everybody''s guide to money matters

... x 9.257.50 x 9.25 php| architect’s Guide to PHP Security A Step-by-step Guide to WritingSecure and Reliable PHP ApplicationsIlia Alshanetsky php| architect’s Guide to PHP Security NanoBooks ... one of the foremost experts on PHP security in the world, php| architect’s Guide to PHP Security focuses on providing you with all the tools and knowledge you need to both secure your existing ... well-defined topic and without any of the fluffof larger, more expensive books.Shelve under PHP/ Web Development/Internet ProgrammingFrom the publishers of php| architect’s Guide to PHP Security Ilia...

... The Scientist and Engineer's Guide to Digital Signal Processing Second Edition xiiPrefaceGoals and Strategies of this Book The technical world is changing ... 7Imaging Processing 9Chapter 2. Statistics, Probability and Noise 11 Signal and Graph Terminology 11Mean and Standard Deviation 13 Signal vs. Underlying Process 17 The Histogram, Pmf and Pdf 19 The ... Programming Tips 84 The Scientist and Engineer's Guide to Digital Signal Processing Second Edition bySteven W. SmithCalifornia Technical PublishingSan Diego, California xiAnother Look at Fixed...

...

... lightSpeakers of Scandinavian languages on the meadowon seaThat is typical for him.There's no proof for that. to discriminate women  to discriminate against women ... man which I told you about. Some  any    Sorry, I haven't got some.Speakers of Scandinavian languages Since I made my report last year, there was a steady ... don't mind to do it.If you can't avoid to go, you risk to upset your dadI suggest to go to the pictures instead.It's no use to ask her.I am used to do this.I look forward...

... www.nostarch.comLibrary of Congress Cataloging-in-Publication Data A catalog record of this book is available from the Library of Congress.No Starch Press and the No Starch Press logo are registered trademarks of ... is calculated. The default is content-box, which means the stated width of the element applies to the content, and the padding and border values are added on as usual. A value of border-box ... browsers has appeared to compete for users, and this plethora of choice has led to a features arms race. One beneficiary of that arms race has been CSS3. Each of the browsers wants to offer developers...

...

... disabilitygroups) to ensure their support for the campaign. Most notably this resulted in anumber of major disability charities writing to Ministers in support of the amendment. The Insider’s Guide to PR: Chapter ... media improved as a result of theirreaction to the `budget box. ã Campaign named Winner of PR Week `Best Use of Broadcast’ Award 1999. The Insider’s Guide to PR: Chapter 6 Page 17Client: Financial ... Financial Times PRCA Consultancy: CountrywidePorter Novelli Campaign: Spreading the budget knowledge PR Sector: Corporate PR IN PRACTICE The following case studies are examples of PR consultancy...

... A PR LIFE – THE LADDER, THE PAY AND THE LIFESTYLE An AM or an AE what will you be? The path in PR can be as slow or fast as youwant as your career is very much driven by your own personal ambitions ... ambitions and aspirations. This chapter sets out the typical career path in consultancy and explainshow the job jigsaw fits together across account teams. It also discusses the pay scales and the ... come to the manager as the first port of call if they have a problem or request or need advice.Managers report to account directors and delegate work to the team.ã Senior Account Manager: the...

... The Insider’s Guide to PR: Chapter 3 Page 10A: To be honest I’m not that up to speed with modern technology, but I do have a real interest in current affairs. Would I ever get the chance to ... clients in the financial sector. What sort of work do you do for them?I: Well, we handle news releases and arrange feature length editorial coverage in the same way as we do for our other clients. ... produce?I: It really varies. They have just put together a market report for one of the Financial Team’s clients, but before that have been designing a flyer for the Events department. A: I...

... of practice. In addition the PRCA’s Consultancy ManagementStandard (CMS) is an external assessment based on business proficiency and allmembers must pass in order to join the trade association. ... WORKING IN A PR CONSULTANCY This chapter tells you a little more about the PR industry and discusses the differencebetween in- house PR and PR consultancy. If you already have a good idea about working ... specific industries. The Insider’s Guide to PR: Chapter 1 Page 3Kathryn WyllieAccount ExecutiveGCI UKGeography and Foreign BusinessManagement graduate“I work in a large professionalconsultancy...

...

... graduate of Law and Arts (majoring in Psychology) and passionate global warming advocate. She became concerned about global warming after reading an article on Artic Eskimos losing their way of life ... devoting their energies to material consumption rather than doing something about global warming. Shopping can be a fun, social activity whereas reading about global warming and seeing the impact ... automatically jumps to mind are events that occur in an instant such as earthquakes, tsunamis and landslides. Many people fail to consider categorising global warming as a catastrophe, since the consequences...

... multiple line commentwhich goes into some detail about the code which follows*/ Complete Idiot's Guide to JavaScript Complete Idiot's Guide to JavaScript, Second Edition Part 1: ... Stepping Up to Straight JavaAppendix A: JavaScript: The Complete OverviewAppendix B: Speak Like a Geek: The Complete Archive Complete Idiot's Guide to JavaScript Often, you have to compare ... Statementfile:///C|/Dokumente%20und%20Einstellungen/Tobias/Desktop/Neuer%20Ordner/chap07.htm (8 of 13) [01.06.2001 00:36:42] Complete Idiot's Guide to JavaScript To add further confusion to the brew, although it...

... book.ãObtainyourlocalsmallclaimsrulesfromyoursmallclaimscourtclerks oce.ãCheckoutyourstatessmallclaimsrulesonline.YoullndtheURLfor your states small claims court in the Appendix.e purpose of small claims court is to hear disputes ... in the right court. However, the case can be heard even in the wrong court if both parties appear and agree to it. Everybody’s Guide to Small Claims Court by Attorney Ralph Warner 13th edition ... things to make sure you understand how small claims court works in your state:ãLookupthesummaryofyourstatesrulesinthe50-stateAppendix to this book.ãObtainyourlocalsmallclaimsrulesfromyoursmallclaimscourtclerks...

