to suit the case1 whereby the signer of it agrees to accept upon one day's notice1 except on the day of expiration1 a certain number of shares of a given stock at a stipulated price4 ,a call is the reverse of a put1 giving its owner the right to demand the stock under the same conditions4 ,a put may serve as an insurance to an investor against a radical decline in the value of stocks he owns2 a call may be purchased by a man whose property is not immediately available1 but who may desire to be placed in a position to procure the shares at the call price1 if they are not below that in the open market when he secures the necessary funds4 ,the speculator usually trades on margins4 ,if he has #ejj to invest he buys #ejjj worth of stock1 his #ejj being ten per cent4 of the total amount4 ,he expects to sell again before the remaining amount falls due4 ,the margin is usually placed by the speculator in the hands of a broker as a guaranty against loss4 ,although these brokers are really agents for others1 yet on 'change they stand in the mutual relationship of principals4 ,a margin is merely a partial payment1 but a broker buying stock for a client on margin is compelled to wholly pay for it4 ,if he has not the necessary capital his usual custom is to borrow from banks or money-lenders1 pledging the stock as collateral security4 ,in foreign exchanges the element of credit enters more largely into the conduct of business4 ,where the credit of the client in ,london is established his broker does not1 ordinarily1 call on him for any cash until the next settlement day4 ,a wash sale is a fictitious transaction made by two members acting in collusion for the purpose of swelling the volume of apparent business in a security and thus giving a false impression of its value4 ,stocks sell dividend-on between the time the dividend is declared and the day the books of the company close for transfer2 after that they sell ex-dividend1 in which case the dividend does not go to the buyer4 ,when a company decides not to declare a dividend it is said to pass its dividend4 ,to sell stock buyer #c is to give the buyer the privilege of taking it on the day of purchase or on any of the three following days1 without interest2 and to sell stock seller #c is to give the seller the privilege of delivering it on the day of purchase or on any one of the three following days without interest4 ,buyer #c is a little lower and seller #c a little higher than regular way when the market is in a normal condition4 ,bucket shops are establishments conducted nominally for the transaction of a stock-exchange business but really for the registration of bets or wagers1 usually for small amounts1 on the rise or fall of the prices of stocks1 there being no transfer or delivery of the commodities nominally dealt in4 ,there are thousands of these counterfeit concerns throughout the country conducted without any regard for legitimate commercial enterprises4 ,,future ,,delivery ,grain is stored in warehouses until needed for milling or shipment4 ,when we speak of ,december wheat we mean wheat that is to be delivered to the buyer in ,december4 ,the carrying charges include storage1 interest1 and insurance1 so that wheat sold for ,may delivery would necessarily bring a higher price than wheat sold for ,december delivery4 ,carrying charges are in favour of the short seller4 ,when sold for immediate delivery it is known as cash grain4 ,,xiv4 ,,storage ,,and ,,warehousing ,,bonded ,,warehouses ,there is a government regulation that an importer who does not wish to pay immediately the customs duties on his goods may have them stored in a warehouse1 provided he furnish a bond with a surety that he will pay the duty within three years or export the goods to some other country4 ,it is also a requisite that the goods be deposited in a bonded warehouse in the care and custody of its proprietor1 who also must furnish the government with a bond of indemnity4 ,the bond of the proprietor is a general bond and usually covers what might be considered a fair amount of total values due the government at any time4 ,officers of the ,united ,states are stationed at the bonded warehouse during business hours4 ,these are there in evidence of the government's proprietary interest in the merchandise stored4 ,when an importer makes entry at the custom house for bonding his goods1 he at that time provides the security required4 ,by a recent decision of the ,treasury ,department at ,washington goods in bond are in the joint custody of the ,united ,states government and the proprietor of the warehouse1 and after the government has received its customs duties for the goods they are in the proprietor's sole possession4 ,the government cannot interfere to enforce delivery of the goods to the importer4 ,the claim of the warehouse proprietor for storage charges becomes a first lien after the government's claim is satisfied4 ,when the importer has paid both customs and storage charges he is privileged to remove his goods4 ,,warehouse ,,regulations ,it is the duty of ,united ,states storekeepers to check off the goods as they are received at the warehouse and to report the same to the custom house2 and when goods are to be withdrawn to see that delivery is not made until a custom house permit is presented4 ,upon payment of the import duty on goods in bond at the custom house at any time after importation1 the customs officials issue a warehouse permit to the importer ordering the ,united ,states storekeeper in charge of the bonded warehouse to deliver the goods to the importer1 and upon presentation of the permit the goods are released unless the proprietor holds them subject to storage charges4 ,goods may be held in bond for three years with the duty unpaid1 but after that time either the duty must be paid or the goods exported4 ,if shipped to another country and afterward re-imported the goods would again be entitled to the three-year privilege4 ,if goods are not exported and the customs charges are due and unpaid1 the government may dispose of the goods at public sale to obtain its claim4 ,goods arriving by steamer and unclaimed lie at the wharf forty-eight hours4 ,if the owner does not appear to make entry for them within that time1 after the entry for the vessel has been made1 the goods are sent to a bonded warehouse and remain there on what is known as a general order1 and if they stand there unclaimed for a year they may1 at the expiration of that time1 be sold by the government4 ,the capital of a warehouse is its storage space4 ,the rates vary from #a_/d to #c_/d of a cent per cubic foot4 ,the charges may be based on the amount of space consumed and the weight of the merchandise4 ,the latter often determines the floor elevation to which the goods may be assigned4 ,the more convenient of access the storage location is1 the greater the cost4 ,warehouse receipts are issued as evidence of storage4 ,all merchandise is conveniently bulked for numbering and marking1 and these distinguishing marks appear on the receipts4 ,negotiable and non-negotiable receipts are issued as the needs of the owner may require4 ,the former permit advances to be made by bankers upon the merchandise as collateral security4 ,,free ,,warehouses ,these differ from bonded warehouses only in the fact that the government has no control or interest in them4 ,they are only for the storage of imported goods on which the customs duty has been paid or for goods imported free of duty or for merchandise of domestic production and manufacture4 ,they are managed entirely by the proprietor1 and the contracts for storage are1 of course1 between the proprietor of the warehouse and the owner of the goods4 ,the storage rates in free warehouses are considerably lower than for goods stored in bonded warehouses--the latter being a much more expensive business to conduct4 ,there is no time limit in free warehouses4 ,goods may remain indefinitely4 ,when they remain from six months to a year the charges are collected usually at certain periods to avoid accumulation4 ,experience shows that goods in free warehouses do not stay so long as those in bond4 ,the articles commonly found in these houses are domestic and imported wools1 cotton1 canned goods1 peanuts1 yarns1 cotton piece goods1 mattings1 dry goods1 etc4 ,perishable goods1 of course1 do not find their way into bonded or free warehouses4 ,these are placed in cold storage4 ,,banking ,,features ,,of ,,warehousing ,many of the warehouses find it advantageous to do a banking business in connection with the storage features4 ,very frequently1 for the convenience of the importer1 goods are consigned to the warehouse and sent subject to a sight draft for the amount of the invoice4 ,the warehouse company will pay the draft with the exception of about twenty per cent41 which the importer is expected to furnish4 ,if the duty is paid then the value upon which a loan is estimated is based upon the market value of the goods in this country4 ,after the draft has been satisfied the goods are placed in the stores of the warehouse company subject to the customs and storage charges4 ,the amount advanced by the company bears interest at current money rates4 ,in illustration let us suppose bonded goods to be shipped and invoiced at #aj1jjj1 customs duty #djjj1 and the goods consigned to a bonded warehouse4 ,the draft 7#aj1jjj7 is sent to the warehousing company1 which advances #hjjj1 and together with the #bjjj received from the importer pays the draft4 ,the #hjjj loan made by the company is then charged to the importer at the usual interest rate1 and when the borrower withdraws his merchandise from storage he will have to pay the government the #djjj customs duty and pay back his loan of #hjjj to the warehouse company1 together with interest and storage charges4 ,if any portion of the goods stored is withdrawn for use in the business of the importer1 the company will rebate a proportionate amount of the interest4 ,if goods decline in value as collateral in storage the company will demand additional margin for its protection4 ,if goods appreciate in value the loan may be increased4 ,the market value of the goods is ascertained by the appraisement of some expert1 who receives a commission for his services4 ,,cold ,,storage ,the cold-storage warehouse is the natural result of the necessities of our great agricultural interests in the preservation of perishable products so sensitive to the deteriorating effects of temperature4 ,the solution of the problem of the preservation of dairy products1 meats1 fish1 poultry1 fruits1 and vegetables has developed a system that has eliminated the seasons and made possible the equalisation of prices of the finer class of edibles4 ,the cornering of products and the creation of unreasonable prices are avoided4 ,no article becomes a glut on the market as formerly4 ,when there is a surplus of eggs and fruit1 prices may be maintained by putting them in cold storage for a few days and offering them on the market when the conditions of trade warrant4 ,,temperature ,,requirements ,,for ,,cold ,,storage ,prior to the year #ahij cold storage was dependent upon the employment of ice1 but in the evolution of the cold-storage warehouse ice is no longer a requisite4 ,in fact1 the temperature obtained by the employment of ice precluded a thermometric register much below the freezing point4 ,the accepted temperature for butter and eggs was formerly #dj to #ej2 but through the introduction of mechanical refrigeration1 which has revolutionised the business economically as well as physically1 eggs now are held in storage at a temperature of #ca and butter from #aj to #ah4 ,under the former method of ice storage1 goods that were offered on the market as held goods--that is1 as coming from a cold storage--always brought several cents under the prices of fresh merchandise4 ,but the remarkable modern methods of cold storage permit the carrying of dairy products for a number of months and their successful sale afterward in competition with fresh goods4 ,eggs stored in ,march are taken out in the following ,november and have commanded as high and often higher prices than the fresh commodity4 ,eggs have been kept two years and found perfectly sweet when used4 ,in freezing poultry and fish the temperature now frequently given is zero and under4 ,poultry does not carry so well as other merchandise4 ,although it is possible to keep it for two years1 yet it loses its flavour4 ,five or six months' storage is its usual average limit4 ,certain temperatures are maintained in the various compartments of a cold-storage warehouse according to the requirements of the products1 and these temperatures are made possible by forcing through pipes arranged around each compartment a brine composed of about ninety-five per cent4 of pure salt whose temperature has been reduced by the action of the chemicals4 ,when a shipper stores his goods there is an implied contract with the storage company that the temperature required for the product will be furnished and maintained4 ,failure to do this renders the company liable for any damage to property4 ,so vital is this feature of the business1 which is really the only liability assumed by the company1 that the custom prevails of taking the temperature of each room as often as five times in every twenty-four hours1 and keeping the record in temperature books open to the inspection of the shippers4 ,a room filled with merchandise may not vary in temperature one degree in six months4 ,,cold-,,storage ,,centres ,chicago very naturally is the leading cold-storage centre4 ,its situation in the heart of the productive area and its advantages as a distributing centre have given it its prestige4 ,but in the last two or three years the ,eastern cities1 ,new ,york1 ,philadelphia1 and ,boston1 have developed enormous cold-storage facilities1 and ,chicago no longer is absolute in her dictation to the markets of the world4 ,when it is remembered that the dairy interests of our country during the last three years averaged an annual value of #fej1jjj1jjj1 and that the greater portion of this found its way into cold-storage warehouses1 the importance of this new and very necessary business is readily appreciated4 ,,cold-,,storage ,,charges ,the cold-storage charges for eggs in thirty-dozen cases would be about #ae cents per case for the first month and #i cents for every additional month4 ,butter in sixty-pound tubs would be charged at the rate of #ab cents per tub for each month4 ,cheese would cost one tenth of a cent a pound per month4 ,the rates of ,eastern cities are usually higher than in the ,west4 ,about ninety per cent4 of the storage business of the ,east is in goods shipped from the ,west4 ,the refrigerator car is a valuable adjunct to the business4 ,the temperature of the cars is about #de4 ,although no ice is used in the modern cold-storage plant1 yet the ice has become a very valuable by-product4 ,since all the facilities for its manufacture are at hand it has become a matter of commercial expediency to employ them to the company's profit in the production and sale of a commodity indispensable to modern life4 ,,questions ,,for ,,review #a4 ,give some particulars in which the ,bank of ,england differs from our larger national banks4 #b4 ,a bank cheque is a demand order for money drawn by one who has funds in the bank4 ,how does a cheque differ from an order on ,a---- ,b---- to pay bearer a certain sum of money8 #c4 ,you are sending a cheque through the mails to ,john ,brown1 ,chicago4 ,how will you prevent the cheque from falling into the hands of the wrong ,brown8 #d4 ,you identify ,a---- ,b---- at your bank4 ,the cheque ,a---- ,b---- presented turns out to be a forgery4 ,are you responsible8 #e4 ,what is meant by power of attorney8 ,how should an attorney indorse cheques for any person for whom he is acting8 #f4 ,what is a certified cheque8 ,brown gives ,a an ordinary cheque for #ajjj1 and ,b a certified cheque for #ajjj4 ,he fails before either cheque is presented4 ,why is ,b's security for his claim considered better than ,a's8 #g4 ,show how all the banks of the ,united ,states are connected through the clearing-house system4 #h4 ,how do ,state and national banks differ as to their organisation8 #i4 ,a national bank has a capital of half a million4 ,a customer asks for a loan of #fb1jjj on indorsed paper4 ,can the bank legally grant the loan8 #aj4 ,give some particulars of the liabilities of the officers and directors of national banks4 #aa4 ,what is meant by borrowing money on collaterals8 ,how is this done8 #ab4 ,tell how it is possible for a young man of good character1 but without friends who have financial standing1 to secure bonds for his faithful conduct in a responsible position4 #ac4 ,when rates are high bankers prefer to deal in long-time paper4 ,why8 #ad4 ,account for the fact that ,london is the financial centre of the world4 #ae4 ,explain in detail the business of a note broker1 giving some particulars of his responsibility in connection with the paper handled4 #af4 ,enumerate the leading items of resource and liability in a national-bank statement4 #ag4 ,a bank receives from the comptroller of the treasury #ajj1jjj in new bank-notes of its own issue4 ,what ledger entry8 ,a bank retires #aj1jjj of its own bank-notes4 ,what entry8 #ah4 ,discuss fully the points which should enter into a proper estimate of the value of paper offered for discount4 #ai4 ,give the successive and necessary steps in the formation of a joint stock company4 #bj4 ,why are companies which properly exist and belong in one ,state sometimes organised under the laws of another ,state8 #ba4 ,explain very fully the difference as to resource and liability between a bondholder and a stockholder4 #bb4 ,how may a stock company be dissolved8 #bc4 ,what is the difference between a voluntary association1 such as a society or club1 and a stock company8 #bd4 ,explain very fully the meaning of ,limited when it forms part of the legal title of a company4 #be4 ,is it legal to sell shares of stock and issue mortgage bonds upon the same property8 ,what relationship do they bear