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dividend records have been good and, on the whole, express company securities stand well in the investment list.

These corporations have heretofore effectually concealed much information from the public, as they have not been accustomed to make reports themselves, nor have they been required so to do by the Government, but the recent enactment of the Railroad Rate Law classes express companies as "common carriers," and brings them under the control of the Interstate Commerce Commission, and especially gives the Commission the power to demand annual reports.

Express Money-Orders. Another method of remitting money by mail, and very similar to the "postal moneyorders," but differing in these respects:

Express money-orders need no written application; they are payable upon presentation without the necessity of a duplicate being forwarded by the issuing office; are payable at all offices of the company, not at some special office, as by the Government method; may pass from hand to hand by continual indorsement (not being limited in number) and remain valid if not presented within one year. Rates run about as follows:

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For sums over $100, charges are based upon above rates. Example: $300, 3 × 30c. = 90c. $350, 3 × 30c. + the charge for $50 = $1.10.

Ex R." Ex-rights," i. e. exclusive of "rights."

Ex-Rights. (First read "Rights.") The sale of a stock upon which the privilege attached to its "rights" has been exercised or reserved. In any event, the purchaser obtains no privilege of that nature, and so understands it when making a purchase "ex-rights."

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EXT. The" ticker" abbreviation for "extended" or extension."

Extended Bonds. A bond of which the payment of the principal is put off to some future date; the issue not being replaced by other bonds, but the same ones being left in the hands of investors, the security behind the bonds remains the

companies may result from the hauling of freight and express by street railway companies, but that there is a possibility that even after such a limited competition might become established, the express carrying privilege on the street railways may be passed into the control of the larger express companies, the same way that they have absorbed it among the railroads.

same. In such an event, it is customary to attach sufficient new coupons to cover the interest for the time extended, or new bonds, coupons and all, may be given in exchange for the old. Most issues of this nature are extended at a lesser rate of interest than borne by the original ones. "Extended bonds" have stamped or printed thereon the essential facts of the extension, and, if there are old coupons which can be used, they are stamped or printed so as to show the lesser rate of interest.

Extended Insurance. This is an option under a life insurance policy which has " lapsed" (see " Lapse ") by which the insured obtains insurance for the face of the original policy for a specific length of time, without the payment of further premiums. Insurance of this kind is sometimes taken in place of a "cash surrender value" or "paid-up value."

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Extension Bonds. Secured by a first mortgage1 upon an extension of a railroad system, and usually guaranteed by the company proper. Besides being a first mortgage upon the extension, such a bond is often a second or “junior" mortgage upon other property. In the case of the "Pacific Extension 4's" of the St. Paul, Minneapolis & Manitoba Railway Company, the bonds are secured by a first mortgage on all the company's lines in Idaho and Washington and by a second mortgage upon its lines in Montana.

Whereas, this class of investment is dependent somewhat upon the amount of the issue in proportion to the proper cost of the extension, and the need of such extension to the larger road, yet the standing of the latter and the value of its guaranty are largely to be considered.

Extension of Mortgage. When a mortgage on real estate falls due, it may be agreeable to both the borrower and the lender to extend it. An overdue mortgage is perfectly good and no signing of papers or any legal act is necessary in connection therewith to make the claim of the holder of the mortgage good if he is willing to postpone payment. It is very customary, however, to fill out, sign and record, what is known as an "extension of mortgage," for by so doing if there is an agreement for the extension for a definite time, it will prevent the lender from demanding payment previous to that time, and is, therefore, a protection to the borrower. External Bonds (or Loan). An issue of government bonds sold abroad, as designated from money borrowed at home. Extra. See "Dividend, Extra."

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E. & O. E. These letters stand for errors and omissions

1" Extension bonds " may not be secured by a first mortgage, but if so would certainly be an exception to the rule.

excepted," and often appear on a statement of an account, so as to relieve the accountant from any personal liability for mistakes.

F

Face Value. The value of a security, regardless of any coupons, as appears in the security itself; the principal. (See Par Value.")

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Facilitating Process. See footnote to "International Movement of Gold," page 218.

Factor. A" factor" is ordinarily a commission merchant, differing from the common broker by having in his possession the goods which he offers for sale, although he may exhibit samples only. He is usually compensated in the way of a commission, but sometimes in other ways. Usually a broker or an ordinary agent trades in something not in his possession, delivery to be made either through him or directly between the parties between whom he is negotiating after the sale is effected. In the event of his advancing money on goods placed in his possession for selling, he has a legal claim to that extent upon the goods or proceeds after sale.

Failure. Bankruptcy, insolvency, or inability to meet one's engagements.

Falling. 'Falling market; " prices declining. False Certification. Same as "over-certification." Fancy Options. "Puts-and-calls" and "spreads prices considerably at variance with current market quotations.

