in regard to the future, no one would think of using that word in such a connection.

The present tendency in creating mortgages is to eliminate the "future" or "hereafter acquired clause, as it may become troublesome when companies desire new property and must raise additional funds for the purpose. To be prohibited from so doing on account of being obliged to place new property under an existing mortgage, may be a hardship. It is often possible to get around this restriction, however, in many ways; as by the issue of a "purchase money mortgage or an issue of bonds by a separate corporation, guaranteed by the parent company.

Blank Indorsement. See "Indorsement in Blank." Blind Pool. When a group of individuals, firms, or corporations place their interests in a particular matter in the control of some one person generally one of the group for a definite time, agreeing that that one shall manage their interests without any instructions from the others, except as set forth at the outset, what is called a "blind pool" is formed. The members may, by the term of agreement, not even be allowed any information from the one in control during the life of the pool, unless the object for which it was formed shall have been sooner accomplished.

Sometimes the term "blind pool" is given to a corporation whose operations are completely shielded from the knowledge of its stockholders or the public, only those actually in the management or closely associated with the same, having any knowledge of the company's financial condition and earning ability.

Block. A "block of stock or a "block of bonds

means

a considerable amount of such security bought or sold in one transaction. The sale of 5,000 shares of stock at one time would be considered as a "block." Sometimes, when the securities of a corporation are offered for public sale or subscription, a certain amount of stock is required to be purchased with a given amount of bonds; these combinations of securities are known as "blocks."

Blotter. Commonly called a book of original entry. A book in which a first and temporary record of transactions are made, later to be transferred posted" into books of more permanent record.

Bnk. Bank.

Board. "On the board," meaning on the exchange. (Also see" Board Room.")

Board Man. A broker, being a member of some exchange, who goes upon the floor of such an exchange and transacts business. Such a man may buy and sell for his own firm or

for some other; that is, a firm need not necessarily send upon the floor of an exchange some one of its members possessing a seat thereon, but may employ, at fixed rates of commission (see "Two-dollar Man "), some other member of the exchange to act in its stead. In any event, the one actually doing the business upon the exchange itself is called the "board man."

Board of Education. For school purposes, a separate municipality is often created with its own officers and territorial lines. Such geographical divisions are often called "School Districts." This custom is very common in the middle and far West, and "Board of Education "and" School District" bonds are those issued by such municipalities. The name "School District" is more commonly applied in certain sections of the West where the cities are subdivided into several districts and the same method of subdivision is extended to the rural sections; whereas the title " Board of Education" is more commonly in use in sections where practically the entire city is embraced in the district.

These bonds have, as a rule, proved very safe investments. The appropriation of money for the education of children appeals to the average American, which, together with the fact that many of the Western States have received financial aid in the way of public lands for school purposes, has made a sound basis for the establishment of good credit.

Board of Investment. (See "Savings Bank.")

Board of Trade of the City of Chicago. A commercial exchange organized and chartered under the laws of Illinois to promote uniformity in the customs and usages of merchants, and acquire and disseminate valuable commercial and economic information. It is a place wherein such commodities as grains, seeds, flour, provisions, etc., are dealt in. Inasmuch as Chicago is claimed to be not only the great grain clearing-house of the world, but also the largest lumber market in the world, and inasmuch as the volume and value of the different grain crops of the West have a direct bearing upon the transportation rates and consequently railroad earnings, and as they generally fix the rate of interest on money, the importance of the "Chicago Board of Trade," and of the information which is distributed broadcast therefrom, can be well appreciated. For here is collected all information concerning crops; on the bulletin of the Exchange is posted the price of wheat, maize, oats, and provisions in all the principal markets of the world, and this information is spread broadcast for the benefit of both producer and consumer.

One obtains membership by being voted in by the Board

of Directors, and upon the payment of an initiation fee of $10,000, or upon the presentation of an unimpaired and unforfeited membership duly transferred, and by signing an agreement to abide by the rules, etc.

In all trading on the Exchange actual delivery is contemplated by tender of regular" warehouse receipts "representing the commodity in question unless otherwise agreed between buyer and seller. The regular trading hours are from 9.30 A.M. to 1.15 P.M., except on Saturdays, when 12 M. is the closing hour.

To insert here all necessary to completely cover the matter of commissions charged by the Board of Trade would occupy too much space, as it varies on each commodity, according to amount and conditions of sale. The usual trading unit in grain is 5,000 bushels; the commission is c. per bushel for the purchase or sale, or for the purchase and sale.

There is a clearing-house maintained for the convenience of members, conducted in a similar manner to a "stock exchange clearing-house."

The Chicago Board of Trade has issued a very voluminous book, containing not only all the rules in relation to transactions thereon, but an enormous amount of information, statistical and otherwise, which is well worth the perusal on the part of any person who wishes to investigate this subject further.

Board Room. A room in a broker's office where customers may obtain quotations of sales almost immediately after the transactions are made upon the various exchanges. "Tickers" are installed in all these rooms, but the method of displaying the information differs in various firms. In some, the customers read it directly from the "tape;" in others, a boy copies the quotations as fast as received upon large sheets of especially ruled paper, with columns headed with the names of the securities, and, in others, the quotations are displayed upon a blackboard similarly arranged, that all may see from the various parts of the room. From the latter custom arises the name, "board room."

