The Sun. — London, England, 1816-04-19 00:00:00

NATIONAL CURRENCY. Tentlllt - 43 TO THE EARL OF LAUDEttbAtt. LEtTEIt M toRD,--Having in any former letter shown bow an un►avourable balance of payments affects the bullion market, I now proceed to trace out the manner in which the same cause alters the relative value of bullion and of coin. In the first place, metal in the form of bullion is a more eligible article of export than metal in the form of coin. By assaying a small portion of a bar of gold, we ascertain the fineness of the whole; but in order to ascertain with equal , exactness the fineness of a quantity of gold in the state of coin, we must either assay each indivi dual piece, or else melt the *hole, and then assay a portion of the united mass. The first would be an almost _endless process; and even the latter would be attended with more trouble, delay, and expence, than ascertaining the fineness of gold already united into bars. Now, whatever might be the amount of the greater labour, delay, and expellee, which would be necessary' to insure us, that no counterfeit cir adulterated pieces had been insinuated amongst the coins, to that amount would gold in bars be more va luable, for • the payment of a foreign . debt, - than an equal quantity of the metal in the form of coin. Besides, the friction to which the current coin is exposed will always prevent it from containing the legal and standard quantity of metal. Except at the moment when they are issued from the Mint, forty-four guineas and a half will never he found to contain a pound of gold. Now, as tar as the purposes of domestic trade are concerned, this loss of weight may exist too considerable extent without depriving the current- coin of any portion of its value. If the demand for coin were to increase, while the de mand fur bullion remained stationary, then the former would become more valuable than the let ter ; or, in other words, the market price of gold would sink. below its Mint price. Even iii England, where nothing is charged for coinage, the trouble and delay incurred by carrying bullion to the Mint is estimated at one per cent. An in creased demand for currency; therefore, must raise the value of coin more than one per cent. abeere the value of bullion, before it can become the interest of individuals to carry their metal to the Mint. But if metal in the form of coin "way be rendered more valuable, by one per cent., than metal in the form of bullion, it is evident that 44; guineas may lose one per cent. from friction, and yet retain their eqnivulency to a pound of gold. An uutavolirable balance of foreign pay ments, however., would immediately deprive them of rile equivalency. Vorthe purpose of a foreign remittance, the weight and fineness of the metals are the only things considered; and consequently the current coin, which necessarily tom some• thing by friction, and amongst which counterfeit pieces may be insinuated, becomes lose. valuable than lxilliuu. Hence the operations of the Mint, though they may render the metals mote valuable for the purposes of domestic circulation, will yet, by a double . operation, render them less valuable for the purpose of exportation ; and hence, when ever an unfavourable balance of payments leads a eubteaction of the metals, the increase in the value of bullion will be greater than the increase in the value of the domestic coin.* We will as sume that the difference thus induced between the value of bullion and of-coin, may amounuto one per cent. In the second place, those laws which, in al most every country, have been enacted for the purpose of preventing the inciting down and ex porting of the coin, must necessarily, whenever an unfavourable balance of payments diminishes the supply of specie, cause metal in 'the form of bullion to rise in a higher ratio than metal in the form of coin. It is no doubt true, that as long Its the metals are - the most eligible basis- of extraordinary exportation, all laws prohibiting the coin front being melted and sent abroad, will be evirded by self interest. But then, evading the laws will always be attended with risk and txpencei and therefore, to the full amount of these, metal in the torus of coin will, during an unfavourable balance of payments, experience a less rise than metal