A discourse of the general notions of money, trade & exchanges, as they stand in relation to each other attempted by way of aphorism : with a letter to a minister of state, further explaining the aphorisms, and applying them to the present circumstances of this nation : wherein also some thoughts are suggested for the remedying the abuses of our money / by a merchant.

A DISCOURSE of the General Noti∣ons of Money, Trade and Exchanges, as they Stand in Relation each to other, &c.

CHAP. I.

Of the Introduction of Commerce and Money.

1. 'TIS not to be Doubted, but that the first Ages were altogether unacquainted with Trade and Commerce.

2. For being content with the simple Productions of Nature, every one Furnished themselves therewith by the Labour and Industry of their own par∣ticular Families.

3. But when the World became more Populous, di∣vers Persons addicted themselves to more peculiar Ma∣nagements, either from the Propensity of their Genius, or the Conveniency and Aptitude of those Habitations that fell to their Lot; some Employing themselves chiefly in the Breeding of Cattel, others of Corn, some acquired Skill in Architecture or Building of Houses, others Ap∣plied themselves to the Making of Utensils and other needful Conveniencies.

4. And thus People found a greater Convenience in making use of each others Assistance, and that they were better Suppli'd thereby, than when they were forc'd to divert themselves from their own more peculiar Employ∣ments,

to Attempt those things for which they were not so well qualified.

5. By this Means then was Commerce begun.

6 Yet in the Beginning 'twas Manag'd no otherwise than by Exchanging Commodities for Commodities.

7. But this Method became very difficult, when Peo∣ple could not readily find mutual Demands for those things they had to Exchange.

8. Some things, either by Reason of their being more Rare of Production, or Requiring more Art or Labour to acquire them, came to obtain a greater Value or Esteem among Men.

9. Of these 'tis probable that Metals gain'd the first Estimation, because of their Hardness, and the many U∣ses they were Applicable to: And among those, Gold and Silver came to be most Valued, as much Excelling the others in the Perfection of their natural Fineness and Duration, and being more Rare to be found.

10. A small Bulk or Weight of these Finest Metals, being Esteemed of great Value, they were therefore made Choice of as the fittest Medium for the Exchange or Pur∣chasing of all other Commodities.

11. But as these were subject to be Adulterated by the Mixture of Baser Metals, certain Standards were Agreed upon to Adjust the Fineness; and the Value thereof was Computed by Weight.

12. Yet that the same might become Currant, and the trouble of proving every Piece be avoided, 'twas found needful, that every Prince or State should affix a Mark or Stamp on such Pieces as were Currant in that Countrey; thereby giving Publick Credit to the Truth thereof: And this obtained the Name of Money or Coin.

CHAP II.

Of the Progress and Various Methods of Trade.

13. MOney then becoming the Means whereby all things necessary for Human Life might be Pur∣chased,

14. People exerted their utmost Industry for Procuring the same, esteeming it their chiefest Treasure.

15. But the Almighty Creator had so disposed the World, that as particular Persons, so also did different Na∣tions, stand in need of the various Productions of each other.

16. And this made way for Trade and Merchandize, by the Carrying and Vending the Commodities of one Coun∣trey into another; which also occasioned the more fre∣quent Use of Money.

17. Yet did Trade admit of very different Kinds of Management, according to the different Occasions of di∣vers Countries.

18. Sometimes the Merchant carried his Goods to ano∣ther Countrey, and brought home the whole Produce in other Commodities of that Countrey which were requi∣red in his own; sometimes he brought part Goods and part Money; and to some Places he was forc'd to carry the greatest Value in Money for the Purchasing such Goods as were wanted in his own Countrey.

19. Either of these Trades might be equally profitable to the Merchant; but that Trade brings most Profit to his Countrey, when he returns with most Money.

20. Yet it may not be disadvantagious to a Nation, to send out its Money for the Purchasing some Profitable Commodities; if so be the Money they draw in by their

Trade with other Countries, doth in the whole surmount the Value they shall so send out.

21. For by this means their People, Beasts of Burden, and Ships (where they have them) come to be employ'd, and the greater Circulation of Riches is made among them.

22. Nay even Superfluities may be admitted, where they have no worse a Consequence upon the Publick, than the drawing Money from those that most abound in Wealth, and causing it to Circulate among the Needier sort who depend upon Trade.

