The Sun.
London, England, 1804-06-13 00:00:00

EIiCH ANGETV r, fr IRE r. D

EXTRACT

FROM MINUTES OF EVIDENCE

Taken before the Committee
.appointed to inquire into tlict
State of Ireland, as to its Circulating Paper; its Specie and
Current Coin;-and the Exchange betireen that part of the
United Kingdom and Great Britain.
• The Right-Mo. j 0 HN FOSTER, in the Chair.
(Continued from cur Pater of Tuesday, sth inst.)

- . BENJAMIN WINTHROP, ESQ. CONTINUED.
Do you apprehend that any considerable difficul-
ty, or any evil consequences would arise from sup-
pressing the circulation of ail silver notes, and all
11. notes both in England arid Ireland at the em' of
twelve months, by the passing of an Aa for that
purpose, and in the same manner suppressing'all 21.
notes at . the end of two years ?—Althongli,l wish
Very much to see a general opening of tye Banks,
with a complete suppression of all notes, under .51.
yet I think reasons may exist why it may be im-
proper at this moment to make any alterations, or
to suppress the 11. and -21. notes of
.the Bank'of
England ; but I think that immediately on a Peace,
1 it ought to be one of the first objeßs
.of the Legis-
' latures consideration.
What are the objealons to suppress the il. arid 21.
notes in the gradual manner proposed, taking it for
granted, that np further step shall be taken towards
_the removal of the restridion„ until the end of the
War ?—The inconvenience that would arise to the
public from having no means of procuring change of
a 51. note at the Bank of England, as the restriaion
of the payment in cash would still continue, would
he insupportable; for if.the Bank of
.England was
oblged,to•excliange.its 51. notes for cash, it would,
be a complete opening. •
If paper, which supplies the, place of guineas,
were suppressed, would not guineas, being indis--
pensably necessary for the transaCtions of the Coun-
.
try, return into circulation to supply the place of
the paper suppressed, and would they not continue
in circulation ?—lbelieve they would.
Is not the exchange between two Countries gene;
rally limited by the price at, which a pound of bul-
, lion can be purchased in the circulating medium of
the debtor country, and again converted into the
circulating medium of the creditor country, toge.. 2.
ther with the charges and insurance of transporting
it from the &bier- countoo to the creditor coun-
try ?—lf a 'debtor country. could pay money to a
creditor country in gold, I-see no reason why the
exchange should turn against the debtor country,
as long as it can pay us debt in gold.
Have you ever known the exchange bptween any
two countries to exceed considerably, for the period
of a year, the rate at which this operation can be
performed I—l have not.
..
When a sum of Hamburgh Currency, which will
buy a pound of bullion of given purity in the mar-
- ket of Hamburgh, can purchase a bill for a sum of
English currency, which will buy a pound
.of bul.:
lion of the same standard in, the English market, is
not then the exchange at par I—lt-is a question I do
not know'how to answer.
Is there any other test by which a true judgment
can be formed of the par of exchange ?—I confess it-
does appear to be a complete par of exchange.
As long as a sum of Hamburgh currency, repre-
senting a pound of bullion, can purchasq a bill for a
sum of English currency, likewise representing a
pound of bullign, would you not deem the exchange
at par, whatever might be ,the number of pounds '
Sterling, or of schellings" in either sum ?—lf you
purchase a bill.Of exchange in Hamburgh on Lon.
don, and you pay for that bill of exchange too oz.
in silver, and you receive in payment,in London of
such bill too oz. of silver, I should say the ex:
change was at par with resped to that transaaiou,
but that is not what we merchants understand by
,the par of exchange ; they generally understand a
certain rate of exchange fixed, which has respect to
the money' paid in one country and received in the
other. .
.•

Would you not equally say it was at par, if, in.
stead of paying zoo oz. in one, and receiving zoo
oz. in the other, you paid a sum that would pur.
chase zoo oz. in the one Country, and received a
sum in the other which would likewise purchase zoo
oz. ?—I think it is the same in effea.
If the exchange between London and Hamburgh
was 40 schellings per pound sterling, would you
not still deem the exchange at par, if it appeared
that, from any circumstances, 40 schellings banro
only purchased the same quantity of bullion at
Hamburgh, as one pound sterling purchased in Lon.
don ?—I conceive it the same effea, and vice versa.
In the one case would you not say that the value
of credit at the Bank of Hamburgh (in which all
bills are payable) was risen, and in the other that
it had fallen I—l should not say so.
In the same manner, if 481. x2s..English cur-
rency, which will now buy a pound of standard
gold in London, can purchase a hill on Dublin
for a sum of Irish Currency, which will bUy no
more than a pound of standard gold in Dublin, is
not the exchange in fart at par, whatever number
of pounds of Irish currency be expressed in that
bill of exchange ?—The par of exchange between
England and Ireland is universally understood to
be 8 x- third per cent, or zoBl. 6s. Bd. Irish for tool.
English, whatever may be the price of bullion.
Did not that mode of calculation obtain, be-
cause, it had been found on the experience of many
years, that 1081. 6s. Bd. of Irish currency, and
1061. of English currency, represented the same
quantity of precious metals; and do you conceive
that when these sums represent unequal quanti.
ties of the precious metals, they can longer be
considered as representing the par, or as represent-
ing one another ?—lt was not ft)unded on any ex-
perienCe of years, that '&3l. 6s. 8:1. Irish was.