Oversold. The market is "oversold" when more securities have been contracted for delivery than the sellers are able to purchase at advantageous prices, resulting in a rising market; too many people have "gone short." (See "Selling Short.")

Over the Counter. Sales of securities directly by bankers without the medium of the stock exchanges; outside sales, as they are called, of all kinds. Used particularly in speaking of bonds.

O. & A.. October and April; interest or dividend payable semi-annually beginning with October.

Р

P. The sign used in the Spanish monetary system for the peseta," as $ is for our dollar.

Pac. Pacific.

p. a. c. These letters stand for " put-and-call." (See "Straddle.")

Pacific Coast.

The Pacific Coast Co. Successor to The Oregon Improvement Co.

Pacific Mail. Pacific Mail Steamship Co.

Pacific Railroads. Used in two senses. First, the railroad companies with Pacific as part of their names; i. e. Union Pacific, Southern Pacific, Northern Pacific, Canadian Pacific, Western Pacific, and Central Pacific. Second, the roads reaching across the country to the Pacific Ocean; i. e. the first four mentioned, and the Chicago, Milwaukee & St. Paul, the Great Northern, and the Atchison, Topeka & Santa Fé.

Pacifics. Railway companies with "Pacific" as part of their names, and whose securities are listed upon the New York Stock Exchange.

Paid-Up Stock. Same as "fully paid stock." (See "Fully Paid.")

Paid-Up Value. A life insurance term describing the sum of insurance, which, without further payment of premiums, should be given the insured in case of cessation on the part of the latter in payment of premiums after a fixed time. In other words, it is the value which a policy would have after a given time, as set forth in the policy, should the insured, from inability or otherwise, discontinue payment of premiums previous to the time originally contemplated in the policy. Many modern policies state therein the sums which would be the "paid-up value" of the same at different intervals.

Panama 2's. United States Government bonds redeemable after August 1, 1916, but due August 1, 1936, and known as the Panama Canal Bonds. (See "Government Bonds.")

Pan Handle. Pittsburgh, Cincinnati, Chicago & St. Louis Railway Company. Controlled by the Pennsylvania Railroad Company.

Panic. A "panic " in a theatre is the result of some fright that induces many people to lose their heads, and rush frantically to the exits to escape, having no regard for the weak and helpless or the wiser counsels of the saner-minded, who would, perhaps, accomplish the same escape from the impending danger by slower and more systematic methods. At such times, much unnecessary suffering results, caused by the very human desire of self-preservation.

In a "stock exchange panic," or "money panic," or whatever the case may be, the procedure and results in a financial way are about the same. People sell who need not have done so; sales are made which afterwards prove to have been needless; unnecessary losses result; the large majority try to do the same thing at once. There are so many more sellers than buyers - that so many more people than theatre exits securities are sold at any prices obtainable. Failures result; prices drop to an unnatural level; all confidence is lost, and financial self-preservation is the predominating factor.

Panics are usually preceded by a period of over-speculation, inflation and straining of credit.

Paper. See" Business Paper."

Paper Money. Something accepted in substitute of metallic money; money founded on credit; a simple promise to pay bearer in coin on demand; a non-interest-bearing note dependent for payment upon the ability of the issuer to meet the same. Treasury Notes of 1890, gold1 and silver certificates, United States Notes, etc., issued in this country, are examples. The annual cost of maintenance of the paper currency issued by the Government averages about two-tenths of one per cent. of the amount outstanding. 2

Paper currency of all denominations and kinds outstanding in the United States October 31, 1906, as furnished by the Treasury Department, was $347,681,016, less $1,000,000 unknown, destroyed.

The first paper money issued by the United States Government was authorized by Acts passed in 1861, but this kind of

1 Conant declares that these certificates "are not paper money in the usual sense because they represent gold coin of full value, instead of promises to pay which there may not be the ability to fulfil." And he is right, for, as Fiske says, 66 paper money is not real money and will not continue current when the credit on which it was based is gone."

2 Report of the Secretary of the Treasury for 1905.

money was first issued in America when attempted by the Colonies (Massachusetts first) as early as 1690. Paper money is said to have been first issued in China about 1,000 years before Christ.1 (See "Convertible Paper Money" and "Inconvertible Money.")

Paper Profits. Profits supposed to exist, but not yet realized. A purchaser of a certain stock at $90 per share may estimate that he has made a profit of $10 per share upon its advancing to $100, but he cannot be certain of the fact until the stock has been sold. He has only a "paper," or supposed profit, until such time.

Par. State of equality; equal value; equivalence without discount or premium.

