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Doc. 174.] 497
ON THE RISE OF EXCHANGE.
a change in the parties [and we may add by the influence
of Swedenborg, who took strong ground against him] he lost
his great power, and the Deputation finally passed a resolution,
which differed very much from Nordencrantz’s views.”]
It is well -known that, from time immemorial, the course
of exchange in Sweden has been on a par with the coin which
has been in current use, and that such also has been the case
in all other countries; whence it may be concluded that coin
alone regulates exchange. It may be seen clearly also from
this consideration, that no merchant is willing to hand over
his current coin, whether this be gold, silver, or copper, for
bills of exchange which stand higher than the actual market
price of the money itself: inasmuch as he knows that the coin
itself is worth more to him in Holland, England, or Hamburg,
where payments are to be made, than is offered to him by the
person issuing these bills of exchange. Whence it also has
happened, and it happens daily everywhere, that as soon as
exchange is above par, or above the real value of the current
coin, silver is sent out in order to restore the balance, by
which the course of exchange is raised. The same has also
happened in Sweden at all times, even since our copper currency,
which consists of plates, has been introduced; for the effect
of our plate currency which corresponds to the increased value
of silver amongst us, has been to keep exchange at the same
value, with the difference of only a mark or a mark and a half
below or above par, which has been caused by the difficulty or in
convenience of exporting our copper-coin, and trafficking, and
afterwards paying with it. It hence appears very plainly that the
intrinsic value of our current coin itself has kept exchange at its
own value, and regulated its price, and also that in later times,
as within the last 20 years, the rise of exchange from its
par value, which was 35 marks, first to 40, afterwards to 50,
and finally to 60 and 66 marks has been caused by paper which
represents money, and yet is not money, becoming the medium
of currency instead of coin. The exchange has thus lost its
former basis, and has found a new one , which now rests
principally upon iron, without mentioning the other products,
as brass, alum, tar, masts, boards, etc. These products,
as a basis of exchange, however, have by no means the same
32
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