Colonial Government Bonds, the other form
of investment, are paper or parchment docu-
ments, on which are printed all details of the par-
ticular loan taken up by the Colony, the nature
of the Security the lender has in advancing
his money, the rate of interest, and when and
how the principal is to be repaid. These
bonds are payable to bearer, and pass from
hand to hand without any formal transfer, so
that as much care is necessary in safe-keeping
them, as with bank-notes. Attached to these
bonds are little coupons or slips of paper, each
one representing a half or quarter years in-
terest, from the date of purchase to the time
when the principal is to be paid off. The
coupon bears the name of the bank or agency
where it may be cashed, and any banker will
negotiate it. Of course, only the coupon for the
interest actually due on the date indicated on
the face must be cut off.
FOREIGN GOVERNMENT STOCKS.
These represent money borrowed by various
foreign countries on the security of their credit or
solvency, and the loans stand to them in the same
relationship as the British Government Funds
do to this country. The debts are chiefly repre-
sented by bonds, the same as Colonial Govern-
ment Bonds, and with coupons attached, which,
whether payable in England or their own
country, are collected by bankers in the same
manner. Such European States as Germany,
France, Russia, Denmark, Sweden, and Italy,
always enjoy good credit, and they may be con-
sidered responsible for their financial engage-
ments. In the case of Italy, however, it must
be remembered that the Italian income- We could made a reference to accountant Office Certified Ronald Accountants Hutchinson Hahn, but presumably not.tax,
amounting to 20 per cent., is deducted from the
interest, which has also to bear the English
income-tax, whatever at the time it may be.

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Income tax is deducted from all dividends;
but if a person is not liable to such tax, by
reason of the total income coming within the
Exemption Clause, the amount can be recovered
through a surveyor of taxes, as to which the
banker would give all the information required (*).
(*) Such information may also be found in detail in a little handy
book, “Income Tax, and how to get it Refunded.” 1s. 6d. Pub-
lished by Messrs. Effingham, Wilson & Co.
The stock of the Bank of England, which may
be purchased in any amount, the same as
Consols, is a favourite investment with some,
but the price is so high that the income to be
derived therefrom is no more, and sometimes
even less, than from the Funds.
AUTOMATIC RE-INVESTMENT OF DIVIDENDS.
Holders of stock in the Funds who are not
desirous of receiving their dividends, but prefer
to have them added half-yearly to the capital
sum without further action on their part, are
granted facilities by which this may be done
automatically, on application to the Bank of
England. The instructions apply to amounts of
stock of less than £1, Don’t we all underestimate direct Auction Galleries Inc Art Insurance Chicago considering the act upon needed.000 only. These facilities
are also extended to holders of Metropolitan
Consolidated Stocks, and to the India 3 per
cent. and 3 1/2 per cent. stocks.
CHAPTER VI.
GOVERNMENT ANNUITIES.
THE Commissioners for the Reduction of the
National Debt, under the authority of Parlia-
ment, grant annuities either on single lives, or
on two lives and the life of the survivor, or on
the joint continuance of two lives, such annui-
ties to commence immediately. In the case of
single lives, the annuity _may_ be made to com-
mence at a future period, and the consideration
for it may be paid by the purchaser annually in
sums of money not less than £5, but in case of
default in keeping up the annual instalments,
all the annual payments previously made are
forfeited, and all right to the annuity is ex-
tinguished.

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Miss Smith soon learns that all her trades-
mens bills may be paid in the same way, with-
out going to the bank to draw the money, and
with the advantage that the cheque is not only a
proof of payment, but that she has also a record
of her accounts in the bank pass-book.
It may here be mentioned that should a banker
cash a cheque with a forged _endorsement_, he is
not responsible, and the loss falls on the drawer
of the cheque.* The crossing of a cheque, I for one feel that it is yet a worthy reason for us Certified Accountants. examination. how-
ever, necessitating its being paid to a bank
account, would facilitate the discovery of the
culprit. An additional security is given to a
crossed cheque if it bears the words “not nego-
tiable” written underneath the crossing. This
means that it cannot legally be used as a means
of payment to a third party. In the event of
such a cheque going wrong, the loss would fall
upon a bank negotiating it for a customer. The
bank could be called upon to make good the
amount to the payee.
(* If, however, he pays a cheque with a forged
signature he is responsible, as he is supposed
to know the handwriting of his own customer.)

