Post-Bills. Issued by the Bank of England for not less than £10, drawn payable seven days after sight, and "accepted" at the time of issue. These first came into use Dec. 14, 1738, the intent being to foil the highway robbers, as the interval before payment would be due might give time to stop payment.1 Post Dated Check. One dated ahead. No bank should pay a check earlier than the date entered upon it. Posted Rates. Bankers dealing in foreign exchange post a daily table of rates (or prices) for exchange, which is for use of the general public, but may differ from "actual rates,' which are private terms made to brokers or other buyers for large sums and somewhat less than the " posted rates." "" Posted rates are sometimes referred to as "nominal rates." Post-Office. A nickname for People's Gas Light & Coke Co.; the "ticker" abbreviation being "P. O.” to Pound. The English 2 unit of value (formerly the shilling was the unit) equal to $4.866 in United States money; the sign for it being £. The adding of the word "sterling pound" is to designate a pound in money from a pound in weight. Also the monetary unit of Egypt, equivalent to $4.943, and written thus: £E. 66 Pound Sterling. See "Pound." Power Company Bonds. (See also "Hydro-Electric Securities.") Within the last few years this class of bonds has come into considerable prominence. The ability to economically transmit electrical energy a great distance to generate power is the underlying factor in this industry. With a good water-power, and a demand for power at satisfactory prices within a reasonable distance of the property, there should be little question as to the success of these companies as a class. A low cost of operating has resulted in large profits in many instances. Far-seeing financiers look forward to a time when either the price or scarcity of coal will create a tremendous demand for electricity generated by water-power, and there is a growing belief that the better selected and located of such powers will become very valuable. The rapid inroads upon Niagara Falls for such a purpose, and the enormous amounts of money which have already been spent there in development of power companies, is an indication of this belief. Where the cost of fuel is high and manufacturing centers frequent, will be found the most favorable locations for these companies. 1 J. W. Gilbart. * Gold is believed to have been first coined in England in 1344. In selecting power company bonds as an investment, the usual facts as regards class of men behind the enterprise, management, contracts for business, etc., should be taken into consideration. But the main facts to consider are: The sufficiency of water-power for all time to come, and a plentiful water supply throughout the year; the location of the plant itself near enough to industries of a stable character to create a permanent demand for the electricity generated; the likelihood of competition from other water-powers in the same section; if the water-power is not owned, the right to operate same must endure for a longer period than the life of the bond issue; and, finally, the climatic conditions under which power is generated and distributed, and the cost of fuel in that particular section, should be carefully studied. To illustrate with regard to this last: In California, the price of coal is high, likewise fuel oil, except in sections favourably located as regards the oil wells. That State is practically free from thunder and lightning, and many of the plants are situated in sections of almost perpetual summer, all of which is conducive to cheap maintenance. In some of the mining regions of Mexico most of the fuel is brought on the backs of donkeys, making the cost of generating steam power very great (about $200 per horse-power per year). Many water-power companies can sell power very profitably at $25 per horse-power. . It does not follow that the conditions mentioned in the last two paragraphs are essential to the successful conduct of such a company, but are some of the things favourable to success. Other facts conducive to economical management in the operating of enterprises of this nature are, that they are naturally free from the dangers of anti-trust legislation, labour disputes, devastating fires, catastrophies, such as wholesale railroad accidents, and abnormal rises in the cost of raw materials, some, or all, of which factors may have to be considered in other industries. 99 Inasmuch as power bonds are a somewhat new security upon the market the investor has been able to obtain profitable interest returns by purchasing them, but there is very little question as to the extremely safe character of many of these issues. Power of Attorney. In financial matters, a written or printed paper signed and witnessed or acknowledged before a justice of the peace given by one person to another, whereby the latter receives authority to sign a paper or document, etc., in the former's name and stead, such signature having the same force and value as if signed by the person delegating the authority. "Powers of attorney" are much used in the transfer of stock certificates. It is necessary that a "power of attorney," in order to confer any authority upon a person, must specify the powers conferred. The language used may be, and frequently is, general and somewhat vague, in which case, it is a question of construction of the instrument whether any particular power has been conferred, but a "power of attorney" in order to constitute a person an attorney to perform any particular act must have some language specifying the