making the note due September 3d and not the 5th, as would have been the case had the note read due in "three months after date." Note this distinction, as it is continually arising. The note, therefore, matures September 3d. "Discount" must be figured, then, from August 5th to September 3d, as follows:

The "discount" will be figured on $1,012.33 at 5% for twenty-nine days, which amounts to $3.97. Wilson will receive, therefore, $1,012.33 less this last amount, or $1,008.36. The main point here is that to figure the "discount" on a note after its date and during its life, which note was made payable "with interest," the amount of interest is added to the face of the note and upon that sum the "discount" is figured for the unmatured time.

In Great Britain and Continental Europe, the term "discount" is very generally used as the equivalent of our "time money."

(See "Bank Discount" and "True Discount.")

Many things are "discounted" in the stock market and in general business-dealings. When something expected to take place in the future is reckoned upon in advance, and acted upon accordingly, the event is "discounted." As an example: Suppose, previous to a presidential election, stocks are selling at comparatively low figures, and it is thought that the election of a certain one of the candidates would be beneficial to general prosperity, and that if such an election should be realized stocks would consequently advance in price. This fact is "discounted" when the belief of the election is so certain that the advance in stocks takes place some time previous to the actual election.

Discount Clerk. A clerk only especially employed by the

larger banking institutions. He attends to all "discounted " paper; figures and makes payment to the borrower after acceptance by the bank; keeps record of bills receivable; is the custodian of the same, and obtains and keeps track of much information very necessary to the officers of a bank in relation to its loans.

Discount Day. Some stated day of the week upon which a bank" discounts" bills or notes.

Discounted. In the sense of anticipating an event. (See last paragraph of "Discount.")

The "dis

Discount Rate. (First read "Discount.") count rate" or the rate of discount is the rate of interest deducted in advance from the face of a promissory note. In other words, if the "discount rate" is 5%, the face of the note $1,000, the time which it has to run six months, 21%, or $25, is deducted from the face of the note, the bearer receiving, therefore, but $975. When the loan matures, however, $1,000 must be repaid.

Discount Rates. The rates at which first-class paper is being "discounted." (See "Discount" and "Bank of England Discount Rate.")

Discretionary Accounts. Accounts in which the buying and selling, the price, and the choice of the stock are left entirely to the broker. Beware of them! Look out for advertisements - of such! They ask the gullible public to send in its money; that the advertisers know just what the market is going to do, and if money is sent to them and left entirely to their discretion as to its expenditure, untold wealth will roll in to the senders.

The quickest way to force the utter absurdity of such statements upon the minds of those who are hunting for opportunities to separate themselves with great rapidity from their money, is to make known the fact that no stock exchange member is allowed to advertise the taking of such accounts.

Discretionary Order. The nature of such an order is explained by the last subject. One given a legitimate broker is usually, and always should be, accepted with hesitation. It is not good policy to either give or receive "discretionary orders" as it places too much responsibility upon the broker.

Discretionary Pool. For all practical purposes the same thing as a "blind pool; " at least, the one in control is allowed entire freedom to do as he sees fit with the interests of all. Dishonour. A failure to pay as agreed; a refusal to accept a draft or a bill of exchange.

Dishonour, Notice of. See "Notice of Dishonour."
Distillers. Distiller Securities Corporation.

District of Columbia Bonds. The bonds of the District of Columbia bear 3.65%, for the payment of which principal and interest taxes are levied upon the property within said District. But the faith of the United States is also pledged for the payment of these securities, so they are considered United States Government bonds.

Div. Division or dividend.

Dividend. This is the proportion of the earnings of a corporation received by the owners of its stock, and represents to them their profits in the enterprise. These profits are distributed in proportion to the par value of the stock. Suppose that a corporation with $100,000 capital enjoyed prosperous business and at the end of six months or a year had earned $15,000 in the way of profits. The directors of the corporation meet and decide that they will divide among the stockholders $10,000. Each holder of one share of stock (supposing the par value of such share to be $100) receives $10, which would be called a " dividend of 10%;" this would leave $5,000 still in the business of the corporation, which it had not divided among the stockholders. This could be treated in two ways; left on the books as " undivided profits," that is, profits which might be divided at some later time, or even possibly the following year, provided the earnings of that year did not come up to the expectations; or it could be treated as a surplus fund and called "surplus."

