Safe Deposit Companies-Building and Mutual Loan Associations- Notes-Endorsements-Drafts-Bills of Exchange-Notary Presen- tation-Protest-Notice of Protest-Checks-Course of Check through a Bank-Cashiers' Checks-Certificates of Deposit- Letters of Credit-Table Showing U. S. Treasurer's Valuation of PRINCIPLES AND PRACTICE OF FINANCE. PART I. PRINCIPLES OF FINANCE. CHAPTER I. Introductory-Barter-Value-Barter-Money-Bullion-Metal MoneyFiat Money Paper Money-Government Regulation of Money and Currency. IN order that the subject of this work "Finance," should be clearly presented and intelligently read, it is deemed necessary to point out, if but briefly, the natural development of its different principles; and after the development of those principles has been indicated, their application to business and financial methods and systems will be discussed. The various articles on the principles of Finance are not intended to be exhaustive, but simply to lay a groundwork for the proper understanding of those principles in their application to the business of Finance. First. As to the development of principles; which it is well to trace from their birth. In the earliest stage of human existence, when primitive man secured or accumulated by effort or by accident something which was either useful to or which was desired by others, and for the possession of which they were willing to part with some possession, such thing became valuable, and the principle of value was established. So soon as an exchange was effected of one thing for another, that minute the principle of barter came into being. It was not possible however that the possessor of a particular commodity in excess of his immediate needs. should be able to exchange that commodity for all the other commodities or things which he desired; resort was therefore had to the conversion of such surplus into some intermediate commodity which the owner could use at his pleasure in procuring what he wished, and upon the exchange of such surplus for this intermediate value or commodity, the third great principle of finance and the first and chief function of true money was established. Necessarily this intermediate value must be one of as nearly as possible staple and indestructible value and hence naturally would become not only an intermediate value, but also the agent of divisibility of value, and by reason of its possession of these qualities it naturally became the measure of the value of other commodities and the fourth principle, a measure of value, arose. So soon as this surplus product could be converted into value of a permanent character, and thus made available for future use, an accumulation of value or capital became a fact. Credit was surely created when the possessor of one value delivered that value to another, receiving at the time of the delivery a promise that at some future time an equivalent in value would be given. The first charge made for the use of capital or credit Interest." was The money-changers were probably the earliest bankers. |