in the Corm of bullion. Gold, which could be sworn off for exportation ,was, during the great foreign expenditure occasioned by the war, three per cent. dearer than gold of equal fineness which could not be legally sent abroad. We shall therefore take three per cent. as the . amount of the difference which the laws against defacing and exporting the coin may, when an unfavourable balance of payments di minishes the supply of the metals, induce be tween the -Value, of gold bullion and of gold coin. In the third place, whenever an unfavourable balance of payments diminishes the supply of spe cie in the home market, the value of gold, as we have already seen, must, to the full amount of the difference in the expence of transmitting the tees metals, experience a greater rise titan the value assayer. We have assumed this difference in the expence of transmission to- be five per cent. If this be correct, during an unfavourable balance, gold bullion would become more valuable by five - per cent, than the silver coin even though this coin should, during the unfavourable balance, re tain its full bullion worth. But this, as we have already seen, it Could not' retain. Domestic silver coin could nut rise so high as silver bullion, be- * An unfavourable balance of payments may sometimes render foreign , coiu more valuable, as an article of export, than bullion. If I owe a thousand livres to a Correspondent at Paris, transMitting French coin to that amount alight be cheaper than transmitting bullion, .which, when it arrived at its destination, would have to be asgayed and sold, before it could effect the desired payment. But though in this ease a premium might be given for French coin, yet the coin of F.:Timid would he found less valuable than bullion. Fur this Coin not passing by tale as a legal tender in Paris, would elso require to be assayed and sold, before it could effect time payment of my debt. But assaying it would be more trouble gOtOe and expensive than assaying bullion t and hence, fir the purpose of exportation, it would he of less value. This principle accounts for the fact, that during our great foreign expeoditure in the Peninsula, Spanish coin sold in our meant enual cause it would be te - ss eligible for the par - petit% of exportation ; and because, to this natural.aud ne cessary drawback would tie tided the artificial and accidental drawback arising from the laws which prohibit the defacing end exporting of the chin. The first we have taken at one Tier cent. ; anti the second, as it is more difficuL, on actOtirst of the greater bulk j to smuggle silver than gold, we may take at four per cent. Thus then, under these assumptions, an unfavourable balance tat pay ments tray cause silver bullion to rise by five per cent, higher films it raises silver coin of standard Weight and fineness. Bet the same cause has, by the dikrince in the expence of carriage, which we take at. five per cent, increased the value of gold beyond what it may have increased the saline of silver ,bullion. Consequently, gold bullion must have received an elevation of ten per cent. above silver coin. Thus an unfavourable balance of foreign pay ments, independently of the deterioration of the coin; to which it may give occasion, leads by a threefold process, to a difference between the value of bullion and of staildar4 coin. In the first place, it gives metallic bars and masses an advantage over small metallic pieces ; in the second place, it elevates the tfietal which can be sworu off for exportation, above that which can not be legally sent out of the country ; and in the third place, it alters, by the amount of the diffe rence in the expence of carriage, the customary and level value of the metals from which the coin age is composed. The second of these causes of variation arises out of the-lases which prohibit the defacing and exporting of the coin ; and by the relu of such laws it might be removed. But the first and the third causes of the difference between the value of bullion and of coin, are not of this accidental and arbitrary nature ; and would con tinue to produce their effect, though every restric tion upon trafficking in the coin of the tyaloa were removed. The difference between the value of bullion and of coin is, while, coin constitutes the