The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1843-05-27

The exchanges have regulated themselves in remark
able in the face of all the predictions to the con
trary which have cmanated from politicians The uni
form currency Of this country regulated by the con-
sution, renders exchange operations the simplest that
be- No possible arrangement take place until
the constitutional coin supplsnted by the myrads Of
paper currsncies furnished by thousand issuing banks
When that takes place. exchange from being simply the
cost of sending 1000 silver dollars from point to
another becomes complicated with the comparative
lue Of paper, credit Of the banks that Issue it, and the
supply which they furnish at. When the several legsa
lures having created this confusion they seek remedy
it by granting monopoly OF the business to some large
bank.
The exchanges Of Europe conducted with the great
regularity precision. and cheapness in the hands Of
private bankers although the operations extend
ny different nations the currencies of which entirely
different. For instance if the French merchant buys
quantity OF wool in Span the to be paid in psolcs
Of the kingdom but he has only francs and confines
wherewith to buy bill order Of banker upon his
correspondent Spain for the psoles The francs are
transferred Spain in the shape Of pisoles Ac
cordngy price the BILL the cost Of the transfer
regulated by the relative value of the two moneys the
relative values gold and silver and the actual state OF
the exchanges balances between the countries Tho
Spanish pistole is about equal 10 francs therefore
person in Paris has topay 100 pistoles jim SPAIN he
would have buy the pistoles and transmit them which
would probably 40 francs Instead Of that, he goes
10 the broker and finds that he buy for s0s francs
bill which will him 100 pistoles in Blboa in 30
days. He thereby IS francs. The busn, between
the countries running nearly equal in imports and
exports the supply ofbls generally about equal to the
demand and the individual houses buy and sell at rsc
ton of one per cent and do good business The seadi
ofhs exchanges greatly facilitated by the vast and
regular correspondence of the houses enabling them to
arbrate any third point when the direct rates run too
high. For instance, between Paris and Amsterdam the
quotaon always to SO pennies de gros for francs
Ifnow remittance il to made from Paris to Amssrdam
of norns and in consequences Of great scarcity Of n
the rate falls to 4s pennies de gros for francs-hen
form equals. .'.''4v kv.e'
45 grotes " $500, :, 40 ns'e-'
600 horins Z" ...'i''WH
Hence would cost SEQ francs to remit direct; outr
appears that the London at the same time %
francs per and that London on Amsterdam sS por e
then
- grotes. 800. " 49,. schilling dc gros.
30 schiilng gros -. i e.
1904 E........... -. 100 e.
sod d e; .;..'..... ir:ilss'H"
To remit emit direct then, costs, 1900 90 francs
And Indirect at certain rates, 1855
Saving 642S
This operation makes the balances duo from section
pay the deficit due to another.
These complicated exchanges embrace all sections of
the continent running to each great money centre with
the greatest uniformity and steadness There no ma
ional bank, no paper system, and no monopoly ofany
sort every thing free trade and fair competition. No
idea of regulation" Is ever vcntured upon.
In the United Estates tho other hand, embracing
Of people iustesd Of with g0 and