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.

AN APPENDIX Offering some further Reasons against Raising the Value of our COIN.

THE foregoing Papers were written last Summer, in hopes that they might have been of Service, in order to the put∣ting some Stop to the daily Increasing Abuse of our Money, and the Injury accruing to the Nation by the Extravagant Rise of Gold: But finding that the Government did not think fit to meddle in so Weighty a Matter out of Parliament, the Publication was omitted till the Opening of the present Session.

But since my having finisht the former part of this Discourse, Mr. Lowndes, Secretary to the Right Honourable the Lords of the Treasury, and a Worthy Member of the present Honourable House of Commons, did me the Honour to shew me a Tract of his upon the same Subject; in which he hath given a very Exact Dedu∣ction of the various Alterations that have been made in the Coins of this Nation, since the first Institution of our Mints; shewing the Measures that have been taken from time to time for Regu∣lating the Abuses of the Money; and Proposing a Method for the Rectifying the present Defects thereof: The whole Discourse being most Ingeniously performed, and furnisht with many Excellent Notions on that Subject, worthy the Observation of all Curious Persons.

Yet, as he proposes that in Consideration of the present high Price of Bullion, our Money ought to be made adequate thereto, that thereby Encouragement may be given for People to bring in their Silver to the Mint, and that there may be no Temptation here∣after for the Melting down or Exporting our Coin: having already given my Opinion so contrary thereto in the foregoing Discourse, I cannot yet bring my Judgment to agree with him for the Raising

of our Money to 25 per Cent. above its former Value: although I will confess, That I think the System which he hath fram'd for the Effecting the Matter in that way, to be the most compleat that can be, if it shall be thought absolutely necessary for us to proceed upon the Foundation of Raising the Value of our Money.

And although I am not willing to contravert this Point with a Person, whose Abilities I esteem so much beyond my own; yet forasmuh as I expect this Matter will become the Serious De∣bate of the Parliament; and that I am very confident that that Worthy Gentleman will readily Acquiesce in whatsoever shall be thought most Expedient for the Publick Good; I cannot think it will be any Offence to him, if I here add some Reasons why I con∣tinue to Dissent from him in that Notion.

First then, I doubt it will not in the least measure prevent the Carrying out of our Bullion, or Exporting our Coin; because (as I have already shewn) if our Occasions shall continue to re∣quire more Money Abroad than doth arise from the Ballance of our Trade, there can be no other way of Supplying it, than by send∣ing the Overplus in Bullion; and this must be had in the full Quantity by Weight which shall be wanted: And therefore, if we should advance the Value of our Money, so as to make our present Crown pass amongst our selves for Seven shillings Six pence or more, the Price of our Bullion would yet be somewhat higher. For I believe it may be admitted for a certain Rule, That whenso∣ever there is such a Demand, the Price of Bullion will always advance something above our Coin'd Money, because of the Penalty and Hazard that attends the Melting or Transporting the latter; and yet notwithstanding that Hazard, we see People are not to be deterr'd from it, when a considerable Profit tempts them thereto, by the Price of Bullion rising much above it; so that it seems to me altogether as impossible to find out any Regulation that can keep our Silver, either Coin'd or Uncoin'd, at Home, whensoever our Necessities Abroad demand a greater Value than the produce of all our Merchandize Exported can furnish; as to take away the Effect, while the Cause remains.

Secondly, I think that an Advance of Twenty five per Cent. upon our Money, if it hath any Effect at all upon us, must tend very much to the Impoverishment of the Nation; to confirm which Opini∣on, two Dilemma's will offer themselves, and I know not how they can be avoided.

For, if the Species of our Coin be Rais'd to pass for one fourth part more than formerly, either the Price of the Product of our Lands and Labour will rise in the same Proportion thereto, or else they will be bought for one fourth part less than the due Weight of our present Coin.

Now if it may be suppos'd that our Product will rise in the same Proportion, then this Alteration will conduce nothing, ei∣ther to the Multiplying of the Currant Cash necessary for the Cir∣culation of our Trade (because every Man will have need of the same Quantity of Silver and Gold in Weight as before) or to the giving any Encouragement for the bringing in of Silver from Abroad, because it would really buy no more of our Goods to Transport than it did before: So that thus the Difference would be nothing more to us than in the Computation, and will only ap∣pear in the Swelling of the Figures of our Accompts.

