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 LETTER to a Minister of State, further Explaining the foregoing Aphorisms, and Applying them to the present Circumstances of this Nation.

May it please your Honour,

OBserving the Remedies that have been Proposed for the Preventing the Carrying out the Bullion of this Kingdom, and Reforming that intoler∣able Abuse of Clipping our Money, to be different from my Apprehensions thereof; and the Difficulty there is to convince People by Discourse, That the Abasing of our Coin, or Raising the Value of our Currant Money, would prove no effectual Means for the Remedying of the former, made me think of Digesting my Sentiments thereof into Writing; thereby to give such Men who look no further than the out Side, and search not into the Bottom of things, a clearer Understanding of what Money is in its own Nature, and how it is subject to Al∣ter in its Value, by the Various Influencies of Trade and Exchanges: But then I found it would be absolutely Necessary to give the General Notions of all these, and to shew how they stood in Relation each to other.

And this I have Attempted by way of Aphorism, because I have thought that the most Concise Method of Arguing; and which (if the Writer be not Mi∣staken in his Propositions) cannot fail of Leading People to the Truth, without a Multitude of Words, which in Discourses of this Nature especially, doth more often Puzle the Cause than give a Clear Understanding of the Matter.

Such then as I have been able to make them, I take

the Liberty humbly to Offer them to your Honours Pe∣rusal, with a Resolution never to trouble the Publick with them, unless they may seem so Valuable as to pass the Test of your Honours Judgment.

;Yet for as much I have been Necessitated to confine my self to Shortness, and only carry on my Argument in General Terms, I think it needful to add some few Remarks, partly for Explanation, and partly to In∣large the Discourse with some necessary Additions Ap∣plicable to the present Circumstances of our Nation, which the Brevity of the Aphorisms would not admit: With which I shall proceed in order.

In the Second Chapter then I take Notice of the dif∣ferent Managements of Trade between Nation and Na∣tion, and conclude that the Profit of a Trading Peo∣ple is not to be Reckon'd from their Trade with any one Countrey, but from the Ballance of their Trade in General.

To Illustrate which Argument, I will Instance in the Trade of this Nation with France in time of Peace, from whence we brought a far greater Value of their Com∣modities than they Receiv'd of ours; so that the Bal∣lance of that Trade was in that respect Apparently to our Loss: Yet when it shall be Considered that we sent a greater Over Ballance of our Product to Spain, Holland, and Germany, than we Required of their Productions; it will appear, that we had no need of sending out our Bullion, but that we could Supply our Occasions in France, by Remitting thither by Bills of Exchange, the Over Ballance of Trade which we had with those Coun∣tries. And the Advantages we made to our selves by the French Trade was, That it Employ'd our Navigation, and caused the Money of such who Consumed those

French Commodities to Circulate among Merchants, and all Tradesmen that had a dependance upon that Bu∣siness, and to Contribute considerably to the Publick Revenues arising by the Customs; neither may we ex∣pect to drive a Publick Trade in the World without some such seeming Disadvantages, with more Reason, than that a Private Man should Refuse to Buy of his Neighbour what his Necessity Requires, and he cannot so conveniently procure from another, because that Neighbour hath no Occasion to lay out any of his Mo∣ney with him.

Yet to Apply this last Instance to our Trade with France, 'tis but Common Reason that we should rather chuse to reject theirs, and use our selves to the Drinking of the Wines of Spain and Portugal, since they take off much more of our Commodities than the French do; and more especially, since the last Prohibition with France hath shewn us, that we might find out Wines in those Countries, which are better in their own Nature, and with use become even as pleasing as those of France. And it might be a Thought not unworthy the Conside∣ration of our Government, whether we may not Rea∣sonably lay Four times the wonted Duty on French Wines, when ever that Trade shall come to be Open; to continue, until that Prince shall Recall that extrava∣gant Duty which before the War he laid upon our Ma∣nufactures, amounting to little less than a Prohibition.

What I Hinted in the Twenty third Aphorism of this Chapter, may be well Instanced in our Trade to the In∣dies, whether we sent considerable Quantities of Bul∣lion; for which many People were apt to Censure that Trade as wholly Prejudicial to the Nation: Yet if it shall appear, that if that Business were well Managed,

we should be able to send so much of the Goods brought from thence to our Neighbour Markets, as would re∣turn us more Money and Moneys Worth than what we first sent out for India; they will then be fully Convinc'd that such Trades are not to be declin'd: And that we have so done, is well known to those who understand Trade.

