The Liverpool Standard and General Commercial Advertiser.
Liverpool, Merseyside, England, 1850-01-01 00:00:00

bankers and exchange agent

advantag

countr

He say

man of the most ur

_ Auld forsee the con-
dition of either of those cities when it became due, or
whether it might not be paid in depreciated paper. But
a bill drawn upon, and accepted by a London banker, was
perfectly negotiable at any time and anywl
nobody feared cominctions, or " states of s

be negotiable, t

:ause nob,

re ; for

tropolis

cessary result of such a s

_
, the transmission of very large amounts of foreign
'-ing capital to London, to be drawn against, for the
, not only in England, but
and another. It was found

purpose of making payment,
between one continental city

that a remittance from Frankfort t
sterdam to Paris, was more satisfai

Vienna, or from Am-
good

made 1

bill on Lo

7n, than in a draft n

money was to be paic

in nine cases out

being remitted to the foreign holder, was merely placed
to his credit with some London banker. In this way a
very large accumulation of foreign capital in this coun-
try has taken place ; and it will continue here until
greater confidence shall arise in the internal tranquillity of
confine

31 states, the stability of eontinental govern
, and the steady maintenance of the

value of

their currency

Our contemporary confounds banking capital
with gold, in the first place; and in the next he
treats as extraordinary what is in reality one of the
most ordinary transactions of foreign trade. Ain
Frankfort wants to remit £lOOO in
Vienna. What

to B i

is the

action usual

assumes? A goes into un
and buys, at its market pri

market
e, a bill

for exchanp

negotiable for £lOOO in Vienna. No matter whe-
ther the currency of Vienna may consist of forced
ssues of inconvertible paper or not. If the bill be
London, it is exchangeable for as many sove-
'present the value for whit
in Frankfort. If it be drawn on Vienna it must be
paid in as much of depreciated paper of that coun-

reigns a

it was drawn

_
try as is equivalent to such amount. The most
proper mode of putting the case, however, would
be this. B in Vienna wants from Ain Frankfort
equal to £lOOO British sterling, or as much Viennese
represents £lOOO British currency. B

currency as

then draws a bill upon A, payable in Frankfort,
which is accepted ; and A has in consequence to
meet it at maturity, for its full amount, in

Frankfort whether

by ar.

increased

of his own country's depreciated currency

not. If a bill on London offers the safest
mode, he will probably have to pay a higher
of exchange. Our contemporary would
lead us to believe that, before such a transaction
can be arranged, A, who has the £lOOO to remit,
and who desires to draw upon a London banker,
has to lodge with him 1000 sovereigns in gold to
meet the amount ; and that it is thus that our

specie is at this_moment increased

a true that the

Presume,,. Yer, that it
existing banking capital in London is increased,
our contemporary supposes, by the amount of such
drafts in nine cases out of ten " instead of being
remitted to the holder, being merely placed to his
credit with some London banker." It would only
be left with such banker to be drawn against by
its owner, either in payment for British goods, or
for gold ; and as the gold remains here, we

presume that this is at present its best mark
We have but one or two further remarks t,

in reply to our contemporary',

tendink themselves to such an undue length, have
compelled us to trespass more than we ought to
have done upon the patience of our readers. The
Guardian conceives that the accumulation of gold
in the Bank will go on until probably it may reach
the amount of 25 millions ! How the directors
will relish all this dead weight we cannot say; but
we cannot see how it can be very profitable to them.
Its retention here as a money, or the basis of our
currency, is obviously uncalled for. We have al-
ready more paper issuable than the public are will-
ing to employ. Out of the 25 millions which the

etary purposes

perfectly undeniable that depreci

ion in t