23. Likewise when a Trading Nation doth by such Means procure Commodities, to Export them to other People, who are less Industrious in serving themselves; such a Trade is to their Advantage, for as much as it returns at last with a Surplus of Money.

24. From hence 'tis Evident, that the Profit of a Trading People, is not to be Computed from their Negotiations with any particular Countrey, whether it be by Money or Goods, but from the Ballance of their Trade in General.

CHAP. III.

Of the different Computations of Money in distinct Governments.

25. AS we have already Noted, that Money is become the Medium of all Commerce, we are yet to Consider that different Nations have very different Com∣putations of the Value even of this Medium.

26. For distinct Governments made the Allay of their Metals Finer or Courser, and gave their Coins such Deno∣minations, and as many different Species, as they thought necessary to themselves, without regard to the different Usage of their Neighbours.

27. Therefore People do not currantly Receive or Esteem Foreign Coins according to the Value or Com∣putation that Foreigners put upon them; but according to the Weight that the Silver and Gold will yield, redu∣ced to the Standard of their own Countrey.

28. Moreover, Silver and Gold themselves (which we may call by the general name of Bullion) are to be considered but as a Finer sort of Commodities; and as such, are capable of Rising and Falling in Price, and may be said to be of more or less Value in divers places, accord∣ing to their Plenty or Scarcity.

29. Bullion then may there be reckon'd to be of the Higher Value, where the Smaller Weight will purchase the Greater Quantity of the Product or Manufacture of the Countrey.

30. And according to this Rule, the Riches or Poverty of a Countrey is to be Computed; even as the Riches of a Pri∣vate Man is to be reckon'd from the Weight of Bullion he can command.

31. 'Tis therefore an Infallible Demonstration of the decay of Wealth in any Countrey, where they are reduced to a necessity of abating the Standard of their Coins, or causing it to pass above its wonted Value; because he that parts with his Commodities, becomes then Possessor of a less Weight of Bullion in lieu thereof.

32. Also when the Merchant Trades to such Countries from whence he must make his Returns in Bullion, he doth not only regard the Weight thereof, but hath also conside∣ration to the Hazard, Time, and Charge of Transporting it into his own Countrey.

33. And this Charge is sometimes more, sometimes less, and according to the more or less difficulty of Trans∣portation or Carriage, occasioned by War or any other Contingencies.

34. Wherefore there can be no constant Standard or Adjustment made, to Reduce the Computations of Foreign Coins to the exact Value of those of our own Countrey.

35. Yet such Alterations upon these most Staple and Precious Commodities can never be great, unless by some extraordinary Accidents, which rarely happen.

36. So that a very near Regulation is always made by the Exchanges: Of which we come next to Treat.

CHAP. IV.

Of the Introduction and Nature of Exchanges.

37. IN taking Notice of the many different Managements of Trade, we have before shewn, That Trading People do from some places Import Bullion in Return of their Merchandise sent out, and yet must send Bullion to other places, for the purchasing of such Goods as they have need to Import from thence.

38. Those Countries also that take Bullion from some places, because they have no Occasion for the Commodi∣ties that they produce, must yet send Bullion to other places, to procure what themselves need, and have not other Commodities to purchase.

39. Some Merchants also that Trade to the same places, apply themselves only to the Importing of Commodities purchas'd with their Money; whereas others, on the con∣trary, Trade only by sending of their Goods to the Mar∣ket, and making their Returns by Money.

40. To avoid then the Charge, Trouble and Hazard in Carrying Money in Specie to and again for the Supplying all these differing Occasions, the Method of Drawing and Remitting Money by Bills of Exchange was found out.

41. For hereby People were mutually serv'd, the one delivering his Money to the Person who wanted it at home, to receive the Value where his Occasions required it a∣broad.

42. But in this also it was difficult for particular Per∣sons to find out each others Conveniencies.

43. Therefore some Merchants applied themselves to study the Advantages of different Exchanges, and made it their Trade to furnish all People according to their De∣mands.

44. But whensoever the Demands for Bills to any place is greater, than that these Exchangers can find other Re∣mittances to imburse their Correspondents, they are then necessitated to transport so much in Bullion as will make the Ballance.

45. And here again it may be Noted, That in this Case they are not to have regard to the Computations of their own Money, but to the Value that the Foreign Nation puts upon the Weight.

