Subsidiary Company. A company belonging to, or under the management of, another corporation. The various operating companies whose stock is owned and controlled by the parent Holding Company, in such a manner that the corporate organization of such companies is still maintained, are known as its "subsidiary companies" or, to be more brief, "subcompanies."

Subsidiary Silver. In the United States "is legal tender for amounts not exceeding $10 in any one payment.' At the present time, the subsidiary coins are half dollars, quarter dollars, and dimes.

Subsidy. It is the custom of many Governments to give financial assistance to public enterprises railroads, steamships, and the like - especially at their inception, as without such help the prosposition might not be attractive to investors, and a matter of public need not developed. To encourage building railroads into unsettled regions, and pioneering work of that kind, the Government grants a "subsidy "gives to of so many thousands of dollars a mile of completed road, for example, and, with this assistance, the railroad goes on to completion. "Subsidies " vary greatly in their character and conditions. Some railway companies have been granted in this country large tracts of public land along their rights of way, which afterwards become valuable, as the country developed. Steamship companies are often allowed a very large annual sum for carrying the mails. In Canada and Mexico, many direct grants of money have been made; and so on.

The investor is, from time to time, encouraged to buy securities of a company by the fact of a Government subsidy" having been allowed it. This may be a very important factor, and enough so to make an otherwise insecure investment a good one.

"sub

Sub-Treasury. Unless otherwise specified, the New York sub-treasury is understood, although there are treasuries" in other large cities in the United States. The former is located on Wall Street, and through it the larger proportion of the Government's money transactions with the people are conducted. Such matters as payment of checks issued in settlement of Government bond interest; pension disbursements, the redemption of mutilated paper money, refunding and redeeming of Government bonds, etc., are

The first "sub-treasury" resulted from a change in the financial policy of the Government after the fall of the Second United States Bank, and was established in 1846 in Wall Street.

Besides New York City, there were sub-treasuries located at Baltimore, Boston, Chicago, Cincinnati, New Orleans, Philadelphia, St. Louis, and San Francisco; a total of nine, but the work is now performed by the Federal Reserve Banks.

among its many duties. The Assistant Treasurer of the United States is in direct charge.

The sub-treasuries receive money from the customhouses, post-offices, and such other departments of the Government, and are of material assistance to the people in telegraphic transfers of money from one section of the country to another. Between any two points in which there are such institutions, gold received at one and deposited with that "sub-treasury may be credited by telegraph to a person at the other" sub-treasury" point. Currency, likewise, for sudden needs, may be so transferred. The Government makes a charge for such accommodation.

An importation of gold at San Francisco from Australia may be immediately credited to parties in New York through the medium of the " sub-treasuries." By this method, London will often pay with Australian gold its own debts to New York.

Sub-Treasury Credit. See "Sub-Treasury Operations." Sub-Treasury Debit. See "Sub-Treasury Operations.” Sub-Treasury Operations. (First read "Sub-Treasury.") The following is an example of a newspaper treatment of this subject:

The sub-treasury was debtor at the clearing-house on Wednesday $131,129. There were no important items. The banks have lost to the sub-treasury since Friday $2,851,000, and for the same period the subtreasury was creditor at the clearing-house $653,780. The sub-treasury paid to banks $700,000 on telegraphic order against the deposit of new gold at the San Francisco mint.

Supposing the reader to be familiar with the " clearinghouse" system, the above will be clearly understood.

In each city where there is a clearing-house and a subtreasury, the latter is by courtesy made a member of the association, and "clears" through it practically the same as any bank.

The statement that it was "debtor" at the clearing-house means that there was a certain amount due from it to the clearing-house under settlement, and may be referred to as a sub-treasury. debit." The balance is usually the other way, however, and the clearing-house owes the sub-treasury, in which event it is referred to as "sub-treasury credit." The statement that the banks have lost to the sub-treasury

$2,851,000, means payments by them to the Government. The reference to a telegraphic order against the deposit. of new gold at the San Francisco mint, indicates that there had been deposited in the hands of the Government at San Francisco $700,000, which was quickly made available in New York City by a telegraphic order to the sub-treasury there from the San Francisco mint to pay it out in accordance with instructions given by the depositing party.

Sub-Treasury Receipts. Issued by the various sub-treasuries of the United States in receipt for money received from various sources, such as taxes, custom receipts, post-office receipts, and mutilated currency. The reason why new currency is not given in place of the old without the intervention of the receipt is that it takes time to count the money which is deposited, and not infrequently requisition has to be made on the Treasury at Washington for the new currency before the transaction is complete. The receipt given for mutilated currency is one "subject to count," and it will readily be seen that it would be impossible to count the old currency received and the new currency to be furnished in its place while the customer is waiting.

