Money And Trade Considered by John Law - 1705
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Money And Trade Considered by John Law

Money and Trade Considered
With a Proposal for Supplying the Nation with Money
by John Law
1705

Money and Trade Considered with a Proposal for Supplying the Nation
with Money.
Edinburgh.
Printed by the Heirs and Successors of Andrew Anderson, Printer to the
Queens most Excellent Majesty,
Anno DOM. 1705.

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Money And Trade Considered by John Law - 1705 Money And Trade Considered by John Law - 1705 Document Transcript

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  • The Robert E. Gross Collection A Memorial to the Founder of theBusiness Administration Library Los Angeles
  • MONEY AND TRADE con sidered: WITH A PROPOSAL FOR SUPPLYING THE NATION WITH MONEY. FIRST PUBLISHED AT EDINBURGH MDCCY. BY THE CELEBRATED JOHN LA W, Esq; AFTERWARDDIRECTOR TO THE MISSISIPI COMPANY. GLASGOW, PRINTED AND SOLD BY R. & A. FOIJLI MD CCL.
  • MONEY AND TRADE CONSIDERED.THere arefeveral propofals of- ferd to remedy the difficultiesthe nation is under from the greatfcarcity of money. That a right judgment may bemade, which will be mo ft fafe, advan-tageous and practicable ; it feemsneceffary, i. that the nature ofmoney be inquired into, and whyfilver was ufed as money preferableto other goods. 2. that trade beconfidered, and how far money affectstrade. 3. that the meafures havebeen ufed for preferving and increaf-ing money, and thefe now propofed,be examined.
  • 4 i MONEY AND TRADE C H A P. I.Hoiv goods are valued, of barter, of/liver ; its value as a metal; its qualities fitting it for money, and of the additional value it received from being ufed as money. Goods have a value from the ufesthey arc applyed to ; and their valueis greater or leffer, not fo much fromtheir more or lefs valuable, or necef-fary ufes, as from the greater orleiTerquantity of them in proportion to thedemand for them, example; water isof great ufc, yet of little value; be-caufe the quantity of water is muchgreater than the demand for it. dia-monds are of little ufe, yet of greatvalue, becaufe the demand for dia-monds is much greater, than thequantity of them. Goods of the fame kind differ invalue, from any difference in their
  • CONSIDERED. 5quality, one horfe is better than a-nother horfe. barley of one coun-try is better than barley of anothercountry. Goods change their value,fromanychange in their quantity, or in thedemand for them. if oats be ingreater quantity than laft year, andthe demand the fame, or leffer, oatswill be lefs valuable. Mr. Locke fays, the value of goodsis according to their quantity in pro-portion to their vent, the vent ofgoods cannot be greater than thequantity, but the demand may begreater : if the quantity of winebrought from France be a 100 ton,and the demand be for 500 ton, thedemand is greater than the vent } andthe 100 ton will fell at a higher price,
  • 6 MONEY AND TRADEthan if the demand were only equalto the vent, fo the prices of goods arenot according to the quantity in pro-portion to the vent, but in proportionto the demand. Before the ufe of money wasknown, goods were exchanged bybarter, or con tract; and contracts weremade payable in goods. This ftate of barter was inconve-nient, and difadvantageous. I . hewho defired to barter would not al-ways find people who w anted r thegoods he had, and had fuch goods ashe defired in exchange. 2. Contracts taken payable ingoods were uncertain, for goods ofthe fame kind differed in value. 3. There was no meafure bywhich the proportion of value goods
  • CONSIDERED. "Jhad to one another could be known. In this ftate of barter there waslittle trade, and few arts-men. thepeople depended on the landed-men.the landed-men laboured only fomuch of the land as ferved the occa-fions of their families, to barter forfiich neceflaries as their land did notproduce ; and to lay up for feed andbad years, what remained was unla-boured ; or gifted on condition ofvaffalage, and other fervices. The loffes and difficulties thatattended barter, would force the lan-ded-men to a greater confumption ofthe goods oftheir own product, and alefler confumption of other goods ; orto fuplpy themfelves, they would turnthe land to the product of the feve-ral goods they had occafion for;tho*
  • 8 MONEY AND TRADEonly proper to produce of one kind,fo, much of the land was unlaboured,what was laboured was not employdto that by which it would have turnedto molt advantage, nor the people tothe labour they were mod: fit for. Silver as a metal had a value inbarter, as other goods ; from the ufesit was then applyd to. As goods of the fame kind differedin value, fo filver differd from filver,as it was more or lefs fine. Silver was lyableto a change in itsvalue, as other goods, from anychange in its quantity, or in the de-mand for it. Silver had qualities which fitted itfor the ufe of money. i . It could be brought to a ftand-
  • CONSIDERED. 9ard Infinenefs, fo was certain as to itsquality. 2. It was eafie of delivery. 3. It was of the fame value in oneplace that it was in another; or dif-fered little, being eafie of carriage. 4. It could be kept without lofsor expence ; taking up little room,and being durable. 5. It could be divided withoutlofs, an ounce in four pieces, beingequal in value to an ounce in onepiece. Silver having thefe qualities, tisreafonable to think it was ufed asmoney, before it was coined, whatis meant by being ufed as money,is, that filver in bullion was the mea- fure by which goods were valued: the value by which goods were exchanged: B
  • IO MONEY AND TRADEand in which contracts were madepayable. He who had more goods than hehad life for, would choofe to barterthem for filver, tho he had no ufe forit; becaufe, filver was certain in itsquality : it was eafie of delivery: itcould be kept without lofs or expence:and with it he could purchafe othergoods as he had occafion,in wholeor in part, at home or abroad, filverbeing divifible without lofs, and ofthe fame value in different places.If A. B. had ioo fheep, and de-fired to exchange them for horfesC. D. had 10 horfes, which wereequal to,or worth the ioo fheep, andwas willing to exchange : but as A.B. had not prefent occafion for thehorfes, rather than be at the expence
  • CONSIDERED. IIof keeping them, he would barterhis fheep with E. F. who had thevalue to give in filver, with which hecould purchafe the horfes at the timehe had occafion. Or if E. F. had not filver, butwas fatisfied to give his bond for thefilver, or the horfes, payable at thetime A. B. wanted them ; A. B.would choofe to take the bond paya-ble in filver, rather than in horfesbecaufe filver was certain in quality,and horfes differed much, fo filverwas ufed as the value in which con-trails were made payable. Silver was likewife ufed as themeafure by which goods were valu-ed, becaufe certain in quality, if A.B. hadaioo weight of lead, and de-fired to exchange it for barley, the B 2
  • 12 MONEY AND TRADEway to know what quantity of barleywas equal in value to the lead, was bythe filver. if the ioo weight of leadwas equal to five ounces of tine filver,and 5 ounces of fine filver equal to 20bolls of barley, then 20 bolls wasthe quantity of barley to be given inexchange for the lead. Silver being eafie of carriage, foequal in one place to what it was inanother; was ufed as the meafureby which goods to be delivered indifferent places w ere r valued. If apiece of wine was to be delivered atGlafgow by A. B. merchant there,to the order of C. D. merchant inAberdeen: and the value to be delive-red in oats at Aberdeen by C. D. tothe order of A. B. the wine couldnot be valued by the quantity of oats
  • CONSIDERED. 13k was worth at Glafgow, nor the oatsby the quantity of wine they wereworth at Aberdeen, wine or oatsmight differ in quality , or be more orlefs valuable at the one place than atthe other, the way to have knownwhat quantity of oats was equal to thewine, was by the quantity of filvereach was worth at the places theywere to be delivered, if the piece ofwine was worth at Glafgow 20 ouncesof fine filver, and 20 ounces of finefilver worth 50 bolls of oats at Aber-deen then 30 bolls w^as the quantity ;of oats to be given there in return forthe wine. Silver being capable of a ftamp,princes, for the greater convenienceof the people, fet up mints to bring itto a ftandard, and ftamp it; whereby
  • 14 MONEY AND TRADEits weight and finenefs was known,without the trouble of weighing orfyning ; but the ftamp added nothingto the value. For thefe reafons filver was ufed asmoney ; its being coined was only aconfequence of its being applied tothat ufe in bullion, tho not with thefame convenience. Mr. Locke and others who havewrote on this fubject,fay, the gene-ral confent of men placed an imagi-nary value upon filver, becaufe of itsqualities fitting it for money, I cannot conceive how differentnations could agree to put an imagi-nary value upon any thing, efpeciallyupon filver, by which all other goodsare valued ; or that any one countrywould receive that as a value, which * Locke p. 3 i . upon intereft, and p. I . upon money.
