SIMSONS CATECHISMS.

THESE works of education, though on widely different subjects, have this in common, that they are arranged in the form of ques- tion and answer, and that they are by the same author. The Manual of Religious Instruction does not differ in matter from many other similar works : it is, however, complete ; embraces a great variety of topics ; and the catechetical form is well managed. The Arithmetical Catechism contains n great deal of plain in- struction on the subject, in a very concise and portable form. It will be found exceedingly useful in schools ; and there is a part of it which may be useful to many who have not had the benefit of a mercantile education, and yet may wish to be deep in the mys- teries of the Stocks—at present a subject of great perplexity to a multitude of newspaper readers. We recommend the following extract to those who wish to master the important art of per cent- age. It contains much information in a small compass, new till lately to books of arithmetic-

Q. What is the reason that the 3 per Cent. Consols, and the 3 per Cents. Re- duced, never sell for the same money ?

A. When stock is sold, the purchaser becomes entitled to the interest due upon it; and this is the reason why the 3 per Cent. Consols and 3 per Cents. Reduced, which are payable at different terms, never sell at the same price. Q. Does not the same reason account for the difference of price between the 4 per Cents. and the New 4 per Cents?

A. The same reason applies equally to the 4 per Cents. and New 4 per Cents. Q. How are new loans got up ? A. When a new loan is authorized by Parliament, it is made payable by in- stalments, and a certain portion of nominal stock, bearing interest at 3, 31-, and 4 per cent. ; and a small portion of the Long Annuities is generally offered by the Chancellor of the Exchequer for each 1001. to be advanced, and he who gives 1001. for the least portion of these different stocks, is always preferred.

Q, What are they called when transferred together ?

A. When all the instalments are paid up, the several stocks thus united are transferable together, and are therefore called Omnium.

Q. When any of these stocks are sold separately before the instalments are made up, what is it called ?

A. When sold separately, they are called Subscription Receipts or Script. Q. Is the capital of the Bank of England, East India, and South Sea Com- panies, called stuck, and also transferable ? A. The capital of the Bank of England, the nominal capital of the East In- dia Company, and the capital of the South Sea Company, are called stock, and transferable like Government stock.

Q. Why are they not called funds? A. Because they do not belong to what is termed the Funds or Funded Debt of the country. Q. Why are Exchequer, Navy, and Ordnance Bills, called unfunded debts? A. Because no special provision has been made by Government for the pay- ment of which, and are therefore termed unfunded debts.

Q. What is the nature of an Exchequer Bill ? A. Exchequer Bills are drawn for 1001., 2001., 5001., or 1,0001. each, and bear interest from date, till they are paid of, at the rate of 2d. per cent. each day. Q. What is the nature of a Navy Bill ? A. Navy Bills are payable ninety days after date, and if not then paid, they bear interest till paid. Q. What is the nature of an Ordnance Bill ?

A. Ordnance Bills are subject to similar regulations. Q. How and when are these bills paid? A. The whole of these bills are generally paid off once a year by Government. Q. What is the nature of India Bonds, and when are they payable ? A. India Bonds are issued by the East India Company for 1001., 3001., 500/., or 1,0001. each; they bear interest from date, at 4 per cent., and are payable on the 31st of March and 30th of September. Q. By whom is the business of the Stocks transacted ? A. The business of stock-jobbing is almost entirely transacted by stock- brokers.

Q. What per centage are stock-brokers allowed ? A. They are allowed A per cent. or 2s. 6d. for every 1001. of stock, which they buy or sell. Q. Is not every man at liberty to transact his own business in the Stocks ? A. Every person is at liberty to transact his own business on the Stock-Ex- change without the assistance of a broker; but unless he has considerable expe- rience in the Alley, he will not find this much to his profit. Q. How do you calculate the value of stock sold ?

A. You deduct A from the price per cent., multiply the quantity of stock by the remainder, the product divided by 100, gives the value.

Q. What is the reason you deduct A from the selling price per cent? A. The reason why the rule directs to deduct from the selling price is this : the broker charges,} per cent. on every 1001. of stock which he sells, and re- tains the sum in his hands as a matter of right, thus diminishing the selling by h per cent., or 2s. 6d. Q. Whether does the rule give the sum which the stock produces, or the sum which the broker should remit to his employer ? A. The rule gives the sum which the broker must remit to his employer. Q. On what principles is the rule for this case founded? A. The rule for this case is evidently simple proportion, and requires no ex- planation. Q. How do you calculate the price of stock bought? A. You add h to the price, and proceed as in the last case. Q. What is the reason you add A to the selling price ? i

A. The reason why A is added to the selling price is, the broker who makes the purchase, charges A, or 2s. 6d. per cent. for his trouble, and this 6 must be added to the selling pnce per cent.

Q. Whether does the rule give the sum the broker pays for the stock, or the sum for which he must draw upon his employer ? A. The rule gives the whole sum for which the broker is entitled to draw upon his employer ; and is simpler than calculating the purchase and brokerage separately. Q. On what principle is this rule founded ?

A. The operations in this case are sometimes performed most expeditiously -by decimals, and sometimes by vulgar fractions.

