x-792. cn the balance of tradcy tind exchanges. 95 



denomination of money ; if they did not, one of them 

 only must come to be this universal standard. 

 - Wiii'iout the" use of bills of exchange^ there could 

 not exist a balance of trade, even although the esta- 

 blifhinent of moficy^ as above mentioned, fliould have 

 taken place ; because, there must, when goods are ex- 

 ported from a country, be goods imported to the same 

 amount to repay them. It being to be observed that 

 money must be considered, with regard to importa- 

 tion and exportation, entirely in the same-iight as any 

 other commodity J for it matters not to a nation whether 

 the property it pof^efses consist in this, or any other 

 article of equal utility. 



The rate of exchange is the only medium by which 

 the state of the balance of trade can be afcertained, 

 and it is infallible, unlefs as above specified. 



The rate of exchange is the price at which bills 

 drawn by one nation on another sell ; for instance, if a 

 bill be drawn in London on Paris for i ecu^ and is 

 sold in London for is 9d Sterling, the rate of exchange 

 is 1 s pd per ecu. 



It is by comparing this rate of exchange with the 

 quantity of gold and silver contained in the respective 

 monies of the two nations, that the state of the balance 

 of trade can be ascertained ; for example, if a French 

 rru contain as much silver as in Britain could be coin- 

 ■ d into two (hillings and four-pence Sterling ; and that 

 It is, by the rate of exchange, sold for only one fhil- 

 ng and nine-pence; tlie value of the exports from 

 -'ritaini to France exceed that of the imports to Bri- 

 lain frci:i France, as much in proportion as two 



