(44.) A bill of 759l. 18s. 9d. is remitted to Paris by a merchant in London; what is the value in francs and cents, exchange at 23 francs 45 cents per £. sterling?

(45.) A gentleman (on his travels) received at Paris 3749 crowns, 2 livres, 10 sols, for a bill of exchange, the value whereof in England was 483l. 14s. 3d. What was the course of exchange between England and France? that is, how many francs and cents were given for 81 sterling?

(Table X.)

(46.) In 749/. 188. sterling, how many piastres, or pieces of eight, at Madrid, exchange at 45 d. sterling per piastre ?

(47.) In 1347 piastres, 2 rials, 24 maravedies, of Madrid, how much sterling, exchange at 47 d. per piastre? (48.) In 9749 rials of plate, how many £. sterling, exchange at 43 d. per piastre?

(49.) Bought raisins of a merchant at Malaga to the amount of 7549 rials Veillon; for what sterling money must the merchant draw his bill, exchange at 414d. per piastre?

(Table XI.)

(50.) In 7434 crusades 347 reis, how many 8. sterling exchange at 65d. per mille-reis?

(51.) A merchant at Lisbon remits to London 4756 mille-reis 290 reis, exchange at 644d. per mille-reis; how much sterling must be paid in London for this remittance?

(52.) If a bill of 17887. 178. sterling be drawn upon London, what is the value at Oporto in mille-reis, exchange at 661d. per mille-reis?

(53.) If 2000 mille-reis were paid at Lisbon for a bill upon London of 666l. 13s. 4d., what was the course of exchange?

(Tables XII. and XIII.)

(54.) How much sterling money may a person receive in London, if he pays in Genoa 947 pezzos, exchange at 534d. per pezzo?

(55.) London is indebted to Genoa 17491. 17s. 6d., for how many pezzos may Genoa draw on London, the exchange at 47ąd. per pezzo?

(56.) In 7477. 16s. 4d. sterling, how many pezzos of Leghorn, exchange at 46 d. per pezzo?

(57.) London is indebted to Leghorn 7439 pezzos, or piastres, 9 soldi, 3 denari; what sterling money stands as an equivalent in the London merchant's books, the exchange being 48 d. per piastre?

(58.) A bill of 5747. 15s. is remitted to Leghorn, to be paid in piastres of 6 lires cach, exchange at 54d. per piastre; how many will be received?

Examples to Prop. VI.

(59.) London remits to Ireland 574l. 158. sterling, how much currency of Ireland must be received, exchange at 77. 10s. per cent.?

100l.: 1071. 10s. :: 574l. 15s. : 617. 17s. 14d. answer.

(60.) The value of 694l. 18s. 6d. sterling is required in Irish currency, exchange at £5 per cent.?

(61.) London receives a bill of exchange from North Carolina for 9177. 18s. sterling; for how much currency was London indebted, exchange at 76 per cent.?

Examples to Prop. VII.

(62.) Dublin draws upon London for 8791. 6s. 6d. Irish, exchange at 113 per cent.

How much must Lon

don pay Dublin to discharge the bill?

111. 100l. :: 8791. 6s. 6d. : 7871. 15sh.

(63.) What must be paid in London for a remittance of 67471. 148. Irish, exchange at 11 per cent. ?

(64.) Jamaica remits to London 475l. 14s. 10d. currency, what sterling money must be received for it, exchange being at £135 currency for £100 sterling?

CLASS II. exercising the 6th and 7th Propositions.

(65.) A merchant in London consigns to his factor in Jamaica goods amounting to 734l. 14s. 9d. sterling, which are sold for 9001. currency; what sterling ought the factor to remit, after deducting 5 per cent. for his commission and charges; and whether does the merchant gain or lose, and how much; the exchange being at 25 per cent. ?

(66.) My factor at Barbadoes bought goods for me to the amount of 7150l. 14s. currency; what is the value in sterling money, allowing the factor 24 per cent. for commission, the exchange being at 35 per cent?

(67.) A merchant at Boston stands indebted to his correspondent in London 75491. 18s. 4d. currency; what sterling sum stands as an equivalent in the London merchant's books, exchange at 57 per cent.?

