3. The person to whom the money is ordered to be paid is called the payee; and

4. Any person who purchases a bill of exchange is called the buyer or remitter.

274. A bill of exchange is called an inland bill, when the drawer and drawee both reside in the same country; and when they reside in different countries, it is called a foreign bill.

Exchange is said to be at par, when an amount at the place from which it is remitted will pay an equal amount at the place to which it is remitted. Exchange is said to be at a premium, or above par, when the sum to be remitted will pay less at the place to which it is remitted; and at a discount, or below par, when it will pay more.

EXAMPLES.

1. A merchant at Chicago wishes to pay a bill in New York amounting to $3675, and finds that exchange is 14 per cent premium what must he pay for his bill?

2. A merchant in Philadelphia wishes to remit to Charleston $8756.50, and finds exchange to be 1 per cent below par; what must he pay for the bill?

3. A merchant in Mobile wishes to pay in New York $6584, and exchange is 2 per cent premium: how much must he pay for such a bill?

4. A merchant in Boston wishes to pay in New Orleans $4653.75; exchange between Boston and New Orleans is 1 per cent below par: what must he pay for a bill?

5. A merchant in New York has $3690 which he wishes to remit to Cincinnati; the exchange is 14 per cent below par: what will be the amount of his bill?

FOREIGN BILLS.

275. A Foreign Bill of Exchange is one in which the drawer and drawee live in different countries.

NOTE. In all Bills of Exchange on England, the £ sterling is the unit or base, and is still reckoned at its former value of $43 $4.4444+, instead of its present value $4.84.

274. When is a bill of exchange said to be inland? When foreign? When is exchange said to be at par? When at a premium? When at a discount?

Hence, the true par value of Exchange on England is 9 per cent on the nominal base.

1. A merchant in New York wishes to remit to England a bill of Exchange for £125 15s. 6d: how much must he pay for this bill when exchange is at 9 per cent premium? £125 15s. 6d. Add 9 per cent

= £125.775
11.9486+

gives amount in £'s, at $440. £137.7236+ NOTE.-The pounds and decimals of a pound are reduced to dollars by multiplying by 40 and dividing by 9-giving, in this case, $612.105.

RULE.-I. Reduce the amount of the bill to pounds and decimals of a pound, and then add the premium of exchange.

II. Multiply the result by 40 and divide the product by 9: the quotient will be the answer in United States Money.

2. A merchant shipped 100 bales of cotton to Liverpool, each weighing 450 pounds. They were sold at 74d. per pound, and the freight and charges amounted to £187 10s. He sold his bill of exchange at 93 per cent premium: how much should he receive in United States Money?

3. There were shipped from Norfolk, Va., to Liverpool, 85hhd. of tobacco, each weighing 450 pounds. It was sold at Liverpool for 122d. per pound, and the expenses of freight and commissions were £92 1s. 8d. If exchange in New York is at a premium of 94 per cent, what should the owner receive for the bill of exchange, in United States Money?

276. The unit or base of the French Currency is the French franc, of the value of 18 cents 6 mills. The franc is divided into tenths, called decimes, corresponding to our dimes, and into centimes corresponding to cents. Thus, 5.12 is read, 5 francs and 12 centimes.

275. What is a foreign bill of exchange? In bills on England, what is the unit or base? What is the exchange value of the £ sterling How much is the true value above the commercial value of the £ sterling? How do you find the value of a bill in English currency in United states money?

All bills of exchange on France are drawn in francs. Exchange is quoted in New York at so many francs and centimes to the dollar.

1. What will be the value of a bill of exchange for 4536 francs, at 5.25 to the dollar?

ANALYSIS. Since 1 dollar will buy 5.25 francs, the bill will cost as many

OPERATION.

dollars as 5.25 is contained times in the 5.25)4536($864. Ans. amount of the bill: hence,

Divide the amount of the bill by the value of $1 in francs: the quotient is the amount to be paid in dollars.

2. What will be the amount to be paid, United States money, for a bill of exchange on Paris, of 6530 francs,— exchange being 5.14 francs per dollar?

3. What will be the amount to be paid in United States money for a bill of exchange on Paris of 10262 francs, exchange being 5.09 francs per dollar?

