Note.—The following questions are given as a means by which the student may test for himself whether he has attentively pursued the lessons of the course or not. It is recommended that each student as he finishes the course write out the answers to the questions in full. Only such answers need be attempted as the student can frame from a careful study of the course.

  1. (a) Give some particulars in which the Bank of England differs from our larger national banks. (b) Enumerate some of the advantages afforded to the community and to commerce in general by banking institutions. (c) How do private banks and trust companies differ from national banks?
  2. (a) What is a stock certificate? How does it differ from a mortgage bond? (b) At what rate must United States 4 per cents be bought to net 3.2465 per cent.? (c) Give the successive and necessary steps in the formation of a stock company. How can the stock of a company or corporation be increased?
  3. (a) What provision is usually made for the redemption of municipal bonds which have a long period to run? (b) What is meant when we say that a certain railway is in the hands of a receiver? (c) Give some of the advantages which stock companies have over partnerships.
  4. (a) Tell how you would receipt for a payment on a note. Why is not an ordinary separate receipt sufficient? (b) Discuss fully the points which should enter into a proper estimate of the value of paper offered for discount. (c) Explain in detail the business of a note broker, giving some particulars of his responsibility in connection with the paper handled.
  5. (a) What are the advantages to the banks of a city of their central clearing-house? (b) Show by a diagram how collections are made between distant points. (c) What is a certified check?
  6. (a) Enumerate some of the abuses of rate discrimination in the United States and tell how they are met. (b) What are the advantages to the public of freight organisations which arrange for through service? (c) Explain in detail the methods adopted by leading and competing railway lines to regulate and adjust freight rates. (d) What are differentials? How are (1) through and (2) local passenger rates regulated?
  7. (a) Give the particulars in which a warehouse receipt resembles and differs from (1) a promissory note, (2) a bill of lading. (b) What are the advantages to the importer of bonded warehouses? (c) What are the duties of our foreign consuls with reference to the importation of goods?

[COMMERCIAL LAW]

I. THE DIFFERENT KINDS OF CONTRACTS

Commercial law relates to contracts. These are made by almost every one. A person cannot ride in a street-car without making a contract with the company for carrying him. If he goes into a store and buys a cigar, a stick of candy, or a tin whistle, he has made a contract with the man behind the counter, who owns the store or is his salesman. Tramps and thieves are about the only persons who live without making contracts. In that respect they are like the birds of the air, getting whatever they desire whenever the chance is seen.

A contract has been defined as an agreement to do or not to do some particular thing. These are the words used by one of the greatest of American judges. The reader may turn to his dictionary and find other definitions that contain more, if he pleases, but this will answer our purpose.