(68.) Sold sugar in London for my employer in Jamaica to the amount of 17571. sterling; what currency ought I to remit, after deducting 21 per cent. for commission, the exchange between London and Jamaica being £157 currency for £100 sterling?

Examples to Prop. VIII.

(69.) London draws upon Holland for a sum of money when the exchange is at 35s. 6d. Flemish per £. sterling, and afterwards draws again when the exchange is at 34s. 6d. What does London lose or gain per cent. by this negociation when compared with the former?

35s. 6d. : 100l. :: 34s. 6d. : 971. 3s. 797d. Then 1001.-971, 3s. 797d.=2l. 16s.. 5.4d. loss per cent.

(70.) London draws upon Amsterdam for a sum of money when the exchange is at 34s. 6d. Flemish per £. sterling, and afterwards draws again when the exchange is at 35s. 6d. How much does London gain or lose per cent. by this transaction, when compared with the former?

34s. 6d. 1001. :: 35s. 6d. : 1021. 17s. 111d. Then 1021. 17s. 1113d.-100-2l. 17s. 1113d. gain per cent.

(71.) If the par of exchange between London and Amsterdam be 373s. Flemish per £. sterling, what does London gain or lose per cent. by drawing bills upon Holland at 33s. 4d. Flemish per £. sterling.

(72.) Suppose London exchanges with Holland when the course of exchange is at 35s. 6d. per £. sterling, what will be the gain or loss per cent. to London, admitting the par of exchange to be 338. 4d. per £. sterling?

(73.) A bill of exchange was drawn upon Amsterdam when the course of exchange was 34s. 3d. Flemish per . sterling; and, some time after, another was drawn, when the course of exchange was 33s. 6d. Flemish per . sterling; what was gained or lost per cent. by this negociation when compared with the former?

CLASS II.

(74.) If the par of exchange between London and Portugal be 58. 7d. sterling per mille-reis, what is gained or lost per cent. in London, when the course of exchange is 5s. 24d. per mille-reis?

(75.) Suppose London exchanges with Portugal for a mille-reis at 5s. 6d. sterling, and afterwards at 5s. 1d.What is gained or lost per cent. by the latter negociation, when compared with the former?

(76.) Suppose the course of exchange between London and Madrid to be 413d. sterling per piastre, at which time a bill of exchange is drawn by London; what would have been the gain or loss per cent. to London, had the bill been drawn when the exchange was at 53 d. sterling per piastre, by comparing the latter negociation with the former?

ARBITRATION OF EXCHANGE.

Definition. By Arbitration, or the comparison of exchange, is to be understood a method of remitting to, or drawing upon, foreign places in such a manner as shall be most advantageous to the merchant.

* The table, given at p. 387 of the Negociator's Magazine, is calculated upon this principle.

S

I. Simple Arbitration.

Definition. When the exchanges among three places only are concerned, it is called Simple Arbitration, and the arbitrated price is such a rate of exchange between two of the places as shall be in proportion with the rates assigned between each of them and a third.

Note. All questions in simple arbitration may be solved with a little considération by one or more statings in the direct or inverse rule of three.-If a gain or loss per cent. is mentioned, after you have found the proportional gain or loss by the rule of three, the gain or loss per cent. by a variation of exchange, may be found by Proposition 8 preceding, if it has no regard to time. But, if time, commission, brokerage, &c. are considered, the several allowances to be made for these purposes must be calculated by the rules of interest, commission, brokerage, &c. previous to the operation for the gain or loss per cent.

II. Compound Arbitration of Exchange, called by Merchants, The Chain Rule of Three.

Definition. Compound Arbitration has respect to the exchanges of four or more countries, or cities, and its utility consists in discovering the best and most advantageous method of negociating exchanges with different places.

Proposition. To determine whether a direct or circular exchange will be preferable, having the course of exchange between several places given.

Rule. Distinguish the several courses of exchange into antecedents and consequents: place the antecedents in one column, and the consequents in another, to the right-hand of the antecedents, in such a manner that the first consequent may be of the same name and denomination as the second antecedent, and the second consequent as the third antecedent, &c. through the whole. Then multiply all the antecedents together for a divisor, and all the consequents together for a dividend; the quotient produced from this divisor and dividend will be the value of the sum required. Then calculate the value of the sum by the direct exchange or by any other circular exchange; and by comparing these