form prescribed by the Inter-State Commerce Commission, for the classification of the operating expenses of a railroad. It includes the salaries paid clerks and attendants and general officers, insurance, legal expenses, general office expenses and supplies, stationery and printing properly belonging to the same, and other expenses.

General First Mortgage Bonds. It is difficult to understand why the word "first" should appear in such a title as the above, as it is used. In practice, such an issue is either not secured by a "first mortgage" at all, but is just a plain general mortgage" (see "General Mortgage Bond ") or is, at the best, a "first mortgage" on but an insignificant part of the property, in which case, "general AND first mortgage" would be the proper title. To be sure, a "general first mortgage" may become a FIRST lien after the earlier lien issues have been paid.

General Fund. Money not appropriated for some particular purpose, but which may be used for general and miscellaneous

expenses.

General Indorsement. The same as "Indorsement in Blank."

General Mortgage Bonds. This title has taken the place of the old, but now disliked, "blanket mortgage." Secured by a mortgage upon the property of a corporation and subject to earlier mortgages placed upon parts or all of its property. This is a very common method of borrowing money on the part of railway companies, and has been necessitated in this country by its remarkable growth and development. The railroads, which at the time of their early construction provided inadequately for the enormous demands upon their capacity for handling traffic, as since developed, issued bonds covering the property at the time of its construction, many of which have not yet matured. The enormous increase in business of such a railway has demanded tremendous enlargements to its road and equipment, and, as the value of such property is largely in excess of the original mortgage or mortgages placed upon it, a "general mortgage," so-called, is issued, representing, in part, the value of the property in excess of the earlier mortgages. When such a "general mortgage" is issued, it is usually made large enough not only to provide for the needs of the company at the time of its issue and possibly for future extensions under proper restrictions, but to set aside in the hands of the trustee of the mortgage sufficient bonds to be later disposed of to replace the earlier mortgages as they fall due. This automatically results in a "general mortgage" eventually becoming a "first mortgage."

The investment value of the above depends upon the standing of the company, its net earnings available for interest charges upon the issue, etc., the amount of underlying liens, and, in short, what equity there is in the property above the general mortgage issue. In this connection read also "Consolidated Mortgage Bond."

George Smith's Money. A condition existed in the early days in the West, when many of the then recently created Territories were suffering from a deficiency in metallic money, and the lack of a proper system of "banks of issue." In 1839 two Scotchmen, George Smith and Alexander Mitchell, created a new form of money in Wisconsin by obtaining from the legislature of that Territory a charter for a Marine and Fire Insurance Company, under which charter, although it contained a special restriction against banking privileges, notwithstanding, the company advertised to " receive money on deposit and transact other moneyed operations." Certificates of deposit " were consequently issued in sums ranging from $1 up to $10, and were much in the form of bank bills. As there was a great popular need for something of this nature in the form of money, these certificates were soon in circulation through many of the adjoining Territories. They were redeemed in specie at the central office at Milwaukee and at agencies in other Western cities in New York exchange, at the then current rate.

The "George Smith money" was a good money, and was freely accepted through that section of the country so long as any of it was outstanding. It was always promptly paid upon presentation.

Gilt-edged. Highest grade; most conservative class of investments; those in which loss to the owner is least likely to occur. One writer indefinitely defines" gilt-edged" securities as "those suitable for the investment of trust funds." Give Up. To disclose the name of one's customer. GM. The "ticker" abbreviation for "general mortgage." GNT. The "ticker" abbreviation for "land grant," as "land grant bonds."

Gold Banks. Associations may be organized under the National Banking Act for the purpose of issuing bank notes payable in gold. (See " Circulation.") Such banks are known as "National Gold Banks," or " Gold Banks," and to take out such circulation must deposit with the Treasurer of the United States, in the same manner as prescribed for the taking out of ordinary circulation, United States bonds bearing interest but payable in gold,' but not exceeding eighty per cent. of

While the 2% Consols of 1930 are the only bonds which are payable

the par value of the bonds deposited. These notes are payable upon presentation at the bank of issue in gold coin of the United States and shall be so redeemable.

While Section 5185 of the United States Revised Statutes, authorizing the organization of "gold banks" has not actually been repealed, practically this result was obtained, however, by the Act of Feb. 14, 1880, authorizing the conversion of "gold banks" into "currency banks." As a result, there are, to-day, no "gold banks" in existence.

Gold Bars.1 Bars of pure gold. Bar.")

(Refer to "Assay Office

Gold Basis. A country is on a gold basis" when values are measured in gold; gold is the monetary standard. (See "Standard of Value.")

Gold Bonds. In America bonds payable in United States gold coin of the present standard of weight and fineness.

Gold Brick. Any unsound dishonest scheme or investment made to have all the appearances of honesty and soundness.

