When a policy is terminated at the option of the company, a ratable portion of the premium is refunded for the unexpired term. LIFE INSURANCE. In ordinary life policies a certain premium is to be paid every year until the death of the insured, when the policy becomes payable to the beneficiary. There are other kinds of policies, however, and these are described below: Limited Payment Life Policy -Conditions: Premiums to be paid annually for a certain fixed number of years, or until the death of the insured, should that occur prior to the expiration of this period. Policy payable at death of the insured. Advantages: Payments on this kind of policy may all be made while the insured is best able to make them, and, if he live to an old age, the policy will not be a continual burden, but will rather be a source of income, as the yearly dividends may be taken out in cash or added to the amount of insurance. Term Life Policy.-In this method of insurance, the insurance company agrees to pay to the beneficiaries a certain sum on the death of the insured, should that event occur within a fixed term. Endowment Policy -A combination of a Term Life Policy and a Pure Endowment. These policies are issued for endowment periods of 10, 15, 20, 25, 30 or 35 years, and may be paid up by a single payment, by an annual premium during the endowment period, or by five or ten annual payments. Conditions: 1. Insurance during a stipulated period, payable at the death of the insured, should that event happen within said period. 2. An endowment of the same amount as the policy, payable to the insured, if still living at the end of the period fixed. Advantages: Limited term of payments; insurance during the time when the death of the insured would cause most embarrassment to his family; provision for old age, as the amount of the policy will be paid to the insured if still living, at a time when advanced age may make it of great benefit. Annuity Policies are secured by a single cash payment and insure the holder the yearly payment of a certain sum of money during life. Foint Life Policy. -An agreement to pay a certain sum on the death of any one of two or more persons thus insured. Non-forfeiting Policies do not become void for non-payment of premiums. In some companies all limited payment life policies, and all endowment policies, after premiums for three (or two) years have been paid, and the original policy is surrendered within a certain time, provide for paid-up assurance for as many parts of the original amount assured as there shall have been complete annual premiums received in cash by the company. Some companies voluntarily apply all credited dividends to the continuance of the insurance. Others apply the legal reserve to the purchase of term insurance at regular rates. Special Forms.-The Reserve Endowment, Tontine Investment and other special policies guarantee to the holder a definite surrender value at the termination of certain periods. The surrender value of a policy is the amount in cash which the company will pay the holder of a policy on its surrender-the legal réserve less a certain per cent. for expenses. The Reserve of life insurance policies is the present value of the amount to be paid at death less the present value of all the net premiums to be paid in the future. The Reserve Fund of a life insurance company is that sum in hand which, invested at a given rate of interest, together with future premiums on existing policies, should be sufficient to meet all obligations as they become due. It is the sum of the separate reserves of the several policies outstanding. The Expectation of Life is the number of years which one may probably live. This average number of years has been determined from the experience of insurance companies. Age. 34.22 33.84 33.46 33.08 32.70 32.33 31.93 31.50 40.14 9 39.72 29 30.25 50 21.17 31.08 29.83 29.43 29.02 28.62 28.22 27.78 27.34 26.91 26.47 26.04 25.61 25.19 24.77 63 24.35 23.92 65 23.37 47 22.83 22.27 21.72 20.61 20.05 19.49 18.92 18.35 17.78 17.20 16.63 16.04 79 62 tion in years. 5.85 5.50 5.16 4.87 4.66 4.57 4.21 3.90 3.67 3.56 3.43 3.32 3.12 2.40 1.98 1.62 7.40 6.99 6.59 6.21 MARINE AND TRANSIT INSURANCE. Insurance of vessels and their cargoes against the perils of navigation is termed Marine Insurance. Inland and Transit Insurance refer to insurance of merchandise while being transported from place to place either by rail or water routes, or both. Insurance Certificates, showing that certain property has been insured and stating the amount of the insurance and the name of the party abroad who is authorized to make the settlement, are issued by marine companies. They are negotiable and are usually sent to the consignee of the merchandise to make the loss payable at the port of destination. The adjustment of marine policies in case of loss is on the same principle as the adjustment of fire policies containing the "average clause." Open Policies are such upon which additional insurances. may be entered at different times. NUMBER of families in the United States (census of 1880), 9,945,916; average number to a square mile, 3.43. Number of dwellings, 8,955,842; average to the square mile, 3.02. Number of acres to a family, 186.62. Number of persons to a family, 5.04. Number of persons to a dwelling, 5.6. NUMBER of farms in the United States in 1880, 4,008,907; in 1870, 2,659,985; in 1860, 2,044,077; in 1850, 1,449,073. The internal revenue of the U. S. includes the taxes on spirits, tobacco, etc., and most of the receipts from national taxes, except customs duties and the receipts from the sale of public lands, patent fees, postal receipts, etc. The Constitution declares that Congress has the power "to lay and collect taxes, duties, imports and excises," and that they shall be uniform throughout the U. S., and provides that direct taxes shall be apportioned among the States only in