above, depends upon two things: first, the value of the securities pledged for its payment, and their desirability if, through default, they become the property of the bondholders; second, the strength and ability to pay of the corporation actually issuing the bond and what obligation, if any, such corporation is under to pay in case of insecurity of the collateral pledged. (See "Convertible Collateral Trust Bonds.") Collection Charges. The charge made by a bank for the collection of a check, draft, or other item, upon points outside the city or town in which it is located. Each Federal Reserve Bank is now taking over this work for the benefit of the banks in its district. Collection-Clerk. This employee of a bank is responsible for such items as notes, time drafts, etc., that is, papers which are payable "on time." Items which are payable "on demand" do not as a rule come under his jurisdiction. Collection Items. See "Collections." Collection of Coupons. See "Coupons - Collection of." Collections. The "clearing-house" term indicating the checks, drafts, etc., which a bank presents at the "clearinghouse, or which it has for collection. Also referred to as "collection items." Colon. Monetary unit of Costa Rica, equal to $0.465 United States money. Columbian Half Dollar. By an act of Congress, August 5, 1892, $2,501,052.50 of silver half dollars, of special design, were minted in recognition of the Chicago World's Fair. Weight, 192.9 grains; fineness, .900. Legal tender to the extent of $10. Columbian Quarter Dollar. By an act of Congress, March 3, 1893, $10,005.75 of silver twenty-five cent pieces, of special design, were minted in recognition of the Chicago World's Fair. Weight, 96.45; fineness, .900. Legal tender in amounts not exceeding $10. Combine. Practically the same thing as a "trust," or more particularly a "pool." Also, a stock market term for a combination of brokers or others for the accomplishment of a certain object. Coming Out. Whenever we hear that securities are sold in the London market for the "coming out," it has reference to trading in the securities previous to the actual issue of the certificates themselves; i. e. the "coming out" of the certificates. "Coming out" must not be confused with "special settlement" (to which subject refer), and may indicate that such a settlement is not immediately expected; furthermore, it is understood that a "special settlement" will not be granted until the certificates are actually issued. When transactions are for the "coming out," it is supposed that the certificates will be issued within a reasonable time. Commercial Agencies. In New York are located the head offices of the two principal "commercial agencies" of this country; namely, Bradstreet's and Dun's. These agencies furnish subscribers periodically with books in which may be found the credit standing or rating of practically all the business men, firms, etc., who would probably need credit, not only throughout the United States, but in many other parts of the world as well. These publications are of great value to the banks, manufacturers, wholesalers, and others. The amount of money loaned, or goods advanced, is generally dependent upon the rating of the borrower or purchaser in one of the "commercial agencies." The agencies will also furnish special reports to subscribers upon any person in any part of the territory covered. Besides all this, they furnish general information to the public regarding the number of failures during a certain period, crop and business conditions, etc. In fact, these agencies are to-day a great factor in banking and mercantile life. There are many other smaller agencies each of which makes a specialty of some one industry. The first mercantile agency was created in New York in 1841. Commercial Banks. In several States, such as Kentucky and Michigan, there are banks bearing the above title. They are much the same as an ordinary "bank of deposit." The intent is not so much for the deposit of savings, but more the accepting of deposits subject to check to facilitate an exchange of commodities; to be of benefit to the merchants and business men in general. They carry on the usual business of banking by discounting and negotiating notes, drafts, bills of exchange, and other evidences of debt; lending money on real and personal security, etc. Their functions are very similar to those of national banks, with the exception, among others, of course, that they do not issue bank notes. In a broad sense, national banks, and, in fact, all "banks of deposit" are "commercial banks," but, as stated above, in certain communities there are those specially designated by that name. Commercial Bar. Explained under "Assay Office Bar." Commercial Bill. A draft, accompanied by a "bill of lading" and a certificate of marine insurance, drawn by a seller in one country against a buyer in another, on account of goods sold the latter. These drafts are usually sold by the "drawer" to some banking house dealing in foreign exchange, as by so doing immediate use of the money can be obtained. It is customary for the "drawer" of a "commercial bill " to make it payable to himself, and then indorse it as need may arise; unless he wishes to use the amount due him directly to