The enquirer. [volume] (Richmond, Va.) 1804-1815, 1811-06-28
NDe Uuqulrer.
RICHMOND JUNE 90, 1911.
PAPER MONEY.

There is great depreciation OF the pa
per money of G. Britain. Goblet tells us.
on the Sd of April tina, the dollar was tnei,
SIS. Cd. (" and what it may be i'm six mon h.
time, no man can tell" The old sterHne
value is IS. 6d.-A light guinea is at 25s.
6d.-The standard price is 2ls.-And
what is odd enough. a light guinea is worth
more than one offull weight-for Mr.. Hus-
k,sson tells US, that the act of Parlia ment
prohibits any one passing off a god guinea,
at less than 81 shiilings but if it be Clip
ped and under weight. he may ge, what he
can for il. Thus, there is direct premi
um offered for clipping his majesty's coin
1t is true, that the statute forbids this-but
there are ways and means for evadine such
regulations.
This depreciation is melancholy fea
ture IN the trade Of G Bit springs from
this: That bank paper is not convertible
into gold and silver. why IS s 5 Note of
the Virginia bank as good as s S In silver ?
because we can at any moment get y S
in silver for it, at the bank. The paper
therefore is as good as the specie.-But the
bank of England refuses under an act Of
Parliament, to give specie for their own
notes What is the effect? A certain de-
gree OF suspicion takes ?oot-and from this
cause alone, there are more people who
would rather have specie than paper-that
is, there IS greater de J,and and of course
a greater price for it-but this cause may
be comparatively small in proportion to an
|other-'Which is, that when more money
gets into the market than is requisite for
Its circulation, (and this is likely 70 take
place. because there is no other check on
the Banks discounts than its notes return
ing to 1t for paymenO and when in the
course OF trade or the operations of war, a
pare OF it is wah,ed for expectation,
u IS not the paper that passes of-because
English paper is not received ia a foreign
Emarket--but it is specie tast is exported -
because specie passes every where. The
consequence is. that there is more demand
for specie than for paper-that specie is
worth. more than paper-Tbat smaller
Quantity of specie will command more OF
the iatter--in other words depreciation of
the fafier takes places.-To restore the e.
quIlibrium, what is to be done9 The bull
lion Committee Of the II. of G proposed 10
months ago the true remedy; which was to
restore the Cash payments of the Bank of
England. THE proposition was rejected,
and the depreciation Continues. r.
The armies which have been maintained
by q. Britain. in Portugal and Spain, nave
produced a considerable demand for specie
but OF late, the payment tor its food has
been principally made in Government Bills.
We have shipped large supplies of -four.
&c. to Lisbon and CadiE--which have been
generally paid ior by draft ON the British
Government. These drafts have been made
use OF to pay, in part, for the stock If Bri
tsa manufactures, which we have imported.
But as the drafts for the produce, which we
have directly shipped to G. B for her ozun
consumption, viz Couons, fine tobaccoes,
&c. in addition to those drafts from Cadiz
and Lisbon, are in fact more than our i'm
ports from q. b. there have been more
merchants disposed to sell drafts than to
buy them-the competition. therefore, has
been between the sellers. and not the buyers
And where competition blows in that
point of compass, it always reduces the price
OF the article, whether it be a pinch of
snuH or a bale Of lace--whether il be money
goods IL is hence, that Bills of Exchange
upon q. Britain have sold in the u. States
considerably below par--Par is SO lid
but the BEST bills may be bought for ID OF
IL per cent
Let us suhhoSe, however, that this In
crstive trade 10 Lisbon and Cadiz should
cease--and that the British ORDERS CONT
nue. 20 lore, or, IN other words, hat g.. T.
Will not ficrmif us 70 carry our produce "a
the continent What taen In the ordi-