FACE VALUE-FAVOURABLE. 123 F. F. occurs in the following abbreviations :— F.P.A., Free of Particular Average. Face Value. The value printed on the face of a Bond, Debenture, Share Certificate or other negotiable instrument. This clearly is very different from its market value, which may be greater or less, according to the estimation in which a given stock is held by the public. The Face Value is also sometimes called Nominal Value, which see. Farthing. Ferling. Anglo-Saxon, feorthling, originally the fourth part of a coin, not confined to that of a penny. This yere the Kynge made a neue guyne as the nobylle, halfnobylle, and feodyng-nobylle."-Grey Friars' Chron. Camden Soc. In the Old English we also find feorthing and fourthing used in the same sense. An English bronze coin, composed of 95 parts of copper, 4 of tin, and 1 of zinc; value one-fourth of a penny. In English accounts farthings are usually written as fractions of a penny. If a separate column is employed for them, and they are written as integers, the letter q is placed at the head of the column, and signifies quadrantes, fourth parts, from quadrans a quarter. Favourable, or In Favour of. A term constantly used in reference to the rate of exchange between two countries. It is evident that a rate of exchange which is favourable to one country, is unfavourable to the other; and also that a rate which is favourable for drawing in one country, is unfavourable for remitting to it. The term is therefore, ambiguous, when tried by either of these tests. To obviate this ambiguity, it is found convenient in practice to assume that a merchant always means his own country, when he says that the exchange on some other country is favourable or unfavourable; and then he simply means that by the alteration in the rate of exchange more or less of the coinage of that other country is given for a stated amount in the coinage of his own. Thus, if the rate of exchange between Berlin and London moved from 20-25 marks to 20-30 marks per pound sterling. A London merchant would say the exchange was favourable, and a Berliner would say it was unfavourable, or "against" him; for the obvious reason that the Berliner would have to give, and the Londoner to receive a greater number of marks for a specified number of sovereigns. Mr. Goschen states the case in different terms, thus; "When it is said that the exchanges are favourable to any particular country, 124 FEE. FIEF. FEUDAL. the intention is simply to state the fact, that bills of that country upon foreign cities are difficult of sale, whilst bills drawn from abroad are at a premium. "So when it is said that the exchange is unfavourable, a situation is described in which foreign bills are in great demand, and when consequently their value seems likely to be so enhanced as to render the export of bullion an unavoidable alternative."-Theory of Foreign Exchanges, p. 88. (See Specie Point.) 66 There is, however, yet another test which may be applied to the exchanges, and in regard to which we may say they are favourable" or unfavourable." Let it be borne in mind, that it is a bad thing for any country to have less gold than is needed for the requirements of trade, and equally bad to have a glut of it, that is, more than can be profitably employed. When there is too much, the rate of interest or discount will sometimes fall, as it did a few years since, and again in 1879, as low as one per cent. When there is too little, the rate may rise as it did in 1866 to 10 per cent., or, as in 1878, to 7 per cent. Both of these extreme rates are disastrous to bankers and merchants; and commerce becomes completely disorganized as long as they continue. There is a pretty general consensus of opinion that business never proceeds so smoothly and profitably as when the rate of interest or discount moves about somewhere between 4 and 5 per cent. Hence, whenever the reserve of gold in the vaults of bankers runs so low as to render the safety of the banks at all precarious, that would be considered a "favourable" turn in the exchanges which caused gold to flow into the country. But should the inflow proceed to such an extent as to overstock the market with gold, then any alteration in the rate of exchange which checked the inflow would be considered from this it is seen that a favourable; favourable" or "unfavourable" rate of exchange is not determined so much by the direction in which the exchanges move, as by the results brought about by their movement. A movement in the rate that is "favourable" up to a given point, is "unfavourable" when pushed beyond that point. The converse, however, is not true; an unfavourable" rate of exchange never becomes "favourable," but grows worse and worse the further it is pushed. 