Full Text Archive logoFull Text Archive — Free Classic E-books

Everybody's Guide to Money Matters by William Cotton, F.S.A.

Part 1 out of 3

Adobe PDF icon
Download this document as a .pdf
File size: 0.2 MB
What's this? light bulb idea Many people prefer to read off-line or to print out text and read from the real printed page. Others want to carry documents around with them on their mobile phones and read while they are on the move. We have created .pdf files of all out documents to accommodate all these groups of people. We recommend that you download .pdfs onto your mobile phone when it is connected to a WiFi connection for reading off-line.

This etext was prepared by Nigel Lacey, Leicestershire, UK.

Transcriber's Notes:

I have used the UK pound symbol () in this
e-text as it appears in the original. [It
looks like an L with a crossbar.] I am
uncertain whether this symbol will be
supported on all systems and fonts that this
text file ends being viewed with. My apologies
if this applies to you.

I have endeavoured to retain the original table
formatting, rather than to reformat the tables
in alignment with the text. However, as several
of the tables were in landscape orientation in
the original, this has necessarily resulted in
some very long lines in the tables (up to 130
characters in some cases).

Finally, as I checked the transcription process
certain errors in the tables came to light.
Rather than correct these errors, as they are
an integral part of the original, the ones that
I noted are marked with underscores (_). [Note
that underscores are also used to mark _italicised_
passages in the original text.]

Everybody's Guide
to
Money Matters

_With a description of the various invest-
ments chiefly dealt in on the stock
exchange, and the mode of
dealing therein_

also

Some account of the pitfalls prepared for the unwary,
and suggestions to the cautious investor.

by

William 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.

THE Author, emboldened by a Banking expe-
rience of over forty years, offers this little work
to the public in the hope that, elementary though
it be, it may prove acceptable to many persons
of both sexes.

The work has been prepared chiefly for the
use of women, a vast proportion of whom are
brought up in utter ignorance of money matters
in the simplest form, though otherwise they may
be highly accomplished.

The subject, it must be allowed, is not a fasci-
nating one, but there are periods in the lives of
most persons when some knowledge of money
matters may be useful and even necessary.

W.C.

CONTENTS.

PAGE
CHAP. I. - What is Money? - What to do with it - How to
open a Bank Account - How to draw Cheques . . . 1

CHAP. II. - How to Deposit Money at Interest - The Bank
Pass Book - The Advantages of a Bank Account . 13

CHAP. III. - London Banks and Banking - Bill of Exchange -
Deposits - Scotch and Irish Banks . . . . . . . 20

CHAP. IV. - Investments - What are Securities - Mortgages
- The Funds - The National Debt - Stocks and Shares -
Dividends, how Payable . . . . . . . . . . . . 26

CHAP. V. - British Government Funds - The Different Debts
- Terminable Annuities - Loans Guaranteed by Govern-
ment - Dividends, how to Receive them - Automatic Re-
investment of Dividends . . . . . . . . . . . . 35

CHAP. VI. - Government Annuities, how to Purchase - When
Payable - Tables - Insurance Office Annuities - Tables -
Indian Government Stocks . . . . . . . . . . . 41

CHAP. 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 . . . . . . . . . . . . . . . 55

CHAP. VIII. - The Stock Exchange - Brokers and Jobbers -
How Business is Done - "Contango" and "Backwarda-
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 . . . . . . . . . . . . . 79

CHAP. IX. - Life Insurance - Its Advantages - Mutual and
Joint Stock Companies - Choice of Office - Form of Pro-
posal - Examination - Premiums, how Payable - Examples
of Advantage - Various Modes of Insuring - Bonuses -
How Applied - Endowment Insurance - Non-profitable
Policies - Settlement Policies - Endowment of Children -
Insurance of Joint Lives - Insurance on Longest of Two
Lives - Surrenders - Fire Insurance - Farm Stock - Other
Insurances . . . . . . . . . . . . . . . . . . 101

CHAP. 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 Profits are made - The
Weak Points of Societies Badly Conducted - What Leads
to Collapse - Necessity for Choosing Directors of Standing
and Character - Necessity for Efficient Audit of Ac-
counts . . . . . . . . . . . . . . . . . . . . 122

CHAP. XI. - The Post Office 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 Office Offers . . . . . . . . . 134

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 . . . . . . . . . . . . . 148

EVERYBODY'S GUIDE
TO
MONEY MATTERS.

CHAPTER I.
EASY STEPS TO MONEY MATTERS.

MONEY is the medium by which we may acquire
from others, who are willing to part with them,
such things as we may desire. The price of an
article is the value set upon it by the possessor,
as represented by an expressed sum in money.

The price of some things are arbitrarily fixed
by law or custom, such as stamps, professional
fees, duties, &c.

The standard of value in this country is gold,
and it is as against gold, represented by coins
of different denominations, that the value of all
commodities is estimated.

The authorised coins of the United Kingdom
consist 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 five-shilling piece, equal to one-
fourth of a sovereign.
Double-fiorin, or four-shilling piece, equal to
one-fifth 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 a
sovereign.
Sixpenny piece, one-half of a shilling.
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 the
expression takes the form of "pounds, shillings,
and pence"; for example, Twenty-one pounds
five shillings and nine pence. Sometimes the
word "sterling" is added, meaning genuine or
standard coin of the realm. In accounts the
figures are placed in three parallel columns
under the heading of s. d. "" for pounds,
"s." for shillings, and "d." for pence, from
_Libri_, _solidi_, and _denarii_, the Latin equivalents
for these values.

|| | | |
|| | s. | d. |
|| 21 | 5 | 9 |
|| | | |

Another form of money, if it may be so
termed, is the Bank note. This is simply a
promise 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 there
are others of different denominations, such as
10, 20, 50, 100, &c. Some country banks
still issue these notes, but they are by law
restricted from issuing beyond a certain amount
fixed by the Bank Act of 1844. No new bank
can issue notes, and those which have the privi-
lege are gradually relinquishing it, so that in
course of time there will be only one bank
entitled to issue notes, and that is the Bank of
England.

The notes of country banks, other than the
Bank of England, are not a legal tender; that
is, it is not compulsory on anyone to accept
them in payment of a debt.

The Bank of England is the oldest joint-stock
bank in the country, and although, in its consti-
tution, it does not differ materially from other
joint-stock banks, yet, being the agent of the
British Government in all money matters, and
possessing other exclusive privileges, it is looked
upon as one of the enduring institutions of the
country.* (* See Joint-Stock Banks, p. 68.)

Amongst other privileges it enjoys is the
authority to issue promissory notes to a certain
extent, representing respectively sums of 5,
10, 20, 50, 100, 200, 500, and 1,000.

These Bank of England notes, as they are
termed, are absolutely convertible, that is to say,
the bank is legally bound to exchange them for
gold at all times when demanded; and a cer-
tain amount of gold has always, by law, to be
kept in stock for the purpose. Moreover, the
tender of Bank of England notes, the same as
with gold, in payment of a debt, cannot, in this
country, 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 bound
in strict law to pay him that exact sum. You
cannot offer him a five-pound note and insist
upon his giving you 5s. change, though, as a
matter of courtesy and convenience, payments
are constantly accepted in that form.

It must be obvious that these Bank of Eng-
land notes are a great convenience, and even a
necessity to the public, as it would be quite
impossible to carry on the enormous business of
the country if such a cumbersome medium as
gold coins was the only legal way of paying
debt. Nevertheless, gold coin of proper weight
is a legal tender to any amount. Silver is not
a legal tender for sums over two pounds, nor
bronze for sums over one shilling.

But even with bank-notes the requirements
of business are not fully satisfied, as there is
always the risk of their being lost or stolen. To
avoid this risk, and to provide facilities for
buying and selling, with the complications inci-
dent thereto, and the passing of money from
one hand to another, an intermediary agency is
required, and that agency is to be found in the
banking companies. In nearly every town,
having a pretence to the name, in the United
Kingdom, will be found a branch bank of some
establishment of more or less repute, and those
who are fortunate enough to possess money will
do well to take advantage of such an agency
for their money matters, having, of course, first
ascertained that the standing of the company is
such that they may do so with safety and confi-
dence.

As a first step we give an example of what is
occurring daily in hundreds of cases.

Miss Jane Smith is a lady who has been
brought up without the slightest instruction in
business matters, indeed has rather plumed her-
self on the idea of being quite above such things.
Suddenly she finds herself dependent upon others
for guidance and advice. She would like to act
for herself if she only knew how to do so safely,
being of a somewhat suspicious temperament and
mistrustful of advice from friends or acquaint-
ances. Even the highly respectable lawyer,
who has handed her a packet of documents
and 500 in cash (a legacy from her uncle), with
much sage counsel, she is not quite sure about,
for she has imbibed the idea from her youth that
lawyers are not always to be trusted.

The packet of documents in the tin box as
they came to her is set aside in a safe place for
the moment, but the bank-notes and gold are a
matter of serious concern to her. She fears to
carry them about her person lest she should
lose them, or be robbed, and feels sure that if
kept in the house they will attract any burglars
that may be in the neighbourhood.

The best thing Miss Smith can do is to go to
one of the neighbouring banks of repute - say
the Blankshire Bank - and ask them to help her
out of the difficulty.

She has an interview with the Manager or
Cashier, tells her story, and is advised to leave
the money at the bank and have an account
opened in her name. This course she consents
to adopt, and hands over the 500, requesting
some acknowledgment that she has done so, in
common terms, "something to show for it."

Many banks provide and require their cus-
tomers to use "paying-in slips," that is, printed
forms specifying the payments made to the bank
under the head of cheques, notes, gold, and
silver. A form is handed in with each payment,
and the initials of the cashier placed against the
amount 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 book
passing between the bank and herself, now
become a customer - in which she will find it
stated in the briefest business manner, that the
Blankshire Bank is Dr. (debtor) to, or owes,
Miss Jane Smith 500. She will be told that
portions of this money may be drawn out from
time to time as she may need it, but this can
only be done by cheques, or forms of request to
the bank to pay out the amount desired.* These
forms, provided by the bank, are printed, blank
spaces being left to be filled up in writing, and
they are made up in books of various sizes, each
form bearing a penny stamp. The customer
pays for the book according to the number of
stamps it contains, but no more. Miss Smith
buys a cheque-book, and, opening it, finds the
following form in print:-

(* The practice with some people of writing cheques
on plain paper is discountenanced by bankers, and
is to be condemned.)

---------------------------------------------------------
| No. 10901. | No. 10901. __________ 189 |
| | |
| _________189 | To the Blankshire Banking Company, |
| | Blanktown. |
| | |
| _____________ | Pay to ____________________ or bearer |
| | |
| | the sum of __________________________ |
| | |
| ____________ | ___________ ______________ |
| | |
---------------------------------------------------------

She then recollects that she has no money to
go on with, and asks to have 10 of the 500
she has left in the bank. The cashier offers to
fill up the blank spaces in her first cheque,
making corresponding entries in the counterfoil,
and having done so asks her to sign it at the
foot.

It then appears as follows:-

---------------------------------------------------------
| No. 10901. | No. 10901. __March_I,_ 1898 |
| | |
| March I, 1898 | To the Blankshire Banking Company, |
| | Blanktown. |
| | |
| ____Self_____ | Pay to ___Self_____________ or bearer |
| | |
| | the sum of ___Ten_Pounds_____________ |
| | |
| 10__________ | 10_________ __Jane_Smith__ |
| | |
---------------------------------------------------------

The cheque is detached from the counterfoil
at the dotted line, and is retained by the cashier,
who hands over 10 to the lady together with
the book containing the remaining cheques.

"Oh! I had quite forgotten - I owe Miss
Tucker, the milliner, 23 10s. Will the cashier
please to let me have 23 10s. to pay her
with."

