rates are low, and that the borrower is easily accommodated.

Money Circulation. At this time of writing, Feb. 1, 1907, our" money circulation" is equal to $33.96 per capita, with an estimated mainland population of 85,484,000. The Treasury Department estimates that to maintain the present per capita circulation the increase in population of the country makes it necessary to add about $50,000,000 to the monetary stock each year.

Money Market. By this is understood not only the interest and "discount" rates quoted by those having money to lend, such as the banks, trust companies, etc., but those actually engaged in the business of lending it.

Money of Account. A denomination of money used to reckon in, but not actually coined. The gold dollar of Newfoundland may be considered as such, as it is not coined; the $2 gold piece and silver and copper coin of lesser denominations than the dollar are the current pieces.

Money-Orders. See "Postal Money-Orders."

Money Pools. See footnote to the subject " Pool."

Money Rates. This is a heading or term often met with in financial articles, and indicates the interest or "discount rates quoted by those having money to lend. The price charged for money loaned.

Money to Move the Crops. See "Movement of the Crops." Money, World's Stock of. See " World's Stock of Money." Monometallism. Coinage which calls for the use of one metal only as a standard of value; a system of coinage by which only gold, or some other kind of metallic coins, are recognized as "legal tender." For example, about the year 1851 when the gold mines of California and Australia produced gold in large quantities, Belgium demonetized gold and became silver "monometallic." (See " Bimetallism.")

Monon. Chicago, Indianapolis & Louisville Ry. Co. (Controlled jointly by the Louisville & Nashville and Southern Ry. Companies.)

66

Monopoly. There are many different views as to the true meaning of this word. One prominent writer defines it as a grant by the government for the sole buying, working, making or using of anything." Another and probably much nearer the truth where within a certain territory all sales of a certain article, or the doing of a certain act, is in the control of a single person, or combination."

Prof. Ripley says: "If the tendency towards combination means anything, it means the substitution of centralized and consolidated management for the rivalry of

independent concerns; and this may fairly be termed monopoly."

The Standard Oil Co. is a good illustration.

Some "franchises" are more monopolistic in character than others. A street railway or dock franchise more so than the franchise of a water, gas, or electric lighting company. Montreal & Boston. Montreal and Boston Consolidated Mining & Smelting Co. (Copper.)

Mop. Missouri Pacific

Railway Company.

Mo. Pac. (or Mopac.). Missouri Pacific Railway Co.

Moratorium. The law regards this as a legalized delay of a payment due. During the Russo-Turkish War, Russia established a "moratorium" by which the payment of private debts was suspended for a fixed period. A legislative act may legalize suspension of payment on the part of a Government bank.

Morgan Interests. Certain corporations partially or entirely in the control of the firm of J. P. Morgan & Co., consisting in part of the Reading, the Central Railway of New Jersey, Atlantic Coast Line, the Louisville & Nashville, Northern Pacific, Great Northern, Chicago, Burlington & Quincy, and the Southern Railway Companies. Also the United States Steel Corporation and General Electric Company.

Mortgage.1 An instrument signed, sealed, and given by the borrower (or "mortgagor ") to the lender (or "mortgagee"), or to a third party who holds it as trustee for the lender, by which the latter has the right to possess himself, by following proper formalities, of property described in the instrument, in case the borrower does not meet his indebtedness as set forth in the conditions agreed to at the time of creating the debt. In general, a "mortgage" is, to all intents and purposes, a legal transfer of title to property to take effect only in case the money is not paid to secure which the transaction was given. It is a method of securing to the lender certain property, in case of failure to pay on the part of the borrower. A wife must also sign and acknowledge the instrument.

A "mortgage" may be given to secure the performance of other conditions than the payment of a debt, and sometimes is. The word "mortgage" is used to mean either the act of Many of these documents, preserved in the British Museum, are records of deeds and the partition of real estate, but a few involve loans of silver at interest, and these become more numerous in the reigns of Nebuchadnezzar and Nabopolassar (625-604 B.C.). Loans secured by mortgage on land and guarantee bonds are among the curious commercial documents of these early times." "The Principles of Money and Banking," Charles A. Conant.

"mortgaging" or the instrument by which it is effected, called the "mortgage-deed." (See " Extension of Mortgage.")

Proper caution should always be taken to ascertain that the title, or legal ownership, to the property to be mortgaged is in the party giving the property as security for the debt, and for this purpose a lawyer is usually engaged. There are, however," land title companies," also called " title guarantee companies," and "title insurance companies," which make a business of looking up titles and usually guaranteeing their validity. A paper is sometimes given showing the records of the successive ownerships of the property and of any incumbrances thereon, which is called an "abstract of title," or a "search."

If a mortgage is to cover buildings or property subject to destruction by fire, the lender should ascertain that there is sufficient insurance for his protection and that the insurance policy (or policies) are indorsed by the agent or company somewhat as follows: Payable in case of loss to mortgagee, as his interest may appear."

