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for their own good every commercial
teacher should be a member of the
National Commercial Teachers' Fed-
eration. True, all cannot attend
every meeting, but the membership
should be kept up. The printed report
of the proceedings is worth far more
to a teacher than the cost of member-
ship. A large permanent membership
means a more valuable report; it
means possibly a quarterly publica-
tion that will contain much of inter-
est and benefit to the members of the
Federation and to the profession.

We should have a permanent mem-
bership of at least three thousand
and we should have not less than one
thousand at the Chicago meeting.
The Committee on Arrangements
have worked out a program of unus-
ual excellence, and there will be
many good things that are not sched-
uled on the program. A pleasant and
profitable time is assured all. The
renewal of old friendships and the
making of new ones; the giving and
gathering of new ideas and methods;
the inspiration of association with
your fellow teachers will make a fit-
ting finish to your year's labors. We
are looking for the biggest and best
convention of the N. C. T. F. ever
held.

The Sherman House, Chicago, is
the place; December 29-31 is the time.
Fraternally,
F. M. VanAntwerp, Pres.



PROGRAM OF THE NATIONAL

COMMERCIAL TEACHERS'

FEDERATION.

HOTEL SHERMAN, CHICAGO, DEC. 29,

30, 31, 1913.

Owing to the length and nature of
the 1913 program of the National Com-
mercial Teachers' Federation, the
committee on arrangements and the
executive committees of the affiliated
associations will not be ready to an-
nounce the complete program until
about November 20.



As showing the character of the va-
rious programs, the Penmanship As-
sociation alone will have at least
seventy-five speakers on its program.
On account of the unique features of
the various programs, the work of
preparing them has been greater
than usual and requires more time.

The committees have been exerting
themselves strenuously on the sever-
al programs since October 1, while a
tentative outline could have been
given out, the board of governors
deemed it wise to wait until they
could confidently announce the
speakers who would be present.

The complete program will be pub-
lished in the next issue of "Federa-
tion Talk," the official organ of the
Federation, which will be mailed
from the General .Secretary's office
the last week in November. All
teachers whose names appear on the
records will receive a copy. Others
should write to the General Secretary
for a copy which will be gladly sent.
"Federation Talk" will also contain
important news, including illustra-
tions, regarding the activity of the
Federation during the past two
months.

There will be many new features in
the Federation program this year.
Many prominent men and women in
commercial education will speak.
The subjects to be discussed are no
less vitally important in their bear-
ing upon commercial school prob-
lems.

Arrangements have been made to
accommodate all who attend with
most desirable rooms either ,at the
hotel or elsewhere. Mr. Henry J.
Holm, Gregg School, Chicago, will
answer all questions regarding ac-
commodations.

It may be an interesting piece of
news to those planning to attend the
Chicago meeting that there will be a
Community Christmas Tree in that
city during convention week. This
will be worth coming miles to see.

Rest assured that the program
makers will acquit themselves nobly
and that they will have numerous
surprises and a distinct educational
feast for those who attend.

For information regarding hotel
rates, railway routes, and Federa-
tion affairs address

Walter E. Ingersoll,
General Secretary,
1123 Broadway, New York City.

The (jarden City Commercial College. Mis-
soula. Mont., formerly owned and managed by
E. C. Reilz, was sold last July to Prof. Edwin
Koch and Prof. A. H. Dixon, who have changed
the name of the school to the Missoula Business
& Normal College. Prof. Koch was with the
Butte Business College tor twelve years, where
he had charge of the Normal Department of that
school. Prof. Dixon was formerly with the
same school, also, but more recently from Bell-
ingham, Wash., where he had charge of the
Commercial Department of Wilson Business
College, Inc. He also owns an interest in the
Bellingham School.



,^^3Sud/n^U^^(/iu^i&r ^



THE GREATEST BUSINESS EDU-
CATION CONVENTION IN
HISTORY

There is a growing feeling among
commercial school people that the
meeting of the National Commercial
Teachers' Federation in Chicago next
December 29, 30 and 31 will be the
greatest in the history of commercial
education. Events of the last two
years and the present status of com-
mercial education are leading up to
an epoch-making convention. It will
not be due to any design or entirely
to the peculiar merits of the program
—the growing desire on the part of
business educators for an exchange
of sectional experience and views and
the realization, as never before, of a
need for co-operation in the fullest
spirit, will demand it.

