nder a burning sun in
sea-port towns, during the busy shipping season.]

At a time when the Spanish dollar, the piece of eight, as it was then
called, was both finer and heavier than the coin now in circulation, its
value at the mint price of silver** was found to be 4 shilling 6 pence
sterling. Accordingly, the pound currency was fixed at 18 shillings
sterling, and 90 pounds sterling was equal to 100 pounds currency, the
rules of conversion being, _add one-ninth to sterling to obtain
currency, and deduct one tenth from currency to find the sterling_. This
was called the par of exchange, and was so then. So long as it continued
correct, fluctuations were from a trifle above, to a trifle below par,
and this fluctuation was a real _premium_ or _discount_, governed by the
cost of the transportation of bullion from the one to the other side of
the Atlantic, an expense which now does not exceed, and rarely equals, 2
per cent. 4 shilling 6 pence has long ceased to be the value of the
dollar. Both the weight and purity of the coin have been reduced, until
its value in the London market*** is not more than 4 shillings 2 pence,
the pound currency being consequently reduced to 16 shillings 8 pence
sterling and 100 pounds sterling become equivalent to 120 pounds
currency, or 480 dollars, the common average rate now given for the 100
pounds sterling bill of exchange in England.

[** The mint price then coincided more nearly with the market price than
at present.]

[*** It is necessary to use the market price, as the difference between
the mint and the market price is 4 per cent., and as the Spanish dollar
possesses no conventional value, it is only worth what it will bring as
an article of traffic.]

The Government, however, still sanction, nay, will not change, the old
language, so that the difference is made up by adding what is commonly
termed a _premium_. The difference between the _real_ par, 4 shillings
2 pence, and the nominal par, 4 shillings 6 pence, is 4 pence or eight per
cent. Thus the fluctuations, instead of being from 1 to 2 per cent.
below, to 1 or 2 per cent. above the _real_ par, are from 1 to 2 per
cent. below, to 1 to 2 per cent. above 8 per cent. _premium_ as it is
called on the _nominal_ par, or from 6 or 7 to 9 or 10 per cent.
_premium_ on the par. This leads to gross deception, and the emigrant in
consequence is not unfrequently outrageously cheated by parties
accounting to him for money obtained by sale