What do understand by the term Liquidity

Before the 16th September 1971 banks maintained a cash ratio of 8 percent and a liquidity ratio of a further 20 percent. From 1971 to 1981 they kept a minimum reserve ratio of 12 percent, but in early 1981 it was reduced to 10 percent.

Then, from August 1981 the minimum reserve requirement was discontinued and the banks’ prudential reserves became a matter for confidential discussion between each bank and the Bank of England, as part of the Bank of England also has the right to call for the deposit of further reserves if it wishes.

These ‘special deposits’ will be called if banks pursue such generous credit policies that the Bank of England fears inflation difficulties may arise from excessive business activity. The banks are always concerned about liquidity, and many of their investments are ‘near-cash’ investments, i.e. investment which can be turned back into cash immediately if necessary.

In this type of investment the bank can ask for only a low rate of interest, but they are safer because they have funds on call if required. By lending at least some of their funds in more liquid “near-cash’ loans they are likely to keep their-lending down to about 3 times what is really deposited.

Advertising

The object of advertising is to make the goods and services which are sold by the salesmen known to the customer. Through the use of various advertising media the public is informed of the goods and services sold by the salesmen, which makes the work of the salesman easier. It is thus an information service.

Sometimes the advertising itself cells the product but in most cases it is the salesman analyses the particular prospect and used the most appropriate buying motive to effect the sale. Advertising on the other hand has a wider appeal and tries to reach a number of persons.

The object of both, however, is to bring your goods and services to the notice of members of the public or your prospects, i.e. likely customers. It is therefore necessary to link up advertising and the salesmanship of the salesman.

1. Importance of Salesmanship and Advertising

Both salesmanship and advertising constitute essential services to (a) the producer, (ii) the distributor and (iii) the consumer. They help the producer and distributor in the distribution of their goods and services to the mutual satisfaction of the buyer and seller. They help the consumer in the satisfaction of his wants. Both salesmanship and advertising constitute and information service in that they guide the customer in the selection of goods from the larger variety which is available today in the market. Were it not for salesmanship and advertising a large quantity of the goods would not be sold. Unless goods can be sold the question of production cannot arise. Thus a nation’s success today depends materially of selling and not merely on production.

It is because of salesmanship and advertising that yesterday’s luxuries of a few have become today’s necessities of the many. This has resulted in mass production, improved techniques of production and consequently lowering of the price and rising of the standard of living. Advertising tells the consumer where he can obtain the goods and saves him wandering aimlessly by guiding him to the correct store which sells what he wants to buy. Advertising also reminds him as to when to replace a certain article.

For example it reminds children to brush their teeth, adults to replace worn unsafe types with new ones which may save their lives. Both advertising and salesmanship give the consumer the facts which the needs in order take an intelligent selection.

Salesmanship and advertising increase the demand of the product and thus help the manufacturer to sell more and enable him to introduce mass produces the unit cost and consequently the selling price its benefits both the manufacturer as well as the consumer.

Advertising protects the manufacturer against unfair substitution. It helps the manufacturer to inform the market speedily regarding changes in is products or services. Advertising creates a steady demand and thus helps stabilise production. By helping the salesman advertising makes the job of the shopkeeper easier.

It benefits the retailer or shopkeeper through the quickening up of his turnover, and the reduction of risk on dead stock. It also helps in building character for the store, and gives it a personality of its own.

Advertising Media

If the proper advertising media is not selected the potency of the advertisement would be decreased even though it may be well drafted. The advertising media may be divided into (a) Press Advertising, (b) Outdoor Advertising, (c) Advertising Literature or circular Advertising and (d) Miscellaneous forms of advertising.

Press Advertising consists of advertising in newspapers, magazines, trade journals, well-known books and annual. The press is considered by most people as the best medium for advertising-a medium which can reach even a remote village.

The life of morning paper is longer than that of an evening paper. If the object of advertising is to reach a particular locality a local paper may be preferred to a nation paper. Newspapers are read often and have a large demand because they carry news and constitute good form of continuous advertising.

A newspaper provides scope for timely announcement and an opportunity for a lengthier appeal. Trade Journals or Class Publications circulate among a special class such as doctors, dentists and architects and are useful where the appeal is to be directed to a particular class of persons. Outdoor advertising may consist of advertising on posters, painted signs, electric signs and vehicular advertising. This form of advertising is useful to remind the public of the goods which have already been advertised through press or circular advertising.

