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In Batavia, the capital of this island, the florin or guilder of the Netherlands is the monetary unit; but instead of the decimal divisions, it is here sometimes divided into schillings, dubbels, stivers, and doits.

5 doits =l stiver,
2 stivers =1 dubbel,
3 dubbels =1 schilling,

4 schilling=l florin or guilder. The florin of Java, as the florin of the Netherlands, is equal to 40 cents Federal money.

109. United States on Batavia. Reduce 11841 florins 3 schillings 2 dubbels to Federal money; exchange at 40 cents per florin.

110. Batavia on the United States. Reduce $13746. 69 to money of Batavia; exchange at 1 guilder for 38 cents..

111. United States on Batavia. Reduce 42328 guilders 50 centimes to Federal money; exchange at 42 cents per guilder.

MANILLA. ( In the island of Luzon). In Manilla, the capital of the Spanish East India possessions, accounts are kept in Spanish dollars or pesos, reals, and maravedis.

34 maravedis=1 real,

8 reals = 1 dollar. 112. United States on Manilla. Reduce 6341 dollars 6 reals 17 maravedis to Federal money; exchange at 101 cents per Spanish dollar.

113. Manilla on United States. Reduce $5274.55 to money of Manilla; exchange at 1 Spanish dollar per dollar.

COLOMBO. ( In the island of Ceylon). In Colombo, accounts are kept in rix dollars, fanams, and pice.

4 pice =l fanam,

12 fanams=1 rix dollar. The current value of this rix dollar is 40 cts. F. money.

114. United States on Colombo. Reduce 7328 rix dollars 9 fanams to Federal money; exchange at 40 cents per rix dollar.

115. Colombo on United States. Reduce $ 1426.71 Federal money to money of Colombo; exchange at 1 rix dollar per 38 cents.

MAURITIUS, (Isle of France.) In Mauritius, accounts are kept in two different ways, viz. in dollars of 100 cents, which is the mode adopted in public or government accounts; and in dollars, livres, and sols, which method is mostly used by merchants.

20 sols =1 livre..

10 livres=1 dollar. These are called colonial livres, and are 10 cents each.

116. United States on Mauritius. Reduce 4132 dollars 7 livres 10. sols to Federal money; exchange at 1 dollar per dollar of Mauritius.

117. Mauritius on United States. Reduce $7547.47, Federal money, to money of Mauritius; exchange at 98 cents per dollar of Mauritius.

ARBITRATION OF EXCHANGE. ARBITRATION OF EXCHANGE is a comparison of the courses of exchange between different countries, in order to ascertain the most advantageous course of drawing or remitting bills. It is distinguished into simple and compound arbitration.

Simple Arbitration is a comparison between the exchanges of two places through a third; that is, it is finding such a rate of exchange between two places, as shall be in proportion to the rates quoted between each of them and a third place. The exchange thus determined is called the arbitrated price.

for £1 sindirectly of London Le Flemish for

If, for example, the course of exchange between London and Paris is 24 francs for 1 pound sterling, and between Paris and Amsterdam 54 pence Flemish for 3 francs, the arbitrated price between London and Amsterdam through Paris, is 36 shillings Flemish for 1 pound sterling; for, as 3 fr. : 24 fr.=54d. : 36 s. Flem.

Suppose the arbitrated price to be, as before stated, 36 s. Flemish for £1 sterling; and suppose the direct course between London and Amsterdam to be 37 s. Flemish; then London, by drawing directly on Amsterdam, must give 37 s. Flemish for £ 1 sterling; whereas, by drawing through Paris, he will give only 36 s. Flemish, for £1 sterling. It is therefore the interest of London to draw indirectly on Amsterdam through Paris.

On the contrary, if London remits directly to Amsterdam, London will receive 37 s. Flemish for £1 sterling; but, by remitting through Paris, London will receive only 36 s. Flemish. It is the interest of London, therefore, to remit directly to Amsterdam.

118. If the exchange of London with Genoa is 47 d. sterling per pezza, and that of Amsterdam with Genoa 86 grotes Flemish per pezza, what is the proportional or arbitrated exchange between London and Amsterdam through Genoa ? that is, how many shillings and grotes Flemish are equal to £1 sterling ?

