Consuetudo, vel lex mercatoria, or The ancient law-merchant Diuided into three parts: according to the essentiall parts of trafficke. Necessarie for all statesmen, iudges, magistrates, temporall and ciuile lawyers, mint-men, merchants, marriners, and all others negotiating in all places of the world. By Gerard Malynes merchant.

CHAP. XX. Of Merchants Accounts kept by Debitor and Creditor.

THE manner of keeping accounts by Debitor and Creditor, was first deuised in Italy vpon verie good considerations. There is great affinitie betweene Faith, Trust, and Confidence; in Diuinitie Trust and Confidence are two handmaides vnto Faith, euen as Faith is the hand whereby wee appre∣hend Gods mercies, to repose our trust in him, and to bee confident thereof. But in Humane actions the word Trust is more proper, which implieth a credit or beliefe which wee giue or repose vpon others, or others do attribute and giue vnto vs. Hence proceedeth the Italian speech, Star dal Credere, grounded vpon that maxime of

the Ciuile Law, Omnis homo bonus, donec contrarium probetur; where∣vpon a man negotiating in this world must trust and bee trusted: he that is trusted with any goods, moneys, or other mooueable things, is therefore called a Debitor or Debtor vnto the partie that doth trust him therewith, and he calleth that partie his Creditor, because hee gaue him credit for the same; whereby Debitor and Creditor concurreth betweene partie and partie. Suppose now, that a young man being of age to manage his owne, is desirous to deale in the world in trafficke and trade by buying and selling of commodities, or to let out his money at vse, or by exchange, for other countreys (vnto which three actions wee still obserue our method, as being the Essentiall parts of Trafficke, as often hath beene declared:) and thereupon he endeuoureth to keepe a true account of all his procee∣dings and negotiation, by way of this manner of account by Debi∣tor and Creditor, that is to say, to haue still a Creditor vnto a Debi∣tor, and a Debitor vnto a Creditor, which must reciprocally answere each other. Now considering of his meanes for the effecting here∣of, he findeth that he hath one hundreth Clothes, two hundreth Kersies, or any other commodities left him by his father or friends, and moreouer some thousand pounds in readie money, and fiue hun∣dreth pounds in debts owing by seuerall persons, payable at some time to come, besides some hundreth pounds yearely in Lands or Leases: out of all these he maketh a Stocke or Capitall, which he doth enter into a Book•• called a Iournall, because it containeth his daily actions from time to time; and from this Booke they are trans∣ferred or set ouer into another bigger Booke, called a Liedger, be∣cause the same remaineth (as lying) accordingly in a place for that purpose.

The Spaniard doth call this Booke El Libro grande, and the Iour∣nall he calleth Manuall, being of a farre lesser volume, commonly but one third part of the other, being manuable, and vnto this they keepe a Borrador or Memorial, wherein all things are first entred, and may vpon occasion be blotted, altered, or (by error) be miscast, or not well entred.

But in the Iournall and Leidger Booke, there may not be any alte∣ration of cyphers, blotting (nor places left in blanke in the Iournall) but one parcell without intermission must follow another, otherwise the bookes are of no credit in law, or before any Magistrat; whereas otherwise much credit is giuen to bookes well and orderly kept, for the deciding and determination of many controue••sies which happen between Merchants and Merchants, and their Factors, which is the cause that I could not omit to write thereof, as a branch of the Law-Merchant, to the end that such Iudges, and others that are vn∣acquainted with the manner of it, may be enlightned in their procee∣dings, which (in matters of this nature) may come before them to be determined.

The manner how he doth enter them in the Iournall is as followeth.

