The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1868-05-28
United States Currency ana Exc

| cn0nRes
The currency of the. United States ia
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 $1.00. or $1,000, though this latter
, form is somewhat unusual. So, again,
Zone huna---. dollars" is written si0O, 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 be obvious
in the following illustration-say, one hum
dred dollars and TWENTY-FIVE cents, which
is written SlOO,25, and 30 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 tho
basis OF exchange; and to this cause may
Dc attributed most or much Of the mis-
conception as to American exchange.
! y 81 be worth 9s. od., what Is the value
in dollars Of FL, or 20s.?
4s. 6d.-45 shillings.
Then - -4444, or dols A cents,
and 40 Of cent, or 4 mills.
NOW, suppoeing the standard of Ameri-
can currency to be still the Spanish dol
lar, it is clear that "a. ID would represent
at par the value of f1 sterling. But that
standard has been changed-first, by a
united States silver coinage, and then by
gold one; so that now the par value is
| about 81 per cent. above S4444 or 81 sc
per {. Hence. when exchange is quoted.
say 1U93 to ITO in New York, it is about
par. e., it is just as profitable to buy
exchange at that price for q remittance as
it is to send gold.
If the price be Ill to 112, it would pay
expenses, and per cent. to 2 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 i'll settling any price quoted from
there, or sending remittances for pay
ments; and this is done in the following
manncr-for instance:
What is f100 worth in currency, with
exchange, say, at 1904, and gold at 40 per
cent. premium? f1-444.44.
Therefore, f100-444.44.
And 444.44 at 1094-s4S6.6 .65 in gold.
Which, at 40 per cent. premium-S6S13 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 u given amount Of cur
rency in sterling:
A in New York wishes to pay B in Lon
don the value OF 5000 currency in ster-
ling. Gold is 1876, and exchange 1881. How
many pounds, shillings and pence must he
send him?
a a 4 at 10S9 gives, say, s4.S22 in gold.
Which at Sc prem.-S6 $50 per sterling.
Therefore, .e--- I'll, 81 7s. Cd, amo't
to be remitted. And SO again:
What is the value in sterling of 81 ZOO in
United States $40 bonds, when quoted at
1113 in New York, with gold at 1874 and
exchange 10S?
Price of bonds-1113, i. e., liz premium.
Then 81 900 at liz 1premium-s1,11 IFS.
$4.444 at 108-say, 81 so in gold
Which at 81 prem.-s6432 per { sterling.
Therefore, -f173 7s., value Of
Sc 432
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
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,
any one wishing to know the value of any
commodity from thence must make fresh
calculations almost daily to insure exact
ness.