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practised, that there should be a regular protest by a public notary. But a notice simply of non-payment is sufficient to entitle the holder to claim interest.
484. The damages incurred by non-acceptance and non-payment of a foreign bill, besides interest commencing from the day of demand, consist usually of the exchange or re-exchange, commission, and postage, together with the expenses
of protest and interest. The damages of protested bills in general, however, are regulated in a great measure by the local laws and usages
of the different States and countries.
LIABILITIES OF THE PARTIES.
485. The drawer, acceptor, and each and every indorser of a bill, are liable to the payment of it; and though the holder can have but one satisfaction, yet, till such satisfaction is actually had, he may sue any of them, or all of them, either at the same time or in succession, and obtain judgment against them all, till satisfaction be made.
486. Nothing will discharge an indorser from his engagement, but the absolute payment of the money; not even a judgment recovered against the drawer, or any previous indorser, or any execution against any of them, unless the money be paid in consequence.
Note. When acceptance is refused, and the bill is returned by protest, an action may be commenced immediately against the drawer, though the regular time of payment be not arrived. His debt, in such a case, is considered as contracted the moment the bill is drawn.
In order, however, to make the indorsers liable, it is proper that the holder should present the bill for payment on the day it becomes due.
PAR OF EXCHANGE.
487. The intrinsic par of exchange is the value the coins of one country have, when compared with those of another, with respect both to weight and fineness.
488. The commercial par of exchange is the value the coins of one country sell for in the markets of another; and is therefore not a fixed, but a variable value.
COURSE OF EXCHANGE.
489. The course of exchange is the variable price of the money of one country, which is paid for a fixed sum of money of another country.
490. The fluctuations of exchange are occasioned by various circumstances, both political and commercial, but in general bills rise or fall in their prices, like any other salable articles, according to the relation existing for the time being between the demand and the supply.
491. The limits within which the fluctuations of exchange range, correspond with the cost of making remittances in cash. Therefore, in the time of peace, exchange seldom remains long unfavorable to any country. When unfavorable, it has a tendency to correct itself, by giving an unusual stimulus to exportation, and by throwing obstacles in the way of importation ; and when favorable, it produces the same effect, by restricting exportation and facilitating importation.
492. An INLAND Bill of exchange, or draft, is one of which the drawer and drawee are residents of different parts of the same country.
Inland bills are seldom bought or sold at the precise sum specified upon their face, but, according to the course of exchange, are subject to a discount, or command a premium.
493. To compute inland exchange.
Ex. 1. What is the value of the following bill of exchange or draft, at $ per cent. premium?
Ans. $ 2563.20. $ 2560.
New York, April 14, 1857. At sight, pay to Dura Wadsworth, or order, two thousand five hundred and sixty dollars, value received, and charge the same to the account of
CAMERON, BASHFORD, & Co. To Messrs. LAWRENCE & ASPINWALL, Merchants, Boston.
$ 25 60 X 1.00 $
RULE. - Multiply the face of the bill or draft by 1 increased by the rate per cent. of premium, or by 1 decreased by the rate per cent. of discount, expressed decimally. The product will be the value of the given bill or draft.
Note. When there is interest to be computed, it must be reckoned on the face of the bill or draft. When other than the value or cost of the bill or draft is to be found, proceed as in percentage.
2. What is the value of the following bill, or draft, at 1 of 1 per cent. premium?
Ans. $ 1955.37. $ 1950 10
Chicago, August 3, 1857. Thirty days after date, please pay to the order of Robert S. Davis & Co., one thousand nine hundred fifty 15 dollars, value received, and charge the same to our account.
KEENE & LEE. T. GEORGE REED, Broker, Boston.
3. What is the cost of a draft on Philadelphia, at į per cent. premium, the face being $ 2000?
Ans. $ 2010. 4. What must be the face of a draft, at 2 per cent. discount, to cost $ 1744.40 ?
5. What is the cost of a 60 days' bill on Pittsburg to the amount of $ 600, at 1 per cent. discount, and interest off at 6
Ans. $ 587.70. 6. What is the cost of a 30 days' bill on Boston, at per cent. premium, and interest off at 6 per cent., the face of the bill being $ 9256.40 ?
Ans. $ 9240.20. 7. What must be the face of a 30 days' bill which will yield $ 9240.20 when sold at š per cent. premium, and interest off at 6 per cent. ?
8. A 15 days' draft yielded $ 1190.184 when sold at 1} per cent. discount, and interest off at 6 per cent. What was the face of the draft?
Ans. $ 1212.
per cent. ?