one to the other8 ,,examination ,,paper ,,note4--,the following questions are given as a means by which the student may test for himself whether he has attentively pursued the lessons of the course or not4 ,it is recommended that each student as he finishes the course write out the answers to the questions in full4 ,only such answers need be attempted as the student can frame from a careful study of the course4 #a4 7a7 ,give some particulars in which the ,bank of ,england differs from our larger national banks4 7b7 ,enumerate some of the advantages afforded to the community and to commerce in general by banking institutions4 7c7 ,how do private banks and trust companies differ from national banks8 #b4 7a7 ,what is a stock certificate8 ,how does it differ from a mortgage bond8 7b7 ,at what rate must ,united ,states #d per cents be bought to net #c4bdfe per cent48 7c7 ,give the successive and necessary steps in the formation of a stock company4 ,how can the stock of a company or corporation be increased8 #c4 7a7 ,what provision is usually made for the redemption of municipal bonds which have a long period to run8 7b7 ,what is meant when we say that a certain railway is in the hands of a receiver8 7c7 ,give some of the advantages which stock companies have over partnerships4 #d4 7a7 ,tell how you would receipt for a payment on a note4 ,why is not an ordinary separate receipt sufficient8 7b7 ,discuss fully the points which should enter into a proper estimate of the value of paper offered for discount4 7c7 ,explain in detail the business of a note broker1 giving some particulars of his responsibility in connection with the paper handled4 #e4 7a7 ,what are the advantages to the banks of a city of their central clearing-house8 7b7 ,show by a diagram how collections are made between distant points4 7c7 ,what is a certified check8 #f4 7a7 ,enumerate some of the abuses of rate discrimination in the ,united ,states and tell how they are met4 7b7 ,what are the advantages to the public of freight organisations which arrange for through service8 7c7 ,explain in detail the methods adopted by leading and competing railway lines to regulate and adjust freight rates4 7d7 ,what are differentials8 ,how are 7#a7 through and 7#b7 local passenger rates regulated8 #g4 7a7 ,give the particulars in which a warehouse receipt resembles and differs from 7#a7 a promissory note1 7#b7 a bill of lading4 7b7 ,what are the advantages to the importer of bonded warehouses8 7c7 ,what are the duties of our foreign consuls with reference to the importation of goods8 ,,commercial ,,law ,i4 ,,the ,,different ,,kinds ,,of ,,contracts ,commercial law relates to ,,contracts4 ,these are made by almost every one4 ,a person cannot ride in a street-car without making a contract with the company for carrying him4 ,if he goes into a store and buys a cigar1 a stick of candy1 or a tin whistle1 he has made a contract with the man behind the counter1 who owns the store or is his salesman4 ,tramps and thieves are about the only persons who live without making contracts4 ,in that respect they are like the birds of the air1 getting whatever they desire whenever the chance is seen4 ,a contract has been defined as an agreement to do or not to do some particular thing4 ,these are the words used by one of the greatest of ,american judges4 ,the reader may turn to his dictionary and find other definitions that contain more1 if he pleases1 but this will answer our purpose4 ,all contracts may be put into three classes1 and each of these will be briefly explained4 ,first1 ,,sealed ,,and ,,unsealed ,,contracts4 ,what do we mean by a contract that is sealed8 ,it is one to which the person who signs it adds1 after his name1 a seal4 ,but what is a seal8 ,it may consist of sealing-wax1 stamped in a peculiar manner1 or a wafer made of sealing-wax1 or a paper wafer4 ,in the olden times when people could hunt and fight but were not able to write their names1 they put a seal at the end of a contract made by them2 in other words1 the seal supplied the place of a name4 ,each person's seal differed from the seal of every other4 ,it had its origin really in the ignorance of the people4 ,as they were unable to write their names these distinct signs or marks1 called seals1 were put on instead of their signatures4 ,with the changes brought by time the form of this device or seal1 required by law1 is much simpler than it was centuries ago4 ,indeed1 in every ,state persons use the letters ,l4 ,s41 with brackets around them1 instead of a seal4 ,they mean the place of a seal1 and are just as good in every way as any kind of seal that might be used4 ,here are two of the forms of seals in most common use3 ,illustration ,any contract that has a seal after the name of the signer is a sealed contract1 and every other is called an ,,unsealed1 ,,oral1 or ,,verbal contract4 ,if a contract was written and a seal was added after the signer's name1 and there was another exactly like it in form1 but without a seal1 this would be called an unsealed or verbal contract1 and in law would differ in some important respects from the other4 ,this is true in every ,state except ,california1 where the difference between sealed and unsealed contracts is no longer known4 ,the second class of contracts are called ,,express ,,and ,,implied ,,contracts4 ,by an ,,express ,,contract is meant one that is made either in writing or in words4 ,but the reader may ask1 ,are not all contracts of this kind8 ,by no means4 ,many contracts exist between people which have not been put into words4 ,suppose ,a should ask ,b for employment and it should be given to him1 but no word should pass between them about the price to be paid4 ,the law would imply that ,b must pay him whatever his work was reasonably worth4 ,if ,a should come at the end of the week for his pay and ,b should say to him3 ,i never made any bargain with you concerning the price1 and ,i am unwilling to pay you anything1 ,a could1 if he understood the law1 say to ,b3 ,you told me to work1 and the law implies that you must pay me whatever my work is worth4 ,how much would the law give him for his work8 ,just what the employer was paying other men for the same kind of work4 ,another class of contracts are called ,,executed and ,,executory4 ,an ,,executed ,,contract is one that is finished1 done1 completed4 ,if ,i should go into a store and ask the price of a book and say to the salesman1 ,i will take it1 and give him the money1 and take the book with me1 this would be an executed contract4 ,an ,,executory ,,contract is one that is to be completed4 ,suppose the salesman did not have the book and ,i should say to him1 ,please get it for me and ,i will come in next week and pay you for it1 this would be an executory contract2 and it would remain so until ,i came in and got the book1 as ,i had promised to do1 and paid the price4 ,these are the three most general classes of contracts made by persons in daily life4 ,almost all persons make contracts of each kind during their lives4 ,sealed contracts are not as common as unsealed ones1 yet they are frequently made4 ,every deed for the sale of land or lease for the use of it is a sealed contract4 ,,ii4 ,,the ,,parties ,,to ,a ,,contract ,to every contract there must be two or more persons or ,,parties4 ,when ,robinson ,crusoe was on his island all alone1 eating breadfruit and entertaining himself by throwing stones at the monkeys1 he perhaps had a good time1 but he could not make any contracts4 ,but as soon as ,friday came along they could make contracts1 trade1 and cheat each other as much as they pleased4 ,a contract1 therefore1 is one of the incidents of society4 ,a person sailing in a balloon alone could not make a contract1 but if two were in the basket they might amuse themselves by swapping jack-knives or neckties1 and these exchanges would be completed or executed contracts and would possess1 as we shall soon see1 every element of a contract4 ,again1 persons must be able1 or ,,competent1 to make contracts4 ,what kind of ability or competency must a person have8 ,not every person can make a contract1 even though he may wish to do so4 ,a ,,minor1 or person less than twenty-one years of age1 though he may be very wise and weigh perhaps two hundred and fifty pounds1 can make very few contracts which the law regards as binding4 ,in fact1 the only contracts that a minor can make for which he is bound are for necessaries--clothing1 food1 and shelter4 ,nor can he make contracts even for these things in unlimited quantities4 ,a minor could not go into a store and buy six overcoats and bind himself to pay for them4 ,the storekeeper must have common sense in selling to him and keep within a reasonable limit4 ,in one of the well-known cases a minor bought a dozen pairs of trousers1 half a dozen hats1 as many canes1 besides a large supply of other things1 and1 refusing afterward to pay the bill1 the merchant sued him1 and the jury decided that he must pay4 ,the case1 however1 was appealed to a higher court1 which took a different view of his liability4 ,the judge who wrote the opinion for the court said that the merchant must have known that the minor could not make any personal use of so many trousers1 canes1 and hats1 and ought not to have sold him so many4 ,in short1 the court thought that the merchant himself was a young minor in intelligence and ought to have known better than to sell such a bill to a person under age4 ,of course it is not always easy to answer this question1 ,,what ,,are ,,necessaries8 ,much depends on the condition of the person who buys4 ,a merchant would be safe in selling more to a minor living in an affluent condition of life than to another living in a much humbler way4 ,quite recently the question has been considered whether a dentist's bill is a necessity1 and the court decided that it was a proper thing for a minor to preserve his teeth and to this end use the arts of the dentist4 ,again1 is a bicycle a necessity8 ,if one is using it daily in going to and from his work1 surely it is a necessity4 ,but if one is using it merely for pleasure a different rule would apply1 and a minor could not be compelled to pay for it4 ,cigars1 liquors1 theatre tickets are luxuries2 so the courts have said on many occasions4 ,the courts1 in fact1 regard a minor as hardly able to contract even for necessaries1 and he is required to pay for them for the reason that as he needs them for his comfort and health he ought to pay for them4 ,in other words1 his duty or obligation to pay rests rather on the ground of an implied contract 7which has been already explained7 than of an express one4 ,the force of this reasoning we shall immediately see4 ,suppose a minor should say to a merchant who was unwilling to sell to minors1--having had1 perhaps1 sad experience in the way of not collecting bills of them1--,i am not a minor and so you can safely trust me4 ,i wish to go into business and wish you would sell me some goods4 ,suppose that1 relying on his statement1 the merchant should sell him hats or other merchandise for which he would afterward decline to pay1 on the ground that he was a minor4 ,suppose he proved that he really was one--could the merchant compel him to pay the bill8 ,he could not compel him to fulfil his contract1 because1 as we have already said1 the law does not permit a minor to make a contract except for necessaries4 ,the court1 then1 would say to the merchant3 ,it is true that you sold the goods to this minor2 he has indeed lied to you2 still the court cannot regard a contract as existing between you and him4 ,on the other hand1 a court will not permit a person to defraud another1 and the merchant could make the minor pay for the deceit or wrong that he had practised on him2 and the measure of this wrong would be the value of the goods he had bought4 ,thus the court would render justice to the merchant without admitting that the minor could make a legal contract for the goods that he had actually bought and taken away4 ,,iii4 ,,the ,,parties ,,to ,a ,,contract 7,continued7 ,in the former article we told our readers that there were some persons who could not make contracts1 and among these were ,,infants or ,,minors4 ,in most of the ,states a person1 male or female1 is a minor until he or she is twenty-one years old4 ,in some of the ,states1 among them ,illinois1 a female ceases to be a minor at eighteen years of age4 ,by the ,roman law a minor did not reach his majority until the end of his twenty-fourth year1 and this rule has been adopted in ,france1 ,spain1 ,holland1 and some parts of ,germany4 ,the ,french law1 though1 has been changed1 with one noteworthy exception4 ,a woman cannot make a contract relating to her marriage without the consent of her parents until she is twenty-five4 ,among the ,greeks and early ,romans women never passed beyond the period of minority1 but were always subject to the guardianship of their parents until they were married4 ,,married ,,women are another class of persons who cannot make every kind of a contract like a man4 ,once a married woman had but very little power to make contracts4 ,however great might have been her wealth before marriage1 as soon as she entered into this blissful state the law kindly relieved her of all except her real estate1 giving it to her husband4 ,on the other hand1 he was obliged to pay her bills1 which was one of his great pleasures1 especially if she was a constant traveller to the silk and diamond stores4 ,she could still keep her real estate in her own name1 but that was about all4 ,her husband took everything else2 he could claim her pocket-book1 if he pleased1 and was obliged to support her in sickness or health1 in sweetness or in any other ness4 ,the law has been greatly changed in all civilised countries in this regard1 and to-day in most ,states she can make almost any kind of a contract4 ,in some ,states1 however1 it is even now said that she cannot agree to pay the debt of another1 but this is1 perhaps1 the only limit on her power to contract4 ,she can engage in business1 buy and sell1 transfer notes1 make contracts relating to the sale and leasing of her real estate1 insure it1 build houses1 and do a thousand other things quite as freely as if there were no husband around4 ,the most of these changes widening her authority to make contracts have come within the last fifty years4 ,of course1 unmarried women can make contracts like men1 and many of them know it4 ,another class who cannot make contracts are ,,drunken ,,persons4 ,once the law regarded a drunken man as fully responsible for his acts1 and if he made a contract he was obliged to execute or fulfil it4 ,he could not shield himself by saying he did not know what he was doing at the time4 ,the court sternly frowned on him and said3 ,no matter what was your condition at the time of making it1 you must carry it out4 ,this was the penalty for his misdeed4 ,it may be the courts thought that by requiring him to fulfil his contracts he would be more careful and restrain his appetite4 ,whatever the courts may have thought1 they have changed their opinions regarding his liability for his contracts made under such conditions4 ,now they hold that he need not carry them out if he desires to escape from them4 ,there is1 however1 one exception to this rule4 ,if he has given a note in the ordinary form1 and this has been taken by a third person in good faith who did not know of the maker's condition at the time of making it1 he must pay4 ,but1 we repeat1 the third person must act in good faith in taking it1 for if he knew that the maker was drunk at that time he cannot require him to pay any more than the person to whom it was first given4 ,one other class may be briefly mentioned--the ,,insane4 ,they are regarded in the law quite the same as minors4 ,for their own protection the law does not hold them liable on any contracts except those for necessaries4 ,these are binding for the same reasons as the contracts of minors1 in order that they may be able to get such things as they need for their health and comfort4 ,for if the law were otherwise1 then1 of course1 merchants would be afraid to sell to them4 ,but as merchants can now safely sell to them whatever they truly need in the way of clothing1 food1 etc41 to make themselves comfortable1 so1 on the other hand1 the insane1 like minors1 must pay for these things1 and it is right that they should4 ,,iv4 ,,the ,,consideration ,,in ,,contracts ,having explained who can make contracts1 we are now ready to take another step4 ,besides having parties1 there must be a ,,consideration for every contract4 ,this is rather a long word1 but no shorter can be found to put in its place4 ,what do we mean by this term8 ,we mean that there must be some actual gain or loss to one or both parties to a contract1 otherwise it is not valid4 ,if1 for example1 ,a should say to ,b1 ,i will give you #ajj to-morrow1 ,b1 perhaps1 might go away very happy1 thinking that with this money he could buy a bicycle or some other fine thing2 indeed1 it was just the sum for which he was longing2 so on the morrow he goes to ,a for his money4 ,he promptly appears1 but ,a says to him3 ,i have changed my mind1 and will not give you the #ajj4 ,b asks3 ,did you not promise to give me this money8 ,certainly4 ,well1 why will you not fulfil your promise8 ,a replies3 ,i was a fool when ,i made that promise2 you are not going to give me anything for it1 so ,i am unwilling to give the money to you4 ,suppose ,b in his sorrow should go to a lawyer1 thinking1 perhaps1 that he could compel ,a by some legal proceeding to pay over the money4 ,what would the lawyer tell him8 ,why1 he would say3 ,did you promise to give ,a anything for the #ajj8 ,no1 sir4 ,then the law will not help you out4 ,you cannot get the money from him by any legal method4 ,perhaps you can get #ajj worth of fun in licking him for not giving you the money1 but you cannot get the cash4 ,but1 mind1 perhaps you had better not try to get your fun in that way1 for this is contrary to law1 and he might get much more than #ajj out of you in the way of damages for licking him4 ,in every case1 therefore1 