224. In the sale of goods, knowing the per cent of gain, and the amount received, to find the principal or

cost.

I sold a parcel of goods for $195,50, on which I made 15 per cent: what did they cost me?

It is evident that the cost added to 15 hundredths of the cost will be equal to what the goods brought, viz., $195,50. If we call the cost 1, then 1 plus

cost will be equal to what they bring: that is,

1+15=115=$195,50;

or, cost equals $195,50 × 100÷115=$170.

Hence, to find the cost,

of the

Multiply the amount by 100 and divide the product by 100 plus the per cent of gain, and the quotient will be the

cost.

225. When there is a loss, we have the following method:

If I sell a parcel of goods for $170, by which I lose 15 per cent, what did they cost?

It is evident that the cost, less 15 per cent, that is, less 15 hundredths of the cost, is equal to $170. Hence, 85 hundredths of the cost is equal to $170; and consequently, the cost is equal to

$170 × 100-85-$200 cost.

Hence, to find the cost when there is a loss,

Multiply the amount received by 100 and divide the product by the difference between 100 and the per cent lost, and the quotient will be the cost.

EXAMPLES.

1. Bought a quantity of wine at $1,25 per gallon, but it proves to be bad and am obliged to sell it at 20 per cent less than I gave: how much must I sell it for per gallon? Ans. $1 per gallon.

224. Knowing the per cent of gain and the amount received, how do you find the cost?

225. Knowing the per cent and the amount lost, how do you find the cost?

2. A farmer sells 125 bushels of corn for 75cts. per Dushel; the purchaser sells it at an advance of 20 per cent: how much did he receive for the corn?

3. A merchant buys one tun of wine for which he pays $725, and wishes to sell it by the hogshead at an advance of 15 per cent: what must he charge per hogshead? Ans. $208,43+.

4. A merchant buys 158 yards of calico for which he pays 20 cents per yard; one-half is so damaged that he is obliged to sell it at a loss of 6 per cent; the remainder he sells at an advance of 19 per cent: how much did he gain? Ans. $2,05+. 5. If I buy coffee at 16 cents and sell it at 20 cents, how much do I make per cent on the money paid? Ans. 25 per cent. 6. If I buy tea at 4s. per pound and sell it at 4s. 9d. per pound, how much should I gain on a purchase of £100? Ans.

7. A merchant bought 650 pounds of cheese at 10 cents per pound, and sold it at 12 cents per pound: how much did he gain on the whole, and how much per cent on the money laid out? S whole gain $13,00; Ans. gain 20 per cent.

8. Bought cloth at $1,25 per yard, which proving bad, I wish to sell it at a loss of 18 per cent: how much must I ask per yard?

Ans.

9. Bought 50 gallons of molasses at 75 cents a gallon, 10 gallons of which leaked out. At what price per gallon must the remainder be sold that I may clear 10 per cent on the cost? Ans. $1,0314. 10. Bought a cow for $30 cash, and sold her for $35 at a credit of 8 months: reckoning the interest at 6 per cent, how much did I gain?

Ans.

11. Bought 67 yards of cloth for $112, but 19 yards being spoiled, I am willing to lose 5 per cent: how much must I sell it for per yard? Ans. $2,216.

12. Bought 67 yards of cloth for $112, but a number of yards being spoiled, I sell the remainder at $2,216 per yard, and lose 5 per cent: how many yards were spoiled?

Ans.

BANKING.

226. Banks are corporations created by law for the purpose of receiving deposites, loaning money, and fur-, nishing a paper circulation represented by specie.

The notes made by a bank circulate as money, because they are payable in specie on presentation at the bank. They are called bank notes, or bank bills.

227. The note of an individual, or as it is generally called, a promissory note or note of hand, is a positive engagement, in writing, to pay a given sum at a time specified, and to a person named in the note, or to his order, or sometimes to the bearer at large.

No. 1. $25,50.

FORMS OF NOTES.

Negotiable Note.

Providence, May 1, 1846. For value received I promise to pay on demand, to Abel Bond, or order, twenty-five dollars and fifty cents.

