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The Theory of Exchange is the same in all places, and after a knowledge of the different divisions and denominations of the money exchanged, may he comprised in the following
Gener AL Rule.—As one of the given sum of one country, is to another given sum of the same, so is the sum of money of the other country equivalent to the first term, to the sum of money of that country, equivalent to the second term,
EXCHANGE BETWEEN ENGLAND AND IRELAND,
In Great Britain, as well as in Ireland, accounts are kept in pounds, shillings and pence, but the pound English is equivalent to 11 1s. 8d. in Ireland, the British shilling is therefore l2d. in England and 13d. in 1reland, and 100l English at Par equal to 1081 6s. 8d. or 108}l Irish. Hence, the Par of Exchange is 8+ per cent. Ireland exchanges with Great Britain, at so much per cent or per 100l, which varies at different times, according to circumstances, from 5 to 20 per cent. In this case England gives the certain, and Ireland the uncertain price. * Case 1st.—To bring English money into Irish, at Par. To the English money add or thereof, the sum is Irish,
Answer as before, 28611 2. In 240l 14s. British; how much Irish at par 2 3. Reduce 1491 15s. 0d. British, to Irish at par P 4. Reduce 417l 12s. 6d. British, to Irish at par 7 Case 2d.--To reduce Irish money into English at Par? From the Irish money subtract or therebf, the remainder is. English.
Operations in Exchange may be proved by reversing them, and in many cases this can also be done by varying the method of calculation:
6, What is the value of 742l Irish currency, in British sterling exchange at par 7 7. What is the amount in British currency of 3271 läs. 0d. Irish at par?
8. What is the amount in British currency of 417. 12s. 6d. Irish at parf
Case 3d.--To reduce English money into Irish at any rate per cent. -
As 100 is to the given sum English, so is the given rate to the exchange, which added to the given English, will give the Irish money required.*
Or, as 100 is to the given sum English, so is 1001 with the given rate added thereto, to the Irish money required.
Or, may be often expeditiously performed by means of aliquot parts.
9. What will 864l British currency, amount to in Ireland, at 7% per cent 2.
"This is the rule made use of by merchants, but they practice it in such a manner, as couceals the application of the Rule of Proportion.
10. What will 217 15s. 6d, British currency, amount to id Irish, at 10% per cent. *
- 26240 12 93 . £240 12 93 , 11. What will 1093. 13s. 3d. British currency, amount to in Irish, at 12 per cent, 12. What will 2105? 17s.6d, British currency, amount to in Irish currency, at 10% per cent. * * 13. What will 520 12s. 6d. British currency, amount to in Irish, at 151 per cent.? . 14. What will 193l 12s. 6d, British currency, amount to in Irish, at 84 per cent. 2 . 15. What will 675l 18s. 0d. British currency, amount to in Irish, at 93 per cent. 2 16. If I have 34ll 13s. 4d. due to me in England, how much money am I to receive for a bill for this sum, exchange being 94 per cent.”
Case 4th.--To reduce Irish money into English, at any raté of exchange.
As 1001 with the given rate added thereto, is to the given sum Irish, so is 100l to the English required.
Or, as 1001 with the given rate added thereto, is to the given sum Irish, so is the rate, to the exchange ; which subtracted from the given Irish money, gives the English required.
Whenever, as in this example, the first and third numbers after being reduced, differ by 1 only, the English money is expeditiously found, by dividing the given Irish money by the first number, and subtracting the quotient therefrom.. The following rates come under this observation, viz.-41°r, 5, 53, 6+, 63,73, 7 or, 84, 9;r, 10, 11+, 12}, 14, 163 and 20 per cent. P - 19. What will 1611 10s Irish, amount to in British currency, at 7 per cent. P *** * 20. What will 1093! 13s. 3d. Irish, amount to in British currency, at 73 per cent? - 21. A gentleman in Ireland has an estate, the neat yearly rent of which, is 2500l; being in England, he requires his ăgent to remit him his half year's rent; for how much English money must his agent buy a bill, exchange being 103 per ct:
EXCHANGE WITH AMSTERDAM. In Amsterdam they keep their accounts in florins, or guilders, stivers and pennings; also in pounds, shillings and grotes or pence Flemish. - - - Their smallest piece of money is a Penning, value od.
8 Pennings. . . . . . . . . . . = One Grote or Penny,
There are two kinds of money in Amsterdam called banco, or bank money, and currency. In the former of these, all their bills are valued and paid. It is of purer metal than the eurrency, and hence, bears a premium of 3 or 4, sometimes 5 per cent, that is, 100l bank money is valued at 1031, 1041, **, of currency. The premium is called Agio,
* The par of exchange is 36s 7d. but the course of exchange is from 33s. to 37s.6d. Flemish, per pound sterling.
Here London gives the certain, and Amsterdam the uncertain price. . .
When Holland draws direct on Ireland, the exchange is at 10 guilders or 33s. 4d. Flemish, per pound Irish.
To reduce bank money into currency and the contrary.
As 100 is to 100 with the agio added thereto, so is any sum bank money to its value, in current money.
As 100 with the agio added thereto, is to 100, so is any sum current money, to its value in bank money.
21. How much currency is equivalent to 468 florins, 15 stivers banco, agio 34 per cent. *
This may be also performed similar to exchange between England and Ireland, that is, multiply by the given rate or agio, and divide by 100, the result added to the given bank money, gives the currency required.