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10. Find the face of a 3-day (sight) bill on Hamburg, bought in New York for $100,000, exchange being 96%.

$100,000 96% 103,761.35

103,761.35 X 4 marks = 415,045.4 marks.

Explanation. Since 4 marks can be bought for $.96 3/8, as many times 4 marks can be bought for $100,000 as $.963/ is contained times in $100,000 = 103,761.35 415,045.4 marks Ans.

At the same rates, find the face of a 60-day draft, bought in New York, on

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Applications.-1. A merchant wishes to send $2200 to his correspondent in Paris. Find the face of a sight draft, exchange being 5.152.

2. Find the cost of a bill of exchange on Berlin for 2500 marks, the rate being .96. (The quotation is for 4 marks.)

3. Find the face of a sight draft on London, purchased in Boston for $5222.75, exchange at 4.872.

4. A merchant purchased a sight draft on London for £625 10. 6. Exchange being 4.90, what did he pay for it?

5. Find the value of a 60-day draft on Paris for 5000 francs, exchange being 5.14.

6. I paid $2575 for a draft on Hamburg. How many marks did the draft call for, exchange being .951⁄2?

7. If I paid $580.80 for a draft of £120 on London, what was the rate of exchange?

8. A hardware merchant in Louisville purchased cutlery in Sheffield, England, the bill for which was £785 15. What was the cost of the draft sent in payment, exchange being 4.82?

9. How much must be paid for a bill of exchange on Amsterdam for 15,640 guilders at 3 days' sight, exchange being 40% and

brokerage %% ?

Duties or Customs.

458. Duties or customs are taxes upon imported goods.

Notes.-1. Places designated by government for the collection of duties are called Ports of Entry. Each port of entry has a Custom House, which is in charge of the Collector of Customs for that district.

2. A tax called tonnage is levied upon vessels according to the number of tons they are estimated to carry. The collection of this tax belongs to the customs officers.

459. A duty fixed at a certain per cent. on the cost of an imported article is called an ad valorem duty (i. e., duty based on value or cost).

The cost on which an ad valorem duty is calculated is the net cost of the merchandise in the country from which it is imported, as ascertained from an invoice, which is required to be exhibited by the importer when he applies for a permit to land his goods. This invoice or manifest must be accompanied by a consular certificate that the prices of the goods given in the manifest are the prices that prevail in the market where they were purchased. This precaution is taken to prevent undervaluation, whereby the revenues are sometimes defrauded.

460. A duty assessed on each article, or on each pound, yard, etc., of imported goods, is called a specific duty.

On some goods, both specific and ad valorem duties are required to be paid. Thus, a specific duty of 35¢ per lb., and an ad valorem duty of 40 per cent., are both assessed on all imported woolen knit-goods.

In assessing specific duties, the collector must make allowance "for the difference between the invoiced and ascertained quantity," duties being exacted on the quantity of merchandise which arrives in the United States, not on the quantity shipped at the foreign port."-(General Regulations under the Customs and Navigation Laws, Art. 604.)

SLATE EXERCISES.

1. Find the duty on 5000 lb. raisins at 24 per lb.

2. Find the duty paid on 5300 boxes of oranges, invoiced at 15.s. per box, at 20% ad valorem.

3. What is the duty on 1000 yards of carpet, invoiced at 4s. per yard, at 304 per yard and 30% ad valorem.

4. At 5¢ per yard and 35% ad valorem, what is the duty on 500 yards of dress-goods invoiced at 204 per yard?

5. At $2 per ton, what is the duty on 7565 lb. of hay?

6. Find the duty paid on a shipment of knit-goods weighing 623 lb., and valued at $2340, at 35¢ per lb. and 40% ad valorem.

7. Find the duties paid on the following importation: 500 boxes of oranges at $4 per box, at 20% ad valorem ; 700 lb. raisins at 24 per lb.; 1000 lb. figs at 24 per lb.; 750 boxes lemons at 30¢ per box; and $250 worth of preserved fruit at 35% ad valorem.