there must be something for something4 ,now this something may be a thousand things4 ,it may be money or merchandise or work4 ,in short1 there is no end of the things that may serve as a consideration of a contract4 ,an example may be given to explain what is meant by this4 ,a man had been speculating in stocks1 and one of the rules of the stock board is that a margin or sum of money that is to be paid for stock must be paid in every case4 ,it may be that an additional margin or sum must be paid under some circumstances4 ,the speculator in this particular case was unwilling to pay this margin1 and he said to the broker3 ,if you will do as ,i wish1 and not put up this margin1 ,i will save you from any loss that may result from such conduct4 ,it was contrary to the rules of that stock exchange for the broker not to put up the margin1 and the consequence was that he was put off the floor2 in other words1 the board would not permit him to act as a member4 ,of course1 as he could not buy and sell any more stock1 he lost money2 and he went to his customer1 the speculator1 and told him that he was losing money in consequence of carrying out his order about the margin4 ,the speculator said he was sorry1 but he could not help it4 ,the broker then insisted that the speculator must make good his daily loss in consequence of doing as he had promised4 ,this the speculator would not do4 ,the broker then sued him for the amount of his loss4 ,the speculator defended on the ground that there was no consideration for the agreement he had made with the broker about the margin4 ,the court said that the loss which the broker had suffered in consequence of carrying out his contract with the speculator was a good consideration for the contract and must be made good4 ,when a contract is sealed the law implies that there is consideration1 and there need not be an actual one consisting of money1 labour1 or any other thing4 ,this seems like an exception to the rule requiring a consideration in all cases1 but the reason is this3 ,when a sealed contract is made1 the law supposes or assumes that each party made it1 clearly knowing its nature--made it carefully1 slowly1 and1 consequently1 that either a consideration had been or would be given4 ,if1 therefore1 one of the parties should refuse to fulfil it the other could sue him in a court of law4 ,the person who sought to have it carried out would not be obliged to show that he had given any consideration on his part for the undertaking1 because the seal appended to his name would imply that a consideration had been given4 ,a deed for a piece of land is a good illustration of a sealed instrument4 ,the law assumes whenever such a deed is given that the seller received a consideration for his land4 ,the money paid was a consideration received by the seller1 and the land was the consideration received by the buyer4 ,each gives a consideration of some kind for the consideration received from the other2 and this is true in all cases4 ,v4 ,,the ,,essentials ,,of ,a ,,contract ,in our last paper we told our readers that there must be a consideration in every contract4 ,sometimes this is illegal1 and when it is the effect is the same as would be the giving of no consideration4 ,suppose a robber having stolen money from a bank should afterward offer to return a certain portion if he is assured that he will not be arrested and compelled to change the style of his clothing and his place of residence for a season4 ,he cannot endure the thought of missing a game of football2 and as for striped clothes1 though very comfortable1 perhaps1 he is sure they would not be becoming4 ,suppose this agreement to return a part should be put in writing1 and after fulfilling it he should be sued by the bank for the remainder1 and also prosecuted by the ,state for committing the theft4 ,very naturally he would present the writing in court to show that he had been discharged from the crime and also from the payment of any more money4 ,but this writing would not clear him either from prosecution for the criminal offence or from liability to return the rest of the money4 ,the bank would say that although he had returned a part1 this was not a proper consideration for its agreement not to sue him2 it had no right to make such an agreement1 and consequently it could sue the robber for the remainder of the money just as though no agreement had ever been made4 ,another illustration may be given4 ,suppose a person having made a bet and lost is unable to pay the money and gives his note for the amount4 ,when the note becomes due the holder or owner sues him for the money4 ,he defends1 as he is unwilling to pay1 by saying there was no legal consideration for the note4 ,the money he promised to pay was only a wager1 which the law regards as illegal4 ,and this would be a good defence4 ,if the consideration is partly legal and partly illegal and can be divided then there can be a recovery of the legal part4 ,suppose a man owed another #ajjj for borrowed money and also a wager for the same amount1 and had given his note for #bjjj4 ,when it became due if the owner sued him he could recover only the #ajjj of borrowed money2 this much and no more1 for the reason that the consideration could be divided1 the legal part from the illegal part4 ,if no separation was possible then the note would be void and the owner could get nothing4 ,a person cannot recover for a voluntary service that he has rendered to another4 ,a man would be very mean indeed who refused to pay another for any service rendered to him that was truly valuable2 yet if he would not do so the man rendering the service could get nothing through the law4 ,suppose that a person when walking along a road should see some cattle astray in a corn-field having a good time with a farmer's corn4 ,he knows they are in the field for business and in a short time1 unless driven out1 will get the best of nature and down her efforts in corn-raising4 ,in the kindness of his heart he jumps over the fence and succeeds in driving them away4 ,suppose there happens to be among the number an unruly animal which is unwilling to leave such a tempting field of plunder and turns on him and gores him1 and he is taken to a hospital4 ,the farmer finds out who drove out the animals1 and of his injury1 but declines to give him any reward whatever4 ,can the man recover anything8 ,the law says not1 because the service is purely voluntary4 ,the question has often been asked whether a person who has made a contract to work for another and has broken it can recover for the worth of his service during the period he was employed4 ,some courts have said that a person thus breaking his contract cannot afterward recover anything1 because he does not come into court with clean hands4 ,other courts have said that though he can recover nothing on the contract he has broken1 he can nevertheless recover on a contract which the law implies in such a case for the worth of his service during the period of his employment4 ,on the other hand1 the employer can set off against his claim any injury that he may have sustained4 ,suppose he could show that the service was of no worth to him2 that he was injured rather than benefited by what he did2 then the employ could get nothing4 ,the courts have been inclined of late years to uphold an employ in recovering whatever his service was worth--not1 however1 as done by virtue of an express or actual contract with the employer4 ,he cannot sue on that2 in other words1 he cannot take advantage of his own wrong to recover anything from his employer1 but he may recover on the contract which the law implies1 as we have explained1 as much as his service was worth to his employer1 and no more4 ,another element in a contract is the meeting of minds of both parties4 ,both must understand the matter in the same sense4 ,for example1 a person offered to sell another good barley for a stated price1 and the other offered to buy fine barley at the price mentioned4 ,there was no contract between these persons1 because it was shown that good barley and fine barley were different things in the trade4 ,this1 therefore1 is one of the essential elements of a contract--the meeting of the minds of the contracting parties4 ,whether they have assented or not is a question of fact1 to be found out like any other question of fact4 ,sometimes offers are made on time1 and when they are several interesting questions may arise4 ,suppose ,a and ,b are negotiating for the sale and purchase of a piece of land4 ,a says to ,b3 ,i will give you a week to think the matter over4 ,soon after parting ,a meets ,c1 to whom he mentions his offer to ,b4 ,c says3 ,i will give you a great deal more for the land and pay you now4 ,very well1 says ,a2 the land is yours4 ,and he at once writes a letter to ,b saying that he has withdrawn his offer1 as another person has offered him more for the land and that he has sold it to him4 ,now ,b might be very much surprised by this letter4 ,very likely he would think ,a was a hard man and perhaps a dishonest one4 ,perhaps he would go to a lawyer and ask him if he could compel ,a to sell the land to him if he accepted his offer within the time mentioned and paid to him the money4 ,the lawyer would tell him--if he understood his business--that ,a had a perfect right to withdraw his offer1 even though it was made on time4 ,this would probably be brand-new knowledge to ,b1 but he would know what to do on the next occasion4 ,is this true in all cases8 ,it certainly is of all offers made in that manner4 ,how1 then1 can a person who makes an offer to another on time be compelled to regard it8 ,the way is simple enough4 ,the person to whom the offer is made should give something--a consideration--to ,a1 who makes the offer1 for the delay4 ,then he would be bound by it4 ,but the courts would say to ,b1 if nothing were given3 ,why should ,a's offer bind him so long as he is to get no compensation or consideration for it8 ,and we shall see again and again in these papers this element of consideration is ever present1 and must be to make transactions legal4 ,so with respect to an offer on time--if the person to whom it is made is really desirous of having it continue1 in order to find out whether he can raise the money to pay1 or for some reason1 he can make the offer binding by giving to the offerer a consideration for the specified time1 whatever that may be4 ,,vi4 ,,contracts ,,by ,,correspondence ,a great many contracts are made by correspondence4 ,a person writes a letter to another offering to sell him merchandise at a stated price4 ,the other replies saying that he will accept the offer4 ,is a contract made at the time of writing his letter and putting it into the post-office1 or not until it is received by the person who made the offer8 ,the law in this country is that a contract is made between two persons in that way as soon as the answer is written and put into the post-office beyond the reach of the acceptor4 ,the post-office usually is the agent of the person who uses it1 but when a person sends an offer to another by mail the post-office is regarded a little differently4 ,it is the agent of the person who sends the offer and also his agent in bringing back the reply4 ,consequently1 when this is put into the hands of the agent the law regards the offerer as bound by his offer4 ,in like manner1 if a creditor should send a letter to his debtor asking him to send a cheque for his debt and he should comply1 the post-office would be the agent of the creditor in carrying that cheque1 because he requested his debtor to use this means in sending his cheque to him4 ,but when a request is not made and a debtor sends a cheque on his own account1 the post-office is his agent for carrying it to his creditor4 ,a person making an offer by letter can of course withdraw it through the telephone or telegraph if he likes at any time before the letter has been received by the other party4 ,suppose the price of things is rising and ,a1 finding that his goods are also advancing1 should1 after making an offer of some of them by letter1 send a telegram stating what he had written and withdrawing his offer4 ,this would be a proper thing for him to do4 ,if1 on the other hand1 ,a's offer had been received by ,b before his withdrawal and accepted1 then ,a would be bound by it4 ,can ,b1 after mailing his letter of acceptance and before it has been received by ,a1 withdraw his acceptance8 ,no1 he cannot--for the reason above given1 that the post-office is the agent of ,a1 in carrying both his offer and ,b's reply4 ,if this were not so1 if the post-office were the agent of ,b in sending his reply1 then of course it could be revoked or withdrawn at any time before it reached ,a4 ,suppose ,a should send an offer and afterward a withdrawal and the withdrawal should be received first4 ,notwithstanding this1 however1 if the person to whom the offer was sent should accept the offer1 could he not bind ,a8 ,one can readily see that all the proof would be in the possession of ,b1 the acceptor4 ,if he were a man without regard for his honour and insisted that he received the offer first1 ,a might be unable to offer any proof to the contrary and fail to win his case should ,b sue him4 ,but the principle of law is plain enough2 the only difficulty is in its application4 ,doubtless cases of this kind constantly happen in which the acceptor has taken advantage of the other to assent to an offer actually received after its withdrawal4 ,suppose ,b should in fact receive ,a's offer first in consequence of the neglect of the telegraph company to deliver ,a's message of withdrawal promptly1 which if delivered as it should have been would have reached ,b before the letter containing the offer1 what then8 ,a doubtless would be bound by his offer1 but perhaps he could look to the telegraph company for any loss growing out of the affair4 ,if he could show that he had been injured by fulfilling the contract the telegraph company might be obliged to pay this4 ,let us carry the inquiry a little further4 ,suppose the messenger on receiving the telegram took it to ,b's office and it was closed and he made diligent inquiry concerning ,b's whereabouts and was unable to find him4 ,suppose he had gone off to a horse race or to a football game1 would it be the duty of the messenger boy to hunt him up at one of these places8 ,by no means4 ,if ,b was not at his place of business when he ought to have been1 the company would not be bound to deliver the message to him elsewhere1 except at his house1 unless he had left a special direction with the company concerning its delivery4 ,generally a telegraph company states very clearly its mode of delivering messages and the time when it will do so1 the place1 etc41 to which it will take them1 and it is not obliged to hunt all over creation to find the person to whom a message is addressed4 ,that would be a very unreasonable rule to apply4 ,therefore1 if the company did its duty ,a could not recover anything from it4 ,would ,a1 then1 it may be asked1 be obliged to fulfil his contract with ,b8 ,he has sent his withdrawal1 which if delivered in time would have been received by ,b before the letter containing the offer4 ,b1 however1 is away from his place of business1 and perhaps is where he ought not to be--perhaps he is playing poker or doing something worse--ought ,a under such circumstances to be held by his offer8 ,this is a closer question and one that we will leave our readers to think over4 ,surely ,a would have a strong reason for claiming that he ought not to be held under such conditions4 ,a person who makes an offer cannot turn it into an acceptance4 ,an old uncle offered by letter to buy his nephew's horse for #ajj1 adding3 ,if ,i hear no more about the matter ,i consider the horse as mine4 ,the uncle1 not hearing from the nephew1 proceeded to take the horse4 ,at this stage of the proceedings1 however1 the nephew was not inclined to suffer his good old uncle to make the contract entirely himself1 and refused to give up the horse4 ,the court said that one person could not do all the contracting himself1 and this is what he virtually undertook to do4 ,if a person could1 by correspondence or otherwise1 make a contract in this manner1 one can readily see the dangers that might follow4 ,some positive act must be put forth by the other party showing or indicating his assent before it will be regarded as given4 ,a person1 in truth1 is not obliged to pay any attention to an offer of this kind4 ,rewards are often made4 ,they are found almost every day among the newspaper advertisements4 ,these are binding under various conditions4 ,an interesting question has been raised in the case of a runaway horse whose owner has made an offer to any finder who returns him4 ,suppose a person at the time of catching the animal did not know of the reward but does know of it when returning the beast to his owner2 can he claim the reward8 ,this question has somewhat puzzled the judges1 but the more recent opinion is that the catcher can claim the reward like a person who knew at the time of stopping the pleasure of the runaway4 ,of course1 there is no question concerning these rewards when they are known at the time of acting on them4 ,in one of the cases tried not long since1 an old farmer offered a reward of #ae to any one who would find the person who had stolen his harness and also #ajj to the man who would prosecute the thief4 ,the harness1 in truth1 was worth not even this small sum and the thief still less4 ,yet he was caught and prosecuted1 and then the prosecutor and finder claimed the rewards4 ,the farmer's excitement had cooled off by this time and he was not so loud and liberal as he was at the time of finding out his loss4 ,he refused to pay1 saying that he did not really mean to offer these sums as rewards1 and the court decided in his favour1 declaring that his offer of reward could not be regarded strictly as one1 but rather as an explosion of wrath4 ,in another case a man's house was burning up and his wife was inside1 and he offered any one #ejjj who would go in and bring