46. The Exchanger also takes such a Consideration from the Remitter, as may not only pay his Charge and Hazard, but also redound to his Profit.

47. Yet this Praemio, or Advance on the Exchanges can∣not be great, unless (as is aforesaid) upon some extra∣ordinary Emergencies.

48. Because People would then rather chuse to send their own Bullion to answer their particular Occasions.

CHAP. V.

Of the Rising and Falling of Exchanges and Bullion.

49. AS we have before said, That Bullion is capable of a small Rising and Falling in Price.

50. Exchanges are also reciprocaly subject to the same Alteration; the one being commonly influenced by the other.

51. And in the Commerce of most Countries there are Times and Seasons when the Exchanges are subject to rise and fall.

52. At such times when Ships usually come to carry off the Product of any Countrey, the Exchanges are wont to Rise; but when that Demand ceases, the Exchanges gene∣rally Fall.

53. These are the Occasions by which Bullion and Ex∣changes do ordinarily come to Rise and Fall; but these Alterations, as before Noted, cannot be great.

54. Yet there are some extraordinary Emergencies whereby the Exchanges, and consequently Bullion, may come to Advance much more considerably.

55. As when any Nation shall become so profuse as to Expend more of the Product of other Commodities, than the Value of the Commodities they send abroad.

56. Or if being engaged in a Foreign War, they shall be obliged to maintain an Army out of their own Coun∣trey, the Charge whereof shall come to exceed the whole Ballance of their Trade.

57. In either of these Cases 'tis evident, That what the Value which that Nation sends to Foreign Countries shall fall short of the Expence, must unavoidably be sent out in Bullion.

58. And as this will first cause the Exchanges to Rise extravagantly, so the necessity of purchasing Bullion to Export for the satisfying the Over Ballance of their Trade, will of Consequence cause an Advance upon the Price of Bullion.

59. Neither can such a Nations Raising the Computa∣tion of their Coins, or Abasing of their Allay, prevent the sending out One Peny the less; because there is no other Medium of paying the Over Ballance: And therefore the Exchange will infallibly Rise proportionable to the same Alteration they shall make in their Coins; because (as is before Observed) Foreigners will only respect the Weight of the Bullion we bring them, without having any regard to the Computations we put upon it.

60. Such a Nation then must infallibly grow poor, if this Expence continue long; even as a Private Man will be Impoverished, when he spends more than his Income; though a Rich Man, or Nation, may hold it out longer than a Poorer.

CHAP. VI.

Of the Abuses of Money, and the Remedies.

61. THere is scarce any Nation that hath been free from the Practices of Ill Men to Corrupt and Abuse the Currant Coins.

62. And this is done either by Counterfeiting the same in baser Metals, or by Clipping or Diminishing the true Moneys.

63. Either of these are made Capital Crimes in all Go∣vernments.

64. To prevent the Counterfeiting, the Government

usually Employ the most curious Artists to make such Stamps as may not easily be imitated.

65. So that for the most part, this Abuse is discovered by those that are skilful in the Knowledge of Money.

66. Yet there are some Counterfeits so neatly done, that even the most skilful are sometimes deceived by them.

67. To obviate which there is no means so certain as to try the Money by Weight; for there is such a difference between the Weight of Metals as may Discriminate the Fraud.

68. If any shall Attempt to make their Counterfeit Pie∣ces of the due Weight, they will so much differ in Breadth or Thickness, as may make it discernable by the Eye: And People that want that Judgment, may as well keep a Pair of small Calliper Compasses as a Pair of Scales, a Trial by both which would infallibly discover all Frauds. And then the False Pieces might be ordered to be immediately bro∣ken, and the Offerer questioned how he came by them.

69. And this Method would not only destroy all the Bad Money as fast as it should be Discovered; but also so soon hinder the Vent of it in Quantity, that it must utterly dis∣courage the Undertakers from Proceeding in a Business of that Hazard, when they could make but small Earnings of it.

70. The Clipping of the Coins can never be introduced, but through the Neglect of the Government.

71. Yet this Mischief hath proceeded so far in some Countries, as to spoil a great Part of the Currant Coin.

72. And though several Methods may be Attempted to prevent it, yet none can ever prove Effectual, but the Cal∣ling it all in, and Causing it to be New Coin'd, and the Loss made up to the Proprietors at the Publick Charge, Prohibiting the Passing of any such for the future.