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ent, is nearly as 143 to 1; in England, as 1430 to 1; in France and in Russia, as 15 to 1; in Spain, as 16 to 1; in China, as 144 to 1; and in Portugal, as 1398
468. The value of certain foreign coins and currencies, as fixed by law in the collection of duties at the United States custom-houses, is shown in the following
TABLE. Pound Ster. of G. Britain, $ 4.84 Florin of South of Germ., $ 0.40 Pound Ster. of Br. Prov., Ounce of Sicily,
2.40 Nova Scotia, N. Bruns., 4.00 Pagoda of India,
1.84 and Newfoundland,
Star Pagoda of Madras, 1.84 Dollar of Mexico, Peru, l 1.00
Tael of China,
1.48 Chili, and Cen. Amer., Millrea of Portugal,
1.12 Specie Dollar of Sweden
Millrea of Azores,
.834 1.06 and Norway,
Ducat of Naples,
.80 Specie Dollar of Denmark, 1.05 Sicca Rupee of Bengal, or
.50 Rix Dollar of Bremen, .781
of Bombay, Thaler of Bremen of 72 Rupee of British India, .444
Mark Banco of Hamburg, .35 Rix Dollar, or Thaler of Franc of France and Belg., .18%
Prussia and Northern .69 Livre Tournois of France, .187 States of Germany,
.16 Ruble, silver, of Russia, .75 Lira of Lombardo-Vene
.16 Florin of the Austrian Em
tian Kingdom, pire and city of Augs- .484 Lira of Tuscany,
Lira of Sardinia,
.18% Florin or Guilder of Neth
Real Plate of Spain, .10 erlands,
Real Vellon of Spain, .05
REDUCTION OF CURRENCIES.
469. Reduction of Currencies is the process of finding the value of the denominations of one currency in the denominations of another.
470. To find the value of the denominations of one currency in the denominations of another, when the values of a unit of each are known.
Ex. 1. What is the value of 18£. 4s. 6d. of the New England currency in United States money? Ans. $ 60.75.
We reduce the shillings and pence 18£. 4s. 60. 18.225£. to the decimal of a pound, and an18.225 • iu = $ 60.75.
nex it to the pounds. We then di
vide the sum by %, because 6s., or a dollar in this curre
rrency, is 8 of a pound.
Ex. 2. What is the value of $ 60.75 in New England currency?
Ans. 18£. 4s. 6d.
Since 6s., or a dollar of this cur60.75 X
18.225£. rency, is 8 of a pound, we multiply 18.225£.
the given sum by the fraction 3 18£. 4s. 6d.
and find the value of the decimal
in shillings and pence. RULE. - Multiply or divide, as the case may require, by the value of the unit of the given currency expressed in United States money.
NOTE. When one currency is to be changed to another, and neither of them is United States money, the value of one of them may be found in United States money, and the value of that result be found in the other currency.
3. Change 46£. 16s. 6d. of the currency of New York to United States money.
Ans. $ 117.06. 4. Change $ 1032 to the currency of Pennsylvania.
Ans. 387£. 5. Find the value of $ 515.70 in Canada currency.
Ans. 128£. 18s. 6d. 6. Change 160.50 francs to United States money. 7. Change $728.41 to English money.
Ans. 150£. 9s. 11 24d. 18. Find the value of 12£. 12s. of the currency of Georgia in United States money.
Ans. $ 54. 9. Find the value of 128£. 18s. 6d. of Canada in United
Ans. $ 515.70. 10. Find the value of 740.45 rubles, silver, of Russia, in United States money.
Ans. $ 555.331 11. Find the value of 46£. 16s. 6d. of New York currency in the currency of New England. Ans. 35£. 2s. 4£d. 12. Change 151 millreas of Portugal to real plate of Spain.
13. Find the value of 1000 specie dollars of Norway in francs.
14. A merchant of Quebec bought in London 30 pieces of broadcloth of 30 yards each, at 15 shillings per yard; what is the amount of his bill in Canada currency ? Ans. 816£. 15s. \15. A merchant of Prussia bought in Naples silks to the amount of 410 ducats ; what was the amount of his purchase in thalers ?
471. EXCHANGE, in commerce, is the paying or receiving money in one place for an equivalent sum in another, by means of drafts, or bills of exchange.
472. A BILL OF EXCHANGE is a written order, to some person at a distance, to pay a certain sum, at an appointed time, to another person, or to his order.
The maker or drawer of a bill is the person who signs it.
The buyer, taker, or remitter of a bill is the person in whose favor it is drawn.
The drawee of a bill is the person on whom it is drawn, who is also called the acceptor, after he has accepted it.
The indorser of a bill is the person who indorses it.
The holder or possessor of a bill is the person in whose legal possession it may be at any time.