The National Commercial Teach-
ers' Federation has the native virility
and professional spirit and all that is
necessary'to sweep the country with
its potential power and usefulness is
the fortuitous combination of people
and conditions. That combination
of persons, conditions and patriotic
spirit of self-preservation will come
at Chicago next December, unless
the signs of the times are cleverly
misleading. The effect this meeting
will have upon the future of commer-
cial teaching and the management
and advertising of private business
schools will be pronounced. The
school man who does not scent this
approaching revival and reaching
out for a sort of readjustment is sure-
ly allowing his foresight to become
atrophied.

This feeling of unrest and dissatis-
faction has been produced partly by
the keen consciousness that the old
ideal of instruction and management
have served theirusefulness. Schools
have worked their methods and ideas
to depletion. The public has been
educating itself to the new vocational
training of the age. The public now
recognizes a new profession — the Pro-
fession of Business. It says, "If
your schools do not teach, some one
else will." This view of public opin-
ion has recently expressed itself in
the organization of the National As-
sociation of Corporation Schools.
Among the powerful concerns promi-
nent in the movement are the General
Electric Company, Westinghouse
Company, Pennsylvania Railroad,
Curtis Publishing Company, Yale
and Towne Manufacturing Company,
New York Edison Company, etc. The
corporations aim to give their em-
ployees a business college education
that will increase their efficiency in
terms of productive capacity. They
claim house instruction is forced up-
on them as a necessity owing to the
small proportion of young people who
receive vocational training before
seeking employment with them.



The truth is that the National Com-
mercial Teachers' Federation sprang
into existence at a timewhen such an
organization was neither necessary
nor appreciated. The local and sec-
tional associations followed instead
of preceding the national organiza-
tion. The latter has never had the
conditions necessary for it to fully
justify its existence and minister to
complex interests in the largest
sense.

Now, however, the country is very
well organized sectionally, and, in
view of the federation of similar sec-
tional associations, the time seems
to be near when national amalgama-
tion of commercial school bodies is
both necessary and highly advanta-
geous. Precisely how the commer-
cial school interests of the country
will join forces for self-preservation,
expansion and advancement no man
can definitely foresee. He can proph-
esy, but that is all. One fact is rap-
idly crystalizing in the minds of
those prominent in school councils,
and that is that we are on the eve of
a new era in business training. It is
firmly believed by many that when
the National Federation of Teachers
and Managers meets in Chicago next
December, some constructive and
epochal work will be initiated, the
fruits of which will be definite, bene-^
ficial and permanent and universally
felt.

It is to be noted that the concerns
here mentioned as forming the Na-
tional Association of Corporation
Schools were first organized locally
for giving practical instruction to
their employees. Now, although
their fields of activity are dissimilar,
they have united, they say, because
their schools can be more easily and
economically conducted, with assur-
ance of better results, than the sep-
arate corporations could do it. Is it
not then a timely suggestion that in
the planning and holding of commer-
cial school conventions, the matter
of economy and efficiency should be
considered? If the amalgamation and
coordination of associations is profit-
able elsewhere, why not in the school
field? The business corporations, al-
though much maligned, go about
achieving their excellent results in a
result-producing way. They set their
standard high and then reach it with
the minimum expenditure of money
and labor. Pride and jealousy quick-
ly yield when there is evident a pros-
pect of gain financially or otherwise.
The school interests of the country
will have to conduct their public
councils along similar lines if they
are to continue their existence. Dur-
ing the seventeen years of the Feder-
ation's life, many thousands of dol-
lars have been used up, both wisely
and unwisely; but there is a stiffen-
ing demand now that every dollar
shall earn the commercial rate of in-
terest in benefits.



The time has come for the National
Commercial Teachers' Federation to
perform its greatest service since its
inception. There is a new spirit per-
vading the country, and it will reach
its climax in Chicago, December 29,
30 and 31, 1913.

The General Secretary of the Na-
tional Commercial Teachers' Federa-
tion is W. E. Ingersoll, 1123 Broad-
way New York. He is the official in
charge of membership.



