Business Hints for Men and Women by Alfred Rochefort Calhoun (important of reading books .TXT) ๐
If one or both cannot write, the signature can be made in thisway:
HisGeorge X Jones.Mark.
Witness..............
In some states one or more witnesses are required to the signatureof the grantor; in others, witnesses are not necessary, exceptwhere a "mark" is made.
An important part of a deed is the Acknowledgment. This is the actof acknowledging before a notary public, justice or other officialproperly qualified to administer an oath, that the signatures aregenuine and made voluntarily.
The acknowledgment having been taken, the official stamps thepaper with his seal and signs it.
In some states the law requires that a wax or paper seal beattached to the paper, while in others a circular scroll, madewith the pen, with the letters "L.S." in the center answer thepurpose.
When the foregoing essentials are complied with the deed must bedelivered to the grantee. The del
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1. Never give one if you can pay cash. 2. A note made on Sunday is worthless in some states. 3. A note given under compulsion is worthless. 4. Notes made by a drunken person, or obtained by any form of fraud cannot be collected under law. 5. Notes bear interest only when so stated in body of note. 6. The holder of a note has a legal claim against every indorser. 7. Each indorser is responsible to every indorser who follows him. 8. Notes are valid without reference to the kind of paper, or whether they are written with pen or pencil. 9. Losing a note does not release the maker from payment. 10. If no time is set in a note for payment, it becomes due as soon as it is made. 11. Where a note is made in one state and is payable in another, it is governed by the laws of the state in which it is to be paid. 12. Notes payable on demand draw no interest until after they have been presented for payment. 13. If a note reads โwith interestโ and no rate is specified then it draws the legal interest in the state in which it was made. 14. Demand notes are not entitled to days of grace. 15. If no place of payment is named in a note, it should be presented to the maker personally in business hours. 16. The misspelling of a word or words in no way invalidates a note. 17. If a person who cannot write makes a note his mark should be properly witnessed. 18. The makers of a joint note must be sued jointly. 19. If the words and the figures in a note disagree, the words take precedence. 20. A note signed by a firm may be collected from either of the partners. 21. When a payment is made on a note secured by a mortgage, the amount is endorsed on the note, never on the mortgage. 22. A note given by a minor is void, unless given for actual necessities, like food and clothing. 23. If a note made by a minor is acknowledged when he comes of age it is binding and collectible.
A draft is a written order from the first party to the second party to pay to the third party a certain sum of money at a certain time.
The first party is called the โdrawer.โ
The second party is the โdrawee.โ
The third party is the โpayee.โ
There are two kinds of draft.
The first is usually where the cashier of one bank, through his own check, draws on another bank for the cash difference in their accounts with each other.
The second form of draft is the most usual and is the one we shall here consider.
The cashierโs draft is always for cash and the demand is always honored. The ordinary business draft may be for cash or for goods.
The business draft is usually honored, but there are circumstances under which it may be ignored.
TO MAKE A DRAFT
But let us suppose that the draft is all right and that a merchant, let us call him Henry Thomas, and suppose him a resident of Philadelphia, has a bill against James Taylor, of Cleveland, and he wants to collect it, without recourse to law. How will he go about it?
The bill is for $100.
Mr. Thomas writes this draft:
Philadelphia, Pa., Sept. 5, 1910. At sight pay to the order of Johnson National Bank of Philadelphia One hundredโฆโฆโฆโฆโฆโฆ. dollars. With exchange and charge same to Henry Thomas. To James Taylor, Cleveland, Ohio.
Having drawn his draft, Mr. Thomas takes it to the Johnson National Bank for collection. The collection is actually made by some bank in Cleveland to which the Johnson has endorsed it over.
If Mr. Thomas wished he might have sent his draft direct to the Cleveland bank, but he no doubt thought it better to transact such matters through his own bank.
Or if Mr. Thomas lived where he was not in touch with a bank, he might have drawn through any person whom he knew in Cleveland.
On receiving the draft for collection, the Cleveland bank would at once give it to a clerk who would without delay present it to Mr. Taylor.
Mr. Taylor, having written his acceptance of the draft, is given three days grace in which to make payment.
In states where days of grace are not allowed, he would have to pay at once.
Mr. Taylor writes the word โaccepted,โ with the date and his name across the face of the draft, and if he does not pay cash, he states in the writing where payment will be made.
Of course, Mr. Taylor cannot be compelled to accept a draft. There may be good and honest reasons for his not doing so, but having accepted it, in business honor he is bound to pay it.
The term โSight draftโ explains itself, but the order to pay a draft may indicate, and often does, the number of days allowed for payment, after presentation.
FOR COLLECTION
What should be done by the man to whom a bill or a note is due, when the debtor lives in a place where there is no bank?
