nation coming from the place of a planet in its orbit, falls thereon with right angles. EXCENTRICITY, in astronomy, is the distance of the centre of the orbit of a planet from the centre of the sun, that is, the distance between the centre of the ellipsis and the focus. See ASTRONOMY table. EXCEPTION to evidence, at common law, is the same as a bill of exceptions, which is a formal exception made in writing, to be signed by the judge, when any evidence is improperly refused or received, and is a record of such matter, which the judge is afterwards called upon to acknowledge in court, and then being made part of the record, it is argued in the same manner as any other point of error appearing upon the record. This proceeding is founded on the Stat. of Westminster, 2. EXCEPTION, in law, is a clause whereby the party contracting, excepts, or takes a particular thing out of a general thing granted or conveyed, and it must be something which is not inseparable from it. It must not be the whole thing granted, but part thereof only, and must be conformable, and not repugnant, to the grant, for then the exception is void. It must also be described with certainty. EXCHANGE, in political economy. The reciprocal payments of merchants are made in bills of exchange, the amount of which is expressed in the money of the country upon which they are drawn. In calculating the par of exchange, the coin of different countries is supposed to contain that quantity of gold or silver, of a determinate purity, which, agreeably to the regulations of their respective mints, it ought to contain. Thus an English guinea is supposed to contain lb. troy of gold; and a shilling lb. of silver, each of a certain degree of fine ness. When a bill of exchange upon Lisbon can be procured in London for the same weight of gold or silver which the sum of Portuguese money for which it is drawn is supposed to contain, exchange between London and Lisbon is said to be at par; when it can be procured for less, exchange is said to be below par, or in favour of London; when more must be given, exchange is said to be above par, or against London. The value of all the bills of exchange which the merchants of London can draw upon the merchants of any other place, must in general be regulated by the value of the consignments which they have made to that place, and consequently the course of exchange affords an indication of the state of the trade between different countries. When bills upon Lisbon, for instance, are scarce in London, and exchange consequently above par, it is a sign that London owes more to Lisbon, than Lisbon to London; and the reverse is a sign of the contrary. But there are other circumstances by which the course of exchange is very mate rially affected. Should the circulating coin of any country, v. g. be considerably debased, and its real value, the quantity of gold or silver which it really contains be much less than its nominal value, exchange may appear to be against a country, while actually it is in favour of it. Before the reformation of our silver coinage in the reign of William III. we are informed by Dr. Smith, the exchange between England and Holland computed by the standard of their respective mints, was 25 per cent. against England; but the current coin of England was at that time rather more than 25 per cent. below its standard value, and consequently exchange was really in favour of England. The issue of assignats during the revolution, depreciated the currency of France in a greater degree than was ever known in any other instance, and accordingly the exchange between London and Paris became between 60 and 70 per cent. against the latter place. An unfavourable state of the exchange with any country furnishes a motive for exporting commodities to it. The merchant under these circumstances can afford to sell his commodities as much cheaper as the premium which he is obliged to pay for a bill of exchange amounts to. Hence the course of exchange always tends to an equilibrium. Indeed it can never really exceed the expense of sending gold or silver bullion to the place upon which the bill is drawn ; since this is the money of the commercial world, and will every where be accepted in payment. Its apparent rise above this expense is to be ascribed to a depreciation of the currency or some similar cause. We shall now enter more into the practical part of exchange. In treating this subject, we shall first give an idea of the nature of exchanges; in the second place we propose explaining the peculiar terms in use among merchants relative to bills; and, thirdly, we shall give examples of exchange with the principal countries in commercial intercourse with Great Britain. In transactions between a buyer and seller, both residing in the same place, it is obvious that the mode of payment is extremely simple. It takes place either in cash or by bill, and is attended with no intricacy of computation. Transactions between two towns in the same country are almost equally easy. Payment in cash is out of the question, but the seller either draws on the buyer a bill payable at the residence of the buyer, or if this residence is not a town of extensive trade, the buyer domiciles his acceptance at a place of this description; that is, he makes it payable there. The simplicity of this process arises from the money being of the same denomination in both places, and nearly of the same value. But in dealing with foreign countries, the calculation becomes less simple from the difference of denomina. tion; and although this causes no real difference in the value of money, yet obstacles exist to the conveyance of specie, which al most always prevent money from being of equal value in two different countries at the same time. Among merchants resident in different countries, bills serve nearly the same purpose as cash to the inhabitants of the same town. They are the current coin, by which the buyer in one country repays the seller in another; they pass like money from hand to hand; and this facility of circulation would always make money of nearly equal value in two countries, whose exchange of merchandize should be nearly equal. But