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What is the cash balance of the above account on Oct. 1, 1864?

350. AVERAGING ACCOUNTS BY THE METHOD OF DAILY BALANCES.

What is the cash balance of the following account, June 15, 1868 ?

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Date.

1868.

MODEL OPERATION.

NASH BROS. In Account with AYRES & Co., to June 15, 1868.

Dr.

Cr. Dr. Da. bal. Cr. Days Dr. Prod Da. bal. Cr.

Jan. 7 By mdse.,

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66 17 66

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(a.) FORM.-1. Jan. 7, is found a credit balance of $1000, and the interest to the date of the new transaction, Jan. 17, (10 days), is equal to the interest of

$10000 for 1 day. Jan. 17 is a credit item of $250, which added to the previous balance, makes a credit balance of $1250 for 7 days, equal to $8750 for 1 day. Jan. 24 is a debit item of $1500, which less the credit balance, $1250, leaves a debit balance of $250 for 7 days, equal to $1750 for 1 day, etc. [In the same manner trace the several items and balances.]

2. Since the interest on $6 for 1 day is 1 mill, the interest on the balance of the product of balances, $30758.70, is as many mills as $6 is contained times in $30758, which is 5126 mills, equal to $5.126, which balance of interest added to the total amount of debit items, make $3775.13.

3. The balance of the account, June 15, 1868, is $154.43.

(b.) Rule.-Multiply the balance existing at any time by the number of dags it remains unchanged.

351. Money is value, or the representative of value, used for the purposes of exchange. In different countries, at different times, various articles have been used for money, such as oxen, pieces of leather stamped, shells, wampum, iron, nails, etc. Gold and silver, at present, are used almost exclusively for money. They are called precious metals.

352. Paper money is a substitute for coin.

353. Uncoined gold and silver is called bullion.

354. Coin is a piece of metal of known weight used for money, the value of which is stamped on it.

355. Currency is the money of circulation.

356. Tokens are coins whose intrinsic value is below that assigned them by law. Such coins are said to be coins in billon.

U. S. BONDS.

357. Interest is calculated on U. S. bonds, and on the public debt at 365 days to the year, and is due semi-annually. In England interest is calculated in the same way, and the legal rate is 5 %.

358. By Five-Twenties is meant the 6% gold-bearing bonds of the United States, which are to mature in 20 years, but which the Government, by giving due notice, can pay in gold any time after five years from the date of issue.

359. The Old Five-Twenties were the first issued. They bear date May 1, 1862, and are redeemable after May 1, 1867, and payable May 1, 1882. The new "five-twenties" were issued Nov. 1, 1864, July 1, 1865, and Nov. 1, 1865.

1360. By Ten-Forties is meant the %% gold-bearing bonds which are to mature in 40 years, but which may be paid by the Government at any time after 10 years.

361. By Seven-Thirties is meant a currency loan, which matures in 3 years, at which time they may be changed for the five-twenty 6 % bonds, bearing interest in gold. The name is derived from the rate of interest, it being 7.3%. The "First series" bear date Aug. 15, 1864. The "Second series " bear date June 15, 1865, and are convertible June 15, 1868. The "Third series" bear date July 5, 1865. On this issue the Government reserves the right to pay the interest at 6 % in gold, instead of 7.30 % in currency.

362. By Six per cents. of '81 is meant the 6% gold-bearing bonds, which cannot be redeemed by Government, except by purchase, until after maturity.

(a.) Greenbacks and Legal-Tenders can be converted at any time into U. S. bonds.

ENGLISH BONDS AND CONSOLS.

363. Exchequer Bills are English bonds, similar to those of the U. S. The rates of interest vary from 5 to 3 %, and while the Government pays the interest, it cannot be required to refund the principal.

364. Consols are several English securities consolidated by act of Parliament. The rate of interest is 3 %.

365. The Stock Exchange is an association for the purpose of buying and selling stocks.

366. A Broker is a person who executes orders for those who are not members of the exchange.

367. A Jobber deals is stock on his own account. A "stag," or outsider," is a broker who is not a member of the exchange.

368. A Bull is one who buys stock to be delivered to him at a future time, with the intention of selling it, in the meantime, at a higher price before he is obliged to receive it.