Miss Smith is told that there is no need of
incurring the risk of carrying the money through
the streets, as a cheque in favour of Miss Tucker
will equally answer the purpose; and again he
fills up the blank spaces in a second cheque,
which appears thus:-

---------------------------------------------------------
| No. 10902. | No. 10902. ! ! __March_I,_ 1898 |
| | ! ! |
| March I, 1898 | To the Blank!hir! Banking Company, |
| | !Bla!ktown. |
| | ! ! order J.S. |
| _Miss_Tucker_ | Pay to ___Miss_Tucker______ or ====== |
| | ! ! |
| | the sum of _Twenty-three_pounds_10/-_ |
| | ! ! |
| 23_10/-_____ | 23_10/-____! ! __Jane_Smith__ |
| | ! ! |
---------------------------------------------------------

"You see," says the cashier, "I have struck
out the word 'bearer' and substituted the word
'order.' This will oblige Miss Tucker to sign
her name on the back of the cheque (technically,
to 'endorse it') before it can be paid. Your
initials are required to confirm the alteration.*
I have also drawn parallel lines across the
cheque, which makes it what is termed 'a
crossed cheque,' and a crossed cheque cannot
be cashed direct, but must be paid into an
account at a bank. So you see you will have
the signature of Miss Tucker, proving that she
has been paid her bill by means of this cheque;
and it is obvious that by crossing the cheque,
should it be lost and made an improper use of,
there would be no difficulty in tracing through
whose hands it passed."

(* Banks also issue cheques with the word "order"
printed instead of "bearer.")

Miss Smith soon learns that all her trades-
men's bills may be paid in the same way, with-
out going to the bank to draw the money, and
with the advantage that the cheque is not only a
proof of payment, but that she has also a record
of her accounts in the bank pass-book.

It may here be mentioned that should a banker
cash a cheque with a forged _endorsement_, he is
not responsible, and the loss falls on the drawer
of the cheque.* The crossing of a cheque, how-
ever, necessitating its being paid to a bank
account, would facilitate the discovery of the
culprit. An additional security is given to a
crossed cheque if it bears the words "not nego-
tiable" written underneath the crossing. This
means that it cannot legally be used as a means
of payment to a third party. In the event of
such a cheque going wrong, the loss would fall
upon a bank negotiating it for a customer. The
bank could be called upon to make good the
amount to the payee.

(* If, however, he pays a cheque with a forged
signature he is responsible, as he is supposed
to know the handwriting of his own customer.)

It is illegal to post-date a cheque, the reason
being that bills of exchange, which are obliga-
tions to pay money at a future date, bear a
much higher stamp duty than cheques. It
would, therefore, be a fraud upon the revenue to
make cheques do duty for bills of exchange.

CHAPTER II.
THE BANK ACCOUNT.

THE manner in which Miss Smith had left her
money on what is termed a current account at the
Bank is convenient to herself and profitable to
the Blankshire Bank, for they have the use of it
free, paying nothing for that use in the way of
interest.

She will have other money coming to her in
the shape of rents, and the interest on money
invested, as represented in those documents in
the tin box - all which money can be handed
over to the Bank in the same way that the 500
was. There is, however, no reason why she
should leave so much lying idle without obtaining
any interest upon it. She will reckon up how
much she will require for, say, the next six
months, for house expenses and personal use,
and also how much, on the other hand, she will
be paid in rents or interest, and will then find
that there will be a sum of; at least, say, 300
over and above all she desires to spend.

If she is wise, she will draw out this sum by
cheque from her current account and have it
placed on a deposit account. In this case the
bank will give her a deposit receipt or interest
note, somewhat in this form:-

---------------------------------------------------------
| No. 23975 26th June, 1897. |
| |
| Blankshire Bank, Blanktown. |
| |
| RECEIVED from Miss Jane Smith the sum of Three |
| Hundred Pounds, to be accounted for with interest at |
| 2.5 per cent per annum, on 14 days' notice of |
| withdrawl. |
| |
| Entered - J. Hill T. Dale, Manager. |
| |
---------------------------------------------------------
(and, written across the receipt "Not transferable")

If the money is at any time wanted in a hurry,
banks do not insist upon notice being given to
withdraw, but deduct the days of notice from the
time the interest note has run. For instance, if
the money has been deposited for 184 days, the
14 days of notice will be deducted and interest
allowed on 170 days only. These receipts or
notes are not transferable, and the repayment of
the principal or the interest must be applied for
by the owner either personally or by letter.

Money may be deposited in a bank in two
names and be repayable to both conjointly,
by either separately, or to the survivor of the
two. The bank will require a form to be signed
by both parties, specifying the manner in which
it is desired that the money may be deposited.
By giving directions, too, the principal may be
retained in the name of one person and the
interest paid to another. Some banks adopt the
plan of book deposits, that is, the amount paid
in is entered in a pass-book, and the interest
credited half yearly. This may go on accumu-
lating, or it can be drawn out in one sum only,
not as in the case of a current account by
cheques of various amounts.

Having thus established relations between
Miss Smith and her bankers, let us see at the
end, say, of a month, the state of her pass-book,
premising that in the meantime she has received
and paid into the bank some moneys, and also
signed and sent cheques to some of her trades-
men:-

--------------------------------------------------------------------------------
| || |
| THE BLANKSHIRE BANK. || BLANKTOWN, |
| || |
| Dr. to Miss Jane Smith. || of Blanktown. Cr. |
| || |
|--------------------------------------||--------------------------------------|
|1897| | | |s.|d.||1897| | | |s.|d.|
|June|24| To Cash . . |500| 0| 0||June|24| By Self . . | 10| 0| 0|
| | | | | | || | | | | | |
|July| 8| " Dividend Consols| 11| 4| 6|| " | "| " Tucker . . | 23|10| 0|
| | | | | | || | | | | | |
| " |23| " Rent from Cook | 24|10| 0|| " |26| " Deposit receipt |300| 0| 0|
| | | | | | || | | | | | |
| " |25| " G.W.R. dividend | 30| 0| 0||July| 1| " Figges . . | 8| 3| 4|
| | | | | | || | | | | | |
| | | | | | || " | 3| " Jones . . | 5|10| 0|
| | | | | | || | | | | | |
| | | | | | || " |24| " Self . . | 10| 0| 0|
| | | | | | || | | | | | |
| | | Total 565 14s. 6d.| | | || | | Total 357 3s. 4d. | | | |
| | | | | | || | | | | | |
--------------------------------------------------------------------------------

By the entries in the pass-book it will be per-
ceived that 565 14s. 6d. has been paid into the
bank, as appears on the left-hand page, and that
357 3s. 4d. has been drawn out, as appears on
the right-hand page. The balance or difference
between the two, amounting to 208 11s. 2d.,
remains to the credit of Miss Smith.

In this comfortable state of things we will
leave Miss Smith, who can now claim to consult
her banker in matters of business.

He will be able to offer her facilities in various
ways. He will hold for her, in safe custody, any
deeds or securities; and whilst she is absent
from home will take charge of her plate or valu-
ables, free of all expense. If she is travelling
about the country he will arrange so that her
cheques on the Blankshire Bank may be cashed
at any other bank in the kingdom. If she has
occasion for it he will send money on her account
to some other person's credit at any bank in the
kingdom or the civilised world. If she desires
to travel abroad, he will obtain a passport for
her and provide her with "circular notes," which
may be turned into money at any place she is
likely to visit.

He will buy and sell stocks, shares, annuities,
&c., for her, and collect dividends, interest,
coupons, &c., payable anywhere at home or
abroad. He will cheerfully advise her on all
matters connected with money, and it will be
quite the exception if she does not, in all things,
find him a safe and prudent counsellor.

As a rule, no charge is made by a bank for
keeping an account, provided the balance, that
is, the amount of money they hold for the cus-
tomer - technically the credit balance - is not
persistently small. If it were always under 50
that would be considered small, but if only occa-
sionally below that figure, and sometimes above
200 for any time, it would generally be exempt
from charge. When a charge is made for keeping
an account which is not remunerative or free
from trouble, it does not amount to much, and is
fairly earned.

If an advance of money is required for a tem-
porary purpose, the bank will often lend the
money by allowing the account to be overdrawn,
that is, the balance in the pass-book will appear
as due _to_ the bank instead of _from_ the bank for
the sum required from time to time. This is
sometimes convenient when the advance is only
required for a short time as avoiding the necessity
for disturbing any investment which otherwise
would have to be sold. As a rule, however
(though exceptions are made where the customer
is absolutely to be depended upon), the bank
would desire some security to be deposited.
This may take the form of a sufficient portion in
value of stocks or shares in which the customer
has invested, or sometimes the personal guar-
antee of one or two responsible persons is
accepted. This is quite regular business, and
the interest usually charged is fair and reason-
able.

CHAPTER III.
LONDON BANKS AND BANKING.

THE private banks now doing business in
London are few in number. The tendency of
late years has been to transform these banks
into "Limited Liability" Companies, or to amal-
gamate with companies of this character. It
looks as though, in course of time, private banks
will altogether cease to exist, the joint-stock
banks being better adapted to modern require-
ments. The private banks do not invite deposit,
and interest on accounts is not allowed. They look
to the average balance on each account to
compensate for the trouble and expense of
keeping it, with a considerable margin for profit.
They require that not less than a certain fixed
sum shall be the minimum balance of a
customer's account, but, of course, the larger
the balance the better for the banker.

The balance in some cases may be very large
where the bank has a wealthy connection, it
being a boast with some rich persons that they
have never less than 10,000, or even 20,000
at their bankers. The money so left in the
banker's hands is lent out, or invested in various
ways, and all that he receives in the shape of
interest, after paying the expenses of his estab-
lishment, is clear profit. In short, the 500 a
year which the customer might obtain if he in-
vested the 20,000 he leaves at the bank, goes
to the banker.

At the head of the joint-stock banks of London
is the Bank of England, which, like the private
banks, do not take deposits upon which interest
is allowed, but rely upon the cash at their dis-
posal in their customers' accounts for their
profits. In all other respects their mode of
transacting business is much the same as that
of other joint-stock banks. Accounts may be
opened by merchants and traders, and by private
individuals of known respectability, and no par-
ticular sum is required to be lodged upon open-
ing the account. Formerly cheques were not
allowed to be drawn for a less sum than 10,
but now there is no restriction as to the amount.
The profits of the bank are chiefly made by dis-
counting bills of exchange, which is done to an
enormous extent. A bill of exchange is an in-
strument by which a party who is owed money
by another party, and accords to him the benefit
of delay in payment, for a fixed period, draws
on him in a form of order to that effect.

For instance, the firm of Bullion & Co. have
sold to John Robinson certain goods, which
need not be specified, as the principle applies
in all cases, whether it be bankers, merchants,
or traders, and for all transactions where one
party is indebted to another. The form drawn
by Bullion & Co. on John Robinson, which
requires to be stamped according to the amount,
would be as follows:-

---------------------------------------------------------
| Due 1st Nov. |
| ------------ |
| 500 London, 29th Aug., 1987. |
| |
| THREE months after date pay to our order the sum of |
| Five Hundred Pounds for value received. |
| |
| To Mr. John Robinson, Bullion & Co. |
| Merchant, |
| Liverpool. |
| |
---------------------------------------------------------
(Written across:
Accepted payable
at the Bank of
London.
J. Robinson. )

The acceptance of the obligation by John
Robinson is written across the face of the docu-
ment, and he makes it payable, as most bills
are for convenience, at a London bank, pre-
sumably the London agent of his own bankers
at Liverpool. Payment becomes due three
months after date, with three days of grace
added according to custom. Probably Bullion
& Co. would find this 500, if in cash, useful
in their business, and supposing the parties to
be of good repute, they can readily convert it
by discounting this bill at their bankers or at
a bill broker, who, deducting a small amount
in the shape of discount, will hand over the
balance to the firm, or carry it to the credit of
his account. It is this discount that constitutes
the profit to the banker, and the rate varies
according to the value of money, whether it is
plentiful or scarce.