it seldom happens that the exchange of merchandize is equal; there is almost always a balance on one side or the other; this balance must be paid in money; and money is consequently of greatest value on the spot where payment must take place. Hence the fluctuations of exchange. These fluctuations are greater or less according to the amount of the balance to be paid, and according to the expense and difficulty of conveying specie. By the expense of conveying specie is meant the carriage and insurance; by the difficulty, is meant the hazard of evading those prohibitory regulations, which in most countries impede its exportation. So powerful is the operation of these causes, that the exchange is often high, even between neighbouring countries; for instance, during 1793, the trade between Holland and England was completely open, insurance was low, and the voyage is known to be short, yet money was worth 10 or 12 per cent. more in England than in Holland; that is, a bill on London cost on the exchange of Amsterdam between 10 and 12 per cent. more than the intrinsic value of the money. This continued until the spring of 1794, when the King of Prussia having promised to act with vigour against the French, on condition of receiving a large subsidy, the remittance of a part of that subsidy through Amsterdam caused an immediate fall in the rate of exchange between England and Holland. At other periods of the war, it has been thought advisable that government should export specie rather than turn the course of exchange against us by the formidable operation of remitting a subsidy in bills. II. Having explained the origin of fluctuations in exchange, we shall next advert to the peculiar terms, used in bill transactions. Usance. This term, derived like many of our mercantile phrases from the Italian, (usanzia) means the customary period at which bills used to be drawn from one particular country on another. This period between Holland and England was a month. "At two usance pay to order of, &c." in such a bill means, "at two months after date pay to order, &c." Between England and Hamburgh, and between England and France, usance is also a month. Between England and Portugal or Spain, it is two months; and between England and Italy it is three months. Its length evidently increases with the distance of two countries from each other, and was regulated by the time formerly required for the conveyance of bills. In the American and West India trades, the phrase is not known, and the common term of a bill is sixty or ninety days after sight. The word usance continues to be employed only from conformity to ancient custom; for it has no signification which would not be equally well expressed by the more ge nerally intelligible phrase of months or days. Days of grace. It has been judged fit by the legislatures of different countries, to consider the acceptance of a bill of exchange as an engagement decidedly obligatory on the acceptor. If he fail in paying it, he not only loses his credit, but the holder of the bill may, in most countries, arrest either his person or his property. The policy of these enactments is to give free currency to bills of exchange, by satisfying the buyer or holder of a good bill that the obligation in his hands is almost as effectual as money. Having given so much power to the holder, it was thought advisable to extend some indulgence also to the acceptor. Accordingly days of grace were allowed him, that is, it was ordered that the holder should take no measures, and not even protest an acceptance until the expiration of certain days after the bill became due. In London three days of grace are allowed; in Amsterdam, six; in Hamburgh, twelve; in Dantzic, ten; in Copenhagen, eight; in Berlin, three; and a different term in almost every distinct mercantile city. The practice of giving days of grace is, now at least, of no real use; for every ac ceptor, knowing that he may avail himself of them, does not fail to do it, and it would be considered quite ridiculous in the holder of a bill to send it for payment before the end of the three days. So that when a bill is drawn at sixty days sight or date, the only effect of the days of grace is to make sixty, sixty-three. Protest. This is the notarial act which denotes that an irregularity has taken place in regard to the bill, either that it is not accepted, or that it is not paid. In some branches of trade it is customary, in cases of non-acceptance, not to extend, but only to note a protest. Noting a protest is said when a notary only records the irregularity; to extend a protest, implies that he has written out on a stamp a formal statement of that irregularity. In a case of non-acceptance, the protest gives the holder of course no power over the person on whom the bill is drawn, but it enables him in some countries to demand security from the person of whom he received it; in other countries, the holder can do little or nothing with a protest for non-acceptance; and in these cases he generally contents himself with noting a bill when acceptance is refused. In our West India trade, for example, it is much more customary merely to note bills for non-acceptance, than to extend the protest; for it is only in particular colonies (St. Vincent, for instance) that the holder can take prompt measures to oblige the drawer to find security to him for the amount of the bill: But on refusal of payment, a protest should always be extended; otherwise the holder would, by this omission, relieve every indorser on the bill from responsibility, and have no recourse, except on the drawer. If an accepted bill is refused payment, it is a proof that the acceptor is insolvent. The holder may either proceed against the acceptor, or he may send back the bill to the last indorser, or if there be no indorser, to the drawer. The drawer, or last indorser, as the case may be, is pledged to refund the amount immediately to the holder. This mode being generally the speediest means of reimbursement, the holder always prefers it when he can obtain payment by it; but in case of the insolvency of both drawer and acceptor, the holder retains the bill, and gets what