currency, the same thing as the difference between the market and the mint price of the metals. By the regulations of the mint, a pound of gold is coined into 44 guineas and a half ; consequently, 44 guineas and a half constitute the mint price of a pound of gold. But if the causes above explained should raise gold bullion four- per cent. above the gold coin, then of course it nould require more I then 44 guineas and a half, to purchase a pound .t of gold ; • or, ie other words, the market price of the metal would be elevated above its mint price. Again, an ounce of silver is, by the regulations of the mint, 'coined into 5 I.6th : 55.2 d. therefore, is the mint price of the ounce of sil ver. But should silver bullion, from the above causes, have risen five per cent. above the silver coin, it woeld require more than si. 2d. to pur chase an ounce of silver, and the market price of this metal would rise five-per cent. above its mint price. Once mnra,,-..the mint prlti of are doned . of gold is 31. I7s. OP. Now the pound sterling j is a denomination-standing for four ounces, all tO a small fraction, of coined silver, lf, therefore, under the circumstances already stated, gold bul lion should rise five per cent. above gold coin, and silver bullion five per cent. above silver coin, then it is evident that 31. I7s. M i d. could no longer be identical with t u t ounce of gold ; but that the market price of this metal, when ex. pressed in the pound sterling and its fractions, would have risen ten per cent, above its mint price. Whenever the market price of the metals rises above their mint price, the question of deprecia tion presents itself for consideration. Now, the term depreciation always implies a diminution of value. It is only when the money of a country has lost'a portion of its exchangeable value, that it can justly be said to be depreciated. If, - while the precious metals retained their customary re lation to other things, the coin should be clipped, or worn, or adulterated, its value would sink, and it would be in a state of, depreciation,', Again, if a diminution of commercial transactions, or the -introduction of greater economy in the use of currency, should diminish the demand for mo ney,, then the coin would become redundant with respect to bullion : though of standard weight and fineness, it would, to the full amount of the labour and risk required to restore it to the state of bullion, lose a portion of its exchangeable va lue ; and therefore, in this case also it would be depreciated. But when an tinfavourable.halance of foreign payments diminishes the supply of the metals, and raises the market price of bullion above its mint price, the effect is very different. In this case, the value of money is raised, instead of being lowered. When time metals are exported, to balance an unfavourable account, bullion . , s We have seen, will rise in a higher ratio than coin!; her then, as soon as the rise in the valueof the metals exceeds the premium necessary to cover the risk and expellee of exporting the - coin, the coin will also he sent out of the country, its supply diminished, and its value raised. Now when coin, or the money of a country, is raised in va lue, it is a coulounding of terms, nay, an abso lute contradiction, to say that it is depreciated. Thus we see that a difference between the mar ket and the mint price of the metals, may be pro duced by distinct and very different causes; name ly, by a rise in the value of bullion, and by a fall in the value of coin. To apply the same term, and to attribute the same character, to'effects so very opposite, both in their origin and in their consequences, is surely not very philosophical or accurate. There are three distinct states in which the coin or money of a country may be placed : it may be of the same value with bullion ;—it may be of a different value from bullion, in consequence of its own value having become deteriorated ; and it miy be of a different value front bullion, not in consequence of its own value having sunk, but in consequence of the value of bullion having. risen. Now these distinct states should he marked by distinct - name:. The. first is non depreciation, the second is real depreciation, the third is appa rent depreciation. I. am your Lordship's obedient and humble scr 11111t1 AOBART TORRESS. A~irßicA. • - eoi‘tititam.R.HSTatcTidNs .