6. My agent in Charleston, S. C., sells a house and lot for $7500, on commission of 1%, and remits to me the proceeds in a draft purchased at % premium; what sum do I receive from the sale of my property?

7. A man in Hartford, Conn., has $4800 due him in Baltimore; how much more will he realize by making a draft for this sum on Baltimore and selling it at % discount, than by having a draft on Hartford remitted to him, purchased in Baltimore for this sum at % premium? Ans. $11.73+.

8. The Merchants' Bank of New York having declared a dividend of 61%, a stockholder in Cincinnati drew on the bank for the sum due him, and sold the draft at a premium of 14 %, thus realizing $508.75 from his dividend; how many shares did he own?

9. Sight exchange on New Orleans for $5000 cost $5075; what was the course of exchange? Ans. 1% premium.

CASE II.*

600. To compute foreign exchange.

601. The following standards of the decimal currency of the United States were established by the coinage act of 1873:

602. Money of Account consists of the denominations or divisions of money of any particular country in which accounts are kept.

NOTE.-The Act of March 3, 1873, provides that "the value of foreign coin, as expressed in the money of account of the United States, shall be that of the pure metal of such coin of standard value; and the values of the standard coins in circulation, of the various nations of the world, shall be estimated annually by the Director of the Mint, and be proclaimed on the first day of January by the Secretary of the Treasury."

This "CASE" on foreign exchange has been so modified as to conform to the Act of March, 1873, and only such changes have been made in the Tables and Examples as were necessary to adapt them to that law, and to the usage of 1875.

Weight, Fineness, and Value of Foreign GOLD Coins, as determined by United States Mint Assays.

NOTES.-1. Foreign gold coins, if converted into United States coins, are subject to a charge of one-fifth of one per cent.

2. For silver coins there is no fixed legal valuation, as compared with gold. The value of the silver coins January 1, 1874, was computed at the rate of 120 cents per ounce, 900 fine, payable in subsidiary silver coin, or 113 cents in gold.

STOCK TABLE,

Showing the rate of Interest received on Stocks purchased, from 25 per cent. discount to 25 per cent. premium.

NOTES.-1. The standard value of gold as compared with silver in the United States, is as 15.407 to 1 in the coinage of 1792, as 15.988 to 1 in the coinage of 1837, and as 14.884 to 1 in the coinage of 1853. By the new Coinage Act of 1873, there is no fixed legal valuation of silver as compared with gold. The price paid at the mints varies according to demand and supply.

2. The relative values of gold and silver differ in the coinage of different countries. In England, the ratio is 14.288 to 1; in France, it is 15.5 to 1; in Prussia, 15.5 to 1..

3. In the gold coinage of the United States, a Troy ounce of fine gold is equal to $20.672; and an ounce of standard gold, .900 fine, at the legal rate of 25.8 grains to a dollar, is worth $18.605.

604. Sterling Bills, or Sterling Exchange, are bills on Engand, Ireland, or Scotland. Such bills are negotiated at a rate fixed without reference to the par of exchange.

NOTE.-Formerly such bills were quoted at a certain rate % above the old par value of a pound sterling, which was $4.44. As this was entirely a fictitious value, and always about 9% below the real value, the course of exchange always appeared to be heavily against this country, and thus tended to impair its credit. By the Act of March, 1873, "all contracts made after the first day of January, 1874, based on an assumed par of exchange with Great Britain of fifty-four pence to the dollar, or $4.44; to the sovereign or pound sterling," are declared null and void. The pa, of exchange between Great Britain and the United States is fixed at $4.8665.

605. Exchanges with Europe are effected chiefly through the following prominent financial circles: London, Paris, Antwerp, Amsterdam, Hamburg, Frankfort, Bremen, and Berlin.

NOTE.-1. In exchange on Paris, Antwerp, and Switzerland, the unit is the franc, and the quotation shows the number of francs and centimes to the dollar, Federal Money. In exchange on Amsterdam, the unit is the guilder, quoted at its value in cents; on Hamburg, Frankfort, Bremen, and Berlin, the quotation shows the value of four reichsmarks (marks) in cents.

2. The following shows the manner in which quotations of foreign exchange are made in this country, and as quoted Jan. 2, 1875:

In the above, "Prime Bankers' Bills" are those on the most reliable banking houses; "Good" is applied to those of somewhat inferior credit; and "Prime Commercial" are merchants' drafts, which usually command a less price in the market. The quotations in the first column are those of 60-day bills, and in the second column those of 3 days.

1. What will be the cost in Boston of the following bill of exchange on Liverpool, the course of exchange being 4.871⁄2?

£432.

BOSTON, June 16, 1875. At sight of this First of Exchange (Second and Third of same tenor and date unpaid), pay to the order of J. Simmons, Boston, Four Hundred Thirty-two Pounds, value received, and charge the same to account of