From the Consideration of this Chapter also, may well be Argued the Irrationality of any Peoples making severe Laws to Prohibit the Transportation of their Bul∣lion: For the Experience of all the World shews, That wheresoever the Advantages of Trade require it, Peo∣ple do and will find ways enough for the Conveyance of a Commodity whose Bulk is so small. Neither can it be any Prejudice to an Industrious Trading Nation, because the more Demand there is for its Exportation, the higher the Price will be, and that never fails to En∣courage the Merchants, whose Trade it suits with, to Supply the Market with more.

But if any one will take Occasion here to tell me, that People under this Liberty, may come to carry out more Bullion than they bring in; I have shewn in the Fifth Chapter, That any Nation that shall continue to do so, must infallibly ruine themselves in time: But then I cannot call that an Industrious, but an Improvident Nation.

The Third Chapter is to Convince such of their Mi∣stake, who may think that Foreigners are Governed by the Computation or Value we put upon our Coins; and that if we Raise its Worth amongst our selves, they must be oblig'd to Esteem it at the same Rate, or else cannot afford to carry it from us; whereas I think no∣thing is more plain, than that the Weight is the only True Standard of its Value; and if we should make our

Crowns to pass for Five Shillings and Six Pence, the Ex∣change must Advance just Ten per Cent. more to answer it; because (as it is shewn in the Fifth Chapter) if we have occasion to send out Bullion for the payment of our Bills, we must send so much in Weight as will make up the Va∣lue which Foreigners expect from us; and consequently not one Ounce the less will be sent out while our Occa∣sions require it Abroad: And then the effect upon our selves will be, That every Man will be really so much the Poorer, as he shall become Possessour of so much the less Weight of Bullion for the Commodities he parts from: Which I take to be a general Declination of Riches in a Nation.

The Fourth Chapter shews the Cause and Nature of Exchanges; and that though some Men have skill to Ma∣nage that kind of business to a competent Advantage, yet there can be no such Miracles wrought by it, as an Ancient Writer hath imagined; because it is wholly in∣fluenced by the Ballance of Trade between Nation and Nation; and when that falls short, it must be supplied by the sending of Bullion: For that there must always be a Value to answer the Draught, or else the Credit will be broken: For the Drawing and Re-drawing without a Fund, is only a Trick of necessitous Men, and if con∣tinued will end in Loss and Ruine.

The Fifth Treats of the Rising and Falling of Ex∣change and Bullion: And what I shall here take Notice of on that Head, is the extraordinary Emergencies which cause a considerable Advance thereon; and this can ne∣ver happen, but when a Nation hath occasion to send out more Bullion than it receives in from Abroad: And these may be reckon'd the Unnatural Affects of Trade, and are like Convulsions in the Body, the continuance

whereof cannot but be Dangerous; and the way to Re∣medy them, is not to begin with the Effect (as I have before Observed, in shewing the Deficiency of Prohibit∣ing Exportation, or Advancing the Value of the Coin, &c) but to apply such means as may take away the Cause.

How the Case is with us is no Mystery, because 'tis Evident, That the Charge of Maintaining our Army Abroad doth exceed the Ballance of our Trade; yet the inevitable Necessity for that is such, That no Man who loves his Countrey can grudge the Expence, because we are thereby preserved from the Devastations, Plun∣derings, Sackings, Burning, and Slaughter, which we must have been Subject to, if the Seat of War had not been kept out of our own Countrey.

And indeed nothing could have given so great an Evidence of the incredible Riches of this Nation, as the being able to bear so great a real Expence (for I call not that so which Circulates amongst our selves) so many Years, with so few Inconveniences as we have hi∣therto felt: So that we may yet think no worse of our selves, than we would say of a Nobleman that might have Ten thousand Pounds per Annum, and One hundred thou∣sand Pounds in his Purse, if he should be forc'd to Spend Fourty thousand Pounds of it in the Defence of his just Title to his Estate, that he yet remains in a good Con∣dition.

However the Continuation of this Expence must in time prove more Injurious; and therefore it cannot be amiss to think of some Expedients that might make the lengthening of the War less burdensom to us: To which I should freely offer my Mite, but that I fear to go be∣yond my Line; lest I might justly Incur the Censure due to such, who being over confident of their own Notions,

Expose themselves, by publishing their Thoughts, before they have tried the Soundness of them, by Conversing with other Men of better Judgments in those Matters than themselves.

