The WORLD’S EXCHANGES 1898 BY .lOHN HENEY NOEMAN Dectnnber, 1898 A EECKONER OE FOREIGN ANE COLONIAL EXCHANGES A EECKONEE FOREIGN & COLONIAL EXCHANGES SEVEN CURRENCY INTERMEDIARIES FOB THE TRAX^ELLER, TRADER, AND FINANCIER The Princi2)les and Practice of Money brought n'iihhi the range of Pujnh at Secondary and, Continuation Schooh. BY JOHN HENRY NORMAN MEMBER OF THE LONDON CHAMBER OF COMMERCE, EXPERT IN THE SCIENCE, OF AND PRACTICE WITH MONEY, AUTHOR OF “THE UNIVERSAL CAMBIST” OF 1897, TO WHICH THIS PAMPHLET IS AN USEFUL ADDENDA. TO BE OBTAINED FROM Messrs. SAMPSON LOW, MARSTON & CO., FETTER LANE, E.C. Messrs. P. S. KING & SON, 9, BRIDGE STREET, WESTMINSTER. Messrs. EFFINGHAM WILSON, ROYAL EXCHANGE, E.C. Mr. E. STANFORD, COCKSPUR STREET, CHARING CROSS. Messrs. G. P. PUTNAM’S SONS, NEW YORK. 1898 [A/Z rights reserved—Entered at Stationers’ Hall] Price Is. 6cl. net. :A J . rr r^:; _ LONDON; ieistbd by gilbbht and kivinqton, limited, sr. John’s houbk, clkhkenwell, e.c. PBEFACE. I EAKNESTLY invite the most serious attention, with unbiassed mind, of everyone—especially rulers, statesmen, legislators, and economists—to this analysis of the world’s prices and foreign and colonial exchanges of intermediaries; and to the simple arithmetical demonstration to travellers, traders, and financiers of their ^effects upon the interchanges of things between man and man and community and community. Sound bases for the construction of monetary systems cannot be expected from those who are totally ignorant of the know¬ ledge possessed both theoretically and practically by the magnates of the money power of the world. Striking evidence of this can be seen in the first 8393 questions put to and ^ answered by twenty-five examinees, of whom ten were either past or present servants of the State, nine were traders and producers, and six were financiers and bankers, before the India Office Committee upon schemes for providing an effective metal ^onetary system for British India. Lord Eothschild’s evidence, under 133 interrogatories before this Committee, of what financiers have done and can do, of what Governments can and cannot do, and what British India’s trade could possibly do or not do, with the absolute requisite of what it must do to provide and keep an effective gold standard, are a few scientific truths among the evidence given under the remaining 8260 questions in the first blue book of 319 pages. I repeat the suggestion with which I closed my pamphlet upon “British India’s Future Standard Currency ” :—“ Whether it is not a pressing need on every one who has the mind for it, especially statesmen and legislators, to do their utmost to probe to the bottom and discover a sound foundation for the world’s interchanges of things, and a corrective to the injustice arising from the machinery at present in use ? ” 22, Lee Terrace, S.E. December 2iid, 1898. CONTENTS. Theory and practice of the chain rule. Object of the pamphlet. Suggested method of teaching. Scientific manner of quoting exchanges. Tables I. and II. Tlio necessary tools for working the world’s exchanges of gold for gold, or for silver; and of silver for silver, or for gold. ,, III. Fixed gold pars. „ IV. „ silver „ . „ V. Gold for silver ...... „ VI. Silver for gold . Meaning of Times' quotations ..... The whole world's single intermediary automatic gold Method with currency exchanges .... ^Monetary signs for weights ..... Absolute metal pars ...... Absolute currency pars. A world-wide gold intermediary, illustrated in travel, and finance. Present seven currency intermediaries Condition of a scientific intermediary Factors in the world’s present prices and exchanges mediarics. Ratio between silver and gold .... Automatic gold for automatic gold . „ „ „ silver „ „ for silver, &c. „ „ for inconvertible paper on gold Effect of a coinage charge. Inconvertible paper on gold for inconvertible paper on gold „ „ silver .... „ „ „ for inconvertible paper on Direct and indirect exchanges of intermediaries Conclusion. Fixed gold and silver pars ..... Opinions on some of Mr. Norman’s works . commerce of inter- gold 10 10 11 12 U lo 1 () 17 17 19 21 23 2t) 28 30 33 3(5 38 39 40 41 41 4(5 . 47-o4 (at the end) THEORY AND PRACTICE OF THE CHAIN RULE Compound arbitration or compoiincl proportion, called the chain rule, which has existed from the time of Euclid, is better known and more widely practised on the Continent of Europe than in the British Isles. It is particularly valuable in the exchanges of currency inter¬ mediaries, and highly serviceable in calculations of the exchanges of other things, especially where currency intermediaries form a part of the equations. Facility of use of the chain rule depends on a quick discernment of the accurate formation of the chain to arrive at a true result of the given problem. The statement of the problem consists of two columns. The first line of the two columns states the question to be answered, the second line must begin with the same description of thing as the first ends with, and so on. Let us analyze the following problem ;— The expense of supplying 2780 street lamps with oil amounted in eight months to 6800 dollars, the cost of the oil was 12 dollars per cwt.; what will be the expense of 4777 lamps for months in British money, the oil being at a cost of 20 dollars per cwt.? The British pound is 113*0016 grains of gold, the American dollar is 23*22 grains of gold. The question is what is the cost of oil in British pounds for 4777 lamps under given conditions. The first line therefore is,— ? (pounds) = 4777 lamps ; the second is the number of lamps for which 6800 dollars is paid,— lamps 2780 = 6800 dollars ; 2 The Chain Rule the tliird is the dollars paid for the first purchase of oil,— dollars 12 = 1 cwt.; the fourth is the second price in dollars for a cwt. of oil,— cwt. 1 = 20 dollars; the fifth is the conversion of dollars into pounds,— pound grains of gold 113 0016 = 23-22 grains of gold, dollar; the sixth is the two periods 8 months and 7.^ months,— months 8 = 7-o The fifth equation might with equal accuracy be,— Dollars 4-8066 = 1 .€ It would give the true chain sequence, but would hide the weights. To arrive at the answer the multiplication of the figures in the left hand column forms the divisor, the multiplication of the right hand figures forms the dividend, the quotient is the answer. Since the cost of the oil for eight months is given in dollars, the 1 \ months will figure in the right hand column and €ight months in the left hand column. The following is the statement of the chain ; — ? (pound.*!) = 4777 lamps lamps 2780 = 6800 dollars dollars 12 = 1 cwt. cwt. 1 = 20 dollars grains of gold 113 0016 = 23 22 grains of gold months 8 = 7-6 months 1 i 11-61 2-6 4777 X X 1 X X /jf-XX X Ti 2780 X 12 X 1 X X 66-6)008 / 1 — £3761-60 “ The Elements of Arithmetic,” by P. Ghosh, in use in Indian schools and colleges, reached a twelfth edition in 1888. In this work the chain rule is made much of. Schonberg’s chain rule in English is a useful little tract, and can be obtained at Messrs. Effingham Wilson & Co.’s, Royal Exchange, for one shilling. It is the only entry upon the subject under the head of “Arithmetic” in the British Museum catalogue. Object of the Pamphlet The Mech-vntsm of the World;: Present Prices, and of THE Foreign and Colonial Exchanges or Inteumediakiks. I hojK' uiy exposition may justity the title which I have given to this most important sot*iologioal question. Then' an' divers local prices of things. In the interest of backwanl conntries, calico, tea, or other substances, an' used as inter¬ mediaries to facilitate the intendiangi's of things, and the substance thus used does the work of money as an equivah'ut — not as a token—in the exchange. Harter is the direct exchange of one thing for another. No intermediary is used in barter. All economists admit that barter is, or should l>e, the basi.s of all interchanges of things. My purpose is to prove by very simple arithmetical formula (1) that if the world possessed but one substance as its measure of value and equivalent in exehangi', the world’s interchanges of things could be (>tVected on tlu' conditions of barter. (2) That there are in the trading world at the present time seven difterent monetary and eurnmey intennediaries, five of which are of a vastly dillerent nature. (3) That these seven difterent intermediaries produce forty- two difterent prices of intermediaries, some of which either confer a bounty or impose a tax in international or intercolonial interchanges of things, resulting in the unfair encouragement ol' production of things in some countries and the handieajq'ing oi’ industries in other countries to an extent which can be nuiasured by heavy percentages. In 1887 I was j'riviloged to address a meeting under the auspices of the London Institute of Hankers at the London Institution upon the metallic bases of the colonial and fonu’gn exchanges and tlie simplification of exchange. The chainiian of the meeting was at that time a w X 240.. ■ Pe’ico 15 X 240 1,800 ■ 27-(51 = 65 pence nearly = 6 . 0 . odr By the chain rule. The statement and sum are— ? (pence) = 1 lb. lb. 2-2 = 1 kilog. kilog. 1 = 15 francs francs 25-1 = 240 pence The Chain Rule 3 120 1x1 X X U9( xy X 1 XXX / M rv02 = 6-V1938 pence being -0063 moi'o than 05 1 \, pence.