powers conferred and which the attorney may exercise on behalf of his principal. A common form of "Power of Attorney" used in the transfer of stocks: Know all Men by these Presents THAT for value received, have bargained, sold, assigned and transferred, and by these presents do bargain, sell, assign and transfer unto_ make and execute all necessary acts of assignment and transfer thereof, ans to substitute one or more persons with like full power, hereby ratifying and confirming all that said attorney. or substitute or substitutes shall lawfully do by virtue hereof. have hereunto set_ In Witness whereof,. Power of Sale. A clause inserted in a mortgage note or in any other form of indebtedness which gives the lender the right to sell the property securing the debt, if not paid as specified. Wills sometimes give" power of sale" to executors, that property may be converted into cash. P. P. These letters are in place of " which refer. per procuration," to PR. The" ticker" abbreviation for "preferred." Preference Bonds. bonds." Practically the same as "income Preference Income Bonds. See "Income Bonds." Preference Shares. The term used in England as the equivalent of the American "preferred stock." Preferred Creditor. One who is legally entitled to an advantage over other creditors; entitled to payment of his claim in full before other creditors, not preferred, are paid anything. Preferred Ordinary Stock. This will be understood by reading "Preferred Shares (or Stock)." Preferred Shares (or Stock). In Great Britain "ordinary stock," so-called, is equivalent to our common stock." When, however, the "ordinary stock" is divided in two parts, the first half is referred to as preferred" and the second half as " deferred;" also mentioned as "B" and "A" stocks respectively. As a rule, the former not only ranks ahead of the latter as far as the dividend is concerned, but shares equally with it in the case of any winding up of the company. There is a maximum rate of dividend fixed beyond which the "preferred" shall not be allowed to participate in the earnings. When a dividend is declared, it is the common practice to declare it on the "ordinary stock," and then to state the relative amounts for the two classes. Those to These stocks are not, as a rule, "cumulative." which the "cumulative" privilege is attached carry the somewhat burdensome title of "non-contingent preference stocks." Preferred Stock. A stock which has a claim upon the property and earnings of a corporation prior to some other stock; that is, it comes after the bonds and floating debt, if any, but ranks ahead of what is known as common stock." When a "" preferred stock" is created, it naturally follows that it precedes another issue, called common stock." The first mentioned stock is about what its name indicates, it has preference over the common. The form of this pref 66 erence differs in various corporations, but, as a rule, in case of the winding up of the corporation, the preferred stockholders have the right to be paid out of the assets before the common stockholders receive anything. The conditions as to the payment of dividends on " preferred stocks " also vary. In some cases, a dividend must be paid if earned; in other cases, it must be paid before any dividend upon the common stock." It may be "cumulative" (see "Cumulative") or, after the common stock has received an equal amount, both may share alike and so on. The most common way, however, is to give the" preferred stock" the first claim upon dividends up to a certain per cent. The best example of this is in the case of the United Shoe Machinery Corporation preferred stock, which is entitled to receive 6% per annum before the common receives any. In this case, the earnings of the company are so large that the common stock, in actual practice, receives a higher rate of dividend than the "preferred," and sells in the market at a higher price. Most common stocks, however, sell at a lesser price than the preferred. second pre There are numerous cases of first" and ferred" issues, the nature of their preference being somewhat different from each other, but both have preference over the common shares. Sometimes "class A " and "class B " preferred stocks are issued, being simply another nomenclature for "first" and " second preferred.' Preferred shareholders, usually, but not always, have the right to vote at stockholders' meetings. In some instances the voting right per share is greater on the preferred than upon the common stock. Prem. Short for " premium." Premium. The percentage or price of a security in excess of its par or face value. Taking the face value as $100, a share of stock selling at 105 would be selling at 5%, or $5 per share, premium. The par values of various securities differ, however (see "Par"), therefore it does not argue that if a share of stock is quoted at 150 it is selling at a premium, for if, by chance, the face value of that share happens to be $500, it would really be selling, not at a premium at all, but at a material discount. There are exceptions to this, for which see reference to the stock exchange rules under "Par." Premium has other meanings, for which see "Agio" and Bonus," by the use of either of which a premium may be understood. Gold is at a premium when in order to obtain a dollar in gold it is necessary to give more than a dollar in some other money; at least, gold would be selling at a premium in relation to that particular money. During 1893 there was a premium on currency; currency was so scarce that in order to obtain enough for most pressing needs, cer |