for 987£. 18s. 6d. He invested this sum in broadcloths, at 1£. 3s. 8d. per yard. His commission for selling the flour is 24 per cent., and for purchasing the broadcloth 17 per cent., and he is to receive his commissions, for selling and buying, out of the proceeds of the flour. Required the number of yards of broadcloth that I should receive. Ans. 801-yd.

14. I have remitted to my correspondent a certain sum of money, which he is to lay out for me in iron, and having reserved to himself 21 per cent. on the purchase, which amounted to $90, he buys for me the iron, at $95 per ton. Required the sum remitted, and the quantity of iron purchased.

Ans.

( Sum remitted, $3690.

Iron purchased, 37T. 17cwt. 3qr. 16 lb.

SECTION XLIV.

STOCKS.

STOCKS is a general name used for funds established by gov ernment, or individuals, in their corporate capacity, the value of which is often variable.

When stocks will bring more in the market than their original cost, their value is said to be above par, and when, from any circumstance, their value is less than the original cost, they are said to be below par.

The method for computation is the same as in Interest.

EXAMPLES.

1. What is the value of $24360 of the National Bank stock, at 135 per cent.? $24360 x 1.35 $32886 Ans. 2. Sold 15 shares, $100 each, of the Boston Bank, at 13 per cent. advance. To what did they amount? Ans. $1695.

3. What must I give for 12 shares in the Haverhill Bank, at 15 per cent. advance, shares being $100 each? Ans. $1380. 4. What is the purchase of 1058£. 12s. bank stock, at 115 per cent. ? Ans. 1225£. 6s. 7d. 5. Sold 30 shares, $100 each, in the Boston and Providence Railroad, at 8 per cent. advance. To what did they amount? Ans. $3262.50. 6. What is the value of 10 shares in the Philadelphia and Trenton Railroad stock, at 85 per cent., original shares being $100 ? Ans. $850.

7. What must be given for 5 shares of the stock in the Ocean Insurance Company, at 7 per cent. advance, the original shares being $100 ? Ans. $535.

SECTION XLV.

INSURANCE AND POLICIES.

INSURANCE is a security, by paying a certain sum, to indem nify the secured against such losses as shall be specified in the policy.

POLICY is the name of the writ, or instrument, by which the contract or indemnity is effected between the parties.

NOTE. If the average loss does not exceed 5 per cent. the underwrit ers are free, and the insured bears the loss himself.

1. What would be the amount of the insurance on my house, valued at $5728, at 12 per cent.? Ans. $100.24. 2. What would be the premium for insuring my good ship Betsey, for a voyage from Boston to Liverpool, at 14 per cent., the vessel being valued at $17,289.

3. My ship Massachusetts is valued at sure $10,000 at the Columbian Office at 4 at the Atlas Office at 37, and the vessel voyage, what is the amount of my loss?

is

Ans. $216.11. $50,765. If I inper cent., $12,000 cast away on her Ans. $29,705.

4. A gentleman in Boston effected an insurance on his store and goods, valued at $ 47,600, for 5 years. For the first year he is to pay 44 per cent., for the second year 37 per cent., for the third year 4 per cent., for the fourth year 5 per cent., and for the fifth year 5 per cent. What is the amount of his whole Ans. $11,007.50. 5. What is the premium on $1728 at 74 per cent? Ans. $125.28.

insurance?

6. My ship, the Julia Ann, is valued at $35,000, and her cargo at $75,000. I procure an insurance on the value of the ship, at 31 per cent., and on of her cargo, at 21 per cent. What is the amount of premium ? Ans. $1932.50. 7. The good ship Marcia Demming is valued at $18,750; her cargo cost $37,960, and, being bound to Canton, I have got

$10,000 insured on the vessel, at 38 per cent., and $20,000 on What would be my loss if the vesAns. $27,997.50.

her cargo, at 42 per cent. sel should founder at sea?

8. My library consists of 2691 volumes, valued at $3675. If I get this insured, at 47 per cent, what is my actual loss if it be destroyed? Ans. $179.15ğ. 9. What is the premium on $896, at 12 per cent. ?

Ans. $107.52. 10. What is the premium on $850, at 181 per cent. ? Ans. $157.25. 11. What is the premium for insuring $ 9870, at 7 per cent.? Ans. $690.90.

12. What sum will be secured for a policy of $1728, deducting 15 per cent. ? Ans. $1468.80. 13. What sum must a policy be taken out for, to cover $2475, when the premium is 10 per cent. ?

NOTE.

Ans. $2750.

As 10 per cent. is already taken out, the sum covered must be 100 of the policy.