It is useful only as a reminder because there is not much scope for giving details. Advertising Literature consists of leaflets, folders, booklets and catalogues sent to either (a) the consumer or (b) the dealer.

There is scope for giving details and also for sending it to selected person. Miscellaneous forms of advertising include advertising on the radio, film advertising, cinema slides, demonstrations and window displays. As a person who does not wish to hear a particular programme can always switch off the radio when the advertising is paced in the midst of very interesting programme there are greater chances of the advertising being heard.

Television advertising combines the advantages of radio advertising with the visual aspect, as it can provide for actual demonstration. Thus the utility of each media has to be considered before the final selection is made.

Copy and Layout for an Advertisement

To the advertising man the word “copy” refers to the body copy or the main text matter of an advertisement. He sometimes used it to include headlines, sub-headings and captions. Used in an all-embracing manner it includes all printed material in an advertisement including slogans, trademarks price figure, etc.

The copy of the advertisement must e prepared very carefully bearing in mind the buying motives or the reasons why a person buys. It is the motivation for which sparks the response in the person to whom the advertisement is addressed. A well drafted advertisement has attention value, arouses the interest of the reader, creates a desire in him to possess and suggests action.

The copy thus does the work of the salesman. After the copy is prepared the compositor has to be given a clear idea as to how the exact advertisement should appear. This is done by the layout which indicates the arrangement of the matter including illustration, blocks, etc. in the advertisement.

The layout is prepared separately from the copy and indicates all details such as the kind of type to be used, the space required, borders to be used and the position of the illustration.

Proof-Correcting

Whenever any matter is sent for printing, the printer first sends rough printed sheets, known as proofs for correction by the publisher or author. The corrections are to be made in the margins on either side of the printed matter. Instead of writing each correction in full, it is more •convenient to use certain well-known marks.

Essentials of salesmanship

Salesmanship may be defined as the art of persuading people to buy goods or services which would give them satisfaction with the help of methods involving the minimum expedition with the help of methods involving the minimum expenditure and time. The most important aspect of salesmanship is the rendering of service. If the customer is guided -properly to select goods which will give him 3atisfaction he will become a permanent customer.

It is therefore said that the efficient salesman sells no goods but satisfaction. A good salesman through persuasion motivates the feelings of the customer into action. He converts needs into wants. Man is bundle of dormant wants. It is the duty of the salesman to awaken in him the need and make him realise it by converting it into a want.

For example a person may need a radio but in his house, would first convert the need into a want and make the customer desire to possess a radio. According to the modern concept of salesmanship, a sale must be to the mutual benefit of the salesman as well as the customer. Unless the customer gets a benefit he will not become a permanent client. Besides, a satisfied customer is the best advertising medium.

1. The Sales Process

The six states in the Sales Process are (i) Prospecting, (ii) Pre-approach, (iii) Approach, (iv) Presentation, (v) Meeting Objections and (vi) Close. Prospecting consists of securing the names and addresses of likely customers. The next state is of getting sufficient information about these prospects before they can be approached. This is known as Pre-approach. The stage when the customer and the salesman meet or come face to face is termed the approach. In order to complete the sale you will have to present the goods and demonstrate their special features.

The steps involved here are (i) attracting attention, (ii) arousing interest, (iii) creating a desire to posses the article and (iv) stimulation action. During this process the customer will naturally come out with his objections which will have to be met adequately.

The commonest objection is the price objection, namely, that the price is too high. As already explained previously value must be established. Once it is done the price will appear to be relatively low. The whole object of this process is to complete the sale and therefore the last step is referred to as the close.

1. Fundamentals of Selling

A person who wants to be successful in any vocation or profession must master its fundamentals. The fundamentals of salesmanship can be classified into the following three categories:-

(a) Knowledge of the Goods;

(b) Knowledge of the Customers; and

(c) Knowledge of Yourself;

(i) Knowledge of the Goods and their Selling Points

A salesman who has through product knowledge can obtain larger orders and render better service. He will have confidence in himself and will not be afraid of objections and questions which may be raised by the customer.

Product knowledge will help him ascertain the selling points of the article or service the is selling. A selling point is the advantage possessed by the article or service which would help in selling it through proper emphasis.

The salesman having good product knowledge can ascertain the selling points and build the sales talk on a solid foundation. He wills e able to present an effective sales story and defend its presentation. A good salesman has knowledge not only of his own products but also of those of his competitors and of the position of the whole industry.