— : Ans. On page 20G tliere is another example— “Example i. If the exchange between London and Amster¬ dam be 36 shillings Flemish per £ and between Paris and Amsterdam 2 fr. per 3.s\ Flemish, how much must be remitted to Paris by way of Amsterdam to pay a debt of 20,000 fr. ? I’ind also the rate of exchange between London and Paris. We have— 1 franc = 5 *- FLmisli I.. 3} ■; rZ Is. 3{^(/. Is. Ud. 2 s. 7^d. 2 s. O^d. H,%d. ]3{rZ. l8'97fZ. Idl p. C. The above are seventeen quotations of exchange from nine European countries, three South American countries, and five from four Eastern countries on London. The quotations for eight European countries are in the currency of each of those countries for the British pound; the remaining one is in pence for a milrei. All the rest are in pence for the standard unit currency of each country. The three South American ones are inconvertible paper based on gold for pence. The two Indian ones, silver-cum-counter charge—i.e. fictitious rupee— for pence. The three remaining Eastern ones are automatic silver for pence. Eight of the nine European quotations are scientific; all the rest are not so. These eight are scientific because it is a variable rate in the country originating the table I. Mint-issue weight of pure gold and pure silver in the world's immediate past» nresmit -inrl nonoy of account. Il. -Name of money of aocomit and weight of pure metal in decio-’rams ^ TIT i ' money of account. ll. -iName ot money or account ami weiglit of pure metal in deci(rrnm« moneys of account. Col. T. -Chief country using the indicated by a minute portion of each chief money of account. V.-Monetary simis h.r |‘;—^ame and weight indicated by tokens. I\.-^ame and weight silver. The constants in the gold table must be divided by the price of silver of the dav toTve “Constants for ascertaining the ratio between gold and of the silver price of gold of the day, and the answer will be the ratio. ^ ^ constants in the silver table must be used as a divisor gold. I. II. III. Pet'ig^raius. PeciCTams. I. Egyptian .. pound 74-375 piastre .. •744 w.W ■074 II. British „ 73-224 shilling .. 3-66 penny .. .., 1 ^ •305 III. Turkish 66-146 piastre .. -j ’ •66 • • tAo- ■016 IV. Portuguese.. milrei 16-257 testoon .. •16 • • tAs •016 V. Uruguayan.. peso 15-5(5 centesimo . . j ’ „ •155 VI. United States, X.A.‘ dollar 15-046 cent . . . . ,, •15 VII. Argentina .. peso 14-516 centavo .. „ •145 YIII. Brazilian milrei 8-218 10 reis . . „ •082 1 • • • • Tft’off •0082 IX. Russian rouble, old'' 11-61 kopeck .. jiff •116 „ new 7-74 » • • » •077 X. Japanese yen, old'* 15-W sen .. .. „ •15 ,, new 7-5 » .. .. „ •075 XI. Dutch guilder 6-05 cent .. .. „ •0605 XII. Chilian peso, old'* 13-72 centavo .. ‘ „ •137 condor, new • 5-49 » • • V •0549 XIII. British Indian rupee, old '7-127 anna -594 pie . •037 ,, new>> 4-88 e „ '305 „ „■ •025 XIV. Scandinavian crown 4-03 ore .. .. jiff •0403 XV. German mark 3-584 pfennig .. „ •0358 XVI. Austria-Hungarian florin, old 7-258 kreutzer .. ,, •0725 crown, now-b 3-049 heller . . „ •0304 XVII. France franc 2-903 centime . . „ •02903 IV. och-el-gnerches penny ,. ^i para ,. .. j centesimo cent.. centavo kopeck sen .. cent.. centavo pie .. ore .. pfennig kreiitzer heller centime 004() 0047 0041 0041 OOoO 0047 (X)4r, 0041 007:25 0048 00086 00468 00378 0085 00343 0046 0032 0050 00448 0091 0038 0036 V. 13'44 och-el-guerches 3 28 ponce .. 60 47 paras . . 61'51 reis 6'43 centesimos 6'65 cents . . 6‘89 centavos 121-69 reis 861 kopecks 12- 92 „ 6-66 sens 13- 33 „ 16-53 cents . . 7 28 centavos 18-21 2- 24 annas .. 3- 28 „ . . 24-8 ores . . 27'9 pfennigs 13-77 kreutzers 32-8 hellers. . 34-34 centimes 629-24936 942-9955 4841 6490 615-11646 642-61198 2067-1834 688-8888 1216-8733 367-367 551 -050S)5 250- 500- 1653-4391 728 454 1820-902(5 2(51-827 382-29546 1240- 1395-00213 688-895 1(540- 3444-4444 vr. och-fl-gnerchcs pence piastres milreis pesos milreis kopecks yens guilders pesos condor.s crowns marks crowns II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. XIII. Trade Mexican Japanese Javanese .. Philippines. . Columbian, U.S. Bolivian Russian Siamese Austria-Hungarian British India Persian tael* dollar t peso* yen rix dollar* dollai- sol boliviano* rouble tical*- florin rupee kran* 334-02 244-94 244-41 242-61 236-25 233-(54 225-00 202-50 179-96 146-64 111-11 106-92 41-43 I 10 cash j cent .. I centavo j sen .. : cent .. kopeck phai-nung kreutzer T-iff 3-346 TsV? -334 2-449 „ 2-444 „ 2-426 3" '945 2-336 „ 2-25 2-025 „ 1-80 •,V 4-58 yU Ml -556 h 2-07 cent . . centavo sen .. cent.. centesimo kopeck solot kreutzer pie . . dinar 13*53 038 038 0379 0365 035 0316 056 036 0347 0348 0414 2-99 cash 41 cents .. 41 centavos 41 sen 42 cent . . 43 „ .. 44 centesimo 49 55 kopeck 22 phai-nung 1 kreutzer 8 pies 48 shahis . . 1-1200023 tael •826 dollars (trade) •914994 pesos 4570(K) yens 328443 rix dollars 800906 dollars 4.1444 sols '382716 bolinanos '04185 kopecks -042830(5 ticals florins •0909090 rupee 111111 kran ■t The coinage of this dollar hab ceased. The present operative silver moneys of account are marked with an asterisk (*). The Worlds Gold and Silver Standard Moneta Go). L- Name of cliief country using the moiiov of chief money of account IV. ami V.--Weights of purd pure metal in eacli cliief money of account. I. ir. III. IV. V. Vf. VII. VIII. i-'Kypt .. llritisli . . Turlfey .. Portugal I'ruguay United States .\rgentina lira/.il . . IX. X. XT. XII. Kussia . . Japan Holland .. Chili XIIT. British India XIV. XV. XVI. Scandinavia Germany Austria-Hungar XVII. France I. China 11. Trade . . Til. Mexico .. IV. Japan .. V. Java .. VT. Philippines VII. Columbia, U.S.. . VIII. Bolivia . . IX. Russia X. Siam XI. Austria-Hungary XII. British India XIII. Persia .. pound peso dollar peso milrei rouble new „ old yen, new. old . guilder . condor . peso, old . rupee, new » old crown mark crown, new florin, old franc 'I’loy l;il-]74!)-;H ]:2J-2r-M7.S 111-3 798 -JT-Zmo 2fi-18K7 24-8908 13-83487 13-273891 19-910817 12-8(i029()4 10-370342 9-24337872 23 3.34.3 8-218312 6-9141 (5-14.78 3- 227761 (5 12-14615)3 4- 978128 TABLE ir. RY Systems in the Weksht.s used nv Great Britain anj) the United States or North A,aier.ic\, -•count. II.—Name of chief money of account. HI.—Aliiit issue of gross and fine weights of metal in each metal indicated by poi-tions of each chief money of nccount. VI.—Monetary sign for one troy grahi of tael * . . dollar peso * yen rix dollar * dollar .. sol boliviano * rouble tical florin rupee kran * Troy tains. 114-778088 113-001(;03 102-079887 23- 088324 24- 013034 23 22 22-401743 12-681937 11 -9463019 17-!>I!)7,36 11-3742(56 2.3-148.732 f)-.33348 .^-4731 l.-kS 21-1809 7-3.3344 11 - 6-22274277 .3-3.‘51.34- 4-704!,t864 11-201.77 4-480339 piastre ochr shilling penny piastre para testoon rei centesimo cent centavo 10 reis 1 reis kopeck cent centavo anna = ore pfennig . neller centime . 'Troy grains. i-i-i -11 ]-(l21 -023 -(')23 -24 -232 -224 -126 -012 -119 -093.3 -0847 166 1 pie , I -039 -0622 -0333 •0470 V. 1 VT. 1 ofh-el-guerehes Troy grains. i',i ‘0071 8-712464 och-el-guerclies ponny -007.3 2-123863 pence 1 para .. \ -0064 39 1848 jtaras I Wi . „ -0062 39-8.78849 reis ! cijntesinio -0073 4-161038 centesimos ; oont .. „ -0072 • 4-3()6632 cents j contavo ., -0070 4 46393 centavos I yusi .i -0063 78-832148 reis kopeck I'o -0074 8-334803 kojiccks „ -0072 8-63983 sens cent .. » -0062 j 10-714112 cents centavo „ -0033 ; 11 -798.332 centavos 1 J -0049 ; 2-123863 annas i ,, '0077 ' 16-07014 ores pfennig : heller , „ -0069 j „ -0038 1 •18-078906 pfennigs 21-234048 heller.s I centime „ '0036 i 22-31964 centimes 420- 417-7847 416 - 383-8087.7 400-(i233 383-8(54(59 347-2278.3 308-.j80(5 196-.72.31 ]80-(X>0 71-04 grains. 316-40.7842 378- .377-18098 374-4 .3(54-38923 3(50-3(528 34r2278 312-40.3046 277-7221 226-;400fX)8 171-4708 163- (5.3-936 Troy 10 cash 1 cash cent centavo son cent centesimo kopeck phai-nnng Ifreutzer . . ^ ^ anna = 10-31 pie t ). „• shuliis grams. 3-164 •31(5 3-78 3-77 3-74 .3-(54 3:(5(}3 3-47 3-124 2- 777 7-072 1-714 •8.79 3- 1968 cash cent cent The present “penitivo silver moneys of account are marked with ; conte.simo kopeck solot .. hreut/.er pie t asterisk (♦;. V. i VI. Troy grains. 1 -0643 1 . 1-93646 cash ■ • -0.790 1 -2643 cent ,, -0.789 1 -26312 centavo „ -038.7 j -2(5709 sen • • ,, -0363 ' ' -2743 cent •2773 •• „ -0.742 1 •2880 • • „ -0488 : •3200 • ■ Tt'a -f)8(57 ; •36007 kopeck „ -033 ■1409 phai-nung • • » '0333 •3830 Krentzer i*E -0.7.87 i 1-I636 pies s • • -0199 ! •3128 shahis Fixed Gold Pars 9 transaction for a fixed rate in tlie country operated upon. The British rate on eacli of tliese countries should be variable pence for each country’s chief money of account. Each of the nine other quotations should be a variable quantity of each country’s intermediary for the l^ritish pound. For instance, •take the quotation in Yokohama, 24.^ pence: it should be 9*79 yens for one pound ; thus — 240 pence iM--*) = {(-ro yens. Ans. The following Tables of fixed pars of exchange will be found of considerable use in determining the meaning of exchange quotations:— • Fixed pars of exchange arc different countries’ monetary signs for the same weight of the same pure metal. TABLE III. Fixed Gold Pars. Col. I. Name of country and chief money of account. Col. II. Each country's monetary sign for the weight of pure gold in the sovereign at mint issue weight. Col. III. Briiish monetary sign for each chief gold money of account. Col. T. Col. 11. Col. Ill. I. Egypt, pound 9K-4o piastres 243-773 pence = £1 Os. 3^(7. 11. Turkey „ 112-44 „ 216-804 „ = 18s. 0] 3(7. III. Portugal, milrei .. 4-o7 milreis 03-278 „ IV. Uruguay, peso . . 4-78 pesos o]-(X)o „ V. U.S.A., dollar .. 4-8()(5 dollars 49-3 lo „ VI. Argentine, peso .. •t 123 pesos 47-o78 ,, VII. Brazil, milrei 8’91 milreis 26-936 „ VIII. Russia, rouble 9-46 roubles 26-373 „ IX. Japan, yen 9 76 j'ens 24-682 „ X. Holland, guilder.. 12-11 florins 19-823 „ XI. Chili, condor 13-33 condors 17-997 „ XII. Brit. India, rupee 1 !)• rupees 16- XIII. Scandinaida,crown 18-I6 crowns 13-216 ., XIV. Germany, mark .. 20-43 marks 11-747 „ XV. Austria, crown .. 24-02 crowns 9-992 „ XVI. France, franc 25 22 francs ' 9-616 „ In presenting fixed silver pars of exchange as they existed before 1873, it is possible that in more than one instance they may become operative in the future. 10 Fixed Silver Pars TABLE IV. Fixed Silver Pars. Col. I. Name of country and chief money of account. Col. II. Each country's monetary sign for the weight of pure silver in the British Indian rupee at mint issue weight. Col. III. British Indian monetary 8i"n for each chief silver money of account. Col. I. 1 Col. II. Col. III. I. China, tael j 3Ii)'d cash o0-07o annas. II. Mexico, dollar or peso 43'7-I centavos 36-r)7r) „ III. Japan, yen . ' 44'07 sens 36-305 „ IV. Java, rix dollar cents 35-353 „ V. Philippines, dollar 4o-7(> „ 34-963 „ VI. Columbia, U.S., sol . . 