PARTNERSHIP OR COMPANY, THE SAME AS FELLOWSHIP. Company, or fellowship, in an arithmetical sense, is a rule by which merchants in partnership, adjust their accounts, in proportion to stock and time. The gain or loss, with the several sums at hazard, given to find the proportion each partner is to have. Add the several stocks into one sum, multiply the entire gain or loss by each particular share of stock, divide by the aggregate, or sum of said stocks, and the thing is done. EXAMPLES. 1. A and B entered into partnership; A put in 2000 dollars, and B put in 1500 dollars. They, in a certain time, gain 800 dollars, which they agree to draw from stock; how should they divide it? Ans. A's share=4574 B's share=3424} $800. 1 2. A and B enter into partnership; A has in goods at cash price, 3400 dollars worth, and cash 1300 dollars; B puts in 1200 dollars, and agrees to pay for A, a debt of 1100 dollars, for which A gives B a title to that amount of his goods. Now, suppose Α agrees to take B's note for what B's funds want of being equal to his own (say the note bears legal interest, and is not reckoned in the partnership,) what amount should the note be drawn for to make them equal? Amount of A's goods, 3400 this sum, viz. 650 dollars, B should give his note. A's stock in trade would then be 3600-650=2950 And B's equi- goods, 1100 valent compos-cash, 1200 =2950 ed of note, 650) This note pays for so much of A's goods. The above might be readily considered wrong; but a fair statement, according to the true method of accounts, will prove it right beyond dispute. I would be permitted further to remark, that many partners, on the one hand, gain more on a dissolution of trade than their due, and on the other, lose heavily, without knowing how. CASE 3. In apportioning the effects of bankrupts amongst their creditors, it is more convenient to find the proportion for one dollar, &c.; which will be a constant multiplier for each debt. EXAMPLES. 1. A merchant being in trade, delivers up to his creditors, in cash, 1000 dollars, goods, 1500 dollars, book debts, 3000 dollars, notes and bonds, 700 dollars; he owes to John Jenks 1000 dollars, to David Owen, 1100 dollars, to Caleb Strong, 3700 dollars, and to Henry Jones, 2700 dollars. The merchant has in Cash, $1000 Goods, 1500 Book debts, 3000 Notes & bonds, 700 Whole effects, 6200 Owes, Strong, 3700 Jones, 2700 Whole debt, 8500 62 of a dollar. Then per case 1. 8500: 6200 :: 1: 83 6 2 1000 x Jenks' share= And 1100x 62 = =Owen's Jones' 2. A owes to B 750 dollars, to C 1100, to D 1350, to E 1975, and to F 1650; and has in goods, cash, and other effects, only to the value of 2000 dollars; what sum should each creditor receive? 200. By working as above, the value of a dollar in each debt will be found 209; which multiplied into each will give the respective answers. CASE 3. When stocks have been put in trade for different lengths of time, and settled with regard both to stock and time, we must multiply each man's stock and time, and divide by said divisor, and the thing is done.* * When the times are equal, the shares of gain or loss are evidently in proportion to the respective stocks; and when the stocks are equal, the shares are in proportion to the times; but when stocks and times are both unequal, EXAMPLES. put in 1. Two merchants made a company; A 200 dollars for 5 months, and B 150 dollars for 6 months, and they gain 70 dollars; what share of the profit belongs to each? 200 x 5=1000. 150 X 6=900. And 1000+900: 1000 :: 70: 361 A's share. 1000+900 900 :: 70: 33 B's share. 2. Three merchants join trade; A puts in 500 dollars for 3 months, B 600 for 4 months, and C 700 for 5 months; what share of 200 dollars gain should each have? the shares are in proportion to the products of stock and ime. This may be demonstrated simply as follows, viz. Suppose 100 dollars in trade 12 months, gain 20 dollars, 50 dollars in 6 months, at the same rate, will gain 5 dollars; and both together 25 dollars. For, 100×12: 50×6 :: 20 5 Again, by composition, and 20+5=25. 100×12+50×6: 100×12:: 25: 20 gain of $100 in 12m. And 100×12+50×6: 50×6:: 25: 5 gain of $50 in 6m. From which, the reason of the rule, and its correctness of principle, is evident. EXCHANGE. Exchange, in an arithmetical sense, is the method of reducing the money, weights and measures of one country into that of another; but particularly in fixing the momentary and actual value of money. Gold and silver, as metals, have their intrinsic value; but, as they are capable of becoming the sign or medium by which merchandize may be estimated, they may receive an additional value. Certain specific values may be given to the coins or other monies of a nation, by authority of its own government, to fix their currency amongst the subjects of that nation; but with other nations, the value of money is fixed by the current course of commerce, and the general opinion of merchants, according to the accidental circumstances of trade, money transactions between nations and the state of their public credit. The mutability of the course of exchange is not real, but relative; for instance, when Philadelphia has greater occasion for funds in Savanna, than Savanna has in Philadelphia, though the price of the specie of both places bear a fixed proportional value to each other, yet when there is not a credit in Savanna equal to the debit, the price of bills, (not of money,) will rise of course at Philadelphia. If the balance of trade be reciprocal between foreign countries, or between different sections of the same country, there will be enough of bills in the one to settle accounts with the other; in which case exchange will be at par. But if a nation, or one section of country, supplies another with more than it purchases, there will be a ba lance against that other; to discharge which, the money or bills of exchange on that nation, or section of country, naturally rises above par, and puts those against whom the balance of trade stands, below par; which constitutes the course of exchange. The course of exchange between two nations, publicly proclaims the state of commerce between them, and shews which of them is indebted to the other. The nation that is in debt, as well as an individual, suffersa disadvantage both in commerce and money negociations. |