WHerein obserue, that euerie Debitor must haue a Creditor, and so on the contrarie euerie Creditor his Debitor, and alwaies the left side of your Leidger Booke being open is the Debitors side, and the right side of the said booke towards your right hand is the Creditors side, wherein you enter euerie Account by it selfe from the parcells of your Iournall, which parcells (in the said Leidger Booke) are found in the Iournall by the date of it when it was made. But in the Iournall, the Leaues or Folio of the Leidger are noted ouer a line in the Margine for the Debitor, and vnder the said line for the Creditor: and so in the Leidger booke euerie parcell hath in the latter end a direction to the Folio or Carta, as the Italians call it, whereby the Debitor sheweth his Creditor, and the Creditor ma∣keth relation to his Debitor; which words are not vsed, but vnder∣stood by, Such a one oweth, and, Such a one is due to haue: not only of persons, but of things themselues. As the great Merchants which buy and sell many commodities for themselues, or for others, they will arme an Account, which is the Spanish phrase, Ar∣mar vna Cuenta; but in plaine English, they will keepe or frame an Account for themselues, and make their Ware-houses or Maga∣zin Debitor, because the Ware-house is trusted with the wares or commodities: others will make the commodities Debitor, and their owne Capitall or Stocke Creditor. In like manner (because their moneys are layed vp or locked in a chest, which they call Cash) they will therefore imagine this Cash to be a person whom they haue trusted, and make the said Cash a Debitor for the mo∣ney they put into it, and when they pay out that money, or any part thereof, they will make Cash Creditor, and that partie to whom it was payed shall be made the Debitor, and if he do pay the same by your order to another partie, he shall be made the Debitor, and so the other is discharged and becommeth a Creditor; and so from one to another, vntill you come to receiue the money againe, and then Cash is Debitor againe: for you must stil haue a care to find a Debitor to haue his Creditor, and that euerie Creditor may haue his Debitor. It seemeth that William Sommers (being a Iester to King Henrie the eight) had some insight in this manner of Ac∣count: for when the King told him, that he had deliuered a good summe of money vnto a gentleman a follower of his, Sommers an∣swered, That for doing so, he had noted in his Booke, that the King was a foole, giuing his reason for it, Because the gentle∣man would neuer returne backe againe, and that the King was co∣sined: but the King asked of Sommers. What he would do, in case the gentleman did returne with the money? whereupon Sommers an∣swered, Then I wil put him in my booke for a foole, and put you out, Sic nugae seria ducunt.

To returne to our young Merchant, by this time he hath taken an

Inuentorie of his estate, and caused his Clothes and Kersies to be va∣lued, and findeth that the hundreth clothes are worth some 1200 ll one with another, and his two hundreth Kersies of Deuonshire 400 ll: hereupon entring the yere, moneth, and day in the Iournall, he maketh Debitor and Creditor as aforesaid.

Magazin or Warehouse oweth vnto Capitall or Stocke 1600 ll for one hundreth white Clothes of the markes following, amounting to 1200 ll, and for two hundreth Deuonshire Kersies at 40 ll the packe of twentie peeces, which of mine owne estate I find in this my warehouse parcell of my patrimonie, amounting together in wares 1600 ll, and this summe is drawne out in the margine towards your right hand in the said Iournall.

Cash oweth vnto Capitall or Stocke (you need not to say of me A.B.) the summe of 1000 ll, for so much readie money which I find this day in Cash, proceeding of &c. and this summe is likewise drawne out &c.

B. M. Mercer oweth vnto Capitall 300 ll, which he owed by bill vnto my father deceased, payable in two payments, namely &c. summe 300 ll.

N.W. Merchant oweth vnto Capitall 200 ll for so much owing by him vnto my father deceased, which is payable the 25 of March next, by bond &c.

The Manor of Latham in Lancashire oweth vnto Capitall 1500 ll, which was left my father by descent from &c. containing &c. of the yearely value of 66 ll, now in the tenure, occupation, or possession of &c. 1500 ll.

The lease of the house called the Golden Lyon scituate in Cheap∣side in London, oweth vnto Capitall 200 ll, for so much I haue paid vnto the companie of Mercers for a lease of the said house for 21 yeares, with a reseruation of a rent of 20 ll yearely, to be payed eue∣rie six moneths, now in the occupation of A.B. Gold-smith, paying me sixtie pounds yearely rent for the same, I say cost me two hun∣dreth pounds.

Plate and houshold stuffe oweth vnto Capitall 200 ll, for so much I haue bought, and find to be in moueables of plate, apparrell, and houshold stuffe since my fathers decease, wherewith I find all my estate to be worth 5000 ll, the particulars of which plate and moue∣ables are by Inuentorie to be seene in my Booke of Remembrances or Memoriall; so for this parcell I draw out 200 ll.

Here you see that this young Merchant hath an estate of 5000 ll to begin the world withall, consisting of the aforesaid seuen parcels. These seuen parcels now are put ouer into the Liedger, which some call posted ouer, in so many seuerall Accounts of seuen Debitors, and there is but one to be made Creditor for all these, which is Ca∣pitall or Stocke, which doth answere by correspondence all the se∣uen Debitors in their proper accounts, amounting all to the summe of 5000 ll on the Debitors side, and so is here 5000 ll on the Creditors

side which doth ballance the other, being so termed of a paire of bal∣lances, wherein equall weight being laid on euerie side, the ballance will be iust and euen; and in like manner must all accounts (kept by Debitor & Creditor be euen ballanced, whatsoeuer the remainder of the accounts are, which falleth out by calculation vpon the account. But the maine ballance of the whole booke may not differ one pen∣nie, and fractions of halfe pence and farthings are not vsed in Iour∣nall parcells, but accounted in the summaries at the first.