In that case he must learn in some way the name of a promising person to make the collection for him.
In this case he makes out the draft as before, and adds the words โfor collection.โ This acts as a bar to any transfer of the paper.
Most banks refuse to handle a draft marked โfor collection.โ
DISHONOR
Drafts are not necessarily duns.
Some country merchants prefer to pay their bills to wholesalers in that way, so that collecting drafts is no small part of the business of the ordinary bank.
While men are not compelled to meet drafts when presented, if the amount is due and he defaults or refuses to pay he injures his own credit.
In refusing a just draft he is said to โdishonorโ it.
So sure are wholesalers that their drafts will be met by their distant debtors that they do not hesitate to draw against them when deposited for collection, regarding them as cash to their credit in bank.
PROTESTS
When a draft is not accepted or paid when due, if it be a time draft, it is protested in the same way as a note.
The protest of a draft serves as a notice to the drawer of its non-acceptance.
Like notes and checks, drafts may be transferred by a similar endorsement.
BUYING DRAFTS
If I wanted to pay a bill for $150 to Albert Holt, living at Wallace, Kansas, and did not wish to trouble him with a check, how would I go about it?
1. I might express the cash, which would be expensive. 2. I might send it in postal order, not always certain. 3. I might send it by a trusted hand, but might have long to wait before I found a friend going out to Wallace.
I am living in New York City, and am familiar enough with banking to know that New York is a great financial center and is in constant communication with nearly all the outside banks.
The outside banks keep money in deposit here, and the New York banks, particularly in the spring and autumn, keep deposits with their correspondents.
With my $150 and a small extra sum to pay my bank for drawing the draft, I go thither and buy a draft for the sum I owe Mr. Holt.
I mail this draft to my creditor and he can cash it without loss in his home bank. Here is the form:
No. 101. Madison National Bank of New York. Pay to the order of Albert Holt, One hundred and fifty dollars ($150.)โฆ โฆโฆโฆ. L. N. Jones, Cashier. To Prairie National Bank, Wallace, Kansas.
A GOOD PLAN
When you buy a draft which you mean to send off in payment of a debt, a good plan is to have it made payable to yourself.
Let us suppose it is the case of Albert Holt. You transfer the draft to him by writing across the back, โPay to the order of Albert Holt,โ and add your signature.
Now as all drafts are returned, as payment vouchers, to the banks from which they were issued, and as Mr. Holt must have signed the draft to get his money, it follows that there is a record of his having received it, and this has all the force of a receipt.
Do not endorse a draft with just your name, for in that case, anyone into whose hands it falls may collect. First write โPay to the order ofโ the person for whom it is intended.
GOOD AS CASH
A draft made payable to yourself is as good as cash, and far safer to carry.
If you are identified at any bank between the Atlantic and Pacific, you can have your draft cashed.
All banks furnish blank drafts.
Never endorse a draft made payable to yourself, and this applies to a check, until you are about to use it.
It is a good plan never to sign your name until it is actually necessary.
Some people have the foolish habit of signing their names on stray bits of paper.
Do not get into this habit, even if there is no space to fill out a note or order above the signature.
As has been before stated, money in its broadest meaning is a medium of exchange.
Anything that can pay a debt or purchase property, in any part of a country, is the money of that country.
Every civilized country has its own minted or printed money.
The usual mediums of circulation are gold, silver, nickel and copper, the latter alloyed more or less in the United States with nickel.
Government and bank bills, while having all the purchasing power of gold, are simply promises to pay in gold, or other coin of โredemptionโ, the amounts they represent.
The money of one country cannot legally be made to pay a debt in another country, unless both parties to the payment agree to it.
When gold is exchanged to settle the balances of trade between two countries, it is not reckoned, if coined, at its face value, but at its bullion value.
The word โpecuniaโ meant in ancient Greece and Rome a flock or herd.
In those days live stock were used as a medium of exchange, or money.
We keep the word and often use it as in โpecuniaryโ affairs, and when we call a moneyless man, โimpecunious.โ
UNITED STATES MONEY
The United States Government reserves to itself the right under the constitution, to coin and issue the money to be used by its own people.
Formerly we had two standards of value, gold and silver, or bimetalism.
If gold and silver were produced in relatively equal quantities, the world would go on trading with money of both kinds, but the proportions are not the same.
Among the Aztecs and Peruvians silver ranked with gold as two to one, that is, two pounds of silver would purchase as much as one pound of gold.
But when great silver mines were discovered and new methods were discovered for extracting the metal, it became more and more abundant, till it depreciated far below the former value it had in its relation to gold.
Most of the commercial nations decided to have but one standard of value, and that gold, long before the United States fell into line.
Our money measure is known as the decimal, or metric. It would be convenient, if we could follow the example of nearly all the other commercial nations, and use the metric system for all
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