The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-12-20
SHOP AND TRADE STUDIES
FOR BOYS.
II. ARITHMETIC OF THE OFFICE
Lesson No. 5. English Money.

Lesson No. 5. English Money.
English invoices are in hounds.
shiHingS and pence. To change the
values of English currency to the value
in dollars and cents is an interesting
arithmetical exercise. We must first
understand clearly the meaning of the
par of exchange and tie variation in
currency quotations.
The oar Of the currency of any two
counties means, among merchants,
the equivalency of a certain amount OF
the currency of the one in the currency
Of the other. suppcSing the currencies
OF both countries to be of the precise
weight and purity fixed by their re-
spective minis. Thus. according TO the
mint regulations of Great Britain and
France. 81 sterling is equal to 25.2
francs. which is said to be the par be-
tween London and Paris. The exchange
between the two countries is said to
be at par when bills are bought or sold
at this rate. When 81 in London buys
more than 25.2 francs. exchange is said
to be in favor of London. The par of
exchange between Great Britain and
the United States is 1886 2-3; that is.
81 sterling is worth s4.S6 23. Exchange
is quoted daily in New York. Chicago
and other cities at 4.S7 or 4.SI12. or 4.S9.
etc. for sight bills. and at slightly
lower rates: for sixty-day bills. These
are the two kinds of bills usually
bought. The sixty-day bills are as
good as cash when they reach Lon
don, but they are cashed at a discount
from their face values IL presented be-
fore their maturity. 1t is sufficient for
the student to understand in this con-
nection ID that the value of English
money. expressed in dollars and cents,
may vary from day to day. according
to the condition of the money market:
(2l that RI EnU1fSh inVnicp
go to a banker doing foreign BUSH
ness and buy draft on London (called
a bill of exchange), and send il to our
creditor, (S) that this draft may be
payable at sight in London. or it may
be PAYABLE in sixty days.
Find the value of ga 1Ss cd in dollars
and cents, when the rate of exchange
is ASS.
To solve this problem We must first
reduce 1sS- Cd to the decimal of pound.
This is done by changing 1Ss I'D to
pence and dividing by 240. because
there are 2i0 pence in pound; 1Ss Cd
222d; that is. 222-240D of a pound.
which is equivalent tt .925 pounds.
Then G 1Ss 6d-E4.925. and to reduce
this to dollars and cents, we multiply
1925 by the rate of exchange. which
is given as ASS. The work will be as
follows:
4a25
4.SS5
24S25
$4,000
394O0 /,
1900
24O5S625
The result is, therefore. s24.06. We |
can sa-e time in such solutions if we !
adopt what is known as the contract
IL. - 1@~.s~.
49e5
h.SS4
1900
3.9i0 !,
1874
.024
24O5S
The student win notice that the dec
imal 1885 is written backward; the
is placed under the third figure of the /
decimal of a pound-.925. We multiply |
by for the first product; by for the |
second, but in the multiplying by |
we omit all figures in the multiplicand !
to the right-thus: times . are 40, !
carry 4! times are Is and are 20;
put down 0 ard carry ,, and so on. We
simply go one place to the right in each /
it Lance to find out what to carry.
The work of reducing pounds, Shill-
ings and, pence to equivalent values in
dollars and cents can be greatly short
ened by the following rule for reducing
shillings and pence to the decimal of
a pound.
Write Cne-half of the shillings for the
first figure of the decimal, multiply
the pence by for the next two fig
ures: if tie last product is between IL
and sc, add one; if between So and As,
add =. If the shiIings are uneven, add
) to the second decimal figure.
Now let us apply this rule to our
problem. We have the following sum
in English money:
GA iSs Cd
1926
Divide the shillings by 2; this gives
us 3. Multiply the pence by and add
|, and we have %. or the complete dec
inal, .92a. This is much easier than
TO pence and dividing by 24O.
Take an example where there is an
uneven number of shillings:
G3 13s I'd
$500