Cornell University Library arV12798 A practical guide to business o ^oo/1 mi 065 238 Cornell University Library The original of tliis book is in tine Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924031265238 PUBLISHERS' AMOUNCEMENT. Mr. Welsh's "Practical Guide to Business" aims tabe a thoroughly useful book. It embraces those points in relation to making, managing, and saving money, which must be understood by all, in order to conduct business with success, or to preserve acquired capital with safety. It avoids the technicalities and dry details which fill most volumes of similar character, while, at the same time, it gives on every page rules and facts which are indispensable for the person who would acquire an in- dependence. SYNOPSIS OF THE BOOK. The work is divided into two parts : The First Part treats of the true principles on which business must be conducted in order to make money. The advice given is of a high character, and is drawn from an extended experience with the details of mercantile and general business life. The earlier chapters are especially directed to the young, and deserve careful perusal by evesy youth. A ii publishers' announcement. father or friend qannot find a more valuable guide to place in the hands of the young man commencing his intercourse with the world than this work, the shrewd observations of the writer meeting the most rigid de- mands of morality, while at the same time they epito- mize an immense amount of Avorldly wisdom. The Author is evidently of the school of Dr. Benjamin Frank- lin, who had learned, by a long study of human nature, that it does not pay in the long run to be a knave. The Publishers would especially direct attention to the prominence the Author gives to instructing women in the details and management of business, and of their OAvn funds. His views, if generally practised, will be of inestimable advantage to that sex, and deserve a most careful reading by them. The subject of Investments, which the Author treats at length, is a most important one, and his views must be conceded by all to be eminently judicious and discrimi- nating on this vital topic. The closing chapter of the First Part rehearses the causes of failures, the nature of the most prominent frauds, and the method of detecting counterfeits and forgeries, points on which every man and woman want just such instructions as are here given. The Second Part gives in brief all the really valuable information which is found in the various Letter Writers, Form Books, PT7BLISHEES' ANNOUNCEMENT. iii Eeady Reckoners, etc., and a great deal besides which cannot be found anywhere else. The Rules for Business Correspondence are clear, suc- cinct and sound. The chapter on Legal Forms and Business Laws is admirably adapted for general use in daily transactions in all the States of the Union. The information it con- veys should be acquired by every one, and will often save heavy lawyer's fees, or serious losses. ^ The chapters on Business Arithmetic are an entirely new feature, and cannot be too highly commended. The many " short methods " they recommend, and the simple and accurate plans they contain for solving constantly recurring problems in land-measuring, the calculation of values, rates, measures and capacities, will make them quite invaluable to every one who once examines them. The Tables and Rules for calculating mechanics' work are drawn from the actual customs and usages now in vogue in the principal cities of the United States, and may be depended upon as entirely reliable. The various receipts and memoranda toward the close of the Second Part, will of themselves repay any pur- chaser of the book all he lays out in buying it. They are. selected as of a nature specially adapted to business purposes. The Publishers hope that they have done justice to the work in the character of the illustrations, the excellent paper they have used, etc. A PRACTICAL GUIDE TO BUSIIsrESS; HANDBOOK FOR THE AMERICAN FARMER, MERCHANT, MECHANIC, INVESTOR, AND ALL COirOEBNSD IH EAUNING OR SAYING MONET. CONTAINI»a Sules for Oommeneinff and Conduct- ing Business successfully. Selling and Buying Patents. How to make Money at Farming^ Trading, and other pursuits. Employments for Women. How to Invest Money Safely and Profit- aUy. The Detection of Counterfeits, For- geries, and other Frauds. Forms for Legal Instruments and Business Letters. Valuable Advice on the Laws of Trade. Handy Rules for Business Calcula- •tions. How to Calculate Mechanics* Work. Tables of Weights, Measures^ Wages^ &G. Practical Receipts of General Value. Explanution of Terms used in Buti' ness. Etc. etc. etc. WITH NUMEROUS ILLUSTRATIONS. BY LEWIS G. WELSH. "Ba SOT aLOTHPDl IH BUSIKBSS."— Kom. xii. 10, 11. PHILADELPHIA: J. G. FE RGUS & C 0., 165 NoBTH Ninth Stbbbt. 1872. Entered according to Act of Congress, in the year 1872, by J. G. PERGUS & CO., In the Office of the Ihbrarian of Congresa--at Washington, D. C. TO ALL WHO SEEK AN HONORABLE INDEPENDENCE BY THEIB, OWN LABOR, THIS WORK IS RESPECTFULLY DEDICATED BY THE AUTHOR. 7 PREFACE. the JUSINESS men are rarely authors; and I suppose that this is the reason why, among the many books published, there is none which sets forth briefly and in plain terms rules for transacting every-day business. affairs. Those who stand most in need of such instruc- tion, that is, young men who are starting in life, widows and single women! who have the care of their own property, and young women who are obliged to support themselves, cannot give the time and study required to master the large books on the laws of commerce, the business arithmetics, and financial treatises which have been offered to the public. " The widow and the fatherless " too often become the prey of designing and unscrupulous 9 10 PEEFACE. advisers, owing to their ignorance of the rules and usages of practical life. Uncertain whom to trust, and painfully conscious of their own incompetency, they are apt to repose confidence in plausible knaves, who defraud them of their money and lead them to poverty. Hardly less sad is the condition of those young men and women who, wdthout a knowledge of the requisites to success in. business, leave home, determined to support themselves, and meet the bitter disappointment which attends unavailing efforts to be independent. These are the classes which I have had in view in writing this book. In the chapters on Investments, on Legal Forms, and on Frauds, I have attempted to give ail the information necessary to prevent the loss of principal which has once been obtained. In the chapters on Commencing and Conduct- ing Business, and on Failures, I have sought to point out the elements of success and the causes of misfortune in practical life. The remainder of the book consists of a col- lection of numerous facts, suggestions, forms, handy arithmetical methods, memoranda, etc., all PREFACE. 11 closely related to the business of every-day life, and with all of which every one should be familiar. While, as I have just stated, my principal object has been to instruct a class of readers who are not versed in the rudiments of business, the most experienced will find, I trust, many points' in the course of the volume which will repay its perusal. In what relates to legal subjects, I have been careful to select rules of forms which hold good over the whole United States, mentioning it when there are differences in State laws on im- portant topics (as, for example, in reference to Usury, Days of Grace, and Rates of Interest) . In short, my aim has been to produce a thoroughly practical, useful, " concise, and clear exposition of the way to make and save money. That it may meet the approval of business men is my earnest hope. CONTENTS. PART I. THE PKINCIPLES OF BUSINESS. CHAPTER I. PEESONAL EEQTJISITES F(5r SUCCESS IN BUSINESS. A business education — A collegiate or commercial education 7 — Lord Bacon's opinion — Commercial colleges — The dignity of labor — Example of Astor — Special points in a business educa- tion — How to remember dates, names, and faces — ^Letter-writ- ing — Punctuation, spelling, grammar, and style — The use of figures — The shortest methods of calculation should be used — Logarithms — Practical value of geographical knowledge — De- cision of character — Asking advice — Secrecy — The million- aire's motto — Punctuality — Advantage of civility — Politeness is not servility — Integrity — Dishonesty a business mistake — Economy-^Economy is not niggardliness — Personal habits — Use no liquor ; little tobacco — Dress neatly — Secret societies — Take care of the health — Aim at ^n independence, not at millions 25 CHAPTER II. 1/ RULES FOE COMMENCING BUSINESS. Choosing a business — The man, not the business, makes the money — Getting a situation — Early business life a school — Aim at a specialty — " SpecialiU de pumpkin pies " — Dtf not 2 15 14 CONTEITTS. ' change your business — Rights and duties of an agent — Obey orders — Avoid liability — Forming a partnership — Why j-ou sliould be cautious — What partner not to choose — Sleeping and special partners — Risks they run — Buying a, business — Beware of "magnificent opportunities " — What the good-will of a business is — How to secure it — What are business profits ? — " Luck '■ in business — Rothschild's maxim — How a man buys " lucky" lottery numbers 52 CHAPTER III. EULES FOE CONDTJCTING BUSINESS. Personal attention — On employees — JIcDonogh's motto — The se- lection of employees— Signs of an honest man — The manage- ment of employees— Curious maxim of an English statesman — Payment of employees-^Does it pay to give presents ? — Choice of a place of business — An important hint to the farmer — City or country? — Buying goods — How to make a bargain — What binds a bargain — Selling goods — -The one-price sys- tem — A mistake in profits — Credit or cash ? — A startling cal- culation — Mercantile agencies — On employing agents — The financial department — How to send money by mail — Collecting debts — A doctor's experience — Going security — The small loan nuisance — How to decline politely — Book-keeping — How to file' letters — Insurance — Lord St. Leonards' opinion — Advertis- ing — Where to advertise — How to write an advertisement — Advertising contracts and agencies TO CHAPTER IV, ^ PEOFITABLE BUSINESSES EEQUIEING LITTLE CAPITAL. How to obtain capital to begin business — Advertising for it — Patents — The value of patents — Opinion of the Chief Examiner — How to sell a patent — Territorial rights — Shop rights — Roy- alty — Traps to catch inventors — Authors and copyrights — Profits of authors — Large incomes of some — The most valu- able literary property — Translations — Profitable farming — Rules for making and saving money on a farm — Requisites to success in farming — Insurance agents — How much they make — ^Book agencies — Their value to the public — Their profits — CONTENTS. 15 Patent medicines — Mistalcen ideas about — Morality of — How to do away witli tliem — Profits of various occupations — Rislcs of mercantile life — Farmers live longer and lose less — Poolish sentiment about professions — Incomes of professions — Objec- tions to political life — Advantages of mechanical trades 95 CHAPTER V. BUSINESS rOE WOMEN. Complaints that women have not an equal. chance in business — Causes of this explained— The education of the average American girl — What women ought to learn — The business of housekeeping — How to have good servants — Many women fail through the expectation of marriage— Profitable employments for women — Nursing — Cooking — Proof-reading — Type-setting — Drawing — Book-canvassing — Schools of design for women — What is taught in them 120 CHAPTER VI. INVESTMENTS. Money more easily made than saved — The four elements of a good investment — ^What an investment ought to pay — Some mistaken calculations — Cautions in buying real estate — What to give for real estate — Buying wild lands — ^Personal property — Mortgages — Objections to second mortgages — Deeds of trust — Chattel mortgages — Bonds — Coupon bonds — Registered bonds — Judgment bonds — United States bonds- — State, County, and City bonds — Building associations^Life insur- ance^Does it pay ? — Savings banks ; their value — Railroad securities ; which to avoid and which to buy — Stocks — Mining stocks — Mines of precious metal less remunerative than those of base metal — Speculations in securities — Tricks of the Stock Exchange — Warnings to investors 132 CHAPTER VII. COUNTERFEITS, FORGERIES, FRAUDS, AND FAILURES. How to detect counterfeits — An inspection of a bank-note is enough — Altered bank-notes — " Pieced " bank-notes — Selling 16 CONTENTS. counterfeit money — The "boodle game" — The detection of forgeries — The prevention of forgeries — Confidence operations — Tricks with mercantile paper — "Kiting" — "Dummies" — Void notes— Stock swindles — " Washing stocks " — " Watering stocks " — " Freezing out " — Gift enterprises — Goods sold under cost — Advertising swindlers — Curiou'S ^history of one's operations — Failures and their causes — The most common cause — Indorsing — Bad habits — Why men fail to " get on in the world " — Extravagance — Who waste most money, men or women? — A hint about marriage — Speculation and outside operations ITO PART II. THE PRACTICE OF BUSINESS. CHAPTER I. ' THE ART OF BUSINESS CORRESPONDENCE. What constitutes a good business style — The address, signature, and form of a letter — Model form — Letter of introduction — Application for an agency — Order for goods — Notice of forma- tion of a partnership — Notice of dissolution of a partnership — Remittance of money — Pressing for payment — Threat of legal proceedings — Importance of copying letters 195 CHAPTER II. LEGAL FORMS AND BUSINESS LAWS. Maxims regarding all legal papers — I. Bills — II. Monthly state- ments — III. Receipts ; Receipts in full ; Statute of limitation — IV. Due bills — V. Orders. How a Sacramento merchant lost a thousand dollars — ^VI. Checks. Laws relating to checks — VII. Bills of exchange and drafts. Acceptance. Days of grace. Customs in different States. Letters of Exchange — VIII. Pro- missory note. Indorsement pf a note. Important ruling of the Pennsylvania Supreme Court. Maturity of a note. How to calculate it — IX. Notes with collateral security — X. Judgment note — XI. Judgment Bond. Assignment of a bond. Bond of CONTENTS. 17 indemnity — ^XII. Power of attorney — XIII. Proxy — XIV. Con- tracts or agreements. Essential points in. Contract with a clerk : for building a house — XV. Articles of copartnership. Important points in ; expiration of; dissolution of; sale of — XVI. Guaranties and warranties. Guaranty for goods ; war- ranty for a horse — XVII. Leases. Points for the landlord : points for the tenant. Notice to quit — ^XVIII, Deeds. "What constitutes a valid deed. Recording a deed — XIX. Wills. Rules for making. Form of a will. Codicil to a will. Verbal will — XX. Administration of an estate.^-Rates of interest and usury laws in the different States. — When interest can be charged .- 203 CHAPTER III. PATENTS, TEADE-MAEKS, AND COPYRIGHTS. What may be patented — Who may obtain a patent — Law of caveats — Specification — Drawing — ^Models — Oath of invention — Patented articles must be stamped — Assignments — Reissues — Disclaimers — How to apply for a patent — Forms for the petition, etc. — Extensions. — Selling and assigning patents — Forms for — F_ees of the patent office — Design patents — Trade- marks and how to seciire them — Directions for obtaining copy- rights / 7. 268 CHAPTER IV. . THE SHORTEST METHODS IN ARITHMETIC. Value of arithmetical knowledge — Arithmetical signs — Short methods of addition — Of multiplication— Long division short- ened — Fractions — Handy rule for mixed numbers — The value of analysis shown — Short methods of multiplying and divid- ing decimals — The rule of three — Advantages of cancelling — Interest — The shortest plan of computing interest for days or months at six per cent. — At any per cent. — Time table — Com- pound interest — Off-lw.nd rule for telling when a sum will double at compound interest — Discount ; bank discount ; mer- chants' discount ; losses often incurred through not under- standing discount — Stocks and bonds — Profit and loss — Partial payments ; rule laid down by the U. S. Supreme Court- s'* 18 CONTENTS. Exchange on England ; handy rules for converting currency into sterling, etc. — Value of foreign moneys in dollars and cents — Tables of interest, wages, etc 293 CHAPTER V. "WEIGHTS AND MEASURES. Avoirdupois, troy, and apothecaries' weight — Produce-weight table ; by the bushel ; by the barrel — Corn measure ; the true size of a bushel measure — Weight of a cubic foot of various substances — Number of cubic feet in a ton of various articles — Measures of solidity — Of liquids ; of length — Of land — U. S. Government land measure — Gunter's chain — Cloth measure — Eope measure — Paper measure — Yarn measure — Coal measure — Hay measure — Measuring grain in bulk — Capacities of boxes — Of cisterns — To estimate the weight of live cattle, hogs, etc. — To ascertain the true weight on false scales — Bulk of various articles to a freight ton — The Cental system — French measures. 333 CHAPTER VI. SURVEYING, LAND-MEASUEING, AND LEVELLING WITHOUT INSTRUMENTS. To find the area of four-sided figures — Of three-sided figures — Of circles — To lay off a square corner — To measure distances by stepping ; by the steps of a horse ; by the eye — To measure land without instruments — To draw the plan of a farm or field — To measure the width of a pond — To find the width of a stream which cannot be crossed — To find the distance between two inaccessible objects — To ascertain the height of a tree, steeple, etc. — To measure the rise or fall of ground — Handy means of levelling without instruments — Road-making and grading — The proper grades for a road — To calculate the amount of water furnished by a stream 356 CHAPTER VII. RULES FOR COMPUTING MECHANICS' WORK. Timber measure — Amount of timber in a load — Carpenter's work — Stone-mason's work — ^Bricklayer's work — ^Plasterer's work — Slater's work — ^Painting and glazing 382 CONTENTS. 19 CHAPTER Vlll. RECEIPTS AND MEMORANDA OF PRACTICAL VALUE. How to make black ink — Indestructible ink — Copying inks of various colors — To recover writing which is nearly effaced — To make tracing and parchment paper — To fix perma- nently drawings or writings made by a lead pencil — To restore old paintings — To make liquid glue — Cements — To make bricks water-proof — To make whitewash that will not rub off — To render cloth water-proof — To render wrapping paper water-proof — Fire-proof paper — Fire-proof dresses, etc. — To prevent dampness in safes — To detect dangerous kerosene — To polish glass, marble, etc. — To cut or bore glass with a steel instrument — To prevent knives, tools, etc. from rusting — How to read gas meters — To polish and stain wood, etc , 395 CHAPTER IX. BUSINESS TERMS. Explanation of terms used in business — Of foreign words and phrases — List of books for a business library 414 LIST OF ILLUSTRATIONS. FRONTISPIECE. The Millionaire's Motto. Our Great Men. An Honest Living. The Herald of Knovirledge. Practical Art Studies. The Accountant. The La-wyer and his Clients. Specimens of English Trade-Marks. Problems in Practical Mensuration. Levelling Instruments. 21 LIST OF MATHEMATICAL DESIGNS. Laying off a Square Corner. Calculating Distances by the Eye. Measuring the Area of Fields. Finding the Breadth of a Pond. Finding the Width of a Stream -without Cross- ing it. Finding the Distance bet-ween Inaccessible Ob- jects. Measuring the Height of a Tree. .Span Level and Plumb Level. Levelling -with a Plumb Level. Measuring the Bed of a Stream. 23 II IB 11 I n g.i If _U_JL1— IJ- II lit -" " " »» " " ■■ '■ ■■ " PART I. THE PEIlsrOIPLES OF BUSIE"ESS. CHAPTEE I. PEESONAL REQUISITES FOE STJCCBSS IN BUSINESS. A business education — A collegiate or commercial education ?— Lord Bacon's opinion — Commercial colleges — The dignity of ' labor — Example of Astor^ — Special points in a business educa- tion — How to remember dates, names, and faces — Letter-writing — Punctuation, spelling, grammar, and style — The use of figures. — The shortest methods of calculation- should be used — Loga- . rithms — Practical value of geographical knowledge — Decision of character — Asliing advice — Secrecy — The millionaire's motto — Punctuality-7-Advantage of civility — Politeness is not servility — Integrity — Dishonesty a business mistalse— Economy — ^Economy is not niggardliness— Personal habits — Use no liquor ; little tobacco-^Dress neatly — Secret societies — Take care of the health — Aim at an independence, not at millions. pi F people are poor in this country, it is, as a rule, ^1 because they prefer to be so. A competence, at least, is within the reach of almost every one who will take the pains to procure it ; and many, who might be wealthy, throw away their chances by a delibe- rate neglect of perfectly familiar rules of conduct. There are, of course, some who are wanting in natural 3 25 26 KEQUISITES FOE SUCCESS IN BUSINESS. ability ; some who have lost their accumulations through unavoidable disasters ; and others who, using all pru- dence, make ruinous mistakes. They are the exceptions. Whoever will rigidly observe the precepts of business experience, which are well-nigh as familiar as the Ten Commandments, cannot fail ; or should he fail, will cer- tainly recover himself, and that rapidly. Although they are so familiar, I intend to rehearse them in this book, because it is my wish to make it as complete a manual for the biisiness man as possible, and to omit nothing, therefore, which may aid him to secure the object of his endeavors — a fortune. A BUSINESS EDUCATION. Some education is indispensable to conduct business with success, and the wider and more thorough the edu- cation is, the better. There are some brilliant examples of self-made men among us, men who, with a very meagre primary edu(?ation, have reached the pinnacle of prosperity ; not, however, in consequence, but in spite of their slender outfit of knowledge, which they themselves are always the first to acknowledge and to regret. Precisely these men manifest the utmost anxiety to furnish the means of early education to others. From their ranks came John Jacob Astor, who founded the library which goes by his name, and Peter Cooper, who established the Cooper Institute for the purpose, as he himself says, of furnishing the young men of to-day the ADVANTAGES OF COMMERCIAL TRAINING. 27 opportunities for instruction, which he himself, when young, sought in vain. No young man need fear that any amount of learning he may acquire will disqualify him' for business. He may rest assured that there is no danger in this direction. It is a favorite theme with some to inveigh against a collegiate education, and to compare it unfavorably with a commercial one. If these persons mean that a know- ledge of Greek, Latin, and the higher mathematics is either useless or injurious to a business man, their posi- tion can readily be controverted by well-known examples. Grote, the historian of Greece, one of the finest classical scholars of the day, was a merchant and banker until nearly fifty. Roscoe, the author of several excellent his- torical works, and a finished scholar, was a prominent Liverpool shipping merchant. Sir John Lubbock, whose name is well-known for his scholarly productions, is a shrewd and money-making London banker. There are, it is true, habits often connected with col- lege life which are unfavorable to business success ; and so there are with most positions. But the youth who trains himself on just principles will not be injured. Statistics prove that a larger percentage of young men who enter counting-houses are ruined by dissipation than of those who enter college. A strictly commercial education gives an early practi- cal acquaintance with details, an insight into values, a familiarity with men and things, readiness and tact, all 28 EEQUISITES FOB SUCCESS IN BUSINESS. admirable advantages. These are obtained at the expense of the thorough mental development which classical and mathematical studies impart, and which, after all, is in the majority of cases their most precious return. The mind which is thoroughly trained in youth retains that training throughout life, and can apply it to any depart- ment of knowledge, practical as well as theoretical. It can learn more easily, and use its learning with better effect than the uncultivated intellect. Once while travelling in the Adirondack Mountains, my guide, a hunter who had passed his life in the woods, observed to me that the better educated a man is, the quicker he learns the mysteries of wood-craft and the arts of the trapper and fisherman. So it is in busi- ness. The more extended one's early education is, the more readily can he acquire the principles of practi- cal life. Lord Bacon, a shrewd and almost self-made man, regretted that there was in his day no book which taught how to do business ; " for," says he, " if books were written of this, as of other matters, I doubt not but learned men, with small experience, would far exoel men of long experience without learning, and out-shoot them with their own bow." With this opinion the young reader will do well to concur, and make it his rule not to neglect any opportunity to acquire all sorts of useful knowledge. USEFUL STUDIES. 29' COMMERCIAL COLLEGES. In every city of the United States will be found a -Business or Commercial College, if not several of them. The course of instruction lasts usually three months, and comprises hand-writing, correspondence, book-keeping by single and double entry, practical forrns, the princi- ples of shipping and commission business, banking, brokerage, commercial arithmetic, etc. Of course in that period it is impossible to obtain more than a gene- ral, not to say superficial acquaintance with these branches. Nevertheless, even this is of much value, and every young man should take such a^ course,- when it is possible. Most colleges are open in the evenings, so that persons occupied during the day are not deprived of an opportunity to attend. These colleges have not escaped criticism. They have Jbeen charged with seducing young men from mechanical and agricultural pursuits, and flooding the cities with a surplus of clerks and book-keepers, unwilling to do real work, and unable to live as gentlemen. Too often, indeed, graduates of such institutions come .forth with exaggerated notions of their own capacities for business, and a secret or out-spoken contempt for less elegant pursuits. The former will soon be worn off by attrition with others, but the latter almost infallibly leads to idleness, frivolity, and poverty. Every young man ought to understand that a business 3* 30 REQUISITES FOE SUCCESS IN BUSINESS. college does not teach a business. It merely instructs him how to keep a record of one. To be a book-keeper or clerk, is not to have a business, and should not consti- tute the ambition of any one. A course at such a college, is an excellent means of acquiring practical information, but it is not an end. A youth should have some definite branch of commerce or agriculture, some profession or trade, steadily in view ; and never consider book-keeping in itself a business, unless he has very peculiar talents for it. He will do well also at the outset of his career to learn once and forever, that all honest labor is honorable, and none more honorable than another. False pride in this respect lowers the one who manifests it far deeper in the opinion of all sensible men and women, than any labor he may be seen engaged in. The clerk who is " above carrying a parcel," will probably never get as high as the counting-room. Never leave anything undone which you see ought to be done, because you are too proud to do it ; even if it is blacking the stove, or sweeping the gutter in front. Astor, when not yet rich, one day bought a bale of furs from another merchant. The latter inquired when he would send for them. "I'll take them myself," said the future millionaire, shouldering the bale, and starting down Broadway. " There goes a man," said the merchant to his partner, who long after- wards related the anecdote, " who will make his way in the world." WHAT SPOILS THE MEMORY. 31 The young man who resolutely sees nothing deroga- tory in any of his duties, has made a grand step toward success, and if he is occasionally jeered by his compan- ioiiSf he may be sure it is but " the contempt of the con- temptible," and the time will come, when they will cringe to him whom they now try to ridicule. SPECIAL POINTS IN A BUSINESS EDUCATION. The more general knowledge one can acquire, the better, for it will turn to advantage in hundreds of cases where we least foresee it. More than this, it gives, when kept clear and ready for use, as it should always be, and not heterogeneous and vague, as it too often is, a most serviceable training to the memory. This faculty, always useful, is preeminently so to the business man. It must not only be retentive, it must also be quick. Both these qualities can be acquired by practice. IMPEOVING THE MEMORY. For this purpose, various systems of " mnemonics," as they are called, or artificial aids, have been devised, none of much worth. Desultory reading injures the memory, such as long and empty newspaper articles, novels, etc. Whereas by confining our reading to matters worth remembering, and when we have finished, making an effort to recall the points passed over, going back to the text if we are not clear about them, we can soon acquire a habit which will 32 REQUISITES FOE SUCCESS IN BUSINESS. prove invaluable. In reg,ding a business letter, we should aim to take in clearly every part as we proceed, so that in replying, we can rely confidently on our memory, thus saving the loss of time in perusing it a second time, or the possibly greater loss of leaving a portion unanswered. Dates and other figures, because they are not associated as ideas are, are more difficult to recall, but in business, often of vital moment to have fresh in mind. Superior ability in remembering prices and their fluctuations has been the secret' of more than one instance of brilliant success. It," too, is a matter of practice and training ; and if the reader will diligently try to bear in mind and recall daily the prices of stock or goods, first for one day back, then for two, and so on, he will soon astonish him- self by his proficiency. When you read figures, do so carefully. I onCe knew three merchants who lost respectively three hundred, six hundred, and two hundred dollars, by not attending to this. How many readers can tell the sum of their losses without reading the sentence again, in spite of the warn- ing at its commencement ? Let this guard them against more serious oversights in future. Nearly as difficult is it for many people to recollect names. How often do we have to say, and hear others say, "Your face, sir, is quite familiar to me, but I must ask your pardon that I can't recall your name ? " Now, this is never agreeable to the person addressed. No matter A FOETUNATE FACULTY. 33 how sensible we consider ourselves to be, and no matter how well we know that we forget similarly ourselves, our vanity is always a little wounded, and we_ unconsciously think that at any rate he might have remembered me. If we came intending to buy a bill of goods, it is very possible that we will conclude to " look elsewhere before buying," which means that a seller with quicker memory will get our custom. On the contrary, it makes a highly agreeable impression when a man who has not seen us but once or twice, and who is not expecting us, meets us promptly as we enter his store with, " Why, Mr. , how do you do? Glad to see you. When did you leave Alexandria?" We feel at once that we struck that man's attention, and have occupied his thoughts since we met. He appreciates us at the proper figure. I wish to impress this point very urgently on my younger readers, for they will find it of more money value than they can now estimate. They will ask how to acquire this readiness. Like the others, it is easily acquired by a few minutes labor a day, together with a habit of- observation. When introduced to a person, always ascertain the name distinctly and its orthography. Such attention is rather gratifying than otherwise, ■whereas to mis-pronounce a name, or to spell it falsely, is with many an unpardonable sin. Then, in conversation, make it a rule to notice your new acquaintance closely, fix his features clearly in your mind, and note the sound 34 REQUISITES POR SUCCESS IN BUSINESS.. of his voice, and any peculiarity of gait or demeanor. Afterwards, when you write his name on your books or in a letter, summon up his features and peculiarities in connection with it. Go over your list of customers occa- sionally with this object in view, and associate each with his residence. The habit you will thus acquire will soon' become mechanical, and in time you may rival Mithri- dates, the ancient king of Pontus, who had gained such proficiency in this respect, that he could address by name every soldier in his army of 30,000, men. CORRESPONDENCE. To write a fair hand, of medium size, easily legible, not too ornate, is rightly esteemed in all the occupations of life. It can only be acquired under the direction of a competent teacher, and then by practice. There are some points, however, not directly in the sphere of the writing-master, to which I must call attention. Business correspondence cannot be too thoroughly studied by the aspirant to wealth. Many a profitable connection or position will be lost by writing a slatternly letter ; while many a fa'vorable point will be gained by a neat, well-worded, well-spelled communication. Such externals are by no means trivial, and they have paved the road to fortune for many a man. They are rightly considered to indicate the general tenor of the mind and habits. The late Mr. Shipley, of Brown, Shipley & Co., LETTER-WEITJNG. 35 Philadelphia, New York, and Liverpool, was a clerk in the Philadelphia house. The Liverpool branch noticed how admirably his letters were written, and had him transferred to that city, where he rapidly rose to a part- nership, and retired with a fortune of $800,000. The mechanical execution of a letter should first be studied. It should be plainly and regularly written, and carefully punctuated. The latter is too often neglected, and has given rise sometimes to ludicrous, sometimes to serious . errors. The received authority is "Walker on Punctuation," which work ought to be in each business library. ( See List of Books at the close of this volume.) Be especially careful to write figures so plainly that there can be no mistake or misconstruction about them ; always insert the comma between thousands, and the decimal point for cents, thus : 1654,000.00. The spelling should be accurately conformed to one or the other standard dictionaries. Webster's Dictionary is preferred in the Central and Western States, Worcester's in New England. One of these should be in every busi- ness establishment. English orthography is difficult, arid some guide to it should always be at hand, and used whenever there is any doubt. The rules of grammar should be thoroughly learned, and strictly observed. Violations of the laws of language show conclusively, either that the writer n^lected his' 36 REQUISITES FOE SUCCESS IN BUSINESS. studies when at school, or else that he had a very defi- cient training. In either case, the impression his cor- respondent receives is not a favorable one ; for he who shirked his duties as a boy, and has not energy enough to repair the damage he thus received^ is not likely to be an energetic business associate. A good English grammar should be in every library. The recent one by Professor Thomas W. Harvey is the best for this purpose that I know. (See List of Books at the end of this volume.) As for style, the more brief, plain, and straightforward a letter is, the more highly is it to be commended. Any attempt at ornateness, or literary flourishes, is quite out of place. I have -seen business letters interspersed with quotations from Shakspeare and scraps of poetry. Much as I admire the great bard, I mentally at once wrote their writer down an ass, and so will most who receive such epistles. Equally objectionable is any word or phrase in a for- eign language, except such as are current in business. William Cullen Bryant says that he never met a foreign expression that has not its equivalent in English, and to use one, therefore, indicates either ostentation, or a want of control over one's own tongue. THE USE OP FIGURES. It should be the ambition of every young man to become an expert accountant. The advantages which the rapid and accurate calculator has over his slower LABOR-SAVING STUDIES. 37 rivals is measured by dollars and cents in every-day transactions. Very many of the ordinary calculations of the store, shop, or office can be performed by m,uch simpler rules than those taught in the school arithmetics. Addition, multiplication, interest, etc., are all capable of being abbreviated, and the aggregate amount of time thus saved adds largely to the working hours of a year. In the second part of this volume, I have collected a num- ber of these rules, such as are most practically useful, and widely applicable. They should be thoroughly mastered. The higher mathematics often come into play in the problems of life insurance, house-building, road-making, etc., and by the use of algebraic symbols tedious calcu- lations can sometimes be greatly abbreviated ; but these are branches which it is not my purpose to treat of. Few business men understand the value of logarithms. I know an eminent merchant in Philadelphia, who always has a book of logarithmic tables in his counting- room, and uses them constantly in shortening his exten- sive calculations. By such a wise expedient, that most precious of all things, time, is saved, and also a degree of accuracy secured, which is out of the question in lengthy multiplication and division. His example may be com- mended to all my readers. A few evenings' study will render them perfectly familiar with the use of the tables. 4 38 EEQTJISITES FOE SUCCESS IN BUSINESS. GEOGRAPHY. The dealings of many commercial houses are with for- eign and distant lands.. An accurate acquaintance with their location, resources, productions, customs, etc., will often suggest hints for profitable ventures, or enable the merchant to save himself from a loss. Such knowledge is desirable ; but it is indispensable for every one who aspires to any extended traffic or speculation to be thoroughly acquainted with the geogra- phical featiires of the United States and Canada. He should not rest content with hunting up a place on a map, when he has some goods to ship thither. He should buy the best text-book of geography (perhaps the best is No. 3 of the Eclectic series of Geographies, published by Wilson, Hinkle, & Co., of Cincinnati), and learn the principles of the science, and the surface features which decide the course of commercial and agricultural prosperity (beautifully illustrated in the work referred to). It is not merely that he may mark boxes and address letters correctly that he should do this ; but raising his mind above the petty transactions of daily business, that he may understand why the great commercial and manufacturing marts, the transportation lines, and the leading local industries are situated where they are ; and, looking ahead, that he may calculate from these known facts, where in the future the centres of business activity will be. DEFINITION OP RASHNESS. 39 Their present locations are not fortuitous, but the con- sequences of fixed laws ; and it is no idle employment to study these laws, for how else are we to judge of the value of new railroads, proposed sites, projected manu- facturing locations, and land ? Many who thirty years ago made this their study, invested their money where it has made them immensely wealthy. DECISION OP , CHAEACTEE. Passing from ordinary branches of education, we next come to one which is of the utmost consequence to dis- tinguished success, that is decision of character. The timid, uncertain, wavering man is' never one who achieves distinction in active life. Rashness is just as much astray. True decision of character is the power of making up one's mind promptly on a course of action, when all the facts obtainable are collected and considered. Rashness is to decide without taking the trouble to collect or to weigh the facts. The latter is inexcusable folly, and will sooner or later bring serious trouble. The timid man does not make up his mind, either because he is anxious to have more facts than he can get at the time he ought to decide, or else, with all the facts he wants before him, he feels himself incapable of • promptly estimating their relative weight. Sometimes this weakness is natiu-al, but more frequently, it is a bad habit which should be broken up. I would recommend 40 REQUISITES FOE SUCCESS IN BUSINESS. the young reader to peruse carefully Mr. John Foster's Essay on Decision of Character, one of the most instruc- tive, and at the same time, one of the most perfect pieces of composition in our language. It contains a masterly description of this invaluable trait, with suggestions for its cultivation. The habit of asTdng advice may here be spoken of. If it is done for the purpose of pleasing an elder, or with the intention of securing additional knowledge about an undertaking, it is laudable. But if it is with the inten- tion of accepting the decision of the person a.sked, in reference to facts no better known to him than to the inquirer, it is an injurious and unworthy proceeding, prompted by timidity or by laziness. Make up your own mind, follow out what you deem the wisest course, and take the consequences. Accept thankfully all the information you can, but, to use what approaches an Hibernicism, my advice is not to ask or take much advice from others. SECRECY. One day a young man who was ambitious for a large fortune determined to visit Commodore Vanderbilt, the great " railroad king," and learn from him the secret of accumulating wealth. He entered the magnificent apart- ment of the millionaire, with whom he had some slight acquaintance, stated his errand, and asked him on what mysterious principle he conducted business with such THE millionaire's MOTTO. 41 unexampled success. The rich man eyed him a moment to sound his motives, and then slowly replied : " By working hard, and saying nothing about it." The answer was an admirable one, including the two traits of industry and secrecy. The latter is always ser- viceable. If business. is brisk, it will only stimulate competition to boast of it ; if dull, the less said of it the better. The man who frequently talks of the money he is making, may well be suspected of supporting his credit by words because it needs it. The physician who is often complaining that his numerous patients leave him hardly time to eat or sleep, is apt to be a relative of Dickens' immortal Bob Sawyer. While he who discloses his plans will soon find some who take advantage of his confidence, while they despise him as a babbler. HTDTJSTEY, To which the first part of Mr. Vanderbilt's maxim referred, is such a well-known virtue that we need hardly speak of it. It applies to hours in business and out of business. It means not only to perform all required work promptly, but to occupy spare moments usefully, not^o be idle evenings, to rise betimes in the morning, and not to fritter away holidays. An employee should not confine himself to his mere obligatory duties. He should be ready to work sometimes over hours or in other departments, if it is desired of him. "Willingness to worh is one of the finest qualities in a character. 4* 42 REQUISITES FOE SUCCESS IN BUSINESS. PUNCTUALITY. As the object is>-to do the utmost amount of work in a given time, whatever saves time should be assiduously cultivated. Punctuality is therefore essential. In keep- ing an engagement, strive your utmost to be exact, not much before, and not at all after the hour. Even when recreation and not business is the matter of the apipoint- ment, do not relax. Many a pleasure party is spoiled by the procifastinationr of a few ; many a dinner is eaten cold owing to dilatory guests. Do not postpone what ought to be done at once. Talleyrand used to say the secret of diplomacy is never to do to-day what can be put oif until to-morrow. This maxim does not suit in business. Its more familiar form must still be upheld. CIVILITY. It is strange how many men let their tempers cost them every year nearly as much as their families do. There is no more certain plan for limiting and deteriorat- ing your business than to be irascible and discourteous. Civility costs nothing and pays enormously, yet not one man in ten but loses more or less every month by his neglect of it. I could name several once prominent merchants whose failures are directly traceable to their quarrelsome dispositions. Such examples are far from rare. Let every young man, therefore, determine to con-" THE FOLLY OF SURLINESS. 43 trol his temper perfectly, and under all circumstances exhibit a kindly and polite bearing. It is not enough that it should be manifested to friends and customers. , There are many opportunities for the merchant to enlarge the circle of his friends by leaving a favorable impression on the minds of chance comers. Strangers frequently call into stores to get some informa- tion which is interesting or beneficial to themselves, and this is a golden opportunity. A' shrewd, polite man will invariably satisfy their inquiries with manifest good will, to. the best of his ability — a fool will invariably think ' himself too busy, when there is no immediate prospect of gain. Some who are courteous to all whom they think may be customers, are rude to their subordinates and em- ployees. This is never necessary. One may be unflinch- ingly firm, yet withal not uncivil. Many dealers betray their annoyance when a person examines their goods and does not purchase. Several times in my own experience I would have returned and purchased a bill of goods at a store, had not the dealer shown a want of courtesy when he found I did not at once' buy. Every pettish, surly man thus loses hun- dreds, and often thousands of dollars of sales annually. Politeness has no identity with foppery, servility, or affectation. These are its counterfeits. The choice of any particular mode of displaying courtesy is a matter for the exercise of iadividual wisdom. Polite 44 REQUISITES FOR SUCCESS IN BUSINESS. men have not always the most finished manners, nor are those who have the latter always polite. In forming the manners, what is borrowed from study or observation must be adapted to the natural character, or it will not sit well. It is, finally, a manly trait. It does not mean " To crook the pregnant hinges of the knee, That thrift may follow fawning ;'' but to treat every one with the same consideration which, in their position, we would wish shown ourselves. INTEGRITY. All the books of "Advice to Young Men " abound in variations of the old proverb that honesty is the best policy, while very few care to carry it out in its strictness in actual life. There is a distinction to be made. It is useless to ignore the fact that in nearly all branches of commerce there are species of frauds, " tricks of the trade," which are actual deceptions so far, as the customer is concerned, but which are universally recognized " in the trade." Most so-called kid gloves are not made of kid, but of split sheep-skins ; nearly all " pure rag paper " contains wooden fibre ; there is probably not a gallon of oil of amber in New York city, though what professes to be it is to be had in every drug-store. Such instances are liter- ally innumerable. Now, it is difficult to insist that such deceptions must not be practised, as it seems impossible SOME DELICATE QUESTIONS. 45 for business to be carried on without them, as matters now stand. Again, many moralists insist that a person has no right to take advantage of the ignorance of another, and thus buy articles below, or sell them above their value. Apply this rigidly, and all speculative traffic would cease, for the only principle on which it is founded is that through early or exclusive information a person believes that values have really changed, though others are still ignorant of the fact. I shall, however, not enter into the discussion of these questions of casuistry in mercantile ethics, but speak of integrity and truthfulness as personal qualities. As such, all must grant they have a very high busi- ness -value. A thoroughly honest clerk can always com- mand a better salary than one of equivocal habits. A merchant, wholesale or retail, who has a reputation for integrity, attracts a considerable custom by that alone. He can, when he requires it, control large amounts of capital, and if he is always found to be " a man of his word," he is soon chosen for responsible and well-paid positions. Dishonesty, duplicity and falsity of chara,cter are busi- ness mistakes. If by a dishonest act a man makes some hundreds, or some thousands of dollars, and tarnishes his good name, he discounts heavily his future gains, and will generally in the end be the poorer man. Nothing is more common, or more fatal than the grasping of an 46 REQUISITES FOE SUCCESS IN BUSINESS. advantage at the cost of ten times its value ; and he who has traded out his neighbor'-s good opinion is pretty cer- tain to die a poor man, however high the price for which he sold it. Vainly shall a man hope to live and thrive by buying and selling after his neighbors, his customers, have learned by sad experience that his word is not reli- able — that his representations of the cost or quality of his wares are not to be trusted. ECONOMY. A common saying among business men runs to the effect that it is easy enough to get money, but very hard to keep it. There is much more truth in this than ap- pears at first sight. Could one only keep the money, he receives, how easy it would be to become wealthy ! Sup- pose a clerk commences at twenty years of age on a salary of a thousand dollars a year, all of which he saves andv puts out at seven per cent, interest ; he can retire when fifty with well nigh a hundred and twenty-fiye thousand dollars securely invested ! The true secret of wealth is acoumulation. The con- stant dinning of economy is a trite and imwelcome theme. Companions, " good fellows," and vain wives vote it peculiarly disagreeable." Were the latter wise, they would applaud and encourage it, for the frugal husband is a sober and faithful spouse, while the spendthrift rarely is either. There are three channels which carry away most or all WASTING MONEY. 47 of' the profits of business unless carefully hemmed in, — ^personal expenses, family expenses, useless business ex- penses. They must each be determinately limited, if a secure financial position is hoped for. The tendency of the day is especially to increase family expenses. A handsome house with a mortgage on it, ele- gant fiirniture, servants and a carnage, are what thous- ands long for, and possess themselves of at the earliest opportunity. The wish of all is " to enjoy life," to keep up " a position in society," and to rival some wealthier neighbor. If such objects are to be pursued, the young man may as well at once abandon the hope of obtaining a competency, and reconcile himself as soon as may be to the prospect of remaining all his life a harassed drudge, sacrificing real comfort and solid returns to empty show, and engaged in an unending struggle to pay his yearly expenses. While I urge, and cannot too strongly urge, the ob- servance of a rigid economy as the fundamental maxim of business, let no one suppose that niggardliness and a miserly disposition are commendable. They are serious practical mistakes. Often a judicious liberality, even a lavishness, repays well. John McDonogh, the New Orleans millionaire, said one day : " This is what many people do not understand ; I mean the spending of money judiciously. They are afraid of spending money. , A man who wishes to make a fortune must first make a show of liberality, and spend money in or:'.er to obtain it. 48 EEQUISITES FOE SUCCESS IN . BUSINESS. By a dinner which I once gave to the Spanish authori- ties, I obtained their good-will and esteem, and was enabled to make a large sum. To succeed in life, then, you must obtain the favor and influence of the opulent, and the authorities of the country in which you live. This is the first rule." He might also have added the good opinion of the public by generous gifts to the unfortunate, and to lau- dable undertakings. Not that this motive alone should prompt such good actions, but if you have no nobler motive, do them then for this one. An accurate acxjount of personal expenses should be kept. For this purpose a narrow slip of paper and a pen- cil can be kept in the pocket-book, and each expenditure and receipt jotted down as they occur. Every evening the account should be transferred to a niemorandum-book, which should be balanced weekly. PEESONAL HABITS. Without being open to the charge of bigotry, I must most strenuously urge every young business man to ob- serve strict temperance, in fact total abstinence from alco- holic drinks, including ale, beer, and the whole list of intoxicants. It is statistical truth that no single cause leads to more disasters than the use of liquors — not neces- sarily through drunkenness, but the enfeebling of the judgment, which even a mug of ale or a glass of wine will produce; or else, the depression, irritability, and DRESS AND AMUSEMENTS. 49 nervousness which follow an indulgence over night. There is positively no safety but in an absolute prohi- bition. Smoking or chewing tobacco is offensive to many peo- ple, and does not look well in a place of business. If such useless habits are indulged in, let it be after hours, and not in or about the office or store. Swearing and the use of indecorous language leave a bad impression on the hearer ; and though he may laugh at an equivocal story, he will not be moved to confide an important transaction to the narrator. Amusements and recreations should be as diverse as possible from the routine of business, in order to give both mind and body a change. If the employment is sedentary, out door sports, walking, rowing, riding, gym- nastics, cricket, etc., suggest themselves. If it is active and laborious, indoor games, driving, etc., will be more healthful. Billiard-playing and bowling are too closely associated with heated, badly-ventilated rooms, drinking saloons, late hours, and doubtful companions, to be well thought of in business circles. In dress, be neat and unobtrusive. The perfection of dress is to be so perfectly in keeping with your occupa- tion that the attention of an observer is not directed to it at all. Foppishness is despised by practical men ; and so also is any eccentricity of costume or deportment. Slovenliness is repulsive, and always needless. A proper respect should be had to the prevailing 50 REQUISITES FOE SUCCESS IN BUSINESS. prejudices of«a community, even though they are foolish. This can be done without any sacrifice of independence, and is often of much moment. When I was young, a man in the community where I was living who wore a mustache was regarded as erratic in mind and indecorous in appearance. If he depended on public favor for his support, it operated strongly against him. "What folly, out of obstinacy, or a short-sighted love of independence, to cultivate the useless appendage under such circum- stances ! The question is often asked whether it is a business advantage to join one of the numerous secret mutual aid societies, the Masons, Odd Fellows, etc. I frankly state my opinion, founded on the observation of the history of many business men, that the young man does better who holds himself entirely aloof from every secret society. They demand more time, more money, and more attention than they will ever repay, nine times out of ten. They often lead to acquaintances and social habits of an inju- rious character; and if the time, money, and thought consumed in them be employed on schemes of business, or in the acquisition of available learning, they will pay a hundred-fold what these societies will. My opinion, indeed, may not count for much vnth some, for I have fol- lowed the advice here given, and never joined these asso- ciations. But study of the world has convinced me that a well-filled purse is a true, unfailing friend, and he who sees to providing this will be better cared for thaji if he WHAT TO AIM AT. 51 belongs to all the mysterious societies, with high-sound-, ing titles and gaudy uniforms, in the world. HEALTH. " Give me health and a day," says Emerson, " and I will envy no emperor." Vigorous health is generally to be secured by a proper care of our persons, and an obser- vance of sound hygienic laws. All appreciate its value, few take the trouble to maintain it. The reader will do wisely to learn the various causes of disease, and the rules of healthful living from some approved popular book on that subject, such as some that I shall mention in the List at the close of the volume. CONCLUDIISTG EEMAEKS — THE OBJECT AHEAD. The youth who is eagerly looking forward to his future career should not make great wealth, but a oompe- tency, his aim. His object should be to win, " the glorious privilege Of being independent." Eagerness for enormous gains too often defeats itself. Immense profits involve immense risks. There is time enough to think about the hundreds of thousands, when the tens of thousands have come in ; time enough to count up the tens when the single thousands are made. A man's business vigor is from twenty-five to fifty- five ; and in those thirty years, patient toil, careful expen- diture, and judicious investment will secure to every one enough to rest upon the remainder of his days, should he feel so inclined. OUR GREAT MEN. CHAPTER II. niTLES FOE COMMENCING BUSINESS. Choosing a business — Tlie man, not the business, makes the money — . Getting a situalion — Early business life a school — Aim at a speci- alty — " Speciality ill' pumpkin pies " — Do not cliange your Ijusine.-s — Rights and duties of an agent — Obey orders — Avoid liability — Forming a partnership — Why you should be cautious — Wliat partner mil to choose — Sleeping and special partners — Risks they run — Buying a business — Beware of " magnificent opportunities " — What the goodwill of a business is — How to secure it — AThat a'c business profits? — " Luck" in business — Rothschild's maxim — How a man buys " lucky " lottery numbers — A dangerous habit of mind. 't HE once favorite theory of political economists, that there is any danger of over-population, has been exploded by a closer study of social lavs. '^' It is now recognized that as population increases, proiitalde occupations increase in jiroportion, the soil is 52 GO TO WORK. 63 rendered more productive, facilities of transportation are multiplied, and the most densely populated countries generally are those where most real comfort is found. There is therefore in this country a large and a con- stantly increasing number of profitable avocations, and if the young man has a difficulty in it is because of the abundance, and not the lack of them. It has long been my opinion, and intercourse with the world does but coniirm it, that selecting an occupation is of less importance, than most writers and other persons believe it is. Almost every business in the United States is capable of being extended indefinitely by energy, tact, and work. The young man who will succeed in one, will not be less successful in another. The qualities which win victory are alike in all, and it is far better that he " put his hand to the plough " at once, than to be hesitating and idling for months making up his mind " what he shall be," and Micawber-like, " waiting for an opening." Whatever business he sees an opportunity of entering with fair advantages, he should make up his mind to adopt at once and permanently. Special intellectual powers in any one direction are rarely found, but where they are, the man's occupation is decided by nature, and it is the duty of parents and iriends not to thwart him. Extraordinary mechanical ingenuity is out of place in the counting-room or the 5* 54 RULES FOB COMMENCING BUSINESS. school-house. Louis XVI. was aTnatural locksmith, in which trade he Avould have succeeded admirably, but having been forced to be a king, his kingdom went to destruction and he with it. His family tried their utmost to prevent Garrick going on the stage ; if they had succeeded, they would have gained an indifferent barrister-at-law, and the world would have lost the finest actor that ever lived. Such instances are the exceptions. "We happen to hear of them often, because these rare gifts always lead to renown. GETTING A SITUATION. The first step in commercial life is to get a situation in some mercantile house ; or if it is a mechanical pursuit which is selected, in obtaining a place to learn a trade. This may be done by personal application, or by letter. If the latter plan is adopted, write and address the letter in your own hand, let it be brief, and include your references. Trades in this country offer more stable means of subsistence than merchandising, and the country would be better off did more young Americans devote their energies to them. They also offer equal probability, if not greater, of extensive gains, for the intelligent appli- cation of science to the useful arts is one of the most certain roads to prosperity. Few employments pay the learner sufficiently to meet his necessary expenses, his board, washing and clothes, ROOM FOR ALL. " . 