In London, this term is used when a stock is carried over as explained under "Contango" without any charge being made for the accommodation. This indicates that the bulls and bears about balance each other.

Evening Up. When those who are "long" of the market are selling out, i. e. " liquidating," at the same time that the "shorts" are purchasing to cover their contracts, so that both processes are going on simultaneously, it is called evening up." (See subjects in quotations.)

Even Lots. A number of shares of stocks evenly divisible by 100, as 700, 900, etc., share lots.

Even Up. To get back a loss.

Ex. Literally "out of," but as used in finance, meaning "without," "Ex-dividend" is equivalent to "without dividend."

Ex-All. Meaning that a security is sold with all rights, such as dividend due, privilege to subscribe to new shares, and all such advantages, are reserved to the seller.

Excess Reserve. Meaning the same as surplus reserve." Exchange. Simply expressed, it is this: White owes Black $100. Black likewise owes White $100. They meet and present bills against each other for the amounts. Each receipts his bill and hands it to the other, the two debts offsetting. No money has changed hands. This is the simplest form of "exchange," but upon it is based its whole intricate and complicated system. A "bill of exchange" is one of the earliest forms of credit.

"Exchange" is a method of effecting payments at distant points without the actual shipment of money or bullion. When these points are in different countries, it is "foreign exchange" and the instrument by which the payment is effected is called a "bill of exchange." Between two points of the same country this method of transferring the equivalent of money is called "domestic exchange in America and "inland exchange" in Great Britain.1

In the United States the term "domestic exchange" is not

'Conant states that "the term 'bills of exchange' is still widely used in Great Britain for Inland bills."

The terms "inland exchange" and "foreign exchange" have a different meaning from a legal standpoint under our State laws, as, for example, the Statutes of Michigan define an "inland bill of exchange" as one which on its face purports to be both drawn and payable within that State. Any other bill is considered a "foreign bill" so long as drawn without the State whether in this country or abroad. Example: One drawn in Detroit and payable in Grand Rapids is an "inland bill;" one drawn in Detroit and payable in Chicago, or drawn in Chicago and payable in Detroit, or in the same manner between New York and Paris, is, in each instance, a "foreign bill" from this standpoint.

commonly used to designate what are strictly such transactions. We are more apt to say, "New York Funds,' "Chicago Funds," or " check" or "draft on New York," etc.

A. K. Fiske very clearly describes a "bill of exchange" in this way: "The New York exporter, when he sends a cargo of wheat or cotton to England, draws a bill of exchange, which is in effect a draft payable to himself for the amount due, upon his consignee or upon a banker with whom that consignee has the necessary credit and upon whom the America exporter is instructed to draw for his payment."

If Allen in New York buys $1,000 worth of wool of Wright, in London, and the latter ships the wool and writes an order on Allen for the $1,000, this order or "bill of exchange" is deposited by Wright with his London bankers, and is known as" New York Exchange; " that is, it is good when presented in New York for $1,000, providing, of course, Allén can pay the same when presented. Now, instead of actually sending the order to New York and collecting the money for shipment to Wright, the common procedure is as follows: Some other London merchant, say Russell, becomes indebted to a New York merchant for $1,000; the former not wishing to go to the expense of shipping money to New York, applies, we will say for simplicity's sake, to the same bankers with which Wright deposited his order upon Allen; they sell an order against their New York agents for $1,000, to whom, in the meantime, the order upon Allen & Company had been sent for collection, the amount being collected and held by the New York agents to the credit of the London bankers. Russell forwards an order, representing the "New York Exchange," to the merchant in that city to whom he is indebted; this merchant presents the order to the New York agents of the London bankers and obtains payment. It will be seen, therefore, that one debt is made to offset another, and no money, in this case, has actually been transferred. This is the business of "exchange," so-called. The bankers buying and selling the same charge a reasonable profit for their services.

Such" exchange" as above is known as "foreign exchange," and quotations appear in the newspapers of the United States as Sterling (or Sterling exchange') 4.87," meaning that exchange on London could be bought in this country at the rate of $4.87 for each "pound sterling" English money. Or "Sterling at Berlin 20.44," or "at Paris 25.154," which indicates that London" exchange" was selling at 20.44 marks German money and 25 francs 15 centimes French money, at those points respectively.

Formerly, orders in the form of a "bill of exchange were used, but in present practice the buyer of a “bill of exchange

simply gets a check on the banker's agent at the foreign point desired.

In some cases, especially in a settlement of debts between North and South American points, " exchange" is not bought directly upon the city owed, but upon London. A New York merchant pays a Brazilian merchant by buying a "bill of exchange on London, which is acceptable to the merchant in Brazil, London being the common financial centre for much international business.

In a similar way, there may be a common financial centre for domestic points. New York is the best example in our country.

This same business is going on between cities in the same country, as, for instance, between New York and San Francisco. The expense of shipping money back and forth between such distant points is considerable, hence the debts of the merchants between the two cities are adjusted, as far as possible, by the buying and selling of "exchange," the same as between two points in different countries.

