EXAMPLE

EXAMPLE. What will 2279 guilders 1 shilling 4 pennings, Holland currency, amount to in bank-money, the agio being 3½ per cent?

In Amsterdam, Rotterdam, Middleburgh, &c. books and accounts are kept by some in guilders shivers and pennings, and by others in pounds shillings and pence Flemish.

Britain gives 1 l. Sterling for an uncertain number of shillings and pence Flemish. The par is 1 l. Sterling for 36.59 s. Flemish; that is, 1 l. 16 s. 7.08 d. Flemish.

When the Flemish rate rises above par, Britain gains and Holland loses by the exchange, and vice versa.

Sterling money is changed into Flemish, by saying, As 1 l. Sterling to the given rate, So is the given Sterling to the Flemish sought.

Or, the Flemish money may be cast up by practice. Dutch money, whether pounds, shillings, pence Flemish, or guilders, shivers, pennings, may be changed into Sterling, by saying,

As the given rate to 1 l. Sterling, So the given Dutch to the Sterling sought.

Exchange. EXAMPLE. 1. A merchant in Britain draws on Amsterdam for 782 l. Sterling: How many pounds Flemish, and how many guilders, will that amount to, exchange at 34s. 8d. per pound Sterling?

Multiply the Flemish pounds and shillings by 6, and the product will be guilders and rivers; and if there be any pence, multiply them by 8 for pennings; or, divide the Flemish pence by 40, and the quot will be guilders, and the half of the remainder, if there be any, will be rivers, and one penny odd will be half a river, or 8 pennings, as follows,

2. Change 591 l. 5 s. Flemish into Sterling money, exchange at 37s. 6d. Flemish per l. Sterling?

Holland exchanges with other nations as follows, viz. with

Exchange between Britain and Antwerp, as also the Austrian Netherlands, is negotiated the same way as with Holland; only the par is somewhat different, as will be described in article 2d, following.

Books and accounts are kept at the bank, and by most people in the city, in marks, schilling-lubs, and phennings; but some keep them in pounds, shillings, and groots Flemish.

The agio at Hamburg runs between 20 and 40 per cent. All bills are paid in bank-money.

Hamburg exchanges with Britain by giving an uncertain number of schillings and groots Flemish for the pound Sterling. The groot or penny Flemish here, as also at Antwerp, is worth 1/2 of a penny Sterling; and so something better than in Holland, where it is only 1/4 d. Sterling.

The par with Hamburg, and also with Antwerp, is 35s. 6½d. Flemish for 1 l. Sterling.