Product knowledge will help the salesman to establish value in the mind of the customer and meet the common price objection. The customer weighs in his mind the price against the advantages or benefits or the value that he gets by buying the product. A salesman with thorough knowledge of his goods will be able to emphasise the correct selling points and thus establish value.

The selling points in common use are low price, attractive package, latest design, ease of use and comfort. The selling points should be linked up with the “buying motives” or the “reason why” the customer buys. Product facts must be thus converted into selling points showing how the customer benefits.

(ii) Knowledge of the Customers and Why they Buy

When you purchase an umbrella, you will no doubt consider the attractive handle, the colour, and the price; but why do get wet in the rain; but why because you do not wish to catch a cold or wish to preserve your well- groomed appearance. Thus the basic reasons for this purchase are (a) health, (b) personal pride and (c) comfort.

The reason why a person buys is called “Buying Motives.” Emotional Buying Motives appeal to pride, fear, vanity, love and desire for comfort. Rational Buying Motives consist of desire for profit, economic, efficiency of operation and dependability. Patronage Motives result in the prospect preferring to buy from a particular store or company and may be due to service, reliability, convenient location or large selection.

Predict motives make the prospect prefer one specific product to another because of the special appeal of that particular product. It is therefore necessary to find out the buying motive involved so that it can be emphasised in selling. There is various type of customers and different personality traits are required to deal with them satisfactorily.

The dependent customer may be undecided or timid and sensitive. He must be handled with decision, gentleness and sympathy. The disagreeable customer may be talkative, inquisitive or insulting. This type requires courteous brevity, knowledge and self-control. The trying customer may be silent or the bargaining type. They require perseverance and a convincing manner.

The common-sense customer requires courtesy and intelligence. The nervous customer may be excitable, unreasonable or impatient. He requires a quiet manner, calmness and patience. Every customer is an individual. It is therefore necessary to diagnose the customer to deal with him effectively. Women customers are a class by themselves with their peculiarities. They are difficult to please. This is because a woman’s senses are sharper than that of a man. Her taste is keener.

She desires quality and at the same time economy. She is often irritable and loses her temper at the salesman who inadvertently suggests that another article is in better taste. Women customers want to be treated as queens. Their peculiarities demand special treatment. Women customer, however, even in our country, are gaining in importance and are likely to steal a march over men as important customers.

(iii) Personal Qualities of a Good Salesman

Personality is the total of one’s characteristics. Therefore to have a magnetic and effective personality the positive and good qualities must be developed. The belief that a salesman is “born” is fast dying out an is replace by the conviction that a salesman is made.

There is a body of knowledge available in salesmanship which supports its claim to being a “science.” A good selling he must however apply these through constant practice, just as violinist does to master his art. Salesmanship is an “art” and requires constant practice to make it effective. The customer has his first look at the salesman as the representative of the organisation selling the product.

The salesman’s outward appearance will therefore determine whether or not his first impression is a god one. If the salesman presents a dignified and an important appearance the door will be opened easier and he will get the opportunity of beginning his sales story.

A salesman who cannot make a good first impression is likely to fail in arousing the customer’s interest or inspiring his confidence. Whether a favourable impression is made depends on (i) grooming, (ii) posture, (iii) facial expression, (iv) voice and (v) speech. These are described as the physical traits of one’s personality. Cleanliness of body and neatness in cloths constitute good grooming. Clothing should not however be flashy as it might distract the customer from the sales presentation.

The style of clothing should be attractive but inconspicuous. Clothes should be clean and well-pressed. The hair should be neatly brushed. Hands and nails should be clean. Good posture enhances the appearance, commands respect and inspires confidence. It is therefore necessary to have an erect but natural posture. Do not shuffle into the prospect’s office or slouch in a chair. Look the customer in the eye to show that you are attentive and alert. A good salesman should know how to smile.

A good smile often helps to win the sale and put the prospect in a happier frame of mind. A good salesman should have a pleasant voice-forceful, well-modulated and not monotonous. Diction should be clear and the words clearly enunciated. He should be able to express his ideas clearly. The above traits or characteristics determine “How you Look.” A good salesman must be able to get along with people. “How Your Act” or the actions of the salesman are governed by his character traits. The appearance may impress the customer but the way you act will inspire trust and respect.

The customer expects friendliness, courtesy, interest, honesty, dependability, patience and co-operation.

A salesman must have consideration for the feelings problems and opinion of others. Courtesy demands that the customer be treated as guest. Therefore do not ignore the customer but approach him prompt. Do not laugh or sneer at the customer or rush him. If a salesman is cheerful, it helps the customer to be cheerful also. In order to be cheerful you must have good health and should be free from family and financial worries. Therefore remove worry and happiness will automatically follow.

