tS© A R I T H 
rx. With Riga. 
Accounts are kept here in rix-dollars, grochens, < 5 cc. 
i Mark = 6 grofs or grochens = os. 3 fl fter ] jn(Tat 
i Guilder = 5 marks — 30 grofs — 1 6 j. D 
;< Rix-dollar = 15 marks = 90grpfs —4 6 J 
Exchanges’ are negociated by the rix-dollar with Hol¬ 
land and Hamburgh, in bank-money, the exchange is ra¬ 
ted by an uncertain number of grochen for a rix-dollar 
banco, and the courfe runs to 100 or more per rix-dollar 
banco. If any direct exchange be made to England, it is 
rated by an uncertain number of grochen, for il. tterling. 
Bought goods at Riga to the value of 2814 rix-dollars, 
"So grochen ; how much fterling does the fame amount to, 
exchange at 55^. fterling per rix-dollar ? 
'FirfC 2814X90+80=253340 grofs,’ and 1 rix-dollar — 
90 grofs, and 55X8 + 1=441 half-farthings. As 90 : 441 
:: 253340; or, as 1 ; 49 :: 25334 : 1241366 halt-farthings 
=2:6461. 10s. ic^-d. the anfwer. 
Remitted 646!. 10s. ip|d. fterling to Riga, how many 
rix-dollars, &c. does tire lame amount to there, exchange 
at 554ft. per rix-dollapf 
■ Firft 646I 10s. io-|-d. — 1241366 half-farthings, and 
5 5 E H. = 441 half-farthings. 
As 441 ; 1 rix-dollar 1241366 : 
1 
441)1 241366(2814 rix-dol.x 
39 2 L anfwer 
_ 9 ^ j 
441)35280(80 grochen J 
X. With Turkey, Smyrna,’ Sc anderoon, Aleppo, 
Alexandretto, &c. 
Books and accounts are kept at thefe places in dollars 
and afpers, 80 al'pers — x dollar; or in l'ultanes and af- 
pers, 120 afpers 1= 1 fultane. Exchanges are negociated 
by the afper or cara grouch, the par of the cara grouch is 
4s. 6d. fterling, and it is given in exchange for a Spanifh 
Seville dollar, or a rix-dollar of Germany, Amfterdam, 
&c. allowing a premium on the negociation as the courfe 
of exchange rules. But in general, exchanges are rated 
by an uncertain number of afpers for the dollar pefo, See. 
Bought (ilk at Smyrna to the value of 7846 cara grouch, 
42-i afpers ; how many Spanifh dollars, See. does the fame 
amount to, exchange at 125 afpers per dollar ? 
Firft, 7846x 120-^-42^=9415621-afpers. 
Then, as 125 : 1 dol. :: 9415624 : 7532* dol. the anfwer. 
An Englifh merchant bought 75324 Spanifli dollars, and 
remitted them to Smyrna ; how many cara grouch does 
this remittance amount to ? 
As 1 dol. : 125 afpers :: 75324 dol. : 9415624afpers — 
And 9415624+1 20=7846 dol". 424 afpers, the anfwer. 
ARBITRATION of EXCHANGE. 
By Arbitration, or the Comparifon, of Exchange, is to 
be underftood a method of remitting to, or drawing upon, 
foreign places in fuch a manner as (hall be moft advanta¬ 
geous to the merchant; and this is of two kinds, Simple 
and Compound, 
Simple Arbitration is when the exchanges among 
three places only are concerned, and the arbitrated price 
is fuch a rate of exchange between two of the places as 
fhall be in proportion to the rate afligned between each of 
them and a third. All queftions in this rule may be per¬ 
formed, with a little confideration, by one or more ope¬ 
rations in the Rule of Three. 
If the exchange between London and Amfterdam be 
5 3 s. 9d. per pound fterling, and the exchange between 
London and Paris be 32d. per crown, or ecu ; what is the 
par of arbitration between Amfterdam and Paris ? 
Firft 33s. 9d. = 405ft. and il. fterling = 240ft. Then, 
as 240 : 405 :: 32 : 54ft. Flemifh, per ecu. 
Aiiifterdani changes on London, at 34s. 4d. per pound 
M E T I C. 
fterling, and, on LUboii, at 52ft. Flemifli for 400 reas ; how 
ought the exchange to go between London and Li (bon ? 
Firft, as 400 reas’: 53d. :: 1000 reas: 1 30ft. and 34s. 4d. 