But as to the business of Carrying out our Bullion, (excepting our present Occasion of Paying our Army Abroad) we of all Nations of Europe have least reason to be apprehensive of it; because our own Native Com∣modities are so Valuable in most Foreign Markets, that they turn to much more Profit than the Carrying of Money would.

The last Chapter Discourses of the Abuses of Money, and I think needs no Explanation till I come to the Six∣ty seventh and Sixty eighth Aphorism; and I will only add to that, That I think upon mature Consultation, such a Scheme might be fram'd from that Foundation, that might effectually answer the Design. For it is to be considered, That upon the New Coining of the Money, most Payments would be made in the Mill'd Crowns, and Half-Crowns, or in the Old Money of its true Weight; and People would immediately learn to Try all their Money, both by the Scales and the Calliper, so that few Pieces would escape Three Hands; for it would behove all People to be very Exact and Curious, both to avoid the Loss and the Suspicion that the offer∣ing Bad Money would subject them to. And though this Method at the first may seem troublesom, yet 'tis to be Considered that in paying Sums, there would be no need to try many Pieces, so that the trouble would indeed be less than now it is; besides the Loss would be avoided, and a little time would quite put a stop to it.

And I will here take Occasion to suggest a Thought which I have had for the Putting a Speedy End to the

Vexation, Trouble and Loss that People Daily Endure by the Abominable Money which they are forc'd to Receive; the Currant Cash of the Nation being in a manner quite Spoiled by Clipping, or by the introdu∣cing a sort of Counterfeit Money, even worse than that, which daily increases upon us, and will continue so to do as long as any Clipt Money shall be permitted to Pass.

I would Propose then, That the Government should Issue a Proclamation, Declaring, That for the putting a stop to the Abuses of the Money, the Laws should be put in Execution against any Person that should presume to offer any Clipt Money after a certain pre∣fixt Day.

But that for the ease of the People, Officers should be Appointed in the Tower of London, for that City, and Parts Adjacent; and a convenient Place should be Appointed by the Magistrates in all the Cities and Mar∣ket Towns through the rest of the Nation, where the like Officers should Attend to Receive in all the Good Clipt Money that should be brought them; and that they should Enter the Sum and Weight of every Mans Parcel in a Book, and Seal the same up in Bags, gi∣ving them as many Certificates as they please in Parch∣ment, to the Amount of the Sum they brought in.

These Certificates, with an Indorsement, should be delivered from Man to Man in Payments: But if any one should doubt the verity thereof, he might go to the Officer and Examine it.

If any Man shall Refuse these Certificates, and De∣mand to be Paid the Money in Specie, the Debter should only be obliged to carry him to the Officer, and calling for the Bag Certified, count it over to him

before the Officer, and so discharge himself; the Of∣ficer Sealing the Bag again, as before.

If any Persons should not like to have their Money kept in such Appointed Place, they should have li∣berty to keep it themselves, or lodge it where they please, but not to open the Seal but in the presence of the Officer: Yet it is rather to be supposed that the Money would be in less danger of Thieves, by being kept in a Strong Place, secured by the Publick, than if it were kept in Private Houses: Neither can the Sum be so large, as to Encourage a great number to make any attempt upon it; for there are above Eight hundred Market-Towns in the Nation, which having One thousand Pounds one with the other, would make Eight hundred thou∣sand Pounds; which perhaps may be double as much as will be found, out of London, and Three or Four of the other Cities; and 'tis certain that the most will always be in the largest Towns, and therefore most Secure.

The trouble of this will be less than might at first be imagined; for all people of business in the Countrey gene∣rally Meet at the Market, where the Officers should give their attendance: So that this business would be dispatcht with as much ease as people could do it at home, and with no hazard of losing by Bad Money. Neither would there be any injury offered to any Man, for he that will keep his Money himself may; he that is content to take the Endorsed Certificates, cannot be unsecure, because the Fund for them is unquestionable, being no less than the very same Money, which otherwise he should have received in Specie; and he that desires to receive his Money by Tale, as before, may continue to do so, only he must submit to the trouble of doing it before an Officer, which no honest Man can think too much for the preventing such a Mis∣chief.