Co-operation is also an important quality. This involves the ability to work with others. There must be co-operation with the customer as well as your fellow employees. The whole organisation should work as a team. A salesman must develop a genuine liking for persons which will give him enthusiasm. Do not be self-centred but take a genuine interest in others, particularly your customers. This is an important quality for winning friends.

Honesty is an extremely important trait and will build permanent goodwill and customers will prefer to do business with you. This involves never “palming off” goods but always thinking in terms of rendering satisfaction and service to the customer.

The mental traits or characteristics required of a good salesman are accuracy alertness, the ability to organise sales ideas and selling points, constructive imagination, observation and a good memory. A salesman who is alert will e able to diagnose the customer more accurately and gauge what is happening in the mind of the customer through his action.

A salesman desiring to become customer-minded needs imagination. This quality enables him to look at the selling problem through the eyes of the customer and to find out ways and means by which the problem can be solved to the mutual advantage of both customer and salesman.

Filing system

In these days of short credit and quick returns, with the margin of profit very small, correspondence generally assumes proportions which are unmanageable unless efficient filing and indexing systems are maintained. Filing is a process by which records are classified and arranged in such a way that they be kept safely and found easily and quickly whenever required.

Besides correspondence, i.e. letters, there are many other documents that require filing such as legal documents, blueprints, reports, maps, films, samples, catalogues, press clippings, etc. We shall deal with few methods, old as well as new.

1. Filing Methods

Basically the filing methods from which a selection has to be made are as follow: –

(a) The Flat System,

(b) The Lateral System,

(c) The Press Copy, Book, and

(d) The Vertical System.

The Flat or Horizontal System of Filing

In the flat or horizontal system of filing the paper lie flat on top of each other in the order in which they arrive for filling, the latest, being on top. The papers are held together by means of string, wire or metal passing through specially punched shoes.

The flat system of filing is undoubtedly an improvement on the pigeon-hole system. Cardboard covers, or drawers or utilized, what are known as Pilot files, are used. A Pilot consists of a mental ‘Pilot’ into which the letters are stuck, with a mechanical conative which enables letters to be removed or inserted at will.

On the outer cover of this file are pasted labels on which the alphabetical, or geographical, title of the file is written. To inset letters on the file, holes through which the metal pilots are to pass must be made; special punches to do this are obtainable. Several alphabetical divisions may be made in the same file, or a separate file may be used for each correspondent, according to the volume of correspondence.

Sometimes Filing Cabinets, such as the Shannon file with a large number of drawers of suitable size with the pilot fixed in each, are used so that correspondence lies flat in these drawers. On the front of each drawer there is a metallic frame into which a card, indicating the contents of the drawer, is slipped. The drawers may be alphabetically indexed in the same manner as the cardboard files.

An advantage of the flat system is that the papers are placed in the order in which they are received, i.e. by date the latest one being on top, and as letters are not meant to be removed from such files for reference there is very little risk of papers being misplaced. Of course there is the inconvenience of having to carry the whole file whenever a reference has to be made to a single paper.

Lateral System of Filing

The lateral system of filling is a recent variation of the vertical system. In this system the files are place in a cupboard within horizontal rods instead of shelves from which the folders for each file are suspended. Each folder opens at the side to enable the file to be slipped in without disturbing the other files.

The whole cupboard occupies about square feet of space and as no drawer has to be pulled out, the total space and as no drawer has to be pulled out, the total space occupied is about one-third of the usual space required for the usual vertical filing cabinet. The index is also angles for easy reading. When the cupboard is opened all the files are seen at once as the doors fold back or slide away out of sight.

The Press Copy Book

Even where modern systems of filling and indexing are worked, because the press copy book affords the most useful evidence of the fact that a particular letter was written on a particular date, in the regular course of business. This method of copying letters is more expensive than Carbon or Rotary copying.

It is a much slower method and the outfit system is less convenient for references purposes as the copy sheet it not loose and therefore cannot be filed within the letter to which it is a reply. In large firms press copy books are divided either on the alphabetical or geographical basis. Thus, one press copy book may embrace press copies of all letters written to customers whose surnames begin with the letters A to E, another with F to I and so on.

When, however, the number of letters is large, and the firm has correspondents in different parts of the world, it may found convenient to divide these books on a geographical basis, reserving one for Europe, one for the Far East, one for America, and so on. Letters dispatched are press copies in order of date and indexed at the beginning, or the end, of the book.