---The Ceara' Fss tenthly of New Brtinswick has passed a law posing an export duly of 20s. per ton, On plaster, if it be landed north M Cape Cod. the policy or rather Object of till's meiiiiire, say the Americans; is obvioue, and is nseanctti encourage the naviga tion of theprotincd at the expente of AfassachuSets, by engrossing the exportation of plaster to the Southrn States. This measure teems to hare e*- tited 1111therOlIS complaints, and the result promises to be lietitions to Congress for redress. America rives not profess to feel that. distress in etnimserc which in Europe is so generally complained of : on the contrary, the papers say that the prosperity of the country continues to pour her treasures into the laps of their planters and merchants ; and whilst this is the case, the sciences receive a proper share of attention. RAW GOTTON.—An estimate of cotton impni•ted and consumed in England has been published in America, from which it appears probable, that the consumption this year will not exceed 300,000 bales ; quantity on hand and imports, 393.000. and may be 420,000, leaving a surplus of 95,000 or 120,000 bides.' Bridal importations of cotton are in the following proportions :—From the [Jolt ed States, 125,000 to 130,000 bales ; from Brazil and Portugal, 120,000 to 145,000 bales ; from the East Indies, probably 50,000 bales ; and from all other purrs, 75,000 bales. From this statement it results,.that the demand for American cotton in England will be reduced from year to year—an arginnent in favour of home manufactures to fur nish a market for the produce of the soil ; 33,670 bales of cotton were exported from • Savannah from October 1, 1815, to February 10, 1815► ; of which upwards of 20,000 went to Europe, princi pally to Englund. The American papers, after exultiag in their bright prospects of trade, turn their attention with equal satisfaction to the internal imprOve ments of the country. The citizens of the State of New York, they say, merit the highest praise for the exertions they are making in the grand project of uniting the waters of the Westß.rn Lakes with the Iludsou river. In a commercial view, its effects promise to. be vast and extensive, and they calculate how much cheaper the productions of the west will reach the eastern States, and part of the middle States, through this channeLthan by the circuitous route of Quebec, The manu factures of the east would spread over the western country by an easy and direct route: It will bring to the door of thousands, they say, a mar ket fur the most valuable articles,' wnich - are now not worth transporting. It will tend to eon - in:et the States, mid render the possession . of the Cuaudas of much less importance to the United States. AIstERICAN POLITICS. •trruin the New York Evening Post, March 4.3 JOHN IliNnot.ea is the author of the piece in the Natilnal Intelltgencer, published by Gardenier this morn i n g. 1"4,,i, 5,.i7 v.rly Otis; tie rind Mercer are at swords points about Monroe. Mer cer said, that Monroe had fought mid bled in the service of his country—That in consequence of a contusion on his breast he had bones taken out of his body enough to till a plate. • Ido not con tradict what yosi say, replied It. hut let him strip and a surgeon examine his body, and be **it*** if a bone is found wanting.—No, Sir, nu hones—lle has been in the Government team ever since Mr. JefiCrson seized the reins, and he has polled forward and backward,. and • this way and that, till his breast is "Chafed witli,the collar —his sides with the traceS, 'and hil.**** with the breech band. flail Columbia, happy land.— Hail you Heroes, &c. New INI PORTLD ' EDITOR..