The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1868-05-20
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 s1.00. or $1,000, though this latter
form Ia somewhat unusual. SO, again,
''one 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.
In the following illustration-say, one hun
dred dollars and twentw-fve 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 4s. 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.
If 81 be worth AZ. 3d., what 10 the value
in dollars of f1, or 20s.?
4s. 6d.-44 shillings.
Then = -4.444, or dolls. A cents,
and 40 of cent, or mills.
Now, suppoeing the standard of Ameri-
can currency to be still the Spanish dol
lar, it is clear that 4.44.4 would represent
at par the 8alue of FL sterling. But that
standard has been changed-frst, by a
United States silver coinage, and then by
o gold one; 80 that now the par value is
about 81 per cent. above s4.44.4, or s4.86
per E. Hence. when exchange is quoted,
say 1904 to 110 in New York, it is about
par--i. e., it is just as profitable to buy
exchange at that price for a remittance as
it is to send gold.
fho lo 10
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 a 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 1893, and gold at 40 per
cent. premium? f1-444.44.
Therefore, f100-44444
And 444.H at 1093-$4S6. .65 in gold
Which, at 40 per cent. premium-s6S 1.31
in currency.
The same process gives the true result.
let the rate OF exchange and premium on
gold vary as they may. And, uice uersa,
to find the value of given amount Of cur
rency in sterling:
A in New York wishes to pay in Lon
don the value Of sS, 600 currency in ster-
ling. Gold is 1856, and exchange 1854. How
many pounds, shillings and pence must he
send him?
s4.44 4 at 1851 gives, say, s4.s2.2 in gold.
Which at SO prem.-$6.55S per sterling.
Therefore, ---f1 ,311 rs. 3d., amo't
to be remitted. And so again:
What is the value in sterling of 81, 900 in
United States 500 bonds, when quoted at
1113 in New York, with gold at 1874 and
exchange 108?
Price OF bonds-1113, L. e., 119 premium.
Then 81 ZOO at liz premium-S1, ,115.
$4.44 at 108-say, $3.50 in gold.
Which ut 81 prem.-s6.432 per { sterling.
Therefore, sa:4aa -fl7s 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 obviate this.
By noticing the prices Of exchange and
gold quoted daily in the papers, a correct
answer ans to any query as to exchange can at
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,
any one wishing to know the value Of any
commodity from thence must make fresh
calculations almost daily to insure exact
ness.