Exchange" is at a discount or premium according to whether there is too much or too little to supply the demand. This establishes the "rate of exchange." The shipment of gold from one country to another is the final adjustment of this "exchange" business. When debts accruing in one country against merchants in another are so great that there are not enough "bills of exchange," then gold, the usual form of export money, is shipped to adjust the difference.

The price of "exchange" may also be affected by the supply of gold (bullion) available for the debtor country to ship in case of need. The likelihood of there being a scarcity of gold would cause "exchange" to go to a greater premium than would result from a scarcity of actual exchange, with a good available gold supply at the debtor point. (See "International Movement of Gold.") "Domestic exchange" can always be figured in one currency, but "foreign exchange" has to be calculated in the currencies of the two different countries. In the case of buying a "bill" on an international "exchange" point, as in the South American example, three currencies have to be taken into account.

Foreign exchange " is always computed on gold as a basis; viz., that gold of equal weight and fineness is of equal value the world over. "Foreign exchange" is drawn in the currency of the country where payable, and paid for in the currency of the country of issue.

Under the subjects "Balance of Trade" and "Letter of Credit " more information may be found bearing upon this subject. Refer also to "Cable Transfers" and "Demand Bills."

Exchanges. A "clearing-house" (which see) expression indicating the amount of checks, drafts, etc., settled through its medium. Same thing as "clearings." Also the English equivalent of our "exchange as we use it in foreign change," for example. They use the plural, we the singular. Exchanges for Clearing-House. When this appears in a "bank statement "" clearings" are what is understood.

ex

Exchequer Bill. In time of sudden emergency, when money is needed for a temporary purpose, the British Government is authorized to issue negotiable, interest bearing, coupon bills of credit, due in five years; the interest being fixed each year but never to exceed 51% per annum. This is a form of indebtedness for short time borrowing.

These had their origin in 1696, but have been gradually superseded by "Exchequer Bonds" and "Treasury Bills."

Exchequer Bonds. In England, very much the same as "exchequer bills." They have a definite time to run, however, not exceeding six years, with interest at not greater than 5% per annum; the rate being fixed for the full period at the time of issue. This is a form of indebtedness for short time borrowing and is not confined to Great Britain. There they were first introduced in 1853.

Ex-Coupon. Without interest; coupon already due, or about to become due, detached.

"Ex-dividend," i. e. exclusive of dividend. Ex-Dividend. See "Dividend Off," meaning the same. Executor (or Executrix). The person named in a will as the one to see that its provisions are carried into effect.

Exhaust Price. (It is necessary to first understand "Margin.") A fall in prices to a point where margins are wiped out exhausted and when brokers may be compelled to sell out the securities for self-protection, unless additional margins are furnished.

Ex-Interest. Without interest; coupon for interest just due and detached.

This term is particularly used in reference to "registered bonds," which, inasmuch as the interest is forwarded to the holder by check, are, to a certain extent, treated more or less from the standpoint of shares of stock. When the checks for interest are sent out to registered bondholders, they go forward to holders of record as of a certain date. Any sale of such a bond upon or immediately after a certain date, or, in other words, the closing of the books, would be sold "exinterest; that is, the interest check would go to the previous holder and the purchaser makes his transaction upon that understanding. There is at times a difference in the quota

tions between the registered and coupon bonds of the same issue, equal to the amount of the coupon. A registered 6% bond, for example, on which 2% (four months) interest has accumulated, might be quoted at 106, which would be the equivalent of the same bond in coupon form selling at 104 "and interest." Registered bonds selling "ex-interest

at that time quoted about equally in price, as 104 "exinterest" and 104 " and interest " are equal one to the other. A better understanding of this may be had from reading "Registered Bond" and "Books Close."

Ex-New. A stock so quoted does not carry the privilege of "rights," that is, it is "ex-rights." (See those subjects.) Expert Accountant. See " Auditor."

Export Point of Gold. See " Gold Export Point."

Express Company Securities. Frank Haigh Dixon, professor of economics at Dartmouth College, in his article "Publicity for Express Companies," says, in substance, that the yearly receipts from this large transportation agency are nearly $75,000,000. There are six large companies, and a few of lesser magnitude. The four largest are the Adams, American, United States, and the Wells-Fargo. The first three named are organized under a New York law, granting them the right to issue transferable shares representing beneficial interests in the company, but every owner incurs all the liability of a partner. This is a fact to be considered in purchasing their shares. The Wells-Fargo is a Colorado corporation. Of the lesser companies, there are the Southern Express, the Pacific Express, the National, and two Canadian companies, besides numerous others organized by the railroads themselves, such as those operating over the Denver and Rio Grande, Great Northern, and Northern Pacific Lines. Besides all the above, there are, of course, many local companies doing a city or a city and suburban business.

It is understood that the interests of the larger corporations are so interwoven one with the other, and that they are all on such good terms with the railroads, that competition is almost unheard of, and, as matters are at present, it does not seem necessary to consider this factor in connection with the large companies. One point deserving of consideration, however, is the very remote possibility of the United States Government starting what would be termed a "parcels post." The inauguration of such a system would probably create an effective competition with the express companies.3

1 Atlantic Monthly, July, 1905.

The

2 The Wall Street Journal now sets this figure at nearly $10,000,000 greater.

3 The writer is of the opinion that some competition with the express