4. What will be the value in United States money of a bill for 87595 francs, at 5.16 francs per dollar?

DUTIES.

277. Persons who bring goods or merchandise into the United States, from foreign countries, are required to land them at particular places or Ports, called Ports of Entry, and to pay a certain amount of their value, called a Duty. This duty is imposed by the General Government, and must be the same on the same articles of merchandise, in every part of the United States.

Besides the duties on merchandise, vessels employed in commerce are required, by law, to pay certain sums for the privilege of entering the ports. These sums are large or small, in proportion to the size or tonnage of the vessels. The moneys arising from duties and tonnage, are called

revenues.

276. What is the unit or base of the French currency? What is its value? How is it divided? In what currency are French bills of exchange drawn?

277. What is a port of entry? What is a duty? By whom are duties imposed? What charges are vessels required to pay? What are the moneys arising from duties and tonnage called?

278. The revenues of the country are under the general direction of the Secretary of the Treasury, and to secure their faithful collection, the government has appointed various officers at each port of entry or place where goods may be landed.

279. The office established by the government at any port of entry is called a Custom House, and the officers attached to it are called Custom House Officers.

280. All duties levied by law on goods imported into the United States, are collected at the various custom houses, and are of two kinds, Specific and Ad valorem.

A specific duty is a certain sum on a particular kind of goods named; as so much per square yard on cotton or woollen cloths, so much per ton weight on iron, or so much per gallon on molasses.

An ad valorem duty is such a per cent on the actual cost of the goods in the country from which they are imported. Thus, an ad valorem duty of 15 per cent on English cloth, is a duty of 15 per cent on the cost of cloths imported from England.

281. The laws of Congress provide, that the cargoes of all vessels freighted with foreign goods or merchandise shall be weighed or gauged by the custom house officers at the port to which they are consigned. As duties are only to be paid on the articles, and not on the boxes, casks and bags which con tain them, certain deductions are made from the weights and measures, called Allowances.

Gross Weight is the whole weight of the goods, together with that of the hogshead, barrel, box, bag, &c., which con

tains them.

278. Under whose direction are the revenues of the country?

279. What is a custom house? What are the officers attached to it called?

280. Where are the duties collected? How many kinds are there, and what are they called? What is a specific duty? An ad valorem duty?

281. What do the laws of Congress direct in relation to foreign goods? Why are deductions made from their weight? What are these deductions called? What is gross weight? What is draft? What is the greatest draft allowed? What is tare? What are the different kinds of tare? What allowances are made on liquors?

Draft is an allowance from the gross weight on account of waste, where there is not actual tare.

consequently, 97b. is the greatest draft allowed.

Tare is an allowance made for the weight of the boxes, barrels, or bags containing the commodity, and is of three kinds 1st, Legal tare, or such as is established by law; 2d, Customary tare, or such as is established by the custom among merchants; and 3d, Actual tare, or such as is found by removing the goods and actually weighing the boxes or casks in which they are contained.

On liquors in casks, customary tare is sometimes allowed on the supposition that the cask is not full, or what is called its actual wants; and then an allowance of 5 per cent for leakage.

A tare of 10 per cent is allowed on porter, ale and beer, in bottles, on account of breakage, and 5 per cent on all other liquors in bottles. At the custom house, bottles of the common size are estimated to contain 2 gallons the dozen.

NOTE.-For tables of Tare and Duty, see Ogden on the Tariff of 1842.

EXAMPLES.

1. What will be the duty on 125 cartons of ribbons, each containing 48 pieces, and each piece weighing 3oz. net, and paying a duty of $2.50 per pound?

2. What will be the duty on 225 bags of coffee, each weighing gross 1607., invoiced at 6 cents per pound; 2 per cent being the legal rate of tare, and 20 per cent the duty?

3. What duty must be paid on 275 dozen bottles of claret, estimated to contain 2 gallons per dozen, 5 per cent being allowed for breakage, and the duty being 35 cents per gallon?

4. A merchant imports 175 cases of indigo, each case weighing 196lbs. gross; 15 per cent is the customary rate of tare, and the duty 5 cents per pound: what duty must he pay on the whole?