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Fancy Price. A price too high for the time; not consistent with existing conditions or with prices of similar or other securities.

Fancy Stocks. High priced stocks which are looked upon as safe and desirable investments are what the investment banker understands by this term, but the stock exchange man thinks of a stock high in price and the quotations of which fluctuate widely as the result of manipulation.

F. and A. Interest or dividends payable semi-annually, February and August.

Farm Loans (or Mortgages). Loans secured by mortgages on farm properties.

The fact that in many sections of the country the lands in the agricultural districts are steadily rising in value has attracted many people towards them for investment purposes. With the exception of a few localities, especially in the East, where lands are either "run out" or of a poor quality, or

where prices have risen to a point beyond the earning capacity of the land, the history of farm values, in spite of the tremendously increased area under cultivation, has been one of fairly steady advance, always excepting, of course, periods of depression.

This condition of affairs is likely to continue in many sections of the country until prices there reach a point where capital invested ceases to bring satisfactory returns.

It is true that there have been many losses in farm mortgages, but such losses may generally be attributed to a desire for excessive interest rates, improper judgment of the local conditions, dishonest or too greedy agents through whom the business has been accomplished, who have been willing to recommend too large loans for the sake of the increased commission, or to the failure on the part of the one holding the mortgage, and who has been obliged to foreclose the property, to wait for a favourable time to sell.

The question of the agent suggests, however, that few investors are so situated that they can make personal examination of farms located at a distance, upon which they may have an opportunity to make a loan. This necessitates the selection of some one with an unbiased opinion in whom confidence may be placed, and there is, perhaps, no grade of investments which calls for a more careful selection of those with whom the business is done, than in the purchasing of farm mortgages.

The subject of farm mortgages is very deep and one extremely difficult to cover with any general rules. What applies as a conservative selection of a mortgage on farm lands in New England, might not apply at all in Kansas. In general, however, the nature of the soil must be considered, whether the location obtains sufficient moisture from natural causes; if not, what the irrigation rights are, if any. If it is a Western farm and dependent upon irrigation, the investor must ascertain whether or no the farm has the right to a sufficient amount of water at a reasonable price at all times. There are many farms located at the extreme lower end of irrigating canals, which, at times, may suffer from a deficiency of water supply The climate, the class of crops raised, quality and depth of soil, the nearness to a market, churches and schools, transportation facilities, the sufficiency of farm tools necessary to properly carry on agriculture by modern methods, whether or no such farming tools are covered by a chattel mortgage," the record which the farmer has made for some years back as a producer and saver, the reason for his needing the money and this last is a very necessary feature to consider, for, if the money is going for betterment of the property or for partial payment thereon, that is one thing, if it is to be used

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for some outside purpose, it should not be encouraged. In lack of personal knowledge of the character of the proposed mortgagor, inquiry should be carefully made among his neighbours and tradesmen, if possible. The probable ready market value of similar lands in the same locality should be ascertained; not their salable value during boom times, but during dull times as well, and upon the latter figures the probable market value of the farm ascertained, and a mortgage not more than fifty to sixty per cent. of the value made thereon, including, of course, a fair valuation for the buildings and improvements. Although buildings may add materially to the value of the farm, yet that is not where the earning capacity of the property lies. Therefore, in a security of this kind, the buildings should not be taken at more than 25% of the whole property. It is desirable that the borrower should be married and an occupant of the property. Unimproved land is doubtful security, and loans upon it should be made not only with great caution, but at a very low percentage of a conservative market value.

It is supposed that the lender will follow out carefully the usual rules for making a "mortgage," as described under the subject in quotations.

What one Western writer has said is of interest here:

"The farmer uses money in his business precisely as does the merchant, and his mortgage is no more to be considered as an evidence of lack of prosperity than the note of the merchant, given in exchange for goods. The farmer in the Corn Belt has been able to make legitimate profits during the past ten years on account of the steady rise in land value. From his income he makes a partial payment on lands which he wishes to acquire, and gives a mortgage to pay for the balance. This has been his savings bank and it cannot be denied by those familiar with the conditions that it is a good one. We are still an agricultural nation and land is the foundation of our national prosperity. When agriculture prospers, other industries also prosper."

Farm loans are practically free from market fluctuations, and are influenced but little, if any, by political changes, added to which they pay a liberal rate of interest.

Farthing. The smallest English coin, being one-fourth of their penny, and equivalent to about one-half a cent in United States money.

Fd. (or Fdg.). Funding.

Federal. Federal Mining & Smelting Co. (Silver and lead.)

Fee. To "owe in fee" is to have absolute possession of. Feeder. A branch, tributary, or smaller connecting trans

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