The enquirer. [volume] (Richmond, Va.) 1804-1815, 1810-10-19

tiy is thrown into the bowels OF trade. than
ii can either use or even contain. ~
The purpose Of the present paper is To
explain these terms, and thereby to enable
our readers to judge for themselves.
With respect to the balance of trade.
therefore in state OF peace. the produce
OF nature and industry IN the respective
countries Of Europe are so nearly on a level,
that ia their commercial dea sing with each
other, the mutual effect iy rather that of
barter than of trade properly so called !;
they strike balance with their exports aud
imports. and their mutual dealings, there
fore. is rather an exchange of thts' several
staples than buying and selling for money.
IN tins state, therefore, very little money Of
any ktnd passes between them. AS some
countries. however. are certainly more fer.
tile than others, and some on the other hand
more industrious, or what amounts to the
same thing, more skiltul. SO it certainly
does sometimes happen. that what it takes
from another country is more than what it
xends--that its imports are greater than
ats exports. In this case. there is said to be
balance against it-that Is to say. that il
has to pay over to the creditor country the
excess of what it has imported beyond what
II has exPorted-And as by the suppostion
Included in this statement, il has already
made all its possible exports of goods. so this
balance must be paid in something else, that
rs to say, in money--the money of nations,
bullion. This is what is meant by the ba
lance of trade, that is to say, surplus of
imports beyond exports: surplus which is
necessarily paid either in bullion, or what :.
ever between the respective nations repre-
scnts it.
A question may here be asked, whether
this balance of trade. or any thing like il,
-. .sx~1< 81 ..t..-
sarily suspends the subject from which it a
rises how, therefore. it may be demanded,
can il at present affect our coin
In state OF war there are necessarily tw o
parties, belligerents and neutrals-Now.
with respect to each other, there is Certain
ly no trade, and therefore no balance be-
tween the belligerents. But the neutrals are
kind OF factors, agents, & mediums, which
IN despite of the apparent nature of war,
still keep up the general commerce they
buy and sell Of each of the belligerents, and
shence force Them, certainly not so plenti-
fully as in peace. but still in a degree, to
deal with each other-In war. there
fore, as in peace, general commerce, ex
lists, and this commerce may either be a
Sainst MS. or in our favor; that is to say, our
general exports and imports may either be
greater or less--In war, there fore, even
from the simple surplus of general importa
tion, there may be balance of trade against
us and we may cursorily observe. that in
the present period this unfavorab,e balance,
Cnfavorable with respect to coin, certainly
does exist In plain words, it is evident
that we buy and have bought infinitely more
than we have sold or by any possibility at
present can SELL Hence on this part Of the
subject, we have to pay much, and to re
ceive nothing.-Our shop is full of goods,
our bills are coming due, and there is no
trade-in common language, all is going
out. and nothing is coming in. With res
pect to ourselves, we may accommodate our
selves. and mutually renew our bills, take
paper for paper. and fly the kite as long as
the string lasts---but with respect to stran-
gers, our bills must be paid, Such is the
general sketch of our situation, and its eau
Ses with respect to the balance of trade.
81 The RATE OF EXCHANGE is still less
understood than the balance of trade. 1t is
briefly this--in the dealings of merchants
of two nations, Hamburger and London. for
example, each becomes indebted to the o.
Their. If the general balance Of trade be in fa-
vor of hamburg, London must remit money
OF bills to make up the deficiency tina. is,
TO pay the surplus value of its imports be-
yond its exports. Now, London can only
remit these paymeats in money which will
be current at Hamburger that is to say. eli
tucF. III WuiSu ID tuS ScneTdl money
of the world. or in bills accepted by Ham
burg houses, that is, Hamburg bills. Now
n certain expence necessarily attends the
expectation of bullion, an expence in freight
age, which is perhaps very trifing, by rea
son of the small space occupied by great
value and an expence in insurance, which
is more considerable and third expence
more considerable than all the others, an
expence of purchasing pure metal with the
coin Current----a coin, worn adulterated,
or perhaps too highly valued even by the
mint in its FIRST issue. All these circum-
stances necessarily augment the debt of the
knglish merchant, and augment in proper,
tion to the degree in which the causes exist.
Now if, in these circumstances, he can find
bill on Hamburg, he via willingly pur
chase IL at something less than the price
which the remittance OF his debt in bullion
would Coat him. But the merchant who has
20 sell this bill, will Of coIrse, demand the
value which circumstances have given to it.
The rate which the market settles of this
sale and purchase, is what is termed the
RATE OF EXCHANGE.
Ii is needless, we should suppose, TO explain
how this may affect the coin of the country
The coin, even such as il is, is bullion, and
ii no other bullion can be procured, must be
sent ont. Ii the coin exceeds the market
price Of bullion that is, if it be worth more
than its currency and denomination, il will
necessarily be sent out OF the country 10 pay
these foreign debts. The same will like
wise happen, if it be equal in currency to
It's bullion contents. On the other hand, If
i, be less, the merchant must necessarily