CHAPTER IX

MONEY AND BANKING

Many of the problems which you have solved thus far have dealt with values expressed in dollars and cents, or, in other words, in monetary units. You will now have an opportunity to learn more about money itself and those things which represent money.

Money is a standard of value and a medium of exchange. 1. Name some materials which were used as money in the past.

2. A $10 gold piece is called an eagle. What is a double eagle? A half eagle? A quarter eagle?

3. The $10 gold piece weighs 258 grains. The other gold coins have a proportionate weight. Find the weight of a half eagle, of a double eagle.

4. Gold coins are 90% pure gold and 10% copper, which is called an alloy. How many grains of pure gold in each of our coins?

5. Name the silver coins.

6. The silver dollar weighs 412.5 grains. It is 90% pure silver and 10% copper. How many grains of silver in a silver dollar?

7. The nickel is 75% copper and 25% nickel. Why not call it a copper?

8. What is bullion?

9. How does the Government acquire the gold and silver which are coined into money?

10. Bar silver (bullion) sold in New York November 23, 1920, at 99¢ an ounce (437 grains). What was the silver in a silver dollar worth on that day?

11. Consult the newspaper on the day you are studying this page for the price of silver and compute the value of the silver in a silver dollar.

12. What is the price of silver per ounce when the silver in a dollar is worth exactly 100¢?

13. The following were the prices of silver per ounce in New York City on the dates named: 11/10/'08, (Read Nov. 10, 1908), 493; 10/21/'12, 631; 10/17/'13, 611; 10/25/'15, 487; 10/25/'17, 821¢; 3/23/'18, 927; 10/20/'19, $1.18; 11/23/20, 99.

Make a line graph showing the fluctuation (change in price) from 1908 to 1920.

14. What is a mint?

15. The letter D is found beneath the feet of the eagle on certain gold coins. What does D stand for?

16. Examine dimes, quarters, and other coins for the letter D or some other letter and tell what each represents. 17. Coins which have no letter on them are made in the Philadelphia mint.

18. Mills are not coined. They are used in computing, as in the problem, "Find the cost of 10 lb. of potatoes at $.033 per lb."

19. The paper money of a country is called its currency. What gives value to paper money?

20. Name the different kinds of paper money in common circulation in this country.

21. Read a United States note (greenback-our oldest paper money); then read a Federal Reserve note (our youngest paper money). How are the two alike? How are they different?

22. Read a silver certificate and, if possible, a gold certificate. How are they alike? How do they differ? Why does one not see much gold coin in circulation?

23. What is meant when we say, "A man's credit is good"?

24. How may a check which you sign pay several debts before the bank on which it is drawn marks it paid? 25. Is a check money? How does it accomplish the work of money?

26. Does a check represent money?

27. The total amount of money in the United States in 1919 was $7,662,893,238. The total bank deposits in round numbers in the same year were $22,000,000,000.

DOING BUSINESS AT THE BANK

Banks and Banking

105

A bank is an institution which deals in money and credit. Banks receive money and credit for deposit; they loan money; they buy and sell notes; they make the transfer of credit easy. Some banks also issue money.

How to Open an Account

If you are a stranger to the bank, it is customary to require an introduction or some other form of identification. The banker gives you a signature card on which you must write your address and your name exactly as you wish to sign it on checks. The banker then gives you a pass book and a check book.

The Pass Book

This is a small book in which the bank writes your deposit and its date. It also contains a statement of the condition of your account at the time it is balanced. For this reason the pass book should be presented when a deposit is made and when you wish your account balanced.

Interest on Checking Accounts

Some banks allow a low rate of interest (2% or 3%) on the checking account whenever the daily balance is $500 or more. Other banks allow a low rate of interest on the daily balance. Some banks pay no interest on deposits. Other banks make a slight charge for keeping a small account.

you have forgotten your pass book, make two deposit slips exactly alike. The banker marks one "duplicate" and returns it to you. This duplicate should be presented for entry the next time you have the pass book with you.

How to Draw on Your Checking Account

Fill out properly a blank check. This check may be made payable to yourself, to cash, or to the order of some other person or firm to whom you wish to make a payment. A check should be made payable to cash when you draw the money in person. At the time of writing the check, fill out the stub to keep track of your account.