some of the paper money of the present time consists. These, however, are gradually being retired, and after 1935 will be no longer in circulation. Their place will be taken by the notes issued by the Federal Reserve banks. State banks receive their charters from their respective states, instead of from the national government. State laws are becoming more strict in their requirements for granting such charters, until now many state banks are as rigidly supervised as the national banks. All banks are carefully supervised by the government through frequent reports which must be made to federal and state authorities, and through inspections made by officials appointed for the purpose. Thus those who deposit their money in the bank may be sure that it will be safely taken care of. - Federal Reserve banks. In 1913 the federal government instituted what are known as Federal Reserve banks, or "bankers' banks." They were created by Congress to put money in circulation, when it is needed. When a crisis comes, these banks are permitted to issue notes in exchange for securities received from banks which need the money, but cannot readily dispose of the securities. These are the notes which will finally take the place of those issued by the national banks. Farm Loan banks. In 1916 the government also established what are known as Farm Loan banks. These are for the purpose of helping farmers who need money to tide over a crisis in their financial affairs. For example, the western farmers need money at certain times of the year to pay their help to get in the crops. They will have plenty of money when the crop is sold, but before this is done, money is needed. The government, through the Farm Loan bank, loans the farmer the necessary money; the farmer gives sufficient property as security for the loan. Such a proceeding helps to transfer capital from the city where there is much, to the country where there is a less amount, and thus stabilizes capital. Such banks are under the control of the Federal Farm Loan Board. Saving. In addition to being an institution which helps persons to do business easily and quickly, a bank is an institution to help us save money. The good citizen tries to put aside capital for future use, so that he may take care of himself when the need comes and not be a burden to the rest of the community. In addition to the commercial banks, as those previously mentioned are known, because they confine their business largely to business men, there are what are termed savings banks. Such corporations make a specialty of receiving the savings of those who wish to lay aside money, and they pay a reasonable amount of interest for the use of the money deposited. Such banks encourage thrift. Some schools have savings banks in which small sums may be deposited, and then a deposit is usually made in a regular savings bank. At certain designated post-offices the national government has what are known as Postal Savings banks. These pay only a small amount of interest, but many prefer this means of saving as a smaller amount is accepted here than in the regular savings banks. It is also considered a safer investment to place money here than in the regular banks. Foreigners who do not fully understand the ways of finance in this country use them to a large extent. During the Great War we heard a great deal about war savings stamps and thrift stamps, and Liberty bonds. These were sold in small amounts, so that they were in reach of every They taught Americans a much-needed lesson, a one. lesson of saving, a lesson about which very many people in this country knew nothing. Insurance. - Another method of saving is through insurance. Corporations are formed which upon payment of a certain amount of money will pay a specified sum upon the death of the one insured or in case of his sickness or accident to him. Regular payments must be made each year to keep up the insurance. When one knows that the payment must be made, provision is made for it, and so the money is saved. At the end of a certain time the policy, that is, the agreement between the company and the insured, is good for a certain sum; it may be taken in cash or in more insurance. A fire insurance company insures buildings and property against loss by fire. The system saves many thousands of dollars each year. The small sum paid each year will save large sums if loss does come. Business and good citizenship. - What you have read about getting a living should show us how careful a person must be about choosing a vocation or business. It is choosing the right one that makes the three elements of wealth work most closely together. There are so many people trying to make a living that the highest type of citizenship is often found among those who are the best business men. Those men who gave up their large incomes, some of them giving up many thousands of dollars a year, and went to work for the government at one dollar a year to help in a great national crisis, had learned what good citizenship means. They put their trained minds to the country's service with no thought of reward. The men who left their business, no matter what it was, and went to serve their country in any of its varied branches were good citizens. They gave back to the great community of the nation what it had done for them. That is the highest type of good citizenship. Those women, many of them reared in luxury, who went to the hospital service in France or to other service, doing the dirty work of the hospitals and other menial labor, knew what it meant to be good citizens. Devotion to the public service makes a business man willing to take some part in the government of his community, either by holding office or by serving on some board where he may be of help. QUESTIONS FOR INVESTIGATION 1. What capital have you? How is it used to produce more wealth? 2. Tell the story of the sale of war savings stamps and thrift stamps in your school. 3. What are some of the laws which your state has passed against the sale of fraudulent shares of stock in corporations? 4. Is your state careful in the matter of issuing charters to corporations? If not, why? 5. Why do some merchants consider it a better plan to sell for cash than for credit? 6. At which place would you probably buy articles more cheaply, at one which sells for cash or at one which extends credit? Why? 7. What are the advantages of buying on credit? What are the disadvantages? Draw some conclusions. 8. Write a check in favor of your teacher for four dollars twentyfive cents. 9. Read what is printed on the face of a Federal Reserve bank bill. Make a report to the class as to what is printed. 10. To which district of the Federal Reserve bank do the banks of your locality belong? Where is the Federal Reserve bank of your district located? 11. What methods of saving money do you employ? Have you a bank account? Why do you have one? 12. Is your life insured? Why is this a good way of saving money? 13. Read the insurance policy on your parents' home or property. What permits does the policy carry? 14. What different kinds of insurance are there? Do you have any except against fire? If so, what? CHAPTER XV BEAUTY IN THE LOCAL COMMUNITY A noted English author, John Ruskin, has said, "The exterior of your home is not private property." By this he means that though the place where you live may be yours, and what you may have and do inside your home is your own concern, the outside has an effect upon every one who sees it. If the surroundings of your home are beautiful, or if they are neatly kept, and neatness is one of the best forms of beauty, it has an influence on those who live near you and on those who pass by. Beauty in colonial homes. When the New England colonists built their homes there was not much time for adornment. Shelter from the winter storms and from the attacks of the Indians was more necessary than beauty. Again, the Puritan settlers thought any attempt to adorn the home and its surroundings was to show a love for worldly things, a deadly sin. Not only the homes, but also the churches, were severely plain, having no adornment whatever. The Hollanders who settled in New York, built their homes with an idea of permanency, building solidly with not much attempt at ornament. Yet the hardy Dutch settlers brought with them from their home country a love for flowers which led them to adorn their surroundings with flower gardens and shrubbery. These gardens added much to the beauty of the Dutch towns. The Cavaliers who came to Virginia and the other South |