$800 NEGOTIABLE NOTS. Batimore, January 26th, 1841. Sixty days after date, I promise to pay to the order of Charles Keenan, Eight Hundred Dollars, without defalcation, for value received. William H. Watson. CASE I. When Sterling money is required. 1. Suppose A. Allen of Baltimore, has occasion to draw on B. Burton of London, for $5462.50 when the exchange is at 9 per cent. (in favor of England) it is required to find how much sterling money the bill must be drawn for? Ans. $5000. Example. As 109.25 100 $5462.50 $5000. To reduce $5000 American money to sterling, multiply the dollars by 9, and divide by 40 (i. e.) 5000×9= £1125, the amount required. Q. Why do we multiply the dollars by 9 and divide. by 40? 40 A. Because, when the dollar is at par, 4s. 6d. make a dollar, and as 9 sixpences make a dollar, and 40 a pound sterling, therefore we multiply the dollars by 9 and divide by 40. CASE II. To change Pounds Sterling to Dollars. RULE.--Multiply the pounds by 40, and divide by 9, and we get the answer in dollars-then as 100 London : 109.25 Philad. : : 5000 Lon. : $5462.50, the amount sought in federal money. 1. A merchant in Philadelphia has occasion to draw on Paris for the above sum of $5462.50, when the exchange with France is at 5 francs, 224 centimes per dollar; required, how much French money the bill must be drawn for? Ans. 28541.56 francs. CASE III. To change 5 Franc Pieces (French money) to Dollars. RULE.-Say as the value of the 5 franc, agreeable to the rate of Exchange in French money is to $1.00, American, so is the amount of the bill in French money to its value in American currency. 3. What is the value of £948 16s. 8d. sterling in American currency? Ex. As the value of a dollar in Great Britain, may be either below or above par, that is, more or less than 4s. 6d. the proper method is, to bring the pounds, shillings and pence to pence, and divide by the pence in a dollar, for the amount required, thus suppose the dollar to be at par, 54 )227720($4217.04 nearly. Answer. 4. How many milreas of Portugal are equal to $12500 American currency? Ans. 10,000 milreas. 5. In 10,000 guilders of Holland, how many dollars? Ans. $3880 U. S. currency. 6. In 10,500 crowns of Denmark, how many dollars? Ans. $7000. 7. In 400 livres turnois (or 20 sols) of France, how many dollars? Ans. $7408. 8. In $8000, how many rials of Spain? Ans. 80,000 rials. 9. In $6,000 U. S. currency, how many testoons of Portugal? Ans. 48,000 testoons. 10. How many pistoles of Spain are in $36,000? Ans. 10,000 pistoles. 11. A of Amsterdam is indebted to B of Baltimore 3000 guilders, what is the amount, at 38 cts 8 m. per guilder? Ans. $1164. 12. How many dollars will purchase a draft of 2500 Italian pistoles? Ans. $8000. EXCHANGE TABLE FOR BUYING AND SELLING BILLS OF EXCHANGE, ABOVE AND BELOW PAR. This Table is convenient for finding the amount of bills at any rate per cent. from 1 to 11 per cent., above or below par. CASE IV. To find the amount of a Bill of Exchange when the rate per cent. is above par. 1. What is the amount of a bill of exchange for $750 at 4 per cent. above par? Ans. $780. Illustration. Opposite to 4 per cent. in the annexed table, the tabular number is 1.04 × 750 = $780. 2. What is the value of a bill of exchange for $1175 at 93 per cent. above par? Ans. $1289.561. 77 3. What is the value of a bill of exchange for $5333 at per cent. above par? Ans. $5706.31. CASE V. To find the amount of a Bill of Exchange when the rate per cent. is below par. 1. What is the value of a bill of exchange drawn for $9630 at 7 per cent. below par? Ans. $9000. RULE. Divide the given sum, for which the bill is drawn for, by the tabular number, opposite the rate per cent., thus 9630 2. What is the value of a bill drawn for $530 at 6 per cent. below par? Ans. $500. 3. James Nevins, Stock and Exchange Broker, (Exchange Place, Philada.) sold the following drafts. No. 1, $450 at 6 per cent. above par, |