473. Most mercantile payments are made in bills of exchange, since it is generally more convenient to discharge debts by means of them than by cash remittances. For example, suppose A, of Boston, is creditor to B, of Baltimore, $100; and C, of Boston, is debtor to D, of Baltimore, $ 100; both these debts
may be discharged by means of one bill. Thus, A draws for this sum on B, and sells his bill to C, who remits it to D, and the latter receives the amount, when due, from B. Here, by a transfer of claims, the Boston debtor pays the Boston creditor, and the Baltimore debtor the Baltimore creditor; and no money is sent from one place to the other. The same would take place if D, of Baltimore, drew on C, of Boston, and sold his bill to B, of Baltimore, who should send it to A, of Boston; the effect, in either case, being merely a transfer of debt and credit.
Bills of exchange pass from hand to hand, until due, like any other circulating medium.
474. The terms of a bill vary according to the agreement between parties, or the custom of countries. Some bills are drawn at sight; others, at a certain number of days, or months, after sight or after date ; and some, at usance, which is the customary or usual term between different places.
DAYS OF GRACE.
Days of grace are a certain number of days granted the acceptor for paying the bill, after the term of a bill has expired. The usual time allowed in this country is three days.
NOTE 1. - - In some States three days of grace are allowed on all bills of exchange payable at sight, or at a future day certain; but in other States sight drafts are excepted, as in New York, Pennsylvania, New Jersey, Maryland, Virginia, Missouri, Illinois, Michigan, Connecticut, Rhode Island, Delaware, &c.
No days of grace are allowed on bills written payable on demand, or which have no time of payment expressed in them.
NOTE 2. - In reckoning when a bill, payable after date, becomes due, the day on which it is dated is not included; and if it be a bill payable after sight, the day of presentment is not included. When the term is expressed in months, calendar months are understood; and when a month is shorterthan the preceding, it is a rule not to go in the computation into a third month.
Thus, if a bill be dated the 28th, 29th, 30th, or 31st of January, and payable one month after date, the term expires on the last day of February, to which the days of grace must, of course, be added; and therefore the bill becomes due on the 3d of March.
475. An indorsement of a bill is the act by which the holder of it transfers his right to another. It is usually made on the back of the bill, and must be in writing.
476. Bills payable to order are transferred only by indorsement and delivery, but bills payable to bear are transferred by either mode. On transfer by delivery, the person making it ceases to be a party to the bill ; but on a transfer by indorsement, he is to all intents and purposes chargeable as a new drawer.
477. An indorsement may take place any time after the bill is issued, even after the day of payment has elapsed.
NOTE. — An indorsement may be restrictive, giving authority to the indorsee to receive the money for the indorser, but not to transfer the bill to another. The indorsement for a part of the money only is not valid, except with regard to him who makes it. The drawer and acceptor are not bound by it. After the payment of a part, however, a bill may be indorsed over for the residue. The indorsement is said to be in blank, when the indorser simply writes his name upon the back of the bill to make it transferable by delivery; and is said to be special, when the indorser directs the money to be paid to some particular person, or to his order. If the indorser would avoid all liability, he must qualify his indorsement by the words, “ without recourse,” or by others of the same import.
478. An acceptance is an engagement to pay a bill according to the tenor of the acceptance, which may be either absolute or qualified.
479. An absolute acceptance is an engagement to pay a bill according to its request, which is commonly done by the drawee writing his name at the bottom, or across the body of the bill, with the word accepted.
480. A qualified acceptance is when a bill is accepted conditionally. But the holder is not obliged to receive a conditional or partial acceptance. He may act as if an acceptance had been entirely refused.
Note. — When a bill is drawn for the account of a third person, and is accepted as such, and he fails without making provision for its payment, the acceptor must discharge the bill, and can have no recourse against the drawer. When a holder, at his own risk, takes a conditional or partial acceptance, he must give immediate notice to all other parties to the bill, or he can have no resort to them in default of payment.
All bills payable at sight, or at a day certain, or on demand, should be presented within a reasonable time, or the holder may, from his default, be the loser.
481. The holder of a bill, when acceptance or payment has been refused, should give regular and immediate notice to all the parties to whom he intends to resort for payment; since, if a loss should be incurred, on account of unnecessary delay, by the failure of any of the parties, he would be obliged to bear the loss. Such a notice of non-acceptance or non-payment, when made by a public officer called a notary or notary public, or by any other legal mode, is called a protest.
482. When the parties to a bill, which the drawee has failed to accept or pay, live in different countries, a protest is indispensably necessary, as this instrument is admitted in foreign countries as legal proof of the fact of the refusal, and that the holder intends to recover any damages which he may sustain in consequence.
483. In case of non-payment, when the parties to a bill live in the same country, it is not necessary, although frequently