Southern standard. [volume] (Columbus, Miss.) 1851-1856, 1853-04-09
NUMBER IL.

PaitHchls VI huOWledge, Dut IN matters OF this
sort, strongly suspect, that this eminent states
man, was not exactly, and altogether booked up
| said few sentences back that there was an
apparent gain to the Bank in the sale of the bonds,
rs II Was effected. The statement was guarded
and qualified. II was Intentionally so. Mr.. Mich
olas Biddle scarcely green enough TO have
been so far oulwitted by the agents of the Mssis-
sirpl Union Bank. The gain was only apparent
In point OF fact there neither gain nor loss to
the Bank By the arrang cement. The difference is
compensated for by the par of exchange between
the two countries. The par of the currency of
any tw" countries means the equivalency of GER
tain amount OF the currency of the one in the
currency OF the other, surprising the currences Of
both to be of the precise weight and purity fixed
by their respective minis" This is tie definition
OF McCuIioch, (See Com. Die. vol I, D. 557l
THIS true par OF exchange las in mercantile Ian
guage 1t is called) has been estimated differently
at different periods. 1t was estimated by Mr.
Galll;in (wriing in 1927 at per cent, by 9TH
ers al per cent above the nominal par-of course
| mean AS between our country and England. It
is subject too to slight, but very slight fluctuations
1t may be affected by an occasional discrepancy
between the actual weight and fneness of the
coins, and the standard of their weight or 6neness,
as fixed by the mint regulations As between the
gold coin OF one country and the gold coin of an
other, it may be different from what it is between
the gold coin of the same country, and the silver
coin of the other. As between the sovereign and
eagle for example, it may be little more than il
Is between the sovereign and the American dollar
-Four dollars and forty -four cents and ninths of
cent is the true par Of exchange on England as
respects the American dollar. All mercantile ac-
counts between the two countries have been ad-
justed upon this basis for the last fifty years, and
it is presumed that they will be adjusted in this
way for the next fifty years to come This differ
ence, or premium which is suffered or paid on ac-
count OF the real par of exchange, must not be
confounded with the constantly fuctuating or
market rate Of exchange; which last depends upon
the increase or dminution of the bills drawn from
one country on another; in other words upon the
course balance of trade between the two coun-
trles. This as against our country and in favor of
England, may sometimes be as high as fifteen per
cent, at others as low as FIVE per cent When ex-
change on Eng land sells at premium Of fifteen
per cent, the purchaser pays for it, in reality only
six per cent and fraction over-the difference
(nlne per cent? being about the real or true par
o exchange, between American and English coin.
} On the other hand when exchange on England
sells ut nominal premium OF five per cent, it is,
IN reality, at discount of little than four
per cent, and for the Same reason. Therefore by
changing tie denomination of the coin in which
the Union Bank bonds drawn payable from
American 10 English coin. there neither loss
nor gain to the Bank for the real par of exchange
? estimating it at fraction 81 per cent
makes up the difference between the arbitrary mint
value OF the respective coins.
Besides, it should constantly be borne in mind
in examining this subject, that in point Of fact
there has been change all in the kind of coin
! in Which these bonds 10 be paid. They were
drawn and made by The Stale, payable in dollars,
and they still payable in doars-unly the UaEue
OF the dollar is fixed and certainly not fixed at less
than its current and real value; at ISIS than its
value it issues from the American mint, as
have endeayUred to show. The truth is that sell
t ing the bonds abroad (as the commissioners were
clearly empo Nered by tle charter TO do, they did
b buL declare by endorsement upon the bonds. the
: value vi each bond in English currency Is it
1 inquired why even tbs done ? The answer
: is easy enough. Without ii the bonds never could
: have found IA purchaser. Dealers in the public
h funds buy STATE securities, pretty much large
X Spectators deal in other commodities; they buy
5 to sell again. The commodity they invited to
y purchase must suit the sub purch0ser-both in
IA form and quanlity-or they will hot touch it. For
e this REASON these bonds issued by the State
l. In small sums of $4,000 each, and for this reason
d the value OF each III sterling declared by en-
$ dorscment upon them; to suit the thousands OF
English people of every grade of rank and fortune.
:, who invest their money in this way: in short, to
e make them easily Ineligible to the only people
d amongst whom there was any demand for them.
a So much in reply to the charge that the COM
ot missioners have caused loss the Bank by the
N change of the face of the bonds, (if indeed such
= change there was) from American to British
l. coin. The only remaining charge has now to be
at considered. Ii is thiS-that the interest of the
8 bonds from their date June 9th, 1888, up to the
" respective periods when the instalments OF money
to received for the bonds payabe-amounting
I'd to 1873, 336-waS lost to the bank and no equiva
ne lent ever received and that thus the bonds wer,
E not sold at par value l frankly admit that thi
all part of Gov. McNutt's arithmetic is right, but
rs do not admit the conclusion he draws from It,
I'd This amount lost to the bank by the sale; bu
= what does that signify if its full equivalent wa
5n gained in the place of it 2? The exchdRge between
jackson and New Orleans where four tifths of th
RS money was by the contract of the sale made pay
asl able good deal more than made up the loss: an
I'd so the bonds acre sold at par value. What is tn
Its meaning of par value Any thing which is i
Nv value equal to that for which it is exchanged
a measured by money as the standard of value
he Exchange--or the difference in value between
act gwen amount of money at two different places
If is thing of value just horse or an OK or
IN American dollar is. It's bought and sold perhaI
ry AS often as any other one thing in the world.
=, the sale of the Union Bank bonds, The price pal
erL for them was what their face called for less Il
he interest for few months, but Plus the exchans
ire ON I'D, GOO, eco between The place of location
ee- the Union Bank. and the place OF payment. 1t
vi within the memory of many now living, tn
lal the rate of exchange between Jackson and Ne
ars O leans at the time these payments were maj