The rate of discount is supposed to be regu-
lated by the Bank of England, and the "bank
rate," which is arbitrarily fixed by the directors,
is moved up and down (sometimes for other
reasons than the value of money), and is sup-
posed to be the rate of discount for bills of the best
description. It is found in practice, however,
that when there is an abundance of money seek-
ing employment, bills are discounted at lower
rates.

The Bank of England make purchases and
sales of British or Foreign securities, and divi-
dends on stocks will be received and placed to
account. Exchequer bills, bonds, railway deben-
tures, or any other securities may be deposited,
and the interest, when payable, will be received
and placed to a customer's account free of
charge. Cash boxes (contents unknown), plate
chests, and deed and security boxes are also
received for customers for safety, free of charge,
and all other banking facilities conceded, as are
given by the Blankshire Bank.

The other joint-stock banks of London trans-
act their business in all respects in the same
manner as the Bank of England. In addition
they invite money on deposit, allowing interest
on the same. Sums of money lodged on deposit,
and they may be by persons who are not other-
wise customers, are not carried to a customer's
account, but, as in the case of the Blankshire
Bank, are placed on a special form of receipt
which is changed for a new one when the in-
terest or any part of the principal is withdrawn.
The rate of interest allowed by the Blankshire
Bank, and by the country banks generally, is a
fixed one, but that of the London banks is
regulated by the value of money, and fluctuates
from time to time, notice being given by adver-
tisement in the London newspapers of any
change in the rate. Deposits are received by
the London bankers "at call," that is, payment
may be required on demand; or at an arranged
term of notice of repayment. The rate of in-
terest on money at call is less than where
notice is required, and the longer the period of
notice the higher the rate of interest.

In Scotland there are no private banks, and in
Ireland only two. The joint-stock banks are
numerous, and their mode of business is practi-
cally the same as in England, indeed the
English system is founded on that practised by
the Scotch many years before the joint-stock
bank was general in England.

CHAPTER IV.
INVESTMENTS.

GOING back to the parcel of securities which
Miss Smith received from her lawyer, we will
presume that they represent safe investments of
various kinds. It will be prudent, however, to
ask her banker to examine them to see if any,
in his judgment, might be sold with advantage
(either on account of doubtful character or ex-
ceptionally high price), and the money invested
elsewhere. This business the bank will transact
for her; and in the matter of investment, in
addition to using her own common sense as to
the nature of the securities in which she should
place her money, she should seek the advice
of her banker, and rely very much upon his
opinion.

The undertakings in which the public are in-
vited to invest their money are so numerous,
and the prospects of success so speciously
asserted, in good and bad alike, that it is necessary
to be extremely cautious in accepting any state-
ments of the kind without rigid examination and
proof of their being true and genuine. Other-
wise the investment or purchase becomes a
speculation, and, more than likely, will only end
in disaster.

The term "securities" applies both to the
concerns in which investments are made and to
the deeds and documents which represent the
investments. Thus a mortgage or a mortgage
deed is a "security." The Government Funds,
stocks and shares in all companies, bonds,
foreign and otherwise, Corporation Stocks, &c.,
are all termed "securities." A convertible se-
curity is one which may be sold in the open
market, there being no restriction upon the
persons who may hold it.

We will now endeavour to put before the
reader some account of the various "securities"
in which the public invest their money accord-
ing to individual choice, and which (with the
exception of mortgage on real property-land
or houses) may be bought and sold in the stock-
market through the agency of a banker or
broker. Quotations of the market price of these
securities may be found in the Stock Exchange
list, which is published daily, and can be seen
at most bankers' offices. Many of them are
also quoted in the daily newspapers.

MORTGAGES.

To invest money upon mortgage is to lend it
to a person who has house or landed property,
and desires to borrow money at a certain speci-
fied rate of interest. The title deeds of the
property are deposited with the lender of the
money, together with a mortgage deed, which
describes, in full detail, the terms which may
have been agreed upon.

The interest is usually made payable half-
yearly, and in the event of its payment not
being kept up, or the lender desiring the return
of his money, the principal sum can be called
up, the lender giving six months' notice of his
intention to do so. If the borrower fails to pay,
a process of law has to be instituted, called a
foreclosure suit, which, if successful, transfers
the absolute ownership of the property into the
hands of the lender, so that he can receive the
rents as his own, or, if he pleases, sell the
property under legal authority. In view of such
a contingency the value of the property should
considerably exceed the amount of the money
advanced, so as not only to cover the principal
sum, but also any arrears of interest, together
with law costs and expenses. The usual pro-
portion of an advance on mortgage is two-thirds
of the ascertained value of the property, but
there might be circumstances which would war-
rant some variation in the proportion.

The mortgage deed should be prepared by the
lender's own solicitor, who would see that the
property had a good title and use all the pre-
cautions necessary in transactions of this kind
to guard against fraud and loss; and in many
cases a professional valuation of the property
would be desirable, as a preliminary, before the
advance is entertained at all.

Cases have been known where fraudulent per-
sons have borrowed money on mortgages of
property conveyed to themselves, but as to which
they were trustees only for others. The lenders
or mortgagees have, in such cases, no alternative
but to give up the deeds and submit to the loss
of their money.

Debentures are a form of mortgage applicable
to the raising of money by a corporation or
joint-stock company.

The company mortgages its property for a
certain sum, too large for a single person to
advance, so it is divided up into even amounts
of, say, 100, the money being secured by de-
benture bonds, bearing interest at a fixed rate,
and being saleable in the stock markets.

THE FUNDS.

"What are the Funds?" The writer has been
asked this question over and over again, though
it seems scarcely credible that, in these days,
any person of ordinary intelligence should be
ignorant of the meaning of the term. Unfor-
tunately these things are not usually taught in
our schools.

"The Funds," generally speaking, is the term
applied to the National Debt of Great Britain,
the money borrowed by the Government from
the people, chiefly for the purpose of carrying on
the great wars at the beginning of the present
century. For these loans as much as 5 per cent.
has in former years been paid, but at present 2 3/4
is the rate payable on the great bulk of the debt.

The year after the Battle of Waterloo the
National Debt amounted to nine hundred mil-
lions of money; at the present time it amounts
to about five hundred and seventy millions, and
is steadily diminishing. This being the case,
there is of course no need of further borrowing
at present, but the loans outstanding - any por-
tion of them - may be bought and sold in the
market; that is, any lender may transfer all or
any part of his loan to some other person, and
as there are, daily, hundreds and thousands of
individuals wanting to buy or to sell, there is no
difficulty whatever, through the medium of the
Stock Exchange, in arranging so that a person
can obtain, or dispose of, the exact amount of
stock he desires.

The chief method by which the National
Debt is reduced is described under the head of
Terminable Annuities.

STOCKS AND SHARES.

The stock of an institution or company is a
fixed sum forming the capital upon which the
concern is carried on, or it is the fixed sum bor-
rowed for certain purposes. Any quantity of
stock may be purchased, but shares, which
represent the capital of a company, can only be
purchased in whole numbers.

The nominal or face value of stocks and
shares by no means necessarily represents their
market value; in fact it is the exception that
they should do so. The market price is con-
tinually fluctuating. Thus, if the price of a
given stock is quoted in the lists and news-
papers at 110, it means that for every 100 of
such stock 10 additional has to be paid, and
the stock is said to be at 10 premium. If, on
the other hand, it is quoted at 90, it means that
100 of such stock can be purchased for 90,
and the stock is said to stand at a discount of
10. The interest in either case is of course
calculated on the face value, that is, 100.

This applies to all kinds of stock on the same
principle, the prices varying according to the
esteem in which they are held, or, in other
words, the credit they have with the moneyed
world.

The shares of companies, which are only
purchasable in whole numbers, are of various
denominations, or face values; and again these
face values by no means represent the market
value. Shares of 5 each (nominal value) may
be quoted as selling at 6, which would be 1 pre-
mium, but the dividend or interest would be
calculated on 5. On the other hand, a 5
share quoted at 4 would be 1 discount, but the
dividend or interest would still be calculated on
the face value of 5.

In very many cases the whole of the nominal
value of a share is not called up, _i.e._, is not re-
quired to be immediately paid. Thus a 5 share
may have only 3 paid upon it, leaving a lia-
bility of 2, which the holder may at any time
be called upon to pay, whether convenient or
not. This should always be borne in mind when
purchasing shares of any kind, as the neglect of
this precaution has often involved holders in
serious difficulties, from being called upon to
pay up when least able to do so.

The dividend on shares of this kind is calcu-
lated only on the amount paid up.

DIVIDENDS.

A dividend is the sum apportioned periodi-
cally, in the shape of profit or interest, to holders
of stocks and shares. It may be a fixed sum
according to the rate of interest, as in the case
of the Funds, Colonial Stocks, &c., or a varying
sum according to the profits made, as in the case
of railway shares and those of other companies.
The dividends on the Funds and some Colonial
Stocks are paid quarterly, at the beginning of
January, April, July, and October. A month
prior to the date of payment the stocks are
marked "ex-div.," meaning that any purchase
effected after the 1st December, 1st March, 1st
June, and 1st September, would not carry that
quarter's dividend, as it is held in favour of the
person whose name is registered on the books
on those dates.

The interest dependent upon the shares or
stocks of companies is usually paid half-yearly,
after the periodical meeting, when the accounts
are presented and the profits declared. A cer-
tain date is fixed when these shares and stocks
are saleable "ex-div." or "ex-interest."

CHAPTER V.
BRITISH GOVERNMENT FUNDS.

THE safest of all investments are those repre-
sented by the National Debt of this country, but
the rate of interest or annual income derivable
therefrom is small. The debt is nominally
divided into three parts:- The Funded Debt, the
Unfunded Debt, Terminable Annuities.

The Funded Debt (1) is permanent; it is repre-
sented by Consols yielding interest at the rate
of 2 1/2 per cent. per annum, or 2 10s. a year for
every 100 of stock. The Government is not
under obligation to redeem the principal at any
fixed time, but power is reserved to pay off the
loan at _par_ (that is at the rate of 100 for every
100 stock, irrespective of its then selling value)
in the year 1905. Another debt of compara-
tively small amount, bearing interest at 2 3/4 per
cent. per annum, may also be paid off at _par_
in 1905.

The great bulk of the National Debt, amount-
ing to over five hundred millions sterling, is,
represented by what, in Stock Exchange _par-
lance_, is known as Goschen's Consols, so called
from the Chancellor of the Exchequer of that
name, to whom is due the conversion of the old
"three per cents.," in the year 1888.

This stock bears interest at the rate of 2 3/4
per cent. per annum until the year 1903; from
that date it is to be reduced to 2 1/2 per cent. until
1923, when the principal may be paid off at _par_.

There is yet another fixed debt of about forty
millions sterling called "Local Loans Stock,"
being money borrowed by the Government for the
purpose of making advances to Corporations for
local works. This stock may be redeemed at
_par_ in 1912.

The Unfunded Debt (2) consists of loans to
the Government for temporary purposes. These
loans are for various periods varying from seven
days to as many years. They are represented
by Exchequer Bills, Exchequer Bonds and Trea-
sury Bills, which bear interest, according to the
value of money at the time they are issued, from
day to day. Due notice is given when a loan is
to be paid off or renewed, and interest ceases on
the day named for redemption.

TERMINABLE ANNUITIES.

Terminable Annuities (3) may be regarded as
a "Sinking Fund," or means by which a con-
siderable portion of the National Debt is paid
off every year and "The Funds" proportionately
reduced.

Thus the Government is empowered to give
an annuity for a certain number of years in ex-
change for permanent stock in the Funds. For
instance, a holder of 1,000 2 3/4 per cent. stock is
receiving 27 10s. a year in the shape of interest.
The Government offers to pay double the amount
of interest or 55, if the 1,000 stock is trans-
ferred to them, and to continue this 55 a year
for twenty years and no longer.

