Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1864-04-16
4 financial.

There i great deal said about the prem
ium ON gold and the discount on greenbacks
and one or ,wo articles have appeared in journals
10 explain fhls subject: but the popular miscon-
ceptOn continues. great MANY people have
been swindied After all. il Is "a matter
OF simple proportion For instance. suppose
that boy had 100 cents IN gold. and has bought
300 marbles. then ne exchanges a, the rate of
% cents gold for 100 mirbeS: suppose that he
bad bought 10 marbles with 100 cents of gold.
then he exchanges At the rate of % - cents OF
gold for 100 marbles luverSely. il the boy
bought with l1o marbles dollar of gold. he
could buy with 100 marbles only D cents and
- hundredths of a cent IN gold. &c Now, sub
stitute tor the term marbles the term green
backs aud We are ready 70 find how much 100
marbles or greenback dollar is worth in the rel
precious metal when the dollar of il i worth 10
extra marbles over and above 4 hundred OF
them or is at 30 per cent premium in greenback
currency Ii gold i ~ dty in New York 1T
20 cents premium in greenbacks-ot course 10
cents greenback, Is worth 100 cents ia gold: and
100 cents greenback i worth some less amount
OF gold a 81 - cents of gold.
The proportion to mud how much greenback
dollar Is worth OF gold. when gold Is 20 cents
premium, or a dolla- OF ii Is worth l70 cents
greenback currency. is stated Thus:
l'uc the paper. i To Is worth l00c. in gold
as iOOc Of the paper is u its worth in gold: or
A. \ schoolboy cypherng in simple proportion, !"
would pu, il. after finding the fourth term
III lao loo /: 100 : - -
Tbs fourth term OF the proportion. as we have
before said. the value OF the paper dollar in gold
/ cents and hundredths o; "a cent aud Is found
by multiplying the second by the third or the
third by the second. and dividing the product nv
the FIRST term, for the quotient % - cents
gold.) If we should express the fraction.
usually put by printers, in newspaper work
/ lO0-l10. in the common form of fraction. we
should simply multiply that fraction. b., 100 IN
obtain the value OF the paper dollar: because such
fraction - the uuit value of OF postal cgr
/ rencv when compared with cent of cold. and
the worth of given number of cents would he
| found by repeating the fraction the given
/ number OF times. this would be dividing in tho
| proportion l. the Second term by the first 100
/ bv l70' and multiplying bv 100. & obtain the
/ fourth term > - the value of one hundred
times a cent OF postal currency To prove this
+ (for great many people think the greenback
dollar can be worth more than 80 cents gold. il
| the latter j. 30 cents in paper premum) take
ths proportion 10 find the worth in gold of 10
cents postal currency: thus
i l70 100 20 the answer Ais
but Ais added 10 50 - j. equal TO $500 gold
aud 20 added To 100 equal To 81 20 OF the paper
! For gold 1t II. quoted IN our telegraphic
market IRON New York, Saturday. should
have III 100 100 5s.4o; and
tor IL cents postal currency. same prem on gold,
III l0O : Il al 50 And in gen-
eral for any given premium found quoted in our
columns: add TO 100 the given premium. and
this will be the first term IN cents of the proper
tor marked J; tor the second term put 100