This Merchant now employeth his money and buyeth some other commodities to be sent beyond the seas: namely, one hundreth pee∣ces of Perpetuanoes, which cost him readie money fiftie shillings the peece; more, twentie fother of Lead, at ten pound the fother; fiftie peeces of Bayes of diuers sorts, cost him two hundreth and twentie pounds; and twentie Redding mingled colour clothes, amounting in all to 870 ll, which he paied in readie money. And all these com∣modities he doth enter into his Iournall in one parcell, making the said Magazin Debitor for all, and his cash Creditor, because the said cash was made Debitor for the mony of one thousand pounds, as you see before, and now being made eight hundreth and seuentie pounds Creditor, there is but one hundreth and thirtie pounds more remai∣ning in cash, the rest is in commodities.

By this time B.M. the Mercer (who oweth three hundreth pounds) payeth a hundreth pounds of it, now Cash is made Debitor for that one hundreth pounds, and B.M. is made Creditor for the same; so he oweth now but two hundreth pounds, and there is now in Cash two hundreth and thirtie pounds.

The three existant parcells by themselues for the Lands, Lease, and the Plate and Houshold stuffe, remaine still in the bookes vn∣touched.

The Merchant beginneth to ship his commodities, and sendeth his hundreth white clothes for Hamborough to a Factor, or his ser∣uant, and payeth the kings Custome, and all charges concerning the same: and now he frameth an account of those clothes, intituling the same voyage to Hamborough, or clothes sent to Hamborough, do owe vnto the Magazin one thousand and two hundreth pounds, for one hundreth white clothes sent for my account to such a man in such ships &c.

Then he doth charge this account of clothes with the Custome and charges he paied;—Clothes sent to Hamborough do owe vnto Cash sixtie pounds for Custome and charges paied for the same, as in the Memoriall Booke appeareth.

For Seuill in Spaine he sendeth the hundreth peeces of Perpetu∣anoes which he bought, and fiftie peeces of Bayes, and twentie fother of Lead, which did cost him 670 ll; and the Charges, Custome, and Impositions are fiftie pounds in toto.

For Lixborne in Portugall he sendeth two hundreth peeces of Deuonshire Kersies, and twentie Redding clothes, which cost him six

hundreth pounds, and the Custome and charges fortie pounds.

And hereupon hee armeth two accounts vnder the name of voy∣age into Spaine, or voyage to Lixborne, or some other such name of the said commodities, as euerie man thinketh good: so these voy∣ages are Debitor for the commodities, customes and charges therof, and the Magazin is discharged, and made Creditor as abouesaid; and likewise Cash is made Creditor, hauing payed the Customes, Imposi∣tions and charges aforesaid.

This Merchant, not willing to beare so great an aduenture of sixe hundreth pounds, or seuen hundreth pounds in one Ship, doth cause himselfe to be assured of three hundreth pounds in euerie Ship, at foure and fiue vpon the hundreth, and payeth the same vnto the assu∣rors. Hereupon he maketh the said voyages Debitor, and Cash Credi∣tor for so much, namely, thirteene pounds for Lixborne, and sixteene pounds for Seuill, and so committeth the same to Gods will and plea∣sure, and all these parcells are entred into the Bookes. And B. M. the Mercer doth pay more two hundreth pounds, whereof Cash is made Debitor, and B. M. is made Creditor, and discharged of the 3 hundreth pounds he did owe, whereby the Merchant finding some money to spare, he deliuered out two hundreth pounds at interest vn∣to another Merchant for sixe moneths, and thereupon he maketh this Merchant C.D. Debitor, & Cash Creditor, declaring to haue his bond of three hundreth pounds, for the payment of two hundreth and ten pounds at such a day in such a place. And for the interest money of tenne pounds, hee maketh him likewise Debitor, and the account of profit and losse Creditor. But some men do make a particular ac∣count of interest, which is at a mans pleasure.

Now the two hundreth pounds which N. W. oweth, are due, and hee desireth to keepe the money for sixe moneths at interest, and to giue his bond for it, which is so agreed betweene them; the interest is ten pounds, for which hee maketh likewise N.W. debtor, and pro∣fit and losse Creditor.

The Merchants estate standeth now thus, at Hamborough one thousand two hundreth and sixtie pounds, at Seuill seuen hundreth thirtie and sixe pounds, at Lixborne sixe hundreth fiftie and three pounds, at interest foure hundreth and twentie pounds with the interest, and but little money in Cash, because of his daily ex∣pences.

