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

EXCHANGE IRELAND.

EXTRACT

FROM MINUTES OF EVIDENCE

Taken before the Committce appointed to inquire into the
State of 1 reland, as to its Circulating Paper ; its Specieand
Current Coin; and the Exchange between that part of the
United Kingdom awl Great Britain
The Right Hon. 101-IN FOSTER, in the Chair.
(Continufd from cur Paper of Yesterday.)

Do you think there can be any increase made in
the exchange by the conduit of persons who deal in
remittances ?—I believe not to any amount ; I con-
sider the exchange between England and Ireland in
a threefold view. First, as it has reference to the
balance of trade between Ireland and all the world;
she having no other exchange but. through England,
I am persuaded that the balance of trade is consi-
derably in favour of Ireland ; and that if there were
no other demands on Ireland, than what arose for
commercial purposes, the exchange must be in fa_
your of Ireland : the next point of view in which
I consider the exchange, is with reference to the
sum of money that is necessary to be remitted to
England for the payment of the interest of that part
of the National Debt of Ireland which is payable
in London ; what the exalt amount of this is, and
whether it would be sufficient to countera& the ba-
lance of the Trade of Ireland, is a question I have
not the means of answering : the third point of
view, is, as it refers to the large sums of money re-
mitted to the Nobility and Gentry of Ireland resid-
ing in Eng)ard ; this I have understood, to amount
to 2,000,0001. ; what the general balance is, I do

not know, but if it amount; to any thing like this
sum, or half this sum, it would fully account, in my
opinion, for the high rate of exchange ; and with
respect to the remittance of this money, I conceive
the high exchange not to be the disease, but rather
a symptom, and not an unfavourable one to Ireland,
inasmuch as this high exchange, as far as it operates
as a tendency to keep the money in Ireland ; sup.
pose the money to be remitted to absentees to
amount to z,000,0001. and that the exchange is to
per cent. above par, I conceive it certainly keeps
zoo,oool. in Ireland, which I think is so far a be-
nefit to the Country. With respeet to the high ex-
change as it operates on the Commerce of Ireland,
I am persuaded that may be safely left to the Mer-
chants and Traders of both Kingdoms, and that, if
they were consulted, they would give the same an-
swer that the Merchants in France gave to Mons.
Colbert, when he asked them, " If Government
could do any thing to serve them ?" their answer
was, " The greatest favour they could do us, is to
let us alone." With resped to the second cause of
the high exchange, as it relates to the interest to
be paid in England, that I think is a pure and un-
mixed evil towards Ireland.

How do you account for the payment of the In.
terest due for the Irish National Debt producing
the same effea as 'remittances to absentees, seeing
that one is sending money from Ireland to England,
and the other merely detaining a part of the cur-
rent 'loan ?—I conceive it to stand on the same
ground, and that both are to be remitted from Ire-
land to England ; if there is any new loan from
which the interest of the old loan is to be deduaed,
that would be a detaining the interest, but I con-
ceive, that while that pratlice goes on, it tends very
much to the detriment of Ireland, insomuch as it
creates a constant• annual drain, after the money
which has been borrowed has been spent.
Was there any restriaion on issuing specie in
France during Mons. Colbert's Administration,
when he received the answer mentioned by you ?
I :understood there never was any Bank in Paris,
or currency of paper, attempted before Mr. Law's
time.

After Banks have been instituted in a Country,
and have been restrided by law in their issue of
specie, do you consider all legislative interference
with their proceedings to be dangerous or improper ?
—I never knew or have heard of any such restric-
tion prior to 1797 ; I am very far from thinking
that the interference of the Legislature must be im.
proper, when occasions call for such interference.
13 it not the praetice of the Bank of England to
limit its advances on Bills discounted to individuals
below the amount applied for ?—Very frequently.
Do you conceive that if the Bank of England, or
any Public Bank in any other Country, granted
discounts without limitation, even for all sate Bills,
they might not incur a risk of increasing the cur-
rency of that Country beyond the proper quanti—
ty ?—That has been always my opinion during the
time of restriction.

What do you conceive would be the efFea of an
excess of paper currency, so produced, upon the ex.
change between that Country and Foreign Coun.
tries ?—I am not aware of any; but upon further
consideration of the question, I might alter my
opinion.
Would not such an excess in currency produce a
rise in goods in their nominal price ?—I think it
most probably would.
Would not that rise prevent the exportation, with-
out some compensation to the Country where they
were pur-chased ?—The rise in the market price of
any goods, I should conceive, has that natural ten-
dency as far as it operates ; and it is upon that
ground, that I conceive, the high rate of Exchange
with Ireland operates in the nature of a bounty on
exports from Ireland.
Is it not probable that that compensation would
be found in an increased rate of exchange against
the Country from whence the goods were export-
ed ?—I believe, that Ireland, exporting their goods
under the high exchange, would very soon raise the
price of their goods; otherwise, the Foreigners would
have the goods cheaper; and in that case it would
most probably increase the exports.

Is not the exchange of every Country regulated
by the price which the remitters of bills on that
Country, payable in the current circulating medium
of it, are willing to give to the drawers of them ?
—I. conceive the exchange between Countries to be
regulated by the greater or less amount to be drawn
for or remitted,