55 even with close economy. This should not discourage him. He must regard two or three years in such a situ- ation as part of his schooling, and consider himself fortu- nate in having the opportunity of instruction at so cheap a rate. Parents should take the same view, and inquire less how much salary their sons will receive, than how much business information they can have the opportunity of acquiring. We are constantly told of the crowded condition of business, and that there seems no room for new comers. The expression is altogether erroneous. Tli^re is not only plenty of room in every business, but an urgent demand everywhere for the right hind of men. Drones and weaklings are always in excess ; but whoever is willing to do honest, hard work, is always welcome. AIM AT A SPECIALTY. I will now give a hint which if well-considered will be worth gold to the reader. If one studies the laws of the increase of occupations which I above referred to, it will be seen thai their growth arises from a constant tendency of parties to start specialties, to keep a particular line of goods, at first more prominently in a general stock, and soon exclusively. Business men, like farmers, are more and more con- vinced that the smaller the field the more thoroughly and profitably can it be cultivated ; and they 'also observe that the man who fully understands his branch of busi- 56 RULES FOR COMMENCING BUSINESS. ness is enabled to select a new specialty in which he can, by giving it undivided attention, undersell all competitors, or, if skill is in question, exceed them all, and thus make a rapid fortune. Any number of examples could be given of this. Thirty years ago every wholesale drug-house kept paints and oils, hatters' findings, and dye-stuffs, as part of its regular stock. Soon special houses opened in these lines, and were enabled to sell them at so much better terms, by devoting to their purchase and preparation their whole time, that now few general drug-houses keep them. Patent medicines are now also leaving general druggists, and being sold by separate houses. My hint, therefore, is, that whatever business a young man enters, he should familiarize himself first with all its general principles and details, both by inquiry, experi- ence, and reading, and then that he should be on the alert to notice any rising demand for special articles or peculiar skill. As soon as he sees this opportunity, let him apply all his knowledge to this one point, and increase his familiarity with it to the utmost. He is soon ready, by this means, to step into a business which requires a minimum amount of capital, in which he has none or few competitors, and which, by thus gaining a start, he can control for years. Fifty years ago the specialty of dentistry was unknown. Now the dentists command the largest incomes of any professional men, and furnishing dental supplies is a THE OLD LADY OF PARIS. 57 leading branch of manufacture. To take a much hum- bler example, I knew, and many other Americans will remember, an old lady in Paris who derived a handsome income from her " 8peoialiti de pumpkin pies," as her sign read. ON CHANGING BUSINESS. The only change in his business which a sound man will make or want to make, except under unusual circumstances, as peculiar talents, bad health, accession of fortune, etc., is of the kind just described, that is, to enter into new but allied iields of occupation. When you learn that a man has first tried one, then another avocation quite dissimilar in nature, or even when you hear a middle-aged lawyer, we will say, regret- ting that he had not chosen the medical profession, or a professional man wishing that he had " gone into business " when young, you may confidently set them all down as failures. The successful man, though he may grumble a little at what he thinks the peculiar hardships of his lot, never regrets that he has made his fortune, nor that he chose the right means of doing it. Even the possession of peculiar talents should not tempt one too strongly to for- sake a business once learned ; in most instances there is field for all talents in every occupation. The gifted mechanician, if a farmer, may apply his talent to agri- cultural implements, if a lawyer to patent cases, if a doctor to surgical instruments. Such instances are, how- 58 RULES FOE COMMENCING BUSINESS. ever, rare exceptions. Many imagine they are in posses- sion of unusual powers, when they only have unusual self-conceit. EIGHTS AND DUTIES OP AN AGENT. The system of agencies has received enormous enlarge- ment within the last ten years. Every newspaper con- tains calls for them for the sale of all descriptions of merchandise. Very many young men receive their first practical instruction in life in this capacity; and an excellent school it is, soon rubbing off the shyness and sensitiveness which are too often drawbacks to success. I would recommend every young man, even if destined for a trade or a profession, to try his hand a while at selling books or patented articles, or soliciting insurance risks. Every agent should know what his legal rights and duties are, so that he may insist on the former, and observe the latter. Agents are commonly distinguished as of two kinds, general and special. By a General Agent, is meant one appointed to transact all his princi- pal's business, or all his business of a particular kind. A Special Agent is constituted for a particular purpose, and acts under a limited and circumscribed authority. Commission merchants are general agents, whereas one who sells a special article, comes under the last mentioned designation. The first duty of every agent is to act in strict con- WHAT AGENTS MAY DO. 69 formity with instructions — to obey orders. When the instructions are not direct and specific, the understanding is that the agent is to act according to the recognized usages of that branch of trade. If goods are consigned on sale and no price fixed, it is to be understood that the be^t market rates are to be obtained. Goods consigned must be cared for with the average prudence that a man bestows on his own property. It should always be dis- tinctly stated whether or not the goods are to be insured. The agent who remits money should do so by the safest plans, otherwise he is. liable; and in case he does not make correct or honest returns, he is guilty of the crim- inal charge of " larceny as bailee." The principal is bound by the action of the agent to an extent beyond the orders given, in many cases. One Avho is employed to get a bill discounted, may, unless expressly restricted, indorse the bill in the name of his principal, if an indorsement is necessary to convey his employer's title. A servant authorized to sell a horse, may warrant him, unless forbidden; and it is not neces- sary for the party insisting on the warranty, to show that the servant had any special authority for that purpose. But the agent, unless he is careful alwayg to disclose and put on record his character as agent, may make him- self liable on an obligation. Every agent should communicate frequently with his principal, and report to him full particulars of his trans- actions. 60 ETJLES rOE COMMENCING BUSINESS. FORMING A PAETNERSHIP. [For Forms of Articles of Copartnership, see Part II.] Often one of the earliest steps in business is the forma- tion of a co-partnership. This should not be done with- out a careful consideration of the nature of the bond thus assumed. Many a man has lost his capital and his oppor- tunity of fortune through heedlessness in the choice of a partner, or ignorance of the nature of partnership. A participation in the loss or profit of a concern, or representations that a person is a partner, constitute in law a responsibility as partner, whether there is any agreement to that effect between the parties or not. For instance, a patentee who agrees to take as a royalty twenty per cent, of the net profits would be to some intents a constructive partner. The utmost care is required in drawing contracts of this nature, that one is not led into responsibility without knowing it. It must be borne in mind that any one partner can buy and sell partnership effects, and make contracts in refer- ence to the business of the firm, and pay and receive, draw and indorse, and accept bills and notes; and the- firm is answerable for the whole amount of the partnership ft debts, without reference to the proportion of his interest, or to the nature of the stipulation between him and his associates. The act of one partner, though on his private account, and contrary to the private arrangement among them- WHAT A PAETSEE CAN DO. 61 selves, will bind all the partners if made without the knowledge of the other party to the arrangement, and in a matter which, > according to the usual course of dealing, has reference to the business transacted by the firm. In all contracts concerning negotiable paper, the act of one partner binds all ; and this, even though he signs his individual name, provided it appears on the face of the paper to be on partnership account, and to be intended to have a joint operation. * One partner may pledge as well as sell the partnership effects in a case free from collusion, if done in the usual mode of dealing, and it has relation to the trade in which the partners are engaged. And if one partner acts frau- dulently with strangers in a transaction within the scope of the partnership authority, the firm is nevertheless bound by the contract. One. partner cannot bind a firm by deed, but, never- theless, he may by deed execute the ordinary release of a debt belonging to the copartnership, and thereby bar the firm of a right which it possessed jointly. It is a general and well-established principle, how- ever, that when a person joins a partnership as a member, he does not, without a special promise, assume the pre- vious debts of the firm, nor is he bound by them. To render persons jointly liable upon a contract as partners, they must have a joint interest contemporary with the formation of the contract. These important considerations reveal how essential it 62 RULES FOE COMMENCING BUSINESS. is to select a partner with the utmost caution. In the first place, his pecuniary condition must be considered. An insolvent man, or one who is involved and behind hand in his money matters, ought to be shunned. The difficulties with which he is surrounded will certainly impair his usefulness, if they do not embarrass his new connections, which is far from improbable. Next, his personal character is to be examined. An intemperate man, an irascible man, a sickly man, a head- strong man, a lazy man, a discourteous ma,n, and a tricky man are all and singly dangerous business associates, and the inducements ought to be of the strongest character to lead to a partnership with any one of them. The Articles of Copartnership ought to be carefully drawn up. In the second part of this book I shall give a model form, together with some legal suggestions. In reference to dissolving a partnership it is an estab- lished principle in the law that, if the partnership be with- out any definite period, a partner may withdraw at a moment's notice, wTien he pleases, and dissolve the partner- ship ; and even if the partners have formed a partnership by articles, for a definite period, it is now considered that each party may, by giving due notice, dissolve the part- nership, as to all future capacity of the firm to bind him by contract. A partner assigning his share to the other, on dissolu- tion of partnership, must — as they are joint tenants — use the word " release." It is considered that word alone , can pass the whole interest. A SLEEPING PAETNEE. 63 DORMANT AND SPECIAL PARTNERS. Dormant or secret partners are persons who are inter- ested in a business, and share its profits and losses, but who are not Icnown to the public as connected with it. If they are discovered, however, they are equally liable as if their names had appeared in the firm. Capitalists frequently advance money to persons of limited means, and become dormant partners in the business, taking a share of the profits instead of interest, and appearing as creditors in case of loss. This is illegal, and exposes them to be mulcted for all the liabilities of the firm beyond its assets, as well as losing the capital invested, no matter what agreement to the contrary may be drawn up. The capitalist who invests money in this manner must rely on the integrity and capacity of the active part- ner, for the latter virtually has him in his power. A limited or special partner is one who invests capital, but limits, by public notice, his liability to a certain amount. They are differently constituted by the laws of the various States, and the provisions of the, statutes allowing them must be strictly complied with, or the partnership will be a general and not a limited one. The following are the general provisions. There must be one or more persons who are general partners, and onei or more who furnish certain funds to the common stock, but whose liability shall extend no further than the fund furnished. The names of the special partners are not to 64 EULES FOE COMMENCING BUSINESS. be used in the firm, wliich shall contain the names of the general partners only, without the addition of the word company, or any other general term; nor are they to transact any business on account of the partnership, or be employed for that purpose as agents, attorneys, or other- wise ; but they may, nevertheless, advise as to the man-, agement of the partnership concern. Before such a partnership can act, a registry of it must be made in the clerk's office of the county, with an accompanying certifi- cate, signed by the parties, and duly acknowledged, and containing the title of the firm, the general nature of the business, the names of the partners, the amount of capi- tal furnished by the special partners, and the period of the partnership. The capital advanced by the special partners must be in cash, and an affidavit filed stating the fact. Publication must also be made, for at least six weeks, of the terms of the partnership, and due publication, for four weeks, of the dissolution of the partnership, by the act of the parties prior to the time specified in the certificate. All these formalities render special partnerships un- popular, particularly as it is this very publicity which those interested generally want to avoid. BUYING A BUSINESS. In the leading daily papers of our cities, the eye fre- quently meets with advertisements like the following, which I clip from a Philadelphia daily : A FINE CHANCE. 65 S3500 —"WANTED, A GENTLEMAN WITH " ' this amount to take the place of a retir- ing partner, in one of the finest enterprises in the city of Philadelphia, doing a handsome paying business. Annual profits from $18,000 to $20,000. This is an extraordinary chance for a man with the ' ready money. Address with real name, stating when and where an interview may be had, A..K. E., this office. What a tempting opportunity this would seem to be ! Why take the pains to work up a business for years when for such a moderate sum as $3500 one can step into an income of $10,000 a year? An inquiry as to the nature of this enterprise resulted in finding that it was a down-town bar, with restaurant attached. The $20,000 a year were chiefly prospective, sure to be received by the addition of capital and energy, efc. This is a fair example of the magnificent opportuni- ties constantly offered in the advertising columns of the papers. It may fairly be estimated that nine out of ten such offers arise from some intrinsic defect in the busi-' ness, often not discovered until too late. Many of them are by patentees in want of capital, quack medicine ven- dors who wish to advertise, and by parties who foresee that their business is undermined, and hope to escape as soon as possible. Businesses, however, vary in this respect. Some are readily transferred, and consequently often in the market. Retail drug-stores, for example, are so frequently bought and sold that there are regular agents who deal in them. One of these will have from fifty to seventy-five stores on his list at once. 6« 66 RULES FOR COJnrENCING BUSINESS. Even medical practices are frequently sold. In Eng- land there are agencies devoted to this also, but in this country I know of only one. General agencies for insurance, etc., are also bought and sold. Retail groce- ries, liquor-stores, and other small establishments can be bought. THE GOOD-WILL OF A BUSINESS. That which is purchased in such transactions embraces the "good-will," or custom which frequents the place^ the stock, and fixtures. There is a wide . divergence of opinion about estimating the value of the good-will, as well as its exact nature. The usual rule in such purchases — and'it is a fair one — is to estimate the «tock, if in good condition, at its net wholesale price, the fixtures, if still serviceable, at about two-thirds of their cost, and the good-will as equal to the net earnings for the year previous to the sale, aS shown by the books. Before buying, the purchaser should be careful to con- vince himself that no recent event has diminished the custom, that the tenure of the property is permanent, and to distinctly stipulate under liquidated damages equal to double the amount paid, that the seller will not establish directly or indirectly any similar business, witliin a limited and fixed time and distance. The latter proviso must be carefully worded, for the courts have ruled that it is contrary to public policy and will not, therefore, be supported, to bind a man not to pursue his trade or profession indefinitely. He may. A FAIR PROFIT. 67 however, be bound not to pursue it to the detriment of the purchaser of a good-will. Unless so bound, no damages can be recovered if he establishes the same kind of business in the immediate proximity, so long as he does not claim that it is the _ same business {i. e., assert that he has only removed, etc.) The good-will of a business, it is now decided, remains in a partnership ; but its exact scope has not been defined. The subscription list to a newspaper, it is clearly settled, is not to be considered its good-will. WHAT ARE BUSINESS PROFITS? Few men agree as to what constitute business profits. The columns of the Ledger are not to be trusted, as that only takes cognizance of a certain number of_ transactions, and not of all. Farmers, gardeners, ship-captains, etc., rarely include the house-rent they save among their profits ; professional men rarely charge the display essen- tial to them in certain positions as a loss. The interest which might be obtained from money on safe investment is not a business profit, and should be deducted from the net yearly gains to ascertain the latter. In estimating for a term of years, compound interest should be allowed on the principal. The rapidity with which bills are collected and re-in- vested, is a most essential point in the calculation, as I will hereafter show. In ordinary transactions 20 to 25 per cent, net, is a fair profit. This corresponds in manu- facturing often to 100 or 150 per cent, on cost. The 68 EULES FOE COMMENCING BUSINESS. more frequently capital can be turned over at this rate, with safety, the more eligible the business. "luck" in business. How often do we hear men exclaim in referring to a fortune rapidly made by some competitor : " What luck that fellow has had ! " And still more frequently do we hear them attribute their own losses and failures to " a run of bad luck." Even the great Meyer Rothschild, founder of the banking house which now has a world- wide fame, was not above such superstitions. One of his mottoes was : " Never have anything to do with an unlucky man or place. I have seen," said he, "many clever men who had not shoes to their feet. I never act with them ; their advice sounds very well, but fate is against them ; . they cannot get on themselves ; how can they do good to me ? " Gamblers, lottery policy buyers, etc., are notoriously addicted to such follies. A sensible man, who makes a decent living from a reputable business, but who dabbles in lotteries from time to time, told me his practice is, when about to buy a ticket, to rise at day-break, and take the numbers of the first three street-cars that pass his door. He thinks there is luck in it. Stephen Girard is a favorite instance for those who believe in luck. He never insured, yet never lost a house or a ship by fire or shipwreck. The accident that one of his ves- sels lay in harbor at St. Domingo at. the time of the massacre, brought him over $50,000 in unclaimed goods TRUST IK YOURSELF, NOT IN LUOK. 69 sent aboard of her. And many other such pieces of for- tune seem to have occurred to him. But whoever studies Girard's character will very soon see that the real secret of his success did not at all consist in these accidents. The consideration of either good luck or bad luck should never enter into the calculations of business. As they are confessedly, and in .their nature wholly beyond our control or fore-knowledge — "acts of God," as the transportation companies call certain misfortunes^-it is useless' to think at all about them. And it is worse than useless, it is puerile folly and obvious absurdity, to attempt by the observations of omens, times, seasons, or signs, to either avoid the blows of evil or secure the smiles of good fortune. It is notoriously true that just in proportion as know- ledge, experience, and sound mental training enable us to map out clearly and pursue resolutely our plans, the less r.nd less do we think or care about chance and luck ; while the feebler our intellectual powers, or the further an occupation is removed from the sphere of our know- ledge, the more servilely do we become, in the words of the immortal dramatist : " the slaves of chance, An'd flies of every wind that blows." This habit of mind is engendered by gambling, wild speculating, trusting to chance through ignorance or idle- ness, and by an indolent use of our faculties. We should despise and avoid it, and also the causes that bri'ng it about. e71T^li|M ^^m ^P s^^ SP^^l I^^^^^^^M ^ '^ Jl^fr ^^kuc^ ^^^^A^ ^is^^ r^^^»iL 3 la* -4^^^ ^M^ ^^^ IBI^^^ m^ B §^J ^Mu CHAPTER III. EXILES rOE CONDUCTING BTTSINESS. Personal attention — On employees-^McDonogh's motto — The selec- tion of employees — Signs of an honest man — The management of employees — Curious maxim of an English statesman — Payment of employees — Does it pay to give presents ? — Choice of a place of business — An important hint to the farmer — City or country? — Buying goods — How to make a bargain — What binds a bargain — Selling goods — The one-price system — A mistake in profits — Credit or cash ? — A startling calculation — Mercantile agencies — On em- ploying agents — The financial department — How to send money by mail — Collecting debts — A doctor's experience — ^Going security — The small loan nuisance — How to decline politely — Book-keeping — How to file letters — Insurance — Lord St. Leonards' opinion — Advertising — ^Where to advertise — How to write an advertisement — Advertising contracts and agencies. ; AVING fairly embarked in business on his own account, it now becomes of the utmost colise- quence to the beginner to use every proper means to secure success. Remember that the sole and only object of business is, to make money, in a legitimate manner, and anything whatever that conflicts' with this ought not to be allowed to influence one in strictly busi- ness relations. A man's charities as well as his pleasures should be paid from his Tiet, not his gross proceeds, and 70 GIVE YOUE OWN TIME. 71 the relations he holds with business associates should never be that of boon-companionship. The cardinal rule he should observe from the outset is to give all departments of his business his PERSONAL ATTENTION". There is an old proverb, that "the master's eyes are worth both his hands," and nothing is more certain than that unremitting personal supervision, constant vigilance as to one's own interests, do more to insure good fortune than almost any other trait of character. No confidential clerk should be more intimately acquainted with the management and condition of the concern than the prin- cipal. In large enterprises, details must of course be left to subordinates, and special branches to the partners, who have charge of them. But the course, progress, and results of every transaction should be borne clearly in mind. An acquaintance of mine, the head of one of the largest firms in Philadelphia, and a millionaire, is fre-. quently at his store by- 7 A. M., and makes an inspection of his immense establishment at that early hour to see that every employee is at his post, and attending to work. ON EMPLOYEES. Mr. John McDonogh, the wealthy merchant of New Orleans, when asked how he had accumulated so much, replied : " Life is too short, if a man is abandoned to his own resources, to acquire great wealth, and, therefore, 72 EULES FOE CONDUCTING BUSINESS. in order to realize a fortune, he must exercise his influ- ence and power over those who, in point of wealth, are inferior to him, and, by availing himself ©f their talents, knowledge, and information, turn them to his own advantage." This faculty must be developed in a high degree in those who aim at an enormous fortune ; and the ability 'to select employees with judgment, and to organize their labor in the most productive manner, is of the greatest advantage in all lines of business, from the household to the Presidential chair. THE SELECTION OF EMPLOYEES. In selecting employees, make it a rule to be governed solely by the fitness of the applicant for the post. Do not take a relatibn because he is a relation, or a friend from a sentiment of affection, and a kindly wish to " help him along," or a worthy poor man out of compassion for his situation. Indeed, while I am far from admiring or advising a lack of Idndliness, I am compelled to say that the less one has to do with relations and friends as employees, the more satisfactorily is business carried on. References should be required and closely scrutinized. Unless unequivocally good, the employee should be entrusted cautiously with the duties of his station. Much has been said and written about the analysis of character, and certain pretended sciences, phrenology, KEADING CHAEACTEE. ,73 physiognomy, etc., have been elaborated, which profess to teach it. The features, the conversation and the demeanor of a man unquestionably reveal much about his habits and capacities, but some of the most unscrupulous rascals I have ever known, those who swindled by the tens of thousands, were unexceptionable in all these respects. A shrewd man, who has been in business over forty years, tells me that he has learned no means of detecting a plausible scoundrel, other than his general bearing. One sign is infallible: the employee who is living beyond his income is either already robbing his principal, ' or soon will do so. Another is equally dependable : he who makes an unnecessary display of his religious con- victions and his honor, is already a hypocrite, and only needs opportunity to become a thief. Reject a talkative applicant. He will probably divulge your affairs, and will certainly waste his time. Prefer a man dependent on his own exertions, and with others dependent upon him. A young man who knows his father will support him if he loses his place, is less apt to work well than a married man with no resources but his salary. An even temper, a polite manner, and methodical prudent habits. can generally be recognized during a short interview. The story is familiar of the millionaire who made his fortune by picking up a pin. He was-, when young, one of several applicants for a situation in a counting-house. The merchant observed him while waiting stoop down, pick up a pin from the floor, and 74 RULES FOfi CONDUCTING BUSINESS. replace it in a pin-cushion on a desk. The action struck him as marking a careful mind ; the applicant's conver- sation confirmed the impression, and thus commenced a career which continued with constant prosperity. THE MANAGEMENT OP EMPLOYEES. Tact in the management of employees is requisite in all the higher walks of business. On its perfection depends the value to us of our assistants quite as much as on the assistants themselves. The art is tersely summed up in the curious reply of an eminent English statesman, remarkable for the multi» plicity of his pursuits and the perfection with which he performed varied and responsible tasks. When asked how he accomplished so much, he answered : " By doing nothing myself." The fault with many men is that instead of assigning their assistants specific duties, and drilling them until they are perfect in them, and then letting them work without molestation, they bustle around, find fault, and go to work themselves to complete a half-done job in the manner they wish. They are more frequently impelled by a conceited belief that they have uncommon skill, and a desire to show how handy they are in all departments, than an honest intention to teach their employees. Thus I have seen a tradesman snatch a package from an awkward clerk, and do it up himself with an air that said : " See how I tie a parcel ! " TREATMENT OP ASSISTANTS. 75 Constant interference and carping criticism are dis- couraging and injurious to employees. When their work is not as it should be, do not do it yourself, but calmly point out in what points they have failed, and have them try again. Praise them when successful, and do not insist on their acknowledging that your own abilities in their departments are hopelessly beyond the ambition of every one else. A domineering tone or manner to subordinates is a trait of a small mind, and is generally associated with a cringing obsequiousness to superiors. Courtesy is due to all, but firmness must likewise be cultivated, and every approach to a hail-fellow familiarity at once suppressed. , Needless labor should not be demanded. Some mer- chants keep their clerks standing all the time, whether there is anything to be done or not. This is a most unwise and unfeeling plan. When the body is wearied and exhausted, it is almost impossible to summon that cheerfulness of spirit which is necessary to please and be pleased. Employees should have all the rest they can get, without neglecting essential duties. Every store should have a small selection of practical works, to which those who choose can have access. It is a great advantage to business men to have educated and intelligent assistants. A bank manager, in advocating such libraries in banks, observes : " The superior knowledge of clerks is always useful ; the mental discipline they acquire improves their 76 RULES FOR CONDUCTING -BUSINESS. business habits; and, possessfng within themselves a constant source of enjoyment, they are the less likely to indulge in those expensive pleasures which are the usual temptations to neglect and dishonesty." ~ To aid in carrying out this excellent proposition, I shall append to the present volume the titles of a limited number of works, all of which will be found well worthy careful perusal by every business man. ^PAYMENT OF EMPLOYEES. Employees are paid either with reference to time or to labor, that is, either by wages or salary, or by the piece or by a commission. Which of the two is the more profitable depends on the nature of the business, and the capacity of the individual. Clerking and book-keeping are too much overrun now-a-days to be profitable employments, and from the small salaries paid therefor, the temptation to dishonesty is increased. As a rule, it is more remunerative in the long run to pay well for first-class assistants, than to eco- nomize in this direction and secure the services of infe- rior persons. It should be an aim to interest peraonally in the business any deserving assistant. This may be done by giving him a small commission in addition to his salary ; or by agreeii^ig to increase his compensa- tion in proportion as- the business increases ; or by ar- ranging to place him ultimately on the footing of a junior partner. I doubt the wisdom of occasional presents or HINTS FOE FAEMEES. 77 gratuities. Such additions are looked upon as pieces of luck, like a premium in a lottery, and not the reward of labor. It is better to place extras in the form of an increased salary. THE CHOICE OP A PLACE OP BUSINESS. The farmer, the professional man, and the mechanic, are just as much interested in the choice of a location to pursue their avocation as the merchant. The farmer in purchasing his farm should take into consideration, first, the healthfulness of the locality. Exposed as he is to the action of the weather, and remote from medical aid (not to speak of its costliness), he should be cautious not to buy in a fever and ague district, nor where there has been much sickness. The best land in such localities is dear at any price, if one must live on it*. Next, he should ascertain the conveniences for trans- portation to the nearest produce market. Then the probable rise of the price of land in that locality ; the position of the house and barn on the land ; the roads in the district ; and the public improvements in contem- plation. The farmer of course must live in the country. But most other men can pursue their avocations either in cities, or small towns, or in the rural districts. Within the last ten years, there has been a striking tendency among all classes to desert the small towns and the coimtry, and move to the cities. Wages are higher, and 78 RULES FOB CONDUCTING BUSINESS. there are more avenues to an extended business. To counteract these advantages, the price of living is dearer, and the stress of competition is more intense. A man of ambition, abiKty, and good habits, should seek the centre of the strife; "but he who lacks in any one of these respects, will find it to his gain to avoid the stru^les of the crowded streets. In choosing a store, ware-room, or oiSce, an eye should be had to its accessibility. It should not be too high — even two steps above the street is an injury to many stores ; light should be abundantly provided for ; it should be neither too damp nor too dry for the character of goods to be kept. The location should be in the neighborhood most suitable to the business. Great cities are often divided into streets and quarters devoted to particular callings ; one to brokers and bankers ; another to wholesale and jobbing houses ; another to printers and publishers ; another to retail dry goods ; and so on. It has been found, contrary to what might have been expected, that this grouping of a number of similar dealers in one spot, favors the trade of all. BUYING GOODS. To make a good bargain it is necessary to know the market rates of such articles as you wish to buy, and to be able to judge of their condition. The buyer's object is to buy as low as possible, and often in a purchase a few judicious tactics will save more than days of hard labor. "WHAT MAKES A BAEGAIN. 79 Much chaffering is unnecessary, but rashness or haste is still more to be avoided. Do not let the seller perceive much anxiety to buy on your part, and in criticising his goods, be sure you are able to sustain your criticisms. When you can arrange it, bargain for time, but buy for , cash. You will often thus obtain a larger discount. If it is time you want, settle the price first, and claim time afterwards. When you have brought the seller to your terms, dose at once. Many a bargain is lost through allowing the seller to " think it over," and consult his friends. If he insists on time for reflection, cut it as short as possible. The moment that both parties have assented to the terms, the moment that one has said, " I will pay the price demanded," and the other has said, " I will receive it," the right of property vests in the buyer, and the risk of accident is with him, though he does not acquire the right of possession until he pays or tenders the price. ' A person who makes a sale while in a state of intoxi- cation may annul it. A sale by a person who has no right to sell is not valid against the claim of the rightful owner, and a sale of stolen goods is , in no case valid. The proper owner may take them wherever he finds them, even when the party holding them has paid the full value for them, providing there is "no breach of the peace" committed. The laws of some States forbid selling and buying on Sundays, and sales on that day may be declared void by the court. 80 EULES FOE CONDUCTING BUSINESS. SELLING GOODS. The object of the salesman is to acquire the confidence of the buyer, and to be able to read the latter's wishes in his actions. He should aim to have his statements believed, and be able to show his goods to advantage, and to answer objections to them promptly. Too much praise of his wares is suspicious, and depreciation of his neigh- bors' stocks is set down to jealousy. He has a quick appreciation of the wants of his customers, and does not comment with equal praise on all kinds or styles of goods to all persons ; but catches at the fancy of the buyer, and presses delicately upon that ; or, if it is an injudicious choice, he points out its defect, and produces a more suitable article, and thus inspires confidence. Merchants, especially retail merchants, are not agreed as to the " One-Price System." It is extremely difficult to carry it out in practice, for the occasional extreme pressure for money to which most are liable induces them to break it from time to time. And unless it is inflexibly adhered to, it is worse than useless, as it soon becomes rumored among the customers that some can buy below the affixed prices, which disgusts all who cannot. On the other hand, the custom of adding a margin to allow for an abatement of price is an imposition on cus- tomers which they will resent as soon as it is discovered. It is better to represent any abatement as a compromise, either to induce the purchase of a larger bill of goods, to A SEEIOUS ERROR. 81 secure fiiture patronage, to obtain a larger cash pay- ment, etc. Be sure to sell at a profit when possible, or, at any rate, sell so that the loss will be least. Errors are often made in calculating profits. The interest on the cost, the depreciatiori of the goods, the changes in the styles, and the miscalculations of discounts, must be carefully watched. Such errors are often continued for some time without knowing it. Let me ghow this by an example : A manufacturer worked six nionths in making horse- rakes under a patent. The material and labor cost him $74.00 on each machine. He pays a royalty of $5.00. He keeps them on an average six months, and then bill- ing them to wholesale dealers at $110.00 each, he allows 20 per cent, discount, and six months time, or 5 per cent, off for cash. Here he puts the retail price at nearly 50 per cent. above the cost, and might suppose he was doing a good business. How does his account stand? Selling price $110 00 Trade discount, 20 per cent. ...''. 22 00 88 00 5 per cent, for cash 4 40 83 60 Int. on $'74.00 for six months, 1 per cent. 2 59 81 01 Eoyalty to inventor 5 00 ■76 01 Cost. "ii 00 Profit 2 01 82 RULES FOE CONDUCTING BUSINESS. Out of which f 2.01 he must allow for insurance, rent, storage, advertising, assistance, clerical expenses, losses, travelling, etc. CREDIT OR CASH? In selling goods the tendency of competition is not so much to lower the price of articles, as it is to hold out what, strange to say, in the majority of cases is a stronger inducement than low prices — postponed payment; in other words, long credit. In the anxiety to sell, the merchant does not always remember how much more profitable to him are small profits on short credits, than large profits on long credits. $1000.00 turned over every four months, at 10 per cent, jirofit, will amount, in six years, to $5550 [i^jj. The same sum turned over every six months,' at the same profit, will amount, in six years, to. ..$4,109 89 Do. every 12 months, at 10 per cent., in 6 yrs. 1,771 56 " ,18 " " " " 1,464 10 " 2 years " " " 1,331 00 $1000.00 turned over every 2 years, at 20 per cent, profit, will in 6 years amount to 1,728 00 Do. every 18 months " " " 2,073 60 " 12 " " " 2,985 98 " 6 " " " 8,916 10 " 4 " " " 26,623 33 Thus a man may make a profit of only f 728, or a profit of over $25,000, from the same capital, in the same time, and by selling at the same percentage of profit, with merely a difference in the length of credit which he gives. AN ASTONISIIIXG CALCULATION. 83 Which is the more profitable, to sell fl500 worth of goods at 90 days, at 10 per cent, advance, or at one year, at 30 per. cent, advance? In the first instance, we may turn over the $1500 four times in the year, and make 10 per cent, each time $2,196 15 In the second instance, we receive at the end ' of the year 1,950 00 Increased profit on 10 per cent, sales $246 15 Such arithmetical calculations cannot be too frequently made. Even if we allow a loss of three months in the year in the former transaction, the three 10 per cent, sales will have returned the most. I must add, however, that this startling result is modified in practice by the seller receiving credit on his purchases, as well as giving it on his sales. The credit system, properly guarded, is beneficent to young men of energy and probity, enabling them to commence business at once on little or no capital. But the seller should exert much caution in trusting an unknown or an irresponsible party. In large houses it is impossible to acquire" a personal knowledge of pur- chasers, and hence the salesmen in all cities depend for such information on MEECANTILE AGENCIES. These establishments maintain correspondents in every city and village of the United States, who inform them 84 EULES FOE CONDUCTING BUSINESS. of the financial standing of every active business man, the amount he is supposed to be worth, the manner in which he transacts his business, and even his personal habits and style of living. These reports are numbered and registered in their order of merit, and each half year . a volmne is furnished to the subscribers, containing the names and addresses of dealers, and certain marks oppo- site them which indicate their responsibility. At any time a subscriber can obtain information about a particu- lar firm by applying for it. ON EMPLOYING AGENTS. Every extended business is tra,nsacted through agents, and as an agent binds his principal, caution must be used in appointing one, especially a general agent. Insist that your agents do not go beyond the authority you con- fer upon them, even in trivial matters, and if one of them deviates from orders, give immediate notice of your dis- sent, as in law silence is equivalent to ratification. "When a clerk who has been empowered to draw or accept bills of exchange, or sign checks, in his employer's name, leaves his service, it is always prudent in the latter to give express notice of such facts to all his correspon- dents individually, and to the bank, for he may be bound by the acts of such clerk subsequently to leaving his service. A general notice in a newspaper is not sufficient to affect a former customer, unless he had express notice given him. TAKE CAEE OF THE MONEY YOUESELF. 85 In all cases let orders be written and copied in the Letter-book. Verbal orders are constant subjects of misconstruction. THE FINANCIAL DEPAETMENT. The principal should, whenever possible, take charge of the cash himself, and sign the firm name to all obliga- tions. He places a temptation in the way of a subordi- nate, to whom "he leaves the care of the funds, in order to save himself a little trouble. The cash account should be balanced daily, and a deposit made toward the close of bank hours of Ml the checks and cash not absolutely needed. It is better to keep a tolerably large deposit in bank, both to be prepared for sudden emergencies, to make a profitable bargain for a cash sum at once for example, and also because bank officers who discount the paper of their customers expect those who claim this favor, in pressing times, to keep an average balance of about one- third the amount asked for. These considerations more than make up the loss of interest on the deposit. Another advantage is, that it enables a firm to discount its own paper, which is the most profitable use it can make of its spare cash, and will soon react favorably on its credit. EEMITTING MONEY. In remitting money, the safest plan is by draft on some large city, convenient to your correspondent. The 8 86 RULES FOE CONDUCTING BUSINESS. premium is less than it may cost him to collect a certi- fied check, though such collections are usually made by banks for regular depositors without charge. , Small sums should be sent by post-office orders ; or, in localities where there is no money-order post-office, by registered letter. The money should be placed in the letter in the presence of the postmaster, and his receipt taken for it and the registry fee. When small amounts of money are lost in the mail (as subscriptions to newspapers, prices of books, etc.), if the above precautions have been taken, and the evidence forwarded, it is the custom of many leading houses to bear the loss ; but not when the money has been merely placed in an ordinary letter and forwarded. Cash or checks can also be remitted by the Express Companies, from whom the amount can be collected if it is lost. In sending money to foreign countries. Bills of Exchange, in triplicate, are used. Their form, and the precautions connected with forwarding them, will be found in Part II., of this book. COLLECTING DEBTS. In whatever occupation you are, collect closdy. A physician once informed me that he lost about a third of his income through the Statute of Limitations. Small bills are frequently forgotten by persons able and willing to pay them; while those unwilling to pay are not DO NOT INDORSE. 87 desirable customers, and no hesitation need be had in dunning them. Bills should be sent in monthly, quarterly or semi-an- nually, according to the custom of the place. After waiting a reasonable time, if not paid, an employee should call and inquire about them. If the money is not forth- coming, he should inquire when he shall call again, and be there pufictually at the appointed time. If these efforts are unavailing, the bills should be placed in the hands of a professional collector ; next, into the charge of a lawyer, who should be instructed to send a notice that legal proceedings, involving considerable expense, will be instituted unless payment is made. The last resource is to sue them out. A person who cannot pay the money will often give a note at thirty, sixty, or ninety days. This should always be passed to a third party before due, as if not paid at maturity the person in whose favor it is drawn will find it more difficult to collect than an innocent holder. GOING SECUEITY AND SMALL LOANS. At times it is a hard rule to follow, but I earnestly advise the young business man to positively refuse to endorse any note, or to go bail or security, for anybody or on any account, except in the line of his own business. The number of prosperous men whd^have "come to grief " for neglecting this principle is incredible. It is not too much too say that nearly one-half of the failures arise in this manner. 88 EULES FOR CONDUCTING BUSINESS. The difficulty is great in refusing such favors to a friend or a relative, tod for this reason therefore, it is better to have a stipulation in the co-partnership articles forbidding it. In all business circles this is considered a valid excuse, and none but a dishonest man M^ould urge a person to disregard it. Even to go bail for another, although theift is little danger of forfeiting the recogni- zance, may involve serious loss of time, and troublesome legal delays. The exchange of checks, though very common among neighbors in business, and very convenient at times, is not a custom which should be encouraged. Occasionally it is an important favor to receive, and generally harm- less to grant, but in the end it may be abused, as I have more than once witnessed. The borrowers of small loans— $6.00 • and $10.00— should be met early with a polite but decided refusal. They are nuisances, which must be checked sooner or later, and soon is better than late. You can always say that they must excuse you to-day, as it is not convenient. BOOK-KEEPING. The principles and practice of book-keeping are explained in so many treatises that it is unnecessary to speak of them here. But it may be mentioned that the knowledge of this art, to be of service, must be care- fully applied. The Cash-book should be balanced nightly, the Ledger PILING LETTERS. 89 posted at least every week, a Trial Balance made monthly, every letter copied in the Letter-book, and all the records of the business maintained in such perfect system that the account of every customer, the voucher for every bill, and any letter of every correspondent can be obtained at a minute's notice. Letters are preserved by banks, etc., by pasting them in Letter-books. In a miscellaneous business this is hardly necessary. The most convenient system is to have a number of pigeon-holes, each marked with a letter of the alphabet, and after a letter is read and answered, fold it smoothly the length of the page if an octavo sheet, or across the page if a quarto, endorse it across the top of the outer side, thus : EoGEES, John, Ky., May 4th, ,1872. Oedee roE Stationery, and place it in the pigeon-hole R. At the end of each month or quarter, the letters can be tied in bundles of one letter of the alphabet each, and filed away. INSURANCE. Every man whose property is liable to be endangered by fire should insure it close to its actual value. If he is a merchant or manufacturer doing business on bor-_ rowed capital or credit, this becomes a duty to others as well as himself. For he is morally responsible to those who have given him their assistance, to take all usual 8* 90 RULES FOR CONDUCTING BUSINESS. precautions against failure in his enterprises. Too often it is neglected through procrastination, and not unfre- quently policies are allowed to expire ^ihrough careless- ness. A safeguard against the latter occurrence is to take out a -perpetual policy, such as is now issued on buildings by many companies. It costs a payment at the outset of about one per cent, of the principal, and requires no pre- miums afterwards. It can be returned to the company at any time, and the original payment claimed on it, less some five or six per cent. In choosing a company in which to insure, select one whose name you have not observed as forced into courts by claimants. If a company appears often on the Docket, you niay be sure that it is seeking to avoid the payment of just claims. When you learn that a company pays promptly the losses of men who have small influence in the community, set it doAvn as a favorable sign. Copipa- nies are often more willing to pay the heavy losses of prominent capitalists, than the insignificant losses of petty tradesmen, for the former serve as an excellent advertisement. Most business houses deem it prudent to place their risks in several different companies rather than one. Scrutinize an insurance policy closely. Some years ago. Lord St. Leonards, one of the most eminent lawyers of Great Britain, asserted that not a single policy, as issued by the English companies, could compel payment, WHERE TO ADVERTISE. 91 the provisos leaving too much room for the use of legal chicanery. Sometimes such clauses are in very fine print, as if of minor importance. Have nothing to do with a company which displays any such duplicity. ADVERTISING. The newspapers are constantly teeming with narratives of extraordinary success from advertising, and urging all their readers who have anything to sell to follow suit. This, of course, would be " grist to their mill," whether the advertiser was benefited or not. It is not from the editor's point of view that I propose to look at this very important question, but from that of the seller. First, let it be remembered, that although in common parlance the columns of the newspaper are understood when we speak of advertising, this is by no means the only means of bringing a business to the knowledge of the public. There are well-established $rms that will not advertise in newspapers at all,' but believe the money set aside for creating a demand for their goods is better spent in distributing circulars, paying travelling agents, " drummers," as they are called, or by bill-posters. A business which appeals to a strictly limited class of customers cannot profitably be advertised in general newspapers. The first purpose of the advertiser of any specialty should be to discover, not the extent, but the character of a paper's circulation. To do this he has ail almost infallible guide in the kind and quality of the 92 EULES FOE CONDUCTING BUSINESS. reading matter, and the tone imparted to the journal by its conductors ; and from these- not obscure data he may calculate accurately the approximation of its public to his own. The numerical circulation of a journal is not an unim- portant consideration ; but it bears chiefly on the rates of advertising, which (other things being equal) should have a direct ratio to it. Moreover, it is constantly mis- represented. The estimate commonly put forth is based — if on anything besides the publisher's imagination — on the supposed number of readers a paper has; and the deception lies in the fact that, while the advertiser's ques- tion relates to the first kind of circulation, the publisher's answer relates to the second. The period of advertising should be a considerably extended one ; and economy will here be attained by con- tracts at low rates with chosen journals. To guard against useless expenditure in times of extraordinary dulness, it should be stipulated that the rate is to be the yearly rate, but the advertiser shall have the privilege of reducing the hnigih as much as he pleases. Jn dull seasons, he might only insert a couple of lines. The contract with the publisher should always be in writing, and should, besides the above, state the price per line for the whole time, the date and manner of pay- ments, the place in the paper where the advertisement is to appear, and reserve to the advertiser the privilege of changing the matter and typography as often as he CONTRACTS FOR ADVERTISING. 93 chooses. He should also require a copy of each issue containing his advertisement to be sent to him as a voucher. As a rule, the most prominent and costly part of a paper is the best. In city weeklies the outside page, in dailies and country weeklies in the " Local Items," or next them, is to be preferred. The advertisement should never contain anything repugnant to a refined taste, ^nd nothing grotesque or ridiculous. The wording should be changed often, and an attractive typography should be used. It is well to choose an attractive heading, followed by fairly-spaced paragraphs, with appropriate sub-headings. In any advertisement, more than one continuous line should never be put in capitals, as their uniformity makes them much more difficult to read than ordinary type. HOW TO WRITE AN ADVERTISEMENT. Before writing an advertisement, one should always place distinctly- before his muid what is the most import- ant thing to impress upon the public. If he be adver- tising an article of established trade, it is the name and location of the house selling it which must be the more prominent, or at least equally so with any other part ; but if he be introducing some new article, or seeking to extend the sale of something little known or rare, these items are of far less importance. Most of the advertising on a large scale is now done through " Advertising Agencies." In extensive general 94 EXILES FOE CONDTJCiTING BUSINESS. advertising, it is an economy of money and time to employ them. But in special advertising, it will generally be found that a person can make more satisfactory terms with the newspapers he has chosen, than through agencies. Agents who solicit advertisements receive on an average 25 per cent, on the published rates as their commission ; and a knowledge of this fact will often enable the, adver- tiser to make a better bargain. An advertiser should not become discouraged too soon. Returns are often slow and inadequate at the outset. Time is required to familiarize the public with a new namd' or a novel article. Somie men have given up in despair when they were on the eve of success by this means. Several of the most wealthy merchants of our country have at times been driven hard to meet their advertising accounts, but they knew that this was their most productive outlay, and by determinately continuing it, they weathered the storm. AN HONEST LIVING. CHAPTER IV. PROFITABLE BUSINESSES EEQTJIEING LITTLE CAPITAL. How to obtain capital to begin business — Advertising for it — Patents — The Talue of patents — -Opinion of the Chief Examiner — How to sell a patent — Territorial rights — Shop rights — Royalt}' — Traps to catch inventors — Authors and copyrights — Protits of authors — Large incomes of some — The most valuable literary property — Translations — Profitable farming — Rules for making and saving money on a fiirm — Requisites to success in farming — Insurance Agents — Mow much they make — Book Agencies — Their value to the public — Their profits — Patent medicines — Mistaken ideas about — Morality of — How to do away with them — Profits of various occupation? — Risks of mercantile life — Farmers live longer and lose less — Foolish sentiment about professions — Incomes of profes- sions — Objections to political life — Advantages of mechanical trades. ' Y object ill the present cliaptei' is to give informa- tion about various branches of regular business ys),,^ wliich are available to young men with small " S" capital. I shall avoid all occupations of a specu- lative character, or of ^ovcl and untried nature, and also OB 96 BUISNESSES EEQUIEING LITTLE CAPITAL. those which require a heavy principal, or a long prepara- tory training- If a youth intends to become a doctor, a lawyer, a civil engineer, or a professor, he must devote years to the acquisition of special branches of knowledge ; if he - proposes to engage in banking, in wholesale dry goods, or in manufacturing, he will require many thousands of dollars; and in either case he will seek, and can readily' find more complete instructors than this volume. To open a cloth house demands at least $25,000, a wholesale leather or dry goods house $50,000, a shipping trade as much, and banking an indefinitely larger sum. My purpose is to put the young man with energy and ability, but with only a moderate pecuniary outfit, in possession of a number of facts relating to the capital required, the profits to be expected, and the general method of conducting with advantage some of the branches of ordinary business which are open to him. Such information is frequently sought verbally and by letter ; it is not accessible in books ; and I believe it will be welcomed by the class I address. The general prin- ciples heretofore laid down for commencing and conduct- ing business are now to bS practically applied to the special branch which is chosen. HOW TO OBTAIN CAPITAL TO BEGIIT BUSINESS. Some capital at least is required to commence almost any employment, and it is ofiten a serious question with HOW TO &ET MONEY. 