Suppose now that the Ships of the Companie of Merchant ad∣uenturers are come from Hamborough, and our Merchants clothes are sold to diuers Merchants and others there, to bee payed at sixe and sixe moneths, for which they haue giuen their Bills obligatorie to pay the same accordingly. But some of these Merchants are desi∣rous to pay their money by way of anticipation, hauing interest al∣lowed them for it, after the rate of eight in the hundreth for the yeare, and so pay readie money to our Merchants Factor, and there∣vpon the said Factor maketh ouer by exchange foure hundreth

pounds sterling by two Bills of exchanges to be paied here at vsance (which is two moneths after the date of the Bills) by Merchants strangers. These Merchant strangers doe accept the said Bills of ex∣changes, and you make them seuerally Debitors for the same, and your Factor of Hamborough Creditor for the said foure hundreth pounds.

Moreouer, your Factor hath set ouer some of those Merchants Billes of debt for forraine commodities, and hath taken in paiment two Cases of Veluets, which did cost eight hundreth pounds, and hee sendeth them in these Ships, with an account of the charges, cu∣stomes, and factoridge of the said Veluets, amounting to fortie pound; so the Veluets cost in all eight hundreth and fortie pounds: for this you make a new account for Veluets, or the returne of the Hamborough voyage Debitor and your Factor Creditor for the said eight hundreth and fortie pounds, as aforesaid. And because you are to pay great Custome and Imposition of these veluets, and your Cash is not well prouided; you take vp by exchange here sixtie pounds to be payed by your Factor at Hamborough, and deliuer your Bill of exchange for it, and receiue the money; now Cash is made Debitor for the same, and your Factor that is to pay the money is made Cre∣ditor for it accordingly.

This Factor doth now by land send vnto you the account of your hundreth clothes sold vnto diuers Merchants as aforesaid, and this account is made in Hamborough or Lups money, and it is supposed amongst Merchants, that six and twentie shillings and eight pence of their money, is correspondent to our twentie shillings sterling; ac∣cording to this you reduce your Hamborough money into sterling money after the rate, and your Factor in the said account hath alrea∣die deducted his factorige, customs, and all charges incident vpon the clothes sold by him: so that casting your account vpon the nett Pro∣uenu of your clothes, hee hath receiued cleere money one thousand foure hundreth and eightie pound sterling; heereof now you doe make your Factor Debitor, and the voyage for Hamborough Credi∣tor, and comming to your Leidger Booke, you find the said voyage Debitor one thousand two hundreth and sixtie pounds, and now to be made Creditor one thousand foure hundreth and eightie pounds: so you find here is two hundreth and twentie pounds cleare gaines by the account, vnlesse you should become a loser in the veluets; for the money deducted for interest to him that paied before his time, is alreadie deducted in the account of clothes: so that to cleere this account of the voyage, you make the same Debitor for the said two hundreth and twentie pounds, and the account of profit and losse Creditor for the same.

You haue now sold your two cases of Veluets, the one for readie money, and the other at sixe and sixe moneths dayes of paiment, to W.W. Mercer, amounting to fiue hundreth and twentie pounds, whom you haue made Debitor for the same, and your veluets Creditor, and

for the other you haue made Cash Debitor for foure hundreth ninetie pounds, which you haue receiued, and likewise your Veluets Credi∣tor for the same summe; so in both, one thousand and ten pounds: and casting vp your charges, Customes, and Impositions of your Vel∣uets, you find them to amount vnto 80 ll, and for this summe you make Veluets Debitor, and Cash Creditor: so your Veluets did cost with all the said charges 920 ll, and they were sold for 1010 ll; so there is 90 ll aduanced by the said Veluets, where∣of to cleare this account, you make Veluet Debitor, and Profit and Losse Creditor, as aforesaid. Hauing now money in Cash, you make ouer 300 ll for Amsterdam by exchange, with condition and order to your Factor, That from time to time as the mony grow∣eth due, hee shall make it ouer againe by exchange vnto you at double Vsance, which is two moneths, as you made it ouer vnto him: some now in this case wil arme an account of exchanges; but it is bet∣ter to make the factor of Amsterdam debitor for it, and cash creditor.