proportion to the population. At the close of the revolution raising money by internal taxation was hardly thought of, and at that time the condition of the people and manufactures would not warrant it. The first internal revenue tax imposed by Congress was that of March 3, 1791, on distilled spirits of domestic manufacture, the enforcement of which led to the whiskey insurrection. In 1798 the first direct tax of the kind, one of $2,000,000, was apportioned among the States, and it was proposed that it should be levied on dwelling-houses, slaves and land. All internal taxes were repealed in 1802 in accordance with the recommendation of President Jefferson, and no others were authorized until 1813, when the war with England necessitated an increased revenue. These taxes were continued a few years after the war, but were abolished, and none were levied until-1861. The civil war forced a renewal of the internal revenue system, and in 1861 a direct tax of $20,000,000 was apportioned among the States. On July 1, 1862, an act was passed levying taxes on all sorts and kinds of articles too numerous to mention. A few industries were taxed out of existence and all were more or less disturbed, but the people submitted without opposition. Great reductions were made after the war ceased, and at the present time the only subjects of internal revenue taxation are tobacco, spirits, fermented liquors, bank circulation and oleomargarine. The following have always been exempt from taxation in the U. S.: Public property of both State and nation; the property of incorporated institutions of learning; houses of worship; cemeteries and the personal property of individuals, so far as to cover the necessities of life. In 1792 the amount raised by internal revenue was $208,942; in 1866, $309,226,813; in 1887, $118,837,301. YOU CANNOT COUNT A TRILLION.-It is impossible to count a trillion. Had Adam counted continuously from his creation to the present day, he would not have reached that number, for it would take him over 9,512 years. At the rate of 200 a minute, there could be counted 12,000 an hour, 288,000 a day, and 105,120,000 a year. 298 The first thing for an advertiser to decide is the mediums which reach the desired class of customers. Cheap mediums do not, as a rule, bring good returns, neither does it follow that a periodical claiming a large circulation takes precedence over one with a less circulation. The tone of the publication and character of its readers determine much. A first class periodical with a bona fide paid circulation is far more desirable than a much larger sample copy circulation. People who think enough of a publication to buy it are very apt to read it. Except in special cases, hand-bills and dodgers are of little or no account. The advertisement must be attractive, and if lasting results be desired, the goods must be as represented, and the advertisement honestly worded. The occasional advertiser reaps but meager results; 'tis the constant, persistent advertiser who reaps the most benefit. The secret of success in advertising lies largely in keeping the name and goods constantly before the eye of the public. Printer's ink is beneficial to any business, but common sense and good judgment are absolutely necessary. The shrewd ad vertiser and successful business man exercises as much care and discretion in placing his advertisement as he does in buying his goods. HOW TO COLLECT A DEBT. Thousands of dollars are lost every day through negligence or carelessness of creditors. If there is a fixed date for payment, be on hand promptly to receive it. If not paid, follow it up closely. If party cannot pay now, get a promise for another date of payment. Pleasant words and a genial bearing invariably are more effective than threats of legal measures. If the debtor lives near, call and express your urgent needs of money, etc. If you cannot get it all, take a part, and get a note for the balance. Notes are more easily handled and collected than open accounts. If the debtor is irresponsible, get him to secure an indorser, so that you "can get the money on it at the bank," etc. If possible, "know your man.” With some it is absolutely necessary to be sharp and positive, while the man who honestly intends to pay can be handled better by pleasant words, though frank and business-like. If a debtor is at a distance, write a courteous letter, inclosing bill or statement, requesting prompt settlement. If necessary, a second or third letter should be written. Always consider the amount of purchase as if that much money were already counted out, then add to amount of purchase enough small change to make even dollars, counting out the even dollars last until full amount is made up. If the purchase amounts to 57 cents, and you are handed $2.00 in payment, count out 43 cents first to make an even dollar. Then lay out the other dollar. Should the purchase be $3.69, to be taken out of $20,00, begin with $3.69 as the basis and make up even $4.00 by laying out 31 cents. This 31 cents with the amount of the purchase you will consider as $4.00, and count out even dollars to make up the $20.00 which the customer has handed in. MERCHANTS' COST AND PRICE MARKS. All merchants use private cipher marks to note cost or selling price of goods. The cipher is usually made up from some short word or sentence of nine or ten letters, as: CORNELIUS, A. 1 2 3 4 5 6 7 8 9 0. Five dollars, according to this key, would be caa. But generally an extra letter is used to prevent repeating the mark for 0. If the sign for a second 0 in this case were y, we would have eay instead of eaa. TIME IN WHICH MONEY DOUBLES. "A Dollar Saved, a Dollar Earned." The way to accumulate money is to save small sums with regularity. A small sum saved daily for fifty years will grow at the following rate: 12 years. 9 yrs. 2 da. 9 11 yrs. 40 da. 8 yrs. 16 da. 10 10 years. 7 yrs. 100 da. |