=4i2d. il. = 24od. Then, as4i2 : 240 :: 130 : 75-j- 7 5 5 jd. 
fterling, per milrea 
If London can remit to, or draw upon, Hamburgh at 
33s. 4d. per pound fterling, and to Holland at 34s. 2d. 
what mud be the price of exchange between London and 
Amfterdam, to be on a par with the exchange from Lon¬ 
don to thofe places ? 
Firft, 1 dollar of Hamburgh — 2 marks =32 fchillings 
lubs — 64d. Flemifh. Alfo 33s. 4.d. = 40od. Flemifh, 
and 34s. 2d. — 4iod. Flemifh. As 400 : 410 :: 64 : 65^ 
grotes or pence Flemifli, the anfwer. 
When Amfterdam can remit to London at 34s. 2d. per 
pound fterling, and Hamburgh at 65-id. per dollar, what 
muft the rate of exchange be between London and Ham¬ 
burgh, to be upon equality with the other two ? 
Firft 65 X 5 + 3 = 3 2 S and 4 ioX 5 = 2 ° 5 ° fifths of pence. 
As 328 : 64d. Flem. :: 2050 : 400c!. Flem. =: 33s. 4ft. 
Flemifli, the anfwer. 
If Hamburgh draws on London at 33s. 4d. Flemifli per 
pound fterling, and on Amfterdam at 65-id. per dollar, 
what will be the arbitrated price of exchange between Lon¬ 
don and Amfterdam ? 
Firft 65X54-32=328 fifths of pence, and 33s. 4ft. — 
40od. Flemifh. Then, as 64 r 328 :: 400 : 2050 fifths; 
then 205o~52=4iod. — 34s. 2d. the anfwer. 
Suppofe London remits to Paris at 344ft. per crown, and 
draws for the value upon Amfterdam at 35s. lod. per 
pound, but when the order arrives bills on Paris are at 
35§d. per crown; what rate nuift the exchange to Am¬ 
fterdam be, to make up the advance that would attend the 
remittance aforefaid ? 
Firft, 35s. iod. = 4 3 od. alfo 3 4fd. = 279, and 3jfd. = 
283 half-farthings. Recip. as 279 : 430 :: 283 : 42 3 |-|4d. 
= 35s. 3 |d. -f- the anfwer. 
If London remits to Genoa at 53§d. per pezzo, and 
draws upon Spain at 43d. per piaftre, but before the order 
be fulfilled bills on Genoa aveat 55|d. per pezzo; at what 
rate muft London draw upon Spain to make the remittance 
equal to the draught > 
Firft 53 X 8+5=429, and 5 5 X 84-5=445 half-farthings. 
Then, as 429 : 445 = 43 : 44^1^.=3 s. 8Ad.-j-the anfwer.. 
If England remits 2200 ducats to Venice at 5 2d. per du¬ 
cat, and draws for the value upon Spain at 44d. per piaf¬ 
tre, and when the order comes to hand bills on Venice 
are at 584ft- at what price muft England draw upon Spain, 
to make the remittance equal to the draught ? 
As 52 : 584- :: 44 : 49|-d. the anfwer. 
The proof of this appears from what follows : Firft, if 
1 due. : 52d. :: 2200 due : 1 i44ood. = 476I. 13s. 4d. the 
amount of 2200 ducats according to the order. Next, if 
44d. : 1 piaftre:: 114400ft. : 2600 piaftres, the anfwer. 
Then by the courfe, 2200 ducats at 584ft. 
If 1 due. : 584d* :: 2200 due. : 128700ft. =5361. 5s. 
If 494ft. : ip- :: 128700ft. : 2600 piaftres, as above. 
Thus it appears that remitting to Venice at 584ft- per 
ducat, and drawing upon Spain at 494 * 1 - per piaftre, comes 
to the fame number of piaftres, as remitting at 52ft. and 
drawing at 44ft. according to the order. 
If England owes a fum of money for corn at Dantzic, 
and if Dantzic can draw on England at i6f florins per 
pound fterling, and on Holland at 280 grochen per pound 
Flemifh banco, the queftion is, whether it will be more to 
the advantage of England to make payment in Holland, 
or allow Dantzic to draw for the money direftly on Eng¬ 
land, fuppofing the exchange to Holland at that time to 
be 35 s - 9 ^fi- P er pound fterling ? 
Firft 164 florins X 3 °= 5°4 grofs. Then, as 280 : 20s. 
:: 504 : 36s. Flemifli for il. fterling; but, as the courfe 
from Holland to Dantzic is only 35s. 9^-d. it would be 
more advantageous to make payment direftly to Dantzic, 
by about one-half per cent, fterling. 
Jf A -at London 9\ve$ B at Peterlburgh 5000 rubles, and 
i 
