between any coin and its theoretical standard. A date will be fixed when the existing coins will cease to be legal tender, and as the old coins are retired they will be reminted. Free coinage of silver bullion into yuan pieces will be carried on by the Government at a seigniorage charge of 6 li per yuan, or six-tenths of 1 per cent. The system has been adopted with a view to establishing a uniform system for the present and as a step toward the establishment of the gold standard when China is in position to undertake that action. At present all authorities agree that such standard is impossible." In the U. S. Com. Reports Sept. 14, 1916, is the following: "According to Sec. V of the Nat. currency law the complete weight of the 50-cent piece is 3 mace 6 candareens, while the relative weights of silver and copper are 7 to 3. The complete weight of the 20-cent piece is 1 mace 4.4 candareens; the relative weights of silver and copper, 7 to 3. The complete weight of the 10-cent piece is 7.2 candareens; the relative weights of silver and copper 7 to 3." Cash Account. This is the account headed Cash in bookkeeping, under which all cash items received shall be placed upon the debit, or left-hand side, and all items of cash paid out, upon the credit, or right-hand side. The amount of cash on hand should always represent the difference between the footings of these two sides. "Cash" includes metallic money, bank bills, legal tender notes, checks, or other representatives of money. As it is impossible to pay out more cash than is received, it is clear that the credit side of the account will never be greater than the debit side, although it may equal it. Cash Assets. Actual money on hand or within easy reach. Property quickly convertible into money is often included. Cash Book. One of the account books used in bookkeeping, and one of original entry. In it are directly entered every transaction involving receipts or expenditures of cash, with a full explanation of each item. It is customary among many bookkeepers to balance this book at the close of each business day. The balance at such times should equal the amount of actual cash on hand. Cash Dividend. A dividend paid in money or its representative, in contra-distinction to a "stock dividend," to which refer. Cash Grain. Grain for delivery at once. "Spot Grain' has the same meaning. Cashier. In banks or financial institutions, primarily the one who has charge of the cash or securities. This title is most commonly used in connection with national banks, but seldom in the case of savings banks. The "cashier" of a national bank is an extremely important man, as he is the head executive officer, having direct charge of all the work of the bank, and to him are responsible all the bank's employees. He usually signs checks, statements, and various other papers of the institution; buys and sells exchange to a very large extent; he may discount paper and pass upon collateral securities. He must have every detail of the bank's condition at his fingers' ends, and be in a position to answer questions upon almost any subject in connection with the bank's affairs at any time. He acts as secretary whenever the directors' meetings are held, and, in general, is the most important active man in the institution. Of course the customs of various banks differ. In some the president, possibly the vice-president, may take very active parts and take over more or less of the work usually done by the cashier, but the above fairly describes a cashier's duties and responsibilities. 66 Cashier's Check. A check drawn by a bank against itself, and usually signed by its cashier if it has an officer with such title payable when presented at the bank drawing the same. Such a check is commonly used by a person whose own check, for the purpose desired, would not be so readily accepted as the check of some known bank. A cashier's check" may be used by a person not having a bank account, and, therefore, unable to draw a check of his own. Any such person may obtain a "cashier's check" at a bank by paying an equivalent in cash; the bank, possibly, making some slight charge for the accommodation. This check is also used by the bank itself in paying for securities, bills of exchange, in discounting notes, and generally in payment for supplies, expenses, etc., also for dividends to shareholders; but for this purpose a special form may be used. A check drawn by one bank against another in a distant place, in which it has a deposit, is not a "cashier's check," but " New York funds " (or money), " Boston funds," etc., depending upon the city in which the latter bank is located. The charge in this case is largely dependent upon the rate of "exchange" at the time upon the point against which the check is drawn. Cash Surrender Value. See "Surrender Value." Castings. Copper, which, from impurities, is defective in strength and electrical conductivity, but which can be used in making castings for ordinary purposes where great strength or electrical conductivity is not required. Cats and Dogs. Low grade securities; those of uncertain value; securities which do not belong in the investment class, but are highly speculative. Cattle Paper. A note that is secured by a mortgage on stock cattle, or cattle in the feed lot; that is, cattle which are being prepared for the market either by the producer or breeder, or by the feeder who takes developed cattle and fattens them. These notes are almost invariably secured by a mortgage on the cattle, and are not usually "discounted (see that subject), but with interest running from date. A chattel mortgage securing the note includes, in some cases, the corn which is being fed to the cattle. Strictly speaking, 66 cattle paper " would not include a note secured by a mortgage on dairy cows. These notes are mostly made by banks situated in, or tributary to, the grazing section of the country. Caveat. In the financial sense, a notice to stop payment. Caveat Emptor. "Let the buyer beware," i.e., the buyer takes his own risk. Cements. A