Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1821-12-08

P'or"''i",s, which the supply and demand
may occasion aud hence the market propor-
lions IN the principal markets oi the trading
"mId. NH rcssuiat. them almost every where
else II, Tor example, "ne ounce of gold in
i.ondun or Paris will sell for sixteen ounces
of silver ihis would destroy the proportion of
10 To in the United Stairs, for every man
vino had Il debt TO pay abroad, would send
gold instead OF silver, as long as he could pro-
cure IT at the old rate, which would diminish
the quantity of gold much, that what was
lett would he more valuable To those who
possessed IT. and would command "A premium
rms Is what has ACTUALLY happened, and is
The cause of the almost total disappearance Of
gold from the United States, which is worth
nov an s'vcr) iii the Atlantic cities an ad-
vance ot4 or per cent, although, if it be Ia
kcn 20 bunk, it will be received only at the
legal value. Ou' eagles, rs fast as they arc
co'led 4 the miat are exported and this
will b. tiiccasr uatil the holders of gold UNI
derstnnd its value, and refuse to part with it
Tor less than its cquicaieT,t iii silver
NOW, admitting as we must. that there is
no hNed natural proportion, between gold and
silver, IT will follow, that between two nations,
IN one OF which goll is the standard and in the
other silver, there can be no such thing as n
fixed par of exchange. la England, gold is
me only legal tender, except for sums less
than tw" guincas, so that if man has debt
10 payln London, and Inns Il million of Span
ISL or American dollars, hc cannot compel his
creditor to take them. Tkry must be sold as
bullion, and converted into the gold coin OF
me realm, or into the notes of the Bank of
i.nSland, which are rcdccnahlc in gold In
the United States, both gold and silver are le-
gal tenders III the proportion of - to l, for
any amount, however great; but as gold will
not circulate here, whilst il is worth more sill
yer abroad than it will command at home.
SILVER may he considered rs the proper circu-
liung medium OF oar country. The act of
congress which regulates the value of foreign
currencieS, declares that a pound sterling
should be equivalent to s ~ This act was
absurd in itself, hrca,isc il was an attempt to.
Tx by law what cannot even he fixed bv ma
turc. 1t was declaring that certain quantity
al gold, tor the pound STERLING although not
coin, has relation only to Sodl should always
he IN the United States the equivalent ola Ak
ed quantity Of silver. So long, however. as
ihe market proportions between gold and sill
yer did not vary from the mint proportions in
the United States, this ahsurdity was not man.
Hest to the great mass even of those whose.
daily pursuits oasilf to have led them to
perfect understanding ca the subject.
Ii will he snrn from the foregoing, that i; is
Impossible To ascertain whit really is the par
ct exchange between the United States and
Treat D'It4n, except by measuring silver
against silver, or gold against gold. Exchange
rs al par, when man, by paying an ounce of
gold or M ounce of silver, can purchase. a bin
on Il forcigA country which will command i'm
that country ;he identical quantity ofthc same
meal OF equal iineuess. Now, il we resort TO
me true mode ol measuring, we shall find that
the real exchange Oh England, is not more
than or per cent abDyc par, and the an
of lie hai,o q 7 N ..
he act of congress alluded TO for if we take
100 ounces Of silver, and with it purchase a
bill on London for as many pounds sterling as
can he had ut the market rate OF or 10 per
cent advance, that bill in London can he CON
verified INTO SO or 81 ounces of silver, for silver
Iri1ondonis AZ or per cent below what is
there called par, SO that the exchange would
really be only at or per cent advance. in
Stead OF or 10. Ii, on the other hand, we take
gold us the measure, 100 ounces of gold will
purchase, in any of the Atlantic cities n bill
on England for So or 81 ounces of the same
metal, of the same degree of purity.*
If there were any doubts as to the correct
ness of this reasoning, they might easily be
removed, by an attention to the following po-
siiion: the real exchange between any two
countries, can never much exceed the expense
of transmitting the precious metals from one
country to another. This expense between
the u. States and Great Britain, including
lTeISnt, insurance, commissions, sc. may a.
mount 10 ), T. or . per cent and us any man
who has debt to pay in the latter country
can do 1t without greater loss than or 4 rer
cent. he certainly would not give or 10 per
cent. premium for bill.
But II man contracts debt payable in
gold as all our English debts are, and the debt
or has nothing TO give but silver, he is exactly
tle Situation nf .hnco 81,
ern country who nave contracted debts in the
eastern cities payable in silver, and who have
nothing hut paper TO discharge them with.
He must convert that which he has into the
specific thing when he promised 20 pay TO
ms creditor, and the loss he thereby snstains
rs no more to be ascrbed to the exchange.
than the loss which he would sustain if ne
were obliged to convert produce, merchandise
or lands luto money. In Ohio before the cx-
piosion OF the paper SYSTEM a bill on Pha-
delphia, payable in colo, was worth 10 or 90
per cent. adYanre, payable in deprecated bank
notes. AT that time it was said that the cx- |
change was against Ohio 10 or 90 per cent
but ifiis was only an appearance-fhe real ex
change was never more than or 8 PR cent. |
against her; for there was no time at which n |
man, by paying down 100 silver dollars, could |
not have procured bill for 81 or 90. The |
same is true Of Kentucky nj this time-au
eastern bill is worth 30 pr. ct. premium, paw |
able in bank notes not redccmablc in coin. |
and the people there have an idea that The !
exchange Is 80 pr. ct. against them hut let |
any person enquire the price of such a hill
payable III coin, and he v III find that no more
premium will be asked for it than what is a
bare equivalent GoI the expense and risk of
transmitting coin.
FlIis reasoning clearly shews, that !hc high |
rate of cXchang", as il is called, on England. |
proves nothing MS 60 whether the bal;,t,cc Of