... Everybody's Guide to Money Matters ProjectGutenbergEtextofEverybody's Guide to Money, byCottonCopyrightlawsarechangingallovertheworld,besure to checkthecopyrightlawsforyourcountrybeforepostingtheseiles!!Pleasetakealookattheimportantinformationinthisheader.Weencourageyou to keepthisileonyourowndisk,keepinganelectronicpathopenforthenextreaders.Donotremovethis.**Welcome To TheWorldofFreePlainVanillaElectronicTexts****EtextsReadableByBothHumansandByComputers,Since1971***TheseEtextsPreparedByHundredsofVolunteersandDonations*InformationoncontactingProjectGutenberg to getEtexts,andfurtherinformationisincludedbelow.Weneedyourdonations.Everybody's Guide to Money Matters byWilliamCotton,F.S.A.September,1999[Etext#1903][Datelastupdated:August22,2003]ProjectGutenbergEtextofEverybody's Guide to Money, byCotton******Thisileshouldbenamedegtmm10.txtoregtmm10.zip******Page1Everybody's Guide to Money Matters CorrectedEDITIONSofouretextsgetanewNUMBER,egtmm11.txtVERSIONSbasedonseparatesourcesgetnewLETTER,egtmm10a.txtThisetextwaspreparedbyNigelLacey,Leicestershire,UK.ProjectGutenbergEtextsareusuallycreatedfrommultipleeditions,allofwhichareinthePublicDomainintheUnitedStates,unlessacopyrightnoticeisincluded.Therefore,wedousuallydoNOT!keepthesebooksincompliancewithanyparticularpaperedition.Wearenowtrying to releaseallourbooksonemonthinadvanceoftheoficialreleasedates,leavingtimeforbetterediting.Pleasenote:neitherthislistnoritscontentsareinaltillmidnightofthelastdayofthemonthofanysuchannouncement.TheoficialreleasedateofallProjectGutenbergEtextsisatMidnight,CentralTime,ofthelastdayofthestatedmonth.Apreliminaryversionmayoftenbepostedforsuggestion,commentandeditingbythosewhowish to doso. To besureyouhaveanup to dateirstedition[xxxxx10x.xxx]pleasecheckilesizesintheirstweekofthenextmonth.Sinceourftpprogramhasabuginitthatscramblesthedate[tried to ixandfailed]alookattheilesizewillhave to do,butwewilltry to seeanewcopyhasatleastonebytemoreorless.InformationaboutProjectGutenberg(onepage)Weproduceabouttwomilliondollarsforeachhourwework.Thetimeittakesus,aratherconservativeestimate,isiftyhoursPage2Everybody's Guide to Money Matters to getanyetextselected,entered,proofread,edited,copyrightsearchedandanalyzed,thecopyrightletterswritten,etc.Thisprojectedaudienceisonehundredmillionreaders.Ifourvaluepertextisnominallyestimatedatonedollarthenweproduce$2milliondollarsperhourthisyearaswereleasethirty-sixtextilespermonth,or432moreEtextsin1999foratotalof2000+Ifthesereachjust10%ofthecomputerizedpopulation,thenthetotalshouldreachover200billionEtextsgivenawaythisyear.TheGoalofProjectGutenbergis to GiveAwayOneTrillionEtextFilesbyDecember31,2001.[10,000x100,000,000=1Trillion]Thisistenthousandtitleseach to onehundredmillionreaders,whichisonly~5%ofthepresentnumberofcomputerusers.Atourrevisedratesofproduction,wewillreachonlyone-thirdofthatgoalbytheendof2001,orabout3,333Etextsunlesswemanage to getsomerealfunding;currentlyourfundingismostlyfromMichaelHart'ssalaryatCarnegie-MellonUniversity,andanassortmentofsporadicgifts;thissalaryisonlygoodforafewmoreyears,sowearelookingforsomething to replaceit,aswedon'twantProjectGutenberg to besodependentononeperson.Weneedyourdonationsmorethanever!Alldonationsshouldbemade to "ProjectGutenberg/CMU":andaretaxdeductible to theextentallowablebylaw.(CMU=Carnegie-MellonUniversity).Fortheseandother matters, pleasemail to: ProjectGutenbergPage3Everybody's Guide to Money Matters P.O.Box2782Champaign,IL61825Whenallotheremailfails...tryourExecutiveDirector:MichaelS.Hart<hart@pobox.com>hart@pobox.comforwards to hart@prairienet.organdarchive.orgifyourmailbouncesfromarchive.org,Iwillstillseeit,ifitbouncesfromprairienet.org,betterresendlateron....Wewouldprefer to sendyouthisinformationbyemail.****** To accessProjectGutenbergetexts,useanyWebbrowser to viewhttp://promo.net/pg.ThissitelistsEtextsbyauthorandbytitle,andincludesinformationabouthow to getinvolvedwithProjectGutenberg.YoucouldalsodownloadourpastNewsletters,orsubscribehere.Thisisoneofourmajorsites,pleaseemailhart@pobox.com,foramorecompletelistofourvarioussites. To godirectly to theetextcollections,useFTPoranyWebbrowser to visitaProjectGutenbergmirror(mirrorsitesareavailableon7continents;mirrorsarelistedathttp://promo.net/pg).Macusers,doNOTpointandclick,typingworksbetter.ExampleFTPsession:ftpsunsite.unc.edulogin:anonymousPage4Everybody's Guide to Money Matters password:your@logincdpub/docs/books/gutenbergcdetext90throughetext99dir [to seeiles]getormget [to getiles...setbinforzipiles]GETGUTINDEX.?? [to getayear'slistingofbooks,e.g.,GUTINDEX.99]GETGUTINDEX.ALL [to getalistingofALLbooks]*****InformationpreparedbytheProjectGutenberglegaladvisor**(ThreePages)***START**THESMALLPRINT!**FORPUBLICDOMAINETEXTS**START***Whyisthis"SmallPrint!"statementhere?Youknow:lawyers.Theytellusyoumightsueusifthereissomethingwrongwithyourcopyofthisetext,evenifyougotitforfreefromsomeoneotherthanus,andevenifwhat'swrongisnotourfault.So,amongotherthings,this"SmallPrint!"statementdisclaimsmostofourliability to you.Italsotellsyouhowyoucandistributecopiesofthisetextifyouwant to. *BEFORE!*YOUUSEORREADTHISETEXTByusingorreadinganypartofthisPROJECTGUTENBERG-tmetext,youindicatethatyouunderstand,agree to andacceptthis"SmallPrint!"statement.Ifyoudonot,youcanreceivearefundofthe money (ifany)youpaidforthisetextbysendingarequestwithin30daysofreceivingit to thepersonyougotitfrom.IfyoureceivedthisetextonaphysicalPage5Everybody's Guide to Money Matters medium(suchasadisk),youmustreturnitwithyourrequest.ABOUTPROJECTGUTENBERG-TMETEXTSThisPROJECTGUTENBERG-tmetext,likemostPROJECTGUTENBERG-tmetexts,isa"publicdomain"workdistributedbyProfessorMichaelS.HartthroughtheProjectGutenbergAssociationatCarnegie-MellonUniversity(the"Project").Amongotherthings,thismeansthatnooneownsaUnitedStatescopyrightonorforthiswork,sotheProject(andyou!)cancopyanddistributeitintheUnitedStateswithoutpermissionandwithoutpayingcopyrightroyalties.Specialrules,setforthbelow,applyifyouwish to copyanddistributethisetextundertheProject's"PROJECTGUTENBERG"trademark. To createtheseetexts,theProjectexpendsconsiderableefforts to identify,transcribeandproofreadpublicdomainworks.Despitetheseefforts,theProject'setextsandanymediumtheymaybeonmaycontain"Defects".Amongotherthings,Defectsmaytaketheformofincomplete,inaccurateorcorruptdata,transcriptionerrors,acopyrightorotherintellectualpropertyinfringement,adefectiveordamageddiskorotheretextmedium,acomputervirus,orcomputercodesthatdamageorcannotbereadbyyourequipment.LIMITEDWARRANTY;DISCLAIMEROFDAMAGESButforthe"RightofReplacementorRefund"describedbelow,[1]theProject(andanyotherpartyyoumayreceivethisetextfromasaPROJECTGUTENBERG-tmetext)disclaimsallliability to youfordamages,costsandexpenses,includinglegalfees,and[2]YOUHAVENOREMEDIESFORNEGLIGENCEORUNDERSTRICTLIABILITY,ORFORBREACHOFWARRANTYORCONTRACT,Page6Everybody's Guide to Money Matters INCLUDINGBUTNOTLIMITED TO INDIRECT,CONSEQUENTIAL,PUNITIVEORINCIDENTALDAMAGES,EVENIFYOUGIVENOTICEOFTHEPOSSIBILITYOFSUCHDAMAGES.IfyoudiscoveraDefectinthisetextwithin90daysofreceivingit,youcanreceivearefundofthe money (ifany)youpaidforitbysendinganexplanatorynotewithinthattime to thepersonyoureceiveditfrom.Ifyoureceiveditonaphysicalmedium,youmustreturnitwithyournote,andsuchpersonmaychoose to alternativelygiveyouareplacementcopy.Ifyoureceiveditelectronically,suchpersonmaychoose to alternativelygiveyouasecondopportunity to receiveitelectronically.THISETEXTISOTHERWISEPROVIDED TO YOU"AS-IS".NOOTHERWARRANTIESOFANYKIND,EXPRESSORIMPLIED,AREMADE TO YOUAS TO THEETEXTORANYMEDIUMITMAYBEON,INCLUDINGBUTNOTLIMITED TO WARRANTIESOFMERCHANTABILITYORFITNESSFORAPARTICULARPURPOSE.Somestatesdonotallowdisclaimersofimpliedwarrantiesortheexclusionorlimitationofconsequentialdamages,sotheabovedisclaimersandexclusionsmaynotapply to you,andyoumayhaveotherlegalrights.INDEMNITYYouwillindemnifyandholdtheProject,itsdirectors,oficers,membersandagentsharmlessfromallliability,costandexpense,includinglegalfees,thatarisedirectlyorindirectlyfromanyofthefollowingthatyoudoorcause:Page7Everybody's Guide to Money Matters [1]distributionofthisetext,[2]alteration,modiication,oraddition to theetext,or[3]anyDefect.DISTRIBUTIONUNDER"PROJECTGUTENBERG-tm"Youmaydistributecopiesofthisetextelectronically,orbydisk,bookoranyothermediumifyoueitherdeletethis"SmallPrint!"andallotherreferences to ProjectGutenberg,or:[1]Onlygiveexactcopiesofit.Amongotherthings,thisrequiresthatyoudonotremove,alterormodifytheetextorthis"smallprint!"statement.Youmayhowever,ifyouwish,distributethisetextinmachinereadablebinary,compressed,mark-up,orproprietaryform,includinganyformresultingfromconversionbywordpro-cessingorhypertextsoftware,butonlysolongas*EITHER*:[*]Theetext,whendisplayed,isclearlyreadable,anddoes*not*containcharactersotherthanthoseintendedbytheauthorofthework,althoughtilde(~),asterisk(*)andunderline(_)charactersmaybeused to conveypunctuationintendedbytheauthor,andadditionalcharactersmaybeused to indicatehypertextlinks;OR[*]TheetextmaybereadilyconvertedbythereaderatnoexpenseintoplainASCII,EBCDICorequivalentformbytheprogramthatdisplaystheetext(asisthecase,forinstance,withmostwordprocessors);ORPage8Everybody's Guide to Money Matters [*]Youprovide,oragree to alsoprovideonrequestatnoadditionalcost,feeorexpense,acopyoftheetextinitsoriginalplainASCIIform(orinEBCDICorotherequivalentproprietaryform).[2]Honortheetextrefundandreplacementprovisionsofthis"SmallPrint!"statement.