At the expiration of that period the interest
ceases and the principal sum of 1,000 is struck
off the National Debt, which is in consequence
reduced by that sum.

LOANS - THE INTEREST ON WHICH IS GUARAN-
TEED BY THE BRITISH GOVERNMENT.

These consist of loans to the Government of
Canada for railway purposes, upon which 4 per
cent. per annum is guaranteed. Also loans to
the Colonies of Jamaica at 4 per cent. and Mauri-
tius at 3 per cent., to the Egyptian Government
at 3 per cent. and to the Turkish Government at
4 per cent.; in this latter case the French
Government joins in the guarantee.

These are all perfectly safe investments, so far
as the interest or income derived is concerned,
but there appears to be no arrangement for the
redemption of the loans.

The large loans to the Government of India at
3 1/2 and 3 per cent., repayable in 1931 and 1948,
are guaranteed by the Secretary of State for
India, practically the British Government.

Any amount may be invested in the above
stocks and annuities through the medium of
either a banker through his broker, or by a
broker direct. The broker's charge for trans-
acting in Consols is 25. 6d. (1/8) per cent. on the
amount invested, but provincial bankers make a
further small charge for guaranteeing the busi-
ness, that is, they protect their customer from
any loss that may arise owing to the failure of
the broker to carry out the contract.

The dividends, interest, or annuity derivable
from these investments, may be received by
personal application of the holder at the Bank
of England on certain fixed days, or on signing
a printed form furnished on application by the
Bank of England, per post, they will send from
time to time without further notice a warrant or
order for the amount due, which warrant or order
may be paid into a bank account, or, on a proper
introduction, cashed at any bank or post office.
The simplest plan, however, may be to give your
banker a Power of Attorney to receive the divi-
dends from time to time and place the amount
to the credit of your account.

Income tax is deducted from all dividends;
but if a person is not liable to such tax, by
reason of the total income coming within the
Exemption Clause, the amount can be recovered
through a surveyor of taxes, as to which the
banker would give all the information required (*).

(*) Such information may also be found in detail in a little handy
book, "Income Tax, and how to get it Refunded." 1s. 6d. Pub-
lished by Messrs. Effingham, Wilson & Co.

The stock of the Bank of England, which may
be purchased in any amount, the same as
Consols, is a favourite investment with some,
but the price is so high that the income to be
derived therefrom is no more, and sometimes
even less, than from the Funds.

AUTOMATIC RE-INVESTMENT OF DIVIDENDS.

Holders of stock in the Funds who are not
desirous of receiving their dividends, but prefer
to have them added half-yearly to the capital
sum without further action on their part, are
granted facilities by which this may be done
automatically, on application to the Bank of
England. The instructions apply to amounts of
stock of less than 1,000 only. These facilities
are also extended to holders of Metropolitan
Consolidated Stocks, and to the India 3 per
cent. and 3 1/2 per cent. stocks.

CHAPTER VI.
GOVERNMENT ANNUITIES.

THE Commissioners for the Reduction of the
National Debt, under the authority of Parlia-
ment, grant annuities either on single lives, or
on two lives and the life of the survivor, or on
the joint continuance of two lives, such annui-
ties to commence immediately. In the case of
single lives, the annuity _may_ be made to com-
mence at a future period, and the consideration
for it may be paid by the purchaser annually in
sums of money not less than 5, but in case of
default in keeping up the annual instalments,
all the annual payments previously made are
forfeited, and all right to the annuity is ex-
tinguished.

Payment for an annuity is made by the
transfer of 2 1/2 per cent. Consols, or money of equi-
valent value, at the price of the stock on the day
of the transaction.

The tables (see p.44) show the annuity which
100 of 2 1/2 per cent. stock will purchase, to con-
tinue during the life of a nominee at the re-
spective ages and according to the prices of 2 1/2
per cent. stock therein stated. It will be seen
that in the case of money being paid for the
purchase of the annuity, the higher the price of
Consols the dearer will be the purchase. Thus,
a female buying an annuity at the age of fifty,
amounting to 5 19s. 8d. per annum, and Consols
being at _par_, or 100, would, if she paid for it
_in money_, have to expend 100. But suppose
Consols to be at 108 (as they are at present) she
would have to pay 108 for the same annuity.

Tables relating to annuities on joint lives and
to deferred annuities may be obtained at the
National Debt Office, 19, Old Jewry, London, by
application direct, or through a bank.

No person under the age of fifteen can be ap-
pointed the nominee for any life annuity.

Life annuities are payable quarterly at the
National Debt Office, in the form of a warrant
on the Bank of England, either on personal
demand, or through a bank by Power of Attor-
ney; or they can be transmitted to the pro-
prietor by post. The fixed dates are the fifth of
January, the fifth of April, the fifth of July, and
the fifth of October in each year.

The first quarterly payment of annuities will
become due as follows, namely: On annuities
purchased between the first of December and
the last day of February, on the fifth of April
next following the day of purchase.

Between the first of March and the last day of
May, on the fifth of July next following.

Between the first of June and the last day of
August, on the fifth of October next following.

Between the first of September and the last
day of November, on the fifth of January next
following.

No sum less than 100 of stock or money can
be received in the first instance, but it may be
added to subsequently in sums of not less than
20.

Upon the expiration of any life annuity a
sum equal to one-fourth of the annuity (over and
above all quarterly arrears thereof) will be paid
to the representatives of the annuitant, if
claimed within two years after such expiration.

Very heavy penalties attach to persons
making false statements or declarations in
respect of the purchase of an annuity.

Per Acts 10 Geo. IV., cap. 24, and 51 and 52 Vic. cap 15.
-------------------------
TABLE showing the ANNUITY, continuing during the _Life_ of any person of the following Ages,
which 100 STOCK in the 2 1/2 PER CENT. BANK ANNUITIES will purchase.

---------------------------------------------------------------------------------------------
| || When the price of || When the price of || When the price of || |
| || 100 of 2 1/2 per || 100 of 2 1/2 per || 100 of 2 1/2 per || |
| Age || cent. Stock exclusive || cent. Stock exclusive || cent. Stock exclusive || Age |
|of the || of accrued dividend || of accrued dividend || of accrued dividend ||of the |
|Nominee|| lies between || lies between || lies between ||Nominee|
| ||94 15 9 and 95 13 11.||95 13 11 and 96 12 5.||96 12 5 and 97 11 3. || |
| ||-----------------------||-----------------------||-----------------------|| |
| || Male. | Female. || Male. | Female. || Male. | Female. || |
|-------||-----------|-----------||-----------|-----------||-----------|-----------||-------|
| || s. d. | s. d. || s. d. | s. d. || s. d. | s. d. || |
| 15 || 4 1 2 | 3 15 3 || 4 1 7 | 3 15 7 || 4 2 0 | 3 15 11 || 15 |
| 16 || 4 1 10 | 3 15 9 || 4 2 3 | 3 16 1 || 4 2 8 | 3 16 6 || 16 |
| 17 || 4 2 7 | 3 16 4 || 4 3 0 | 3 16 8 || 4 3 5 | 3 17 1 || 17 |
| 18 || 4 3 4 | 3 16 11 || 4 3 9 | 3 17 3 || 4 4 3 | 3 17 8 || 18 |
| 19 || 4 4 2 | 3 17 6 || 4 4 7 | 3 17 11 || 4 5 0 | 3 18 3 || 19 |
| 20 || 4 4 11 | 3 18 2 || 4 5 5 | 3 18 6 || 4 5 10 | 3 18 11 || 20 |
| 21 || 4 5 9 | 3 18 9 || 4 6 2 | 3 19 2 || 4 6 8 | 3 19 7 || 21 |
| 22 || 4 6 7 | 3 19 5 || 4 7 1 | 3 19 10 || 4 7 6 | 4 0 3 || 22 |
| 23 || 4 7 6 | 4 0 1 || 4 7 11 | 4 0 6 || 4 8 5 | 4 0 11 || 23 |
| 24 || 4 8 4 | 4 0 10 || 4 8 10 | 4 1 3 || 4 9 4 | 4 1 8 || 24 |
| 25 || 4 9 3 | 4 1 6 || 4 9 9 | 4 2 0 || 4 10 3 | 4 2 5 || 25 |
| 26 || 4 10 3 | 4 2 4 || 4 10 9 | 4 2 9 || 4 11 3 | 4 3 2 || 26 |
| 27 || 4 11 3 | 4 3 1 || 4 11 9 | 4 3 6 || 4 12 3 | 4 4 0 || 27 |
| 28 || 4 12 3 | 4 3 11 || 4 12 9 | 4 4 4 || 4 13 3 | 4 4 10 || 28 |
| 29 || 4 13 3 | 4 4 9 || 4 13 10 | 4 5 2 || 4 14 4 | 4 5 8 || 29 |
| 30 || 4 14 4 | 4 5 7 || 4 14 11 | 4 6 1 || 4 15 5 | 4 6 7 || 30 |
| 31 || 4 15 6 | 4 6 6 || 4 16 0 | 4 7 0 || 4 16 7 | 4 7 6 || 31 |
| 32 || 4 16 7 | 4 7 6 || 4 17 2 | 4 8 0 || 4 17 9 | 4 8 6 || 32 |
| 33 || 4 17 10 | 4 8 6 || 4 18 5 | 4 9 0 || 4 19 0 | 4 9 6 || 33 |
| 34 || 4 19 0 | 4 9 6 || 4 19 7 | 4 10 0 || 5 0 3 | 4 10 6 || 34 |
| 35 || 5 0 4 | 4 10 7 || 5 0 11 | 4 11 1 || 5 1 6 | 4 11 8 || 35 |
| 36 || 5 1 8 | 4 11 9 || 5 2 3 | 4 12 3 || 5 2 11 | 4 12 9 || 36 |
| 37 || 5 3 0 | 4 12 11 || 5 3 8 | 4 13 5 || 5 4 3 | 4 14 0 || 37 |
| 38 || 5 4 5 | 4 14 2 || 5 5 1 | 4 14 8 || 5 5 9 | 4 15 3 || 38 |
| 39 || 5 5 11 | 4 15 5 || 5 6 7 | 4 16 0 || 5 7 3 | 4 16 7 || 39 |
| 40 || 5 7 6 | 4 16 10 || 5 8 2 | 4 17 5 || 5 8 10 | 4 18 0 || 40 |
| 41 || 5 9 1 | 4 18 3 || 5 9 9 | 4 18 10 || 5 10 6 | 4 19 5 || 41 |
| 42 || 5 10 9 | 4 19 9 || 5 11 6 | 5 0 4 || 5 12 2 | 5 1 0 || 42 |
| 43 || 5 12 6 | 5 1 4 || 5 13 3 | 5 2 0 || 5 14 0 | 5 2 7 || 43 |
| 44 || 5 14 5 | 5 3 0 || 5 15 1 | 5 3 8 || 5 15 11 | 5 4 4 || 44 |
| 45 || 5 16 4 | 5 4 10 || 5 17 1 | 5 5 6 || 5 17 10 | 5 6 2 || 45 |
| 46 || 5 18 4 | 5 6 9 || 5 19 1 | 5 7 5 || 5 19 11 | 5 8 2 || 46 |
| 47 || 6 0 6 | 5 8 9 || 6 1 3 | 5 9 6 || 6 2 1 | 5 10 2 || 47 |
| 48 || 6 2 9 | 5 10 11 || 6 3 7 | 5 11 8 || 6 4 5 | 5 12 5 || 48 |
| 49 || 6 5 2 | 5 13 3 || 6 6 0 | 5 14 0 || 6 6 11 | 5 14 9 || 49 |
| 50 || 6 7 8 | 5 15 7 || 6 8 7 | 5 16 5 || 6 9 5 | 5 17 2 || 50 |
| 51 || 6 10 5 | 5 18 1 || 6 11 3 | 5 18 11 || 6 12 2 | 5 19 9 || 51 |
| 52 || 6 13 3 | 6 0 9 || 6 14 2 | 6 1 7 || 6 15 2 | 6 2 5 || 52 |
| 53 || 6 16 4 | 6 3 7 || 6 17 4 | 6 4 5 || 6 18 4 | 6 5 4 || 53 |
| 54 || 6 19 8 | 6 6 7 || 7 0 8 | 6 7 6 || 7 1 8 | 6 8 5 || 54 |
| 55 || 7 3 2 | 6 9 10 || 7 4 3 | 6 10 8 || 7 5 3 | 6 11 8 || 55 |
| 56 || 7 7 0 | 6 13 3 || 7 8 1 | 6 14 2 || 7 9 2 | 6 15 2 || 56 |
| 57 || 7 11 2 | 6 17 0 || 7 12 3 | 6 17 11 || 7 13 5 | 6 18 11 || 57 |
| 58 || 7 15 8 | 7 0 11 || 7 16 10 | 7 1 11 || 7 18 0 | 7 2 11 || 58 |
| 59 || 8 0 7 | 7 5 1 || 8 1 9 | 7 6 2 || 8 3 0 | 7 7 3 || 59 |
| 60 || 8 5 10 | 7 9 6 || 8 7 0 | 7 10 8 || 8 8 4 | 7 11 9 || 60 |
| 61 || 8 11 3 | 7 14 4 || 8 12 7 | 7 15 6 || 8 13 11 | 7 16 8 || 61 |
| 62 || 8 16 11 | 7 19 5 || 8 18 3 | 8 0 7 || 8 19 8 | 8 1 10 || 62 |
| 63 || 9 3 0 | 8 4 10 || 9 4 5 | 8 6 1 || 9 5 10 | 8 7 4 || 63 |
| 64 || 9 9 5 | 8 10 8 || 9 10 11 | 8 12 0 || 9 12 5 | 8 13 4 || 64 |
| 65 || 9 16 3 | 8 17 2 || 9 17 10 | 8 18 6 || 9 19 5 | 8 19 11 || 65 |
| 66 || 10 3 6 | 9 4 1 || 10 5 1 | 9 5 6 || 10 6 8 | 9 7 0 || 66 |
| 67 || 10 11 0 | 9 11 8 || 10 12 8 | 9 13 2 || 10 14 5 | 9 14 8 || 67 |
| 68 || 10 19 0 | 9 19 9 || 11 0 9 | 10 1 4 || 11 2 7 | 10 2 11 || 68 |
| 69 || 11 7 8 | 10 8 4 || 11 9 6 | 10 10 0 || 11 11 4 | 10 11 8 || 69 |
| 70 || 11 17 0 | 10 17 5 || 11 18 11 | 10 19 1 || 12 0 11 | 11 0 11 || 70 |
| 71 || 12 6 11 | 11 6 8 || 12 9 0 | 11 8 6 || 12 11 0 | 11 10 5 || 71 |
| 72 || 12 17 8 | 11 16 5 || 12 19 10 | 11 18 4 || 13 2 0 | 12 0 4 || 72 |
| 73 || 13 9 0 | 12 6 9 || 13 11 3 | 12 8 9 || 13 13 6 | 12 10 10 || 73 |
| 74 || 14 0 9 | 12 17 8 || 14 3 1 | 12 19 10 || 14 5 6 | 13 2 0 || 74 |
| 75 || 14 13 0 | 13 9 4 || 14 15 6 | 13 11 7 || 14 18 0 | 13 13 10 || 75 |
| 76 || 15 6 2 | 14 1 9 || 15 8 9 | 14 4 1 || 15 11 5 | 14 6 6 || 76 |
| 77 || 15 19 8 | 14 15 0 || 16 2 5 | 14 17 6 || 16 5 2 | 15 0 0 || 77 |
| 78 || 16 14 0 | 15 9 0 || 16 16 10 | 15 11 8 || 16 19 9 | 15 14 4 || 78 |
| 79 || 17 9 3 | 16 4 0 || 17 12 3 | 16 6 10 || 17 15 4 | 16 9 7 || 79 |
| 80 || 18 5 4 | 16 19 10 || 18 8 6 | 17 2 9 || 18 11 9 | 17 5 9 || 80 |
---------------------------------------------------------------------------------------------

