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For renewing a Bond.

Sir,-Please to inform me whether, and upon what terms, you are willing to renew my Mortgage of two thousand pounds in your Company.

Yours, A. B.

Then, if you are satisfied with his reply, write

Sir,-In reply to your letter of the I accede to the renewal of my Loan of two thousand pounds to the Company until, at four per cent. as you propose. I will send the security before the present term expires.

Yours, A. B.

N.B. When you send the Debenture Bond, register it, and get a receipt and write, "Please send an acknowledgment by return of Post of the arrival of the Debenture Bond."

For removing a Railway Bond.—

I beg to give notice of my intention to remove the two thousand pounds I have lent on

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pounds will be at my Bankers, Messrs. London, who have instructions to give it up upon your paying the money I have lent you.

Yours, A. B.

CHAPTER IV.

SHARES-LOANS-MORTGAGES.

SHARES.

WHEN a new undertaking, such as a Canal, Railway, Gas, Water-works, &c., is about to be commenced, the first thing is to raise money or Capital to meet it, which is generally done by offering Shares to the Public, say of £100 or £50 each. If £1,000 is wanted, they may offer ten Shares at £100 each, or twenty Shares at £50 each.

At the end of each year, the sum which has been received (if a Canal or Railway, from the traffic on it), after paying all necessary expenses of management, keeping in repair, &c., is divided equally among the Shares. Suppose £500 is

cleared at the end of one year, and there are one hundred Shares, that Dividend would be £5 on each Share. If the Canal had much traffic, it might clear £6, £7, or £8 on each Share.

As the traffic is not always the same, so the Dividends are not always the same, but vary; and should a second Canal or Railway be made, more convenient to the Public, it would, of course, materially reduce the traffic, and consequently the Dividend, of the first; and that would lower the value of the Shares. This is the reason why Shares are less safe than Bonds, Loans, &c. which do not vary in their value.

The Shares are sometimes turned into Stock, which has this convenience:-You may buy any quantity, large or small, but you could not have bought a part of a Share.

Premium.-If the Share-property is prosperous and the Dividends are good, more buyers will be in the market than there is Stock to be had; purchasers will give more than £100 for £100 of

Stock-say £102; this is called being at 2 premium. If the market price was exactly £100, they would be "at par."

Discount. On the other hand, the Share-property may not pay a good Dividend, owing to the want of traffic, or want of confidence in the management of it, or the fear of a rival competition. The Shareholders may take fright, and wish to get out of the concern, and be willing to part with their Share for an amount under the £100-say £97; this is called being at £3 dis

count.

Shares are influenced by many other causes than the above. Shareholders should not therefore take fright, every time the Shares go down, and sell out, but be advised by some competent man of business before selling out at a loss.

Share Lists.-Concise Share Lists are published in the daily newspapers, but more extended information is to be had in a Share List published

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