13. Yes; just as strictly as though written and specified, after the obligations of the parties are determined.

14. The Elements essential to a contract are: the parties, consideration, subject-matter, mutual assent, and time.

15. Legal age and a sound mind.

16. Minority, insanity, idiocy, intoxication.

17. In a few States the legal age of females is eighteen; otherwise twenty-one years for males and females.

18. The Contracts of a minor, if approved after reaching the legal age, become binding.

19. By the Common Law, based on the customs of former ages, when women had few rights and but little liberty, a married female was incompetent to make a Contract. Nearly all the States have passed laws enabling a married woman to do business, contract debts, and hold property in her own name, as though unmarried.

20. A Contract is not binding if the consideration is prohibited by Civil Law, or contravenes the Moral Law.

21. No Contract is binding if it involves anything illegal, immoral, or impossible, and must not be made or dated on Sunday.

22. A method of remitting money from one person to another, or payments by written orders.

23. Exchange is of two kinds, Domestic and Foreign.

24. Domestic, or inland exchange, is between different parts of the same country. Foreign exchange is between different countries.

25. A Course of Exchange is the current price paid in one place for Bills of Exchange on another place.

26. Notes and Drafts, or Bills of Exchange.

27. A Promissory Note must have the following form:

$100. Newark, N. J., April 1, 1884. Sixty days after date I promise to pay John Jones or order (or 66 or bearer") one hundred dollars. Value received. JOHN BROWN. 28. A Draft, or Bill of Exchange, must have the following form: $100. Newark, N. J., April 1, 1884. At sixty days' sight (or sixty days after date) pay to the order of John Jones one hundred dollars, value received, and charge the same to account of JOHN SMITH.

TO REUBEN WHITE, New York.

29. If Reuben White (in the form given) accepts the bill, he writes the word "accepted," with the date of acceptance, and his name across the face of the bill.

30. The giver of a Note is called the "Maker;" the receiver of it, the "Payee;" thus (in the form given) John Brown is the maker, and John Jones the payee.

31. John Smith is the "Drawer;" Reuben White, "Drawee;" John Jones, "Payee.”

32. To make a Note or Draft negotiable, the words "or order" or 66 or bearer" must follow the name of the payee.

33. By writing the name on the back of a Note or Bill, either for the purpose of transfer, or of assuming liability thereon, or for both purposes.

34. There are three kinds of Indorsement: Special Indorsement, Indorsement in Blank, and Indorsement without assuming liability.

35. A Special Indorsement is an order to pay a specified person; as, John Jones, the payee (in note given) delivers it to John Doe, and writes across the back, "Pay to John Doe, or Order. John Jones."

36. An "Indorsement in Blank" is writing the name on a Note or Bill, without any special direction as to payment.

37. If an indorser wishes to avoid responsibility, he must write over his name the words "without recourse to me.' This secures transfer simply.

38. Notes always begin at their date; Bills from date, if expressly stated "from date;" but when drawn "at days' sight," the time begins with the date of acceptance by the drawee.

39. "Days of grace" are three days added to the time named in the Note or Draft.

40. Unless otherwise expressly stated, payment of Notes and Bills must be made at the payee's place of business.

41. Notes and Drafts, without date, NEVER fall due.

42. The words "value received."

43. The "legal rate" of interest is the percentage fixed by law to be paid by the borrower to the lender for the use of money. This rate varies in different countries, and in different states in the same country.

44. It should specify "or order" or "or bearer" and thus make it negotiable and payable to whoever the drawer specifies, in his endorse

ment. As it reads now, Everett S. Treat must apply in person to N. D. Thompson.

45. Banks are Corporations for receiving deposits, loaning money, and furnishing a paper circulation represented by specie.

46. Bank Notes are the notes made by a bank to circulate as money, but redeemable in specie on presentation to the bank.

47. State Banks are organized under the statutes of the several States, and their circulation is secured by a paid-up capital, a certain percentage of which is held as a reserve fund. National Banks are organized under the National Banking Law, and their circulation is secured by a deposit of United States Bonds in the national treasury.

48. Bank discount is the interest deducted by a Bank from the face of a note due at a future time.

49. A Protest is a formal declaration in writing, made by a Notary Public, at the request of the holder of a note, notifying the maker and the indorsers of its non-payment.

50. A Corporation is two or more persons authorized by law to do business together. Their legal authorization is called a Charter.

51. Partnership is a relation established by two or more persons in trade, who are called partners.

52. Duties are taxes levied on goods imported, exported, or consumed. 53. Duties are of two kinds, namely, Specific and Ad valorem. 54. Specific duty is reckoned on the weight or measure of goods. 55. An Ad valorem duty is estimated on the value or cost of an article.

56. Yes; the clerk acts as an agent.

57. The wife is regarded as the agent for the husband, and he is held liable for the debt.

58. A minor cannot make a Contract for himself, but may do so for an employer, in the capacity of agent.

59. Not unless he has specially authorized the agent or employee to do so.

60. It is a rule of law that ignorance of it excuses no one. This rule presupposes a knowledge of the law on the part of every citizen.

SOCIAL HOURS

POLITICAL ECONOMY.

GIVE IT UP

HOME GJISURE

TEST EXERCISES.

1. What is Political Economy?

2. Explain the terms "political" and "economy."

3. Why is Political Economy regarded an important study?

4. What is meant by the term wealth?

5. What is meant by value?

6. Is value fixed and certain, or relative and varying?

7. What is the chief element in value?

8. What is labor?

9. What is utility?

10. Can there be utility without value, or value without utility?

11. When may utility predominate, as an element in value, over the cost

of production?

12. What is capital?

13. What is production?

14. What three things are necessary in order to production?

15. What striking fact is noticed in connection with production?

16. How may the application of labor in production be classified? 17. What are the direct changes effected by labor?

18. Mention some kinds of indirect labor.

19. How may capital be divided?

20. Name some forms of fixed capital?
21. Of what does circulating capital consist?

22. What are the relations of capital to labor?

[and labor?

23. What occasions the apparent antagonism of interests between capital 24. What principles of Political Economy have been applied in reaching

the highest production?

25. To what does the principle of the division of labor give rise? 26. What has been found highly practical in complicated trades?

27. Give an illustration of this principle.

[production?

28. What conditions besides capital and labor are necessary to the highest

29. What is consumption, as applied to Political Economy?

30. What are voluntary, involuntary, and accidental consumption? 31. Is all voluntary consumption productive?

32. What is public consumption?

33. What is exchange?

34. What is implied in every exchange?

35. What is meant by commerce?

36. What gives rise to commerce?

37. In commerce, who are the real exchangers ?

38. What is a trader?

39. Explain the terms supply and demand?

40. What is money?

41. What are the essential qualities of money?

42. What, besides money, is largely used as an instrument of exchange?

43. What are some of the forms of credit?

44. What are Banks?

45. What is a Protective Tariff ?/

46. What is Free Trade?

47. What is distribution, as used in Political Economy?

48. What are the main channels of distribution?

49. What is the only just and proper rule in estimating wages?

50. How can we account for the difference in the efficiency of laborers?

51. What leading considerations determine the rate of wages?

52. What is the main consideration now in practice in determining wages? 53. What is competition?

54. To what does strong competition often lead?

55. What two forms do combinations of employees take?

56. What is a strike?

57. Upon what do workmen base their action in a strike?

58. What has generally attended labor strikes?

59. What is a Trade-Union?

60. What are the commendable features about Trade-Unions?

61. In what respects are Trade-Unions open to objection?

62. What rule can be safely and profitably followed by both employer

and employee?