Postal Savings Banks. A good illustration of the postal savings bank is a system in vogue in the Philippines. It is set forth by an Act passed by the Philippine Commission on May 24, 1906, and under which many banks have been established. It seems that these institutions are divided into three classes. At those of the first class, deposits are received and withdrawals permitted to any amount not exceeding, of course, the amount of deposit. In the case of the second and third classes, a limitation is placed on amounts which it is permissible to deposit or to withdraw at any one time; and also upon the aggregate deposits which may be made during any one month to the credit of any single account. Banks of the third class receive deposits only in the form of postal savings bank stamps; while in the first and second classes both currency and stamps are received on deposit.

In the event of credits or withdrawals on the part of charitable or benevolent associations, the maximum amount permitted is double that of other depositors.

These postal savings bank stamps, so called, are on sale at all such banks in the Islands, and are in denominations of 5, 10, and 20 centavos (one centavo equals about one-half of our cent). The purchasers of these stamps are furnished, without charge, cards arranged with ten or twenty spaces each, bearing a distinctive number and of three different colours; this last for the three denominations of stamps which are to be pasted thereon. When these stamp cards are filled out, they may be deposited in any postal savings bank in the Islands in lieu of money equivalent to their face value. When such stamps are deposited, they are cancelled and an entry is made to the depositor's credit, but if cancelled they are redeemable at face value in postage stamps. One advantage is that one may make deposits to the credit of, or withdrawals from, his account at any of the postal savings banks in the Islands. Deposits in postal savings banks are not subject to taxation in the Philippines, either by provincial, municipal or Insular Government.

From the foregoing an idea of the principle of this system of savings may be gathered. The plan is not a new one, the British Post Office Savings Bank system having been started in September, 1861, for the general purpose of encouraging savings on the part of the poor. From its very inception it appears to have been popular, for, in the first year there were 453,634 depositors, with over $6,000,000 deposited. This system has grown, until, at the beginning of the calendar year 1906 the deposits had reached the immense total of $740,248,862. At present, the management of this Savings Bank System results in a small loss to the Government, but

it is expected that before long the system will pay its

way.

Post-Bills. Issued by the Bank of England for not less than £10, drawn payable seven days after sight, and “ accepted " at the time of issue. These first came into use Dec. 14, 1738, the intent being to foil the highway robbers, as the interval before payment would be due might give time to stop pay

ment.2

Post Dated Check. One dated ahead. No bank should pay a check earlier than the date entered upon it.

Posted Rates. Bankers dealing in foreign exchange post a daily table of rates (or prices) for exchange, which is for use of the general public, but may differ from "actual rates," which are private terms made to brokers or other buyers for large sums and somewhat less than the " posted rates." "Posted rates" are sometimes referred to as 66 nominal rates." Post-Office. A nickname for People's Gas Light & Coke Co.; the "ticker" abbreviation being "P. O."

Pound. The English unit of value (formerly the shilling was the unit) equal to $4.866 in United States money; the sign for it being £. The adding of the word "sterling" to pound," is to designate a pound in money from a pound in weight. Also the monetary unit of Egypt, equivalent to $4.943, and written thus: £E.

Pound Sterling. See "Pound."

Power Company Bonds. Within the last few years this class of bonds has come into considerable prominence. The ability to economically transmit electrical energy a great distance to generate power is the underlying factor in this industry. With a good water-power, and a demand for power at satisfactory prices within a reasonable distance of the property, there should be little question as to the success of these companies as a class. A low cost of operating has resulted in large profits in many instances. Far-seeing financiers look forward to a time when either the price or scarcity of coal will create a tremendous demand for electricity generated by water-power, and there is a growing belief that the better selected and located of such powers will become very valuable. The rapid inroads upon Niagara Falls for such a purpose, and the enormous amounts of money which have already been spent there in development of power companies, is an indication of this belief.

'This information upon the British Post Office Savings Bank System was furnished the author by Albert Halstead, United States Consul, at Birmingham, England.

2 J. W. Gilbart.

Gold is believed to have been first coined in England in 1344.

In selecting power company bonds as an investment, the usual facts as regards class of men behind the enterprise, management, contracts for business, etc., should be taken into consideration. But the main facts to consider are: The sufficiency of water-power for all time to come, and a plentiful water supply throughout the year; the location of the plant itself near enough to industries of a stable character to create a permanent demand for the electricity generated; the likelihood of competition from other water-powers in the same section; if the water-power is not owned, the right to operate same must endure for a longer period than the life of the bond issue; and, finally, the climatic conditions under which power is generated and distributed, and the cost of fuel in that particular section, should be carefully studied.

