weight, or about $10.66 for each eagle; and all the gold coins of a subsequent coinage are a legal tender of payment in any sums whatever, according to their nominal values.

Of the silver coins coined prior to April 1, 1853, the three-cent pieces are a legal tender of payment in any sums of thirty cents and under, and the dollars, half-dollars, quarter-dollars, dimes, and half-dimes are a legal tender of payment in any sums whatever, at their nominal value, and all the silver coins of a subsequent coinage are a legal tender in sums not exceeding five dollars.

464. Besides the coins of the country, foreign coins, whose value has been fixed by law, and bank-notes, redeemable in specie, pass as money. However, by the act of Congress passed February, 1857, all former acts authorizing the currency of foreign gold or silver coin, and declaring the same legal tender in payment of debts, were repealed.

465. The intrinsic value of foreign coins is the value depending upon the weight and purity of the metal of which they are made; their legal value is that fixed by law; their commercial value is the price they will bring in the market; and their exchange value is the nominal price assigned to them in reckoning exchange between one country and another.

466. The United States mint, at present, purchases standard silver at $1.22 per ounce, and fine silver at $ 1.364 per

ounce.

NOTE. - At these rates of purchase, five-franc pieces yield about 98 cents each; Mexican and South American dollars, 1064 cents each; old Spanish dollars, 105 cents each; half-dollars of the United States coined before 1837, 52 cents each; half-dollars of the United States coined since 1837, and previous to the change of standard in 1853, 52 cents each; German florins, 41 cents each; Prussian and Hanoverian thalers, 72 cents each; best manufactured American plate, from 120 to 122 cents per ounce; and genuine British plate, 1254 cents per ounce.

467. By the act of 1843 the gold coins of Great Britain, if

915

not less than in fineness, were rated at 94 cents per pen

1000

1000

nyweight, and the gold coin of France of not less than 899 in fineness, at 92 cents per pennyweight. By a previous act, the gold coins of Portugal and Brazil of not less than 22 carats fine were rated at 94 cents per pennyweight, and the gold coins of Spain, Mexico, and Colombia, of a fineness of 20 carats 37 grains, at the rate of 89 cents per pennyweight.

NOTE. The relative value of gold and silver in the United States, at pres

-

29 100

ent, is nearly as 143 to 1; in England, as 14 to 1; in France and in Russia, as 15 to 1; in Spain, as 16 to 1; in China, as 14 to 1; and in Portugal, as 1356 to 1.

100

468. The value of certain foreign coins and currencies, as fixed by law in the collection of duties at the United States custom-houses, is shown in the following

469.

.69

Ducat of Naples,

Rupee of British India,

Franc of France and Belg., .18%
Livre Tournois of France, .18
Leghorn Livre,

.75 Lira of Lombardo-Vene-}

tian

.48 Lira of Tuscany,
Lira of Sardinia,
Real Plate of Spain,
Real Vellon of Spain,

.40

REDUCTION OF CURRENCIES.

.16

.16

.16

.18,

.10

.05

Reduction of Currencies is the process of finding the value of the denominations of one currency in the denominations of another.

470. To find the value of the denominations of one currency in the denominations of another, when the values of a unit of each are known.

Ex. 1. What is the value of 18£. 4s. 6d. of the New England currency in United States money? Ans. $ 60.75.

OPERATION.

18£. 4s. 6d. = 18.225£.

We reduce the shillings and pence to the decimal of a pound, and annex it to the pounds. We then divide the sum by, because 6s., or a dollar in this currency, is of a pound.

18.225 ÷ 1%

Ex. 2. What is the value of $ 60.75 in New England currency?

OPERATION.

60.75 X 1 18.225£. =

18.225£.
-
ΤΟ
18£. 4s. 6d.

RULE.

Ans. 18£. 4s. 6d.

Since 6s., or a dollar of this currency, is of a pound, we multiply the given sum by the fraction

3

102

and find the value of the decimal in shillings and pence.

Multiply or divide, as the case may require, by the value of the unit of the given currency expressed in United States money.

NOTE. When one currency is to be changed to another, and neither of them is United States money, the value of one of them may be found in United States money, and the value of that result be found in the other currency.

EXAMPLES.

3. Change 46£. 16s. 6d. of the currency of New York to United States money. Ans. $117.06. 4. Change $1032 to the currency of Pennsylvania.

Ans. 387 £.

5. Find the value of $ 515.70 in Canada currency.

Ans. 128£. 18s. 6d.

6. Change 160.50 francs to United States money. 7. Change $728.41 to English money.

Ans. 150£. 98. 114d.

8. Find the value of 12£. 12s. of the currency of Georgia in United States money.

Ans. $54.

