Clearing-House Settlement. When a bank's representative has attended to his clearing-house duties for the day, and payment has been made to, or received from, the "clearinghouse," the " clearing-house settlement" for that bank has

been effected.

It is the adjustment of one bank with all the other banks of the association of the amounts due each other through the medium of the "clearing-house," payment being received, or made, in accordance with amounts due.

Clearing-House Sheet. (Read "Clearing-House.") The sheet on which the total amount of checks, etc., which a bank holds against all the other banks of the clearing-house, or against those which clear through members of the association, is entered, at the close of each business day. This sheet is presented with the checks (which are exchanged with the other banks) the following business day - that being the usual custom - at the clearing-house.

Clearing-House Statement. See "Bank Statement."

Clearing-House Stocks. Stocks which may be "cleared" through the "stock exchange clearing-house," to which subject reference may be had.

Clearing-Matter. All the checks, drafts, etc., which a bank presents at the "clearing-house."

Clearings. The amount of checks, drafts, etc., passing through the process of collection during any given time. (See Clearing-House.") The sum total of the collections as accomplished through the medium of the New York Clearing-House Association for any one day are recognized as the clearings" for that city for that day. "Clearance" or "clearances " may be used with this same meaning.

The manager of the New York Clearing-House Association gives the clearings for the year ending December 31, 1906, for New York City alone, as $104,675,828,656, and for the United States as a whole, $159,808,640,986. This shows the importance of New York from the standpoint of its clearings. London is the next city of importance in the world, and for 1905 the total of both "out-of-town " and " city clearings " for London amounted to £12,711,334,000 ($61,859,706,911).

Clique. A number of persons whose interests lie in the same direction, and who unite in their efforts to accomplish a certain result. In stock exchange parlance, a "bear clique," for instance, is a group, the members of which desire a decline in prices and use their best efforts towards that end.

The difference between a "pool" (to which subject refer)

very much less extent than ten years ago. Some banks have made no practice of it for several years, but still the custom exists.

and a "clique clique" is but slight. In the matter of a pool " there is generally some written or verbal agreement among its members for the purpose of accomplishing certain results, whereas, a " clique" is composed of persons whose interests lie in the same direction, and who work to a common end without any pre-arranged agreement.

Close Corporation. A stock company whose shares and management are in the hands of a few persons, and the stock of which is seldom, if ever, publicly offered.

Closed. The settlement of an account. In speculative language, the expression is used, "the account is closed." Suppose, for instance, the speculator has been buying and selling Union Pacific stock, running a marginal account with his broker (see "Margin ") and finally ends the transaction by buying or selling, as the case may be, and receives from the broker his profits, if any; then that account is closed.

Other meanings are transaction or trade completed and also "books close," which subject see.

Closed Mortgage. A mortgage under which no more indebtedness can be incurred; the amount of indebtedness authorized under the terms of the mortgage has been reached. Closed Out. All sold.

Close Money. Money rates fairly high, and loans not easily obtained.

Close Out. Means to sell.

Close Prices. Changes in prices by small fractions; or a difference between the bid and asked price of but, say, 1-8%. Closing Prices. The quotation of the day's last sale of each security.

Clover Leaf. The Toledo, St. Louis & Western R. R. Co. The name "Clover Leaf" was suggested by some imaginary resemblance of the three States in which this road is located Ohio, Illinois and Indiana to a clover leaf.

CLT. The "ticker" abbreviation for "collateral trust." CMP. The "ticker" abbreviation for "compromise." CN. The The "ticker" abbreviation for "consolidated" or "consols."

Coalers. The railways which do most of the anthracite coal transportation of the country; many of which have large coal mining interests of their own. Some of the most prominent of the coal roads are the Delaware, Lackawanna & Western, Central R. R. of New Jersey, Lehigh Valley, Reading, etc. (See "Hard Coalers " and "Soft Coalers.")

Coal Roads. See "Coalers."

C. O. D. Cash (or collect) on delivery. To be more explicit, the delivery of the goods will not be made except in exchange for the amount due.

Code. See "Cipher Code."

Coffee. See "Futures" and "Spot," which methods of trading are customary in "coffee." The trading unit is 250 bags, each weighing about 130 pounds. Fluctuations are recorded on the basis of 1-20th of a cent per pound, which equals five points, i. e. $16.25 on a 250 bag transaction. One cent per pound equals $325 on the same amount. The commission charged non-members of the Coffee Exchange of the City of New York is $20 for “buying and selling" 250 bags, or, as it is termed, "$20 per contract." The charge for members of the Exchange is $10 for the same transaction. The" margin" required under the rules is 50 cents to $2.00 per bag; the usual" margin" being $1.00.

Coin Certificates. Paper money specifically repayable in coin, such as our 'gold treasury certificates" and "silver treasury certificates."

Coin Notes. "Treasury notes of Act of July 14, 1890" are sometimes called "coin notes."

Coins. Pieces of money of a fixed weight, stamped by the authority of government, and employed as a circulating medium; or, as Jevons defines them, " ingots of which the weight and fineness are certified by the integrity of designs impressed upon the surfaces of the metal." Their value may be represented by the material of the coins, or may depend to a greater or less extent on the credit of the State.1

Col. or (Coll.). Collateral.