her out--dead or alive4 ,a brave fellow went in and rescued her4 ,then he claimed the reward4 ,was the man who made the offer obliged to pay1 and could he not have escaped by insisting that this was simply an explosion of affection and not strictly an offer or promise of reward8 ,he tried to hold on to his money1 but the court held that this was an offer he must pay4 ,possibly after the recovery of his wife his valuation of her had changed somewhat from what it was while his house was burning up4 ,one or two more cases may be given4 ,some persons who prepared carbolic-smoke balls offered to pay #ajj to any person who contracted influenza after having used one of the balls in the manner clearly set forth and for a stated period4 ,this offer was in the form of a newspaper advertisement4 ,a person bought one of them and followed carefully all the directions about its use4 ,the influenza1 though1 did not disappear as advertised1 so he sued to recover the offer2 and1 having proved clearly that he had complied faithfully with the directions and had not been cured1 the court said that the owners must pay up and compelled them to give him the #ajj offered4 ,another case may be briefly mentioned4 ,a offered to sell ,b his farm for #ajjj4 ,b offered #iej1 which offer was declined4 ,then ,b offered to pay #ajjj4 ,by that time ,a had changed his mind and declined to accept ,b's offer4 ,then ,b sued to get the farm1 offering to pay the money2 but the court held that ,b had declined ,a's offer and consequently that1 as ,a had not made any other offer1 there was no contract4 ,finally1 it may be added that the phrase by return mail does not always mean by the next mail1 although the person to whom the offer is made cannot delay his answer long4 ,on the other hand1 the person to whom such a letter may be addressed can bind the other by an acceptance very quickly after the receipt of the offer1 although not literally by the first mail going out4 ,,vii4 ,,what ,,contracts ,,must ,,be ,,in ,,writing ,some contracts must be in writing to be valid2 for instance1 contracts relating to the sale and leasing of lands4 ,this writing must be signed by the person who is charged with having made it4 ,suppose that ,a has sold his farm to ,b for an agreed sum and refuses to give him a deed on his payment of the amount or offer to pay1 and ,b wishes to compel ,a to carry out or execute his agreement4 ,b must show a writing signed by ,a to that effect1 otherwise the court will not pay any attention to the matter4 ,on the other hand1 if ,a claims that such an agreement has been made with ,b1 who is unwilling to pay the money and receive the deed1 he must show in court a writing signed by ,b that he has agreed to purchase the farm at a stated price and to receive a deed of the same4 ,if such a writing is not forthcoming when required1 he cannot recover anything from him4 ,this is the meaning of the phrase1 therefore1 that a writing must be signed by the party charged with having made the agreement4 ,the writing need not be very formal4 ,it need not specify the amount that is to be paid2 in other words1 it need not specify the consideration4 ,some courts say1 however1 that it must contain this fact or statement4 ,it may be in pencil4 ,i presume it would be sufficient if written on a blackboard with chalk4 ,but it must be a writing of some kind signed by the party to be charged2 that is the essential thing4 ,the courts have also said that this writing need not be on a single piece of paper4 ,if the two parties have made an agreement by a series of letters1 an offer on the one side and an acceptance on the other1 and the agreement can be fully shown from the series of letters1 this is sufficient writing4 ,if a man buys a farm and pays a part of the price and goes away saying that he will pay the remainder within a week1 expecting then to do so and receive a deed1 the seller1 if he chooses1 can escape giving that deed and parting with his farm4 ,the payment of a part of the money does not bind the bargain1 nor will the courts1 though knowing this1 compel the seller to give such a deed4 ,the reader may ask1 if this is the law1 cannot the farmer practise a fraud on the buyer by receiving his money and keeping it and the farm too8 ,he cannot do both things4 ,if he refuses to give the deed he must1 on the other hand1 return the money2 if he refuses to do this the buyer can compel him by a proper legal proceeding to refund the amount4 ,in this way the buyer gets his money back again1 but not the farm that he bought4 ,it is said that this statute is as often used as a shield to protect men in doing wrong as in preventing frauds4 ,in numberless cases persons1 just like the farmer imagined1 have used this statute as a means to protect them in not carrying out their agreements4 ,this happens every day4 ,this statute also relates to other matters4 ,one clause says that an executor or administrator cannot be required to pay anything at all out of his own pocket on any promise that he has made unless it be in writing4 ,every one knows about the duties of an executor or administrator4 ,an executor is one who settles the estate of a person who has died leaving a will directing what shall be done with his wealth4 ,an administrator is a person who settles the estate of a deceased person leaving no will4 ,he is appointed by the law1 which fully states his duties4 ,let us suppose that an executor is employed to settle an estate1 and that he employs a carpenter to make some repairs on a house belonging to the estate4 ,the contract is fairly enough made between the carpenter and the executor4 ,let us also suppose that he has no lien on the house for the work that he has done1 or that he has lost his lien by reason of not having filed it in time1 as the law requires4 ,afterward he goes to the executor and demands payment for the repairs that he has made4 ,let us suppose that the estate is insolvent and cannot pay all of its debts in full4 ,at the time of making this contract neither party supposed this would happen4 ,but1 unhappily1 debts have come to light so large and numerous that there is not property enough to pay all the creditors everything that is due them4 ,the executor says to the carpenter3 ,there is not property enough to pay all of the creditors and you1 unfortunately1 must fare like all of the rest1 and you cannot be paid a larger percentage on your share than the others4 ,to the carpenter this would be unwelcome news1 and he would doubtless say to the executor3 ,i made this contract with you expecting that you would pay me1 and if the property of the estate is not sufficient you ought to pay me this4 ,i am a poor man and cannot afford to lose any of my hard-earned money4 ,the executor might say to him3 ,i am as poor as you and ,i cannot afford to pay you out of my own pocket1 and in law you cannot compel me to do this4 ,and1 in truth1 the carpenter could not do this unless the executor had made a contract in writing1 agreeing in any event to pay whether there was money enough belonging to the estate or not4 ,another clause says that a person cannot be required to pay the debt of another unless the agreement is in writing4 ,if ,a went into a store to buy goods and ,b should be a little afraid to trust him1 and ,c1 a friend of ,a's1 should happen to be present and say to the merchant1 ,let ,a have these goods and if he does not pay you ,i will1 this would be the promise to pay the debt of another2 and if ,a should not pay it ,c could shield himself behind this statute and escape without paying anything4 ,there is another clause relating to the sale of ordinary merchandise4 ,the law says that contracts for ordinary merchandise must be in writing if the amount is over #ej4 ,in some ,states the amount is #ce4 ,long ago it was decided that this statute did not relate to contracts for work1 and they therefore must be carried out or fulfilled in the same manner as though no statute existed1 for work is not merchandise4 ,,viii4 ,,contracts ,,for ,,the ,,sale ,,of ,,merchandise ,to make a contract of sale there must be1 as we have seen1 two or more parties1 and a consideration must also be given4 ,the sale is complete when the property1 or title1 or ownership in the thing bought passes from the seller to the buyer4 ,it is not necessary in order to make a valid sale to deliver the thing bought4 ,if the title or ownership in the thing is not transferred1 the sale still remains incomplete4 ,the law supposes or assumes that a person will always pay for a thing purchased4 ,if ,i should go into a store1 inquire the price of a book1 and1 after learning the price1 should say to the salesman1 ,i will take the book1 and he should wrap it up and give it to me and ,i should then walk out with the book under my arm1 he doubtless would come to me and say in his politest manner3 ,why1 sir1 you have forgotten to pay me for it4 ,suppose ,i should say3 ,oh1 yes2 but ,i will come in to-morrow and pay4 ,but if ,i happened to be a stranger1 and especially if there was a suspicious look about me1 and he should say they did not give credit in that store1 and ,i was still inclined to walk out with my book1 he could insist that there had been no sale and that ,i must give the book to him4 ,the law would protect him in taking it from me if he did not use undue force4 ,the law assumes1 unless some different rule exists1 that the buyer will always pay for the thing purchased1 yet in law there is no sale unless the purchase money is actually paid4 ,of course1 credit may be given in a store--that may be the practice2 and if it is understood between buyer and seller that credit is to be given1 then a sale is complete as soon as the bargain is struck4 ,indeed1 so complete is the sale that if the buyer should say to the salesman1 ,i will leave this here and return and take it in a short time1 and during his absence the store should be burned up and everything perish1 the buyer would be obliged to pay for the book4 ,in other words1 after it had been sold1 if still kept there the seller would be merely the keeper1 or bailee1 which is the legal term1 and he would be obliged to use only ordinary care in keeping it4 ,suppose a thief should come in and take it away--would the seller be responsible for the loss8 ,not if he had used the same care in protecting it as in protecting his own property4 ,another illustration may be used to bring out the nature of a sale more clearly4 ,suppose ,i have bought a particular work in a store1 either paying cash or buying it on credit1 if that be the practice of the store1 and ,i should say to the salesman3 ,i am going down street and on my return will call and take the book4 ,during my absence ,i meet a friend and tell him of my purchase1 and he should say to me3 ,i am very desirous to get that work2 ,i am sure there is no other copy in town4 ,will you not sell it to me8 ,suppose ,i gave him an order1 directed to the seller1 requesting him to deliver the work to the person to whom ,i have sold it4 ,if he should take the order to the store he could claim the book as his own and the original seller would be obliged to give it to him4 ,it is very important1 however1 in many cases to make a delivery of the thing sold4 ,as we have already stated1 the title as between the buyer and seller is actually changed or transferred at the time of making the sale and it is therefore complete4 ,but if a delivery of the thing sold is not actually made and another person should come along and wish to buy it1 and the seller should prove to be1 as he sometimes is1 deceitfully wicked1 and should sell and deliver it to him1 the second buyer would get a good title and could hold it just as securely as though it had not been previously sold to another4 ,of course1 the second buyer must be an innocent person1 knowing nothing about the first or prior sale4 ,if he did not know and pays the money for the thing he has bought and takes it away1 he gets a perfectly good title as against the first buyer4 ,if he was not innocent the first buyer could claim it and the second one would lose his money unless he was able to get it back again from the seller4 ,of course1 such a transaction is a fraud on the part of the seller4 ,therefore it is safer in all ordinary transactions for the buyer to take the thing he has purchased unless he is sure that the seller is a perfectly honest man1 who will not practise any such fraud upon him4 ,suppose the seller had things in his keeping that had been sold but not taken away1 and should fail in business1 or that persons to whom he owed money should sue him and try to hold not only all of the goods still owned by him but even those which he had sold4 ,could they succeed as against a person who had bought them in perfectly good faith8 ,it is said that the buyer in such cases can get his goods after clearly showing that he had bought them and paid for them2 but the evidence of his purchase must be perfectly clear1 otherwise the court will not permit him to take them away and he will lose them4 ,if a merchant is to deliver a thing as a part of the contract of sale1 then1 of course1 he must do this2 otherwise he is liable for his failure to carry out his contract4 ,this rule applies to most purchases that are made in stores4 ,the merchant intends to deliver the thing sold1 the buyer purchases expecting this will be done1 and the price paid for them is enough to cover the cost of taking them to the buyer's house2 in other words1 the price of the goods1 whatever it may be1 is intended to be enough to pay the merchant for his cost in delivering them1 and in such cases the contract is not complete until a delivery has actually taken place4 ,again1 if the thing purchased is a part of a mass of goods1 a separation must be made to complete the contract4 ,if a man should buy #ajj barrels of oil which were a part of #ajjj barrels1 a separation of some kind must be made of the particular ones sold4 ,if one should buy trees in a nursery1 to make the contract complete the particular trees must in some way be known1 either by rows or every other tree--in short1 in some way the trees must be clearly set apart4 ,if part of a mass of timber is bought1 the particular logs must be marked or in some way pointed out from the other part of the mass4 ,this rule applies to all things bought that form a part of a large mass4 ,the mode of pointing them out depends on the nature of the thing2 a different kind of separation must be made in some cases from what is necessary in others4 ,,ix4 ,,the ,,warranties ,,of ,,merchandise ,the rule of law in buying is1 the buyer must look out for himself2 and if things are not what he supposed they were he has no rightful claim against the seller4 ,the maxim of the law is1 ,let the purchaser beware--let him take care of himself4 ,the rule of the ,roman law was different4 ,it was the duty of the seller to tell the buyer of all the defects known by him in the thing sold1 and if he did not he was responsible for any loss caused by any defect or imperfection found after purchasing that was known by the seller before4 ,the modern principle may be looked at from two points of view4 ,first1 the seller need not make known any defects which the buyer can find out himself4 ,suppose a man is thinking of buying a horse that is 7though he does not know it7 blind in one eye4 ,the law says that the buyer ought to be able to see such a defect quite as readily as the seller1 and if he does not the fault is his own4 ,blindness in one eye is quite as easily seen as would be the lack of an ear or tail4 ,and this principle applies very generally in all purchases4 ,it covers all visible defects4 ,nor can any one find much fault with this rule1 because the buyer generally has as good eyesight as the seller1 and if he takes pains1 as he should1 he is able to discover all ordinary defects4 ,furthermore1 the buyer doubtless often knows quite as much about the things he purchases as the seller4 ,but the courts also say that it applies to other defects4 ,suppose a horse has the heaves or the rheumatism1 which is known to the seller but of which the buyer has no knowledge whatever4 ,the seller is not obliged to make known this defect to the buyer1 and if he is silly enough to purchase on his own wisdom he must abide by the consequences4 ,if he does inquire and is deceived1 that is another thing4 ,but if he asks no questions1 or the seller does not deceive him in any way1 the seller is not responsible for defects known by him at the time of the sale4 ,this also is a well-understood rule4 ,the seller1 we repeat1 must not deceive the buyer4 ,in one of the well-known cases a man owned a ship that he was desirous of selling4 ,she was unsound in several places and the seller put her in such a position that her defects could not be readily found out4 ,he did this for the purpose of deceiving the buyer and succeeded4 ,when the buyer learned how he had been tricked he began a legal proceeding to get back a part of the money that he had paid1 and won his case4 ,and rightfully1 too1 for the reason that the seller had deceived him1 which he had no right to do4 ,another case may be stated of a man who was desirous of purchasing a picture1 supposing that it was once in the collection of an eminent man4 ,the seller knew perfectly well that the picture did not come from that collection and that the buyer was acting under a delusion4 ,he did not say that the picture had belonged to the collection or had not2 he was silent1 although he knew that the buyer would not purchase it if he knew the truth about its former ownership4 ,for some reason or other the buyer did not make any inquiry of the seller1 or if he did was not told4 ,but after purchasing the picture the buyer learned that he was mistaken and that the seller knew this at the time of making the sale4 ,he sought to recover the money he had paid and succeeded1 the court saying that a fraud had been practised upon him2 that it was the duty of the seller1 knowing what was passing in the mind of the buyer1 to have told him the truth about the former ownership of the picture4 ,it will be seen1 therefore1 that the