A TABLE of other coins, &c. with their value in Feder al money, as established some time ago, by act of con TABLE OF EXCHANGE, For buying and selling bills of exchange above and below par.* * It is the custom with some, to deduct from the amount of the bill, common interest, when below par; but a plain simple example will shew the impropriety of such The foregoing table is very convenient, for the amount of £1 or $1, at any rate per cent, from 4 to 114 is at once had by inspection; therefore the amount of any bill above par is had, by multiplying the sum expressed in it, by the amount in the table, opposite to the rate per cent. If below par, divide by the tabular amount, opposite the rate per cent, and the results will be the values required. EXAMPLES. 1. What is the amount of a bill of exchange, for $750, at 4 per cent above par? 750 X 1.04=780 Ans. 2. What is the amount of a bill of exchange, for $780, at 4 per cent below par? 3. What is the value of a bill of exchange, for $1175, at 9 per cent, above par? Ans. 1289.561. 4. What is the value of a bill of exchange, for $900, at 7 per cent below par? Ans. 841.12+ a practice. Suppose a bill of exchange is 5 per cent below par (its amount being $1000,) 1000x.05-50, and 1000-50-950=the value, by this way of reckoning but 950x.05+950=997.50 lacks $2.50 of 1000, (which it ought to bring,) for 1000 1.05 = 952.38, the true worth, and 952.38×1.05=999.99+ or 1000, which rule gives reciprocal advantage to both buyer and seller. T TABLE 2. Shewing the decimal value of the parts of a £. either currency or sterling, from of a penny to 19 shillings. Required, the decimal value of £0 17 43, from the above table. Opposite to 17s. stands .85 to 4d. stands .01666 to d. stands .00208 Their sum, .86874 Ans. NOTE. When the parts of a £ are reduced by the tables to an equivalent decimal, and annexed to the whole pounds, the sum becomes handier to work with. EXAMPLES, Shewing the use of the two preceding tables. 2. A, in Philadelphia, owes B, in Liverpool, £349 19 34 sterling; to pay which, he buys a bill at 2 per cent be low par; what must he pay in Federal, or United States money? First, put down ₤349.95 For 3d. For id. .0125 .00208 Their sum will be £349.96458 Now this multiplied by 40* 9)13998.5832 40 and divided by 9, gives the true value Federal. $1555.39813 Ans. 1555.40 nearly. 3. What is the value of a bill amounting to $1300, at 21 per cent below par? Amount of bill 1500. and their quotient Number in table 1. opposite 2-1.025 how many. =1268.59+ Ans. For 1268.39×1.025—1299.999 or 1300. Proof. 4. A, in Philadelphia, owes B, in London £1000 sterhing, to pay which, he buys a bill at 4 per cent below par; dollars will he have to pay for the same? Ans. $4273.50. 5. A factor, in Philadelphia, owes a merchant in Liverpool, £1500 sterling; to pay which, he buys a bill, at 4 per cent above par; how many dollars did the bill cost him? Ans. $6935. Let these examples be proved by reducing their prices to sterling money. A merchant may turn both rise and fall of exchange to his advantage, by buying and remitting when it is low; establishing a fund for which, he may draw to advantage when exchange is high. EXAMPLE. A merchant, in Philadelphia, remits a bill of $5000 to London, which he purchased at 23 per cent below par; but on the rise of exchange, he drew for the same at 24 per cent above par. What did he gain? Ans. $539.652 *£1 sterling is equal to 33s. 4d.=400 pence, and one dollar is equal to 90; therefore, 40040, the ratio that the pence in the sterling £, bears to the pence in a S Great Britain exchanges with the following places, viz. Switzerland, Nuremburg, Leipsic, Dresden, Osnaburg, Brunswick, Cologn, Liege, Strasburg, Cracow, Denmark, Norway, Riga, Revel, and Narva, on the rix dollar; the par being 4s. 6d., or 54d. sterling. With Ireland, at 84 per cent advance. France, for the ecu of exchange at 29.365d. sterling. Flanders, for 36 schil 7 groot at £1. Brabant, Hamburg, for 35 sch 63 groot at £1. Antwerp, S More or less, according to the course of exchange. Spain, for the piaster of exchange or 8 rials at 43d. do. Florence, on the crown The par between England and Ireland is 8 per cent; but the course of exchange is from 5 to 12 per cent. Bills on Ireland are usually drawn for sterling money, (accounts between England and Ireland being kept in the same denominations.) |