Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1819-07-02

10 transmit Tue com
from 'hi9 country, where il WAS not ne
cessary, to other places where i, could be
more prohiably employed, has been in
very trifliHg degree, counteracicd by the
Legislative .enactmen,s which prohibit
such AN application of 1t.
u Is possible, in the opinion Of your
committee, again TO procure any quantity
OF gold which is likely TO lie required fer
Inc purposes OF currency; but rorres-
ponding amount of the capital Of the
country must be withdrawn from prodnc-
i've employment for the purpose of az
quiring aud retaining the gold i'm circula-
'ion; and causes are at present i'm opera
tinn, which are likely, by increasing The
value OF ihe precious metals, To Increase,
m proportiouate degree, the difficulty of
obtaining, within a limited period, an
adequate supply for the use of this cour.
try.
u appears that the Governments Of
other ouniries in Europe are now occu-
pied III substituting Il metallic, for 'arge
portion OF the paper currency, which the
ne. essi,ies Of war compelled Them TO es,
tahlish; and that the supply of gold and
silver importedin,o Europe of late wears,
has been diminished III consequence OF
The disturbed state Of the Spanish c. To-
mics.
These efforts on the par, Of other cour-
tries To restore Ia par with the precious
metals the value of their respective cur
renciss, would, by making the exchanges
more unfavnrabie TO this country, agra
vale The cvi! of "A long conlinu Il resiric.
ton, but they will certainly, by increasing
The value Of the precious metals, render
increased exeriion on our part necessary
Tor procuring a sufficient supply.
The ability of the Bank. however, TO
resume and continue cash payments,
depends less upon the actual amount Of
treasure ii may be possible TO accumulate,
changes previously and subsequently, TO
their resumption, and 10 The degree of
certainty there may be, that the market
price of gold can be reduced TO aud
made 10 conform with the Mint price
Unless such a reduction can he effected
and such a conformity established, IL will
be ia vain for ihe Bank To expeud their
capital IN The purchase of bullion. No
accumulation of treasure, 10 whatever
extent il may be carried, can render the
Bank competent 10 satisfy the demands,
which will inevitably be made for geld, If
the Bank are under AN obligation 10 issue
IT al the rate of < 8 Us. lokd. per ounce,
aud II the parties having ii right TO de-
mand n, can costume tV reaiZe-a prcfIt
of s or 6 per cent. upon its exporlalinn.
The docuUents in the Appendix afford
ample information, with resprci.-to the
state of the Foreign exchanges, and the
price of gold mpa 'ured IN Rsnk n1ies, Tor
several years past, ard the various opini-
ons ot those Who were deemed by yoeT
COMMITTEE most competent 10 form
Judgment will respect TO the causes which
have OF late influenced the exchanges,
and the price of gold will be ascerlained
by a reference 10 The evidence.
Your Committee have already observed,
thai for a considerable part of The wars
1916 and 1917, the foreign exchanges
were IN favour of this country, and rbat
since the month of July of HE latter wear
they have been below par Some Of lie
witnesses ascribed tie unfavorable chsnge
10 the effect of the loans which had bren
made about that period by Foreign Pow.
ers, 10 The remittance Of British CAPITAL
for The purpose of being invested in TO
reign securities and foreign commercial
enierprze, and to the effect OF very
large Importation of corn In The course.
OF the last year and some of those
witnesses are of opinion, that no men-
snres could have been taken by the Bank
TO control the effect of snCl extensiy.
remIitanceS.
Other witnesses admitting thai The eau
SEES which have been adveTted 10 had p
tendency To depress the exchanges, coni
ceive that contraction of the issues of
the Bank sufficient TO countprbalance the
operation of these causes, might, and
inIallbly would have taken place, had
there been an obligation on The Bank 10
pay its notes lie specie Oh demand.
However the exchanges may have been
thus affected, in the course Of the l:sst
and the preceding year your Committee
see no reason To apprehend that The eau.
SEES above mentioned, or any similar eau
ses, can continue TO affect them in such
degree as to preclude Tie Bank of Eng
land, by constant reference To Tie eX-
changes and the price of gold, and when
necessary, by cautious reduction Of
their paper currency, from gradually an
proxjmaiing IFS value to thai Of gold, anu
ultimately re-estabiisiiing and maintaining
II ~ par.
Your Committee have had submitted
to them a calculation of the amount Of
British capital now invested in foreign
securities, and OF The remliiaBces, whi.h
may probably be required Tor further
payments Sn account 81 foreign lnans.---
The calculation is founded on the esti-
mates oi three commercial houses. pxten.
sIvely engaged in foreign loans, which
estimates are stated TO vary to az incon.
siderable extent; and lis computed that
the amount Of British capital in foreign
public securities, Is about ten millions
five hundred thousand pounds, seven mil
Hons OF which are supposed to be in
French Stock. The Estimate was fur.
nlShed to the Con- mittee 10y Mr. Haidi-
mand, who thinks there Is d possibility Of
error, To The extent OF one or two millions.
lie is OF opinion, that little or nothing
more VIII be sent from this country on
account Of foreign loans, now IN course If