Receipts were issued, and now are issued, in non-negotiable form, for legal tenders or gold, if deposited with a sub-treasury, but do not differ in character from any other receipts issued by such offices.

Sucre. Monetary unit of Equador. On Oct. 1, 1905, as valued by the Treasury Department, it was equal to $.487 United States money.

Sugar. The American Sugar & Refining Co. Sundry Assets. (First read "Assets.") Miscellaneous property which has not been placed under some definite heading; which has not been classified.

Support. One" supports" the market when he buys freely as offers to sell are made, without endeavouring to make advantageous trades for himself as to prices; that is, buys at prices offered, so as to give the impression that there is a good demand and thus prevent a decline in prices, and, perhaps, inspire enough confidence among those desiring to sell so that they will regain their courage and not only stop selling, but begin to buy again..

Supporting Orders. Orders given to buy securities in order to "support" the market. (See " Support.")

Supporting the market" has the same significance.

Surety. A guaranty or security against loss, or for the carrying out of some agreed promise or act. A person or

company who so guarantees another acts as "surety," and any paper or bond given as evidence of the fact bears the same title. A surety company is one, which, for proper compensation, acts as surety."

Surety Company. See last subject.

Surplus. That proportion of the earnings of a business after paying all expenses for operating and making all provisions for interest on bonded indebtedness, dividends, insurance, taxes, rentals, etc., and is the amount of profits which can be carried forward into the next business period. When this amount of " surplus " is added to a similar previous accumulation, it is referred to as "total surplus."

The "surplus" of a corporation may be far greater than the capital. A good illustration is the case of the Chemical National Bank of New York, which, on Nov. 12, 1906, had a surplus of $7,200,000, and a capital of only $300,000.

Cash

i. e.

"lawful money

held

Surplus Reserve. by national banks in excess of the " reserve" requirements. (See "Reserve.")

Surrender Value. The "surrender value" of an insurance policy is what the company agrees to pay to the holder of the policy upon surrender of the same. This value is figured on the policy reserve and at a lesser sum than what has been paid in in premiums.

Suspense Account. An account under which items are entered, the final disposition of which has not been determined. An account in which an item is held in suspense until the proper account is ascertained, to which it is afterwards transferred.

Imagine a corporation to be sued for $10,000 damages. There is a chance that but a small part, or none of it, will be allowed by the courts. The company may see fit to transfer the full amount to " suspense account" pending the litigation.

Suspension. A temporary delay in meeting payments on the part of a concern perfectly solvent, but which, owing to a financial crisis or some unusual existing condition, may not be able to get its resources in shape to meet demands for a brief time.

Suspension of Specie Payment. This took place about Jan. 1, 1862, and continued until Jan. 1, 1879; both gold and silver practically disappeared from circulation except on the Pacific coast, where, it is estimated, there was generally about twenty-five million specie in circulation. Small change was so scarce that Congress authorized, first, the use of postage stamps, then, a modified form of the latter called "postal

currency," and, finally, paper money in fractional amounts of a dollar. There is practically none of the last in use now as money, but $15,245,183.88 is still outstanding, a little more than half of which is officially estimated as destroyed.

Sweating. A method of diminishing the weight of coins by shaking them in a confined space, as a bag; the dust so col.. lected and retained being a dishonest profit. This used to be a wide-spread evil in England and strenuous efforts were made to break it up.

Sweeten. To give more "collateral" or "margin." When a loan is asked for and the collateral offered is not satisfactory to the lender, the borrower "sweetens" it by improving the grade or adding more to it.

Swings. Ups and downs of periods of business activity. From the close of the Civil War these "swings," back and forth from good to bad times, followed this course;

Decline

Note the fact that, upon the whole, the periods of depression are of shorter duration than those of advance.

Swings" in market prices refer to the movement of prices in one direction followed by considerable change in the other. Like the action of the pendulum of a clock.

Switching. See "Grain."

Syndicate. A group of men, bankers, or any combination of the same, who combine their mutual interests for the purchase or control of certain properties or securities. The members of the syndicate are generally bound by what is called a "syndicate agreement; " in other words, a written instrument to carry out the terms of the agreement, signed by the parties. (See also " (See also "Underwriting.") Some person, firm, bank, or trust company is usually selected as a "syndicate