Also when there may be Occasion to carry Money from one Place to another, the Person should have his Money Told over and Seal'd up a new, his Old Cer∣tificate Cancell'd, his Credit in the Book Discharg'd, and another Certificate given, mentioning to be car∣ried to such a Place; and the Officer, Appointed for that Place, should Receive it, Enter it in his Book, and Give him Certificates thereof as before: But to prevent A∣buses, any Person, not well known, should be Obliged to bring some Credible Person of the Place to Vouch for his Honesty.

Some may Object, That Money will be wanting to Supply the Running Cash; but the Project it self An∣swers them, if they Consider, That all the Money conti∣nues to have the Effect of Running Cash; for every one may take the Certificate as Low as he pleases; and then the Circulation of a very little Broad Money, will serve the Occasion of daily Expences; of which there could be no want: For besides, that most People will be able to Pick out some Broad Money out of the Par∣cels they have in their Custody; those people who have been able to keep Money by them, have made such sorry Money, as they are forc'd to take, serve for their Necessary Payments, and laid up the best; which they will not scruple to bring out, when they shall be Assured that no more can be Clipt. And from this Reason it may well be supposed, That the Quantity of Clipt Money will prove much less than is generally thought.

Yet if the want of Changing Money, as I may call it, proves somewhat troublesom in some Places, People might and would Invent Ways of helping themselves; and this might be much better born for a while, than

the Continuation of so great a Loss, which we see daily Growing upon us. As for the Poor, the Overseers may be Oblig'd to Change what small Matter they have out of the Parish Stock.

Also if this Method were put in Practice, an exact Account would be taken of all the Clipt Money in the Kingdom against the next Sessions of Parliament; which would much facilitate their Settling such a certain Tax upon the Publick, as would make good the Loss, and give every Man New Mill'd Weighty Money for the Clipt Money he had brought in; likewise the present Counter∣feit Money would be destroy'd, because 'tis all Clipt.

Neither need the Government be put to any Charge, for 'tis Presum'd, that no People who are Perplext with the Base Money, which now they must take, will be∣think the giving Two Pence in the Pound to be eased of that Trouble and Loss; which 'tis probable might De∣fray the whole Charge of this Management.

I will add but one thing more, and that is my Obser∣vation on the late Rise of Guineas amongst us, and the Ill Consequence that attends it.

The Reason that is pretended for this, is the Badness of the Silver Money; when as People should Consider, That 'tis their own Fault if they Receive the Counter∣feit Money; and for the Clipt, they may be sure to have it Exchang'd for Good Money without Loss, when the Parliament can Settle it; and then consequently (if not before) Guineas will fall again: But there will be no Reparation for the great Loss which such must suffer, who shall have Quantities of them Remaining on their Hands.

But some Argue, That Gold is Risen Proportionably, and therefore the Price of Guineas must keep up; and that

this doth not only keep our own Guineas at Home, but also cause them to be brought over to us from Holland and other Places whither they were carried.

But to Answer these, Gold is only Risen amongst us, because of the Rise of Guineas: And though this may make Gold to Advance also something in our Neighbour Countreys, when they see us so Imprudent to take it from them at so high a Price; yet their Advance is through our Demand, and we shall find in the end that we may Buy Gold too Dear; which our Neigh∣bours of Holland have Wit enough to know, and there∣fore they will Coin all the Gold of their own Countrey into Guineas for us, if we will give them (as we lately did) Five Ounces of our Standard Silver for a Guinea, which a little time before they would part with for Four Ounces: but as there is a Necessity for sending out Bullion for the Payment of our Army, so if this also continues, we may be sure to have but little Silver left in a short time; and both our Silver and the Exchange to Holland is already Advanced, yet more in our Dis∣favour by this Occasion. Neither shall we be so Rich as those People ima∣gine, by having such High Prized Gold in the stead on't; for those that Trea∣sure it, will find their Cof∣fers lighter than they would have been at the Old Rate, by near One Third; and those that should send it to India (for we send little or none to any other Parts) would find that those People

will give them no more of their Commodities for it, than it would Purchase when it Cost them but Four Pounds per Ounce at Home; and whether then it may not be more likely to Fall again to the Old Price, than to keep up, let all Prudent Men Judge. Moreover all that now have them, know that they are Held up at a Strain'd Value; and though they are forc'd to take them in Payment, or be without their Money, yet eve∣ry Man is willing to be rid of them as soon as he can: So that when once they begin to fall, all People will be for parting with them before they come Lower, and so they will come to tumble down faster than at first they Rose. And all these Inconveniencies are brought upon us by certain Tricking Men amongst us, that having the Command of large Cashes, do contrive, by such Means, the Raising great Advantages to themselves by the greater Injury of the Publick; and I am sorry to see that People are content so tamely to Submit thereto, and do not represent these Mischievous Practices to the Govern∣ment, in order to stir them up to Apply some speedy Remedy.