term frequently used in London to designate the ordinary shares of the Associated Portland Cement Manufacturers. Cent. The smallest coin in value of the United States, con taining 45.60 grains of fine copper and 2.40 grains of tin and zinc. Legal tender in amounts not exceeding 25 cents. Cental. One hundred pounds weight, avoirdupois. Centavos. Subsidiary silver coins of the Philippine Islands of the following denominations: 50 Centavos of the weight of 208 grains 20 83.10 All the above to be, by weight, 900 parts of pure metal and 100 parts of copper alloy. One hundred centavos equal 1 peso, which in turn equals 50 cents in our money. One centavo is equivalent to of our cent. Minor coins of copper, metal, etc., of lesser denominations than the above are also in circulation. Centennial. Centennial Copper Mining Co. Centime. The smallest French coin, the one hundredth part of a franc, and equivalent to about one-fifth of a cent in United States money. 1 In December, 1906, owing to the rise in the market price of silver, the silver coins of the Philippines were changed. This was necessitated by the fact that the pure metal in the previous standard was worth more in the market than the face value of the coins, making it an object to melt up the coins and sell the silver as bullion. As a result the subsidiary coinage was changed, thus: 50 Centavos of the weight of 154 32 grains 20 " 61.728 " 30.864 All the above to be by weight 750 parts pure metal and 250 parts copper alloy. For the foregoing, I am indebted to Frank McIntyre, Captain 19th U.S. Infantry, Assistant to Chief of Bureau of Insular Affairs, Washington, D. C Central Reserve Banks. National banks located in New York City, St. Louis and Chicago. (See "Central Reserve Cities.") Central Reserve Cities. Certain of the largest cities in the United States in which all "member banks" in the "Federal Reserve System are obliged to maintain a certain percentage of "reserve upon their deposits. Such banks may act as "reserve agents " for "member banks" located in what are known as "reserve cities" and "undesignated cities." (Refer to subjects in quotations.) On Jan. 1, 1917, the "Central Reserve Cities" consisted of New York, Chicago and St. Louis. A better understanding of this whole subject can be had by reading the Federal Reserve Act, to be found at the end of the book. Certificates of Beneficial Interest. See "Beneficial Interest." Certificate of Deposit. An acknowledgment in writing given by a bank that it has received from the person named a stated sum of money on deposit.1 As a rule it draws interest, and may be either made payable on demand or at a specified time. If John Smith holds a "certificate of deposit" he cannot secure the money given over to the bank by drawing a check against it, but, instead, must either present his "certificate of deposit," or it may be presented by some one else after being properly indorsed by John Smith. Savings bank-books are to all intents and purposes certificates of this kind. Some banks reserve the right in their "certificates of deposit" or bank-books, to demand a certain notice, say sixty or ninety days, before payment. This right, however, is very seldom exercised except in case of money stringency or impending financial disaster. Certificates of this nature may be used to transfer funds from one point to another, the same as a money-order or a cashier's check. The certificate may be issued directly to the party depositing the money, and by him made payable by indorsement to whomsoever he wishes, or may be drawn directly to the party to whom it is wished to transfer the money. It must be borne in mind, however, that whoever receives the certificate must present it in person before he can receive the money, or forward it properly indorsed for collection. In case a partial payment is desired upon a "certificate of deposit "the old one is cancelled, and a new one issued for the balance due. 1 The Courts of California declare a "certificate of deposit" to be a negotiable instrument and in substance and effect the same as a "promissory note." CERTIFICATE OF DEPOSIT. A simple form of "certificate of deposit" is as follows: No.. DARTMOUTH TRUST COMPANY Boston, Mass. . . 19. s... This is to certify, That there has been deposited with this in current funds, with interest at the rate of per cent. per annum, upon surrender of this Certificate. DARTMOUTH TRUST COMPANY. Countersigned Teller. By Treasurer. A "certificate of deposit" may also be issued by, say, some trust company as a receipt showing the deposit of some security under a plan of reorganization or some such matter. Certificate of Incorporation. When it is desired to form an incorporated company, a paper called a "certificate of incorporation," or one having a similar title, must be filed with the Secretary of the State under which it is desired to incorporate. Such papers, in their requirements, vary in the different States, but in general must give about such information as follows: Names of the officers and the majority of the directors, name of the corporation and the purpose for which it is constituted, the location of the principal place of business, the kinds and amount of stock, the day of the first meeting, a copy of the articles of agreement, etc. Certificate of Indebtedness. Simply a floating indebtedness in more or less of a fixed form. Let us take the example of a corporation which wishes to borrow some large sum of a million dollars or more money for some definite period, say one year. It not being, perhaps, possible to make one loan to cover this sum, the amount may be divided into smaller notes of $5,000 or $10,000 denominations, and placed among different holders. Such a security might bear the title of "certificate of indebtedness." It is nothing more than a "promissory note." In case of failure on the part of the company to pay the same the holder has no recourse except application for a receiver. United States Certificates of Indebtedness are in effect promissory notes of the Government. |