EXCHANGES.
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Drafts Bills Of Exchange, Orders and Checks their
nature and neary and the thing They all
evidence that the holder authorized receive money
credit discharge from debt, from the account
Of another.


much stuff has been uttered by the spectators
their dupes relation E1change and its regulation -
that many people have become perfectly bewIdered con-
cernng both Talk TO Of about regulating or
ders checks promssory notes. and he would laugh at
you if the drawer the drawee good they need
regulation" Bills Of Exchange need IT as little.


Exchange operations described by Gouge follows -
a merchant at Paris sending goods 10 Alslce and wishing
money for Them might be forced wait till the goods could
be Sold and the brought from Asace If he could not
dispose Of bill Of Exchange In like manner, msnufac-
turer at Asace sending goods Paris might be forced
wait for payment till money could be brought from Paris.
Here would be two sums Of money passing in opposite d-
recons Suppong whole trade of France be carried
this the amount Of money continually on the road
would be equal the whole value o goods passage The
Of money annually transferred from country
or place to another would be equal TO the whole amour, Of
trade between different countries places except the
business of and exporting carried by the
merchant But by the OF bills of exchange
ders drawn upon the oter the merchant
the for which the manufacturers goods sold
Paris and the manufacturer receives the money for which
the merchants goods sold Alsace In this way,
becomes necessary to transfer from place country
another such only equivalent the balances Of
trade


These bills orders may course be Transferred by one
another, convenience may require. They are
easily transported than specie and they better than
Bank paper for various


Exchange will be above below par the place where
SOd according the balance Of trade may be in ayOrof
against place If for instance the merchants in New
York largely indebted to merchants for produce,
the Of orders to be drawn by the latter uIon for
would make exchange plentiful and it would command
but A Sma 4 any Rut # he
merchants indebted to those Il New York. few orders
could be drawn, and they would command premium
responding to the demand for them That premium ho,rerey
irhHe cash currency eristed erceed the
per cent chioh uod 10 transport specie The
place here The bin i exchange payable But the whole
subject has become much mysthed by the tickery Of
bankers and speculsors that this important fact to be
almost entirely forgotten


Bear the fact mind and let how much per cent.
II would cost 10 transport specie by wdgonS Team
know well that dollar per 100 pounds for 100 miles
will pay profit though perhaps too much. One per
cent would he 10 cents per pound 10 dollars fr
hundred pounds. At cent. then, specie might be
transported 1000 miles per 100 pounds.


Why then bills Of Exchange New York premi-
here of 10 per cent. They fact though
they nominally Cash specie will command
change at this moment probably pei premium
perhaps less and only when bought with non-spece-
paying deprecated Tape that the premium Is 10 per
because the discount The suspended paper added
in the shape Of premium upon the exchange


We will suppose that Of merchants wishes 20
east, New York, for instance 10 purchase goods Ills bu
here brings him nothing but Indiana Funds These
funds will pay the merchant hom whom he purchases,
unless at a runous loss. Why Because Indiana Bank
Notes are great discount consequence Of su>pcn-
lie applies the Bank and asks, what do you
fog bill Of exchange New York Eghi per can't
afford that he replies Just give the specie for your
you promised can transport that New York
one per cent; But the Bank refuses re-
deem promises and the merchant has topay eight er
for his bill Of exchange


Thus the Bank which monoPoizes the buying and SELL
ng Of exchange, profits by its ascalty and actually
buys discount of or per Thus
also the Bank "deange exchanges for benefit and
will continue % do until forced TO do otherwise.


That this arrangement Of exchanges caused principally
by suspensions and the consequent depreciation Of the
paper currency proved also by the OF exchanges
different quarters The Bank, IN Boston New York. and
pay specie consequently their notes on
par with specie and exchanges between those places
ranges at from par per only. While at the same
time price Of exchanges Philadelphia and other plac-
es where the Banks state Of suspension range at
from p about 10 per cent according to the depreciation
Of Bank notes in the several places.


The extraordinary premium and discount first levied up
on the merchant buys the exchange. But finally he
does not suffer the He adds the price Of his goods
and thus gets il out people who purchase them. The
Bank thus eeces people through its instrument the
chant


The conclusion must strike every unsophstcated
that nothing tend the regulation Of the price OF
exchanges than currency which is uniform. To secure
and maintain this uniformity, Banks pay specie for
their notes national bank could only aid regulating
exchanges by forcing local banks 10 payment by
annihatng them the local banks be forced
sumo OF be destroyed without the assistance Of
bank and this by the due enforcement Of the laws.


By this course shall avoid the risk Of the maadmnis-
raton Of great central and concentrated money power
which always has been and Of law