But if this Alteration shall obtain, to Cause the Product of our Lands and Labour to be sold for the same Computation of Pounds, Shillings and Pence, as now, although the Coin will be one quarter part less in weight; it must consequently have a very fatal Influence upon the Trade, from whence we draw all our Wealth. For to instance in the Trade of Spain (because that is as the Fountain of Silver and Gold to all Europe) when the Mer∣chant shall come to find that his Bullion Imported thence, will purchase in England one quarter part of our Commodities more than formerly, the Encouragement by this extravagant Profit will be so great, That not only our own, but foreign Merchants also, will presently be at it, and bring all their Bullion hither to lay out in our English Goods. And this will certainly be a Brave Trade, and will seem to answer the end of drawing in Silver and Gold to us for a while: But what will follow? Why, in a few Months time, the multitude of Seekers after this profitable Trade, will have crouded the Spanish Markets with such gluts of our Goods, that they'll presently find out the blind side, and will infallibly take Occasion by the Over-plenty of Goods at Market, to beat down the Prices, even lower than the Twenty Five per Cent. which he hop'd he had gain'd by the Laying out his Money in England; nei∣ther will they ever rife again higher than just to afford such a Pro∣fit, pro rato, to the Money, which us'd to content the Merchant, when he formerly kept jogging on in his Spanish Trade: So here our violent Start will last but a little while, and ever after we must not expect, that the Product of our Nation will afford us, in Fo∣reign

Countries, any more than three quarter parts of the value it yielded before this Alteration.

But the Mischief will not end here; for Foreigners will not be hereby perswaded to part with what we want of their Product, for less weight of Bullion than they us'd to have before; so that if we formerly could afford to consume amongst our selves, above three quarter parts of the Produce of our Foreign Exports (which I doubt we did, and yet were good Gainers by our Trade too) we shall then come to spend more than our Income; which I am sure will be the way to impoverish us quickly, unless we alter our Course of Living, which a Nation that hath long been us'd to such Plenty, is not apt to be brought to.

Let us see then how this will operate amongst us at home: The Labourer and Manufacturer must come to take less weight of Silver for their Wages, and yet must continue to pay the same weight as formerly, for what Foreign Commodities they spend; whereby they will be reduc'd to a necessity of faring harder, and spending less in Provisions, which must cause the Product, and consequently the Rents of our Lands to fall in the same Proportion. The Gentle∣man then, who lives upon the Rents of his Lands, must expect they will fall one fourth part in their yearly Value, and yet he must give at least Twenty five per Cent more for all the Foreign Commo∣dities he spends, which to Persons of that Rank, may modestly be computed to affect them Ten per Cent. more; so that hereby they will be reduc'd above one third part of their Subsistance.

But what is yet worse, there will be a stop put to the Increase of our Riches arising from Foreign Trade, the only Source of Na∣tional Wealth; and that must reduce the Strength and Power of the Kingdom, and make us unable to resist the Insults of such of our Neighbours, who shall use more prudent Methods for the in∣troducing Plenty of Gold and Silver among them: And indeed I cannot determine wherein the Happiness of a Nation, Rich in that kind of Wealth consists, above others, which abound in plenty of all things necessary for human Life, only in that the former are en∣abled to sustain the chargeable Provisions of War, as it is now ma∣nag'd, when as the latter must be enforc'd to submit to the Oppres∣sions of others, for want of such means to defend themselves; there being nothing more plain, than that according to the present Con∣stitution of these Parts of the World, he that hath the longest Purse, will certainly have the longest Sword.

