Imágenes de páginas
PDF
EPUB

Thus, to reduce £100 16 s. currency to Federal money, we say £100 4 $4031, or $403,20. To reduce this again to currency, divide by 4. Thus :

403,24 £100,8; or £100 16 s. Note. Double the tenths for shillings.

=

Reckoning the dollar at 4 s. 8 d. £, multiply by 30. Thus the above sum in Federal money becomes

£100,8-3,0 14,4 X 30 144 X 3 = $432.

[ocr errors]

General Rule for Reduction of Currencies:

533. To reduce one currency to another,—that is, to express the same value by two different numbers,-implies a difference in the magnitude or value of their principal units; and (288) the numbers are to each other in inverse ratio to these values: hence we refer the principal unit of each currency to the same known standard, and thus establish their ratio. We then multiply the given number by the reciprocal of its ratio to the required number; that is, by the ratio of the value of the principal unit of the given to that of the required number, (219.)

Examples.

1. Reduce 50000 soldi piccoli of Venice to grani of Palermo: 361⁄2 grani or 341 soldi piccoli being equal to 1 lira, fuori banco, (out of bank.)

361

[ocr errors]

146 and 341 = 137. Hence (189 and 288) the ratio of the value of the soldo piccolo to that of the grano 50000 × 146 8300000

is 134, we therefore say (219)

1379

6058312%, or 60584 grani, nearly.

137

137

2. Reduce £8415 Pennsylvania to New York currency.

the dollar being 4 s. 8 d.

Answer, £8976.

3. Reduce £2618 15s. Canada currency to Federal money, Answer, $11223,213. 4. What is the worth of £2618 15 s. Canada currency, pound sterling being $ 4,87 ?

Answer, $11477,981.

the

SECTION XXVII.

EXCHANGE- -CHAIN RULE-COMPOUND INTEREST- ANNUITIES INCREASE OF POPULATION.

Exchange.

534. THIS is the method of discharging debts, paying and receiving money, &c., by remitting bills instead of cash, coin, or bullion: (bullion is gold or silver uncoined.)

If the remittance is made to a place in the same country, the transfer of claims is called Inland Exchange.

535. When a sum of money of one kind or country is immediately bartered for its equivalent in that of another, the operation is called a Common or Dry Exchange, (Cambio Comune, It. ;) but when paid in one place for a bill or order for its equivalent in the money of another, the transaction is called a Real Exchange, (Cambio Reale :) also Foreign Exchange.

536. A Bill of Exchange is a written order, addressed to an individual, firm, or company, at a distance, for the payment, at an appointed time, of the sum specified in the bill, to the person or party in whose favour the bill is drawn, or to the order of such person or party. As a precaution against accident, it is usual to draw three copies of a foreign bill, and send them by different posts. They are called First, Second, and Third of Exchange; and when any one of them is paid, the rest become void.

First,

Form of a Bill of Exchange.

Exchange £6000 sterling.

PHILADELPHIA, Mar. 2, 1854.

At sixty days' sight of this, my first of Exchange, (second and third of the same tenor and date unpaid,) pay to George Heath or order, Six Thousand Pounds Sterling, with or without further advice from me. LYON J. LEVY.

CHARLES CHEERYBLE, merchant, London.

Suppose that Lyon J. Levy sells this bill to Thomas P. Cope, then,

1. Lyon J. Levy is called the drawer, or maker, and seller of the bill.

2. Charles Cheeryble is the drawee, and when he accepts the bill, by writing his name across it with the word accepted, and thus engages to pay it when due, he is called the acceptor.

3. Thomas P. Cope, who gives value for the bill, is called the buyer, taker, and remitter.

4. George Heath is the payee, who may, by endorsement, pass it to another.

Mercantile payments are mostly made in Bills of Exchange, which pass, till due, from hand to hand, like any other circulating medium: and he who, at any time, has a bill in his possession, is called the holder.

When the holder disposes of the bill, he writes his name on the back of it, which is called endorsing; and the payee should be the first endorser.

If the bill be endorsed in favour of any particular person, it is called a special endorsement, and the person to whom it is thus made payable is called the endorsee, who must also endorse the bill if he negotiates it.

Any person may endorse a bill, and every endorser (as well as the acceptor or payee) is a security for the bill, and may be sued for payment.