Ships are now arriued from Saint Lucar in Spaine, and your Fac∣tor of Seuill hath sold your Perpetuanoes, Bayes, and Lead, and in returne thereof hath sent you a parcell of Tabacco, because Cut∣cheneall was too deare, and rich Indico is heere too good cheape: withall hee hath sent you the account of your commodities kept in Royalls of Siluer, accounting sixe pence for a Royall of the cleere Prouenu, being 27240 Royalls, making sterling 681 ll, where∣of you make him Debitor, and the Voyage for Spaine Creditor; and when you come to your Leiger Booke, there it appeareth that the said goods did cost you 736 ll, and so there is lost 55 ll. For this now to cleare the account of the said goods, you make Profit and Losse Debitor, and the said Voyage Creditor to ballance this losse, contrarie to the gaine, the Tabacco did cost with all char∣ges 24800 Royalls, which is 620 ll; for this you make an account of Tabacco Debitor, and your Factor of Seuill Creditor, in the same manner as you did your Veluets, putting thereunto the great Impost which you paied for the same, and all charges; and hauing sold your Tabacco for tenne shillings a pound one with another, you find to haue made cleere aboue one thousand pounds, be it 1010 ll, which cost you in Spaine but 620 ll, so heere is 390 ll gotten; but you lost 55 ll by your wares sent into Spaine: well, this account is clea∣red, Tabacco is made Debitor 390 ll, and Profit and Losse Credi∣tor for the same, and now you are well stored for money, for all is readie money, sauing 300 ll at sixe moneths. Hereupon you make more money ouer by exchange for Amsterdam, by seuerall Bills to your Factor, to the sum of 500 ll, and thereupon he is made Debitor, and Cash Creditor for the said sum, Interim your said Factor of Am∣sterdam hath made ouer vnto you by exchange the former 300 ll backe againe, for which you make him Creditor, and the partie Debi∣tor that is to pay you the money at double Vsance.

The Ships of Lixborne are also arriued, and bring in returne of

your Kerseys and Reading clothes, fortie chests of Sugar of the three sorts, Pancla, Mascauado, and Blanco, or white, with aduice that the com∣modities are sold at a reasonable rate, for by the account it appea∣reth that the nett Prouenu of it commeth to 1204 thousand 800 Reys, which make 3012 ducats of ten Royalls, or 400 Reys, is ster∣ling 753 ll; so that there is aduanced by the account iust one hundreth pounds, which are carried to the account of Profit and Losse, as in the former Accounts. The fortie chests of Sugars did cost 550 ll, where∣of the Factor of Lixborne is made Creditor, and the Account of Su∣gars Debitor, in like manner as aforesaid, Mutatis, Mutandis, and the said Sugars were sold paiable at sixe and sixe moneths, for 820 ll; so that the charges and customes deducted, there was 190 ll gotten, which are likewise posted to the Account of Profit and Losse.

The 300 ll made ouer from Amsterdam, are now due to be paied heere, and the Merchant doth offer you to pay them by a new Bill of exchange; whereunto you agree, and heereupon you make him Cre∣ditor, and your Factor of Amsterdam againe Debitor: and withall you make ouer by exchange other 200 ll payable at double Vsance; and for this you make him Debitor also, and Cash Creditor.

The yeare is now almost expired, and euerie prouident Merchant doth commonly make vp his Account, and draweth a ballance of his booke, and this Merchant findeth to haue receiued of his Mannor of Latham, and lease of a house 106 ll, and for this he charged his Cash, and carrieth the same to Gaine and Losse, as he did all the former par∣cells. Then hee doth cast vp his expences of house keeping, which come to 150 ll; and for this hee maketh Profit and Losse Debitor, and Cash Creditor.

The 400 ll made ouer from Hamborough are receiued, and Cash is Debitor for it, and the parties that payed the same, are made Cre∣ditor, and discharged. Now by the Account of Profit and Losse, there appeareth to be gotten 911 ll cleare, all charges and expences deducted: this is now carried to Stocke, which is now 5911 ll. Heereupon take all the remainders of the Accounts by Debitor and Creditor, which is the ballance of the Booke, and you shall find no∣thing on the Creditors side, but the Capitall of 5911 ll, which is bal∣lanced by the nine accounts following, and the three accounts for the lands, leases, and houshold stuffe, amounting to 1900 ll vnaltered; So

1900 ll	for the said lands, lease, plate, and houshold stuffe.
420	Owing by two parcels at interest, by C.D. & N.W. Merchants.
520	Owing for Veluets sold to, &c.
300	Owing for Tabacco sold to, &c.
820	Owing for Sugars sold to, &c.
1000	Owing by the Factor of Amsterdam, &c.
180	Owing by the Factor of Hamborough, &c.
61	Owing by the Factor of Seuill, &c.
203	Owing by the Factor of Lixborne, &c.
507	Readie money in Cash.
5911 ll.