PENMANSHIP PROGRAM

1. A five minute demonstration on
the twenty-six letters, by as many
penmen, and a five minute discussion
on each letter will be a headlinet.
260 minutes and then some, is going
to be alloted to this one topic.

2. Loops and angles.

3. Health, enthusiasm and efficien-
cy.

4. Importance of Penmenship in
Public Schools.

5. Should a first grade pupil be
taught arm movement first, then
change to muscular, if so, when?

6. What is the best way to handle
a large writing class where new pu-
pils are entering almost daily and
must work along with other students
who have been in the class three or
four months?

As the program , is a veiled one as
to those who take part, the names are
withheld. You can say, however,
that the cream of the profession is
represented. Several are new ones
to the Federation. Among them will
be many of the gentler sex. You can
also safely say that there will be sur-
prises without number to the mem-
ijers at this coming meeting and they
will miss the time of their lives if
they do not show up Christmas week.
This will be the convention of Con-
ventions. No live teacher ought to
miss it.

1. The following is a sample of
some of the descriptions sent in of the
speakers: One says: "My alternate

will be , Supervisor of

writing at ■ , Mich. He au-
thorizes the following description
given by a pupil: Pink haired, gold
toothed head behind a pair of nose
glasses filled with muscular move-
ment."

2. Another says : "You may des-
cribe me as follows : A round-faced,
bald-headed high school teacher,
schooled at Valparaiso and teaching
muscular movement for the past
eight years, Mr. ."

3. Another, "I am 5 feet 11, weigh
160 lbs., light complexion, long arms
and long fingers, wide hands, have
practiced muscular movement 25
years. I am married and have one
boy two and one half years old and
he is using muscular movement, too
I have a round face and pug nose.

{Couti?i7ied on page 23.)



t^^^UiUneii^^i^fiiu^ai^ ^



21




BOOKKEEPING AND
ACCOUNTANCY

H. F. ROBE Y,

Eagan School of Business,

HACKENSACK, N. Y.

1 i "1 1 — 1 1 'I — I I



Notes and Drafts.

Notes and Drafts have in recent years taken
a very important place in business transactions-
Therefore, it seems to me that they should be
thoroughly explained to students of bookkeep-
ing in every relation to business transactions.
The writer has in recent years observed that the
average student has more trouble in classifying
entries where notes and drafts are used than in
any other kind of transaction. This, I think is
due mainly to the fact that the greater majority
of commercial teachers do not spend enough
time in explaining this division of the subject-
To my mind there cannot be too much time
utilized in drilling the students in this subject.




It has always been a practice of the writer (and
I think it a good one) to illustrate the use of a
draft and the relation of each party thereto, by
the use of an equilateral triangle. There being
three points to the triangle, also three parties to
each draft. Therefore, I represent the drawer a^
the right hand corner of the base : the drawee at
the left hand corner of the base; and the payee
at the apex: With the diagram complete, I
then explain the obligation the drawer is under
to the drawee: also the drawer to the payee
When I have fully explained this part of the
work, I then write a draft on the blackboard. A
drew a 10-day sight draft upon B, who accepts it
in favor of C. I then ask the following ques-
tions and have the students make the entries.

(a) What entry should A make?

(b) Debit C and credit B.

(a) What entry should B make?

(b) Debit A and credit Notes Payable.

(a) Wliat entry slioul.l C make?

(b) Debit Notes Receivable and credit A.

(a) The 10 days having elapsed, what entry
df>es the drawee B make?

(b) Debit Notes Payable and credit Cash.

(a) What entry does the Payee C make?

(b) Del)it Cash and credit Notes Receivable.
Thus you will see there must be five entries

made by the different parties to the draft before
it is completely cancelled.

It takes a great <leal of time and patience to get
all the students to thoroughly unilerstand these
different steps, but if the teacher has his work at
heart, he will spare neither time nor pains until
all the students under his supervision thorough-
ly understand each transaction and can apply
them to the different transactions of a similar



nature that may come up from day to day as
they pursue their course to completion.

The draft is used very frequently today where
there has been no credit established between
firms. Instead of shipping the goods as in
former years and opening an account with the
new firm, the gootis are shipped, and a sight
draft with Bill of Lading attached is sent to a
bank in the same city where the goods have
been shipped. The purchaser must pay the
draft in order to get the Bill of Lading before he
can lift the goods from the railway company.