Gold Certificates. As a matter of convenience to the public, the United States Government has authorized the Secretary of the Treasury to receive deposits of gold coin and bullion in sums not less than $20, and issue certificates therefor in denominations not less than $10. Inasmuch as these certificates are receipts for gold, they are redeemable in gold coin by the Treasurer and by all Assistant Treasurers of the United States. The law provides that "the Secretary of the Treasury shall suspend the issue of gold certificates whenever the amount of gold coin and gold bullion in the Treasury, reserved for the redemption of United States notes, falls below one hundred millions of dollars." The Secretary is also empowered, in his discretion, to suspend such issue whenever and so long as the aggregate amount of United States notes and silver certificates in the general fund of the Treasury shall exceed $60,000,000; he must also see that at least one-fourth of all certificates outstanding shall be in denominations of $50 or less.2

On Feb. 28, 1905, the face value of these certificates outstanding amounted to $528,149,969.

They were not legal tender, but receivable for customs,

principal and interest in gold, yet, since the Act of March 14, 1900, provided that the Secretary of the Treasury shall maintain all forms of United States money at a parity of value with gold, it seems that all United States bonds would do for the purpose.

1 Prescott, in his "Conquest of Mexico," speaks of the ancient Aztecs using gold "cast into bars" as part of the regular tribute of the Southern provinces of the empire.

Act of March 14, 1900, as amended March 4, 1907.

taxes, and all public dues. They may be used as part of a national bank's "reserve.”

Gold Coinage. The United States Government provides for free and unlimited coinage of gold; that is to say, gold bullion of standard quality may be deposited at the mints in any amount and coined for the benefit of the depositor, without any charge being made for the coinage. If the bullion is not standard a charge is made for parting, or refining, or for copper alloy, as the case may be.

Although the mints may lawfully refuse to receive for coinage purposes gold bullion of less value than $100, in practice they do not do so.

Gold Coin of the United States. "Is legal tender at its nominal or face value for all debts, public and private, when not below the standard weight and limit of tolerance prescribed by law; and when below such standard and limit of tolerance it is legal tender in proportion to its weight."

Gold coin is issued by the Treasurer of the United States and all the Assistant Treasurers in redemption of Treasury Notes of 1890, United States Notes, and Gold Certificates.

Gold Corner. Described under "Black Friday."

Gold Exchange. The "Gold Exchange" grew out of speculation in gold during the Civil War, and was organized in 1864. It was here, i. e. the " Gold Room," as it was called, that the bull movement in gold was manipulated which resulted in the memorable collapse known as "Black Friday," to which refer.

Gold Exchange Standard. The monetary system under which silver and minor coins form the chief part of the circulation, but are kept at a fixed value in gold by government control of their quantity and by the sale of drafts on a gold exchange fund at par, subject to the usual charges for gold exchange.1

The Philippine Islands and Mexico are examples of the adoption of this monetary system.

ex

Gold Export Point. Whenever the prices of foreign change" reaches the point where it is cheaper to buy gold bullion, and ship same, to adjust a debt due than to buy "exchange," the " gold export point " is reached. Consideration is taken of cost of bullion, expressage, insurance, loss of interest during transit, etc. When rates are rising toward the export point they are referred to as "unfavourable."

The London Economist has for years been quoting the

The author is indebted to Mr. Charles A. Conant, the able author of many financial publications, for furnishing this definition of "Gold Exchange Standard.”

gold export point" at $4.89, and the "gold import point " at $4.827, but recently the reduced cost of freight and insurance, together with the shorter time consumed in transmission, have tended to bring the two points nearer together, and so, generally speaking, the "gold export point" is now considered to be $4.884 and the "gold import point," figuring interest at 6%, as $4.833.

Gold Export and Imports. See "International Movement of Gold."

Gold Import Point. Read "Gold Export Point," by which it will be seen that what conditions make for such a point in one country as against another, will naturally result in the "import point" in the other. When the price of London exchange, for example, falls to about $4.833 this point is considered to be reached. As it tends in this direction it is called "favourable." Nevertheless, on Dec. 29, 1906, "sight exchange" on London fell to the extremely low price of $4.8265.75; but no gold was imported. This was due to the fact that the Bank of England discount rate was ruling 6%, and the bankers did not wish to force an increase in the rate, which would have been the natural result of exporting gold from that country to America.

Gold Inflation. There is a theory that a relation exists between the supply of gold and the prices of commodities. Prof. Cairnes claimed that the rise in prices was the gradual result of the gold discoveries in Australia and California.

The space at the author's disposal will not permit of a covering of the ground here. Those desiring to thoroughly cover the subject cannot do better than to refer to Conant's Principles of Money and Banking," in which he treats most exhaustively upon the matter.

Gold Movement. See "International Movement of Gold." Gold Note. Another very common term for "gold certificate." It is also used in reference to any promissory note which calls for payment in gold.

Gold Point. By this may be understood either the "gold import point or the "gold export point " to which subjects reference may be had.

Gold Product of the United States. The Secretary of the Treasury gives the estimated product of this country for the calendar year 1904 as $80,464,700, and for 1905, as estimated by the mint, it was $88,180,700, and for 1906, $96,101,000.

1 Since the Secretary of the Treasury has established the precedent as explained under the first foot-note to "International Movement of Gold" this changes the "import point."