The press book is usually made of thin sheets of tissue or other paper with consecutively numbered corners and it is strongly bound. Stronger writing paper is usually bound in to make the index. These index sheets are divided according to the letters of the alphabet, and when indexing the clerk should write on the appropriately lettered index page, the addressed to him are copied.

Press copying involves the use of a letter Book, oil sheets drying sheets, a water well, a damping brush or a “copying bath” in the case of a typed letter, and a copying press. Under this system both band-written as well as typed letters may e copied.

Methods of Press Copying a Hand-written Letter

Place an oil sheet the back of the last used leaf of the letter book and turn the next leaf on the oil sheet. Wet the brush in the water well and pass it lightly over the leaf leaving the numbered corners and the inner length of the leaf dry. Place a drying sheet over the wet surface and another oil sheet over the drying sheet. Then close the book and place it in the copying press so that the superfluous moisture may be absorbed in the drying sheet. Remove the book from the press; take the drying sheet out of the damp leaf.

Press the whole for a few seconds and then remove the letter from the book, leaving the oil sheets in the book otherwise the damp leaf will spoil the dry leaves. A little practice is needed to produce the correct degree of dampness in order to make a perfect copy, i.e., one which is not blurred as a result of over dampness of one which is too faint due to insufficient moisture.

(i) Docketing or Pigeon-hole System of filing

This system is one of the most ancient, and is now in use only in Government and old-fashioned lawyer’s office. Nests of pigeon-holes, each consisting of at least twenty- six holes are used. Supposing that the correspondence of the firm is small, and only one nest of pigeonholes is used, the system would be worked as follow.

Each pigeon-hole indicates a latter of the alphabet, and all correspondence with persons whose surnames begin with the letter A are filled in the pigeon-hole A. This filing is done by docketing the letters of each correspondent separately. Let us suppose that a letter received from a constituent called John Adam has been replied.

The original letter, plus either a carbon-copy or the press-copy of the reply, is wrapped in a thick hand-make paper and folded lengthwise. On this wrapper, is written in bold letters the name, “ADAM JOHN,” the year and one- line summaries of the contents and dates on the letters in the docket.

The firms correspondence with John Adam during the year 1960 would thus accumulate in this docket and be ready either for reference or to be taken out of the office in an emergency. Where correspondence is heavier several pigeon-holes, or whole nests of pigeon-holes, may be used for each letter of the alphabet. At the end of the year the pigeon-holes are cleared and the correspondence tied up in bundles and stored in boxes.

The boxes should be labelled alphabetically, and with the year during which the correspondence was carried on.

2. The Telegram

The importance of telegrams in business lies in the fact that message can be sent most quickly to any part of the world through their medium. As telegrams are costly, every word being separately charged for, the person who drafts them must do so in the fewest number of words he can without sacrificing the meaning, or creating any ambiguity. What it wanted is clearness and brevity, irrespective of correctness of style or grammar.

The best way to draft a telegram is to write out the full message on a piece of paper and then to select the essential words and to wire those only cutting out all the unnecessary words. Telegrams must e written on special forms supplied by the telegraphs office. Every telegram sent out of the office should be followed by a letter sent by post on the same day repeating the exact wording and giving an explanation if necessary.

The most common practice is to enclose a carbon copy of the telegram in the confirmatory letter. Generally three copies are made of the telegram, one to be sent to the post Office, the second to be sent by letter and the third to be filed for reference purposes.

Telegrams sent by a sea cable are known as cablegrams and those sent by wireless telegraphy are called radio telegrams.

(i) Telegraphic Address

In order to save expense in telegraphing most firms register an abbreviated telegraphic address with the Telegraph Office. Such addresses are limited to 10 letters and the fee is Rs. 50 yearly or Rs. 25 half-yearly payable in advance.

Unless a telegraphic address is registered, the address of a telegram should be sufficiently full to enable it to be delivered early without search or inquiry. An address in the form of a Post Box number or telephone number is also permitted, e.g., lyre Post Box 59 Madras or Mukerji telephone 2568 Calcutta

(ii) Telegraph Codes

Firms who constantly communicate through the medium of cables and telegrams usually use telegram codes and indicate the codes they use in their letterheads. There are several well-known telegraph codes, e.g., the ABC, Marconi’s, Bentley’s, etc.