97 young men how to obtain a small amount necessary to start an enterprise and place it on a paying basis. Not a few inventors and other men of ability have been forced to sell at a sacrifice the fruit of long labor and thought, because they found themselves unable to carry out their plans for want of means. Now there are several resources for securing a sufficient amount of money to test an invention, to stock a store, to rent a farm, to finish a design in the useful arts, or to develop any promising vein of practical research. In all cities, there are Isttge sums of money lying idle in bank, in the possession of persons who gladly accept the opportunity of a profitable investment. They require, first, some security, the best the applicant can offer, for their money ; and second, in consideration of the risk they run on account of the inadequate character of this security, a prospect of sharing the profits of the enterprise. Inven- tors, discoverers, etc., usually entertain an absurdly high opinion of the value of their projects, and distrusting their own business ability, are so tormented by the fear that they will be cheated out of their "great expecta- tions," that they neither make nor listen to reasonable propositions ; until, worn Out by hope deferred, and the pressure of poverty, they fell into the very pitfall they have been seeking to avoid. If a capitalist risks his time and money, it is a fair equivalent that the inventor or worker should risk his labor and brains, and an equal interest is an equitable one. 9 98 BUSINESSES EEQUIRING LITTLE CAPITAL. Good personal character is a recognized security for money, and the man who is known to be sober, industri- ous, frugal, and discreet, will rarely have to wait long to obtain enough capital to commence a moderate business. Men of means are always ready to form a dormant part- nership with such a man, they advancing the money, he the skill and time. Such arrangements should be limited to a term of years, so that when able, he can buy out their interest. Advertisers for money are not favorably regarded by capitalists, and they rarely reply to public applications of that kind. It is currently and justly believed that in this country any one possessed of the right personal traits, and with new and practical ideas, or an earnest desire to do a legitimate business, can acquire the start he needs through his acquaintances, or their recommen- dations to others. Nevertheless, 1 have known many instances where really meritorious men appealed, and in some cases successfully, to the general public for capital in this manner ; and, as a final resource, it is well to resort to it. PATENTS. ,v The sale of patent rights and patented articles consti- tutes an extended branch of industry in our country, and there is hardly an individual who at some time or other Iocs not interest himself in them. The requisite forms for obtaining, buying, and selling patents will be given in Part II. Here I propose to A MISTAKE OP INVENTORS. 99 speak of the proper methods for making money out of them. It is generally believed that inventors rarely reap the reward of their own labors, owing to want of capital or ability to bring their patents to the knowledge of those who would purchase them. If this popular conviction is correct, it is the more necessary that they should have some general instructions how to sell patents and patent rights. THE VALUE OF PATENTS. Inventors, as I have before remarked, frequently have a most exaggerated idea of the value of their discoveries, and this prevents them from accepting a reasonable offer when made. They wait for a better, and meanwhile some shrewder patentee, with an improvement similar in application, takes their melrket. Patent lawyers are interested in having as many inventors apply as possible, as thereby their gains are greater, and hence they never fail to report the immense profits of certain patents. But in fact the vast majority of patented inventions never pay the inventor enough to settle his lawyer's bill. The patents granted are at the rate of 300 to 500 a week, and probably not more than three or four in a hundred yield any adequate return. These few which are successful, however, draw such large prizes that it is enough to stimulate the faculties of all. The Chief Examiner of the Patent Office, in a recent official report, says : " A patent, if it is worth 100 BUSINESSES REQUIRING LITTLE CAPITAL. anything, when properly managed, is worth and can easily be sold for from ten to fifty thousand dollars. These remarks only apply to patents of minor or ordinary value. They do not include such as the telegraph, the plan- ing-machine, and the rubber patents, which are worth niilRons each. A few cases of the first kind will better illustrate my meaning. " A man obtained a patent for a slight improvement in straw-cutters, took a model of his invention through the Western States, and after a tour of eight months, returned with forty thousand dollars in cash, or its equivalent. "Another inventor obtained an extension of a patent for a machine to thresh and clean grain, and sold it, in about fifteen months, for sixty thousand dollars. A third obtained a patent for a printer's ink, and refused fifty thousand dollars, and finally sold it for about sixty thousand dollars. " These are ordinary cases of minor invention, embracing no very considerable inventive powers, and of which hundreds go out from the Patent Office every year. Experience shows that the most profitable patents are those which contain very little real invention, and are to a superficial observer of little value." HOW TO SELL A PATENT. Patents are sold by — 1. Territorial rights. 2. Shop rights. 3. On royalty. A territorial right concedes to the person buying the A EOYALTY EXPLAINED. 101 exclusive right to sell the patented article or improve- ment in a definite limited territory, a township, county, or State, as the case may be. It is for a cash sum, and sometimes includes the privilege of manufacture, some- times not. In the latter case the seller, whether the patentee or the assignee of the patent, usually stipulates that the purchaser of the territorial right shall buy his articles from the patentee or assignee. A shop-right gives the privilege, for a certain cash sum, to manufacture the patented article in a specified shop or establishment, and nowhere else ; but it does not necessarily limit the tei-ritory in which the articles can be sold ; nor has the seller any further claim for pay- ment. A limitation of territory is necessary, of course, where territorial rights are sold in one State and shop- rights in another, otherwise they conflict. A royalty is a fixed sum paid the inventor by the manufacturer on every machine made or sold. In other words, it is a shop-right for a consideration of so much per article, instead of a cash sum. Most extensive manu- facturers require an assignment of the inventor's entire interest in the patent, and then agree in articles to- pay him the royalty fixed upon at stated times. An inventor ought to be extremely cautious how he involves himself in such an arrangement. This is the plan adopted by the "patent sharks" and unscrupulous manufacturers to swindle the mechanic out of the fruit of his brain labor. The agreement is drawn up in a cunning wording, which 9* 102 BUSINESSES EEQUIEIXG LITTLE CAPITAL. either obliges the inventot to defend his right against alleged infringements, or contains a warranty that it does not conflict with others already issued ; or the royalty is based on a percentage of the profits ; or else the manu- facturer does not specifically bind himself to make any particular number, or to pay any definite amount per year. The exact bearing of these clauses I need not stop to explain ; but I warn inventors that they are legal pit- falls, of which an unscrupulous man caii take advantage, and involve the poor patentee in hopeless litigation. A royalty should be a fixed amount on each and every one of the patented articles made (not sold) ; it should be due and payable absolutely, in cash, without proviso, on definite dates, and accompanied by a signed (or sworii) statement of the number made; it should either be guar- anteed to equal a certain minimum sum per year, whether a corresponding number of the articles is made or not, or else, the firm should guarantee to manufacture and pay royalty on a certain number per year. Never allow legal costs to be charged back to you. If you make an assignment the letters-patent are warranty enough to any fair purchaser, and if infringed upon, the owner, not you (who have sold your ownership), is the one to defend them. When you make an assignment, or an agreement with an assigning clause in it, have it drawn up by your own attorney, and see that he has the above points inserted. GOOD FORTUNES OF AUTHORS. 103 Even an honest attorney, little versed in patent business, may not appreciate their importance, while the purchaser's attorney will be very likely to set a trap for you. If you find yourself caught, remember that a re-issue will only be given on your personal application, and do not consent to one without a proper consideration. An extension also is not readily granted to the assignee, unless it is distinctly worded in the assignment to that effect. These advantages may prove of value to you. AUTHORS AND COPYRIGHTS. Full instructions for obtaining, extending, and securing copyrights will be given in Part II. (see Index under Copyright). What concerns us here is to inform an author how he should prepare, present, and dispose of the fruits of his labor to the best advantage. Like inventors, authors are currently supposed to be innocent individuals, who usually become the prey of voracious sharpers in the publishing line. However cor- rect this may once have been, it is rarely true now. A successful author is generally well paid for his work, and in proportion to labor done, makes quite as much out of his book as the publisher does. Having once obtained the public ear, he can almost dictate his own terms. The author who has not yet arrived at that happy period, should prepare his manuscript carefully, writing only on one side of a sheet, and having the sheets of equal size, and correctly paged. He may then visit or 104 BUSINESSES REQUIRING LITTLE CAPITAL. write to a publisher who deals in that line of works, mention the purport of his work, its size, and stage of completion, and inquire whether it will be acceptable. The publisher sends for the manuscript, and refers it to a " reader," some educated man in whose literary judg- ment he has confidence. The question for the reader to decide is, not whether the book is an able production, but whether it is likely to sell well in that publisher's line. If not, it is returned to the author with a polite note declining it ; if so, then it comes to a bargain between publisher and author. Author's profits are obtained either by, 1st, a direct sale of the manuscript ; 2d, by copyright money on copies sold ; 3d, by royalty after assignmfint of copyright ; 4th, by a share in the profits ; 5th, by returns from sales when the publisher takes the books on comrhission. If the work proves a success, the second and fifth of these plans are most remunerative. The third plan removes the work altogether from the author's control, and some publishers refuse books on any other terms. With a firm of energy and integrity, no hesitation need be felt on entering into such an arrangement. I should not advise an author to accept a percentage of the profits. Legally, it involves him in a partnership with the publisher J and he is wholly at the mercy of the latter, for he alone can decide what share of the general expenses of the establishment should be charged to any particular book. VALUE OF liti;kaey property. 105 In the fifth method, the author has the stereotype plates made at his own expense, and places them in the hands of a publisher. The latter "makes the book" from them, charges the cost back to the author, and sells the copies on commission; or, the publisher, receiving the plates, will, instead of taking a commission, pay a fixed amount of copyright money. This is an equitable arrangement, very fair to both author and publisher, and that generally preferred by the leading houses in the general trade in this country. PROFITS OF AUTHORSHIP. The profits obtained by many authors are very large. Sir Walter Scott received in one year $140,000. This is probably the most brilliant success on record. Alex- andre Dumas' income from his pen was about $20,000 annually. Charles Dickens, who commenced with noth- ing, raised a large family, and lived extravagantly, saved about $400,000. These are conspicuous examples. But there are abundant instances in this country where authors have made from $3000 to f 10,000 on one book, and that book probably one which nineteen out of twenty of my readers never heard of. The most valuable literary property to an author is a successful school book. There are many States in the Union which have more than five hundred thousand children in attendance on the public schools, each of whom must have text books, and on an average purchase 106 BUSINESSES EEQUIEIXG LITTLE CAPITAL. one in each of the common branches of English educa- tion every year. The sales are therefore enormous, and although the royalty or copyright money paid by school- book publishers is low, the extent of their sales more than compensates for the difference. Prof. Noah Webster received a royalty of one cent on each copy of his Spelling' Book, and it was sufficient to pay all his family expenses, and leave a margin. The publishers of a series of school geographies, which have been on the market for about se^en years, claim, and no doubt truthfully, sales of over one million copies. Even at the low royalty of three cents a copy, this sale would return the author over $30,000 for his labor already, with a prospect of a greater average annual amount for many years to come, without the expenditure of either capital or labor, beyond that of revision. Popular religious works come next in value. Their sale is enormous and permanent. Many could be named which are selling in their second hundred thousand. In Denmark, copyrights are perpetual ; and were this the law in all civilized nations, and an international copy- right established, no species of property would be so val- uable as the copyright of such a work. Two centuries ago a poor tinker wrote a little book of a religious tone, which you might read through in a day. If his heirs had received an allowance of ten per cent, on all the sales of that book which have since been made, they would be richer to-day than the heirs of John Jacob NOVELS AND TSANSLATIONS. 107 Astor — ^yes, probably than the whole family of the Eothschilds. That man was John Bunyan, and his book, The Pilgrim's Progress. First-class novels and poems have a rapid and exten- sive sale, but generally not much vitality. Hence, the returns are prompt, but not lasting. Few novels, even those which enjoy considerable celebrity, are bought after the second year of publication. Works of travel, history, and science, technical and philosophical produc- tions, etc., are rarely adequately remunerative, even when meritorious and well-received. An edition of a medical work is from one thousand to fifteen hundred copies, of a law book, either seven hundred and fifty or a thousand copies, and not often is a second edition needed for several years. Translations are easily made, and hence are offered far in excess of the demand. A publishing house in New York receives so many offers of them that it has a printed form for respectfully declining them. Hardly a day passes, one of the partners told me, that they do not receive one or more letters, either proposing to translate for them, or tendering a manuscript of a translation. With few exceptions, there is little profit either to author or pub- lisher in this department of literature. PEOriTABLE FARMING. The only honest way to acquire wealth, says Dr. Ben- jamin Franklin, -is by agriculture. The assertion is 108 BUSINESSES EEQUIEING LITTLE CAPITAL. sweeping, and may pass as an- eccentric expression of the great man. Certainly it is a slow way with most who try it, and if there are any suggestions which I can give by following which it may be rendered more proiitable, I shall gladly do so. The inquiry which many young farmers of limited capital put to their seniors, is, whether it would be more advisable to buy a farm East and put a mortgage on it, or to move West or South, and purchase at a figure so much less that they incur no debt, and have something left with which to' buy machinery, stock, etc.? The general reply must be, do the latter. A farm insuffi- ciently stocked, and with a mortgage on it, is enough to crush a man's spirits. Either a very small one should be bought where land is high, or one sought for at cheaper rates at a distance. Beyond the support of their family, few farmers clear more than 3 or 4 per cent, a year ; but charging family expenses at a fair valuation, this means 10 or 12 per cent, on capital, at least. The highest price which can profitably be paid for land for farming purposes has often been discussed. With every facility to market, $150.00 per acre is probably the utmost limit. The farmer near a large market, as one of our popu- lous cities, should aim to supply perishable articles, such as milk, fresh vegetables, fresh butter, etc. ; while he at a distance must confine himself to staples, grains, and FARMERS SHOULD STUDY MORE. 109 stock. Farmers are slow to appreciate how railroads and quick transportation have changed their condition and interests in t'his respect. A small farm, well laid-out, and well worked, will yield a much better percentage than one much larger, carelessly tilled. This is a truism, yet is constantly lost sight of. The expenses of a farm should be closely scanned. A heavy item always is labor. Therefore, labor-saving machinery should be judiciously bought. Another is fertilizers, lime, super-phosphate, etc., especially in the East. Nearly all of these are sold at an enormous profit by the manufacturer, and their powers are often exagge- rated. An intelligent farmer, versed in agricultural chemistry, can often save from swamp-muck, leaves, sew- erage, composting waste products, and by preserving the qualities of manure, quite as much in value as the fertili- zers he buys. Wintering a proper amount of stock, and rotating crops, will aid in this direction. This intelligence can only be obtained by buying the best text-books in his business, and subscribing to one or two of the best agricultural journals. Furthermore, the farmer should preserve the records of his business just as accurately as the merchant. He should acquaint himself with book-keeping, and take a pride in the correctness of his accounts. In other words, he must apply to this business those personal principles which I have mentioned as needful to success in any occupation. 10 110 BUSINESSES EEQUIEING LITTLE CAPITAL. A practical farmer, in summing up the requisites to success in his business, enumerates them thus : Capital enough to buy the farm and to stock it well ; to select a size compatible with these requisites; to layout in the best manner ; to provide it well with fences, gates, and buildings ; to select the best animals, and the best imple- ments to be had reasonably ; to bring the soil into good condition, by draining, manuring, and good culture; to have every part under a good rotation of crOps; and every operation arranged so as all to be conducted sys- tematically, without clashing or confusion. An attention to all these points would place agriculture on a very different footing from its present condition in many places, and with most farmers. The business, then, instead of being repulsive, as it so frequently is, to young men, would be attended with real enjoyment and pleasure. Some close calculators believe that one-third of the pro- ceeds of a farm will amply suffice to cover all the ordi- nary expenditures, or, in other words, will pay for work- ing, keep the farm in repair, and replace the interest on the capital. If this is so, it is by no means an unprofitable avocation. INSUEANCE AGENCIES.. Any active young man of good address, who can obtain sureties on a bond of two or three thousand dol- lars, can secure the position of agent for some life or fire insurance company. The business requires pleasing man- ners, a readiness at reply, a not too sensitive disposition, and a determination to succeed in spite of rebuffs. PROFITS OF AGENCIES. HI A general agent usually controls a city or State. He allows local agents from 16 to 25 per cent, on the first premiums paid, and draws most of his own profits from subsequent premiums. Some companies give general agents 30, 40, and even 50 per cent, commission on first premiums, and 5 to 10 per cent, on subsequent payments. An energetic local agent's income may be from |1500 to $3000 a year, according to his skill in obtaining " risks." A general agent, who has been in the business ten or fifteen years, and receives commissions on numer- ous policies, may, and does, receive as high as |l 5,000, 1,000, and |30,000 a year. BOOK AGENCIES. One of the most valuable training schools for a young man is the agency of a good book in the subscription trade. The profits are satisfactory and often handsome ; the business is agreeable, and the knowledge of the world thus acquired is worth much more than the mere pecu- niary gain. Such books are obtained either direct from the publisher, or from his General Agents, and at a dis- count, which, though varying with different publishers, is always enough to repay an energetic man who will canvass for them. Those agents succeed best who confine their attention to one really good work, master its most attractive points thoroughly, and by presenting them to numbers of cus- tomers, learn to do so most effectively. 112 BUSINESSES REQUIRING LITTLE CAPITAL. THE HERALD OF KNOWLEDG(E. When works containing sound, useful information are chosen, there is no avocation more honoraljle and laudable than this. The ljO(jk-canvasser is the herald of a new intellectual life in many a remote hamlet and farm-house. He brings to the door of the distant worker the ripe fruits of another's mental labor ; and he goes hand in liand with the iDublic school and a free press in dissemi- nating those elements of wide pojmlar education, on which the fabric of our beloved government must depend for its preservation and progress. The capital required is very small, and by this means every young man of intelligence can soon acrpiire enough money to enaljle him to commence in liis own sphere of business. In most cases, a " ean\'assing-book," con- PATENT MEDICIKES NOT PATENTED. 113 taining a description and specimen pages of the book, is supplied by the publishers gratis, or for a small sum. With this the canvasser commences his rounds, and obtains a number of names of persons who agree to pay for a copy on delivery. When he has a sufficient number, he sends his order to the publishers, who ship him the books as directed, and he delivers them to his customers. A popular book often sells to the extent of ten or twenty copies daily through one agent ; and he often nets on such a work, beyond all expenses, from $20.00 to $50.00 a week. Liberal and far-sighted publishers (such, may I not be permitted to add ? as those who issue this work) make it a rule to increase their discounts to those agents who sell many of their publications ; so that the agent gains doubly, both in the number he sells, and in his profit on them. PATENT MEDICINES (sO-CALLED). The well-known examples of a few persons who have won great wealth by dealing in patent medicines lead many to believe that it is a short and easy cut to fortune. An experience of twenty or thirty years in the drug trade would very thoroughly disabuse them of that idea. Hundreds of such preparations are started annually, which result in nothing but heavy losses to their pro- jectors. Few so-called patent medicines are patented. The manufacturer depends more on secrecy in their prepara- 10* 114 BUSINESSES REQUIRING LITTLE CAPITAL. tion, and tlie protection of his trade-mark, than on letters-patent. As they can only be sold by advertising, the first and heaviest expenditure is in this direction. To start a " proprietary preparation " requires not merely a useful receipt — this is of least moment — but a thorough know-, ledge of that department of trade, taste and skill in placing it on sale, and a capital of $10,000 to $30,000 to put at once in show-bills and announcements. The profits do not come in for several years, as heavy sales must first be made to cover the original outlay. The discounts to wholesale and jobbing houses, and to agents, must be large. If the retail price is 300 per cent, of the first cost, it will hardly do more than pay current expenses on a business of $30,000 to $50,000 a year, for the first five or six years. The morality of this line of trade is gravely questioned by many. It is generally accompanied and supported by false representations of the efficacy of the preparations, and their component parts ; they are frequently taken when they should not be, to the detriment of health ; and dependence upon them may result disastrously where otherwise a physician would have been summoned, and life and health saved. Nevertheless, the demand for them proves conclusively that they minister, though inadequately, to a large and actual want of the community. Their immense sales are directly owing to the action of those who oppose them WHAT MEDICINES ARE NEEDED. 115 most bitterly — the regular physicians. Families, ships, etc., ought to have, and will have, some remedies already prepared and at hand for slight diseases and emergencies. Were a set of standard and really valuable remedies agreed upon by a college of physicians, or by some eminent member of the regular profession, and certified by them as safe, and ordinarily used for certain simple diseases, it would probably do away with all others, and prevent imposition. It would be a benefit to the public ; and as patent medicines are npw used where their reme- dies would then be used, it would not be injurious to the profession. Such preparations should be no secret ; they should be put up at moderate prices, of undoubtedly pure drugs, and they should be so protected that base imitations could be prosecuted. RELATIVE PROFITS OP OCCUPATIONS. A natural desire prompts a young man to enter that business which promises the largest and most rapid return for his capital and labor. 'Shis, indeed, is what he ought to seek, providing that the employment is a safe one. As a rule, extraordinary profits are only made at the cost of extraordinary risks. It is false reasoning to pick out a dozen instances of striking success, and from them judge of the profitable character of their pur- suits. What should guide us is the average success of average men. Let us apply this principle. 116 BUSINESSES BEQUIEING LITTLE CAPITAL. The farmer's boy, impatient of the routine of agricul- tural labor, looks with envy at the lad who is commen- cing a mercantile career. Yet statistics show that not more than two or three merchants in a hundred retire with an independence. The large majority either fail, or struggle along, barely " making both ends meet," or die in middle life. Their average age at death is ten or fifteen years younger than that of farmers, owing to the anxieties and irregularities of their lives. There are also wealthy /armers, whose fortunes accu- mulated by agricultural occupations, rival those of the merchant princes of the great cities. I could mention the names of several in Illinois, Wisconsin, and Ken- tucky who are millionaires, and who have made their money, not inherited it. Their farms surpass many a baronial manor in the old world, and are managed with the closeness and accuracy of a banking house. Most of them pursue some specialty. One, whose income is $50,000 a year, deals extensively in mules, and by his affable manners, sound judgment, strict integrity, and business exactness, can command an almost unlimited trade. THE PROFESSIONS. The professions, so called, by which we mean divinity, law, and medicine, claim to be more honorable methods of making a living than otliers. Setting aside the first, Avhich is a sacrifice of self, this claim is a groundless assumption. A generally sensible writer on practical PROFESSIONAL INCOMES. 117 life makes this statement : " The professions should be chosen from other considerations than to obtain wealth. They are a splendid field for the exercise and display of intellect, and the gratification of philanthropy. The only worthy motive in choosing a profession is a strong desire to ameliorate the condition and amend the follies of mankind, — of which the reward is to be the conscious- ness of a life well spent." This is a piece of folly. I never knew a physician — and who ever knew a lawyer ? — that practised his profession for other purposes than those which govern men in all occupations. There is just as much need for philan- thropy and Christian virtues in the workshop, the store, the ship, or on a farm, as in any profession, and such a distinction is not only untrue, but morally dangerous. The professions are not more profitable than other avocations, though not less so, if rightly considered. A fair living, and something to save, may be very confidently counted upon if they are practised on business principles. Some incomes in them are large, especially when we con- sider that no capital is risked. Ten thousand dollars a .year is received by many physicians and lawyers in all jarge cities. The average is much less. In the country about $2500 a year is a good income for either. Occa- sional instances of brilliant success are met with in both. I could name lawyers who receive from fifty thousand to Dne hundred thousand dollars yearly from their business, and others who have become millionaires. Surgeons 118 BUSINESSES REQUIRING LITTLE CAPITAL. and dentists charge enormous fees when their reputations are established, and an income of thirty thousand dollars a year is no rarity among them. POLITICAL LIFE, The avenue to fame and fortune through " serving his country " is open to every man under our free govern- ment, and not a few devote much of their time and money to it. Regarded as a business, such a pursuit cannot command approbation. A salaried oflfieial in this country is never paid much if any beyond what the ex- penses of the position demand. If he gains wealth in office — as very many do — it invariably is by dishonesty. The principle of " rotation in office " frequently throws them out of employment for years, and obliges them to expend all that they have honestly saved. The personal habits generally deemed requisite to obtain popularity among the masses, are not in accordance with those I have laid down as desirable in a business man. They have been the ruin of many a fine intellect, and it is too often observed that a man who has spent a few years in " politics " never does much good afterwards at his trade or profession. MECHANICAL TRADES. The demand for skilled labor in this country is inex- haustible. " The trained hand and clear head," says a German poet, "are everywlierc at home." Whatever LEARNING A TRADE. 119 talk of over-crowding there may be elsewhere, the ex- pert mechanic is never at a loss for employment. His class is also that which acquires wealth most certainly, rapidly and safely. The remunerative patents, the large factories, the beneficent applications of science, are owed generally to those who have devoted their at- tention to what are called " the useful arts." In Germany, every man, from the Emperor down, learns some trade, some means of making a living by the labor of his own hands, and it is a custom which all must admire. Young men with us too often prefer the easier, less profitable, and less noble pursuit of a salaried dependent, because a foolish pride prevents them from passing through an appenticeship to a trade. Of the two, the latter is far more consistent with frue pride. CHAPTER V. BUSINESS FOE WOMEN'. Complaints that women have not an equal chance in business — Causes of this explained — The education of the average American girl — What women ought to learn — The business of house-keeping — How to have good servants — Many women fail through the ex- pectation of marriage — Profitable employments for women — ^Nurs- ing — Cooking — Proof-reading — Type-setting — Drawing — Book- canvassing — Schools of design for women — What is taught in them. HERE has been much complaint within the last score of years that so many women are forced to live dependent and idle lives, or else are driven to dishonorable means to gain a living, because the avenues to business are closed to them ; or, if opened, that they only allow female employees inferior wages. At the same time, there is a wide-spread complaint on the part of employers that they cannot obtain female labor in several departments where it is peculiarly fitted to excel, and where fair wages are paid. Certainly there cannot be good foundation for both these complaints ; one or the other must be untrue ; or else the social position of woman must be anomalous indeed. The laws of trade make no invidious distinctions ; if 120 EDUCATION OF AMEEICAN GIRLS. 121 women receive less tban men for the same work, it is because they are not so profitable, for some reason, to employers ; if there are many occupations in which their labor is not wanted, it is because it does not, for some reason, pay to obtain it. The fault must rest with them, not with the laws of trade. WHY WOMEN DO NOT SUCCEED IN BUSINESS. Let us take the average young American woman, and ask why it is she is dependent, why she fails to make her own living ? Does she possess the qualities which I have laid down as essential to business success in men ? To succeed, she must be well educated in ordinary English branches ; she is nearly always deficient in arith- metic, which is the most important of all. She should be industrious, methodical, an early riser, and plain in dress ; often she is careless, rises late, dresses extrava- gantly for her means, and is idle through much frivolous reading. She should have no false pride, but regard all labor as honorable ; in nearly every instance, she rejects with scorn the proposition to discharge domestic du- ties in another family. She should be self-dependent and healthy; her constitution is generally weakened by ne- glect of exercise and vicious habits of dress, and she does not even attempt to think independently. She should be economical, and determine to live by one business; she is careless of money, and intends to pursue no busi- ness longer than marriage. This may not be agreeable 11 122 BUSINESS FOE ■WOMEN. to read, as it is not to write, but if women wish to know why they do not succeed, these are the reasons. They avoid learning that which, beyond all else, they should know — that is, how to take care of their own money. They pass the care of it over to a husband or brother, and are glad that they can thus get rid of the trouble of learning and thinking. If such a course leads to poverty, as it often does, they deserve little sympathy. Every woman should take charge of her own property ; more than this, she should qualify herself in case of being left without a natural adviser, to manage the estate, or to carry on the business which would be thrown upon her hands, if her husband or near male relatives were to die. Every husband and every father should take pains to encourage such a desire, and teach his daughter or wife the practical details of ordinary transactions. Many men pursue the opposite course, believing it " bad policy " to trust womenfolk with the knowledge of money matters. The opinion is a mistaken one, but it is encouraged by women themselves in many cases. Let them remember that a strict economy is far more important to them than to their husbands; for the latter can always earn a living, but for a widow with children and without knowledge, it is a hard and sad task. THE BUSINESS OP HOUSEKEEPING. That housekeeping is a business at all will astonish some. But it should be regarded as such, and every HOUSE-KEEPING ACCOUNTS. 123 housewife should take as much pride in conducting the finances of her family with proper skill as a merchant in balancing his ledger. A lady should observe the same rules for conducting this, as any other business. It will be excellent training for her, and accustom her to the care of money matters and their management. She should keep her books with nicety, entering whatever she receives and pays out in_ a Cash-book, kept for the purpose. Accounts with the servants, and the expenses of the table and of dress should be transferred to a Ledger, where at any time she can see how much has been expended on each of these accounts. However onerous this may at first appear, it will soon be a pleasure rather than a task, and it will inspire confidence in her ability in the minds of her hus- band or family. The abundance of money which she perhaps enjoys just now, should not tempt to a disregard of these rules. There is no meanness nor niggardliness in these close calculations, but a just and praiseworthy care of those powers which Providence has seen fit to entrust in her hands. The forms which she can use are of the simplest char- acter, and hardly need explanation. I give a specimen page from a Cash-book, and another from a Ledger,, which will illustrate them : 124 BUSINESS FOE WOMEN. CASH-BOOK. RecGived. Paid. 1872 Feb. Feb. Feb. Feb. From Mr. H For chickens " scarf For wages to Anne " car fares " ticket to concert From sale of rags, bottles, etc For 1 basket potatoes " sundries in market From Mr. H For paper and postage " copy Pilgrim's Progress Total Brought forward from last week On hand $12 00 $1 6 4 50 1 1 5 00 1 50 2 21 14 16 00 22 $31 50 $37 25 50 00 50 50 00 15 20 00 To 80 50 Books ruled in the above manner are called Memoran- dum-boo!:^, and can be obtained from any commerciaF stationer. They should be balanced every week as above shown. The items may be jotted down at the time the money is paid or received, on pocket-tablets, or slips of paper carried in the portemonnaie, and transferred from these to the Cash-book every evening. The Ledger should be kept in the following manner : ANNE HAYES. Dr. Cb 18T2 Feb. By cash on account To 2 weeks'- work, at $2.50 per week By cash on account U it It - To 2 weeks' work, at $2.50 Balance to new account $1 50 $5 6 00 50 5 2 00 $10 00 $10 00 00 00 DUTIES OF HOUSE-KEEPEES. 125 The balance should be carried forward after the account is closed to the new account on the next page. House-keepers' constantly complain of the difficulties they experience in obtaining competent domestic servants. Young American girls will rarely accept employment in that capacity, and the foreign born or colored residents who fill these situations rarely give satisfaction. It is much to be regretted that American girls cultivate the false pride which prevents them from going to service. At $3.00 a week it is a more profitable employment than school teaching, selling goods in stores, or working at a trade at $6.00. Though these employments nominally yield more, when a fair allowance is made for lost time, board and lodging, the domestic servant can save a larger sum during her year. But is not this prejudice partly caused by the house- keepers themselves ? Too many of them care little for the comfort of their servants ; they confine them to damp and small kitchens, give them ill-ventilated and cramped sleeping apartments, allow them to see but not to taste various delicacies of diet, and insist on curtailing their innocent privileges to the utmost. Ladies will often expend in useless articles of dress, or on an unnecessary entertainment, more than enough to render their servants comfortable in all these respects for a year. Such out- lays are most ill-judged, and their own comfort would be consulted by expending the amount at home. These ladies may also ask themselves whether they are 11* 126 BUSINESS FOB WOMEN, hasty and ill-tempered with their servants, and whether they set thera an example of kindliness, punctuality, strict performance of duty, truthfulness, and economy. If a servant is trained to lie, for instance to say Mrs. Smith is " not at home," when she is in fact half-dressed in the nursery, it is absurd to expect that the lying will stop there ; or that it will not be associated with various companion vices. A house-keeper should especially strive at absolute punctuality in the hours of meals. The comfort of a family and its general habits of punctuality depend very much on this, and the mother of a household, who trains them to irregular hours at home, may expect and blame herself for unpleasant results in her children's future. WANT OF KNOWLEDGE THE CAUSE OP WANT OF EMPLOYMENT. Lack of education is the real reason why women are not able to be independent. A Persian proverb says, " a hewn stone is not left by the wayside ;" and she who can do any one thing well which people want well-done, will not proffer her skill in vain in these busy times. Those who have employed women in skilled labor say that the chief obstacle to a girl's success is that she is constantly looking forward to marriage as the event which will lift her above the necessity of labor, and hence she will not take the pains to master >her trade. This is most true, and fully explains the rarity of busi- ness success in that sex. WHAT -WOMEN SHOULD LEAEN. 127 The woman who expects to depend on her own labor should resolutely banish the thought of a time when another will provide for her, and set herself to work with the determination of acquiring the utmost skill possible. If her father knows a trade, she should seek to acquire some branch of that • or if not, she should avail herself of the first opportunity to learn practically some employ- ment; and while awaiting such opportunity, not pass her leisure hours in idle dreams and empty novel-reading, but study diligently the rules of writing, business arith- metic, geography, and ordinary business forms. No matter what she finally chooses, this knowledge will be of perennial value to her. ~In London there is a Commercial College for young women. I know of none in this country, but a course at such an institution would teach much that every woman who has to do with trade and accounts should learn. I shall now proceed to mention a few of the many EMPLOYMENTS FOE WOMEN, which are available in this country, and which, if con- ducted as any business ought to be conducted, will very surely secure an independence. Nursing. — Middle-aged and elderly women are pecu- liarly qualified for this, and in most communities can obtain regular employment. They should read carefully the best text-books on the subject, and practise the pre- paration of articles of diet, baths, etc., for the sick. 128 BUSINESS FOR WOMEN. There are in several of our large cities, institutions for the training of nurses, and several eminent physicians have written -works expressly to instruct them in their duties. Their wages vary from $4.00 to $10.00 a week, besides board. Cooking. — A skilful cook readily commands from' $3.00 to $7.00 a week, with board. A proficient in the art is rarely met in this country. Yet it is a career for which women are peculiarly fitted, and could succeed perfectly, were they only willing to study it in the same manner and with the same aids as the mechanic does his craft. Proof-reading is paid for by the " thousand ems," and can readily be acquired by a little care. It demands above all things accuracy, in which a woman can, if she chooses, excel. None but one who is educated need, of course, attempt it, and she must have a closer knowledge of spelling, grammar, and punctuation than she can learn at most schools. Type-setting is a light employment at vfhich many young women have made fair wages. The obstacles thrown in the way of women by some of the typographi- cal unions have chiefly been removed. It is better to learn the art in a country office, where the competition is less, and the expense of living not so high as in cities. Drawing, especially on blocks for wood engravers, is an art for which education and delicacy of touch pecu- liarly qualify many women, who are at a loss to know BOOK CANVASSING. 129 how to employ this talent to advantage. Such designers are paid a fair remuneration, and always according to the quality of their work. Booh Agents. — A woman of tact and energy need never be at a loss for support, when she can so readily, and on such a small capital, enter upon the sale of sub- scription books. This offers her a certain income, with- out risk, and a most healthful occupation. It takes her into the open air, and brings her into contact with the varied world around her. She can travel if she wishes, or can confine herself to the vicinity of her home by obtaining new books to sell. Her profits are immediate, and the occupation is thoroughly respectable and lady- like. A good book, well -canvassed, will yield her hand- somer returns than any of the trades I have yet men- tioned. SCHOOLS OF DESIGN FOB "WOMEN. These schools are now established in New York, Phi- ladelphia, Boston, Pittsburgh, and several other cities. The courses of instruction pursued in such schools have for their object the systematic training of young women in the practice of art., and in the knowledge of its scientific principles, with the view of qualifying them to impart to others a careful art education, and to develop its application to the common uses of life, and especially to the requirements of trade and manufactures. . The stages in the elementary course, with the lectures, are arranged with the view of developing a knowledge 130 BUSINESS FOE WOMEN, PRACTICAL AET STUDIES. of form, the laws of light and shade, color and perspec- tive, none of which can safely be dispensed with, whether in the practice of the fine or applied arts. The course . lasts from two and a half to four and a half years, de- pending upon the industry of the student, and the thoroughness at which she aims. The earlier stages of the studies comprise drawing in outline and shading, practice in the handling of instru- ments, ornamental geometry, perspective, coloring with the simpler colors, etc. The advanced students are trained in drawing and shading, from casts, architectural ornaments, living models, the skeleton, landscapes " from the flat," plant forms from nature, etc. Lectures upon these and allied topics are also given. SCHOOLS OF DESIGN. 131 Having mastered these general principles of art, the student can now apply herself to their practical applica- tion. This embraces designing patterns for calico and oil-cloth printers, carpet manufacturers, wall-paper, etc., wood designing and engraving, lithography, drawing and painting, art-teaching, etc. CHAPTEE VI. IlSrVESTMENTS. Money more easily made than saved — The four elements of a good in- vestment — "What an investment ought to pay — Some mistaken cal- culations — Cautions in buying real estate — What to give for real estate — Buying wild lands — Personal property — Mortgages — Ob- jections to second mortgages — Deeds of trust — Chattel mortgages — Bonds — Coupon bonds — Registered, bonds — Judgment bonds — United States bonds — State, County and City bonds — Building associations — Life insurance — Does it pay ? — Savings hanks ; 4heir value — Railroad securities ; which to avoid and which to buy — Stocks — Mining stocks — Mines of precious metal less remunerative than those of base metal — Speculations in securities — Tricks of the Stock Exchange — Warning to investors. i~ HE assertion is familiar, that it is as difBcult to keep money as it is to get it. The care of riches and the anxieties their preservation brings detract often from the pleasures they afford. Especially widows, single women, and youthful heirs, who have no trustworthy advisers, and none or little knowledge of business, are liable to have their fortunes swept away by trusting their investments to others, or else through being seduced by the tempting advertisements of brokers and the representations of interested jobbers, to place their funds in worthless stocks, or on inadequate securitira. 132 THE FOUR ELEMENTS OF AN INVESTMENT. 133 I have already shown how short-sighted and unjust is that father, husband, or brother who seeks to keep his nearest female relatives in ignorance of the principles and practice of business out of an unworthy distrust of their prudence, or a fear that they may abuse his con- fidence. But as we all know the majority of men follow this rule, the remarks I have to make in this chapter on the investing of money will be written especially to in- struct single women and young persons in the proper manner of keeping the money which has been left them by others. If the mature business man squanders in careless or rash investments the accumulations of years, he does not do it through .ignorance, but through . reck- lessness, and on him both information and advice were thrown away.' WHAT IS A GOOD INVESTMENT? The first element of a good investment is that the principal shall be perfectly secure ; that it shall not be diminished through depreciation of values, nor lost through want of sound security. The second element is that the principal can be readily obtained if it is wanted ; security must be " convertible," that is, easily realized. An investment, however secure, which ties up money irrevocably for years, is not a first-class one. The other and secondary elements of a good invest- ment refer to the interest or return. The first object is to have this paid promptly, and if not promptly paid, 12 ■ 134 INVESTMENTS. readily collected without much or any expense or trouble. The second object is to have the interest as large as possible. I would have the reader particularly observe that I have mentioned these four elements of a good investment in the order of their importance. Very frequently, ia fact always, the temptation is to reverse the order, and to allow a large interest, especially if the promise is to pay promptly when due, to overbalance the considerations about the security of the principal. This is by far the most frequent cause of loss. Everyone may rest assured that it is a sound ordinary rule that where an interest above the legal rate is offered whether by an individual or a company, it means that the investor will incur some risk with his principal. WHAT SHOULD AN INVESTMENT PAY? Sound business men agree that a good investment in the United States should repay the investor compound interest at 6 per cent, per year, this being the legal rate of interest in most States on mortgages, and if promptly collected and re-invested will yield the return men- tioned. This correct principle is constantly overlooked in prac- tice, even by those who know it best, as I shall presently illustrate ; by regarding this as too small a gain, persons often through miscalculations, do not receive so much. An easy rule for calculating in how many years a sum IMPORTANT CALCULATIONS. 135 will double itself at compound interest at any usual rate per cent, will be given in Part II. It is sufficient to say here that at 6 per cent, it requires about 12 years. This in- crease should be net, that is, clear of all expenses connected Wh the ownership or placing of the money, collecting interest, etc. , The rule is just, because investments can be obtained in this country "on absolute security which will repay this amount. In several States it is legal and customary for the borrower to pay the taxes; and as many first-class securities can be bought " free of taxes," these charges are not to be deducted from the increase mentioned. The mistakes which are most frequent in calculating the probable or actual value of an investment result from not considering all the bearings of this simple measure of value. I will illustrate this subject by some plain examples. Suppose I buy unimproved land to the extent of $12,000, and after holding it eight years, sell it at $21,000. Inasmuch as $12,000 at compound interest for eight years, = $19,126.18, it would appear I had made a fine investment. But meanwhile I had incurred unavoidable expenses for fencing, taxes, surveying the property, commission on sale, etc., which averaged 2 per cent, a year, or $240.00. I must, therefore, from the gross proceeds subtract : 136 INVESTMENTS. $240 00 at compound interest for T years $360 86 " 6 " 340 32 " 5 " 321 It " 4 " 302 98 " 3 " 285 84 " 2 " 269 66 240 00 simple " 1 " 254 40 240 00 casli 240 00 240 00 240 00 240 00 240 00 240 00 $2375 23 Then, $21,000 00 2,3'75 23 $18,624 V7 $19,126 18 18,624 11 $501 41 loss. In other words, I have actually lost over $500 on what I might have made by an easy 6 per cent, ope- ration. The temptation of a large annual per centage frequently leads to the same result. The per centage is, in fact, paid "from the principal, although it does not appear so on the face of the transaction. Let us suppose an investment of $2000 in steamboat shares, which pay at the end of the iirst year, 15 per cent.; the second year, 12 per cent.; the third year, 9 per cent., at the end of which time the company sells out to another line at a fair valuation, say two-thirds of the first cost. The returns have been large. Has it been a good investment ? AX UNEXPECTED LOSS. 137 Compound interest of $2000 for 3 yrs. @ 6 per cent. = $2S82 02 15 per ct. of $2000 at comp. int. 2 years = $337 08 12 " " at int. for 1 year = 254 40 9 per cent, cash 180 00 § of first outlay .'. 1333 34 2104 82 Difference $277 20 Here the actual loss compared with a 6 per cent, investment is |277.20, or nearly one hundred dollars a year ! Yet there are many persons who continue making investments of this kind, and seeing they receive a hand- . sopie interest on their money, and the aggregate foots up more than the principal, imagine they are improving on the 6 per cent, plan ! A person who has dealt largely in fire-insurance stocks told me recently that although the dividends paid had often been ten per cent, yearly, that a close estimate since 1866 had convinced him that this stock, as a rule, does not pay six per cent, even in first-class companies, an allowance having to be made for assessments, for buying above par, for risk of principal, etc. Having now clearly before our minds how to judge of investments, it is time to proceed to their various descriptions. All property is divided into two kinds, real and per- sonal, the former embracing land and houses ; the lattei', all other varieties. Hence, investments are either in real estate or personal property. "l2* 138 INVESTMENTS. REAL ESTATE INVESTMENTS. Land is either improved, that is, yielding an annual return from cultivation or the rental of buildings upon it ; or unimproved, that is, in an uncultivated state and without buildings, and generally not fenced. Some of the largest fortunes in the United States have been made by investments in real estate; but these investors have enjoyed good judgment and rare fortune. •Many others have lost heavily, or have kept themselves " land poor," as western men say, all their lives. In buying real estate the first point to be considered is the title. The most direct way for the purchaser to ascertain the validity of the title of an estate is to engage some compe- tent person to examine the Records. He should also ascertain, by personal examination and inquiry, if there exists any incumbrance by grant, prescription, or necessity (not on record), such as a right of way, drain, ancient lights, fence, privy, pump, door, overhanging eaves, trees, water-course, nuisance, etc., and if the taxes and assess- ments have been paid, or the estate been sold for the taxes ; or he may discover, when too late, that he is deprived of light, water, air, or other valuable privilege ; and the warranty may prove utterly worthless, by the insolvency or removal of the grantor. "Where land is described by "metes and bounds," and as containing a certain number of acres, or feet, the HOW TO BUY LAND. 139 description does not amount to a warranty that there is that quantity (especially if the words " more or less " be added), and if described as bounded by a river or creek, the line runs through its middle. Many water rights have been lost by disregarding this. The mortgages and other liens should be closely scru- tinized by searches in the proper offices, and the history of the property in the form of a " Brief of Title," should in all cases be demanded. The interest and taxes should be paid on the property and on liens against it by the seller up to the date of delivering the Deed, and he should be required to produce and deliver the receipts. The insurance policies should be assigned at the same time. If a Judgment (see this word in the Index) is entered against the property, a E-elease by the creditor who holds it should be forthcoming. If the buildings are so recent that the limitation of time for filing a Mechanic's Lien has not yet expired, the seller should furnish a Bond of Indemnity to guard against such a lien by a workman. If a farm, every field should have water for stock, and the right to use any flowing stream for mill purposes, should be investigated. The healthfulness of a situation affects the value of property. The house should be dry and not damp, with free drainage, absence of bad smells, the walls dry, the roof water-proof, the cellars free from water, the chimneys with good draft, the washing and drinking water pure and soft, and generally the buildings in good repair. If 140 INVESTMENTS. occupiea by a tenant, his lease must be closely scanned, to see that he has no injurious privileges. Finally the Deed should be drawn and executed with the utmost accuracy. Many thousands of dollars are lost annually by inattention to the proper formalities of a Deed. Conveyancers and attorneys are often careless or ignorant, and every real estate buyer should be able to judge of all the essential points in a Deed. I shall describe them in detail in the second Part of this book. (See Index under Deeds). If two or more persons enter into an agreement for the purchase of an estate, an article should be inserted between themselves, that in case default is niade in either to pay his part of the purchase money, and the other piiy it for him, the one who pays shall be entitled to call upon the seller for a conveyance of the entire estate to hold as security for repayment — as it is considered he will not otherwise have a lien on the estate for his money. In purchasing an estate where the owner lives at a distance, the purchaser should take a covenant from the attorney, that the power is not revoked — that covenant to remain in force until the deed be confirmed by the owner. Land is undoubtedly a safe and profitable investment in this country, and the largest fortunes have been made by a rise in the value of real estate. When we consider that the population of this country is increasing at the LAND SPECULATION. 