Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1824-07-02

because thew have money, but because they want
wheat. To decide whether money be plenty or not,
that is, whether there be Large portion OF capital
UNEMPLOYED or not, when the currency OF country
Is metallic, We must look, not only to the prices of
commodities, hut also TO the rate oi interest low
rate OF interest," facility OF obtaining money on lOans,
a disposition TO invest in permanent stocks, all oi
which az proofs that money Is plenty, may neverthe-
ess often denote state not o the highest prosperity
They msy, aud often do, shew want Of employment
for capital and the accumulation oil specie shews
| the same thing. We have OCCASION Tor tho pre-
cious metals ; money, except Tor the purposes oil
circulation, or rather OF sustaining sale paper CIR
cuiaiion. And whenever there be a prospect oil q
profitable investment abroad, all the geld anu silver,
except what these purposes require, w,l lie exported
| For the same reason 1t "a demand exist abroad Tor
sugar and coffee, whatever amount OF those ARTICLES
a'ght exist IN the country, beyond tue wants OF us
own consumptiOn would be sent abroad 10 meet that
| demand. Besides, sir, how should il ever occur 10
any body, that we should continue export gold and
silver, u we did not continue TO import them also =
IL vessel take own products 10 the Havana, OF
| elsewhere, exchange them Tor dollars, proceed to
China, exchange them for silks and teas, bring these
last 10 the ports Of tn Mediterranean, sell them there
for dollars, aud return the United States this
would be Voyage resulting in the importation OF the
precious metals But If she had returned from Cuba,
and the dollars obtained there had been shipped d-
rect from the United Staies TO China, the China
| goods sold in Holland, and the proceeds brought
home in the hemp aud iron Of Russia, this would he
a voyage in which they were exported. Yet every
body sees, that boil, might be equally beneficial to
!
in poin, Of fact, have enjoyed grea, benefit in
trade with India and China, from the liberty Of going
from place place all the world, without being
Obliged IN the mean time, to return home-a libeiiy
not heretofore enjoyed by The private traders OF Eng
land, in regard to India and China. Suppose The
4 American ship to be at Brazil, for exampe-she
could proceed with her dollars direct TO India, and,
IN return, could distribute her cargo IN all the vai
Gus ports OF Europe, or America while an English
ship, if private trader, being at Brszil, must first
return TO England, and then cosld only proceed in
The direct hne from England to India. This advan-
iage, our counirymen have NOT been backward TO
Improve and ia the debate to which have already
so often referred, II WAS stated, not without
complaint of the Inconvenience Of exclusion, and
The natural sluggishness Of monopoly, that American
ships were at that mumeni fitting out in the Thames,
TO supply France, ollsnd and u,her countries on the
continent, with tea while the East iudia Company
would not do this OF themselves, nor allow any OF
| their fellnw counrymen 10 do il Tor them.
! There IS yet another subject, Mr.. Chairman, upon
which would wish 10 say something, IL might pre-
sumo upon the continued patience OF The Committee.
I We hear, sometimes, III the House, and continually
out oil is OF tho rate Of exchange, being proof
! that we are on the downward road to ruin Mr..
Speaker himself has adver,ed TO that topic, and I
am afraid that his authority may give credit opin-
ions clearly unfounded, & which lead to very false and
erroneous conclusions. Sir, let what the facts
are. Exchange on England has recently risen one
or one and half per cent, partly owing, perhaps
10 the introduction Of this bill into Congress. Be.
fore this recent rise, and for the last six months
understand IT'S average may have been about seven
and half per cent. advance. Now, supposng this
tn he the reot, and not merely, as ts, the nominal
par OF exchange, between us and England, what
| would il prove? NOihng, except that funds were
wanted, IN England, for commercial operations, to
would not necessarily siew that we were indebted
To England for, il we had occasion to pay debs in
l Russia or Holland, funds in England would natural
ly enough be required for such purpose And even
II II did prove that balance due England, Al the
| momen, 1t would have no tendency to explain 10 us
whether our commerce with England had been pro-
ht'bie or Improbable. But ii is true, in point Of
iac that the real price OF exchange is seven and
halt per cent advance, nor, indeed, that there is, at
The present moment, any advance all. Tha, is 10
say, IT is no, true, that merchants will give such an
advance, or any advance, for money in England more
than they would give for the same amount in the
same currency, here. II will strike every one, who
reflects upon il, that, fthere real difference
| OF seven and a half per cent money would be mme.
aediaiely shipped 10 England because the expense
OF transportation would he far less than that differ.
ence Or, commodities OF trade would he shipped TO
Europe, and the proceeds remied 10 England If
II could so happen, that American merchants should
he willing to pay ten per cent premium for money
~ England, or in other words, that real d. Inference
TO that amount, in The exchange, should exist, its
effects would he Immediately in new shipMen
Of our own commodities to Europe, because this stale
| OF things would create new motives. cargo of
tobacco, Tor example, might sell at Ams,e rdam for
the same price ms before ; but if its proceeds, when
RENTED TO London, were advanced, as ihey would
he in such case, ten per cent by the state of ex-
change, this woald be 80 much added to the price
and would operate, therefore, motive for the ex.
portaiion and in this way, national balances are and
always will be, adjusted.
10 TORN any accurate idea Of the true state Of ex
| change, between two countries, we must look al
their cu'rencies, and compare the quantities of gold
nno SILVER which they may respectively representa-
ms usually explains the state Of the exchanges and
tins VIII satisfactorily account for the apparent adj.
yanIe, now existing on bills drawn England. The
English Standard Of value is gold: with us, that Of
hce Is performed by gold, and by silver also. at fix
ed relation 10 each other But our estimate of silver
10 rather higher, IN proportions to gold than most ma
ons give 1t is higher, especially, than in England
s:. Se p s;", momen'i Inc consequence is, thar
here, while The gold has gone abroad verifying he
universal! truth, that, i tco currencies be aowsi -,
exist, OF different values, that which is cheapest will
| bill up The whole circulation For rs much gold 40
will suffice 10 pay here debt Of given amo1nr we
can buy in EngI,nd more silver than would be necss
ssry 10 pay the debt here and from this differ
ence IN the value Of silver arises wholly, or in great
measure, the present apparent difference IN ex-
change. Spanish dollars sell now, in England, for
four shillings and nine pence sterling per ounce
equal TO one dollar and six cents. By our Standard
the same ounce is worth one dollar and sixteen
cents being difference Of about nine per &c n, .
The true par OF exchange, therefore, is nine per cent
u q merchant here pay one hundred Spanish dollars
for bill on EnglanJ at nominal par, in sterling mo-
nes, that is, for a bill for E22 TO- The proceeds nj
this bill, when paid in England in the legal curren
cy, will there pure base, nj the present price Of silver
one hundred and Dine Spanish dollaIs. Therefore
u the nominal advance on English bills do not ex-
coed nine per cent. The real exchange s not against
this county in other words, il does shcw that
there is any pressing or particular occasion for the
remittance Of funds to England
As lille be inferred from The occasional trans
fer Of United States stock to England. Considering
the interest paid SOCKS the entire stability Of
our credit, and the accumulation Of capital IN Eng
dnh II IS not ~ all wonderful that investments should
occasionally he made IN our funds. As sort Of
couneryaing fact, IL may be stated that English
Ito noI in