[3]Payatrademarklicensefee to theProjectof20%ofthenetproitsyouderivecalculatedusingthemethodyoualreadyuse to calculateyourapplicabletaxes.Ifyoudon'tderiveproits,noroyaltyisdue.Royaltiesarepayable to "ProjectGutenbergAssociation/Carnegie-MellonUniversity"withinthe60daysfollowingeachdateyouprepare(orwerelegallyrequired to prepare)yourannual(orequivalentperiodic)taxreturn.WHATIFYOU*WANT* TO SEND MONEY EVENIFYOUDON'THAVE TO? TheProjectgratefullyacceptscontributionsin money, time,scanningmachines,OCRsoftware,publicdomainetexts,royaltyfreecopyrightlicenses,andeveryothersortofcontributionyoucanthinkof. Money shouldbepaid to "ProjectGutenbergAssociation/Carnegie-MellonUniversity".*END*THESMALLPRINT!FORPUBLICDOMAINETEXTS*Ver.04.29.93*END*ThisetextwaspreparedbyNigelLacey,Leicestershire,UK.Page9Everybody's Guide to Money Matters Transcriber'sNotes:IhaveusedtheUKpoundsymbol(£)inthise-textasitappearsintheoriginal.[ItlookslikeanLwithacrossbar.]Iamuncertainwhetherthissymbolwillbesupportedonallsystemsandfontsthatthistextileendsbeingviewedwith.Myapologiesifthisapplies to you.Ihaveendeavoured to retaintheoriginaltableformatting,ratherthan to reformatthetablesinalignmentwiththetext.However,asseveralofthetableswereinlandscapeorientationintheoriginal,thishasnecessarilyresultedinsomeverylonglinesinthetables(up to 130charactersinsomecases).Finally,asIcheckedthetranscriptionprocesscertainerrorsinthetablescame to light.Ratherthancorrecttheseerrors,astheyareanintegralpartoftheoriginal,theonesthatInotedaremarkedwithunderscores(_).[Notethatunderscoresarealsoused to mark_italicised_passagesintheoriginaltext.]Page10Everybody's Guide to Money Matters Everybody's Guide to Money Matters _Withadescriptionofthevariousinvest-mentschielydealtinonthestockexchange,andthemodeofdealingtherein_alsoSomeaccountofthepitfallspreparedfortheunwary,andsuggestions to thecautiousinvestor.byWilliamCotton,F.S.A.LatetreasurerofthecountyofDevon,authorof"AnElizabethanGuild,""GleaningsfromRecords,""TheBankManager,"etc.Originatorofthepostalordersystem.London1898.PREFACE.Page11Everybody's Guide to Money Matters THEAuthor,emboldenedbyaBankingexpe-rienceofoverfortyyears,offersthislittlework to thepublicinthehopethat,elementarythoughitbe,itmayproveacceptable to manypersonsofbothsexes.Theworkhasbeenpreparedchielyfortheuseofwomen,avastproportionofwhomarebroughtupinutterignoranceof money matters inthesimplestform,thoughotherwisetheymaybehighlyaccomplished.Thesubject,itmustbeallowed,isnotafasci-natingone,butthereareperiodsinthelivesofmostpersonswhensomeknowledgeof money matters maybeusefulandevennecessary.W.C.CONTENTS.PAGECHAP.I.-Whatis Money? -What to dowithit-How to openaBankAccount-How to drawCheques...1CHAP.II.-How to Deposit Money atInterest-TheBankPassBook-TheAdvantagesofaBankAccount.13Page12Everybody's Guide to Money Matters CHAP.III.-LondonBanksandBanking-BillofExchange-Deposits-ScotchandIrishBanks.......20CHAP.IV.-Investments-WhatareSecurities-Mortgages-TheFunds-TheNationalDebt-StocksandShares-Dividends,howPayable............26CHAP.V.-BritishGovernmentFunds-TheDifferentDebts-TerminableAnnuities-LoansGuaranteedbyGovern-ment-Dividends,how to Receivethem-AutomaticRe-investmentofDividends............35CHAP.VI.-GovernmentAnnuities,how to Purchase-WhenPayable-Tables-InsuranceOficeAnnuities-Tables-IndianGovernmentStocks...........41CHAP.VII.-Loans to Corporations,&c.-ColonialGovern-mentSecurities-InscribedStocksandBonds-ListofInscribedStocks-BondsandCoupons-ForeignGovern-mentStocks-CautioninInvesting-Railways-TheDifferentStocksandtheirRelativeValues-TheWar-rantsforInterestandDividends-IndianRailwayStocks-AmericanRailways-ForeignRailways-Banks-AsanInvestment-ColonialandForeignCorporationStocks-CanalsandDocks-Gas-ElectricLighting,TelegraphandTelephone-WaterWorks-Breweries-IndustrialCompanies-Financial,LandandInvestmentCompanies-FinancialTrusts-InsuranceCompanies-SteamshipCompanies-Mines...............55CHAP.VIII.-TheStockExchange-BrokersandJobbers-HowBusinessisDone-"Contango"and"Backwarda-Page13Everybody's Guide to Money Matters tion"-"Bulls"and"Bears"-"Boom"and"Slump"-Settlement-RiskinKeepingConvertibleBonds-Brokers-TrapsandSnares-GoodCompaniesandBad-AdvertisingSwindles-GoldMines-ATypicalCase-ExplorationCompanies.............79CHAP.IX.-LifeInsurance-ItsAdvantages-MutualandJointStockCompanies-ChoiceofOfice-FormofPro-posal-Examination-Premiums,howPayable-ExamplesofAdvantage-VariousModesofInsuring-Bonuses-HowApplied-EndowmentInsurance-Non-proitablePolicies-SettlementPolicies-EndowmentofChildren-InsuranceofJointLives-InsuranceonLongestofTwoLives-Surrenders-FireInsurance-FarmStock-OtherInsurances..................101CHAP.X.-ABuildingSociety,ModeofDoingBusiness-How to ObtainaShare,andTableofPayments-How to Withdraw,andTable-Borrowers-How to BuildaHouse-TableofPayments-HowProitsaremade-TheWeakPointsofSocietiesBadlyConducted-WhatLeads to Collapse-NecessityforChoosingDirectorsofStandingandCharacter-NecessityforEficientAuditofAc-counts....................122CHAP.XI.-ThePostOficeSavingsBank-ModeofDepo-siting-OpeninganAccount-ConvenienceandPrecau-tions-LimitinAmounts-Withdrawal-Payment to Representatives-GovernmentAnnuities,&c.-Advan-tagesthePostOficeOffers.........134Page14Everybody's Guide to Money Matters APPENDIX.TableofInterestonInvestments...........142ExamplesofBusinessCommunications-Sending Money byPost................143Requiring Money ...............143AcknowledgingReceipt.............144Transfer to DepositAccount..........144ArrangingCheques to beHonoredbyAnotherBank145RequestforPassportandCircularNotes....145OrderingLetterofCredit...........146RemittinginthisCountry...........146LodgingSecuritiesatBank..........147Order to ReceiveDividends..........147OrderingInvestments.............148EVERYBODY'S GUIDE TO MONEY MATTERS. CHAPTERI.EASYSTEPS TO MONEY MATTERS. MONEY isthemediumbywhichwemayacquirefromothers,whoarewilling to partwiththem,suchthingsaswemaydesire.Thepriceofanarticleisthevaluesetuponitbythepossessor,Page15Everybody's Guide to Money Matters asrepresentedbyanexpressedsumin money. Thepriceofsomethingsarearbitrarilyixedbylaworcustom,suchasstamps,professionalfees,duties,&c.Thestandardofvalueinthiscountryisgold,anditisasagainstgold,representedbycoinsofdifferentdenominations,thatthevalueofallcommoditiesisestimated.TheauthorisedcoinsoftheUnitedKingdomconsistofthefollowingpieces:-GOLD.Five-sovereignpiece,equal to Fivepounds.Two-sovereignpiece,equal to Twopounds.One-sovereignpiece,equal to Onepound.Half-sovereignpiece,equal to Half-a-pound.SILVER.Acrown,orive-shillingpiece,equal to one-fourthofasovereign.Double-iorin,orfour-shillingpiece,equal to one-ifthofasovereign.Half-a-crown,ortwoshillingsandsixpence,equal to one-eighthofasovereign.Florin,ortwo-shillingpiece,equal to one-tenthofasovereign.Shillingpiece,equal to one-twentiethofasovereign.Sixpennypiece,one-halfofashilling.Page16Everybody's Guide to Money Matters Threepennypiece,one-halfofasixpence.BRONZE.Apenny,equal to one-twelfthofashilling.Halfpenny,equal to one-halfofapenny.Farthing,one-fourthofapenny.Inwritingorspeakingofsumsof money theexpressiontakestheformof"pounds,shillings,andpence";forexample,Twenty-onepoundsiveshillingsandninepence.Sometimestheword"sterling"isadded,meaninggenuineorstandardcoinoftherealm.Inaccountstheiguresareplacedinthreeparallelcolumnsundertheheadingof£s.d."£"forpounds,"s."forshillings,and"d."forpence,from_Libri_,_solidi_,and_denarii_,theLatinequivalentsforthesevalues.|||||||£|s.|d.|||21|5|9||||||Anotherformof money, ifitmaybesotermed,istheBanknote.Thisissimplyapromise to pay,ondemand,theamountrepre-sentedonthenote,ingoldorsomelegaltender.Themostcommoninuseare£5notes,butthereareothersofdifferentdenominations,suchas£10,£20,£50,£100,&c.Somecountrybanksstillissuethesenotes,buttheyarebylawPage17Everybody's Guide to Money Matters restrictedfromissuingbeyondacertainamountixedbytheBankActof1844.Nonewbankcanissuenotes,andthosewhichhavetheprivi-legearegraduallyrelinquishingit,sothatincourseoftimetherewillbeonlyonebankentitled to issuenotes,andthatistheBankofEngland.Thenotesofcountrybanks,otherthantheBankofEngland,arenotalegaltender;thatis,itisnotcompulsoryonanyone to accepttheminpaymentofadebt.TheBankofEnglandistheoldestjoint-stockbankinthecountry,andalthough,initsconsti-tution,itdoesnotdiffermateriallyfromotherjoint-stockbanks,yet,beingtheagentoftheBritishGovernmentinall money matters, andpossessingotherexclusiveprivileges,itislookeduponasoneoftheenduringinstitutionsofthecountry.