Reply to Mr. Bosanquet's Practical observations ... - University Library

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gold can be made productive of interest to tlie
owner. In comparing, therefore, the value of
the currency of one country with the value
of bulhon in another, we must not leave out of
our consideration the trifling superior value
which coin bears above bullion in the importing
country. Thus, if a merchant in Hamburgh
were indebted I/,
sterling to a merchant in England,
and should export to England as much silver
as would purchase the quantity of gold contained
in ]/., he would not be able to discharge
his debt till the gold were manufactured into
coin. In addition, then, to his other expences,
the interest which he would have to pay to his
creditor till the coin was returned to him
would enter into his calculation at the time that
he was making a comparison of the advantages
which would attend either the purchase of a bill,
or the remittance of bullion.
This loss of interest the Bullion Committee
have estimated at one per cent.
If these principles are
correct, there must be
deducted from the favourable Hamburgh exchanges
of Mr. Mushet's tables 1 per cent, more
than we have already stated when the bullion
is
wanted for our own coin, and from 2 to 3 per
cent, when it is required for re-exportation. It
is also necessary to observe, that the relative value