242 
Exchange exchange of Liverpool takes the lead of both these cele- 
—\Y—" brated 
Exchange 
between dif- 
ferent coun- 
tries. 
Real ex- 
change. 
of mercantile resort, 2. the same manner 
What the diferent lic rooms of Liverpool are superi- 
ar to those of sy ete city in Britain, The hours of 
meeting on " have, like our hours of dining, ex- 
perienced a ble alteration in the course of the 
present age ; and,  noctrithaneadtins the endeavours made 
in London to enforce adherence to established rules, by 
shutting, at a given hour, all the gates except one, it 
has become more and more fashionable to protract the 
transactions of reer ond aie o'clock, so that it 
is now generally near five before e Exchange is com- 
pletely cleared. 
II. Exchange, taken in the sense of paying or re- 
ceiving money between two countries, forms one of the 
most complicated subjects of political economy. ‘The 
discrepancies ‘of public opinion, in this respect, have 
been strongly exemplified by the recent discussions on 
the bullion question. All ies were in re- 
ogy hades to the practical point of the fall of exchange, but 
and the manner of its taking place are, to this 
day, subjects of doubt to many persons, possessed, in 
other respects, of considerable information. The bul- 
lionists contend that the fall was owing to the excess 
and consequent de: so of our pa currency ; 
while the mercantile body maintain that it arose from 
‘the de of our foreign expenditure, and the un- 
fav: le balance of our le with the continent. 
Under the head ing ae we have ‘taken occasion to 
state, that the poin pe omrpeladty tard cetine whan ont 
but more one seo the commercial advocate. That 
our.paper currency undergone a partial deprecia- 
fiom! to ¢ the extent of two or Prox per cent. pig di 
be doubted, on comparing our tables of the prices of 
gold and silver, since- the year 1800; for at no time 
since that period, have bait notes been within three 
per cent. of the value of silver. On the other hand, 
the enormous fall of the continental exchange since 
1808, is to be attributed much more to secnacad and 
Pe causes, than to over issues of. currency. 
he stoppage of the American trade to ‘continent 
of Eu always appeared to us the fundamental 
root of the evil. It deprived us at once of a remittance 
of four or five millions a year, which came over in 
_weekly packets, in portions of L. 50,000 or L. 100,000, 
with as much regularity as the letters which passed by 
ngs gis: War beet bat bo Sra sh 
1s most egg i °8 y, until it was 
-dient to lay, b pe 4h in council dan betas 
the commerci intercourse between the United States 
and Europe. I pened unluckily, that soon after 
trying this un ented experiment, 
ment of the war in Spain called for. é sup- 
plies from this ‘country. The absence of American 
traders making it necessary for us to effect our remit- 
tances in specie, we were speedily stri et of our bul- 
Tion ; and our deficient crop in 1809, ob us to im- 
port ‘large quantities of corn, led, in the cad instance, 
to a deprivation of our current com, =" 
The bullion question might have been much simpli- 
fied, had its the piece ee it been 
familiar with rinciples of exchan These will 
be most easily comprahatiied: by dividing exchange 
into three heads, real, nominal, and computed. 
Real exchange. —By this head is meant a reference 
to actual value, without taking any account of the appa- 
rent difference arising from the variety in the m 
denominations of different connie,” Ths exchange 
from one city to another in the same ki 
Glasgow'to London; for example, is atehaent sen. sims 
the commence- hav 
EXCHANGE. 
ple. An allowance of interest for 30, 40, or 45 days, ono] 
is ted in consideration of th oo father dilntehee eat 
ney is the metropolis ; and no farther 
ists, as the currency of the two cities is 
striking cat aete this rf the ra ae Teaonge to 
same manner, 
Hctantim “neces- 
a 
of exchange, thn iene he pl 
the ammie fen place fr thon of ance 3 and 
merchants have no interest in in an ie 
an higparge in the value of Equality” 
eh d exports leads to penta equality 
bts and credits, and mote Gstog thas of hee tab 
value in one as in another, the course of exchange 
is consequently at BS st a8 not un ony 
howeyer, that clreumstan Scour valicien sen 
in their : jon, to unsettle this the 
things. A deficient eg in one 
im of corn the amount w: 
veniently be balanced b eosin and 
the alana a. Serene ef the coun 
has sold the corn, In that country, money become: 
eho Sp in the debtor country, 
biect of the latter is to 
thither, in order either to procure 
to discharge the debt sis ae 
the Gost apenas 2 Ate in 
, the chief expence of aby bar 
Insurance the Ff o€ which yt tine of war, ne- 
vg dark mda of capture. In some 
aeig' iene: nae F ndentiphosacinns ® a3 
eoerts aed tn ge of specie, create an 
burden on the traffic. Such ibitions are so inef- 
reautens 
The stock of coin ina astiouti' tial bilgi 
‘more than pe parne for an sear oe of 
‘business, it seldom ns that mu it 
abroad.’ Bullion is ° the more a 
source; and the want ef bullion leads : 
purchase of it 
theo ie ee ar tecnto te tole ae, 
Sy i aha ad obtained for the sale of his. 
a 
