The British Press; or, Morning Literary Advertiser.
London, England, 1804-06-16 00:00:00

EXTRACT
7%014 MINUTES OT LVIrLIICt
Taken befnre the Committee appointed to enquite into the
'State of Ireland, as to no Ci:,:ulattng Paper ; As Specie and
Current Com; add, the Exchange between that par: of the
United Kingeorn and Groat BE llaln.
The Right Hon. JOHN FOS I'ER. in the Matt.
CSICOND REPORT.]

(Mr. BoatorrzA Examinatinn, eontlwrod from our ?vow.

of Tuet;lay.)

Would you consider a loan of two, three, nr four
millions, mide in Eli-glnd for the use of the Go-
vernment of Ireland, paid into the Bank of Eng-
land, to be placei there to the credit of the Bank
of Ireland, and to be drawn for or rertaitted at the
pleasure of the latter Bank, would in any degree
operate in the nature of such a fund as you alluded
to in the plan you have suggested ?--Yes, to all in-
tents and purposes.
Do not both the plans which you have suggested
assume the creation of a new fund in London, upon
which the Bank of Ireland shall draw, and the im-
provement in the exchange to be the resalt of those
drafts upon London 1--Yes.
Do you not mean, according to the first plan,
that the Bank of Ireland shall give Bills upon Lon-
don at a fixed and very improved rate of exchange
for such of its own Notes as the holders of them re-
quire to have converjed into such bill; on London ?
—•I mean, that the holders of stick Notes should
pay a premium of I per c.:nt. for English Notes in
exehange.
Siace there is now a premium of about 10 per
cent. on such exchange; do you not conceive that a
considerable demand for such bills in exchange fot
Bank of trelaud N.otes would arise ?—Yes. •

Would nut such exchange have the cfreft of re-
ducing the present quantity of the circulating Notes
of the Bank of Ireland ?-:-Certainly ; but I calcu-
late, that the plan which I have proposed wnul.l
produce a rednaion of eschausgc ; and that, when
that objeEl is accomplished. no material increased
demand for Bank of England Notes would take
place, and of course no material dieninution of the
Ballo of Ireland Notes.
Dacs net the second plan, since it proposes to
make Hank of Ireland Notes payable either in Dub-
lin or in London, at the option of the holder, equally
imply, that the remedy for the present high ex-
change will result from a diminution of the present
quantity of Bank of Ireland, Notes circulating in
Ireland conceive that Notes of such description
coming to England, would precisely operate in the
same way as would a bill on London.
Do you then mean to say, that both the remedies
of the present high exchange which sou have s.ll-
- imply a rechininn of the quantity of thi•
circulating paper of Ireland, but that that circula-
ting paper may again be algmented to its present
quantity without any evil influence on the exchange?
—1 am of opinion, that a circulating medium, not
depreciated, does not in its quantity fix the rate of
exchange.
Does not the quantity of circulating medium ope-
rate in any degree, according to your opinion, upon
the eschanget—l am of opinion, that a circulating
medium, which is the representative of property, and
is not property itself, by such I mean gold and silver,
does not produce any effect upon the exchange be-
tween countries. _

Supposing coin alone to circulate in a country.
and supposing the quantity of coin to become greater
Is proportion to the goods which it has to pay for
than a similar quantity of coin in other countries,
compared with the goods of those countries, will not
the coin which is so augmented become the ip as
compared with goods ; or, in other words, will not
goods become dear as corn Area with coin ; and
will not a profit on the exportation of th- article
which is rendered cheap at home, through the aug-
mentation of its quantity, narrxely, on coin, necessa-
rily arise ?—1 Mould say; Yes. I hate always un-
derstood, that a high exchange between countries
operates as a bounty on exports, and as a duty on
imports ; according to this position, it necessarilyfol-
lows, that when bills of exchange, which are drawn
in payment of goods exported, are payable in a
larger portion of the money of the places, on which
they are drawn, that the price of the cost of the
goods is in so much diminished, and their being rea-
dered at a cheat+er rate -itt the market of consump-
tion, must necessarily increase the demand ; I con-
ceive, that when the circule.ing medium of a cows-
try is alone specie, that specie will be afrated in its
value by its abund awe or by its diminution, the same
as copper, brass, cloth, or any other Wilde of
mer-
chandise.
Supposing coin and paler to circulate at the same-
time in a country, and sitpiinsing the two, taken to-
gether, to become in like ITLUMIIIT greatrr in propor-
tiim to the goods which they have to transfer, than
the circulating medium of other countries, will not
the same at,* follow, via. will not the coin be ex-
pm ted on account of the profit attending the expor-
tation ; and will it not continue to be exported mail
a just proportion between tht circulating medium of
the exporting country, as compared with its goods,
and the circulating medium of other Countries. as
compared with their goods, shall be established ?
Yes, unquestionably.
Supposing paper coal to circulate in a country,
the Bulks having been anthorised to suspend money
payment., and supposiug the quantity of paper to
be us the same sense excessive, in reference to the
quantity of goods to be circulated, will not the pa-
per become cheap as compared with goods. or, in
other words, will not goods become dear as com-
pared with paper nit an exaaly similar principle ;
And win not the limitation of the paper be the only
means of sustaining its value, as compared with the
value of the circulating medium of other countries ?
—Yes.

Do you not then conceive that too great a quan•
tity of circulating paper will have an influence on
the exchate
Will not the exchange be raised by every augmen-
tation of paper, and depressed by every limitation of
it, supt...l.ing no other circumstances to interfere ?
If that paper be issued in propm-tion to Its demand
in exchange, for good and cothetaible securities, I
think not ; which- securities I have stated before to
mean mercantile bills payable at a stated period, of
undoubted solidity and credit, and founde4 upon
real ratrcantile tran%altionst upon public debt, pay-
able at specific periods ; such, l mean, Exchequer
Kilk, Scrip Receipts, gold and silver, and property
otsuch nature.

Do-you Dot Conce;se, that real bills, foiradad on