*(*SeeJoint-StockBanks,p.68.)Amongstotherprivilegesitenjoysistheauthority to issuepromissorynotes to acertainextent,representingrespectivelysumsof£5,£10,£20,£50,£100,£200,£500,and£1,000.TheseBankofEnglandnotes,astheyaretermed,areabsolutelyconvertible,thatis to say,thebankislegallybound to exchangethemforgoldatalltimeswhendemanded;andacer-tainamountofgoldhasalways,bylaw, to bePage18Everybody's Guide to Money Matters keptinstockforthepurpose.Moreover,thetenderofBankofEnglandnotes,thesameaswithgold,inpaymentofadebt,cannot,inthiscountry,legallyberefused.Noone,however,canbecompelled to givechange;thatis to say,ifyouoweaperson£415s.,youareboundinstrictlaw to payhimthatexactsum.Youcannotofferhimaive-poundnoteandinsistuponhisgivingyou5s.change,though,asamatterofcourtesyandconvenience,paymentsareconstantlyacceptedinthatform.ItmustbeobviousthattheseBankofEng-landnotesareagreatconvenience,andevenanecessity to thepublic,asitwouldbequiteimpossible to carryontheenormousbusinessofthecountryifsuchacumbersomemediumasgoldcoinswastheonlylegalwayofpayingdebt.Nevertheless,goldcoinofproperweightisalegaltender to anyamount.Silverisnotalegaltenderforsumsovertwopounds,norbronzeforsumsoveroneshilling.Butevenwithbank-notestherequirementsofbusinessarenotfullysatisied,asthereisalwaystheriskoftheirbeinglostorstolen. To avoidthisrisk,and to providefacilitiesforbuyingandselling,withthecomplicationsinci-dentthereto,andthepassingof money fromonehand to another,anintermediaryagencyisrequired,andthatagencyis to befoundinthebankingcompanies.Innearlyeverytown,Page19Everybody's Guide to Money Matters havingapretence to thename,intheUnitedKingdom,willbefoundabranchbankofsomeestablishmentofmoreorlessrepute,andthosewhoarefortunateenough to possess money willdowell to takeadvantageofsuchanagencyfortheir money matters, having,ofcourse,irstascertainedthatthestandingofthecompanyissuchthattheymaydosowithsafetyandconi-dence.Asairststepwegiveanexampleofwhatisoccurringdailyinhundredsofcases.MissJaneSmithisaladywhohasbeenbroughtupwithouttheslightestinstructioninbusiness matters, indeedhasratherplumedher-selfontheideaofbeingquiteabovesuchthings.Suddenlysheindsherselfdependentuponothersforguidanceandadvice.Shewouldlike to actforherselfifsheonlyknewhow to dososafely,beingofasomewhatsuspicioustemperamentandmistrustfulofadvicefromfriendsoracquaint-ances.Eventhehighlyrespectablelawyer,whohashandedherapacketofdocumentsand£500incash(alegacyfromheruncle),withmuchsagecounsel,sheisnotquitesureabout,forshehasimbibedtheideafromheryouththatlawyersarenotalways to betrusted.Thepacketofdocumentsinthetinboxastheycame to herissetasideinasafeplaceforthemoment,butthebank-notesandgoldareaPage20Everybody's Guide to Money Matters matterofseriousconcern to her.Shefears to carrythemaboutherpersonlestsheshouldlosethem,orberobbed,andfeelssurethatifkeptinthehousetheywillattractanyburglarsthatmaybeintheneighbourhood.ThebestthingMissSmithcandois to go to oneoftheneighbouringbanksofrepute-saytheBlankshireBank-andaskthem to helpheroutofthedificulty.ShehasaninterviewwiththeManagerorCashier,tellsherstory,andisadvised to leavethe money atthebankandhaveanaccountopenedinhername.Thiscoursesheconsents to adopt,andhandsoverthe£500,requestingsomeacknowledgmentthatshehasdoneso,incommonterms,"something to showforit."Manybanksprovideandrequiretheircus-tomers to use"paying-inslips,"thatis,printedformsspecifyingthepaymentsmade to thebankundertheheadofcheques,notes,gold,andsilver.Aformishandedinwitheachpayment,andtheinitialsofthecashierplacedagainsttheamountnotedonthecounterfoil,whichisre-tainedbythecustomer.Inaddition to thisMissSmithwillbepre-sentedwithwhatiscalledapass-book-abookpassingbetweenthebankandherself,nowbecomeacustomer-inwhichshewillinditPage21Everybody's Guide to Money Matters statedinthebriefestbusinessmanner,thattheBlankshireBankisDr.(debtor) to, orowes,MissJaneSmith£500.Shewillbetoldthatportionsofthis money maybedrawnoutfromtime to timeasshemayneedit,butthiscanonlybedonebycheques,orformsofrequest to thebank to payouttheamountdesired.*Theseforms,providedbythebank,areprinted,blankspacesbeingleft to beilledupinwriting,andtheyaremadeupinbooksofvarioussizes,eachformbearingapennystamp.Thecustomerpaysforthebookaccording to thenumberofstampsitcontains,butnomore.MissSmithbuysacheque-book,and,openingit,indsthefollowingforminprint:-(*Thepracticewithsomepeopleofwritingchequesonplainpaperisdiscountenancedbybankers,andis to becondemned.) ... Everybody's Guide to Money Matters ProjectGutenbergEtextofEverybody's Guide to Money, byCottonCopyrightlawsarechangingallovertheworld,besure to checkthecopyrightlawsforyourcountrybeforepostingtheseiles!!Pleasetakealookattheimportantinformationinthisheader.Weencourageyou to keepthisileonyourowndisk,keepinganelectronicpathopenforthenextreaders.Donotremovethis.**Welcome To TheWorldofFreePlainVanillaElectronicTexts****EtextsReadableByBothHumansandByComputers,Since1971***TheseEtextsPreparedByHundredsofVolunteersandDonations*InformationoncontactingProjectGutenberg to getEtexts,andfurtherinformationisincludedbelow.Weneedyourdonations.Everybody's Guide to Money Matters byWilliamCotton,F.S.A.September,1999[Etext#1903][Datelastupdated:August22,2003]ProjectGutenbergEtextofEverybody's Guide to Money, byCotton******Thisileshouldbenamedegtmm10.txtoregtmm10.zip******Page1Everybody's Guide to Money Matters CorrectedEDITIONSofouretextsgetanewNUMBER,egtmm11.txtVERSIONSbasedonseparatesourcesgetnewLETTER,egtmm10a.txtThisetextwaspreparedbyNigelLacey,Leicestershire,UK.ProjectGutenbergEtextsareusuallycreatedfrommultipleeditions,allofwhichareinthePublicDomainintheUnitedStates,unlessacopyrightnoticeisincluded.Therefore,wedousuallydoNOT!keepthesebooksincompliancewithanyparticularpaperedition.Wearenowtrying to releaseallourbooksonemonthinadvanceoftheoficialreleasedates,leavingtimeforbetterediting.Pleasenote:neitherthislistnoritscontentsareinaltillmidnightofthelastdayofthemonthofanysuchannouncement.TheoficialreleasedateofallProjectGutenbergEtextsisatMidnight,CentralTime,ofthelastdayofthestatedmonth.Apreliminaryversionmayoftenbepostedforsuggestion,commentandeditingbythosewhowish to doso. To besureyouhaveanup to dateirstedition[xxxxx10x.xxx]pleasecheckilesizesintheirstweekofthenextmonth.Sinceourftpprogramhasabuginitthatscramblesthedate[tried to ixandfailed]alookattheilesizewillhave to do,butwewilltry to seeanewcopyhasatleastonebytemoreorless.InformationaboutProjectGutenberg(onepage)Weproduceabouttwomilliondollarsforeachhourwework.Thetimeittakesus,aratherconservativeestimate,isiftyhoursPage2Everybody's Guide to Money Matters to getanyetextselected,entered,proofread,edited,copyrightsearchedandanalyzed,thecopyrightletterswritten,etc.Thisprojectedaudienceisonehundredmillionreaders.Ifourvaluepertextisnominallyestimatedatonedollarthenweproduce$2milliondollarsperhourthisyearaswereleasethirty-sixtextilespermonth,or432moreEtextsin1999foratotalof2000+Ifthesereachjust10%ofthecomputerizedpopulation,thenthetotalshouldreachover200billionEtextsgivenawaythisyear.TheGoalofProjectGutenbergis to GiveAwayOneTrillionEtextFilesbyDecember31,2001.[10,000x100,000,000=1Trillion]Thisistenthousandtitleseach to onehundredmillionreaders,whichisonly~5%ofthepresentnumberofcomputerusers.Atourrevisedratesofproduction,wewillreachonlyone-thirdofthatgoalbytheendof2001,orabout3,333Etextsunlesswemanage to getsomerealfunding;currentlyourfundingismostlyfromMichaelHart'ssalaryatCarnegie-MellonUniversity,andanassortmentofsporadicgifts;thissalaryisonlygoodforafewmoreyears,sowearelookingforsomething to replaceit,aswedon'twantProjectGutenberg to besodependentononeperson.Weneedyourdonationsmorethanever!Alldonationsshouldbemade to "ProjectGutenberg/CMU":andaretaxdeductible to theextentallowablebylaw.(CMU=Carnegie-MellonUniversity).Fortheseandother matters, pleasemail to: ProjectGutenbergPage3Everybody's Guide to Money Matters P.O.Box2782Champaign,IL61825Whenallotheremailfails...tryourExecutiveDirector:MichaelS.Hart<hart@pobox.com>hart@pobox.comforwards to hart@prairienet.organdarchive.orgifyourmailbouncesfromarchive.org,Iwillstillseeit,ifitbouncesfromprairienet.org,betterresendlateron....Wewouldprefer to sendyouthisinformationbyemail.****** To accessProjectGutenbergetexts,useanyWebbrowser to viewhttp://promo.net/pg.ThissitelistsEtextsbyauthorandbytitle,andincludesinformationabouthow to getinvolvedwithProjectGutenberg.YoucouldalsodownloadourpastNewsletters,orsubscribehere.Thisisoneofourmajorsites,pleaseemailhart@pobox.com,foramorecompletelistofourvarioussites. To godirectly to theetextcollections,useFTPoranyWebbrowser to visitaProjectGutenbergmirror(mirrorsitesareavailableon7continents;mirrorsarelistedathttp://promo.net/pg).Macusers,doNOTpointandclick,typingworksbetter.ExampleFTPsession:ftpsunsite.unc.edulogin:anonymousPage4Everybody's Guide to Money Matters password:your@logincdpub/docs/books/gutenbergcdetext90throughetext99dir [to seeiles]getormget [to getiles...setbinforzipiles]GETGUTINDEX.?? [to getayear'slistingofbooks,e.g.,GUTINDEX.99]GETGUTINDEX.ALL [to getalistingofALLbooks]*****InformationpreparedbytheProjectGutenberglegaladvisor**(ThreePages)***START**THESMALLPRINT!**FORPUBLICDOMAINETEXTS**START***Whyisthis"SmallPrint!"statementhere?Youknow:lawyers.Theytellusyoumightsueusifthereissomethingwrongwithyourcopyofthisetext,evenifyougotitforfreefromsomeoneotherthanus,andevenifwhat'swrongisnotourfault.So,amongotherthings,this"SmallPrint!"statementdisclaimsmostofourliability to you.Italsotellsyouhowyoucandistributecopiesofthisetextifyouwant to. *BEFORE!