The subject is fully discussed in this part of the Course, as are also the technical aspects of banking in all details.
International Exchange
Domestic exchange Federal Reserve Bank clearings General aspects of foreign exchange Basal factors of exchange Restoration prospects for rates of exchange Foreign remittances Bills of exchange A day in an exchange box Finance bills Arbitrage Rates of interest Gold shipments Sterling exchange Gold standard Gold exchange standard Silver and paper exchanges London and New York as financial centers War and the exchanges Tables
The early part of this section of the Course deals with inland exchange and describes the method by which settlements are made between different parts of the same country. When this is fully understood the problem of foreign exchange becomes very simple. It is the application of the same principles complicated only by the difference in money units between different countries.
The "Foreign Exchange" department of banking is of such great importance and presents so many difficult questions that it deserves and is accorded special treatment. The reader is given a full description of the mechanism of the exchange market and is shown how money is made in foreign exchanges.
He learns how the vast amount of export and import trade is made possible through the interrelations between the foreign exchange markets of New York, London, Paris and other large centers. He also learns concretely how foreign shipments are financed and is given some valuable information concerning the influence of gold and other factors upon foreign exchange rates.
An important feature of this section is a thorough discussion of the best methods of handling export shipments. Many American and Canadian manufacturers are considering the advisability of going after foreign trade with greater vigor. They are usually puzzled when it comes to considering how to finance these shipments, which are often a long time in transit. The growing importance of export trade makes this section of the Course particularly valuable.
Insurance
Risk and insurance The life risks Life insurance protection Life policies and premiums Modification of the ordinary life policy Annuities and pensions Group insurance Functions of insurance carriers—the old line companies Assessment and fraternal insurance Government life insurance Accident and health insurance Liability insurance Workmen's compensation insurance—general features Workmen's compensation insurance—rate making Fire insurance Fire insurance policies Marine insurance Other forms of insurance
Insurance constitutes a form of investment in which we are all interested, as purchasers of life insurance, fire insurance, casualty insurance, marine insurance, or of any other of the various forms which have come into existence. To buy insurance properly, one should know the principles that underlie rates and insurance operations, and should be able to judge the policy which covers these various essentials. Partnership and business insurance is much more used now than it has been heretofore and it is becoming an important element in adding to the stability of business.