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Limited Order. This will be understood by reading "Limit."

Lloyds' Bonds. An English term for an obligation which may be given for an existing debt even although the borrowing power is exhausted. It does not have any mortgage claim upon the property.

Loaning at a Premium. See "Borrowing Stock."
Loaning Flat. See "Borrowing Stock."
Lombard. See "Lombarding."

Lombard Obs. (See "Lombards.") The preference shares or obligations of that company.

Lombarding. A "Lombard" is a note broker, or a bill broker, so termed, in London. This nomenclature arose from the fact that certain Italian merchants, years ago, settled in that city on Lombard Street, and carried on the business of banking. One occasionally may read, in foreign financial news, of the "Lombarding of bills." This indicates that foreign banks, for instance, instead of discounting notes, in the usual course of business, have purchased them through note brokers, or "Lombards." In this connection, the term "Lombarding," as defining the act of purchasing such a security, might very properly be used.

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"Lombardeer" and "Lombard" would have synonymous meanings.

Lombards. A London term for the ordinary stock of the Lombardo Venetian Rwy.

Lumber Paper. Short time notes for the payment of which lumber is pledged, or the plain notes of dealers in lumber whose credit is sufficiently well established so that it is not necessary for them to secure their indebtedness by any of their stock in trade.

Lumping. When a London broker buys, in one lot, more of a certain security than ordered by a customer, either for the sake of filling another order at the same time or even for his own account-he "lumps" his orders; buys in one "lump" more than enough to fill a given order.

Make a Book. In connection with "London Stock Exchange Transactions" (first see that subject), there is a distinction, which it is well to make, viz., that jobbers do not deal with the public at all, and brokers, instead of offering stock for sale to other brokers when they get orders, or buying from another broker, must, according to the London Stock Exchange rules, put the business through a jobber. There are jobbers in the miscellaneous market, jobbers in the railway market, and also in the industrial market. There are generally three

or four principal jobbers and a lot of small ones dealing in each class of security.

A jobber is a much more powerful man than a broker. In fact, on new issues, it is usually necessary to give him a little "underwriting," otherwise he will decline to "make a book," as trading in securities is termed upon the London Stock Exchange.

There are about twice as many jobbers as brokers.

Making a Price. (See third paragraph of "London Stock Exchange Transactions.") The naming of two prices by the London "jobber" one at which he will sell and the other

at which he will buy.

Making Down. When a customer in London buys through one broker, and sells through another, it may accommodate him to have the contract made directly between the brokers, rather than through the medium of the client, thus relieving the latter of any responsibility. They may "make down,' as the arrangement is called, as a matter of accommodation, but the brokers are not compelled so to do.

Management Shares. Substantially the same thing as "founder's shares" (to which subject refer), but more particularly designated in this manner because of having been given to the Managing Director, Manager, or other head officials of a company.

Market Turn. The difference between the buying and selling price of a security. (See "Jobber's Turn.")

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Marking a Bargain. When a transaction is made upon the London Stock Exchange, the "broker" enters it upon a slip of paper, which he signs and deposits in a box. This is not compulsory; consequently but a small proportion of the actual 'bargains" appear in the stock exchange "official list," which is made up from the quotations taken from the box, but it is a protection to the "brokers," who take this precaution, in the event of any question being raised by the clients for whom they have done the business.

Marking Board. When a "bargain," as it is termed, is made upon the London Stock Exchange, the price at which it is done, is put up, or posted, upon what is known as the "marking board," after which the quotation is printed in the "official list." (See subjects in quotation.)

Maturity. At first thought, it would seem that there were nothing to be said upon this subject that stocks have no fixed maturity and that every bond matures upon some definite date. But there are many exceptions to the above. In the first place, stocks are not necessarily irredeemable or without maturity-many of them, particularly preferred

stocks, may be redeemed by the issuing corporations; usually upon some definite notice, such as 60 or 90 days, and, customarily, at a premium, although stocks redeemable at par exist. Such callable stocks may be redeemable as a whole, or, in part, by lot.

Upon the other hand, it is not unusual for bonds to be issued in perpetuity; in fact, it is the common practice in Great Britain, in certain classes of financing, and we have one example in the United States, at least, in the case of the Lehigh Valley Railroad Co., which, in 1873, brought out an issue, part of which are known as "perpetual annuity bonds.” These do not mature unless interest is defaulted.

Some railroad bonds and most industrial and public utility bonds are callable, and usually at a premium. This affords the borrower the opportunity to retire the issue if desirable to refinance at a lower rate, or for any other reason. There are usually on the market many bonds which have actually been called for payment at a premium a few months hence and vast amount of bonds callable at a premium and quoted above the call price. The value of a bond called at a premium consists of the value of the bond similarly described called at par plus the present worth of the premium at which it is called, computed at the given yield rate and for the given time,

When a bond is callable before maturity at par its value should be computed to the date which shows the least yield to the purchaser, that is, to the callable date if it sells at a premium, or to maturity if it sells at a discount. The same principle is involved in the case of a bond callable at a premium. Its value must be computed to the date which shows the lowest yield. If actually called, or callable at a premium and quoted at or above the call price, it must be figured to the callable date.

