RULE.— Divide the given sum by the present worth of $1 for the given rate of bank discount and time, including THREE days of grace, and the quotient will be the answer. EXAMPLES FOR PRACTICE. 2. For what sum must I give my note at a bank, payable in 4 months, at 6 per cent. discount, to obtain $300? Ans. $306.278. 3. A merchant sold a quantity of lumber, and received a note payable in 6 months; he had his note discounted at a bank, at 6 per cent., and received $4572.40. What was the amount of his note ? Ans. $4716.245. 4. A gentleman wishes to take $1000 from the bank; for what sum must he give his note, payable in 5 months, at 6 per cent. discount? Ans. $1026.167. 5. The avails of a note, discounted at the bank for 8 months, at 7 per cent., were $ 483.56; what was the face of the note? Ans. $509.345. INSURANCE. 222. Insurance is indemnity obtained, by paying a certain sum, against such losses of property or of life as are agreed upon. The Insurer or Underwriter is the party taking the risk, and the Insured the party protected. The Policy is the written obligation, or contract, entered into between the parties. Premium is the amount of percentage paid on the property in sured for one year, or any specified time. As a security against fraud, property is not usually insured for its whole value, nor is the insurer or underwriter bound to indemnify the insured for a loss more than is specified in the policy. 221. What is the rule? - 222. What is insurance? What is the party called that takes the risk? What is the party called that is protected? What is the policy? The premium? Is property usually insured to its whole value? 223. To find the premium, the rate and amount being given. Ex. 1. What is the premium on $ 485 at 2 per cent.? OPERATION. $485.02 $9.70. Ans. $9.70. RULE. Find the percentage on the given sum, and the result is the premium. (Art. 191.) EXAMPLES FOR PRACTICE. 2. What is the premium on $868 at 12 per cent.? Ans. $104.16. 3. What is the premium on $ 1728 at 15 per cent.? Ans. $259.20. 4. A house, valued at $ 3500, is insured at 12 per cent.; what is the premium? Ans. $61.25. 5. A vessel and cargo, valued at $35000, are insured at 3 per cent.; now, if this vessel should be destroyed, what will be the actual loss to the insurance company? Ans. $33687.50. 6. A cotton factory and its machinery, valued at $75000, are insured at 24 per cent.; what is the yearly premium? and if it should be destroyed, what loss would the insurance company sustain ? Ans. $1875 premium; $73125 loss. CUSTOM-HOUSE BUSINESS. 224. Duties are sums of money required by government to be paid on imported goods. All goods from foreign countries brought into the United States are required to be landed at particular places, called ports of entry, where are custom-houses, at which the duties or revenue is collected. Duties are either specific or ad valorem. A Specific Duty is a certain sum paid on a ton, hundred weight, yard, gallon, &c. 223. What is the rule for finding the premium on any amount of property insured? 224. What are duties? Where are duties collected? What is a specific duty? - An Ad valorem Duty is a certain per cent. paid on the actual cost of the goods in the country from which they are imported. Draft is an allowance for waste made in the weight of goods. Tare is an allowance made for the weight of the cask, box, &c., containing the commodity. Leakage is an allowance for waste made on liquors. Gross Weight is the weight of the commodity, together with the cask, box, bag, &c., containing it. Net Weight is what remains after all allowances have been made. By the tariff of 1861, duties are specific on some articles; and on others, either ad valorem or specific and ad valorem. It has been decided that no allowances for tare, draft, breakage, &c., are applicable to imports subject to ad valorem duties, except actual tare, or weight of a cask, or package, and the actual drainage, leakage, or damage. The collector may cause these to be ascertained, when he has any doubts as to what they are. 225. To calculate ad valorem duties. Ex. 1. At 25 per cent., what is the ad valorem duty on 165 yards of broadcloth, at $5 per yard? Ans. $206.25. RULE. Find the percentage on the cost of the goods, and the result is the ad valorem duty. (Art. 191.) NOTE. - When there is actual draft or tare, the necessary deductions must be made, before reckoning the duty. EXAMPLES FOR PRACTICE. 