The advantage of using a code is that a long message can be clearly communicated at the cost of only a few words. This is possible because a code consists of thousands of words made up of letter groups each group representing a particular phrase. Thus only one work does the work of several. These groups or code words are arranged in alphabetical order and properly indexed. Private codes which conform to post office requirements are permitted.

Code language may consist of artificial words or real words not intended to be interpreted in their normal meaning, or it may be counted at the rate of a maximum of ten letters to words for the purpose of charge, in the case of foreign telegrams a code words should not contain more than five letters. Telegrams of an objectionable nature are not accepted for transmission.

(iii) Reply-Paid Telegram

The sender may pay the cost of the reply in advance. The amount so paid must not be less than the minimum charge for ordinary telegrams, and the words “Reply Paid,” together with the amount if it is greater than the minimum, should be written in the space provided on the form.

(iv) The Cipher Telegram

Cipher is composed of Arabic figures or groups or series of oppressions or combinations of letters which do not fulfil the conditions applicable to plan language or code language.

(v) Ordinary and Express Telegrams

There are two main classes of telegram-ordinary and express. If the sender does not state the class of the telegram it will be treated as an ordinary telegram. An express telegram costs twice as much as an ordinary one, takes precedence over ordinary telegrams in transmission and is delivered by messenger at any time during the day or night.

Ordinary telegrams are transmitted in their turn after express telegrams and are delivered during the working hours of telegraphs offices.

3. Indexing

Indexing is a method of recording very briefly exactly where a particular reference, field etc. may be found. An index, sometimes called a schedule, abstract or docket, is usually a tabulated statement arranged in chronological order of the documents, briefly showing the important features of each document and mentioning the names of the parties between whom the correspondence has passed. You can by this means easily maintain indexes of correspondents, policyholders, shareholders, members of a club or association, books in libraries, specimen signature cards, gramophone records, films, etc.

Indexing may be divided into the following types, namely classification:-

(a) Alphabetical,

(b) Numerical,

(c) Geographical, and

(d) Subject

This classification is done to segregate correspondence or other information on cards for speedier access.

Alphabetic filing may be done according to (i) name, (ii) subject, and (iii) location.

Numerical filing is arranging according to numbers. Again, the correspondents may be classified “Geographically,” i.e. according to the geographical in accordance with the subject-matter involved, e.g. Accounts, Administration, Sales, etc. This is known as the Subject Classification or Indexing. In practice, a suitable combination from the above four types of classifications in filing is generally adopted.

Alphabetical Indexing Rules-The following rules for indexing and filing names should be followed as closely as possible while filing in any of the above systems.

Rule 1 Name of individual

The arrangement should be first according to the surname, the first and middle name follow.

Rule 2 Names of Firms

When names of firms and institutions do not include the complete name of an individual, the correct filing arrangement would be exactly as they are written e.g. where the names of firms of institutions include the complete name of an individual the correct filing arrangement would be as in the case of Rule 1 e.g.

Rule 3 The Definite Article “the”

When a name begins with “the” put it at the end in parenthesis e.g. when “the” occurs in the middle of a name just put it in parenthesis without changing its position e.g.

Rule 4 Prefixes

When a sur-name has a prefix such as D\ Da, Mac, O, St., Van, Von, the prefix is considered as part of the surname e.g.

Rule 5 Alphabetic Order

You must have observed while reading Rules 1 to 4 that each word in name is an indexing unit. When arranging the names in alphabetic orders first compare the names in the first unit. If the names in the first unit are identical then only should you compare the names in the second unit and so on.

Cross-References

By cross-referencing is meant the system by which each letter to particular correspondent is cross-referenced to the preceding as well as to the next letter to the same correspondent so that time may not be lost in turning back to the index, e.g., there is an entry in the index referring to the several pages of the letter book or file in which the letters written to XY Co. Ltd., are copied.

Vowel Sub-Index

Besides the alphabetical index there is another system of indexing known as the vowel index. This is mostly used in Government offices. Under this system each letter of the alphabet is divided into six divisions according to the first vowel after the initial letter of the word indexed.

The Card Index

When the index is as a cad index the indexing is done on cards of uniform size which are kept in trays, or in drawers of a cabinet standing in alphabetical order the cards are kept in position by a rod inserted through them and fixed to guide blocks.

They are separated by what are called guide cards, which indicate the division according to the letters of the alphabet, Names, addresses and other particulars to which reference is required are written on these cards, and the cards are arranged according to the first letter of the sur­name, or the principal name of the firm or individual concerned.