Per Acts 10 Geo. IV., cap. 24, and 51 and 52 Vic. cap 15.
-------------------------
TABLE showing the ANNUITY, continuing during the _Life_ of any person of the following Ages,
which 100 STOCK in the 2 1/2 PER CENT. BANK ANNUITIES will purchase.

---------------------------------------------------------------------------------------------
| || When the price of || When the price of || When the price of || |
| || 100 of 2 1/2 per || 100 of 2 1/2 per || 100 of 2 1/2 per || |
| Age || cent. Stock exclusive || cent. Stock exclusive || cent. Stock exclusive || Age |
|of the || of accrued dividend || of accrued dividend || of accrued dividend ||of the |
|Nominee|| lies between || lies between || is above ||Nominee|
| ||97 11 3 and 98 10 6. ||98 10 6 and 99 10 1. || 99 10 1. || |
| ||-----------------------||-----------------------||-----------------------|| |
| || Male. | Female. || Male. | Female. || Male. | Female. || |
|-------||-----------|-----------||-----------|-----------||-----------|-----------||-------|
| || s. d. | s. d. || s. d. | s. d. || s. d. | s. d. || |
| 15 || 4 2 5 | 3 16 4 || 4 2 10 | 3 16 8 || 4 3 3 | 3 17 0 || 15 |
| 16 || 4 3 1 | 3 16 10 || 4 3 7 | 3 17 3 || 4 4 0 | 3 17 7 || 16 |
| 17 || 4 3 11 | 3 17 5 || 4 4 4 | 3 17 10 || 4 4 9 | 3 18 3 || 17 |
| 18 || 4 4 8 | 3 18 0 || 4 5 1 | 3 18 5 || 4 5 7 | 3 18 10 || 18 |
| 19 || 4 5 6 | 3 18 8 || 4 5 11 | 3 19 1 || 4 6 5 | 3 19 6 || 19 |
| 20 || 4 6 3 | 3 19 4 || 4 6 9 | 3 19 8 || 4 7 3 | 4 0 1 || 20 |
| 21 || 4 7 2 | 4 0 0 || 4 7 7 | 4 0 5 || 4 8 1 | 4 0 10 || 21 |
| 22 || 4 8 0 | 4 0 8 || 4 8 6 | 4 1 1 || 4 9 0 | 4 1 6 || 22 |
| 23 || 4 8 11 | 4 1 4 || 4 9 5 | 4 1 9 || 4 9 11 | 4 2 3 || 23 |
| 24 || 4 9 10 | 4 2 1 || 4 10 4 | 4 2 6 || 4 10 10 | 4 3 0 || 24 |
| 25 || 4 10 9 | 4 2 10 || 4 11 4 | 4 3 3 || 4 11 10 | 4 3 9 || 25 |
| 26 || 4 11 9 | 4 3 7 || 4 12 3 | 4 4 1 || 4 12 10 | 4 4 6 || 26 |
| 27 || 4 12 9 | 4 4 3 || 4 13 4 | 4 4 11 || 4 13 10 | 4 5 4 || 27 |
| 28 || 4 13 10 | 4 5 3 || 4 14 4 | 4 5 9 || 4 14 11 | 4 6 3 || 28 |
| 29 || 4 14 11 | 4 6 2 || 4 15 6 | 4 6 7 || 4 16 0 | 4 7 1 || 29 |
| 30 || 4 16 0 | 4 7 0 || 4 16 7 | 4 7 6 || 4 17 2 | 4 8 0 || 30 |
| 31 || 4 17 2 | 4 8 0 || 4 17 9 | 4 8 6 || 4 18 4 | 4 9 0 || 31 |
| 32 || 4 18 4 | 4 9 0 || 4 18 11 | 4 9 6 || 4 19 6 | 4 10 0 || 32 |
| 33 || 4 19 7 | 4 10 0 || 5 0 2 | 4 10 6 || 5 0 10 | 4 11 1 || 33 |
| 34 || 5 0 10 | 4 11 1 || 5 1 6 | 4 11 7 || 5 2 1 | 4 12 2 || 34 |
| 35 || 5 2 2 | 4 12 2 || 5 2 10 | 4 12 9 || 5 3 5 | 4 13 4 || 35 |
| 36 || 5 3 6 | 4 13 4 || 5 4 2 | 4 13 11 || 5 4 10 | 4 14 6 || 36 |
| 37 || 5 4 11 | 4 14 7 || 5 5 7 | 4 15 2 || 5 6 4 | 4 15 9 || 37 |
| 38 || 5 6 5 | 4 15 10 || 5 7 1 | 4 16 5 || 5 7 10 | 4 17 0 || 38 |
| 39 || 5 7 11 | 4 17 2 || 5 8 8 | 4 17 9 || 5_19_ 4 | 4 18 5 || 39 |
| 40 || 5 9 6 | 4 18 7 || 5 10 3 | 4 19 2 || 5 11 0 | 4 19 10 || 40 |
| 41 || 5 11 3 | 5 0 1 || 5 11 11 | 5 0 8 || 5 12 8 | 5 1 4 || 41 |
| 42 || 5 12 11 | 5 1 8 || 5 13 8 | 5 2 3 || 5 14 6 | 5 3 0 || 42 |
| 43 || 5 14 9 | 5 3 3 || 5 15 6 | 5 4 0 || 5 16 4 | 5 4 8 || 43 |
| 44 || 5 16 8 | 5 5 0 || 5 17 6 | 5 5 9 || 5 18 3 | 5 6 5 || 44 |
| 45 || 5 18 8 | 5 6 11 || 5_11_ 6 | 5 7 7 || 6 0 4 | 5 8 4 || 45 |
| 46 || 6 0 9 | 5 8 10 || 6 1 7 | 5 9 7 || 6 2 5 | 5 10 4 || 46 |
| 47 || 6 3 0 | 5 10 11 || 6 3 10 | 5 11 8 || 6 4 8 | 5 12 6 || 47 |
| 48 || 6 5 3 | 5 13 2 || 6 6 2 | 5 13 11 || 6 7 1 | 5 14 9 || 48 |
| 49 || 6 7 9 | 5 15 6 || 6 8 8 | 5 16 4 || 6 9 7 | 5 17 1 || 49 |
| 50 || 6 10 4 | 5 18 0 || 6 11 4 | 5 18 10 || 6 12 3 | 5 19 8 || 50 |
| 51 || 6 13 2 | 6 _6_ 6 || 6 14 1 | 6 1 5 || 6 15 1 | 6 2 3 || 51 |
| 52 || 6 16 1 | 6 3 3 || 6 17 1 | 6 4 2 || 6 18 1 | 6 5 0 || 52 |
| 53 || 6 19 4 | 6 6 2 || 7 0 4 | 6 7 1 || 7 1 5 | 6 8 0 || 53 |
| 54 || 7 2 8 | 6 9 4 || 7 3 9 | 6 10 3 || 7 4 10 | 6 11 2 || 54 |
| 55 || 7 6 4 | 6 12 7 || 7 7 5 | 6 13 6 || 7 8 7 | 6 14 6 || 55 |
| 56 || 7 10 3 | 6 16 2 || 7 11 5 | 6 17 2 || 7 12 7 | 6 18 2 || 56 |
| 57 || 7 14 6 | 7 0 0 || 7 15 9 | 7 1 0 || 7 16 11 | 7 2 1 || 57 |
| 58 || 7 19 2 | 7 4 0 || 8 0 5 | 7 5 1 || 8 1 8 | 7 6 2 || 58 |
| 59 || 8 4 3 | 7 8 4 || 8 5 6 | 7 9 6 || 8 6 10 | 7 10 7 || 59 |
| 60 || 8 9 7 | 7 12 11 || 8 10 11 | 7 14 1 || 8 12 4 | 7 15 3 || 60 |
| 61 || 8 15 3 | 7 17 10 || 8 16 7 | 7 19 1 || 8 18 0 | 8 0 4 || 61 |
| 62 || 9 1 0 | 8 3 1 || 9 2 6 | 8 4 4 || 9 4 0 | 8 5 8 || 62 |
| 63 || 9 7 3 | 8 8 8 || 9 8 9 | 8 10 0 || 9 10 4 | 8 11 4 || 63 |
| 64 || 9 13 11 | 8 14 8 || 9 15 6 | 8 16 1 || 9 17 1 | 8 17 6 || 64 |
| 65 || 10 1 0 | 9 1 4 || 10 2 7 | 9 2 9 || 10 4 4 | 9 4 3 || 65 |
| 66 || 10 8 5 | 9 8 6 || 10 10 1 | 9 10 0 || 10 11 10 | 9 11 6 || 66 |
| 67 || 10 16 2 | 9 16 3 || 10 17 11 | 9 17 10 || 10 19 9 | 9 19 6 || 67 |
| 68 || 11 4 5 | 10 4 7 || 11 6 3 | 10 6 3 || 11 8 2 | 10 7 11 || 68 |
| 69 || 11 13 3 | 10 13 5 || 11 15 3 | 10 15 2 || 11 17 2 | 10 17 0 || 69 |
| 70 || 12 2 11 | 11 2 9 || 12 4 11 | 11 4 7 || 12 7 0 | 11 6 6 || 70 |
| 71 || 12 13 2 | 11 12 4 || 12 15 4 | 11 14 3 || 12 17 6 | 11 16 3 || 71 |
| 72 || 13 4 2 | 12 2 4 || 13 6 5 | 12 4 5 || 13 8 9 | 12 6 6 || 72 |
| 73 || 13 15 10 | 12 13 0 || 13 18 2 | 12 15 1 || 14 0 7 | 12 17 4 || 73 |
| 74 || 14 7 11 | 13 4 2 || 14 10 5 | 13 6 5 || 14 13 0 | 13 8 9 || 74 |
| 75 || 15 0 7 | 13 16 2 || 15 3 2 | 13 18 7 || 15 5 10 | 14 1 0 || 75 |
| 76 || 15 14 1 | 14 8 11 || 15 16 10 | 14 11 6 || 15 19 7 | 14 14 0 || 76 |
| 77 || 16 8 0 | 15 2 7 || _17_10 11 | 15 5 3 || 16 13 10 | 15 7 11 || 77 |
| 78 || 17 2 8 | 15 17 0 || 17 5 9 | 15 19 10 || 17 8 10 | 16 2 8 || 78 |
| 79 || 17 18 5 | 16 12 6 || 18 1 8 | 16 15 5 || 18 4 10 | 16 18 5 || 79 |
| 80 || 18 15 0 | 17 8 10 || 18 18 4 | 17 11 11 || 19 1 9 | 17 15 0 || 80 |
---------------------------------------------------------------------------------------------