141 rate of nearly 4 per cent, a year, and mucli faster in some States, and that in less than half a century hence, within the lives of many of us, this country may contain one hundred , millions of inhabitants, it requires no gift of prophecy to forsee that land, in good locations, is destined to reach a value which would now seem visionary. But in making investments in land, or in anything else, a man must be careful, unless he wishes to become a land speculator, which is a business no safer, nor more profit- able in general, than any other, and which must be man- aged on the same principles, that he does not withdraw from his business more than the actual surplus profits not needed to insure its future productiveness. INVESTMENTS IN IMPROVED REAL ESTATE. The advantage of improved real estate is that it yields an annual percentage on the money invested, in the form of rent. Allowing that the rent pays only the insurance, taxes, and necessary repairs, and the natural- increase in the value of the property amounts to 6 per cent, per year, the investment fulfils all the conditions of what I have described as a good one. The latter possibility depends, however, too much on contingencies to satisfy a rigidly careful man ; and sound discretion dictates the maxim not to buy improved I'eal estate unless the actual rental will pay at least 6 per cent. on the principal invested, above taxes, insurance, and probable necessary repairs, for several years. This 142 INVESTMENTS. insures compounding at 6 per cent., and a probable margin from natural increase in value, either to expend on finer buildings, etc., or to have as additional profit on selling. A usual calculation in our leading cities is that a property should not be bought for investment at more ' than ten times its rental ; or, in other words, you should be able to secure a permanent tenant at a rental of 10 per cent, of what you pay. The most profitable improved properties in cities are stores and tenement houses, or very small dwellings. The latter yield frequently 10, 12, 16, and even 18 per cent, net, but they require constant and unpleasant attention to secure the rent. Stores or business locations, such as offices and shops, are more suitable to women, non-residents, and invalids. Farms in the Atlantic States have of late years been poor investments, renting at about 3 per cent., and diffi- cult to sell. In the Mississippi valley, they are little better, except the natural increase in value is much greater there. Farms in some of the best portions of Pennsylvania sell no higher now than they did fifteen years ago. To secure returns from improved real estate, much depends on drawing the proper kind of leases. It is to the owner's interest that these should rarely be for more than one year, when they can be renewed, if desired; that security be given for the rent ; and other points to be mentioned hereafter. (See Lease, in the Index.) No BUYING WILD LANDS. 143 owner should give a lease allowing the tenant the option of purchase at a fixed price at the end of the term. Careful landlords have renounced that practice. INVESTING IN UNIMPEOVED LAND. Unimproved land usually consists either of city lots or wild land. Lots are sold in Boston and New York by the square foot, in Philadelphia by the front foot. In the latter city the price is usually quoted at the interest for one year at 6 per cent of the principal asked. Thus, when a lot is quoted at $6.00 per foot, it means that its price is $100.00 per front foot on whatever main street it borders. As city lots return no income, and are taxed heavily, and also as they are liable for special taxes for grading, paving, and draining the streets, they must rise in value at about 12 per cent, per annum in order to make them desirable investments. In many instances, they do this and much more. They can often be rented for coal and board yards, for enough to pay these charges, and then, to a person who does not need the interest, are valuable properties. Wild land can be purchased from the United States Government, some State Governments, and many Western Railroad Companies. Its price per acre from the United States is $1.25; its divisions according to the Government surveys are into townships, six miles square. 144 INVESTMENTS. each of which contains 36 sections of one square mile, or 640 acres each. When bought from the United States, it is " entered up " in the official land offices. There are State and general laws impeding the pur- chase of large tracts of public land for investments. An actual settler, on a tract has the right of " preemption," or purchase in preference to a mere investor. Non-resi- dents are limited to the amount they can hold, and their land is generally assessed more highly than that of resi- dents. No one should buy land which they have never seen, unless they have the services of an agent of sound judg- ment, experience, and honesty. Otherwise, as has often happened, they may find they have bought a tract located in sterile soil, devoid of water, in a swamp, or, as I knew one instance, in a lake. INVESTMENTS IN PEESONAL PEOPEETY. The standing objection to real estate investments is the annoyance and difficulties in collecting rents, repairing, drawing leases, and of realizing the money when it is wanted. Hence there are several reasons why persons not able or willing to give attention to details of that nature, should prefer to place their means in the form of personal property. The security can be perfect, the returns prompt and readily collectible, and if they are not so large at times, they are more certain. J'or trustees, widows, single women, and retired men of business, loans WHAT A MORTGAGE IS. 145 on real estate security stand at the head of the list as good investments. Such loans are usually secured by MORTGAGES AND DEEDS OF TRUST. A mortgage is a pawn of lands and tenements, as security for the payment of a debt ; and if the money be not repaid at the time agreed upon, the creditor may take possession of the property, by what is termed a fore- closure, subject, however, to the debtor's right of redemp- tion. In some States it is the practice to insert in a mortgage an absolute power of sale; by which the mortgagee, in case of breach of condition, is enabled to sell, and without the aid of any court, destroy the right to redeem in the mortgagor, and all claiming under him. The mortgagor, until failure of payment of principal or interest, is to possess and enjoy the projjerty mort- gaged ; and though failure be made, he and his repre- sentatives have a right" to redeem the mortgage, which in law is termed the equity of redemption ; the time of which varies in different States, from one to twenty years from the breach of the condition of the mortgage. Mortgages of real estate must be acknowledged and recorded in like manner with deeds. Mortgages are numbered first, second, third, etc., in their order of time. A first mortgage is superior to all others, and some careful investors refuse to loan money except on a first lien. The reasons of this are, that if 13 146 INVESTMENTS. the property is sold to pay the debts, the first mortgage must be paid in full, principal and interest, before any- thing is paid on the second. Again, the holder of a second mortgage cannot foreclose and complete the sale ■without the concurrence of the holder of the first lien. But the latter can sell without notifying the former. If the property depreciates through loss by fire, flood, etc., the first mortgage has still sufficient security, but the second or subsequent mortgages may have all their se- curity swept asvay. Finally, should the holder of the first mortgage wish to realize on it before it is due, he can nearly always sell it at its par value, but a second mortgage must generally be sold at a discount, and often at a heavy one. A safe rule is not to loan on mortgage for more than one^half of the value of the real estate ; and the mort- gage should read that the principal becomes due and col- lectible if the interest is not punctually paid, semi- annually. Deeds of Trust are more common in the Western States than east. They convey the land which is given as security for the payment of a promissory note, to some third person, with full authority to sell it by public sale if the note is not paid when due, and to apply the pro- ceeds of the sale to the payment of the note, interest, costs, etc. Such a deed is executed and recorded as any other deed, and is in all respects as safe and eligible a security as a mortgage. WHAT A BOND IS. 147 ■ Of course in both cases the title of the land must be valid, for one man cannot mortgage another's land, even unwittingly ; the property should be worth the face of the obligation at all times ; and no previous lien should be upon it. CHATTEL MOETGAGES. This name is applied to a mortgage or conveyance of goods and chattels to a creditor as security for a loan. The creditor either assumes immediate ownership of the goods, or iiles the chattel mortgage with the town clerk or other proper officer, which is constructive notice to all concerned that the goods in equity belong to the creditor until the mortgage is paid oif. There are a number of special enactments in the various States about these liens, and they are very justly regarded as an inferior security. BONDS. A Bond is defined by legal writers to be an obligation by which a person binds himself, his heirs, executors, and administrators, to pay a certain sum of money to another on an appointed day. Many bonds are issued by States, cities, counties, and corporations, and put upon the mar- ket, and sold for what they will bring. Sometimes to these bonds are attached what are called " coupons" or certificates of interest, each of which is a due bill for the annual or semi-annual interest on the bond to which it is attached, representing the amount of the periodical divi- dend or interest ; which coupons are usually cut ofij and 148 INVESTMENTS. presented for payment as they become due. These bonds and coupons are signed by the proper officers, and like certificates of stock, are negotiable by delivery. " Coupon Bonds" are payable to bearer ; and if lest or stolen, the amount cannot be recovered from the govern- ment or corporation issuing them. They are, therefore, unsafe to keep in private hands. " Registered Bonds " are those payable to the " order " of the holder or owner, and are therefore more secure as investments. A " Judgment Bond " is a bond given by an indivi- dual, with an official power to seize his property to pay the debt, unless met when mature. Such a bond binds the whole of the debtor's property, real, as well as per- sonal. It should be " entered up " against him in the proper county office, which serves as a legal notice to all future creditors that the estate is indebted to the amount of the bond. Personal bonds can hardly be deemed first-class invest- ments. Unless recorded, they do not prevent a mortgage of the real estate, or a sale of it, and the mortgage will take precedence of the bond in many States, unless the latter is " revived " every few years. They have more- over no direct control over personal property until the sheriff receives a writ of execution, before which time the giver of the bond is free to dispose of all his personal estate. In this respect they are inferior to a chattel mortgage. Moreover, according to the laws of many JUDGMENT BONDS. 149 States, they lapse after a short term of years, five or six, and unless "revived," can only be collected after all other liens previous to the time of lapsing are paid,- whether these are bonds or mortgages. A Judgment Bond is usually given with a mortgage, the advantage in this to the lender being, that in case of non-payment of interest, he can at once levy on the per- sonal property of the debtor, without going through the more tedious formalities requisite to sell real estate at sheriff's sale. UNITED STATES GOVERNMENT BONDS. The Bonds issued by the United States Government for the payment of the expenses during the war are justly regarded by capitalists as unexceptionable invest- ments in point of security. They are of different rates of interest, times of payment, and names. The follow- ing is a list of them : Sixes op 1881. — Dated 1861, and redeemable in twenty years from January 1st and July 1st of that year. Interest G per cent, in gold, payable semi-annually — January 1st and July first. These Bonds were issued in three series : Under Act Februafy 8, 1861, $18,415,000 ; dated variously in 1861. Under Acts July 17, and August 5, 1861, $50,000,000 ; dated November 16, 1861. Under Acts July 17, and August 5, 1861, in exchange for 7-30s, 1139,317,150; dated November 16, 1861. Under Act March 3, 1863, and principal made espe- 13* 150 INVESTMENTS. cially payable in gold coin, |7 5,000,000; dated June 15, 1864. Total issue, $282,732,150. Five-Twenties op 1862. — Commonly termed Old Five-Twenties, dated May 1, 1862. Redeemable after five years, and payable in twenty years from date. Interest, 6 per cent, in gold, payable the 1st of May and Novem- ber. Issued under Act February 25, 1862, $614,- 771,600. Five-Twenties op 1864. — Dated November 1, 1864. Redeemable after five, and payable in twenty years. Interest six per cent, in gold, payable 1st of May and November. Issued under Act March 3, 1864 (principal specified as payable in gold), $3,882,500. Issued under Act June 30, 1864, $126,561,300. Total issue, $129,443,800. Five-Twenties op 1865.— Dated July 1, 1866. Interest 6 per cent, in gold, payable January and July. They are redeemable in five years, and payable in twenty years. Issued under Act March 3, 1865, in exchange for 7-30 notes converted, and amount, August 1, 1868, to $372,346,350. Five-Twenties op 1865. — Dated November 1, 1865. Redeemable after five, and payable in twenty years, Interest six per cent, in gold, payable 1st of May and November, Issued under Act March 3, 1866, $197,777,260, Five-Twenties op 1867. — Dated July 1, 1867. Redeemable in five, and payable in twenty years. UNITED STATES BONDS. 151 Interest, 6 per cent, in gold, payable 1st of January and July. Issued under Act March 3, 1865, in exchange for 7-30 notes, and amount, August 1, 1868, to $371,- 346,350. Five-Twenties of 1868.— Dated July 1, 1868. Redeemable in five years, and payable in twenty years. Interest, 6 per cent, in gold, payable January and July 1st. Issued under Act March 3, 1865, in exchange for 7-30 notes, and amount, August 1, 1868, to $39,00.0,000. Ten-Foeties. — Dated March 1, 1864. Redeemable in ten, and payable in forty years. Interest, 5 per cent, in gold, payable on 1st of March and September, on all Registered Bonds, and on all Coupon Bonds of the denomination of |500 and flOOO. On the $50 and $100 Bonds interest is paid annually, March 1st. Issued under Act March 3, 1863, and Supplement March 3, 1864, principal payable in gold, $194,291,500. U. S. Pacific Railroad Cueeency Sixes. — Dated January 16, 1865, and variously thereafter. These Bonds are issued by the Government, under Acts July 1, 1862, and July 2, 1864, to Companies receiving their charter from Congress, which gives them the right to construct railroads to and from the Pacific Coast, and on the completion of each twenty miles of track, to receive at the rate of $16,000, $22,000, or $48,000 per mile, according to the difficulty of constructing the same. They are payable thirty years from date of issue, and are registered in Bonds of $1000, $5000, and $10,000. 152 INVESTMENTS. Amount issued to Sept. 1, 1870, $64,618,832. All of the Bonds are issued " Coupon " or " Registered." Coupon Bonds can be changed into Registered Bonds, but Registered Bonds cannot be changed into Coupons. Coupon Bonds are in denominations of $50, $100, $500, and $1000 ; the Registered Bonds the same, with addi- tion of $5000 and $10,000. Six per cent Bonds (^payable thirty years from date) issued to the Pacific Railroad Companies, interest payable January 1, and July 1, in Lawful Money. Authorized July 1, 1862, and July 2, 1864 : Charactei- of issue. Anioimt outstanding. Bonds, (Union Pacific Company) $3'7,236,512 00 Bonds, (Kansas "Pacific, late tJ. P., E. D.) 6,303,000 00 Bonds, (Sioux City and Pacific) 1,628,320 00 Bonds, (Ce.ntral Pacific) 25,881,000 00 Bonds, (Central Brancli Union Pacific, as- signees of Acliison and Pilce's Pealc) 1,600,000 00 Bonds, (Western Pacific) 1,970,000 00 $64,618,832 00 Five per cents. — This is a consolidated loan, authorized by Act of Congress in 1871, to allow the Secretary of the Treasury to merge into a large loan at a lower rate the various denominations as they fall due. U. S. 6 per cent. Bonds are always above par, and although the interest is paid on many in gold, they can- not often be purchased so as to yield 6 per cent, in gold at par. The Bonds which bear 6 per cent, interest in gold, and have the longest to run, are the highest priced. The most desirable, therefore, are the " 6s of '81." FINANCIERING. 153 STATE, COUNTY, AND CITY BONDS. Many of these are well-secured, pay the interest promptly, and are easily sold. The rate varies from 6 to 8 per cent, per annum. Most of them are clear of taxes, and several pay both principal and interest in gold. Those which are first-class are usually 1 to 6 per cent, above par, so that there is a small loss on the first pur- chase. Western cities are generally heavily in debt for public improvements, and their bonds are not favorites with investors. The same is true of a number of county and town liabilities. "Financiering" too frequently means an ability to invent means to escape paying just debts ; and the infa- mous word " repudiation " has been too much in the mouths -of politicians, for the benefit of public credit in this country. It is an outrage on common justice, that any government — an institution erected to sustain probity and punish evil-doing — should set such an example of common rascality, as to evade its lawful obligations. Such actions have materially weakened the confidence which ought by right to attach to every obligation issued by a State, county, or municipal government ; as it is, all such investments must be made with caution, and only after investigation of the sentiments of the councils and legislatures concerned. Those who have no opportunities for this, should leave them alone. 154 INVESTMENTS. BUILDING ASSOCIATIONS. In several States, especially Pennsylvania, there are enactments providing for the formation of Building Associations, for the double purpose of offering safe and profitable investments for persons of limited means, and also for the benefit of those who desire to secure the ownership of a homestead at an annual outlay not more, or but little more than they would be obliged to pay for rent. As created by statute, some are permanent, others tem- porary. The general principles on which they are formed, are as follows: A considerable number of shares are created, and there is only one class of stock- holders. The original capital is derived from monthly instalments paid upon the stock, about $1.00 per share on an average. The company is governed by a Presi- dent, Treasurer, Secretary, and Board of Directors elected by the stockholders. The money received is loaned to stockholders only, and to those who are willing to pay the largest premium for its use. The interest is at legal rates, but payable monthly, and the principal is secured by purchase money mortgages on buildings bought. Should a member wish to withdraw, he receives back all he has put in, with such additional interest, usually 6 per cent., as the By-laws of the Association prescribe. And should he fail to pay his monthly dues, he is subjected to a small fine each month. LOAN ASSOCIATIONS. 155 It will be seen that four sources of profit are open to the Association : premiums on loans, monthly interest on loans, fines, and the profits beyond 6 per cent, on with- drawals. No money remains idle in the treasury, for there are always applicants ; those members who borrow are enabled to buy a home; those who merely invest, obtain an excellent percentage, for when the actual value of each share by the accumulation of profits reaches a fixed sum, say $200.00, the Association dissolves, and each shareholder is paid in full. Rightly managed, these are beneficent institutions for both classes. The objections to them are that much of this success depends on honest and judicious management, which is not always found ; and that the inconvenience of punctually meeting a monthly payment often involves a fine, and this reduces the individual's profits. These are dangers which can be guarded against, and these aside, such associations offer safe and profitable invest- ments, especially for those of limited capital. Loan Associations on a similar plan are also organized in most cities. Some of them are not averse to taking other collateral besides real estate, and offer all the advantages of the French Monts de Piete, or Government pawn-broking establishments, to both investors and borrowers. LirS INSUEANCE. The rivalry between the numerous Life Insurance companies renders it quite certain that no one will escape 156 INVESTMENTS. the pressing solicitations of their agents. These gentle- men are accustomed to insist that every one, rich or poor, married or single, healthy or sickly (for some companies insure all lives, doubtful ones on conditional policies), ought at once to take out a policy. If a man has others dependent upon him, is in a busi- ness involving much risk of capital, or livuag upon a fixed salary allowing but little saving, he should insure his life in some stable, trustworthy company. Otherwise, while it may be a prudent investment, it is not essential to prudence. He who lives on an income from first-class investments, or who is in a business that involves small risks, as farming, if a careful man, can do better with his spare cash than pay it out on life policies. The arguments I have heard used by some agents to the effect that once having a policy, economy and caution in transactions become superfluous beyond providing enough to pay its premium, as one's family is sufficiently protected, are dangerous and evil doctrines, calculated to do far more harm than life insurance does good. If such were the consequences of insuring life, too much could not be said against it. Companies should be critically scanned before selecting one. Some that have had even high reputations have failed within the past few years, and those who had paid large sums in premiums have lost every cent. There is no security that the best Board of Directors may not be followed by one composed of speculators and cheats. LIFE POLICIES, 157 No prudent man will take a policy which may be for- feited, if he does not continue payment upon it. The accidents of life, affections of the mind, and the pressure of immediate wants, may prevent him from meeting the payment punctually, and then he must lose his whole amount. This is signal injustice. The policies issued by a company should be narrowly examined by every one proposing such an investment. Many of these documents are legally invalid, and the companies who issue them could not be forced to pay ■ them. They contain, for instance, a clause referring to the state of health and physical condition of the applicant, reading, " providing, that the above statements are true . and correct in every particular," then the company obli- gates itself to pay. This places the burden of proof on the applicant or his heirs, and sudh a policy cannot vir- tually be collected. It has been maintained by some careful calculators that a man twenty-five years of age, who insures his life for $5000, for which he pays an annual premium of eighty dollars, will pay in twenty-four years some thirty dollars more than his family will receive at his death, and if he lives to seventy-five years of age, will have paid in prin- cipal and interest some $35,000. To be sure, no one is certain of prolonged life ; but if there is reasonable doubt about it, no well-managed company will take the risk. Life Insurance companies are of three kinds. The 14 158 INVESTIIEXTS. first are the joint stock companies. They are established in the same manner as other joint stock companies, have an actually paid up capital, and insure for certain fixed sums, without any participation in the profits, which are divided among the proprietors of the capital stock. The second kind is the mutual, which is similar in principle and organization to Mutual Fire and Marine Insurance Companies. The act of incorporation usually prescribes that the company shall not issue a policy until a certain sum is subscribed, the premium on which is their capital. In mutual offices, the whole profits, after deducting expenses, and a proportion for a guarantee fund, is divided among those who are holders of policies for life. The third class may be termed the mixed — they are joint stock companies* with a paid up capital ; but, in- stead of giving merely fixed sums to the insured at the termination of life, they, after paying the stockholders simple annual interest, and setting aside a contingent fund, divide the balance of the net profits among those who have taken out policies for life, and generally in the proportion of one-third to stockholders and two- thirds to policy holders. Policies are divided into two kinds — one, in which the assurance is payable at the decease of a person, and conditioned therefore upon death ; the other, in which the assurance is payable if a person is alive at a certain time, and is conditioned upon life. All policies must VALUE OF PRUDENT HABITS. 159 be of one or other of these two kinds ; for they must be conditioned upon either death or life. The former is called a Life Policy — (perhaps by contrast) — the latter an Endowment Policy. Each has several varieties, which it is needless to describe here. Life Insurance policies can be sold, or passed as colla- teral for a note. In most cities there are persons who transact this special line of business. The rule for as- certaining the market value of a Life Policy is this : — The present worth equals the sum to be received at death, minus the sum of the value of the life from the tables, plus the value of the annual premium paid. SAVINGS BANKS. Long experience proves that no more certain plan of inculcating prudent and temperate habits, modest liv- ing, and general well-being in a commiinity can be de- vised than to afford the poorer classes facilities for saving their small gains, and increasing them by interest. The animosity between capital and labor, money and work, is diminished, for even the poorest is thus enabled to taste the pleasure of witnessing his capital increase without toil. Hence Savings Banks deserve to be regarded as phi- lanthropic and beneficent institutions of the highest value in a community, provided they are perfectly solvent. This the most stringent laws should force them to be, for the failure of one of them has a more disastrous moral effect on a community than the insolvency of a half-dozen 160 INVESTMENTS. railroads. The man or woman who thus loses the little earnings of years, will not again try to save ; faith is lost, and the tempter is ever ready with the advice to " enjoy your money, as you receive it." Most savings banks pay about five per cent, per year, and allow a deposit to be withdrawn at a few weeks' notice ; others pay six per cent. ; and in New Jersey there are several that pay seven per cent., quarterly, or if both principal and interest are allowed to remain, compounding interest quarterly. This they can safely do, legal interest in that state being seven per cent., and their capital being so large that a profitable business can be done by the bank with entire safety, and yet allow depositors this handsome return. Now, as a sum at seven per cent., compounded quar- terly, will double itself in about nine years, the laboring man who saves one hundred dollars a year or about a quarter of a dollar axlay, and deposits it in such a bank, will find himself in a score of years worth nearly five thousand dollars, from this source alone, without any trouble and with hardly any self-denial! He should aim to. do this for every child that is born to him. A Life Insurance policy does not offer as large a re- turn as this, and Life Insurance companies are not safer, indeed are on the average less safe, than well conducted Savings Banks. For those whose gains are small, or who do not wish to be troubled with the anxieties and risks attendant on most investments, these institutions HOW TO JUDGE OF RAILROADS. 161 oflfer the most secure and ready means of saving. But here, as elsewhere, the prudent investor will not " put all his eggs in one basket," as the homely proverb has it, but will make his deposits in several different banks, choosing those of long standing, large capital, and sound reputation. RAILROAD SECURITIES. The enormous amount of capital required to construct and equip new railroads is principally obtained by sell- ing their shares and bonds. The most persistent and desperate efforts are made to obtain a sale for these, and every resource of financial skill is exhausted to persuade the public that they are safe and profitable. Inspired by heavy commissions offered by the companies, brokers and bankers use all their wits to magnify the prospective earnings of a line, and to conceal its drawbacks. Many a man who has saved a few thousand dollars by a life of rigid economy, many a widow who anxiously hoped to increase her slender income by a higher rate of interest, and thus educate her children, have realized too late the cruel falsity of these glowing advertisements. Yet there are certain tests which can readily be applied, and which in most cases will guard investors against such mishaps. In the first place, no one should invest in a railroad jar from Ms place of abode; in the extreme South or West for example, if he lives in New England. It should not only be near him, but he should know 162 INVESTMENTS. personally something of the country through which it is to pass. This will enable him to apply a second test. If the road will have to make its trade, that is, if it passes through a sparsely settled and poorly cultivated region, and does not connect any two important highways of commerce, then it will at best have a long and strug- gling period to live through before it can pay a dividend from its net proceeds. Many roads borrow money to pay the handsome divi- dends they declare, or they pay it from the proceeds of bonds sold, that is, from their principal. When this is ascertained, its obligations should be avoided. The names of the President and Directors of a road, no matter who they are, should have no influence in deciding the question of investment; partly because their real interest in it is not knovrn, and partly because their tenure of olfice may be but brief, and they may be followed by men of the most objectionable financial character. The stock of a railroad is almost proverbially an infe- rior investment for any but those who " manipulate " it i. e., gamble in it. The bonds, especially the first mort- gage bonds, when guaranteed as they sometimes are by the State or another company, are much superior, though of course only a fixed interest can be collected upon them. Guarantees of this nature are, however, often purely deceptive, and are obtained with that intention. The EAILEOAD GUARANTEES. 163 guarantee which is so prominently set forth may be for a single year only, or under cei'tain provisos which make it virtually inoperative. It is a mere bait to lure investors. If a railroad company refuses to pay its interest, the moderate investor who has his few thousands at stake, can really do nothing whatever in law. He will learn that these powerful companies laugh at the legal weapons which are so terrifying to individuals ; and that any attempt to force them to honest dealing costs him far more than he gains by his suit. Those who have but' little, and do not wish to lose the interest on that, will act wisely not to invest it in railroad stock at all, and only to buy the bonds of those roads which are actually completed, which pass through a well-settled country, which are paying dividends and interest from their earnings, whose shares are not fluctu- ating constantly in price, and whose officers are at least men of average honesty of reputation. STOCKS. The capital of incorporated companies is generally termed its " capital stock," and is divided into shares ; the persons owning one or more of these shares, being called stockholders. The shares in the United States are generally flOO, |50, or $10 each. The management of incorporated companies is gene- rally vested in officers and directors, who are elected by the stockholders or shareholders ; each stockholder, in 164 INVESTMENTS. most cases, being entitled to as many votes as the number of shares he holds ; but sometimes the holder of a few shares votes in a larger proportion than the holder of many. The accumulating profits which are distributed among the stockholders, once or twice a year, are called " divi- dends," and when " declared," are a certain percentage of the par value of the shares. In mining, and some other companies, where the shares are only a few dollars each, the dividend is usually a fixed sum " per share." Certificates of stock are issued by every company, signed by the proper officers, indicating the number of shares each stockholder is entitled to, and as an evidence of ownership ; these are transferable, and may be bought and sold like any other property. When the market value equals their nominal value they are said to be " at par." When they sell for more than their nominal value, or face, they are said to be above par, or at a " premium " ; when for less, they are below par, or at a " discount." Quotations of the market value are gene- rally made by a percentage of their par value. Thus, a share which is $25 at par, and sells at $28, is quoted at 12 per cent, premium, or 112 per cent. There is almost an unlimited number of stock compa- nies constantly advertising their shares, and attempting to induce capitalists to invest in them. A few return large profits, some a fair interest, the vast majority yield nothing but disappointment and loss. GOLD MINING. 165 One cardinal principle should be observed by all who buy stocks for investment. It is this : Never to buy a dollar in any company except where you buy enough to have a controlling influence, and have time and know- ledge enough to look after your money. If your stake is then lost, you at least have had the opportunity to use all your ability to save it, — which is not the case if you are only one of a number of small shareholders. MINES AND MINING STOCK. The exhaustless mineral wealth of our country gives occasion to the formation of numerous companies, who issue stock, and on the proceeds of its sale, exploit the mines they own. The gorgeous reports from the Dorado of the West, the expectations confidently formed on an assay of samples, and the attractive display of " veins " on the plans, have turned the heads of even cautious men, and the assertion may almost be ventured that as much money has passed across the Mississippi west, to develop the mines of precious metals in the Rocky Mountains, as has ever been returned east, in the shape of bars, bricks, and nuggets. Th'e few eminently successful mines have been heralded in all the newspapers ; the numbers of failures have never been counted. They are to the former a hundred to one. Mining machinery is enormously expensive, and its trans- portation involves heavy outlays. It costs $150,000 to erect a quartz mill with thirteen stamps, and the necessary 166 INVESTMENTS. apparatus for refining the ore. There is no trusty check on those who work the mine. Moreover, it has been shown over and over again by the most conclusive statistics, that mines of precious metal pay less than mines of base metal. The gold fields of Nova Scotia are far more convenient of access than those of Idaho and Arizona; they are probably equally rich; they are worked with judgment and economy, and their returns are only from 3 to 11 per cent. Coal, iron, and lead mines are more profitable than those of gold and silver; but when worked by stock companies, the profits rarely reach the pockets of the small shareholders. Shares of mining stock cannot, in conclusion, be recom- mended to any one, except the person who is ready to go to the mine, to live there, and lend his personal aid to its development. This, however, is to make a business venture, not an investment, a distinction it is well to observe. SPECULATION IN SECURITIES. The fluctuations in stocks and bonds are brought about for the most part by other agencies than their intrinsic values, or the wants of investors. Brokers and specula- tors buy and sell them in large quantities, trusting to superior information, powerful coalitions, or other luck, to win money by the transaction. So much does their action influence the soundest securities that all should understand it. BEOKEES' TERMS. 167 Speculators frequently buy and sell bonds, gold, etc., at 30 days, using the terms " seller 30 " or " buyer 30," (or " seller's option " and " buyer's option"). This signi- fies, if the term " seller 30 " is used, that the seller of the stock can, any time during the thirty days, deliver the stock to the buyer, and receive his money ; if " buyer 30" is used, the buyer has the privilege of calling in the stock bought, any time during the 30 days. This practice, as will be seen at a glance, gives a great range for speculation. To illustrate: Suppose that A sells to B 500 shares of stock at 36 per cent, dis., " sel- ler 30," now it is not at all probable that A has this stock on hand that he has sold to B, but expects to be able to purchase it before the expiration of the 30 days, at something less than he sold it for. This is called sell- ing " short." It not unfrequently occurs, in transactions such as this, that A may not wish, or B require, the de- livery of the stock when the time arrives ; if this is the case, A simply pays, or receives from B, the difference between what the stock was sold at, and what it is worth at the time of settlement. In purchases like the above, unless the parties are known to be reliable men, a certain amount of money must be put up, termed a " margin," that may be considered sufficient to cover fluctuations in the value of the stock. Any person may buy or sell stock through a broker at " buyer 30 " or " seller 30 " by putting up what the broker may consider to be a suf- ficient " margin." Interest is generally allowed on this 168 INVESTMENTS. margin, and most brokers do not hesitate to speculate in this stock which belongs to their customers. Where there are a number of brokers operating in any one stock, they are, according to brokers' phrases, divided into two classes, called "Bulls" and "Bears." The " Bear " is always the seller, while the buyer is ahvays a " Bull." If A sells to B stock at 97, " seller 30," he is evidently a " Bear," as it is to his interest to constantly bear down the price of the stock he has sold, so that he may be able to purchase at a price less than 97, while it is always the interest of the buyer to " Bull " or raise its value. These operations become more complicated as efforts are made to recover losses. Thus, if I have bought min- ing stock at $12.00 per share, and in a few days it sinks to $9.00, and I have information which leads me to expect a still further decline, say to $6.00 per share, my policy may be either to buy largely in order to induce a reaction and raise the firice to $12.00, so that I can sell all without loss ; or else to sell short, double the number of shares that I have, say at $9.00, hoping when the time for delivery comes, I may buy them at $6.00, and thus clear $3.00 a share, or an amount equal to my loss on those I bought at $12.00. Or, I may suddenly flood the market with a large quantity of a really valuable stock, offering it below the market price, " seller 30."' An alarm is created, and others hasten to sell also ; the price is reduced consider- A COENEE IN STOCKS. 169 " ably below what I sold for ; I then buy enough to meet all my contracts and net the difference between the two prices. Again, what is called a " corner " is formed by a num- ber of speculators secretly buying up as low as they can all of a particular stock ; they then buy in open market at buyer's option all that is offered ; on a given day they call it all in ; there is an immense demand and none to sell ; the victims pay the difference — are " cornered," and the owners of the stock hurry it on the market at its then high rates. Such transactions illustrate clearly how absurd it is for any outsider to venture into speculative investments. Such combinations as I have described are carried on with profound secrecy, and by men of vast experience and immense capital. The novice is as certain to lose in the end as if he played at a gaming table, where there is 'a constant and large percentage in favor of the banker. 15 CHAPTER VII. COUNTEEPEITS, FOEGEEIES, FRAUDS, AND FAILTJEES. How to detect counterfeits — An inspection of a banlt-note is enough — Altered Bank-notes — " Pieced " banlc-notes — Selling counterfeit money — The "boodle game" — The detection of forgeries — The prevention of forgeries — Confidence operniions — Tricks with mer- cantile paper — "Kiting" — " Dummies" — Void notes — Stock swin- dles — " Washing stocks " — " Watering stocks '' — " ^Freezing out" — Gift enterprises — Goods sold under cost — Advertising swindlers — Curious history of one's operations — Failures and their causes — The most common cause- — -Indorsing — Bad habits — Why men fail to " get on in the world " — Extravagance — Who waste most money, men or women ? — A hint about marriage — Speculation and out- side operations. ■ Y treatment of the subject of business would be quite incomplete were I to omit a chapter on the various deceptions and swindles, by which money is wheedled out of the hands of those who have it. The ingenuity of a countless army of sharpers is con- stantly at work in this country, devising plans to obtain funds dishonestly, without work, I was going to say, but in fact they often expend more time, skill and labor in carrying out their nefarious schemes, than would serve to earn the sum they finally secure, by honest labor. 170 VALUABLE RULES. 171 Every business man must, therefore, be on his guard, and ought to acquaint himself with the most approved means of detecting and avoiding the most common swindles. This is just as necessary as it is to lock his books in his safe on going home, or to deposit his cash in bank instead of carrying it on his person. I shall first explain HOW TO DETECT COUJSTTEEFEIT BANK-NOTES. It is no exaggeration to say that hvmdreds of thousands of dollars in counterfeit notes are scattered over this country every year by the rascals engaged in that black art. Many are such exact imitations that no mere descriptions, like those contained in the " Detectors," can enable one to distinguish them. Moreover, the country is flooded with a new spurious note long before, the " Detector " has had time to describe it. The only sure protection is to understand how to judge of the engraving on a bank-note. The general principle upon which their detection is based is that almost all parts of genuine notes are engraved by Tnaehinery, while almost all parts of counterfeit notes are engraved by hand. ' The machinery used is too expensive for counterfeiters to purchase, costing from |100,000 to $150,000, all of which would be seized and confiscated were they detected. The work executed by the regular Bank-Note Compa- nies is of great beauty and perfection, and in all its parts 172 COUNTERFEITS, POEGEEIES, ETC. mathematically exax!t. Engraving executed by hand,, or even with the aid of some simple machinery, can never approach the beauty and exactness of such work. The success of counterfeiters in circulating their spurious issues is not at all due to any excellence of work that would deceive a practised eye, but to the general igno- rance of the public as to what constitutes good and poor engraving ; so general is this ignorance, that it is rare to meet a man who knows the object or character of the beautiful devices found upon every bank-note, and which are its only safeguard against counterfeiting. In judging of the genuineness of a note, some look carefully for pin- holes, others for signs of wear, and others examine the paper, all of which are easily imitated by counterfeiters. The photographic and other processes used in counter- feiting can all be distinguished by the same test. The first point to examine critically on a suspected bank-note is the "lathe-work." The various figures upon it, such as the circles, ovals, squares, etc., which usually contain the denominations, are composed entirely of a net-work of fine lines, crossing and recrossing eacli other. On genuine notes these fine lines can be traced with a lens throughout the figure, never irregular, and never broken, or lost in another line. In a counterfeit, on the contrarj'^, it is impossible to produce the perfect line of the genuine, and the effect to the naked eye will be a more or less dull and sunken appearance, and sometimes a " scratchy " look. The THE LATHE WORK OK NOTES. 173 figure will also be darker or lighter in spots, because the lines will be sometimes heavier and sometimes lighter. The lens will also show the lines to be imperfect; some- times broken, irregular in size, and irregular in their course ; and, again, it will be impossible to produce two dies exactly alike, such as occur on the same note. The fine lines used in shading the letters are also pro- duced by a very expensive machine, and cannot be suc- cessfully imitated. The shade is always uniform — no part darker than another — the lines perfect, and the spaces between them exact. In a counterfeit this is more or less dull and sunken, looking as though done with a lead pencil, a,nd may also have the " scratchy " appearance ; and, second, it is impossible to produce two letters with exactly the same shade. The first letters of the name will be lighter or darker than the middle or last ones. The lens will show the lines to be more or less coarse and uneven, frequently breaking, and sometimes ending too soon. This same characteristic of /iwe Zmes of unerring exact- ness, never broken, is seen on the genuine medallion heads, or shields, upon which the denomination of the note is sometimes placed. This nicety cannot be given by hand or with the aid of imperfect machinery. The lines will be found by a close examina,tion to break off in the pattern, and some- times to be forked, and also irregular in size, some coarser and some finer, and one line will not be .of the same size 15* 174 COUNTERFEITS, FORGEKIES, ETC, throughout. The effect of this is that the engraving will have a dull and sunken appearance, more like a wood-cut. The vigiiettes on most comiterfeits are poorly engraved, the portraits having a lifeless expression. The lettering is ordinarily less clear and regular than in the genuine. The printing is sometimes smeared and smutty in appear- ance, not clear and glossy. Genuine bank-note paper is composed of silk and linen, but this paper can be obtained by counterfeiters, and too much importance is often attached to it. HOW TO DETECT ALTERED BANK-NOTES. Genuine bank-notes are altered in two ways, either by raising their denomination "to a higher value, or by changing the name of a broken to that of a solvent bank. The former is the more important. It is done first, by pasting. Figures or letters of larger denominations are pasted over the denomination of the note to be altered, first scraping the genuine until thin. This can frequently be discovered by simply examining it with a little care, and always by holding the suspected note up to the light, when, if pasted, the pasted parts will be darker, because thicker. Second, by taking out the denomination of the genuine with an acid, and printing in a higher with a counterfeit die. In this case, the ink will not be the same as the original, neither will the work compare with the original. GENERAL RULES. 175 If solid print, it will not be as exact and perfect ; and if the original is shaded, the shading of the counterfeit part will have the faults above described. In " greenbacks," the ones, twos, and threes have a circle of green lines radiating from the denomination. This circle can be found on no larger notes than threes, except those which have been altered fraudulently. GENERAL RULES FOR DETECTING SPURIOUS NOTES. It is good practice to compare a counterfeit note with one that is genuine, using a lens, and thus familiarize one's self with the " ear-marks " above described, which can be done very quickly. When you receive a bill, make it a habit to cast your eye across its back and face, and if there is something wrong, it will probably catch your eye. Then examine the various parts more perfectly, examining the lathe work, and if necessary, compare it with an undoubtedly good bill. Then examine the shading of the letters, and look for any indication of alteration in the title or denomination of the note. Then if there are any medal- lion heads or shields; examine the lines. If there is any red letter work, intended to appear on both sides, examine it first carefully upon the face to see the charac- ter of the work, and then turn the note and examine the back, noticing whether the printing on both sides is pre- cisely alike, or whether it varies in any part, in which case it will be of course counterfeit. Then examine the 176 COUNTERFEITS, FOEGEEIES, ETC. vignettes and portraits, noticing whether their style and perfection compare well with the standard work on good notes. An examination of the solid print and engravers' names will confirm the decision, whatever it may be; and the printing, ink, and paper, may also be considered ' in making a full decision. Sometimes counterfeiters make ten bills of nine, by cutting a counterfeit note into ten pieces ; one of these pieces is pasted into a genuine bill, cutting out a piece of the genuine of the same size. In pasting niue genuine bills in this manner, nine pieces are obtained, which, with one piece of counterfeit, will make a tenth bill, which is the profit. Banks will redeem the genuine parts of such bills at their fractional value. This opera- tion is not a very successful one, as the difierence between the counterfeit and the genuine will be very evident to any one who examines closely. SELLING COUNTERFEIT MONEY. Several thousand dollars a week have been made, according to the daily papers, by single firms in New York by selling or pretending to sell counterfeit money. They advertise for " agents," and to inquirers they send circulars with tempting offers (to the dishonest) to buy their pretended counterfeits. They either make no return for money sent them, or send off a box of saw- dust and old paper, C. O. D. ; or, if they get their victims into their dens, fleece them out of all the money THE " BOODLE GAME." 177 they have. No one corresponding with them, or calling upon them, dares to complain, or appear as a witness, lest he implicate himself as one trying to deal in counter- feit money. So the swindlers go on safely, cheating other would-be swindlers. In letters, they offer to send specimens of their money, and forward a genuine note of small amount. The receiver is delighted with its accuracy, and forwards $30.00, $50.00, or more, for a large quantity of it, and never hears from his remittance. Should he apply in person, they practise upon him what in police court slang is called the " boodle game." An appointment is made in the street or some public place, where he is to be ready with his money. The pretended counterfeiter appears with what seems to be a package of bank-notes, a genuine one on top. He exhibits the package hurriedly, receives his pay, and hastens away. The dupe finds all beneath the genuine note is merely slips of brown paper of the shape and size of a note. THE DETECTION OP FOEGEEIES. Next to the counterfeiter, the forger is the most dang- erous criminal in business life. Transactions involving the largest sums of money are completed on the faith in the genuineness of a signature. Hence every effort should be made to acquire the art of detecting an imita- tion at a glance. This can only be done by considerable practice. It is 178 COrnSTTEEFEITS, FOEGEEIES, ETC. asserted that every signature has a character about it which cannot be perfectly copied, and which can. always be detected by an experienced eye. This is problematical, but certainly a skilful bank-teller can hardly be deceived by the forgery of a name of a well known depositor. A business man should accustom himself to scrutinize closely the signatures of those with whom he deals. He should cut off their names from the backs of checks and notes, and paste them in alphabetical order in an auto- graph book devoted to that purpose ; and compare any suspicious signature with the genuine one. In consequence of the numerous frauds committed by forged checks, some of the European bankers have adopted the custom of sending, with their letter of advice, a pho- tograph of the person in whose favor the credit has been issued, and to stop payment when the person who pre- sents himself at the bank does not resemble the picture. If this practice were to become universal, the object of preventing fraud could be well attained. Instead of the signature being forged, the amount of a check, etc., may be altered. This is done either by changing the letters and figures, or by the use of an erasive fluid. The perfection with which the latter al- teration can be performed is so complete that the most skilful eye cannot detect the imposture. A person may deposit a hundred dollars with a house in New York, and obtain their draft for that amount on Philadelphia ; he then alters the one hundred to one thousand by eras- INDESTRUCTIBLE INK. 179 ing a portion of the letters and figures, and cashes the draft at a broker's. The latter recognises the signature, and has no suspicion of the fraud until too late. The means to secure entire protection against this is by using an ink which cannot be erased by chemicals, or at least such chemicals as are familiarly known to the class of criminals who make this a specialty. To facili- tate this, I shall give in the Eeceipts at the close of this volume several methods to manufacture inks which are not erasible, or not so by any easy or generally known process. Some establishments use a machine for punch- ing a series of small holes in the check, so that any in- crease or decrease of the number of letters written would be detected. CONEIDENCB OPEEATIONS. There is a class of swindling devices which are known by the above term, because they are abuses of personal confidence. A common and crude trick of this kind is as follows : a " confidence man " makes the acquaintance of an unsophisticated stranger, and produces a favorable impression on him by courtesy, fi-ankness and liberality. He is careful to speak of his influential friends, and hands his card with business, etc. Presently a third party steps up, and presents a bill to the confidence man who proposes paying it at once, but discovers either that he has not enough change under a $100 or a $500 note, or perhaps a check on some well known bank. He re- 180 COUNTERFEITS, FOEGEEIES^ ETC. quests the stranger to cash the check, or to change the note, or to loan him enough merely for a few minutes until they can walk to bank together. As soon as the money is in his hands, both manage to disappear into some store, or up an alley, and the stranger discovers the check is worthless, the note a forgery, and his cash gone. In some of its forms, this game is practised al- most daily in great cities. It is singular that sensible people can so often be de- ceived in this manner ; but it is so common that I re- member in the Union Depot, destroyed in the great fire at Chicago, the ^officers had found it necessary to post up several conspicuous signs with the words, — Bo not lend Money to Strangers! upon them — very saltitary advice, which it is well to observe at all times and places. There are many more dexterous methods of playing the confidence game than the bare-faced swindling I have just mentioned. A stranger will settle in a community, commence business, ingratiate himself with his neighbors, and having instilled a sufficient amount of confidence, will some day borrow all he can, persuade his various friends to cash some checks and drafts after bank hours, and disappear. This has repeatedly been done in Western cities, where a person's antecedents are rarely closely examined. The boastful, self-assured, " high-toned," and "honest- talkuig acquainta,nce, is a man to be on one's guard TOO HONEST MEN. 181 against. If he lets you know that he is almost morbidly conscientious, you should, at once, as old Dr. Sam. John- son advised, " count your spoons, and show him thedoor." I once knew a gentleman (by position) who told me his conscience would not permit him to sign " Your obedient servant," at the close of a letter, as it savored of untruthfulness. I was not astonished a few years later to learn that he had cozened his family out of a large sum of money. No dealings whatever should be entertained with plausible strangers, except those of a strictly business character ; no money should be loaned them even for a few minutes ; no checks or notes taken from them ; and intimate relations should be avoided with every one of whose history we are ignorant. UNFAIR DEALINGS IN MERCANTILE PAPER. Every man should strive to keep the promissory notes which he issues above even the suspicion of doubt. He may be very certain that the tricks he plays with his paper in order to minister to temporary necessities are all familiar to bankers, and soon it is no longer classed " gilt-edged," and he hiniself will not long enjoy the favors granted an untainted credit. The tricks I refer to are of this character : .Two mer- chants, somewhat pressed for money, exchange notes, and offer them a,t different banks as regular business paper. They are disco\mted, and the bank is none the wiser the 18 182 COUNTEEFEITS, FOEGEEIES, ETC. first few times. But a shrewd Board of Directors will soon spent the transaction, and straightway the merchant is placed on the black list. Another device is that which in' banks is termed " kiting." A merchant in one town or city draws on another at a distance, and the draft is accepted ; the latter then draws on the former for an equal amount, which draft is also accepted. Each then discounts the draft in his possession, and the money is raised at the cost of com- missions for collection and discount. When the paper matures, the same process may be repeated to pay it. Still another resort of straitened dealers, especially in smaller towns, is to make an arrangement with an irre- sponsible person in one of the larga cities to be their agent. The dealer then draws upon this agent, who is presumed to have goods on consignment, etc., and the agent promptly accepts the draft, which is then readily discounted. These acceptors, who have no capital, and are merely used to deceive banks and brokers, are known, in the slang of the counting-room, as " dummies." Promissory notes and drafts which are by law " void," are sometimes pushed into bank, or passed as good in payment of debts. By the laws of most- States, notes given for debts incurred in gambling and for usury are void and not collectible, and the holder of them must hear the loss, although he may be entirely innocent, and uncon- scious of their character. Whenever there is the least room for suspicion, as from the known bad character of WASHING AND WATERING STOCKS. 183 the drawer, close inquiry should be made as to what kind of a debt the note was given for. , SWINDLES IN STOCKS. The only parties Who make any money in " stock-gam- bling " are those who form the company or " stock it up," and having by fictitious dividends, and the process called "stock-washing," given the shares an apparent value, hasten to sell out. A " wash-sale " in stocks is when two parties agree together that one will offer for sale, and the other buy in, shares at the prjce offered. Experienced brokers are i-arely caught in this net, but innocent out- siders constantly are. As long as the stock sells well, those who have formed the company, and who look to these sales as their chief and most certain return, have no intention to exhaust the commodity. They therefore proceed to what is techni- cally called " watering the stock," that is, to manufe,cture an additional number of shares for working expenses, equipments, etc., and at once thrust these on the market. Should thQ mine, oil-well, quarry, or whatever the enterprise may be for which the company was formed, really promise heavy returns, the majority of the stock- holders will never hear of if: The stock will be quietly bought up by a few in the confidence of the officers, or else damaging reports will be circulated, unexpected obstacles will be mentioned, and a heavy assessment ordered on each share. Alarmed at this, many holders 184 COUNTERFEITS, FOEGEEIES, ETC. will either hasten to sell out, or else refuse to pay and forfeit their shares. This is called "freezing out," and is a very common swindle. As in "stocjidng up" a teompany, often one-half the shares qf the Capital stock is really given away, Or divided among the originators of the plan, what they sell for is a net profit with an immediate return. The most strenu- ous exertions are made to sell such stock ; heavy commis- sions are given to agents ; buyers are assured that they are admitted "on the ground floor" on most favorable terms; they are told that only a select few* are to be admitted to the privilege of holding shares ; that other parties stand ready to take the whole as soon as the chance is offered ; that only a small percentage of the full value of the shares will be called for ; and many other similar lying representations. Every person so approached should recall to mind that he loses virtually all control of his money in a stock company ; that he will in ninety-nine cases in the hun- dred, have to pay in the full amount of the shares, and may be heavily assessed besides ; that however eminent and trustworthy the present officers are, they may be fol- lowed in office by finished sharpers j that if the shares were really so valuable, the seller would not be so anxious to part with them ; and similar considerations. He will, thus reflecting, most probably wisely keep his money in his pocket. AV^AENINGS TO THE UNWISE. 