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Exchange is said to be at par between two countries or places, when the money given in the one is intrinsically equal in value to that received for it in the other. The course of exchange is frequently above or below par.

Agio is a term used to signify the difference in some countries, between bank and current money.

When remittances are made in cash, exchanges may be readily computed by the intrinsic or legal value of the coins remitted. But as they are generally, made, between distant places, by bills of exchange, and they seldom pass according to the intrinsic values of the sums for which they are drawn, the rate of exchange must be taken into the account.

EXCHANGE WITH GREAT BRITAIN. In Great Britain they keep their accounts in pounds, shillings, and pence, sterling, and exchange by the £1, which is equal to $4.444, par.

Note.-By an act of Congress, passed November, 1792, the
pound sterling was valued at $4.44, in calculating duties, ad valo-
rem, on invoices given in at the Custom-houses.
To reduce federal money to sterling, (or English.)

RULE 1.
Multiply by 9,* and divide by 40.*

RULE 2.
Multiply by 54, and divide by 12 and by 20.

RULE 3.
As $1 : is to the sum given :: so is 4s. 6d., or 4.5s, or
54d. : to the answer in sterling money.

RULE 4. To bring federal money to foreign, divide the given sum by the same federal value.

EXAMPLES.

1. Reduce $371.75 to sterling. Ans. £83 12s. 10{d.

2. A of Philadelphia owes B of London $756—what sum sterling will discharge the debt?

Ans. £170 2s.

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EXCHANGE.

138
3. Reduce $888.88 to sterling money.

Ans. £199 19s. 11d. 2.08qr. 4. Reduce $4536 to English money. To reduce English or sterling money to federal money.

RULE 1. Reduce the shillings, pence, and farthings, (if any) to a decimal of a pound, which annex to the pounds.

Multiply by 40, and divide the product by 9, and the quotient will be dollars, or dollars, cents, and mills.

RULE 2.
Reduce the given sum to pence, and divide by 54.

RULE 3. As 4s. 6d. : is to the sum given :: so is $1 : to the answer in federal money.

EXAMPLES.

1. Reduce £83 12s. 10}d. English, to federal money.

Ans. $371.75. 2. Reduce £170 2s. sterling, to federal money.

Ans. $756. 3. Reduce £1020 12s. English, to federal money.

Ans. $4536. 4. Reduce £25 sterling, to money of the United States.

Ans. $ppp.pp. BILLS OF EXCHANGE. To find the value of a bill of exchange above par

RULE.

Multiply-the sum of the bill by the amount of one dollar, at the given rate per cent.

EXAMPLE.

What is the amount or value of a bill of exchange, for $750, at 4 per cent. above par? 750 x 1.04-$780 ans.

To find the value of a bill of exchange below par.

RULE.–Subtract from the given sum one year's interest at the given rate per cent.; and the remainder will be the value required.

EXAMPLES.

1. What is the value of a bill of exchange for 780 dol. lars, at 4 per cent. below par? 780.X.04=$31.20c.

then 780-31.20=$748.80.

2. A, in Philadelphia, owes B, in London, £1000 sterling, to discharge which, he purchases a bill at 4 per cent. below par-how many dollars must he give for it, and how much will he save by the bill?

Ans. $4266.66% paid, and $177.771. saved. A merchant may turn both rise and fall of exchange to his advantage, by buying and remitting when it is low; and establishing a fund by which he may draw to advantage when exchange is high.

EXAMPLE.

Mr. Girard, in Philadelphia, remits a bill of $5000 to London, which he purchased at 21 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. $250.

1

EXCHANGE WITH FRANCE. According to the old system, accounts in France were kept in Livres, Sols, Deniers, tournois, (a word applied to this money, as sterling is to the English) and they exchanged by the livre, ecu, or crown tournois.