But before I have quite done, I will Offer One Re∣mark more, to shew that notwithstanding what any particular Government may do amongst their own People, it will yet be impossible to make a greater Ad∣vance on the Value of Silver and Gold through Europe; because the great Supplies thereof, which have been brought into these Parts of the World, since the Dis∣covery of those Rich Mines in America by the Spa∣niards, have made it much more Plenty than it was in former Ages; and while these Mines continue, we may always expect a greater Increase; by which

Means its Value may come to be less, but can never be more.

And let me add (though it be a Digression) That the Trading Nations do get the greatest Share of this; which is the Cause why we see that the Potentates of those Trading Nations, are become much more Powerful, being able to Maintain far greater Forces than they could in the last Age: Whereas on the contrary, we may Observe some o∣ther Great Governments, who throught the Extrava∣gant Expence of their own Treasure, and for want of Trade, and Industry to Acquire to themselves a Proportion of this General Increase of Riches, are extreamly Declin'd in their Strength, though per∣haps their Territories may not be much less, nor the People they Govern fewer than they were formerly.

May it please your Honour,

My Thoughts on these things would Carry me much farther; but when I Consider that I have al∣ready Toucht at divers Great and Weighty Mat∣ters with too Unskilful a Hand, I think I have Ad∣ventured but too far at the first Attempt, and there∣fore

shall Close my Discourse with a Good Obser∣vation made by a late Ingenious Author; That so Curious a Subject as Trade is, would not have want∣ed many Excellent Discourses, to shew the great Ad∣vantages it brings to a Nation, and the Proper Me∣thods to seek its Improvements; but that Men of Learning are but little Acquainted with it; and those that are in the Practice of it, do, for the most part, either want Ability or Leisure from their Private Af∣fairs to do their Countrey that Right. And though I have addicted my self to Search after the True No∣tions of these Matters, beyond many other Merchants, who have their Heads continually filled with Busi∣ness; yet I see my self so Defective in these Respects, that I can rather Wish, than ever Hope to be Master of those Accomplishments, that might Render me Ca∣pable of Expressing my Thoughts with less Difficulty to my self, and more Clearness to others; And from this Reason it is, that I can never Read over what I have Written, without Mending some Faults, or E∣spying others that I have not Skill enough to help: And I cannot but expect, that all Men, of your Ho∣nours Judgment, must find yet a great many more; for which I can make no better Apology than this, by Acknowledging my own Imperfections, and Beg∣ging your Honour only to have Regard to the Noti∣ons that I Aim at; neither in those dare I to be too Confident of all that I have Offered; but if your Ho∣nour shall think any of them to be Instructive, I hum∣bly pray you thereby to Esteem of the Good I De∣sign'd to the Publick, by doing what I was Able, and Offering nothing but what according to my pre∣sent

Understanding seems Right: And I Promise your Honour, That when ever I shall be Convinc'd to the contrary, I shall not only be willing to Retract my Er∣ror, but also to make Amends by doing better for the future, if ever I shall be Capable; and in the mean time I Crave Leave to Subscribe my self,

May it please your Honour,

Your Honours most Obedient Humble Servant.

Notes

• I am not Ignorant that it's com∣mon among Merchants to call the Ex∣change to Holland Falling, when the Dutch give fewer Schillings for our Pound, and this indeed may well be Reckon'd Falling in their Favour; but with respect to us, if we could for∣merly Purchase Thirty five Schillings for our Twenty Shillings, whereas we must now Pay Twenty five Shillings for the like Number of Dutch Schil∣lings, I am sure we may more Pro∣perly say 'tis Risen Twenty five per Cent. to us.
• Since Writing the above, I am Inform'd by very Worthy and Knowing Per∣sons, That within late Years, very Rich Mines of Gold have been Open'd in the East-Indies; so that we should not only have no need hereafter to send Gold thither, but that Gold might be brought from thence Purchas'd with Silver, to yield in Europe Sixty to Eighty per Cent. Profit; from whence we may certainly expect, That the Value of Gold must, in some short time, become of less Worth in Proportion to Sil∣ver than it hath been formerly.