  • CONSIDERED. 15was not valuable equal to what it wasgiven for ; or how that imaginary va-lue could have been kept up. but,fuppofe France receiving filver at animaginary value, other nations recei-ved it at that value, becaufe received Coin France then for the fame reafon :a crown paffing in France for j6 Sols,fhould pafs in Scotland for 76 pence,and in Holland for 76 Stivers, buton the contrair, even in Francewhere the crown is raifed, tis worthno more than before when at 60 Sols. It is reafonable to think filver wasbartered as it was valued for its ufes asa mettal, and was given as money ac-cording to its value in barter, theadditional ufe of money filver wasapplied to would add to its value, be-caufe as money it remedied the dif-
  • l6 MONEY AND TRADEadvantages and inconveniencies ofbarter, and confequently the demandfor filver increafing, it received anadditional value equal to the greaterdemand its ufe as money occafioned. And this additional value is nomore imaginary, than the value fil-ver had in barter as a metal, for fuchvalue was becaufe it ferved fochufes, and was greater or leffer accor-ding to the demand for filver as amettal, proportioned to its quantity,the additional value filver receivedfrom being ufed as money, was be-caufe of its qualities which fitted it forthat ufe ; and that value was accordingto the additional demand its ufe asmoney occafioned. If either of thefe values are imagi-nary, then all value is fo, for no goods
  • CONSIDERED. IJhave any value, but from the ufesthey are applyd to, and accordingto the demand for them, in proporti-on to their quantity. Thus filver having a value, andqualities fitting it for money, whichother goods had not, was made money,and for the greater convenience ofthe people was coined. The names of the different piecesmight have been number number i .2. and fo on ; number 60 wouldhave been the fame as a crown ; forthe name and (tamp was only to cer-tify, that the piece had fuch a quan-tity of filver ink, of fuch a finenefs. Goods of any other kind thathave the fame qualities might then,and may now be made money equalto their value, gold and copper may C
  • Itf MONEY AND TRADEbe made money, but neither with fomuch convenience as filver. pay-ments in copper being inconvenientby reafon of its bulk; and gold notbeing in fo great quantity as to fervethe ufe of money, in countries wheregold is in great quantity, it is ufed asmoney ; and where gold and filverare fcarce, copper is ufed. Gold is coined for the more eafieexchange of that metal, and copperto ferve in fmall payments ; but filveris the meafure by which goods arevalued, the value by w hich goods are Texchanged, and in which contractsare made payable. As money encreafed,thedifadvan-tages and inconveniences of barterwere removed the poor and ; idle wereemployed, more of the land was la-
  • CONSIDERED. ipboured, the product encreafed, ma-nufactures and trade improved, thelanded-men lived better, and the peo-plewith lefsdependanceon them. chap ir.Of Trade, and how far it depends on money, that the increafe of the people depends on Trade, ofexchange. Trade is domeffick, or foreign,domeftick trade is the imployment ofthe people, and the exchange of goodswithin the country. Foreign trade has feveral branches. i. The product and manufacturebeing more than the confumption, apart is exported, and in return foreigngoods are brought home. 2. Selling the goods exported at oneport, and loading there to fell another;whereby a greater return is made,than if the goods exported had beencarryd directly there.
  • 20 MONEY AND TRADE 3. Bringing home the product andmanufacture of other countries, fromwhence, and when they are cheap ;to fnpply countries where, and whenthey are dear. 4. Bringing home the product ofother countries, and exporting it inmanufacture. 5. Freighting,orhireingoutfhips. Domeftick and foreign trade maybe carried on by barter; but not forfo great a value as by money, norwith fo much convenience. Domeftick trade depends on themoney, a greater quantity employsmore people than a lefTer quantity,a limited fum can only fet a numberof people to work proportioned toit, and tis with little fuccefs laws aremade, for imploying the poor or idle
  • CONSIDERED. 21in countries where money is fcarce;good laws may bring the money tothe full circulation tis capable of, andforce it to thofe employments thatare mod profitable to the country:but no laws can make it go further,nor can more people be fet to work,without more money to circulate fo,as to pay the wages of a greater num-ber, they may be brought to workon credit, and that is not practicable,unlefs the credit have a circulation, foas to fupply the workman with ne-ceffaries ; if thats fuppofed, then thatcredit is money, and will have thefame effects, on home, and foreigntrade. An addition to the money addsto the value of the country, fo longas money gives intereft, it is imploy-
  • 22 MONEY AND TRADEed ) and money imployed brings pro-fit, tho the imployer lofes. if 50men are fet to work, to whom 25{hillings is payed per day, and theimprovement made by their labour beonly equal to, or worth 15 s. yet byfo much the value of the country isincreafed. but as it is reafonable tofuppofe their labour equal to 40. s. fomuch is added to the value of thecountry, of which the imployer gains15 s. 15 may be fuppofed to equalthe confumption of the labourers,who before lived on charity, and 1 o s.remains to them over their confump-tion. If aftone of wooll is worth 10 s.and made into cloth worth 2 pound ;the product is improved to four timesthe value it had in wooll: the work-
  • CONSIDERED. 23men may be fuppofed to confumemore than when they were not im-ployed ; allow one 4th, the nation isgainer double the value of the pro-duct, fo an addition to the money,whether the imployer gains or not,adds to the national wealth, eafes thecountry of a number of poor or idle,proportioned to the money added,enables them to live better, and tobear a fhare in the publick with theother people. Thefirft branch of foreign trade,which is the export and import ofgoods, depends on the money, if onehalf of the people are imployed, andthe whole product and manufactureconfumed; more money, by imploy-ing more people, will make an o-verplus to export: if then the goods
  • 24 MONEY AND TRADEimported ballance the goods exported,a greater addition to the money willimploy yet more people, or the famepeople before employed to more ad-vantage ; which by making a greater,or more valuable export, will makea ballance due. foifthe money lef-fens, a part of the people then imploy-ed are fet idle, or imployed to lefs ad-vantage ; the product and manufactureis lefs, or lefs valuable, the export ofconfequence lefs, and a ballance dueto foreigners. The 2d and 3d branches of fo-reign trade, called the trades of car-riage ; are monopolized out of Eu-rope, by thefe countries who havecolonies; and in Europe, by thefewho fell cheapeft. Scotland has advantages for trade
  • CONSIDERED. 25by which the merchants might un-derfell merchants in Holland, ascheapnefs of living, paying lefs to thepublick, having workmen, feamen,and provifions for victualling cheaper:but if the Dutch merchants ftock is1 0000 lib. and his yearly expence500 ; he can trade at 1 o per cent pro-fit, and add yearly 500 lib. to his ftock.whereas a Scots merchant, whofeftock is 500 lib. and his yearly ex-pence 50; cannot trade fo cheap. If tis askt how a Dutch merchanttrades who has only 500 lib. ftock ?he reftrids his expence fo as he canafford to trade at 10 per cent profit:or money being in greater quantityin Holland, whereby it is eafier bor-rowed, and at lefs ufe; he gets creditfor more at 3 or 4 per cent, by which D
  • l6 MONEY AND TRADEhe gains 6 or 7. and unlefs moneybe in greater quantity in Scotland, orexpence retrenchd, we cannot tradefo cheap as the Dutch ; tho we haveadvantages for trade that they havenot, and tho they be under difadvan-tageswe are not lyable to. by a greaterquantity of money and oeconomy,the Dutch monopolize the trades ofcarriage even from the Englifh. The 4th branch of foreign trade,bringing home the product of othercountries, and exporting it in manu-facture, depends on the quantity ofmoney, we are fo far from compe-ting with the Dutch in this trade,thatour wooll was fent to Holland, andimported from thence in manufacture;under the difficulty of a prohibitionon the export of the wooll, and on
  • CONSIDERED. 1Jthe import of the manufacture, yetbefides the advantages already named,which we have for trade over theDutch, the material is the product ofour country, and greater privileges aregranted to manufacturers here, thanin Holland. Tis alledged, if the prohibitionhad continued, manufactures mighthave come to perfection. The advantage fome men made bymanufacture, may have occafiond thefetting up of more, while the moneyhas been diminifhing but that ; moneyfo imployed, has been taken fromfome other ufe it was before imploydin: for money cannot ferve in twoplaces at one time. Tis alledged, that the allowingthe wooll to be exported, occafioned D 2
  • 28 MONEY AND TRADEthe exportation of the money, that atone time 5000 lib. was fent to Eng-land to buy wooll. tis afkt what be-came of that wooll? they anfwer, itwas fent to France for wine, then, as5000 lib. of Englifh wooll may beworth 8 or 10 thoufand pound inFrance; fo the 5000 lib. fent to Eng-land, faved the fending out of 8 or1 0000 lib. to France. Tothcfe who dont throughly ex-amine the date of this country, it mayfeem odd that wooll mould be allow-ed by law to be exported: but if theproduct of Scotland cannot be ma-nufaclurd with lefs than 50000 peo-ple, and the money that can be fpardto manufacture, be only capable toemploy 25000, one half of the pro-dirt will be loft if it is not allowed tobe exported.