9. Find the value of 128£. 18s. 6d. of Canada in United

Ans. $515.70.

States money. 10. Find the value of 740.45 rubles, silver, of Russia, in United States money. Ans. $555.33. 11. Find the value of 46£. 16s. 6d. of New York currency Ans. 35. 2s. 4±d.

in the currency of New England.

12. Change 151 millreas of Portugal to real plate of Spain. 13. Find the value of 1000 specie dollars of Norway in francs.

14. A merchant of Quebec bought in London 30 pieces of broadcloth of 30 yards each, at 15 shillings per yard; what is the amount of his bill in Canada currency? Ans. 816£. 15s. 15. A merchant of Prussia bought in Naples silks to the amount of 410 ducats; what was the amount of his purchase in thalers? Ans. 475 thalers.

EXCHANGE.

471. EXCHANGE, in commerce, is the paying or receiving money in one place for an equivalent sum in another, by means of drafts, or bills of exchange.

472. A BILL OF EXCHANGE is a written order, to some person at a distance, to pay a certain sum, at an appointed time, to another person, or to his order.

The maker or drawer of a bill is the person who signs it. The buyer, taker, or remitter of a bill is the person in whose favor it is drawn.

The drawee of a bill is the person on whom it is drawn, who is also called the acceptor, after he has accepted it.

The indorser of a bill is the person who indorses it.

The holder or possessor of a bill is the person in whose legal possession it may be at any time.

473. Most mercantile payments are made in bills of exchange, since it is generally more convenient to discharge debts by means of them than by cash remittances. For example, suppose A, of Boston, is creditor to B, of Baltimore, $100; and C, of Boston, is debtor to D, of Baltimore, $100; both these debts may be discharged by means of one bill. Thus, A draws for this sum on B, and sells his bill to C, who remits it to D, and the latter receives the amount, when due, from B. Here, by a transfer of claims, the Boston debtor pays the Boston creditor, and the Baltimore debtor the Baltimore creditor; and no money is sent from one place to the other. The same would take place if D, of Baltimore, drew on C, of Boston, and sold his bill to B, of Baltimore, who should send it to A, of Boston; the effect, in either case, being merely a transfer of debt and credit.

Bills of exchange pass from hand to hand, until due, like any other circulating medium.

474. The terms of a bill vary according to the agreement between parties, or the custom of countries. Some bills are drawn at sight; others, at a certain number of days, or months, after sight or after date; and some, at usance, which is the customary or usual term between different places.

DAYS OF GRACE.

Days of grace are a certain number of days granted the acceptor for paying the bill, after the term of a bill has expired. The usual time allowed in this country is three days.

NOTE 1. In some States three days of grace are allowed on all bills of exchange payable at sight, or at a future day certain; but in other States ́sight drafts are excepted, as in New York, Pennsylvania, New Jersey, Maryland, Virginia, Missouri, Illinois, Michigan, Connecticut, Rhode Island, Delaware, &c. No days of grace are allowed on bills written payable on demand, or which have no time of payment expressed in them.

NOTE 2. In reckoning when a bill, payable after date, becomes due, the day on which it is dated is not included; and if it be a bill payable after sight, the day of presentment is not included. When the term is expressed in months, calendar months are understood; and when a month is shorter than the preceding, it is a rule not to go in the computation into a third month.

Thus, if a bill be dated the 28th, 29th, 30th, or 31st of January, and payable one month after date, the term expires on the last day of February, to which the days of grace must, of course, be added; and therefore the bill becomes due on the 3d of March.

INDORSING BILLS.

475. An indorsement of a bill is the act by which the holder of it transfers his right to another.

It is usually made

on the back of the bill, and must be in writing.

476. Bills payable to order are transferred only by indorsement and delivery, but bills payable to bearer are transferred by either mode. On transfer by delivery, the person making it ceases to be a party to the bill; but on a transfer by indorsement, he is to all intents and purposes chargeable as a new drawer.

477.

An indorsement may take place any time after the bill is issued, even after the day of payment has elapsed.

NOTE. An indorsement may be restrictive, giving authority to the indorsee to receive the money for the indorser, but not to transfer the bill to another. The indorsement for a part of the money only is not valid, except with regard to him who makes it. The drawer and acceptor are not bound by it. After the payment of a part, however, a bill may be indorsed over for the residue. The indorsement is said to be in blank, when the indorser simply writes his name upon the back of the bill to make it transferable by delivery; and is said to be special, when the indorser directs the money to be paid to some particular person, or to his order. If the indorser would avoid all liability, he must qualify his indorsement by the words, "without recourse," or by others of the same import