II. The Exports and Imports in any Colony, may be managed by
different Hands, and the Number of those chiefly imployed in the
latter may greatly exceed the Number of those imployed in the former.
Hence it is evident there may sometimes be many Buyers and few
Sellers of Bills of Exchange, even whilst the Exports may exceed in
Value the Imports: And it is easy to conceive, that in this Case,
Exchange may rise.
III. The _British_ Merchants, who trade to the Colonies, are
often unacquainted with the Advantages that may be made by building
of Ships there, or by the Commodities of those Colonies carried to
the _West-Indies_, or to Foreign Markets: And for that Reason,
frequently order all their Remittances in Bills of Exchange, tho'
less advantageous; which must encrease the Demand for Bills, and
enhance the Price of them.
IV. A great Demand in _Europe_ for any of the Commodities of
the Colonies, and large Orders for those Commodities from the
_British_ Merchants to their Factors here, with Directions to draw
for the Value, may occasion Exchange to fall for a Time, even tho'
the Imports should be greater than the Exports.
V. Hence it appears, that a sudden great Demand for Bills in
the Colonies, may, at any time, advance the Exchange; and a sudden
great Demand abroad for their Commodities may fall the Exchange.
VI. Gold and Silver will always rise and fall, very near in
Proportion as Exchange rises and falls; being only wanted, in those
Colonies that have a Paper Currency, for the same Use as Bills of
Exchange, _viz.
Pages:
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279