In the following illustration I will show the
entries that are required for a time draft with in-
terest.

(ai William Burns drew a draft with interest
on Charles Walters in favor of Lewis Frear.
The draft was accepted by Charles Walters, (a.^
What entry should William Burns make ?

("b) Debit Lewis Frear and credit Charles
Walters.

(a) What entry should Charles Walters make ?

(bj Debit William Burns and credit Notes
Payable.

(a) What entry should Lewis Frear make ?

(b) Debit Notes Receivable and credit Wil-
liam Burns.

(a) When Charles Walters pays the draft and
interest at maturity, what entry should he make ?

(b) Debit. Notes Payable and Interest and
credit Cash.

(a) When Lewis Frear receives payment for
the draft and interest at maturity, what entry
does he make?

(b) Debit Cash antl credit Notes Receivable
and Interest.

(a) If Lewis Frear receives cash for the draft
and interest, less discount, before it is due, what
entry should he make ?

(b) Debit Cash and discount and credit Notes
Receivable and Interest.

(a) If Charles Walters pays the draft and in-
terest, less discount, before it is due, what entry
should he make ?

(b) Debit Notes Payable' and Interest and
credit Cash and Discount.

(a) If Lewis Frear transferred the draft before
maturity and less a discount to J. B. Williams to
apply on account, what entry should Lewis
Frear make ?

(b) DebitJ. B. Williams and Discount and
credit Notes Receivable and Interest.

(a) What entry should J. B. Williams make ?

(b) Debit Notes Receivable and Interest and
credit Lewis Frear and Discount.

The above is the method the writer uses in
explaining the entries to be made in this con-
nection. Frequent drills should be given to
keep the subject freshjin the student's mind.

The question is often asked in how many
ways may negotiable papers be handled. To
this question I would say they may be handled
in four ways, viz., received, transferred, drawn
and paid or accepted. During each succeeding
month, the writer wishes to present a problem
in Bookkeeping and Accountancy for teachers
and advanced students.

The solution of the following problem will
appear in the January number of The Busi-
ness Educator.



The Prosperous;Company is organized undej
the law-s of the State of New York to conduct a
manufacturing business. The authorized capi.
tal is 8500,000.00 divided into 8250,000,00 com-
mon, and 8350,000.00 preferred stock, par value
of shares 8100.00. Five incorporators subscribe
each for one share of common stock at face
value. John Peters, one of the incorporators,
purchases from three manufacturing companies
their complete plants for 8499,500.00 and trans-
fers said plants to the Prosperous Company for
the remaining 8499,500.00 of common and pre-
ferred stock and 8100,000.00 of First Mortgage
5 per cent bonds out of a total issue of bonds
amounting to 8150,000.00. leaving 850,000.00
of bonds in the treasury. The incorporators then
pay in cash for their respective subscriptions.

The individual assets acquired are as follows:
land and buildings. 875,000; plant and ma-
chinery, $200,000.00; tools, equipment and
fixtures. 850,000.00; inventories, 8100,000.00;
accounts receivable, gond 828,000.00. doubtful,
85,000.00; cash, $12,000.00.

Prepare (a) opening entries for books of the
Prosperous Company, (b) initial balance sheet
showing the Company's financial condition.

(Note I : The above problem was given by the
Board of Regents of the State of New York, for
the Degree of C. P. A. in June, 1911.



OFFERS $500,000 FOR COLLEGE OF
COMMERCE

New York, Nov. 6.— An anonymous
donor has offered $500,000 toward the
establishment of a free college of
commerce in New York City, accord-
ing to announcement made today at
a meeting of the chamber of com-
merce.

The gift is conditional on the do-
nation of $200,000 additional. This
$200,000, it was said, has been already
pledged.

The school will be devoted to high-
er commercial training.— Press Dis-
patch.

We hope the above may be realized.
Such an institution is needed in sev-
eral large centers of population such
as Chicago, New Orleans, Boston,
Los Angeles, San Francisco, Seattle,
St. Louis, &c., and it is only a ques-
tion of time until they will exist.