---COBREI in com pliance with the suggestion of his democratic friends at Albkay, anti in return, for :the new suit of domestic manufacture, proposes to burrow himself for New York, and set up a newspaper for the good of the natives. " I am resolved (says he in one of his last Registers) to make a great effort to secure the means of freely express ing my thoughts to millions of people out the other side the Atlantic." "It is, therefore, proposed to place in the' City of New York, souse person •to go fro England next spring, Wee of duty I suppose) who shall cause, to be printed and to he published in that City, and tleroughout the United States, such writings as the authors may not choose to press here." liming broached his plan, he, presuming . that no one who perceives what he is about, will be at any loss to guess what sort of a publication this •is intended to be; assures them, that " those- who look upon. this as a scheme for the dissemination of venom, of falsehood, of scandalous anecdote, will (after all) find themselves disappointed." And he adds, moreover, that " in any thing that I may write. for publication isbroad, I shall be doubbiscrupss lons in sticking to the troth." if Cobbet was only singly scrupulous of sticking- to the truth, be would certainly be a very tiiLferent mall from what he has been for ten years, past, .and we w ou ld dispe n se with his double scruples. We wish democrats joy on this accession to their editorial corps. (Fv,ini the Albany Angus, March 1.) SMALL Pox.—A Bill is before the Legislature, inflicting a butt upon any physician or other per son Who shall communicate the mill pox 1;y in oculation, to be sued for and recovered in the name of the overseers of the poor of the town: GUARDIANS oh DRUNKAIIDS.—A Bill making provision for the appointment of Guardians for habitual Drunkards, to tate care of their pro perty and effects, is also before the Assembly. The guardian is to be appointed by the Court of COOIIIIOII Pleas, after application, and upon the inquisition of three Commissioners, 81111 their de4 cision that the drunk a rd is unfit for the manage ment of his estate. The appoinuneut to he an nulled whenever the drunkard shall refortn, and be again capable of managing his concerns. On Monday night, of early on Tuesday morn ing, the liquor-vaidrs, under the house of Mrs. HICKS, No. 3, St. Martin's-lane, were broker' open, and upwards of 50 gallons of ruin, abor,e proof, 30 gallons of brandy, vind several gallons of Shrub, ware carried off undiscovered. ti HOSERTS.—ieSLertiAy the reetigultanceso f,tit, man were 111-_,charged ; but befOrd he is ltittts C'? set at libeity, 'muse prbtlitce Nlagi'strates at DOw-street. forrsizenai3tigl C are r S d ij it ni ol 'th cloth * it fr t o ' t i n the shop q , Mr. S. Wiggini;_ lei Liolbozit. A Gentleman se!! cidentally paSialg the theft, and had-thepii''' sower secured - . The i;oting &Roquette, in bitte . t . ' terms, acknowledged his error, but declared to be his firs! offence ; and several persons of re t . spectability pave him a 'deist ekcellent character: —lie was found guilt , but strongly r e cotnineal et! to mercy by the Jury an d p rosecutor,,,,Po, master also, to %%tom he lind been 2 Pl' r F 4di ,q 4 '' proposed again taking hint i nto gds service. • Pit': Court ittintediately discharged hint. John Reordau was indicted' for stealing,o4 2.5111 of Mardi last, from the p erson of It 3:. 1. Lane, a watch and key; ring, brooth,!ltC,-601 money to the amount of 161. The prosecutor deposed that he was a het On the day stated in the itidictment, be weflt the Red Lion public-house, in Nightingale-10.N,, between seven •.and eight o'clock ; t he priscider; ' who bad been at sea with hint for firer Yeatli 11 : 114 in his company at the time ; witness had Peatt' sion to leave the room for a short Whott..llt!.: was followed by the:► prisoner; who stallantr: struck hint a violent blow, which felled till the ground, and deprived him f or softie till"e?t,t' his senses ; the prisoner then knelt upon him, a n took Iron) his breast a brooch, front his finge! . ring, a quantity of silver from his piscket , titer with his pocket-book; containing bank notes, with which he fled. The proiectitori ho.:. ithe w he w e -a y s er o ' ve ll i a l ' a 'i k n e g n r a c t e° tl ‘ l .c e re t top- n ro t prisoner again struck hint a' violent blow, tv"'" c11 1 . dashed hint against one of the scat', cut his liesu. open, and then be" escaped out of the house..Te ons prisoner, however, was' apprehended in abut' s , done, when- (1 4 week afterwards, when it was discovered OA lit. had pledged the watch of the prosecutor tit It . LO plafitle pawnbroker's its Prince's-street, Soho, %Oleic 3 WU" found. lTp th e The Cost MON SCRJEANT, ill SUlTlttlilig evidence, expressed his surprise that the pribmlr. had not been iiitlicted tor a 