November 21, 2010

USA, 1816: Philadelphia Price

A note in Wollaston’s hand and dated 8 December 1817 records Bollmann’s promise
“to write to Mr. Vaughan of Philadelphia for 100 or 200 lbs crude Pl at 6 Dollars on my account” 


 USD$ 6./Lb. was the known and available wholesale price in Philadelphia 1814-16.

A holograph letter from E. Bollmann to J. Vaughan dated 10 August 1816 was likely from London (received ~Oct 1.)  Dr. Bollmann left Philadelphia for London in early April and arrived in the UK May 1816 ; he had known the wholesale bulk platina to be readily available @USD$ 6./lb. avd.  

It is curious Bollman would request platina from the USA so soon after his arrival in London: this would indicate a significantly higher platina price and or scarcity in the metreopolis. 

Dr. Robert Hare's letter (1816) clearly implies a platina purchase totaling of 4 lbs. avoirdupois, sold retail avoirdupois at Philadelphia (or Baltimore ?) for USD$ 10./lbs. avd. Where 8 Ounces Avoirdupois = 7.292 Troy Ounces:

1814: 1 Troy Ounce platina (Phila., bulk, 70%)  = USD$ 0.4114
1814: 1 Troy Oz. Platinum (Assumed labor, $6.425./lb avd) = $0.44057  
1814: 1 Troy Oz. Platinum (Producer Cost, $12.50/lb avd) = $0.8520
1814: 1 Troy Oz. Platinum (Producer Est. Cost, $15./lb avd) = $1.0286
1814: 1 Troy Oz. Platinum (Manufacturer's Price, $60./lb avd) =  $4.115

1816: 1 Troy Ounce platina (retail,70%?)  = USD$ 0.6857
1816: 1 Troy Oz. Pt (intrinsic)  = USD$ 0.9797
1816: 1 Troy Oz. Platinum (intrinsic, mfg cost) = USD$ 1.42
1816: 1 Troy Oz. Platinum (est. Mfg Base Price) = USD$ 5.73
1816: 1 Troy Oz. Platinum (est. Mkt Price) ~ USD$ 12.

Refined Pt Manufacturer's Cost (double the platina ) is therefore estimated at ~$21./lbs avd., about 39% more expensive than Bollman's 1814 rate.

The 1816 Exchange with London was £ 1.: USD $5.0732
1816: 1 Troy Oz. platina (ore @ London)  = £ 0.1417  (USD$ 0.74)
1816: 1 Troy Oz. Platinum (UK import + 15% tariff) = USD$ 6.78

 
Citation: The life of Robert Hare: an American chemist (1781-1858) By Edgar Fahs Smith, 1917, p.44

The July 1816 The Portico of Baltimore carried a notice from a pseudonym "L. B. Alberti"

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