Company News and Views

Britain is not wholly due to natural causes, or even to ordinary
causes
The commercial supremacy attained by many of the large cities of
Britain is not wholly due to natural causes, or even to ordinary
causes. Much of it is due to extraordinary enterprise and forethought
on the part of their citizens. London, for example, is the centre of
the wool trade of Britain. The woollen manufacturers of Britain use
about 250,000 tons of wool annually, and three fourths of this is
imported. Other cities that lie near the seats of the great woollen
manufactures–Liverpool, for example–have tried to secure a share of
this vast importation of wool, but London, because of the special
attention it gives to this trade, manages to keep almost the whole of
the trade in its own hands. Similarly, London almost wholly
monopolises the trade of England with Arabia, India, the East Indies,
China, and Japan. It is therefore the great emporium for tea, coffee,
sugar, spices, indigo, and raw silk. It also enjoys the bulk of
Britain”s trade in fruits (oranges, lemons, currants, raisins, figs,
dates, etc.) and in wines, olive oil, and madder, with the countries
that lie about the Mediterranean. By virtue partly of its situation,
but largely because of the enterprise of its merchants, it absorbs
nearly the whole of Britain”s French trade, and of England”s trade
with Germany, Belgium, Holland, and Denmark. This includes principally
wines (from France), and butter, eggs, and vegetables. Another great
branch of its trade is that with the ports of the Baltic, including
those of Russia, the imports comprising, besides wheat and wool,
tallow, timber, hemp, and linseed. The tobacco imported from Virginia
into England goes almost wholly to London; so does almost the whole of
the Central American and South American trade in fine woods,
dye-stuffs, drugs, sugar, hides, india-rubber, coffee, and diamonds.
Quite a large share of the trade of Britain with Canada is
concentrated in London; also, more than one half of the trade of
England with the West Indies, the imports from the latter country
comprising principally sugar, molasses, fruit, rum, coffee, cocoa,
fine woods, and ginger.

exchanges (drafts) on London, and in London a constant supply of
exchanges on New York
In the money market in New York there is a constant supply of
exchanges (drafts) on London, and in London a constant supply of
exchanges on New York.

record made in previous dealings
When former customers apply for credit the merchant is guided by the
record made in previous dealings. A business man”s ledger is a very
valuable history of credits. It is his compass in a sea of doubt. If
upon the inspection of an old account it be discovered that in former
years the customer paid cash and discounted his bills, and that later
his method of payment was by promissory notes, and that on several
occasions he asked for special favours, such as dating bills ahead or
the privilege of renewal of notes, one is able to read a certain
unmistakable sign of degeneracy in the customer”s credit. New orders
from such a customer will bear scrutiny; and a closer attention to the
present condition of the account may save the firm from some bad
debts.

is called a SHAREHOLDER
Every person who subscribes for stock owns a part of the business and
is called a SHAREHOLDER. All the shareholders meet together, and out
of their number they choose a certain number of DIRECTORS. The
directors choose a president and other necessary officers, and in a
general way direct the policy of the company. As a rule directors have
no salaries attached to their positions. General meetings of
shareholders are held once a year to elect the directors and to hear
the reports of the officers.

Tele Atlas Announces Formation of Tele Atlas Taiwan Co., Ltd.
Tele Atlas Announces Formation of Tele Atlas Taiwan Co., Ltd.

The banker should note his borrower”s bills payable. Why did he give
notes? Are they met promptly? Many houses prefer to sell their own
paper in the open market, and keep their banks open for accommodations
when they are unable to secure outside credit. The insurance carried
should be considered; also the volume of business done. A large
business on moderate capital, with long credits, will naturally have
large liabilities, while a small business with a liberal capital and
short credits should have small liabilities.

in banking circles, write his address or his business after his name
on the face of the cheque
In drawing a cheque in favour of a person not likely to be well known
in banking circles, write his address or his business after his name
on the face of the cheque. For instance, if you should send a cheque
to John Brown, St. Louis, it might possibly fall into the hands of the
wrong John Brown; but if you write the cheque in favour of ‘John
Brown, 246 West Avenue, St. Louis,’ it is more than likely that the
right person will collect it.

among other things, was told by the president or board of directors of
the company not to insure property in a given place below a stated
rate
Suppose A was acting as a general agent of an insurance company and,
among other things, was told by the president or board of directors of
the company not to insure property in a given place below a stated
rate. Suppose a person should go to this agent, desiring to have his
property insured, but at a lower rate, and suppose that the agent
should finally yield and make a lower rate as requested. Could his
company repudiate the contract? Clearly not, for it was A”s duty to
make contracts for insuring properties. If the insured knew that the
agent had been expressly limited in the rates for insuring and that he
was going contrary to his instructions in making the lower rate, then,
indeed, the company would not be bound by the contract. Otherwise it
could not repudiate the act, for it would fall within the general
principle that a principal is bound by the acts of his agent done
within the general scope of his business or employment; and such a
contract clearly would be within the limit. For, indeed, this is the
very business of the agent–to effect insurance.

6. SPAIN AND ITALY. (_a_) Why are Spain, Italy, and Turkey sometimes
called ‘the three decadent nations of Europe’? (_b_) Give some account
of Spain”s foreign trade. (_c_) Give an account of the conditions that
militate against Italy”s prosperity as a trading nation.