Front Page Titles (by Subject) 45.: ricardo to malthus1 - The Works and Correspondence of David Ricardo, Vol. 6 Letters 1810-1815
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45.: ricardo to malthus1 - David Ricardo, The Works and Correspondence of David Ricardo, Vol. 6 Letters 1810-1815 
The Works and Correspondence of David Ricardo, ed. Piero Sraffa with the Collaboration of M.H. Dobb (Indianapolis: Liberty Fund, 2005). Vol. 6 Letters 1810-1815.
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First published by Cambridge University Press in 1951. Copyright 1951, 1952, 1955, 1973 by the Royal Economic Society. This edition of The Works and Correspondence of David Ricardo is published by Liberty Fund, Inc., under license from the Royal Economic Society.
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ricardo to malthus1
London 30th. Decr. 1813.
My dear Sir
I have been amusing myself for one or two evenings in calculating the exchanges, price of gold, &c,—at Amsterdam, and I enclose the result of my labours. I have every reason to believe that my calculations are correct,—though I am somewhat puzzled at the profit which there appears to be on the importation of gold from Amsterdam, if the prices there be quoted correct. If the difference were the other way we might ascribe it to the money of Holland not being so good as it ought to be by the mint regulations, but in the present instance, for guilders as good as they are coined gold can be bought 9½ pct. cheaper than in London. I am told that Gold which cannot be exported has sunk considerably in price altho’ gold that may be exported keeps its price. I fully expect that foreign gold will be lower.
We have had a continuance of foggy weather ever since monday—we are obliged to burn candles during the day, and at night it is with the greatest difficulty we can find our way to our homes. I hope you are more fortunate and breathe a clearer atmosphere.
We shall expect you in Brook Street on your next visit to London. Have the goodness to write to me the day before you come. With best wishes to Mrs. Malthus I am Dear Sir
Yours very truly
Columns 11 and 12 will shew on inspection whether silver be passing from London to Amsterdam, or from Amsterdam to London. Suppose the price of silver in London to be 6/7 and the exchge. with Amsterdam 28/- Against 6/7 in Col. 11, the par of exchge. is 29/41 in Col. 12 consequently being at 28 it is unfavorable to Amsterdam and silver can be exported from Amsterdam to London with a profit of 5 pct. If under the same circumstances the exchge. had been 31 silver could have been exported to Amsterdam with a profit of 5 pct.
Col. 8, 9 and 10 will shew from which country gold may be profitably exported. Suppose the price of gold in Amsterdam to be 16 pct. pm., the agio 3 pct., the exchge. with London price of gold in London £5. 10; from which country would gold be exported and with what profit?
Against 16 pct. in Col. 1, the par of exchge. in Col. 8 is 39.64 and against £5. 10 the price of gold in London in Col. 9, the multiplier .708 stands in Col. 10. 39.64 multiplied by .708 gives 28.06 as the par for Bank notes, therefore when the exchge. is at 31 it Holland and gold may be imported from thence with a profit of 10½ pct. nearly. Or thus[.] An oz of standard gold when the marc could be bought at 16 pct. pm. at Amsterdam would cost 154.3 flemish Shillings Banco when the agio was 3 pct., which reduced into English shillings per £ sterling will give £4. 19. 6¾, but it will sell in London for £5. 10 which is a profit of 10½ pct. nearly.
[1 ]MS at Albury.—Letters to Malthus, XIII.