seller must not deceive the buyer in any way or practise any fraud on him2 if he does he will be responsible for the loss or injury befalling the other4 ,what1 then1 ought a buyer to do in purchasing a horse1 for example1 in order to guard himself against the unwelcome discovery of disease or other defect8 ,clearly1 he ought to require the seller to give him a warranty4 ,a proper way is1 if the transaction be an important one1 to have the warranty in writing and signed by the seller4 ,it need not be very long2 a few words usually are enough4 ,there is a very important difference that every one ought to understand between words that are spoken at a sale1 which are mere representations1 and words that form a warranty of the thing sold4 ,if ,i should go into a store to buy a piece of flannel1 and ask the salesman if it was all wool1 and he should assure me that it was1 and ,i1 ignorant of the quality of the material1 and desirous of buying a piece of all-wool flannel1 should say to him3 ,i know nothing about it2 ,i rely entirely on your statement1 and he should say3 ,it is all right2 all wool1 and no cotton1 his words would be a warranty1 and if the flannel proved to be made partly of straw or cotton1 or something besides wool1 ,i could sue the seller on his warranty1 and recover for the loss ,i had suffered1 whatever that might be4 ,but suppose ,i were a flannel manufacturer myself1 and knew at the time he was saying this to me that the flannel was partly cotton2 in short1 knew a great deal more about it than he did1 and was not deceived in any way by what he said1 his words would not be a warranty1 because my action in buying the flannel would not be influenced by them4 ,what test1 then1 is to be applied8 ,evidently whether or not the buyer acts on the words spoken and is deceived by them4 ,if1 relying on them1 he buys and is deceived or misled to his loss or injury1 then the words will be taken as a warranty and protect the buyer4 ,if1 on the other hand1 he is not deceived by what is told him1 and he buys on his own knowledge and judgment1 then the words are not a warranty4 ,one or two other points may be briefly noticed4 ,the law says that the seller always warrants the title to the thing sold--in other words1 that he is the owner4 ,he may not say one word about the matter1 but the law implies that he is the owner and would not sell a thing that did not belong to him4 ,if he should prove not to be the owner1 the buyer could recover for his loss4 ,another point about adulterations4 ,the common law does not regard an article as adulterated1 giving the buyer the right to claim something back1 unless it has been materially changed by the foreign substance4 ,all1 or nearly all1 of the ,states have made statutes within recent years1 or re-enacted old ones1 holding sellers strictly responsible for the quality1 especially of provisions1 sold4 ,these statutes generally require the seller to sell absolutely pure articles1 and he cannot shield himself by saying that he was ignorant and innocent of their nature if they proved to be other than pure articles4 ,if a grocer should sell cotton-seed oil for olive oil1 even though doing so ignorantly1 without any intention to deceive1 he would nevertheless be held liable under the statutes that now exist in most of the ,states2 and public opinion strongly favours the strict execution of these statutes4 ,x4 ,,common ,,carriers ,what is meant by a common carrier8 ,a person or company that is obliged to carry merchandise or passengers for a price or compensation from place to place4 ,a common carrier cannot select his business1 like a private carrier1 but must carry all merchandise that is offered2 or1 if he is a carrier of persons1 all persons who desire to go and are willing to respect all reasonable regulations that relate to carrying them4 ,the principal common carriers are railroads1 steamboats1 and canal companies4 ,the liability of common carriers is very important to all who travel or send merchandise4 ,a common carrier is liable for all losses not happening by the act of ,god or by the public enemy4 ,by act of ,god is meant unavoidable calamity1 such as lightning and tempests1 and by public enemy is meant a nation at war with another4 ,once these were the only exceptions4 ,carriers were therefore insurers of the goods left with them to be carried to some other place4 ,this early rule of law fixing their liability has been greatly changed4 ,carriers can now make a contract relieving themselves of all liability for losses in carrying goods except those arising from their own negligence4 ,the courts in a few cases have said that they can relieve themselves even from this1 but this is not generally the law4 ,they can1 though1 by special contract relieve themselves from all other liability4 ,a railroad company1 therefore1 can make a contract for carrying wheat from ,chicago to ,new ,york1 relieving itself from all liability for loss by fire unless this shall be caused by its negligence4 ,if a fire should occur without any negligence on the part of the company and goods on the way should be destroyed1 it could not be held responsible for the loss if there was such a contract between the shipper and carrier4 ,a carrier is no longer an insurer for the safe carrying of goods4 ,the courts have permitted carriers to thus lessen their liability because they are willing to take goods at lower prices than they would if they were to be responsible for all losses4 ,they now virtually say to the shippers3 ,if you are willing to be your own insurers1 or insure in insurance companies1 and hold us for no losses except those arising from our own negligence1 we are willing to carry your goods at a much lower rate4 ,and1 as shippers are willing to take the risks themselves for the sake of getting lower rates1 the practice has become universal for lessening the liability of carriers in the manner described4 ,suppose that goods are burned up by fire4 ,the shipper must be the loser unless he can show that it was caused by the negligence of the carrier4 ,as he often can show this1 he imagines that the carrier is still living under the old law and is liable as he was in the early days of railroad and steamboat companies4 ,in truth1 this is not so4 ,his liability is measured by his contract1 and there can be no recovery for any loss unless negligence on the carrier's part is clearly shown1 and in many cases this is not easily done4 ,though common or public carriers are obliged to take and transport almost everything1 they may make reasonable regulations about the packing1 etc41 of merchandise4 ,suppose a shipper were to come to a railroad company's clerk with a quantity of glass not in boxes1 and should say to him1 ,i wish this glass to be carried to ,new ,york2 and the clerk should say to him that the rules of the company required all glass to be packed in boxes lined with straw1 and that the rule could not be set aside1 however short might be the distance4 ,very likely the shipper would say to the agent3 ,this is expensive2 ,i wish you to take it as it is4 ,and if he should say to the agent that he was willing to run the risk of breakage1 then1 perhaps1 the clerk might take it in2 yet1 even on those terms1 some carriers would not4 ,at all events1 if the clerk should insist on following the rules1 the shipper could not justly complain1 for this rule is a very reasonable one1 as the courts have many times declared4 ,suppose a shipper should ask a carrier to take a load of potatoes or apples to ,montreal in very cold weather4 ,the carrier says to him3 ,there is danger of the apples being frozen4 ,i am unwilling to carry them unless you will take the risk of their freezing4 ,he could insist on these terms1 because it would be unreasonable to require carriers to transport such merchandise and keep their cars heated4 ,they are not made in that way and every shipper knows it1 nor are carriers required to heat them4 ,the courts have said that any reasonable regulations respecting the merchandise to be carried1 the packing1 etc41 must be respected4 ,a carrier could refuse positively to carry dynamite or powder unless it was packed in a very careful manner4 ,doubtless many things are carried in ways quite contrary to the regulations1 without the knowledge of the carrying companies4 ,packages are rarely examined and things may be put within1 out of sight1 of which carriers know nothing4 ,a carrier is not required to have cars enough to carry all goods on unusual occasions4 ,but it must have enough to carry without delay all that come from day to day4 ,,xi4 ,,the ,,carrying ,,of ,,passengers ,millions ride on steamboats1 in the street-cars1 and by steam-railways1 and the question is an important one with them4 ,what are the rights and duties of company and passenger8 ,first1 it is the duty of a company carrying passengers to provide every one with a seat4 ,this rule does not apply to street-cars but it does to steam-railways4 ,in some cases it is said of the street-car passengers that those who use the straps pay the money from which dividends are paid4 ,but the rule is otherwise that applies to railway companies4 ,they must furnish seats for their passengers and cannot demand fares until seats are secured4 ,having taken him on board and seated him1 what degree of care must the company use in carrying the passenger8 ,it may seem strange to say that the company is not obliged to use as much care as in carrying a barrel of apples or an animal4 ,goods must be moved1 kept dry1 perhaps1 and cared for in other ways4 ,an animal must be fed4 ,in carrying cattle stops must be made for rest4 ,but the passenger takes care of himself4 ,he gets in and out and provides his own rations4 ,therefore the law puts on the carrier the duty of using only a reasonable degree of care in taking him from place to place4 ,in other words1 the railway is not an insurer of life1 as it is of goods or other merchandise4 ,as passengers are of themselves able to get around and use some care with respect to their own movements1 the law lessens the responsibility4 ,perhaps the reader would like to know what the company must do in carrying a passenger's baggage4 ,this is a very practical question4 ,if he takes his grip in the seat with him1 he alone is responsible for its safety4 ,if some one should get in the seat beside him and in going out should take the grip along with him1 the owner could not ask the company to make good his loss4 ,on the other hand1 if he delivers his grip to the company1 then the company is bound by the same rule as when carrying other goods and merchandise4 ,the price paid for his ticket is also enough to pay the cost of carrying his trunk or other baggage1 therefore the carrier cannot escape paying for its loss when having possession of it on the ground that the service is purely voluntary and without compensation4 ,as the company gets compensation it must pay for any loss while taking baggage from one place to another unless the loss or damage should be due to no fault or negligence of the company4 ,every now and then we receive a cheque for a trunk or other piece of baggage stating that in the event of loss the company will not be responsible beyond a certain amount--#ej1 or #ajj1 or other sum4 ,is that statement on the cheque worth anything8 ,the courts have held that if one of these cheques is taken by a passenger and he reads it he is bound thereby4 ,this is a contract between carrier and passenger1 consequently he is bound by the figures mentioned under ordinary circumstances4 ,this rule is just and is based on a good reason4 ,as every one knows1 whenever a trunk is lost it is very difficult for the carrier to get any proof of the real value of its contents4 ,all the evidence is in the hands of the passenger4 ,if he is without a conscience and apparently proves that the things in it were worth #bjj or #cjj1 he may succeed in getting this much1 although it might have been full of shavings4 ,it is because of much experience of this kind that carriers have tried to limit the amount for which they will be responsible1 and so long as they do this in a fair1 open way the law regards their conduct with favour4 ,if1 however1 a passenger receives such a cheque and at once puts it in his pocket and does not know its true nature1 then the courts have held that he was not bound by any limit of this kind4 ,again1 a person has no business to put diamonds and rubies and jewellery and the like in his trunk4 ,if he does and they are lost1 he cannot compel the carrier to pay for them4 ,the courts have said that passengers have no right to put such things in their trunks expecting to make carriers pay for them when they are lost4 ,if there are things of unusual value in a trunk1 the carrier should be informed or else the owner should assume the risk4 ,one word more4 ,an express company is a common carrier and is bound by the same rules as other carriers except so far as such rules may be changed by definite contract4 ,when a definite contract is made1 then the rules of ordinary carriers do not apply4 ,,xii4 ,,on ,,the ,,keeping ,,of ,,things ,there are some principles of every-day importance relating to the keeping of things4 ,in our last lecture was mentioned the carriage of merchandise by common carriers4 ,they not only carry merchandise--they also keep it4 ,when merchandise reaches its destination and shippers have had a reasonable time to take it away1 but neglect to do so1 a common carrier is no longer liable for its safe keeping as a common carrier but only as a warehouseman4 ,what do we mean by this8 ,as we have seen1 a common carrier1 unless he makes a special contract for carrying the merchandise1 is liable for everything lost or injured except by the act of ,god or the public enemy2 or1 as we have already said1 he is an insurer for safely taking and keeping the merchandise while it is in his charge4 ,when the merchandise has reached the final station1 and the person to whom it is shipped or sent has had ample time to take it away and does not do so1 the carrier still keeps the merchandise in his warehouse or depot1 but he is no longer liable as a carrier for keeping it but simply as a warehouseman4 ,in other words1 if goods are kept by him for this longer period1 he is liable for their loss only in the event of gross negligence on his part4 ,if a fire should break out and the goods be burned1 unless it happened by his own gross negligence1 he would not be liable for the loss4 ,so1 too1 if a thief should break into his warehouse and steal the goods1 he would not be liable for the theft unless it was shown that he was grossly negligent in not providing a safer building4 ,if the rats and mice should destroy the goods while they were in the common carrier's building1 the same rule would apply2 or if they were injured or destroyed in any other manner1 he would not be responsible for the loss unless gross negligence was shown4 ,different rules apply1 depending on whether the keeper1 or bailee1 gets any compensation for storage4 ,in our lecture relating to sales we stated that the seller would not be liable for the loss of anything intrusted to his keeping after it had been bought of him unless he was grossly negligent1 for the reason that no reward or compensation is paid to him for storage4 ,there are1 therefore1 two rules which govern many cases4 ,if a person keeps a thing for a reward or compensation1 then he is bound by a stricter rule of diligence than in those cases in which he receives nothing for his service4 ,this accords with the common reason of mankind4 ,evidently if a person keeps a thing simply as an act of kindness1 he ought not to be responsible in the same sense that one is held responsible who is paid a fixed price for such service4 ,another good illustration is that of a bank which keeps the bonds of a depositor in its safe for his accommodation4 ,the bank does not pretend to be a safe-deposit company or anything of the kind1 but it has a large vault and wishes to accommodate its customers by keeping their stocks and bonds and other articles for them while they are off on vacations or for other reasons4 ,it is a common thing for a customer to go to his bank1 especially in the country1 and ask the cashier to keep his valuables during his absence4 ,the cashier is willing to comply1 and the things are intrusted to him2 but as the bank receives no compensation for this service it is not responsible for their loss unless it is grossly negligent in the matter4 ,suppose they are put in the safe among other valuables belonging to the bank and a robber breaks in and takes them away--is the bank responsible8 ,certainly not4 ,on the other hand1 if the customer should leave his valuables at a safe-deposit company1 a different rule would apply1 because that company charges him for keeping the articles4 ,it is therefore bound by a stricter rule than the bank4 ,it must use the greatest care1 and if neglectful in any respect it is responsible for the consequences4 ,suppose a person should say to me3 ,will you be good enough to leave this package with a jeweller on your way down street8 ,i say to my friend3 ,certainly1 with the greatest pleasure4 ,what degree of care must ,i use in carrying that package8 ,only ordinary care4 ,suppose in going along the street a thief1 without my knowledge1 should walk beside me and slip his hand into my pocket and take the package1 and on my arrival at the jewellery store ,i should find that it was gone4 ,should ,i be responsible for the loss8 ,certainly not1 because ,i had neither received nor expected to receive any reward for taking the package to the store4 ,of course1 if it could be shown that ,i was unnecessarily negligent in carrying the parcel1 the owner might be justified in claiming damages4 ,one thing more may be added4 ,if a bailee should be a scoundrel and sell the thing left with him for safe-keeping and receive the money1 the true owner could1 nevertheless1 claim the thing wherever he could find it4 ,the owner would not get a good title4 ,this rule of law applies to everything except negotiable paper4 ,a person who buys that in good faith1 