To manipulate prices up beyond legitimate values, to unsafe limits; in excess of intrinsic worth.

Bonds issued by a municipality to encourage the building of a railroad or some manufacturing industry, for more information regarding which, turn to Railroad Aid Bonds. They are not considered a desirable investment.

In reference to the currency question, the free coinage and use of both gold and silver as legal tender to any amount at a standard of value established by law, is known as bimetallism; the system of coinage by which both gold and silver coins (or any two metals) are recognized as legal tender to any amount.

Those whose interests lie in the direction of an advance in price of one or several securities, or market prices in general, and who unite in mutual efforts to obtain such a result. A bull clique in Union Pacific, for instance, is a combination formed to effect an advance in price of Union Pacific Common Stock. (See Clique.)

In order that corporations, especially the larger ones, may pay a dividend, it is necessary to fix an interval of one or more day’s duration, during which it is possible to make a correct list of the stockholders as shown by the transfer books, so that the dividends may be sent to the stockholders as of record the date provided for in the vote passed declaring the dividend. It is desirable that no stock _

The fixed indebtedness of a municipality or incorporated company in the form of bonds. (See Bond.) The question of the amount of bonded indebtedness fair to place upon property, fair to both the shareholders and bondholders, is a question deserving of much serious consideration. There is a general belief that the property of a corporation should only be mortgaged to the extent of its unchangeable value; that is, the minimum value of such property, as generally recognized, in a time of public adversity. Mortgaging a property to this extent would leave the shareholders to take the risk of the fluctuating value, and it is proper that they should do so, for, as a rule, the bonds on a property are expected to pay a lesser rate of interest than the dividend return to the shareholders. It is impossible to give any set rules here: each case will have to be judged upon its own merits. The amount of sinking fund must be taken into consideration, also the kind of property mortgaged. For instance, some properties depreciate through wear and tear much faster than others

Another name for the standard silver dollar, but uncommonly so.

(First read Bear.) All those who are interested on the bear side of a particular security, or of the market in general.

(First read Bull.) All those who are interested on the bull side of a particular security, or of the market in general.

A day, other than Sunday, in Great Britain, upon which all negotiable paper may not be presented or paid; banks are closed. In England, for example, Easter Monday, Whit Monday, and others are bankholidays.

(Read first part of Pool.) A pool in which the members buy or sell independently of one another, and not through one member. John Moody defines it as an informal pool in stocks, in which the members join together to move the stock either up or down, and then each is usually allowed to suit his own pleasure in closing out his interest.

An order given to a broker to buy a certain security, either with or without limit as to price as the case may be. An order to buy is good for the date for which it is given only unless otherwise specified. Sometimes an order is given good until countermanded, or good until cancelled, by which the broker understands there is no definite limit as to time; but brokers usually remind their customers at frequent intervals regarding the orders to be sure that they wish them to still remain in force.

During the autumn of 1890, when speculation on the London Stock Exchange was running riot, principally in regard to securities of the Argentine Republic, including not only the national obligations, but municipal loans and investments in commercial enterprises, a cloud began to appear in the financial sky. The great banking bouse of Baring Bros, was on the edge of collapse. The failure of that great firm of bankers would undoubtedly take down with it many other moneyed institutions, and such a disaster in London’s financial centre would carry untold misery to the rest of the financial world. The forerunner of impending disaster was already beginning to be felt and the feeling that the world’s finances were standing on the brink of disaster was apparent everywhere. The actual realization, however, was averted by a heroic effort on the part of the Governor of the Bank of England, who obtained a loan of gold from the Bank of France, and St. Petersburg, against which an issue of paper money was aiade by the Bank of England to temporarily accommodate the public. He also persuaded many of the leading bankers of London to unite and subscribe a large guarantee fund, so the total assets of the Baring Bros, were taken over, and liquidated by the Bank of England, and a large surplus eventually returned to that firm. Therefore, by a wise and prompt action on the part of Mr. Lidderdale, then the Governor of the Bank of England, a world panic was prevented.

For the benefit of those who have had no experience, and who desire to open a bank or trust company account against which to draw checks, a few suggestions are here given: Select your bank; find out the minimum sum of money which it will receive on deposit. If you have it, well and good. Then secure an introduction to some one of the bank’s officers. State to him

