7. The firm of X, Y, and Z lost $4500; X had $3200 employed for 6 months, Y $2400 for 7 months, and Z $1800 for 9 months: what was each partner's loss?

8. A, B, and C hired a pasture for $60; A put in 15 oxen for 20 days, B 17 oxen for 16 days, and C 22 oxen for 10 days: what rent ought each man to pay?

9. In a certain adventure A put in $12000 for 4 months, then adding $8000 he continued the whole 2 months longer; B put in $25000, and after 3 months took out $10000, and continued the rest for 3 months longer; C put in $35000 for 2 months, then withdrawing of his stock, continued the remainder 4 months longer; they gained $15000: what was the share of each?

GENERAL AVERAGE.

525. The term General Average, in commerce, signifies the apportionment of certain losses among the different interests concerned, when a part of the cargo, furniture, &c., of a ship has been voluntarily sacrificed to preserve the rest. (Art. 466.)

The property thus sacrificed is called the jettison.

526. Losses thus incurred are charged to the ship, the cargo, and the freight, pro rata; or according to the value of each. The contributory interests are to be freed from all charges upon them before the average is made.

OBS. 1. In estimating the freight, in New York, one-half, but in most ports one-third is deducted from the gross amount, for seamen's wages, pilotage, and other small charges.

2. In the valuation of masts, spars, cables, rigging, &c., of the ship, it is customary to deduct a third from the cost of replacing them; thus calling the old, two-thirds the value of the new, in making the average.

3. The cargo is valued at the price it would bring at its destined port, after the storage and other necessary charges are deducted. The property sacrificed must be taken into the account as well as that which is saved.

527. General Average may be calculated both by Analysis and Partnership. (Arts. 466, 522.)

OBS. 1. Losses arising from the ordinary wear and tear, or from a sacrifice made for the safety of the ship only, or a particular part of the cargo, must be borne by the individuals who own the property lost, and not by general average.

2. General average is not allowed, unless the peril was imminent, and the sacrifice indispensable for the safety of the ship and crew.

a cargo

10. The ship Minerva from London to New York, had on board valued at $75000, of which A owned $30000; B $27000; and C $18000; the gross amount of freight and passage money was $11040. The ship was worth $40000, and the owner paid $520 for insurance on her. Being overtaken by a severe tempest, the master threw $18000 worth of A's goods overboard, and cut away her mainmast and anchors; finally, he brought her into port, where it cost $2796.75 to repair the injury: what was the loss of each owner of the ship and cargo?

Now $20000X30000-$120000-$5000, loss of A.

$20000 X 27000÷$120000=$4500

$20000×18000÷$120000=$3000

$20000 X 39480-$120000=$6580
$20000X 5520÷$120000=$ 920

B.

C.

Ship.

66

Freight.

PROOF.-Whole loss (Ax. 11.) $20000, the same as above.

Note. We may also find what per cent. the loss is; then multiply each contributory interest by the per cent. Thus, since $120000 lose $20000, $1 will lose 12 of $20000; and 20000÷$120000=.16; that is, the loss is 16 per cent. Now $30000×.163=$5000, A's share of the loss. The loss of the others may be found in a similar manner.

EXCHANGE OF CURRENCIES.

528. The term currency, signifies money, or the circulating medium of trade.

529. The intrinsic value of the coins of different nations, depends upon their weight and the purity of the metal of which they are made. (Art. 245. Obs.)

OBS. For the present standard weight and purity of the coins of the United States, see Arts. 245, 246. For that of British coin, see Art. 248. Obs.

530. The relative value of foreign coins is determined by the laws of the country and commercial usage.

OBS. The legal value of a pound sterling in this country has been different at different times. By act of Congress, 1799, it was fixed at $4.444. In 1832 its value was raised by the same authority to $4.80; and in 1812, to $4.84.

531. The process of changing money from the denominations of one country to its equivalent value in the denominations of another country, is called Exchange of Currencies.

CASE I.-Reduction of Sterling to Federal Money.
Ex. 1. Change £60 sterling to Federal money.

Solution.-Since £1 is worth $4.84, £60 are worth 60 times as much, and $4.84 X 60-$290.40. Ans.

2. Change £8, 7s. 6d. to Federal money.

Operation. $4.84

8.375

$40.535 Ans.