*YOUUSEORREADTHISETEXTByusingorreadinganypartofthisPROJECTGUTENBERG-tmetext,youindicatethatyouunderstand,agree to andacceptthis"SmallPrint!"statement.Ifyoudonot,youcanreceivearefundofthe money (ifany)youpaidforthisetextbysendingarequestwithin30daysofreceivingit to thepersonyougotitfrom.IfyoureceivedthisetextonaphysicalPage5Everybody's Guide to Money Matters medium(suchasadisk),youmustreturnitwithyourrequest.ABOUTPROJECTGUTENBERG-TMETEXTSThisPROJECTGUTENBERG-tmetext,likemostPROJECTGUTENBERG-tmetexts,isa"publicdomain"workdistributedbyProfessorMichaelS.HartthroughtheProjectGutenbergAssociationatCarnegie-MellonUniversity(the"Project").Amongotherthings,thismeansthatnooneownsaUnitedStatescopyrightonorforthiswork,sotheProject(andyou!)cancopyanddistributeitintheUnitedStateswithoutpermissionandwithoutpayingcopyrightroyalties.Specialrules,setforthbelow,applyifyouwish to copyanddistributethisetextundertheProject's"PROJECTGUTENBERG"trademark. To createtheseetexts,theProjectexpendsconsiderableefforts to identify,transcribeandproofreadpublicdomainworks.Despitetheseefforts,theProject'setextsandanymediumtheymaybeonmaycontain"Defects".Amongotherthings,Defectsmaytaketheformofincomplete,inaccurateorcorruptdata,transcriptionerrors,acopyrightorotherintellectualpropertyinfringement,adefectiveordamageddiskorotheretextmedium,acomputervirus,orcomputercodesthatdamageorcannotbereadbyyourequipment.LIMITEDWARRANTY;DISCLAIMEROFDAMAGESButforthe"RightofReplacementorRefund"describedbelow,[1]theProject(andanyotherpartyyoumayreceivethisetextfromasaPROJECTGUTENBERG-tmetext)disclaimsallliability to youfordamages,costsandexpenses,includinglegalfees,and[2]YOUHAVENOREMEDIESFORNEGLIGENCEORUNDERSTRICTLIABILITY,ORFORBREACHOFWARRANTYORCONTRACT,Page6Everybody's Guide to Money Matters INCLUDINGBUTNOTLIMITED TO INDIRECT,CONSEQUENTIAL,PUNITIVEORINCIDENTALDAMAGES,EVENIFYOUGIVENOTICEOFTHEPOSSIBILITYOFSUCHDAMAGES.IfyoudiscoveraDefectinthisetextwithin90daysofreceivingit,youcanreceivearefundofthe money (ifany)youpaidforitbysendinganexplanatorynotewithinthattime to thepersonyoureceiveditfrom.Ifyoureceiveditonaphysicalmedium,youmustreturnitwithyournote,andsuchpersonmaychoose to alternativelygiveyouareplacementcopy.Ifyoureceiveditelectronically,suchpersonmaychoose to alternativelygiveyouasecondopportunity to receiveitelectronically.THISETEXTISOTHERWISEPROVIDED TO YOU"AS-IS".NOOTHERWARRANTIESOFANYKIND,EXPRESSORIMPLIED,AREMADE TO YOUAS TO THEETEXTORANYMEDIUMITMAYBEON,INCLUDINGBUTNOTLIMITED TO WARRANTIESOFMERCHANTABILITYORFITNESSFORAPARTICULARPURPOSE.Somestatesdonotallowdisclaimersofimpliedwarrantiesortheexclusionorlimitationofconsequentialdamages,sotheabovedisclaimersandexclusionsmaynotapply to you,andyoumayhaveotherlegalrights.INDEMNITYYouwillindemnifyandholdtheProject,itsdirectors,oficers,membersandagentsharmlessfromallliability,costandexpense,includinglegalfees,thatarisedirectlyorindirectlyfromanyofthefollowingthatyoudoorcause:Page7Everybody's Guide to Money Matters [1]distributionofthisetext,[2]alteration,modiication,oraddition to theetext,or[3]anyDefect.DISTRIBUTIONUNDER"PROJECTGUTENBERG-tm"Youmaydistributecopiesofthisetextelectronically,orbydisk,bookoranyothermediumifyoueitherdeletethis"SmallPrint!"andallotherreferences to ProjectGutenberg,or:[1]Onlygiveexactcopiesofit.Amongotherthings,thisrequiresthatyoudonotremove,alterormodifytheetextorthis"smallprint!"statement.Youmayhowever,ifyouwish,distributethisetextinmachinereadablebinary,compressed,mark-up,orproprietaryform,includinganyformresultingfromconversionbywordpro-cessingorhypertextsoftware,butonlysolongas*EITHER*:[*]Theetext,whendisplayed,isclearlyreadable,anddoes*not*containcharactersotherthanthoseintendedbytheauthorofthework,althoughtilde(~),asterisk(*)andunderline(_)charactersmaybeused to conveypunctuationintendedbytheauthor,andadditionalcharactersmaybeused to indicatehypertextlinks;OR[*]TheetextmaybereadilyconvertedbythereaderatnoexpenseintoplainASCII,EBCDICorequivalentformbytheprogramthatdisplaystheetext(asisthecase,forinstance,withmostwordprocessors);ORPage8Everybody's Guide to Money Matters [*]Youprovide,oragree to alsoprovideonrequestatnoadditionalcost,feeorexpense,acopyoftheetextinitsoriginalplainASCIIform(orinEBCDICorotherequivalentproprietaryform).[2]Honortheetextrefundandreplacementprovisionsofthis"SmallPrint!"statement.[3]Payatrademarklicensefee to theProjectof20%ofthenetproitsyouderivecalculatedusingthemethodyoualreadyuse to calculateyourapplicabletaxes.Ifyoudon'tderiveproits,noroyaltyisdue.Royaltiesarepayable to "ProjectGutenbergAssociation/Carnegie-MellonUniversity"withinthe60daysfollowingeachdateyouprepare(orwerelegallyrequired to prepare)yourannual(orequivalentperiodic)taxreturn.WHATIFYOU*WANT* TO SEND MONEY EVENIFYOUDON'THAVE TO? TheProjectgratefullyacceptscontributionsin money, time,scanningmachines,OCRsoftware,publicdomainetexts,royaltyfreecopyrightlicenses,andeveryothersortofcontributionyoucanthinkof. Money shouldbepaid to "ProjectGutenbergAssociation/Carnegie-MellonUniversity".*END*THESMALLPRINT!FORPUBLICDOMAINETEXTS*Ver.04.29.93*END*ThisetextwaspreparedbyNigelLacey,Leicestershire,UK.Page9Everybody's Guide to Money Matters Transcriber'sNotes:IhaveusedtheUKpoundsymbol(£)inthise-textasitappearsintheoriginal.[ItlookslikeanLwithacrossbar.]Iamuncertainwhetherthissymbolwillbesupportedonallsystemsandfontsthatthistextileendsbeingviewedwith.Myapologiesifthisapplies to you.Ihaveendeavoured to retaintheoriginaltableformatting,ratherthan to reformatthetablesinalignmentwiththetext.However,asseveralofthetableswereinlandscapeorientationintheoriginal,thishasnecessarilyresultedinsomeverylonglinesinthetables(up to 130charactersinsomecases).Finally,asIcheckedthetranscriptionprocesscertainerrorsinthetablescame to light.Ratherthancorrecttheseerrors,astheyareanintegralpartoftheoriginal,theonesthatInotedaremarkedwithunderscores(_).[Notethatunderscoresarealsoused to mark_italicised_passagesintheoriginaltext.]Page10Everybody's Guide to Money Matters Everybody's Guide to Money Matters _Withadescriptionofthevariousinvest-mentschielydealtinonthestockexchange,andthemodeofdealingtherein_alsoSomeaccountofthepitfallspreparedfortheunwary,andsuggestions to thecautiousinvestor.byWilliamCotton,F.S.A.LatetreasurerofthecountyofDevon,authorof"AnElizabethanGuild,""GleaningsfromRecords,""TheBankManager,"etc.Originatorofthepostalordersystem.London1898.PREFACE.Page11Everybody's Guide to Money Matters THEAuthor,emboldenedbyaBankingexpe-rienceofoverfortyyears,offersthislittlework to thepublicinthehopethat,elementarythoughitbe,itmayproveacceptable to manypersonsofbothsexes.Theworkhasbeenpreparedchielyfortheuseofwomen,avastproportionofwhomarebroughtupinutterignoranceof money matters inthesimplestform,thoughotherwisetheymaybehighlyaccomplished.Thesubject,itmustbeallowed,isnotafasci-natingone,butthereareperiodsinthelivesofmostpersonswhensomeknowledgeof money matters maybeusefulandevennecessary.W.C.CONTENTS.PAGECHAP.I.-Whatis Money? -What to dowithit-How to openaBankAccount-How to drawCheques...1CHAP.II.-How to Deposit Money atInterest-TheBankPassBook-TheAdvantagesofaBankAccount.13Page12Everybody's Guide to Money Matters CHAP.III.-LondonBanksandBanking-BillofExchange-Deposits-ScotchandIrishBanks.......20CHAP.IV.-Investments-WhatareSecurities-Mortgages-TheFunds-TheNationalDebt-StocksandShares-Dividends,howPayable............26CHAP.V.-BritishGovernmentFunds-TheDifferentDebts-TerminableAnnuities-LoansGuaranteedbyGovern-ment-Dividends,how to Receivethem-AutomaticRe-investmentofDividends............35CHAP.VI.-GovernmentAnnuities,how to Purchase-WhenPayable-Tables-InsuranceOficeAnnuities-Tables-IndianGovernmentStocks...........41CHAP.VII.-Loans to Corporations,&c.-ColonialGovern-mentSecurities-InscribedStocksandBonds-ListofInscribedStocks-BondsandCoupons-ForeignGovern-mentStocks-CautioninInvesting-Railways-TheDifferentStocksandtheirRelativeValues-TheWar-rantsforInterestandDividends-IndianRailwayStocks-AmericanRailways-ForeignRailways-Banks-AsanInvestment-ColonialandForeignCorporationStocks-CanalsandDocks-Gas-ElectricLighting,TelegraphandTelephone-WaterWorks-Breweries-IndustrialCompanies-Financial,LandandInvestmentCompanies-FinancialTrusts-InsuranceCompanies-SteamshipCompanies-Mines...............55CHAP.VIII.-TheStockExchange-BrokersandJobbers-HowBusinessisDone-"Contango"and"Backwarda-Page13Everybody's Guide to Money Matters tion"-"Bulls"and"Bears"-"Boom"and"Slump"-Settlement-RiskinKeepingConvertibleBonds-Brokers-TrapsandSnares-GoodCompaniesandBad-AdvertisingSwindles-GoldMines-ATypicalCase-ExplorationCompanies.............79CHAP.IX.-LifeInsurance-ItsAdvantages-MutualandJointStockCompanies-ChoiceofOfice-FormofPro-posal-Examination-Premiums,howPayable-ExamplesofAdvantage-VariousModesofInsuring-Bonuses-HowApplied-EndowmentInsurance-Non-proitablePolicies-SettlementPolicies-EndowmentofChildren-InsuranceofJointLives-InsuranceonLongestofTwoLives-Surrenders-FireInsurance-FarmStock-OtherInsurances..................101CHAP.X.-ABuildingSociety,ModeofDoingBusiness-How to ObtainaShare,andTableofPayments-How to Withdraw,andTable-Borrowers-How to BuildaHouse-TableofPayments-HowProitsaremade-TheWeakPointsofSocietiesBadlyConducted-WhatLeads to Collapse-NecessityforChoosingDirectorsofStandingandCharacter-NecessityforEficientAuditofAc-counts....................122CHAP.XI.-ThePostOficeSavingsBank-ModeofDepo-siting-OpeninganAccount-ConvenienceandPrecau-tions-LimitinAmounts-Withdrawal-Payment to Representatives-GovernmentAnnuities,&c.-Advan-tagesthePostOficeOffers.........134Page14Everybody's Guide to Money Matters APPENDIX.TableofInterestonInvestments...........142ExamplesofBusinessCommunications-Sending Money byPost................143Requiring Money ...............143AcknowledgingReceipt.............144Transfer to DepositAccount..........144ArrangingCheques to beHonoredbyAnotherBank145RequestforPassportandCircularNotes....145OrderingLetterofCredit...........146RemittinginthisCountry...........146LodgingSecuritiesatBank..........147Order to ReceiveDividends..........147OrderingInvestments.............148EVERYBODY'S GUIDE TO MONEY MATTERS. CHAPTERI.EASYSTEPS TO MONEY MATTERS. MONEY isthemediumbywhichwemayacquirefromothers,whoarewilling to partwiththem,suchthingsaswemaydesire.Thepriceofanarticleisthevaluesetuponitbythepossessor,Page15Everybody's Guide to Money Matters asrepresentedbyanexpressedsumin money. Thepriceofsomethingsarearbitrarilyixedbylaworcustom,suchasstamps,professionalfees,duties,&c.Thestandardofvalueinthiscountryisgold,anditisasagainstgold,representedbycoinsofdifferentdenominations,thatthevalueofallcommoditiesisestimated.TheauthorisedcoinsoftheUnitedKingdomconsistofthefollowingpieces:-GOLD.Five-sovereignpiece,equal to Fivepounds.Two-sovereignpiece,equal to Twopounds.One-sovereignpiece,equal to Onepound.Half-sovereignpiece,equal to Half-a-pound.SILVER.Acrown,orive-shillingpiece,equal to one-fourthofasovereign.Double-iorin,orfour-shillingpiece,equal to one-ifthofasovereign.Half-a-crown,ortwoshillingsandsixpence,equal to one-eighthofasovereign.Florin,ortwo-shillingpiece,equal to one-tenthofasovereign.Shillingpiece,equal to one-twentiethofasovereign.Sixpennypiece,one-halfofashilling.Page16Everybody's Guide to Money Matters Threepennypiece,one-halfofasixpence.BRONZE.Apenny,equal to one-twelfthofashilling.Halfpenny,equal to one-halfofapenny.Farthing,one-fourthofapenny.Inwritingorspeakingofsumsof money theexpressiontakestheformof"pounds,shillings,andpence";forexample,Twenty-onepoundsiveshillingsandninepence.Sometimestheword"sterling"isadded,meaninggenuineorstandardcoinoftherealm.Inaccountstheiguresareplacedinthreeparallelcolumnsundertheheadingof£s.d."