2. What is the duty on 17281b. of copper sheathing, invoiced at $3200, at 20 per cent. ad valorem? Ans. $640. 3. What is the duty on 2231lb. of Russian iron, at 30 per cent. ad valorem; the cost of the iron being 4 cents per lb.? Ans. $26.772, duty. 4. What is the duty on 16911b. of lead, at 20 per cent. ad valorem; the value of the lead being 5 cents per pound? Ans. $16.91, duty. 224. What is an ad valorem duty? What is draft? Tare? Gross weight? Net weight?-225. What is the rule for finding the ad valorem duty? 5. What is the duty on 10 hogsheads of molasses, each hogshead gauging 150 gallons gross, the actual wants being 5 gallons to each hogshead, and the cost of the molasses 25 cents per gallon; duty 20 per cent. ad valorem ? Ans. $72.50, duty. 6. What are the net weight and duty, at 30 per cent. ad valorem, on 13 boxes of sugar, weighing gross 450 pounds each; actual tare 15 per cent., and the cost of the sugar being 8 cents per pound? Ans. 4972 lbs., net weight; $119.34, duty. 7. What is the duty on an invoice of woollen goods, which cost in Liverpool 1376 £ sterling, at 30 per cent. ad valorem; the pound sterling being $ 4.84? Ans. $1997.95+. 8. What is the duty on an invoice of goods, which cost in Paris $2340, at 80 per cent. ad valorem? Ans. $1872. ASSESSMENT OF TAXES. # 226. A Tax is a sum of money assessed by government for public purposes, on property, and in most States on persons. Taxes may be either direct or indirect. A Direct Tax is one imposed on the income or property of an individual. An Indirect Tax is one imposed on the articles for which the income or property is expended. A A Poll or Capitation Tax is one without regard to property, on the person of each male citizen, liable by law to assessment. person so liable is termed a poll. Real Estate is immovable property, such as lands, houses, &c. Personal Property is all other property, such as money, notes, cattle, furniture, &c. The method of assessing taxes is not precisely the same in all the States, yet the principle is virtually the same. The following is the law regulating taxation in Massachusetts. 226. What is a tax? A direct tax? An indirect tax? What is real estate? Personal property? What is a poll or capitation tax? What is a poll? Is the method of assessing taxes the same in all the States? "The assessors shall assess upon the POLLS, as nearly as may be, one sixth part of the whole sum to be raised; but the whole poll tax assessed in any one year upon any individual for town, county, and state purposes, except highway taxes separately assessed, shall not exceed two dollars; and the residue of such whole sum to be raised shall be apportioned upon property;" that is, on the real and personal estate of individuals which is taxable. (General Statutes, p. 78, as amended, 1862.) 227. To assess a town or other tax. Ex. 1. The tax to be assessed on a certain town is $2200. The real estate of the town is valued at $ 60000, and the personal property at $30000. There are 400 polls, each of which is taxed $1.00. What is the tax on $1.00? What is A's tax, whose real estate is valued at $2000, and his personal property at $1200, and who pays for 2 polls? $1.00 X 400 $1800, amount to be assessed on the property. = $90000, amount of taxable property. $1800 $90000 $0.02,"tax on $1.00. $2000 X .02 = $40, A's tax on real estate. = $40+$24+$2 $66, amount of A's tax. Hence, in assessing taxes, it is necessary to have an inventory of the taxable property, and, if a levy on the polls is to be included, there should be also a complete list of taxable polls. Having these, we then Multiply the tax on each poll by the number of taxable polls, and the product subtracted from the whole sum to be raised, will give the SUM TO BE RAISED ON THE PROPERTY. The sum to be raised on property divided by the whole taxable property, will give THE SUM TO BE PAID ON EACH DOLLAR OF PROPERTY TAXED. Each man's taxable property, multiplied by the number denoting the sum to be paid on $1, with his poll tax added to the product, will give THE AMOUNT OF HIS TAX. EXAMPLES FOR PRACTICE. 2. The town of L is taxed $3600. The real estate of the town is valued at $560,000, and the personal property at $ 152,500. There are 600 polls, each of which is taxed $1.25. What is the per cent. or tax on $1.00? and what is B's tax, 226. The law regulating taxation in Massachusetts? 227 The rule for assessing taxes? |