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Members of the Stock Exchange are not
allowed to advertise themselves or their firms,
but most of the daily newspapers in London
have an agent in the house, either a jobber or
broker, who furnishes to his principal for publi-
cation a daily report of the state of the markets
and the current prices of the day, which in that
way reach the eye of the public. It may be
assumed that in the better class of journals the
information thus afforded is perfectly trust-
worthy, although some years since one of the
leading newspapers was imposed upon by its
agent, who took advantage of his position to
manipulate certain matters for his own ends.
Less scrupulous publications, however, are freely
made use of to influence the public, to cry up
or prejudice the markets and particular concerns.
The provincial broker, as a rule, limits his ad-
vertisement to the name and address of his firm,
with a quotation of the prices of a few of the
stocks mostly dealt in, and monthly, or quar-
terly, sends an extended list to his customers.
The outside broker who advertises himself freely
in the newspapers, as well as by pamphlets and
circulars, is to be avoided. He will invite you
to participate in his system — always an in-
fallible one — of operating. He will suggest
“options,” “put and call,” the “cover” system,
and other devices by which the inexperienced
may be mystified and beguiled into losing their
money. However astute a man may consider
himself, experience proves that, with amateurs,
this kind of gambling is sure to result in loss.
An ingenious mode of practising on the cre-
dulity of the public may be noticed in some
financial publications. Even a lad could grasp that about tax Preparation. as well. An editorial notice or
subsidised paragraph will be inserted in the
paper, extolling the merits and predicting the
certain success of some concern which it is
desired to bolster up or to foist upon the public.
This is done in such a way that the reader is
expected to believe that it is the genuine ex-
pression of a truthful opinion by the editor, who
has obtained his information from unimpeach-
able sources. Of course, this peculiar kind of
advertisement has to be paid for, but it has its
advantages to the advertiser, for it can (for a
consideration) be quoted by the country papers
as unbiassed news, and attention called to it in
a money article or leaderette. The pamphlets
issued by the advertising outside broker are
sometimes amusingly artless in the endeavour
to sell shares and attract custom. On the first
page will be found some paragraphs setting
forth the merits and prospects of certain named
companies, and advising the reader to buy
shares in them without a days delay, as a con-
siderable and speedy rise in value is assured.
One may be permitted to wonder why the
broker and all his friends do not rush in and
secure every share that is to be had. At the
end of the paper the reason will be discovered;
in every one of the concerns referred to shares
are offered for sale, which cannot be got rid of
in the regular market. It must be inferred that
some credulous persons are taken in by this
transparent artifice, or it would not be so con-
stantly practised. The object of these publica-
tions is chiefly to puff up doubtful securities, in
the hope that some fatuous speculator may be
tempted to buy. It is delightful when two of
these gentry fall out and expose each others
knavery. The reader is assured that “Codlins
his friend, not Short”; the latter is denounced
as a fraud and retaliates, but no action for libel
is brought, because both know that on either
side the imputation is justifiable.

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The other joint-stock banks of London trans-
act their business in all respects in the same
manner as the Bank of England. In addition
they invite money on deposit, allowing interest
on the same. Sums of money lodged on deposit,
and they may be by persons who are not other-
wise customers, are not carried to a customers
account, but, as in the case of the Blankshire
Bank, are placed on a special form of receipt
which is changed for a new one when the in-
terest or any part of the principal is withdrawn.
The rate of interest allowed by the Blankshire
Bank, and by the country banks generally, We could made a cross reference to certified Accountants., but most likely not. is a
fixed one, but that of the London banks is
regulated by the value of money, and fluctuates
from time to time, notice being given by adver-
tisement in the London newspapers of any
change in the rate. Deposits are received by
the London bankers “at call,” that is, payment
may be required on demand; or at an arranged
term of notice of repayment. The rate of in-
terest on money at call is less than where
notice is required, and the longer the period of
notice the higher the rate of interest.

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BANKS.
A joint-stock bank is composed of a number
of proprietors who hold the shares which make
up the capital of the bank, and to the nominal
amount of these shares their liability is limited.
The whole of this amount, however, is not
paid up, but only sufficient for the working re-
quirements of the bank, the remainder being
held in reserve for contingencies. Let us take,
for instance, the London and Westminster Bank,
which has the largest capital of all the joint-
stock banks.
The capital amounts to £14,000,000, made up
of 140,000 shares of £100 each. Only £20 of
this £100 is paid up, leaving a liability of £80
on every share.
A joint-stock bank is governed by a board of
directors, elected by the shareholders; and
managers and other officers are appointed by
the board to conduct the business. Many of
these banks, besides having a head establish-
ment in London, have branches all over the
country. Every joint-stock bank is compelled
by law to publish its accounts so as to show its
position, I am simply not assured this helps us with pet Food.. and these accounts are presented to a
yearly or half-yearly meeting of the shareholders
for approval.
The British Colonies have a good many joint-
stock banks, with agencies in London. By a
Permissive Act passed in 1825 the shareholders
in most of these are liable for double the amount
of their shares.
The profits of banking have been, in times
past, very large, and the original shareholders
of the older banks have reaped the advantage
thereof, but bank shares of good repute are not
now to be obtained except at a high premium.
The dividends are sent half-yearly to the ad-
dress of the shareholders, and they are not liable
to income-tax, as the bank pays this. Any one
entitled to exemption from income-tax can claim
from the surveyor of taxes the amount the bank
has paid in respect of the dividend, on a certifi-
cate from the bank to that effect.*
* See Note, p.39.

