367
converted
Adding the hint charge of 2%. It follows that Sycee cannot be profitably melted until the premium falls to about ½ d. The ruling price at present is about 8 d.
Omitting Mexican dollars from calculation because no advantage could apparently accrue to the holder from their recoinage, the question simply is, Is the premium on Sycee likely to fall so low as to make a profit to be made in its conversion into Mexican dollars?
Upon this it is necessary to consider what it is that affects the price of silver in Hongkong, and I think it may safely be taken to be the rate of exchange on India, which is regulated of course by the consideration of whether it be more profitable to pay India for the Council Bills on London or to remit by specie remittances.
If we remit, we must consider what the out-turn of it would be at the Calcutta Mint. In comparison with...
A Rupee in weight and fineness of 916.66 contains 165 grains of pure silver and therefore 1000 grains of silver of 17/20 fineness would convert into Rupees 3500.125. Comparing this with Hongkong dollars we find that $100 are equal intrinsically to Rupees 237.11. Freight, interest, insurance to India may be taken as about ½%.