66 Fee. Fief. Feudal. This word, in its earlier forms, having been part of the current speech of all classes of society-learned and unlearned, rich and poor has been subject to the vicissitudes common to words of this kind, and has undergone great changes. It is traceable to the Greek, TEK∞, pekō, to shear, to clip; whence is derived Teкos, pekos, wool, a fleece; the name being subsequently transferred to the animal of which the fleece was the most valuable part. Hence the Latin, pecus, a sheep, afterwards made to include goats, kine, and other domesticated animals. From pecus was formed pecunia, wealth, riches, property, because the wealth of primitive societies consisted mainly of sheep and cattle. By Grimm's "Law of Lautvershiebung, or Transposition of Sounds," we are led to expect that any word beginning in Greek with π, or in the Latin with p, would, if found in the Gothic or Teutonic tongues, begin with for v. And this is what actually occurs. We are not, FIDUCIARY-FINANCE. 125 however, to infer that these forms are derived either from the Greek or Latin. It is more probable that the Greek and Latin, on the one hand, and the Gothic and Teutonic forms on the other, were all derived from some common origin anterior to either. Hence we have the Gothic, faihu, possessions, riches; Old High German, fihu, fehu, and the modern German, vieh, all signifying cattle; the old Norman, fe, cattle, money, wealth; Anglo-Saxon, feoh, cattle, riches, money. With the incursions of the barbarians from the North, this word was introduced into Southern Europe, and took the forms of the Italian, fiɔ; Provençal, feu, fieu, and French, fief. Adapted to the Law Latin of the Middle Ages, and strengthened by the insertion of a d, we have feudum, used to denote property in land, from which we have feudal, and the English fee, in the sense of an estate in land, and feoffment, to denote the process of conveying a fief or fee to a new owner. But feo or feoh was also used in the popular Anglo-Saxon tongue, with the meaning of money payment or reward, and this meaning held its ground till it was embodied in our modern colloquial speech. 66 A Fee therefore is a sum given for a service rendered, or a payment made for some right or privilege. In this sense we speak of "barristers' fees," school-fees," "waiters' fees," &c., and they differ generally from wages or salaries, in being given for single acts or detached services, rather than for time service, or service by the week and year. As used by lawyers, a “fee" also signified an estate held on certain conditions, as a knight's fee," which was an estate held on certain condition of rendering a knight's service to the King. Fiduciary. Latin, fides, faith, trust in one's honesty: fido, fidère, to trust, confide, place confidence in; fidus, that may be relied on; fiducius, that is given in trust to any one, not as his own property, but on condition of its being restored at a given time. un The word Fiduciary is used in banking and commerce to signify "without securities," or, as it is more commonly expressed, covered." Hence, a "fiduciary loan" is a loan made on the honour and good faith of the borrower without deposit of securities, or without "cover." Finance. Financier. Latin, finis, the end, or limit; finio, finire, to bring to an end. In classical times the word finis was used also to signify a measure, or an amount, as being the end at which one arrives by adding several sums, or the limit which includes them all. In post-classical times, finis and its derivatives was used in this sense more freely, and in law was made to signify the end of a suit or the payment of a disputed debt. Finalis dies was the day of trial; finale judicium, the judge's decision; finalis concordia, the agreement by which the suit was ended. As suits were more frequently terminated by the payment of money when litigants increased in riches, the finis came at length to be thought of as a sum of money almost exclusively. Passages abound in the old law books which indicate how completely the idea of money payment had supplanted the original idea of end or termination. Thus, in Matthew Prior's "History of Henry III.," we read :— "Clauculo captus fuit, et tacito facto fine caute dimissus. (He was captured secretly, and having quietly submitted to the payment of a fine . . he was cautiously sent away.) "Nullum ulterius ab eo finem habebimus." (We shall get no further terms trom him.)-Duc. 126 66 FINE-FIRST. The antiquary of Sir Robert Cotton relates how, when the king summoned the clergy and even females to London in order to pass over to France on military duty, the archbishop and others "possent facere finem per eodem si vellent" (were allowed, if they wished, to put an end to the obligation-i.e, to pay a fine or compound for it). It was a natural step for the old lawyers to pass from this now recognized meaning of finis, to the formation of a new Latin verb finare which was always used in the sense of paying a fine, exaction, or composition; and from this was formed the participle finans, the paying of money, and then in a perfectly regular manner the English and French finance, first used in the sense of extortion, and afterwards in that of payment in general. The word Finance and its derivatives were, till within a late period, applied to the management of the State revenues; and a great financier was always understood to be some one conversant with the art of raising and administering the