Alexandria gazette & daily advertiser. [volume] (Alexandria [Va.]) 1817-1822, 1821-12-20

instead of silver. Our Eagles and other
gold coins are exported and will continue
TO be so, until the owners OF It, refuse 10
part with it for less than its equivalent ~
silver In England gold is the only legai
tender, except for sums less than TWO su,
eas, so that if man in England has NIL
lion OF Spanish OF American dollars ne can
not compel his creditors to take them.
They must be sold as bullion, and convert
ed into gold or into notes OF the bank OF
England, which are redesmable IN gold.
In the United States both gold and silver
are legal tenders in the proportion oil ID TO
I, for any amount, however great; but as
gold will not circulate here, whilst IT IS
worth more silver abroad, than it will COM
mand at home, silOer may be considered
as the proper circulating medium OF our
country. The ACT ofCongress whish regu-
!ates the value of foreign currencies,. de-
ciares that a pound sterling should be
equivalent to D.4.44. This act was abb
surd in itself, because it was an attempt TO
fix by taw what cannot even be liked by
nature. Ii was declaring that certain
qualify of gold, for the pound sterling,
although not a CON, has relation only to
gold) should always be in the United States
the equivalent Of a fixed quantity Of silver.
So long however, as the market proportions
between gold and silver did not vary from
the mint proportions in the United States,
this absur,ity was not manifest TO the great
mass even of those whose daily pursuits
ought to have led them to perfect under
standing on the subject.
ii will be seen from the foregoing, that
it is impossible to ascertain what really is
the par of exchange between the United
States and Great Britain. except by inca
surfing SILVER against stiUer, or gold against
gold. Exchange is at par, when man by
paying an ounce of gold or an ounce Of
silver, can purchase bill on foreign couG-
try which will command in that country
the identical quantity of the same metal of
equal ineness il We resort to the
true mode of measuring, we shall lind that
the real exchange Oil England, is not more
than or 4 per cent above par, and the APP
peGrance of its being 8 or 10 is ocCasioned
by the act OF Congress alluded TO.
From this we inter, that the high rate OF
Exchange on England, in the end, is not
more than or 5 per cent. against us as
the real exchange between any two coun-
tries cannot much exceed the expense of
transmitting the precious metals from one
country to another. Our present laws,
[says the Philada. Union, from which the
present article is condensed) virtually,
though not formally, declare that gold shall
not circulate in America. Perhaps under
existing circumstances, silver is TO be more
desired by US than goId-bul 10 drive the
latter from the country was not the design
OF Congress. The variation in the relative
value OF gold and silver, which has taken
place latlerly, in the market OF Europe,
has been brought about by variety OF
cause.-the principal one, is the resump
ton Of specie payments by the bank of
England.
We hope some of our patrons we'll yer.
sed in these subjects. will enlighten the
public mind Un these things.