honestly1 not knowing that it was stolen1 and pays money1 gets a good title4 ,this is the only exception to the above rule in the law4 ,,xiii4 ,,concerning ,,agents ,very many persons act as agents for others4 ,much of the business of modern times is carried on by persons of this class4 ,all the managers of corporations are agents of the railways1 banks1 manufacturing companies1 and the like4 ,they are to be seen everywhere4 ,every salesman is an agent4 ,in short1 the larger part of the modern commerce of the world is done by agents4 ,,agents ,,are ,,of ,,two ,,kinds1 ,,special ,,and ,,general2 and there are important differences between the two4 ,a ,,general ,,agent is a person who transacts all the business of the person hiring or appointing him1 called a principal1 or all his business of a particular kind4 ,a principal might have several general agents for the different kinds of business in which he was engaged4 ,suppose he has a cotton-factory and a store and a farm2 he might have three general agents1 each managing one of these enterprises4 ,a general agent may be appointed in different ways4 ,this may be done by a written contract4 ,very often1 however1 no such contract is made1 and the person comes to act in a different way4 ,a cashier of a bank1 for example1 is a general agent to transact its business1 but the mode of appointing him rarely consists of anything more than a resolution of the board of directors4 ,more often than otherwise his appointment is purely verbal1 by word of mouth4 ,and1 again1 the authority of an agent thus to act is often found out by his acts1 known and approved by his principal1 or in other ways4 ,suppose that ,a should manage ,b's store for him1 buying and selling merchandise with ,a's knowledge2 by thus putting him before the world as ,b's agent the law would say that he really was so1 and ,b would be bound by his acts within a limit soon to be explained4 ,this1 perhaps1 is the more common way in which the world learns of the authority of an agent's act4 ,he does a great variety of things which it is well known must be within the knowledge of his principal or employer and1 as they are known by the employer and the employer says nothing in the way of disowning or repudiating these acts1 he is bound by them4 ,sometimes1 indeed1 persons pretend to be agents for others when really they have no authority to act4 ,when this is done1 and the person for whom they are pretending to act finds out what they are doing1 then it is his immediate duty to take such action as the circumstances require to disown the acts of such pretenders4 ,if this is not done he may be bound by them4 ,his action in adopting or approving is called the ,,ratifying of an agent's act2 and when this is done the agent's action is just as valid as though authority had been given to him to act in the beginning4 ,the principal's conduct in thus ratifying an agent's acts relates back to the time when the agent first began to act4 ,a ,,special ,,agent is appointed to do a particular thing and this is more often done in writing4 ,perhaps the most common illustration is the appointment of some one to act for another at the annual meeting of a corporation to vote on stock4 ,such a person is called a ,,proxy1 and persons often act as through another in this manner4 ,sometimes one person serves as a proxy or agent for a very large number of shareholders4 ,the liability of a principal for the acts of a general agent are very different from his liability for the acts of a special agent4 ,in the former case the principal is said to be responsible for all the acts of his agent that are within the general scope of his business4 ,in other words1 if it is generally known that ,a is acting as the general agent of ,b in conducting his business1--we will say managing his cotton-factory1--,a will bind his principal ,b for everything done by him as general agent in conducting that business4 ,suppose ,a was acting as a general agent of an insurance company and1 among other things1 was told by the president or board of directors of the company not to insure property in a given place below a stated rate4 ,suppose a person should go to this agent1 desiring to have his property insured1 but at a lower rate1 and suppose that the agent should finally yield and make a lower rate as requested4 ,could his company repudiate the contract8 ,clearly not1 for it was ,a's duty to make contracts for insuring properties4 ,if the insured knew that the agent had been expressly limited in the rates for insuring and that he was going contrary to his instructions in making the lower rate1 then1 indeed1 the company would not be bound by the contract4 ,otherwise it could not repudiate the act1 for it would fall within the general principle that a principal is bound by the acts of his agent done within the general scope of his business or employment2 and such a contract clearly would be within the limit4 ,for1 indeed1 this is the very business of the agent--to effect insurance4 ,the only thing necessary1 therefore1 for a person doing business with a general agent is to find out whether he is such an agent2 and when this is learned then a person can safely transact business with him1 doing anything within the general scope of his powers1 unless the person actually knows that some limit or restriction has been put upon the agent4 ,it is not his duty to find out what the powers of a general agent are1 but simply whether he is a general agent or not4 ,but the rule is very different that applies to the liability of a principal who employs a special agent4 ,in such cases it is the duty of the person doing business with him to inquire what his powers are1 for the principal will not be bound beyond these4 ,such an inquiry1 therefore1 must be made4 ,he must ask the agent to show the authority under which he is appointed1 or in some way clearly convince the other what his powers are before any business can be safely done4 ,the authority of a special agent is often stated in writing1 and the paper is called ,a ,,power ,,of ,,attorney4 ,in selling land an agent should always have such a power1 because a good title to land can only be given in writing1 and this power of attorney should be copied in the records kept for this purpose with the deed itself to show by what authority the agent acted in selling the land4 ,every now and then when a person buys a piece of land and examines the title to find out whether it is perfect or not1 he discovers that somewhere in the chain of title a deed was made by the agent of the seller instead of the seller himself1 and the buyer had forgotten to put the power of attorney on record with his deed4 ,the omission to do this is often serious4 ,it is in truth just as important for an agent to have a proper power of attorney in such a case as to give a proper deed for his principal1 and the one paper should be recorded quite as much as the other1 as both are parts of the same story4 ,sometimes an agent appoints a subagent4 ,this may be orally or in writing4 ,a good illustration is that of the collection of a cheque deposited with a bank4 ,suppose a cheque is deposited in a bank in ,chicago drawn on a bank in ,newark1 ,n4 ,j4 ,the ,chicago bank is1 in the first instance1 the agent for collecting it4 ,the bank would send the cheque to another in ,new ,york1 which would be its subagent1 and that bank in turn would send it to a third bank in ,newark1 which would be a subagent of the ,new ,york bank4 ,thus there would be two subagents1 besides the agent1 employed in collecting the cheque4 ,there is an important question relating to the liability of one of these agents or subagents in the event of the negligent performance of the duty2 which is responsible8 ,generally1 it is said1 if the general agent appoints a subagent he is nevertheless responsible for his act4 ,suppose a street contractor employs a subagent to repair a street and he digs a hole and improperly guards it and some one falls into the place and is injured1 can the person thus injured look to the contractor or to the subcontractor for compensation for his injury8 ,the contractor is liable in such cases4 ,it may be added1 however1 that although he is liable to the person injured1 he may be able to recover of the subcontractor or subagent4 ,but this rule does not apply to the banks in every ,state4 ,in some of them the first bank in which the cheque was deposited is liable for the negligence of others that may be afterward employed in collecting it1 and this rule prevails in the federal courts4 ,in a larger number of ,states the first bank fully performs its duty in selecting a proper or reputable agent1 and in sending the cheque to it for collection4 ,should the second or subagent be neglectful1 the depositor of the cheque could compel that agent1 and not the first1 to make its loss good4 ,,xiv4 ,,the ,,law ,,relating ,,to ,,bank ,,cheques ,a ,,cheque has come to be one of the most common of all writings4 ,almost everybody receives more or less of them4 ,there are some principles that ought to be understood by every holder or receiver of a cheque which1 we fear1 are not as well known as they should be4 ,first of all1 a person ought to present his cheque for payment soon after receiving it4 ,some people are quite negligent in this matter and carry cheques around in their pocket-books for several days before presenting them for payment4 ,it may not be convenient to take them to a bank1 and so they are carried around2 perhaps their owners forget they have them4 ,they ought not to do so1 for the reason that the maker of a cheque really says to the holder3 ,this is an order that ,i give to you on my bank for the money mentioned4 ,if you go at once you can get payment1 but ,i do not promise to keep it there always for you--only for a short time4 ,now if a person is willing to accept a cheque at all1 he ought to present it within the time the holder intended1 and if he does not and the bank fails1 the loss falls on the holder and not on the maker4 ,what time does the law fix for presenting cheques for payment8 ,the rule everywhere is that the holder must present a cheque received by him1 if drawn on a bank in the place where he lives1 on the day of receiving it or on the next day4 ,if the cheque is drawn on a bank at a distance1 out of town1 then he should send it to that bank1 either directly or by leaving it with another bank for that purpose1 on the same day as he received it or the next day4 ,in other words1 he must take steps to collect the cheque either on the day of receiving it or the following one4 ,a friend of mine gave a cheque to a merchant in payment of a small bill4 ,both lived in the same town1 where the bank on which the cheque was drawn was also located4 ,about a week afterward the bank failed and the merchant wrote to him1 stating the unwelcome fact and that the cheque had not been collected and desired him to send another4 ,i asked my friend if he complied with the request1 and he said3 ,certainly4 ,i told him that he ought not to have done so1 for he was under no obligation either in law or morals to do such a thing4 ,had he known the above rule he would not have sent the second cheque1 for it was pure negligence on the part of the merchant in not presenting it--in fact1 on the same day it was received4 ,a person may1 of course1 hold a cheque for a much longer period than the time above mentioned and present it and receive payment1 but the point that we are trying to make clear is that the risk of holding it during this period is the holder's and not the risk of the maker of the cheque4 ,i suppose the merchant in the above case had1 perhaps1 lost the cheque4 ,every now and then one is mislaid and1 consequently1 is not presented for payment when it should be1 but the maker ought not to suffer for the negligence of the receiver of his cheque4 ,the rule of law that we have given is founded on justice1 and if the receiver is negligent in not presenting it as he should1 the holder ought not to suffer4 ,it is the duty of a bank to pay a cheque just as it is drawn1 and if it makes any mistakes it must suffer4 ,the reason for this rule is that the maker does not expect to see his cheque again after it leaves his hand1 and when he puts his money in a bank for safe-keeping the bank virtually says to him that it will pay only on his order just as he has written4 ,it will guard his interests carefully and pay no forged cheques or cheques that have been altered in dates or amounts1 to his injury4 ,now1 it is quite a common thing for cheques to be forged1 and still more common for them to be raised4 ,a scoundrel gets a cheque that is genuine1 ordering a bank to pay #ah1 and changes it to #ahjj4 ,he presents it for payment and it is paid4 ,by and by the depositor finds out that he has not as much money in the bank as he supposed he had there4 ,what has happened8 ,some one has altered one of his cheques and drawn out too much4 ,he goes to the bank and makes inquiry1 learns that this is so1 and then demands that it shall make the amount good to him4 ,usually a bank is obliged to pay4 ,there is one limit to this rule4 ,a man making a cheque must be careful to write it in such a way that changes or alterations cannot easily be made4 ,if he is careless1 leaving ample space so that changes can be made in the amount1 then he will be considered negligent1 and a bank would not be obliged to make good his loss4 ,if1 on the other hand1 he is careful in drawing his cheques then a bank's duty to protect him is plain1 and it is liable in the event of neglecting to do so4 ,a few years ago a man drew a cheque for #bej1 dated it three days ahead1 and left it with his clerk1 directing him to draw the money on the day written in the cheque and pay the men who worked for him1 and went away4 ,the clerk thought that he would like to keep that money himself and take a little journey also1 so he changed the date to one day earlier1 went into the bank on that day and drew the money1 and started for the ,klondike or some other place4 ,the maker of the cheque soon found out what had happened and demanded of the bank to make the amount good4 ,the bank said to him3 ,suppose the clerk had waited one day longer and then drawn the money1 you would have been the loser just the same4 ,the man admitted all this1 but replied1 nevertheless1 that he had not changed the date2 that the bank ought to have seen the alteration before paying1 and as it did not it was negligent in that regard1 and the bank was obliged to lose4 ,when a person takes a cheque he naturally supposes that the bank on which it is drawn owes the money to him because he can truly demand it4 ,suppose a bank refuses to pay1 can the holder then sue the bank for money8 ,in six ,states--,illinois1 ,south ,carolina1 ,missouri1 ,kentucky1 ,colorado1 and ,texas--the holder of such a cheque can sue the bank and get his money4 ,the courts in those ,states say that a cheque is an assignment or transfer of the amount of money stated to the holder of the cheque from the time that the cheque was given him4 ,the law in all of the other ,states is otherwise1 and a bank for a good reason can decline to pay a cheque1 and1 in any event1 the holder cannot sue the bank for the amount4 ,if it will not pay he must look to the maker and not the bank for payment4 ,of course1 a cheque must always be drawn against a deposit1 and it is a fraud on the part of a person to draw a cheque on a bank when he has no money there4 ,sometimes mistakes are made by banks in their bookkeeping1 and they think they have not the money to pay when in truth they have4 ,in such cases they sometimes decline to pay1 but even if they had the money the law says that there is no contract between the holder of a cheque and the bank on which it is drawn1 and therefore the holder cannot sue it should it refuse to pay4 ,this rule1 however1 is rather losing ground and the other is coming into more general favour--that a cheque does operate to transfer the money of the maker to the holder and1 consequently1 that he has a right to sue the bank for the money4 ,cheques are made payable either to bearer or order4 ,if a cheque is made payable to bearer it can be transferred from one person to another simply by handing it to him--by delivery2 but if a cheque is made payable to order1 then the person who receives it1 if wishing to transfer it to some one else1 must write his name on the back4 ,if he writes his name on the back it is called a blank indorsement1 and this form is often used in transferring cheques4 ,if1 however1 a person intends to send a cheque through the mail he should never write it payable to bearer1 but always payable to the order of a particular person1 so as to require his name to be written thereon in order to make a good transfer4 ,this is a much safer way of sending cheques than simply by making them payable to bearer4 ,,xv4 ,,the ,,law ,,relating ,,to ,,leases ,a ,,lease ,,is ,,an ,,agreement1 and1 as every one knows1 usually relates to the hiring of lands and houses4 ,if the agreement is to be for a longer period than one year it should be in writing1 for if it be not either party can avoid it1 not morally but in law4 ,the statute of frauds1 which has been explained1 would shield either party in not carrying out such an agreement if it were not in writing if by its terms it was to last for a longer period than one year4 ,there is another very important reason for putting such an agreement in writing4 ,much of the law relating to the two parties1 landlord and tenant1 is one-sided and in favour of the landlord4 ,our law on that subject is based on the ,english law4 ,it was imported in the early colonial days1 and1 though it has been greatly changed by statute and by decisions of the courts1 it is still very one-sided1 as we shall see before finishing this paper4 ,for this reason1 especially1 all leases relating to houses and stores or other buildings1 even for a short period1 should be in writing1 with the rights and duties of both parties fully stated1 so that both may clearly know what to do and to expect4 ,unless something is said in the lease concerning