The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1868-05-30
Uns,od states Currency and rr-

| United States Currency and Ex-
3 ~ ~. 80 o.. nhaHGe. - z .sYtf4s
: This cu5rency Of the United States is
denopinated decimal currency, the dollar
Represented thus 81 being the unit; and
on this basis all !caiculat ti2nsl are lpFds.
One dollar eonaists Of 100 cents, and each
81 or $t.00, or $1,000, though this latter
form is somewhat unr6ual. So, again,
Zone hundred dollars" 10 written 500, or
the two ciphers are added, as in the latter
case, they must be eprsaxed by the deci-
in the following illustrei ion-say, one hum
dred dollars and tventw-five cents, which
is written $1,000 end so on, for any
The dollar formerly in use was the Spa
nish dollar, Tin silver, the value OF which
vas 4. g. g 90; steriing This Was tszen and
basis Of exchange; and to this cause may
be attributed most or much of the mis-
conception as to American exchange.
. II 81 be worth 4s. 6d., what is the value
in dollars Of Ell, or 20s.2
As. 6d.--43 shillipgs. y, III
.!.rhsa -4.44.4, or dolls. A cents,
and f. 10 Of o cent, or 4 mills. ~
Now, suppoeing the standard OF Ameri-
can currency to be still the Spanish dol
lar, it is clear that "a. .44.4 would represent
at par the value os Si sterling. But that
United States silver coinage, and then by
o gold one; 80 that now the par value is
about Of per cent. above s4.44.4, or s4.s6
per 6. Hence. when exchange is quoted,
cay 1904 to 110 in New York, it is about
part. e., it is just az profitable to buy
exchange at that price for a remittance as
it is to send gold. ar--
II the price be Iii to 112, it would pay
expenses, and per cent. to per cent. in
addition, to send gold; but if below 1O9k,
there would be loss 4 shipping gold.
All exchange is calculated upon o gold
basis, but at the present time the usual
business Of the United States ia 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 109i, and gold at 40 per
cent. premiump f1-444.44.
Therefore, f100-44444.
And 44.A OF 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, uice uersa,
to find the value Of o given amount OF 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 1856, and exchange 1881. How
many pounds, shillings and pence must he
s444.4 at 1851 gives, say, "a. "a in gold.
Which OF SO prem.-s6.558 per sterling.
Therefore, 0oo --sl, ,s11 rs. 3d., amo't
to be remitted. And 80 again:
What is the value in sterling Of 81 900 in
United States $40 bonds, when quoted at
1113 in New York, with gold at 1874 and
exchange 1882
Price Of bonds-11l4. i, e., III premium.
T5sn e IA q 200 90 ss l s a0 n n1d 15
Which at 81 prem.-s6.4s2 per { sterling.
Therefore, N,lao -s17s 7s., value of
81 900 in sterling.
The difficulty to be overcome by those
inexperienced win beewith regard to the
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, q correct
answer to any query % to exchange can at
once be wrought out by the above.
AS all articles of American produce are
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
commodity from thence must make fresh
calculations almost daily to insure exact
ness.