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#1
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Equivalent values
In 1862, what was one British Pound Sterling worth in U.S. dollars?
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#2
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Equivalent values
On Oct 29, 8:18*pm, GARY wrote:
In 1862, what was one British Pound Sterling worth in U.S. dollars? Sovereign Actual Gold Weight (AGW) divided by Five Dollar Liberty AGW equals One pound (unit) divided by Five Dollars (unit) (0.2354) divided by (0.2419) = x divided by 5.00 eventually, move the variables around until: x = (0.2354) times (5.00), the resulting number all divided by (0.2419) x = 4.8656 One Pound (in Gold) equals $4.856 (in Gold) This is simply a comparison of the respective gold weights of the Sovereign and the $5 Liberty. Paper money (banknotes) or other financial paper not considered here. Pounds and Dollars were just "labels" for certain amounts of gold in various national currency systems. In the end, it all came down to the weights of pure gold in the coins. oly |
#3
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Equivalent values
On Oct 29, 9:18*pm, oly wrote:
On Oct 29, 8:18*pm, GARY wrote: In 1862, what was one British Pound Sterling worth in U.S. dollars? Sovereign Actual Gold Weight (AGW) divided by Five Dollar Liberty AGW equals One pound (unit) divided by Five Dollars (unit) (0.2354) divided by (0.2419) = x divided by 5.00 eventually, move the variables around until: x = (0.2354) times (5.00), the resulting number all divided by (0.2419) x = 4.8656 One Pound (in Gold) equals $4.856 (in Gold) This is simply a comparison of the respective gold weights of the Sovereign and the $5 Liberty. *Paper money (banknotes) or other financial paper not considered here. Pounds and Dollars were just "labels" for certain amounts of gold in various national currency systems. *In the end, it all came down to the weights of pure gold in the coins. oly Damn fingers and eyes don't quite work together like they used to: x = 4.8656; One Pound (in Gold) equals $4.8656 oly |
#4
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Equivalent values
oly wrote:
Damn fingers and eyes don't quite work together like they used to: x = 4.8656; One Pound (in Gold) equals $4.8656 Actually a dollar was 23.22 grains of fine gold, a pound was roughly 113.001 grains of fine gold, so the gold rate of exchange was 486.65. This is very close to 4.86 2/3 which was the number most people learned. I think the question was about 1862, when the US paper dollar was in a bit of trouble. The worst date was 11 July 1864 when it cost $2.78 US paper to buy a gold dollar or a Canadian dollar. So at that time, it would cost as much as $13.53 US paper to buy a sovereign. Peter. -- a oly |
#5
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Equivalent values
On Oct 30, 7:31*am, Peter Irwin wrote:
oly wrote: @#!*% fingers and eyes don't quite work together like they used to: x = 4.8656; One Pound (in Gold) equals $4.8656 Actually a dollar was 23.22 grains of fine gold, a pound was roughly 113.001 grains of fine gold, so the gold rate of exchange was 486.65. This is very close to 4.86 2/3 which was the number most people learned. I think the question was about 1862, when the US paper dollar was in a bit of trouble. The worst date was 11 July 1864 when it cost $2.78 US paper to buy a gold dollar or a Canadian dollar. So at that time, it would cost as much as $13.53 US paper to buy a sovereign. Peter. -- a oly The United States paper dollar (greenback) didn't get back to par with the Gold dollar until 1879, I believe. During 1862 to 1879, if you wanted gold for your paper notes, it took more than $1 in paper to get $1 in gold coin. I'm not a paper money collecting person, but there wasn't Federal paper money until 1862-ish, the worst trouble (depreciation) was a bit later than that. I used the illustration of the gold sovereign versus five dollar gold as they were nearly physical gold weight equivalents and (for some people) it is easy to see how the small gold content difference in the two coins amounted to a nominal "fifteen cents". As you have shown, the math can be expressed quite a few different ways. In the nineteenth century, "pound" and "dollar" were essentially two different national "brand names" for the same product, gold. Then, the "exchange rate" for gold between nations was a purely mathematical exercise; if the exchange rate in the money center marketplaces varied by only two or three percent, gold would actually shift/move between respective countries until the exchange markets moved back closer to par. oly |
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