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89. To find the face of a note when the proceeds, time, and rate are given.

EXAMPLE.—The proceeds of a note discounted at a bank for 45 days at 6% were $1,488. What was the face of the note?

SOLUTION.

$1 - $0.0075 $.9925.

Interest of $1 for 45 days = $0.0075.
Proceeds of $1 due in 45 days
Face of the note = $1,488 $.9925 $1,499.24. Ans.

90. Rule.-Divide the given proceeds by the proceeds of $1 for the given time, and the quotient will be the face of the note.

EXAMPLES FOR PRACTICE.

91.

Solve the following examples:

1. A 60-day note discounted at a bank at 6% yields $1,246.77. What is its face?

Ans. $1,259.36.

2. The proceeds of a note for 2 mo. 12 da., discounted at a bank at 7%, are $1,079.625. Find the face of the note.

Ans. $1,137.55.

3. Given, rate of discount, 8%; time, 90 days; proceeds, $3,613.74. Ans. $3,687.49. Find the face of the note.

4. Given, rate of discount, 7%; time, 30 days; proceeds, $86,382.13. Ans. $86,888.98. Find the face of the note.

5. Given, time, 51 days; rate, 4%; proceeds, $484.57. What is the Ans. $487.33. face of the note? A note for 60 days discounted at 44% yields $81,815.33. What is Ans. $82,433.58. its face?

7. Write in proper form a 60-day note payable at the Chemical Bank of New York, which, if discounted when the note is made, will yield at 5%, $7,850 proceeds. Ans. Face, $7,915.97.

DUTIES.

92. Duties, or customs, are taxes levied by governments on imported goods for the purpose of producing revenue and for the protection of home industries.

93. There are two kinds of duties: ad valorem and specific. An ad valorem duty is estimated at a certain per cent. of the market value of the goods in the country from

which they are imported; as, silks, 50%, musical instruments 15%, etc. The market value of the goods is the invoice value after deducting discounts and before extra charges, such as commission, freight, boxing, etc., are added.

94. A specific duty is a duty levied on imported goods according to the weight, measurement, or number of the articles, without reference to their value; as, wheat 15 cents per bushel, coal 75 cents per ton, etc. Some kinds of merchandise are subject to both ad valorem and specific duties. In computing specific duties, the long ton of 2,240 pounds and the hundredweight of 112 pounds are used.

95. An invoice is an itemized statement of the merchandise shipped. It contains the names of purchaser and seller, a description of the quality and quantity of the goods, the price and incidental charges. Invoices are made out in the weights and measures and the currency of the country from which the goods are imported. Thus, the price and cost of goods imported from Germany would be given in marks; from France, in francs; from England, in £ s. d.

96. Before computing duties the following allowances. are made: Tare, a deduction for the weight of boxes or crates; leakage, an allowance for loss of liquids imported in barrels or casks; and breakage, an allowance for loss of liquids imported in bottles. The net quantity is what remains after deducting tare, leakage, or breakage.

97. Ad valorem duties are computed by the rules of percentage; the net invoice price is regarded as the base, the ad valorem duty as the percentage, and the rate of duty as the rate.

Duties are not computed on fractions of a dollar; if the cents are less than 50 they are rejected; if more, they are counted as a dollar.

98. Rule. To find the ad valorem duty, reduce, if necessary, the net invoice price to U. S. money, deduct allowances, and multiply the remainder (expressed in even dollars) by the rate of ad valorem duty.

To find the specific duty, multiply the net quantity by the rate of specific duty per unit of quantity.

EXAMPLE 1.-What is the duty on an invoice of silks valued at 24,360 francs, the ad valorem rate being 60%?

SOLUTION.-Referring to Art. 98, 24,360 francs

$4,701 X .60

$4,701.48. Duty
= $2,820.60.
The 48 ct. is rejected, being less than 50 ct.

Ans.

= 24,360 X .193

(Art. 97.)

EXAMPLE 2.-What is the duty on 820 gallons of brandy at $1.50

EXAMPLES FOR PRACTICE.

99. What is the ad valorem duty on an importation invoiced at
(a) £430 12 s. 4 d., allowing 5% breakage, rate of duty 40% ?
(b) 36,750 lira, allowing 2% for tare, rate of duty 24%?

(d) 4,700 yen, rate of duty 14% ?

Ans.

√(6) $1,668.24.

$796.40.

What is the specific duty on an importation of

(e)

(f)

3,200 bushels potatoes at 15 cents per bushel? 60 dozen bottles of wine at $3.00 per dozen, breakage 10%? (g) 125 gross of empty bottles, breakage 6%, duty 10 cents per dozen?

(h) 3 tons 6 hundredweight of iron castings at cent per pound?

1. What is the duty on 25,670 pounds of pig iron at $5.00 per ton? Ans. $57.30.

2. What is the duty on five blocks of marble each 12 feet long, 4 feet wide, and 24 feet thick, at 65 cents per cubic foot? Ans. $390.

3. What is the duty on an importation of 2,650 yards of woolen goods weighing 620 pounds net and valued at 72 cents per yard, the rates of duty being 60 cents per pound and 30% ad valorem? Ans. $944.40.

4. An importation of musical instruments from Germany is valued at 13,670 marks; what is the duty at 17% ad valorem? Ans. $569.28.

5. An importer buys French silks at $1.80 per yard and pays a duty of 35% ad valorem, and $.60 per yard specific; at what price per yard must the silk be sold to yield a profit of 25% ? Ans. $3.79.

6. What is the duty at 65%, upon a consignment of 1,350 dozen kid gloves invoiced at 115 francs per dozen? Ans. $19,475.95.

CONVERSION OF CURRENCY.

100. For commercial transactions between importers and exporters, each country has established a monetary system different from the systems of other countries; it is important, therefore, to know the equivalents of these different systems. For every country, either gold or silver has been chosen as the standard. A certain fixed weight of that standard has a name, and is called the monetary unit. In most countries, this unit is not coined; thus, the pound sterling is coined, but the gold dollar, the gold franc, the gold mark, etc. are not.

The gold valuations of these units are proclaimed each year by the Secretary of the Treasury of the United States, and these valuations are used in custom-house computations of the value of all importations of merchandise.

101. The following table gives a list of the countries having fixed currencies, their standards, monetary units, United States gold equivalents, and their principal coins.

COUNTRIES WITH FIXED CURRENCIES.

NOTE.-The following official (United States Treasury) valuations of foreign coins do not include "rates of exchange.