True American. [volume] (New Orleans [La.]) 1835-18??, 1837-04-24

The price of exchange is regulated by demand
and supply, falling and rising it becomes album
dnm or scarce. This exchange not only super
sedes the of metal, but by its fluctuations ex-
erts powerful and almost controlling influence in
regulating imports and exports-hus, when a bill
on England sells in our market alta premium of
10 per cent, every marketable commodity which
can be sold in England or the avails of which he
ing sold elsewhere, can by means of exchange be
placed in England, is enhanced in value precisely
to the amount OF this premium, say 10 per cent,
and is therefore in request for exportation,
ton, tobacco, potash, &C.; while on the other hand
the importer must add to the commodity (his bale
OF cloth, his iron, or his crates) the 10 per cent
for his bill of exchange. Here then this agent is
regulating with two fold energy-rasing the
value OF exports, by premium of 10 per cent,
and depressing that of imports by 10 per cont
exrrtlng power in the aggregate Of 20 per cent.
in this regulating process. This influence soon
reduces the rate of exchange to par, and even he-
low par, stimulating Importation and checking
expectation in turn. Amy great huc,uaion in the
rate of exchange is usually anticipated by the
sklltul trader and corrected bcforeit reaches its
maximum elevation or depression. Thus within
the last winter when exchange rose rapidly, large
orders for goods in the British manufacturing
towns were countermanded, and checked the rise
OF exchange Just before it reached its maximum,
preventing the expectation of specie.
Potent and all pervading exchange is for reg
ulatlng commerce, yet when it steals upon, or
outruns the calculal ions of the pruvident trader,
either in its upward or downward progress, there
is another agent of commerce at hand to check
and regulate exchange itself; this great regulator
this agent is specie. When exchange has risen
suddenly so high that the premium will pay
the freight, insurance, and interests, and the
smallest sum beside on the metal, it will be ex-
ported in place of the BILL and when again bills
vibrate to the extreme OF depression, metal will be
imported. The shipment of specie alarms the
banks, curtails their issues, and money being
scarce, depresses the value ofexporlable commod-
tiles to the prce at which they can be shipped
with profit, and all is quickly regulated again
Domestic exchange is governed by the same
laws with foreign, aud exerts the same salutary
influence Oh domestic conn erce, that foreign ex-
change does on foreign commerce, and is itself
again controlled in its extreme vibrations by s,e-
Gle.
very natural, and at this time very impor-
tant que ton, presents itself for discussion-viz:
can Legislation exert any salutary influence on this
important regulator of commerce! To this guess
non answer emphaticaIly, none other til an to fix
the damage on protested bill, by way of com
pensat'on to The disappointed drawee, and punish
me mt to the careless or dishonest dr. ,wer This
done, legislation will have performed its Office
and expended its power; beyond this, all ofiiciuus
attempts to regulate, will but dcrange AMI pro-
dnce confusion where commerce is excrtnp ali its
power to preserve harmony Osucgo Paper.