185 .GIET ENTERPRISES. I As the laws of most States forbid lotteries, these schemes have been carried on of late years under the name of 'Gift Concerts, Gift Enterprises, etc. They ad- vertise largely, and pretend to offer first-class references. The gifts are described in glowing terms, and include all descriptions of articles, watches, diamonds, sewing- machines, gold and -silver plate, houses, farms, etc., etc. Every such enterprise without exception, no matter by whom started nor for what, alleged intention, benevo- lent, religious, or otherwise, is a knavish device to avoid 4he laws against gambling. No sensible person will in- vest his money in them, and the foolish ones who do, will never see it again, or anything in its place. They are all deliberate swindles. GOODS SOLD AT OE UNDER COST. You may lay it down as a nearly infallible rule, that the man who tells you he is offering his goods at cost or under cost is either lying, or else that he is dishonest. Business is not, and cannot be doiie on that basis. The articles may have been stolen or smuggled, in which cases you would be held liable if they were discovered in your possession. Generally all articles offered much below the average market price. are worthless. Every advertiser who offers for sale sewing machines, watches, books, valuable recipes, medicines, etc., at 16* 186 COUNTERFEITS, FORGERIES, ETC. prices far below current rates — and hardly a newspaper but contains one or more such advertisements — may at once, and beyond doubt, be set down as a swindler, and his wares as worthless. "Whoever deals with these " parties will lose their money and their time ; and may incur a risk of having their names connected with ope- rations of a criminal nature. Whenever you are tempted to be dishonest, as when you receive information that a valuable gold watch has been sent to your address, C, O. D., on which a balance of f 10.00 is still due — apparently a mistake, — or when a letter notifies you that Messrs. So and So, Bankers, hold $1000.00 U. S. Bond of yours, which they will be pleased to remit on receipt of their commission, $16.37 — also a seeming mistake of Post Office — do not touch pen to paper, but cast their letters in the fire. Whenever a man approaches you with any proposition for money making which involves the infraction of the laws of God ^ or the commonwealth, or which looks toward obtaining money by deceptive representations and inadequate exchanges, you may rest assured that that man's victim will be yourself, as soon as he has had you sufficiently long as his tool. You may believe yourself sufficiently " sharp " to outwit him, and have no com- punctions about deceiving others. But the invariable re^ suit will be that this very self-complacency will lead you the more inevitably into the trap he will set for you. The love of enormous and rapid gains, on small capi- VAEIOUS FEAUDS. 187 tal and without hard work, is constantly held forth by these nefarious fishers for men. If any such scheme could*bear examination, there are thousands of shrewd ■ capitalists in every money centre who would not allow it to go begging for a day.- But not one in ten thousand of these projects is other than a mere pitfall to entrap the innocent and unwary." There is but one road to wealth, and that is by assiduous labor, careful economy, judicious investment, and accumulation. All others lead to ruin. Circulars, letters, express-packages, and shipments of all description which come from unknown parties, may confidently one and all be rejected and disregarded. No one in his five wits should order goods from irresponsible parties by samples which they have sent. That they know your name and address is no sign that they know you. Addresses are bought and sold as any other goods by mail swindlers. The astonishing extent of these swindling schemes may be judged from the following, which is vouched for by a leading Boston merchant: A rogue inserted in about two thousand papers, for several months, an adver- tisement, offering to send a handsome illustrated book of 70 or 80 pages for two three-cent stamps. ' He received an enormous number of letters, each containing the twp stamps. The latter he sold to the dealers. The envelopes and letter paper he also sold. The names and addresses he had carefully copied several times, and sold the lists 188 COUNTERFEITS, FOEGEEIES, ETC. to several diiferent mail-swindlers and lottery agents, for from three to eight cents a name. Out of the proceeds he paid some $6000.00, expenses of advertising, etc., and realized a net profit of considerably more than that sum. Of course his numerous dupes usually wrote once or twice more to learn why he had not sent the promised book, all which letters profitably augmented his waste paper sales. This narrative should be sufficient to put all who read it on- their guard against all manner of advertising swindlers. FAILURES AND THEIR CAUSES; In mercantile language, when a man fails it is under- stood to be equivalent to bankruptcy, and a stoppage of his business. I do not take the word at present in this limited and technical sense, but rather include those cases as well, where a person winds up his business, paying his debts at a loss, or without profit. And the question I ask is, what are the general causes of want of success in business, resulting either in absence of profits, loss of money, or positive bankruptcy ? Such an inquiry is a prudent one for every person to make, and it is no waste of time when such a case occurs among one's acquaintance, to ascertain what oversight or bad habit, what "loose screw," it has been, which has brought about the disaster. Students of military mat- ters say that more can be learned from a defeat than from a victory ; and mariners derive their information of the DANGER OP INDORSEMENTS. 189 proper course to steer by the catastrophes their forerun- ners have experienced. So by attentively considering why others have failed in business, why they have never had profits, or how the profits were swept away, we can derive many hints for our own guidance. THE MOST COMMON CAUSE. The first fact we meet in this investigation is a most singular one, namely, that undoubtedly, taking all varie- ties of business into consideration, the most common cause of failure is the voluntary assumption of the risks of others without any benefit to those who assume them — in other words, indorsing, going security or bail, guar- anteeing, and similar transactions. Such " small favors " are continually asked ; the applicants always add that they are "mere matters of form," that "there is no dan- ger, of course," that they are " ordinary business courte- sies," etc. I have already warned the reader never to indorse except in his regular business procedures; never to become the guarantor, bail, or surety for anybody except in the same manner; and to show him how sound this principle of ' action is, and how perilous the opposite course, I will quote a remark made by the late Mr. Johii Grigg, an eminent Philadelphia merchant : Mr. Grigg, beginning the world an orphan farmer boy, accumulated a fortune, and though rich, showed that he understood what few rich men ever have understood — that is, the art 190 of using money wisely, as well as getting it. In a con- versation he once expressed the opinion that indorsing is a cause of one-half the failures in business, and stated the remarkable fact that he had never asked a man to indorse a note for him in his life. In reviewing the failures and pecuniary distresses which have occurred within my own much more limited horizon, I am convinced that Mr. Grigg's statement is absolutely true, and indeed, I would extend it, and say more than ohe-haif of the troubles, losses, and bank- ruptcies, are owing to thus uselessly assuming risks -tvith- out consideration. Let it be remembered that whoever indorses, gives security, etc., for another man, in fact burdens himself with all the business peril the latter incurs, and also guarantees his integrity, without any pos- sible gain to himself. He takes all the risks, and gets none of the profits of another man's business. The next most frequent cause of failure is BAD PBESONAL HABITS. By such, I mean the neglect of the good personal habits which, in the first chapter, I have laid down as requisite to success. They include the iise (not merely the abuse) of alcoholic drinks, gambling, laziness, pro- crastination, carelessness, extravagance, incivility, cheat- ing, lying, etc., etc. If indorsing is the most frequent cause of failure in the mercantile sense of the term, these improper habits DEAM-DBINKING, 191 are beyond doubt the most common sources of it in the general sense. These are the " loose screws " that explain in nine cases out of ten why a man " doesn't get along in business," as the phrase is. Show me a shiftless " ne'er- do-weel," a man who has had " no luck," who has been working, as he thinks, diligently for years, and yet has not a hundred dollars to show for his labor, and in ninety per cent, of such cases you will see a man who is a tippler, a petty gambler, a drone, a money-spender, a boor, a liar, or a careless fellow. Of these various drawbacks, the worst is dram-drink- ing. Many young men, runners and drummers for mer- cantile houses, etc., think that a glass or two with cus- tomers greatly facilitate bargaining, and thus acquire a habit which is always full of danger. A clear head is a necessity in every business'. But a single glass of liquor clouds the perception, and creates a feeling of boldness and recklessness, that may, in a moment, thwart the plans of years. The business man who indulges at all in stimu- lants can never be sure of himself. One glass at certain times will produce more intoxication than five at other times. In all cases, the effect is gradually to undermine energy, to impair moral principle, to provoke an irrita- bility of the system which renders him liable to be impo- lite to customers, and to quarrel in unguarded moments with those with whom it is his interest to be most friendly. 192 EXTRAVAGANCE. Extravagance in personal or family expenditure is ruinously common in this country. Some writers seek to lay the blame chiefly on the wives and daughters of our business men. But if they would choose to open their eyes, and calculate how much money is squandered by the latter in tobacco and segars, wines and liquors, horses and carriages, yachts and guns, billiards and faro, cards and mistresses, — all supported solely by men, — they might very easily see that the expenditures of respectable women are confined to almost the single line of dress, and though often extravagant in that direction, that the amount of mouey unnecessarily expended in dry goods and jewelry in this country, bears no comparison at all, is hardly a fraction of that dissipated by men in the above-mentioned luxuries, every one of which is not only useless, but actively injurious to health or morals. Women are extravagant, and cannot be blamed for being so, because their husbands and fathers do not teach them the value of money, the importance of saving it, and how hard it is to get ; men do not set the other sex an example of economy, however willing they are to preach its precepts ; and they do not inform their female relatives how their business is progressing, but either avoid allusion to it, or deceive them about it, represent- ing it as flourishing when it is not, out of a foolish pride; HINTS ABOUT WIVES. 193 or else, groaning about " hard times " without occasion, in order to discourage expenditure. Such are the reasons why so many young men fear to marry. They are afraid they cannot support a wife. Now, I not only believe, but I know that the large majority of young women in this country would willingly submit to any necessary self-denial, if their husbands were to instruct them in the conduct of business, make them confidants of their own transactions, explain why economy is advisable, and share the self-denial vnth them. SPECULATION AND PUTSIDE AFFAIRS. The temptat.ion to make money easily and quickly, by some speculation, or affairs outside of their regular busi- ness, involves hundreds of men annually. Men become dissatisfied with the slow gains of the calling with which they are acquainted, and suffer themselves to be enticed from it by stories of fortunes which have been acquired in other pursuits. They risk their money, and it is lost. What I have already said about stock companies, etc., will show how hopeless any such expectation generally is. Investments in patents, secret processes, grain, cotton, and similar operations, in the majorityof cases have the same results. It cannot be, too often repeated that the secret of success is steady application to one pursuit, and the slow but certain process of accumulation. Even when large sums are made by daring and successful enterprises, they are 17 194 COTJNTEEFEITS, FOEGEEIES, ETC. rarely kept, but either induce reckless habits, like good luck in gambling, or else they are sunk in some other operation, not so felicitously carried out. Over-trading, and the excessive use of credit are 'vari- eties of speculation q-uite as dangerous as those dealings which are usually included under that name. Short credits, cash payments, buying at the lowest rates the best articles, and taking advantage of every chance for a discount, are the better principles in the long run. PART II. THE PEAOTIOE OF BUSIE"ESS. CHAPTER I. THE AET OF BUSINESS COEEESPONDENCE. , What constitutes a good business style — The address, signature, and form of a letter — Modelform — Letter of introduction — Application for an agency — Order for goods — ^Notice of formation of a partner- ship — ^Notice of dissolution of a partnership — Remittance of money — Pressing for payment — Threat of legal proceedings — Importance of copying letters. sENERAL directions for obtaining a correct style in bfisiness letters have been givea in the first chapter of the First Part of this work. I shall now go into more minute details, and supply a number of models which may be 'advantageously studied. The proper characteristics of a business style are neat- ness and perspicuity. Brevity also is desirable, as far as may be consistent with the latter quality ; for a waste of words is a waste of time, both to him who writes and to him who reads a letter. To attain all this, the several subjects to be treated of should be kept distinct. 195 196 BUSINESS COKEESPONDENCE. In replying to a letter, follow the same order that is observed therein, discussing one subject fully, and in a separate paragraph, before you proceed to the next. The want of a proper division of a letter into para- graphs, and a neglect of punctuation, will scarcely fail to render it confused. It is a point of chief importance, that all orders given should be clear and explicit ; and if their execution de- pend upon any contingency, the correspondent must have full directions how to act under any change of circum- stances that may be conteruplated. In replying to a correspondent, his letter should be carefully read and his inquiries noted. When the matter is important, it is usual to recapitulate the principal sub- jects of the letter replied to, which, also gives a more complete history of the transaction. The character of the reply should be clearly in the mind while writing. Especially the young correspondent ought to feel certain that he fully comprehends his employer's instructions before he attempts to commit them to paper ; and it is better to ask questions beforehand, than to have to amend his letter when written. "When he receives directions verbally, he should note them immediately in a memo- randum-book, kept for that purpose. If he can take them in short-hand, so much the better ; but note them he must, unless endowed with a singularly retentive memory. The date and place of writing should be at the right TITLES AND ADDEESSES. 197 hand, upper corner of the page ; the name, address, and title of the party written to,^hould be at the left hand of the page. This address should be the same as that on the en- velope, and it is not a trivial or needless precaution to take pains to have it correct, for even in such a thorough- going republican country as ours, many a man is quite sensitive about his title, and the prudent correspondent will humor rather than run counter to this harmless foible. Moreover, it is creditable to him to perform even so small a matter as this with accuracy. I therefore add the correct addresses of various parties, with whom he may have dealings. To an ordinary correspondent : William Wilson, Esq., Dear Sir : (or. Sir.) To a firm : Messes. J. G. Feegus & Co., Grfptlemen : To a lawyer : David Discount, Esq., AUorney-at^Law, Sir: To a physician : De. Howaed Physick (or, Howard Physick, M.D.) Sir: 17* 198 BUSINESS COEBESPONUENCB. To a clergyman : Rev. Wilson Woeship, Rev. Sir: To a bishop : Rt. Rev. Chenevix Bedb, Rev. Sir: To a member of Congress, member of the Cabinet, Chief of a Bureau, and, by courtesy, to members of a State Senate and Legislature : Hon. Isaac Politick, Dear Sir : To the Governor of a State : His Excellency "Walter Winsor, Dear Sir • To a married lady, or one of mature years : Mrs. Susan Anderson, Madam : If the letter is on a full sheet of paper, write on the first, second, and third pages, but not on the fourth ; take another sheet or half-sheet to finish. If it is on a half-sheet, it is customary with some firms to take a second half-sheet when the first page is filled. This is for convenience in filing. SIGNATURE, ETC. 199 When an important number occurs, write it in full, and add the numerals in brackets. Be careful to sign the letter distinctly, and address the envelope correctly, writing the name of the State in full. Whatever enclo- sure is made should be mentioned. The commencement should not be too near the top of the page, but about one-fourth of the distance from it. The formal closings of a letter common some years ago, as, "I have the honor to remain, my dear sir, very respectfully, your obedient servant, etc.," are now gener- ally discarded, in the business style. On the next page, I give a form of a letter^ to show paragraphing, etc. 200 business coeeespondekce. 398 Beoadway, New Yoek, Jan. 2nd, 1872. Messes. Sydney, Shallow & Co., 486' Vine St., Cinn., Ohio. Gentlemen : Your esteemed favor of the 24:th uU., enclos- ing cheek for sixty-eight dollars ($68.00), drawn to our order, is respectfully acknowledged. In accordance with your instructions therein contained, we have this day shipped you by Adamsf' Express, forty (40) sacks Rio coffee, as per invoice enclosed. In relation to the bill of forty-six dollars, fifty cents ($46.50) against Wood and Venables, which you sent us to collect, we beg to say that our Mr. Heath duly presented it at their office, and they promise to meet it on the 10th inst. withoutfail. Your inquiry in reference to the new process of engrav- ing on glass has been referred by us to a practical chemist in this dty, whose reply we hope to forward in a few days. Very respectfully, Tannee, Heath & Co. MODELS OP LETTEFvS. ' 201 I shall now add a few forms of various letters, which may serve as general models for the reader. They are selected from actual correspondence, names and dates of course being changed. I. Letter of Introduction. Boston, Mass., Feb. 1st, 1872. Ealph Potter, Esq., . Chicago, 111. • Dear Sir : — We recommend to your favor and atten- tion the bearer, Mr. Fred. Wood, eldest son of Mr. Augustus Wood, of the highly respectable house of Wood & Meyer, of this city. Our esteemed young friend is abotit to visit Chicago, on business for the house ; we therefore request you to afford him your advice and assistance, and to render his stay in your city as agreeable as possible. He is clever, steady, and unassuming, and we are convinced that on a near acquaintance he will prove himself deserving of your esteem and -good will. Command us freely in simikr eases, and be assured that we will use our best endeavors to do justiqe to your introductions. We are, etc., very respectfully. Tilt & Leaks. 202 BUSINESS COERESPONDENCE. II. Application for an Agency. Salem, Mass., Jan. 16th, 1872, To THE Directors of the Vesuvius Fire Ins. Co., Hartford, Conn. Gentlemen : — At the instance of several persons of con- sideration and influence in this quarter, who are anxious for the more general adoption of the admirable system of Fire Insurance, I am induced to make application for an agency of your company. Should I have the honor to be appointed agent to the association, I shall be prepared to give satisfiictory security, either in this State or in Connecticut, for the faithful dis- charge of my duties. Being attached to the profession of the law, and enjoying the office of notary public, I am led to believe that my interest might be exerted to the advantage of the institution, as well as of this community and of v myself. For any information that you may desire, regarding my character and fitness for the office I solicit, I beg to refer you to Messrs. Burton & Smith of your- city ; and requesting the favor of your reply at an early date, I am, etc., William Penman, Attorney at Law. MODELS OF LETTERS. 203 III. Order for Goods. Painted Tree, Coxe Co., III., February 18th, 1872. H. Bones & Co., Aurora, 111. Gentlemen: — As I have- heard your corn-shellers and hay-forks highly recommended by several farmers in this vicinity, I have concluded to try them on my own farm. You will please, therefore, ship me one of each as soon as convenient, by Merchant's Union Expresg to the above point, C. O. D., or sending bill, as you prefer. I As I believe I can influence several of my neighbors to become customers of yours, I hope you will be careful to select well-built machines, and put them to me at ,your most favorable terms. Respectfully, — George "Willow. IV. Formation of Partnership. ^ Lafayette, Ind., Dec. 28th, 1871. James Nysten, Esq., Philadelphia. Dear 8ir : — ^We have the honor to inform you that we have agreed to unite the two mercantile establishments which have hitherto existed in this city iinder the firms of Cope & Co. and Eome & Co. 204 BUSINESS CORBBSPONDENCE. The new firm which is intrusted with the liquidation of the affairs of both houses, will be styled Cope, Rome &Co. The capital of both establishments being united, the new firm will devote its attention principally to the commis- sion business, in which the shipping of grain will form an important feature ; and we assure those friends who may favor us with their orders, that they will have every reason to be satisfied with our zeal, and the faithful dis- charge of all commissions intrusted to us. We hope you will grant to the new firm that confi- dence and preference with which you favored our former establishments ; and referring you to our signatures at foot, we remain, etc. Cope, Rome & Co. Mr. Cope signs, Cope, Rome & Co. Mr. Rome signs. Cope, Rome & Co. Savannah, Ga., MarGh 12th, 1872. J. Fell, Esq., New York. Sir : — I beg to acquaint you, that in consequence of my having taken into partnership niy son, Charles Harris, the business of my establishment will henceforth be conducted under the firm of,T. Harris & Son. Please . to note our respective signatures at foot. Returning you my sincere acknowledgments for the proofs of confidence with which you have favored me LETTERS ON BUSI^TESS. 205 during so many years, and which I trust will be con- tinued to our new firm, I remain, etc., T. Harris. T. Harris will sign, T. Harris & Son. C. Harris will sign, T. Harris & Son. V. Dissolution of Partnership. Wheeling, W. Ya., June 16th, 1872. Messrs. Love & Day, St. Louis, Mo. Gentlemen : — Our partnership having ceased by mutual consent, we beg to inform you that this establishment will forthwith liquidate its pending business, for which purpose alone, our firm will be used hereafter. We beg your reference to the , accompanying circulars of our new establishments ; and, soliciting a continuance of your confidence, we are, etc., Btjeritt & Clarke. VI. Remittance of Money. I<)"ew Haven, Conn., July IQth, 1871. I. S. Phillip & Co., Quincy, 111. Gendemen : — I beg to enclose you herewith draft at 3 days sight on Roberts & Co., Bankers, New York, for one hundred and thirteen dollars xo%, ($113j:VV)j drawn to your order, this being in full for the invoice of to- 18 s 206 BtrSINBSS CORRESPONDENCE. bacco, received on the 6th inst. Should you be able to dispose of this draft at a premium, please inform me, as it is quite as convenient for me to remit exchange on New York as on Chicago, if you prefer it. Respectfully, Joseph Newman. VII. Pressing for Payment. Pittsburgh, Pa., Nov. 1st, 1871. David Wayley, Esq., Philadelphia. Dear Sir : — We beg to enclose herewith our monthly statement, showing amount due us by you of one hun- dred and forty-seven dollars (f 147.00). As this account has now been standing nearly six months, we must re- quest you to remit at once your check for the whole sum. Your immediate attention will oblige, Respectfully Yours, Peel, "Warwick & Co. Pittsburgh, Pa., Nov. 12th, 1871. David "Wayley, Esq., Philadelphia. Sir: — Yours of 9th inst., stating that you hope to make us a remittance on account at an early day, is re- ceived. "We must positively insist that these repeated postponements cease, as the bill is long over-due, and we have extended to you an unusua.1 amount of leniency. COPYING LETTERS. '207 Unless payment in full is tendered us by the 20tli inst. we shall place the account in the hands of our at- torney for collection, which will involve proceedings dis- agreeable to us and costly to you. Respectfully, Peel, "Waewick & Co. Copies of all letters sent should be preserved in the Letter Book ; and the young correspondent will iind it a valuable study to peruse the copies frequently, in the light of subsequent transactions, to see in what respect he would modify his previous letters, if he had the power. Many errors, obscurities, and loose expressions will thus present themselves to him, which he will avoid in future. Not merely the merchant, but the farmer, mechanic, and even those engaged only in private affairs, should keep a copy of every business letter they write. This should be done by copying ink, several receipts for which I shall hereafter give. Its use avoids the oversights Kable to occur in transcribing into a book. CHAPTER II. LEGAL FOEMS AND BUSINESS LAWS. Maxims regarding all legal instruments — I. Bills — II. Monthly state- ments — III. Receipts ; receipts in full ; statute of limitations — ^IV. Due-bills — V. Orders ; anecdote of a Sacramento merchant — VI. Checks ; laws relating to^VII. Bills of exchange and drafts ; accept- anqe ; days of grace ; customs in different States and countries ; set of exchange — Vlll. Promissory notes ; indorsement of a note; note"- ■worthy decision of a Pennsylvania court ; maturity of a note ; how to calculate it — IX. Notes with collateral security — X. Judgment note — XI. Judgment bond; assignment of a-bond ; bond of indem- nity — XII. Power of Attorney — XIII. Proxy — XIV. Contracts or agreements; essentials in; dissolution of ; contract with a clerk ; building contract — XV. Articles of copartnership ; important points in; form of; expiration of ; dissolution of ; sale of^ — XVI. Guaranties and warranties ; form of a guaranty ; guaranty for goods ; warranty of a horse ; what makes a guaranty — XVII. Leases ; points for the landlord; points for the tenant; form of a lease ; expiration of a lease ; notice to quit — XVIII. Deeds ; what constitutes a valid deed ; form of a deed ; recording a deed — XIX. Wills ; rules for making ; form of a will ; codicil to a will ; a verbal will — XX. Administration of an estate ; renunciation of heirs ; duties of an administrator. Rates of interest and usury laws in the different States ; when inter- est can be collected. Rules for doing business with banks. ''VERY person who has money dealings should qualify himself to prepare^ in correct form, the various legal instruments which are in common use in the transaction of such aifairs. They usually have a certain technicality of phrase about them which it is well to preserve, for though not always neces- sary, long usage has definitely settled the signification of 208 LEGAL PEECAUTIONS. -,_-\^\^\W^ "^ ||l|)ltal*#^^V\X^^ X 209 THE LAWYER AND HIS CLIENT. the words employed, while in other instances courts have ruled that unless a statement is made in a certain manner (as, for example, by using the word release in the sale of a partnership) the validity of the transaction is incom- plete. The reader, therefore, should peruse carefully the forms given in this chapter. MAXIMS REGARDING ALL LEGAL INSTRUMENTS. Never sign a paper, no matter how trivial, until you have read it yourself, and fully understand it. In reducing a verbal arrangement to writing, see that^ all the points which you deem favorable to yourself are inserted. When an alteration or addition is made in the wording 18* 210 LEGAL FORMS AND BUSINESS LAWS. of an instrument, do not erase, but write between the lines, and write above the names of the witnesses a memo- randum, as : " the words '....' being interlined on the — ^th line from the top of the — d page before sign- ing." Remember that what you have to look to in any agree- ment is not merely your rights, but also your remedies. Bear in mind that in law no man is supposed to bind himself to anything, whether the performance of an act or- the payment of a sum, luithout consideration. I. Bills. Whenever a purchase is concluded, the seller should make out a bill, stating the kind and quantity of the arti- cle purchased, the date, the full price, and the discount allowed, if any. The following simple form is usually adopted : Philadelphia, Feb. 15, 1872. Mr. James Hudson, Bought of Luke Howard & Co., 960 Chestnut Street. Feb. 15 ■ doz. hoes, at 60 cents. Less 10 per cent $3 Of course, in ordinary retail sales, bills are not ren- dered. II. Monthly Statements. Most mercantile houses now adopt the plan of sending A VALID EEOEIPT. 211 debtors who have book accounts a monthly statement on the first business day of each calendar month. Its form is as follows : MONTHLY STATEMENT. Philadelphia, March 1, 1'8'?2. Mr. RiOHABD Fell, To J. B. LippiNCOTT & Co., Dr. Feb. 12 To merchandise .,, $16 13 $29 00 U .t( ■iO 50 III. Receipts. Either a bill or a monthly statement makes a valid receipt, with the words "Received payment/' and the signature of the seller at the bottom. When written separately, the following is the usiial form : Eeceived, Cincinnati, Jan. 16th, 1872, of Richard , White, seventy-five dollars, in full, for three silver watches. 175.00. Sol. Bentley. It is better to state what a receipt is for, when conve- nient. Instead of the words "in full, for three' silver watches," the words " in part, etc.," or " in full for all demands," are to be substituted when the facts corres- pond. A receipt " in full of all demands," is no bar in law to the recovery of a balance justly due, though- the contrary is often thought. 212 LEGAL FOEMS AND BUSINESS LAWS. When a debt is paid by a check or note, it is always advisable to draw the receipt in this form : Received, Cincinnati, Jan. 16th, 1872, of Richard White, his check [his note at sixty days] for seventy-five dollars, which, when paid, will be in full of all demands. $75.00. Sol. Bentley. Otherwise if the check or note is not paid, it might be . argued that the creditor took it at his own risk. If the check is drawn by a third party, the debtor should guar- antee it. Be careful not to lose a receipt. They should be neatly filed for reference. If one is lost, the creditor ■ may, through forgetfulness or design, present a second bill, and can compel the payment of it. More than that, if aftet this second payment, the first receipt is recovered, the sum wrongfully paid out, cannot be recovered. The " Statute of Limitation " is an Act passed by State Legislatures so that debtors need not be obliged to take care forever of the acquittances which prove a demand to be satisfied; and it is proper to limit a time beyond whichthey shall not be under the necessity of producing them, or in familiar phrase, after which they are " out- lawed." In the United States, each State has its own statute of limitations, differing generally from that of its sister States, and therefore we can only advise the reader to be vigilant always in the collections of his claims, or "keep posted" as to the statutes of limitations of the States where his debtors reside. About five or six years STATUTE OF LIMITATION. 213 is the usual time required to outlaw a debt. But a pay- ment of any part of it, or of interest on it, is a recognition of it which postpones the action of the Statute. Due-Bills. A Due-Bill is a brief written acknowledgement of a debt. It is not usually made payable to order or bearer, and therefore cannot be transferred to a third party, unless it is so stated on its face. It does not bear interest, unless it is specified. FORM OF A DUB-BILL. Due George Feck, sixteen dollars, payable on demand. New York, March 16, 1872. 116.00. John Eoe. Chicago, March 10, 18727 Due to Clark, Boyle & Co., or order, sixty-two dollars, payable on demand, with interest. $62.00. John Eoe. In a case of the latter kind, the form for a promissory note is better. Due-Bills are mostly used as memoranda, rather than as regular forms for obligations. V. Orders. Orders are given either for goods, or for the payment of money due. Persons should be cautious about giving orders, especially to bearer, as they are liable to loss in 214 LEGAL FORMS AND BUISNBSS LAWS. making good an order not clearly expressed. A merchant in San Francisco telegraphed to one in Sacramento : "Am offered 10,000 bushels wheat on your account @ |1.40. Shall I buy, or is it too high ? " The reply came : " No price too high;" so he bought. But it should have read : " No. Price too high." The omission cost the Sacramento merchant a thousand dollars. Baltimore, Feb. 20th, 1872. Messrs. Greeley & Co. will please pay James Simpson, or order, the sixty dollars due me for painting their signs. $60.00. John Moonby. Baltimore, Feb. 20th, 1872. Mr. James Eogbrs, Treasurer Blue Bank Mining Co. : ~- Please pay Richard Masters the amount of dividend due me on my shares in the Blue Bank Mining Co. Fred. Wilson. YI. Checks. A check is an order on a bank where the drawer has money on deposit on demand. To give a check on a bank where the drawer has no money, or not enough to meet the check — though often done by men who expect to make a deposit — is in law false pretence, and a crimi- nal act. A check must, by law, be presented at furthest on the next succeeding secular day after it is received, and dur- EULES ABOUT CHECKS. 215 ing bank hom-s ; or it must be deposited for collection (if the bank is distant) within the same time. Other- wise, if there is a loss on it, the holder of the check suffers the loss. A check, it must be remembered, is not for circulation, but for immediate payment. A bank must pay a check if the maker has sufficient funds on deposit ; but it is not bound to pay any part unless there is enough to pay the full amount. No. 973. .^ Philadelphia, Feb. 10th, 1872. FIRST NATIONAL BANK OF PHILADELPHIA. Pay to Eobert Smith or bearer, two hundred and forty-one T'ou^ollars. $241.96. " EicHAED Stokes. The word "bearer" is often erased, and "order" substituted. Checks are presented to the paying teller of the bank, who cashes them. Some banks require the person pre- senting them to write his signature across the back, even when they are drawn to bearer. When drawn to order, the person who presents them must be personally known to the paying teller, or vouched for by some one acquainted with an officer of the bank. This rule should always be enforced for the security of the bank, although at times it is inconvenient to the holder of the check. The number on the check corresponds to that in the margin of the check-book, and is for the convenience of the drawer or maker. 216 LEGAL FORMS AND BUSINESS LAWS, It has been ruled that a check presented after the death of the drawer, shall not be paid by the bank. VII. Bills of Exchange and Drafts. Bills of Exchange and Drafts are written orders or re- quests, for the payment of a certain sum of money to a person therein named, or to his order, or to bearer. When the order is addressed to a person residing in a foreign State or country, it is calj*d a Bill ; and when both parties reside in the same State or country, it is usually called a Draft. To insure safety. Bills of Ex- change are generally drawn in sets of three — one being paid, the others to be void. They niust be for money only — not for other articles. When drawn " at sight," " after sight," or " after de- mand," the holder should promptly present them for acceptance. This is done by the person on whom it is drawn writing across the face of the bill the word " accepted," with the date, and his signature. The draft so accepted then becomes negotiable, and is itself called " an acceptance." All drafts are allowed three days grace, except those " on demand," and in some States, those " at sight." When they are made payable at a certain bank, or de- finite place, they should be presented there for collection when due, otherwise the payer is not responsible. RULES ABOUT DRAFTS. 217 FORM OF A DRAFT. Philadelphia, Feb. 18th, 1872. $300.00 At ten days' sight pay to the order of Kobert Winkle, three hundred dollars, without defalcation or discount, value received, and charge to account of To Boone & Bro., \ Samuel Miller. Washington City. J If the person on whom it is drawn refuses to accept the draft, notify promptly the drawer and endorsers. In case it is accepted, but not paid, have it protested at once. A Bill of Exchange is usually made in triplicate, so that each may be sent by a different conveyance, and thus the money more certainly be obtained. The date of each is the same, and the phraseology also with this ex- ception, — "First of exchange (Second and Third of the same tenor and date unpaid)." — "Second of exchange (First and Third of the same tenor and date unpaid)," etc. FORM of a -foreign BILL, OR SET OF EXCHANGE. f D , May—, 18—. Sixty days after sight of this First of Exchange (Second and Third of the same tenor and date not paid), pay to the order of C. D. & Co., in Liverpool, the sum of Dollars, value received, and charge the same to account of A. B. To Mr. E. F., of C . In most foreign countries, as in the United States, days of grace beyond the time when a bill becomes due are 19 218 LEGAL FOEMS AND BUSINESS LAWS. allowed for its payment. The days of grace in Great Britain are, by a recent Act of Parliament, abolished on both notes and drafts. In Geneva they are 5 ; in Lis- bon, Amsterdam, Antwerp, Eotterdam, Cadiz, Venice, Oporto and Rio Janeiro, 6 ; in Bremen 8 ; in Dantzic, Paris, and Bordeaux, 10; in Altona and Hamburg, 12; in Malta, 13; in Madrid, Gibraltar, Barcelona, and ^Bilboa, 14 ; in Genoa, 30. Persons desiring to remit money to foreign countries can obtain such bills of exchange from most bankers. The customs and laws of different States of our Union vary materially in reference to days of grace on drafts and bills drawn payable " at sight." In the following States three days grace are allowed upon sight bills : — Alabama, Indiana, Iowa, Maine, Michigan, Massa- chusetts, Minnesota, New Hampshire, New Jersey, North Carolina, South Carolina, Wisconsin. In the following no days of grace are allowed : — Connecticut, California, Georgia, Illinois, Maryland, Mississippi, Missouri, New York, Ohio, Pennsylvania, Rhode Island, Tennessee, Vermont. In the following there is no law upon the subject, and sight drafts are not by usage entitled to grace : — Arkansas, Delaware, Florida, Kentucky, Louisiana, Texas. These are important differences in commercial law. EULES ABOUT NOTES. 219 VIII. Promissory Notes. Many mercantile accounts are settled by written promises to pay at some future time. These are called " Promissory Notes." They do not bear interest until after they fall due, unless specified. Like drafts, they are entitled to three " days of grace," but interest or dis- count is reckoned for 'these three days the same as for the previous time. When drawn "on demand," the demand must be made, to be legal, in the presence of a witness, and no days of grace are allowed in most States. When made payable at a particular bank or other place, the note must be in readiness there, or the maker is not liable. FOEM OF A NOTE. No. 98. PiTTSBUEGH, May 2, 1872. Sixty days after datfe I promise to pay John Tilt, or order, six hundred and forty dollars, without defalcation, , for value received. 1640.00. JoEL_ Maeshall. A note, when properly presented at maturity, and not paid, is " protested " ; that is, a Notary Public makes a formal demand on the maker of the note, writes down his refusal to pay, and " protests "• against his action. This protest is returned with the note to the holder, and indorsers and drawers are notified of the non-payment. 220 LEGAL FORMS AND BUSINESS LAWS. INDOESEMENT OF A NOTE. An indorsement of a note is a guarantee on the part of some third party that it will be paid at maturity. Formerly it was supposed that merely writing one's name across the back of the note bound the writer to the payment of the debt, if the payer failed. In Pennsylvania, it has lately been decided by the Supreme Court (Mechanics Bank vs. Schaefer), that this is not so, but that there must be an expressed guarantee (as, " For value received, I guarantee the payment of the within note,") on the back of the note, over the signa- ture ; or else, both names must appear on the face of the note, thus : FORM OF A JOINT NOTE. No. 1, 125. Philadelphia, January 1st, 1873. Eight months after date, we severally and jointly promise to pay to the order of J. Durant six hundred and seventy-five and ^^jj dollars, without defalcation, for value received. |675tVo- Nathan Peterson. J. W. Morris. A modern innovation, adopted by mercantile men to facilitate the transfer of notes without requiring the holder's indorsement, is to make them payable to the maker's own order, with his indorsement, sometimes expressing, " for value received " of the party to whom it is given. ETJLES ABOUT NOTES, 221 Each endorser becomes liable to all subsequent holders. If the note be paid and taken up by the last endorser, he may again transfer it to a new endorsee, who may main- tain an action upon it in his own name against any prior party. But if paid by any other endorser than the last, the note is no longer negotiable. Payment by the first endorser releases all subsequent endorsers. MATTMITY OF NOTES. When a note is payable, it is said to be " at maturity." In calculating when this will be, the followii% rules are to be observed: A month is a calendar and not a lunar month. Exclude the day of the date of the note. Allow for three days' grace. If the third day of grace fall upon a Sunday or a legal holiday, the note is due the day before, or on the Second day of grace. IX. Notes with Collateral Security. Tangible security for the payment of a note is some- times given. This is called " collateral security," and the property made over, " collaterals." Collaterails may be of real estate, bonds, mortgages, stocks, chattels, or. anything of value. The note is made in the usual form, and is accompa- nied by an assignment of the collaterals, as follows : 222 I^EGAL FORMS AND BUSINESS LAWS. FOEM OF ASSIGNMENT OF COLLATERAL. Know all Men, that I, A. B., in consideration of dollars paid me by C. D., do hereby sell, assign, and' transfer to the said CD., all my right, title, and interest in and to [here describe the stock or aritefe]. To have and to hold the same as collateral security for the payment of my note for dollars, and interest, due and payable 1872 at [here state the place where the note is payable']. And in case the said note shall not be paid in three days from the time it becomes due, I hereby ag»ee that the said C. T>. may sell at public or private sale the said [stoclc or articles'], and apply the proceeds to the payment of said note and the costs of the sale, and pass the overplus, if there be any, to my credit. Dated at this day of 1872. A. B. When the collateral is real estate, bonds, or mortgages, the assignment is regularly made, and duly recorded in the offices, precisely as in the case of purchase, and a memorandum is made on the back of the note, as follows : The following properties [or securities] have been assigned to C. D., as collateral security of the within note, said assignments to be cancelled when the note is paid at maturity. [Here describe the collaterals.] X. Judgment Notes. A "judgment " in law is a decision by a proper court or a judge, upon a matter coming before it ; in reference A CONFESSION OP JUDGMENT. 223 to a debt, it is a decision that the debt is due and payable. When a debtor formally acknowledges that a debt is due and payable, and thus waives the reference of that question to a court, he is said to " confess judgment," or to " make a confession of judgment." A judgment note is a note that has such a confession attached to it at the time it is made. This allows the holder of the note to place the debt in the hands of the sheriff at once for pollection, if it is not paid. FOEM OF A JUDGMENT NOTE. f 1000. For Value Received, I promise to pay to E. M. J., or order, the sum of one thousand dollars, thirty days after date ; and I hereby nominate, constitute, and appoint the said E. M. J., or any attorney-at-law whom he or his assigns may select, my true and lawful attorney, irrevocable, for me and in my name to appear in any Court of Record, at any time after the above pro- missory note becomes due and remains unpaid, and to waive all process and service thereof, and to confess judgment in favor of the holder thereof for the sum that may be due and owing thereon, with interest, costs, and waiving all errors, etc. In witness whereof, I have hereunto set my hand and seal, at the city of, , in the county of , and State of , this day of -one thousand eight hundred and Attest : ) J. S. V A. B. [seal.] 224 LEGAL FORMS AND BUSINESS LAWS. A judgment note should have a seal ; an ordinary note should not. When such a note is paid, the judgment which has been entered on the docket, must be " satisfied," that is, an entry must be made that the note is paid. XI. Judgment Bonds. A bond is an obligation binding the person who makes it under a penalty to perform some act, more especially to pay a stipulated sum of money. It binds both per- sonal property and real estate. Usually a judgment is attached to it. FORM OF A BOND. Know all men by these presents, that I, A. B., of , in tlie county of and State of , am held and firmly bound unto Yf. H., of , iu the county of , and State aforesaid, in the sum of one thousand dollars [this amount is called the penal sum, and is usually double the amount of the real debt], law- ful money of the United States, to be paid to the said W. H., or his certain attorney, executors, administrators or assigns ; to which payment well and truly to be made and done, I do bind myself, my heirs, executors and administrators, and every of them, firmly by these presents. Sealed with my seal, and dated the day of , Anno Domini, one thousand eight hun- dred and The CONDITION of this obligation is such, that if the above bounden A. B., his heirs, executors, admin- WHEN BONDS ARE VOID. 225 istrators, or any of them, shall and do well and ti-uly pay, or cause to be paid un,to the above-named W. H., his executors, administrators or assigns, the just and full sum of five hundred dollars, lawful money aforesaid, with legal interest for the same, on or before the day of — ' next, without fraud or further delay, then the above obligation to be void and of none effect, or else to be and remain iu full force and virtue. A. B. [seal.] Signed, sealed and delivered \ in the presence of J - And to make it a Judgment Bond add the follomng clause : And I do hereby authorize and empower any attorney of any Court of Record in the State of Pennsylvania, or elsewhere, to enter judgment against me, my heirs, execu- tors, and administrators, and in favor of the above-named W. H., his executors, administrators, or assigns, for the above sum, as of the past, present, or any future term of said court, with release of errors, co its of suit, etc., etc. If a bond be sealed and delivered, though it bear no date, it is valid. If a bond be interlined, or words are erased in important parts, it will render it void. Bonds and all penal obligations, in whatever form, to do an act forbidden by law, or to forego any privileges secured to a man by law, are void. The same is true of agreements or obligations to divide the profits or gains to be derived from" illegal speculations or business. Thus a bond or note to pay illegal interest, a sum of money won at gam- 226 LEGAL FORMS AND BUSINESS LAWS'.' ing, or to commit a trespass on the property, or an assault on the person of another, is void ; as is lilcewise an obli- gation not to plead usury, infancy, or any other legal de- fence to a suit, or not to prosecute a man for a crime, or for cheating, or taking an illegal advantage of another. A bond does not expire, as an ordinary book account, by the statute of limitations. But in several States, as Pennsylvania, it must be " renewed " every few years (in Pennsylvania every iive years) by a writ of scire facias, or else it loses its precedence of other claims. It should always be " entered up " on the records of the proper court against the individual's property. In assigning a bond, insert the words "to be paid without recourse to me," or otherwise the assignor may be held liable for the amount, if the maker of the bond fails to pay. In buying a bond call on the person who is bound, and have him admit in writing, or before witnesses, that he still owes the whole sum ; and when the assignment is completed, notify the person bound, and keep a copy of the notice. A bond must be sealed. A seal in most States is a scrawl with the pen after the name ; in New York it must be something (usually a bit of paper) attached with some glutinous substance to the bond. [ A Bond of Indemnity is a bond guaranteeing a person against loss for some particular act, as the payment of a note which has been lost. ASSIGNING A BOND. 227 The following form will serve to assign a bond, agree- ment, bill of sale, etc. It is to be written on the back of the instrument : FOEM OF ASSIGNMENT. Know all men by these peesents. That I, A. B., of -, in consideration of the sum of dollars to me paid by C. D., of (the receipt of which is hereby acknowledged), do hereby sell, assign, and transfer unto the said C. D., his heirs and assigns, all my interest in the mthin written instrument, and Everything therein contained, and all benefit and advantage which may be derived therefi^om. [And I constitute the said C. D. my attorney, with full power, in my name, but to his own use, and at his own risk and expense, to do everything necessary for the com- plete recovery and enjoyment of the assigned premises.J Witness my hand and seal this day of, etc. A. B. [l. s.] Sealed and delivered presence of } In an action to recover money due on a- bond, the ac- tion must be brought in the name of the original obligee, not'v^ithstanding the assignment, therefore a power of an attorney to sue in his name should always be inserted in the-assignment. XII. Power of Attorney. This is an authorization to some person to act for the one who gives it, in a general or special manner. 228 LEGAL FORMS AND BUSINESS LAWS. GENERAL FORM OF POWER OF ATTORNEY. Know all men by these presents, That I, A. A., of , in the county of , and State of , do hereby constitue and appoint B. B., of , my true and lawful attorney, for me, and in my name, to [here follows the purpose of the powers, as fully set forth as is requisite^, hereby ratifying and confirming whatsoever my said at-, torney may lawfully do, or cause to be done in the pre- mises. Witness my hand and seal, this day of , a. d. 18—. A. A. [seal.] Sealed and delivered in presence of ^ If a power of attorney is to be used in another State than that where the principal resides, it should be ac- knowledged before a ju,dge of a court or justice of peace. If in a foreign country, before a notary public. A principal is bound by every act of his agent or attor- ney done within the scope of the authority given him. Powers of attorney are taken to be in force till notice of revocation, or the death pf the party giving the same. An attorney cannot substitute unless especially author- ized in the letter so to do. A person thus employed to transact business out of court is called an " attorney in fact." He has the right to sign for his principal; adding the words, " by his attor- ney in fact, B. B." ABOUT CONTRACTS. 229 XIII. Proxy. A proxy is an authorized substitute for a person, usually for the purpose of voting, etc. FORM OF A PROXY TO" VOTE. Be it known, That I, A. B., of county, have constituted and appointed, and do hereby constitute and appoint C. D., of , to be my true and lawful substi- tute and proxy, for me, and in my name, to vote at any election for directors of the of , or on any other question 'that may be put,' at a stated or special "meeting of the stockholders of the said , as fully as I might or could do if personally present. Witness my hand, this — — day of , A. D. one thousand eight hundred and . A. B. [seal.] Signed in presence of XIV. Contracts or Agreements. There are numerous instances where contracts require to be drawn up. Their form is not essential, so that two points clearly appear, 1st, .that there is a considera- tion on each side ; 2nd, that there is consent. The points agreed upon should be clearly and freely stated. Con- tracts should always be in writing, and under seal. The parties must be able to bind thernselves, which excludes minors, idiots, married women, etc. Their tenor must not be against public policy and morality. 20 230 LEGAL FORMS AND BUSINESS LAWS. When the non-performance of a contract is occasioned by the party for whose benefit the performance was in- tended, it will release the other from his obligation. If a person contract to do a thing at a certain time and place, and if he be ready then and there to do it, and the other party fail' to be present ; the contract is ter- minated. If a party contracts to perform a certain piece of work, and the other's liability depends on its entire performance , before he can be called upon for anything, as in case of work done upon a building, though the work be not completed, yet being of some value to the other party, a, reasonable compensation may be recovered, over and above the damage caused by the non-performance of the contract. In dissolving oontrads, the law requires that it shall be done by the same means that rendered it binding, that is, where the agreement is under seal the release or discharge must be under seal likewise, and where the contract is required by law to be in writing, though- not iinder seal, it cannot be dissolved by a verbal agreement. GENERAL FORM OF AGREEMENTS. This Agreement, made this day of - A. D. 1872, by and between C. D., of , of the first part, and A. B. of , of the second part, Witnesseth: That the said C. C, for the consideration hereinafter mentioned, promises and agrees to [Iiere state the agree- ment, whether to build, make, sell, deliver, eic.] AGEEBMENTS. 231 In consideration whereof, the said A. B. hereby agrees to pay to the said C. D. [here state the conditions, whether to pay in goods, cash, notes, etc.] Whereunto witness our hands and seals at the day and date first above written. r 5ct. 1 A. B. [seal. WitTiesses \ UampJ Q jy [seal.; (two.) J agreement with a cleek. Aeticles of Ageeement made, entered and con- cluded, this day of , A. D. 187 — , between A. .B. and C. D., both of the town of , county of ,.and State of , in manner following, to wit: The said C. D. covenants and agrees, faithfully, truly, and diligently to write for, and act as the clerk of him, the said A. B., from the day of the date hereof, for and during the space of years if so long both parties shall live, without absenting himself from the, same ; during which time he, the said C. D., will resort to the said A. B.'s office in , and there attend and do and perform the clerkship aforesaid, without revealing any of the secrets of the said A. B., his occupation, oi' business. In consideration of which service, so to be performed, he, the said A. B., covenants and agrees, to allow and pay to the said C. D., the sum of dol- lars, by four equal quarterly payments, or oftener, if required. Provided, nevertheless, that if it should happen that the said C, T>. shall fall sick, or shall be absent from the office of the said A. B., when he has employment for him, then such absent time shall be deducted, allowed for, and made up to the said A. B. 232 LEGAL FOEMS AND BUSINESS LAWS. In witness whereof, we have hereunto set our hands, etc. C. D. [l. s. Sealed and delivered 1 [stomiJ A. B. [l. S. in presence of / In case the agreement should have a penalty attached it should read — "And for the true performance of the above covenants the said C. D. binds himself, his heirs, and executors in the sum of dollars as liquidated damages." CONTEACT FOE BUILDING. CoNTEACT FOE BuiLDiNG, made the day of -, one thousand eight hundred and , by and between A. B. of , in the county of , of the first part, and C. D., of said , of the second part, in these words : The said party of the second part cove- nants and agrees to and with the said party of the first part, to make, erect, build, and finish, in a good, substan- tial, and workman-like manner, a dwelling house, on the vacant lot of land, belonging to the said party of the first part, situate on street, in the town of , agreeable to the draft, plan, and specification hereto annexed, of good and substantial materials, by the day of next. And the said party of the first part covenants and agrees to pay unto the said party of the second part for the same, the sum of dollars, law- ful money of the United States, as follows : The sum of dollars. IHere mention the sums and tim,es of payment.'] And for the true and faithful performance of all and every of the covenants and agreements above mentioned, the parties .to these presents bind them- PAETNEESHIP. 233 selves each unto the other in the penal sum of dollars, as fixed and settled damages to be paid by the failing party. In witness whereof, the parties to these presents have hereunto set their hands and seals, the day and year first above written. A. B. "l Sealed and delivered \ in presence of J - 5c(. - _Stamp._ CD. °L .. s.] XV. Articles of Co-Partnership. ' Articles of partnership are an agreement drawn up between itwo or more persons to unite their capital or labor, or both, in business, and to have the profit or loss which arises, iff certain proportions. The articles of partnership ought always to be drawn in writing. The points which it is most important to state clearly, are 'these : Under what firm name the business is to be conducted. When the partnership begins, and how long it is to last. How much is to be drawn for personal expenses, and when. The kind of business to be done. What capital, and what personal service each partner is to put in. Whether interest is to be allowed on the capital. Wh^t is to be done with the joint property if the partnership is dissolved. 