The Sun.
London, England, 1867-04-09 00:00:00

of April, 1882," that is, the Government undertook
to guarantee the payment in 20 years from date,
reserving to themselves the right of payment at
their option after five years ; thus giving themselves
an interval of 15 years in which they might pay, and
a range of 20, when they must pay. To the original
bonds, therefore, were affixed 40 coupons, of which
on the Ist May next, ten will have been absorbed.
There is a very important remark in this pamphlet
which we recommend to the notice of travellers, to
persons whose business sends them to the United
States, and to those more especially who intend to
settle there.
" They can take nothing more convenient in the shape of
funds than Five-Twenty Bonds. Ist, because they are
always saleable at a premium ; 2 I, they can be used as re-
quired, and till used are constantly augmenting in value
by the interest." It must 14e borne iu mind that these bonds
represent the chief issue of the Public Debt of the country,
which is the first claim upon its resources. The Debt
was almost wholly contracted in carrying the late war to a
successful close. The liabilities incurred by previous wars
had long been liquidated, and 13,000,000 represented be-
fore that disastrous period the entire liabilities of the
United States Government. The effort made by the nation
to meet the Debt, as well as its accumulation, is shown
by the following table. The Debt—

• _
' July, 1860, was $64,000,000 Revenue, $56,000,000
„ 1861, „ $90,000,000 I, $41,000,000
„ 1862, „ $514,000,000 1, V 1,000,000
„ 1863, „ $1,098,000,000 „ $112,000,000
„ 1864, „ $1,740,000,000 „ $264,000,000
t 71 1865, „ $2,682,000,000 „ $333,000,000
„ 1866, „ $2,783,000,000 „ $558,000,000
The pamphlet opens with a full explanation of the
currency of the United States, and the mode of cal-
culating exchange with England. It says—

The dollar formerly in use was the Spanish dollar (in
silver), the value of which was 4s. 6d. sterling. This was
taken, and has since been, and still is, used as the basis of
exchange, and to this cause may be attributed most or
much of the misconception as to American exchange. If
$1 be worth 4s. 6d., what is the value in dollars of £l,
or 20s. ?

4s. 6d.•=l-1 shillings.
Then 20--40 4.41.4, or 4 dollars 41 cents., and
4/ 9 10
of a cent, or 4 mills. Now, supposing the standard of
American currency to be still the Spanish dollar, it is clear
that $1.44-4 would represent at par the value of X 1 ster
ling. But that standard has been changed, first by a
United States silver coinage, and then by a gold one, so
that now the par value is about 9i per cent. above $444-1,
or $4.86 per X. Hence, when exchange is quoted, say 1091
to 110 in New York, it is about par —i.e., it is just as profit-
able to buy exchange at that price for a remittance as it is
to send gold.

If the price be 111 to 112, it would pay expenses and 1
per cent. to 2 per cent. in addition, to send gold ; but if
below 1091 there would be loss in shipping gold.
All exchange is calculated upon a gold basis, but at the
present time the usual business of the United States is
transacted in currency. This has to be taken into account
in settling any price quoted from there, or sending remit-
tances for payments ; and this is done in the following
manner ; for instance :
What is £lOO worth in currency, with exchange say at
109 i, and geld at 40 per cent. premium ?

£1=4.444.
Therefore £lOO-114.44.
And 444.44 at 1091=4486.65 in gold.
Which at 40 per cent. premium=i6Bl.3l in currency.
The same process gives the true result, let the rate of
exchange and premium on gold vary as they may. And,
vice versa, to find the value of a given amount of currency
in sterling :
A in New York wishes to pay B in London the value of
48,600 currency in sterling. Gold is 136, and exchange
108-1. How many pounds, shillings, and pence must he
send him ?

$4.44.4 at 108+ gives say $4.82.2 in gold.
Which at 36 premium=s6.ssB per £ sterling.
$8,600
Therefore £1,311 7s. 6d. amount to be remitted.
$6•558
And so again :
What is the value in sterling of $l,OOO in United States
5-20 Bonds, when quoted at 111+ in New York, with gold
at 134, and exchange 108 ?
Price of bonds-1114, i.e., 111 premium.
Then $l,OOO at 11+ premium=sl,lls.
$1.444 at 108=_-say $4•80 in gold.
Which at 34 premium=-_-$6.432 per £ sterling.
$1,115
Therefore_£l73 7s value of $l,OOO in sterling.
$6•432
The difficulty to be overcome by those inexperienced
will be with regard to the decimal points, in multiplying
and dividing; but tho working of one or two examples,
and bearing in mind what the numbers represent, will fully
obviate this. By noticing the prices of exchange and gold
quoted daily iu the papers, a correct answer to any query
as to exchange can at once be wrought out by the above.
As all American articles of produce are quoted in cur-
rency, this calculation must be made to determine the cost
in sterling, and as the premium on gold and the rate of
exchange are constantly varying (though the latter to a
much less tent) one wishing to know the value of
any comm exodity frothence must make fresh calculations
almost daily to insure exactness.
We cannot let such a favourable opportunity pass with-
' out offering a suggestion which, it seems to us, might be
so easily adopted, and thus save much time and trouble in
making calculations in exchange. Why not adopt the
standard of money now in use, and quote exchange at
$4.75, $4.80, or $4.85, or whatever it may be, and do
away with an obsolete sterling value, which has to be in-
creased by 8 per cent., 84 per cent., 9 per cent., or 10 per
cent. It is only necessary for a few of the leading bankers
and merchants of New York to say that they will so quote,
and it would become universal in a short time.

We suggested in our last issue ou Interna-
tional Coinage a plan which would simplify to
even a greater degree, the elaborate calculation
in vogue. The public are indebted to Messrs.
Belding, Keith, and Co. for this useful pamphlet,
which, every one who gets it, should keep as a table
for reference. Those who are not holders of United
States securities cannot tell when they may become
interested in these bonds. Their steady rise shows
that they are daily growing in favour. However
prejudiced many may be whose knowledge
of United States securities has not yet enabled them
to understand the difference between a Mississippi
bond and the debt of the nation, they can-
not tell when their knowledge may become more
general, and with their ignorance will disappear
their prejudice. They would be rather astonished
if a province of New Zealand repudiated its debt,
and this was brought as a charge against the Impe-
rial Government, and knocked down the price of
'Consols 10 per cent. We therefore again recom-
mend all people who get this pamphlet not only to
read its contents, but to place it in where they can
hereafter get it for reference.