The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1868-05-29
United States Currency and Ex-
change.


change. -
The currency of the United States in
denopinated 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 is somewhat unusual. 80, again,
"one hundred dollars" is written $100. or
$10O; 90, 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 illustration-say, one hum
dred dollars and TWENTY-FIVE cents, which
is written sl00.25, and 40 on, for any
The dollar formerly in use was the Spa
nish dollar, Tin silver the value Of which
was 4s. Cd. sterling. This was taken and
has since heen and eth is useG 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 4s. 3d., what is the value
in dollars of FL, or 20s.p
As. 6d.-43 shillings.
Then -4.44.4, or dolls. A cents,
and 4-10 of a cent, or mills.
Now, supposing the standard of Ameri-
lar, 1t is clear that s4.44.4 would represent
at par the value of FL sterling. But that
standard has been changed-first. by a
united states silver coinage, and then by
a gold one; 80 that now the par value is
about 81 per cent. above $4444, or s4.S6
per {: Hence. when exchange is quoted,
say 1003 to ITO in New York, it is about
part. G.. it is just as profitable to buy
exchange at that price for remittance as
it is to send gold.
II tho price be Ill to 112, it would paw
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 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 remittancos for pay
ments; ana this is done in the following
manner-for instance:
Mnat is sloo worth ,or, in currency, with
cent. premium? f1-444.44.
Therefore, f10O-444.A.
And 444.44 at 109A-s4S6. 65 in gold.
Which, at 40 per cent. premium-s6S1.3 81
in currency.
The same process gives the true result,
let the rate OF exchange and premium on
gold vary as they may. And, vice uersa,
to find the value of given amount of cur.
rency in sterling:
in New York wishes to pay B in Lon
don the value of S,600 currency in ster-
ling. Gold is 1876, and exchange 1854. How
many pounds, shillings and pence must he
send him2
s444::4 at 1Os. gives, say, s4.s2.2 in gold.
Which at SO prem.-s6.5 55S per { sterling.
Therefore, Sc 55s FL 'sll rs. 3d. am0't
to be remitted. And so again:
What is the value in sterling of 81, 900 in
United States $40 bonds, when quoted at
1113 i'll New York, with gold at 1874 and
exchange 10S?
Price Of bonds-1119, i. e., III premium.
Then 81, 900 at 11S premium-s1,115.
M S4444 at 1pS-say, $3.50 in gold.
Which at 81 prem.-$6.432 per { sterling.
Therefore, se.452 -sl7s 7s'' value of
81 900 in sterling.
The difficulty to be overcome by those
inexperienced will be with regard to tho
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
or 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