Thus it appeareth, that this Merchant hath augmented his Capi∣tall or Stocke nine hundreth and eleuen pounds, being now worth 5911 ll. And if he had beene a loser by the Account of profit and losse, then must he make his Capitall Debtor, and the said Account Creditor, to ballance the matter, whereby his Stock would haue decreased. Now by these proceedings in buying and selling, recei∣uing and paying, you may vnderstand all other voyages for what places soeuer, taking notice of the diuersities of moneys, and cal∣culations of Exchanges alreadie declared in our former Chapters; hauing an especiall care to keepe an orderly Cash Booke of all the moneys receiued and payed out; which, as money is Publica Mensu∣ra, or a right Iudge to set a price vnto euerie thing, so may you by the measure thereof (truely entred in the Cash Booke) find out ma∣ny doubts, questions, and vncertaineties in Accounts. For the mo∣neys being proceeding from the originalls of commodities or ex∣changes, and the persons with whom you deale therein, giueth you light and direction to discusse these differencies; and therefore it may well be compared to the measure of Hercules foot, whereby the whole Symetricall proportion of all his bodie was found out. And manie Merchants Accounts are so intricate, and ouergrowne with errors, as Archymedes Tombe with thornes, when Cicero came to visit it.

But now me thinkes I heare one say, You haue briefely shewed vs the manner of Accounts by Debitor and Creditor, with the ap∣plication of it to a Merchants negotiation for Commodities and Money, and also by deliuering money by Exchange, and how Mo∣ney is gotten by Commodities, and by letting the same at Interest; But I cannot vnderstand how a Merchant getteth money by Ex∣change of money by bills of Exchanges.

Hereunto I answere, That it was omitted of purpose, because it should not obscure the former demonstration, otherwise the matter is of such importance, that whosoeuer dealeth without consideration of it, is like to a blind man groping in the dark, and yet may hit the egge. For (according to the price of Exchange) all the commodities of the realme which are exported, and all the forreine commodities imported, are sold.

Know ye therefore, that the benefit or profit of exchange is neuer known directly, but by the rechange thereof: to which end you may remember, that our Merchant did first make ouer three hundreth pounds by exchange for Amsterdam, which were rechanged againe; and then he made ouer fiue hundreth pound, three hundreth pounds, and two hundreth pounds, in all one thousand pounds; and now late∣ly he hath made ouer one thousand pounds more for the said place of Amsterdam, all at double Vsance, to make the better benefit and lesse charges. These moneys are made ouer at seuerall places as followeth.

	ll	ss	d
300 ll are made ouer at thirtie fiue shillings Flemish for the pound, is	525	0	0
500 ll are made ouer at thirtie foure shillings ten pence, is Flemish	870	16	8
300 ll at thirtie foure shillings six pence, is	517	10	0
200 ll made ouer at thirtie foure shillings eight pence, is Flemish	346	13	4
1000 ll at seuerall prices one with another, at thir∣tie fiue shillings	1750	0	0
So the 2300 ll sterling paid at Amsterdam, is Flem.	4010	0	0

These moneys haue beene made ouer, or returned againe by Ex∣change at seuerall prices, and the account cleered, as followeth.

	ll	ss	d
300 ll were made ouer from Amsterdam, at thirtie foure shillings two pence, is	512	10	0
500 ll were made ouer at thirtie three shillings six pence for the pound sterling	837	10	0
500 ll at thirtie three shillings nine pence, paied at Amsterdam for the pound	843	15	0
500 ll at thirtie three shillings eight pence in like manner, is	841	13	4
The Factor taketh for his sallarie, and paied to Brokers	21	4	8
And maketh ouer 500 ll more, and gaue thirtie three shillings ten pence for the pound	845	16	8
More at the same price of thirtie three shillings ten pence, he made ouer the iust remainder in his hands, being 107 ll 10 ss 4 d, and sen∣deth a particular bill of Exchange of 63 ll 11 ss for it	107	10	4
	4010	0	0

Here you may find distinguished, that wheras you made ouer from London the sum of 2300 ll sterling you now receiue backe 2363 ll 11 ss, whereby your p••ofit is 63 ll 11 ss, of this you make your Factor Debitor, and the account of Profit and Losse Creditor, and the like of other summes for other places. The Spaniard therefore fr••meth an Account of generall exchanges for all places, called Cam∣bios generales, to keepe an euen and iust Account with his Factor, ad∣mitting a certaine rate betweene him and the said Factors, according to which he rateth all the parcells of Account, be it for commodi∣ties bought or sold, or moneys paied and taken vp againe by ex∣change, which is the more labour, but more exactly done; otherwise it bringeth some alteration in Account, as for example.