By this latter method it would be almost equivalent to an increase in the capital stock, and would represent, in this case, 5% of such capital; each owner, therefore, would have the right to value his stock for that much more accordingly. Of course, the distinction between "undivided profits" and surplus" is largely a matter of bookkeeping, but when put under the latter heading it gives rather a better impression, and lets the corporation enjoy a somewhat better standing than as if classed under " undivided profits; " for under the heading of "surplus" it indicates to the public at large an inclination on the part of the corporation to build up its capital rather than to divide up all its earnings.

When the creditors of a bankrupt receive payments they are called "dividends; payments made from time to time to the depositors of a bank in liquidation, or to the shareholders of the same, are "dividends." There are a great many applications of this word.

The dividends" of the earnings of any corporation are usually declared or paid at stated intervals; for instance, the first of January and the first of July of each year. If no "dividend" should be declared during the July period, with no intent of declaring any before the next fixed date,

which would be January, the July "dividend" would be said to have been "passed," or in other words, the company had passed its dividend."

Unless otherwise stated by the corporation declaring it, a dividend is presumed to be and should be paid from net earnings or profits.

Dividend Balance. The earnings of a corporation after deducting operating expenses of every kind, taxes, insurance, any expenditures charged against operating, interest on floating and bonded debt, and amount set aside for sinking fund. In other words, the earnings of a corporation which are available for dividends.

Dividend, Extra. The majority of corporations have established fixed rates of dividends upon their stocks. These are known as "regular dividends." Anything over and above this rate may be styled an "extra dividend."

Dividend in Liquidation. When a business or industry of any kind is being wound up, closed out, "liquidated," and money paid from time to time to those to whom it is due, the creditors, stockholders, owners of the business, depositors (in case of a bank), etc., these payments are called “dividends in (process of) liquidation.'

Dividend Off. The sale of a stock with the agreement that the dividend about to be paid shall not go to the buyer; or that the buyer of a stock is not entitled to the next dividend paid.

When a company declares a dividend, it usually fixes a day upon which its transfer books shall be closed. From this time, until the books are again opened, no transfers can be effected. (See "Books Close.")

Dividend On. The sale of a stock with the agreement that the dividend about to be paid shall go to the buyer; or that the buyer of a stock is entitled to the next dividend paid. Dividend, Stock. See "Stock Dividend."

Dividend Warrant. An order for the payment of a dividend to a shareholder is what is commonly understood, although there have been other applications of the term. In England a "dividend warrant " is a check for the payment of the dividend.

Divisional (or Division) Bond. A railway issue secured by a mortgage upon a division and not upon the entire property, but, as a rule, the direct obligation of the railway company itself. A"divisional bond," however, may cover a property afterwards taken into a consolidation. In that sense the term is merely used to distinguish such a bond issue from one upon the consolidated property, and would not, in that case,

probably bear the promise to pay of the latter. (See "Consolidated Mortgage Bond.") A"divisional bond" may bear the guaranty of the parent company, but an investor should not allow himself to feel secure merely on that alone, but should always consider the actual value of the property mortgaged; in other words, should judge the "divisional bond" purely upon its own merits, irrespective of the guaranty. Should the "division" not prove valuable to the main line, the guaranty might turn out to be worthless when demand for payment should be made of the "parent company" as has frequently proved to be the case.

Divisional Mortgage. See last subject.

Dls. The sign adopted in Mexico for our American" dollar." D. M. J. S. December, March, June, and September; interest or dividends payable quarterly beginning with December.

Documentary Acceptances. See "Acceptance " and " Documentary Bill.

Documentary (or Documental) Bill. A "bill of exchange (to which refer) accompanied by a "bill of lading," insurance policy, and invoice covering the shipment of goods, and which papers show the security which is behind the bill of exchange. In the case of a shipment of cotton or grain, certificates of inspection may be among the papers. (See "Documentary Commercial Bill.")

Documentary Commercial Bill. Some financiers distinguish between this subject and a "documentary bill" (to which refer) by considering the former as being used in case of a shipment of merchandise, manufacture, or produce, and the latter in the event of other property, such, for example, as securities; but custom would seem to designate a bill drawn against the shipment of stocks, bonds, etc., as a "security bill." "Documentary bills" of all kinds and "documentary commercial bills" are usually classed under the one heading of "Documentary Bills."

Documentary Rates. The rates of "exchange" charged by exchange dealers for "commercial" and "banker's bills." (See subjects in quotations.)

Documents. Papers accompanying a bill of exchange against a shipment of merchandise, and include, usually, the invoice, insurance certificate, and bill of lading. All or any of the following may also be included: certificate of inspection, certificate of origin, consular certificate, and letter of hypothecation.

Documents for Acceptance. Used in connection with the "documentary bill" of exchange, indicating that the bill