1,7.92. tn the h»laiKe of tradcy and exchanges . 97 



britain, because, in that case the amount of their ex- 

 ports would have exceeded the amount of their imports 

 in as much as the twenty-one pence, being the value 

 of the goods exported, exceeded in value the three 

 livres, being the amount of the goods imported, and 

 ' vice versa. 



I need not enlarge on the effects that would take 

 place if the exports from the one place to the other 

 were greater, or lefs in proportion to the imports, 

 nor on the causes that would induce a holder of a bill, 

 such as A. to accept, or refuse of the price offered to 

 him by a purchaser, such as D ; nor (hall I take notice 

 of the reasons of the person on whom the bill was 

 drawn, such as B. being willing or not that it fliould 

 be drawn to the amount specified in my example, or 

 any other, as the reflecting reader will see that the 

 rate of exchange is, primarily, occasioned by the 

 quantity of exports and imports ; and secondarily, that 

 the rate of exchange, like the price of goods, will, in 

 some degree, affect the extent of these exports and 

 imports. 



Before I conclude this article, allow me to observe 

 with what beautiful simplicity nature hath provided a 

 sure and certain remedy for every excefs of this 

 kind, without the interference of magistrates or legis- 

 lators. Whenever the exchange becomes great againtt 

 any one nation, it induces that nation, in whose favour 

 the exchange is, to buy as much of the produce, or 

 manufactures of the other as it can ;' because the pur- 

 chaser has the advantage of the whole amount of the 

 exchange in his favour. In like manner, and fronu 

 the same cause, the nation against whom the course 

 VOL. vii. t N 