This Merchants Factor at Hamborough doth remaine D••bitor vpon the Account one hundreth and eight pounds, which is accor∣ding

to twentie six shillings eight pence for the pound sterling. This money he maketh ouer by exchange, but he is faine to giue twentie seuen shillings for the pound, which doth differ foure pence lups in the pound sterling: so that for this difference you must make another parcell, charging the account of Profit and Losse with this losse, and making your Factor Creditor for it: whereas in the generall account of exchanges, all is brought ouer in one parcell; but herein euerie man may follow his pleasure.

Another obiection is made, How shall a man do that hath no stock, or little or nothing to begin the world, as diuers men that from no∣thing come to an exceeding great wealth? what booke of account can they keepe by Debitor and Creditor?

The answere is manifest, all is grounded vpon trust. If any man will sell you commodities payable at long daies of payment, and you sell them, and pay him with his owne, you can make him Cre∣ditor for the same, and the commoditie Debitor: and in like manner if any man lend money vnto you to trade withall. So that you may perceiue that this is an excellent inuention, and a most commodious course to know things readily.

The Bankers therefore that deale for millions of pounds, and make great payments continually by assignation, doe summe vp eue∣rie tenne parcells, and post them ouer to a new Account, because they know at all houres whether a man be Debitor or Creditor vnto them.

If the treasure of Princes were disposed by this manner of Ac∣count, they should receiue many benefits and aduantages.

First, they should not be in wants as they commonly are, but make their treasure goe further in payments, because they may know at all times where to find their owne, and what is owing vn∣to them.

Secondly, they should not be deceiued as they are by their Audi∣tors accounts, by way of charge and discharge, made sometimes ma∣ny yeares after, when commonly officers are much indebted vnto them, and yet call for money continually, which afterwards (before the account made) is consumed by extraordinarie allowances, which are easily procured, when their moneys are out of their coffers; so that vpon the matter, they might pay that with one pennie which now doth cost them three pence, whereof the late warres in Ireland giue vs a sufficient instance.

Lastly, the charges and expences of officers would be much dimi∣nished, and Princes would content their followers and subiects with better pay.

Worthie of perpetuall remembrance is that noble Prince King Henrie the seuenth, who (in his singular wisdome and pollicie) know∣ing how Princes are subiect to bee wronged by their officers in the disposing of their treasure, by fraudulent and deceitfull accounts, which either by ignorance or otherwise by conniuence do passe, did

himselfe (with great facilitie) take an inspection in all his Exchequer Accounts, by an abstract of the said Accounts, entred in a booke by some experienced and skilfull man in Accounts, whereunto his high∣nesse did subscribe his royall signature, before the Officers (vpon good certificate made to the Lord Chauncellour) could haue their Quietus est passe the great Seale of England. And the faid King was pleased many times to enter into particular examination of some of the Accounts, whereby he did strike a terror into the hearts of the officers; so that they became more carefull, and durst not commit any fraud or deceit by combination or tolleration, but his treasure was duely administred and preserued. This Signature of the Kings in the said booke, is extant to be seene in his Maiesties Exchequer.

Vrgent necessitie caused the late French King Henrie the fourth, when he was King of Nauarre, to be present in the disposing of his treasure: in so much that afterwards (in possessing the Diademe of all France, and calling to remembrance his former obseruation, by comparing things to their first principles) he found that of euerie French crowne (being sixtie soulz) which his coffers should receiue, there came not aboue the fourth part de claro vnto him. Whereupon, by rooting out of corruption, deposing of needlesse officers, profit∣able emptions of things necessarie, and by wise disposing of them, he brought (è contrario) three parts of euerie crowne vnto his coffers, and did in progresse of time accumulate a verie great treasure: and yet did he increase officers fees, according to the alteration of time, which (by accidentall causes) had made euerie thing deerer.

Thus much obiter. Now if a Merchant be also a Factor for others in the buying and selling of Commodities, deliuering of Moneys at interest, and by dealings in Exchanges and R••changes, hauing facto∣ridge allowed vnto him for the same, according to the manner of Merchants, some more and some lesse, as they agree betwe••ne them, the difference in keeping other mens Accounts with whom they haue any correspondence, is but small; for if it be for goods or mer∣chandises sold, they will intitle the Account, Goods of the Account of such a man do owe vnto Cash such a summe paied for Custome and Charges; or if it be for goods bought, he will do the like, and dis∣charge the Accounts by making the said Merchant Debitor or Credi∣tor for it is as the said Accounts require, which he doth also charge with factoridge, or prouision for his sallarie: and therfore all Factors keepe a particular Account, to know what they haue gotten by facto∣ridge or prouision at the yeares end, and then they charge that Ac∣count with their charges, and all such expences as they haue been at, and the remainder is posted to Capitall, as in the Account of Profit or Losse; whereupon some others do bring their charges and exp••n∣ces, and so carrie all the prouision to Capitall or Stocke: Herein euerie man may vse his pleasure, for this manner of Account affoor∣deth many distinctions, all which seuerall branches or members of Account may be brought to make vp the the compleat Bodie; for by

the dismembring of an Account, separating euerie thing in his pro∣per nature, you are inabled to find out many errours and intricatenes of Accounts, by reducing the Bodie of it to his perfection.