The usual meaning of "par" is 100; that is, a share of stock, for example, which bears on its face the statement that it represents a value of $100. In practice "par" is used in a broader sense, for the "par value" differs in various securities. Bonds are in denominations, varying from fifty cents (as were once issued by a Western City) to very large amounts. Pennsylvania Railroad stock represents shares of $50 each; the Grand Trunk Railway Co. of Canada, £100 ($486.66); many manufacturing stocks are for $1,000 a share; some bank shares likewise; many mining stocks represent shares of ten cents, twenty-five cents, one dollar, etc. So par," as used in the financial world, really means the actual face value of any security, without regard to its denomination. This is often confusing to an investor, from the fact that a stock may be quoted at "ninety," which has a par value" of fifty, and which is, therefore, quoted at forty dollars premium, whereas the investor, not knowing its “ par value," may think it below" par;" really, the stock is quoted at 80% above "par," for if its parity were changed to 100 (or two shares made into one) its quotation of 90 would equal 180. This often misleads the unposted into buying a stock ("because it is cheap ") thinking it is selling at a discount, when it really is at a high premium. A certain one of our copper stocks some years ago, with a par value" of $25 was selling at $150, and looked much cheaper to investors (or speculators) at that price than at 600, which, in percentage, was its real selling price. Many a purchaser of that stock would have hesitated if he had realized that it had already advanced five hundred per cent. in the market and was selling at six times its original capitalization. A capital of $5,000,000 becomes quoted at $30,000,000 in this way. Mining stocks are often issued in shares of low denominations to permit of just this deceiving of the unwary.

In buying a security, ascertain the actual par value in dollars 1 "The Work of Wall Street," by S. S. Pratt.

and cents and then calculate its selling price on the basis of a par value of $100. This will show the ratio between the original capitalization of the security and the quoted market value of the entire issue of such security.

Another important matter to remember is the difference between the rules of the different stock exchanges in relation to "par." The following will give an idea as to this:

A number of states (including New York, Pennsylvania, West Virginia, Virginia, Maine, Massachusetts and New Hampshire permit corporations to issue common stock having no par value. This movement is growing and is meeting with considerable favor as it does away with the element of deceit.

Parent Company. A corporation controlling or owning other companies. The United States Steel Corporation is a " parent company." The Carnegie Company, the Federal Steel Company, etc., integral parts of the larger corporation, are subsidiary companies."

Paris Bourse. The Paris Stock Exchange. The full title is "The Company of the Paris Bank, Exchange, Trade, and Finance Brokers."

Paris Money. Rates asked for "call" and "time" money at that point.

Paris Private Discounts. The rate at which firms or individuals of known good financial standing can borrow in Paris, i. e. the rate at which their paper will be discounted.

Parity. Equal to; a similarity existing. The equivalent in price of the same security quoted in different markets after making allowance for different methods of quoting or other factors.

Parity of Silver. On the present standard U. S. ratio of gold to silver (1 to 15.988) pure silver must be commercially worth $1.2929 per fine ounce to be at a par with gold. $1.2929 is, therefore, called the "parity."

Par of Exchange. The relative value of the money in one country to that of another, taking gold bullion of an agreed 66 fineness as a basis upon which to figure. As between this country and Great Britain, $4.866+ is taken as the " par of exchange," by which is understood that the English "pound sterling" is the equivalent of $4.866+ in United States gold coin. In other words, that the bullion value of our gold dollar and the English gold "pound" is as $1. to $4.866+.

Par of Sterling Exchange. The equivalent of the pound sterling (£1) in United States money is $4.866+ ($4.867).

Parquet. See footnote under "Agent de Change."

Participating Bond. One which, while secured by a mortgage on a specific property, provides that the holder shall share in the profits accruing to the issuing corporation through ownership of the shares in other corporations, and which may or may not be additionally secured by the deposit of such securities. A good illustration is that of the Oregon Short Line 4% Participating Gold Bonds, which were issued in 1902. These were a direct obligation of the Oregon Short Line Railroad Company, but were additionally secured by the deposit of the stock of the Northern Securities Co., par for par, to the amount of the bonds issued. The bonds themselves were to receive 4% per annum from August 1, 1902, until February 1, 1904, on which date, and on the first day of February of each subsequent year, they were to receive, in addition to the regular payment of 4% per annum, an amount equal to any dividends and interest in excess of 4%, upon the amount of outstanding bonds, that had been paid in cash during the preceding year upon the collateral deposited with the trustee as security against these bonds. This issue was called for payment some time since.

Participating Policy. A participating life insurance policy is one under which the holder shares in any surplus earnings of the company, receiving them in the form of cash dividends, or in additional insurance, at the option of the insured.

Parti-Mortgage Receipt. A certificate issued by a company holding the papers in a mortgage showing the holders' proportionate ownership in the loan which the mortgage secures. This is done when a mortgage-note is of such large amount that to find one purchaser for the whole would be difficult or impossible.

Parting. The separation from bullion of any silver which it 'may contain, so that the gold and silver may be obtained in the form of separate bars.

Partnership. See "Firm."

Partnership Agreement. See "Firm."

Part-Paid Stock. Stock which the owners, as shown upon the stock books of the company, are liable for further payments; or stock upon which the subscribers have not paid their subscriptions in full.

Par Value. See "Par."

Pass a Dividend. A dividend is passed when it is not paid at the regular expected time; when a corporation ceases paying dividends, without a formal vote so to do.

Pass-Book. See "Bank-book."

Passenger Density. The total number of passengers which a