The Sun.
London, England, 1804-06-02 00:00:00

• —There can be no drawer unless a remitter is found
to take his bill ; but we may suppose the case of
drawers offering their bills to a very considerable
'amount when there are few remitters, in which case
the business must either remain undone, or the offer
of higher terms may produce remitters.
Will not the price which the actual remitters of
bills consent to give to the drawers, depend on the
quantity of goods which it is known by each party
that the bill will purchase in the Counttay on which
the bill is drawn ?—I think they do not carry their
views so far; if there are more drawers than re.
mitters, the remitters will take the advantage, and
vice versa.
Although the drawers and remitters should not
themselves advert 'to the price of goods in the Coun.-
try on which the bills are drawn, will not, never.
theless, the merchant in one county, in England for
example, in calculating whether or not he should
become a purchaser and an exporter, of goods in
Ireland; found his calculation in part on the current
rate of exchange ; arid having so purchased them
and exported them, will he not be under the neces.
sit) of remitting bills in payment ?—i should con-
ceive, every prudent merchant, either in purchasing
goods to export, or in ordering goods to be import.
ed, will advert to the prices of goods, to the ex-
change, to the charges attending the export and im-
port, and to all other circumstances which can affect
his interest.
Does not the rate of exchange, at the present
time, determine the English merchant to import
Irish goods, inasmuch as there would he no profit
on the importation if there were not an advantage
in the exchange ?—lt may or may not ; but he
would take the rate of exchange into consideration,
together with the other circumstances above.rneo-
tinned.
Is not then the existing rate of exchange-a cause
of the present exports from Ireland ?—ltomay or
may not, according to circumstances : the high rate
of exchange, as far as it operates, has a tendency to
prevent importation ; both which consequences_ of
the present high exchange operates in both instances
in favour of Ireland.
Do you conceive that the balance of trade and
balance of remittances invariably govern the rate of
exchange ?—I conceive they naturally do.
• The whole balance of account between the two
I'kingdoms, previous to the restriction, never having
induced a variation in exchange to the present ex-
tent, during a course of 70-years, has the balance
of account increased so greatly within the last five
years as to justify a variation in exchange to the
amount of to per cent. above par ?—I conceive that
it necessarily has done so, because the fad of the
exchange is so ; I am confirmed in my opinion that
the balance of the Commerce of Ireland was consi.
derably in favour of Ireland before the restriction, •
, for, if it were not so, I should be wholly unable to
account for the exchange remaining nearly at par,
when I take into consideration, that the remittances
to absentees have always been very considerable,
and if there had been nothing to counteract the ex-
change, with respect to such remittances, it could
not possibly have remained so; I believe, there are
now circumstances, and have been for some time
since the restriction, that materially tend to increase
the general balance due from Ireland ; the remit.
tances to absentees of all denominations, I believe,
are necessarily much more considerable than they
were, which may partly be accounted for from the
fears of Invasion in Ireland, from the late Rebel-
lions, and other circumstances, which tend to shew
rather an unsettled state ; and it has fallen within
my own knowledge, that families, particularly the
females and children, have removed to England,
and must be supported there; besides what I men-
tioned before of the necessity for remittances to pay
the interest of the debt, I am convinced the balance
of trade has continued in favour of Ireland since the
restridion.
If in point of fad it should appear, that since the
restriction the remittances to Ireland for loans have
considerably exceeded the remittances to Ireland for
payment of interest of debt, is not tge increase of
remittances for absentees the sole cause to which
the increased balance of account between the two
countries is attrihutable ?—I conceive the exchange
to be influenced only by the general balance of all
accounts ; and that the increased amount of remit.;
tances to the absentees might very probably account
for the present high rate of exchange, as making a
part of the general account.
You have said, that the high exchange, supposing
at so per cent. occasions a saving of zoo,oool. a
year to Ireland, on the remittances from Ireland on
account of absentees ; supposing the amount of those
remittances to be z,000,0001. how do you conceive
that high exchange to operate either for the benefit
or to the loss of Ireland, in respect to the remit-
tances to be made to England for the interest of the
Irish debt in England, supposing it to be 1,300,0001.
annually conceive it to operate to the loss of
Ireland to the amount of t,300,0001. because Ire-
land must remit so much English money, and must
pay the high rate of exchange on such remittances,
whereas the remittance to absentees is for account
of Ireland, and instead of remitting 2,000,0001. so
as that 2,000,0001. should be received in London,
there is a deduction, in the first instance, of the
exchange in Ireland, amounting to to per cent.
above par, so that only t,Booioool. is received in
England, instead of 2,000,0001. ; and the difference
remains in Ireland.
The loans from Great Britain to Ireland, annually
made, answering for so far to diminish the neces.
sary annual remittance from Ireland to England on
account of the above interest an absentees, what
do you conceive will be the fund for Ireland to sup-
ply their amount when those loans shall cease ?
Supposing there to be no' loan of any one year, I
should think the general balance would be in that
year still further enhanced against Ireland, and that
the exchange (all circumstances remaining the same)
r=ight probably rise considerably higher. In short,
the general balance to be paid or received, always
regulates the exchange between England and
land.