672 [Assembly 



market'price is 9i per cent, premium at GO days — and if at sight, 

 besides the hazard of non-payment in these days of insolvency, it 

 is 10| per cent. In 1837, soon after the suspension of specie pay- 

 ments by our Banks, Exchange on London advanced to twenty-two 

 per cent, premium ; and the price of specie arose to fourteen per 

 cent. These sums, however, include the nominal rate of Exchange, 

 while the actual sacrifice to the debtor country, though variable is 

 generally about equivalent to the premium on specie, and the costs 

 of transmission.* 



•The annexed Table will show the prices of Bills of Exchange on Loudon at 60 

 days sight, also the premium on Spanish Dollars in the New York market, on the 1st 

 of January and the first of July in each year, from 1836 to 1847 inclusive ; by which 

 it will be seen that any person who might have preferred remitting in specie to risk- 

 ing Bills of Exchange, would have been subject to premiums averaging from 3 to 5 

 per cent. ; the Spanish Dollars so remitted being subject also to charges for freight, 

 time, insurance, &c., equal, at the present time, to 1 1-2 per cent, in addition. Be- 

 fore the introduction of steamers these charges were equal to2 l-2or 3 per cent. — be- 

 sides incurring the risk of the occasional fluctuation in the price of these SpaniskDol- 

 lars in the London market ; it being a well known fact that the price there of this 

 kind of specie has been frequently below their par in this country. Thus, to remit 

 in specie to London from New York, for the last ten or twelve years, cannot be es- 

 timated at a cost less than 5 to 8 per cent., or so much sacrifice to the dealer in this 

 country. 



With regard to the Par of Exchange, we quote McCulloch : — "The par of the 

 currency of any two countries means, among merchants, the equivalency of a cer- 

 tain amount of the currency of the one in the currency of the other, supposing the 

 currencies of both to be of the precise weight and purity fixed by their respective 

 mints " Thus, it is apparent, that in Exchange between two countries, the nominal 

 and real values must always be computed. 



Rates of Exchange on London, and prices of Spanish Dollars, in the New York- 

 market, for a series of years — Bills of Exchange on London being drawn at 60 days 

 sight. 



Dates. Exchange on London. Spanish Dollars. 



Jan. 1,1836 8 1-2 per cent. prem. 3 per cent.prem. 



July 1, " 7 1-2 " 3 1-2 



Jan 1,1837 8 " 4 " 



July 1, " 22 " 14 " 



Jan. 1, 1838 10 1-2 '• 5 



July 1, " 8 " 3 " 



Jan. 1, 1839 9 1-2 •' 5 



July 1, " 9 " 4 " 



Jan. 1, 1840 8 " 5 " 



July 1, " 7 1-2 " 2 " 



Jan. 1, 1841 8 12 " 6 



July 1 " 8 " 3 



Jan. 1, 1842 9 " 5 



