The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1868-05-22
United States Currency and Ex-
change.


change.
The currency of the United States is
denominated decimal currency, the dollar
represented thus 81 being the unit; and
on this basis all calculations are made.
One dollar consists of 100 cents, and each
cent of 10 mills, and may be written either
81 or $1.0O. or $1,000, though this latter
form ls somewhat unusual. So, again,
zone hundred dollars" is written 500, or
$4,000, as may be preferred; but where
the two ciphers are added, as In the latter
case, they must be prefxed by the deci-
NAL point. The use OF this will be obvious
in the following gillustration-say, one hun
dred dollars and twentw-five cents, which
is written $100.25, and 30 on, for any
amount.
The dollar formerly in use was the Spa
nish dollar, lin silver,) the value Of which
was Is. Cd. 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 mis-
conception as to American exchange.
in dollars of FL, or 2Os.?
% 4s; 6d.-4i shillings.
Then - -4.H.4, or 4 dolls. A cents,
and 4-10 of q cent, or 4 mills.
Now, suppoeing the standard of Ameri-
can currency to be still the Spanish dol
lar, it is clear that s4.44.4 would represent
at par the value of FL sterling. But that
standard has been changed-first, by
United States silver coinage, and then by
gold one; 30 that now the par value is
about % per cent. above $4.44.4, or 81. SO
per {. Hence. when exchange is quoted,
say 1093 to ITO in New York, it is about
part. e., it is just as profitable to buy
exchange at that price for a remittance as
it is to send gold.
If the price be III to 112, it would pay
addition, to send gold; but if below 1904,
there would be loss in shipping gold.
All exchange is calculated upon gold
basis, but at the present time the usual
business of the United States is transact
ed in currency. This has to be taken into
account in settling any price quoted from
there, or sending remittances for pay
ments; and this is done in the following
manner-for Instance:
What is f100 worth in currency, with
exchange, say. at 1U93, and gold at 40 per
cent. premium? f1-444.44.
Therefore, f100-444.44
And 444.44 at 1091-s486G G5 in gold.
Which, at 40 per cent. premium-s6S1.3 81
in currency.
The same process gives tho true result,
let the rate of exchange and premium on
gold vary as they may. And, vice rersd,
W unu tne Value OF given amount or cur
rency in sterling:
A in New York wishes to pay B in Lon
don the value of $500 currency in ster-
ling. Gold is 136, and exchange 1854. How
many pounds, shillings and pence must he
send him?
81. A. 4 at 1881 gives, say, 81. so. 2 in gold.
Which at SO prem.-s655 55S per { sterling.
Therefore, S6.55s --sl ''ll Is 3d. am0't
to be remitted. And go again:
What is the value in sterling of 81 900 in
United States $40 bonds, when quoted at
1114 in New York, with gold at 1874 and
exchange 108?
Price of bonds-111A, i. e., III premium.
Then $1,000 at liz premium-s1, lis.
A.444 at 10S-say, 81. 80 in gold.
Which at 81 prem.-s6.432 per sterling.
therefore, s6-4s2 lib 7S'' value of
81, 900 in sterling.
The difficulty to be overcome by those
inexperienced will be with regard to the
decimal points, in multiplying and divid-
ing; but the working OF one or two ex-
amples, and bearing in mind what the
numbers represent, will fully obvate this
BY noticing. the prices of exchange and
gold quoted daily in the papers, correct
answer to any query as to exchange can at
once be wrought out by the above.
AS all articles of American produce are
quoted in currency, 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 extent,j
any one wishing to know the value of any
calculations almost daily to insure exact
ness