£"forpounds,"s."forshillings,and"d."forpence,from_Libri_,_solidi_,and_denarii_,theLatinequivalentsforthesevalues.|||||||£|s.|d.|||21|5|9||||||Anotherformof money, ifitmaybesotermed,istheBanknote.Thisissimplyapromise to pay,ondemand,theamountrepre-sentedonthenote,ingoldorsomelegaltender.Themostcommoninuseare£5notes,butthereareothersofdifferentdenominations,suchas£10,£20,£50,£100,&c.Somecountrybanksstillissuethesenotes,buttheyarebylawPage17Everybody's Guide to Money Matters restrictedfromissuingbeyondacertainamountixedbytheBankActof1844.Nonewbankcanissuenotes,andthosewhichhavetheprivi-legearegraduallyrelinquishingit,sothatincourseoftimetherewillbeonlyonebankentitled to issuenotes,andthatistheBankofEngland.Thenotesofcountrybanks,otherthantheBankofEngland,arenotalegaltender;thatis,itisnotcompulsoryonanyone to accepttheminpaymentofadebt.TheBankofEnglandistheoldestjoint-stockbankinthecountry,andalthough,initsconsti-tution,itdoesnotdiffermateriallyfromotherjoint-stockbanks,yet,beingtheagentoftheBritishGovernmentinall money matters, andpossessingotherexclusiveprivileges,itislookeduponasoneoftheenduringinstitutionsofthecountry.*(*SeeJoint-StockBanks,p.68.)Amongstotherprivilegesitenjoysistheauthority to issuepromissorynotes to acertainextent,representingrespectivelysumsof£5,£10,£20,£50,£100,£200,£500,and£1,000.TheseBankofEnglandnotes,astheyaretermed,areabsolutelyconvertible,thatis to say,thebankislegallybound to exchangethemforgoldatalltimeswhendemanded;andacer-tainamountofgoldhasalways,bylaw, to bePage18Everybody's Guide to Money Matters keptinstockforthepurpose.Moreover,thetenderofBankofEnglandnotes,thesameaswithgold,inpaymentofadebt,cannot,inthiscountry,legallyberefused.Noone,however,canbecompelled to givechange;thatis to say,ifyouoweaperson£415s.,youareboundinstrictlaw to payhimthatexactsum.Youcannotofferhimaive-poundnoteandinsistuponhisgivingyou5s.change,though,asamatterofcourtesyandconvenience,paymentsareconstantlyacceptedinthatform.ItmustbeobviousthattheseBankofEng-landnotesareagreatconvenience,andevenanecessity to thepublic,asitwouldbequiteimpossible to carryontheenormousbusinessofthecountryifsuchacumbersomemediumasgoldcoinswastheonlylegalwayofpayingdebt.Nevertheless,goldcoinofproperweightisalegaltender to anyamount.Silverisnotalegaltenderforsumsovertwopounds,norbronzeforsumsoveroneshilling.Butevenwithbank-notestherequirementsofbusinessarenotfullysatisied,asthereisalwaystheriskoftheirbeinglostorstolen. To avoidthisrisk,and to providefacilitiesforbuyingandselling,withthecomplicationsinci-dentthereto,andthepassingof money fromonehand to another,anintermediaryagencyisrequired,andthatagencyis to befoundinthebankingcompanies.Innearlyeverytown,Page19Everybody's Guide to Money Matters havingapretence to thename,intheUnitedKingdom,willbefoundabranchbankofsomeestablishmentofmoreorlessrepute,andthosewhoarefortunateenough to possess money willdowell to takeadvantageofsuchanagencyfortheir money matters, having,ofcourse,irstascertainedthatthestandingofthecompanyissuchthattheymaydosowithsafetyandconi-dence.Asairststepwegiveanexampleofwhatisoccurringdailyinhundredsofcases.MissJaneSmithisaladywhohasbeenbroughtupwithouttheslightestinstructioninbusiness matters, indeedhasratherplumedher-selfontheideaofbeingquiteabovesuchthings.Suddenlysheindsherselfdependentuponothersforguidanceandadvice.Shewouldlike to actforherselfifsheonlyknewhow to dososafely,beingofasomewhatsuspicioustemperamentandmistrustfulofadvicefromfriendsoracquaint-ances.Eventhehighlyrespectablelawyer,whohashandedherapacketofdocumentsand£500incash(alegacyfromheruncle),withmuchsagecounsel,sheisnotquitesureabout,forshehasimbibedtheideafromheryouththatlawyersarenotalways to betrusted.Thepacketofdocumentsinthetinboxastheycame to herissetasideinasafeplaceforthemoment,butthebank-notesandgoldareaPage20Everybody's Guide to Money Matters matterofseriousconcern to her.Shefears to carrythemaboutherpersonlestsheshouldlosethem,orberobbed,andfeelssurethatifkeptinthehousetheywillattractanyburglarsthatmaybeintheneighbourhood.ThebestthingMissSmithcandois to go to oneoftheneighbouringbanksofrepute-saytheBlankshireBank-andaskthem to helpheroutofthedificulty.ShehasaninterviewwiththeManagerorCashier,tellsherstory,andisadvised to leavethe money atthebankandhaveanaccountopenedinhername.Thiscoursesheconsents to adopt,andhandsoverthe£500,requestingsomeacknowledgmentthatshehasdoneso,incommonterms,"something to showforit."Manybanksprovideandrequiretheircus-tomers to use"paying-inslips,"thatis,printedformsspecifyingthepaymentsmade to thebankundertheheadofcheques,notes,gold,andsilver.Aformishandedinwitheachpayment,andtheinitialsofthecashierplacedagainsttheamountnotedonthecounterfoil,whichisre-tainedbythecustomer.Inaddition to thisMissSmithwillbepre-sentedwithwhatiscalledapass-book-abookpassingbetweenthebankandherself,nowbecomeacustomer-inwhichshewillinditPage21Everybody's Guide to Money Matters statedinthebriefestbusinessmanner,thattheBlankshireBankisDr.(debtor) to, orowes,MissJaneSmith£500.Shewillbetoldthatportionsofthis money maybedrawnoutfromtime to timeasshemayneedit,butthiscanonlybedonebycheques,orformsofrequest to thebank to payouttheamountdesired.*Theseforms,providedbythebank,areprinted,blankspacesbeingleft to beilledupinwriting,andtheyaremadeupinbooksofvarioussizes,eachformbearingapennystamp.Thecustomerpaysforthebookaccording to thenumberofstampsitcontains,butnomore.MissSmithbuysacheque-book,and,openingit,indsthefollowingforminprint:-(*Thepracticewithsomepeopleofwritingchequesonplainpaperisdiscountenancedbybankers,andis to becondemned.) ... Everybody's Guide to Money Matters ProjectGutenbergEtextofEverybody's Guide to Money, byCottonCopyrightlawsarechangingallovertheworld,besure to checkthecopyrightlawsforyourcountrybeforepostingtheseiles!!Pleasetakealookattheimportantinformationinthisheader.Weencourageyou to keepthisileonyourowndisk,keepinganelectronicpathopenforthenextreaders.Donotremovethis.**Welcome To TheWorldofFreePlainVanillaElectronicTexts****EtextsReadableByBothHumansandByComputers,Since1971***TheseEtextsPreparedByHundredsofVolunteersandDonations*InformationoncontactingProjectGutenberg to getEtexts,andfurtherinformationisincludedbelow.Weneedyourdonations.Everybody's Guide to Money Matters byWilliamCotton,F.S.A.September,1999[Etext#1903][Datelastupdated:August22,2003]ProjectGutenbergEtextofEverybody's Guide to Money, byCotton******Thisileshouldbenamedegtmm10.txtoregtmm10.zip******Page1Everybody's Guide to Money Matters CorrectedEDITIONSofouretextsgetanewNUMBER,egtmm11.txtVERSIONSbasedonseparatesourcesgetnewLETTER,egtmm10a.txtThisetextwaspreparedbyNigelLacey,Leicestershire,UK.ProjectGutenbergEtextsareusuallycreatedfrommultipleeditions,allofwhichareinthePublicDomainintheUnitedStates,unlessacopyrightnoticeisincluded.Therefore,wedousuallydoNOT!keepthesebooksincompliancewithanyparticularpaperedition.Wearenowtrying to releaseallourbooksonemonthinadvanceoftheoficialreleasedates,leavingtimeforbetterediting.Pleasenote:neitherthislistnoritscontentsareinaltillmidnightofthelastdayofthemonthofanysuchannouncement.TheoficialreleasedateofallProjectGutenbergEtextsisatMidnight,CentralTime,ofthelastdayofthestatedmonth.Apreliminaryversionmayoftenbepostedforsuggestion,commentandeditingbythosewhowish to doso. To besureyouhaveanup to dateirstedition[xxxxx10x.xxx]pleasecheckilesizesintheirstweekofthenextmonth.Sinceourftpprogramhasabuginitthatscramblesthedate[tried to ixandfailed]alookattheilesizewillhave to do,butwewilltry to seeanewcopyhasatleastonebytemoreorless.InformationaboutProjectGutenberg(onepage)Weproduceabouttwomilliondollarsforeachhourwework.Thetimeittakesus,aratherconservativeestimate,isiftyhoursPage2Everybody's Guide to Money Matters to getanyetextselected,entered,proofread,edited,copyrightsearchedandanalyzed,thecopyrightletterswritten,etc.Thisprojectedaudienceisonehundredmillionreaders.Ifourvaluepertextisnominallyestimatedatonedollarthenweproduce$2milliondollarsperhourthisyearaswereleasethirty-sixtextilespermonth,or432moreEtextsin1999foratotalof2000+Ifthesereachjust10%ofthecomputerizedpopulation,thenthetotalshouldreachover200billionEtextsgivenawaythisyear.TheGoalofProjectGutenbergis to GiveAwayOneTrillionEtextFilesbyDecember31,2001.[10,000x100,000,000=1Trillion]Thisistenthousandtitleseach to onehundredmillionreaders,whichisonly~5%ofthepresentnumberofcomputerusers.Atourrevisedratesofproduction,wewillreachonlyone-thirdofthatgoalbytheendof2001,orabout3,333Etextsunlesswemanage to getsomerealfunding;currentlyourfundingismostlyfromMichaelHart'ssalaryatCarnegie-MellonUniversity,andanassortmentofsporadicgifts;thissalaryisonlygoodforafewmoreyears,sowearelookingforsomething to replaceit,aswedon'twantProjectGutenberg to besodependentononeperson.Weneedyourdonationsmorethanever!Alldonationsshouldbemade to "ProjectGutenberg/CMU":andaretaxdeductible to theextentallowablebylaw.