47'o:I centesimos i 33-670 „ VII. Bolivia, boliviano r,2-S0 „ : 30-303 „ VIIT. Russia, rouble .. d9'41 copecks ' 26-930 „ IX. Siam, tical 23-32 phai-imngs ■ 21-945 „ X. Austria, florin. 9()-22 kreutzers 16-627 „ XI. Persia, kran 2-o8 krans 6-190 „ TABLE V. Coi.1) FOR SieveH. Col. I. Name of silver system. Col. 11. Constant attached. Col. III. British par price of each silver money of account at a ratio of 33 3I parts of silver to 1 part of gold. Col. I. Col. 11. Col. JII. I. China .. 1096-773 32-92rf. IT. Mexico 801-081 24-05d. III. Japan . 795-172 2S-87d. IV. Java . . 774-338 2S-24d. V. Philippines. 765-782 22-99d. VI. Columbia, U.S. 737-465 22-14d. VI1. Bolivia . 663-717 19-9Sd. VIII. Rus.sia 589-843 17-70d. IX. Siam . . 480-648 14-43d. X. Austria 364-181 10-96d. XL British India 350-437 10-52i. XIT. Persia. . 135-791 4-07d. As an instance of absolute metal pars, silver for gold, take tlie British Indian silver rupee price of each of the world’s sixteen chief gold moneys of account at the ratio of 33*31 of silver to 1 part of gold. Silver for Gold table vt. Silver for Ooliv Col. I. Name of gold system. Col.^I. Constant attaolnHl in decimals of a rupee. Col. III. Price in ruix’^s or annas obtained by multiplyii\^ the constant by tlie ratio, which is taken at .'VV.'ll. Col. I. I. E^OTt . . II. Britain .. III. Turkey . . lY. Portugal V. Umguav VI. U.S.A. *. . VIT. Argentina VIII. Brazil . . IX. Russia . . X. Japan . . XI. Holland XII. Chili XIII. Scandinavia XIV. Germany XV. Austria . . XVI. France . . Col. 11. Col. 111. 2J17 rniH'os. •(vSb*>S . mis,in ‘JO-Ol .. •IolW 1 olVt .. •l-bV)4({ JS.-) „ •I40riv 4-(iS .. 4-.Vi .. •oriisbi 1>7)(5 .. •ori>4a't LMl .. •071471 .. iVsVxk* 1 [ 1 -ss .. •().■) l;t(>4 I 1 1-71 .. •0:t771J ' l-'M .. 110 .. •Ol’Solo •0L>71ot 14-4’7' The chief factor in each of the world's seven pr(‘sent monetary and currency intermediaries is weight ; a weiglit of gold or a. weight of silver in each of twenty-five chief moneys of account on issue of the world’s respective chief current coins from the mints; also the weight of pure metal indicated hy tokens com¬ posing each chief money of account, as the penny the ‘240tli of a pound, 1 centime the 100th of a franc. Table T. presents these weights in decigrams ; Table 11. in troy grains. Besides these weights, each table presents a most valuable and important factor in the monetary sign in each system for 1 decigram or 1 grain of pure metal. The third most necessary and potent factor is the constant attached to each system in Col. VI. of Table I., by the use of which the daily fluctuating ratio between gold and silver can be easily determined. The monetary sign for 1 decigram or 1 troy grain of pui'c metal is of high value in use in two directions : as a divisor and as a multiplier. As a divisor it determines the weight 12 Meaning of “Times” Quotations indicated by a nionetary sign. As a iiiultiplior it confers a monetary sign upon a given weiglit. I. As a divisor: rates from the Timrff, October 18tli, 1898. Kxelianges on London. (o) Paris cheques 25 f. 32 c. What does this mean ? On Table II. the monetary sign for 1 grain of gold attached to France is 22‘319G centimes (100 centimes in a franc). The sum is— X 100 = 113--I43 grains of pure gold.—Ans. By reference to Table 11. we find that the weight of pure gold in the sovereign is IBbOOlO, and rightly conclude that the quotation ineans francs and centimes for one pound. This shows that the Paris rate for cheques on London is at '39 per cent, premium on par, weight for weight. By reference to Table III., ii.xed gold pars, against France will be foxmd 25-22 francs for one pound. The quotation 25-32 shows -39 per cent, premium on par. {b) Italy, sight, 27 lire 49. What does this mean? The terms lire and franc indicate the same weight of metal, namely, 4-480359 troy grains of pure gold. 100 centesimi make 1 lire. Tlie sum is— 27-49 X 100 22-;U90 = 12;M(i.'j grains of pure g .Id.—Aus. 27 lire 49 centesimi being the rate upon London, this is tlie rate for one pound. This shows that the Italian rate is 8-9 j)er cent, above h.xed par. This indicates that the intermediary Consists of inconvertible paper based on gold to the extent of 7 per cent, premium in paper upon gold, since the cost of the transmission of metal would not perhaps exceed 1 per cent. Lire and franc being terms for the same weight of gold, we turn to Table III., and against France find f. 25*22; this deducted from 27-49 shows 8-9 per cent, upon the lower figures. {(•) Slianghai T.T. 2-. What does this mean? It means that someone in Shanghai has bought oris prepared to buy or sell a telegraph transfer on Ijondon at the rate of 2.V. 71(1. to be paid there for 1 tael paid in Shanghai. It is in its order an exchange of silver for gold, and not the other way Meaning of “Times” Quotations 13 round, an exchange of gold for silver. The scientific, common- sense. and straightforward quotation, therefore, is taels per pound. The sum is—- iMOr/. 31 = 7-.l;5 taels per pomul. Let us look this way at it, and afterwards in the jn-eseiit mode of quoting and working. The tael is olGTOoS grains of silver; the pound IIS’OOIO grains of gold. The ratio between the metals in London, 33-ol of silver to 1 of gold. "What ratio is yielded between the metals by the Shanghai price of the pound ? The sum is— J — 34-41 ratio of silver to 1 of gt>l(l. -.Ans. Tlie London ratio is 33’31 to 1. The difference between 33-31 and 34‘41 is 3-3 per cent, on the smaller amount. This is a premium of 3‘3 per cent, paid in Shanghai for the London equivalent at the ratio of 33-31 to 1. Now we will look at the transaction as it is quoted, viz. a fixed rate in Shanghai for a variable rate in London. The weight of gold indicated by 31|(7. is 16-008 grains of gold. The sum is— 3l-7o£f. 2-1238f/., i.e. sign for 1 grain = 1(5-008 gi-ains of gold. olO-lOoS grains of silver 10-008 grains of gold = 32-20 of silver to 1 of gold.—Ans. The difference between 3-2-26 and 33-31 is o-2r) per cent, on the smaller amount. By reference to Table V., gold for silver, against China 32-02d. is found as the equivalent British price for 1 tael at 33-31 parts of silver to 1 part of gold. This shows that London gives 3-1") per cent, less than absolute par for the tael. {d) Calcutta T.T. What does this mean ? As this means either a genuine silver rupee price in Calcutta for a portion of a pound sterling, or a fictitious rupee price for the same sum, first try whether it is a genuine rupee price by finding how many grains of gold the quotation indicates. If};") grains of silver in a rupee. lo-937o(7. -f- 2-123863f/. = 7-o0 grains of gold. 14 All Interchanges by One Medium Take tlie ratio between the metals at 33-31 of silver to 1 of gold. Then— 7-0 X 3.3-.31 , —' = I'upoe Tol.—Ans. We find it is a fictitious rupee, carrying a fictitious value of 50 per cent. liy reference to Table V., against British India the equiva¬ lent pence for 1 rupee at 33*31 to 1 is 10-52d. 15-9375d. shows that upon 10*52d. the premium is 48*2 per cent. The use of the monetary sign for 1 grain of pure metal is shown here as a multiplier. What is the British equivalent to 1 rupee at 33*31 to 1 ? The sum is— l( 5 o 4 - X 2-1238().3f/ = 10-o7h.- Ans. These fixed pars between the 17 gold systems and between 12 chief silver coins will be found on pages 47-54. These fixed pars in a chain rule sum are worked on mint issue weights of pure metal, gold or silver. The fixed par of exchange between the British Isles and France is 9*515 pence, and the link in the chain would thus appear— grains of gold 113*0010 = 4*4804 grains of gold Absolute Pars i7 The linlv in the chain if equivalent monetary signs were worked ■with would be— franc 1 = Q'-jI.") pence The same principles apply to fixed silver pars of exchange. Absolute Metal Pars of Exchange.—These are based upon the almost daily varying gold price of .silver in gold standard countries, and similar variations in tlie .silver price of gold in silver standard countries. The daily ratio between gold and silver is one of the most important items of information that could be given to the commercial and financial world. It can be ascertained from the commercial news furnished now by most daily papers throimh taking the market quotation for an ounce of silver and dividing the constant 943 by it, VI. The London price of silver to-day, the 21st of September, 1898, is 28^?\r pence per ounce, and it is desired to know what ratio of silver to 1 of gold is indicated by the quotation. The sum is— 943 -r 28'312o = 33‘31 parts of silver to 1 part of gold.—Ans. A constant for use in determining the ratio resulting from a given price is attached to each monetary system in Table 1. presented herewith. Absolute Currency Pars of the Day depend upon (I.) the variable ratio between gold and silver. (II.) The variable increased purchasing power conferred by legislation on a definite weight of silver, such as exists in the British Indian currency exchange intermediary at the present time, the 165 grains of silver in the rupee doing the work of 248 grains of silver, (III.) The variable paper premium on gold. (IV.) Tlie variable paper premium on silver. To obtain the absolute par between a gold and a silver inter¬ mediary, three equations are introduced into a chain rule sum. To find the absolute par of exchange between the British Isles and ^Mexico, the mint issue weight of the pound and the mint issue weight of the peso, together with the ratio of the day between gold and silver, determine it. State the mode of reaching the absolute par of exchange c i8 Absolute Pars between the British Isles and hlexico, the ratio being 83-31 ),arts of silver to 1 part of gokl. the links are- peso 1 = :577-181 "rains of silver grains of silver 33-31 = 1 of gold grains of gold o-Go = shilling VII. What is the absolute par of exchange of the day, weight for weight, in the British Isles with Mexico, the ratio of silver to 1 of gold being 33-31 ? The ]\[exican peso or dollar at niint- issne weight is 377-1809 troy grains of pure silver; the British shilling is a token for the 20th part of a pound, and therefore does the work of 0-05 troy grains of gold. The sum is— ? (shillings) dollar 1 ratio of silver to 1 of gold 33-31^ grains of gold G-6o 1 X 377-1809 X ] X 1 1 X 33-31 X o-Go = 1 dollar = 377-1809 troy grains of silver = 1 of gold = 1 shilling 2-004 shillings.