c. If the exchange for collection was %, what were the net proceeds of the draft? 5. Find the net proceeds of the following draft on the day of acceptance, computing discount at 5% per annum and exchange at 1%. 6. Find the net proceeds of a draft for $1440 payable 60 days after date, the rate of discount being 7% per annum, the day of discount thirty days after date, and the exchange %. 7. The net proceeds of a 60-day draft discounted at 6% on the day of date, exchange at %, were $1977.50. What was the face of the draft? EXCHANGE BY POSTAL MONEY ORDER The Post Office Department offers a convenient method of exchange, for small amounts, in the form of postal money orders. 412. A postal money order is a written agreement, signed by the postmaster of a certain post office, that the postmaster of another post office will pay a specified sum of money to the person named in the order. The following form shows the essential parts of a Postal Money Order [Name of office issuing the order] NO. DATE THE POSTMASTER AT [Name of office on which order is drawn] 413. These orders may be purchased at any money order post office. All except the smaller village and rural post offices are money order offices. The purchaser (called "the remitter,” in the order) incloses the order in an envelope, and mails it to the payee named in the order. The payee takes it to the post office named in the order, where he receives in cash the face value of the order. All money order offices sell postal money orders (for amounts not exceeding $100), payable at money order offices in this country or in foreign countries. The following table shows the fees that must be paid, in addition to the face, for postal money orders payable in the United States: 30% Over 75.00 and not exceeding 100.00 Fees for foreign orders are about three times as great as for domestic, ranging from 10% to $1.00. 414. Oral Using the table of rates on page 236, 1. Find the total cost of a postal money order for 2. Find the cost of two postal money orders which, together, will pay a bill of $137.55 at Wanamaker's store in Philadelphia. 3. Find the cost of postal money orders sufficient to pay a bill of $500. Make and solve other problems. EXCHANGE BY EXPRESS MONEY ORDER 415. An express money order is a written agreement by an express company to pay to the order of a person named in the order a specified sum of money. The following is the usual form: NOT PAYABLE FOR MORE THAN FIVE DOLLARS C. E. WhiteES TO ISS Prester STATE OF DATE, FEB. 21 1908 NAME OF REMITTER. TREASUREM B.M. Wilson ANY ERASURE, ALTERATION, DEFACEMENT OR MUTILATION OF THIS ORDER RENDERS IT VOID, The fee is the same as that for issuing a postal money order for the same amount. It is called the exchange for issuing the order. 416. An express money order is negotiable and can be transferred by indorsement, like a check or bank draft. 417. An express money order, issued by any express company, will be cashed for its full face value at any of the company's offices in this country, or by any other express company, or by any bank. 418. Oral 1. Name two similarities between the method of exchange by express money order and that by postal money order. 2. Name two differences. 3. What must be paid in Latrobe, Pa., for an express money order large enough to pay a bill of $27.27 in Los Angeles, Cal.? Make and solve other problems. EXCHANGE BY TELEGRAPH MONEY ORDER 419.. Exchange by telegraph money order is more expensive than that by express or postal money order. It is used only in cases of emergency, when credits must be transmitted without loss of time, so that money paid in one place may be instantly available in another place at some distance from the first. The method by which this form of exchange is made is as follows: The person desiring to remit money goes to a telegraph office and pays the money to the person who attends to that branch of the business. A message is then sent, directing the telegraph office, at the place where the money is wanted, to pay the amount to the person designated. Before receiv ing the money, that person is required to satisfy the representatives of the telegraph company, by identification or otherwise, that he is the person to whom the money is directed to be paid. 420. The present rate for telegraph money orders is twice the cost of a ten-word message, plus one per cent of the amount of the order. If the amount of the order is less than $25, the fee is the same as if the order were for $25. 421. Oral 1. What is the cost in Syracuse, N. Y., of a telegraph money order for $75, payable in Atlanta, Ga., the cost of a ten-word message being 60%? 2. What is the cost in Scranton, Pa., of a telegraph money order for $50, payable in San Francisco, the rate for a tenword message being $1.00? 3. What is the cost in Utica of a telegraph money order for $100, payable in Harrisburg, Pa., the rate for a ten-word message being 40%? Make and solve other problems. FOREIGN EXCHANGE 422. Exchange between places in different countries is foreign exchange. 423. The principal gold coin of Great Britain is the sovereign, equal to £1. It is equiva lent to $4.8665. Which of our coins is most nearly like the sovereign? The shilling is a silver coin. equal to of a pound, ster SOVEREIGN FIVE DOLLARS |