b. Find the net total of the tax budget. c. Find the tax rate, correct to four places of decimals, the assessed valuation of the real property in the city being $89,000,000 and of the personal property $9,000,000. d. Find the amount of A's city tax on $15,000 of personal property and $ 5000 of real property. e. In this city the county and state taxes are paid together, and the rate is .00363682. What is A's county and state tax? f. Mr. B's county and state taxes, computed by the above rate, amount to $65.46276. He pays $65.47. What is the valuation of his property? g. Mr. C owns two pieces of property in this city, one valued at $600 and the other at $3200. What is the entire amount of his city, county, and state taxes? 2. The valuation of property in a certain town is $ 1,500,000, and the rate is %. What is the tax? 3. The tax to be raised in a certain village is $ 37,500. The valuation of the taxable property is $2,500,000. a. What is the rate? b. What will be A's tax on $15,000 real estate, and $3000 personal property? c. What is the valuation of property on which the tax is $37.50? 4. The property of a town is assessed at $1,250,000. The tax to be raised is $15,975. There are 650 polls, assessed at $1.50 each. What is B's entire tax, if his property is assessed at $2500, and he pays the poll-tax? 5. The officers of a town find that all the town expenses for a year will amount to $46,000. The tax-roll shows real estate valued at $2,000,000, and personal property at $300,000. What is the tax rate? 6. The tax rate in a certain city for the year 1906 was $16.84 per $1000 of assessment. The city treasurer began to receive taxes October 1, and taxpayers who failed to pay before the 1st of November had a one-per-cent fee added to their tax bills. What was the tax bill of Mr. K, whose property was assessed at $7500 and who paid his taxes on the 5th of November? 7. If the assessed valuation of a village is $2,384,564, and there are 750 polls taxed $1.50 each, what must be the rate of taxation to meet an expense of $29,807.05? 8. A sewer was built in a street 980 feet long, at a cost of $1999.20, the expense being assessed to the owners of property on each side of the street, according to the number of feet of frontage they owned; that is, the number of feet their land extended along the street. a. What was the total frontage on both sides of the street? b. What was the rate per front foot? c. What was the sewer tax of Mr. M, who owned one lot 4 rods wide and another 50 feet wide? EXCHANGE 393. A draft is a written order for the payment of money, made in one place and payable in another. 394. A bank draft is an order made by a bank in one place, directing a bank in a different place, with which the drawer has funds on deposit, to pay a specified sum of money to some person, or to his order, or to the bearer. 395. The party who draws a draft is the drawer; the party to whom the order is addressed is the drawee; the party to whom a draft is payable is the payee; the face of a draft is the sum ordered to be paid. The State Bank of ||tah Ne34397 $100 Salt Lake City Pay kotheendor of Stawy L-Fowler One hundred no 100 TO THE NATIONAL PARK BANK, NEW YORK CITY, N. Y. Indorsement Pay to the order of Henry L. Fowler A Bank Draft asit Cashier In the draft given above, the drawer is the State Bank of Utah, of which Henry T. McEwan is assistant cashier; the drawee is the National Park Bank of New York, and the payee is Henry L. Fowler. The face of the draft is $100. Observe that a bank draft is like an ordinary check, except that both the drawer and the drawee are banks, and that their places of business are in different cities or villages. A bank draft is sometimes called a bank check, because, like an ordinary check, it is an order drawn by one party upon another party, with whom the first party has funds deposited. The 396. By means of drafts, payments may be made between different places without actually sending the money. method of making such payments is as follows: Let us suppose that Henry L. Fowler, in Salt Lake City, desires to send to Charles Bryant, at Portland, Me., $100. He goes to the State Bank of Utah, in Salt Lake City, and says to the teller or other person who waits upon him, "I wish to buy a New York draft for $100, payable to the order of Henry L. Fowler." (Some banks require the purchaser of a draft to fill out a slip with the name of the payee and the amount of the draft.) The teller then fills out and hands to Mr. Fowler the draft (page 227), for which Mr. Fowler pays $100 plus a small fee to pay the bank for its services. This fee is called the exchange. The exchange is sometimes computed at a certain per cent of the face of the draft. It seldom exceeds %. Banks often sell drafts to their depositors and customers with no charge for exchange. Mr. Fowler indorses the draft as indicated above, incloses it with a letter, and mails it to Mr. Bryant, who takes it to a bank in Portland, indorses it in blank, and receives $100 for it. The transaction is complete so far as Mr. Fowler and Mr. Bryant are concerned. Let us now study the transaction between the banks. Every bank of importance has money on deposit in some bank, called its correspondent, in one or more of the great money centers of the country. The National Park Bank is the correspondent of the State Bank of Utah. The bank which cashes the check for Mr. Bryant in Portland, charges $100 to its correspondent in New York and sends the draft to its correspondent. The correspondent presents the draft to the National Park Bank (through the clearing-house), which pays $100 and charges the amount to the State Bank of Utah. Each of the banks has now received and paid out $100 in cash or credit; Mr. Fowler, in Salt Lake City, has paid out $100, and Mr. Bryant, in Portland, has received $100; and yet no money has actually been transferred from one city to the other. Whenever the State Bank of Utah cashes a New York draft, it sends the draft to its correspondent in New York and receives credit for it, which is the same as sending the money received for drafts which it has sold. 397. In New York, and every other large city, many checks and drafts are received by one bank, payable by other banks in the city. For the sake of convenience, all these checks and drafts are sent by the different banks to one place, called the clearing-house, where they are classified and sent to the banks. to which they should go, and balances are settled. 398. Making payments by means of drafts or money orders is exchange. It is really an exchange of credits. 399. Exchange between places in the same country is domestic exchange. The exchange business of the Middle West is largely carried on through Chicago and St. Louis banks. A similar exchange business is conducted between every great money center and the surrounding section. But the great exchange center of the United States is New York, which is sometimes called the country's clearing-house. 400. It sometimes happens that banks in one city have large sums on deposit with banks in another city, and need currency for immediate use. They may then sell drafts at a discount from their face value in order to get the money at once. When the balance is against them, they may sell drafts at a premium, which is a certain per cent above their face value. 401. Personal checks are used, like drafts, in making payments at a distance, and a small fee for collection is charged by the banks. 402. Oral and Written 1. Mr. William Harris, in South Bend, Ind., desires to send $200 to his nephew Arthur Otis, who is in college in New |