20* " 234 LEGAL FORMS AND BUSINESS LAWS. That no partner is to become bound for surety, indorse a note, etc., except for the business of the firm, without the written consent of the remaining partners. FORM OF PARTNERSHIP ARTICLES. Articles of Agreement, made the day of , A. D. one thousand eight hundred and seventy -, between J. D. of , of the one part, and R. R. of , of the other part. The said J. D. and R. R. have agreed, and by these presents do agree, to become co-partners together in the art or trade of , and do hereby promise to be governed by the following articles, namely : First. The said business shall be carried on under the firm and style of D. & R. Second. Each of said partners shall furnish in cash a capital of dollars, of which the sum of dollars shall be advanced by each partner immediately, and the remainder by three equal monthly instalments of dollars, on which capital no interest is to be allowed. Third. Each of said parties shall give his personal attention and devote his time, during reasonable hours of business wholly to the interests of the firm, use his best skill, judgment and discretion in promoting the profits of the business ; and during the continuance of this agreement neither of said partners shall engage in any speculations on his own separate account, to, or be in any way interested in any other business than that of the co-partnership hereby established. Fourth. The accounts of the said parties shall be kept in regular books, by double entry [or single entry], so long as either party shall desire it, and every transaction PARTNERSHIP. 235 shall be duly entered, and the said books shall at all times be open to the inspection and free use of either party. Fifth. Neither of said' parties shall assume any pecu- niary liability, either in his own name or that of the firm, for the accommodation of any other person without the written consent of the other party. Sixth. Neither party shall withdraw froin . the funds of the firm more than his share of the profits, nor more than '- — dollars monthly. The net profits are to be divided on the 1st of January and July of each year. Seventh. All purchases of goods exceeding the value of dollars shall be the subject of consultation and mutual agreement by the partners. Eighth. At the expiration of this co-partnership, the stock or its proceeds, after paying the debts of t^e firm, shall be divided between the respective partners, share and share alike. * Ninth. This co-partnership commences with the date of these articles, and is to continue for the terra of years, unless sooner dissolved by mutual consent. And in testimony of our agreemeiit to each of the above articles, witness our hands and seals the day and year above written. J. D. WUnesses \ [^fj^],,] R. E. (two.) / SEAL.] SEAL.] A Partnership expires when the time elapses for whicb it was formed ; it is dissolved by the death of one of the parties, insolvency, or mutual consent. In this case it is customary and prudent to notify the principal corres- 236 LEGAL FORMS AND BUSINESS LAWS. pondents of the firm by letter, and also to insert in the newspapers a notice similar to the following : DISSOLUTION OF PARTNERSHIP. The partnership heretofore existing between John Stokes and Michael Euggles is this day dissolved. The debts of the late firm will be paid by Michael Euggl^, who is also authorized to receipt for all debts owing it. John Sto:^:es. Michael Ruggles. Cleveland, O., April 1, 1872. In selling an interest in a partnership, it has been ruled that the word release shall be used, as " I hereby sell, transfer, and release unto the said," etc. XVI. Guaranties and Warranties. A guaranty is an engagement or agreement that the giver shall become responsible for a debt contracted by another person. A warranty is a binding statement that property or goods sold are as represented by the seller. There is an implied warranty of title in most sales ; that is, if a man sell what does not belong to him, the purchaser can recover damages. But there is no implied warranty of condition, except that the -seller must use no false pretence. A guaranty must be for a valuable consideration ; it must be in writing signed by the guarantor and contain a definite promise in distinct terms. WAEEANTIES. 237 FOEMS OF GTJAEANTIES. Ghiaranty for Bent {to be endorsed on a lease). In consideration of one dollar, I do hereby guarantee to A. B., the true and punctual payment of the rent due on the within lease by C. D., at the times and in the manner therein mentioned, and in default thereof, I promise to pay the same on demand. Witness my hand and seal this day of 1872, at . Sam. Biddle. [seal.] Witnesses \ Chmrantyfor Goods. For a valuable consideration I hereby guarantee to Messrs. Claxton & Co., the payment for all goods which they may supply to John Small, within one year from date, exceeding the amount of ttree hundred dollars. YiNCEurT "Worth. Dated, etc. A warranty does not require a very rigid form. The following in reference to the sale of a horse, is sufficient. WAEEANTY OP A HOESB. Having this day sold Joseph Minton a horse [here describe it accurately']! Now for a valuable consideration I do hereby warrant the said horse to be sound in every respect, to be free from vice, to be well broken, and kind and gentle in single and in double harness, and under the saddle. Dated, etc. Witness, \ Cyeus Sines. K. Teeat. ( 238 ' LEGAL FORMS AND BUSINESS LAWS. A mere declaration of confidence or intentions, how- ever favorable to the debtor, as saying that if such a one should wish to purchase, you would be willing to guar- antee, does not amount to a guarantee, and does not bind you. A promise of guarantee to be valid, by the statute laws of most of the States, must be in writing, and signed by the surety. ' XVII. Leases. The laws relating to landlord and tenant in the differ- ent States are so various that it is better to employ the printed form, to be bought at any large stationers. But I will also give a form which will be perfectly valid in the absence of these. ' The statutes of most States are .decidedly in favor of the tenant. As an expert lawyer once remarked to me : ''Any lease is a good lease ; " meaning that any form of • leasing for a consideration is valid. In drawing a lease, the landlord looks at one side, the tenant at the other. The landlord ought to see that the duration of the lease is distinctly stated ; that the times when the rent is due are fixed ; if rent is payable in advance, that this be said > that claims for exemption are waived ; that security for rent, taxes, gas and water rent is given, if required ; that sub-letting is forbidden. The key should not be delivered to the tenant before the lease is executed and security settled. ' LANDLORD AND TENANT. , 239 The tenant ought to see that the landlord agrees to keep the premises "in repair;" that the lease does not contain a clause through which he might be forced to pay the taxes ; that a covenant to repair state carefully what repairs. A landlord is usually bound for the taxes, tin- l^s otherwise specified ; he is not bound to make any re- pairs unless he agrees to ; while a tenant is only bound to repair injuries occasioned by his voluntary negligence. FOEM OF A LEASE. ^\)iS Agreement wltnesseth that I, A. B., of do hereby let unto C. D. of the same placCj all that house and lot '[here describe the premises] for the term of one year from the 1st day of Feb. 1872, at the rent of two hundred and forty dollars per annum, to be paid in monthly portions of twenty dollars on the first secular day of each calendar month, and the said C. D. hereby for himself, his heirs, executors and administra- tors, covenant and promise to pay to the said A. B., his heirs, and assigns, the said rent, in the proportions afore- said; and he the said C. D., his executors and adminis- trators, shall and will not, at any time during the said term, let or demise, or in any manner dispose of the hereby demised premises, or any part thereof, for all or any part of the term hereby granted, to any person or persons whatever, nor occupy or Use the same in any other manner than as a dwelling without the consent and approbation in writing, of the said A. B., his heirs and assigns, first had for that purpose — and at the expiration of the said term, yield up and surrender the possession of the said premises, with the appurtenances, unto the 240 LEGAL FORMS AND BUSINESS LAWS. said A. B., his heirs aud assigns, m the same good order and condition as the same now are, reasonable wear and tear thereof, and accidents happening by fire or other casualities excepted. ^tlU the said C. D. for himself, his executors and administrators, does hereby agree that all the personal property on the premises shall be liable to distress, and also all personal property if removed therefrom, shall, for thirty days after such removal, be liable to distress, and may be distrained and sold for rent in arrear ; the said C. D., for himself, his executors and administrators, hereby waiving all right to the benefit of any laws now made, or hereafter to be made, exempting personal prop- erty from levy and sale for arrears of rent. $t is hereby further agreed, that if the above-named C. D. should continue on the above described premises after the termination of the above contract, then this contract is to continue in full force for another year, and so on, from Feb. 1st, 1873, until legal notice is given for a removal. ifn MiitmBS Wii)ntOi, the said a. B. and C. D. have hereunto set their hands and seals, the day of one thousand eight hundred and seventy- two. A. B. [l. s.; Sealed and delivered \ C. D. [l. s." in the presence of J T, E. F., do hereby agree to be responsible to A. B., lus heirs and assigns, for the true and faithful perform- ance of the above-named contract on the part of C. D. In witness whereof, I have hereunto set my hand and -XiANDLOED AND TENANT. 241 ' seal, the day of one thousand eight hun- dred and seventy-two. E. F. [l. s.] Sealed and delivered \ in the presence of J When a lease expires without notice to quit being served by the landlord, it is construed in most cases to be a tacit agreement between the owner and tenant that the latter shall remain one year more. Hence it is well three months before the expiration- of a lease to serve the following, NOTICE TO QUIT BY THE LANDLOED. Sir: — Please to take notice that 'you are hereby re- quired to surrender and deliver up possession of the house and lot known as No. street [describing the premises] which you now hold of me ; and to remove therefrom on the first day of next, or at the ex- piration of the current year of your tenancy. Dated this day of , 187— A. B., To Mr. C. D. Landlord. This must be delivered to the tenant or to an adult member of his family in presence of a witness. If he cannpt read, it must be read aloud to him. XVIII. Seeds. A Deed is a conveyance of real estate. It is said to be '_' executed " when it is signed, dated, sealed, stamped, witnessed, acknowledged, and delivered. In nearly all 21 242 LEGAL FOEMS AND BUSINESS LAWS. States two witnesses are necessary to the execution ; and in most the wife of a married man conveying land must acknowledge the deed, having been examined privily by the notary or other proper officer, and she shall declare that the deed is her voluntary act, without compulsion by her husband. The acknowledgement of deeds is made by the gran- tors, or one of them, or by attorney, before a judge, justice of the peace, magistrate or notary public, in the State where the land lies, and in any other State or Ter- ritory before a commissioner appointed by the Governor of the State ; and if in a foreigii country, before a min- ister or consul of the United States. A deed must contain a distinct description of the land or tenement, how it is bounded, whether on a creek, highway, street or by known and fixed monuments, etc., etc. The deed may refer for a description of the land, or tenement, either to a plan, another eked, a vrill, or to the actual condition of the estate. Though a certain number of feet or acres be mentioned in the deed, it does not amount to a warranty tliat there is that quantity, especi- "ally if " more or less " be- inserted, or the deed contain specific boundaries. The parties must be legally able to contract, and there must be a subject to contract for ; all which must be ex- pressed by sufficient names. A deed cannot bind a party who seals it, unless it contains words expressive of such intention. If the wife's right of dower in the premises A GOOD DEED. 243 is to be released, it must be so stated in the deed, and the wife must join with her husband in its execution, re- leasing her right of dower. If real estate, held by the husban^ in right of the wife, is to be conveyed, both the husband and wife must join in the deed. If an attorney have authority to convey lands, he must do it, not in his own name but in that of his principal. A power to exe- cute a deed must itself be under seal, and acknowledged. The deed should be made for a good and valuable con- sideration to give validity to it against the claims of creditors or subsequent purchasers. A deed made upon fraud or collusion to deceive purchasers or lawful credi- tors will be void, but not as between the parties them- selves. Delivery is essential to the due execution of a deed ; after the delivery of a deed, the estate vests in the pur- chaser though the grantor keep the deed, or fraudulently obtain and destroy it. No particular form is necessary for the delivery of a deed ; an act which indicates an in- tention of putting the purchaser in possession is sufficient. Most deeds contaia a warrant of title. The following is an ordinary FORM OP A DEED. Know all men by these presents. That I, E. B., of , in the county of , and State of — ^ — , merchant, in consideration of dollars paid to me by ' T. A., of , in the county of , and State of , fermer, (the receipt whereof is hereby acknowledged,) do 244 LEaAL FORMS AND BTTSINESS LAWS. hereby give, grant, bargain, sell and convey unto the said T. A., his heirs and assigns, forever, a certain tract or parcel of land, with the buildings thereon, and all the privileges and appurtenances to the^ same belonging, situate in , in said county, and bounded and des- cribed as follows. [Here describe the land.^ To have and to hold the above granted premises, to the said T. A., his heirs and assigns, to his and their use and beTioof forever. And I, the said E. B., for myself and my heirs, execu- tors, and administrators, do covenant with the saidT. A., his heirs and assigns, that I am lawfully seized in fee simple of the aforegrauted premises ; that they are free- from all incumbrances ; that I have good right to sell and convey the same to the said T. A., his heirs and assigns forever, as aforesaid ; and that I will, and my heirs, exeriitors, and administrators shall warrant and DEFEND the same to the said T. A., his heirs and assigns forever, against the lawful claims and demands of all persons. In witness whereof, I, the said E.. B., [and I, M. B., wife of the said E, B., in token of my release of all right and title of or to dower, in the granted premises,] have hereunto set [my or our] hand[s] and seal[s], this day of in the year of our Lord eighteen hundred and seventy- E. B. SEAL.] I Sealed and delivered 1 M. B. [seal.] in presence of j [samp.] After execution every deed should be recorded in the county or town where the land lies, after it has been acknowledged, if not recorded it is good only against the HOW TO MAKE A WILL. 245 graidor and his heirs, and void against subsequent attach- ing creditors of the , grantor or purchasers, having no' notice of the first conveyance. In some States a certain time is allowed, within which a deed should be recorded. In those States where there is no prescribed time, the deed must be recorded within a reasonable time. If a right of way goes with the property, it must be mentioned in the deed. The buyer should see that there is no incumbrance on the property, that the back taxes are paid to date of the deed, that interest on mortgages are also paid (by the grantor) to the same date, that no adjacent property-owner has right of way or of water over the premises, etc. XIX. Wills. . Wills are either verbal or written, A prudent man who ' wishes his property disposed of otherwise than the statutes of intestacy of his State decree, will do well to prepare his will while in health. When a 'new will is made the old will should be destroyed. Verbal wills should be avoided when possible. When a man marries he must make a new will, for marriage and the birth of a child revoke former wills, by law. A will must be made by ai person in sound mind, an adult in years. The person making the will should give his own full name, residence and occupation ; he should describe with equal distinctness those to whom he leaves 21* 246 LEGAL FORMS AND BUSINESS LAWS. his property ; he should express himself in plain terms ; he must sign it at the foot or end, in the presence oi three intelligent witnesses, and he should declare aloud in their presence that, " This is my last will and testament." If he cannot sign it, it must be signed by some other person by his direction before the three witnesses. When he wishes to leave a specific legacy to some institution or person, if personal property, he should write, " I give and bequeath ; " if real estate, " I give and devise, etc. ;" fully describing the property so left. FOEM OP A WILL. Know all men by these presents, that I, John Bents, of , in the county of , and State of , farmer, being of sound and disposing mind and memory, do make and publish this my last will and testament. First. I give and bequeath to my oldest son, Charles Bents, of , in the county of State of , merchant, etc. [Here describe the property.'] Second. I give and bequeath to my second son, Eichard Bents, of , county of , State of physician, etc. {Describe the property.'] Third, I give and devise to my wife, Jane Bents, all the rest and residue of my estate, real and personal, etc. Fourth. I appoint my brother, Joseph Bents, of , county of , State of , and my friend, Simon Coates, of , county of , State of , executors of this my last will and testament. CODICILS. 247 In witness whereof, I, the said John Bents, set my hand and seal hereunto, this day of 18 — John Bents, [seal.] Signed, sealed, published and declared " by the said John Bents, as and for his last will and testament in pres- ence of us, who in his presence, and in the presence of each other, and at his request have hereunto subscribed our names as witnesses. L. M. O. P. G. H. A codicil to a will is an alteration or addition to it. The following is a FOEM OF A CODICIL. Wheeeas, by my last will and testament, dated the day of , 18 — , I gave to my second son Eichard Bents, [here mejiiion the legacy,'] I do hereby, by this present writing, which I declare to be a Codicil to my said will, revoke the said legacy, and give and be- queath the same to my oldest son Charles Bents. (To be signed, sealed, published, and declared by John Bents, "as a codicil to my last will and testament," and witnessed as in the will). A VERBAL WILL, should be taken in the presence of three witnesses in the following form : 248 LEGAL FOKMS AND BUSINESS LAWS. A NUNCUPATIVE OE VERBAL WILL. A. B., his will by word of mouth, made and declared by him on the day of , 187 — , in the presence of us, who have hereunto subscribed our names as wit- nesses hereto. " My will is that, etc.," \here recite his very """■^-J Signed, ^ j^ [To be taken in form of a depositinn and sworn to " before any Justice of the Peace within ten dJiys.] (j-, H, XX. Administration of an Estate. When a person dies without making a will, the estate is " administered upon." The practice of the courts vary slightly in the different states in regard to administration. In Pennsylvania the right to administer upon an estate is given first to the widow or husband, then to the sons, beginning wjth the oldest, and after them to the daughters. If they fail to do so, any one to whom the estate owes a debt, or who is interested, can administer on obtaining a renunciation from those who are by right entitled. FOEM OF EENUNCIATION. To , Register 1 of Wills, of Co., Pa. / We , , widow and son of late of deceased, do hereby renounce all our right to letters of administration upon the estate of said ADMINISTEATOES. 249 deceased, and desire that the same may be granted to of . Witness our hands this day of , 1872. The administrator then files a bond with two securities in double the value of the personal estate of the deceased, and obtains from the Register of Wills, Letters of Administration. The administrator must remember that he has nothing to do with the real estate, unless it is necessary to sell it to pay the debts of the deceased. When the letters are granted, the administrator should insert a notice in the county paper for six weeks to that effect. Within 30 days from the date of issue of the Letters, an inventory and appraisement must be filed in the Register's office, showing the whole of the personal pro- perty of the deceased, debts due him, etc. This must be made by two disinterested parties, and sworn or affirmed. The widow and children are in Pennsylvania entitled to $300.00 out of this sum, before any debts are paid, except a mortgage, or judgment given for purchase-money. If the administrator wishes to sell the remaining per- sonal property, he must give twenty days' notice and sell by public sale ; and if it shall appear that the proceeds are not sufficient to pay the debts, then, and only then, has he a right to proceed to sell the real estate. 250 LEGAL FOEMS AND BUSINESS LAWS. Having thus obtained the money, he proceeds to pay the debts in the following order : 1st, The liens on the real estate. 2nd, Funeral expenses, doctors' bills, medi- cines, servants' wages. 3rd, Rents (not exceeding one year). 4th, All other debts. 5th, Debts due the Com- monwealth. He must file an account of his adminisifation within one year from the date of the Letters, and after they are confirmed he may receive his discharge. If you are appointed executor or administrator, deduct the charge of administration from the amount of assets in your hands ; for if you pay out all the money arising from the personal estate, you cannot obtain a licence to sell the real estate to pay the expenses of administration. In case the rightful heirs object to renouncing their claim to administer, and yet refuse to proceed, as occa- sionally happens when they wish to avoid payment of debts by the estate, any creditor can submit testimony to that effect, and obtain a rule of the court appointing an administrator. RATES OP INTEEEST AND T7STJEY LAWS IN THE DIFFERENT STATES. In transacting a general business the knowledge of the following facts will frequently prove useful. - MAINE. The legal rate of interest is six per cent., and no higher rate is allowed on special contracts. INTEREST AND USURY. 251 Usurious interest is not recoverable, nor costs where it has been taken ; but the defendant may recover costs of the party taking the excess. Excess of interest may be recovered back by the party having paid it. NEW HAMPSHIRE. The legal rate of interest is six per cent., and no more is allowed on contracts, direct or indirect. . The person receiving interest at a higher than the legal rate, forfeits for each offence three times the sum so received. VERMONT. The legal rate" of interest is six per cent., and no higher rate of interest is allowed on special contracts, except upon railroad notes or bonds, which may bear seven per cent. The excess of interest received beyond six per cent, may be recovered. MASSACHUSETTS. The legal rate of interest is six per cent., but any higher rate is allowed on special contracts. A contract for the payment of money with interest greater than six per cent, is tlierefore valid. Formerly in an action on such contract the defendant could recover his full costs, and the plaintiff had to forfeit three-fold the amount of the whole interest reserved or taken. 252 LEGAL POEMS AND BUSINESS LAWS. RHODE ISLAND. The legal rate is six per cent. The penalty for con- tracting for a higher rate is the forfeiture of the amount taken above this rate. CONNECTICUT. The legal rate is six per cent., and no more is allowed. Banks are forbidden, under penalty of $500, from taking directly or indirectly over 6 per cent. The penalty is forfeiture of all the interest received. In suits on usurious contracts, judgment is to be rendered for the amount lent, without interest. NEW YORK. The legal rate of interest in New York is seven per cent., and no higher rate is allowed. The penalties are forfeiture of the contract in civil actions. In criminal actions, a fine not exceeding one thousand dollars; or imprisonment not exceeding six months; or both. All bonds, bills, notes, assurances, conveyances, all other contracts or securities whatsoever (except bottomry and respondentia bonds and contracts), and all deposits of goods, whereupon there shall be taken any greater sum than seven per cent., shall be void. NEW JERSEY. The legal rate now adopted in the State is seven per INTEEEST AND USURY. 253 cent. The penalty for usury is that the contract is void and the whole sum is forfeited. PENNSYLVANIA. The legal rate of interest in Pennsylvania is six per cent., except as provided in the following acts : Sec. 1. Be it enacted, etc., That commission merchants and agents of parties not residing in this commonwealth be, and they are hereby authorized to enter into an agree- ment to retain the, balances of money in their hands, and pay for the same a rate of interest not exceeding seven per centum per annum, and receive a rate of interest, not exceeding that amount, for any advance v{ money made by them on goods or merchandise consigned to them for sale or disposal : ^Promded, that this act shall only apply to moneys received from or held on account of any advances made upon goods consigned from . im- porters, manufacturers, and others, living and transacting business in places beyond the limits of the State. In investments by building associations, in loans to members thereof, the premium given for preference or priority of loan shall not be deemed usurious. Loans to railroads or canal companies, and bonds taken for a larger sum than the amount of money ad- vanced, are not usurious. There is now no penalty for usury in Pennsylvania, but the principal sum and legal interest can only be re- covered. If a person voluntarily pays greater than legal 22 254 LEGAL FOEMS AND BUSINESS LAWS. interest, he may recover back the excess if sued for within six months. DELAWAEE. The legal rate of interest is six per cent., and no more is allowed on direct or indirect contracts. The penalty is forfeiture of the money and other things lent, one half to the Governor for the support of government, the other half payable to the person suing for the same. This law is rigidly enforced. MARYLAND. The rate must not exceed six per cent. The penalty for usury is the forfeiture of all the iqter- est due, and all the excess above the real value of the goods, etc., lent or advanced. VIEGINLA., The legal rate of interest in Virginia is six per cent, and no higher rate is allowed on special contracts. All contracts for a greater rate of interest than six per cent, per annum are void. NOETH CAROLINA. The rate in this State is six per cent., and no more is allowed. The penalty is the forfeiture of both principal and interest ; if it is shown that more than six per cent, has INTEREST AND USURY. 255 been collected, the creditor is liable for double the amount of both principal and interest, one-half going to the claimant, the other to the commonwealth. SOUTH CAROLINA. The legal rate of interest in South Carolina is seven per cent., and no higher rate is allowed on special con- tracts. The penalty for violation of the usury laws is the loss of all the interest taken. GEORGIA. The legal rate of interest in Georgia is seven per cent., and no higher rate is allowed on special contrapts. Open accounts, unliquidated, do not bear interest. The penalty for violation of the usury laws is forfeit- ure of only the excess of interest over seven per cent. Principal and legal interest are recoverable. FLORIDA. The legal rate is six per cent., but eight per cent, may be charged by special contract. The penalty for usury is the forfeiture of the whole interest paid. ALABAMA. The rate of interest in Alabama is eight per cent, per annum. All contracts made at a higher pate of interest than 256 LEGAL POEMS AND BUISNESS LAWS. eight per cent, are usurious, and cannot be enforced except as to the principal. MISSISSIPPI. The legal rate is six per cent. No laws relating to usury. LOUISIANA. All debts shall bear interest at the rate of five per cent, from the time they become due, unless otherwise stipu- lated. But conventional interest not exceeding eight per cent, per annum may be contracted for. TEXAS. The legal rate is eight per cent., which can be collected when no special rate is expressed. A written contract may stipulate for any rate not above twelve per cent, per annum. The penalty for charging above twelve is a forfeiture of all the interest paid or charged. OHIO. The law allows interest at six per cent, per annum on all money due, and no more. Railroad Companies are authorized to borrow at the rate of seven per cent. There are no penalties ordinarily for usury. Contracts for greater rates are void as to the excess only ; and if INTEREST AND USURY. 257 interest beyond six per cent, has been paid, the debtor has a right to have such excess applied as payment on the principal. An excess of interest taken by banks invalidates the debt. INDIANA. The legal interest in Indiana is six per cent.', which may be taken in advance. If so expressly agreed. If a greater rate of interest than as above shall be con- tracted for, the contract shall not, therefore, be void ; but" if it is proved in any action that a greater sum than six per cent, per annum has been contracted for, the plaintiff shall only recover his principal with six per cent, interest and costs ; and if the defendant has paid thereon over six per cent, interest, such excess of interest shall be deducted from the plaintiff's recovery. ILLINOIS. When there is no contract or interest expressed, six per cent, only can be collected. But by stipulation as high as ten per cent, is legal. Usury is punished by forfeiture of the whole of the interest contracted for, MICHIGAN. The legal rate of interest in Michigan is seven per cent. But it is lawful for parties to stipulate in writing for any sum not exceeding ten per cent. Parties suing upon contracts reserving over ten per 22* 258 LEGAL FOEMS AND BUSINESS LAWS. cent, interest, may recover judgment for the principal and legal rate of interest. There is no provision for recover- ing back illegal interest paid, and no penalty for receiving it. Bond fide holders of usurious negotiable paper taken before maturity, without notice of usury, may recover the full amount of its face. WISCONSIN. After January, 1863, the legal interest, by an act of the legislature, is seven per cent. An usurious contract is void, and the party loaning the money is liable to a penalty of three times the usury in addition. Whenever any person shall apply to any court in this State to be relieved in case of a usurious contract or security, or when any person shall set up the plea of usury in any action or suit instituted against him, such person, to be entitled to such relief or the benefit of such plea, shall prove a tender of the principal sum of money or thing loaned, to the party entitled to receive the same. MINNESOTA. Interest for any legal indebtedness shall be at the rate of $7 for $100 for a year unless a different rate be con- .tracted for in writing, but no agreement or contract for a greater rate of interest than $12 for every f 100 for a year shall be valid for the excess of interest over twelve per cent ; and all agreements and contracts shall bear the same rate of interest after they become due as before, if INTEREST AND USURY. 259 the rate be clearly expressed therein. Provided, the same shall not exceed twelve per cent, per annum. All judgments or decrees, made by any court in this State, shall draw interest at the rate of six per cent, per annum. The penalty for the violation of interest law is, excess of interest over twelve per cent, forfeited. IOWA. The legal rate of interest in Iowa is six per cent. Ten per cent, may be charged on special contracts. On judg- ments, interest is chargeable as on the contract. Forfeiture of the excess of interest paid for the benefit of the school fund is the penalty for usury. The borrower is by law a competent witness to prove usury. MISSOURI. The legal rate of interest in Missouri is six per cent, when no other rate is agreed upon. Parties may agree in writing for any larger rate, not exceeding ten per cent. Parties may so contract as to compound the interest annually. The penalty is forfeiture of the entire interest; but judg- ment to be rendered for the principal with ten per cent, interest, the interest to be appropriated to the school fund. KENTUCKY. The legal rate of interest in Kentucky is six per cent. 260 LEGAL FORMS AND BUSINESS LAWS. No higher rate of interest is allowed even on special con- tracts. All contracts made, directly or indirectly, for the loan, or forbearance of money, or other thing, at a greater rate than legal interact (six per cent, per annum), shall be void for the excess of legal interest. TENNESSEE. The legal rate of interest in Tennessee is six per cent., and no higher rate can be recovered at law. Contracts at a greater rate of interest are void as to the excess, and the lender is liable to a fine of flO to flOOO. The usurer is liable to an indictment for misdemeanor. If convicted, to be fined a sum not less than the whole usurious interest taken and received, and no fine to be less than ten dollars. The borrower and his judgment creditors may also, at any time within six years after usury paid, recover it back from the lender. ARKANSAS. The legal rate of interest in Arkansas is six per cent. Special contracts in writing will admit an interest not to exceed ten per cent. All judgments or decrees upon contracts bearing more than six per cent, shall bear the same rate of interest originally agreed upon. All contracts for reservation of a greater rate of interest than ten per cent, are void. The excess taken or charged beyond ten per cent, may be recovered back, provided the action for recovery shall be brought within one year after payment. INTEREST AND USTTEY. 261 CALIFOENIA. The legal rate of interest in California is, by statute, fixed at ten per cent. On special contracts any rate of interest may be agreed upon or paid. There is no law in California fixing any penalty for charging any rate of interest above ten per cent. The matter is thus left entirely fi^ee between the contracting parties. THE DOMINION OF CANADA. Six per cent, is the legal rate of interest, but any rate agreed upon can be recovered. Judgments bear six per centum per annum interest from the date of entry. Banks are not allowed a higher rate than seven per cent. Cor- porations and associations authorized by law to borrow and lend money, unless specially allowed by some Act of Parliament, are prohibited fro'm taking a higher rate of interest than six per cent. Insurance companies, however, are authorized to take eight per cent. WHEN INTEREST CAN BE COLLECTED. Where there is no contract, express or implied, for the payment of interest, it is not allowed on the price of goods^sold, even though a certain day is fixed for pay- ment — nor on the price of work and labor — nor on money lent — nor on money paid for the use of another — nor on money received for the use of another — nor on a balance struck on an account for goods sold. Interest is not due 262 LEGAL FOEMS AND BUSINESS LAVS. on a written instrument, unless it is expressed in the instrument that interest was intended to b^ paid, or such interest is implied. Interest may be implied from the usage of trade, or the dealings between parties ; and it is always implied in mercantile instruments, as bills and promissory notes, after the time they ought to have been paid. If a note or bill, payable at a given time after date, be for a specified sum, " bearing interest," these entitle the holder to interest from date. Without these words, the holder is entitled to interest from the day of maturity. Interest, however, is not then allowed, if the delay in payment is caused by the default of the holder. ON DOINa BUSINESS WITH BANKS. The object of banks is to offer persons a safe plax» to keep money which they do not wish to invest, and also to facilitate the borrowing of money to meet the wants of business. For one or the other, or for both of these purposes, almost every one finds it of advantage to " keep a banker," and should therefore have a general acquaint- ance with the plan on which banks conduct business. When you wish to make a deposit in a bank it may be of a single largp sum for a definite length of time, or smaller sums as they accumulate from day to day. The former may be left in the form of a " special deposit." For this, the bank gives a printed receipt called a " cer- tificate of deposit," on the return of which, the money is refunded. BANKING BUSINESS. 263 A " running account " where a nupiber of deposits are made, is the more usual character. The bank furnishes a " bank book," in which the different amounts are en- tered as they are received. A "check-book" is also given, from which the checks drawn by the depositor are taken as required. A blank margin is opposite each check, which should be filled with a memorandum of the number, date, and amount of the check, to whom it is drawn, and for what purpose, as follows : No. 85. Feb. 2, 1872. ' John Eepples. Coal. $74.28. The amount of each check is to be subtracted from the balance in bank, so that the drawer has constantly before him in writing a check the exact sum he has to his account. On opening an account, you should go accompanied by some responsible person who is acquainted with the cashier, and obtain an introduction to this officer. Hav- ing explained your wishes, he will ask you to sign your name in a book kept for the purpose, so that your signa- ture will be recognized on checks and notes. He may also ask some questions in reference to your business, financial status, etc., which should be candidly answered, without any attempt to exaggerate them. He will then furnish you a bank-book and a check-book. 264 LEGAL FOEMS AND BUSINESS LAWS. OFFICERS OF A BANK. Although the President and Directors are the officers of the corporation, the Cashier is the most important officer of a bank, and his position is the most responsible. All letters addressed to the bank on business should be to him — not to his name, but as follows : Cashier of the Eighth National Bank. He is the proper person to grant any special indulgence, and to decide on any general question in relation to the business of the institution. The Paying Teller is next in importance. He dis- burses the funds of the bank, and is held responsible for the proper fulfilment of this iniportant duty. He is usually under bonds, sometimes to the extent of ten or twenty thousand dollars. All checks should be presented . to him. The Receiving Teller receives the deposits. Many banks requre a " deposit ticket," to be filled up by the depositor, containing the amount of the deposit, the form in which it is (checks or notes), the date, and name. This is an excellent rule, and should be universally observed. The Book-keeper's duty is to post the accounts of the various depositors. "When there is a discrepancy between your balance according to your own calculation and that which the bank assigns you, he is the person to apply to, BUSINESS WITH BANKS. 265 to correct. If you have left notes or drafts for collection, and wish to learn if they have been paid, you should also apply to him. GENERAL EULES FOE DOING BUSINESS WITH A BANK. It is well to be perfectly fair and open in your trans- actions with a bank. The officers are too thoroughly versed in all the tricks and resorts of straitened and dishonest men to remain in ignorance of any attempt at deceit on your part. Ask as few indulgences as possible, and be careful not to overdraw your account. Do business as early in the day as possible, as at that time the officers have most leisure. Do not deposit without your bank book, and do not write checks except those from your own check book. Never date checks ahead, and be cautious of giving checks to strangers, as they may alter or copy them. "When it can conveniently be done, checks should be drawn to bearer rather than to order, as this is preferred by the banks, and is often equally safe for the drawer. Exchanging checks, or other endeavors of that" character to swell deposits, do you no good with the bank, as its officers watch such proceedings suspiciously. Never take advantage of a sum wrongly placed to your credit by a bank, and be very careful in going over your own figures before you charge ^he Book-keeper with an error in your balance. ^ 23 266 LEGAL FOEMS AND BUSINESS LAWS. EULES ABOUT NOTES. The money which is left on deposit, its own notes, and what other funds come into its vaults, the bank loans to its customers on promissory notes, and this is its chief source of profit. The interest is usually in the shape of discount. The Board of Directors meet once or twice a week, and all notes should be sent in to the bank the day before, addressed to the cashier in a note after the follow- ing form : Cashier of the — th National Banli, SiE: — We respectfully offer for discount the notes enclosed as follows : John Ross, Jan. 11, 4 mo., $210.75. Philip Veil, Feb. 6, 3 mos., 150.00. with our endorsement and collaterals as follows: \Jhere enumerate what collateral security^ if any, is offered^. E,espectfiilly, E. Williams & Co. The notes are laid before the Board of Directors at their meeting, and the propriety of discounting them discussed. Those accepted are so marked, and all are returned to the Note-clerk. If rejected, the applicant may try the next discount day, or may succeed by per- sonal solicitation, though that is not frequent. COLLECTING NOTES. 267 Notes may also be left for collection. They are handed to the receiving teller, who enters the name and amount on the bank book, but not in the column of dollars and cents. This is done only when the note is collected, and is called " extending the account." They should, when practicable, be deposited ten or fifteen days before they are due, as this length of time is preferred , by the bank, so that the payer can be hunted up, and that a " bank notice," informing him that the note will be due and pay- able at a certain date, may be served upon him. In inquiring about a liote, the name of the payer, not of the drawer, should be asked for, as they are catalo- gued in this manner by the banks. A note must be paid in current funds or by certified check, that is, a check which the cashier or paying teller of the bank on which it is drawn has certified across its fece to be good for the sum upon it. CHAPTER III. ON PATENTS, TEADE MARKS, AND COPYRIGHTS. Oq obtaining patents — Caveats — ^What may be patented — Who may obtain a patent — Specification — Drawings — ^Models — Oath of in- vention — Patented articles must be stamped — Assignments — Re- issues — Disclaimers — ^Forms for application for a patent — Forms of petition, specification, oath, etc. — The model — Extensions — Sell- ing and assigning patents — Forms for — Shop-rights — Fees of the patent oifice — Design patents — Instructions concerning trade marks — Directions for securing copyrights — International copy- rights. jATENTS and copyrights are obtained from the proper bureaus of the general government in Washington City : patents from the Commissioner of Patents, copyrights from the Librarian of Congress. They hold good in all parts of the United States and Territories, and protect the rights of the person to whom they are granted for a specified term of years. Hence they are powerful stimuli to the inven- tive .and intellectual faculties ; audit is the duty of all good citizens to uphold their integrity, and to aid in dis- countenancing and punishing any who attempt to infringe upon them, and rob the brain-worker of his well-earned gains. 268 ADVANTAGE OF A CAVEAT. 269 ON OBTAINING PATENTS. There are a number of firms who make it their busi- ness to obtain patents for inventors. Some of them are unreliable, and if the patent is a valuable one, cheat the inventor out of it. Most of them charge him high fees, generally from $50.00 to $75.00, which he may be hardly able to spare. The following instructions will enable him to make his own application in proper form. CAVEATS, A Caveat is a description of an invention or discovery not yet matured or completed, intended to allow the in- ventor time to perfect it before he patents it. The filing of a caveat prevents, during its existence, the issue of a patent, without the knowledge of the per- son who files it, to any other person for a similar device. He is entitled to receive official notice, during a period of one year, of any other petition for a patent for a si- milar or interfering invention, filed during that time. On receiving such ofiicial notice, he is required to com- plete his own application within three months from the date of the notice. A caveat consists of a specification, drawing, oath and petition. These papers are of the same nature as those for a patent. The fee for filing a caveat is f 10.00. It runs 23* 270 PATENTS, TEADE-MAEKS, AND COPYEIGHTS. one year, and it can be renewed for another year by ap- plication, and the payment of another $10.00. Caveats can only be filed by citizens of the United States, and aliens who have resided here one year and have declared their intention to become citizens. WHAT MAY BE PATENTED. Any new invention, discovery, or improvement, or any useful composition in medicine or the arts, which has not been in public use or sale for more than two years prior to the application, may be patented. If it has been patented in a foreign country, it is no bar to obtaining a patent here, provided it has not been in use in this coun- try for two years. In regard to applications for patents on manufactured articles, the only questions to be settled are : 1. Is the device of itself an article of trade? 2. Is it useful ? 3. Is it so different, in essential points, from other articles of the class to which it belongs, as to be easily distinguished in the market ? These being answered in the affirmative, a patent will be allowed. WHO MAY OBTAIN A PATENT. Any person, whether citizen or alien, being the original and first inventor or discoverer of any new and useful art, machine, manufacture, or composition of matter, or JOINT PATENTS. 271 any new and useful improvement, may obtain a patent for his invention or discovery. Joint inventors are entitled to a joint patent ; neither can claim one separately ; but independent inventors of separate improvements in the same machine cannot obtain a joint patent for their separate inventions ; nor does the fact that one man furnishes the capital and the other makes the invention entitle them to take out a joint patent. In case of an assignment of the whole, or of any un- divided interest in the invention, the patent may issue to the assignee of the whole interest, or jointly to the inven- tor and the assignee of the undivided interest, the assign- ment being first entered on record, and the application being duly made and the specification duly sworn to by the inventor. The application must be made by the actual inventor, if alive, even if the patent is to issue or reissue to an assignee ; but where the inventor is dead, the application and oath may be made by the executor or administrator. DESCEIPTION AND SPECIFICATION. Before any inventor or discoverer can receive a patent for his invention or discovery, he must make application in writing, to the Commissioner of Patents, and file in the Patent-Office a written description of it, and of the manner and process of making, constructing, compound- ing, and using it, in such clear terms as to enable any 272 PATENTS, TRADE-MARKS, AND COPYRIGHTS. person skilled in the art or science to which it appertains, or with which it is most nearly connected, to make, and use it ; and in case of a machine, he must explain its principle, and the best mode in which he has contem- plated applying that principle so as to distinguish it from other inventions ; and he must particularly point out and distinctly claim the part, improvement, or combination which he claims as his invention or discovery ; and the specification and claim must be signed by the inventor and attested by two witnesses. DRAWINGS. When the nature of the case admits of drawings, the applicant must furnish one copy signed by the inventor or his attorney in fact, and .attested by two witnesses, which will be filed in the Patent-Office ; and a copy of these drawings must be attached to the patent as a part of the specification. COMPOSITIONS. "When the invention or discovery is of a composition, the applicant, if required by the Commissioner, must furnish specimens of ingredients and of the composition, sufficient in quantity for the purpose of experiment. MODELS. In all cases which admit of representation by model, the applicant, if required by the Commissioner, must APPLYING FOR A PATENT. 273 furnish one of convenient size to exhibit advantageously the several parts of his invention or discovery. OATH OP INVENTION. , The applicant must make oath or affirmation that he believes himself to be the original and first inventor or discoverer of the improvement for which he solicits a patent ; that he does not know and does not believe that it was ever before known or used ; and must state of what country he is a citizen. This oath or affirmation may be made before any person in the United States authorized by law to administer oaths; or when the applicant resides in a foreign country, before any minister, chargd d'affaires, consul, or commercial agent, holding commis- sion under the government of the United States, or before any notary public of the foreign country in which the applicant may be. OFPICIAL EXAMINATION. On the filing of any such application and the payment of the duty required by law, the Commissioner causes an examination to be made of the alleged new invention or discovery ; and if on such examination it appears that the claimant is justly entitled to a patent under the law, and that it is sufficiently useful and important, the Commis- sioner issues a patent for it. i All applications must be completed within two years after the filing of the petition. 274 PATENTS, TEADE-MAEKS, AND COPYEIGHTS. PATENTED ARTICLES TO BE STAMPED. It is the duty of all patentees, and their assigns and legal represenfiitives, and of all persons making or vend- ing any patented article, to give sufficient notice to the public that it is patented, either by iixing thereon the word "patented," together with the day and year the patent was granted ; or, when from the character of the article, this cannot be done, by fixing to it or to the package wherein one or more of them is inclosed, a label containing the like notice ; and in any suit for infringe- ment, by the party failing so to mark, no damages' can be recovered by the plaintiff, except on proof that the defendant was duly notified of the infringement, and continued, after such notice, to make, use, or vend the article so patented. ASSIGNMENTS. Every patent or any interest in one is assignable in law, by an instrument in writing ; and the patentee or his assigns or legal representatives may, in like manner, grant and convey an exclusive right under his patent to the whole or any specified part of the United States. Any assignment, grant, or conveyance is void as against any subsequent purchaser or mortgagee for a valuable consideration, without notice, unless it is recorded in the Patent-Office within three months from the date thereof. ON OBTAINING PATENTS. 275 EEISSUBS. Whenever any patent is inoperative or invalid, by- reason of a defective or insufficient specification, or by reason of the patentee claiming as his own invention or discovery more than he had a right to claim as new, if the error has arisen by inadvertence, accident, or mistake, and without any fraudulent or deceptive intention, the Commissioner will, on the surrender of such patent and the payment of the duty required by law, cause a new patent for the same invention, and in accordance with the corrected specification, to be issued to the patentee, or, in the case of his death or assignment of the whole or any undivided part of the original patent, to his execu- tors, administrators, or assigns, for the unexpired part of the term of the original patent, the surrender of which shall take effect upon the issue of the amended patent. The Commissioner may cause several patents to be issued for distinct and separate parts of the thing pat- ented, upon demand of the applicant, and upon pay- ment of the required fee for a reissue for each of such reissues. The specifications and claim in every such case are subject to revision and restriction in the same manner as original applications are. The patent so re- issued, together with the corrected specification, have the effect and operation in law, on the trial of all actions for 276 PATENTS, TRADE-MARKS, AND COPYRIGHTS. causes thereafter arising, as though they had been origi- nally filed in the corrected fijrms ; but no new matter can be introduced into the specification, nor in case of a machine patent can the model or drawings be amended, except each by the other; but when there is neither model nor drawing, amendments may be made upon proof satisfactory to the Commissioner. DISCLAIMERS. Whenever, by inadvertence, accident, or mistake, the claim of invention in any patent is too broad, embracing more than that of which the patentee was the original or first inventor, some material or substantial part of the thing patented being truly and justly his own, the patentee, his heirs or assigns, whether of the whole or of a sectional interest, may make disclaimer of such parts of the thing patented as the disclaimant shall not choose to claim or to hold by virtue of the patent or as- signment, stating therein the extent of his interest in such patent ; which disclaimer shall be in writing, at- tested by one or more witnesses, and recorded in the Patent-Office. The official fee on filing a disclaimer is ten dollars. FORMS FOR APPLICATION FOR A PATENT. The following are the forms used in applying for letters-patent : ON OBTAINING PATENTS. 277 FORM OF PETITION. Buffalo, N. Y., April 10th, 1872. To the Hon. Commissioner of Patents, Washington, D. C. Your petitioner prays that letters-patent may be granted to him for the invention set forth in the annexed specification. Robert Mills. FORM of specification. The specification should be drawn up with great care so as to include the exact purpose of the invention. To ALL whom it may CONCERN : Be it known that I, Robert Mills, of the City of Buffalo, County of Erie, State of New York, have in- vented a new and improved [here specify the inventiori]. I claim as a new invention my as above set forth. Robert Mills. Witnesses (two). form of oath of invention. The oath of invention should follow the specification : State of New York, County of Erie, ss. : Robert Mills, the above-named petitioner, being duly sworn, deposes and says that he verily believes himself to be the original and first inventor of [here name the invention^, described in the foregoing specifications ; that he does not know and does not believe that the same was 24 278 PATENTS, TEADE-MAEKS, AND COPYEIGHTS. ever before known or used ; and that lie is a citizen of the United States, [or, a citizen of France, resident in the United States, etc.] Eobeet Mills. Sworn and subscribed before me this 10th day of April, 1872. Geoege Faiechild, Justice of the Peace. FOEM OP DEAWINGS. The drawings must be on thick, smooth drawing-paper, sufficiently stiff to support itself in the portfolios of the office. They must be neatly and artistically executed, with such detached sectional views as to clearly show what the invention is in construction and operation. Each part must be distinguished by the same number or letter whenever it appears in the several drawings. The name of the invention should be written at the top, the shortest side being considered as such. These drawings must be signed by the applicant or his attorney, and attested by two witnesses, and must be sent with the specification. The sheets must not be larger than ten inches by fifteen, that being the size of the patent. THE model. When an applicant files his application, he may submit to the Commissioner the question whether he shall deposit a model or specimen of his invention ; otherwise, a model will be required in every case, except for designs, where the nature of the invention admits of such illustra- ON OBTAINING PATENTS. 279 tion. Such model must clearly exhibit every feature of the niachine which forms the subject of a claim of invention. The model must be neatly and substantially made, of durable material. It should be made as small as possi- ble, but not in any case more than one foot in length, width, or height. If made of pine or other soft wood, it should be painted, stained, or varnished. Glue must not be used, but the parts should be so connected as to resist the action of heat or moisture. A working model is always desirable, in order to enable the office fully and readily to understand the precise operation of the machine. The name of the inventor, and of the assignee, (if assigned,) and also the title of the invention, must be affixed upon it in a per- manent manner. The above papers, etc., should be forwarded, prepaid, by express, "To the Hon. Commissioner of Patents, Washington, D. C." The documents required for a re-issue are a statement, petition, oath, specification, and drawings, to which the above forms can readily be adapted. EXTENSIONS. Power is vested in the Commissioner to extend any patent granted prior to March 2d, 1861, for seven years from the expiration of the original term ; but no patent granted since March 2d, 1861, can be extended. 280 PATENTS, TEADE-MAEKS, AND COPYRIGHTS. The applicant for an extension must file his petition and pay in the requisite fee not more than six months, nor less than ninety days, prior to the expiration of his patent. There is no power in the Commissioner to renew a patent after it has once expired. The applicant for an extension must furnish to the office a statement in writing, under oath, of the ascer- tained value of the invention, and of his receipts and expenditures on account thereof, both in this and foreign countries. This statement must be made particular and in detail, unless sufficient reason is set forth why such a statement cannot be furnished. It must be filed within thirty days after filing the petition. SELLING AND ASSIGNING PATENTS. The sale or assignment must be sent on to the Com- missioner for recording, within, three months from its date. The receipt of assignments is not generally acknow- ledged by the office. They will be recorded in their turn within a few days after their reception, and then transmitted to the persons entitled to them. POEM OP AN ASSIGNMENT OP ENTIEB INTEREST. In consideration of dollars to me paid by of , I do hereby sell and assign to the gaiij ^ his representatives and assigns, all my right, titlcj and interest in and ^to the letters-patent of ASSIGNING PATENTS. 