repairs the landlord is not obliged to make any4 ,this statement shows at once the need of having a written lease4 ,if the house is out of order--the locks1 blinds1 doors1 and windows are not in good order--the tenant cannot claim anything of the landlord or require him to put them in good condition4 ,even if a house should become unfit for habitation in consequence of fire1 or is blown down1 or is flooded with water1 the landlord is not bound to do anything unless he has stated that he will in his lease4 ,a fire broke out not long since in a large warehouse and burned it so completely as to render it wholly unfit for use2 indeed1 all the merchandise in it was wholly consumed4 ,nevertheless1 when the lease expired and the tenants refused to pay as they had agreed to do1 the landlord brought a legal proceeding against them to compel them to pay during the entire period1 as though they had been staying there and selling goods and making money1 and they were compelled to pay4 ,this is the common law on the subject1 and every tenant is bound to pay in such cases unless he has clearly stated in his lease that he is not to be holden in the event of the destruction of the building by fire1 flood1 lightning1 or other cause4 ,furthermore1 it may be added that leases nowadays are often furnished with blank spaces to be filled up with names1 the amounts to be paid1 times of payment1 etc41 and persons often sign them without even reading them4 ,they should not do this4 ,they should be careful to read them over two or three times or more1 until they fully understand them and are sure of their nature before signing or executing them4 ,people are still more negligent in taking out insurance policies without reading them4 ,they are very long and parts of them are printed in fine type and1 perhaps1 are quite difficult1 especially for old eyes1 to read4 ,in truth some of the most important parts are put in the finest print--some of the exceptions against loss and other matters1 which1 we are quite sure1 if a person when taking out a policy should read over and understand he would insist on having changed4 ,if a house becomes unfit for living therein by its own fault--for example1 if it is overrun with rats1 or becomes so decayed that the weather invades and is thereby rendered unfit--the tenant1 so the law says1 has indeed the privilege of quitting1 if he did not know these things at the time of entering2 but if he did1 he would be required to live there1 however much he might dislike the company of rats or the presence of the snow or rain1 and also to pay his rent2 or1 if quitting for that reason1 he would still be responsible for the rent as he would if living in the house4 ,an eminent legal writer has stated the principle in this way3 ,the tenant can leave if the defect was not known or anticipated by him1 or known or anticipated if he had made a reasonable investigation or inquiry before he took the lease4 ,a tenant is not required to make general repairs without an agreement1 but he must make those that are necessary to preserve the house from injury by rain and wind4 ,if the shingles are blown off or panes of glass are broken others must be put in their places2 and it is said that he would be bound even for ornamental repairs1 like paper and painting1 if he made an agreement to return the house in good order4 ,a tenant of a farm must manage and cultivate it by the same rules of husbandry as are practised in his vicinity1 and if his lease ends by any event that is uncertain and could neither have been foreseen nor foretold1 he is entitled to the annual crop sowed or planted by him while he was in possession4 ,as we have stated1 if the house is wholly destroyed the tenant must still pay the rent1 for the reason1 which to many may seem absurd1 that the law regards the land as the principal thing and the house as secondary4 ,it is true that a man1 in the event of his house burning down1 might pitch a tent on the ground and live there1 but it would be a decidedly chilly way of living1 especially in the winter-time1 in the northern part of our country4 ,if a tenant should agree to return and deliver the house at the end of the term in good order and condition1 reasonable wear and tear only excepted1 he would be obliged to rebuild the house if it burned down4 ,once more1 we ask1 in view of these things1 ought he not to make a written lease and well understand its terms before signing it8 ,the times for paying rent are usually specified in the lease1 if one is made4 ,when they are not the tenant is governed by the usage of the country or place where he lives4 ,when nothing is said about underletting the whole or a part to some one else the tenant has a right to do this1 but remains bound to the landlord for his rent4 ,generally when written leases are made there is a clause stating that the tenant cannot underlet any portion or all without the landlord's consent4 ,a tenant is not responsible for taxes unless it is expressly agreed that he shall pay them4 ,if a lease be for a fixed time the tenant loses all right or interest in the land as soon as the lease comes to an end1 and he must leave then or the landlord may turn him out at once1 or1 in other language1 eject him4 ,if1 however1 he stays there longer with the consent of the landlord he is then called a tenant at will and cannot be turned out by the landlord without giving a notice to him to quit4 ,the statutes of the several ,states have fixed the length of time that a notice must be given by the landlord to his tenant before he can turn him out4 ,in many ,states a notice of thirty days must be given2 sometimes sixty days' notice is required1 or even longer4 ,it is an important question what things a tenant may take away with him at the expiration of his lease4 ,of course1 there is no question whatever with respect to many things4 ,besides his wife and children he may take all his furniture and other movable property4 ,but there are many things fixed to the house by the tenant that he desires to remove if he has the right to do so1 and many questions have been asked and decided by the courts relating to this subject4 ,the method of fastening them to the house is the test usually applied to determine whether they can be taken away or not4 ,if they are fastened by screws in such a way as to show that the tenant intended to take them away1 he can do so1 otherwise he cannot4 ,in modern times the rule has been changed in favour of the tenant1 and whatever he can remove without injuring the house1 leaving it in as good condition as it would otherwise be1 he can take away2 for example1 ornamental chimney-pieces1 coffee-mills1 cornices that are furnished with screws1 furnaces1 stoves1 looking-glasses1 pumps1 gates1 fence rails1 barns or stables on blocks1 etc4 ,on the other hand1 a barn placed on the ground cannot be removed1 nor benches fastened to the house1 nor trees1 plants1 and hedges not belonging to a gardener by trade1 nor locks and keys4 ,of course1 all these things may be changed by the written lease1 and it should be clearly stated what things may be removed concerning which any doubt may arise4 ,we have heard of a case in which a tenant put a pier-glass into a house1 fastening it by means of cement4 ,he asked and was given the landlord's permission to do this at the time of putting it in1 but when the lease ended the landlord would not allow him to take it out1 and an appeal was made to a court1 which decided in favour of the landlord4 ,doubtless this decision is correct4 ,if the glass could have been taken away without injuring the wall then it belonged to the tenant4 ,this shows the need of putting such matters in writing2 otherwise the tenant will suffer unless the landlord be a man of the highest integrity4 ,,xvi4 ,,liability ,,of ,,employer ,,to ,,employ,s ,persons who are employed in mills1 in erecting buildings1 by railroad companies1 and others1 are frequently injured while pursuing their employment1 and the question has often arisen whether the employer was liable for the injury thus suffered by them4 ,the more important of these questions we propose to answer in this and the following lecture1 as they are matters of every-day importance to many people4 ,first of all1 an employ to recover anything for the loss that may have happened must show that in some way his employer was negligent4 ,he cannot get something simply because he has been injured4 ,the law in no country has ever said that he could4 ,in all cases he must show that his employer failed in his duty in some way toward him to lay the foundation of an action against him4 ,this is the first principle to keep clearly in mind4 ,again1 it is said that an employ cannot recover if the injury has happened to him in consequence of the negligence of a fellow-servant4 ,by this is meant a person engaged in the same common employment4 ,it is not always easy to determine whether two persons employed by the same company are fellow-servants1 as we shall soon see1 but the principle of law is plain enough that in all cases where they are thus acting as fellow-servants they cannot recover for any injury4 ,the law says this is one of the risks that a person takes when he enters the service of another4 ,suppose a person is at work mining coal and is injured by another person working by his side through his negligence4 ,however severely injured he may be he cannot get anything1 because the person through whose negligence he has been injured is a fellow-workman4 ,but many employs may have the same common employer and yet not be fellow-servants4 ,for example1 a brakeman would be a fellow-servant with the conductor and engineer and other persons running on the same train or on other trains belonging to the same company1 but he would not be a fellow-servant working in the same line of employment with those who are engaged in the repair-shop of the company4 ,this statement is quite sufficient to show the difficulty there is sometimes in deciding whether a person is a fellow-servant or not4 ,if a person is injured through the negligence of another employed by the same company who is not a fellow-servant1 then he can recover if there are no other difficulties in the way1 otherwise he cannot4 ,it does not follow that fellow-servants are of the same grade or rank2 the test is whether they are acting in the same line of employment4 ,the brakeman's position is not so high as that of the engineer or conductor1 yet all three are acting in the same line of employment1 and if any one of them was injured by another in that part of the service the employer would not be liable4 ,in a very large number of cases1 therefore1 employers are not liable for accidents happening to their employs1 because they are injured through the negligence of other employs engaged in the same line or subdivision of the common service4 ,perhaps employers escape more frequently on this ground than on any other from paying anything for losses4 ,yet there is another ground on which they often escape paying anything4 ,an employ is supposed when making his contract with his employer to take on himself all the ordinary risks arising from his employment4 ,these in many cases are very numerous4 ,he does not assume extraordinary risks1 but he does assume all ordinary risks that are likely to happen to him4 ,employs are injured every day and yet can recover nothing1 because their injury is simply a common one1 the risk of which they have assumed4 ,would it not be possible to make an employer liable for them all8 ,undoubtedly an employ could make a contract of this kind if he wished and his employer was willing to do so1 but if they did the employer would be unwilling to pay as high wages4 ,the greater the risk assumed by the employ the larger is the compensation paid2 the one thing is graded by the other4 ,it was stated when considering the rights and duties of common carriers that they have been lessening their liabilities2 on the other hand1 they are carrying for smaller prices than they once did4 ,doubtless a carrier would be willing to assume more risks--every kind of risk1 in short--if he were paid enough for it1 but shippers ordinarily are willing to assume many risks for the sake of the lower rates and insure their risks in insurance companies4 ,just so the working-men prefer higher wages and assume many risks of their employment4 ,there is nothing unfair in this4 ,for example1 the persons who are engaged in making white lead run an unusual risk in pursuing their employment4 ,it is said nowadays that if they use the utmost care in protecting themselves from inhaling the fumes that arise in some stages of this process1 they can live quite as long as other people4 ,but unless they do exercise every precaution their system finally becomes charged with the poison that arises from this process and their lives are shortened4 ,they well understand this before beginning the work2 they are told of the risks and are paid high wages4 ,if1 therefore1 they undertake such employment1 well knowing the risks1 they have no right to complain if their health after a time suffers4 ,no fraud has been practised on them1 and we do not know that they do complain if they suffer any ill effects from their work4 ,,xvii4 ,,liability ,,of ,,employers ,,to ,,employ,s 7,continued7 ,in our last lecture we stated some of the principles relating to the liabilities of employers to their employs2 in this lesson the subject will be continued4 ,an employer is bound to use some care or precaution1 and if he does not will be responsible for his neglect4 ,one of these is he must employ persons who are fit for the work they are set to do4 ,if an employer in mining should put a man to work by the side of another to mine coal who he knew was not a skilful workman1 and1 in consequence of this unskilful workman's unskilfulness1 other miners were injured1 he would be responsible for hiring such a man4 ,every one will see the justice of this rule4 ,the employer must also give proper instructions to the person employed whenever he does not understand his duties4 ,if a person is employed to run a laundry machine who does not understand how to work it1 and other employs are injured through his ignorance1 the employer would be liable4 ,he must1 therefore1 tell such a person what to do2 he has no right to hazard the lives of others by putting any one who has no knowledge of a machine to work without instructing him properly4 ,again1 if a person pretends to be capable1 and the employer1 believing him1 engages him1 and it is soon found out that he is not1 then it is the duty of the employer either to dismiss him or to give him proper instructions4 ,the rule1 however1 on this subject is not the same everywhere4 ,it is sometimes said that if an employ continues to work by the side of another after knowing that this other is incompetent1 it is his duty to give notice to the employer1 and if the employer continues to employ him1 to quit4 ,if he does not he assumes the greater risk arising from his knowledge of the incompetency of the other4 ,it is the duty of the employer to furnish proper appliances for his workmen4 ,he must furnish proper tools and machinery and safe scaffolding1 and in every respect must show a reasonable degree of care in all these particulars4 ,but the courts say that he is not obliged to exercise the utmost care1 because the employ takes on himself some risk with respect to the tools and machinery he uses4 ,for example1 it is said that employers are not obliged to use the latest appliances that are known or appear in the market for the use of their workmen4 ,if an employer has an older one that has been in use for years1 and the employs have found out all the dangers attending its use1 and a new one appears that is less dangerous to use1 the law does not require the employer to throw the older one away and get the other4 ,it is true that in many ,states within the last few years statutes have been passed by the legislatures requiring employers to be much more careful than they were formerly in protecting their machinery4 ,many injuries have happened from the use of belting1 and the statutes in many cases have stated what must be done in the way of enclosing belts1 and of putting screens around machinery1 and in various ways of so protecting it that persons will be less liable to suffer4 ,furthermore1 inventors have been very busy in inventing machinery with this end in view4 ,the old-fashioned car-coupler was a very dangerous device1 and many a poor fellow has been crushed between cars when trying to couple them4 ,a coupler has been made in which this danger no longer exists2 in truth1 there has been a great advance in this direction4 ,an employer must also select suitable materials on which to work4 ,this is a well-known principle4 ,if he does not1 then he is responsible for the consequences4 ,in one of the cases a person was injured while erecting a scaffolding from the breaking of a knotty timber4 ,the testimony was that the knot was visible on the surface and if the stick had been examined the defect would have been seen4 ,that seemed a slight defect1 surely1 but the consequence of using the timber was very serious1 and the court rightly held that as this defect could have been seen1 had the timber been properly examined1 the employer was responsible for the injury to a workman who was injured by the breaking of it4 ,an employer must also select suitable places for his employs4 ,in one of the cases a court said a master does not warrant his servant's safety4 ,he does1 however1 agree to adopt and keep proper means with which to carry on the business in which they are employed4 ,among these is the providing of a suitable place for doing his work without exposure to dangers that do not come within the reasonable scope of his employment4 ,in one of the cases a company stored a quantity of dynamite so near a place where an employ was working that he was killed by its explosion4 ,the court held that it was negligence on the part of the company in requiring its employ to work so near the place where this explosive material was kept4 ,it is said that if an employ knows that