369. A Bear is one who sells stock that he does not own, to be delivered at a future date, hoping in the meantime to buy it at a less price. A “lame duck" is one who is unable to fulfil his contracts, and hence is expelled from the exchange.

370. "Selling Short" is applied to sales of stock which the seller does not own, deliverable at a future time, generally not exceeding 60 days. The bears usually" sell short." The buyer pays interest for over 3 days.

371. “Seller's Option " gives the seller the privilege of delivering the stock at any time before the time specified for delivery.

372. “Buyer's Option " gives the purchaser the privilege of claiming the delivery of the stock at any time before the time specified for delivery.

373. Stock Quotations,

Sales.

12000 Am. G.......

From N. Y. Tribune.

112

143

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$12000 gold at 434% premium.
$12000 U. S. 6% coupon bonds, matur-
ing 1881, at 124 % premium.

U. S. 5-20 Registered Bonds issued in
1862.

Treasury notes at 7.3% interest, second series.

100 Shares of New York Central RR. 7% bonds issued in 1865, and maturing in 1876.

Hudson R. 7% first mortgage bonds.
Hudson R. 7% second mortgage sink-
ing fund.

Erie RR. sold at 2 days' credit at 51
cents per dollar.

Erie RR. to be delivered before 5
days without notice.

Camden and Amboy 6 % maturing in
1889.

Mich. Cent. RR. Stock to be deliver-
ed before 15 days with interest.
in February and August.
U.S. Treasury notes 7.3% interest paid

Erie Preferred Stock without notice.
Pennsylvania 6% stock, the last in-
terest of which has been paid.
Erie RR. stock "Buyer's Option,"
when to call for the stock.
Erie RR. stock "Sellers Option,"
when to deliver the stock

30. What will be the cost of 200 shares of Camden and Amboy 6 % bonds at% brokerage, and the revenue of 1 % on sale?

31. A man bought 30 shares of RR. stock at 95 %; at the end of six months a dividend of 3 % was declared; what per cent. did he receive for his money if he paid his broker % for buying, including stamps?

SUCCESS IN BUSINESS.

374. Short Credits.-Short credits have much to do with the amount of profits in business. The difference between long and short credits will be seen by the following table, showing the amount of $100 in ten years.

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375. Small Profits. By the above table it will be seen that quick sales and small profits are more desirable than large profits and long credits. It must be considered, however, before reducing profits, whether the sales can be increased so as to compensate for the reduction of profits.

376. Economy in Expense.—Many a young man in business fails to succeed, owing to a want of economy in expense. All expense must be deducted from the profits. "Fortunes are spent by trifles." "A penny saved

is worth two earned."

2 cents per day in ten years will amount to $100.85 at 7% compound int.

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377. Cash vs. Credit.-It is better to do a small business with a cash capital than a large business on credit. It is better to borrow cash to use in a business than to do a business on credit.

378. Marking Goods. It is customary among merchants to use a private mark to denote the cost and selling price of goods. Any word or phrase containing ten different letters is selected, and used to represent "White sugar,' figures, as Misfortune," etc., thus:

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An extra letter called a "repeater" is generally used to prevent the repetition of a figure, as x, y, or z, etc.; thus 388 would be represented igz, using z as a repeater instead of igg. The object is to prevent a clue being given to the key word. Any mark or character may be used to represent a

figure instead of a letter. an arbitrary mark, thus, the cost mark is written

h

Fractions may be written thus, 473=tui- or by

may represent, then 4733-tui. Sometimes below a line, and the selling price above; thus, 4.62 tsh sell. pr.

3.24 iht cost.

379. Account of Stock.-In estimating the value of goods remaining unsold, it is customary to use the invoice or purchase price, or what it would cost to replace the goods. The cost of goods consists of the price paid, and all charges, as commissions, duties, packing, insurance, etc.

380. Practical Maxims.—Keep accurate accounts, that the exact condition of the business may be known at any time. Never contract a debt when the means to pay it when due is not within control. Never pay more than legal interest, for no legitimate business will admit of it. Risk nothing in speculation; the chances are against success. Goods well bought are half sold. Goods unsold are better than bad debts.

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