The average monthly

514. Representation of Temperature. temperatures of New York City beginning with January are: 29°, 33°, 39°, 46°, 53°, 63°, 67°, 67°, 61°, 52°, 47°, 41°. These temperatures are represented in the graph on the opposite page.

Vertical distances above the heavy horizontal line represent temperatures, and horizontal distances from the heavy vertical line represent length of time from Jan. 1.

515. Shipping Statistics. The table below shows the total foreign trade of the United States which was carried in vessels, and the parts of this trade carried in American and in foreign vessels.

Example. Compute the per cent of the total trade which was carried in American vessels each year and construct a graph to represent these per cents. A part of this graph is given on the opposite page.

CHAPTER XXXVI

DOMESTIC EXCHANGE

516. Contracting Bills at a Distance.- People in one part of the country are constantly doing business with people in other parts. The North Central States produce yearly great quantities of cereals and meats which are sold to the other states. In New England and the Middle Atlantic States, clothing of all kinds, boots, shoes, cutlery, and other articles of manufacture are produced and sold in all sections of the country. This selling and buying between people living in different localities makes it necessary to pay bills at a distance.

517. The Problem of Domestic Exchange. -The problem which our bankers and others are trying to solve is to set off against one another the mutual indebtedness of different sections of the country and thus reduce the actual transportation of cash.

518. Means of Paying at a Distance. In actual practice cash is seldom sent from one section of the country to another. The immediate means used for paying debts at a distance are:

1. Personal checks.

2. Postal Money Orders.

3. Express Money Orders.

519. Personal Checks.

4. Telegraphic Money Orders.

5. Commercial Drafts.

6. Bankers' Checks or Drafts.

The simplest way to pay a bill at a distance is to send a personal check. However, the man who receives the check may not receive credit for it in his bank until enough time has elapsed to hear from the bank on which it is drawn.

520. The Certified Check. If the bank on which the check is drawn certifies it, the check is known to be good so long as the bank is solvent. To certify a check the banker stamps "certified" across the face of it, and deducts the amount from the maker's account.

521. Postal Money Orders. - Payment of small bills such as subscriptions for magazines are often made by postal money orders. The charges made by the Post Office for these orders are:

30 cents

Amounts greater than $75 up to $100.

A money order is made payable at a definite post office, and to a definite person. A money order can be signed over only once to another person or institution except by a banker. A money order is not issued for more than $100. Large amounts are never sent by money order because the cost is high, %, and also because it would be inconvenient to handle a large number of $100 money orders to pay one large sum.

522. Express Money Orders. Express companies sell express money orders at the same rate as postal money orders. They have the advantage that they are payable at any office of the express company to a properly identified owner of the order. They may be indorsed and transferred any number of times the same as a check. Express money orders are not issued for more than $50.

523. Travelers' Checks. The express companies and some banks issue what are called travelers' checks. These checks are in denominations of $10, $20, $50, $100, and $200. The buyer signs his name on each check as he buys it, and when he wishes to use it, he identifies himself by duplicating this signature. Travelers' checks are drawn on certain banks but are accepted by the larger business concerns all over the civilized world. There is engraved on them their exact value in all the principal kinds of money and they are always accepted at their face value. A charge of 1% to 1% of the value of the checks is usually made by the company issuing them.