But here will now arise another Dilemma; for, either this Al∣teration must continue amongst us, or our Money will come to re∣vert to its former Standard of Value. If the Alteration continues, and have its effect, I think the fatal consequences shewn in the foregoing Argument cannot be avoided: But if the Coin shall, after such an Alteration, return again to its old adjustment, manifold injuries and inconveniencies must attend it, of which, I will offer a few Instances:

If a Man hath lent Two thousand pounds upon Personal or Land Security, the Debter shall upon this Regulation be able to pay off his Debt with such Money as will be really worth but One thou∣sand six hundred Pounds; and on the other hand, if a Man borrow Two thousand Pounds of this Regulated Money, and continue the Debt till the Money be again reform'd to its former Value, it will cost him Five hundred pounds more than he at first receiv'd, to pay off this Debt of Two thousand pounds. All Debts due from the Crown, will be paid to the Lenders in one fourth part less Value than the Money Lent; so likewise what Moneys the Crown may Borrow under the Regulation, must be paid again after the Reformation thereof, with the Addition of one fourth part Value more than Borrowed. All Tradesmen must on the Regulation, re∣ceive but three fourth parts real Value for all the Debts they have trusted out; but on the Reformation, all People that owe Money to the Tradesmen, must really pay one quarter part more than the Value of what they bought. Now as 'tis not to be thought but that this Loss and Gain will fall very unequally among the Mass of the People, according as the Accidents of their Affairs may bring them under the Influence of it; let us next Consider what Profit the Crafty Money'd Men may infallibly raise to them∣selves, by taking the Natural Advantages of such Alterations of our Money. Suppose then a Banker, worth Twenty thousand pounds of his own Estate, had a Prospect of this Rise, it will easily be allow'd, that such an one by Drawing in all the Money he could into his Hands, might certainly command Sixty thousand pounds, by which Sum he will immediately upon the Propos'd Advance, gain Fifteen thousand Pounds Profit, and whensoever he shall be Apprehensive of a Reformation of the Money to its old Stan∣dard, he may pay off his Debts in the Light Money, and lay out his own Estate on good Securities or Purchase of Lands, till it will bring him in the same Sum in Heavy Money, and so Secure him in the aforesaid Profit. In like manner, Foreigners may on

the Prospect of so large a Profit (besides the Common Interest) bring Money into our Nation to let out on Valuable Securities, while this Regulation continues; but when the same is Reform'd, will be paid again in Money worth Twenty five per Cent. more than what he Lent; which will be so much clear loss to the Na∣tion, in as much as they Carry away from us both Principal and Profit. I shall only Note further, That it will be in this as in the Case of Guineas, that as some will seem to get, and none to lose by it in the Beginning, the People will admit it to be introduc'd without any uneasiness; but when the Money shall come to be Re∣form'd again, the Loss will affect them so generally, that it may endanger the Raising of Mutinies and Disturbances among the People.

Thirdly, With Submission to better Judgments, I humbly con∣ceive that better and more effectual Methods may be provided, for the bringing down the Price of Bullion, and making it near Adequate to the Value of our Currant Coin; which (as that Worthy Gen∣tleman well Observes) will be the proper Means to prevent the Melting down of the one, and hindring the Exportation of th'other. And that would be by bringing our Affairs into such a posture, as that our Expences Abroad may be kept within the Compass of the Ballance of our Trade: For this, and this only, will be able to take away the Evil by the Cause; and is of that Absolute Necessity, that without it 'twill be impossible for us to Maintain an Army Abroad much longer, without being Drain'd of all the Riches in the Kingdom. Which being a Matter of that great Con∣sequence, if I should, (contrary to my Intent in the first Wri∣ting of these Papers) presume to Suggest my Thoughts of such Courses as may be requisite to be put in Practice in order to attain that End; I hope I shall at least deserve Pardon, if I may be mistaken in any of them; since the deep Sense I have of the Injury daily accrewing to the Nation under the present Methods, and my not having seen any thing of that Kind offer'd by Abler Hands, is what prevails upon me thus to Expose my Humble Opinion to the Scru∣tiny of Stronger Judgments. What then occurs to me as fit Measures to be taken, in order to bring our Expence within the Compass of the Ballance of our Trade, I shall recommend in the following Particulars:

1. By sending all Provisions necessary for the Sustenance of our Army Abroad, as full and compleat as we provide for our Seamen on Board our Ships; by which Means, and by Lessening the

Subsistence of the Officers to what should be but of absolute Necessi∣ty, Reducing also all their unnecessary Equipages (which would be much to their Advantage) 'tis probable we might Sustain our Army for less than one half of the Money we now pay A∣broad. If it should be Objected, That all such Provisions may be had Cheaper there than we can send them from hence; let it be con∣sidered, That if we lost Twenty per Cent. in the Cost (which is not to be suppos'd) the Nation yet Gains Eighty per Cent. by keeping so much Money at Home: for whatsoever is sent out of the Kingdom, is so much clear loss to it.