281 the United States, [here give the number of the patent, what it is for, and tJie date it was granted,'^ the same to be held and enjoyed by the said to the full end of the term for which said letters are granted, as fully and entirely as the same would have been held and enjoyed by me if this assignment and sale had not been made. Witness my hand and seal this day of , 1872. . rsEAL.I L stanvp.J FORM OP AN ASSIGNMENT OP A PAET INTEREST AND IN EXTENSION. In consideration of dollars to me paid by of , I do hereby sell and assign to the said one undivided fourth part of all my right, title, and interest in and to the letters-patent of the United States, No. , for an improvement in , granted to me — ; the same to be held and enjoyed by, the said , to the full end of the term for which said letters-patent are granted, and for the term of any extension thereof, as fully and entirely as the same would have been held and enjoyed by me if this assignment and sale had not been made. Witness my hand this day of , 18 — . r 6 c(. -| J R Lstamp.J ' V EXCLirSIVE TEERITORIAL GRAJSTT BY AN ASSIGNEE. In consideration of one thousand dollars to me paid by D. W., of , I do hereby grant and convey to the said D. W. the exclusive right to make, use, and vend within the State of , and the counties of 24* 282 PATENTS, TEADE-MAEKS, AND COPYEIGHTS. in the State of , and in no other place or places, the improvement in for -^vhich letters-patent of the United States, dated , were granted to Robert Mills, and by said Mills assigned to me [dafe of assignment] by an assignment duly recorded in liber — , page — , of the records of the Patent-Office; the same to be held and enjoyed by the said D. W. as fully and entirely as the same would have been held and enjoyed by me if this grant had not been made. Witness my hand this — — day of , 1872. Utamp] AbEAHAM MoOEE. LICENCE — SHOP EIGHT. In consideration of fifty dollars to me paid by the firm of Simpson, Jenks & Co., of Huntsville, Ala., I do hereby license and empower the said Simpson, Jenks & Co. to manufacture, at a single foundry and machine shop in said Huntsville, and in no other place or places, the improvement in cotton-seed planters for which letters- patent of the United States, No. 71,846, were granted to me November 13th, 1868, and to sell the machines so manufactured throughout the United States, to the full end of the term for which said letters-patent are granted. Witness my hand this 22d day of April, 1869. Islip] Joel Noeceoss. • fees of the PATENT-OFFICE. The amount of the fee should be forwarded together with the documents, either in cash or by check (certified), or draft, drawn payable to the Commissioner of Patents, PATENT FEES. 283 or order. The following are oiBcial fees by Act of Con- gress : On filing every application for a design, for three years and six months $10 00 On filing every application for a design, for seven years. ... 15 00 On filing every application for a design, for fourteen years 30 00 On filing every caveat 10 00 On filing every application for a patent 15 00 On issuing each original patent i 20 00 On filing a disclaimer 10 00 On filing every application for a re-issue 30 00 On filing every application for a division of a re-issue 30 00 On filing every application for an extension 50 00 On the grant of every extension 50 00 On filing the first appeal from a primary examiner to ex- aminers-in-chief 10 00 On filing an appeal to the commmissioner from examiners- in-chief 20 00 On depositing a trade-mark for registration 25 00 For every copy of a patent or other instrument, for every 100 words 10 For every certified copy of drawing, the cost of having it made , For copies of papers not certified, the cost of having them made For recording every assignment of 300 words or under... 1 00 For recording every assignment, if over 300 and not over 1000 words 2 00 For recording every assignment, if over 1000 words 3 00 DESIGN-PATENTS. A patent for a design may be granted to any person, whether citizen or alien, who, by his own industry, genius, efforts, and expense, has invented or produced any new and original design for a manufacture, bust, statue, alto-relievo, or bas-relief; any new and original 284 PATENTS, TEADE-MARKS, AND COPYRIGHTS. design for the printing of woollen, silk, cotton, or other fabrics; any new and original impression, ornament, pattern, print, or picture, to be printed, painted, cast, or otherwise placed on or worked into any article of manu- facture ; or any new, useful, and original shape or con- figuration of any article of manufacture, the same not having been known or used by others before his invention or production thereof, or patented or described in any printed publication, upon payment of the duty required by law, and other due proceedings had the same as in cases of inventions or discoveries. Patents for designs are granted for the term of three and one-half years, or for the term of seven years, or for the term of fourteen years, as the said applicant may elect in his application. The petition, oath, specification, assignments, and other proceedings in the case of applications for letters-patent for a design are the same as for other patents. The applicant must furnish drawings of the design or photographs thereof, in which latter case the Patent- Ofiice requires that the negative shall also be furnished. INSTETJCTIONS CONCERNING TRADE-MARKS. Any person, firm, or corporation can secure the exclu- sive use of a trade-mark by having it protected by the laws of the Patent-Ofiice. This protection is obtained by complying with the following requirements : First. By causing to be recorded in the Patent-Office TEADE-MAEKS. 285 SPECIMENS OF ENGLISH TKADE-MAEKS. the names of the jjartics and their residences and place of business, who desire the protection of the trade-mark. Second. The class of merchandise and the particular description of goods comprised in such class, by which the trade-mark has been or is intended to be approiDriated. Third. A description of the trade-mark itself, with fac- 286. PATENTS, TEADE-MAEKS, AND COPYEIGHTS. similes thereof, and the mode in which it has been or is intended to be applied or used. Fourth. The length of time, if any, during which the trade-mark has been used. Fifth. The payment of a fee of twenty-five dollars, in the same manner and for the same purpose as the fee re- quired for patents. Sixth. The compliance with such regulations as may be prescribed by the Commissioner of Patents. Seventh. The filing of a declaration, under the oath of the person, or of some member of the firm, or officer of the corporation, to the effect that the pariy claiming pro- tection for the trade-mark has a right to the use of the same, and that no other person, firm, or corporation has the right to such use, either in the identical form, or hav- ing such near resemblance thereto as might be calculated to deceive, and that the description and fac-similes pre- sented for record are true copies of the trade-mark sought to be protected. Trade-marks remain in force for thirty years, and may be renewed for thirty years more, except in cases where such trade-mark is claimed for, and applied to, articles not manufactured in this country, and in which it receives protection under the laws of any foreign country for a shorter period, in which case it shall cease to have force in this country at the same time that it becomes of no effect elsewhere. No proposed trade-mark will be received or recorded, TEADE-MAEKS. 287 ■which is not and cannot become a lawful trade-mark, or which is merely the name of a person, firm, or corpora- tion only, unaccompanied by a mark sufficient to distin- guish it from the same name when used by other persons, or which is identical with a trade-mark appropriate to the' same class of merchandise and belonging to a different owner, and already registered or received for registration, or which so nearly resembles such last-mentioned trade- mark as to be likely to deceive the public; but any lawful trade-mark already lawfully in use may be recorded. The right to the use of any trade-mairk is assignable by any instrument of writing, and such assignment must be recorded in the Patent-Office within sixty, days after its execution. Trade-marks are registered at the Patent-Office in the exact order of their reception, the exact time of receipt being noted and recorded. Certified copies of any trade-mark may always be obtained. The object of a trade-mark is to distinguish the goods of one manufacturer or merchant from those of another in the market. The only benefit the proprietor of a trade-mark can hope to derive from it, is that such mark may point out the goods, upon which it is found, as coming from him, and thereby bring customers back to him when desiring to make additional purchases. This being the only object a dealer can have in adopting a trade-mark, he may' generally be trusted to see that it be 288 PATENTS, TEADE-MAEKS, AND COPYEIGHTS. known where the goods come from, on which the trade- mark is placed. The courts have held with very great unanimity that the person's name or place are neither absolutely essential to the validity of a trade-mark. If it possesses the evi- dence upon its face that it is put forth or given out as a distinguishing mark of the goods to which it is attached, that is, distinguishing as to origin and not as to kind or quality, it may have all the requisites of a valid trade- mark without naming the person or place whence it came. The very fact that it bears evidence of being the manu- facturer's or dealer's private mark, by means of which his goods are distinguished in the market, is sufficient Lq- dication of origin to warn against copying by competing dealers, and this answers the public demand. At common law, the trade-mark to become legal and to vest an exclusive right in the persons adopting it, must have been so long in use as to be known and recognized in the market. That is, a person could not adopt a trade- mark to-day and successfully sue for infringement of it to-morrow. Registry is notice to the world, and supplies the place of long use at common law. DIEBCTIONS FOE SECTTEING COPYEIGHTS. 1. A printed copy of the title of the book, map, chart, dramatic or musical composition, engraving, cut, print, photograph, chromo, or a description of any de- COPYEIGHTS. 289 sign for a work of the fine arts for which copyright is desired, must be sent by mail, addressed LIBEARIAN OF CONGEESS. COPTKIQHT MATTER. Washington, D. C. This must be done before publication of the book or other article. 2. A fee of 50 cents, for recording the title of each book or other sfrticle, must be inclosed with the title, and 50 cents in addition (or $1 in all) for each certificate of copyright imder seal of the Librarian of Congress, which will be transmitted by return mail. 3. Within ten days after publication of each book or other article, two complete copies of the best edition is- sued must be mailed to perfect the copyright, with the address LIBRARIAN OF CONGRESS, COPYEIOHT MATTER. Washington, D. C. If the above direction is complied with, both. books and titles will come free of postage, and postmasters will give receipts for the same if requested. Without the deposit of copies above required, the copyright is void, and a penalty of $25 is incurred. No copy is required to be deposited elsewhere. 4. Copyrights recorded at a da,te prior to July 8, 1870, in any district clerk's office, do not require re-entry at Washington. But one copy of each book or other ar- 25 290 PATENTS, TEADE-MAEKS, AND COPYEIGHTS. tide published since the Act of March 4, 1865, is re- quired to be deposited iu the Library of Congress, if not already done. Without such deposit the copyright is void. 5. No copyright hereafter issued is valid unless notice is given by inserting in every copy published, on the title page or the page following, if it be a book ; or'if a map, chart, musical composition, print, cut, engraving, photograph, painting, drawing, chromo, statue, statuary, or model or design intended to be perfected and com- pleted as a work of the fine arts, by inscribing upon some portion of the face or front, or on the face of the substance on which it is mounted, the following words, viz.: Entered aecording to act of Congress, in the yeav , by , in the office of the Librarian of Con- gress, at Washin^on. The law imposes a penalty of |100 upon any person who has not obtained copyright, who shall insert the notice "entered accmrding to act of Congress," etc., or words of the same import, in or upon any book or other article. 6. Any author may reserve the right to translate or to dramatize his own work. In this case, notice should be given by printing the words. Right of translation reserved, or All rights reserved, below the notice of copyright entry, and notifying the Librarian of Congress of such reservation, to be entered upon the record. 7. Each copyright secures the exclusive right of pub- COPYRIGHTS. 291 lishing the book or article copyrighted for the term of twenty-eight years. At the end of that time, the author or designer may secure a renewal for the further term of fourteen years, making forty-two years in all. Appli- cations for renewal muSt be accompanied by explicit statement of ownership, in the case of the author, or of relationship, in the case of his heirs, and must state definitely the date and place of entry of the original copyright. 8. The time within which any work copyrighted may be issued from the press is not limited by any law or regulation, but depends upon the discretion of the pro- prietor. A copyright may be secured for a projected work, as well as for a completed one. 9. Any copyright is assignable in law by any instru- ment of writing ; but such assignment must be recorded in the oifice of the Librarian of Congress within sixty days from its date. The fee for this record is fifteen cents for every 100 words, and ten cents for every 100 words for a copy of the record of assignment. 10. In the case of books published in more than one volume, if issued or sold separately, or of periodicals published in numbers, or of engravings, photographs, or other articles published with variations, a copyright is to ' be taken out for each volume of a book, or number of a periodical, or variety, as to size or inscription, of any other article. 11. To secure a copyright for a painting, statue, or 292 PATENTS, TEADE-MAEKa, AND COPYRIGHTS. model or design intended to be perfected as a work of the fine arts, so as to prevent infringement by copying, engraving, or vending such design, a definite description must accompany the application for copyright, and a photograph of the same, at least as large as "cabinet size," should be mailed to the Librarian of Congress within ten days from the compiletion of the work. 12. Every applicant for a copyright must state dis- tinctly in whose name the copyright is to be entered, and whether the right is claimed as author, designer or proprietor. No affidavit or formal application is required. There is no international copyright between this country and England. American authors occasionally attempt to secure control of their works by paying a visit to Canada.^ A copyright obtained there is valid over the whole British Empire. But it requires caution. A portion of the work must be toritten on British soil ; the author at the time of application must be a resident under the British flag ; and the book must be placed on sale precisely at the same time in both countries, other- wise the copyright in both is invalidated. Indeed, so many difficulties have been thrown in the way, that pub- lishers who have examined th^ matter most carefiilly, have concluded the risk is too great to attempt the measure. CHAPTER IV. THE SHORTEST METHODS IN AEITHMETIC. Value of arithmetical knowledge — Arithmetical signs — Short methods of addition — Short methods of multiplication — O'Gorman's rule — Special rules — Long division shortened — Common fractions — Handy rule for -mixed numbers — The value of analysis shown — Decimals — Short method of multiplying decimals ; of dividing decimals — The rule of three — Cancelling in calculations — Interest — Time for which interest is calculated — The most rapid rule for computing interest for days ; months ; at six per cent. ; at any per cent. — Time table — Compound interest-7-Off-hand rule for telling when a sum will double at compound interest — ^Discount ; bank discount ; mercliants' discount ; serious mistakes sometimes made in discount — Stocks and bonds— Profit and loss — Partial payments; rule laid down by the United States Supreme Court — Exchange on England ; no days of grace ; Edelman's handy rules for converting currency into sterling, and sterling into currency — Value of foreign moneys in dollars and cents. • ^HE rules of arithmetic which we are taught at school, and which we often continue to practise during later life, are chosen for children by mathematicians on account of their simplicity. Whereas those of most value in business are such as are distinguished by their brevity. It is singular that the latter are so little known and use'd. They are readily acquired, not complex, and save an astonishing amount 25* 293 ^ni SHORTEST METHODS IX ARITHMETIC. THE ACCOUNTANT. of time. Althougli they are familiar to every one who has made mathematics his especial study, they have not been presented in this country in as compact and con- venient form for business applications as is desu-able. VALUE OF ARITHMETICAL KNOWLEDGE. It is absolutely indispensable for the successful busi- ness man to be " quick at figures." He need not be a profound mathematician, but he mud be cxjiert at rapidly and correctly calculating the monetary result of a pro- posed transaction; he must be able to add promptly long columns of figures ; and if he is thoroughly familiar with the shortest methods of making calculations, ho will be ready to decide earlier on his undertakings. His SHORT-HAND METHODS. 295 successes and his failures are measured by the figures in his Ledger, and he should aim to be an expert in all the calculations which come within his line of business. I propose therefore, in this portion of my work, to group together some of the best " short-hand methods," applicable to the usual problems of business life ; to add rules for mensuration, and for land measuring, road grad- ing, etc., without instruments ; to give the more useful tables of weights, measures, and moneys of account ; and to annex solutions of the special problems of diffei'ent mechanics' work. I shall take it for granted that the reader is acquainted with the ordinary rules and simpler principles of arithmetic, addition, subtraction, multipli- cation, division, etc. ARITHMETICAL SIGNS, These are of use in stating a problem in a short and perspicuous manner. Those most necessary are the fol- lowing : -|- Sign of addition. — Sign of subtraction. X Sign of multiplication. -T- Sign of division. 6 Sign of division ; it signifies the number above the 3 line is to be divided by the one below. = Sign of equality. 3 : 6 : : 4 : 8 Signs of proportion ; to be read, " As 3 is to 6, so is 4 to 8." 296 SHORTEST METllODS IN ARITHMETIC. V'S Sign of the square root ; to be read, " The square root of 9." 8" Sign of the square ; to be read, "The square of 8." SHORT METHODS OF ADDITION. The constantly recurring necessity of adding up long columns of figures, and the tediousness of correcting errors, render any useful suggestions on the method of doing it very acceptable. Several can be made. The eye should be trained to take in at a glance the sum of two adjacent figures in the same column. After a little practice this can be done so readily as to reduce the labor of adding: about one-half ^b Example : 268 For insSSce, in the above example, do not say men- tally, 7 and 1 are 8, and 4 are 12, and 6 are 18 ; but 8 and 10, 18. Although at first, this may be somewhat difficult, it is surprising how soon it becomes quite as easy as adding single numbers. 5s are always easy to add ; so ate 9s, when it is borne in mind that adding 9 to a sum, places it in the next higher ten with the unit 1 less. Thus 19 + 9 = 28 ; 29 + 9 = 38 ; 87 + 9 = 96. HOW TO ADD QUICKLY, 297 If the same figure occurs several times following one the other, or in close proximity, it is often more expedi- tious to calculate mentally their product, than to add them together. In the example below, in the column of tens, the figure 7 occurs four times, separated only by the figure 2. It is shorter to compute mentally 4x7 + 2 = 30, than 7 + 7 + 7 + 7 + 2 = 30. This can be conjoined with the former method, as in the column of tens in the example above, a practised eye would add it thus : 8 X 3 -|- 1 = 25, adding the intermediate 5 and 3, and adding to the product the excess of 1 on the 9. In running up long columns, one is apt to lose count, or be interrupted, or make an error which is not speedily corrected if the whole work must be commenced anew. Several checks have been devised, the most practically useful of which is the following, which so far as I am aware has not heretofore been published : Add the column as usual from bottom 1 4 to top, and whenever the numbers make „ ^ ^ 6\ 4 even tens, 10, 20, 30, 40, 50, etc., make a 9 2' note in pencil, of 1, 2, 3, 4, 5, etc., as the 7v 6 7 1 case may be, and commence with ,the « i next number as a unit. If the column 7- \2 ' 7 4- finishes with an even ten, write down . ^ ' 4- an 0. The sum of the numbers in the 3 2 margin will be what you carry to the 2 2 next column. The marginal nlimbers ~^T T serve for a memorandum in case of inter- 298 SHORTEST METHODS IN AEITHMETIC. ruption, and also as an easy check to go over the work in short stages if an error is detected. On an average an even ten will occur once in ten figures, which is often enough to employ the check. SHOET METHODS OF MULTIPLICATION. The usual method of multipling numbers composed of two figures is this : 63 24 252 126 1512 It can be done quite as easily, and in a much neater manner, using but one line instead of three, for the pro- duct. For this purpose Mr. O'Gorman, in his work on " In- tuitive Calculations," gives the following practical rule : " Set down the smaller factor under the larger, units under units, tens under tens. Begin with the unit figure of the multiplier, multiply by it, first the units of the multiplicand, setting the units of the product, and reser- ving the tens to be added to the next product ; now mul- tiply the tens of the multiplicand by the unit figure of the multiplier, and the units of the multiplicand by tens figure of the multiplier ; add these tv/o products together, SHOET MULTIPLICATION. 299 setting down the units of their sum, and reserving the tens to be added to the next product ; now multiply the tens of the multiplicand by the tens figure of the multi- plier, and set down the whole amount. This will be the complete product." 1 g Example : -S ■ s 6 3 multiplicand. 2 4 multiplier. 1512 product. The steps are : 4 X 3 = 12. Set down the 2, and carry the 1. 4x6 = 24,+ 2x3 = 6-|-l = 31. Set down the 1, and carry the 3. 2 X 6 = 12, + 3 = 15, which place at the head of the line. The same method can be applied when thefmultipli- cand has three or more, instead of two figures. When the multiplier has 1 in the place of tens, that is when it is any number between 11 and 20, it will be seen that the process is simply to multiply by the unit of the multiplier, and add to the product once the figure on the right of the figure multiplied ; and if the multiplier is between 20 and 30, then add to the product twice the figure on the right of the figure multiplied ; if between 30 and 40, then add three times the figure to the right, etc. 300 SHOETBST METHODS IN ABITHMETIC. Example. Multiply 1728 by 14. 1728 14 24192 The process is : 4 X 8 = 32. Set down 2, and carry 3. 4x2 + 3 (carried) + (1 x 8) = 19 ; carry 1. 4x7 + 1 (carried) + (1 x 2) = 31 ; carry 3. 4x1+3 (carried) + (1 x 7) = 14 ; carry 1. 1x1 + 1 (carried) = 2. The reader is assured that a very moderate practice ■will render this method so easy to him, that as it is also neater and shorter than the ordinary rule, he will adopt it altogether. Multiplication and division of high numbers are greatly facilitated by the use of tables of squares and logarithms, and everyone having much of this labor to perform, should acquaint themselves with their use. , The rules given by the author above quoted, and others, for multiplying with particular numbers, etc., are generally more curious than they are useful. As this work aims to be strictly practical, we omit most of them. The following will occasionally shorten a calculation. To multiply by 25. Add two ciphers and divide by 4. Example. Multiply 78 by 25. 4) 7800 1950. Ans. SHORT MULTIPLICATION. 301 To multiply by 12 J. Add two ciphers, and divide by 8. Example. Multiply 86 by 12J. 8 )8600 1075. Ans. When 250 and 125 are multipliers, add three ciphers, and divide by 4 and 8 respectively. To multiply by d. Add one cipher, and divide by 2, Example. Multiply 9276 by 5. 2) 92760 46380. Ans. To multiply a number consisting of two figures by 11. Write the sum of the two figures between them. Example. Multiply 62 by 11. Ans. 682. When the sum of the two figures is 10 or over, carry one to the left hand figure. Example. Multiply 75 by 11. Ans. 825. To multiply by any number between 110 and 120. Multiply by the figure in the place of units, and to the product add the sum of the two figures next on the right hand ; and to the last two figures add separately what you carry. 302 SHOBTEST METHODS IN ARITHMETIC. Example. Multiply 1242 by 116. 1242 116 144072. Arm. Process. 6 X 2 = 12 (1 to carry). 6 X 4 + (1 + 2) = 27 (2 to carry). 6 X 2 + (2 + 4 + 2) = 20 (2 to carry). 6 X 1 + (2 + 2 + 4) = 14 (1 to carry). 1 + 1 +2 = 4. 1x1 = 1. When the multiplier can be resolved into two factors, it is often shorter to multiply by each factor than by the whole number. Example. Multiply 7698 by 32. 4 X 8 = 32. 7698 8 61584 4 246336. Ans. LONG DIVISION SHORTENED. " Many attempts have been made to simplify the tedious process of long division, but except the use of logarithms, none is so satisfactory as the following, which is well worth learning and practising. State the problem in the ruanner represented below. LONG DIVISION MADE SHORT. 303 Ascertain how often the divisor is contained in the iirst one or two figures of the dividend, write this in the quotient line ; multiply mentally the divisor and subtract it from the one or two figures referred to. Enter the remainder between the first two perpendicular lines, first units, and below them tens. Divide this line reading from below upwards by the divisor, and proceed as before. Divisor, 14)22 Dividend. Quotient, 16 19 6 7|yL A few hours' practice with this rule will render it quite easy, and the lines can then be dispensed with. Example. Divide 18726 by 16. 16)18 7 2 6 2 10 1 1170t% , By the ordinary method this sum requires 27 figures ; by this method only 18 figures. Long division can frequently be shortened by the use of the factors of the quotient, in a similar manner as, multiplication. 1. Example. Divide 7685 by 35. 5x7 = 35. 5 )7685 7)1537, 2194 Quotient. Ans. 304 SHORTEST METHODS IN AEITHMETIC. 2. Example. Divide 58149 by 49. By fiictors :— 7 x 7 = 49. 7)58149 7 )8307 1186f Ans. By long division shortened : 49) 5 8 1 4 9 922 43 118 6 f|. Ans. It will be seen that this brief method of long division is as short as that by factors, and has the advantage over the latter, that it can be applied to in all cases. The slightly increased mental effort it requires is excellent training for the faculties, and soon is performed without exertion. There are numbers which can be reduced to equivalent fractions, having round numbers for a numerator, as explained in the section on multiplication. To divide by these numbers it is, of course, more convenient to mul- tiply by the denominator and divide by the numerator. Example. Divide 48376 by 125 : 125 = 1000. ~8^ 48375 X 8 == 387000. Point off three figures (which is dividing by 1000) and we have the result = 387. ON FEACTIOSrS. 305 Divide 79833J by 1661 : 166§ = 1000 6 79833^x6 = 479000 Point off three figures for the division by 1000, and we^have 479. ' COMMON FEACTIONS. A thorough acquaintance with the arithmetical pro- perties of fractions is no small assistance in practical cal- culations. In most instances, on? of the amounts to be taken cognizance of is a sum of money, which can usually be expressed in decimals, that is, in cents and mills, and .the answer obtained more readily by so doing. Or else, by adopting the process of Analysis (which will presently be explained) the use of common fractions can be avoided. The following rules are those which are of most im- portance in common fractions. . To reduce a fraction to its simplest form: Divide both terms by their greatest common divisor or its factors. Example. The simplest form of || is obtained by di- viding both terms by 6 = f. To add fractions: Reduce the jfractions to like fractions or a common denominator, add their numerators, and under the sum write the common denominator. 26* 306 SHORTEST METHODS IN AEITHMETIC. Example. Add | to J. 4 12- T — 12- 12 -f- TJ — ^2 — ■'■12- To subtract fractions: Reduce the fractions to like fractions or a common de- nominator, subtract the numerators, and under the re- mainder write the common denominator. Example. Subtract ^ from f . 9 4 12 T2 — -«- — -^- - -V. Ans. To multiply fractions: Multiply the numerators together for a new numera- tor, and the denominators together for a new denomi- nator. Example. Multiply f by J. ^ X "J ^^ X2' -^ns. To divide fractions : Multiply the dividend by the divisor inverted. Example. Divide f by }. I -=- f = f = 2i. Am. To multiply mixed numbers: , This requires five processes : , First ; multiply the whole numbers together. Second ; multiply the fractions together. Third; multiply the upper whole number by the lower fraction. RULE FOR MIXED NXTMBEES. 307 Fourth; multiply the lower whole number by the upper fraction. Fifth ; add these products together. Example. Multiply 3^ by 6J. 6i 3i 3x6 = i X 1 = 6x1 = 3 X 1 = 18 i Am. 2l\ In most calculations in business, where absolute accu- racy is not essential, we can abbreviate these multiplica- tions by omitting all fractions in the products, and tak- ing the nearest units ; or if one-half occurs twice, by counting one. The above example would then read thus : ^ 31 18 1 2 21 The answer would be only ^ wrong. ANALTSIS. Many complicated calculations can be much shortened by the beautiful and extremely simple process of Analysis, 308 SHORTEST METHODS IN AEITHMETIC. This is a method of solving questions 'without formal rules. Rules are derived from analysis. The process consists generally in reasoning from a given number to 1 of the same kind, and from 1 to the required number. Example 1. If 7 pounds of sugar cost $1.12, how much will 42 pounds cost ? Process. — If 7 lbs. of sugar cost $1.12, 1 lb. will cost 4 of $1.12, or 16 cts., and 42 lbs. will cost 42 times 16 cts., or $6.72. Ans. Or since 42 lbs. is 6 times 7 lbs., 42 lbs. will cost 6 times $1.12 (the price of 7 lbs.), and $1.12 x 6 = $6.72. Am. Example 2. If f of a yard of cloth cost $4|-, how much will I of a yard cost ? Process.— If f yard cost ($4J) $|, i yard will cost $f, and I, or 1 yard, will cost $6. Then \ yard will cost$f, and i will cost V, or $4f. Am. In examples like the last, it is better to express each multiplication by writing the multiplier as a factor in the numerator of a fraction, and each division by writing the divisor as a factor in the denominator, then cancel, etc., thus : 2 Example 3. Barter. — How many loads of wood at $4J will pay for 3 barrels of flour at $8f ? THE USE OF DECIMALS. 309 Process. — If 1 bbl. of flour costs $8|, 3 bbls. will coat I, and if 141- will pay for 1 load of wood, |26i will pay for as many loads as $4^ is contained times in f 26 J, which is 6. Atis., 6 loads. DECIMALS. The use of decimal fractions in calculations relating to business is often very convenient, and it abbreviates labor when they are worked by the shortest methods. Decimal fractions, I need hardly explain, are such as ) express one or more of 10 equal parts of anything, or of some multiple of 10 by itself; that is, they are fractions whose denominator is always 1 followed by as many ciphers as there are figures in the fraction. Thus ; .198 is a decimal which represents iW^, etc. . The introduction of the " Cental " system into business, which will be explained on a later page (see Index), greatly increases the opportunity to use decimals. To reduce a common fraction to a decimal, the nume- rator with one or more ciphers annexed, is divided by the denominator. Thus f reduced to a decimal is, 8)5000 .625 When there is a whole number before the fraction, it is separated by the decimal point, as 7.625 = 7f . I will presume that the reader is acquainted with the ordinary rules for the multiplication and long division 310 SHORTEST METHODS IN ARITHMETIC. of decimals, as the process is that of ordiaary figures, care being exercised to place the decimal point correctly, and ■will proceed to. give him a SHORT METHOD FOR MTrLTrPLYIWG DECIMALS. In practical calculations we may as a rule disregard all decimals beyond the one-thousandth part, which, in our cpinage, represents the mill, or tenth part of the cent. But in the examples here given we shall include the ten-thousandth part. The rule for multiplying by the short method is as follows : Keverse the order of all the figures, the whole number as well as the decimal, in the multipli«r ; multiply by each figure of the inverted multiplier, beginning with the figure of the multiplicand immediately above it, omit- ting all figures to the right, but allowing for what would have been carried if the decimal had been carried out one place &,rther — ^place the first figure of each partial product in the same vertical column, and the others in vertical columns to the left ;. the sum of these columns will be the required product. Thus, in the following example, we are required to find the product correct to four decimal places, therefore, we set the units' figure, 7, under the fourth decimal figure, and the tens' figure, 4, to the right, and the decimal figures, 6453, to the left in reversed order ; then we multiply the whole line by 4, and then we multiply by 7, omitting the 2 which stands to the right, but allowing 1 MTTLTIPLYING DECIMALS. 311 for what would have been carried, that is, we say 7 times 4 is 28, and 1 is 29, and we write the 9 under the 8, the first figure of the first partial product. Let it be required to find the product of 6.35642 and 47.6453, true to four places of decimals. Extended operation. Contracted operation. 6.35642 6.35642 47.6453 3546.74 19 06926 2542568 317 8210 444949 2542 568 38138 38138 52 2542 444949 4 317 2542568 19 2 302.8535 37826 ^ 302.8535 carried. SHORT METHOD FOR DIVIDING- DECIMALS. An equally brief plan for the division of decimals is given in the following rule : Arrange the fractions as in the ordinary mode ; find the first figure of the quotient and the first remainder ; then, instead of annexing a periodic figure or a cipher, cut off the right hand figure of the divisor, and use the remaining figures to find the next figure of the quotient, and so on. It is usual to mark the figures as they are successively cut off by placing a point below each. In multiplying 312 SHOETEST METHODS IN ARITHMETIC. by each figure of the quotient, allowance must be made for what would have been carried from the figure of the divisor last cut off, had it been used in the division. The vertical line drawn through the ordinary form shows how closely the two modes correspond. .14736).23748 14736 9012 8841 170 147 23 14 (1.611 40 36 040 736 304 14736)23748(1.611 .... 14736 9012 8842 170 147 23 15 Here it is required to divide .23748 by .14736. Since both divisor and dividend contain the same number of decimal places, no alteration is needed, and so we can at once reject the decimal point, and divide as in whole numbers. THE EULB OF THEEE, OE SIMPLE PEOPOETION. What the ancient school-books used to call the " Rule of Three," is of the greatest service in many business calculations, and should be thoroughly understood, not only in its principle, but in reference to the shortest tnjethod of working it. RULE OF THREE. 313 Proportion is the equality of ratios. Ratio is the relation which one quantity bears to another of the same kind with reference to magnitude, or the number of times that the less is contained in the greater. Thus, the ratio 7 to 21 is 3, because 7 is contained 3 times in 21, or 21 is 3 times 7. The same result is obtained if we divide 7 by 21, for we then find /i = ^, which means that 7 is ^ of 21, and this expresses the very same relation as before ; for, to say that 7 is J of 21 is precisely the same as to say that 21 is 3 times 7. The ratio of 9 to 27 is 3, but we have seen that the ratio of 7 to 21 is alSo 3, therefore the ratios of 7 to 21 and of 9 to 27 are the same, or 7 -f- 21 = 9 -i- 27, and these quantities are, therefore, called proportionals. In any proportion, as 7 : 21 : : 9 : 27, the product of the middle numbers, 21 and 9, equals the product of the extremes, 7 and 27. Hence we deduce the rule, that when the fourth proportional is unknown — Divide the product of the second and third terms by the first, and the quotient is the fourth term. 21 X 9 21 9 7)189 27. Ans. 37 314 SHOETEST METHODS IN ARITHMETIC. The principle of simple proportion is so familiar that it is perhaps superfluous to dwell on it longer ; but I wish to urge the advantage of shortening all such calculations, when possible (and in very many cases it is possible) by the process of cancelling. CANCELLING IN CALCULATIONS. Whenever a number is to be used as the divisor of the product of two other numbers, it should first be observed ■whether it will not divide, without remainder, one of these numbers. If so, no further division is necessary, and the multiplication is materially shortened. Ciphers can always be left off when on both divisor and one of the numbers, and when a quotient is 1 it may be disre- garded. The first step is to state the problem in its most man- ageable form. This is by means of the arithmetical signs previously given. The statement 21 X 9 reads : the product of 21 multiplied by 9 is to be divided by 7. Stating the problem as above, we see at a glance if the divisor is contained evenly in either of the multipliers. If it is not, there may be a common divisor for the divisor itself and one of the multipliers, the use of which BENEFIT OP CANCELLING. 315 will much reduce the labor of computation. The fol- lowing examples will illustrate the value of the process of cancelling : Examples. 1. Find the fourth term in 12 : 36 : : 22. Statement : 3 ;3:0x22 By cancelling : 3 X 22 = 66. Ans. 2. Find the fourth term in 60 : 140 : : 242. 140 X 242 Statement : 60 Cancelling by the "» 7 x 242 common divisor 20 := / 3 242 7 3 )1694 564|. Ans. 3. Find the fourth term in 144 : 432 : : 1744, 3 Statement : — "" By cancelling: 1744 X 3 = 5232. Am. The reader will presently see the value of this plan in business computations. 316 SHORTEST METHODS IN ARITHMETia IKTEEEST. A rapid and accurate plan of calculating interest is one of the most indispensable items of business knowledge. The one which I shall present is in some respects novel, arid is without exception the easiest, quickest, and most correct one in existence, adapted to all sums, all periods of times, and all rates per cent. The sum on which interest is paid is called the prin- cipal ; the sum paid on each $100 is the raie per cent. ; the sum of the principal and interest is the amount; a higher rate per cent, than is allowed by law is called umiry. The legal rate of interest varies from 6 to 10 per cent, in the different States. ( See Index under Interest.) TIME FOR WHICH INTEREST IS CALCULATED. There is, unfortunately, no uniformity in calculating the time for which interest is charged. The U. S. Gov- ernment in the 7-30 bonds estimated 365 days to the year ; in the 5-20 bonds, 364 days to the year ; while the current rule among bankers and merchants is to estimate 360 days to a year, and 30 days to a month, therefore as one-twelfth of a year, and a day one-thirtieth of a. month. The common expressions in promissory notes "one month," "two months," "three months after date I promise to pay," etc., some banks construe a? equivalent COMPUTING INTEREST. 317 to 30, 60, and 90 days ; but generally each day in the calendar month is counted, as this is to the advantage of the party discounting. It appears also to be just. In ordinary problems, however, whether in the books or in business, 6 months would be estimated as 6 times 30 days ; that is, to reduce months to days multiply by 30. TO COMPUTE INTEREST AT 6 PEE CENT, In the majority of States, 6 per cent, is the legal and usual rate of interest, and nine-tenths of the problems of computing interest are at this rate. Commercial writers offer many short modes, more or less accurate, of comput- ing interest for certain sums and certain times, but the following rule is the shortest of all, applicable to all cases, and invariably correct to the tenth part of a cent. EULE. I. When the time is days only. Multiply the principal by the number of days, and divide by 6. This gives the interest in mills. II. When the time is months and days. Reduce the months to days and proceed as before. III. When the time is years, months and days. Compute the interest for the months and days, and add it to the interest for the years. In practice there is rarely more than one whole year's interest to calculate, and it is better to do it separately, than to complicate the problem. The interest for one 27* 318 SHORTEST METHODS IN ARITHMETIC. » year is found by multiplying the principal by the rate per cent., which gives the interest in cents. Multiply this by the number of years. To appreciate the full beauty of the above rule, it should be performed whenever possible by cancelling (see previous section). Examples. 1. "What is the interest of ^145.00 for 36 days ? 6 11^4^ = 870 ndlls. Am. 87 cents. 2. "What is the interest of |234.00 for 3 months and 16 days (=106 days)? 39 HM X 106 = 4134 mills. Am. $4.13iV. 3. What is the interest on $198.00 for 1 year, 5 months, and 23 days ? For one year, 198 X 6 = $11.88. 33 5 months and 23 days = 173 days. ^'"^ ^ ^'^^ = 5709 mUls, or $5.70tV Then $11.88 + $5.70x't = Ans. $17.58A. A little practice with this ready and correct rule will lead to its adoption by nearly every practical man ; and EASY EULE FOH COMPUTING INTEREST. 319 it will supersede the longer, more intricate, and often more uncertain methods now in use by many. TO COMPUTE INTEREST AT ANY RATE PEE CENT. The rule which I have given is not confined to 6 per cent., but can be readily applied to any other rate what- ever. In practical business we rarely have occasion to go below 3 or above 10 per cent., and within these limits even when the rate is a fractional one, as 4J or 7J per cent., the computation of the interest is exceedingly simple. This application of the above rule, as well as the form in which it is presented, can I believe be claimed as first given in this work, although the prin- ciple, like all mathematical principles, is an old one. EULE. Compute the interest at 6 per cent, in the manner above given. Then if the rate is 2 per cent., divide by 3, and the quotient is the interest. 3 per cent., divide by 2, and the quotient is the interest. 4 per cent., divide by 3, subtract the quotient from the dividend, and the remainder is the interest required. 4i per cent., divide by 4, subtract the quotient from the dividend, and the remainder is the answer. 5 per cent., divide by 6, subtract the quotient from the dividend, and the remainder is the answer. 7 per cent., divide by 6, add the quotient to the divi- dend, and the sum is the answer. 320 SHORTEST METHODS IN ARITHMETIC. 8 per cent., divide by 3, add the quotient to the divi- dend, and the sum is the answer. 9 per cent., divide by 2, add the quotient to the divi- dend, and the sum is the answer. 10 per cent., divide by 3, add quotient twice to the dividend, and the sum is the answer, etc., etc. The principle of this method is so simple as to need no explanation. Its brevity will be seen from the follow- ing examples : 1. WTiat is ihe interest on $74.00 for 5 months and 22 days, at 9 per cent. ? 74 X 172 ■ , . ^ n = mterest at 6 per cent. 6 ^ 172 74 6)12728 2)2.121 1.060 $3,181. Ans. 2. What is the interest on $1560 for 11 months, at 7J per cent.? 260 i^0 X 330 2600 33 4)85800 21450 $107,250. Ans. HANDY EULES IN INTEREST. 321 3. What is the interest on $2345.00 for 3 years, 7 months, 20 days, at 10 per cent.? For one year $234.50 ; for 3 years .... $703.50 23450 23 6)539350 3)89891 29964 29964 149.819 149.82 Ans, $853.32 4. What is the interest on $354.00 for 4 months, 13 days, at 4 per cent ? 59 01;^ X 133 133 59 3)7847 2615 $5,232. Ans. These examples will be sufficient to illustrate this handy method of computing interest, and a very little practice with it will convince any one that it is, for ex- tent of application and accuracy of result, as well as sav- ing of time, superior to any other. 322 SHOETEST METHODS IN ABITHMETIC. II^B.^. . . . ^i^ ^^ . % ^ . From ►-'h-'l-'lsStOfcO&SCOM h-'H-'totowtf^Ht^oiotashfxm r l-'H-'l-'tsSbObOW&SM 1 l-'H-'h-'tsSbOfcOWWCO cObOCnoot-'tJ^-JOMOsbOCn p- tOCJiOOI-'hfi.-JOCOOJCOCnCD i-'i-'fcOtOWrf^hfxWCni-'OO 1 1-1 hJ to ts2 ta W M W l-J cnooi-'hj^^ocooswosooba h-'h-'tsSbOWrfi-tJ^CnOI-'CDO 1' h-i to to to W W W h-i h-i coh-'t^.-JOWoswoseotooT fcOtOW&SlJi-OTOTI-'l-itOOl-' i to to to 03 W W h-i l-i h-1 l-ilf^^OOSOSMOSCDbOWOO totowwhJi-oiOH-'h-'tooi-' to to CO W M l-> l-i h-i to iJi.^OWOSWOlCDtOOlOOl-' C0C0iJi.*>Cni-'l-'tOt003i-'tO > d to CO OS CO l-i H-i h-i to to ^OCooscocjcoboCROoi-'Hi^ tfi.|4i.OlCJth-tOtOCOCOhJ^t005 1 COCOCO t-'h-'l-'tOtObO OC005COCJCC>tOC3lOOI-ih<^-J rf^tJ^OlOI-'tOtOCOCOrf^tOCO o coco h-'l-il-'tOtOtOCO COOSCOOSCOtOCnOOh-'hJi.^IO Cncni— 'i-itOtOCOif^tl^OiCOM^ ? < 03 l-ih-il-itOtOtOCOCO OSCOOlCDtOOiOOI-'tt^-^OCO OlOI-'l-'tOCOCOhJi.hf^OlCOhfi. r COMPOUND INTEREST. 323 This table will be found very convenient for ascertain- ing the number of days between any two dates not more than a year distant ; also for ascertaining with accuracy and despatch the time when notes, drafts, etc., fall due. Each of the numbers in the table shows the length of time (in days) from any day of the month standing oppo- site to it on the left, to the corresponding day of that month which is over it. Examples. What is the number of days from March 15th to ISTov. 15th? Opposite March, and under Nov., we find 245, the number required. What is the length of time from May 4th to August 16th? Opposite May and under August is the number 92, showing the days from May 4th to August 4th. To August 16th it is 12 days more, which, added to 92, give 104, the answer. COMPOUND INTBEEST. The following very simple rule for calculating when a sum at compound interest will double itself, when at a rate not exceeding 10 per cent, per annum, I have re- ferred to in the chapter on Investments. It will be found of considerable value in calculations respecting them. 324 SHORTEST METHODS IN ARITHMETIC. Divide 70 by the rate of interest, and take the whole number nearest the quotient. This represents the number of years. Tahle of Years, in which a sum will double at compound interest. Bate. Time in Years n TO 6 . . . . 3 = 23 4 70 = 17 6 70 5 = 14 6 70 (i = 12 7 70 7 = 10 8 70 ' 8 = 9 ,9 70 9 = 8 10 70 lO" = 7 The ordinary rule for calculating compound interest is for each payment to add the interest to the principal, and calculate the interest anew. The following table will much abbreviate this tedious process. It gives the amount for fl.OO at 5, 6, and 7 per cent, for 1 to 20 years. Multiply the amount for fl.OO by the given number of dollars, and the product is the answer. COMPOUND INTEREST. 325 TABLE, Showing tlie amount of one Dollar at Compound Interest for any number of years not exceeding twenty. No. 1 5 per ceat. 6 per cent. '7 per cent. 1.050 000 1.060 000 1.070 000 2 1.102 500 1.123 600 1.144 900 3 1.157 625 1.191 016 1.225 043 4 1.215 506 1.262 477 1.310 796 5 1.276 282 1.338 226 1.402 552 6 1.340 096 1.418 519 1.500 730 7 1.407 100 1.503 630 1.605 781 8 1.477 455 1.593 848 1.718 186 9 1.551 328 1.689 479 1.838 459 10 1.628 895 1.790 848 1.967 151 11 1.710 339. 1.898 299 2.104 852 12 1.795 856 2.012 196 2.252 192 13 1.885 649 2.132 928 2.409 845 14 1.979 932 2.260 904 2.578 534 15 2.078 928 2.396 558 2.759 032 16 2.182 875 2.540 352 2.952 164 17 2.292 018 2.692 773 3.158 815 18 2.406 619 2.854 339 3.379 932 19 2.526 950 3.025 600 3.616 526 20 2.653 298 3.207 135 3.869 684 DISCOTTNT. The principles of Discount should be thoroughly mas- tered, for through not understanding them, persons are often imposed upon. Discount being of the same nature as interest, is, strictly speaking, the use of money before it is due. The 28 326 SHORTEST METHODS IN AKITHMETIO. term is applied, however, to a deduction of so mucli per cent, from the face of a bill, or the deducting of interest from a note before any interest has accrued. This is the practice followed in our banks, and is therefore called Bank discount, in order to distinguish it from true discount. Banks now generally include in their reckoning both the day when the note is discounted and the day on which the time specified in it expires, which, with three days of grace, makes the time for which discount is taken four days more than the time specified in the note. Example. What is the bank discount, at 6 per cent., on a note for $1200, payable sixty days hence? 60 + 4 = 64 days, time for which discount must be reckoned. ^ of 64 = lOf X 1200 = 12,800. |12.80. Ans. The method of computing bank discount differs in no way from that of computing simple interest, but the method of finding true discount is quite different, e. g., a debt of $107, due one year hence, is considered to be worth $100 now, for the reason that $100 let out at in- terest now, at 7 per cent., would amount to $107 at the end of a year. In calculating interest, the sum on which interest is to be paid is known, but in computing discount we have to find what sum must be placed at interest so that that HOW TO DISCOUNT CORRECTLY. 327 sum, together with its interest, will amount to the given principal. The sum thus found is called the " Present Worth." To find the present worth of any sum, find the dis- count for any time, at any rate per cent., we have the following rule: Divide the given sum by the amount of $1 for the given time and rate, and the quotient will be the present worth. From the given sum subtract the present worth, and the remainder will be the discount. Example. What is the present worth of |224, due 2 years hence, at 6 per cent. ? Ans. $200. Merchants, are in the habit of deducting a certain per- centage from invoices and bills of goods sold for ready pay. This is reckoned in the same manner as interest. Example. A. purchases a bill of goods of B., amount- ing to $756, at a year's credit, but B. oifers to deduct 1 per cent, for ready pay. What amount is to be deducted? 756 X 10 = $75.60. Ans. By discounting off the face of bills, losses are frequently sustained without suspecting it. This arises from the fact that the discount is not only made on the first cost of the goods, but also on the gains. For instance, if a profit of 30 per cent, be made on any article of merchan- 328 SHOETEST METHODS IN ARITHMETIC. dise, and then 10 per cent, be deducted, the gain at first sight would appear to be 20 per cent., but is in reality- only 17 per cent. : in like manner, if 60 per cent, be added, and then a discount made of 45 per cent., the apparent profit would be 15 per cent., while o Tjl CO (M t- i-H lO O i-( i-H IM (M CO - s to 1-1 t- CO 05 ■* O COt-O ^ t-TH lO rH tH 1-1 (MCq (M -^ «5 05 tH CO lO CO <» 03 0 O lO O "O M lO t- O (M lO t~ 1-1 l-H l-H tH S 1-1 CO '^ CD t~ 05 O (M Tt* CD OO O tN lO tH 1—1 1—1 ^ &■ 00 CO -^ rH 05 1^- >0 rH CO »0 J>- 00 O (M 1—1 1—1 8 tH 05 CO t- 1-1 (M O 1-1 (N ^ "O t- 00 O 1-1 tH T-l (M CO -* -^ lO 1-1 (M CO -^ "O CD X:~ 1 O t- ^ 1— 1 05 CO CO O 1-1 1-1 lO O 1-1 (N -^ »0 fr- t* O 1—1 g 05 t- CO rt< CO rH O (N lO 00 1-1 Tt< t~ O •M Cq CO >0 CO t- Ol 1 o o ■^ 0> CO 1>- 1-1 CO O rH (M TJH lO t- 00 O 1-1 :tl 05 CO t- 1-1 CO O CD CM 05 lO : = 367f ) square yards. 1210)3675(3 3630 30)45(1 30 15 3 roods, 1 perch, 15 yards. Ans. Zl* 366 SURVEYING, LAND-MEASURING, ETC. Very many fields, however, are not laid out in any regular form, but they also can be measured by a simple expedient. Such fields are to be divided into those where the fences are straight, and those with circular or partly curved fences. TO MEASURE AN IRREGULAR FIELD WITH STRAIGHT FENCES. 1. If the field has furrow-marks in it, take a number of ridges at a time, and find their contents by the first rule ; then a number more, and so on ; add the contents together for the whole field. 2. A neater method when there are four sides is to measure the distance across. ihe field from one longest corner to the other, which will throw it into two triangles ; then measure the nearest or perpendicular distance from each of the other corners, to the line measured across the longest part of the field, and find the contents of the MEASURING LAND. 367 two triangles as before ; or, add the two perpendicular distances together, and take half the sum, which may be considered a mean width, and the line measured across the field being the length — thus : If the distance A B be 298 yards, the perpendicular distance CE 117 yards, and the perpendicular DF 113' yards, then 117 and 113 added together make 230, the half of which Is 115 yards for a mean width; then the contents can be readily estimated to be 7 acres, roods, 13 perches. A field of any number of sides may be divided into triangles by measuring lines across it ; and its content may then be found by the foregoing rules. TO MEASURE A FIELD WITH CURVED FENCES. First set up a stake at each corner of the field ; or if the fence bend inward, as near the coi'ner as possible, so that the stake can be seen at the other end of the fence, without being hidden by the curve. Then find the eon- tents of the piece within-side of the stake by some of the foregoing rules, and for the curved part measxire the dis- tance in a straight line from one mark to the other, against each, of the curved fences — observing to set down the distance that your stake stands from the' said fence where you first set off; and also note down the distance which the straight line you are measuring is from the fence or line at every fifty yards distance in length ; but if the fence be very irregular, take down the distance at 368 SURVEYING, LAND-MEASUEING, ETC. every twenty or thirty yards in length, and also the dis- tance at the end of the straight line ; and in finding the content of the curve, set down every distance twice which was taken from the fence, except the distances taken at each end, which set down only once; then add them all 'together, and divide the sum by the number of lines added up, which gives the mean width of the curve, and the straight line measured against it is the length ; thus : C D Suppose a field to be in the shape of the figure annexed, the length in the middle being 148 yards, the end AB, 88 yards, the end CD 94 yards, and the straight line BD 164 yards; the distance from the straight line to the curve at B nothing, at E 18 yards, at F 13 yards, and at the end D, nothing : then, for the content of the square part the length is 148 yards, and the two ends when added together make 182 yards, the half of which is 91 for the mean width. — Again, for the curve, the length is 1£4 ; and the off-sets, by the aforesaid rule, will stand thus: — M MEASUEING LAND. 369 18 18 13 13 _0^ 6)62^ 10 = the mean width of the curve. Contents, 3 acres, roods, 16 perches. Ans. The most irregularly shaped plot of ground can be readily calculated by the application of these various principles. The reader should practise them in the field, on plots of known areas, and thus learn to correct the little errors which are inseparable from first attempts. He will very soon be gratified at his own expertness. TO DEAW THE PLAN OF A FARM OR FIELD. In order to do this, it is essential that the " bearings " of the fences be taken correctly, that is, their directions with reference to the cardinal points. The only instru- ment necessary here, however, is a pocket compass such as can be bought for a dollar. Having such a compass, take a circular piece of pine board, 12 or 14 inches in diameter, planed smooth on the surface. Draw a line through the middle, and another at right angles to it. Mark the ends of these lines N., S., E., and W. Between each two of these letters, divide the circumference into 18 equal parts. By placing this circular piece horizontally, and true to the meridian 370 SUEVEYING, LAND-MBASUEING, ETC. (that is, the N. and S. line corresponding to the N. and S. line of the compass), and by sticking two pins on opposite points of the circumference, so as to guide the sight, bearings can be taken with considerable accuracy. Having the bearings, the next step is to reduce them to a plan. This can most conveniently be done by an' application of the principles of map-drawing, as follows : Draw a large square or parallelogram, and divide it by faint cross lines into a series of equal and similar small squares or parallelograms. The side of each of these small squares represents the same distance, and serves as a scale. The centre of the top of each is to be considered the north, etc. This will greatly facilitate laying down the bearings and distances, and for a rough draft will supply the place of the instruments of the drawing case, usually used for that purpose. The squares should be drawn lightly with a lead pencil, and the boundaries with a pen, so that the former can readily be erased, and leave the plan clear. TO ASCERTAIN THE LENGTH OF A LINE ACCESSIBLE ONLY AT ITS ENDS. Suppose one wishes to ascertain the width of a pond between certain points, A and B. Drive a stake at each of these points, and a third stake at C Draw a line from A to C, and prolong it an equal distance beyond C to D. Draw another line from B to C, and prolong it an equal distance beyond C to E. Then SURVEYING. 371 rrNDIKG THE BREADTH OF A POOT). measure the distance from D to E, and it will be equal to the distance from A to B. TO ESTIMATE THE WIDTH OF A STREAM OE CHASM WHICH CANNOT BE CROSSED. There are several plans by which this can be done, the simplest and most accurate being as follows : Select a level spot by the side of the stream where it runs a straight course for some distance. Drive at this point a tall stake or staff (A). Walk down the stream about as far as it is wide, to a point (E), then select some promi- nent object close to the bank on the opposite side (B). Walk up the stream, close to the bank, an equal distance above the staff A to D. Then proceed in a straight line 372 SURVEYING, LAND-MEASURING, ETC. from the river to the point C, where the staff A and the object B fall in the same line of vision. Measure the distance from C to D, and it will equal the width of thfe stream. FINDING THE WIDTH OF A STREAM WITHOUT CROSSING ITi The explanation of this is that the two triangles ABE and ACD are equal and similar, so that the side CD of the one is necessarily equal to the corresponding side BE of the other. TO ASCERTAIN THE DISTANCE BETWEEN TWO OBJECTS, BOTH or WHICH ARE INACCESSIBLE. Suppose we wish to ascertain the distance between two trees, A and B, standing on the opposite side of a stream which we cannot cross. Ascertain the distance from B MEASURING DISTANCES. 373 to E as in the last example. Continue the line to C. Then place a staff at the point D, where the eye of a person standing at C sees it in the same line as the tree A. Measure the line DE, and then as CE : ED : : CB : AB, the distance required. FINDINGt THE DISTANCE BBTWEEN INACCESSIBLE OBJECTS. Example. I find the width of the stream is 30 yards, the distani^e from E to the stake at C 60 yards, and the distance from E to the staff at D is 45 yards. How far apart are the two trees ? As 60 : 45 : : 90 (60 + 30) : 67i yards. Am. TO ASCEETAIN THE HEIGHT OF AN OBJECT. We may wish to do this when we are at the summit, and it is too high to use a line. The simplest^method is 32 374 SUEVEYING, LAND-MEASUEING, ETC. by the rapidity of a falling body. Drop a stone from the summit, and note by a watch how many seconds it requires to reach the base. Multiply the square of the number of seconds by 16, and the product is the height. Example, Being upon a lofty cliff ovei'hanging the sea, I drop several stones into the water below and note that their average time in reaching it is 8 seconds. What is the height of the cliff? 64 X 16 = 1024 feet. Ans. More frequently we have occasion to find the height of a tree, house, or steeple which we cannot ascend. We can do this readily and with tolerable accuracy by several methods. One is by measuring the shadow. Choose a clear day, and measure the shadow where it is thrown upon a level ground. At the same time measure the shadow cast by a staff of known height. Then as the length of the shadow cast by the staff is to its height, so is the length of the shadow of the object to its height. Example. I find the shadow of a steeple is 106 feet in length at the same time that a shadow of a 10 foot pole is 9 feet. What is the height of the steeple ? As 9 : 10 : : 106 : 117 feet, the height of the steeple. Ans. This plan is not so convenient nor accurate as the fol- lowing: Walk on level ground to a distance from the foot of the tree or object, about equal to its presumed MEASURING HEIGHTS. 