Notice of bonds called is usually given from 60 days to 6 months prior to the date when they may be called. Such called bonds are often traded in like short term paper and computed at true discount.

If the investment in the ten years bonds of a given company would be satisfactory, there is no inherent reason why the same security would be less desirable if the bonds ran 15 years callable in 10 (assuming the yield, if called, is satisfactory). The net return for such time as the bonds may run beyond the callable date is the same as the coupon rate. The bond with the callable feature may offer a more attractive opportunity if only one understands the possibilities under the least, as well as the most favorable, outcome.

There are special Bond Values Tables to show the value and yield of short bonds actually called at a premium, also of longer bonds callable at a premium.

Member Bank. Any national bank, State bank or trust company which has become a member of one of the Federal Reserve Banks created under the Federal Reserve Act (see end of book), i. e. joined the Federal Reserve System.

Middies. Used in London to designate the ordinary stock of the Midland Rwy.

Milks. Used in London to designate the ordinary shares of the Chicago, Milwaukee & St. Paul Rwy.

Morris Plan. This is a plan devised for the purpose of lending money for any legitimate purpose at reasonable rates to persons of moderate means, such as wage-earners, salaried employees, and professional or business men. It avoids the necessity for the assignment of salaries and calls for no chattel mortgages or pledging of pawns. Interest is charged at the uniform rate of 6% per annum and "discounted" at the time the loan is made. An additional charge at the rate of $1.00 for each $50 or fraction thereof loaned, is charged the borrower to cover the cost of investigation. Character and earning capacity is the basis upon which the money is advanced. The endorsements of two other reliable persons, who agree to make the weekly payments, if necessary, are also required.

Repayments are made at the rate of $1.00 per week for each $50 borrowed. The applicant takes out what is known as a "C Certificate" for each $50 borrowed, and when 50 weekly payments have been made, the certificate becomes fully paid. Two weeks later the note becomes due; then the certificate may be surrendered in payment for the note, or other provision made for payment, in which event the certificate may be held as an investment at 4% per annum or exchanged for what is known as a "B Certificate" paying 5% per annum.

This method of loaning money to save people of small means from the hardships of assignment of wages or visiting the pawn broker, has spread rapidly throughout many sections of the country, and has the backing of well known bankers and business men in the communities where the plan has been adopted. It is, indeed, a boon to those to whom small loans are, at times, of great necessity for tiding over extraordinary expenses on account of illness and such matters.

Name Day. Same as "Ticket-Day."

Narrow Gauge. See "Standard Gauge."

National Banking Association. Same as "National Bank." Net Demand Deposits. For an understanding of the meaning of this term as used in the "bank statement," refer to "Net Deposits," page 272, and "Demand Deposits," in the Addenda.

Net Funded Indebtedness. As defined by the Federal Reserve Act, this term means "the legal gross indebtedness of the municipality (including the amount of any school district or other bonds which depend for their redemption upon taxes levied upon property within the municipality) less the aggregate of the following items:

"(1) The amount of outstanding bonds or other debt obligations made payable from current revenues;

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(2) The amount of outstanding bonds issued for the purpose of providing the inhabitants of a municipality with public utilities, such as waterworks, docks, electric plants, transportation facilities, etc.: Provided, That evidence is submitted showing that the income from such utilities is sufficient for maintenance, for payment of interest on such bonds, and for the accumulation of a sinking fund for their redemption;

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(3) The amount of outstanding improvement bonds, issued under laws which provide for the levying of special assessments against abutting property in amounts sufficient to insure the payment of interest on the bonds and the redemption thereof: Provided, That such bonds are direct obligations of the municipality and included in the gross indebtedness of the municipality;

(4) The total of all sinking funds accumulated for the redemption of the gross indebtedness of the municipality, except sinking funds applicable to bonds just described in (1), (2), and (3) above."

Net Time Deposits. To understand the use of this term in the "bank statement," one should read "Net Deposits,” page 272, and "Time Deposits," in the Addenda.

Ni'pence. An abbreviation for ninepence. This term has been used to denote various values in money. In England, the old shilling in current use about 1561 was called a "ninepence. A silver Spanish coin, equal to about twelve and a half cents, was the ninepence of New England.

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Nipper. Used to designate the Northern Pacific Rwy.

Nominal Debenture. A "debenture" (see that subject) in which the payee is named. More commonly used in England.

Nominal Stock Certificate. When, in England, the blank upon the back of a certificate of stock is filled in as described in the first part of "transfer in blank" with the name of the person to whom it is to be transferred, it becomes "nominal," so called.

Non-Exempt. See "Exempt."

Note of Dishonor. See "Notice of Dishonor."

Official List. The full title is "The Stock Exchange Daily Official List," and is the London equivalent to our "list" (to which subject refer). This is issued twice daily under the authority of the "Committee for General Purposes," of the London Stock Exchange. This committee consists of 30 members, elected by ballot each year; has extraordinary powers in the governing of the exchange, and in connection

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