EXCHANGE. 



into erroneous opinions from the mere ap- 

 pearances of thing's. In the year 1812, 

 the nominal exchange in Philadelphia 

 upon London was as low as 25 per cent, 

 below par; and in 1815, as high as 20 per 

 cent, above par. The cause of it was, 

 that, in the former case, the currency of 

 America was sound, whilst that of Lon- 

 don was greatly depreciated ; and in the 

 latter case, the currency of Philadelphia, 

 fey the stoppage of specie payments by 

 the banks, was depreciated vastly below 

 that of London. From an examination 

 into this subject, and from comparing the 

 relative value of paper money, in both 

 countries, with the standard, and also 

 taking the rate of exchange upon London 

 at Boston, where the currency continued 

 sound, it resulted, that, during the whole 

 of this period of nominal fluctuation, the 

 real exchange at no time was higher or 

 lower than the expenses, &.c. of transmit- 

 ting bullion. 



It very often happens that bill pay- 

 ments take place by indirect channels. A 

 Bristol merchant, purchasing grain in 

 Holland, makes the Dutch merchant reim- 

 burse himself by drawing on a mercan- 

 tile house in London or Amsterdam ; or if 

 the Dutch merchant draw on the Bristol 

 merchant himself, he makes it a condi- 

 tion that the bill shall be accepted pay- 

 able in London. The object of this is to 

 give an easy currency in negociation to 

 the bill. The Dutch merchant sells his 

 bill on the Amsterdam exchange; where, 

 for one man who wishes to buy a bill on 

 Bristol, he will find twenty who wish to 

 purchase on London. Hence, the ten- 

 dency of all exchange transactions to 

 certain central points. That point is al- 

 ways the principal trading city in the 

 country. Throughout Great Britain, a 

 bill on London is preferred to a bill on 

 any other place ; and what London is to 

 this country, Amsterdam, in its better 

 days, was to Europe. 



Every country town in Great Britain is 

 said to have its par of exchange on Lon- 

 don. By this is meant the term or num- 

 ber of days at which the country bank 

 will give a bill on London in exchange 

 for cash. This term is greater or less, 

 according to the distance from London. 

 In Bristol it is twenty-five days, in Liver- 

 pool thirty, in Glasgow forty-five, and in 

 the more remote parts of Scotland fifty 

 days. 



It is important to know, that a very 

 small matter will amount to an accept- 

 ance. If the person upon whom a bill 

 is drawn say, verbally, that he will accept 



the bill, he is not at liberty afterwards to 

 change his mind ; or if his clerk say that 

 the bill will be accepted, it is an accept- 

 ance. But the most usual mode of ac- 

 ceptance is, for the acceptor to put his 

 name upon the face of the bill, accompa- 

 nied by the date of presentment, when_ 

 the bill is payable at such a period after 

 sight. The validity of an acceptance, 

 however, being founded in different 

 countries upon the custom of merchants, 

 reference must be had to them fora mi- 

 nute detail. 



EXCHA* GE signifies also a place in most 

 considerable trading cities, wherein the 

 merchants, negociants, agents, bankers, 

 brokers, interpreters, and other persons 

 concerned in commerce, meet on certain 

 days, and at certain times thereof, to con- 

 fer and treat together of matters relating 

 to exchanges, remittances, payments, ad- 

 ventures, assurances, freightments, and 

 other mercantile negociations, both by 

 sea and land. 



These assemblies are, in some coun- 

 tries, held with so much exactness, that 

 the aosence of a merchant, &c. makes him 

 suspected of drawing to a failure of 

 bankruptcy, as not being able to stand 

 the change. 



The most considerable exchanges in 

 Europe are, those of Amsterdam, and 

 that of London, called the Royal Ex- 

 change. See ROYAL EXCHANGE. 



Table of the Par of Exchange between 

 the United States and Foreign Coun- 

 tries, in 1817. 



Dolls. ts. 



Pound Sterling of Great Britain 4 44 



Ireland . . 4 10 



Livre Tournois of France . . 18| 



Franc of France 19 



Guilder or Florin of United 



Netherlands 



Mark Banco of Hamburgh . . 33| 

 Rix Dollar of Denmark and 



Sweden . 1 00 



Mill Rea of Portugal .... 1 24 



A Johannes 16 00 



A Doubloon . f .... 14 93* 



An English Guinea .... 4 66^ 



A Ruble of Russia .... 66 



A Dollar of Spain .... 1 00 



Rial Plate of Spain .... 10 



Pagoda of India 1 94 



Tale of China 1 48 



Rupee of Bengal 55 