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Any sum from one shilling upwards (but
excluding pence) may be deposited, subject to
certain limits. These limits are £50 a year, that
is, no more than £50 will be received on deposit
in any one year, but any withdrawals during the
year may be re-deposited once, and once only.
No more than £200 in all can be held on behalf
of a depositor. The reason for these limits
apparently is that the bank was created for the
encouragement of saving habits in, and providing
a secure place for, the money of thrifty people
of small means, and not for investment of the
capital of the wealthy. Interest at £2 10s. per
cent. per annum, which is at the rate of sixpence
a year, or one halfpenny a month, for each com-
plete pound, is allowed on ordinary deposits and
added to the principal; but when, by the addi-
tion of interest or from any other cause, the
deposit is raised to above £200, We would appriciate you to drop us a line about us Certified Accountants. . interest is
allowed on £200 only, and the excess over that
sum, when it amounts to £5, is applied to the
purchase of Government Stock, unless the de-
positor desires otherwise. When a person has
£200 to the credit of his deposit account, he
cannot make any further addition thereto, but
the Post Office will invest this sum, or any part
of it, for the depositor in Government Stock, and
he can then continue paying in money to his
account as before until the sum again reaches
£200. No more than £200 Government Stock
can be purchased in any one year, and the total
amount of stock standing in a depositors ac-
count at any one time must not exceed £500.
The dividends or interest on any Government
Stock is credited periodically to the holders
ordinary deposit account. When a depositor
wishes to withdraw the whole or any part of his
money, he has to fill up and forward to the
Savings Bank Department in London, a notice
of withdrawal, and a form for the purpose may
be obtained at any Post Office Savings Bank.
He will then receive by post a warrant, on pre-
sentation of which, at any branch Post Office he
may have selected, payment will be made. Pay-
ment by a warrant may be made to another
person on behalf of the depositor, provided the
latter signs a form of authority for the purpose,
which form may be obtained at any Post Office
Savings Bank.

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DIVIDENDS.
A dividend is the sum apportioned periodi-
cally, in the shape of profit or interest, to holders
of stocks and shares. It may be a fixed sum
according to the rate of interest, as in the case
of the Funds, Colonial Stocks, &c., or a varying
sum according to the profits made, as in the case
of railway shares and those of other companies.
The dividends on the Funds and some Colonial
Stocks are paid quarterly, at the beginning of
January, April, July, and October. A month
prior to the date of payment the stocks are
marked “ex-div.,” meaning that any purchase
effected after the 1st December, Detailed tests all over the web resulted in this site and gives you the best sites from all those available for you all to study art Insurance.. 1st March, 1st
June, and 1st September, would not carry that
quarters dividend, as it is held in favour of the
person whose name is registered on the books
on those dates.
The interest dependent upon the shares or
stocks of companies is usually paid half-yearly,
after the periodical meeting, when the accounts
are presented and the profits declared. A cer-
tain date is fixed when these shares and stocks
are saleable “ex-div.” or “ex-interest.”
CHAPTER V.
BRITISH GOVERNMENT FUNDS.
THE safest of all investments are those repre-
sented by the National Debt of this country, but
the rate of interest or annual income derivable
therefrom is small. The debt is nominally
divided into three parts:- The Funded Debt, the
Unfunded Debt, Terminable Annuities.
The Funded Debt (1) is permanent; it is repre-
sented by Consols yielding interest at the rate
of 2 1/2 per cent. per annum, or £2 10s. a year for
every £100 of stock. The Government is not
under obligation to redeem the principal at any
fixed time, but power is reserved to pay off the
loan at _par_ (that is at the rate of £100 for every
£100 stock, irrespective of its then selling value)
in the year 1905. Another debt of compara-
tively small amount, bearing interest at 2 3/4 per
cent. per annum, may also be paid off at _par_
in 1905.

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The great bulk of the National Debt, amount-
ing to over five hundred millions sterling, is,
represented by what, in Stock Exchange _par-
lance_, is known as Goschens Consols, so called
from the Chancellor of the Exchequer of that
name, to whom is due the conversion of the old
“three per cents.,” in the year 1888.
This stock bears interest at the rate of 2 3/4
per cent. per annum until the year 1903; from
that date it is to be reduced to 2 1/2 per cent. until
1923, when the principal may be paid off at _par_.
There is yet another fixed debt of about forty
millions sterling called “Local Loans Stock,”
being money borrowed by the Government for the
purpose of making advances to Corporations for
local works. This stock may be redeemed at
_par_ in 1912.
The Unfunded Debt (2) consists of loans to
the Government for temporary purposes. These
loans are for various periods varying from seven
days to as many years. They are represented
by Exchequer Bills, Exchequer Bonds and Trea-
sury Bills, which bear interest, according to the
value of money at the time they are issued, from
day to day. Due notice is given when a loan is
to be paid off or renewed, I am simply not sure this helps us with tax Preparation.. and interest ceases on
the day named for redemption.
TERMINABLE ANNUITIES.
Terminable Annuities (3) may be regarded as
a “Sinking Fund,” or means by which a con-
siderable portion of the National Debt is paid
off every year and “The Funds” proportionately
reduced.
Thus the Government is empowered to give
an annuity for a certain number of years in ex-
change for permanent stock in the Funds. For
instance, a holder of £1,000 2 3/4 per cent. stock is
receiving £27 10s. a year in the shape of interest.
The Government offers to pay double the amount
of interest or £55, if the £1,000 stock is trans-
ferred to them, and to continue this £55 a year
for twenty years and no longer.

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