We first reduce the 7s. 6d. to the decimal of a pound; (Art. 346;) then multiply $4.84, and £8.375 together, and point off the product as in multiplication of decimals. Hence,

532. To reduce Sterling to Federal Money.

Multiply the legal value of one pound, $4.84, by the given number of pounds, point off the product as in multiplication of decimals, and it will be the answer required. (Art. 324.)

If the example contains shillings, pence, and farthings, they must be reduced to the decimal of a pound.

QUEST.-528. What is meant by currency? 529. On what does the intrinsic value of the coins of different countries depend? 530. How is the relative value of foreign coins determined? Obs. What is the value of a pound sterling? 531. What is meant by ex change of currencies? 532. How is Sterling money reduced to Federal?

OBS. 1. The reason of this rule is obvious from the principle that £5 are worth 5 times as much as £1, &c.

2. The rule usually given for reducing Sterling to Federal Money, is to reduce the shillings, pence, and farthings to the decimal of a pound, and placing it on the right of the given pounds, divide the whole sum by. This rule is based on the law of 1799, which fixed the value of a pound at $4.444, and that of a dollar at 4s. 6d. But $4.444 is 9 per cent. of itself, or 40 cents less than $1.84, which is the present legal value of a pound; consequently, the result or answer obtained by it, must be 9 per cent. too small. A dollar is now equal to 49.6d. very nearly, instead of 54d. as formerly.

533. From the preceding rule it is plain that Guineas, Francs, Doubloons, and all foreign coins, may be reduced to Federal money, by multiplying the legal value of one by the given number.

Change the following sums of Sterling to Federal money:

CASE II.-Reduction of Federal to Sterling Money.

18. Change $40.535 to sterling money.

Solution. Since $4.84 are worth £1, $40.535 are worth as many pounds as $4.84 are contained times in $40.535; and $40.535 $4.84-8.375; that is £8.375. Now reducing the decimal .375 to shillings and pence, (Art. 348,) we have £8, 7s. 6d. for the answer. Hence,

534. To reduce Federal to Sterling money.

Divide the given sum by $4.84, (the value of £1,) and point off the quotient as in division of decimals. The figures on the left hand of the decimal point will be pounds; those on the right, decimals of a pound, which must be reduced to shillings, pence, and farthings. (Art. 348.)

OBS. Federal money may be reduced to Guineas, Francs, or any foreign coin, by dividing the given sum by the value of one guinea, one franc, &c.

QUEST.-533. How may foreign coins be reduced to Federal money? 534. How is Fed eral money reduced to Sterling?

Change the following sums of Federal to Sterling money:

535. Previous to the adoption of Federal money in 1786, accounts in the United States were kept in pounds, shillings, pence, and farthings.

OBS. At the time Federal money was adopted, the colonial currency or bills of credit issued by the colonies, had more or less depreciated in value: that is, a colonial pound was worth less than a pound Sterling; a colonial shilling, than a shilling Sterling, &c. This depreciation being greater in some colonies than in others, gave rise to the different values of the State currencies.

In N. E. cur., Va., Ky., Tenn., Ia., Ill., Miss., Missou.,
In N. Y. cur., N. C., Ohio, and Mich.,

In Penn. cur., New Jer., Del., and Md.,

In Georgia cur,, and South Carolina,

In Canada cur., and Nova Scotia,

6s. or £3=$1.

8s. or £=$1. 7s. 6d. (74s.) or £3=$1. 4s. 8d. (43s.) or £$1.

Ala., La., Ark., and Florida use Federal Money exclusively.

5s. or £=$1.

CASE III.-Reduction of Federal Money to State currencies. 31. Reduce $63.25 to New England currency.

Solution. Since $1 contains 6s. N. E. cur., $63.25 contains 63.25 times as many; and 6s. X 63.25=379.50s. Now 379-20 =£18, 19s., and .5s.X12=6d. (Art. 348.) Ans. £18. 19s. 6d.

536. Hence, to reduce Federal money to State currencies. Multiply the given sum by the number of shillings which, in the required currency, make $1, and the product will be the answer in shillings, and decimals of a shilling. The shillings should be reduced to pounds, and the decimals to pence and farthings. (Art. 348.) 32. Reduce $450 to New England currency. 33. Reduce $567.50 to New York currency. 34. Reduce $840.10 to Pennsylvania currency.

35. Reduce $1500 to Canada currency.

QUEST-535. Previous to the adoption of Federal money, in what were accounts kept? 536. How is Federal money reduced to the State currencies ?