INSURANCE OFFICE ANNUITIES.

Some of the Insurance Offices grant imme-
diate annuities. Of course, in purchasing a life
annuity from an Insurance Office, it is necessary
to ensure as far as is humanly possible that an
annuity will be paid for life. This not only de-
pends upon the present solvency of the company,
but upon that solvency being maintained. There
is not much difficulty, however, in selecting
from amongst the numerous well-established
companies, with proper advice, one that will
answer every requirement. The following table
shows the amount of an annuity granted by the
undermentioned companies for every 100 paid.
The age last birthday is that upon which the pay-
ment is based, and the initial letters M. and F.
indicate the rates for male and female lives.
The ages quoted range from 50 to 70 years, but
the terms for purchasing an annuity at any age
can be obtained at the Insurance Office.

By a few companies, distinguished thus (!),
the proportionate amount of annuity is payable
to the day of death.

-----------------------------------------------------------------------------------------------------
| | | | | | | | | | | |
| Office | | Age 50 | Age 52 | Age 55 | Age 58 | Age 60 | Age 62 | Age 65 | Age 70 | |
| | | | | | | | | | | |
|-----------------------|-|--------|--------|--------|--------|--------|--------|--------|--------|-|
| | | s. d.| s. d.| s. d.| s. d.| s. d.| s. d.| s. d.| s. d.| |
| | | | | | | | | | | |
|!British Empire Mutual |M| 7 4 6| 7 10 2| 8 0 2| 8 12 10| 9 3 2| 9 14 6|10 14 4|12 16 4|M|
| |F| 6 12 0| 6 17 0| 7 6 2| 7 17 4| 8 6 2| 8 16 2| 9 14 4|11 15 10|F|
| | | | | | | | | | | |
| Caledonian |M| 7 6 2| 7 12 0| 8 2 8| 8 16 0| 9 7 0| 9 19 2|11 0 0|13 5 10|M|
| |F| 6 11 8| 6 17 0| 7 6 2| 7 17 11| 8 7 0| 8 15 7| 9 13 10|11 14 11|F|
| | | | | | | | | | | |
| City of Glasgow |M| 7 5 6| 7 11 6| 8 2 0| 8 15 6| 9 6 6| 9 18 6|10 19 0|13 4 6|M|
| |F| 6 12 6| 6 17 6| 7 7 5| 7 17 9| 8 6 7| 8 16 0| 9 14 10|11 14 7|F|
| | | | | | | | | | | |
| Eagle |M| 7 5 10| 7 11 6| 8 1 10| 8 15 0| 9 5 8| 9 17 6|10 18 0|13 1 4|M|
| |F| 6 12 10| 6 18 2| 7 7 6| 7 19 2| 8 8 4| 8 18 8| 9 17 6|12 0 4|F|
| | | | | | | | | | | |
| Economic |M| 7 5 6| 7 11 6| 8 1 10| 8 15 4| 9 6 4| 9 18 4|10 19 8|13 4 10|M|
| |F| 6 12 4| 6 17 8| 7 7 4| 7 19 2| 8 8 4| 8 19 0| 9 18 4|12 2 8|F|
| | | | | | | | | | | |
| Edinburgh |M| 7 4 6| 7 10 6| 8 1 4| 8 14 10| 9 6 2| 9 18 6|11 0 0|12 19 6|M|
| |F| 6 11 2| 6 16 8| 7 6 6| 7 18 6| 8 8 0| 8 18 10| 9 18 6|11 17 8|F|
| | | | | | | | | | | |
|!English and Scottish |M| 7 10 0| 7 16 8| 8 6 10| 8 19 0| 9 10 2|10 2 8|11 3 2|13 6 4|M|
| Law |F| 6 12 4| 6 17 4| 7 7 4| 7 19 4| 8 8 6| 8 18 10| 9 18 4|11 19 0|F|
| | | | | | | | | | | |
|!Friends' Provident |M| 6 15 4| 7 0 10| 7 10 4| 8 1 8| 8 10 7| 9 0 9| 9 18 10|11 18 6|M|
| |F| 6 5 8| 6 10 9| 6 19 11| 7 11 1| 7 19 11| 8 9 11| 9 7 1|11 4 7|F|
| | | | | | | | | | | |
| General |M| 7 4 8| 7 11 10| 8 3 10| 8 17 4| 9 7 2| 9 18 8|11 2 0|13 8 6|M|
| |F| 6 13 4| 6 18 10| 7 9 2| 8 1 2| 8 10 0| 8 19 6| 9 15 8|11 10 10|F|
| | | | | | | | | | | |
|!Gresham | | 6 18 5| 7 4 0| 7 14 1| 8 6 7| 8 16 8| 9 7 11|10 8 1|12 12 11| |
| | | | | | | | | | | |
|!Guardian |M| 6 19 4| 7 5 4| 7 15 8| 8 9 0| 8 19 8| 9 11 6|10 1 2|12 15 10|M|
| |F| 6 6 6| 6 11 10| 7 1 6| 7 13 2| 8 2 4| 8 12 10| 9 11 8|11 14 8|F|
| | | | | | | | | | | |
|!Hand-in-Hand |M| 7 3 4| 7 9 4| 8 0 0| 8 13 4| 9 4 2| 9 16 2|10 17 0|13 1 4|M|
| |F| 6 10 2| 6 15 8| 7 5 4| 7 17 2| 8 6 6| 8 17 0| 9 16 2|11 19 10|F|
| | | | | | | | | | | |
| Law Union and Crown |M| 7 2 8| 7 8 4| 7 18 10| 8 12 0| 9 2 8| 9 14 8|10 15 6|13 0 2|M|
| |F| 6 9 10| 6 15 2| 7 4 8| 7 15 10| 8 4 10| 8 15 2| 9 14 2|11 17 6|F|
| | | | | | | | | | | |
|!Legal and General |M| 7 2 0| 7 7 6| 8 18 6| 8 13 8| 9 5 2| 9 17 6|10 17 10| -- |M|
| |F| 6 7 10| 6 13 0| 7 2 0| 7 13 0| 8 1 10| 8 12 2| 9 6 8| -- |F|
| | | | | | | | | | | |
| Life Association of |M| 7 6 0| 7 12 0| 8 2 8| 8 16 0| 9 7 0| 9 19 2|11 0 6|13 4 8|M|
| Scotland |F| 6 12 10| 6 18 2| 7 7 10| 7 19 8| 8 9 0| 8 19 10| 9 19 2|12 2 6|F|
| | | | | | | | | | | |
| Liverpool and London |M| 7 4 4| 7 10 6| 8 1 4| 8 15 0| 9 6 4| 9 19 0|11 0 10|13 7 8|M|
| and Globe |F| 6 10 10| 6 16 6| 7 6 4| 7 18 4| 8 8 0| 8 19 0| 9 19 0|12 4 10|F|
| | | | | | | | | | | |
| London, Edinburgh, |M| 8 5 0| 8 11 0| 9 1 8| 9 15 4|10 6 8|10 19 2|12 1 2|14 7 10|M|
| and Glasgow |F| 7 11 0| 7 16 6| 8 6 2| 8 18 4| 9 8 0| 9 18 10|10 18 8|13 4 10|F|
| | | | | | | | | | | |
| Marine and General |M| 6 17 3| 7 3 3| 7 13 3| 8 5 0| 8 14 9| 9 7 0|10 10 0|12 12 0|M|
| Mutual |F| 6 4 3| 6 9 6| 6 18 9| 7 10 6| 7 19 6| 8 9 6| 9 8 3|11 10 6|F|
| | | | | | | | | | | |
| National Life |M| 7 11 3| 7 17 3| 8 7 11| 9 1 5| 9 12 7|10 4 10|11 6 5|13 12 3|M|
| |F| 6 17 9| 7 3 3| 7 13 0| 8 4 11| 8 14 4| 9 5 2|10 4 9|12 9 10|F|
| | | | | | | | | | | |
| National Provident |M| 6 15 4| 7 0 10| 7 10 4| 8 1 8| 8 10 6| 9 0 8| 9 18 10|11 18 6|M|
| |F| 6 5 8| 6 10 8| 6 19 10| 7 11 0| 7 19 10| 8 9 10| 9 7 0|11 4 6|F|
| | | | | | | | | | | |
| North British and |M| 7 5 4| 7 11 4| 8 1 10| 8 15 2| 9 6 2| 9 18 2|10 19 4|13 4 6|M|
| Mercantile |F| 6 12 2| 6 17 6| 7 7 2| 7 19 0| 8 8 2| 8 18 10| 9 18 2|12 2 6|F|
| | | | | | | | | | | |
|!Northern |M| 7 1 8| 7 7 0| 7 16 6| 8 8 8| 8 18 6| 9 9 4|10 8 6|12 8 8|M|
| |F| 6 9 6| 6 14 4| 7 3 0| 7 13 10| 8 2 2| 8 11 10| 9 9 2|11 9 0|F|
| | | | | | | | | | | |
|!Pearl |M| 7 9 4| 7 15 8| 8 6 10| 9 0 4| 9 11 0|10 3 2|11 4 6|13 10 6|M|
| |F| 7 3 2| 7 9 4| 8 0 2| 8 13 0| 9 3 0| 9 14 6|10 14 6|12 17 6|F|
| | | | | | | | | | | |
| Positive |M| 7 0 0| 7 8 0| 8 0 0| 8 15 0| 9 5 0| 9 19 0|11 0 0|13 5 0|M|
| |F| 6 10 0| 6 16 0| 7 5 0| 8 0 0| 8 10 0| 9 0 0| 9 15 0|11 15 0|F|
| | | | | | | | | | | |
|!Provident Clerks' |M| 6 15 10| 7 1 6| 7 11 9| 8 4 9| 8 15 1| 9 6 9|10 6 10|12 9 5|M|
| |F| 6 3 3| 6 8 7| 6 17 10| 7 9 1| 7 18 1| 8 8 5| 9 7 0|11 8 7|F|
| | | | | | | | | | | |
| Prudential |M| 6 16 6| 7 2 6| 7 13 6| 8 7 0| 8 18 0| 9 10 6|11 12 0|12 17 0|M|
| |F| 6 3 0| 6 9 0| 6 19 0| 7 11 0| 8 0 6| 8 11 0| 9 11 0|11 15 0|F|
| | | | | | | | | | | |
|!Rock |M| 7 5 0| 7 11 2| 8 2 2| 8 16 2| 9 7 9|10 0 5|11 2 11|13 4 2|M|
| |F| 6 11 4| 6 17 0| 7 6 11| 7 19 4| 8 9 0| 9 0 2|10 0 6|12 1 3|F|
| | | | | | | | | | | |
| Royal |M| 6 12 7| 6 18 11| 7 9 5| 8 1 8| 8 11 2| 9 2 2|10 1 10|12 1 0|M|
| |F| 6 5 3| 6 11 0| 7 0 7| 7 11 3| 7 19 6| 8 8 8| 9 5 0|10 17 9|F|
| | | | | | | | | | | |
| Royal Exchange |M| 6 16 11| 7 2 9| 7 13 0| 8 5 11| 8 16 6| 9 8 1|10 8 5|12 11 3|M|
| |F| 6 4 3| 6 9 6| 6 18 11| 7 10 5| 7 19 5| 8 9 8| 9 8 3|11 10 7|F|
| | | | | | | | | | | |
| Scottish Amicable |M| 7 0 7| 7 6 2| 7 16 5| 8 9 2| 8 19 4| 9 11 1|10 11 10|12 15 7|M|
| |F| 6 7 8| 6 13 2| 7 2 8| 7 13 9| 8 2 5| 8 12 9| 9 12 0|11 14 1|F|
| | | | | | | | | | | |
| Scottish Life |M| 7 7 6| 7 13 6| 8 4 4| 8 17 10| 9 9 0|10 1 2|11 2 8|13 8 6|M|
| |F| 6 13 6| 6 19 0| 7 8 8| 8 0 8| 8 10 0| 9 0 8|10 0 0|12 2 6|F|
| | | | | | | | | | | |
| Scottish Metropolitan |M| 7 10 10| 7 18 0| 8 9 4| 9 2 0| 9 11 8|10 3 6|11 5 8|13 11 11|M|
| |F| 6 12 9| 6 17 9| 7 6 8| 7 17 6| 8 6 1| 8 16 3| 9 14 6|11 15 8|F|
| | | | | | | | | | | |
| Scottish Provident |M| 7 2 8| 7 8 5| 7 18 9| 8 11 11| 9 2 8| 9 14 6|10 15 3|12 16 10|M|
| |F| 6 9 8| 6 15 0| 7 4 4| 7 15 11| 8 5 1| 8 15 6| 9 14 5|11 14 3|F|
| | | | | | | | | | | |
|!Scottish Widows' Fnd. |M| 6 8 0| 6 13 4| 7 2 2| 7 12 10| 8 1 0| 8 10 6| 9 7 10|11 8 6|M|
| |F| 6 2 6| 6 7 6| 6 16 0| 7 6 2| 7 14 0| 8 3 2| 8 19 10|10 18 6|F|
| | | | | | | | | | | |
| Standard |M| 6 19 4| 7 5 0| 7 15 1| 8 7 10| 8 18 5| 9 10 0|10 10 3|12 7 9|M|
| |F| 6 9 8| 6 15 0| 7 4 4| 7 16 0| 8 5 1| 8 15 6| 9 14 5|11 7 1|F|
| | | | | | | | | | | |
| Star |M| 7 3 9| 7 10 6| 8 2 1| 8 15 8| 9 5 5| 9 16 7|10 17 2|13 0 1|M|
| |F| 6 14 4| 6 19 11| 7 9 6| 8 0 11| 8 9 11| 9 0 1| 9 18 6|11 15 8|F|
| | | | | | | | | | | |
| Sun (of India) |M| 7 5 10| 7 12 0| 8 2 10| 8 16 8| 9 8 0|10 0 4|11 2 2|13 8 8|M|
| |F| 6 12 6| 6 18 0| 7 7 10| 8 0 0| 8 9 8| 9 0 8|10 0 6|12 6 0|F|
| | | | | | | | | | | |
| United Kingdom |M| 6 15 0| 7 0 6| 7 10 3| 8 2 6| 8 15 11| 9 3 3|10 0 3|12 1 0|M|
| Temperance |F| 6 2 11| 6 8 0| 6 16 11| 7 6 5| 7 16 4| 8 6 0| 9 3 4|11 2 3|F|
| | | | | | | | | | | |
| Yorkshire |M| 7 1 2| 7 7 6| 7 18 0| 8 10 4| 9 0 0| 9 11 6|10 11 0|12 15 0|M|
| |F| 6 8 0| 6 13 6| 7 2 0| 7 12 6| 8 2 6| 8 13 6| 9 12 0|11 12 0|F|
| | | | | | | | | | | |
|-----------------------|-|--------|--------|--------|--------|--------|--------|--------|--------|-|
| Post Office (Govt.) |M| 6 13 4| 6 19 2| 7 9 10| 8 3 2| 8 14 0| 9 6 0|10 6 10|12 10 10|M|
| Anns. |F| 6 0 6| 6 6 0| 6 15 8| 7 7 6| 7 16 8| 8 7 4| 9 6 4|11 9 6|F|
| | | | | | | | | | | |
|-----------------------|-|--------|--------|--------|--------|--------|--------|--------|--------|-|
| Equitable, U. States} |M| 7 10 0| 7 15 9| 8 6 2| 8 19 3| 9 9 10|10 1 9|11 1 8|12 17 11|M|
| Mutual, New York } |F| 6 16 9| 7 2 1| 7 11 6| 8 3 1| 8 12 1| 9 2 8|10 0 9|11 17 8|F|
| New York } | | | | | | | | | | |
-----------------------------------------------------------------------------------------------------

