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* 1.1BEfore I enter this vast subject of Orders and Commissions, I will briefly shew how the ac∣counts of these Orders and Commissions are made, being only given by the expert and sub∣tle beads of Bankers and Exchangers, conversant in the course of Exchanging, which sorts of Com∣mission
or Orders, are wrought partly by the Rule of Three Direct, and partly by the same Rule backward; and the better to distinguish those that are made Direct, and those that are made backward, it is requisite, that the course and manner of Exchanging from one place to another be precisely known and learned, and how that place to which the Commission is sent and given, draw or remit either by a certain or uncertain rate, and such Commissions ought to be made by the Rule of Three backward, taking one of the prices, which are found, for Divisor, and the other two, which are the order'd prices, take for the sum to divide by; and it is to be noted, that the first price, which is taken for Divisor, be of the same place as the last: and to know wherein what is meant by this word certain and incertain, I shall now declare it.
* 1.2A Certain Exchange is no other, than to give a settled price, which varieth not in Exchanging, and hath no change or alteration, as it is seen in Lions, or in Placentia, which gives always Crowns 100, or Crown 1, to have in Naples Ducats 130 more or less, and this 100 Crowns, or 1 Crown is never found to alter, and therefore term'd by Exchangers to be the certain price.
* 1.3Incertain Exchanges is a price that is observed unconstant, and which admits of variation, which shall be when the place which exchangeth, giveth a number of Crowns, Ducats, or Sols, or of any other money which cometh not to the just sum of 100, or else exceedeth the same, and therefore the same not being firm and stable, are named incertain Exchanges, as subject to alteration, sometimes more or sometimes less, which is rightly and well to be considered and understood in Orders and Commissions of Exchanges given.
When the place then wherein the Commission is to be effected, giveth to the places whereto it ought to remit, and draw, to both of them the Incertain, the account must be made by the Rule of Three Forward or Direct, taking for first and second number the prices that have been orde∣red, and for the last number of the said Rule take one of the prices that are found in such a manner, that the first Exchange of the said Rule be of the same place as the latter. Likewise, when the said place where the Commission is essected, giveth to the places that it ought to remit, and to draw to both of them the certain, the account thereof is made by the said Rule of …Three forward; as by Example;
* 1.4Order and Commission is given for a Merchant to his friend at Lions, to remit to Naples at Ducaes 126½, and to prevail for Rome at 85 Crowns, or at another price differing therefrom, provided that it may be done without loss, it is found to remit to Naples at 125⅓ Ducats, I would now know at how much might the same be drawn for Rome, to the end that this Commission be fully and justly effected.
It is here first to be considered, that Lions giveth the price certain to the said two places of Naples and Rome, and therefore by that account it must be made by the Rule of Three for∣ward, saying, If Ducats 126½ give Crowns 85, the inordered price, how many will Ducas 125⅓ give, the price found for Naples, and it will come to Crowns 84. 4. 4, and at that price you must draw for Rome.
By this Commission then it is to be understood, that those of Naples will have Ducats 126½ in Remittance, in that place, and be Debitors in Rome Crowns 85; who finding to remit at Da∣cats 125⅓, it giveth loss, receiving less than that which is inordered; and making the ac∣count in this abovesaid manner, it is found, that the Draught ought to be made at Crowns 84. 4. 4. which is to profit, becoming this way a less Debitor than that which was inordered, which c•…•…th to recompence the loss which is made in the Remittance; as for Example shall appear; 〈 math 〉〈 math 〉
To prove this account, by which may be clearly known how this Commission remaineth per∣fectly effected, do in this manner.
Presuppose, that those of Naples have given the Commission for Crowns 2000 of Gold of Estampe, or de Camera, which they would draw for Rome, and remit the value for Naples: you must first see how much the said Crowns of Estampe are worth in Crowns of the Sun, at Crowns 85 per cent. the inordered price, and it will come to Crowns 2352. 18. 9. of Gold of the Sun, out of which you must take ⅔ per cent. for provision, and there will remain Crowns 2343. 10. 7. the which must be remitted to Naples at the price inordered of Ducats 126½ per cent. and it will come to Ducats 2964½, or thereabout.
So that it doth appear, the said Crowns 2000 of debt in Rome, are made by Remittance to Naples, Ducats 2964½.
Now then it is to be observed in the prices (different from the order given) which are found that is to say at Crowns 84. 4. 4. for Rome, and at Ducats 125⅓ for Naples, if for the said Crowns 2000 by Draught to Rome, a Remittance may be made of the abovesaid Ducats 2964½; and the better to know it, it must be seen, how much the said sum of Crowns of Estampe are worth in Crowns of Gold of the Sun, at Crowns 84. 4. 4. per cent. which will come to Crowns 2374. 16. 6 Crowns of the Sun; out of which, taking the provision at ⅖ per cent. there will re∣main Crowns 2365. 6. 7. which must be remitted to Naples at the said price, which is found of 125⅓ per cent. and it will make in Ducats 2964½, or thereabouts by Remittance to Naples; the which sheweth the said Commission is perfectly accomplished, in conformity of the order given. For Example; 〈 math 〉〈 math 〉
I could add many of these Examples for the illustration of this point of Commissions, but I forbear to do it, because the Examples might prove tedious and intricate, and the rather be∣cause I may publish in this kind some things that I have already roughly drawn, if I find that my labours this way prove grateful; and therefore touching other circumstances and questions that may arise in the Exchanges practised in Lions, I will refer the same to the ingenious lover of this Art and Mystery, having set down sufficient to exercise both the head and the hand of the sludious, and which may afford matter for greater variety in the next place; therefore I will in the next place survey the Exchanges practised in Rome, after the same manner.
Of Orders and Commissions given and re∣ceived for Draughts and Remittances in Lions.
Certain price in Exchanges.
Incertain price in •…•…¦changes.
Example of a certain and incertain Ex∣change.