This etext was prepared by Nigel Lacey, Leicestershire, UK.

Transcriber's Notes:

I have used the UK pound symbol (£) in this e-text as it appears in the original. [It looks like an L with a crossbar.] I am uncertain whether this symbol will be supported on all systems and fonts that this text file ends being viewed with. My apologies if this applies to you.

I have endeavoured to retain the original table formatting, rather than to reformat the tables in alignment with the text. However, as several of the tables were in landscape orientation in the original, this has necessarily resulted in some very long lines in the tables (up to 130 characters in some cases).

Finally, as I checked the transcription process certain errors in the tables came to light. Rather than correct these errors, as they are an integral part of the original, the ones that I noted are marked with underscores (_). [Note that underscores are also used to mark _italicised_ passages in the original text.]

Everybody's Guide to Money Matters

_With a description of the various invest- ments chiefly dealt in on the stock exchange, and the mode of dealing therein_

also

Some account of the pitfalls prepared for the unwary, and suggestions to the cautious investor.

by

William Cotton, F.S.A.

Late treasurer of the county of Devon, author of "An Elizabethan Guild," "Gleanings from Records," "The Bank Manager," etc. Originator of the postal order system.

London 1898.

PREFACE.

THE Author, emboldened by a Banking expe- rience of over forty years, offers this little work to the public in the hope that, elementary though it be, it may prove acceptable to many persons of both sexes.

The work has been prepared chiefly for the use of women, a vast proportion of whom are brought up in utter ignorance of money matters in the simplest form, though otherwise they may be highly accomplished.

The subject, it must be allowed, is not a fasci- nating one, but there are periods in the lives of most persons when some knowledge of money matters may be useful and even necessary.

W.C.

CONTENTS.

PAGE CHAP. I. - What is Money? - What to do with it - How to open a Bank Account - How to draw Cheques . . . 1

CHAP. II. - How to Deposit Money at Interest - The Bank Pass Book - The Advantages of a Bank Account . 13

CHAP. III. - London Banks and Banking - Bill of Exchange - Deposits - Scotch and Irish Banks . . . . . . . 20

CHAP. IV. - Investments - What are Securities - Mortgages - The Funds - The National Debt - Stocks and Shares - Dividends, how Payable . . . . . . . . . . . . 26

CHAP. V. - British Government Funds - The Different Debts - Terminable Annuities - Loans Guaranteed by Govern- ment - Dividends, how to Receive them - Automatic Re- investment of Dividends . . . . . . . . . . . . 35

CHAP. VI. - Government Annuities, how to Purchase - When Payable - Tables - Insurance Office Annuities - Tables - Indian Government Stocks . . . . . . . . . . . 41

CHAP. VII. - Loans to Corporations, &c. - Colonial Govern- ment Securities - Inscribed Stocks and Bonds - List of Inscribed Stocks - Bonds and Coupons - Foreign Govern- ment Stocks - Caution in Investing - Railways - The Different Stocks and their Relative Values - The War- rants for Interest and Dividends - Indian Railway Stocks - American Railways - Foreign Railways - Banks - As an Investment - Colonial and Foreign Corporation Stocks - Canals and Docks - Gas - Electric Lighting, Telegraph and Telephone - Water Works - Breweries - Industrial Companies - Financial, Land and Investment Companies - Financial Trusts - Insurance Companies - Steamship Companies - Mines . . . . . . . . . . . . . . . 55

CHAP. VIII. - The Stock Exchange - Brokers and Jobbers - How Business is Done - "Contango" and "Backwarda- tion" - "Bulls" and "Bears" - "Boom" and "Slump" - Settlement - Risk in Keeping Convertible Bonds - Brokers - Traps and Snares - Good Companies and Bad - Advertising Swindles - Gold Mines - A Typical Case - Exploration Companies . . . . . . . . . . . . . 79

CHAP. IX. - Life Insurance - Its Advantages - Mutual and Joint Stock Companies - Choice of Office - Form of Pro- posal - Examination - Premiums, how Payable - Examples of Advantage - Various Modes of Insuring - Bonuses - How Applied - Endowment Insurance - Non-profitable Policies - Settlement Policies - Endowment of Children - Insurance of Joint Lives - Insurance on Longest of Two Lives - Surrenders - Fire Insurance - Farm Stock - Other Insurances . . . . . . . . . . . . . . . . . . 101