494. A FOREIGN Bill of exchange is one of which the drawer and drawee are residents of different countries.
Foreign bills are usually drawn in sets; that is, at the same time there are drawn two or more bills of the same tenor and date, each containing a condition that it shall continue payable only while the others remain unpaid. Each bill of a set is remitted in a different manner, and when one of the set has been accepted and paid, the others become worthless.
In reckoning the value of foreign bills of exchange, an acquaintance with the moneys of account of foreign countries is required.
496. The moneys of account of the principal places of commercial importance, with the par value of the unit, expressed in United States money, are shown in the following
Cities and Countries.
Denominations of Money.
London, Liverpool, &c., 12 pence = 1 shilling; 20s. = 1 pound $ 4.84 Paris, Havre, &c., 100 centimes = 1 franc
0.186 Amsterdam, Hague, &c., 100 cents = 1 guilder or florin =
5 swares = 1 grote; 72gr. = 1 rix dollar 0.789 Hamburg, Lubec, &c., 12 pfennings = 1 schilling; 16s. = 1 mark banco
0.35 Berlin, Dantzic, 12 pfennings = 1 groschen; 30gr.=1 thaler= 0.69 Belgium, 100 centimes 1 franc
0.186 St. Petersburg, 100 kopecks 1 ruble =
12 rundstycks 16 skillings; 485. 1 rix
16 skillings 1 mark; 6m. = 1 rix dollar: 1.05 Vienna, Trieste, &c., 60 kreutzers = 1 florin
10 grani 1 carlino; 10car. = 1 ducat 0.80 Venice, Milan, &c., 100 centesimi 1 lira =
0.16 Florence, Leghorn, &c., 100 centesimi 1 lira
0.16 Genoa, Turin, &c., 100 centesimi = 1 lira
20 grani = 1 taro; 30 tari = 1 ounce = 2.40 Portugal, 1000 reas = 1 millrea
1.12 34 maravedis = 1 real vellon =
0.05 Spain, 68 maravedis = 1 real plate
1 piaster =
0.05 British India, 12 pice = 1 anna; 16 annas =
100 candarines 1 mace; 10m. = i tael 1.48
NOTE 1. Grani is the plural of grano, carlini of carlino, centesini of centesimo, lire of lira, tari of taro.
NOTE 2. The moneys of account in Brazil are of the same denominations as in Portugal; in Mexico, Central America, New Granada, Chili, Venezuela, Bolivia, Peru, and Buenos Ayres, accounts are kept in pesos, or dollars, of 8 reals each; in Cuba accounts are kept in dollars equal 8 reals plate, or 20 reals vellon, equal $ 1; in British American Possessions accounts are kept in the denominations of sterling money, but of a depreciated value compared with the currency of the same denominations in England, except in Canada, where, by an act of the Colonial Parliament, passed in 1857, the decimal currency of the United States has been adopted.
497. The exchange value, in United States money, of the pound sterling of Great Britain is that of its former legal value, or $44 = $ 4.444, which is considerably below either its intrinsic or commercial value. The commercial value is generally about 9 per cent. more than this exchange, or nominal par value.
Thus, nominal par value being $ 4.444
.40 The commercial par value will be $ 4.845. Therefore, when the nominal exchange between the United States and Great Britain exceeds 9 per cent. premium, it is above true par; when less, it is below true par.
498. The quotations of the rates of exchange of the United States on England have always reference to the old par value of the pound sterling in United States money. The course of exchange of the United States on France is so many francs and centimes payable in France for a dollar paid here; on Holland it is so many cents a guilder (of Netherlands); on Hamburg, so many cents a mark banco; on Bremen, so many cents a rix dollar; and so on.
Note 1.- - The course of exchange of London on France is so many francs and centimes payable Fra for 1.£.; on Amsterdam, it is so many florins for 1.£.; on Hamburg, so many schillings for 1£.; on Vienna and Trieste, so many florins and creutzers; on Spain, so many pence paid in England for 1 dollar of plate ( 8ą reals plate) payable in Spain ; on Lisbon, so many pence for 1 millrea; on Naples, so many pence for 1 ducat; and so on.
Note 2. The value of 1.£. sterling from 7 to 10Ả premium on the old par value of $ 4.44%, is shown in the following
TABLE. 7 per cent. premium, $ 4.756 9 per cent. premium, $ 4.844 4.767 91
4.878 4.80 10
4.889 4.811 101
4.90 4.822 101
4.922 Note 3. - In this country the quotations of foreign exchanges are usually for bills payable 60 days after sight, and of inland or domestic exchanges, for bills payable at sight.