'highway robbery, *a the case exhibited more violence an d force th e generally constituted that crime. The prisoner was found Gully; an that d the Cnbit; stoat StaJRANT immediately inform ed hits} most expect to leave the country for lite. Henry Swaine was found guilty of stealing quantity of wearing apparel, and a 1/. note, h! property of James Capon. After hearing some other cases of a petty an d uninteresting 'nature, the Sessions termiliatedli and at a late hour the It aconn an proceeded' c I ; pass sentence upon the several p e rsons entivi cte during e os, whn , Thirteen we s re itti ord g ered to l e confiner ' for one Mont h ;! tel : nt'Tin,:irsT,s;mtoitiiierhtese; thirteenths; j r ie th y r e v a e r ; n : t i o n li d o:s n ; ,, tweitti ,-ttueg au i 'Wcik, for crobezzliitg money tab Levy, fur rltceiving.:4lolrti itot!ds. t.r. ion:teen a 'aes:.l " c~;rph34llt l,l % , ' Ove I flarris, Ta kf i Rita Wau. JiitleS 411145 Chtblow, fu ' r roiktier"frout the 1/' 4 l, " ' to he traosported for : It:toy-Fix were l ord lea action; to 141kotir for rariotti permit H ,,,,,:„K0irr e.,-- 1 . ten wei - e it,ite!,,:etl to in rivately, m i d t h ree t o be O bit ! : uttipped. Tilt judgment of Hurl 14ncl Kilininsthr, for stea of l ing parchment front the Six Clerks-odieo, and live others, chiefly boys, was resl r ited. sev c " were disched by iatuatiou. After •the arg foregoing sentences had Igen P °~ to nutinced, the lte.coaosa proceeded to P' s tence of death upon the following Per s ' n6 ' tally CollVicteil at the Sessions, viz. . Henry Fittler;alias elder,fi fr,r . ivately stealing a , 5 • 1 11 1 11 1; .1-Imes Manikin; Lex) , Ai nai mo: iistmnral Daly, ‘ 11 , 1 si 1 „.„, Williams, 'William ltoliwrts, John ' kirown, Slis"aL/iu num, Eliza and ENtiker ,Jones, I,tr, ste l o'; 4 „ ; Wan. Foretn, Julio Aluith , EAkv. J ibt c ,o) kli s) t e t er, N t t' lm i , l , l tal l.i yil il s S i , l ;r p h s o t u r t e tti et t.:o f l o te r r, w t io & s n ry . ! % ; lo T rk i i i i . , l l , ; i ti o rt i 4 o ; :.. p time; the - highway'; he wa i e I yn Williamc I t 4 . t i t o l t l " a r i i t ' h ilt ? i r i .L4 y r Thames; nod William .I:ziker,''aunu" Trudgttt , 4 "" • Mills, for !wise-steAling. Court Ittijourited to the 29 11-aY 219th of negt`. ---- - 7 ivtiatbrr. The nruiuit. t c r. . ...% . t. - il l . March '0 0 (-, '- 1 iiich , i , Fair 31 39 34; -IS 33 130.29 1 air April. 1.) , !. Do. 1 89 40 SO :34 .I 5 Pu. I)th - 2 33 19 41 34 29.93 Po. 3 39 37 47 32 .89 I)th • p,. PO. 4 40 :IS 51 ,3? no.os 1)". 5 37 40 ,51 :;g .06 1 " )4). Gloat # 40 _SO :7? a:1 4 9 D o " .70 , gait). sou 7 3° :18 11 3 ,25 .—....... . With iteary 11ai1111.1:..a1t„,.......--„„........*' -, ..f 'GICAL7-JOURNAL mouth, tilliTHS); N. r i At Mcr ditui;hter. _ i t i )n t Friday Nat, thel:ailv of Chriaopher RAO" s%Treil ; k •lilrd• Ey. vf . , ; , , daughter, at Wrazltall A.hbey, iti W'ir'''-' w lid nz %Vet , • I ' .rwLav, in York t 1 • er th I . tly of Williatk ) the fAidy of ;denten:int Durtuot It'—' li ,_._ •.. -) a Cot will) , r 314. a I Dutton, of a ' Ite*:erday, Mrs. B. H. stta:srt , to cnd it-street, of . stout Lam). 6 P - " Son, 1 st sot -Ott:Thut stLiy, at Epsorn, the Loa,' of ft Gov, Egg. ° MARIUS!). h ./olin Phi . On Tuesday morning, ;tt Mai ple-boune Chorea.. . e o y ; lips, Esq. tu plerrtnt, youngest daughter of th Ito oinuck, kligt uf Devonshire -plac e. .i off, E' l l Ye'it'nlaY, at Mary-le.bonne Church, HenrY ‘:, doghtt of Ststplet,lo, tilohc.csterstlife, to Catherilato sac6l/' of Si: Henry ittional , Bart. ve l) or n no t ,f‘ l f i to e =4. l d iit ay li iian‘stti. BakDewitell, in Des bfshire' in tinl C l ! lt ; 601 , s n p iresPected and regretted, the iti f • j t l );,, an, who fur near half a century was Id,ter town. ,l'rra Rector of the th 'u lt ni ll- fr e d v. p W a ri;lcilirs ttdrufyH ainx:.l.ltA.mitneu;t, I.l;:4lacttr,"riiittrsi ttice.....cl r t . peo.ibr o p i l i 4 e ce , n i i .1.:6.1,41";F, on the 150, Dr. Aldgrsoth Physician. ,-.1,1001,. H-ttiortr, en the 18th, Ltentenent-Colenc_ Tll•trpe, of the late I:l4tb Itegitocot ottro:wl Oro • toi,the tli, W ham lones, .Es 4 l. of c hal+ -0..11.11/...aheth s. In St. Porotby's) on the er • the ; ani:ii:pendtltici)rsi;hedtytlVAll-• E rt at the StYN-Orricg, N.. Strand ; w"..°l-` Aegoidt (post-pta), ficc, SAO% ..7