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RULE. Multiply the face of the bill or draft by 1 increased by the rate per cent. of premium, or by 1 decreased by the rate per cent. of discount, expressed decimally. The product will be the value of the given bill or draft.

NOTE. — When there is interest to be computed, it must be reckoned on the face of the bill or draft. When other than the value or cost of the bill or draft is to be found, proceed as in percentage.

EXAMPLES.

2. What is the value of the following bill, or draft, at 1 of 1 per cent. premium?

Ans. $ 1955.37. $ 1950 1530

Chicago, August 3, 1857. Thirty days after date, please pay to the order of Robert S. Davis & Co., one thousand nine hundred fifty 190 dollars, value received, and charge the same to our account.

KEENE & LEE. To GEORGE REED, Broker, Boston.

3. What is the cost of a draft on Philadelphia, at į per cent. premium, the face being $ 2000?

Ans. $ 2010. 4. What must be the face of a draft, at 2 per cent. discount, to cost $ 1744.40 ?

5. What is the cost of a 60 days' bill on Pittsburg to the amount of $ 600, at 1 per cent. discount, and interest off at 6

Ans. $ 587.70. 6. What is the cost of a 30 days' bill on Boston, at per cent. premium, and interest off at 6 per cent., the face of the bill being $ 9256.40 ?

Ans. $ 9240.20. 7. What must be the face of a 30 days' bill which will yield $ 9240.20 when sold at per cent. premium, and interest off at 6 per

cent. ? 8. A 15 days’ draft yielded $ 1190.184 when sold at 11 per cent. discount, and interest off at 6 per cent. What was the face of the draft?

Ans. $ 1212.

per cent. ?

FOREIGN BILLS.

494. A FOREIGN Bill of exchange is one of which the drawer and drawee are residents of different countries.

495. Foreign bills are usually drawn in sets; that is, at

the same time there are drawn two or more bills of the same tenor and date, cach containing a condition that it shall continue payable only while the others remain unpaid. Each bill of a set is remitted in a different manner, and when one of the set has been accepted and paid, the others become worthless.

In reckoning the value of foreign bills of exchange, an acquaintance with the moneys of account of foreign countries is required.

496. The moneys of account of the principal places of commercial importance, with the par value of the unit, expressed in United States money, are shown in the following

TABLE.

Cities and Countries.

Denominations of Money.

Value.

London, Liverpool, &c., 12

pence 1 shilling; 20s. 1 pound $ 4.84 Paris, Havre, &c., 100 centimes = 1 franc

0.186 Amsterdam, Hague, &c., 100 cents 1 guilder or florin

0.40 Bremen,

5 swares =
1 grote; 72gr. = 1 rix dollar

0.789 Hamburg, Lubec, &c., 12 pfennings = 1 schilling; 16s. = 1 mark banco

0.35 Berlin, Dantzic, 12 pfennings = 1 groschen; 30gr.=1 thaler= 0.69 Belgium, 100 centimes = 1 franc

0.186 St. Petersburg, 100 kopecks 1 ruble =

0.75 Stockholm,

12 rundstycks 16 skillings; 48s. = 1 rix
doilar specie

1.06 Copenhagen,

16 skillings 1 mark; 6m, = 1 rix dollar 1.05 Vienna, Trieste, &c., 60 kreutzers = 1 fiorin

0.48) Naples,

10 grani = 1 carlino; 10car. 1 ducat 0.80 Venice, Milan, &c., 100 centesimi 1 lira

0.16 Florence, Leghorn, &c., 100 centesimi = 1 lira

0.16 Genoa, Turin, &c., 100 centesimi = 1 lira

0.186 Sicily,

20 grani 1 taro; 30 tari = 1 ounce = 2.40 Portugal, 1000 reas = 1 millrea =

1.12 | 34 maravedis = 1 real vellon

0.05 Spain, 68 maravedis = 1 real plate

0.10 Constantinople, 100 aspers 1 piaster

0.05 British India,

12 pice
= 1 anna; 16 annas =

0.44 Canton,

100 candarines = 1 mace; 10m. = 1 tael 1.48

1 rupce

Note 1. — Grani is the plural of grano, carlini of carlino, centesimi of centesimo, lire of lira, tari of taro.

NOTE 2. - The moneys of account in Brazil are of the same denominations as in Portugal; in Mexico, Central America, New Granada, Chili, Venezuela, Bolivia, Peru, and Buenos Ayres, accounts are kept in pesos, or dollars, of 8 reals each; in Cuba accounts are kept in dollars equal 8 reals plate, or 20 reals vellon, equal $1; in British American Possessions accounts are kept in the denominations of sterling money, but of a depreciated value compared with the currency of the same denominations in England, except in Canada, where, by an act of the Colonial Parliament, passed in 1857, the decimal currency of the United States has been adopted.

497. The exchange value, in United States money, of the pound sterling of Great Britain is that of its former legal value, or $44 = $ 4.444, which is considerably below either its intrinsic or commercial value. The commercial value is generally about 9 per cent. more than this exchange, or nominal

par value.

Thus, nominal par value being = $ 4.449
Add premium at 9 per cent.

.40 The commercial par value will be = $ 4.845 Therefore, when the nominal exchange between the United States and Great Britain exceeds 9 per cent. premium, it is above true par; when less, it is below true par.