2. It might be Reasonable, That since the Maintaining so great an Army Abroad is very Injurious to us being an Island, That our Confederates the Dutch might be prevail'd with to make some Commutation with us, by their taking some Regiments off our Hands into their Pay, and we to take upon us and Excuse them from as much or more Charge in the Sea-Service: all which would be so much sav'd to us, whilst the Money Circulates amongst us at Home, and no Injury to them; because by a Treaty on this Foot, we might afford, even somewhat to lessen theirs, and heighten our own Quota of the general Charge of the War.

3. By Lessening our Expence of such Foreign Commodities which we can well be without; which may be Effected by Prohibiting for a time the Importation of all sorts of Red Wines, and all other sorts of Fruit and Wines, except such as are of the Growth of Spain or the Rhine; all sorts of Fine Linens, and all other Linens, except some few sorts to be particularly named; all kinds of Silk Manufactured Abroad (except what comes from India) and making it Penal to Sell or Wear such, or any sort of Foreign Lace* 1.1. For all these things, conducing but to Luxury, people may very well content them∣selves for a while without them, when the Publick Weal of the Kingdom is so much at Stake, especially since they will not be denied the Use of them but by degrees; for it may be suppos'd that the Stock which will be in the Nation at the time of such Prohibition may last Two Years; by which time 'tis possible we may be in a better Condition to Indulge them a∣gain. Moreover, by this Means the Product and Manufactures of our own Countrey will be highly Encouraged, and perhaps some of them be brought to that Perfection, as that we may

never more need Foreign of the same kind. If the Defect of the Revenue arising from the Customs should be Objected, we shall be hereby Enabled the better to Supply that and more by other Taxes.

4. By Reducing the price of Gold so, as that People may not make Profit, by sending out our Silver in Exchange for it.

5. By Regulating our Money, and bringing it to its just Stan∣dard; by which Means the Exchanges between us and our Neigh∣bours will be brought to be near equal: Because when the Money of any Countrey is of its True known Weight and Goodness, it can∣not fail to Obtain near the same Weight of the Money of any o∣ther Countrey alike Fine upon Exchange, Allowance being only to be made for the Time, Charge, Hazard and Profit of the Exchanger, which is called the Praemio, and (as I have before shewn) can never be great between Neighbour Nations; because People would then decline the Charge, and Transport their own Money, which com∣mon Sense tells every Man, must needs be Valued at its own Weight in any Countrey. However, to prevent Exchangers taking Advantage by the Demands of so great Sums, the Govern∣ment may enjoyn that all the Money they want Abroad, may be sent in Coin (by which we could lose but the Coinage, and that too is Earn'd by our own People) whenever they cannot get it Return'd by Exchange at a certain Moderate Rate to be set; and this would Infallibly keep a Just Regulation upon the Prices of Bul∣lion and Exchanges, and Consequently bring more Silver to the Mint, especially if some small Encouragement of Two or Three per Cent. were given by the Publick, when we find Running Cash Scarce among us.

6. By taking more Care in the Protection of our Trade than hitherto hath been; for perhaps what we have Lost this Year by our East and West-India Ships, would not have put us less than a Million Value into Foreign Parts; and that would have sav'd us the sending out of the same Value in Silver; which if it were duly Considered by our Government, they might easily be perswaded, That no part of the Publick Charge could be better employ'd for the Service of the Nation, than in taking due Care of our Mer∣chants Ships.