—Ans. 24 and ifjth pence is the absolute par between the Bi-itish Isles and Drexico'for the peso at 33-31 parts of silver to 1 part of gold. The Mexican coinage charge is 2 per cent. The equivalent exchange to the cost of the silver with shipping and all charges includino- the 2 per cent, coinage charge and loss of interest for the time between the purchase of silver in the British Isles and the possession of the peso in Dlexico, say 3^ per cent., would bring it up to 24-004 pence + B^ per cent. = 24-84 pence, or 24|f pence. In 1873 the ratio of silver to gold was not half of what it is now, and in consequence the British price of the peso was 54 pence. VIII. What is the absolute par of exchange of the day, weight for weight, between a Shanghae tael and a dollar of the United States of North America, at a ratio of 33-31 of silver to 1 of gold, the tael 516-4058 troy grains of pure silver, and the dollar 23-22 troy grains of pure gold? ? (tael) = 1 U.S.A. gold dollar dollar 1 = 23-22 troy grains of pure gold gi-ain 1 = 33-31 of silver troy grains of silver ol6-40o8 = 1 tael 11-01 1 X X 33-31 X 1 1 X 1 X 208-2029 = tael 1 - 394 .—Ans. An Universal Gold Medium 19 In the follo\Ying examples of the working of the exchanges of intermediaries, weights of metal will be used in preference to monetary signs. the whole WOPiLD’R FUTURE SINGLE INTER- ^lEDIARY: SCIENTIFIC AUTO:\[ATIC GOLD. The Foreign and Coloni.yl Exchanges of Scientific AuTOM.mc Gold for Scientific Autom.vtic Gold. Assume that the whole world’s chief money of account consists of 6 grams of pure gold or 92-594 troy grains, with appropriate alloy to make one chief standard coin to bear the effigies of each mint issuing it; that monetary signs are gone for ever, and that the sole nomenclature of money is weight, and we have reached a haven of rest in the simplicity of prices and the world’s foreign and colonial exchanges. One instead of seven measures of prices. Two proportions in the place of forty-nine different proportions at present composing the forty-eight different exchanges of the seven intermediaries. Examples will be given for the guidance of those who travel, who are engaged in commerce or deal in finance and stocks. Use will be made of the chain rule. I. Tr.vvel. To convert forty gold coins bearing the Brazilian stamp into British gold in London. One-half per cent, would cover the cost of transmission of gold between the British Isles and Brazil. An eighth of 1 per cent, would be a ffiir profit. Tlie sum is— 40 X 6 - 5% = 238-0 grams.—Ans. 238-5 grams in British money for 240 grams of Brazilian money. II. Commerce. Silk in China at 4-875 decigrams of gold for 23-25 grams of silk, shipping insurance and all other charges exclusive of 20 An Universal Gold Medium freight to London, 10 per cent, on cost, the rate of exdiange at 1 per cent, discount. Wliat is the cost ? Tlie sum is— (leci^raiiis of "old = i^d-2d fjrams of silk "rams of silk 23'2o = 4-87d docigrams of gold ® 100 = 110 with chargos discount on exchange 100 = 99 4-870 X _ -,.go9 decigrams.—Ans. 100 X 100 If the purchaser of the bill becomes at the same time the poR.sessorof the silk, 5*107 is the cost of the silk to London without freight and charges, but if the seller of the bill still retains possession of the silk, he has not recovered what he has spent on the silk, and the deficiency he must obtain, in a proportionate higher price at the time of sale. Perhaps it may be roughly stated that at the present time, taking Austria, Hungary, and Japan as forming part, four-fifths of the world’s trade in value is carried on by means of either an automatic gold or a gold-cum-counter-charge intermediary. Between these countries the extreme limits to the fluctuation of the exchanges may be taken at about S per cent. III. Finance and Stocks. I. A financier or Stock Exdiange operator in London desires to know' what would be the cost of property purchased in that city for 28,984*35 kilos of pure gold, and sent to China. Transmission, insurance, stamps, brokerage, time occupied in the transaction, and other charges being 2^ per cent. The sum is— 28,9&l-3o + 2; = 29,708-9G II. Betw'een the same places property bought at 84 per cent. What must it sell at to return the cost ? 84 + 2.V per cent. = 86'lo per cent. Between two countries each of which is in possession of an effective gold standard the exchanges are conducted in precisely the same manner as in the above examples ; the only difference being that the metric w'eights are used, and no monetary signs are introduced, the w*eight of pure gold, the thing signified, taking the place of the signs. Where coinage charges exist, Seven Currency Mediums 21 they are definite percentage charges affecting the exchange of the intermediary upon wliich the charge is imposed. A miligram is about tlie 448tli part of a franc, and the French monetary sign for it is about -22 of a centime; -jJg- of a miligram is about tlie 7168t]i part of a franc; the monetary sign for the 6100th part of a franc is -,y’^ of a centime. A miligram is about tlie 7322nd part of a British pound ; the British monetary sign for tlie 7G80tli part of a pound is of a penny. When this system is adopted and maintained by the whole world, a price would be a definite weiglit of pure gold, and a rate of exchange would also be a definite weight of pure gold, and all ambiguity about the foreign and colonial exchanges would be gone for ever. Also the interchanges of things would be conducted on the conditions of barter. The World’s Present Interchanges of Things effected BY Means of Seven Intermediaries. Though the world may in the course of time use but one intermediary, there would be in the international and inter¬ colonial interchanges of things four prices and two rates of ex¬ change of the one intermediary. Take A to denote the port of one country and 1) the port of another country. There would be two prices in A, one of the thing sent to B, and another of the thing received from B, and a rate of exchange consisting of a small percentage weight more or less than cost of the thing sent to B. Two prices in B, one of the thing sent to A and another of the thing received from it, and a rate of exchange on the cost of the thing sent to A. We have seen how that under one intermediary for the whole world the limit to the fiuctuation of the exchange of the intermediary would be confined within the narrowest limits. Of the seven intermediaries with which we are about to deal, two—namely, the gold-cum-coinage charge one and the silver-cum-coinage charge one—are burdened with a fixed percentage charge. This charge varies from a small sum per mille to 2 per cent. To the extent of the charge it is an impediment in the interchanges of things, enhancing the inter- ^2 SkVKX CURRKNCV I\IliDIUMS mitional price of a thing received in tlio country imposing the charge. The AVorld’s Present Seven i\[uNETAUv .vnd Cuihiency Intermedi.mues. I. Scientific automatic gold as the Jh-itish pound, 11. Scientific automatic silver as the Shanghao tael. III. Gold-cum-coinage charge as the Australian pound. IV. Silver-cum-coinage charge as the Alexican peso. V. Silver-cum-counter charge as the Indian exchange rupee. VI. Inconvertible paper based on gold as the Argentine peso. ATI. Inconvertible paper based on silver as the Columbian sol. These seven different descriptions of intermediaries which are used in the interchanges of things within countries, and in the conduct of their foreign and colonial commerce, produce forty-nine different descriptions of exchanges of intermediaries, which are as follows: — I. Automatic Gold for automatic gold, or for II. Automatic silver, or for III. Gold-cum-coinage charge, or for lA^ Silver- cum-coinage charge, or for V. Silver-cum-counter charge, or for VI. Inconvertible paper based on gold, or for VII. Inconvertible paper based on silver. VIII. Automatic Silver for automatic silver, or for IX. Automatic gold, or for X. Gold-cum-coinage charge, or for XI, Silver-cum-coinage charge, or for .XII. Silver-cum-counter charge, or for XIII. Inconvertible paper based on gold; or for XlAh Inconvertible paper based on silver. XA'. Gold-cum-coinage charge for gold-cum-coinage charge, or for XVI. Automatic gold, or for XA'II. Automatic silver, or for XVIII. Silver-cum-coinage charge, or for XIX. Silver-cum- counter charge, or for XX. Inconvertible paper based on gold, or for XXI. Inconvertible paper based upon silver. XXII. Silver-cum-coinage charge for Silver-cum-coiiiage charge, or for XXIII. Automatic gold, or for XXIV. Automatic silver, or for XXAh Gold-cum-coinage charge, or for XXVI. Silver-cum-counter charge, or tor XXVII. Inconvertible paper based on gold, or tor XXATII. Inconvertible paper based on silver. Conditions ok a Scientific Medium 23 XXIX. Silver-cum-counter charge lor silver-cum-coiintei charge, or lor XXX. Automatic gold, or for XXXI. Automatic silver, or for XXXII. Gold-cum-coinage charge, or for XXXITI. Silver-ciim-coinage charge, or for XXXIV. Inconvertible paper based on gold, or for XXXV. Inconvertible paper based on silver. XXXVI. Inconvertible paper based on Gold for inconvertible paper based on gold, or for XXXVII. Automatic gold, or for XXXVIII. Automatic silver, or for XXXIX. Gold-cum-coinage charge, or for XL. Silver-cum-coinage charge, or for XLI. Silver-cum-counter charge, or for XLII. Inconvertible paper based on silver. XLIII. Inconvertible paper based on Silver for