498. The quotations of the rates of exchange of the United States on England have always reference to the old par value of the pound sterling in United States money.

The course of exchange of the United States on France is so many francs and centimes payable in France for a dollar paid here; on Holland it is so many cents a guilder (of Netherlands); on Hamburg, so many cents a mark banco; on Bremen, so many cents a rix dollar; and so on.

NOTE 1. - The course of exchange of London on France is so many francs and centimes payable in France for 1£.; on Amsterdam, it is so many florins for 1£.; on Hamburg, so many schillings for 1£.; on Vienna and Trieste, so many florins and creutzers; on Spain, so many pence paid in England for 1 dollar of plate ( = 8; reals plate) payable in Spain ; on Lisbon, so many pence for 1 millrea; on Naples, so many pence for 1 ducat; and so on.

NOTE 2. The value of 1£. sterling from 7 to 104 premium on the old par value of $ 4.44%, is shown in the following

TABLE. 7 per cent. premium, $ 4.756 per cent. premium, $ 4.844 4.767 91

4.856 4.778 91

4.867 4.789

4.878 4.80 10

4.889 4.811 101

4.90 4.822 103

4.911 4.833 103

4.922 Note 3. In this country the quotations of foreign exchanges are usually for bills payable 60 days after sight, and of inland or domestic exchanges, for bills payable at sight.

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499. To compute foreign exchange.

Ex. 1. What should be paid for the following bill at 94 per cent. premium?

Ans. $ 486.666. Exchange for £100.

Philadelphia, May 21, 1857. Sixty days after sight of this, my first Bil of Exchange, (second and third of the same date and tenor unpaid,) pay to Langdon Shannon, or order, one hundred pounds sterling, value received, with or without further advice.

William P. BROWN. To MESSRS. PEABODY & Co., Bankers, London.

OPERATION

100 x 40

= $ 444.44; $ 444.444 x 1.095 $ 486.666. 2. What is the cost at Amsterdam of a bill on New York for $ 340.67, exchange being at $ 0.38 to the guilder ?

Ans. 896.50 guilders.

OPERATION

340.67 ; 38
= 896.5

896 guilders 50 cents. 3. What must be paid in Boston for a bill on Paris for 3676 francs, exchange being 5 francs 20 centimes to the dollar ?

Ans. $ 706.92 4.. 4. What is the value of a bill on Hamburg for 3000 marks 10 schillings, exchange being at $0.35 to a mark banco ?

Ans. $ 1050.217. 5. How large a bill can be purchased on Liverpool for $ 81727.75, exchange being at 94 per cent. premium?

6. Paid $ 14400.12 for a bill on Havre for 79000 francs ; how much was exchange below par? Ans. 2 per cent.

7. What is the cost of a draft on St. Petersburg for 5763 rubles 75 kopecks, exchange being at 74 cents a ruble ?

Ans. $ 4265.175. 8. What must the face of a bill on Lisbon be which costs $ 550.66, exchange being at $ 1.10 a millrea?

Ans. 500 millreas 600 reas. 9. What is the cost at Berlin of a draft on Philadelphia for $ 10000, exchange being at $ 0.68 a thaler ?

Ans. 14705 thalers 26 groschen 511+ pfennings. 10. How much must be paid in Chicago for a bill on Stockholm amounting to 400 specie rix dollars 12 skillings?

Ans. $ 424.265.

rupee ?

11. What is the value in St. Louis of a draft on Dantzic for 300 thalers 20 groschen 10 pfennings, exchange being at $ 0.69 a thaler ?

Ans. $ 207.4714. 12. What must be the face of a draft on Calcutta which costs in Boston $ 5694, when exchange is at $ 0.40 a company

Ans. 14235 rupees. 13. How much must be paid in Naples for a draft on Baltiinore amounting to $ 615.60, the value of a ducat in exchange being $ 0.80?

Ans. 769 ducats 5 carlini. 14. There was paid in New Orleans $ 7300 for 1500£. draft on Liverpool ; at what per cent. of premium was it purchased?

Ans. 91 per cent. 15. What must be the face of a draft on Paris that can be bought in London for 868£. 17s. 6d., exchange at 23 francs 60 centimes a pound sterling? Ans. 20505 francs 45 centimes.

16. How much must be paid in Genoa for a bill on New York whose face is $ 2640, when exchange is at $0.18 a lire ?

Ans. 14666 lire 66ş centesimi. 17. When a bill on Paris for 88128 francs costs $ 17280, at what per cent is the rate of exchange above par?

18. Robert Anderson, of Cincinnati, has consigned a cargo of pork, valued at 17000£., to Richard Arkwright & Son, Lirerpool. Robert S. Davis & Co., being about to import an invoice of books, have purchased of Anderson a bill of exchange, at 8.1 per cent. premium, for the value of the said

cargo.

What should they pay for the bill ?

Ans. $ 81977.777.

ARBITRATION OF EXCHANGES.

500. ARBITRATION of Exchanges is the process of finding the proportional exchange of two places by means of one or more given intermediate exchanges.

Exchange effected thus, through one or more intermediate exchanges, is called circular exchange.

The exchange when made through a single intervening ex

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