After the mortgage has been delivered to the lender of the money, that is to say, the "mortgagee," he should promptly send it to be "recorded" in what is called the Registry of Deeds Office at the county seat. This is to prevent a dishonest mortgagor "giving a subsequent mortgage upon the property, and which might be recorded ahead of the first one given.

Mortgage Bond. A promise to pay in the form of a bond and secured by a mortgage on property.

Mortgage Collateral Trust Bonds. See first paragraph of "Collateral Trust Bonds."

Mortgage Debenture. This is explained under "Debenture

Bond."

Mortgage-Deed. See "Mortgage."

Mortgagee. The individual, firm, or corporation, to whom property is mortgaged; the one holding the mortgage; in other words, the lender of money.

Mortgage Sale. The sale of property mortgaged as security for the payment of a debt or the fulfilment of a contract, as explained under "Foreclosure."

Mortgagor. (The proper spelling of this should be "mortgageor," but by custom the "e" has been dropped.) The person, firm, or corporation which signs or gives a mortgage against property; the one who grants the estate as security for debt; in other words, the borrower of the money. The man who mortgages his house and land as security for $10,000 is the "mortgagor."

Movement of Gold. See "International Movement of Gold."

Movement of the Crops. New York is our great money centre, and where country banks may keep one-half their lawful reserves. In addition, when money cannot be profitably employed elsewhere, it still further accumulates there as interior banks are allowed interest upon their New York deposits.

When the South prepares to harvest its cotton crop and the West its grains, a feeling of anxiety pervades the money market, for then the country banks will need to recall their New York balances to afford the planter and farmer the necessary accommodation to carry him through the harvesting and crop moving period, or to furnish the middleman the means to purchase the produce. During these periods the available supply of money for Wall Street affairs is sometimes so severely curtailed that interest rates advance sharply and possibly the stock market is affected. There is a gradual return flow of money during the winter and spring.

The call of the harvest for currency begins to make itself first felt in July in the south western reserve cities, for then the winter wheat begins to ripen. The country banks in Oklahoma and adjacent territory, as well as the Kansas City and St. Louis banks, experience the demand, not only for small money with which to pay the harvesters, but for loans from the middleman. As the stock of money in that section is depleted Chicago, New York, and the Eastern money centres are then, in turn, called upon. Then, as the season progresses, and crops in various sections of the country are harvested, a flow of currency from the East to the South, to the West and to the Northwest sets in and does not cease until the cotton, corn, and wheat of the country are all marketed and the farmers' work for the season is over."

" 1

Foreign countries, of course, experience this same harvest demand for money. In Austria, the Austro-Hungarian Bank is called upon to largely increase its note issues during the month of October, which in that country is the harvest month. Germany likewise feels the call during September.

The size of the harvest and the prices obtainable are very important factors. Their influences are felt throughout the land and abroad. The available supply of grains and cotton for foreign shipment may be of great importance to Europe and Asia. Good crops and good prices, so that the surplus may be shipped, mean large earnings to many railroads. These earnings for the crop year of 1906 are estimated at

1

Report of the Special Currency Committee of the Chamber of Commerce of the State of New York.

$524,764,025. Crop statistics are studied with great interest by all speculators in "granger" road securities. Business throughout the land is to a great extent influenced by the yearly product of the agricultural sections. Do not forget that the United States is still, to a large extent, a farming country — nearly fifty per cent. of the people being engaged in agricultural pursuits and that what affects the farmer affects us all.

The crops are one of the most important of all the business barometers, as by them future conditions may be to quite an extent predicted.

MTG. The "ticker" abbreviation for "mortgage."

Municipal Bond. Any legally authorized bond issued by village, township, city, county, State, or any territorial subdivision of the same, the payment of which must be accomplished through the collection of taxes, assessed upon the property embraced in the division or subdivision issuing the bond.

Read the matter under "Attorney's Opinion" and apply in the purchase of a bond of this class. Other facts to be ascertained are: The "net indebtedness "2-considering this from the standpoint of its ratio to the "assessed valuation" what revenue producing property is owned, whether or no there is a sound "sinking fund" plan or other method established for the ultimate payment, rather than refunding" the indebtedness, the past financial standing of the municipality, and the length of time since there has beenif ever default in its obligations. If there has been one, the reason of it should be ascertained and judgment taken accordingly. Then one should consider the character of the population, and the class of citizens administering public offices, and who are likely to do so in the future. There is good reason for not buying bonds of a city cursed with frequent strikes, and dependent upon one class of industry. A city wholly dependent upon the lumber business is not a good risk, for example. Is the community experiencing a "boom?" If so, be sure that its debts are not being contracted along the same lines. Also consider the surrounding country and its resources, and the likelihood of the muncipality in question growing or losing in population. There are so many things to be considered in selecting a bond of a municipality whose credit is unknown to the purchaser, that but a general idea can be given here. The circulars of bond houses set forth with much exactness most things necessary to know. They

1 Figures furnished the writer by G. J. Grammer, at the time, Vice-President in charge of traffic of the New York Central Lines.

2 All subjects in quotation marks will be found explained under their separate headings.