To illustrate with regard to this last: In California, the price of coal is high, likewise fuel oil, except in sections favourably located as regards the oil wells. That State is practically free from thunder and lightning, and many of the plants are situated in sections of almost perpetual summer, all of which is conducive to cheap maintenance.

In some of the mining regions of Mexico most of the fuel is brought on the backs of donkeys, making the cost of generating steam power very great (about $200 per horse-power per year). Many water-power companies can sell power very profitably at $25 per horse-power.

It does not follow that the conditions mentioned in the last two paragraphs are essential to the successful conduct of such a company, but are some of the things favourable to success.

Other facts conducive to economical management in the operating of enterprises of this nature are, that they are naturally free from the dangers of anti-trust legislation, labour disputes, devastating fires, catastrophies, such as wholesale railroad accidents, and abnormal rises in the cost of raw materials, some, or all, of which factors may have to be considered in other industries.

Inasmuch as " power bonds" are a somewhat new security upon the market the investor has been able to obtain profitable interest returns by purchasing them, but there is very little question as to the extremely safe character of many of these issues.

Power of Attorney. In financial matters, a written or printed paper signed and witnessed or acknowledged before a justice of the peace given by one person to another, whereby the latter receives authority to sign a paper or document, etc., in the former's name and stead, such signature having the same force and value as if signed by the person delegating the authority. "Powers of attorney" are much used in the transfer of stock certificates.

It is necessary that a "power of attorney," in order to confer any authority upon a person, must specify the powers conferred. The language used may be, and frequently is, general and somewhat vague, in which case, it is a question of construction of the instrument whether any particular power has been conferred, but a "power of attorney" in order to constitute a person an attorney to perform any particular act must have some language specifying the powers conferred and which the attorney may exercise on behalf of his principal.

A common form of "Power of Attorney" used in the transfer of stocks:

Know all Men by these Presents

THAT

for value received, have bargained, sold, assigned and transferred, and by these presents do bargain, sell, assign and transfer unto.

make and execute all necessary acts of assignment and transfer thereof, and to substitute one or more persons with like full power, hereby ratifying and confirming all that said attorney.

Or

substitute or substitutes shall lawfully do by virtue hereof. have hereunto set.

In Witness whereof,.

Power of Sale. A clause inserted in a mortgage note or in any other form of indebtedness which gives the lender the right to sell the property securing the debt, if not paid as specified. Wills sometimes give" power of sale" to executors, that property may be converted into cash.

P. P. These letters are in place of "pro procuration," to which refer.

PR. The ticker" abbreviation for "preferred."

Pref. Preferred.

Preference Bonds.

bonds."

Practically the same as "income

Preference Income Bonds. See "Income Bonds."

Preference Shares. The term used in England as the equivalent of the American "preferred stock."

Preferred Creditor. One who is legally entitled to an advantage over other creditors; entitled to payment of his claim in full before other creditors, not preferred, are paid anything. Preferred Ordinary Stock. This will be understood by reading "Preferred Shares (or Stock)."

Preferred Shares (or Stock). In Great Britain "ordinary stock," so-called, is equivalent to our "common stock." When, however, the "ordinary stock" is divided in two parts, the first half is referred to as "preferred" and the second half as " deferred;" also mentioned as "B" and "A" stocks respectively. As a rule, the former not only ranks ahead of the latter as far as the dividend is concerned, but shares equally with it in the case of any winding up of the company.

When a dividend is declared, it is the common practice to declare it on the "ordinary stock," and then to state the relative amounts for the two classes.

These stocks are not, as a rule, " cumulative." Those which are "cumulative" are known as non-contingent preference stocks."

"Preferred stock," in England, is not the equivalent of the American "preferred stock," for explanation of which see next subject; "preference shares" being the English equivalent.

Preferred Stock. A stock which has a claim upon the property and earnings of a corporation prior to some other stock; that is, it comes after the bonds and floating debt, if any, but ranks ahead of what is known as common stock." When a "preferred stock" is created, it naturally follows that it precedes another issue, called " common stock.” The first mentioned stock is about what its name indicates, it has preference over the common. The form of this pref