As money, the legislature can fix a value on gold and silver in some cases, and in others they cannot: they can fix a proportion between silver as metal, and silver as money; between the several metals made use of to pass as money, establishing the weight and standard of each denomination, and assigning to it that ideal value by which it is made current.

On the reverse, if we compare the money of one country with that of another, it receives a new value, which is fixed by the current course of commerce, and the general opinion of merchants, but never by the laws of any particular nation; because it is liable to incessant variations, and depends on the accidental circumstances of trade, the money transactions between nations, and the state of their public credit.

The mutability of the course of exchange is not real, but relative: For instance, when Boston has greater occasion for funds in Norfolk, than NORFOLK has in BOSTON, though the specie of both places be the same, as to currency and standard, yet, when there is not a fund of credit at NORFOLK equal to the debit, the price of bills, not of money, will rise of course at BOSTON.

To set this in a more particular point of view, let us consider that, if our purchases in foreign countries balance their purchases in ours, there will be enough of bills in the one to settle accounts with the other, and the exchange will be at par; but if a nation supplies us with more than it purchases, there will be a balance against us, to discharge which the money, or bills of exchange on that nation, rises above par, and puts ours below it, which constitutes the course of exchange:

From which we may naturally infer,

1st. That the course of exchange between two nations is a herald, that publicly proclaims the state of commerce between them, and which of the two is indebted to the other.

2nd. The nation which is indebted has the disadvantage, both in commerce and money negociations.

3rd. That the balance of trade naturally imports specie, and renders money at home more valuable abroad. On the reverse, when the balance is against a nation, their specie is exported, and becomes thereby of less value.

A BILL OF EXCHANGE is a written order delivered in one place for value received there, (according to the rate of exchange agreed on) for the like value to be paid to the holder of the bill in the place on which it is drawn.

PAR, in exchange, is the supposed equality between the monies of one country and that of another that is, when the money received for a bill of exchange is equal in value to the money paid for it, then the exchange is at par.

THE COURSE OF EXCHANGE, being variable, may be defined the fluctuation of par, because it depends on the particular demands

of merchants for bills on the place to which the balance is due: and likewise, that the money paid for a bill of exchange is esteemed equivalent to the sum expressed on the face of the bill:Consequently, bills of exchange are a kind of merchandize that rise and fall in price, in proportion to the demand for them.

USANCE is a particular time specified for the payment of a bill of exchange after acceptance, being in some places 30 days, in others 60 or 90.

Domestic Exchange.

THE reciprocal exchanges of the U. S. are for dollars and cents; yet, as many affect to keep their accounts (both foreign and domestic) in currency, we give the following proportionate scale, which serves to change the currency of any one state into that of all the others.

The value of the Federal Dollar, estimated in the currency of the different states, is as follows:

New-York,

North-Carolina.

South-Carolina,

Georgia.

Theor. Subtract, or ×4÷6

Add or x16÷15

} Multiply by 28, divide by 45.

To change the currency of the states of South-Carolina and Georgia,

Into the currency of the states of

Or to the currency of South-Carolina or Georgia

EXAMPLES.

1. Given₤112 10s. Virginia and states of New-England currency, to be changed into that of

New-York and
North-Carolina.

Pennsylvania,

Maryland,
Delaware, &c.

South-Carolina,

Georgia.

}

Ans. £150.

Ans. £140 12 6.

2. Given £150, New-York and North-Carolina currency, to be changed into that of

3. Given-£140 12s. 6d. Pennsylvania, Delaware, and Maryland currency, to be changed into that of

4. Given-£87 10s. South-Carolina and Georgia currency, to be changed into that of

New-Hampshire,

Virginia,

Kentucky, &c.

New-York,

North-Carolina.

Pennsylvania,

Delaware,

Maryland.

Exchange with Great-Britain.

THE BANK OF ENGLAND was incorporated by charter in the reign of William and Mary, and is under the direction of a governor, deputy-governor, and 24 directors, who are chosen annually.

By their charter they are not to trade, nor suffer any person in trust for them, to trade in any merchandize, but they may buy or sell bills of exchange, bullion, foreign gold and silver coins, &c.

BANK STOCK is personal, not real estate: therefore, no contract, either in word or writing, can be good in law, for buying or selling bank stock, unless it be registered in the books of the bank in the space of seven, and the stock transferred in fourteen days after the contract.

It is felony to counterfeit the seal of the Bank, or any sealed bank

bill or note.

This company is said to have upwards of twelve millions sterling of paper in circulation!

In Great-Britain they keep their accounts in currency, or pounds, shillings and pence.

4 farthings make 1 penny.

12 pence

1 shilling.

20 shillings 1 pound, or £, which is imaginary.

The real coins of Great-Britain are

Guineas of (gold) 21 shillings.

Quarter-guineas

Half-guineas

Crowns (silver)

Half-crowns

Shillings of 12 pence, sixpences, and pence.

The standard for the gold coin of Great-Britain is 22 parts of pure gold, and 2 parts of alloy (copper). From a pound Troy of this mixture, they coin 44 guineas; therefore, the guinea should weigh 5 dwts. 93 grs.; but allowance being necessary for wear in circulation, an act was passed by government, establishing the current wt. at 5 dwts. 8 grs. and the half-guinea at 2 dwts. 16 grs.

The standard for silver coin, is 11 oz. 2 dwts. fine silver, and 18 dwts. of alloy; a pound of this mixture is coined into 62 shillings. The crown of 5 shillings should weigh about 19 dwts. 8grs. and the shilling 3 dwts. 20 grs. nearly.*

*NOTE. The par between the U. States and Great-Britain, does not seem to be calculated or establised on the intrinsic value of the English coin. To prove which, let us make the following remarks: