ABSTRACT
In this chapter, Your Committee first states the opinions which they have received from practical men, respecting the causes of the present state of the Exchange. Your Committee conceive that there is no point of trade, considered politically, which is better settled, than the subject of Foreign Exchanges. The PAR of Exchange between two Countries is that sum of the currency of either of the two, which, in point of intrinsic value, is precisely equal to a given sum of the currency of the other; that is, contains precisely an equal weight of Gold or Silver of the same fineness. A favourable balance of trade on the face of the Account of Exports and Imports, presented annually to Parliament, is a very probable consequence of large drafts on Government for foreign expenditure; an augmentation of exports, and a diminution of imports, being promoted and even enforced by the means of such drafts.