offset a foreign debt of his own, in which event he may draw the bill in favour of the party abroad to whom the sum is due. For the different kinds of "commercial bills" refer to “Demand Bills" and "Time Bills." Commercial Borrowers. Borrowers of money, as set forth under "Commercial Paper." upon Commercial Discounts. Notes given by those engaged in commercial enterprises — dry goods, hardware, etc., which the interest is paid in advance matter under "Discount "). discounted (see 66 Sometimes the rate of discount" is meant by the term "commercial discount." Also, the discount allowed by the seller of merchandise to the purchaser on account of earlier payment than called for in the bill. For instance, unless otherwise stipulated, the wool dealer bills a sale of wool as "net sixty days, 1% ten days," meaning that the bill is absolutely due and payable at the end of sixty days, but that if the purchaser chooses to pay it before the expiration of ten days he may deduct 1% from the face of the bill. In the same way, in cotton yarn transactions, the bills call for "net sixty days, 2% ten days," and so on. Commercial Letter of Credit. See last part of "Letter of Credit." Commercial Paper. This is a very general term and is made in usage to cover many kinds of notes, acceptances, bills of exchange, etc. It is the general term used by note brokers, but they further distinguish between the various kinds of "commercial paper" by referring to the same as corporation paper, "business paper," "mercantile paper," etc., as explained under the several subjects. Commission. The charge made by any banker or broker for buying or selling securities for some one else; the banker's, broker's, or promoter's charge for services. When an agent or broker sells or buys a security for another, acting as a “middleman," he receives a commission for his services. In other words, he is "commissioned" to accomplish a certain act. In the case of a merchant who owns goods and sells the same to his customers, he makes a "profit," not a "commission; the distinction between a profit" and a commission " 66 being, that in the case of the former there is no "middleman"; that is, the owner sells directly to the purchaser; the difference between the buying and selling price being the "profit." In the case of a "commission" when securities or commodities are passed from the owner, through an agent or broker, to a third party- the buyer—the agent or broker receives a compensation called a "commission.' Stock Exchange Rules for Commission Charges: Each additional $50 or fraction adds $5 to commission. Commission House. Dealing only on a commission basis; neither speculating nor buying with the idea of selling in smaller lots to their customers, as does, for instance, the investment banker. Commission House Paper. A note given or sold by a commission house, such as one handling dry goods. Commitments. By one's "commitments" is understood his contracts or obligations. Common Carrier. One who undertakes for hire or reward to transport the goods of such as choose to employ him, from place to place. All transportation companies engaged in the express, freight, or passenger business are common carriers. The "Rate Bill" which passed Congress includes under this heading "pipe-lines" for the transportation of oil or other commodity except water or gas. Common Stock. That part of the capitalization of a company upon which dividends may be paid only after satisfying the requirements of the floating debt, bonds, and "preferred stock," if any. It represents the speculative ownership in a corporation, as a rule. At times, however, the earnings of the companies are so large that the common stock" receives much larger dividends than the preferred, and sells at much higher prices. When the earnings of a company very largely increase or there are indications of some profitable "deal," the "common stock" is apt to reflect it by a rise in price greater than the other securities of the same company. In some corporations after the common stock has received a certain rate of dividend, there is a division of all other earnings between the preferred and common stocks," or some other similar plan is adopted. This goes to show that a common stock" is not necessarily entitled to all earnings after payment of the preferred dividend. There are many "common stocks," paying no dividends, which sell at seemingly unreasonably high prices. This, among other reasons, is because it is expected that dividends will sooner or later be paid, or that the stock may some time be bought for the purpose of control, and, consequently, is valuable on account of its voting power. Although "common stocks" usually carry with them voting power, yet there are examples of corporations where the control goes to the preferred holders, although representing a par value far less in amount than the common. A common stock" which has a cumulative" preferred stock preceding it, is not so valuable from a dividend standpoint as if the preferred is "non-cumulative" (see the subjects in quotations), for unless the earnings of a company are so large as to make dividends upon both classes of stock almost assured, the "cumulative " feature may, at some future time, act to the detriment of the common. |