Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1820-03-24


ihei consumption III the foreign markets,
ultimately provides Tor the return OF the !
specie which had becn exported.
SIN. During the >ecuidi and Ihud stages of this !
process. the price OF all articles not eXporta- |
be, L. Affected ia greater degree enter |
piiAe Is damped, ami distress prevails.
Such are tie hece sSaTy effects OF au uhfa- !
vorabic state OF toi eisD tAcaanee, where the |
currency Is metallic. As the vital principle |
oi commerce is gain, il is probable that, gen.
eraly, the price OF eXpor,able articles
would, IN tact, be rather higher than is stated
III the preceding deductions the timid might
export specie. before the premium upon eN-
change exceeded the expense of its SApOrta-
tons but ,lmidity is not the predominant
characteristic of commercial enterprise. On
tht other haIu the saugUiue and enteIpIisng,
relying upon the chance OF better markets,
would give higher prices, rather than embmit
10 ctrtdiG loss UPON tie expectation OF spe.
ere or the purchase OF blij> above par.
iha ccnAi.y where the paper currency
has been adopted. and the principle by
which Redundancy may he prevented,
have been enforced, au hnfavoIable state
OF t"reig" exchange will probably have the
following effects:
list. Iha effect OF raising The price O..
eNroi'abie articles, as mSch above what
they ought 10 bear, ~ 1Quai. ,he pIemium
upon foreign Bulls. But i. Til. case guld
ahd silver being eXpurIah!e articles, viii
rise liz the same propoi tion as all Uthtr ar
ticies
I'd When The price of al! atuces is rails
ed SO high thai ii loss will be incurred by
treir sale IN foreign MAJ hets. thoss VITO
nave no iemitianrIs 10 make viii Withdraw
from the competition. II profitable inves,-
nents IN other eHtSrpriZss cannot be made
a portion o; the cuiiency al their dispOSi-
tlOn viii he Withdrawn from ejaculation,
bN being converted into funded stock COM
petition will in this manner be diminished
the rrlce ot articles tor expectation will he
reduced by the reduction OF the currency,
ahd ny diminished competition among the
tS l,,Il
tat Tie piicP " i'll idli 50 low as TO admit of
prohtn foreign markets. as long as the
premium upon exchange continues above
me ordinary conmciciaI profit upon eX-
ported Articles. But expectation will not
he continued at certain loss, longer than
the diSchaiS" OF debts previsu.lN contract
! ed renders indispensable; toIeign articles
VIII mol be imported when the less upon
IcmittanCe,. Wh.thcr made by bills OF eN-
| change OF by the expectation OF commodi.
liea, is equal to the profit unon impOrta-
Ton; Tue hl.'i price given Tor exported
articles WI Increase their production, aud
restore foreign exchange to Il favorable
state. Ihe balance of trade aud the rate
OF foreign exchange which have given so
much Trouble to statesmen for two C.ntu-
RES past, whVn lett TO the laws by which
they viii be governed, in despite OF human
dsFlceS, as invariably regulate ihenisel>cs as
! huids, when unresirajued fluid their cnmmt ID
| level They will, probably, mrre promptly
conform 10 these laws III state where well
1 d
! - Is metallic. In the latter, the currency is
! exported tomake mp ANY temporary deiicien.
| c1, aud by that means provides against the
recurrence Oh the evil, by indirectly causiny
| al increaSe of the eNp0itab!e articles OF the
| stat" and diminishing the Importation az tor.
! eisn articles. Until the capacity To purchds.
! 'heSe by the exchange OF articles shall he re-
| 5''Ieu III Tie iurmcT as the currency cannot
| bs exported, tue lmpoGtatOns will be more
| promptly redRced rn the cal acity off, cOuu-
| Try topurciss whilst the increase OF its en-
po'tahie articles will be the direct instead OF
Tue l1"iie@' consequence Ita temporary in
| capacity To pay tor previous importations
| 81. During the whole process oil restoring a
| favorable state OF exchange in a country
where well regulated paper currency pres
vans, the price OF all articles not eApOrtanIe
wi! suffer 40 material variation 'Ghe funding
OF The currency, which will probably take
| place, VIII not be, immediately carried so far
as 10 reduce the price OF cApOTtHble articles
| so as 10 command profit i'll foreign markets.
! they VIII. so lon. as the tate of exchange is
NInfavOrabe, continue 10 command higher pri-
| ces ban wl'Cn the exchange is favorable Tins
| increased piiCe viii encourage Industry ana
| ehterprize, aud constantly lend 10 augment
! The productive energies of the comneLity
| Ihls effect cannot fairly be attributed To any
! depreciation III The currency That will COM
! tinue 10 bearneaTly the same proportion 10
! the cAchaugcable articles OF the state as when
| foreign exchange waS favOra blr...Ii il
prubJ ole eyPu that its relation 10 those arti-
| Giles Will he changed, SO a, 10 produce al APP
! preCiIi- IN of the currency; and that this an
probation will ID" perceived IN a Zig lat degree
I ~ the depression 81 the value OF ali articles
! uOi eNp0Itsble. The effects OF tifiS appyecIas
| non ~iii, however, BE- diminished by the i'm
pulse given Ia Industry and enterprise, by The
/ decreased price OF all articles which can be
| sNpcrted
These are conceived TO be the effects which
! a wsli regulated paper currency will have upou
the to.rign exchanges, aud upon tie domestic
industry OF The country which may adopt il
| 10 THE value OF currency depends, ike that of
! AL other articles, upOH the quantity COMPARED
| with tue demand Tie idea of it's depreciatiou
| III raising the price OF articles in the case
| which las been considered must be rejected
| ihat this position Is iucontrOvePJble seems TO
have been admitted by all writer's upon the
! SUBJECT. This admission IS found in the re,
| pIIs which have been made TO the British
| Parliament IN The evidence upon which those
| reports have been founded ;aHdin the ESSAYS
| oi those who nave opposed the paper system
| - thai cOuutTy, since the year 1877. The OBJ
| Isction TO tie paper system as Il existed ln
! Lngiand, was the absence OF all restraint upon
! tue issue OF paper, and the supposed ,mpos
| sislli'S Of imposing any efficient restraint. In
| fact, no atteDpt has been made 10 itrDcsf
| fuch ressraiut IN that country unco ~ c leu
| III tie con, eriibIliy of bank notes Into the
precious metals. so iaras this restraint j. lin
! tied TO tie cOHVertibiIttS OF bank rOtes into
buUOn, AT any gwen rate, Il il TdlhCT au at
! tenpt 30 regulate foreign exchange tkruuglI
! TIA iustTnEtIId,iiy olJfhe bank, than to con
hus TIE issue OF baHk nUieS TO the sound de-
mana Tor currency. Tie restraint imposed
Sc M 30 resi- uDcn the IDEA thai an unidv0rd-
bic state ~ foreign eNcra0er must oe the re-
sui o. redundant cujreucV. Nothing can be
more incorrect ihAn thi, hyprtnc.ss. Cons,-
deriug the Nitiaied state OF the currency of
England iaI more thau is enty yaais past, il is
not Surprising that tnis idea Should there l.
entertained. During that period he uulayO-
rabie Idte OF i"iciGB exchange which gene
rally prevailed. ~ds, if not directly at least
ffstf L., 4
thcir CnrscncN. b g. in this interval, 4 fayo-
liable rate oi iOitIEu exchange more tran
Uncs occurred. - what could this ia
yOratic exchange De Attributed Certain
IN ILI- lllLI.rinlLLtr II ii.....