EXCHANGE. 
Ex. Reduce 2401. sterling into Dutch 
money, at the exchange of 37. 4 fls. per 
pound sterling. 
As £l : 37. 4 fls. :: £240 
multiply by 37 4 
1680 
720 
for four grotes 80 
8960 sch. 
equal to £ 448 FI. 
, which again is equal to / 2668; 
there being 6 guilders in a pound Flemish. 
The difference between the bank and 
current money in Holland is called the agio. 
Exchange is always quoted in current mo- 
ney ; but as bills are paid in bank money, a 
further operation (too easy to want expla- 
nation) is necessary to give the amount in 
bank money. 
Prove the preceding operation by reduc- 
ing /2668 into sterling, at the exchange of 
37. 4 fls. per pound sterling. Before dividing 
the former sum by the latter, which is obvi- 
ously the mode to solve the question, both 
must be reduced to a common denomina- 
tion. Thus, 
/2668 reduced to stivers is 53760 
37. 4 fls ditto 224 
And 53760, divided by 224, gives a quotient 
of 240 1. sterling. 
Hamburgh. Here, as in Holland, there 
are two denominations of money ; one is the 
Flemish, which we have already stated ; the 
other is that of marcs, shillings, and pen- 
nings lubs. 
12 pennings = 1 shilling lubs 
16 shillings = 1 marc. 
A shilling lubs is equal to two grotes 
Flemish. 
Reduce 1501. sterling into Hamburgh, 
bank money, at the exchange of 35. 4 fls. 
(Hamburgh bank money) per pound ster- 
ling. 
As £i sterling : 35. 4 fls. :: <£150 
multiply by 35 4 
750 
450 
for four grotes 50 
, 5300 
equal to £ 265 FI. 
To reduce this to marcs, multiply by 7f, that 
being the number of marcs in a pound 
VOL. II. 
Flemish , the product is 1987 marcs, 8 shil- 
lings. 
Reverse the operation, by reducing 1987 
marcs, 8 shillings, to sterling money, at the 
rate of 35. 4 fls. per pound sterling. Reduc- 
ing both sums to the same denomination, 
namely grotes, 
35. 4 fls. are 424 grotes 
1987 marcs 8 shillings lubs. 63,600 
And 63,600 divided by 424 yields 150 1. 
Ireland. The intrinsic difference between 
British and Irish money is 81. 6s. 8 d. per- 
cent., 12 1. British making 131. Irish. The 
exchange, however,- is almost always consi- 
derably higher than this. 
In reducing a sum in sterling into Irish 
the operation is easy. 
Reduce 3501. sterling into Irish money, 
at a premium of 14 per cent. The rule is, 
take the premium on the sterling amount, 
and adding the two together, the product is 
the amount in Irish money. 
Thus, to £350 
add 14 per cent., on 3501. namely. 49 
Amount in Irish...... <£399 
Reduce next 3991. Irish into sterling, at 
a discount of 14 per cent. 
It will not do to take the difference on 
the 3991. and deduct it, expecting that the 
remainder will be the sterling sum. This 
would be taking discount upon discount. 
We must go through the following opera- 
tion : 
As <£114 : o£l00 :: ,£399 
Multiply by 100 £ 
Divide by 114)39900(350 quotient. 
342 
570 
570 
00 
The above-mentioned rules apply in all 
cases where the rate of exchange is stated 
at so much per cent. 
United States. The denomination of mo- 
ney in America is the most simple of any : 
their table is briefly, 
1 dollar = 100 cents. 
A dollar is computed worth 4s. 6d. ster- 
ling, at par, therefore 40 dollars are equal 
to 91. sterling. 
G 