Denominations. 12 deniers

=1 sol, 20 sols

1 livre,= $.185 6 livres =(1 ecu or) 1 crown. The United States exchange with France, at 18.5 cents per

livre tournois. The present money accounts in France are kept in francs and centimes, or hundredth parts: a livre tournois is in proportion to the franc as 80 is to 81 : a franc is 14 per cent. more than a livre tournois; thus,

100 : 101.25 :: .18,5=.1873125 value of a franc, or, 18,5 x 81 : 80=.1873125. The denominations of the new system are, 10 centimes

=1 decime, 10 decimes

1 franc=$ .1873125

EXCHANGE.

140

Note.--100 centimes equal 1 franc; the same ratio as cents are to dollars. The copper coins are

The silver coins are 1 centime, weight 1 gramme* 1 franc, weight 5 grammes, 5 centimes, do. 5 do. 5 francs, do. 25 do. 1 decime, do. 10 do. Gold is coined into pieces of 2 decimes do. 20 do. 10 grammes.

The 5 franc piece weighs 25 grammes or 386.1 grains troy, nine parts of which in 10 are pure silver, consequently equals $ .9365625.

EXAMPLES. 1. A merchant in Bourdeaux, is indebted to a merchant in Philadelphia, for the nett proceeds of a consignment amounting to 50000 livres, tournois—how much federal money must be drawn for, exchange at par? Ans. $9250.

2. A merchant in Bourdeaux is indebted to a merchant of Baltimore, 9275 francs 25 centimes—what is the amount in federal money?

Ans. $1737.37+ 3. A, in Philadelphia, draws on B, of Paris, for 4444 francs 44 centimes, the course of exchange being 18cts. per franc—what is the amount in federal money? Ans. $800.

4. If A, in New-York, buys a draft on B, in Brest, of 4444 francs 44 centimes, for 800 dollars, what is the course of exchange?

Ans. 18

per

franc.

EXCHANGE WITH SPAIN. The money of Spain is of two sorts, viz. the one called vellon, the other plate money.

The vellon is to the plate money, as 34 is to 64.

Dealers and commissioners of excise, keep their accounts in rials and marvadies vellon.

Denominations of the vellon money. 4 marvadies vellon

=1 quarto, 84 quartos, or 34 marvadies vel. 1 real, vellon, 15 reals vellon, or 510 do.

1 peso, or current dol. 20 do. or 680 do.

1 silver, or hard dollar, 16 quartos or 64 do.

1 real plate. Some bankers, remitters, and merchants, keep their ac. counts in old plate, or money of exchange.

* The gramme equals 15.444 grains troy.

Denominations of plate money. 34 marvadies of plate =1 real plate,

$ 10c. 8 reals of plate

1 piaster of exchange, 80c. 10 reals of plate

1 dollar,

1 11 do. do.

1 ducat of exchange, 1.10c. 32 do, do.

1 doubloon of do. 3.20c.

To reduce reals vellon to reals plate.

RULE.

Multiply the reals vellon by 8(or 8.5, the quarto in a real vellon) adding 1 for every 4 marvadies, and divide by 16; the quotient will be the reals plate.

EXAMPLES.

1. Reduce 800 reals vellon to reals plate.

Ans. 425 reals plate. 2. Reduce 5740 reals 24 marvadies vellon, to reals of exchange or plate.

Ans. 30494 reals plate. To reduce reals plate to reals vellon.

RULE.

Multiply the reals plate hy 16, (the quartos in a real plate) add 1 for every two marvadies, and divide (this product) by 8.5, the quotient will be the reals vellon.

EXAMPLES

1. Reduco 6450 rcals 20 marvadies plate, to reals vellon.

Ans. 12142 reals vellon 3 quartos or 12 marv. 2. In 425 reals plate how many reals vellon?

Ans. 800 reals vellon. To reduce Spanish money to federal money.

RULE. Reduce the odd reals and marvadies to the decimal of a piaster, (and annex it to the piasters) which sum multiply by .8, the product will be dollars, and the decimal of a dollar. Or, find the value of each denomination separately, by its federal value. Or, multiply the real plate by 10, and the real vellon by 5, for cents.

EXAMPLES.

1. A, in Valentia, is indebted to B, in Philadelphia, 875 piasters 6 reals 25} marvadies plate-what number of dollars is A charged in B's books ?

Ans. $700.675.

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