CHAP. VII. The Diversity of Gain by Forein Trade. (Book 7)
IN the course of Forein Trade there are three sorts of Gain, the first is that of the Common-wealth, which may be done when the Merchant, (who is the Principal Agent therein,) shall lose. The second is the Gain of the Merchant, which he doth sometimes justly and worthily effect, although the Common-wealth be a loser. The third is the Gain of the King, whereof he is ever certain, even when the Common-wealth and the Merchant shall be both lofers.
Concerning the first of these, we have al∣ready sufficiently shewed the Ways and Means whereby a Common-wealth may be Enriched in the course of Trade; whereof it is needless here to make any repetition, on∣ly I do in this Place affirm, that such happi∣ness may be in the Common-wealth, when the Merchant in his particular shall have no occasion to rejoice. As for Example, suppose the East-India Company send out one hund∣red thousand Pounds into the East-Indies, and receive home for the same the full value of three hundred thousand Pounds; Hereby it is evident, that this Part of the Common∣wealth is trebled, and yet I may boldly say that which I can well prove, that the said Company of Merchants shall lose at least Fif∣ty thousand Pounds by such an adventure, if the returns be made in Spice, Indico, Calli∣coes, Benjamin, Refined Saltpeter, and such other bulky Wares in their several Proporti∣ons, according to their Vent and Use in these parts of Europe. For the Freight of Shipping, the Insurance of this Adventure, the Charges of Factors abroad, and Officers at home; the Forbearance of the Stock, His Majesties Customs and Imposts, with other petty Charges incident, cannot be less than two hundred and fifty thousand Pounds, which being added to the Principal, produceth the said Loss. And thus we see, that not only the Kingdom, but also the King by his Customs and Imposts may get notoriously, even when the Merchant notwithstanding, shall lose grievously; which giveth us good occasion here to consider, how much more the Realm is enriched by this noble Trade; when all things pass so happily, that the Merchant is a Gainer also with the King and Kingdom.
In the next place I affirm, that a Merchant: by his laudable endeavours, may both carry out and bring in VVares to his Advantage, by Selling and Buying them to good Profit, which is the end of his Labours; when ne∣vertheless, the Common-wealth shall decline and grow Poor by a Disorder in the People, when through Pride and other Excesses, they do consume more Forein VVares in value than the Wealth of the Kingdom can satisfie and pay by the Exportation of our own Commodities, which is the very Quality of an Unthrift who spends beyond his Means.
Lastly, the King is ever sure to get by Trade, when both the Common-wealth and Merchant shall lose severally as afore-written, or jointly, as it may and doth sometimes happen, when at one and the same time our Commodities are over-ballanced by Forein Wares consumed, and that the Merchant's success prove no better than is before declared.
But here we must not take the King's Gain in this large sense, for so we might say that his Majesty should get, although half the Trade of the Kingdom were lost; we shall rather suppose that whereas the whole Trade of the Realm of Exportations and Importations, is now found for to be about the Yearly value of Four Millions and a half of Pounds; it may be yet increased Two hundred thousand pounds per Annum more by the Importation and Consumption of Forein Wares. By this means we know that the King shall be a Gainer near Twenty thousand pounds, but the Common-wealth shall lose the whole Two hundred thousand Pounds thus spent in Excess. And the Merchant may be a Loser also when the Trade shall in this manner be increased to the Profit of the King; who, notwithstanding, shall be sure in the end to have the great∣est Loss, if he prevent not such Unthrifty Courses as do impoverish his Subjects.