incon¬ vertible paper based on silver, or for XL IV. Automatic gold, or for XLV. Automatic silver, or for XIjVI. Gold-cum-coinage charge, or for XLVII Silver-cum-coinage charge, or for XLVI 1 1. Silver-cum-counter charge, or for XLIX. Inconvertible paper based on gold. A necessary condition of a scientific automatic metal monetary standard, constituting an absolute measure of valua and an equivalent in exchange, is that the substance so used should do its work without fetter or favour on the paid of the Government. A coinage charge is a fetter. Legislation wliereby a given weight of metal does the work of a larger weight is an impediment to trade imposed by Government. As , for instance, at the present time the llritish Indian rupee of I 60 troy grains weight of pure silver does the work as an intermediary of 250 troy grains of silver, or 55 per cent, more than the intermediary used in effecting local exchanges, if not throughout the whole country, certainly on the seaboard of India, Ceylon, and Mauritius. Another essential condition of an effective metal monetary system is that State and bank credit instruments in the shape of notes payable on demand are convertible into the weight of standard substance indicated upon the note at the will of the holder of the note without question, delay, or expense. The term silver-cum-countercharge denotes that a Govern¬ ment by legislation has conferred a fictitious value upon silver. A counter is not meant for use at its intrinsic worth, hletal, to 24 Conditions of a Scientific Medium do its work as money, is intended to pass as an intermediary in some near relation to the value factors contained in it in com- parison with the value factors contained in the things for which it is exchanged. This is the meaning of the statement, “That money, i.e. standard money, is an equivalent in exchange.” A coinage charge adds to the cost of the goods imported into a country imposing the charge. A coinage charge does not benefit the export trade of a country imposing such a charge, since the metal forming its standard substance has no more worth in other intermediaries than the world’s market })rice of silver as an article of commerce. The fact that a metal is an article of commerce largely required for other than currency purposes mainly constitutes its fitness for use as a measure of value and an equivalent in exchange. Coinage charge on the standard substance being of a certain nature in each country, it becomes unnecessary to present in detail instances for the instruction of travellers, international and intercolonial traders, and financiers. In a chain rule state¬ ment of an operation between a country and another imposing such a charge, a link in the chain affecting the exchange of the intermediaries would be added; say the charge is 1^ per cent. 100 = lOl-o A traveller could never lose by this charge ; he should sometimes gain, but the gain would never be much. Factors in the World’s Present Prices and Exchanges OF Intermediaries. We have seen that the day may come when the whole world shall have three factors in its money for all purposes. A weight of pure metal; a premium or more than a given weight; a discount or less than a given weight. The world’s seven present intermediaries constituting prices and the foreign and colonial exchanges embrace twelve factors, as follows :— I . Weight of gold. II. Monetary signs for weights of gold. Factors in Prices and Exchanges 25 ^ III. Weight of silver. IV. Monetary signs for weights of silver. V. Charge for coinage. r- VI. Charge for constituting fictitious money by legislation. ^ VII. Charge in the shape of premium in paper for silver. I VIII. Charge in the shape of premium in paper for gold. & IX. Charge on the movement of metal. S: X. Charge lor the exchange of one currency for another. I XL Fixed pars of exchange between intermediaries. I XII. Absolute pars of exchange of the day between inter- I mediaries. ■ The Factors which are used in each Currency System. I, Automatic Gold.—Weights and monetary signs for gold, fr. A price in this system is a weight of pure gold. As an inter- h national intermediary ; a charge on the movement of metal and ^ a charge for the exchange of this currency for another play L their part. I II. Automatic Silver.—The remarks upon automatic gold apply to automatic silver. III. Silver-cum-coinage Charge.—Weights and monetary signs for silver, a fixed percentage coinage charge, a charge on the t movement of metal, and a charge for the exchange of this L; currency for another. Price in tliis system is a silver-cum- ^ coinage charge price. I IV. Gold-cum-coinage Charge.—The remarks under silver- [ cum-coinage charge apply to gold-cum-coinage charge. : V. Silver-cum-counter Charge.—Weights and monetary signs ^ for silver with a variable percentage premium on silver to do I the work of a heavier weight of silver ; a charge on the move- f meiit of metal, and a charge for the exchange of this currency ‘ for another. The rate for the foreign and colonial exchanges ! of this system is a silver-cum-counter charge rate. VI. Inconvertible Paper based on Gold.—Weights and j monetary signs for weights of gold, a fluctuating percentage [ paper premium on gold which acts as an equivalent discount I on the weight of gold in the chief money of account in use in 06 Ratio bf;tween Gold and Silver the system, a charge on the movement of metal, and a charge lor the exchange of this currency for anotlier. Price and a rate of exchange of the intermediary are both inconvertible paper based on gold price and rate ol exchange, VII. Inconvertible Paper based on Silver.—The remarks under inconvertible paper based on gold apply to inconvertible paper based on silver. Fixed and Absolute pars of Exchange. Ratios. In working the forty-nine exchanges of the seven interme¬ diaries the first step is to determine the fixed or absolute ratio between them. Fixed pars exist between countries the standanl in which is of the same metal. Gold pars are different countries’ ditferent monetary signs for the same weight of gold. Silver pars are different countries’ monetary signs for the same weight of silver. Absolute pars are subject to daily fluctuations, and depend upon the ratio of the day between the metals gold and silver, the fluctuating percentage bounty produced by a counter charge, or the discount on the weight of gold or silver resulting from the inconvertible paper premium on the metals. When the fixed or absolute pars are determined, then come into play in percentage form IX. and X., charge on the movement of metal and charge for the excliange of one currency for another. N.B.—There is so much perplexity about the exchanges of intermediaries resulting from the unscientific teaching and practice in the world, that it should be thoroughly understood that the percentage deviation from fixed and absolute pars of exchange should always be taken on the currency of the country commencing the operation. Thus in the Rritisli Isles it would be a premium or a discount upon pounds, shillings, or pence' for the currency of another country. This is the scientific method of working the exchanges. If 1 buy at a premium, I shall have less to receive than if I buy at par. If I buy at a discount, I shall have more to receive than if I buy at par. Say a merchant or a financier buys something to send to another country, and sells his bill of exchange for the Application of Percentagp: Charges 27 |)iircliuse anioimt at a discount, it is evident tlnit he lias not received back the cost of tiie thing. J)y making Ids bill of such an amount that after deducting the discount the proceeds .would equal the cost, is one way of meeting the ililficulty. The other is by an enhanced price in the place where the thing ®is sold. If the bill is sold for more than the cost of the ^ithing, the thing can be sold for less in the place it is sent to. If a bill of exchange is sold at a premium on par, the seller obtains more than if it sold at par ; whereas a buyer of the bill at a premium on par obtains less than if it sold at par. The following would be the links in a chain rule sum ;— If a premium, say 50 ])er cent., is conferred on metal by legislation, the link in working for an answer in rupees would be- 100 = lo0 The premium in paper upon gold or silver is also worked in the same manner; say the paper premium is 140 per cent., the 'statement is— paper 210 = 100 metal When a shipper of goods sells his bill against the goods at a premium upon fixed or absolute par, he obtains more than the i cost of his goods, and therefore can afford -to sell them for less at the port of discharge: this premium must therefore be taken I at an equivalent discount as a link in the chain ; say he has ! sold at 2^ per cent, premium, the discount is 2-44 and the link ■ would appear as— 100 = OT-.-jU When a shipper of goods sells his bill against the goods at a discount upon fixed or absolute par, he obtains less than the ) cost of his goods, and therefore must obtain that amount more : at the port of discharge, the discount therefore must be taken at an equivalent premium as a link in the chain ; say he has sold at 2i per cent, discount, the equivalent premium is 2*56 and the link result appear as— A per centage charge wdiich adds to the cost ol any thing would take its place in the chain as the less equal to the 28 Gold for Gold greater ; say the cliarge is 2^ per cent., the equation would be 100 = 102-5. Anything in the nature of a per centage which would diminish the cost oi a tiling would take its place in tPg chain as the greater equal to tlie less ; say the discount is 2^ per cent., the equation would be 100 = 97-5. We now proceed with sums illustrative of the exchanges of intermediaries. I. AUTOMATIC GOLD FOE AUTOMATIC GOLD. 1. Travel. State and other accounts in Canada are kept in dollars. The dollars of the U.S.A. and the Dritisli pound are legal tender. The mint issue weight of a dollar is 23-22 troy grains, that of a British pound 113-0016 troy grains. What amount in British money in London would §580 exchange at i per cent, discount command ? XII. The sum is— ? (L) z= ,)80 doll HI'S 81 = 23'22 grains of gold grains of gold IFi'OOK) = fl ](X) = 9y'o discoujit 29 irei lO'l) X UU X 1 X m 1 X X m ot)'o008 = L-118 11s. 10(/.