INDIAN GOVERNMENT STOCKS.

These stocks stand as high in the estimation
of the public as the British Government Funds.
They consist of loans raised in this country for
the use of the Indian Government and are two
in number, bearing interest respectively at the
rate of 3 and 3 1/2 per cent.

There is also what is termed a Rupee Paper
Loan, raised in India at 3 1/2 per cent. per annum.
The interest is paid in the currency of the coun-
try, which is the rupee, and that coin being
worth only a little more than half its nominal
value in this country, the investor in this stock
would receive in the shape of interest little more
than half the 3 10s. a year. The price of the
stock in the market is consequently in the same
proportion, and at the present moment is about
62 for every 100 stock.

CHAPTER VII.
LOANS TO CORPORATIONS AND COUNTIES OF
THE UNITED KINGDOM.

THESE are loans raised by boroughs and coun-
ties, and other authorities in this country, for
local purposes, upon the security of the rates or
other assured income. Before the money is
borrowed the consent of the Local Government
Board is necessary to make the loan legal, and
evidence is required that the resources of the
borrowers are ample to meet their obligations.

On most of these stocks the rate of interest is
3 per cent., though there are some few at 3 1/2 per
cent. The principal is redeemable at fixed dates,
or by a sinking fund, that is, by setting aside so
much a year to pay off the loan at a fixed time,
or as opportunity offers. For instance, in times
when money is scarce or dear there is a proba-
bility of these stocks falling below their par
value, and the Sinking Fund is then used to buy
the stock in the market. Thus the Corporation
may be able in effect to pay off a loan of 100
for 90 or 95, whatever the price may be, and
so gain the amount of the difference.

Investments in securities of this kind may be
considered absolutely safe, although certainly
there is the contingent risk of a town, after bor-
rowing up to its full powers, drifting into decay
from the loss of its staple trade, and so finding
itself unable to meet its obligations. The in-
vestor should, however, find no difficulty in
discovering where such a contingency would be
possible.

The interest on these loans is usually sent
direct to the stock-holders, by means of an order
on a bank.

COLONIAL GOVERNMENT SECURITIES.

Loans made to the various Colonies of Great
Britain have always been a favourite mode
of investing money, as they command a better
rate of interest, at least they have done so
in the past, although the confidence which the
Colonies have succeeded in inspiring now
enables them to borrow money at a low rate of
interest. At the same time the old stocks have
advanced to a very considerable premium.

Experience has shown that, so far, the invest-
ment has been a safe one, although great fluc-
tuations have from time to time taken place in
the value of some of the stocks, owing to a
check in prosperity, depression of trade, or
diminished confidence in the stability of the
Colony from various causes. These transient
clouds have, however, in time, passed away, and
confidence has again been established.

The investor should be able readily to distin-
guish between those Colonies which are perma-
nently settled and not likely to be seriously
affected by any passing crisis, and others in a
less fortunate or advanced position. And he
would do well, if adversity should at any time
overtake a Colony, and so send down the value
of its stock, to avoid selling out in a panic, but
to consider whether the circumstances are such
that the crisis may pass off at no distant date,
and confidence be restored. It should be remem-
bered that there are always speculators who, at
such times, endeavour to intensify a crisis, in
order that prices may be forced down, and that
they may be thereby enabled to acquire stocks
at low prices from timid holders.

There are two modes of investing in these
securities,
1. Inscribed or Registered Stock.
2. Bonds.

In the case of Inscribed or Registered Stock,
any amount can be invested, and the same is
registered in the books of the Bank of England
or elsewhere, in the name of the investor, in the
same way as the Government Funds. The divi-
dend or interest is sent to the owner's address
by an order payable at a bank, half-yearly or
quarterly, as the case may be, or it may, on
written instructions being sent to the agents, be
transmitted to the credit of the account of the
holder at his own bankers periodically. This is
by far the best plan; it saves trouble and risk,
and, for the matter of that, something in postage.
It is, moreover, the method much preferred
by the agents themselves, and it involves no
additional expense.