Broad commercial training is as
necessary as in any other line of hu-
man effort, and more universally
needed than in many special lines.
Commercial ability of university cal-
ibre is a growing need in our com-
mercial, industrial and political life.



CHICAGO
DEC. 29,
30 and 31



22



.^^^BiO/n^U^^Oiu^a^ %



31 3C




-■ I ~" "



ARITHMETIC

O. S. SMITH,
Cass Technical High School, Detroit, Mich.

31



ICDC



3C



3C



Article 9.

If percentage has peen properly
presented to the class there is not
much that can be said on the subjects
of Stocks and Bonds. These subjects
are the application of percentage and
all the rules used in percentage may
be applied here.

The difficulty is for the student to
master the terms used and have a
fair knowledge of what they really
are. In other words, the difficulty is
not in the arithmetical processes em-
ployed but in knowing what a given
process will oroduce and the reason
back of it.

For instance, I have had students
say they could not see how or why a
share of stock for $100 could be sold
for more or less than |100. In many
cases they do not even understand the
quotation of stocks or bonds, i. e. if
they see the expression, 78}, it is sim-
ply an unintelligible number. An-
other thing that is particularly con-
fusing is to teach these two subjects
together. They undoubtedly should
be taught separately just as much as
interest and bank discount are taken
up as separated subjects. About the
only resemblance between stocks and
bonds is that they are issued by cor-
porations and that they are both appli-
cations of percentage. In all other es-
sentials they are different and should
be^studied from different standpoints,
and in dealing with these subjects
here we shall consider them as being
separate.

One of the first points to make clear
to a class is the nature of a share of
stock. It is not the beautifully en-
graved article that is generally sold
to the public, but a share of stock
really represents a group of rights to
the person who has paid his money.

The certificate, or paper, mentioned
above is only the evidence of these
rights. Furthermore the par value
may be fixed at any figure that is suit-
able to the incorporators. If possi-
ble, a copy of the law should be pro-
cured and a few sections of the law
read to the class. These laws gener-
ally have different names in the
states, but a copy of them can be pro-
cured by writing to the secretary of
state of your own state and ask-
ing for a copy of the private corpora-
tion laws. Generally a few sections
of the law read to the class will clear
up many points that have been dark
for days.



Then take up the question of quo-
tations with the class. Get them to
see that 78} means two different
things and the student himself must
generally determine which one of the
two he is going to have the expression
mean. 78} can be read as 78} cents for
each dollar of par value of the stock,
or where the shares are of a par
value of $100, it can be read as
$78.25 for one share. To make this
clear, let us take a problem like the
following and illustrate this differ-
ence in meaning : Find the cost of
100 shares of stock at 78}.

100 shares would have a par value
of $10,000 and if we take 78} to mean
78} cents on each dollar of par value,
we would have 10,000x$.78} or $7825.
Now if we regard 78} to be $78.25 for
one share we have simply 78.25x100 or
$7825.

Thus we see it is important to have
this part made perfectly clear or
there will be trouble later.

Then the question of brokerage
should be taken up and numerous il-
lustrations made that will make this
question clear. It is very frequently
a good plan to change the rate of
brokerage to an equivalent in money.
For instance, if the par value of a
share is $100 the brokerage at the
usual rate, J%, would be \2\ cents for
each share. A largepart of each per-
iod for several days should be devot-
ed to mental drills, dealing with the
principles mentioned here.

The order of work taken up in these
drills would be, as indicated above ;
first, par value, second, shares below
par, third, shares above par, and last,
brokerage questions. Then divi-
dends should be presented and after
this subject has been covered, we are
ready to consider what rate of inter-
est on the investment, these divi-
dends are equivalent to.

If these points are well impressed
upon the minds of the students they
will have a good knowledge of the
subject of stocks but there are still
many points that might be consider-
ed and could be taken up in their
proper order in a logical development
of the subject. For instance, we have
not considered the purchase of stocks
on a margin ; how to get the book
value of stocks ; the effect of stock
dividends on stock value, or working
out stock values in consolidations.

Many text books present excellent
lists of problems on the subject of



stocks but it seems that many of
them are a little weak in the manner
in which the subject is presented and
developed. Careful attention to this
point will disclose the fact that in
most text books stocks is not as log-
ically presented to the student as in-



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