-Ans. Fixed Pahs of Kxchaxge. S1-86G = .LI Ponco 49'31() = §1 Throughout these examples “grains of gold” mean troy grains of pure gold, and “ grains of silver ” moan troy grains of pure silver. 11. Commerce. XIII. What would be tlie cost of a lb. of silk in London purchased in Canada at §4 per lb., packing, shipping, insurance, and all other charges except freight to London, 12 per cent.; and the discount in dollars for the pound, ^ per cent. ? Gold for Gold 29 If a bill of exchange is sold at a discount on par, the seller obtains less than if it sold at par ; whereas a buyer of a bill at a discount on par obtains more than if it sold at par. As between two countries the one in which the rate of exchange is much above par is said to be against the country in which the big'll rate exists. XIII. The sum is— ? (shillings) = 1 lb. silk 1=4 dollars dollar 1 = 23-22 grains of gold grains of gold /id)/) = 1 shilling 100 = 112 with charges exchange 100 = 99"‘> 11-61 56 19-9 1_X_4 X X 3 X //// X 1 X 1 X X./0 X 1-13 25 25 — If^^. Ad. per Ih.—Ans. III. Finance and Stock. What is the cost of property in London bought in Canada at §18,976, stamps, insurance, commission, and all charges to London, 2^ per cent. ? XIV. The sum is — ? (pounds) = 18,976 dollars dollar 1 = 23-22 grains of gold grains of gold 113-0016 = £1 100 = 102-5 with charges 593 11-61 20-5 X jj-U X 1 X mi 1 X iumf' X 3-5313 10 = £3996 6s.—Ans. Stock is quoted in London at 91J per £100. What is the cost in the U.S.A. per £100, charges 2^ per cent.? XV. The sum is— ? (dollars) = £91-25 £1 = 113-0016 grains of gold grains of gold 23-22 = 1 dollar 100 = 102-5 with charges 28-2504 4-1 91-25 X imm X 1 X im ^ c45,r,.i7._Ans. 1 X 23-22 X m 20 Gold for Silver IT. Automatic Gold for AuTo:\rATic Silver. The average of the gold prices of silver in London for 1872 is GOy^ per standard ounce, giving the ratio of ir)-04 parts of silver to 1 part of gold. The present ratio of silver to 1 of gold jg 33-31, an increase of 113 per cent. In the past quarter of a century the silver price of gold has risen 113 per cent., and the gold price of silver has fiillen 53-33 per cent. In August, 1897 the ratio was 39-5 parts of silver to 1 part of gold. The present ratio is taken in the following examples, and for the sake oi comparison the ratio of 1872 will be taken. I. Travel. A tael of silver is not a currency met with by travellers. But China uses the Me^cican dollar as an intermediary in her foreign trade. The Chinese Government has not done anything to fetter or favour the hTexican dollar. It effects its work as a weight of pure silver. The percentage additional cost in silver for its manufacture into pesos including coinage charge in Mexico does not add to its value in international interchanges. It is desired to exchange 285 Mexican dollars or a promise to pay them on demand of equal value with the dollars into British money. The Mexican peso or dollar is 377-181 grains of silver, and the pound is 113-OOlG grains of gold; the ratio between the metals being 33-31, and the exchange dealers charge 1| per cent. XVI. The sum is— ? (pounds) = 285 dollars dollar 1 = 377-181 grains of silver silver 33-31 = 1 gold grains of gold 113-0016 = £1 100 = 98-5 57 19-7 X 377-181 X 1 X 1 X _ 1 X 33-31 X ifsboio X ~ 4 £-28 2s. 8rZ.—Ans. There is another way of doing this sum. Find the par established between the dollar and the British shilling at the Gold for Silver 31 given ratio. On the result deduct 1.^ per cent., and with that multiply the 285 dollars. The twentieth part of a pound is 5-65 troy grains of pure gold. XVir. To find the par the sum is— .‘177'181 silver ratio S'.i-o 1 X o'Oo gold = 2'004 shillings.—Ans. ; then 285 x 2-004 — 1.^ per cent. = £28 2.r)ii-2{)2d 1 7:21,611-.>7.-Ans. At the ratio of 15-04 to 1 this sterling amount would have commanded at the same percentage charge taels 838,817T7 only. To reach absolute accuracy in large sums, not less than six decimal places should enter into the calculation. The ratio between the metals, as has been stated, is worked on 948; it is actually 942-9955 and more. The ratio has been taken at 88-31; it is actually 83'8060 and more. This difference in the factors upon the par of exchange for £100,000 in taels only amounts to 1 per 10,000 taels. Autom.\tic Gold for Silyer-cum-counteh Charge. The term counter is used to denote that a State by legislation confers a fictitious value upon a substance as an intermediary in the interchanges of things. This can be done, as vre see, by one State quite as easily as it was done by a combination ot several States when they determined upon and effected/or a jieriod a legislative fixture of ratio between gold and silver whereby these metals for years exchanged at an approximate ratio of loi to 16 parts of silver to 1 part of gold all the world over. Both schemes are utterly in opposition to the science of money as propounded by the geniuses of the world who have paid Gold for Silver, etc. 33 attention to the subject from Xenophon, in the fifth century before Christ, to the present time. The British Indian mints being closed against the reception of silver from the public, 295 millions of people inhabiting British India, Burma, Ceylon, and Mamitius have no standard measure of value and equivalent in exchange. The rupee of 165 troy grains of pure silver was their standard coin, and is now the measure of their internal interchanges. But as a measure of their international and intercolonial interchanges they now possess a silver-cum-counter- charge intermediary. At present the universal gold value, or price, of the rupee at 33*31 parts of silver to 1 part of gold is 5*27 troy grains of pure gold, the British monetary sign for which is 11*39 pence. The rate for telegraph transfers upon India this day is 15f^ pence per rupee. This shows that legis¬ lation resulting in the closure of the mints in British India, and a duty on silver has added a fictitious value of 40*2 per cent, to the intermediary used in the international interchanges of these 295 millions of people. In other words, the 165 troy gi'ains of silver do the work of 231*33 troy grains of silver. The possession by India, Burma, Ceylon, and Mauritius of a scientific automatic gold standard, which it is devoutly to be hoped may be brought about, would be the justification for the temporary use of such a rotten intermediary. I. Travel. What could be obtained in London for 760 rupees in bank or equally good credit notes, and for 84 silver rupees, the inter¬ mediary rupee having a 40 per cent, counter-charge premium charges 1 per cent, discount ? XX. The sum is— I ? (British pounds) = 760 Briti.sli rupees rupee 1 = 165 troy grains, of pure silver silver 33.31 = 1 of gold Trains of gold 113'00]6 = 1 British pound 100 = 140 with preinmm 100 = 99 exchange X \ X i y. 7g^_Ans. i x”33-3rx X m X 100 •J8-2504 i P Gold for Silver, etc. There is another method by which the same result can be reached, as given under absolute pars below. At 33-31 parts of silver to 1 part of gold, the £1 equals 22-81 rupees. XXL The sum is— 7.-30 — 22-81 + 40 per cent. — 1 per cent. = .£:40 3*’. —Ans. Ill 1872, at the then ratio, 10-71 rupees equalled £1, the absolute par, and then at the same discount the 760 rupees yielded £69 Qs. U. Rupees are still the circulation of India, Ceylon, and the Mauritius; upon their import into India there is a charge of 5 per cent. Take the charge for converting the 84 rupees into sterling at U per cent., charges for transmission to India, import duty, and time interest at 8 per cent., and the ratio of the day between the metals at 33-31 to 1. XXII. The sum is— ? (pounds) = 84 rupees rupee 1 = 165 grains of silver grains of silver 33-31 = 1 grain of gold grains of gold 113-0016 = 100 = 92 charges deducted 100 = 98-5 discount on exchange 21 33 23 19-7 1 X 1^ _ ^.3 ( 5 ^. 7,^._Ans. 1 X 33-31 X X m X 100 7-0626 4 If, instead of being silver rupees, the 84 rupees had been in good Indian bank notes, their value at 15*75 pence fur a rupee would have been £5 56-. 3d. Absolute Pars. Ratio 1.5*6 to 1. Ratio 33'31 to 1. Rupees 10*71 = £1 Rupees 22*82 = £1 Pence 22*41 = 1 rupee Pence 10*61 = 1 rupee Fictitious rupee 40 per cent, premium. Rupees 16*31 = £1 Pence 14*71 = 1 rupee The price of Indian telegraph transfers to-day is 15*29/32 pence per rupee, or rupees, 15*08 to the pound. The weight Gold fou Silver, etc. par being lO'Sl pence per rupee, the fictitious exchange rupee shows a premium of 51 *51 per cent. II. Commercp:. What is the cost in London, witliout freight and London charges, of one pound of tea at 12 annas per seer; 112 lbs. equal to 60 factory seeis, charges in India at 8 per cent., the exchange at 11 per cent, discount, and the exchange rupee at 50 per cent, premium upon the silver rupee; the ratio between gold and silver ; at 33-31. One penny is the sign for -4708 of a grain of gold. XXIII. The sum is— ■ y (penco) =r 1 lb. av. tea lbs. 112 = 60 seers factory seer 1=12 annas annas 16 = 1 rupee i rupee 1 = 165 grains of silver- grains of silver 63-31 = 1 grain of gold grain of gold -47 = 1 penny 100 = 150 premium on silver ruireo 100 = 108 with charges 100 = 98-0 exchange discount 1-97 i 6 3 33 75 2/ : 1 X X /X X 1 X X 1 X 1 X X X _ \ 112 X 1 X X 1 X 33-31 X '^70 X /XX X X 100 ' I X /fl XX 1 X 4 1 III. Finance and Stocks. At what amount per cent, of rupees in India must stock bought in London at £66 per £100 be sold for, the ratio ' between the metals being 33*31, the exchange rupee at 50 per¬ cent. premium ? XXIV. The sum is— Find the absolute par with a pound. ? (exchange rupees) = £1 £1 = ]]3'00]6 grains of gold gold 1 = 33-31 silver grains of silver 165 = 1 rupee premium 150 = 100 2 L x 113-0016 X 33-31 X 1 X /^ _ j-.^Qg rupees.