The following is a list of the Inscribed Stocks
of the Colonial Governments, with an example
of the way in which the market price, which
of course varies almost from day to day, is
quoted:-

COLONIAL GOVERNMENT INSCRIBED STOCKS.
---------------------------------------------------------------------------------------------------------------------------------
| | | | | | | | |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| | | | | | | | |
|----------|----------|-----------------|---------|-----|------------------------------------------------------------------------
| | | | | | | | |
| 100,000| 100,000| 1 Mar. 1 Sept.| 4 Aug. | 4 |Antigua 4% Inscribed Stock | 1919-44 | 115 - 117 |
| 375,000| 375,000|15 Mar. 15 Sept.| 17 Aug. |3 1/2|Barbados 3 1/2% Inscribed Stock | 1925-42 | 109 - 111 |
| 1,120,000| 969,940| 1 Jan. 1 July | 16 Dec. | 3 |British Columbia (Province of) 3% Insc. Stock | 1941 | 101 - 103 |
| -- | 194,500|15 Jan. 15 July | 16 Dec. | 4 |British Guiana 4% Inscribed | 1935 | 118 - 120 |
| 7,505,800| 7,505,800| 1 May 1 Nov. | 19 Oct. | 4 |Canada 4% Stock Registered |1904-4-6-8 | 105 - 111 |
| 3,975,614| 3,975,614| 1 Jan. 1 July | 15 Dec. | 4 | Do. 4% Reduced (late 5%) Registered | 1910 | 109 - 111 |
| 4,550,300| 4,550,300| 1 June Dec. | 16 Nov. |3 1/2| Do. 3 1/2% Stock Registered | 1909-34 | 107 - 109 |
| 3,431,700| 3,431,700| 1 Jan. July | 15 Dec. | 4 | Do. 4% Loan for 4,000,000 | 1910-35 | 110 - 112 |
|10,939,834| 9,978,021| " " | " | 3 | Do. 3% Stock Registered | 1938 | 102 - 104 |
| 3,000,000| 2,115,152| 1 June 1 Dec. | 16 Nov. | 4 |Cape of Good Hope 4% Stock Registered | 1917-23 | 117 - 119 |
| 3,769,465| 3,769,465| " " | " | 4 | Do. (Loan of 1883) Inscribed | 1923 | 119 - 121 |
| 9,997,566| 9,997,566|15 Apl. 15 Oct. | 2 Oct. | 4 | Do. 4% Consolidated Stk. Ins. | 1916-36 | 116 - 118 |
| -- | 5,154,272| 1 Jan. 1 July | 16 Dec. |3 1/2| Do. 3 1/2% Consolidated Ins. Stk.| 1929-49 | 115 - 117 |
| 1,076,100| 1,070,100|15 Feb. 15 Aug. | 16 Jan. | 4 |Ceylon 4% Inscribed Stock | 1934 | 123 - 125 |
| 1,450,000| 1,450,000| 1 May 1 Nov. | 2 Oct. | 3 | Do. 3% Inscribed Stock | 1940 | 104 - 106 |
| 123,670| 123,670|15 May 15 Nov. | 16 Oct. | 4 |Grenada 4% Inscribed Stock | 1917-42 | 115 - 117 |
| 341,800| 341,800|15 April 15 Oct. | 16 Sept.|3 1/2|Hong Kong 3 1/2% Inscribed Stock | 1918-43 | 107 - 110 |
| -- | 1,086,241|16 Feb. 16 Aug. | 16 Jan. | 4 |Jamaica 4% Inscribed Stock | 1934 | 120 - 122 |
| 480,749| 480,759| 1 Feb. 1 Aug. | 2 Jan. | 4 |Mauritius 4% Inscribed Stock | 1937 | 121 - 123 |
| -- | 282,481|15 May 15 Nov. | 16 Oct. | 4 |Natal 4% Consolidated Stock, Inscribed | 1927 | 120 - 122 |
| 3,026,444| 3,026,444| 1 April 1 Oct. | 1 Sept.| 4 | Do. do. do. | 1937 | 123 - 125 |
| 3,714,917| 3,714,917| 1 June 1 Oct. | 3 Nov. |3 1/2| Do. 3 1/2% Inscribed Stock | 1914-39 |107.5-108.5|
| 320,000| 320,000| 1 Jan. 1 July | 16 Dec. | 4 |Newfoundland Inscribed | 1913-38 | 109 - 111 |
| 550,000| 550,000| " " | " | 4 | Do. 4% Inscribed Stock | 1935 | 110 - 112 |
| 200,000| 200,000| " " | " | 4 | Do. 4% Consolidated Stock Inscribed | 1936 | 110 - 112 |

| 9,686,300| 9,686,300| 1 Jan. 1 July | 2 Dec. | 4 |New South Wales Stock, Inscribed | 1933 | 120 - 122 |
|16,500,000|16,500,000| 1 April 1 Oct. | 2 Sept.|3 1/2| Do. 3 1/2% Stock, Inscribed | 1924 | 110 - 111 |
| -- |12,826,200| 1 Mar. 1 Sept.| 5 Aug. |3 1/2| Do. 3 1/2% Stock, Inscribed | 1918 | 109 - 110 |
| 4,000,000| 4,000,000| 1 April 1 Oct. | 2 Sept.| 3 | Do. 3% Inscribed Stock | 1935 |101.5-102.5|
|29,150,302|29,150,302| 1 May 1 Nov. | 2 Oct. | 4 |New Zealand 4% Consolidated Stock Inscribed | 1929 | 115 - 116 |
| 5,960,588| 5,960,588| 1 Jan. 1 July | 2 Dec. |3 1/2| Do. 3 1/2% Stock | 1940 |105.5-106.5|
| 1,527,000| 1,526,620| 1 April 1 Oct. | 2 Sept.| 3 | Do. 3% Inscribed | 1945 |100.5-101.5|
|10,866,900|10,866,900| 1 Jan. 1 July | 2 Dec. | 4 |Queensland Stock Inscribed | 1915-24 | 113 - 115 |
| 8,516,734| 8,516,734| " " | " |3 1/2| Do. 3 1/2% Inscribed | 1921-4-30 |105.5-106.5|
| 1,250,000| 1,250,000| " " | " |3 1/2| Do. 3 1/2% do. | 1945 |107.5-108.5|
| 85,490| 85,480|15 Feb. 15 Aug. | 16 Jan. | 4 |St. Lucia 4% Inscribed Stock | 1919-44 | 112 - 114 |
| 7,721,000| 7,721,000| 1 April 1 Oct. | 11 Sept.| 4 |S. Australia (Loans of 1882-3-4-5-6-7) Reg. | 1916-36 | 112 - 114 |
| 2,850,713| 2,517,800| 1 Jan. 1 July | 14 Dec. |3 1/2| Do. 3 1/2% Inscribed Stock Registered | 1939 | 111 - 113 |
| 839,500| 839,500| " " | " | 3 | Do. 3% do. do. | 1916-26 | 97.5- 98.5|
| 3,546,500| 3,546,500| 1 Jan. 1 July | 16 Dec. |3 1/2|Tasmanian 3 1/2% Inscribed Stock | 1920-40 | 106 - 108 |
| 1,000,000| 1,000,000| " " | " | 4 | Do. 4% do. | 1920-40 | 114 - 116 |
| 100,000| 100,000|15 Mar. 15 Sept.| 17 Aug. | 4 |Trinidad 4% Inscribed Stock | 1917-42 | 114 - 116 |
| 3,365,300| 3,365,300| 1 Jan. 1 July | 16 Dec. | 4 |Victoria 4% Railway Loan, 1881, Inscrib. Stock | 1907 | 106 - 108 |
| 9,358,200| 9,358,200| 1 April 1 Oct. | 16 Sept.| 4 | Do. Loans of 1882-3-4, Inscrib. Stock |1908-13-19 | 107 - 113 |
| 6,000,000| 6,000,000| 1 Jan. 1 July | 16 Dec. | 4 | Do. Loan of 1885, Inscribed Stock | 1920 | 112 - 114 |
|12,000,000|12,000,000| " " | " |3 1/2| Do. 3 1/2% Inscribed Stock | 1921-3-6 |104.5-105.5|
| 2,107,000| 2,107,000| " " | " | 4 | Do. 4% Inscribed Stock | 1911-26 | 108 - 110 |
| 961,277| 961,277|15 Jan. 15 July | 16 Dec. | 4 |Western Australia 4% Inscribed Stock | 1934 | 121 - 123 |
| 1,876,000| 1,876,000|15 April 15 Oct. | 2 Oct. | 4 | Do. 4% Inscribed Stock | 1911-31 | 112 - 114 |
| 750,000| 750,000| 1 May 1 Nov. | 16 Oct. |3 1/2| Do. 3 1/2% Inscribed Stock | 1915-35 | 110 - 112 |
| 750,000| 750,000| " " | " | 3 | Do. 3% Inscribed Stock | 1915-35 | 98 - 99 |
| | | | | | | | |
---------------------------------------------------------------------------------------------------------------------------------
The numbered columns are explained as follows:-
1. The amount of Loan authorized to be raised. | 5. The rate of interest on the Loan.
2. The amount actually owing. | 6. The name of the country borrowing.
3. When the interest is payable. | 7. When the Loan is re-payable - thus "1919 or 1944."
4. When ex interest. | 8. The price for every 100 of stock.

Colonial Government Bonds, the other form
of investment, are paper or parchment docu-
ments, on which are printed all details of the par-
ticular loan taken up by the Colony, the nature
of the Security the lender has in advancing
his money, the rate of interest, and when and
how the principal is to be repaid. These
bonds are payable to bearer, and pass from
hand to hand without any formal transfer, so
that as much care is necessary in safe-keeping
them, as with bank-notes. Attached to these
bonds are little coupons or slips of paper, each
one representing a half or quarter year's in-
terest, from the date of purchase to the time
when the principal is to be paid off. The
coupon bears the name of the bank or agency
where it may be cashed, and any banker will
negotiate it. Of course, only the coupon for the
interest actually due on the date indicated on
the face must be cut off.

FOREIGN GOVERNMENT STOCKS.

These represent money borrowed by various
foreign countries on the security of their credit or
solvency, and the loans stand to them in the same
relationship as the British Government Funds
do to this country. The debts are chiefly repre-
sented by bonds, the same as Colonial Govern-
ment Bonds, and with coupons attached, which,
whether payable in England or their own
country, are collected by bankers in the same
manner. Such European States as Germany,
France, Russia, Denmark, Sweden, and Italy,
always enjoy good credit, and they may be con-
sidered responsible for their financial engage-
ments. In the case of Italy, however, it must
be remembered that the Italian income-tax,
amounting to 20 per cent., is deducted from the
interest, which has also to bear the English
income-tax, whatever at the time it may be.

When investing in Colonial or Foreign bonds,
especial care is necessary in observing the con-
ditions of re-payment. Sometimes it is at the
option of the borrower, but usually at a certain
specified date. Neglect of this precaution may
lead to an investor purchasing at a premium,
and sooner than expected being paid off at par.

Some of these loans, too, are paid off by
annual instalments, lots being drawn to deter-
mine the bonds to be redeemed. If the bonds,
therefore, have been bought at a premium, there
is always the risk of their being drawn for pay-
ment and paid off at par. On the other hand, if
the bonds are bought at a discount, there is no
danger of loss; and a profit will be realised
should they be drawn for payment.

For instance, a 100 bond is purchased at 4
premium, costing 104. If the bond is paid off
at par, or 100, there is obviously a loss of 4;
but if the bond is purchased at 4 discount, cost-
ing 96, it is equally obvious that, if paid off at
par, there would be a gain of 4.

RAILWAYS.

Next to the British Government Funds, by far
the largest amount of money is invested in Eng-
lish railways. First in order of safety, as an
investment, is the debenture stock of a railway
company. This is the first charge on the rail-
way, and holders of the stock are paid the in-
terest thereon in priority to all other stocks. In
the event of the failure of the company they
must also be fully satisfied as to principal and
interest before any one else can receive a penny.
Any amount of stock, odd or even, may be pur-
chased through a banker or broker, and war-
rants for the interest are forwarded half-yearly
to the address of the registered holder. The
debenture stocks of good English railways com-
mand a high premium, and the investment,
therefore, though undoubtedly safe, does not
yield much in the way of interest. Guaran-
teed stocks are of various kinds and rank --
some on the same level as, and others next in
order to, debenture stocks. In some cases
the interest is guaranteed by another railway.
Before investing in these stocks the nature of

Book of the day:
Facebook Google Reddit StumbleUpon Twitter Pinterest