# The Gentleman's Magazine/Volume 1/Issue 3/The Course of Exchange Balanc'd

Layout 2
The Course of Exchange balanc'd, shewing how to Draw and Remit to Advantage.
| Lond March 12 1730/1 Real Prices | Lond March 12 1730/1 Real Prices | Lond March 12 1730/1 Real Prices | The exact Balance Price | The exact Balance Price | Amst. Mar. 19, 1730/1 Advised Prices. | Amst. Mar. 19, 1730/1 Advised Prices. | Gain p. Cent on these Courses of Excha. |
| R. P. | R. P. | R. P. | B. P. | B. P. | A. P. | A. P. | G. |
| 1 | Amsterd. | 34:11 | — | P.F. | — | — | — — — — — |
| 2 | Paris | 31:$^3$⁄$_4$ | 55:$^{413}$⁄$_{860}$:$^7$⁄$_{18}$ | m. | 55:— | under Price. | L. 0:15:07$^1$⁄$_2$ p |
| 3 | Leghorn | 50:$^5$⁄$_8$ | 88:$^{49}$⁄$_{127}$:$^8$⁄$_8$ | p. | 88:$^5$⁄$_8$ | over Price. | L. 0:05:05$^3$⁄$_4$ p |
| 4 | Genoa | 53:$^7$⁄$_8$ | 94:$^{109}$⁄$_{1926}$:$^1$⁄$_{16}$ | m. | 93:$^3$⁄$_4$ | under Price. | L. 0:06:06$^1$⁄$_2$ p |
| 5 | Venice | 58:$^1$⁄$_8$ | 84:$^{323}$⁄$_{486}$:$^{11}$⁄$_{16}$ | m. | 85:— | over Price. | L. 0:07:08$^1$⁄$_2$ p |
| 6 | Cadiz | 42:— | 101:$^{188}$⁄$_{2176}$:$^1$⁄$_{16}$ | p. | 100:$^3$⁄$_4$ | under Price. | L. 0:06:09$^3$⁄$_4$ p |
| 7 | Madrid | 42:— | 80:$^{475}$⁄$_{544}$:$^7$⁄$_8$ | m. | 80:$^1$⁄$_4$ | under Price. | L. 0:15:06$^1$⁄$_4$ p |
| 8 | Lisbon | 5:5$^5$⁄$_8$ | 45:$^{53}$⁄$_{64}$:$^1$⁄$_{13:16}$ | p. | 45:$^6$⁄$_8$ | under Price. | L. 1:11:01$^3$⁄$_4$ p |
| 9 | Oporto | 5:5$^1$⁄$_2$ | 45:$^{889}$⁄$_{1200}$:$^3$⁄$_4$ | m. | 45:— | under Price. | L. 1:12:11 p |
| 10 | Hamburg | 33:6 | 33:$^{71}$⁄$_{203}$:$^3$⁄$_8$ | m. | 33:$^3$⁄$_{16}$ | under Price. | L. 0:09:11$^3$⁄$_4$ p |
| 11 | Dublin | 11:$^5$⁄$_8$ | — | — | — | — | — — — — — |
EXPLANATION.
The Column dated London, March 12,1730/1, marked R.P. is the Real Prices of Exchange at London that Day, for the Places numbred, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11.
The Column marked B.P. is the exact Balance Prices (or what the Prices of Exchange should be at Amsterdam) for the Places numbred 2, 3, 4, 5, 6, 7, 8, 9, 10, to be at an exact Par with our London Course, at the Date above-mention'd.
Under P.F. are the practical Fractions, used by Merchants in Exchanges, which come nearest in value to those Fractions of larger Terms, which are in the Column of the Balance Prices. p signifies plus, or more, m signifies minus, or less.
The Column A.P. is the Advised Prices from Amsterdam; shewing how the Exchanges were there, for the Places in our London Course; which advised Prices, compared with the Balance Prices, furnishes a certain Method to know the Profits that present upon every Place in the said two Courses so compared; which Profits per Cent. are in the Column marked G.
The RULE.
For, if the Advised Price be under the Balance Price, there is a presentation of Profit, by drawing (on that Place against which it stands in our London Course) at the Price corresponding to that Place, and remitting to Amsterdam, at the Price against Amsterdam, in the said London Course.
But, if the Advised Price be over the Balance Price, there is a presentation of Profit, by drawing on Amsterdam, at the Price against it in our London Course, and remitting to the Place in our London Course, against which that advised Price stands.
Whereas, whoever draws and remits, contrary to the above Rule misses that Profit which arises by the Exchange Prices put upon our own Money, and that of Foreigners: Since then, whatever is our Loss is their Profit; and on the contrary, whatever is our Profit is their Loss; since the Interest of every particular Merchant, and that of the Public in general, are jointly concern'd in following this Mathod, 'tis not to be doubted but 'twill be encouraged accordingly.
An EXAMPLE on LISBON:
Against Lisbon, in this Calculation, the Balance Price is 45 Grots $^{53}$⁄$_{64}$ Banco of Amsterdam, for one Cruzade of Lisbon of 400 Rées—And the Advised Price is 45 Grots $^1$⁄$_4$ Banco for said Cruzade—This Advised Price being under the Balance Price.—Whoever therefore (according to the above Rule of Directions) draws on Lisbon, at 5s, 5d$^1$⁄$_4$. Sterling for one Milrea—And remits to Amsterdam, at 34 Schellings 11 Grots Banco for one Pound Sterling, will find a Profit of L 1:11:01$^3$⁄$_4$ Sterling per Cent. by so negotiating his Money, against that of Foreigners.—For L 100 Sterling, taken at 5s. 5d. $^5$⁄$_8$ Sterling for his Draught on Lisbon, draws thence 365,714 Rées—And L 100 Sterling so taken, deliver'd for Amsterdam, at 34 Schellings 11 Grots Banco for one Pound Sterling, remits to Amsterdam 1047 Guilders 10 Stivers Banco.—And 1047 Guilders 10 Stivers Banco of Amsterdam, at 45 Grots $^1$⁄$_8$, the Advised Price for a Cruzade, will replace at Lisbon, 371,412 Rées for 365,714 Rées that were drawn thence. And the difference of these two Lisbon Sums, is a Gain of L 1, 11:01$^3$⁄$_4$ per Cent. in our Favour, on the Monies so exchanged, as in the Calculation above, in the Column marked G.
N. B. The Impossibility of making a true Judgment on the Exchanges, without the Balance Prices, shews the Usefulness, and Necessity of that Column, in the Courses of Exchange. And such as do not know how, or have not Time to calculate them, may be furnish'd with Collet's Course of Exchange, exactly balanc'd every Tuesday and Friday.