The Principles of Currency and Exchange

This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1805 edition. Excerpt: ... CA176E OF THE HIGH HATES OP EXCHANGE. The object of the appointment of the Committee being the attainment of some efficient remedy for the unusual high rates of exchange between Dublin and London, the investigation of the cause of them has necessarily occupied a considerable portion of their attention. The persons examined are all perfectly conversant in the practice of exchange dealings, and have acquired very great estimation for their knowledge as experienced and enlightened merchants. The questions which were proposed carry with them evident marks of great knowledge in commercial polity, and of the impartial and unbiassed manner in which the proceedings of the Committee were conducted. It remains to examine how far the answers which were made contribute to unfold the true cause of the high rates of exchange. Hie opinions, contained in the evidence, may be ranged under two heads. The one formed on the supposition that there is a debt annually incurred by Ireland, to be paid to England, by an unfavourable balance of trade, remittances to absentees, and interest on loans. The other under the conviction that no such debt exists, and that even if it did, an excessive issue of paper could alone cause such high rates of exchange. The solution of the question, therefore, respecting the cause of these rates, depends upon this one fact, whether or no the balance of trade and remittances is in favour of or against Ireland. Eight of the gentlemen have given it as their opinion, that the balance is against Ireland, and that it is the cause of the advance in the rates of exchange. Mr. Burrowes, Mr. Puget. " I should suppose the rise in exchange arose from thei balance debt being in favour of England."--Evidence, p. 2. x Mr. Harman. " The cause of...