he can from the estates of both. When the Bank of England finds that a merchant has suspended payment, their rule is to examine all the bills drawn upon him, which have been discounted by different persons at the Bank, and to send notice to these persons that the Bank expect the bills will be taken up and the money refunded. It is disreputable not to comply as early as possible with this intimation. In our West Indian colonies, the proceedings against insolvent persons are much more tedious than here. These colonies have hitherto been considered in a state of progressive advancement; the industry of the colonist, and the use he makes of borrowed capital, are deemed the means of this improvement; and it has been judged politic to protect him to a certain extent against his creditor. A man cannot in our West India colonies, as at home, be made a bankrupt; his property can be taken possession of by his creditors only after a process of considerable duration; and in the payment of the debts of an estate, a preference is regularly given to colonial claims. These laws proceed upon the belief that the profits on capital are rapid in these colonies, and that the best way for the public is to give such time to the debtor as may enable him to reap some gain before he is forced to refund the principal; or rather, the money when borrowed is sunk in land and stock, which can be productive only in time to the tenant, and his creditor, like himself, must be satisfied with a gradual return. A new æra, however, is now created in the history of the West Indies: the depreciation of their produce proves, that its culture is now sufficiently extended; and the abolition of the slave-trade will take away the means of further speculation. These colonies should therefore be now considered in nearly the same state as the mother country, as far as regards mercantile affairs. At present such is the uncer countries in commercial intercourse with Great Britain. In transactions between a buyer and seller, both residing in the same place, it is obvious that the mode of payment is extremely simple. It takes place either in cash or by bill, and is attended with no intricacy of computation. Transactions between two towns in the same country are almost equally easy. Payment in cash is out of the question, but the seller either draws on the buyer a bill payable at the residence of the buyer, or if this residence is not a town of extensive trade, the buyer domiciles his acceptance at a place of this description; that is, he makes it payable there. The simplicity of this process arises from the money being of the same denomination in both places, and nearly of the same value. But in dealing with foreign countries, the calculation becomes less simple from the difference of denomina. tion; and although this causes no real difference in the value of money, yet obstacles exist to the conveyance of specie, which al most always prevent money from being of equal value in two different countries at the same time. Among merchants resident in different countries, bills serve nearly the same purpose as cash to the inhabitants of the same town. They are the current coin, by which the buyer in one country repays the seller in another; they pass like money from hand to hand; and this facility of circulation would always make money of nearly equal value in two countries, whose exchange of merchandize should be nearly equal. But it seldom happens that the exchange of merchandize is equal; there is almost always a balance on one side or the other; this balance must be paid in money; and money is consequently of greatest value on the spot where payment must take place. Hence the fluctuations of exchange. These fluctuations are greater or less according to the amount of the balance to be paid, and according to the expense and difficulty of conveying specie. By the expense of conveying specie is meant the carriage and insurance; by the difficulty, is meant the hazard of evading those prohibitory regulations, which in most countries impede its exportation. So powerful is the operation of these causes, that the exchange is often high, even between neighbouring countries; for instance, during 1793, the trade between Holland and England was completely open, insurance was low, and the voyage is known to be short, yet money was wo per cent. more in England the land; that is, a bill on London = exchange of Amsterdam betwe 12 per cent. more than the int of the money. This continue spring of 1794, when the King having promised to act with vig the French, on condition of large subsidy, the remittance of that subsidy through Amsterdan immediate fall in the rate of ex tween England and Holland. riods of the war, it has been visable that government should cie rather than turn the course against us by the formidable oper mitting a subsidy in bills. A II. Having explained the ori tuations in exchange, we shal vert to the peculiar terms, us transactions. Usance. This term, derived of our mercantile phrases from t (usanzia) means the customary which bills used to be drawn particular country on another. T between Holland and England wa Ta "At two usance pay to order ofte de aviair of at two motor Who' such a bill means, date pay to order, &c." Between and Hamburgh, and between Eng France, usance is also a month. England and Portugal or Spain, months; and between England it is three months. Its length evi creases with the distance of two from each other, and was regu the time formerly required for veyance of bills. In the Ameri West India trades, the phrase is no and the common term of a bill is ninety days after sight. The word usance continues to be ed only from conformity to ancient *** for it has no signification which we be equally well expressed by the r nerally intelligible phrase of mong days. Days of grace. It has been judge the legislatures of different countries, sider the acceptance of a bill of exch an engagement decidedly obligatory acceptor. If he fail in paying it, he n loses his credit, but the holder of t may, in most countries, arrest eith person or his property. The pol these enactments is to give free cu to bills of exchange, by satisfyin |