By what I have said then, I hope it will be evident to all Men that are Solicitous for the good of their Countrey, That unless these or such like Methods are taken, whereby we may be made able to Support our Foreign Expence, without being Oblig'd to

send out more Silver Yearly than we Receive in from the Product of our Trade with other Countreys, the Scarcity of Bullion a∣mongst us will become so great, that we shall soon be put under an Incapacity of Maintaining the War. And, I believe, I may further presume to say, That the Nation might be able Longer, and with more Ease, to bear Seven Millions per Annum in Taxes, which should only be Expended, and have their Circulation a∣mongst our selves, than to pay but one Million per Annum, to be Exported in Silver while the Ballance of our Trade could bring us in none. But could we once Effect this great Thing, of making the Product of our Foreign Trade Support our Foreign Expence, the War would not make the Nation Poor though it should last these Seven Years: And I hope this short Essay hath given a Spe∣cimen, how it may be possible for us to do so, if we have Virtue enough to Retrench our Luxury, and Manage our Affairs with Prudence and Integrity.

And now, though I have done with this Argument, I cannot yet finish, 'till I have added a further thought touching the Refor∣mation of the Money, in which I heartily agree with that wor∣thy Gentleman, earnestly to recommend it as a Matter of Necessi∣ty, to be done with as much Speed as Possible; neither do I think, there can be a better Method than what he hath proposed, by Erecting Mints and Officers to Receive in, and New-Coin the Mo∣ney in divers parts of the Kingdom: Yet I will beg leave to offer as my humble Opinion, That we need not at present be over Solicitous for the Coining more Silver than shall be Voluntarily brought in; nor for the delivering to the Proprietors more New-Coin'd Money than the Weight of the Silver they bring; and for the Remainder, to give them Tickets Payable with Interest, upon a certain Fond to be settled for that purpose, till the Nation may better Spare Money to discharge the Principal; which would cer∣tainly be more Currant than Money it self, by the constant grow∣ing of the Interest.

But I know the Doubt is, That we shall not then have Money enough to Circulate in Trade: In Answer to which, I would ob∣serve, That Money may be considered to have a Threefold Use, viz. for Treasure, or Hoarding up; for Supplying the Use of Trade in Gross Sums; and for going to Market, or small Expen∣ces. The Possessors of the first sort can never want Money, and so they may be out of our Care. The Second is what requires the greatest Regard: And yet, even now, when Silver Money is

the most scarce that ever was known in our time, People do by means of the Plenty of Gold, and the help of Goldsmiths and Bank-Notes, for ought I can perceive, make their Payments well enough: From whence I am inclin'd to think, that when, be∣sides the present Banks, the Land Banks also (which are now in a fair way of being Established) come to be opened, they will Supply the place of Running Cash as Largely, as ever it was in the Plentiest of Times; for I cannot but think, that Lands securely settled will be esteem'd so Certain and Valuable a Fond for a Bank, that it must obtain as Solid a Credit, as if the whole Value were Coin'd into Money; and that it will become no less Service∣able in Trade. And when I further consider, that our Clipt Mo∣ney of the True Coin, was Plenty enough before the rise of Gui∣neas, and the Introduction of the Counterfeit Money that is now so Common, but soon after did for the most part vanish away; I am ready to Conclude, that upon the Apprehension of its being Called in, and the Loss made up by the Government, People chose to Lay it by, and make the Guineas and False Money serve for their Running Cash, as what they were willing to be rid of, as soon as they could, for fear of a Loss at last; but in as much as the Clipt Money is not worth the Melting down, I expect it will be brought out again in greater Plenty than People may imagine from the present Appearance of it, when it shall be Called in to be Chang'd; neither is it to be doubted, but that considerable Quantities of the Old Unclipt Money will appear again, when our Coin shall be Regulated: So that I am of the Judgment, that by all these Means, the Circulation of the Larger Payments will become much easier than now: And then for the Lesser Expences, so small a Quantity will Supply that Occasion, that it cannot be wanting.

FINIS.

Notes

• * 1.1

  I know this may be Thought Hard to some People, whose Trades chiefly De∣pend upon such Commodities: But I think we ought to have more Regard to the Publick Good of our Countrey, than to any such, who will not be Content for its sake to Divert their Trades, and Shift as well as they can for a Year or two.