In this place may be expected a declaration of the seuerall coynes, or calculation of moneys, wherein the Bookes of Merchants Ac∣counts are kept beyond the Seas: But because the same is founded vpon the seuerall exchanges betweene Countrey and Countreys, I haue thought good to referre the same in the proper place of exchan∣ges hereafter following, and to conclude this Second Part of Lex Mercatoria, with that notable question made by the Ciuilians; Whe∣ther a Merchant or a Banker, keeping two Bookes of Account, the one concerning the moneys of his Banke, and the other touching trade of Merchandise for wares, shall bee censured alike for such mo∣neys as hee oweth vnto his Creditors? So that the Creditors (after his decease) shall all stand in equall degree to be payed, either in the whole or in part, if the Bankers estate bee not sufficient for the pay∣ment th••rof: Herein the Iudges of Merchants do make no difference, but the Ciuilians haue made a great distinction therein, and they say, That the Booke of the Banke, is more to bee credited than the other; For, saith Benuenuto Straccha, the Booke of the Banke was kept publikely, and the other (as it were) secret to himselfe: so that the Creditors of the one are to bee distinguished from the other, as being two negotiations, and to bee dealt therein according to their seuerall natures, and the meanes thereof extant, with such considerations as may bee incident thereunto. To declare my owne opinion, I say, That the Canon and Ciuile Law, making no distinction in the pay∣ment of the Testators Debts, betweene moneys owing for wares or for interest; there ought not to be any diffe∣rence in the nature of the debts, in re∣gard of the Bookes of Accounts. ({inverted ⁂})

Notes

• A Iournall Booke.
• A Leidger Booke.
• A Memoriall Booke.
• How parcells are found in the ••eidger and Iournall.
• Magazi••.
• Capitall or Stocke.
• Ca•••• or Chest.
• A ••••rrie iest of Will. Som∣mers.
• The manner of making De∣bitor and Cre∣ditor.
• Land••.
• Leas••••.
• Houshold stuffe.
• Transferring of parcels to the Leidger.
• Ballancing of accounts.
• Entring of parcels in the Iournall.
• For commodi∣ties bought and money paied for ••hem
• For money re∣ceiued, and a debtor partly discharged.
• Substantiall wealth.
• Accounts for voy••ges for Hamborough.
• Money paied for Custome and charges.
• Voyage for Spaine.
• Voyage for Portugall.
• Magazin dis∣charged.
• Money for as∣surance.
• Money recei∣ued.
• Money deliue∣red a•• interest.
• Interest mony.
• Moneys owing continued at vse.
• View of a Mer∣chants estate by the Bookes.
• Returne of voyages.
• Money paied by way of an∣ticipation.
• Money made ouer by ex∣change.
• Veluets bought beyond the Seas.
• Money taken vp by ex∣change.
• Cloth sold be∣yond the Seas, and account sent of them.
• Hamborough money redu∣ced into ster∣ling.
• Retu••ne from Spaine in Ta∣bacco.
• Accounts of goods sold in Spaine.
• Losse vpon wares in Spain
• Reduction of Spanish mony into sterling.
• Gaine by Ta∣bacco.
• Money made o••er by ex∣change.
• Reduction of Portugall mo∣ney into ster∣ling.
• Money which was made ouer, returned by exchange againe.
• Money recei∣ued o•• lands and lease. Expences of house keeping reckoned.
• Gaines of the Acc••unt of Profit & Losse, and Losse car∣ried to Capital or stocke.
• Ballance of the Leiger Booke.
• Losse by the Account of profit and losse
• The impor∣tance o•• a Cash Booke.
• Symetricall proportion in Accounts.
• Profit of ex∣change known by the re∣change.
• The manner how exchange giueth profit.
• Gaine by ex∣change to pro∣fit and losse.
• Difference in the rate of exchange.
• Obiection.
• Answer••.
• The keeping of accounts by the Bankers.
• Princes ac∣counts to be kept by Debi∣tor and Credi∣tor.
• Notable ex∣ample of King Henrie the se∣uenth.
• Prouidence of the French King Henrie the fourth.
• Factors Ac∣counts.
• Dismembring of Accounts.
• A Question made by Ci∣uilians about Bookes of Account.