a machine which he is to operate is defective when accepting employment he can recover nothing for the consequences4 ,he assumes the risk whenever he thus engages to work4 ,if the service be especially perilous and yet he clearly understands the nature of it and is injured when performing it1 he can get nothing4 ,doubtless in many of these cases he is paid a larger sum for working under such conditions4 ,whatever may be the truth in this regard1 the principle of law is well understood that1 if he has a full knowledge of the risk of his situation and makes no complaint about the nature of the machinery that he is to operate1 he accepts the risks1 however great they may be4 ,in one of the cases an employ was injured by the kick of a horse belonging to his employer1 but he recovered nothing1 because he understood the vicious nature of the animal4 ,the horse had kicked others2 in fact1 its reputation for kicking was well known1 and the employ began work with his eyes wide open4 ,this rule also applies if tools1 machinery1 etc41 become defective and the employ continues to work after the defects are found out4 ,of course1 every one knows that tools wear out and machinery becomes weaker1 and that is one of the natural consequences of using them4 ,and so it is regarded as one of the risks ordinarily taken by an employ1 and therefore he can get nothing whenever he is injured through the operation of a defective machine caused by the natural wear and tear of time4 ,,examination ,,paper ,,note4--,the following questions are given as an indication of the sort of knowledge a student ought to possess after a careful study of the course4 ,the student is advised to write out the answers4 ,only such answers need be attempted as can be framed from the lessons4 #a4 7a7 ,what is a contract8 7b7 ,what is the difference between a simple and a special contract8 7c7 ,what contracts can be made by a minor8 ,when and how can he ratify them8 7d7 ,if a person makes a contract to work for one year and breaks it after working six months can he collect six months' wages8 7e7 ,give illustrations of six different kinds of contracts4 #b4 7a7 ,when is it necessary that contracts be in writing8 7b7 ,in what case is a failure of consideration a good defence to a contract8 7c7 ,is a consideration required to make an offer binding8 7d7 ,is the delivery of goods essential to make a sale complete8 #c4 7a7 ,what are the different kinds of warranties8 7b7 ,suppose ,a should buy goods and pay for them1 but not take them away1 and afterward ,b should buy them and take them away--could ,a recover the goods from ,b8 #d4 7a7 ,what is the difference between a public and a private carrier8 7b7 ,must a public carrier take everything offered8 7c7 ,what rules of liability apply to common carriers1 and how can they be modified8 ,,preparing ,,copy ,,for ,,the ,,press ,,and ,,proof-,,reading ,i4 ,,preparing ,,copy ,our purpose in these few lessons is to give some explicit directions as to the general make-up of manuscripts intended for printing4 ,every person who has even a business card or a circular to print should have a knowledge of the common phraseology of a printing house4 ,as to paper1 the size in most common use for manuscripts is what is known as letter4 ,the sheets in any case should be of uniform size4 ,avoid all eccentricity and affectation in the preparation of your manuscript1 or copy1 as printers call it4 ,the more matter-of-fact and businesslike it is the better4 ,if at all possible have your manuscript type-written1 and under no circumstances should you roll the sheets when preparing them for the mails4 ,there are a number of large publishing houses which positively refuse to touch rolled manuscripts4 ,the very first impression created by such a manuscript is one of extreme irritation4 ,a rolled proof is pretty nearly as discouraging1 yet many printers still follow the annoying practice of rolling their proofs4 ,every printing establishment of any note has its methods and customs as regards orthography1 the use of capitals and of punctuation4 ,as a rule it is best to leave doubtful points to the printer4 ,any little deviation desired may be easily remedied in the proofs4 ,paragraphs should be boldly indicated by setting the line well back in the copy4 ,extract matter included in the text should be clearly shown1 either by marking it down the side with a vertical line from beginning to end or by setting the whole well back within the compass of the text4 ,such matter is commonly set in slightly smaller type4 ,with regard to the corrections in the proofs it must be remembered that the more carefully an article is written the smaller the expense for author's corrections4 ,this charge is often a great source of contention between the author and the printer1 and1 altogether1 is an unsatisfactory item4 ,a printer is bound1 with certain reservations1 to follow the copy supplied4 ,if he does that and the author does not make any alterations there is no extra charge and nothing to wrangle about4 ,a small correction1 trivial as it may seem to the inexperienced1 may involve much trouble to the printer4 ,a word inserted or deleted may cause a page to be altered throughout1 line by line1 and a few words may possibly affect several pages4 ,the charges made for corrections are based on the time consumed in making the necessary alterations4 ,,ii4 ,,on ,,the ,,names ,,and ,,sizes ,,of ,,type ,the beauty of printed matter depends very largely upon the selection of a suitable style of type4 ,for books and newspaper work there are in use two general classes known as 7a7 old style1 7b7 modern4 ,these names refer to the shape of the letter and not to its size4 ,the several sizes of type commonly used in all plain work are as follows3 #a4 ,,pearl4 #b4 ,,agate4 #c4 ,,nonpareil4 #d4 ,,minion4 #e4 ,,brevier4 #f4 ,,bourgeois4 #g4 ,,long ,,primer4 #h4 ,,small ,,pica4 #i4 ,,pica4 #aj4 ,,english4 #aa4 ,,great ,,primer4 ,,pica is universally considered as the standard type1 just as the foot is the standard of measurement4 ,the twelfth part of a pica is the unit1 called a point1 by which type bodies are measured4 ,in many printing offices the type is known as #f-point1 #h-point1 #aj-point1 etc41 instead of as nonpareil1 brevier1 long primer1 etc4 ,the following specimens show the sizes of the type in common use3 ,illustration3 ,sample type faces pearl1 agate1 nonpareil1 minion1 brevier1 bourgeois1 primer1 small pica1 pica1 ,english1 primer4 ,the student must bear in mind the fact that these names refer to the size of the type4 ,for instance1 there may be a dozen different styles of brevier or of pica2 a particular specimen of printing may be entirely in long primer1 yet some words may be capitals1 others italic1 others boldface1 and so on4 ,,agate is the size of type used in measuring advertisements4 ,there are fourteen agate lines in an inch4 ,a complete series of type of a particular size is called a font2 as a font of brevier1 or of pica4 ,such a font would include3 ,,capitals ,,small ,,capitals lower-case ,,italic ,,capitals italic lower-case4 ,also figures1 fractions1 points1 references1 braces1 signs1 etc4 ,printers divide a font of letters into two classes3 #a4 ,the upper-case sorts4 #b4 ,the lower-case ,the upper-case sorts are capitals1 small capitals1 references1 dashes1 braces1 signs1 etc4 ,the lower-case sorts consist of small letters1 figures1 points1 spaces1 etc4 ,type lines are often bulked out by the insertion of thin strips of lead1 this being called leading4 ,where no leads are employed the matter is said to be solid4 ,,iii4 ,,the ,,terms ,,used ,,in ,,printing ,,composition4 ,this is the name given by printers to the work of setting the type4 ,the compositor holds in his hand a composing-stick1 into which he places the type letter by letter1 adding the spaces where necessary4 ,a great deal of the newspaper work of the present day is set by type machines4 ,,distributing4 ,the type of a particular page or article after it has been used on the press or for electrotyping is distributed letter by letter in the cases4 ,this work is much more rapid than composition4 ,type to be used a second time is said to be standing or is called standing matter4 ,,spaces4 ,spaces are short blank types and are used to separate one word from another4 ,to enable a compositor to space evenly and to justify properly1 these spaces are cast to various thicknesses4 ,an em quadrat is a short blank type1 in thickness equal to the letter m of the font to which it belongs4 ,quadrats are of various sizes4 ,,calendered ,,paper4 ,this name is given to very highly rolled or glazed paper such as is used in illustrated work4 ,laid paper has a slightly ribbed surface4 ,antique paper is rough and usually untrimmed at the edges4 ,it is made in imitation of old styles4 ,,caps4 and ,,lower-,,case4 ,these names are used to designate capitals and small letters4 ,,clarendon4 ,this name is commonly given to a bold and black-faced type1 such as used in text-books to bring out prominently particular words4 ,,dummy4 ,an imitation in style and size of a book or pamphlet that is wanted1 usually made up with blank paper4 ,,electrotype4 ,electrotype or stereotype plates are made from type4 ,books are usually printed from such plates4 ,,galley ,,proof4 ,as the type is set up it is removed from the composing-stick to long forms called galleys4 ,a proof taken of the whole galley at once is called a galley proof4 ,book work should be revised in galleys before it is made up into pages4 ,,impression4 ,a flat-pull or first impression is a simple proof usually pulled in job offices by laying a sheet of damp paper on the inked type and pounding with a flat-surfaced weight to get the impression4 ,,indent4 ,to set a line some distance forward1 as in the case of a new paragraph4 ,,letterpress4 ,printed matter from type as distinguished from plate printing4 ,,make-,,up4 ,to measure off type matter into pages4 ,,off-,,set4 ,it frequently occurs that as the result of insufficient drying or from other causes the impression of one sheet appears on the back of another2 such work is said to off-set4 ,,overlays4 ,in making ready for the press the pressman finds it necessary to add here and there1 by pasting1 thicknesses of paper to his roller to bring out properly the light and shade of an illustration or to get an even ink impression from the type or plates4 ,this work is called making overlays4 ,in expensive illustrated work specialists are engaged solely for the purpose of making overlays4 ,,press ,,proof4 ,the final proof passed by the author or publisher4 ,,process-,,blocks4 ,blocks produced by the photoengraving and other mechanical processes4 ,,query4 ,a mark made on a proof by the printer to call attention to a possible error1 sometimes expressed by a note of interrogation 7874 ,,register4 ,the exact adjustment of pages back to back in printing the second side of a sheet4 ,,signature4 ,the letter or figure at the foot of a sheet to guide the binder in folding2 also used by printers to identify any particular sheet4 ,the various marks and signs used by printers will be explained in the lesson on proof-reading4 ,,iv4 ,,marks ,,used ,,in ,,proof-,,reading ,the most important of the signs used in making corrections for the printer are as follows3 #a4 ,illustration ,delete or expunge4 #b4 ,illustration ,a turned letter4 #c4 ,illustration ,wrong-font letter4 #d4 ,illustration ,change capital to small letter1 7lower-case74 #e4 ,illustration ,insert period4 #f4 ,illustration ,transpose words or letters as indicated4 #g4 ,illustration ,change roman to italic4 #h4 ,illustration ,change italic to roman4 #i4 ,illustration ,space to be inserted4 #aj4 ,illustration ,matter wrongly altered to remain as it was originally4 ,dots are placed under the matter4 #aa4 ,illustration ,a bad or battered letter4 #ab4 ,illustration ,space to be reduced4 #ac4 ,illustration ,close up4 #ad4 ,illustration ,push down space or lead4 #ae4 ,illustration ,new paragraph4 #af4 ,illustration ,something foreign between the lines1 or a wrong-font space making the type crooked4 #ag4 ,illustration ,line to be indented one em of its own body4 ,when letters or words are set double or are required to be taken out a line is drawn through the superfluous word or letter and the mark ,no4 #a1 called dele1 placed opposite on the margin4 7,dele is ,latin for take out47 ,a turned letter is noted by drawing a line through it and writing the mark ,no4 #b on the margin4 ,if letters or words require to be altered to make them more conspicuous a parallel line or lines must be made underneath the word or letter--namely1 for capitals1 three lines2 for small capitals1 two lines2 and for italic1 one line2 and on the margin opposite the line where the alteration occurs the sign caps41 small caps41 or ital4 must be written4 ,where a letter of a different font is improperly introduced into the page it is noted by drawing a line through it and writing w4 f4 7wrong font7 on the margin4 ,where a word has been left out or is to be added a caret must be made in the place where it should come in and the word written on the margin4 ,a caret is made thus3 ,where letters stand crooked they are noted by a line1 but where a page hangs lines are drawn across the entire part affected4 ,where a faulty letter appears it is denoted by making a cross under it and placing a similar mark on the margin4 ,where several words are left out or where new matter is to be added the added matter is written wherever convenient1 and a line is drawn from the place of omission to the written words4 ,in making a correction in a proof always mark the wrong letter or word through and insert the alteration in the margin1 not in the middle of the printed matter1 because it is liable to be overlooked if there is no marginal reference to the correction4 ,to keep the different corrections distinct finish each off with a stroke1 thus _/2 and to make the alterations more clear or less crowded mark those relating to the left-hand portion on the left margin and those relating to the right-hand portion on the right margin4 99 99 99 99 99 ,the hints given here are intended for the general public and not for the printer1 and to the student of these lessons let us say that the first essential of good proof-reading is clearness4 ,be very sure that the printer will understand the changes which you desire him to make4 ,quite often it is an advantage if you wish a particular style of type used to cut out a sample of that style and paste it on your copy or on your proof1 indicating that you want it to be used4 ,instructions to the printer written either on the copy or on the proof should be surrounded by a line to separate them from the text1 or to prevent any confusion with other written matter intended as copy or as corrections4 ,when the corrections have been duly made and approved by the author or editor it is customary to write the word press on the top of the first page4 ,if intermediate proofs are wanted1 mark on the proofs returned to the printer ,send revise4 ,the final or press proof is always retained by the printer in case of any dispute4 ,it is his voucher1 and he retains it for future reference4 ,it is a good plan to make corrections in a different coloured ink from that used by the printer's proof-reader4 ,if you are having a pamphlet or book printed the different proofs will reach you in the following order3 #a4 ,galley proofs4 #b4 ,revised proofs 7if any74 #c4 ,page proofs4 #d4 ,foundry proofs4 ,illustration3 ,a printer's proof4 ,so far as possible1 make all the necessary changes while the type is in galleys4 ,once made up into pages1 a very slight change1 particularly such a change as the crossing out or addition of a sentence1 may make a great deal of trouble4 ,when the pages are passed upon they are sent to the foundry for casting4 ,the foundry proofs are the last proofs pulled4 ,corrections made on these make it necessary to alter the electrotype plates1 which is rather an expensive process4 ,to change a word1 a piece of the metal plate has to be cut out and another with the new word soldered in4 ,illustration3 ,a printer's corrected proof4 ,a page is said to overrun if it is too long4 ,if the space to be occupied is limited it is a good plan to adapt your copy to it by counting the words and by comparing the count with that of some printed page in the same size of type4 ,return proofs to your printer or publisher as promptly as possible4 ,as a rule printing houses cannot afford to keep type locked up and unused waiting for the return of proofs4 ,there are many imperfections in typography1 such as wrong-font and inverted letters1 awkward and irregular spacing1 uneven pages or columns1 crooked words and lines1 etc41 which it is the business of the printing house to correct4 ,no book or pamphlet1 therefore1 ought to go to press until it has been read and revised by an experienced reader4 ,strict uniformity should always be preserved in the use of capitals1 in spelling1 and in punctuation4 ,where authors have their manuscripts type-written and make two or three revises upon the type-written sheets before their copy is turned over to the publishing house1 the labour of proof-reading and the expenses of corrections are reduced to a minimum4 ,the errors shown in our illustration are more numerous than are likely to appear in any proof sent out from a publishing house4 ---------------------------------------- -------- ,transcriber's ,notes ,page #ce favorable changed to favourable #di favor changed to favour #fe 7#e7 changed to #e4 #aae contantly changed to constantly #acj ,ierland change to ,ireland #aej battle-ships changed to battleships #aeb ,,bread-,,stuffs changed to ,,breadstuffs #afb duplicated from deleted #afc bread-stuffs change to breadstuffs #bje ,june1 #ahih changed to ,june #cj1 #ahih #bjh proportiona t changed to proportion at #bbc duplicated in deleted #beh typewritten changed to type-written #cej everyday changed to every-day #chd comma added after figures #chi colored changed to coloured #cij nessary changed to necessary ---------------------------------------- --------