No 2. $875,39.

REUBEN HOLMES.

Note Payable to Bearer.

St. Louis, May 1, 1845.

For value received I promise to pay, six months after date, to John Johns, or bearer, eight hundred and seventy-five dollars and thirty-nine cents.

No. 3.

$659,27.

PIERCE PENNY.

Note by two Persons.

Buffalo, June 2, 1846.

For value received we, jointly and severally, promise to pay to Richard Ricks, or order, on demand, six hundred and fifty-nine dollars and twenty-seven cents.

ENOS ALLAN.
JOHN ALLAN.

226. What are banks? Why do the notes of a bank circulate as

money? What are they called?

227. What is a promissory note?

No. 4. $20,25.

Note Payable at a Bank,

α

Chicago, May 7, 1846.

Sixty days after date, I promise to pay John Anderson, or order, at the Bank of Commerce in the city of New York, twenty dollars and twenty-five cents, for value received. JESSE STOKES.

REMARKS RELATING TO NOTES.

1. The person who signs a note, is called the drawer or maker of the note; thus Reuben Holmes is the drawer of Note No. 1.

2. The person who has the rightful possession of a note, is called the holder of the note.

3. A note is said to be negotiable when it is made payable to A B, or order, who is called the payee (see No. 1). Now, if Abel Bond, to whom this note is made payable, writes his name on the back of it, he is said to endorse the note, and he is called the endorser; and when the note becomes due, the holder must first demand payment of the maker, Reuben Holmes, and if he declines paying it, the holder may then require payment of Abel Bond, the endorser.

4. If the note is made payable to A B, or bearer, then the drawer alone is responsible, and he must pay to any person who holds the note.

5. The time at which a note is to be paid should always be named, but if no time is specified, the drawer must pay when required to do so, and the note will draw interest after the payment is demanded.

1. What is the person called who signs a note? 2. What is the person called who owns it? 3. When is a note said to be negotiable? What is the person called to whom a note is made payable? When the payee writes his name on the back, what is he said to do? What is he then called? 4. If a note is made payable to A B, who is responsible for its payment? 5. If no time is specified, when is a note to be paid? 6. Will a note draw interest after it falls due, if not stated in the note? 7. If the rate of interest named in a note is higher than the legal rate, can the amount of the note be collected? 8. If two persons jointly and severally give a note, of whom may it be collected? 9. What words should be put in every note? 10. If a note is made payable on a fixed day and in a specified article, and is not paid, what may be done?

6. When a note, payable at a future day, becomes due, and is not paid, it will draw interest, though no mention is made of interest.

7. In each of the States there is a rate of interest established by law, which is called the legal interest, and when no rate is specified, the note will always draw legal interest. If a rate higher than legal interest be taken, the drawer, in most of the States, is not bound to pay the note.

8. In the State of New York, although the legal interest is 7 per cent, yet the banks are not allowed to charge over 6 per cent, unless the notes have over 63 days to run.

9. If two persons jointly and severally give their note, (see No. 3,) it may be collected of either of them.

10. The words “For value received,” should be expressed in every note.

11. When a note is given, payable on a fixed day, and in a specific article, as in wheat or rye, payment must be offered at the specified time, and if it is not, the holder can demand the value in money.

228. By mercantile usage a note does not really fall due until the expiration of 3 days after the time mentioned on its face. The three additional days are called days of grace.

When the last day of grace happens to be a Sunday, or a holiday, such as New Year's or the 4th of July, the note must be paid the day before; that is, on the second day of grace.

BANK DISCOUNT.

229. Bank Discount is the charge made by a bank for the payment of money on a note before it becomes due. By the custom of banks, this discount is the interest on the amount named in a note, to be paid in advance, and calculated from the time the note is discounted to the time when it falls due, in which time

228. How long is the time for the payment of a note extended by mercantile usage? What are these days called? When the last day of grace falls on a Sunday, or holiday, when must the note be paid?

229. What is bank discount? How is it estimated? How is it estimated by the custom of banks? What is the face of a note? What is the present value of a note?