Collateral. Really "collateral security." This is a security for the performance of agreements, or for the payment of money, and is something deposited with the evidence of debt to satisfy the claim of the lender in case of failure on the part of the borrower to meet the indebtedness when due. For example, Prescott & Co desire to borrow $100,000, and to facilitate the operation agree to deposit with the bank which is to loan them the money, bonds or stocks of known value, and acceptable to the bank, having a market value of, say, $120,000; being salable at the time of loan for about $20,000 more than the amount borrowed. This $20,000 is called the "margin." Suppose the market value of these securities. declines to $100,000. By agreement, the bank could demand. Prescott & Co. to either pay off part of the loan, or deposit additional security equivalent to the decline in the market value of the collateral. If this is not forthcoming the lender

11896 Report of the Director of the Mint.

has the right to make a public sale of the securities; it being immaterial whether the loan is a "demand" or "time loan."

If, when the loan matures, Prescott & Co. are unable to pay it, the bank would have the right to sell the collateral, and from the proceeds first deduct the amount due for principal and interest; the balance, if any, it would pay back to Prescott & Co. In the case of a loan upon collateral security, therefore, the value and character of the collateral is the first consideration. A loan may be made with reasonable safety to a firm of even comparatively unknown reputation, if it is able to deposit security of established and well-known value, whereas, in the case of loans made without collateral, the financial standing and condition of the borrower must be the main consideration. Twenty per cent. is about the usual margin required.

Wool dealers often borrow money against wool, which, in that case, is security; so, likewise, in other kinds of business, similar loans are made.

Loans on "collateral" are usually made on call," as explained under "Demand Loan," but are, nevertheless, frequently made on time, for thirty, sixty, or ninety days, or even six months or a year. If they are made in this manner the time is usually for six months or less. They may be either "discounted" or made with interest payable at maturity, as the case may be. The borrower usually has the privilege of substituting collateral for that already pledged; that given in exchange, however, must always be satisfactory to the lender. In case of investment bankers, securities are changing from time to time as they buy and sell, or in the case of a stock broker who is buying and selling for his clients, the privilege of exchanging collateral is very necessary. In such an exchange as this, the borrower usually hands in with his new collateral an "Exchange of Collateral" slip, which describes the new security pledged as well as that withdrawn.

By the above it will be seen that collateral loans may be known as "demand collateral paper" or "time collateral

paper.

Form for a " Demand Collateral Note: "

9,000 Dolls..... Cts.

SPRINGFIELD MASS., Jan. 3, 1906. ON DEMAND, for value received, with interest at the rate of 5 per cent. per annum I promise to pay to The Cattlemen's National Bank, or order, at its Banking Rooms, Nine Thousand Dollars, I having deposited with said Bank, as General Collateral Security for the payment of this and any other liability, direct or indirect, of the undersigned to said Bank, now contracted or hereafter to be contracted, the following property, viz.: 100 Shares Mountain Manufacturing Company Stock, with authority, on the non-payment of any such liability, to sell and transfer, at any time or times, said property, or any part thereof, at " Brokers' Board or at public or private sale, without notice; and the said Bank, or any of its officers,

may become purchasers at any such sale, if public, or at Brokers' Board; and any property substituted for the above, or added thereto, shall be also covered by this agreement. A margin satisfactory to the holder or holders hereof to be kept good at all times, and this note shall be deemed to be due and payable immediately, anything herein before expressed to the contrary notwithstanding, on my failure to make such margin good upon demand by the holder or holders hereof, and they may immediately reimburse themselves by sale of the security.

After deducting costs and expenses of collection and sale, the residue of the proceeds of any such sale or sales may be applied to the payment of any then existing liability of the undersigned to said Bank, whether then due or not, returning the overplus to the undersigned.

Form for a "Time Collateral Note: "

9,000 Dolls..... Cts.

FRANK CASTLEMAN.

00

SPRINGFIELD, MASS., Jan. 3, 1906. SIX MONTHS after date, for value received, I promise to pay to The Cattlemen's National Bank, or order, at its Banking Rooms, Nine Thousand Dollars, I having deposited with said Bank, as General Collateral Security for the payment of this and any other liability, direct or indirect, of the undersigned to said Bank, now contracted or hereafter to be contracted, the following property, viz.: 100 Shares Mountain Manufacturing Company Stock, with authority, on the non-payment of any such liability, to sell and transfer, at any time, said property, or any part thereof, at Brokers' Board or at public or private sale, without notice; and the said Bank, or any of its officers, may become purchasers at any such sale, if public, or at Brokers' Board; and any property substituted for the above, or added thereto, shall be also covered by this agreement. A margin satisfactory to the holder hereof to be at all times kept good, in default of which after demand, this obligation shall become due and payable on demand.

After deducting costs and expenses of collection and sale, the residue of the proceeds of any such sale or sales may be applied to the payment of any then existing liability of the undersigned to said Bank, whether then due or not, returning the overplus to the undersigned.

FRANK CASTLEMAN.

Collateral and Participating Bond. A very uncommon issue. The illustration given under " Participating Bond" will apply in this case.

Collateral Income Bonds. An "income bond" secured by collaterals. (See "Income Bonds.")

Collateral Loan. The obligation or promise to pay of an individual, firm, or corporation, on demand or maturing in a year or less time, and which individual, firm, or corporation has deposited with the holder of the note, stocks, bonds, or other securities, which, in case of the note not being paid when due, may be sold by the holder of the note and so much of the proceeds of the same as may be necessary to satisfy the debt retained by the lender, and the balance, if any, returned to the borrower. (See "Collateral.")

Collateral Mortgage Bond. (Read Collateral Trust Bonds.") A" collateral mortgage bond," technically, should be secured by a deposit of bonds in turn secured by mortgage. But this title has been much abused, and bonds issued with