The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1868-05-26
Unstesl stetss curressoy AVA 1:x-r

+ Unstea stetss currezscy qral 1sx- &.
4f.st,. .4iisp 5ehnEge. n = 4 zsf. ~
Tho currency of the United States ID,
dsacminated dscimsl -
/ ftrepresented thus - being the INIT. and
on thisl bssis all calculations are made
One dollar consists of 100 peDtaS en- each
cent or 10 mills, and may be wfftteneith
81 or 81. 90. or 81. 600, though this laktor.
form is somewhat unusual. So, hgairi.
|" "one hundred dollars" is written $le6, or
10000. as may be preferredi 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 WILDE obvious
in the following gillustration-say, one hum
dred dollars and twentw-6ve cents, which
is written sl00.25, and 80 on, for any
The dollar formerly in use WIS the Spa.
nish dollar, dn silver,l the value Of which
was As. Sd. 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 tho mis-.
conception as to American exchange.
Il 81 DE worth 4s. Cd. what is the value
in dollars of Ell, or 20s.2
As. 6d.--4S shillings.
20 40 10,
Then = = 4.4.4, or dolls. Al cents,
and 4-10 of cent, or 1 mills.
Now, supposing the standard of ,Ameri-
can currency to be still the Spanish dol
lar, it is clear that 81. .444 would represent
at par the value OF 91 sterling. But that
Itandard It,,;ia "a has beer, been changed-frst, by
a gold one; 80 that now the par value is
about 9g per cent. above S441.4, or 81 So
per 1. Hence, when exchange is quoted,
say 1904 to ITO in New York, it is about
part. e., it is just as profitable to buy
it is to send gold.
If the prico be III to 112, it would pay
expenses, and per cent to per cent. in
addition, to send gold; but if below 1904,
there would be loss in shipping gold.
All exchange, is calculated upon q gold
basis, but at the present timo 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 109t, and gold ut 40 per
cent. premium? Cliff A.
Therefore, f1O0-444.44.
And 444. AZ at 1099-s4SG.65 in gold.
Which, at 40 per cent. premium s651 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 rersa,
to lind the value OF given amount Of cur
| rency in sterling:
~ ~ ENo" Ioih WISHES TO pay Is Ill Lon
don the value of $4,000 currency in ster-
ling. Gold is 136, and exchange 1OSl How
many pounds, shillings and pence must he
| send him?
S444.4 at 108l gives, say, s4S2.2 in gold.
Which at SO prem.-sG 55S per sterling.
$4,000
Therefore, ---s1, ,311 rs. Cd, amo't
sG55S
to be remtted. And so again:
What is the value in sterling of 81 900 in
United States 500 bonds, when quoted at
1114 in New York, with gold at 13i and
| exchange 10S?
Price of bonds-1115, /. e., 113 premium.
Then 81 900 at liz premium-s1, lis.
S4.44 at 10S-say, s4eO in gold.
Which at "a pren,.-s6.432 per c sterling.
Therefore, :, - -f17s 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-
ampies, and bearing III mind what the
numbers represent, will fully obviate this.
by noticing the prices of exchange and
gold quoted daily in the papers, a correct
answer to any query as to exchange can a
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
or exchange are constantly varying,
(thGuGh tho latter to q much less extent,j
any one wishing to know the value of any
commodity from thence must make fresh
calculations almost daily to insure exact
ness. i-fi't-.r r.i- % ..Ic