375 height. Lie on your back on the ground, stretched at^ full length. Let an assistant note on a perpendicular staff at your feet the exact point where your line of vision to the top of the object crosses the staff. Measure the height of this, BC, and your own height to your eyes, AB. ^ .,u«^^-^>*W*^*^^^ MEASURING THE HEIGHT OF A TREE. Then as AB : BC : : AD : DE. Example. The distance from my eyes to my feet is 5 feet 6 inches ; from the ground to where the line of vi- sion crosses the staff is 4 feet ; from the point where my eyes were to the foot of the tree is 90 feet. What is the " height of the tree ? As 5.5 : 4 : : 90 : about 65 feet, the height of the tree. Ans. 376 SUKVEYING, LAND-MEASTJEING, ETC. TO MEASURE THE EISE OR PALL fflP GKOXJND. This is often important in draining, ditching, road making, calculating the fall of a stream, etc., etc. Usually it is done by means of a staff and spirit-level, but in default of these the " Span level " will be found convenient and tolerably accurate, especially in laying drains or ditching. It is constructed by fastening together at their ends two 4 or 6 inch-wide boards, with a cross-piece, as in the following figure, SPAN LEVEL AND PLUMB LEVEL. the span, from C to D, being 12 feet 6 .inches in width, (the eighth part of a 100 feet). Attached to the point A, at the apex, is a plummet, the line of which, when the instrument rests on a plane surface, falls exactly in the middle of the cross piece, at which point a mark is made. Now if the end D be elevated above the end C, the plumb line drops toward C ; and by placing inch LEVELLING. 377 blocks under J), and marking the spots where the line progressively drops toward C, we have a measure by which we can readily ascertain the rise and fall of the ground, and if the slope is equable, by multiplying any one marking by 8, we will have the rise in 100 feet. HANDY SYSTEM OF LEVELLING WITHOUT INSTRUMENTS. When it is desired to find the grade of a road, the fall of a stream, the height of a hill, etc., an instrument con- structed on the same principle as the Span level will serve every purpose. There are several ways of using it. One may place in the ground two stakes on a line with the ascent of the hill, and lay a cross piece upon the bringing it to an exact level with the Span level. If the lower stake is exactly 4 feet high above the surface, the point on the hill-side where the line of vision strikes the ground will be exactly 4 feet above the foot of the lower stake. Or the cross piece may be attached to the opposite side of the Span level from where the plummit hangs, though this is apt to be less accurate. When a fall of 2 feet in 10 feet occurs, the grade is 2 degrees ; if 3J feet in 20 feet it is a fall of 2 degrees ; if 5 feet in 50 feet about 6 degrees. The " Plumb-line level " is better adapted for long distances, such as running the grades of roads or streams, etc., than the Span level. Its construction will be readily seen from the adjoining sketch. 32* 378 SUBVEYING, LAND-MEASURING, ETC. LEVELLING WITH A PLUMB LEVEL. A straight piece with a smooth surface is fastened accurately at right angles to a support in the middle. A plumb line swings over this support. Wlien it rests precisely down its centre, the straight piece is exactly horizontal, and the observer at A sights an object on the ground at B, which shows the grade from B to C equals the distance CD. The following table will show the grade per mile as thus indicated. An inclination of foot in 10 is 528 feet per 16 is 352 20 is 264 25 is 211 30 is 176 35 is 151 40 is 132 60 is 106 100 is 53 125 is 42 mile. PRACTICAL ENGINEERING. 379 EOAD-MAKING AND GRADING. The intelligent application of the above methods will enable any one to lay out and run the grade of a road. The maximum grade in the best roads is one foot in 35, or 151 feet to the mile. It has been found both by- experiment and calculation that a steeper grade than this involves loss of power in horses, either by obliging them to hold back, or by injuring them if driven fast. Never- theless, one foot in 30 is a common slope, and one in 20 is often found on country roads. In New York the charters for some turnpikes stipulate that the slope shall not be more than one in 11. The persons who framed the charter knew nothing about engineering. A road should have a slope of at least one foot in 125 for drainage. In calculating excavations for roads, several rules are followed, some very inaccurate. In nearly all cases the mass to be removed is in the shape of a prismoid, or can be divided into several such shapes. The depth and width, and hence the area of each end, are known. Then the mass can be calculated by the following rule : Find the area of each end, and also the middle area corresponding to the arithmetical mean of the heights of the two ends. Add the area of the two ends and four times the middle area together. Multiply this sum by the length, and divide the product by 6. The quotient is the true cubical contents. 380 SUEVEYING, LAND-MEASURING, ETC. Bridges. When an ordinary road bridge is covered with people, it is about equivalent to a load of 120 lbs. on a superficial foot; and this may be esteemed the greatest possible extraneous load that can be collected on such a bridge ; while one incapable of supporting this load cannot be deemed safe. TO CALCULATE THE AMOUNT OF WATEE FURNISHED BY A RUNNING STREAM. The formula for this is not difficult, when the data have been found by observation. Select a part of the stream where it flow« evenly and has an average depth. Measure the breadth at the surface of the water ; then ascertain its depth at four or five places. This gives the following shaped figure of the bed of the stream, the area of which to calculate : MEASTTEING THE BED OF A STREAM. Then note by your watch how long it takes a floating body nearly submerged to float down the middle of the PRACTICAL ENGINEERING. 381 stream, say 50 or 100 feet. Express this in inches per second, and call it Y. The square of this number, minus its square root, 'plus J, will equal the mean rapidity of the stream. (V — W + J). Multiply this into the area of the section in inches, and it gives the cubic inches per second furnished by the stream. Example. In his travels in Florida, Dr. Brinton made the following measurements of the stream flowing from the celebrated Silver Spring in that State : breadth 95 ffiet ; mean depth 9 feet ; mean rapidity 10 feet per second. How much water does this spring give forth per day? CHAPTEE VII. EULES FOE COMPUTING MECHANICS' WOEK. Timber measure — Table for round timber measure — For scantling and lumber — Amount of timber in one load — Carpenter's work— Table of square measure — Stone-mason's work — Bricklayer's work — Plasterer's work — Slater's Work — Size of American slates — Paint- ing and glazing. S at some time or other every one has to do with ■'- building or repairing buildings, the ability to form correct estimates respecting such expenses is highly desirable. The customs in different parts of the United States vary somewhat as to the methods of measurements, but those I shall give are the most recent, and are those adopted by the most experienced architects and builders in our principal cities. TIMBER MEASURE. Boards, plank, and timber are generally measured by the square or superficial foot, of 144 inches. Ton timber is measured by the cubic foot of 1728 inches. Forty cubic feet of round, or 50 cubic feet of hewn, equals 1 ton. To find the board measure of a plank, etc. 382 TIMBEK MEASURE. 383 Multiply the length in feet by the breadth in inches, and divide by 12. Note. — The thickness being taken uniformly as one inch, the rule for finding the contents in square feet becomes the same as that for finding surface. If the thickness be not an inch, — Multiply the board measure by the thickness. If the board be a tapering one, take half the sum of the two extreme widths for the average width. Multiply the diameter in inches by half the diameter in inches, and the product by the length in feet, and divide the result by 12. If a log is 30 feet long, and 56 inches mean diameter, the number of square feet is 56 X 28 X 30 -f- 12 = 3920 feet. , To find the solid contents of a log when the length and mean diameter are given : Multiply the square of half the diameter in inches by 3.1416, and this product by the length in feet, and divide by 144. How many cubic feet are there in "a piece of timber 14 X 18, and 28 feet long? Ans. 49 + cubic feet. To find the solid contents of a round log when the girt is known : Multiply the square of the quarter girt in inches by the length in feet, and divide the product by 144. If a log is 40 inches in girt, and 30 feet long, the solid contents 'v^ill be found by taking the square of 10, the 384 COMPUTING mechanics' WORK. quarter girt in inches, which is 100, and 100 X 30 = 3000, and 3000 -^ 144 = 20f . To find the number of square feet in round timber, when the mean diameter is given : For measuring wood, multiply the length, width, and height together, and divide, if for feet of wood, by 16 ; or if for cords, by 128 ; the quotient is the content. TABLE FOE ROUND TIMBER MEASURE. Quarter Quarter Quarter Quarter Girt. Area. Girt. Area. Girt. Area. Girt. Area. luclies. Feet. Inches. Seet. Inches. Feet. Inches. Feet. 6 .250 11 .840 16 1.777 24 4.000 H .272 IH .878 16i 1.833 24* 4.168 U .294 11* .918 161 1.890 25 4.340 6| .317 111 .959 16| 1.948 251 .26 4.516 7 .340 12 1.000 17 2.006 4.694 n .364 12} 1.042 171 2.066 261 4.876 7+ .390 121 1.085 171 2.126 27 5.062 7i .417 12| 1.129 171- 2.187 27-1 28 5.252 8 .444 13 1.174 18 2.250 5.444 8i .472 13i 1.219' 181 2.376 281 5.640 8i .501 131 1.265 19 2.506 29 5.840 8f .531 13f 1.313 19J 2.640 291 30 6.044 6.250 9 .562 .594 14 141 1.361 1.410 20 201 2.777 2.917 91 .626 141 1.460 21 3.062 n .659 14i 1.511 21J 3.209 10 .694 15 1.562 22 3.362 101 .730 15i 1.615 221 3.516 101 .766 15-1 1.668 23 3.673 lOf .803 15f 1.722 23-1 3.836 TIMBER MBASUEE. 385 EuLE. — Multiply the area in feet, corresponding to the Jth girt, by the length of the stick of timber, and the product is the solidity in feet and decimal parts of a foot. Example. A stick of timber is 18 feet long and 14 inches girt, how many cubic feet does it contain? Opposite 14 is 1,361, which x 18 = 24 feet 6 inches. 1.361 18 10888 1361 24.498. Am. EuLE. — If a tree, or timber, is tapering, girt it about one-third of the way from the butt to the top ; — or add together the area at the two ends, and divide the sum by 2, to obtain the mean girth ; or take the girth of the tree at equal distances from each other, add all the girths together, and divide the sum by this number, for the mean girth. It is usual to allow, on account of the bark, in oak 1-1 0th or l-12th part of the circumference; beech, ash, etc., should be less. Timber measure is essential to the correct calculation of the cost of all wooden structures ; it is constantly used by carpenters, joiners, etc., and is requisite to form estimates about their work. 33 386 COMPUTING mechanics' WORK. SCANTLING AND TIMBER, jReduced to Board Measure foi- one foot in Length s 4 in. 5 in. 6 in. Tin. 8 in. 9 in. 10 in. 11 in. 1 12 in. M ft. in. ft. in. ft. in. ft. in. ft. ill. ft. in. ft. in. 2 6 3 4 4 2 5 5 10 6 8 7 6 8 4 ft. in. ft. in. 3 4 5 6 7 1 1 4 1 3 1 8 2 1 1 6 2 2 6 3 1 9 2 4 2 11 3 6 4 1 2 2 8 3 4 4 4 8 5- 4 2 3 3 3 9 4 6 5 3 6 6 9 2 9 3 8 4 7 5 6 6 5 7 4 8 3 9 2 10 1 3 4 5 6 7 8 8 9 9 10 10 0- n 11 12 12 EuLE. — For additional feet multiply the length by the product. Example. A joist is 8 ft. long by 4 in. square ; how many square feet does it contain ? Opposite 4 and under 4 is 1 foot 4 inches, which multiplied by 8, = 10 feet 8 inches ft. in. 1 4 8 feet. 10 8. Ans. TABLE, Showing the amount of Timber in one Load. 50 cubic feet of square limber 200 ft. lin. 3 in. plank'g, 12 in. w 100 ft. lin. of timber 12x6 ins. 300 " 2 " 12 " 200 " " 6x6 " 400 " 1^ " 12 •' 150 " 4in.plank'g, 12in. wide. 600 " 1 " 12 " LUMBER MEASURE. 387 CARPENTER S WORK. ■In measuring timber the unit of measure is the super- ficial foot of 144 square inches. In measuring length, it is customary to count as nothing all fractions under 6 inches, and to count as one foot, 6 inches and all fractions over. TABLE OF SQUARE MEASURE. Breadth Area of a Breadth Area, of a Breadth Area of a Breadth Area of a in inches. liueal foot. in inches. lineal foot. in inches. lineal foot. in incliea. lineal foot. i .0208 H .2708 61 .5208 9i .7708 J .0417 H .2916 6i .5416 H .7917 f .0625 Si .3125- 6f .5625 H .8125 1 .0834 4 .3334 7 .5833 10 .8334 n .1042 4i .3542 n .6042 lOi .8542 1* .125 4-1 .375 7* .625 10| .875 If .1459 4| .3958 7f .6458 lOf .8959 2 .1667 5 .4167 8 .6667 11 .9167 2i .1875 5i .4375 8i .6875 111 .9375 2* .2084 H .4583 8i .7084 Hi .9583 2| .2292 5| .4792 8| .7292 iif .9792 3 .25 6 .5 9 .75 12 1.0000 To ascertain the contents in square feet of joists, scantling, etc., of which the length and breadth are known : The length is to be multiplied by the decimal opposite it in the table. Example. 1. Required the number of square feet in a strip of board 10 feet long by 2 inches wide ? 388 COMPUTING mechanics' work. Opposite 2 is .1667, which multiplied by 10, equals 1 foot 8 inches. .1667 multiplicand. 10 multiplier. 1.6670 product. 2. Required the number of square feet in a board or plank, 41 feet long by 24f inches wide ? Opposite I is .0625, to which add 2 to the left of the decimal for feet [when the width of the board exceeds llf inches add 1 to the left of the decimal for each foot) ; then 2.0625 X 41 feet = 84 feet 7 inches. 2.0625 41- Ans. WOEK. 20625 82500 84.5625 stone-mason's 85 feet. Stone walls are measured by the perch, i. e., 16 ft. 6 in. long, 12 in. high, and 18 in. thick, equal 24| feet cubic measure. It is frequently agreed, however, to count the perch at 25 cubic feet, for the convenience of measurement. Nett measurement is that where all openings through the walls are deducted, and 24f feet (cubic) allowed to one perch. Gross measurement is that where no open- mason's work. • 389 ings under one perch are deducted, and 25 cubic feet allowed to one perch. When openings are deducted,' it is generally agreed to ^llow a compensation for plumbing and squaring the jams, and for the sills and lintels. It is customaiy to measure all foundation stone and " dimension stone " by the cubic foot, and all sills, lintels, base courses, water-tables, and ashlar, by the foot super- ficial and by the foot lineal. 10 cubic feet of building stone are estimated to be equal to one long ton of 2240 lbs. ; or to 20 square feet in the wall with a "bed" or thickness of 6 inches. Facing stone is called " ashlar." Dimension stone is stone ordered to certain sizes, usually for sills, arches, etc. It is sold by the cubic foot. beicklayer's work. Bricklayer's work is measured either by the thousand bricks laid in the wall, or more rarely by the perch. There are different methods of computing the number of brick in any given quantity of work, followed in dif- ferent sections of the country. The most general, and probably the most fair, is to allow some certain number to the superficial foot of the different thicknesses of walls built. Brick vary in their sizes in different localities, owing to the character and quality of the clay frorn which they are made, to the care with which the clay is pre- pared, and the degree of hardness to which they are 3a* 390 COMPUTING mechanics' work. burned. The following rule will give a fair average; and in estimating, the quantity of brick required to build a given amount of wall, is the smallest number that should be taken. ' In computing the brick in a piece of finished work, tlie actual number in a superficial foot of wall can be readily ascertained and a percentage added to, or deducted from the " measurement " as the brick may be larger or smaller than the average given. Sacde. 4^ in. wall (half brick), per foot superficial 7 bricks. 9 in. wall (one brick), per ft. superficial 14 " 13 " (one and one-half bricks), per ft. sup.... 21 " 18 " (two bricks), per ft. superficial 28 " 22 " (two and one-half bricks), per ft. sup... 35 " And seven bricks additional for each half-brick added to thickness of walls. Most bricklayers deduct all openings for doors, win- dows, archways, gateways, etc., but not for flues, ends of joists, trimmers, or girders, or for the boxes of window- frames, or any sills or lintels, on account of the wastage of material in clijjping around, or filling in such parts of the work, and the increased amount of time required. A load of mortar measures 1 cubic yard, or 27 cubic feet ; requires one cubic yard of sand, and 9 bushels of lime ; and will fill 30 hods. A bricklayer's hod, measuring 1 foot 4 inches X 9 inches X 9 inches, equals 1296 cubic inches in capacity ; and contains 20 bricks. BUILDING CALCULATIONS. 391 A single load of sand and other materials, equals 1 cubic yard, or 27 cubic feet. And a double load equals twice that quantity. A measure of lime, is a single load or cubic yard. A yard of paving requires 36 bricks laid flat, or 82 on edge. plasteeee's woek. Plastering is measured by the square yard for all plain work, and by the foot superficial for plain cornices, and by foot lineal for enriched or carved mouldings in cor- nices. By plain work is meant straight surfaces (like ordinary walls and ceilings), without regard to the style or quality of finish put upon the job. Any panelled work, whether on walls or ceilings, run with a mould, would be rated by the foot superficial. Diflerent methods of valuing plastering find favor in different portions of the country. The following general rules are believed to be equitable and just to all parties : Rule 1. — Measure on all walls and ceilings the surface actually plastered, without deducting any grounds, or any openings of less extent than seven superficial yai'ds. Rule 2. — Returns of chimney breasts, pilasters, and all strips of plastering, less than 12 inches in width, measure as 1 2 inches wide ; and where the plastering is finished down upon the wash-board, surbase, or wainscot- ing, add 6 inches to height of walls. Rule 3. — In closets, add one-half to the measurement ; 392 COMPUTING mechanics' work. or if shelves are put up before plastering, charge double measurement. Raking ceilings 9,nd soffits of stairs, add one-half to the measurement. Circular or elliptical work, charge two prices ; domes or groined ceilings, three prices. Rule 4. — For each 12 feet interior work is done fur- ther from the ground than the first 12 feet, add five per cent. For outside work, add one per cent, for each foot the work is done, above the first 12 feet. slater's work. In this work the content of a roof is found by multi- plying the length of the ridge by the girth over from eaves to eaves ; making allowance in this girth for the double row of slates at the bottom, or for how much one row of slates is laid over another. When the roof is of a true pitch, that is, forming a right angle at top, then the breadth of the building with its half added, is the -girth over both sides. In angles formed in a roof, running from the ridge to the eaves, when the angle bends inwards it is called a valley ; but when outwards, it is called a hip. Deductions are made for chimney- shafts or window-holes. One cubic foot of Welsh slate weighs about 180 pounds, or 12|^ cubic feet equal one ton ; hence, slabs or slates — I inches thick, weight per foot superficial 11^ lbs. 1 it a t( (( II II IR 11 ■I^ ii It (t It tt tt 1Q3 (( l| " " " " " " 22^ " 2 " " " " " " 30 " BUILDING CALCULATIONS. 393 NUMBEE OP SLATES RBQUISED TO COVER ONE SQUARE. Doubles, 13 X 6inches... 500 Ladies, 16 X 8 " 222 Countesses, 20 X 10 " 1*3 Duchesses, 24 X 12 " 100 SIZE OF AMERICAN SLATES, AND NUMBEE OF PIECES REQUIRED PER SQUARE. Size. Number nf Size. Number of Size. Number of Inches. pieces. Inches. pieces. Inches. pieces. 12 X 6 533 16x 9 246 20x12 141 12x 7 457 16x10 221 22x11 138 12x 8 400 18 X 9 213 22x12 126 14 X 7 374 18x10 192 22x13 116 14x 8 327 . 18x11 174 24x12 114 14 X 9 291 20x10 169 24x13 105 16x 8 277 20x11 154 24x14 98 American slate varies from 167 lbs. to 181 lbs. per cubic foot — good purple slate averaging 174 lbs. Slates vary from J in. to y'g in. in thiclcness. Slating is always measured by the square of 100 feet superficial. PAINTING AND GLAZING. Painter's' work is computed by the superficial yard. Every part is measured that is_ painted, and an allowance is added for diificult cornices, etc., and for deep mould- ings, iron railings, curved surfaces, etc. ; charges are usually made for each coat of paint put on, at a certain price per yard per coat. 394 COMPUTING mechanics' work. Glazing is usually charged by the square foot, or by so much per light or pane. For glazing show-cases and standing sash, and for bedding and back-puttying, the prices are from one-fourth to one-half above plain work. Ee-glazing, which requires more labor, is charged at nearly double the price of new glazing. ^^Bffi^ J^Bgg^jg^ g^^i^^sp Wttt'-'i^NKNl "^M mi3 ^^M CHAPTEE VIII. EECEIPTS AND MEMOEANDA OF PRACTICAL VALUE. How to make black ink — To make indestructible inks — Copying ink — Inks of various colors — To recover writing which is nearly effaced — To make tracing and parchment -paper — To fix perma- nently drawings or writings made by lead pencils, charcoal, etc. — To restore old paintings — To make liquid glue — To fasten rubber to wood or metal — Turner's cement — Iron cement — Water-proof cement — To make bricks water-proof — To make whitewash that will not rub or wear off — To render cloth water-proof — To render packing paper water-proof — To remove old putty or paint — Fire- proof paper — Fire-proof dresses, etc. — To prevent dampness in safes — To detect dangerous kerosene — To polish glass, marble, etc. — To cut or bore glass with a, steel instrument — To prevent knives, tools, etc. from rusting — To read gas meters — To polish and stain wood. p|| T has been my custom for years, and I would re- ^1 commend others to adopt it, to note down well- tried receipts and memoranda of a practical char- acter,_^ such as will be found useful in business. They will often save many a dollar to the person who is acquainted with them. The numerous " receipt books " which are advertised, are too often copies one from the other. Most of them are full of inaccuracies, and such loose directions that it is impossible to apply the receipts they furnish. These are not the sources which I suggest to my readers, but 395 396 RECEIPTS AND MEMORANDA. recommend them rather to search for such information in scientific journals, special books on applied chemistry, etc. There are some subjects which I may call of general business interest, about which I will extract a number of receipts and memoranda from my collections. All will agree, for instance, that receipts for making various kinds of ink, for preserving paper, for rendering substances fire- proof and water-proof, for making mucilage, glues, and - cements, for preserving and polishing hardware, marble, and glass, etc., and memoranda for burning gas economi- cally, for staining wood, preserving leather, etc., are of a kind, if reliable and simple in application, to save the possessor a great many dollars in the course of a year. I commence with some receipts TO MAKE BLACK IKK. Common black inks are made by mixing powdered galls with sulphate of iron in water, together with a little gum arable to hold the substances in solution. There are three causes of deterioration in inks and writing fluids, viz. : the fungous growth, the subsidence x)f the black compound, and the loss of color dependent upon the operations of different principles. A first-class ink should be free from all these objections. In order to procure it so far as possible, the galls should , be macerated for some hours with hot water, and the fluid filtered ; the filtrate should be then exposed for fourteen days tp a warm atmosphere, when any fungous growth RECEIPTS FOR INK. 397 that may be observed, must be removed. A solution of si^ipliate of iron is to be employed, which has been boiled, or exposed for some time to the air, and in which there is consequently an admixture of sesquioxide of iron. If the infusion of galls is made considerably stronger than is generally directed, the ink formed in this manner will not necessarily require the addition of a mucilaginous substance to render i^ of a proper consistency. One of the best fluids for diluting ink, if it be in the first instance too thick for use, or if it become so after- wards by evaporation, is a strong decoction of coffee, which does not decompose the ink, but improves its hue and gives it an additional lustre. The following receipts are late, and probably the best. 1. Take Powdered sulphate of iron 1 ounce. Ground logwood 1 " Bruised galls 3 " Gum arable 1 " White wine or acetic acid 1 quart. The copperas and gum arabic are dissolved in as little of the vinegar as possible, while the rest is boiled for some hours with the logwood and galls in an earthenware pot. The decoction is strained through muslin and mixed with the solution of iron. 2. Take Galls bruised 2 pounds. Sulphate of iron 5 " Gum arabic 4 " Water... . .' 12 gallons. Creosote 2 drachms. To be made up in the same way as the preceding. 34 398 EECEIPTS AND MEMORANDA. 3. Take Galls bruised 1 pound. Sulphate of iron 3 ounces 64 grains. Gum 3 " 64 " Water 3 quarts. The galls are to be boiled witb three pints of water, till a quart of decoction remains ; it is then poured off, the remainder of the water added, and the boiling con- tinued until again only a quart is left. The two are then mixed, and the other ingredients dissolved in them. The whole is allowed to stand for twenty-four hours, when the fluid ink is poured off and retained for use. TO MAKE INDESTEUCTIBLE INKS. The common writing inks being readily obliterated by certain chemical agents, and hence giving opportunity for altering checks, legal papers, etc., several compounds more capable of resisting these agents have been pro- posed, of which the following deserve notice : Shellac Ink. Powdered borax 1 ounce. Bruised orange shellac 2 ounces. Water 18 ounces. Boil in a covered vessel, stirring occasionally, until the shellac is dissolved. Then allow it to cool, filter it through coarse filtering paper, and add, Gum arabic mucilage 1 ounce. Boil for a few minutes, and then add sufficient finely jJowdered indigo and lampblack, equal parts, to color it. RECEIPTS FOR INKS. 399 Leave the mixture for 2 or 3 hours to settle, pour off the upper liquid, and bottle it for use. This ink can be used for writing on glass, marking labels, etc. Eeal Indian ink, or real Japanese ink, dissolved in ordinary ink, will enable it to resist most chemicals. TO MAKE COPYING INK. Take two gallons of rain-water, and put into it ^ pound of gum arable, ^ pound brown sugar, J pound clean copperas, | pound powdered nut-galls. Mix and shake occasionally for ten days, and strain. If needed sooiier, let it steep in an iron kettle until the strength is obtained. TO MAKE INKS OP VARIOUS COLORS. A convenient black ink powder is made by mixing two ounces of powdered nut-galls, one ounce of powdered sulphate of iron, and half an ounce of powdered gum arable. This amount should be stirred in a quart of boiling water, and allo-^ed to stand over night. The upper liquid should be carefully decanted, and will be found a clear, black ink. For red ink the following formula is serviceable : To 12 grains of carmine add 3 ounces of aqua ammonia, and heat gently, without boiling, for seven or eight minutes; then add 18 grains of gum arable, stirring con- stantly. It must be kept well corked. For a violet ink take aniline violet, half an ounce, and 400 RECEIPTS AND MEMORANDA. let it stand in five ounces of alcohol in a glass vessel for three hours ; then add a full quart of distilled water and heat gently for several hours, or until the odor of the spirit has disappeared ; then mix in two drachms of gum arable dissolved in half a pint of water, and allow the whole to settle. TO EECOVEE WRITING WHICH IS NEARLY EFFACED. This is occasionally a matter of the greatest conse- quence in reference to old deeds, wills, and other legal papers. The following process requires skill and prompt- ness, but the results are satisfactory. Stretch the paper carefully on a wire frame. Dip it first for a few seconds in distilled water; then for five seconds in a solution of oxalic acid, 1 of acid to 100 parts of water ; dip it in the distilled water for a moment, and then for five seconds in a solution of gallic acid, 10 grains to 100 of water; dip it again in the pure water and let it dry. This will bring out the faded ink. The experiment should be tried on papers of no value until the requisite skill is acquired. TO MAKE TRACING AND PARCHMENT PAPER. Open a quire of double crown tissue-paper, and brush the first sheet with a mixture of mastic varnish and oil of turpentine, equal parts ; proceed with each sheet simi- larly, and dry them on lines by hanging them up singly. As the process goes on, the under-sheets absorb a portion of the varnish, and require less . than if single sheets COPYING PAPER. 401 were brushed separately. The inventor of this varnish for tracing-paper received a medal and premium from the Royal Society. It leaves the paper quite light and transparent, it may readily be written on, and drawings tra"ced with a pen are permanently visible. It is used by learners to draw outlines. The paper is placed on the drawing, which is clearly seen, and an outline is made, taking care to hold the tracing-paper steady. In this way, elaborate drawings are easily copied. ANOTHER METHOD. Paper can be readily converted into vegetable parch- ment by immersing it for a few moments in a mixture of two volumes of sulphuric acid and one of water. The acid should be, washed off the paper by immersing and slightly agitating it in a large quantity of cold water. The last trace of acid may be removed by finally immers- ing the paper in water to which a small quantity of ammonia has been added. To prevent contraction or wrinkling, the paper should be stretched on a frame while yet wet. Paper so prepared is transparent, and can be used for tracing-paper ; and may also be employed as a very good substitute for sheep-skin parchment. TO nX PERMANENTLY DRAWINGS OR WRITING MADE BY LEAD-PENCILS, CHARCOAL, ETC. The preservation of such records and drawings is some- times of the utmost importance in legal proceedings, etc. , 34* 402 RECEIPTS AND ifEMORANDA. When a paper containing drawings or writings made with lead-pencil, charcoal, etc., is painted over on the reverse side (where no writing or drawing exists) with a mode- rately strong solution of bleached shellac in alcohol, the drawings, etc., become thoroughly fixed, so that they cannot be rubbed off. TO RESTORE OLD PAINTINGS. Tl^e unsightly cracks on old paintings can be removed by placing them for several weeks in a close box, where the air is saturated with the fumes of alcohol at the ordi- nary temperature. TO MAKE EIQTTID GLUE. The best receipt for making liquid glue is the follow- ing : Take gum shellac, 3 parts, by weight ; caoutchouc (India rubber) 1 part, by weight. Dissolve the caout- chouc and shellac, in separate vessels, in ether free from alcohol, applying a gentle heat. When thoroughly dis- solved, mix the two solutions, and keep in a bottle tightly stoppered. This glue is called marine glue, and resists the action of water, both hot and cold, and most of the acids and alkalies. Pieces of wood, leather, or other substances, joined together by it, will part at any other point than at the joint thus made. If the glue be thinned by the admixture of ether, and applied as a varnish to leather, along the seams where it is sewed together, it renders the joint or seam water-tight, and almost impossi- ble to separate. MAKING GT^TJES. 403 An excellent liquid glue is also made by dissolving glue in nitric ether. The ether will only dissolve a cer- tain amount of the glue, consequently the solution cannot be made too thick. The glue thus made is about tlie -consistency, of molasses, and is double as tenacious as that made with hot water. If a few. bits of India rubber, cut into scraps the size of a buck-shot, be added, and the solu- tion allowed to stand a few days, being stirred frequently, it will be all tjie better, and will resist the dampness twice as well as glue made with water. TO FASTEN EUBBEE TO WOOD AND METAL. As rubber plates and rings are now-a-days almost exclu- sively used for making connections between steam and other pipes and apparatus, much difficulty is often expe- rienced in making an air-tjght connection. This is obvi- ated entirely by employing a cement which fastens alike well to the rubber and to the metal or wood. Such cement is prepared by a solution of shellac in ammonia. Soak pulverized gitm shellac in ten times its weight of strong ammonia, when a slimy mass is obtained, which in three to four weeks will become liquid without the use of hot water. This softens the rubber, and becomes, after volatilization of ammonia, hard and impermeable to gases and fluids. turner's cement. The following is a very excellent cement for the use of turners and artisans in general : Sixteen parts of 404 RECEIPTS AND MEMORANDA. whiting are to be finely powdered and heated to redness, to drive oif all the water : when cold, this is mixed with sixteen parts of black resin and one part of beeswax, the latter having been previously melted together, and the whole stirred till of uniform consistence. IRON CEMENT. The best iron cement can be made by preparing a mixture composed of 16 parts of clean wrought iron filings, 3 parts of pulverized sal ammoniac, and 2 parts of flowers of sulphur. This mixture can be kept in a dry package any length of time, unchanged ; and when re- quired for use, it is better to reduce one part of it with 12 parts of iron filings, and enough water containing a little of sulphuric acid, to form a stiff paste. When thus reduced, it must be immediately applied, as it sets rapidly. It is recommended for joining broken pieces of cast iron, and for stopping large fractures. For very fine work, pure pulverized iron filings, such as apothe- caries use, can be substituted for the coarse article. WATER-PROOF CEMENT. •Take a pint of milk, and curdle it by adding an equal measure of vinegar. Separate the whey by straining, and beat it thoroughly with the whites of five eggs. Sift finely powdered quick lime into it, stirring constantly, until it is brought to the consistency of a thick paste. It is to be applied in this condition, and.will be found a fiiT.i and excellent water-proof cement. WATEH-PROOFING. 405 TO MAKE BEICKS WATBE-PEOOF. Take eight pounds of linseed oil, and stir into it one pound of finely powdered flowers of sulphur. Bring the mixture gradually to a heat of 278° Fahrenheit, and then allow it to cool. Add some drying oil, and paint the bricks with the compound. For many purposes this answers instead of cementing or boarding exposed brick walls, and is much cheaper. TO MAKE WHITEWASH THAT WILL NOT EUB OR .WEAK OFF. A constant annoyance in using whitewash is, that it rubs off on the clothes, and washes off by the rain. This can be in a great measure prevented, by making the whitewash in the ordinary manner, then placing it over a fire and bringing it to a boil. Then stir in to each gallon a tablespoonful of powdered alum, a half pint of good flour paste, and a half pound of glue dissolved in' water, while it is boiling. This wash looks as well as paint, and is almost as durable as slate. It endures as long as paint, and the expense is a mere trifle. TO MAKE CLOTH WATEE-PROOF. Instead of India rubber overcoats, which are heating, heavy, and unhealthy, the following recipe will make a much more comfortable as well as cheaper water-proof 406 EECEIPTS- AND MEMORANDA. wrap. Choose Scotch tweed, or any light firm cloth, closely woven. Make a mixture as follows : Powdered alum 1 ounce. Sugar of lead 1 ounce. Rain water 1 gallon. Stir the powders into the water, and when the mixture is clear pour off the upper liquid and immerse the cloth in it for twenty-four hours. Then dry and press it. It will then be found to turn any amouijt of rain to which one is apt to be exposed, and is uninjured in color or wear. WATER-PROOF PACKING-PAPER. Many articles of goods liable to be spotted or injured by moisture, should be shipped in water-proof packing paper. This is prepared with two and a half ounces of powdered shellac, dissolved in two pints of water, which is gradually brought to a boil, and is stirred until the substance is perfectly dissolved and softened; when gradually one-third ounce of powdered borax is added, until an intimate union of the substances takes place. The liquid is then left to cool, and while still hot any mineral color may be added, such as lamp-black, yellow ochre, red ochre, iron blue, or burnt umber, after which it is left to get entirely cold. It is then ready for use. The operation can be so quickly performed with a brush that two woipien can prepare three thousand feet in ten. hours. FIEE-PEOOFING. 407 TO EEMOYE OLD PUTTY OE PAINT. Soft soap mixed with a solution of caustic potash or caustic soda ; or pearl-ash and slaked lime, mixed with sufficient water to form a paste ; either of these laid on with an old brush or rag, and left for some hours, will render it easily removable. FIEE-PEOOF PAPEE. To render paper non-inflammable, dip it in a strong solution of alum, and then dry it. If the paper is "very thick, the process should be repeated. FIEE-PEOOP DEESSES, ETC. To render cotton and linen goods non-inflammable, dip them in a strong solution of sulphate of ammonia ; or in a weak solution of chloride of zinc ; or, still better, in a solution of tungstate of soda. This latter is the only perfectly fire-proofing preparation. It may with great advantage be used on the dresses of dancers, the curtains and scenes of theatres, the ornamental fly-papers of saloons and stores, the shades of windows, etc., and will contribute largely to safety. The flame of a lamp will . burn a hole, but the fire will not spread. The King of Bavaria and Queen Victoria, in conse- quence of several serious accidents growing out of the burning of dresses in theatres and private houses, recently directed experiments to be made, to see if some chemical agent could not be detected to mitigate the evil. 408 EECEIPTS AND MEMORANDA. The agent discovered and recommended by Professor Fuchs was the silicate of soda (soluble glass) sufficiently- dilute to flow easily. He found that labrics soaked in this, or wood saturated with it, would simply char, but not burst into a flame when exposed to the action of fire. He recommended it to be used as a paint for the wood- work of steamboats, and for the decorations of theatres, and his advice was followed in Bavaria. For coarser goods, not required to be ironed, a solution containing 10 per cent, of sulphate of ammonia is the cheapest . foi* use on a large scale. For fine goods in the laundry, the best agent is the tungstate of soda, mixed with a small quantity of phosphate of soda. To prepare this solution, dilute with water a concen- trated solution of the tungstate until it indicates 28° (sp. gr. 1.140), and then mix it with 3 per cent, of phosphite of soda. The goods are moistened with this solution just before being starched, and they may be afterward ironed and finished without injury, and the protection fi^om fire is said to be perfect. The dresses of ballet dancers in England are generally treated in this way, and the acci- dents which called forth the investigation are conse- quently very rare. TO PREVENT DAMPNESS IN SAFES. All fire-proof safes, if left shut up most of the time, become damp, and the papers, etc., they contain, grow mouldy and soft. To pi-event this, a piece of fresh and EXPLOSIVE OIL. 409 dry chloride of. ealoium (which can be boHght from most druggists), about the size of a green walnut, should be placed in the safe every few weelts. If this cannot be obtained, a freshly burnt piece of quick lime, as large as a medium-sized apple, will answer the purpose. TO DETECT DANGEROUS KEEOSENE. No man and no family should burn explosive kerosene. Millions of dollars have been lost by its use, and it is as dangerous as gunpowder. Any kerosene that can be ignited when poured in a saucer is dangerous. An eminent chemist also recommends this test. He" takes a glass tube closed at one end and open at the other, and fills it with the petroleum to be tested ; then closing the open end with the finger, inverts it in a vessel with water warmed to 110 degrees by mixing hot and cold water, and keep- ing it at that temperature by occasionally adding hot water. If now any vapor be apparent, it will collect in the closed upper part of the tube, displacing the oil downward. The amount of this gas will be a comparative test of the dif- ferent qualities of oil. The more there is of it, the more dangerous is the kerosene ; and in a perfectly safe article there is none at all. TO POLISH WINDOWS, MARBLE COUNTERS, ETC. Marble of any kind, alabaster, any hard stone, or glass may be repolished by rubbing it with a linen cloth dressed with oxide of tin (sold under the name of putty powder). 35 410 KECEIPTS AND MEMOEANDA. For this purpose a couple or more folds of linen should be fastened tight over a piece of wood, mat, or otherwise, according to the form of the stone. To repolish a mantel- piece it should be first perfectly cleaned. This is best done by making a paste of lime, soda, and water, well wetting the marble, and applying the paste. Then let it remain a day or so, keeping it moist during the interval. When this paste has been removed the polishing may begin. The linen and putty powder must be kept con- stantly wet. Glass, such as show-counter cases, which becomes scratched, may be polished in the same way. This recipe alone will be worth many dollars to shop- keepers. TO CUT OR BOEE GLASS WITH A STEEL INSTRUMENT. A glazier's diamond is not often at hand, but glass can be cut with a good penknife almost as easily. Any hard steel tool will cut glass with great facility when kept freely wet with camphor dissolved in turpentine. A drill-bow may be used, or even the hand alone. A hole bored may be readily enlarged by a round file. The ragged edges of glass vessels may also be thus easily smoothed by a flat file. Flat window glass can readily be sawed with a watch-spring saw by the aid of the solu- tion. In short, the most brittle glass can be wrought almost as easily as brass by the use of cutting tools kept constantly moist with camphorized oil of turpeutiae. SAVING GAS. 411 TO PEEVENT KNIVES, TOOLS, ETC., FKOM EUSTING. The usual plan adopted by machinists is to coat the blades with thin shellac varnish. On fine models, deli- cate cutlery, etc., this is objectionable. The neatest plan is to paint the steel with strong spirits of camphor, or to dip the blades, etc., into it. This leaves an invisible coating of gum camphor sufficient to prevent rust or tar- nish, but not perceptible to the eye. Surgeons are accus- tomed to preserve their scalpels, etc., in this manner. Dr. C. Puscher recommends the use of a solution of paraffine in petroleum (1 part by weight in 3 of petro- leum), as a varnish which may be usefully applied to polished metals, especially as after having brushed this liquid over the surface of the metal it may be gently wiped clean with a soft piece of flannel, so as to leave only a very thin film of the varnish, yet sufficient for the protection of the polish. I TO READ GAS-METERS. The gas-meters, both wet and dry, in ordinary use have three indexes ; the hand on the first or right hand index moves to the right as the figures read, and each index begins with a cipher (0) at the top, and reads 1, 2, 3, and .so on to the cipher again, which is 10. When the hand on the right index has moved to 1, it indicates that 100 cubic feet of gas have been used, or passed the meter; when it points to five it means 500 feet, and 412 RECEIPTS AND MEMORANDA. after completing the circuit to it is 1000 feet. Each of the indexes is a tenfold multiplier of the one precede ing. Single figures are used for want of room, but the multiplier is generally placed above the index ; thus the right hand is 1000, the next to the left, or middle index, is 10,000, and the last, or left hand index, is 100,000. Therefore, on the right hand index 1 stands for 100 ; on the middle index, 1 stands for 1000 ; and on the left index 1 stands for 10,000. To read the meter, begin with the left index, and write down the figure last passed by the pointer ; then write down the figure last passed by the middle index ; and then the figure last passed by the right index. Add two ciphers (00) to this and it will give the gas regis- tered in cubic feet. Suppose the first index was 2, the second 5, and third 6 ; then 25,600 feet is the amount registered. At the end of the month or quarter, read the meter again and subtract the former from the latter figure, and the remainder is the amount of gas consumed between the two dates. TO POLISH AND STAIN WOOD. The following receipt for the purpose is that used by the Shakers, and kept as a secret, I have heard, by the community. It is one of the very best furniture polishes known, and it has been used with entire satisfaction by the gentleman from whom it was obtained : Spirits of turpentine 1 gallon. Common yellow wax 3 pounds. Linseed oil i pint. TO POLISH AND STAIN WOOD. 413 Mix the material in a closed vessel with a moderate hfeat, so as to dissolve the wax. This is for oiling floors already stained, and for. polishing furniture. Floors may be stained by adding a small quantity of red lead to cold linseed oil. This grows darker every year. Umber to cold linseed oil makes a fair imitation of walnut. 35* CHAPTER IX. EXPLANATION OF BUSINESS TEEMS, ETC, Signification of terms used in business. — Foreign words and expres- sions in current use — List of Boolcs of value to business men. ifli HE peculiar significations often attached to words currently employed in business transactions, ren- ders it highly desirable that one make himself familiar with their precise meaning. With this object in view I shall subjoin, a list of such technical expressions, as we may call them, as are quite common in our busy marts ; and also a second list, comprising a few of the foreign words and expressions which are fre- quently employed. The value of a knowledge of these will be recognized by every one. VOCABULARY OP BUSINESS TEEMS. Acceptance. — The act by which the drawee of a bill of exchange- binds himself to pay the same when due. AcGommodation-paper. — Bills of exchange or notes given without value for the accommodation of some person. Account Current. — A running debtor and creditor 414 ■BUSINESS TEEMS. 415 account, bearing interest, and balanced generally once, if not twice in the year. Arbitration of Exchanges. — A comparison made between the exchanges of different places, with the view of buying or selling bills to advantage. Assets. — Cash or property of a bankrupt, an insolvent, or deceased person. Means to pay the debts of an estate or commercial house. Blank Oredit. — Permission to draw on a house to a certain amount, without restriction as to time, and with- out maldng remittances against the drafts. Bonded Goods, Goods in Bond. — Such as are permit- ted to be warehoused in certain Bonded Stores, without payment of the duty, on the owner giving bond . for the payment of such duty and other charges, on their removal for home consumption, or re-shipment to some other country. Bottomry Bond.— A bond given by the captain for money advanced on the keel or bottom of his ship. Bulk. — Brokers who aim to increase the price of stocks, etc. Capital. — Stock in trade. Principal.^ Cambist. — A. money-changer. Clearing House. — The place where banks make exchanges and settle balances. Consols (for consolidated funds).^Certain public stocks formed by the consolidation of different annuities. Convertible. — Exchangeable for money value. 416 BUSINESS TEEMS, ETC. Credit. — The side of an account which shows the amount due the person or thing represented. Debt. — ^The side of an account which shows the indebt- edness of the person or thing represented. Defalcation. — Deduction, diminution. Discount. — ^A deduction of so much per cent, for present payment. To Dishonor. — ^To refiise acceptance or payment of a bill of exchange. Dividend. — ^A share of anything divided. The divi- dends on stock, are simply the interest due thereon to the holders. Draft. — A bill of exchange drawn by A upon B, is called in commercial language, A's draft on B. Draught. — An allowance on goods sold by weight. Drawback. — A return of duties allowed on the re-ex- portation of certain foreign goods. Drawee. — The person on whom a bill is drawn. Drawer. — The person who draws a bill. Equity of Redemplion. — The right allowed to a mort- gagor of a reasonable time to redeem lands mortgaged. Face of a bill, etc. — ^The amount for which it is drawn. Favor. — A note or check is said to be drawn in favor of the person to whom it is made payable. Folio. — Page of an account book. Grace, Days of. — Days allowed for the payment of a note after it becomes due. Indorsee. — The person to whom a bill is indorsed- VOCABULAKY. 417 Indm'sement. — The act of writing the name of the holder of a bill on the back of the same, for the purpose of trans- ferring it to another person. Indorser. — The person who writes his name on the back of a bill. Insolvent. — One who is unable to pay his debts. Inventory. — An account in detail of property. Invoice, see Inventory. Inventory is generally applied to a catalogue of goods on hand. Invoice, to goods pur- chased, received from abroad, or about to be shipped. lAquidation. — The settlement or winding up of the concerns of a house of trade, by the recovery of claims, payment of debts, etc. ■ Manifest. — One of the ship's papers. It is a list of goods on board of a ship, a copy of which the captain is obliged to hand over to the custom-house on his arrival at the port of destination. Maturity. — The period a note or bond is due. Net proceeds. — The remainder after deducting all charges from the amount of gross sales. Net weight. — The weight of. a commodity after deduct- ing tare, and all other allowances. Nan claim. — A failure to claim within the time limited by law. Omission of claim. .Par of Exchange. — The intrinsic value of the money of one country in that of another, comparing gold with gold, and silver with silver. Parcel. — Among merchants, si-jnifies a lot of goods 418 BUSINESS TEEMS, ETC. purchased at one time and one price. It contains an account of the qualities and prices of the articles, with the "weights, marks, and numbers of the several packages or parcels of which the order consists : hence the name bill of parcels. Policies. — Printed forms on which contracts of insur- ance are written. Policies valued. — In marine assurance, are those in which the value of the goods is specified. Prejudice. — Hurt, injury, damage. Premium. — The sum in advance of the capital paid on stocks, etc. Premium of Exchange. — The percentage paid in British North America, the United States, etc. for the purchase of a bill on England. Premium on Shares. — The amount paid on a share being f 50.00 for instance, and the market price $53.00, it is said to be " at a premium of 6 per cent." If the same share would fetch but $48.00, it would then be "at a discount of 4 per cent." Principal. — Capital, money loaned. Protest notarial. — The evidence required by law of the due presentation of a bill for acceptance or payment. Quotations. — The prices of goods, course of exchange, rates of freight, etc. as advised by one merchant to another or published by brokers in a price-current. Rebate. — Deduction, discount. Renewal. — Of a bill, postponing the time of payment. VOCABULAEY. 419 Salvage. — The compensation allowed those who assist in saving a ship or cargo from peril. Stoch- Jobber. — One who speculates in the public stocks for his own account. Syndicate. — A number of persons who unite to dis- pose of a loan, to sell a stock, etc. Tare. — An allowance for the weight of boxes, barrels, etc., in which merchandise is put up. Teller. — An officer of a bank. Time-bargain. — ^An agreement to purchase and sell goods or stock at a certain time and fixed price. Tonnage. — The number of tons burden that a ship will carry. Transfer Days. — Certain days appointed for the trans- fer of stock from the name of the seller to that of the buyer. Underm^iters. — Insurers — ^undertakers of the risk. Usance. — There is, in every commercial city, an estab- lished custom, in regard to the number of days or months at which foreign bills of exchange are drawn ; this is termed the usance of that place. Usury. — The taking illegal interest for money. Voucher. — A document or paper proving that some payment has been made, or other transaction effected. FOREIGN TEEMS USED IS BUSINESS. Ad valorem duty. — ^Latin. — One levied on the value of the artide, not by weight, numbers, or package. 420 BUSINESS TEEMS, ETC. Agio. — Italian. — The difference between Banco, or bank money, in which accounts are kept, and the current money of a country. Annum. — Latin. — A year ; per annum, by the year. Appoint. Per appoint. — French. — A phrase often used among English and foreign merchants. The word APPOINT signifies odd money, " Monnoie qui se donne pour achever une somme qu'on ne saurait parfaire avec les principales esp^ces." JDiot. de l'AcadSm,ie. A remit- tance per appoint is a remittance of the exact sum due. Banco. — Italian. — See Agio. Bona fide. — Latin. — In good faith. Contra. — Latin. — Against ; on the other side. An account per contra is a credit or debit to set off against an account just stated. Coupon. — French. — A certificate of interest due, which is cut off from the bond, etc. Del credere. — Italian. — A premium charged by com- mission merchants for becoming responsible for pur- chasers. Pro forma. — Imaginary, fictitious. The utility of a pro forma account is this : — A Hamburg merchant is desirous of shipping a parcel of wools to London on speculation, and in order to ascertain whether he can realize a profit by such a consignment, applies to his correspondent for a pro forma account-sales of wool. The London merchant, in this case, either transmits him a copy of real account, suppressing names, marks, etc., LIST OF BOOKS. 421 or makes up one altogether fictitious, but which suffices to show the duties, charges, commission, and expenses of all kinds on wools in the port of London. Respondentia. — ^A loan in respondentia is money lent on the security of a cargo. LIST OP PRACTICAL BOOKS. The following books are of a practical and useful character, and should be owned by young men desirous of possessing themselves of standard works, on the subjects of which they treat. They can be obtained through almost any bookseller. Walker on Punctuation. Webster's or Worcester's Dictionary. Tables of Logarithms. Steinwehr's Eclectic Geographies. Stieler's Hand Atlas. Naphey's Prevention and Cure of Disease. Naphey's Transmission of Life. Sharswood, Commercial Law. Foster, Essays. Gillespie, Roads and Road-making. 80 INDEX Acceptance, 216. Accumulation, 46. Addition, short method of, 296. Administration of an estate, 248. Advertising, rules about, 91. agencies, 93. Advice, about asking, 40. Agencies, book. 111. insurance, 110. mercantile, 83. Agency, application for, 202. Agent, rights and duties of, 68. Agents, on employing, 84. Agreements, 229. with a clerk, 231. Alcoholic liquors, to be shunned, 48. Amusements, 49. Arithmetic, value of, 36, 294. shortest methods in, 293. Art studies, 130. Assignment, of collateral, 222. of a bond, 227. of patents, 274, 280. Astor, his independence, 30. Attorney, power of, 227. Authors' profits, 104, 106. Bacon, Lord, his remark, 28. Bank notes, 171. altered, 174. Banks, on doing business with, 262. ofBcers of, 264. savings, 159. 423 Barrel, weights of a, 341. Bills, of exchange, 216, 334 form of, 210. Bonds, judgment, 224. renewal of, 226. assignment or, 227. coupon, 148. judgment, 148. registered, 148. U. S. Government, 149. Boodle game, the, 177. Book agencies. 111. Book-keeping, 88. Books, list of, 421. the most successful, 105, 113. Bricklayers' work, 389. Bridges, construction of, 380. Brokers' terms, 167, 168. tricks, 183. Building Associations, 154. Bushel, weights of, 340. size of, 342. Business letters, how to write, 196. Business, choosing a, 53. on changing, 57. buying a, 64. good will of, 66. profits of, 67. luck in, 68. choice of place of, 77. Cfincelling, value of, 314. Capital, how to obtain, 96, INDEX. 425 Insurance, Life, 155. policies, 90. agencies, 110, Integrity, 44. Interest, rates of in different States, , 250. when it can fte collected, 261. time for which calculated, 316. short methods for computing, , 317. compound, 323. Investment, a good, 133. what one pays, 134. errors about, 135. in real estate, 138. in personal property, Hi, in railroads, 161. in stocks, 164. Judgment, defined, 222. notes, 223. bonds, 224, 227. Kerosene, to detect dangerons, 409. Kiting, 182. Land, on buying, 140. unimproved, 143. Government measure, 345. to measure without instruments, 364. . Leases,' points for tenant and owner, 238. form of,. 239. . ■ expiration of, 241. Letters, how to address, 197. model of, 200. of introduction, 201. should be copied, 207. rules for writing, 35. how to file, 89. Level, span and plumb, 376. Levelling, 378. Life Insurance, 155. Limited partnership, 64. Logarithms, advantage of, 37. Long division, short method of, 302. Luck in business, 68. McDonogh, his mottoes, 47, 71. Memory, how to improve, 31. Mensuration, rules in,, 357. Mercantile agencies, 83. Mining stock, 166. Monthly statements, 210. Mortgages, 145. second, 146. chattel, 147. Multiplication, short methods of, 298. Names, how to recall, 32. Notes, Promissory, 219. indorsement of, 220. joint, 220. with collateral security, 221. to calculate maturity of, 221, Judgment, 222. rules about, 266. Order, for goods, 203. forms for, 214. Painting and glazing, 393. Paintings, to restore, 402. Parchment paper, to make, 400. Partial payments,. 330. Partner, rights of, 61, 233. dormant, 63. special, 63. Partnership, notice of formation of, 203. notice of dissolution of, 205. on forming a, 60. limited, 64. articles of, 233. dissolution of, 205, 236. selling a, 236. Patent medicines, 113. 426 INDEX. Patents, on obtaining, 269. wliat may be patented, 270. who may obtain, 270. specification, 271, 277. drawing and models, 272, 278. sale of, 98, 280. value of, 99. how to sell, 100, 281. assignment of, 102, 280. Personal property, 144. Plan of a farm, to draw, 369. Plasterers' work, 391. Politics as a business, 118. Power of Attorney, 227. Profits of occupations, 116, 118. of professions, 116. of business, 67, 81. Profit and Loss, 329. Promissory Notes, 219. Protest, 219. Proxy, form of, to rote, 229. Punctuality, 42. Punctuation, 35. Railroad securities, 161. Keal estate, Inrestments in, 138. improved, 141. Receipts, 211. Reissues of a patent, 275. Remitting money, 85. Road mailing, 379. Rope measure, 346. Royalty on patents, 101. on booiss, 104. Ruleof Three, 312. Savings Baniss, 159. Schools of design, 129. Secrecy, 40. Secret societies, 50. Security, on going, 87. Servants, how to treat, 125. Situation, how to get, 64. Slaters' work, 392. Special partnership, 64. Specialty, value of, 55. Speculation in stocks, 167, 183, 193. Spelling, 35. Statute of Limitation, 212. Stock companies, 163, 167, 183. Stocks and Bonds, calculations about, .S28. Stocks, tricks with, 183. Stonemasons' work, 388. Stream, to find the width of, 371. amount of water in, 380. Surliness, folly of, 43. Swindles, 186. Temperance requisite, 48. Timber measure, 382. Tobacco, use of, 49. Ton, the freight, 353. Total abstinence, 48. Trade marks, 285. Translations, value of, 107. Usury laws in different States, 250. Vanierbilt, his motto, 40. Wages, 331. Warranties, forms of, 236. Warranty of a horse, 237. Waterproofing paper, garments, etc., 404, 496. Wealth, the secret of, 46. Weights and measures, tables of, 339, 352. Whitewash, a permanent, 405. Wills, form of, 246. codicil to, 247. verbal, 247. Women, education of, 121. ignorance of, 126. employments for, 127. nro thi'v extravagant? 182.