EXAMPLE

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

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

Britain gives 1l. sterling for an uncertain number of shillings and pence Flemish. The par 1l. sterling for 36.59s. Flemish; that is, 1l. 16s. 7.08d. 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 1l. 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, stivers, pennings, may be changed into sterling, by saying,

As the given rate to 1l. sterling,

So the given Dutch to the sterling sought.

EXAMPLE I. A merchant in Britain draws on Amsterdam for 782l. 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 stivers; 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 stivers, and one penny odd will be half a stiver, or 8 pennings, as follows:

3. Change 591l. 5s. Flemish into sterling money, exchange at 37s. 6d. Flemish per 1l. Sterling.

Exchange. Flem. Ster. Flem.

s. d. L. L. s.

If 37 6 : 1 :: 591 5

Ans. 314 5 8 Ster.

Decimally.

5) L. L. 5) L.

If 1.875 : 1 :: 591.25

5) .375 5) 118.25

5) .075 5) 23.65

.015 .015 4.73(313.3

45

23

15

80

75

50

45

*5

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.

Exchange. Books and accounts are kept at the bank, and by most people in the city, in marks, schilling-lubs, and pennings; but some keep them in pounds, schillings, 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 $\backslash frac\{4\}\{5\}$ of a penny sterling; and is something better than in Holland, where it is only $\backslash frac\{1\}\{5\}$d. sterling.

The par with Hamburg, and also with Antwerp, is 35s. 6$\backslash frac\{1\}\{2\}$d. Flemish for 1l. sterling.