This term is also applied to the trading room of an exchange. Boat Loads. A Chicago Board of Trade term which refers to canal boats, averaging to carry about 8,000 bushels of grain.

Bob. An English shilling (24 3-10 cents).

Bobtail Pool. (Read first part of "Pool.") A "pool" in which the members buy or sell independently of one another, and not through one member.

John Moody defines it as an informal pool in stocks, in which the members join together to move the stock either up

or down, and then each is usually allowed to suit his own pleasure in closing out his interest.

Bolivar. The monetary unit of Venezuela, being equal to the French" franc," and to $.193 United States money. This name was chosen in honour of the hero of Venezuela.

Boliviano.

The monetary unit of Bolivia, silver, and at this time1-in value to about $.478 United States money.

equal

Bonanza. Any lucky strike of rich ore in a mine; an unusually profitable speculation or investment.

Bond. An instrument by which a government, municipality, or corporation contracts and agrees to pay a specified sum of money on a given date (sometimes reserving the right for earlier payment), the bond itself being a coupon-bearing (or registered) note under seal; the coupons representing the quarterly, semi-annual, or annual interest, as the case may be, at a fixed rate. (See "Corporation Bonds.")

In the case of a "corporation bond," a mortgage is usually placed upon the property to secure the issue. In the case of the government or municipality, no mortgage is necessary, although sometimes certain revenues are pledged for payment of the principal, or interest, or both. The government or municipality, as a rule, simply issues its promise to pay under seal in the form of a "bond" as already described.

"Bonds" are issued by corporations, when sufficient money for the capital of same cannot be raised by the issuing of stock at satisfactory prices, or when, perhaps, the limit of stock which can be issued legally has been reached, and additional money is required. Again, suppose a corporation is enjoying very good profits, earning and paying, for example, 10% dividends upon its stock; it needs money for additions and extensions; to issue more stock would be equivalent to borrowing money at the high rate of interest of 10%, for that

United States Treasury Department Circular issued April 1, 1906.

2 Two men of finance once made the attempt to define a bond" in the fewest possible words with this result: First, "Promise to pay under seal." Second, "Chosen action under seal." The writer offers these for con

sideration.

Cleveland, in his "Funds and Their Uses," distinguishes between a bond and an ordinary promissory note in this way: "The only way that a bond is distinguished from an ordinary promissory note is by the fact that it is issued as a part of a series of like tenor and amount, and, in most cases, under a common security. By rule of common law the bond is also more formal in its execution. The note is a simple promise (in any form, so long as a definite promise for the payment of money appears upon its face), signed by the party bound, without any formality as to witnesses or seal. The bond, on the other hand, in its old common-law form, required a seal, and had to be witnessed in the same manner as a deed or other formal conveyance of property, and though assignable was not negotiable. This is still the rule within many jurisdictions."

is what the stock issue already outstanding is returning to its owners. The company finds it is possible to sell bonds bearing 5% interest to raise the needed capital. It is expected that the increased capital will return earnings to the corporation not less than that already invested; viz. 10%. Consequently, by the sale of bonds bearing 5% interest, the difference between that and the expected earning capacity of the new capital, or another 5%, would accrue to the benefit of the stock already outstanding, and increase, therefore, the rate of dividends upon that stock.

Bonded Debt. The fixed indebtedness of a municipality or incorporated company in the form of bonds. (See "Bond.") The question of the amount of bonded indebtedness fair to place upon property, fair to both the shareholders and bondholders, is a question deserving of much serious consideration. There is a general belief that the property of a corporation should only be mortgaged to the extent of its unchangeable value; that is, the minimum value of such property, as generally recognized, in a time of public adversity. Mortgaging a property to this extent would leave the shareholders to take the risk of the fluctuating value, and it is proper that they should do so, for, as a rule, the bonds on a property are expected to pay a lesser rate of interest than the dividend return to the shareholders. It is impossible to give any set rules here: each case will have to be judged upon its own merits. The amount of sinking fund must be taken into consideration, also the kind of property mortgaged. For instance, some properties depreciate through wear and tear much faster than others- street railways, for instance, more rapidly than electric light or gas plants. (This subject will be found more fully treated under the heading "Sinking Fund.")

In the case of municipal bonded indebtedness, a very prominent lawyer once made the statement that no municipality could ever stand a greater net indebtedness than 5% of its assessed valuation, and that is a very good rule to follow, but, like all good rules, it has its glaring exceptions; for instance, the assessed valuations of some Far West and Middle West communities are very much less, in proportion to the marketable value of the property, than here in the East (This is more fully set forth under the heading "Assessed Valuation "), and, in such cases, a greater net indebtedness than 5% might be fully justified.

Another thing to be considered is not to be influenced too much by the offer of a new issue at a figure below the par value that is, at a discount. If a railway corporation sells an issue of bonds having 20 years to run, bearing 5% interest, and receives but 80 cents on a dollar for the same, the pur