(See Margin, which read first.) Bucket shops are run by irresponsible brokers, not members of any stock exchange, and who do a marginal business upon one dollar a share and upwards.3 As a matter of fact, in the case of a bucket shop, the stock itself is usually not purchased or sold for the customer. It the order is actually executed upon a bona fida exchange, then the bucket shop puts in a contrary order for a like amount. For example, a bucket shop would sell an amount equivalent to the customer’s purchase, or, likewise, purchase an equiyalent amount to his sale, thus in no event carrying stocks. It amounts to the customer wagering his money upon a given stock either going up or down, and the bucket shop, accepting his wager, gambles the other way; and, in the long run, they, like most other gambling establishments, come out winners. A specific example would be for a person having about $10 to go into a place and buy, say, ten shares of stock, with the anticipation of a rise. He will be charged the buying and selling commission, and interest on the account, the same as in a legitimate broker’s office, although no stock will be actually purchased or sold. If the stock goes down more than his dollar margin, unless he puts up more money to protect himself, he will be sold out and the transaction closed, and he will have incurred a loss. If it goes up and he chooses to sell, he will be paid the difference between the buying and selling values of the stock, less the two commissions, and interest on the account, plus his dollar per share originally deposited. In this event the bucket shop is the loser for the amount the stock has advanced less the two commissions and interest, unless, by chance, they feared that the stock might advance and to protect themselves had actually purchased. In that case they, in turn, would have had to pay a commission to a legitimate broker. Bear in mind one thing all the time; that the quotations of the legitimate stock exchange are followed in the bucket shops. Stock exchanges have made strenuous efforts to prevent the installation of tickers in concerns of this kind, for if it were not possible for these establishments to get the stock exchange quotations, it would be difficult for them to exist. The curse of this sort of business is that it attracts men and women of very small means, often office boys and the like. It is one of the worst forms of stock gambling known and has done untold injury. The majority of bucket shops will advertise that stock can be actually delivered, but as nobody calls for delivery, except in rare cases, they can afford to purchase the stock through genuine brokers to fill the demand of such rare occasions. Bucket shops thrive best on a declining market, for it is natural for the average person to buy stocks in anticipation of their advance in value; or, in other words, the majority of customers wager that stocks will go up. Therefore, a falling market causes the bucket shop to win more of its wagers than a rising market. The magnitude and power of this unwholesome business, centring in New York, is emphasized by the knowledge that at times the daily transactions are almost as large as that reported on the New York Exchange itself. The impression is growing that a large percentage of this business is in the control of a few unscrupulous men commanding enormous financial resources. Under their management the tentacles of this business are reaching out over the country in the shape of branch offices, from which points orders are received at the common centre. Suppose, for example, one of these heavily financially backed concerns finds that it has orders to buy a very large number of shares of a given stock. Technically, they are short of that stock. It is perfectly feasible for them to go into the market and offer a large block of the same stock for sale, and break the price sufficiently to wipe out all the margins on orders in hand. Stratagems of this kind must ,be done by the bucket shop indirectly, as legitimate stock exchanges do not countenance members accepting orders directly from bucket shops.

This is occasionally used in the same sense as the gold import point or the gold export point.

An organized attempt to force up the prices of one or more stocks for the purpose of selling out on the advance.

Simple interest paid the lender of money in advance, the sum being reckoned upon the face value of the note or other obligation.

Ports of the Baltic Sea from which most of the Russian wheat was formerly snipped. This is now to a great extent accomplished through the Black Sea ports.

By this heading the wherewithal for the business of banking is understood, meaning the capital, deposits, surplus, undivided profits, -outstanding bank notes, etc.

The commercial value of the precious metals as distinguished from the face value of coined money. If a gold five-dollar piece has been reduced in weight, by wear, so as to contain but $4.75 worth of fine gold, the latter is its bullion value.

(First read Deed of Transfer.) When a transfer deed is not delivered to the buyer by a certain time, his broker may proceed to buy-in the security as described under Hammered. The one who has failed to deliver the deed must bear any loss which his neglect has occasioned. The day on which this class of buying-in takes place is usually the tenth day after pay-day (see that subject) in each account, and is called buying-in day.

A person’s bills payable are all his unpaid evidences of indebtedness, such as notes, acceptances, etc., held by others against him. (See Accounts Payable and Notes Payable.) They are bills payable from the standpoint of the person owing them and bills receivable from the standpoint of those to whom they are due. The distinction between bills payable and receivable and notes payable and receivable is that in the former case they represent indebtedness due or receivable for goods bought or sold or services rendered, whereas they become notes payable or notes receivable when, instead of payment in cash being made for the sum due, a note or other formal instrument of indebtedness is given in lieu thereof. Notes payable or notes receivable would also include evidences of indebtedness for money in the direct form of loans.

Friday. September 24, 1869. One of the greatest convulsions of the many that Wall Street has experienced. Jay Gould and his partner, James Fisk, had engineered a bull movement in gold which had advanced to 162

A corporation which undertakes the care of money The moat ancient bank is supposed to have been established in Venice J 1157. (See The History and Principles of Banking by James William Gilbart.) Other writers give this date as late as 1171. The first banks were hardly more than agencies for concentrating and managing the loans of the governments, and as such had their origin in for other corporations, firms, or individuals, called its depositors, this money always being subject to the written order of those making the deposit, either to be repaid to them or to others as appears in the orders, called drafts, checks, etc. Interest may or may not be allowed the depositor for the use of the money, according to the nature of the bank, and the agreement made with each depositing party. Banks must make use of money entrusted to their care so as, in turn, to make it earn enough not only to defray their own expenses, but to pay the depositors such rates of I interest as may be agreed upon. To do this, banks are authorized to reloan this money; to collect drafts, notes, and other claims for which they may make charges. Banks are of several kinds, each having its own peculiar function, according to the National or State laws under which it acts. (See National Bank, Savings Bank, Bank of Deposit, State Bank, and Trust Company.)