—Ans. 1 X 1 X 165 X //X 36 Gold for inxonvertible Paper on Gold Convert £100 into rupees, and £66 into rupees, to which add n per cent. Divide the result of the latter by the result of the former to hud the percentage rupees for 100 rupees. £100 X 10-208 = l.;20-80 £66 X lo-208 + Iv per cent. = 1018-784 1018-<84 X KK) _ i-npees per 100 rupees.—Ans. 1.320-80 IV. Automatic Gold for Inconvertible Paper based on Gold. Inconvertible paper, based upon one of the precious metals, is, perhaps, the most rotten intermediary wliich a country can use. On tlie sea-boards of the trading communities of the world a dehiiite weight of gold, or a definite weight of silver, is the pro¬ fessed standard measure of value and equivalent in exchange to which each country has attached a sign for its chief money of account, as the pound, iraiic, and peso oi dolLii. A vast number of different communities use this wretched intermediary in Europe and the New World for both their internal and inter¬ national interchanges of things. Nowhere tliroughout the East, among its 852 millions of peoples, is this abortive currency known. I. Tr.wel. AVhat is the value in London of 617 pesos, consisting of tlie best notes of the Argentine llepublic? The gold peso is 22-4012 grains of gold. Gold is at 157 percent, premium there. Charges and risk amount to 4 per cent. XXV. The sum is— ? (pound) = 617 paper pesos peso 1 = 22-4012 grains of gold grains of gold 113-0016 = 1 pound premium 2o7 = 100 100 = 96 .3-6003 1 12 1 X X 2.37 X 3-6313 1 £45-68.—Ans. Gold for Inconvertible Paper on Gold 37 Another method is to get at the absolute par between the intermediaries on tlie ratio of tlie day, the fluctuating factor being the paper premium on gold, and upon par in the money of the country in which the exchange is made to deduct the charge for the conversion of the foreign intermediary. XXVI. The sums are— ? (shilling) = 1 paper peso gold peso 1 = :^2-4012 grains of gold grains of gold o'Oo = 1 shilling • premium ‘iT.*) = 100 L>0 1 X 22-m2 X 1 X 1 X /-/JX X M:3 shillings.—Ans. Then— 617 X ]‘o427 — 4 per cent. = £4.r6^S.—Ans. Fixed Pars. Ahsolute par, gold at 1.57 premium. Pence 47‘o7.5 = 1 peso Pesos o'044 = £T Pence 18'.512 = 1 peso Pesos 12-96 = LI n. COxVJrEROE. Wliat is the cost in the Argentine Republic of one hectogram of tea, without charges in Argentina ? 4*636 hectograms equiva¬ lent to 1 lb av., the price in London lOd. per lb., charges in London 3 per cent., paper premium on gold in Argentina 1.67 per cent.; exchange 4 per cent, against Argentina ; a penny signifies *4708 grains of gold. X.KVII. The sum is— ? (contesimos) = 1 hectogram of tea hectograms 4 .'336 = 1 lb. av. lb. 1 = 10 pence penny 1 = ’4708 grains of gold grain of gold -224 = 1 centesimo 100 = 250 premium in paper 100 = 103 London charges 100 = 104 exchange •1177 1 !•“’> 1 X 1 X 10 X ' 4:^0 X 1 X x/x X 103 X /X# _ centesimos.—Ans. X 1 X 1 x'5i24 X X /0 X 100 ■m ? ^8 Effect of a Coinage Charge The exchange of the intermediaries at the gold par of ,r044 pesos to the pound, instead of 12'90 pesos to the pound, would make the cost of the tea 4-96 centesimos, instead of 12-41 centesiraos. III. Finance and Stocks. What amount of British money would 900,000 Argentine paper pesos command: 250 paper pesos equal to 100 gold pesos, the peso 22'4012 grains of gold, the pound 11.3-OOlG grains of gold, the rate of e.Kchange and charges 1| percent, discount on the pounds? XXVITI. The sum is— ? (pounds) = 9o0,000 paper pesos paper peso 250 = 100 gold pesos gold peso 1 = 29-40120 grains of gold grains of gold 113-0016 = 1 pound 100 = 98-5 discount on exchange 19-000 1 2-80015 19-7 X /dn X X 1 X X I X X 0 ^ 0 14-12620 1 = £74,200-44.—Ans. Effect of a Coinage Charge. The operation of a coinage charge in the foreign and colonial exchanges can be exemplified in the currency of British India as it existed in 1872. The normal state of British Indian trade and financial obligations has for many years been a vast excess of exportation of agricultural, mineral, and manufactured pro¬ ducts over the imports, necessitating a steady importation of the precious metals into the country. There have been periods during the past fifty years, when silver has been exported to the West, but they have been rare, and of short duration. The coinage charge in British India was 21- per cent. This was a fixed charge adding to the sterling cost of the rupee, but not diminishing the rupee cost of the pound. Rupees received in the West would be procurable for remittance back to India, altering the rate of exchange by the charges upon the trans¬ action. What is the sterling cost of the rup6e ? The ratio between Paper on Gold for Paper on Gold 39 the metals 15 G4, the coinage charge per cent., the rupee 105 grains of silver, and ‘4708 of a grain of gold a penny. XXIX. The sum is — ?(pence) = 1 rupee rupee 1 = 165 grains of silver silver 15-64 = 1 gold *4708 = 1 penny 100 = 102-2 51-1 7-82 20 22-9 pence.—An.s. Without the coinage charge the sterling price of the rupee on the conditions given is 22-42 pence. Cost with coinage. Cost without coinage. Pence = 22-9 rupee Pence 22-42 = rupee Rupee 10-47 = pound Rupee 10-70 = pound A few more instances for tlie traveller will be given, as these present a solution to the crux of the foreign and colonial exchanges of intermediaries. VI. Inconvertible Paper Based on Goi.i) for Inconvertible Paper Based on Gold. Tr.vvel I. The premium on gold in Spain is, say, 98 per cent. Tlio peseta and the franc indicate the same weight of pure gold, viz. 4-4803 grains. What is the absolute par of exchange ^ in Paris on these factors for, say, 986 pesetas in paper? ihe weights being the same, it is a percentage sum. XXX. The sum is— ? (gold francs) = 986 paper pesetas 98 per cent, paper pesetas 198 = Klfl g
/y/! iio Fixed gold par.s. Argentine peso 1=1 Paraguay peso Paraguay „ 1 = 1 Argentine „ Gold at 140 premium in Argentine Republic. „ GO „ Paraguay „ Argentine paper cents 34-28 = 1 Paraguay paper peso Paraguay paper peso 2 92 = 1 Argentine „ „ VII. Inconvertible Paper Based upon Silver. Until 1890, for the most part, Peru, Bolivia, Costa Rica, Ecuador, Salvador, United States of Columbia, Guatemala, Honduras, and Xicaragua, with a population of 13.^ millions, had currencies consisting of inconvertible paper based upon silver. The standard of these countries was professedly either gold or silver, at the option of the payer, at the legislative ratio of 15-5 parts of silver to 1 part of gold. Since the heavy in¬ crease of the ratio of silver to 1 of gold, most of these countries have shifted the nominal basis of their, inconvertible currency from silver to gold. The Peruvian weights are those of all the other countries except Bolivia. The weights are : the gold chief money of account, 22'40175 grains of gold. The silver in the coin of the same name, 347'2278 grains. The Bolivian new silver weight is 312’50504G troy grains of pure silver, and this 41 Papi:r on Silver for Paper on Gold country Inis declared for and possesses, or is about to possess, an effective silver monetary system, making the second with ^lexico, on the American Continent, which clings for the present to a silver standard. Let us assume that one of these eight other countries possesses for its internal and international intermediary inconvertible paper based on silver. YTTT. Intonvkrttbt.e Paper Pased ox Rtlver for Ixcoxvertibi.e Paper Pared on Gold. Tr.vyet, I. ■\Vhat amount of Argentine paper pesos at 140 per cent, pre¬ mium on the gold peso would 1050 paper pesos command at 110 reminm on the silver peso ? Charge for the exchange 4 per cent, ratio between the metals 83-31. The gold peso 22-4017 grains of gold. The Columbian silver peso 347-2278 grains of silver. XXXII. The sum is— (Areentino paper pesos) = IGoO paper peso on silver silver peso 1 = 347-2278 grains of silver crrains of silver 33-31 = 1 grain of gold grains of gold 22-4017 = 1 gold peso Arcentine premium 240 = 100 100 = 210 silver premium 100 = 9C discount or exchange 173-C130 1 4 X UTUlf X 1 X 1 X X _ G4.1-94 paper pesos on gold. 1 X 33-31 X 22-4017 X m X X m - km . IX. Direct and Indirect Exchanges of Intkrnedi.vries. If a bill is bought at a discount upon fixed or absolute par of exchange of the day. it will appear in the bu,^* chain at a premium equal to the discount, say discount of 2i per cei t 21 per cent, discount is equal to 2-58 per cent, premium; the chain in the buyer’s sum would be 100-102'58. If a hill is sold at a discount upon a fixed or absolute pai exchange of the day. it would appear in the sellers chain as a Direct and Lndirect Exchanges the full discount, say discount 2h per cent.; the chain \vould bo ] 00 = 97*42. If a bill is bought at a premium on a fixed or absolute par of exchange, say 2\ per cent., the buyer’s link in the chain would be 100 = 102 V). If a bill sold at a premium on a fixed or absolute par of exchange, say 2 ^ per cent., an equivalent discount to the ])remium would appear on the seller’s link, thus 100 = 97*42. In Argentina and China the ratio between the metals may differ from that in London. Take 34*61 as the rate in Argentina and 31* in China. To bring these into the chain the gain in Argentina is 4*50 per cent., and the loss in China is 0*37 per cent, compared with London ; the links to be intro¬ duced would be— 100 = in4-r)f5 100 = Indirect exchanges of intermediaries often yield a better result to the remitter than a direct exchange. Ly simultaneous pur¬ chases and sales in many ditferent markets, or in a few different markets, this may be accomplished. It is desired to send a sum of money from the British Isles to India. The direct operation between London and Calcutta will be shown, and the indirect through the Argentine Bepublic and China will follow. Assume that the exchanges are for telegraph transfers. What will the pound yield in silver-cum-counter-charge rupees ? The ratio between the metals, 33*31, the fictitious value of the silver rupee 50 per cent., the discount upon the sterling 24 per cent. The pound 113*0010 grains of gold. The rupee 105 grains of silver. Two and a half per cent, discount is equivalent to 2*58 per cent, premium to the buyer of the bill. XXXIV. The sum is— ? (fictitious silver rupee) = £*1 .