The Yazoo Democrat., 1853-03-23

Ing In 1onuon OF Al cents and 0-9th OF cent In
every pound. That this calculation cannot be
far wrong, may easily be made manifest to the
most lnexpert capacity. Four shillings six-pence
IS nxed Oy the sale as the value of the dollar. Il
would require then only "a so to pay 20 shill-
ings and three -pence-whch is three-pen over
tne number of shillings in the pound. Four dol
lars and half then, will over pay the pound ;
ana tour dollars torty-four cents and 18th of a
cent will just pay 1t, provided the payment is
made upon the terms and at the place fixed by
the contract of sale. Whereas in the United
States, 1t would require "a Sc cents to pay it,
making rs have said before, gain to the bank
OF al cents and 5-9th ofa cent in the payment
OF every pound sterling gain of hundred and
eighty y-seven dollars in the payment of every bond
OF $4,000; and making gain on The bonds sold
I'm number 2,500) of @467 500. According to
Governor McNutts arithmetic however, there
was loss TO the bank by this change Of the de-
nomination OF the coin In which the bonds were
to be paid, of S90I ,443. The writer has high
appreciation of those qualities which distinguish
ed Governor McNutt. He was honest, he was
earnest, he was politically and morally courage
Gus almost to heroiSm. He was extensively
and accurately informed too, in many depart
ments of knowledge, but in matters of this sort,
| strongly suspect, that this eminent statesman,
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, as 1t was effected The statement was
guarded and qualified. 1t was Intentionally So
Mr.: Nicholas Biddle was scarcely green enough
to have been so far outwitted by the agents of
the Mississippi Union Bank. The gain was
only apparent. In point OF fact, there was mel
ther gain nor loss to the Bank by the arrange
ment. The difference is compensated for by the
par of exchange between the two countrles.-
eThe par OF the currency of any two countries
means the equivalency of certain amount of
the currency of the one III the currency OF the
other. supposing the currencies OF both to De of
the precise weight and purity fixed by their res
pective mints." This is the definition of Nc
Culloch, (see Com. Die. vol. l, p. 557.) This
true par of exchange (as in mercantile language
1T is caled) has been estimated differently at diff
ferent periods. 1t was estimated by Mr. CALI
tin (writing in 1929 at z per cent, by Others at
per cent above the nominal par-of course
mean as between our country and England. 1t
is subject too to slight, but very slight huctua
tions 1t may be affected by an occasional dis
crepancy between the actual weight and fneness
of the coins, and the standard of their weight or
fineness, as fixed by the mint regulations. As
between the gold coin of one country and the
gold coin of another. 1t 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 it is between the SOW
ereign and the American dollar. Four dollars
and forty-four cents, and four-nlnths OF cent,
poets the American dollar. All mercantile
accounts between the two countries have been
adjusted upon this basis for the last fifty years
and it is presumed that they will be adjusted in
this way tor the next fifty years to come. This
difference or premium, which is suffered or paid
on account 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 diminution of the bills
drawn from one country on anotheTt in other
words upon the course or balance of trade be-
tween the two countries. 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 ner cent. When exchange on England
SelIs at q premium of fifteen per cent, the pur-
chaser paws for it. in reality, only SIX per cent
and fraction over-thc difference (nIne per
cent? being about the real true p2r OF exchange
between American and English COIN. On the
other hand, when exchange on England sells at
a nominal premium of five per cent, 1t is, n re-
ality, at discount of little more than four pc;
cent, and for the same reason. Therefore by chan
glng the denomination of the coin In which the
Union Bank bonds were drawn payable from
American to English coin, there was neither
loss nor gain to the Bank, for the real par of ex
chance estimating it at fraction over ct per
,ent,9 makes up the difference between the arbi-
Ira rv min. value OF the respective coins.
Besides. it should consta2ly be borne in mind
N examining this subject, that in point OF JGct
here has been change at all in tie kind Z. COIN
n which these bonds are to be paid They were
lrawn and made by the State, payable in dollars,
md they are still payable in dollars-only the {
value of the dollar is fixed, and certainly not
liked at less than its current and real value; at
ess than its value as it issues from the Ameri-
an mint, as have endeavored to show The
ruth is, that selling the bonds abroad (as the
were clearly empowered by the
,harter to do) they did but declare by endorse {
nent upon the bonds, the value of each bond in (
English currency. Is it inquired why even this |
was done? The answer Isl easy enough. With !
out it the bonds never could have found pur- :
chaser Dealers in the public funds buy State :
securities, pretty much as large spectators deal
IA other commodities; they buy to sell again. !
The commodity they are invited to purchase I
must suit the sub purchGser-both in form and '
Iuantity-or they will not touch it. For this I
eason. these bonds were issued bv the State In :
small sums of $4,000 each, and for this reason !;
he value of each in sterling was declared by en-
lorsement upon them; to suit the thousands of
English people of every grade of rank and for 7
une, who invest their money in this way in i
hort, to make them easily ineligible to the only
)eople amongst whom there was any demand
or them. (See note at the end. Il
So much in reply to the charge that the Com Il
nissioners have caused loss to the Bank by :,
he change-of the face Of the bonds, (if indeed :;
British coin. The only remaining charge has I
low to be considered. 1t is this-that the in !
crest of the bonds from their date (June 9th,
1889 up to the respective periods when the in a
talments of money received for the bonds il
we're payable-amounting to @1S3, ,338-was o
ost to the bank and no equivalent ever receiv-l s.
ID: and that thus the bonds were not sold atI 1