(CMU=Carnegie-MellonUniversity).Fortheseandother matters, pleasemail to: ProjectGutenbergPage3Everybody's Guide to Money Matters P.O.Box2782Champaign,IL61825Whenallotheremailfails...tryourExecutiveDirector:MichaelS.Hart<hart@pobox.com>hart@pobox.comforwards to hart@prairienet.organdarchive.orgifyourmailbouncesfromarchive.org,Iwillstillseeit,ifitbouncesfromprairienet.org,betterresendlateron....Wewouldprefer to sendyouthisinformationbyemail.****** To accessProjectGutenbergetexts,useanyWebbrowser to viewhttp://promo.net/pg.ThissitelistsEtextsbyauthorandbytitle,andincludesinformationabouthow to getinvolvedwithProjectGutenberg.YoucouldalsodownloadourpastNewsletters,orsubscribehere.Thisisoneofourmajorsites,pleaseemailhart@pobox.com,foramorecompletelistofourvarioussites. To godirectly to theetextcollections,useFTPoranyWebbrowser to visitaProjectGutenbergmirror(mirrorsitesareavailableon7continents;mirrorsarelistedathttp://promo.net/pg).Macusers,doNOTpointandclick,typingworksbetter.ExampleFTPsession:ftpsunsite.unc.edulogin:anonymousPage4Everybody's Guide to Money Matters password:your@logincdpub/docs/books/gutenbergcdetext90throughetext99dir [to seeiles]getormget [to getiles...setbinforzipiles]GETGUTINDEX.?? [to getayear'slistingofbooks,e.g.,GUTINDEX.99]GETGUTINDEX.ALL [to getalistingofALLbooks]*****InformationpreparedbytheProjectGutenberglegaladvisor**(ThreePages)***START**THESMALLPRINT!**FORPUBLICDOMAINETEXTS**START***Whyisthis"SmallPrint!"statementhere?Youknow:lawyers.Theytellusyoumightsueusifthereissomethingwrongwithyourcopyofthisetext,evenifyougotitforfreefromsomeoneotherthanus,andevenifwhat'swrongisnotourfault.So,amongotherthings,this"SmallPrint!"statementdisclaimsmostofourliability to you.Italsotellsyouhowyoucandistributecopiesofthisetextifyouwant to. *BEFORE!*YOUUSEORREADTHISETEXTByusingorreadinganypartofthisPROJECTGUTENBERG-tmetext,youindicatethatyouunderstand,agree to andacceptthis"SmallPrint!"statement.Ifyoudonot,youcanreceivearefundofthe money (ifany)youpaidforthisetextbysendingarequestwithin30daysofreceivingit to thepersonyougotitfrom.IfyoureceivedthisetextonaphysicalPage5Everybody's Guide to Money Matters medium(suchasadisk),youmustreturnitwithyourrequest.ABOUTPROJECTGUTENBERG-TMETEXTSThisPROJECTGUTENBERG-tmetext,likemostPROJECTGUTENBERG-tmetexts,isa"publicdomain"workdistributedbyProfessorMichaelS.HartthroughtheProjectGutenbergAssociationatCarnegie-MellonUniversity(the"Project").Amongotherthings,thismeansthatnooneownsaUnitedStatescopyrightonorforthiswork,sotheProject(andyou!)cancopyanddistributeitintheUnitedStateswithoutpermissionandwithoutpayingcopyrightroyalties.Specialrules,setforthbelow,applyifyouwish to copyanddistributethisetextundertheProject's"PROJECTGUTENBERG"trademark. To createtheseetexts,theProjectexpendsconsiderableefforts to identify,transcribeandproofreadpublicdomainworks.Despitetheseefforts,theProject'setextsandanymediumtheymaybeonmaycontain"Defects".Amongotherthings,Defectsmaytaketheformofincomplete,inaccurateorcorruptdata,transcriptionerrors,acopyrightorotherintellectualpropertyinfringement,adefectiveordamageddiskorotheretextmedium,acomputervirus,orcomputercodesthatdamageorcannotbereadbyyourequipment.LIMITEDWARRANTY;DISCLAIMEROFDAMAGESButforthe"RightofReplacementorRefund"describedbelow,[1]theProject(andanyotherpartyyoumayreceivethisetextfromasaPROJECTGUTENBERG-tmetext)disclaimsallliability to youfordamages,costsandexpenses,includinglegalfees,and[2]YOUHAVENOREMEDIESFORNEGLIGENCEORUNDERSTRICTLIABILITY,ORFORBREACHOFWARRANTYORCONTRACT,Page6Everybody's Guide to Money Matters INCLUDINGBUTNOTLIMITED TO INDIRECT,CONSEQUENTIAL,PUNITIVEORINCIDENTALDAMAGES,EVENIFYOUGIVENOTICEOFTHEPOSSIBILITYOFSUCHDAMAGES.IfyoudiscoveraDefectinthisetextwithin90daysofreceivingit,youcanreceivearefundofthe money (ifany)youpaidforitbysendinganexplanatorynotewithinthattime to thepersonyoureceiveditfrom.Ifyoureceiveditonaphysicalmedium,youmustreturnitwithyournote,andsuchpersonmaychoose to alternativelygiveyouareplacementcopy.Ifyoureceiveditelectronically,suchpersonmaychoose to alternativelygiveyouasecondopportunity to receiveitelectronically.THISETEXTISOTHERWISEPROVIDED TO YOU"AS-IS".NOOTHERWARRANTIESOFANYKIND,EXPRESSORIMPLIED,AREMADE TO YOUAS TO THEETEXTORANYMEDIUMITMAYBEON,INCLUDINGBUTNOTLIMITED TO WARRANTIESOFMERCHANTABILITYORFITNESSFORAPARTICULARPURPOSE.Somestatesdonotallowdisclaimersofimpliedwarrantiesortheexclusionorlimitationofconsequentialdamages,sotheabovedisclaimersandexclusionsmaynotapply to you,andyoumayhaveotherlegalrights.INDEMNITYYouwillindemnifyandholdtheProject,itsdirectors,oficers,membersandagentsharmlessfromallliability,costandexpense,includinglegalfees,thatarisedirectlyorindirectlyfromanyofthefollowingthatyoudoorcause:Page7Everybody's Guide to Money Matters [1]distributionofthisetext,[2]alteration,modiication,oraddition to theetext,or[3]anyDefect.DISTRIBUTIONUNDER"PROJECTGUTENBERG-tm"Youmaydistributecopiesofthisetextelectronically,orbydisk,bookoranyothermediumifyoueitherdeletethis"SmallPrint!"andallotherreferences to ProjectGutenberg,or:[1]Onlygiveexactcopiesofit.Amongotherthings,thisrequiresthatyoudonotremove,alterormodifytheetextorthis"smallprint!"statement.Youmayhowever,ifyouwish,distributethisetextinmachinereadablebinary,compressed,mark-up,orproprietaryform,includinganyformresultingfromconversionbywordpro-cessingorhypertextsoftware,butonlysolongas*EITHER*:[*]Theetext,whendisplayed,isclearlyreadable,anddoes*not*containcharactersotherthanthoseintendedbytheauthorofthework,althoughtilde(~),asterisk(*)andunderline(_)charactersmaybeused to conveypunctuationintendedbytheauthor,andadditionalcharactersmaybeused to indicatehypertextlinks;OR[*]TheetextmaybereadilyconvertedbythereaderatnoexpenseintoplainASCII,EBCDICorequivalentformbytheprogramthatdisplaystheetext(asisthecase,forinstance,withmostwordprocessors);ORPage8Everybody's Guide to Money Matters [*]Youprovide,oragree to alsoprovideonrequestatnoadditionalcost,feeorexpense,acopyoftheetextinitsoriginalplainASCIIform(orinEBCDICorotherequivalentproprietaryform).[2]Honortheetextrefundandreplacementprovisionsofthis"SmallPrint!"statement.[3]Payatrademarklicensefee to theProjectof20%ofthenetproitsyouderivecalculatedusingthemethodyoualreadyuse to calculateyourapplicabletaxes.Ifyoudon'tderiveproits,noroyaltyisdue.Royaltiesarepayable to "ProjectGutenbergAssociation/Carnegie-MellonUniversity"withinthe60daysfollowingeachdateyouprepare(orwerelegallyrequired to prepare)yourannual(orequivalentperiodic)taxreturn.WHATIFYOU*WANT* TO SEND MONEY EVENIFYOUDON'THAVE TO? TheProjectgratefullyacceptscontributionsin money, time,scanningmachines,OCRsoftware,publicdomainetexts,royaltyfreecopyrightlicenses,andeveryothersortofcontributionyoucanthinkof. Money shouldbepaid to "ProjectGutenbergAssociation/Carnegie-MellonUniversity".*END*THESMALLPRINT!FORPUBLICDOMAINETEXTS*Ver.04.29.93*END*ThisetextwaspreparedbyNigelLacey,Leicestershire,UK.Page9Everybody's Guide to Money Matters Transcriber'sNotes:IhaveusedtheUKpoundsymbol(£)inthise-textasitappearsintheoriginal.[ItlookslikeanLwithacrossbar.]Iamuncertainwhetherthissymbolwillbesupportedonallsystemsandfontsthatthistextileendsbeingviewedwith.Myapologiesifthisapplies to you.Ihaveendeavoured to retaintheoriginaltableformatting,ratherthan to reformatthetablesinalignmentwiththetext.However,asseveralofthetableswereinlandscapeorientationintheoriginal,thishasnecessarilyresultedinsomeverylonglinesinthetables(up to 130charactersinsomecases).Finally,asIcheckedthetranscriptionprocesscertainerrorsinthetablescame to light.Ratherthancorrecttheseerrors,astheyareanintegralpartoftheoriginal,theonesthatInotedaremarkedwithunderscores(_).[Notethatunderscoresarealsoused to mark_italicised_passagesintheoriginaltext.]Page10Everybody's Guide to Money Matters Everybody's Guide to Money Matters _Withadescriptionofthevariousinvest-mentschielydealtinonthestockexchange,andthemodeofdealingtherein_alsoSomeaccountofthepitfallspreparedfortheunwary,andsuggestions to thecautiousinvestor.byWilliamCotton,F.S.A.LatetreasurerofthecountyofDevon,authorof"AnElizabethanGuild,""GleaningsfromRecords,""TheBankManager,"etc.Originatorofthepostalordersystem.London1898.PREFACE.Page11Everybody's Guide to Money Matters THEAuthor,emboldenedbyaBankingexpe-rienceofoverfortyyears,offersthislittlework to thepublicinthehopethat,elementarythoughitbe,itmayproveacceptable to manypersonsofbothsexes.Theworkhasbeenpreparedchielyfortheuseofwomen,avastproportionofwhomarebroughtupinutterignoranceof money matters inthesimplestform,thoughotherwisetheymaybehighlyaccomplished.Thesubject,itmustbeallowed,isnotafasci-natingone,butthereareperiodsinthelivesofmostpersonswhensomeknowledgeof money matters maybeusefulandevennecessary.W.C.CONTENTS.PAGECHAP.I.-Whatis Money? -What to dowithit-How to openaBankAccount-How to drawCheques...1CHAP.II.-How to Deposit Money atInterest-TheBankPassBook-TheAdvantagesofaBankAccount.13Page12Everybody's Guide to Money Matters CHAP.III.-LondonBanksandBanking-BillofExchange-Deposits-ScotchandIrishBanks.......20CHAP.IV.-Investments-WhatareSecurities-Mortgages-TheFunds-TheNationalDebt-StocksandShares-Dividends,howPayable............26CHAP.V.-BritishGovernmentFunds-TheDifferentDebts-TerminableAnnuities-LoansGuaranteedbyGovern-ment-Dividends,how to Receivethem-AutomaticRe-investmentofDividends............35CHAP.VI.-GovernmentAnnuities,how to Purchase-WhenPayable-Tables-InsuranceOficeAnnuities-Tables-IndianGovernmentStocks...........41CHAP.VII.