  • CONSIDERED. 29 The 5th branch, the freightingorhireing out (hips, depends on themoney, and the other branches oftrade, where fhips are in ufe to befreighted by Grangers, and fupportedby a great demand for their owntrade; there all forts of (hips are tobe hired cheaper than in other places;and merchants are fure offuch fhipsas are proper for the goods they loadwith, and the countries they trade to. This trade of freighting brings thegoods of other countries to Holland,tho defignd for fale elfewhere. ifwoollen manufacture from Englandto Portugal yields 25 per cent profit,and to Holland 15 ; the Englifh mer-chant will choofe to fend fuch goodsto Holland for 15 per cent, ratherthan to Portugal for 2 5; and the Dutch
  • 30 MONEY AND TRADEmerchant who is able to trade cheaper,from the cheapncfs of freight, etc. isfatisfied for the other 10 to carry toPortugal. Moft authors who have wrote ontrade divide it into national and pri-vate, they fay, a merchant may gainwhere the nation lofes. if a iooolib.is exported to the Indies in money orbullion, and a iooolib. in goods orprovifions; the return worth 8000 lib.the merchant gains 6000; but as thefegoods are all confumed in the coun-try, the nation lofes the 1000 lib.money or bullion exported. They dont conllder whether the8000 lib. ofgoods imported (all fup-pofed to be confurnd in the country)does not leffen the confmiption ofthe product or manufacture of the
  • CONSIDERED. 31country, fo as to occafion an additionto the export, at leaft equal to the1 000 lib. money or bullion exported,but allowing they do not leffen theconfumption of the goods of thecountry, and the ufe of them be notat all neceffary ; yet thefe goods beingworth 8000 lib. at home or abroad,the nation gains 6000. if the peopleconfume them, and in extravagantufes, thats not the fault of the trade,nor for that reafon fliould that trade becalld difadvantageous; it is the faultof the government, who ought to hin-der the too great confumption of fo-reign goods efpecially, fuch as mightbe wanted without caufing a greaterconfumption of the goods of the coun-try, that care being taken, by makingthe vent lefs profitable at home, than
  • 32 MONEY AND TRADEa broad ; merchants would exportthem, or for the future leflen theimport. If Eaft-India goods that fell for aiooolib. in England, are only worthabroad 800 lib, the duty payed at theirentry being returned, and more givenas a draw- back to encourage the ex-port, their vent abroad will be moreprofitable than in England. A people may confume more oftheir ov/n or foreign goods, than thevalue of the product, manufac1:ure,andprofits by trade ; but their trade is notdifadvantageous, it is their too greatconfumption: and the too great con-fumption of the product and manu-facture of the country, may be ashurtful as that of foreign goods ; for,if fo much is confumed, that the re-
  • CONSIDERED. 33mairider exported wont pay the con-fumption of foreign goods , a bal-lance will be due, and that ballancewill be fent out in money or bullion. A nation may gain where the mer-chant lofes, but wherever the mer-chant gains, the nation gains equal,and fo much more , as the mainte-nance and wages of the people em-ployd and the duty on the goods a-mounts to. if a fhip infurd is loft,the nation lofes, and the merchantlofes nothing; but in that cafe the in-fureris the merchant, and lofes equalto the nation. As trade depends on money, fothe encreafe or decreafe of the peopledepends on trade, if they have em-ployment at home, they are kept athome and if the trade is greater than ; E
  • 34 MONEY AND TRADEferves to employ the people, it bringsmore from places where they are notemploy d. Sir William Petty values aman at 20 years purchafe, by thatcomputation a feaman whofe wagesis forty fhil. a month, is valued 480lib. Scotland has a very inconfiderabletrade, becaufe fhe has but a very fmallpart of the money, there is a littlehome trade, but the country is notimprovd, nor the producl manufac-ture, there is a little of the firftbranch of foreign trade, and that iscarried on with great difadvantage tothe people, who pay dearer for moftforeign goods, and are worfe fervd,than other nations: if they have anycheaper, tis from the lower duty onthe import, in Scotland low prices
  • CONSIDERED. 35are given for goods bought up to beexported, the merchants profit beinggreat if a: 1 00 (lone of wooll is worthin Holland ten piece of linen cloth,thefe ten pieces are fold in Scotlandfor the value of a 180 or 200 ftoneof fuch wooll. fuch goods as do notyield that great profit, are not expor-ted ; and thefe that do, are not expor-ted in any quantity, the merchantsftock being fmall. Scotland has nopart of the other branches of foreigntrade, not being able to trade fo cheapas other nations. Some think if intereft were loweredbylaw, trade would increafe, mer-chants being able to employ moremoney and trade cheaper, fuch a lawwould have many inconveniencies,and it is much to be doubted, whe- E 2
  • $6 MONEY AND TRADEther it would have any good effeft;indeed, if lownefs of interefl were theconfequence of a greater quantity ofmoney, the Hock applyd to tradewould be greater, and merchantswould trade cheaper, from theeafinefsof borrowing and the lower intereflof money, without any inconvenien-cies attending it. Tho interefl: were at 3 per cent inHolland, and continued at 6 in Scot-land ; if money were to be had equalto the demands at 6, the advantageswe have for trade, which the Dutchhave not, would enable us to extendtrade to its other branches, notwith-ftanding the difference of interefl. If money in Scotland were equalto the demands at 6 per cent, theDutch could not trade fo cheap in
  • CONSIDERED. 37herring; the hinderances of thattrade being the confequences of thefcarcity of money, the materials forcarrying on the fifhing are cheaper inHolland, but the cheapnefs of vi&u-alling alone would ballance that, andthe dearth of thefe materials, as ofo-ther foreign goods, coming from thefcarcity of money; that being reme-ded, thefe materials, and other foreigngoods that are not the product of Hol-land, would be fold as cheap in Scot-land. Exchange, is when a merchantexports to a greater value than heimports, and has money due abroad ;another importing to a greater valuethan he exported, has occafion formoney abroad: this laft by paying inmoney to the other, of the weight and
  • 38 MONEY AND TRADEfinenefs with that is due him, or tothat value, faves the trouble, hazard ,and expence, to himfelf of fendingmoney out, to the other of bringingmoney home, and to both the expenceof re-coy ning. So long as foreign trade, and ex-pence kept equal, exchange was at thepar: but when a people imported fora greater value, or had other occafionsabroad, more than their export, andthe expence of foreigners among themwould ballance ; there was a neceflityoffending out the ballance in moneyor bullion, and the merchant or gen-tleman who owed, or had occafion formoney abroad, to fave the trouble,expence and hazard offending it out,gave fo much per cent to another, asthe trouble, expence and hazard was
  • CONSIDERED. 39valued at. thus exchange rofe abovethe par, and became a trade. Mr. Mun on trade, page 100,fays, the exchange being againft a na-tion, is of advantage to that nation,and fuppofes, if a 100 lib. at Londonis worth no more than 90 lib. of thefame money at Amfterdam, the Dutchto fend 500000 lib. of goods to En-gland, and the Englifh 400000 lib. ofgoods to Holland; it follows, thatthe money due the Englifh at Am-fterdam, will ballance 440000 lib. dueto the Dutch at London: fo 60000lib. pays the ballance. Mr Mun doesnot confider, that the Dutch goodsworth 500000 lib. when exchangewas at the par, are worth at London555555 1- when 90 lib. at Amfter-dam is worth a 100 lib. at London.
  • 40 MONEY AND TRADEand the 400000 lib. of Englifh goodsin Holland, are only worth 360000lib. that fum being equal by exchangeto 400000 lib. in England, fo in placeof Englands having an advantage of40000 lib. as he alledges by the ex-change being againft her: fhe pays95555 lib.mcre,than if exchange hadbeen at the par. When exchange is above the par,it is not only payed for the fums dueof ballance, but affecls the whole ex-change to the place where the bal-lance is due. if the ballance is 20000lib. and the fums exchanged by mer-chants who have money abroad, withothers who are owing, or have occa-fion for money there, be 60000 lib.the bills for the 60000 lib. are foldat or near the fame price, with the20000 lib. of ballance.
  • CONSIDERED. ^t It likewife affe&s the exchange tocountries where no hallance is due.if the exchange betwixt Scotland andHolland is 3 per cent, above thepar againft Scotland, betwixt Eng-land and Holland at the par, tho noballance is due by Scotland to Eng-land, yet the exchange with Englandwill rife ; for, a 100 lib. in Englandremitted to Scotland by Holland, willyield 103 lib. fo betwixt Scotland andEngland it may be fuppofed to be hadat 2 per cent, being lefs trouble thanto remit by Holland. Goods are fold to foreigners, ac-cording to the firft coft. if goodsworth a 100 lib. in Scotland, areworth 130 lib. in England, thefegoods will be exported, 30 per centbeing fuppofed enough for the charges F
  • 42 MONEY AND TRADEand profit* if the price of thefe goodslower in Scotland from a ioo lib. to80, the price in England will not con-tinue at a 1 30 ; it will lower propor-tionally, for either Scots merchantswill underfell one another, or Englifhmerchants will export thefe goodsthemfelves. fo if they rife in Scotlandfrom a 100 lib. to 120 ; they will rifeproportionably in England, unlefsthe Englifh can be ferved with thefegoods cheaper from other places, orcan fupply the ufeofthem with goodsof another kind, this being fuppofed,it follows that, By fo much as exchange is above the par, fo much all goods exported are fold cheaper, and all goods impor- ted are fold dearer than before, if a merchant fend goods yearly to Eng-
  • CONSIDERED. 43land firft coft, charges and profit 6000lib. money in England of the fameftandard with money in Scotland,and no ballance due j but a ballancedue to Holland, railing the exchange3 per cent above the par to Holland,and affecting the exchange to Eng-land 2 per cent, 5882 lib. 7 fh. inEngland pays the goods, that fum byexchange being equal to 6000 lib. inScotland, fo that a ballance due to Hol-land, by raifing the exchange to othercountries,occafions alofs to Scotlandof 117 lib. 13 fh. on the value of6000 lib. of goods fent to England. Englifh goods are fold fo muchdearer, if an Englifh merchant fendsgoods yearly to Scotland, firft cod, charges and profit 6000 lib. 6120 lib. rauft be payed for thefe goods in F 2
  • 44 MONEY AND TRADEScotland , being only equal to 6000lib. in England, if the exchange hadbeen at the par, the Scots goods fentto England would have fold 1 17 lib.14 fh. more, and the Englifh goodsfent to Scotland 120 lib. lefs. Thus to all places with whomexchange is above the par, goods fentout are fold fo much lefs, and goodsbrought from thence are fold fo muchdearer, as the exchange is above thepar; whether fent out, or brought in,by Scots or foreign merchants. The merchant who deals in Eng-li(h goods gains no more than whenexchange was at the par, tho he fellsdearer ; nor the merchant who dealsin Scots goods lefs, tho he fells chea-per ; they have both the fame profitas when exchange was at the par.
  • CONSIDERED. 45Scotland pays 2 per cent more forEnglifti goods, and England 2 percent lefs for Scots goods: all, or agreat part of the lofs falls at laft onthe landed man in Scotland, and it isthe landed man in England has all,or a great part of the benefit. Nations finding the export of mo-ney or bullion to pay the ballancc dueby trade, a lofs of fo much riches, andvery hurtful to trade, might havedif-charged the import of fuch goods asthe people could beft want ; or laid aduty on them, fuch as might haveleffend their confumption:they mighthave given encouragement to induftry,whereby the product would have beenencreasd and improvd, or difcoura-ged extravagant confumption, where-by the overplus to export would have
  • 4^ MONEY AND TRADEbeen greater ; any one of thefe me-thods would have brought trade andexchange equal, and have made a bal-lance due them: but in place of thefemeafures, they prohibit bullion andmoney to be exported, which couldnot well have any other effect, thanto raife the exchange equal to the ha-zard, fuch laws added to the exportof money or bullion, which maybefuppofed 3 per cent more and as thefe :laws by fuch effect were hurtful, ma-king all goods exported fell yet 3 percent cheaper,and goods imported 3 allper cent dearer; the ftricter they wereexecute, the higher the exchange rofe,and the more they did hurt, the bal-ance was (Hllfent out in money or bul-lion, by the merchant who owed it, bythe banker who gave the bills, or by the foreigner to whom it was due.
