A bank is an institution or corporation for the purpose of trafficking in money.

Banks receive money on deposit, loan money on intérest, and issue bank-notes, i. e., notes payable in specie to the bearer on demand, and which circulate as money.

A promissory note, more commonly called a note, is a written promise to pay a specified sum of money. A person who indorses a note incurs all the obligations of such an indorsement, even though he may be ignorant of them at the time.*

Many a man has been reduced from affluence to poverty, by merely writing his name on the back of a note "just to accommodate a friend."

COMPUTING INTEREST,

AT 6 PER CENT. FOR ANY NUMBER OF DAYS.

RULE.-Draw a perpendicular line, cutting off the two right hand figures of the $, and you have the ir terest of the sum for 60 days at 6 per cent.

NOTE. The figures on the left of the line are $, and those on the right are decimals of $.

EXAMPLE 1.-What is the interest of $423 60 days at 6 per cent.?

$423 the principal.

$4 | 23 cts. interest for 60 days.

NOTE. When the time is more or less than 60 days, first get the interest for 60 days, and from

that to the time required.

EXAMPLE 2.-What is the interest of $124 for

15 days at 6

$124 principal.

4)1 | 24 cts.

interest for 60 days.

EXAMPLE 3.-What is the interest of $123.40 for

EXAMPLE 4.-What is the interest of $324 for

75 days at 6 per cent.?

$324 principal.

Days. Days. Days.
75=60+15

4)3 | 24 cts. interest for 60 days.
81 cts. interest for 15 days.

Ans. $4 | 05 cts. interest for 75 days.

REMARKS. This system of Computing Interest is very easy and simple, especially when the days are aliquot parts of 60, and one simple division will suffice. It is used extensively by a large majority of our most prominent bankers; and, indeed, is taught by most all Commercial Colleges as the shortest system of computing interest.

Method of Calculating at Different Per Cents.

This principle is not confined alone to 6 per cent. as many suppose who teach and use it. It is their custom first to find the interest at 6 per cent., and from that to other per cents. But it is equally applicable for all per cents., from 1 to 15 inclusive.

The following table shows the different per cents., with the time that a given number of $ will amount to the same number of cents when placed at interest.

RULE.-Draw a perpendicular line, cutting off the two right hand figures of $, and you have the interest at the following percents.

Interest at 4 per cent. for 90 days.
Interest at 5 per cent. for 72 days.

Interest at 6 per cent. for 60 days.
Interest at 7 per cent. for 52 days.
Interest at 8 per cent. for 45 days.
Interest at 9 per cent. for 40 days.
Interest at 10 per cent. for 36 days.
Interest at 12 per cent. for 30 days.
Interest at 7-30 per cent. for 50 days.
Interest at 5-20 per cent. for 70 days.
Interest at 10-40 per cent. for 35 days.
Interest at 7 per cent. for 48 days.

Interest at 4 per cent. for 80 days.

NOTE. The figures on the left of the perpendicular line are dollars, and on the right decimals of $. If the $ are less than 10 prefix a 0.

EXAMPLE 1.-What is the interest of $120 for 15 days at 4 per cent.'

EXAMPLE 2.-What is the interest of $132 for

EXAMPLE 4.- -What is the interest of $462 for

for 64 days at 7 per cent.?

$462 principal.
3)4 62 cts.

1 54 cts.

Days. Days. Days. 64=48+16.

int. for 48 days.

int. for 16 days.

$6 | 16 cts.=int. for 64 days.

REMARK.--We have now illustrated several examples by the different per cents. ; and if the student will study carefully the solution to the above examples, he will in a short time be very rapid in this mode of computing interest.

NOTE. The preceding mode of computing interest is derived and deduced from the canceling system; as the ingenious student will readily see. It is a short and easy way of finding interest for days when the days are even or aliquot parts; but when they are not multiples, and three or four di