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Exchange Regulations, Etc

1 The par of exchange with Britain, deduced from the gold coins, is 49 pence per dollar, equal $4.86% cents per £1 sterling. But in practice the rate is at present expressed in paper currency, valued, in 1874, at about $4.90 for bills on London at 3 days' sight; gold standing at 110.

Until January 1, 1874, the rate was stated (as particularly explained in the section on Exchange) by a percentage upon an assumed par of 4s. 6d. per dollar. The true par stated in this form is nearly 9½ per cent. premium; or, as expressed in the Act of March, 1873, $4.8665 in the new method = 109.4558 in the old method (Act March 3, 1873).

In London the premium method of valuing American securities was at same time discontinued; they are now quoted at the number of dollars and cents per $100, reckoning, for facility of computation, the dollar at 4s. The "par 103" by this method is based on a valuation of the dollar at 4s. 1½d. nearly. Bills on Europe are commonly drawn at 60 days' sight, or 75 days' date. The days of grace are 3; but bills at sight have no days of grace. The principal holidays are January 1, Decoration Day, July 4, Labor Day, Thanksgiving, Christmas Day, and Presidential Election Day.