  • CONSIDERED. 47 Suppofe the money of Scotland,England, and Holland of the fameweight and finenefs. Scotland to tradewith no other places, the exchangeat the par the yearly export fromScotland, firft cod 300000 lib. char-ges and profit 30 per cent, goods im-ported 280000 lib. charges and profit30 per cent, one half of the trade tobe carried on by Scots merchants, theother half by Englifh and Dutch. Due to Scotland for one half*|of the export carried out by J> 195 OOOtheir own merchants J Due for the other half car- "J -*riedoutby Englifh and Dutch. J 150000J 34500© Due by Scotland to England"]and Holland for goods impor- j> 1 82000ted by Englifh and Dutch. — Due for goods imported bylScots merchants »— J 1 140000 J 322000
  • 48 MONEY AND TRADE The expence of Scots-men abroad,more than of foreigners in Scotland,40000 lib. if this is fuppofed the year-ly ftate of the trade and expence ofScotland, there will be a ballancedueof 17000 lib. and unlefs the Scotsretrench the confumption of foreigngoods, fo as to import lefs ; or retrenchthe confumption of their own goods,fo as to export more ; or increafe, orimprove their product, fo as the ex-port be greater or more valuable ; orretrenchin their expence abroad, fincethat ballance muft be paid it will goout in money or bullion : and occa-sions the exchange to rife 3 per cent,the prohibition on the export of mo-ney 3 more, if Scots-men export it,the Nation faves the 1020 1. exchangeon the 17000 of ballance due, which
  • CONSIDERED. 49is loft if Englifh merchants exportit; but the lofs fuch a rife in exchangeoccafionson the goods, is more con-fiderable. the 195000 lib. due abroadfor goods fent out of Scotland byScots merchants, will be payed with183962 lib. Englifh or Dutch money,that fum being equal by exchange at6 per cent to 195000 lib. in Scot-land, the 150000 lib. due for firftcoil of goods carried out by Englifh.or Dutch merchants, will be payedwith 1 41 510 lib. Englifh or Dutchmoney, that fum being equal to150000 lib. in Scotland, the 182000lib. duebyScotland for goods impor-ted by Englifh and Dutch merchants,will come to 192920 lib. in Scotland,and the 140000 lib. firft coft of goodsbrought home by Scots merchants, G
  • 50 MONEY AND TRADEwill come to 148400 lib. in Scotland,fothe accompt will run thus. Due to Scotland for goods exported 183962 Brought from abroad firft cofl 140000 Ballance of expence abroad 40000 Due to Scotland abroad 3962 Due by Scotland for goods impor-1ted by r nglifli and Dutch J 192920 Englifh and Dutch take back in goods 1 5 0000 Due to Englifh and Dutch in Scotland 42920 3 9 6 2 lib . d ue abroad to Scotland in ~)Scots money j 41 99 Remains due by Scotland. 38 2 1 "f So the rife in the exchange of 3 percent by the ballance due of 17000 lib.and 3 more by the prohibition onthe export of money, occafions a lofsto Scotland of2i72i 1. and makes
  • CONSIDERED. 51the next years ballance 38721 lib.the/ the trade be the fame as before,of which 2 1 72 1 lib. loft by exchange,one half would be faved if moneywere allowed to be exported. Since the exchange being 6 per centabove the par, occasions the lofs of2 1 72 1 lib. then raifing the money 8and a one third per cent, having raif-edthe exchange with England to 14per cent, and with Holland to 30,makes the lofs proportionably greater:Scots goods being fuppofed to conti-nue at the fame prices they were foldfor, before the money was raifed, ornot to rife in the fame proportionwith the money, for when exchangewas at the par, a 100 lib. of Scotsgoods were fold abroad for a 130 lib.Englifti money; but 114 lib.Englifh G2
  • 52 MONEY AND TRADEmoney, being now equal by exchangeto a 130 lib. in Scotland, the Scotsmerchant can afford to fell the famequantity of goods for a 114 lib. thathe fold before at a 130, and have thefame profit. To foreign goods worthabroad a 100 lib. and fold in Scot-land for a 130 lib. when exchangewas at the par ; cannot be fold nowforlefsthana i5olib.inScotland,thatfum being only equal to a 130 lib,Englifh money; and the merchantsprofit is no greater, than when hefold the fame quantity of goods fora 130 lib. It may not be improper to con-fider what confequences would attendthe lowering the money to the Eng-lifh ftandard, and allowing it to beexported.
  • CONSIDERED. 53 The former ftate of trade I havefuppofed to be carried on, one halfby Scots merchants, the other halfby Englifhand Dutch; but as moftof the trade is carried on by Scotsmerchants, I fhall fuppofe this ftateof trade accordingly, the one or theother will clear the matter in queftion. The ftate of trade now, and ex-change fuppofed at 1 5 per cent to Eng-land, and 30 to Holland, the wholeexport of Scotland to be 300000 lib.of which 250000 lib. carried out byScots merchants, fold at 30 per centprofit and charges 325000 lib. In Englifh money 282608 Exported by foreigners for 50000I. ^»Jn Englifh money J 43478 The whole export 3 26086
  • 54 MONEY AND TRADE Goods imported 306086 Spent abroad. 40000 Due of ballance by Scotland. 30000 Money being lowered to the P ijg-lifli ftandard, and aliowd by law tobe exported ; will bring the exchangewith England to 2 or 3 per ^ent,andwith Holland to 17 or 18, notwith-ftanding of the ballance due. for, asa 100 lib. in Edinburgh, would thenbe equal to 100 lib. at London, andbeing allowed to be exported ; nonewould give above 102, or 3 here for a 100 lib. at London: becaufe thetrouble and charge of fending it toLondon, would be valued no higher,the export, import, and expence a-jbroad fuppofed to continue the fame ;a ballance would then be due to Scot-land.
  • CONSIDERED. 5$ The fere of trade, exchange at3 per cent to England, and propor-tionately to other places. Due in Englifti money, for 3 25000 1."| charges and profit of goods fent f 3 1 $5 34firft colt,out by Scots merchants. j Due money, for $0000 1. J in Englifhof goods exported by foreigners. J 48544 The whole export 3 6407 8 Of this deduce the value of goods im-"| ported. j 306086 And the expence abroad. 40000 There will be a ballance due to Scot- "1 land, of j 17992 As this ballance due to Scotland, would bring exchange to the par, and 3 per cent on the Scots fide ; 3 more, becaufe money in England is prohi- bited to be exported ; 100 lib. in Scot-
  • $6 MONEY AND TRADEland, would be worth 106 lib. in Eng-land, and proportionably in otherplaces, fo the ftate of trade would thenbe thus. Due in Englifii money for 3 25000 1.firft coft, and profit of Scots charges >397coogoods fent out by Scots merchants, and5 0000 1. exported by foreigners Of this fpent abroad 40000 Imported from abroad. 306086 Ballance then due to Scotland. 5 1 41 If the yearly export be as great asI fuppofe it, and the ballance only20000 pounds; then lowering themoney to the Englifh ftandard, willmake a ballance due of 514 14 lib. tho*the money is not allowed to be expor-ted. It may be objected, that fuch analteration in the exchange, lowering
  • CONSIDERED. 57the value of foreign money; mighthinder the fale of our goods abroad.for, linen-cloth bought in Scotlandfor a 100 lib. and fold at London fora 1 15 lib. yields by exchange 31 percent profit, but if exchange were 6 percent on the Scots fide, the profit isonly 9 per cent. It is anfwered. if an Englim mer-chant takes bills on Scotland for a1 000 lib. to lay out on linen-cloth, theexchange then at the par: the linen-cloth is fold in England according tothe firft coft, charges and ufual profit,next year the exchange is on the Eng-lifh fide, the linen is fold in Englandcheaper than before, the third yearexchange returns to the par, the linenis then fold in England as the firityear, if the firft coft of linen is dearer, H
  • 58 MONEY AND TRADEthe confumer pays the more for it,the merchants profit is the fame. All nations endeavour to get theex-change as much as they can on theirfide, the exchange from Holland toEngland is 1 2 or 15 per cent, to Scot-land 30 per cent, to France 40 or 50,fometimes more ; yet Dutch goodsfell in thcfe countries, the merchanthas his profit the fame as when ex-change was lower, the confumer paysmore for them. Englifh cloth is foldat Paris from 18 to 20 livres theFrench ell. when the luedore is at12 livres, from 20 to 23, when theluedore is at 14 livres : becaufe theexchange to England is dearer, in pro-portion as the French money is raisd. Moft goods fent from Scotland arefuch as foreigners wont want, tho
  • CONSIDERED. 59they payed 10 or 20 per cent morefor them, we have an example ofthis in thewoolL during --the prohi-bition, wooll fold in Holland andFrance for double the firft coft. nowit has fallen to 30 or 40 per centprofit, prices are given for goods, ac-cording to their firfl: coft, charges, andufual profit ; where prohibitions are,the hazard of exporting contrair tolaw is valued, wooll is of lefs valuenow in Holland than in time of peace,becaufe the vent of their woollen ma-nufacture is lefs; but tho wooll wereas valuable in Holland as before, andthoa Dutch manufacturer would give200 lib. for wooll that coft only a 100 lib. in Scotland, rather than wantit: yet as he knows the prohibition istaken off, and that the Scots merchants Hz
  • 60 MONEY AND TRADEcan afford to fell cheaper ; he wontbuy unlefs he can have it at a reafon-able profit, fo either the Scots mer-chants bring down the price, by un-derfelling one another or the Dutch ;merchant commiffions it himfelf. ifa duty were put on fuch goods whofevalue abroad would bear it, the mer-chant would gain the fame, tis theforeigner pays the duty, Befides, lowering the money maynot lower the prices abroad, for, aswhen money was raifed, goods mayhave rofe in proportion, or have beenmade worfe fo as a i oo lib. after the ;money is lowerd will have 33 crownsand I more filver in it, than a 1 00 lib.had before ; fo a greater quantity ofgoods may be bought with a 100lib. than before, or the goods may
  • CONSIDERED. 6lbe made better : efpecially the linen-cloth, fince the material would beimported forlefs. but, allowing thatupon the lowering the money, goodsfold in Scotland as before, and weremade no better ; and allowing thatone third or more of the goods ex-ported, could not be raifed in theirprices abroad; becaufe foreignersmight be ferved cheaper with the famekind of goods from other places, ormight fupply the ufe of them withgoods of another kind ;or might con-fume lefs of them ; yet, that oughtnotto hinder fucha regulation of themoney and exchange ; for a draw-back might be given upon the exportof fuch goods, whofe prices abroadwere not great enough to yield a rea-fonable profit.