Since 47 d. sterling is equal to 1 pezza, and this pezza is equal to 86 grotes Flemish, the question may be stated thus; 47 d. sterling : 240d. sterling=86 grotes Flemish: Ans. which is 36 s. 777 grotes Fl. By the Chain Rule, (See Art. XXVI), the statement is as follows.

1 pound sterling.
1 pound sterling=240 pence.
47 pence = 1 pezza.
1 pezza

= 36 grotes Fi.
12 grotes

1 shilling Fl. The product of the consequents being divided by the product of the antecedents, will give 36 sh. 747 grotes Fl. for the answer.

119. If the exchange on London with Hamburgh is 34 shillings 2 grotes Flemish banco for £1 sterling, and

that of Amsterdam with Hamburgh 33} stivers per rix dollar of 2 marks, what is the arbitrated exchange between London and Amsterdam through Hamburgh?

Since 2 marks are 64 grotes Flemish and 33 stivers are 66% grotes Flemish, the question may be stated thus, 64 grotes Fl.: 663 grotes Fl. = 34 s. 2 grotes Fl.: Ans. By the Chain Rule, the statement is as follows,

1 pound sterling.
' 1 pound sterling=34 s. grotes Flem.
8 s. Flem. = 3 marks. /
2 marks

=333 stivers. 6 stivers = 1 s. Flemish. 120. If the exchange of London on Leghorn is 511 d. sterling per pezza, and that of Amsterdam on Leghorn 924 grotes Flemish per pezza, what is the proportional exchange between London and Amsterdam through Leghorn ?

121. If the exchange of London on Lisbon be 68 d. sterling per milree, and that of Amsterdam on Lisbon 48 grotes Flemish per old crusado, what is the arbitrated exchange between London and Amsterdam through Lisbon ?

122. If the exchange of London on Madrid is 42 d. sterling per dollar of plate, and that of Amsterdam on Madrid 96 grotes Flemish per ducat of plate, what is the proportional exchange between London and Amsterdam through Madrid ?

123. If the exchange of London on Paris is 24 francs per £1 sterling, and that of the United States on Paris 18 cents per franc, what is the arbitrated or proportional exchange between London and the United States through Paris?

124. If the exchange of London on Amsterdam is 11 florins 16 stivers per £ sterling, and that of the United States on Amsterdam 38 cents per florin, what is the arbitrated exchange between the United States and London through Amsterdam?

125. If the exchange of the United States on Paris is 18 cents per franc, and that of Amsterdam on Paris 54 grotes Flemish for 3 francs, what is the proportional exchange between the United States and Amsterdam through Paris?

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126. If the exchange of the United States on Lisbon is $1.24 per milree, and that of Paris on Lisbon 540 rees per ecu of 3 francs, what is the proportional exchange between the United States and Paris through Lisbon?

COMPOUND ARBITRATION. Compound arbitration is a comparison between theexchanges of more than three places, to find the arbitrated price between the first place and the last, in order to determine on the most advantageous mode of negotiating bills.

127. Suppose the exchange between London and Amsterdam to be 35 shillings Flemish for £1 sterling; between Amsterdam and Lisbon, 42 pence Flemish per old crusado; and between Lisbon and Paris, 480 rees per ecu of 3 francs; what is the arbitrated price between London and Paris?

First, 35 s. Fl. :42d. Fl. = £1 sterling : A; which is 2 s. sterling.

Secondly, 1 old crusado : 480 rees=2 s. sterling : A; which is 2s. 4 d. sterling.

Thirdly, 2 s. 4d, sterling : £1 sterling =3 francs : A ; which is 25 francs.

Hence the arbitrated price is 25 francs for £1 sterling.

But all such operations are best performed by the Chain Ruie; thus,

1 pound sterling.
1 pound sterling= 35 shillings Flemish.
31 shillings Fl. == 1 old crusado.

1 old crusado =400 rees.
480 rees

= 3 francs. The product of the consequents divided by that of the antecedents gives 25 francs per £ sterling, as before.

128. Suppose a merchant in London has a sum of money to receive in Cadiz, the exchange being at 38 d. sterling per dollar of plate; but, instead of drawing directly on Cadiz, he draws on Amsterdam, ordering his agent there to draw on Paris, and Paris to draw on Cadiz; the exchange between London and Amsterdam being

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