income of the nation. More recently, however, and especially since the rapid expansion of trade during the last forty years, the business of money lending, as a distinct profession, has risen greatly in importance. Wealthy firms, and large joint stock associations, have devoted themselves mainly to this business: and although "Finance" and " Financier” appeared at first rather big words to apply to trade, the popular ear soon became accustomed to them. Finance in commerce usually means the raising of capital by subscriptions, and the employment of it in loans for carrying out commercial undertakings. Fine. Latin, finis, the end; finio, finire, to put an end to. : In the ancient laws of England, a fine was so called because it was the means of putting an end to a suit, and to "all other suits and controversies concerning the same matter."-STEPHEN'S Blackstone. This idea pervades the modern use of the term at least in law and although the origin of the word is in popular speech lost sight of, it does not inaptly describe the effect of a fine in such cases as a fine for trespass," a "fine for default of payment," a "fine for breach of rules," &c. In all these cases the payment of the fine brings to an end the grievance or dispute in respect of which it was levied. 66 Fiorino. A gold coin formerly used in Tuscany, so named from the Fleur-de-Lis, the arms of Florence. (See Florin.) Value about 18. 1 d. First Class Paper. Bills, drafts, and promissory notes, bearing names of the highest class, as acceptors or endorsers. Exchequer bonds and Treasury bills, having the guarantee of the Government, of course rank with quite the best paper. First Second of Exchange. Bills of Exchange are commonly drawn in Third sets of three, called respectively the First, Second, and Third of Exchange. On the first is inserted the phrase this First of Exchange (Second and Third of the same tenor and date unpaid); on the Second, the phrase, "this Second of Exchange (First and Third of the same tenor and date unpaid);" on the Third, the phrase, "this Third of Exchange (First and Second of FISCAL-FLOATING CAPITAL. 127 the same tenor and date unpaid)." In all other respects the three forms are identical. The object of making out Foreign Bills in sets of two or three, is to facilitate their negotiation, and also to prevent loss or delay in consequence of miscarriage or other untoward event. (See Sola and Via.) Fiscal. Lat., fiscus, the Imperial Treasury. The officer who presides over the Treasury in certain Latin States, as Spain, Portugal, and their colonies in South America, &c. Fixed Capital. Capital employed in the purchase of land, in executing works, or in erecting machinery with the hope of making a series of profits by their use during a greater or lesser period of time. As everything made by human hands is liable to wear and tear, no capital can be considered absolutely fixed. It is fixed only for a time. What the capitalist expects is, that when his buildings, machinery, &c., are worn out, the returns made by their employment shall have been sufficient to replace the same with new, and yield a certain something besides which he calls his "profit." Floaters. Bills and securities held at "call." Call money may be required to meet payments on the morrow, but seldom is. The provision to meet these requirements for the morrow often amounts collectively to very large sum. By means of "Floaters" this money is always turned to profit, not a large one, it is true; and sometimes at the rate of no more than half of one per cent. per annum, although the rate may occasionally rise to 4 or 5 per cent. Floating Debt. When Debts are contracted by a Government, or other public body, with an engagement to repay the same at a specified date, with interest thereon up to that date, the interest being sometimes paid in the form of discount, they constitute a Floating Debt. It is synonymous with Unfunded Debt (which see), Exchequer Bills, Exchequer Bonds, Treasury Bills, Promissory Notes, Drafts, and Bank Credits, all form part of the Floating debt of the nation. Floating Capital. Floating Capital is that portion of the wealth of a banker or trader, which he employs in such a way that, by parting with it, he replaces it with a profit in a single operation. As there is very little capital that can be said to be absolutely fixed, so there is little, if any, that can be called purely floating. The term, however, is a convenient one, and serves to distinguish, in a vague way. that portion of capital which is not appropriated to any fixed or permanent investment. Capital invested in mines, railways, land, &c., often remains fixed there for years. The capital employed by bankers is rarely, perhaps ought never to be, so fixed. It should be lent for short terms, as to brokers from settling day to settling day, or in discounting three months' bills for merchants and traders. It is then never out of their hands for a long time together, and in case of need may be rapidly accumulated, so as to meet any demand that may unexpectedly arise. Capital thus employed is called Floating Capital. |