  • 6z MONEY AND TRADE But left fuch an alteration in theexchange, or undervaluing foreignmoney, fhould leiTen the export ofgoods : it may not be advifeable, un-lefs a fund were given, out of whichdraw- backs might be payed to encou-rage export, and an addition be madeto the money, whereby the peoplemay be fet to work, for without fomeaddition to the money, tis not to befuppofed next years export can be e-qual to the laft: it will leiTen as moneyhas leflened;a part of the people thenimployed being now idle ; not forwant of inclination to work, or forwant ofimployers, but for want ofmoney to imploy them with.
  • CONSIDERED. 6$ CHAP. III.Of the different meafures which have been ufed topre- ferve and increafe money, and of banks. 1 he meafures have been ufed topreferve and increafe money, havein fome countries been oppofite towhat has been ufed in others rand op-pofite meafures have been ufed in thefame countries, without any differingcircumftances to occafion them. Some countries have raifed moneyin the denomination, when othershave lowered it ; fome have allayd it,when others who had allayd it haverectified it j fome have prohibited theexport of money under fevered penal-ties, when others have by law allow-ed it to be exported ;fome thinking toadd to the money, have obliged tra-ders to bring home bullion, in pro-
  • 64 MONEY AND TRADEportion to the goods they imported,mod countries have tryed fome orall of thefe meafures, and others ofthe fame nature, and have tryed con-trary meafures at one time, from whatthey nfed immediately before, fromthe opinion, that fince the methodufed had not the effecl: defigned, acon-trary would: yet it has not been found,that any of them have preferved orincreafed money ; but on the contrair. The ufe of banks has been thebefl: method yet practifed for the in-creafe of money, banks have beenlong ufed in I taly, but as I am inform-ed,the invention of them was owing toSweedland. their money was copper,which was inconvenient, by reafonof its weight and bulk ; to remedythis inconveniency, a bank wasfet up
  • CONSIDERED. 65where the money might be pledged,and credit given to the value, whichpaftin payments, and facilitate trade. The Dutch for the fame reafon fetup the bank of Amfterdam. theirmoney was filver, but their trade wasfo great as to find payments even infilver inconvenient, this bank likethat of Sweedland, is a fecure place,where merchants may give in mo-ney, and have credit to trade with,befides the convenience of eafier andquicker payments, thefe banks favethe expence of cafheers, the expenceof bags and carriage, lofies by bad mo-ney, and the money is fafer than inthe merchants houfes, for tis lefs ly-abletofireor robbery, the neceffarymeafn res being taken to prevent them. Merchants v/ho have money in I
  • 66 MONEY AND TRADEthe bank of Amfterdam, and peopleof other countries who deal withthem, are not lyable to the changes inthe money, by its being allayd or al-tered in the denomination : for. thebank receives no money but whats ofvalue, and is therefore called bank-money ; and tho raifed in currentpayments, it goes for the value it waspledged for in bank-payments, theAG o of the bank changes a quarteror a half p # cent, as current money ismore or lefs fcarce. Banks where the money is pledgdequal to the credit given, are fure;for, tho demands are made of thewhole, the bank does not fail in pay-ment. By theconftitution of this bank, thewhole fum for which credit is given,
  • CONSIDERED. 6jought to remain there, to be ready atdemand; yet a fum is lent by the ma-nagers for a itock to the lumbar, andtis thought they lend great fums onother occafions. fo far as they lendthey add to the money, which bringsa profit to the country, by imployingmore people, and extending trade;they add to the money to be lent,whereby itiseafier borrowed, and atlefs ufe;and the bank has a benefit:but the bank is lefs fure, and tho nonefuffer by it, or are apprehenfive ofdanger, its credit being good ; yet ifthe whole demands were made, ordemands greater than the remainingmoney, they could notallbefatisfied,till the bank had called in what fumswere lent. The certain good it does, will more 12
  • 63 MONEY AND TRADEthan ballance the hazard, tho once intwo or three years it failed in pay-ment providing the fums lent be well ;fecured : merchants who had moneythere, might be difappointed of it atdemand, but the fecurity being good,and intereft allowed money would be ;had on a fmall difcount, perhaps atthe par. Laft war, England fetup a bankto have the conveniencies of that atAmsterdam, and by their conftitu-tion to increafe money, this bankwas made up of fubfcribers, who lentthe King 1200000 lib. at 8 and athird per cent, for 1 1 years, on a par-liamentary fund ; and were priviledg-ed bankers for that time, the fumdueby the government was a fecurity tothe people, to make good any lolfcsthe bank might fuffer.
  • CONSIDERED. 6<) This bank was fafer than thegold-fmiths notes in ufe before, it made agreat addition to the money, havingamuch greater fum of notes out, thanmoney in bank, and the fum lent theKing, which was the fund belonged tothe fubfcribers, was negotiated at pro-fit, and had the fame effect in trade asmoney. I dont know how their notescame to be at difcount, whether fromthe circumftances of the nation, orfrom ill management. The fund of the bank of Scot-land was a i ooooo 1. of which a tenthwas payed in. this bank was fafer thanthat of England, there being a regi-fter whereby moft fums lent were fe-cured. its notes went for 4 or 5 timesthe value of the money in bank, andby fo much as thefe notes went for
  • 70 MONEY AND TRADEmore than the money in bank ; fomuch was added to the money of menation. This bank was more ufeful thanthat of Amfterdam, or Engiar. J ; itsnotes pafling in molt payments, andthrough the whole country :the bankof Amfterdam being only for thattown, and that of England of littleufe but at London. The ftop ofpayments which hap-pened to the bank of Scotland, wasforefeen, and might have been pre-vented, the confumption of foreigngoods, andexpencein England, be-ing more than the export of goodsdid pay ; the ballance fent out in mo-ney leflened the credit of the bank,for as credit is voluntary, it dependson the quantity of money in the
  • CONSIDERED. Jlcountry, and increafes or decrcafesv ith it coy ning notes of one poundfupported the bank, by furnijhingpa; crfor fraall payments, and there-by preventing a part of the demandfor Ttoney: by thefe notes the bankmight have kept its credit, till othermethods had been taken to fupply thecountry with aoney ; had not a reportof raiung the money occafioned anextraordinary demand, which in fewdays exhaufted the money in bank,and put a flop to payments. It would not have been eafie inthat fcarcity of money to have gotenough to fupport the bank, tho menof the belt credit had undertaken itthat report of raifing the money ha-ving only occafioned a demand fromthe people inEdinburgh. in a ihort
  • JZ MONEY AND TRADEtime notes would have come in fo faftfrom the country, that what moneycould have been got, would not haveanfvvered the demand. If the privy council had loweredthe money, the Englifh crown to 5 s.and the other money in proportion,to take place 2 pence p. crown in 3days,and the other 3 pence in amonth ; theoccafion of the demandbeing removed, in all appearance mo-ney would have been returned to thebank. If the ftateof the bank had beenknown, or fufpected by the people;fuch a proclamation would have hadthe fame effect, tho the ftop of pay-ment had then happend. in that cafe,the fupport of the bank might havebeen the narrative of the proclamation;
  • CONSIDERED. 73the fecurity being good, few or nonewould have kept their money tolofs,rather than return it to the bank, andif in 3 days money had not come info faft as expected, their lordfhips bya 2d. proclamation might have low-ered the crown to 5 fh. to take placethen, and 6 pence more in 3 days,when the credit of the bank had beenre-eftablifhed, the money might havebeen cryed up, if that had been ne-ceflary, the crown to 5 fh. and 5 pence,and the other money in proportionas it was before. Some are againft all banks wherethe money does not lie pledged equalto the credit. 1. they fay the demandmay be greater than the money inbank, fecondly, if we are decliningin our trade, or money, we are not at K
  • 74 MONEY AND TRADEall, orarelefsfenfible of it: and if thebank fail, we are in a worfe conditionthan before. To the firftits anfwered,Tho thenation had no benefit by the additionthe bank makes to the money nor ;the people by being fupplyd withmoney when otherwife they couldnot, and at lefs intereft; and tho theproprietors had no gain by it: the otherconveniencies, as quicker and eafierpayments, &c. are more than equalto that hazard; or bank notes, gold-fmithsand bankers notes, would notbe preferred to money, every bodyknowing fuch a ftop may happen tothe bank, and that gold-fmiths andbankers may fail. The other objection is the fameas to fay, a merchant who had a fmall
  • CONSIDERED. J5itock, and was capable of imployinga greater ; if a fum were offered himwithout intereft,equal to what he had,and more as his own increafed, mouldrefufe it, becaufe he might fancy him-felf richer than he was, and if his ownftock decreafed, that fum lent wouldbetaken from him. If 15000 isfuppofed the moneyin bank, and 75000 lib. of notes out;60000 lib. is added to the money ofthe nation, without intereft: for whatis payed by the borrowers, is got bythe proprietors, as the money of thenation increafes, the credit of thebank increafes, and the fum of notesout is greater and fb far from making ; the people lefs fenfible of the conditi- on of the country, a furer judgment of the (late of trade and money may be K2
  • j6 MONEY AND TRADEmade from the books of the bank,thanany other way. If trade can be carried on with aiooooo lib. and a ballance then dueby foreigners ; the fame meafures, anda greater quantity of money, wouldmake the ballance greater, nor isthat additional money the bank fur-nifhes, to be fuppofed will be loft, ifby a ballance due from trade the di-ver money may increafes: that creditfail from an accident when money isplentiful, and would foon be recovered;tis only loft by a fcarcity of money,fuch a credit may fupport trade, incafes where without it trade wouldfink, but cannot do prejudice. Another objection is made againfl:the bank, that it encouraged the ex-portation of money, by furnilhing
  • CONSIDERED. jyCims in fuch fpecies as were of moftvaJue abroad, to anfwer this objection,I fhall make a fuppofition. A. B.merchant has occafion for a iooolib,in Holland, and defiresC. D. bankerto give him a bill for that value ;there is no money due in Holland toScots merchants, fo C. D. muft ex-port the money to pay the bill hedraws: but, there being no bank, norany poffibility of getting a iooo lib,in 40 pence pieces, he fends out mo-ney of different fpecies. this does nothinder the money to go out, butmakes the exchange dearer by 2 or 3percent, than it would have been if 40pence pieces could have been got. andtho no other money were left, butold marks, if a ballance is due, thefewill go out, tho* not worth 10 pence:
  • 78 MONEY AND TRADEthe exchange will be fo much higher,the profit of exporting is the fameand fo far from doing hurt to thecountry, the bank by furnifhing fuchpieces as could be exported to leadlofs, kept the exchange 2 or 3 per centlower than otherwife it would havebeen, and faved yearly the fendingout a confiderable fum to pay a grea-ter ballance, the higher exchangewould have occafioned. CHAP. IV.The fever-almeafures now propofed y confidered. as t rai- fingor allaying the money, coynhg the plate, regulat- ing the ballance of trade. or> re-cflablijhing the hank. When I ufe the words, raifing themoney, I defire to be underftoodraifing it in the denomination ; for Ido not fuppofe it adds to the value. There is no way filver can be made
  • CONSIDERED, 79more valuable, but by leflenlng thequantity, or increafing the demandfor it. if the export and confumptionof filver be greater than the import,or the demand be increafed; filverwill be of more value, if the quantityimported be greater than the quanti-ty exported or confumed, or the de-mand leflened; filver will be of lefsvalue. If raifing or allaying the moneycould add to its value, or have anygoodeffeft on home or foreign trade ;then no nation would want money,a ioolib. might beraifed or allayedto 2, to 10, to a ioo times the deno-mination it had, or more as there wereoccafion. but as tis unjufl to raife, orallay money ;becaufe, then all con-tra&s are payed with a leffer value
  • So MONEY AND TRADE than was contracted for and as ; it has bad effects on home or foreign trade: fo no nation praclifes it, that has re-gard to juftice, or underftands the na- ture of trade and money, if A. B.fell 12 chalder of victual for a ioolib.payable in 6 months, with which heis to pay bills of exchange of that va-lue, to be drawn on him then fromFrance for wine he has commifllondand in that time the money israifedor allayed to double, the ioolib. A.B. receives will only pay half the billhe has to pay, being only equal to50 lib. of the money he contractedfor. nor will that 100 lib. buy thefame quantity of goods of the coun-try, that a 100 lib. bought before: itwill pay where money is due, andfatisfie part contracts made upon the
  • CONSIDERED. 8lfaith of the pnblick, becaufe theprince fays every man fhall take halfwhat is owing him in full payment.but in bargains to be made, the valueof the money will be confidered ;goods will rife, tho perhaps not tothe proportion the money is raifedand fuch perfons as do not raife theirgoods, equal to the money, are im-pofed on. When 6 pence is raifed to 1 2 pence,the 6 pence is worth 12 pence ; butthe value of the pence is lowered tohalf-pence. To explain this matter better, Ifhall fuppofe when money is raifed,goods rife, or not. If goods rife, then railing the mo-ney has not the effecl: defigned. if•a piece of ferge is fold for 40 fh. and L
  • 82 MONEY AND TRADEthe fhillingbe raifed to 1 8 pence, thepiece of ferge will be fold for 3 lib.this adds to the tale of the money ,andpays debts with two thirds of whatis due, but does not add to the mo-ney, this is the natural confequenceofraifing the money; for, it is notthe found of the higher denomination,but the value of the filver is confide-red. If, when money is raifed, goodskeep the prices they had before : thenall goods exported are fold for a leflervalue abroad, and all goods importedare fold dearer, a half-crown is raif-ed to 40 pence, and that half-crownbuvs the fame quantity of goods 40pence bought before ; then the mer-chant who fends goods to Holland.,to the value of 300 lib. which are fold
  • CONSIDERED. 83for 390 lib. there, would gain 220 lib.on the value of 300 lib. exported: be-caufe, 390 lib. in Holland, would beequal to, or worth by exchange at thepar, or fentin bullion, 520 lib. in Scot-land, that trade would bring no moreprofit to the nation, than when thereturn of the goods yielded only390 lib. for, 390 lib. before it wasraifed, had the fame quantity of filver,that 520 lib. raisd money would have;and bought as great a quantity offoreign goods, but that trade wouldbe fo profitable to the merchant, thatmore people would deal in it thancould get goods to buy ; and as morebuyers than fellers would raife theprices here, fo one merchant under-felling the other would lower theprices in Holland, but tho the prices L2
  • 84 MONEY AND TRADEkept low here, and our merchantskept up the prices abroad: the Dutchknowing the goods were fo cheap inthe country, would buy none fromour merchants, but commiflion themin return of goods they fent. Suppofe the yearly export firft coft300000 lib. fold abroad 390000 lib.the import, and expence abroad410000 lib. and 20000 lib. fent inmoney, to pay the ballance. the mo-ney raifed one third, and goods to keepthe prices they had before, 225000 1.fent to Scotland in foreign money, orgoods, or by exchange, would buywhat was fold abroad for 3 90000 lib.the export, import, and expence a-broad continuing the fame, Scotlandwould be due a ballance of 1 85000 lib.for, tho Scots goods were fold under
  • CONSIDERED. 85the value,yet other nations would notfell their goods for lefs than before;or than they could have in otherplaces. It may be alledgcd, we have moreproduct and manufacture, than isconfumed, or exported ; and fellingcheaper, would occafion a greater de-mand for our goods abroad. The product and manufacturemight be much increafed, if we hadmoney to imploy the people : but,Im of opinion we have not any greatquantity of goods, more than what isconfumed or exported, allow fellingcheaper would occafion a greater de-mand; that the greater demand,would occafion an increafe in the pro-duct, and manufacture, to the valueof a 1 00000 lib. and allow that the
  • %6 MONEY AND TRADEextraordinary chcapnefs of goods, didnot occafion a greater confumptionin the country: yet, we would be inthe fame condition as before 20000 1. ;would be ftill due of ballance, and theimprovement would be given to fo-reigners for nothing, but this im-provement is imaginary, for tho thedemand increafed, yet without moremoney more people could not be im-ployed, fo no further improvementcould be made: we would be forced toretrench near one half of the ordinaryconfumption of foreign goods, andexpence abroad; not having money topay thegreat ballance would be due. Some think foreign money beingraifed, would bring in money to Scot-land. Tho the crown were raisd to 10 s.
  • CONSIDERED. 87yet if a ballance is due by Scotland,the ex^ hange will be above the par,and, tis not to be fuppofed an Englifhmerchant will bring crowns to Scot-land, when for a 100 payed in at Lon-don, he can have 05 or 6 of the fame 1crowns payed him at Edinburgh. If the ballance of trade was equal,foreign money raifed, and Scots mo-ney not raifedin proportion ; foreignmoney would be brought in, and agreater value of Scots money wouldbe carried out. tis the fame lofs to acountry when money is raifed, andgoods do not rife in proportion: if fo-reigners fend in money to buy goods,and this money when exported is notvalued fo high as here ; the return ingoods will be fo much lefs,befides thewant of the profit we would have hadon the export of our goods*
  • 88 MONEY AND TRADE If all import, and foreign expencewere difcharged, Scotland would thenbefo much richer, as there was bullionor money imported: but, if that pro-hibition be fuppofed, Scotland wouldbe richer by keeping the money at thevalue it has ; becaufe, a greater quan-tity would be brought in, to buy thefame quantity of goods. If we could be fuppofed to bewithout any commerce with othernations, a ioo lib. may be allayed andraifed to have the fame effect in tradeas a million: but, if a Granger werefuffered to come to Scotland, he mightpurchafe a great part of the land orgoods with a fmall fum. and a richman here would make a very fmallfigure abroad. Money is the meafure by which
  • CONSIDERED. 8iJall goods are valued and unlefs goods ;rife to the full proportion the moneyis raifed, the goods are undervalued,if the yearly value of Scotland in pro-duct and manufacture be 2 millions,at 20 years purchafe 40 millions, themoney a 1 00000 lib. raifing the mo-ney 20 per cent, makes it pafs for a120000 lib. fuppofe the goods rifeonly 10 per cent, then that a 120000 1.is equal in Scotland to a 1 10000 1.of the money before it was raifed ; andbuys the fame quantity of goods, fo,an addition is made of 20000 lib. tothe tale and of 1 0000 lib. to the valueof Scots or foreign money, comparedwith the value of Scots goods but the :meafure by which goods are valued,being raifed in the denomination 20per cent; and the goods rifing only 10 M
  • 90 MONEY AND TRADEper cent: Scotland is near 4 million,or one tenth lefs valuable than before,and any man who fells his eftate, willreceive a tenth lefs filver, or of anyother foreign goods for it, than if hehad fold it before the money wasraifed. France and Holland are given asexamples of raifing and allaying themoney, in France the money is high-er in the denomination than in othercountries, but that does not hinderthemoney of France to be exported,when the luedore was at 1 2 livres, theballance was againft France, exchange10 per cent above the par: and a noluedores at 12 livres were payed thenat Paris, for a 1 00 luedores of the fameweight and flnenefs at Amfterdam,and pafTing there for o guilders bank
  • CONSIDERED. OImoney; fo 10 per cent was got byexporting money from France, whenthe luedore was raifed to 14 livres,that did not make the ballance againftFrance lefs ;the exchange continuedthe fame, no luedores tho at 14livres were payed for a bill of a 100at Amfterdam, and the fame profitwas made by exporting money, ifthe exchange happened to be lower,it was from the ballance of trade dueby France being lefs, and that wouldhave lowered the exchange whetherthe money had been raifed or not. butthe raifing the money, fo far frombringing the ballance to the Frenchfide, keeps the ballance againft France:for, as their goods do not rife to thefull proportion the money is raifed,fo French goods are fold cheaper, M 3
  • 92 MONEY AND TRADEand foreign goods are fold dearer,which makes the ballance greater, oc-cafions a greater export of money,fets idle fo many of the people as thatmoney employed, lefTens the productor manufacture, the yearly value ofthe country, and the number of thepeople. Tis thought the Dutch coin lue-dores, and fend them to France,where they pafs at 14 livres. and,that guineas were fent from Hollandto England, in the time of the diptmoney ; becaufe they pafr there for30s. but thefe people are misinformed,ever fince I have known any thing ofexchange, a luedore at Amfterdamwhether new or old, has been of morevalue by exchange, than a new luc-dore at Paris, and in the time of the
  • CONSIDERED. 93dipt money, a guinea in Holland wasworth more by exchange, than aguinea in England, thefe who wereignorant of the exchange, might buyup guineas or luedores, to carry toEngland or France, but they wouldhave got more by bill, there was aprofit then upon exporting guineasand hied ores from England andFrance to Holland, the pound Eng-lifh at that time was given for 8 guil-ders, or under; and the exchangefrom Amfterdam to Paris has beenthefe 8 or 10 years for the mod part,confiderably above the par on theDutch fide. I have known the poundEnglifh at 7 guilders 13 (livers, andthe French crown of 3 livres boughtin Holland for 37 (livers, in Londonfor 39 pence halfpenny.
