Considerations on the State of the Colonial Currency and Foreign Exchanges at the Cape of Good Hope; Comprehending Also Some Statements Relative to ... Commerce, and Statistics of the Colony - Softcover

Inhaltsangabe

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1825. Excerpt: ... SECTION III. THE doctrines of Exchange and Currency are very intimately connected with one another; and though it be easy to state the principles of each, examined separately, yet when viewed conjointly it is very difficult to arrive at conclusions to which many forcible objections may not be brought forward. It is proper, however, to state, in as brief a manner as possible, the principles which regulate the course of exchange between two countries. When it so happens that the amount for which bills are drawn, is the same with that for which bills are wanted; in other words, when the amount due to those who have money to receive abroad, is equal to the amount due by those who have money to pay, the amount of bills to be bought, and the amount to be sold, will be exactly the same: for each man, desirous to purchase a bill on England, there will be another man, equally desirous to sell one: there will be neither premium, therefore, on the one side, nor discount on the other; the bills, or, in the language of the merchants, the exchange, will be at par. When it happens, however, that the debts and credits are not equal; that the Cape Colony, for example, has more money to pay than it has to receive; in other words, has imported to a greater amount than it has exported, there are more persons who want to purchase bills on England, than there are persons to sell them. Those who cannot obtain bills to discharge their debts in England, must send metals. That, however, is an operation attended with a considerable cost. There is therefore a competition for bills; and the merchants give for them rather more than they are worth. A bill, for example, drawn on England, for 1,000/. (the 1,000/. being by supposition equal to 5,000 Rds.) will be willingly purchased for s...

Die Inhaltsangabe kann sich auf eine andere Ausgabe dieses Titels beziehen.