222 The Farmer's Business Handbook 



currency should be one cent less than the 

 amount called for by the currency. Such col- 

 lateral may be gold, silver or anything of value; 

 but there should be value equal to one hundred 

 cents for every dollar of currency, even though 

 the silver dollar becomes a thousand times larger 

 than the gold dollar, or vice versa. 



This leads us to the consideration of securing 

 private notes. As we have seen, such notes may 

 be and are largely secured by endorsement, by 

 sureties and by guaranty. They are also largely 

 protected by collateral. In the case of the pri- 

 vate individual, the field of collateral is as large 

 as in the commercial world and is of almost end- 

 less variety. Notes are often protected by mort- 

 gages on real estate, by chattel mortgages, by 

 the deposit of bonds or other notes, by ware- 

 house receipts, or by the delivery of personal 

 property of any kind. A note having collateral 

 securing its payment carries with it into the 

 hands of the purchaser full recourse to such 

 collateral by the mere change of ownership of 

 the note. 



In some states there are special statutes regu- 

 lating, to some extent, the form and subject 

 matter of notes ; but it is only necessary to refer 

 to this fact here, the general principle of the law 

 of negotiable paper being the same everywhere. 



Negotiable notes, in general, by reason of the 



