Wheeling daily intelligencer. [volume] (Wheeling, Va. [W. Va.]) 1852-1859, 1856-02-22
s,rER1IN1i EXCHANGES.

We have been frequently requested (says the
Boston Post) to republish an article compiled
with care and trouble for this paper come years
ago. 1t gave hereason why sterling exchange
is said tosbe at a premium of eight, nine, or ten
percent, as the case may be, when it is really
at par or a little above or below. Our extra
copy of the article is lost, and we have not found
time or opportunity to turn back to eur fels.
But we may give the gist Of it in few para
graphs:
"When the first Spanish dollars became
known in England itrequired jour and Jorty-2ae
huHdretltRs only of these dollars to make
pound sterling. according to then value of silver
and gold Since that time the relative value of
the two metals has been slightly altered; but,
what is Of more importance in this matter, nei-
Their the Spanish dollar of more recent date nor
the American dollar of any date contains nearly
10 mach siBreP as was contained in the early dol
lars coined by Spain. The changes in the guam
tity of pure silver in the different Governments
have been numerous; but the essential result is.
that including the minor changes in the relative
value ofgold and silver, it now requires four
and eighty.IoWF ono hIadredthsof the present
dollars-American, Mexican, or Spanish-to be
worth one pound sterling in Liverpool. And
as curing Tue last Two CENTURIES TIC dStudl va
ues Tin silyer) of the dollar varied from time to
time, while the pound sterling Gin gold( was al
most Interchangeable, it became convenient in
England to quote foreign exchange 'at an adj
vance when it began to take more Of these de-
based or dimiAisAed dollars 10 make q pound
sterling In other words, the English very prop
erly took their Interchangeable pound sterling as q
unit and measured the changeable dollars by it.
The practice begun long before money was com
ed in the United States, WAS continued when
this country adopted ESSENTIALLY the Spanish dol
lar for its unit or coinage. It prevails, as is
well known to this day, but its origin is gener-
ally understood. 1t is simply the English idea
of the present valued dollars, as compared with
q par that was the true only a century or two
ago. Should our dollars become so debased at
some future time that tire would be required TO
make pound sterling, it is obvious that the real
par of sterling exchange, instead of standing at
nine per cent premium or thereaboutS as at
present quoted, would be called twelve and a
half per cent premium; and it is equally obvi-
onS that if the silver incur dollars were increas-
ed to the quantity found in the early spanish
dollars, it would require but four and roFty:Jour
one huNdre.ttdS to make pound sterling Thus
sterling exchange would be quoted at par, and
the real and nominal par wouldagain correspond
as in former times. Those interested in the de-
tails OF the SUBJECT are referred TO the elaborate
Congressional reports of 1884, that resulted in
an alteration ofour own gold Soinage. The pres
entmannerof quoting sterling exchange has long
custom in its favor. Upon the whole, we can
see no better way of stating it that shall be rec
ognized and understood both here and in Europe.
Were the American idea to prevail, it would be
easy and correct, of conrse to say that the ster-
ling exchange was at par, instead of nine per
cent. in advance. But, after so long use of the
old system, the prevalence of the American view
on both sides of the Atlantic is hardly to be sx-
pected; and the present mode is, perhaps, rs
generally Ineligible and easy of reckoning as
that employedin calculating French exchange
the only other mode that suggests itself likely
to be employed both here and in Europe, if the
present system were abolished"