The Charlotte journal. [volume] (Charlotte, N.C.) 1835-1851, 1841-12-23


Erckange,-Tbere are many persons in
the community. especially among the geo
tie sex, who know but little of the nature
of Exchange operations. They are aware
that money is transmitted from one par, OF
the country, TO another, or from one coun.
try 10 another, BY means of Bills of Ex
'change-but the precise nature Of the op
Grafton, or the mode Of establishing the
/" rate of Exchange" is still mystery in
their eyes. Since President Tyler's ne
toes, great deal has been said ln relation
to Exehange-curiosity has been reused,
aud wish TO solve the mystery has been
excited. With view to crafty this aud-
able curiosity, we now lay before our read
ers the following explanation of Exchange,
written by that practical man, William
Goblet Boston Journal.
What is that thing called the Ex-
change One man draws bill on anoil
er man third man buys this bill of the
FIRST, and sends 10 the second for payment.
That which the second man pays to, or
takes from. the first man, orer and ADORE
or less than, the amount OF the bill, is what
Is called the exchange, and when he gives
neither more nor less than the amount Of
par, jus, as our money IS, when We get
twenty shiilings il exchange for sove.
reign.
Let US take an illustration and let il be
at home, where the money has the same
name in all places. ShnrpshIns, Bristol
naa, draws bill on Londoner for hun
/ dred pounds that the Londoner owes him.
+ Anoiber man, whose name shall be Broad
brim, who owes hundred pounds in Lon
I don, comes to him, and bugs this bill
/ Now, if there be tev persons IN Bristol
who have any thing due to them in Lon.
don, sho can draw upon London, and as
bill IS much more convenient thing than
ing of gold to send TO London, Sharp
Shlns SAYS 10 Broadtrim, will not let YOU
have NY hundred pound olll, ualess you
give something over, which Broadhrim
will do in order 10 get the bill, winch is
most safe and convenient mode Of con.
veying the money. Then, that which
Broadbrm gives for the bill, over and
above the hundred pounds, IS called the
rate Of exchange and this exchange IS said
to b. IL favor Of London, because a bill on
/ London will fetch moro money than tie
SUN that Il s drawn for. But when the
contrary is the case, when there are many
/ persons who want 10 sell bills on London,
and few persons IN Bristol who want TO buy
such bills, then Sharpshins must sell his
/ hundred pound Dill for less than hundred
poands, OF else Broadbrm viii not have 1t,
seeing there are so many persons who want
10 sell bills on London and now the ex
change is 10 favor OF Bristol, seeing that
the London people owe the Bristol ones
more than those of Bristol owe those Of
! London. Sometimes the dealings and
debts between the two places are 80, that
each owes as much to the other as tho 9th
or Owes to 1t. Then the one hundred pound
bill Will sell for hundred pounds and no
more. And then the exchange is said to
! be at par or on parallel.
| Ii is the same with regard to two nations
i but here comes IN the circumstance Of diff
lerent denominations of money, 10 account
or reckon by. Ours IS a pound sterling.
the French have heir franc, the Italians
have their form, the Spanish their dollars,
the Dutch some beastly thing that does no.
nov occur TO me. Lei US take the French
franc; 2J francs (lcavIng out the fraction}
are equal 10 intrinsic value TO az English
pound Therefore, If owe nan in
France Gl0G. ! must send a bill Of $500
francs, If the exchange be al par but as in
the Bristol and Loldon case above stated,
may have 10 give more, or 10 give less,
than El00 for bill Of 2 900 francs, &C,
cordlng as the debts due from one country
to lhe other, affects as we have seen above,
the rate of extaange.S
SCENES IN TIE TENNESSEE LEGIS.