90

14. A certain company own a cotton $26,250. For what sum must a policy be the whole property, at 124 per cent. ?

15. If a policy be taken out for $3600, at

is the sum covered?

factory, valued at
taken out to cover
Ans. $30,000.
40 per cent., what
Ans. $2160.

NOTE. It is evident, that, if 40 per cent. be taken from any sum, 60 per cent. will be left.

16. If a policy be taken out for $ 600, at 10 per cent., what is the sum covered? Ans. $540.

17. A merchant adventured $1000 from Boston to New Orleans, at 3 per cent.; from thence to Chili, at 5 per cent. ; from thence to Canton, at 6 per cent.; and from thence to Boston, at 7 per cent. For what sum must he take out a policy, to cover his adventure the voyage round?

Ans. $1241.34,8+.

SECTION XLVI.

BANKING.

A BANK is a place of deposit for money, which is usually divided into shares, and owned by persons called stockholders.

Its concerns are managed by a board of directors. It issues
notes or bills of its own, intended to be a circulating medium
of exchange or currency, instead of gold and silver. These
bills are obtained from the bank by loans.
When money is
hired from a bank, it is the usual custom to deduct the interest
at the time of receiving it. A man, therefore, who hires money
from a bank, gives his note for a sum as much larger than he
receives, as is the interest of the note for the given time. If a
man, therefore, gives his note for $100, payable in 63 days,
he receives only $ 98.95.

A promissory note is said to be discounted, when it is received at a bank as a security for money taken from it; and the interest deducted is the discount. The interest on every note discounted at a bank is computed for 3 days more than the time specified in the note; that is, if the note is payable in 60 days, the interest is taken for 63 days; for the law allows 3 days to the debtor, after the time has expired for payment, which are called days of grace.

The rule for computing the discount is the same as in simple interest.

EXAMPLES.

1. What is the bank discount on $476, for 30 days and grace? Ans. $2.61,8. 2. What is the bank discount on $1000, for 60 days and grace? Ans. $10.50. 3. What is the bank discount on $7800, for 90 days and grace? Ans. $120.90. 4. What is the bank discount on $8000, for 60 days and grace? Ans. $84.00.

5. How much money should be received on a note for $760, payable in 5 months, discounted at a bank when the interest is 6 per cent. ? Ans. $740.62.

6. What sum is paid at a bank for a note of $1728, payable 3 months? Ans. $1701.21,6. 7. A merchant sold a cargo of hemp for $7860, for which he received a note payable in 6 months. How much money will he receive at a bank for this note ? Ans. $7620.27.

8. A merchant bought 450 quintals of fish at $3.50 cash, and sold them immediately for $4.00 on 6 months' credit, for which he received a note. If he should get this note discounted at a bank, what will he gain on the fish? Ans. $170.10.

SECTION XLVII.

CARTER.

BARTER is the exchange of one kind of merchandise for another, without loss to either party.

Questions in this rule are solved by finding what quantity of goods, at a given price, of one kind, are equal in value to another kind of goods whose price is also given.

EXAMPLES.

1. How much sugar, at 123 cents per lb., must be given in barter for 760lb. of raisins, at 8 cents per lb. ? Ans. 4863lbs. 2. What quantity of coffee, at 17 cents per lb., must be given in barter for 760lb. of tea, at 624 cents per lb.?

Ans. 2794 lbs. 3. A merchant delivered 3 hogsheads of wine, at $1.10 per gal., for 126yd. of cloth; what was the cloth per yd. ?

Ans. $1.65. 4. A has 12cwt. of sugar, worth 8 cents per lb., for which B gave him lcwt. of cinnamon; at what did B value his cinnamon? Ans. $0.549 per lb. 5. A had 41cwt. of hops, at $6.70 per cwt., for which B gave him 17cwt. 3qr. 4lb. of prunes, and $88; what were the prunes valued at per lb. ? Ans. $ 0.0978.

6. A has sugar which he barters with B, for 4 cents per lb. more than it cost him, against tea which cost B 40 cents per lb., but which he puts in barter at 50 cents. What did A's sugar cost him per lb.? Ans. $0.16. 7. How many staves, at $25 per thousand, must a merchant receive for 15 hogsheads of wine, at $1.25 per gallon? Ans. 474M. staves.

8. Q has 670 bushels of oats, which cost him 35 cents per bushel; these he barters with Z, at 50 cents per bushel, for flour that cost Z $5.00 per barrel. What is the bartering price of the flour, and how much will Q receive?

Ans. 46 barrels of flour, at $7.144 per barrel.

9. S. Jenkins has 73 bushels of corn, which is worth 7s. per bushel; but in barter he is willing to put it at 6s. 8d., provided he can have wheat worth 7s. 6d. per bushel for 7s. 3d. Will he gain or lose, and how much per cent.?

Ans. Lose 13 per cent.