Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1815-11-04


money Of lferciants, (Bil,s of Exchange.
oehnition 81 nor the means OF crea-
ing such bills by new explorations of pro-
uace IN TINS case, the precious etals rise
ABOVE the par of Bauk paper goods will
J nave TWO prices, one in paper, and tine o.
tier IN money and com will bear an ff,io.
| or premium m the markets. Partjcul :.
persons VIII make it their business To bny
1t up; and 100 dollars will be worth 80
much as lis, 100, or i25 dollars in " eff
! gy, CT paper. In this state of the mar
! Kst' money Is scarcely looked on as a circ,l
| tdftaS medium, or Standard of Yaiue-
| IL becomes an article Of exchange. com
,',c"f!y /oT purchase; it is bought and sold
nNc Otler arucles, which it was wont to
c'rou'ate.-its value, and the agio unon it
WI, OF course be increased, if in addition
70 tnese uses tor it, it should have taken a
rise IN the foreign market, aud it also bears
market. '""'
If Bis arc to be bought in sufficient
quantities, then he, who has to nav a debt
IA the foreign market. will of course choose
between them--he viii! Calculate, in the case
Pu' IN tne last sentence, whether the gain he
,hahes by the difference between the agio on
80 ron IN hisown and in the foreign market
"i0n .heirisk OF transportation, is greater ~.
'es' than the deprecated rate Of Erchon~e
ol TIC o!h- lie may save by the rise of The
money III the foreign market bur he ,na,,
save more by the fall of bills in his o,,.n
ana V'ce OerSa. 1t becomes matter -
mere calculation, founded upon the data
II tnere are roo many bills, If there ore
"eore tnan there are deGts to pay abroad.
81 course bulls viii fall, and the merchanr
VINO mas deOt to pay, viii be temDtea n
ouy ouls' 'fhe does not make more by re-
",st'ns IN coin.-if more goods areimDo,t-
1H' III proportion to what IS exported. hills
-, ~ 81 RISE and the induce meut to ship
specie Is or course increased.
Let us pass on from this cornp,r,t;,,o
view of Bills and Cain. to that rs RI -
money and COMM what we have ;nat
sf'd, we nave supposed that there is bmt
oET haHf IN the Country, and that of course
us oahS-paper is uniform, and lust rs poo1
III one part as 1t IS in another.-But lef ne
suppose what is the case in the United
oI1'S', thae therc are various Banks. scar
'creo Through the various sections M tb.
country. '''' Vi lle
oay, that very few of these Banks nav
speCle-that the most OF them have eh;t
up their vaults. ''''e Shu'
In tilis case, net only will Gold and Sill
Fer De worth more than paper bmr tbnt
Iialls', Tor which there is more nor WI;
DC worth more than others Not only will coin
rise above par, as it respects paarr hn,
one species OF paper will rise above par a.
IL respects another.
III IN this state of things, one part of ths
country falls in debt to another how is
II 10 De pad Specie is so dear. that il
RanLo t, DC "otilhed Dut tor an agio for, the
DanAs nave closed their vaults. The BanL
p' Pc" oh your own vicinity, which no lon
o. Io'''"ialds cash at the bank, is not
"I oiIh aS nluch as the Bank notes Of the
b '.,I1 10 "h'cn you are indebted because
n,at p DOCS are In better repute near their
own banks, than they are anv wbe-.
Ilse. Yon must then try to obtai3 81
lais, (iniand Dhls OF Isxcnane-e.I tnese
notes, therefore, or individual bills are
worth more than the Bank notes of your
own Bank. They bear premium in vopr
market which you have to pay, before YOU
can get then. It's thus that inland BiIjs of
tXchanse, and the notes of some of the
Banks come to have an agio one coun-
Try seems to b. split into several every
)aah section OF one country being as It
were, foreign TO all others, in the same
manner, as in the ordinary state of trade.
1ne country Is foreign TO an0ther--it IS. an
foreign, because it's Bank Notes
10 not pass freely from one part IN apo
her. and the draughts of individuals beora
ore niun, as foreign bills of EXCHANGE ofreu
10.
In the same way let us suppose. that
hougk there are no debts contracted vet
here are goods or produce, in anc,
her section, which you waat-but Won
ave no equivalent article around you to
end in return. Immediately, you have
Use for the paPer-money of that section
tut, as the paper-money Consists either of
'ank notes, or inland bills, you will he viii
ing to give premium on them that &c.
more OF your own Bank-paper. than its
amount i'll the paper which you use a
Merchant Of Philadelphia, for examnle.
wishes to buy cotton-Fhe article is TO he
net with in S JuLh Carolina. As Ph;ladel-
'hia Bank notes are below par in that
market; as there Is no one around him
Who can give him Bill of EXCHANGE. he
$ induced to look out for Southern Notes
But these notes are so scarce in nronort;on
o the demand, that he cannot get them
Without paying premium for them, let us
ay OF 3 per cent. Thus, Philadelphia
sank paper, in comparison with South
carolina, is per cent below par-the s.
carolina, above it.
This single fact is the key to the whole
MYSTERY of Bank-paper. Who will sup
'ose' that the bank p per Of Philadelphia |
ON tins account, alone reaLiy below par
hat h r banks nave issued TOO much paper
md that 1t has deprecated ? No-the on
Y reason Is, that the PHILADELPHIA ner- |