  • 94 MONEY AND TRADE Raifing the money in France islaying a tax on the people, whichis (boner payed, and thought to belefs felt than a tax laid on any otherway. when the King raifes the luedorefrom 12 livres to 14, they are takenin at the mint for 1 3 livres, and givenout for 14; fo the King gains a livreon the luedore, and this tax comesto 20 or 25 million of livres, fome-times more, according to the quantityof money in the country, but fo farfrom adding to the money, it ftops thecirculation : a part being kept up tillthere is occafion to export it to Hol-land, from whence a return is madeby bill, of a fum of livres equal to thefame quantity of new luedores thatwere exported of old ones, and 8 or10 per cent more, according as the
  • CONSIDERED. 95exchange is on the Dutch fide, otherswho wont venture to fend the mo-ney out, keep it till the new moneyis cryed down, fo fave a 13th part,which the King would have got ifthey had carried the money to themint to be recoined. this tax fallsheavy on the poorer fort of the peo-ple. Tis generally thought the Dutchmoney is not worth half what it paffesfor. but it will prove otherwife whenexamined, the bank by which moftpayments are made, receive and payin bank money, which is better thantheEnglifli, ducatdownsareat3 guil-ders, and other bank money in pro-portion ; and Im informed the cur-rent money has filver in it to the valueor near, except fome of their fkellings
  • J>6 MONEY AND TRADEwhich are worfe than others: themaking them worfe was not defignd,it was an abufe occafioned by toomany towns having power to coin:which abufe was ftopt fo foon asknown, and that fpecies cryed downto 5 ftivers and a half. Some propofe the money may beraifed, to give the little we have lefta better circulation, and to bring outhoarded money, the lowering it bydegrees to take place in 3 or 4 months,will have the fame effect ; and othergood confequences: for, from whathas been faid, page 54 and 55* thereisreafon to think, if the money werelowered to the Englilh ftandard, ex-change would be on our fide, and aballance due us: providing the export,the import, and expence abroad con-tinued as now.
  • CONSIDERED. 97 There is another argument forraifingthemoney,which is, that fomegoods dont yield profit enough a-broad, fo are not exported, if fergesworth in Scotland a ioo lib. areworth 120 in Holland, the merchantwont export them for 20 per centprofit : but if the money is raifed 20per cent, and goods keep at the pricesthey had before, the fame money thatbought 100 lib. of ferges, buying nowto the value of 120 lib. and thefegoods being worth in Holland 144 lib:that addition to the profit by raifingthe money, will occafion the exportof them. This is the fame as if a merchantwho had a 1 00 different forts of goods,and was offered 30 per cent profitupon 90 of them but no body ; of- N
  • 98 MONEY AND TRADEfering above 20 per cent profit for theother 10 forts, fhouldadda quarter tothe meafure by which he meafuredhis goods, and fell all the 100 fortsfor the fame price he fold them before:as this merchant would find himfelfa confiderable lofer by this expedient,fo will a nation who raifes their mo-ney. For the fame reafon, it would bea great lofs to Scotland if all goodswere allowed to be exported withoutduty ;fome ought to be free of duty,and fome not, according to their valueabroad. The true and fafe way to encou-rage the export of fuch goods, as donot yield great enough profit ; is by adraw-back, if ferges fent to Hollandgive only 20 percent profit, 10 per
  • CONSIDERED. 99cent given as a draw-back will encou-rage their export: thedraw-backgivento the merchant is not loft to thenation, and what is got by the ma-nufacture or export of the goods, isgained by the nation. A draw-back is the beft methodyet known for encouraging trade,and it may be made appear, that 10or 1 5000 apply ed that way, will occa-sion an addition to the export to thevalue of a iooooo lib. nor is any partof that 10 or 15000 lib. loft to thenation; for, if A. B. and C. Scotfmenget fuch draw-back, it is the famething to the nation, as if it had notbeen given, when draw-backs are paidout of funds for the fupport of thegovernment, money is applyed littlethat way becaufe, fo much is taken ; N 2
  • IOO MONEY AND TRADEfrom the prince: but, if there was anational fund for the encouragementof trade, that nation might improvetrade, and underfell other nationsthat did not follow the fame meafures.but this is fuppofing there was moneyin the country to imploy the people. Coining the plate were a lofs ofthe fafhion, which may be valuedone 6th, and would add little to themoney: the plate at the reftaurationwas inconfiderable, having been cal-led in a little before, fince there mayhave been wrought one year with an-other about 60 ftone weight; of thata great part has been melted down,or exported, the remainder wont beof great value, what plate has beenimported belongs to a few men ofquality, who will fend it out of the
  • CONSIDERED. IOIcountry rather than lofe the fafhion ;and in that they do a fervice to thecountry, providing they dont fpendit abroad, becaufe wrought plate willfell for more filver at London, thanit will melt to here. IfYispropofed the money be al-layed, and the advantage of the allaybe given to the owners of the plate,fuppofe the new money with allay beraifed to double the denomination ;5fh. of plate with the fafhion worth6 fh. will giveat the mint i o fh. allaydmoney: but even then the plate willnot be brought in voluntarily for that ,plate fold in England, and the valuebrought back by bill, will yield fromII to 12 fh. exchange being abovethe par, and 6 pence fuppofed to be
  • 102 MONEY AND TRADEgot for the fafhion of the ounce ofplate. If itbe necefTary to coin the plate,fuch plate fhould be allowed to beexported as can be fold abroad formore than its weight: fecurity beinggiven to import money or bullion tothe value. Some propofea regulation of theballance of trade, by retrenching theconfumption of foreign goods, andexpence in England: fo the ballancebeing brought to be on our fide, wemay become rich by living within ouryearly value, as we became poor bySpending beyond it. Such a regulation will have its diffi-culties, i. to difcharge all or a greatpart of the import, will lelTen confide*rably the revenue of the crown ; and
  • CONSIDERED. 103hermajeftymaynot think good to givethe royal aflent to fuch a regulation,unlefs an equivalent be given. 2. fucha regulation would not be fo ftricllykept, but a part of what was ufed tobe imported would be itole in. 3. therefidence of our princes being inEngland, we are under a neceffityofhaving a miniftry there: imploymentsbeing at the difpofal of the prince,and London being a place of morediverfion than Edinburgh, the gentryw ill continue r to go to London forplaces or pleafure. But allowing the royal afTentwere given to fuch a regulation ; ei-ther with or without an equivalent;and the regulation could be fo ftricllykept, that nothing were imported con-trair to that law and allow 20000 lib. 5
  • 104 MONEY AND TRADEcould be faved of the expencein Eng-land, fo that the import and expenceabroad mould be 60000 lib. lefs thanlaft year: yet there are other difficul-ties, that I fear will make the regula-tion ineffectual. 1. Suppofe the ballance laft yeardue by us was 20000 lib. the importand expence abroad leffened 60000 1.thefe who propofe this regulationmay think a ballance will be due tous of 40000 lib. but as the bank mayhave fupplyed us with 60000 lib.of notes, more than the money inbank: and as 20000 lib. is fuppofedto have been exported laft year: foour money being lelTened 80000 lib.the next years export maybe fo muchlefs valuable, the want of that money having fet idle a part of the people
  • CONSIDERED. IO5were then imployed: and a greaterballance be due than laft year, not-withstanding of the regulation. 2. 40000 lib. firft coft of goodsimported, and 20000 lib. fpent a-broad, leffened the confumption ofthe goods of the country ; and theexport was by fo much greater, as theconfumption of the goods of thecountry was leffened. but this regu-lation occafioning a greater confump-tion of the goods of the country, theexport will be lefs. 3. Several merchants may haveexported goods, tho they had notmuch profit upon the export of them jbut becaufeofthe profit to be madeupon theimport; which being lefTend,may likevvife leffen the export. 4. If Scotland difcharge or put a O
  • lo6 MONEY AND TRADEvery high duty on the goods of othernations, other nations may difchargeScots goods. Allowing there were no difficul-ties in regulating the ballance of trade,and that the fame meafures were fol-lowed as are followed in Holland ;we would grow richer,but their richeswould increafein the fame proporti-on: an d 50 years hence Scotland wouldbeaspoorasnow, in comparifon withHolland. If two countries equal in theirproducT, people, &c. the one witha 1 00000 lib. of money, and livingwithin its yearly value ; fo that thefirft year a ballance is due of 20000 1.the fecond year of 25000 lib. and foon. the other country with 20 milli-ons of money, and confuming more
  • CONSIDERED. I07than the yearly value; fo that a milli-on is fent out to pay the ballance,the fecond year 1200000 lib. and foon. this country will be foon poor,and the other be foon rich :but if thatpeople who has 20 millions of money,will retrench in proportion to the o-ther ; they will be rich and powerfulin comparifon with the other. Confidering how fmall a fharewe money of Europe, have of theand how much trade depends on mo-ney: it will not be found very practi-cable to better our condition, but byan addition to our money, or if it ispracticable without it, it is much morefo with it. The bank will add little to themoney ; for as credit is voluntary, itdepends on the quantity of money in O 2
  • Ic8 MONEY AND TRADEthe country, and tho the bank hadnever failed, yet it could not have keptits credit much longer, becanfe, thequantity of money in Scotland is notfufficient to give a circulation to fucha fum of notes, as will pay the chargesof the bank, and the intereft to theowners. Tis thought the proprietors ofthe bank deflgn to apply to the par-liament for further priviledges: but astheir defign is not yet made publick,I (hall only fay in general, that if o-ther priviledges are to be given, thenit is not the fame bank; at leaf! noton the fame eftablifhment it was: ineither of thefe cafes, every perfonfhould be allowed to fhare in it. When a bank is eftablifhd everyperfon may have a fhare, upon the
  • CONSIDERED. IO<?terms of the act of parliament ; andhe that offers firft is preferred, fup-pofe upon thefettingup of the bank,A. B. and C. did not fubfcribe to it,becaufe they thought the eftabliih-mentnot favourable enough: fo longas they who did fubfcribe can fupportthe bank upon the terms of the acl: ofparliament, none will pretend to anyfhare in it; unlefs the fubfcribers arepleafed to fell, but if other priviledgesare given, A. B. and C. as any othersof the country may defirethe booksto be opened, that they be allowedto fhare in it ; and any other fet ofmen who offer the fame fecurity, mayat the fame time be allowed to fet upa bank with the fame priviledges: foevery (hire in Scotland will defireone. and if new priviledges are given
  • 110 MONEY AND TRADEto this bank, it were a hardship torefufc the fame to others, who areable and willing to give the famefecurity, efpecially when the nationftands in need of more money thanthis bank would be allowed to give out. chap. v.That any meafures propofed for increafing the filver money or eflablifhing a credit promifing a payment of filver money are ineffectual, that filver money has fallen muchfrom the value it had. that land is ofgrea- ter value, that filver may lofe the additional value it receivedfrom being ufed as money. National power and wealth con-fiftsin numbers of people, and maga-zines of home and foreign goods,thefe depend on trade, and trade de-pends on money, fo to be powerfuland wealthy in proportion to othernations, we fhould have money inproportion with them; for the bell:
  • CONSIDERED. Illlaws without money cannot employthe people, improve the product, oradvance manufacture and trade* The meafures have been ufed topreferve and increafe money, or fuchas are now propofed, are attendedwith difficulties ; and tho the diffi-culties were removed, are ineffectual,and not capable to furnifh money foas to improve the country, or extendtrade in any proportion to the im-provements and trade of other na-tions. Credit that promifes a paymentof money, cannot well be extendedbeyond a certain proportion it oughtto have with the money, and we havefo little money, that any credit couldbe given upon it, would be inconsi-derable.
