The Sun.
London, England, 1825-09-12 00:00:00

[NEW TIMES.].

Those persons .-‘vho have felt great alarm at
what they considered to be a serious evil, the
exportation of our handsome gold sovereigns,
may, perhaps, be comforted when we inform them
that several Policies of Insurance were done last
Saturday on large consignments of gold sovereigns
from the Continent to this country. There was
a decline in Saturday's prices of Stocks. For
this circumstance various causes were assigned—
the capture of Cuba by the French—disastrous
news from India—the expected dissolution of
Parliament, &c. &c. For the two first of these
alleged facts there was not the slightest founda-
tion. A dissolution of Parliament, might, indeed,
operate to draw out money from the Funds, for
the expence which it would necessarily occasion
to individuals ; but that event is too contingent
to have any effect at the present moment. It has
been for some time contemplated as probable,
and that probability remains just where it did,
for the decision has not yet been taken by the
Cabinet, and the question will certainly not he
determined on, one way or the other, till Minis-
ters re-assemble next month. The real and only
cause, we are persuaded, was the momentary lan-
guor of the Foreign Exchanges. The rate of Ex-
change d pends altogether on the commercial si-
tution of the country. Foreign Commerce is a❑
exchange of Exports for Imports ; and in the pre-
sent state of the law, gold and silver may be ex-
ported and imported freely. Therefore we ex-
port those metals, as we do copper or iron, when
we have no more profitable articles wherewith to
pay for our imports. The term of payment is to
be here considered, arid not the amount of goods
exported or imported in a given time ; because
we may export large quantities of goods on a
long credit, and impart smaller quantities on a
abort credit ; but payment must be provided for
each at the due term, and if at any particular pe-
riod the balance of payments in less profitable
articles is against us, then we export gold
or silver to the amount of that balance. Now
the balance of payments is settled, in the first
instance, by moans of bills, an►d these bills be-
come a commodity, like any other, in which mer-
chants deal ; and when this commodity is very
abundant it suffers like any other, a depression
in price. This is what is called a fall in the Ex-

change against the country which has to pay the
bills. A fall in the Exchange against England
implies a necessity of exporting from hence gold
or silver ; but as the export of those commodi-
ties renders them dear here, it becomes profitable
for the foreigner to re-import them into this coun-
try : and such is the cause of the consignments
which we first mentioned.— From the stories
which have been circulated, of millions of gold
sovereigns having been melted down on the Con-
tinent, it may be thought surprising that these
articles are returning to us in their coined state,
but that wonder will cease when we consider the
following passage in Mr. Parish's evidence before
the Committee of 1810.

Qtr. " If English guineas were freely exported, so as to be-
come current at Hamburgh, is it your opinion that the same
temptation would exist to the melting of them ?"
Arisw. " No, not in my opinion ; because the rate of ex-
change could then never be much below par, and the prospect
of selling them at a short period again above par would induce
people to keep them in their original state."