Q. How do you find how much stock may be bought for a given sum? A. Multiply the sum to be invested by 100, and divide the product by the selling price of the stock increased by h, the quotient is the quantity of stock. Q. What is the reason this rule gives the quantity of stock which the pro- posed sum will purchase ? A. The reason of the rule is obvious; for as the selling price increased by the broker is to the whole sum to be inserted, so is 1001. stock to the whole quan- tity of stock the proposed sum will purchase. Q. When there is a fraction in the divisor, what is the best method of working? A. la this case there is often a fraction in the divisor ; and generally the ope- ration is simplified by converting it into a decimal, and carrying out the decimal quotient three places and valuing mentally. Q. Whether does this rule give the sum which the broker pays for the stock, or the sum it costs the purchaser? A. This rule gives the whole sum which the stock will cost the purchaser, including brokerage. Q. How do you find the rate of interest arising from investing money in the stocks?

A. Multiply the dividend on 1001. stock by 100, and divide the product by the selling price increased by/, the quotient is the rate of interest. Q. On what principles is the rule of this rate founded, and why do you in- crease the selling price by for a divisor ? A. The slily difficulties in stock-jobbing calculations are found in questions i

connected with this case. The rule is simple proportion. As the selling price of 100/. stock increased by the brokerage is to 100k, so is the dividend on 1004 stock to the rate per cent. Q. How do you calculate the rate of interest which any stock will yield, when the dividend due upon it at the time of purchasing is to be taken into the account? A. When the interest due on the stock at the time of purchase is to be taken into account, which should always be done when we wish to ascertain with ac- curacy in what fund we can invest money to the greatest advantage, we must find the interest due on 100/. stock from the time when the preceding dividend on that particular stock was due, subtract that interest from the selling price, and proceed with the remainder by the rule.

Q. Is this the customary method of calculating in these cases? A. Yes.

Q. If it were required to find what interest would arise from money vested in the 3 per Cent. Consols, on the 25th of May, when selling at 86a, how would you proceed? A. We would first find the interest of 1001. for 140 days, which are the days between the 5th of January, when the last dividend was due, and the 25th of March, by the following statement : as 181 days : 140 days : : IL 5s. to the interest due. There are 181 days between the 5th of January and the 5th of July, and in this time 1/. 10s. of dividend becomes due on 1001. stock. The above stating gives II. 2s. lid. due to the 25th of May ; and subtracted from the selling price, or 87!. 7s. 6d., leaves 861. Ss. 4d., with which we proceed by the rule.

Q. How do you find the value of an annuity in the Long Annuities? A. To find the value of an annuity. Multiply the annuity by the number of years' purchase, subtract per cent. from the product, the remainder is the value.

Q. How do you find what sum will purchase any proposed annuity in the Long Annuities ?

A. To find what sum will purchase any proposed annuity. Multiply the annuity by the number of years' purchase, add A per cent. a the product to itself, the sum is the money required.

Q. How do you find what annuity any proposed sum will purchase in the Long Annuities?

A. To find what annuity any proposed sum will purchase. Subtract A per cent, of the proposed sum from itself, divide the remainder by the number of years' purchase, the quotient is the annuity.

Q. `When a man transacts his own business in the Stocks, how do you make the rules for the several cases apply?

A. You know theft per cent. is allowed to the broker ; but when a man transacts his own business in the Stocks, the h per cent. is not calculated. Q. Suppose you saw in the newspaper' 3 per Cent. Consols 87k, 880? A. I would understand that the 3 per Cent. Consols 1001. of this stock, at the opening of the market, was worth 87/. 17s. 6d. ' • it advanced to 884 88/. 2s. 6d. ; and at the close of the market, was selling for 881. 58. ; thus gra- dually advancing during the day.

Q. Suppose you saw in the newspaper, 3 per Cent. Reduced, 87Ai? A. I would understand that the 3 per Cent. Reduced, in the morning, 100/. of this stock sold for 871.2s. 6d. ; and at the close of the market, it brought 87/. 5s. ; having thus advanced 6 or 2s. 6d. per 1001. Q. What would you understand by 31r per Cent. Consols ?

A. One hundred pounds of this stock sold for 961.5s. ; and at the close of the market, it brought 961. 7s. 6d.

Q. What would you understand by 4 per Cent. Consols?

A. One hundred pounds of this stock sold for 1021. 17s. 6d. in the morning, and closed at 103/.

Q. What would you understand by the 4 per Cent. 1826? A. One hundred pounds of this stock continued, during the day, to sell for 1041. 2s. 6d. without variation.

Q. What would you understand by India Stock?

A. One hundred pounds of this stock sold in the morning for 231/. 10s. ; and at the close of the market, it brought 232/. 10s. ; which was an advance of 1/. Q. What would you understand by Bank Stock ?

A. One hundred pounds of this stock sold in the morning for 2101. and at the close of the market for 211/.

Q. What would you understand by India Bonds? A. A bond for 100/. sold in the morning for 102/. 8s. and at the close of the market for 1021. 10s.

Q. What would you understand by Exchequer Bills, 59. 60. pm. ? A. That is, an Exchequer Bill for 1001. sold in the morning for 102/. 19s. and at the close of the market for 103/.

If Long Annuities or Bank Annuities had been written 173, it would have signified, they were selling for 1714 years' purchases. The Stocks frequently fluctuate in the course of the day, that is, both rise and fall. Thus 3 per Cent. Consol, 87, -is A, which shows that 100/. stock, in the early part of the day, sold for 87/. 7s. 6d. ; that it advanced to 871. 10s. and again fell to 87/. 5s. When Shut is written after the name of any stock, it signifies that the transfer books are shut for the payment of the dividends, and during that time no transfer can be made.