£1 = 113'0016 grains of gold grain <)f gold 1 = 33-1 grains of silver grains of silver 16‘d = 1 silver rupee premium on silver loO = 100 100 = 102-08 1 1 X 113-0016 X 33-31 X 1 X X 102;^ 1 X 1 X 16*0 X loO X I = I 0 - 6 O fictitious rupees.—Ans. Direct and Indirect Exchanges 43 The absolute par is obtained by leaving out the discount on par paid for the fictitious rupee. The par, Indian price, is 15-208 rupees for one pound. The following is an arbitrated sum of exchange with telegraph transfers between the British Isles and British India through the Argentine Bepublic and China, which embraces the world’s present great diverse intermediaries, namely, automatic gold, automatic silver, silver-cum-counter-charge, and inconvertible 1 paper based on gold. The paper price of gold in the Argentine I is 140 per cent, premium. China’s intennediary is automatic I silver. A remitter in London pays for a telegraph transfer upon ' Rosario 2^ per cent, dis., equal to 2-58 premium to him for paper at 140 per cent, premium on gold; his agent in Rosario invests • t,he proceeds at the same premium in a T.T. on China at 6 per L cent, discount, equal to C-38 per cent, prenuum; his agent in [ China invests the proceeds in a T.T. on Calcutta at 1 per cent. ; premium, equal to 1 per cent, discount. The ratio between gold and silver 88-31 the same in London, Rosario, Shanghai, and Calcutta. How does this circuitous remittance compare with the direct one ? j XXXV. The sum is— [ ? (fictitiou.s silver rup^) grains of gold 1 grams of silver 165 premium on silver 150 100 paper premium in London 240 100 100 1 1 1 •'■>319 33 nG-43 1 X /^•SS/^X33-3 1 Xl 102-58 x/^^XX^^X/) 2^^-/^X j tictitious I ™pees. 55 75 1 1 1 -'J V • The result of the circuitous course of exchange, compared with the direct, shows that there is a gain by the fomer over the latter of 5-32 per cent. By deducting the percentage premium from the percentage discounts, 5 per cent, is shown. The a } = 113-0016 grains of gold = 33-31 grains of silver = 1 silver rupee = 100 = 102-58 discount in London = 100 = 240 paper premium in Rosario = 106-38 discount on Rosario = 99 premium in Shanghai 44 Direct and Indirect Exchanges tional -32 per cent, gain results from the treatment of the clis- counts as premium and the premium as a discount, togetlier with the increased or decreased amount at eacli stage of the operation. Tlie weight of silver for tlie weight of gold once stated in this operation, it was needless to introduce it into the sum, as also it is needless to have iuti-oduced the premium in paper on gold in the Argentine, the premium being- taken in London and in Rosario at the same rate, d’he fifteen variable factors which could be introduced into a circuitous bill opei-ation through countries using the four intermediaries em¬ braced in the foregoing operation are for the three bills. Credit 3 classes of. Usance, from sight to (1 months’ sight, 3; local rates of discount, 3; altered ratio between gold and silver, 2; paper premium on gohl, 2 ; fictitious value of silver, 2. It will be noticed that nine out of these variable factors would play their part in the exchange even though an effective metal monetary systejii on one metal existed in the four countries. The absolute par of exchange in this arbitrated sum of ex¬ changes is 15'208 rupees for one pound. The percentages fur charges resulting from various causes upon this sum at various stages of the operations, added or deducted, brings out the same result as the chain rule sum, thus— DV208 -t- 2-o8 per cent, -f 6-38 per cent. — 1 per cent. = lG-43 rupees. To reach the absolute par there are three variable factors. X, variable rates between the metals. Y, variable bounty upon silver conferred by legislation. Z, variable inconvertible paper premium upon gold. Under X we are dealing with substances, weights, real and only money. In teaching it is all important that the naked weights of money should be pressed home upon the minds of the taught. The other two factors can be dealt with in the shape of premium Or discount ujjon weights of money. Resides fixed and absolute pars there are percentage more or less charges upon such pars resulting from—different credit, different usance of bills, different local rates of discount, coinage charge, transmission of metal charge, and commission where an agent is employed. To these hist we attach the sign (f), Direct and Indirect Exchanges 45 Such a chain rule sum as that illustrated, but with all possible variations, might be presented thus y (fictitious silver rupees) = t'l : 113 0016 grains uf gold ; 33‘31 grains of silver X = 1 rupee = 100 = 102-o8 in Argentine

-4l> .■)4-87 20-4« Copecks. ' Copock.s. 1. Shanghae tael . 18.5-94 i Bolivian bolivnano . 112-52 2. Mexican peso. . 13.5-81 1 8. Siamese tical . 81-49 3. Japanese yen . . 134-81 1 1 9. Austrian florin 61-74 4. Javanese rixdollar . 131 -28 1 10. British Indian rupee . 59-41 5. Philippine dollar . 129-83 11. Persian kran . 23-02 6. Columbian sol . 12.5-031 No. 9.- ■SiAJiESE Ticals and Phai-nungs for Ticals. Ticals. 1. Shanghae tael . 2-2818 7. Bolivian boliviano . 1-3809 2. Mexican peso. . 1-6666 8. Russian rouble . 1-2272 3. Japanese yen . . 1-6543 Shahis. 4. Javanese rixdollar . 1-6110 9. Austrian florin . 15-1.536 0 . Philippine dollar . 1-5932 10. British Indian rupee . 14-5818 6. Columbian sol . 1-5343 11. Persian kran . 5-7032 No. 10 . — Austrian Florins AND KrEUTZERS FOR Florins. Florins. 1. Shanghae tael . 3-0116 7. Bolivian boliviano . 1-8225 2. Mexican peso. . 2-1996 8. Russian rouble . 1-6196 3. Japanese yen . . 2-1334 9. Siamese tical . 1-3198 4. Javanese rixdollar . 2-1262 Kreutzers. 5. Philippine dollar . 2-1027 10. British Indian rupee . 96-226 6. Columbian sol . 2-025 11. I’ersian kran . 37-286 No. 11.— British Indian Rupees and Annas for Rupees. Rupees. 1. Shanghae tael . 3-1297 7. Bolivian boliviano . 1-8939 2. Mexican peso. . 2-2859 8. Russian rouble . 1-6H31 3! Japanese yen . . 2-2691 9. Siamese tical . 1.3715 4. Javanese rixdollar . . 2-2096 10. Austrian florin . 1-0.392 5. Philippine dollar . . 2-1852 Annas. 6. Columbian sol . 2-1044 11. Persian kran . 6-1998 54 Automatic Fixed Silver Pars, etc. No. 12.—Persian Kraks for Krans. ' Krans. 1. Shanghae tael . . 8-07(i9 7. Bolivian boliviano , 4-8878 2. Mexican peso. . . o-8993 8. Russian rouble . . 4-3437 3. Japanese yen. . . •?-8o88 9. Siamese tical . . 3-o396 4. Javanese i-ixdollar. . 5-7024 10. Austrian florin . , 2-0819 o. Philippine dollar . . 5-6.394 11. British Indian rupee . 2-5807 6. Columbian sol . . 5-4308 OPINIONS UPON NORMAN’S “ UNIVUESAL CAMBIST,” PUBLISHKD IN' 1897. “T regard Norman’s 'Cambist’ as the best—perhaps the very best- exposition of the nature, origin, and the use of the money by which the world effects its exchange of commodities that has ever been, or is likely to be, written and published. It ought to have place in every well con- .stituted library.’’—iVo/eswr the Hon. 1). A. Wells, U.S.A., Janum-y, 1898. “ The volume is not only a ready reckoner, but contains some very clear words on the subject of bi-metallism, to which the author is strongly op¬ posed. The book bears evidence of very careful work, and the tables should be of the greatest commercial value.”— and Coal Trades Revieiv, April 22nd, 1898. “ I know enough of the important subject to appreciate already the mastership, grasp, and great labour exhibited in the book, and look to a careful reading. Your idea of making a subject—hitherto tabooed by the general public—familiar to young people would assuredly give an important aid to the understanding of sociolog}'.”— The Author of Notes on Political Econmny Inj a New Zealand Colonist, March Mh, 18i}8. “I have been studying your 1897 edition ‘Universal Cambist,’and I must say that among all the works which 1 have on the same subject as Haupt, Swobodse, Tate, not one of those works is so clear and easy to under¬ stand as yours. I congratulate you on your now eminent works which, I only wish, should be much more known in Germany. 1 shall not fail to mention your valuable writings to our high commercial schools and academies.” —Henry Latzko Brim, May 2~dh, 1898. “Mr. Norman has a rare talent for simplifying and clarifying the arithmetical operations connected with foreign exchanges, and suggests numerous original methods for reckoning the ratios of exchange between gold and silver basis countries, pars of exchange, &c. Though intended primarily for business men, the book contains much information and not a few sug¬ gestions that null be helpful to teachers of economics.”— Annals of the American Academy of Pol. and Soc. Science, Philadelphia, U.S.A., September, 1898. __ ON NORMAN’S ^‘SCIENCE OF MONEY, 1894,” Published in the “Universal Cambist.” “ A clear and useful little tract. If people had only taken the pains to get clear ideas upon a few very simple points, an ocean of controversy upon currency and economics generally might have been spared.”— Professor Goldwin Smith, Toronto, July 4^/^, 1894. “ 1 am satisfied of the soundness of your views, and believe your writings will be most useful in dispelling misconceptions and exposing utopian ideas in this province of thought.”— Professor J. K. Iwp-am, Dublin University, January \Wi, 1896. BRITISH INDIA’S FUTURE STANDARD CURRENCY. “ Accept my thanks and expression of indebtedness for your clearly wrought and logical exposition. The many aspects of the subject you have illumined and rendered so clear that it seems to me impossible for ‘ the word to return unto you void.’ The missionary work needs to be done now. . . . The cause of truth needs the support of men of ability who waver not, but with a true sense of proportion declare the gospel of economic exchange.”— Frank Fenwick McLeod, Boston, Mass., U.S.A., Noveynber Isi, 1898.