-Loans to Corporations,&c.-ColonialGovern-mentSecurities-InscribedStocksandBonds-ListofInscribedStocks-BondsandCoupons-ForeignGovern-mentStocks-CautioninInvesting-Railways-TheDifferentStocksandtheirRelativeValues-TheWar-rantsforInterestandDividends-IndianRailwayStocks-AmericanRailways-ForeignRailways-Banks-AsanInvestment-ColonialandForeignCorporationStocks-CanalsandDocks-Gas-ElectricLighting,TelegraphandTelephone-WaterWorks-Breweries-IndustrialCompanies-Financial,LandandInvestmentCompanies-FinancialTrusts-InsuranceCompanies-SteamshipCompanies-Mines...............55CHAP.VIII.-TheStockExchange-BrokersandJobbers-HowBusinessisDone-"Contango"and"Backwarda-Page13Everybody's Guide to Money Matters tion"-"Bulls"and"Bears"-"Boom"and"Slump"-Settlement-RiskinKeepingConvertibleBonds-Brokers-TrapsandSnares-GoodCompaniesandBad-AdvertisingSwindles-GoldMines-ATypicalCase-ExplorationCompanies.............79CHAP.IX.-LifeInsurance-ItsAdvantages-MutualandJointStockCompanies-ChoiceofOfice-FormofPro-posal-Examination-Premiums,howPayable-ExamplesofAdvantage-VariousModesofInsuring-Bonuses-HowApplied-EndowmentInsurance-Non-proitablePolicies-SettlementPolicies-EndowmentofChildren-InsuranceofJointLives-InsuranceonLongestofTwoLives-Surrenders-FireInsurance-FarmStock-OtherInsurances..................101CHAP.X.-ABuildingSociety,ModeofDoingBusiness-How to ObtainaShare,andTableofPayments-How to Withdraw,andTable-Borrowers-How to BuildaHouse-TableofPayments-HowProitsaremade-TheWeakPointsofSocietiesBadlyConducted-WhatLeads to Collapse-NecessityforChoosingDirectorsofStandingandCharacter-NecessityforEficientAuditofAc-counts....................122CHAP.XI.-ThePostOficeSavingsBank-ModeofDepo-siting-OpeninganAccount-ConvenienceandPrecau-tions-LimitinAmounts-Withdrawal-Payment to Representatives-GovernmentAnnuities,&c.-Advan-tagesthePostOficeOffers.........134Page14Everybody's Guide to Money Matters APPENDIX.TableofInterestonInvestments...........142ExamplesofBusinessCommunications-Sending Money byPost................143Requiring Money ...............143AcknowledgingReceipt.............144Transfer to DepositAccount..........144ArrangingCheques to beHonoredbyAnotherBank145RequestforPassportandCircularNotes....145OrderingLetterofCredit...........146RemittinginthisCountry...........146LodgingSecuritiesatBank..........147Order to ReceiveDividends..........147OrderingInvestments.............148EVERYBODY'S GUIDE TO MONEY MATTERS. CHAPTERI.EASYSTEPS TO MONEY MATTERS. MONEY isthemediumbywhichwemayacquirefromothers,whoarewilling to partwiththem,suchthingsaswemaydesire.Thepriceofanarticleisthevaluesetuponitbythepossessor,Page15Everybody's Guide to Money Matters asrepresentedbyanexpressedsumin money. Thepriceofsomethingsarearbitrarilyixedbylaworcustom,suchasstamps,professionalfees,duties,&c.Thestandardofvalueinthiscountryisgold,anditisasagainstgold,representedbycoinsofdifferentdenominations,thatthevalueofallcommoditiesisestimated.TheauthorisedcoinsoftheUnitedKingdomconsistofthefollowingpieces:-GOLD.Five-sovereignpiece,equal to Fivepounds.Two-sovereignpiece,equal to Twopounds.One-sovereignpiece,equal to Onepound.Half-sovereignpiece,equal to Half-a-pound.SILVER.Acrown,orive-shillingpiece,equal to one-fourthofasovereign.Double-iorin,orfour-shillingpiece,equal to one-ifthofasovereign.Half-a-crown,ortwoshillingsandsixpence,equal to one-eighthofasovereign.Florin,ortwo-shillingpiece,equal to one-tenthofasovereign.Shillingpiece,equal to one-twentiethofasovereign.Sixpennypiece,one-halfofashilling.Page16Everybody's Guide to Money Matters Threepennypiece,one-halfofasixpence.BRONZE.Apenny,equal to one-twelfthofashilling.Halfpenny,equal to one-halfofapenny.Farthing,one-fourthofapenny.Inwritingorspeakingofsumsof money theexpressiontakestheformof"pounds,shillings,andpence";forexample,Twenty-onepoundsiveshillingsandninepence.Sometimestheword"sterling"isadded,meaninggenuineorstandardcoinoftherealm.Inaccountstheiguresareplacedinthreeparallelcolumnsundertheheadingof£s.d."£"forpounds,"s."forshillings,and"d."forpence,from_Libri_,_solidi_,and_denarii_,theLatinequivalentsforthesevalues.|||||||£|s.|d.|||21|5|9||||||Anotherformof money, ifitmaybesotermed,istheBanknote.Thisissimplyapromise to pay,ondemand,theamountrepre-sentedonthenote,ingoldorsomelegaltender.Themostcommoninuseare£5notes,butthereareothersofdifferentdenominations,suchas£10,£20,£50,£100,&c.Somecountrybanksstillissuethesenotes,buttheyarebylawPage17Everybody's Guide to Money Matters restrictedfromissuingbeyondacertainamountixedbytheBankActof1844.Nonewbankcanissuenotes,andthosewhichhavetheprivi-legearegraduallyrelinquishingit,sothatincourseoftimetherewillbeonlyonebankentitled to issuenotes,andthatistheBankofEngland.Thenotesofcountrybanks,otherthantheBankofEngland,arenotalegaltender;thatis,itisnotcompulsoryonanyone to accepttheminpaymentofadebt.TheBankofEnglandistheoldestjoint-stockbankinthecountry,andalthough,initsconsti-tution,itdoesnotdiffermateriallyfromotherjoint-stockbanks,yet,beingtheagentoftheBritishGovernmentinall money matters, andpossessingotherexclusiveprivileges,itislookeduponasoneoftheenduringinstitutionsofthecountry.*(*SeeJoint-StockBanks,p.68.)Amongstotherprivilegesitenjoysistheauthority to issuepromissorynotes to acertainextent,representingrespectivelysumsof£5,£10,£20,£50,£100,£200,£500,and£1,000.TheseBankofEnglandnotes,astheyaretermed,areabsolutelyconvertible,thatis to say,thebankislegallybound to exchangethemforgoldatalltimeswhendemanded;andacer-tainamountofgoldhasalways,bylaw, to bePage18Everybody's Guide to Money Matters keptinstockforthepurpose.Moreover,thetenderofBankofEnglandnotes,thesameaswithgold,inpaymentofadebt,cannot,inthiscountry,legallyberefused.Noone,however,canbecompelled to givechange;thatis to say,ifyouoweaperson£415s.,youareboundinstrictlaw to payhimthatexactsum.Youcannotofferhimaive-poundnoteandinsistuponhisgivingyou5s.change,though,asamatterofcourtesyandconvenience,paymentsareconstantlyacceptedinthatform.ItmustbeobviousthattheseBankofEng-landnotesareagreatconvenience,andevenanecessity to thepublic,asitwouldbequiteimpossible to carryontheenormousbusinessofthecountryifsuchacumbersomemediumasgoldcoinswastheonlylegalwayofpayingdebt.Nevertheless,goldcoinofproperweightisalegaltender to anyamount.Silverisnotalegaltenderforsumsovertwopounds,norbronzeforsumsoveroneshilling.Butevenwithbank-notestherequirementsofbusinessarenotfullysatisied,asthereisalwaystheriskoftheirbeinglostorstolen. To avoidthisrisk,and to providefacilitiesforbuyingandselling,withthecomplicationsinci-dentthereto,andthepassingof money fromonehand to another,anintermediaryagencyisrequired,andthatagencyis to befoundinthebankingcompanies.Innearlyeverytown,Page19Everybody's Guide to Money Matters havingapretence to thename,intheUnitedKingdom,willbefoundabranchbankofsomeestablishmentofmoreorlessrepute,andthosewhoarefortunateenough to possess money willdowell to takeadvantageofsuchanagencyfortheir money matters, having,ofcourse,irstascertainedthatthestandingofthecompanyissuchthattheymaydosowithsafetyandconi-dence.Asairststepwegiveanexampleofwhatisoccurringdailyinhundredsofcases.MissJaneSmithisaladywhohasbeenbroughtupwithouttheslightestinstructioninbusiness matters, indeedhasratherplumedher-selfontheideaofbeingquiteabovesuchthings.Suddenlysheindsherselfdependentuponothersforguidanceandadvice.Shewouldlike to actforherselfifsheonlyknewhow to dososafely,beingofasomewhatsuspicioustemperamentandmistrustfulofadvicefromfriendsoracquaint-ances.Eventhehighlyrespectablelawyer,whohashandedherapacketofdocumentsand£500incash(alegacyfromheruncle),withmuchsagecounsel,sheisnotquitesureabout,forshehasimbibedtheideafromheryouththatlawyersarenotalways to betrusted.Thepacketofdocumentsinthetinboxastheycame to herissetasideinasafeplaceforthemoment,butthebank-notesandgoldareaPage20Everybody's Guide to Money Matters matterofseriousconcern to her.Shefears to carrythemaboutherpersonlestsheshouldlosethem,orberobbed,andfeelssurethatifkeptinthehousetheywillattractanyburglarsthatmaybeintheneighbourhood.ThebestthingMissSmithcandois to go to oneoftheneighbouringbanksofrepute-saytheBlankshireBank-andaskthem to helpheroutofthedificulty.ShehasaninterviewwiththeManagerorCashier,tellsherstory,andisadvised to leavethe money atthebankandhaveanaccountopenedinhername.Thiscoursesheconsents to adopt,andhandsoverthe£500,requestingsomeacknowledgmentthatshehasdoneso,incommonterms,"something to showforit."Manybanksprovideandrequiretheircus-tomers to use"paying-inslips,"thatis,printedformsspecifyingthepaymentsmade to thebankundertheheadofcheques,notes,gold,andsilver.Aformishandedinwitheachpayment,andtheinitialsofthecashierplacedagainsttheamountnotedonthecounterfoil,whichisre-tainedbythecustomer.Inaddition to thisMissSmithwillbepre-sentedwithwhatiscalledapass-book-abookpassingbetweenthebankandherself,nowbecomeacustomer-inwhichshewillinditPage21Everybody's Guide to Money Matters statedinthebriefestbusinessmanner,thattheBlankshireBankisDr.(debtor) to, orowes,MissJaneSmith£500.Shewillbetoldthatportionsofthis money maybedrawnoutfromtime to timeasshemayneedit,butthiscanonlybedonebycheques,orformsofrequest to thebank to payouttheamountdesired.*Theseforms,providedbythebank,areprinted,blankspacesbeingleft to beilledupinwriting,andtheyaremadeupinbooksofvarioussizes,eachformbearingapennystamp.Thecustomerpaysforthebookaccording to thenumberofstampsitcontains,butnomore.MissSmithbuysacheque-book,and,openingit,indsthefollowingforminprint:-(*Thepracticewithsomepeopleofwritingchequesonplainpaperisdiscountenancedbybankers,andis to becondemned.)...