8. What was the duty paid on 12 pianos, valued at $200 each, at 25% ad valorem ?

9. The duty on steel bars being 45% ad valorem, what was the duty paid on 8500 lb., invoiced at 44 per lb.?

10. A lady, on returning from Europe, brings with her laces and insertings for which she had paid 350 marks; gloves, for which she had paid 60 francs; a picture, for which she had paid 1200 francs; and three unused ready-made dresses, which cost her 780, 930, and 800 francs. How much duty did she have to pay, the duty on laces and insertings being 30%, gloves 50%, pictures 30%, and ready-made clothing 50%? (See Table, page 415.)

Bonds.

461. A bond is a written instrument given to secure the discharge of an obligation.

Bonds issued by a government or corporation to secure the payment of money correspond to promissory notes issued by individuals. They are made payable at a certain time, and bear a specified rate of interest. The interest on bonds is commonly made payable annually, semi-annually, or quarterly.

Note.—An individual who wishes to borrow money for his own use, can do so from any one who will lend it to him. If he pays more interest than he needs to, But one who borrows for others must borrow at the lowest possible rates of interest, or else there is good ground for complaint.

it is his own loss.

Hence, when the United States Government, a State, county, city, or incorporsold to the highest bidders; that is, those who desire to loan the money, and will ated company, finds it necessary to borrow money, bonds are prepared, and these are pay the highest premium for the privilege of doing it. This effects the same result as if the bonds were offered to those who would lend the money at the lowest rates

of interest.

462. Registered bonds are recorded, with the names of their owners, and can not be transferred from one party to another without a change of the record.

463. Coupon bonds are bonds to which certificates are attached calling for the payment of certain interest at specified times.

These certificates called coupons are cut off and presented for payment when they become due. No record is made of the holders of coupon bonds, hence they may be transferred from one person to another by delivery as bank-notes.

464. Bonds issued by the United States Government (sometimes called Government securities), and State bonds (called State securities), are distinguished by their rates of interest, dates at which they are made payable, etc.

Thus, in the daily papers of May 20, 1886, we find mentioned "U. S. 41/2'8, '91, reg.," that is, United States registered bonds bearing 41/2% interest and payable in 1891. (See quotations, Art. 465.)

465. Bonds, like stocks, are bought and sold at the Stock Exchanges of all the principal cities, the brokerage on the purchase and sale of both being the same. (See Art. 291, page 291.)

The following are the quotations for the United States securities, in the market May 22, 1886:

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Note.-Currency 6's are bonds issued by the United States Government in aid of the trans-continental railways, bearing 6% interest, and payable in currency at the times specified in the quotations.

SLATE EXERCISES.

In the following problems, $100 bonds are referred to, and brokerage is reckoned at 1/% on par values, unless otherwise stated.

1. Find the cost to the buyer of 38 bonds at 9712.

2. If a person sells 38 bonds at 9712, what will he receive from his broker?

3. What amount in bonds at 112 can be bought for $10,586.75 ?

The brokerage being added to the price of the bond, the cost of 1 bond is found to be 1125. At this rate, how many can be bought for the given sum?

Note.-No principles are involved in the solution of problems like the foregoing but such as are applicable to the purchase and sale of stocks; but when questions arise as to the advantage of investing in one kind of bonds rather than another, such problems as the following occur:

4. If a person buys 5% stock at 125, what rate of interest does he receive on the money invested?

Whatever he pays for the bond, the interest he receives is always the interest specified in the bond. Hence he receives $5 interest on his investment. What per

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5 ÷ 125 = 5/125

= 1/25= 4% £ns.

Or, if stock at 100 yields 5%, at 125 it must yield 100/125, or 4/5 of 5% = 4%. What% interest will be realized on money invested

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10. In 51%

bonds at 160.
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11. In 61%

125.

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12. In 8%

13. In 4%

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How much money must be invested

bonds at 928/ to produce $352 income.

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$540

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16. In 41/2% 66 "108

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17. That I may receive 6% on the money invested, what price may I pay for 8% bonds?

What would be the difference between the income from an invest

ment

18. Of $8400 in 41/,'s at 120, and in 31/,'s at 112.

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21. If a person invest $4488 in 3% stocks at 70, and $5505 in currency 6's at 1372, paying the usual brokerage, what per cent.

will his income be on the sum invested?

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