1. In 891 dollars, 80 cents, how much sterling money; exchange at par?

2. In 4282 dollars, 50 cents, how much sterling money; exchange at 24 per cent above par?

3. In £509. 8s. 6d. sterling, how many dollars; exchange at 4 per cent above par?

4. A merchant in London owes 7824 dollars, 45 cents, to a house in New York; what sum, in sterling money, is necessary to discharge the debt, when exchange is at 34 p. ct. under par?

5. For what sum, in sterling money, should a bill be drawn to remit 5000 dollars, when exchange is 5 per cent above par?

6. In 2482 dollars, 26 cents, how much Dutch money; exchange at 36 cents per guilder?

7. In 2296 marcs, 10 schillings, 8 pennings Banco, of Hamburgh, how many dollars; exchange at 33 cents per mare banco ?

8. In 5348 francs, 35 cents, how many dollars; exchange at 5 francs, 30 cents, per dollar?

WEST INDIES.

Accounts are kept in the British islands in Pounds, Shillings, and Pence, currency. The Pound being divided in the same manner as the Pound sterling.

The currency of the West Indies is an imaginary money, and varies in value in different islands, £100 sterling being equal in value to £140 currency in some islands, and £200 currency

in others.

The Spanish Dollar is the principal circulating coin in the West Indies, and the standard by which the value of all other monies is regulated.

Although the value of the currency has been attempted to be fixed by law in several of the islands, yet it is chiefly regulated by the course of exchange with London, which is liable to great variation, and even affects the value of the coins.

In Jamaica, the value of currency is fixed, £140 currency for £100 sterling; and, instead of exchange, there is a premium on London bills, of from 10 to 20 per cent.

In some of the islands there are also small copper coins, called Dogs and Half Dogs. The Dog is worth 14d. currency.

The intrinsic par of the currency of the above coins, in English gold, is £100-£154. 15s. currency.

In the French islands, the French inhabitants keep their accounts in Francs, or Livres, Soles, and Deniers.

In some of the Dutch colonies, accounts are kept in the same coins as in Holland, and others in Pieces of Eight, that is, Piastres current of 8 Reals, or Schillings; each Real being divided into 6 Stivers.

In the Danish islands, accounts are kept in Piastres, or Rixdollars current, also called Pieces of Eight.

In the Spanish islands and in all Spanish America, accounts are kept in Pesos, or Dollars of 8 Reals, which are subdivided into 16 parts, and also into 34 Maravedies Mexican Plate.

Bills drawn in the West Indies, on London, and not duly honoured, are returned to the drawer with certain damages, or charges, which are generally from 8 to 10 per cent.

Currency is converted into sterling money, and vice versa, by simple stating of Proportion.

EXAMPLE.

In £879. 8s. 6d. how much sterling money; exchange at £165 per £100 sterling?

1. In £987. 12s. 6d. sterling, how much Jamaica currency; exchange at £140. currency, per £100. sterling?

2. In £7842. 8s. 9d. Barbadoes currency, how much sterling money; exchange £145. per £100. sterling?

3. In £810. 5s. 3d. Trinidad currency, how much sterling money; exchange at £1924 per £100. sterling?

4. In 7537 dollars, 50 cents, how much sterling money; exchange at 463 dollars per £100. sterling?

5. In £500. sterling, how many dollars; exchange at 514d. per dollar?

ARBITRATION OF
EXCHANGE.

ARBITRATION OF EXCHANGE is a comparison between the Courses of Exchange, of several places, in order to discover the most advantageous method of drawing and remitting bills.

Aribitration is of two kinds, Simple and Compound.

Simple Arbitration comprehends all exchanges where three

places are concerned; and Compound Arbitration all exchanges where more than three places are concerned.

SIMPLE ARBITRATION.

The use of Simple Arbitration is, to discover whether it be more favourable to exchange directly with any place, or through the medium of a third place; or, in the case of a remittance, whether it would be more advantageous to purchase a bill on the spot, upon an intermediate place, to be sent for negociation to the place which is the ultimate object of the operation; or, in the case of a draft, whether it would be more advantageous to make a remittance, from such a place to an intermediate place, upɔn which the amount might then be valued. The object of these operations may in general be attained, by observing the following directions:

1. If the place where a merchant resides give the certain price to that with which he negoicates, in remitting, he should make use of that intermediate place by which the highest exchange may be obtained; but the contrary in drawing.

2. But if the place where he resides give the uncertain price, it is best to remit through that place which establishes the lowest exchange; and vice versâ, in drawing.

EXAMPLE.

If the exchange between London and Lishon be 68d. sterling per milree, and that of Amsterdam on Lisbon 48 grotes Flemish, per old Crusade, what is the arbitrated rate of exchange between London and Amsterdam.