The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1868-05-23
United States Currenc, and Ex-
change. k

| On1Ieu St9tcB currency anu Xxx
| change. @ -
The currency of she United States Is
denominated decimal currency, the dollar
Represented thus s. 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 s1.0O, or $1,000, though this latter
| form is somewhat unusual. SO, again,
zone hundred dollars" is written s100, or
$4,000, as may be preferred; but where
the two ciphers are added, as in the latter
case, they must be prefixed by the deci-
NAL point. The use Of this WILDE obvious
| in the following llustration-say, one hun
| dred dollars and twentw-five cents, which
is written S100.25, and SO on, for any
amount.
The dollar formerly in use was the Spa
nish dollar, Tin silver,) the value of which
was As. Cd. sterling. This was taken and
has since been and still is used as the
basis Of exchange; and &c this cause may
Ue attributed most or much Of the mis-
conception as to American exchange.
II 81 be worth As. 3D., what is the value
in dollars Of f1, or 20s.P
As. 6d.-4l shillings.
20 40
Then -444, or dolls. Al cents,
and 4-10 of cent, or mills.
Now, supposing the standard of Ameri-
can currency to be still the Spanish dol
lar, it is clear that 81 4.4 would represent
at par the value of 81 sterling. 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 8! per cent. above S4.4l.4. or S4 sc
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 Ill to 112, it would pay
expenses, and per cent. to per cent. in
addition, to send gold; but il below 1904
there would he loss in shipping gold.
All exchange is calculated upon a gold
basis, but ut the present time the usual
business of the United States is transact
account in settling any price quoted from
there, or sending rcmittances for pay
ments; and this is done in the following
manner-for instance:
What is fl00 worth in currency, with
exchange, say, at 1893, and gold at 40 per
cent. premium? f1-4i4.44.
Therefore, f100-444 H.
And 444.4i at 1901 l-s4SG. 65 in gold.
Which, ut 40 per cent. premiums -SGSl.3 81
in currency.
The same process gives tho true result,
let the rate of exchange and premium on
Soiu Haiy as theS may. ana, Ctce CefSU,
to find the value of given amount of cur
rcncy in sterling:
A in New York wishes to pay B in Lon
don the value of So, GOO currency in ster-
ling. Gold is 1856, and exchange lOS1 How
many pounds, shillngs and pence must he
send him?
s4 A at 1Osa gives, say, s4.s2.2 2 in gold.
when at 80 pTsm;0s6 pss sGo 0'S per sterling
Therefore, ---f1 ,311 rs. Cd. amo't
to be remitted. And 80 again:
What is the value in sterling of 81 GOO in
United States 500 bonds, when quoted at
1114 in New York, with gold at 134 and
exchange 1OS?
Then 81, 900 at liz premium-s1,115.
s4.444 at 10S-say, 81 so in gold.
Which at 81 prem.-s6.432 per { sterling.
Therefore, - - -fl7s U.s., value of
81, 900 in sterling.
The difficulty to be overcome by those
inexperienced will b. 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, 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 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
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