The term or time of a bill is conventional or regulated by custom. Some bills are drawn at sight; some at so many days or months after sight or after date; and some at usance; that is, at or for the usual term.

A certain number of days (in the United States and British dominions, three) are allowed the acceptor, for payment of the bill after its term has expired: these are called days of grace.

In reckoning when a bill, payable after date, becomes due, the day on which it is dated is not included; and, if 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 longer than the succeeding, 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 equally 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 third of March.

$690.

Inland Bill or Draft.

PORTLAND, March 29, 1854.

Sixty days after date, pay to the order of Charles Horton, Six Hundred and Ninety Dollars, value received, and charge the same to the account of RUFUS D. BEAN.

To ISAAC WINSLOW, merchant, Philadelphia.

For payment or acceptance, a bill should be presented during the usual hours of business; that is, from 9 A.M. till 6 P. M. When either has been refused, the holder should give immediate notice to the parties he intends to hold responsible for its payment. This, in foreign exchange, must be accompanied by a protest, which is an instrument drawn by a notary, showing that acceptance or payment has been demanded and refused, and that the holder intends to recover any damages which he may sustain in consequence.

Chain Rule.

537. This rule is considered indispensable in the higher operations of exchange, and is, therefore, called the Rule of Exchange. It is, from its nature, also called Conjoint Proportion and Rule of Reduction: because it is applied to solve a complicated reduction of currencies, and effects, by one operation, similar to a Compound Proportion, what would otherwise require several statements in the Rule of Three.

Learners, not being generally acquainted with foreign moneys, to the reduction of which this rule is generally applied, may more readily understand it as illustrated by the following more familiar objects:

1. If 5 lb. of tea be worth 25 lb. of coffee, 7 lb. of coffee worth 16 lb. of sugar, and 20 lb. of sugar worth 8 lb. of cocoa, what quantity of cocoa should we have for 27 lb. of tea? Put A 1 lb. of tea, B= 1 lb. of coffee, C

[ocr errors]
[merged small][merged small][merged small][merged small][ocr errors][merged small][merged small][merged small][ocr errors][merged small]

= 1 lb. of

[blocks in formation]

Hence, the ratio of A to D—that is, of 1 lb. of tea to 1 lb. of cocoa, which (214) is compounded of the ratios A to B, B to C, and C to D-is 24 X 16 X=1; consequently, (219) 27748=118,5 lb., the required quantity of cocoa. From this example, we easily deduce the following

General Rule.

Draw a horizontal line, and place the Term of Demand, which is here 27, on the left, above the line as a numerator, and its homogeneous term under the line, one place towards the right, as a denominator; then the equivalent of this, as shown by the sign // one place farther to the right, as a numerator; then the term of the same kind one place to the right, as a denominator, and so on through all the terms; the last of which, having no homogeneous term, is called The Odd Term, and is, as well as the term of demand, a numerator. The result, after cancelling, is found as in multiplication of fractions. Thus, for the above example, we have

27 × 24 X 16 × 8

5// 7/1 20//

118,8 lb. of cocoa.

175

[ocr errors]

Or the numbers may be arranged in two columns. First, place the Term of Demand on the right, then that which is of the same kind first on the left, one line lower, and opposite to this its equivalent, with the sign between them; continue thus to alternate the terms, as has been shown above, the last of which, or Odd Term, will be the last of the right-hand column. Then, as the numbers on the right are the numerators, and those on the left the denominators, after cancelling as much as practicable, the result is found by dividing the product of the numerators by that of the denominators, as in multiplication of fractions.

The above example will stand thus:

5 lb. tea

27 lb. tea,
24 lb. coffee,

7 lb. coffee 16 lb. sugar,

5 lb. sugar

=

2 lb. cocoa.

Reduced, gives 118,86, as above.

2. Suppose N, of the United States, would remit $5000 to Paris, and that the direct Exchange is 5 Francs 40 centimes per dollar, but he wishes to send it through London and Amsterdam; which is most advantageous, the direct or indirect Remittance, the quotation of the Course of Exchange being as follows?

United States on London, 52 d. Sterling per Dollar.

London on Amsterdam, 10 Florins 10 Stivers per Pound Sterling.

Amsterdam on Paris, 60 d. Flemish per Ecu of 3 Francs.

« AnteriorContinuar »