  • 112 MONEY AND TRADE It remains to beconfidered, whe-ther any other goods than filver, canbe made money with the famefafetyand convenience. From what has been faid aboutthe nature of money, chap. i. it isevident, that any other goods whichhave the qualities neceflary in mo-ney, may be made money equal totheir value, with fafety and conveni-ence, there was nothing of humouror fancy in making filver to be mo-ney ; it was made money, becaufe itwas thought bed qualified for thatufe. I fhall endeavour to prove, that an-other money may be eftablifht, withall the qualities neceffary in moneyin a greater degree than filver ; withother qualities that filver has not: and
  • CONSIDERED. II3preferable for that ufe, tho filver werethe product of Scotland, and that bythis money, the people may be em-ployed, the country improved, ma-nufacture advanced, trade domeftickand foreign be carried on, and wealthand power attained. What I propofe, will I hope befound fafe, and practicable ; advanta-geous in general to Scotland, and inparticular to every Scots-man. But as I offer to prove, that whatI fhall propofe is more qualified forthe ufe of money than filver: fo beforeI come to the propofal, I fhall fhewfome defects in filver money ; andthat it has not, nor does not anfwerthe defign of money. Money is the meafure by whichgoods are yalued, the value by which P
  • 114 MONEY AND TRADEgoods are exchanged, and in whichcontracts are made payable. Money is not a pledge, as fomc callit. its a value payed, or contracted tobe payed, with which tis fuppofedthe receiver may, as his occafions re-quire, buy an equal quantity of thefame goods he has fold, or othergoods equal in value to them and : thatmoney is the moft fecure value, eitherto receive, to contract for, or to valuegoods by ; which is leaft liable to achange in its value. Silver money is more uncertain inits value than other goods, fo lefsqualified for the ufe of money. The power the magiitrate has toalter the money in its denominationor finenefs, takes away the chief qua-lity for which filver was made money.
  • CONSIDERED. 115in countries where the money is oftenchanged in the denomination orfinenefs, tis more uncertain to con-tract for money, than it was in theftate of barter to contract for goods,if a 100 ounces of fllver are lent, orcontracted for, and a bond given forthem denominat pounds, payable ina year: in that time half a crown israifed to a crown, and 50 ounces paysthe 100 lent, or contracted for. Tho themagiftrate did never alterthe money in its denomination orfinenefs, yet it is more uncertain inits value than other goods. Goods of the fame kind andquality differ in value, from anychange in their quantity, or in the de-mand for them: in either of thefecafes goods are {aid to be dearer, or P 2
  • Il6 MONEY AND TRADEcheaper, being more or lefs valuable,and equal to a greater or leffer quan-tity of other goods, or of money. Silver in bu Hion or money changesits value, from any change in itsquantity, or in the demand for it: ineither of thefe cafes goods are faidto be dearer, or cheaper; but tis fil-ver or money is dearer or cheaper,being more or lefs valuable, and equalto a greater or leffer quantity of goods* Perifhable goods as corns, ckc.increafe or decreafein quantity as thedemand for them increafes or de-creafes ; fo their value continues e-qual or near the fame. More durable goods as mettals,materials for (hipping, ckc. increafein quantity beyond the demand forthem, foare lefs valuable.
  • CONSIDERED. lJ Silver or money increafes in quan-tity by fo much as is imported to Eu-rope, more than is confumed or ex-ported, the demand has encreafed,but not in proportion to the quan-tity ; for, ift. the fame quantity offilver or money, wont purchafe thefame quantity of goods as before.2dly. 10 per cent was payed for theufeofit ; now tis to be had at 6, inHolland at 3 or 4. An ounce of filver being worth5 fh. and 2 pence, and a crownworth 60 pence, unlefs altered bythe prince, makes mod: people in-fenfibleof any change in the value offilver or money: but as one year theboll of barley is fold for 2 crowns,and the year after for 3 ; this diffe-rence comes from a change in the
  • Il8 MONEYANDTRADEquantity or demand of the barley, orof the money: and that of the moneywill occafion a difference in the price,as well as that of the barely. If laftyear a ioo fheep were foldfor a ioo crowns, and the pcrfonfold them defires this year to buy thefame number of fheep; tho the quan-tity of the fheep, and the demand forthem be the fame as laft year: yet ifthemoneyisincreafedinquantity,andthe demand for it not increafed inproportion, the ioo fheep will be e-qual in value to more money than theyear before, fo the money is cheaper,if the quantity of the money, andthe demand for it be the fame as be-fore ; yet if the fheep are leffer in quan-tity, or the demand for them grea-ter: the ico fheep will be equal to a
  • CONSIDERED. lipgreater quantity of money, fo thefheep are dearer. So tho the magiftrate did neveralter the money, yet tis liable to achange in its value as (liver; fromany change in its quantity, or in thedemand for it: and the receiver isdoubly uncertain whether the mo-ney he receives or contracts for, will,when he has occafion, buy him thefame goods he has fold, or othergoods equal in value to them becaufe ;of the difference may happen in thevalue of the money, or the goodshe is to buy. And this uncertainty is, tho bothmoney and goods were certain in theirquality. The difference of the prices ofmoft goods, from changes in their
  • 120 MONEY AND TRADEquantity, or in the demand for them>would be much prevented, if maga-zines were kept ; but the differencein their prices from the greater orlefTer quantity of, or demand for mo-ney ; cannot be prevented fo long asfilver is the money. That money is of much lefTer va-lue than it was ; will appear by thevalue goods, land, and money had200 years ago. By the afts of the council of E-dinburgh, it anno 1495, appears, thatthe fiars for wheat was 6 fh. and 8pennies Scots money the boll. Anno 1520, claret and whiteFrench wines were ordered to be foldin the taverns at 6 pennies Scots thepint, and ale at 20 pennies Scots thegallon.
  • CONSIDERED. 121 Anno 1526, the milns belongingto the town were lett for4oomerksScots, now they give 13000. The petty cuftoms atLeith thenlett for 1 I5merks. Anno 1 532, the load of malt con-taining 9 firlots, was ordered to be foldat 32 fh. Scots the load. Anno 1551, ordered that the beftmutton bulk be fold for 12 penniesScots, the2d. fort for 10 pennies, andthe worft fort for 3 pennies. A.nno 1553, the 9 firlots of maltold meafure, with the charity, is or-dered to be fold for 36 fh. Scots, thelandwart bread to weigh 40 ounces,and thetownbread 36 ounces the 4penny or plack loaf. Anno 1555, the bakers are orde-red for each boll of wheat, to deliver
  • 122 MONEY AND TRADE7fcore loafs, at 16 ounces the loaf. By an act of the 5th parliament ofQueen Mary, anno 1551. tis ordain-ed, that wines imported upon the eaftand north coafr, fhould not be folddearer than 20 lib. Scots the tun ofBourdeaux wine, and 16 lib. the tunof Rochel wine, the pint of Bour-deaux wine 10 pennies, and the pintof Rochel wine 8 pennies, and thatwine imported upon the weft coaft,be fold no dearer than 16 lib. Scotsthe tun of Bourdeaux wine, and 12or 13 lib. the tun of Rochel wine.8 pennies the pint of Bourdeaux wine,and 6 pennies the pint of Rochelwine. So that what 5 lib. bought 200years ago, will not be bought nowfor a 1 00 lib. nor were goods in great-
  • CONSIDERED. 123er plenty, or of lefs value than now:on the contrail-, as thefe acls weremade to regulat the prices of goods,tis reafonable to think they were inleffer quantity than now, proportion-ed to the demand, fo of more value,but money having increafed in quan-tity, more than in demand, and ha-ving been altered by the prince ; isfallen in value: and a 100 lib. nowis not worth what 5 lib. was worthbefore. Land may be computed to havebeen improved in 200 years, thatwhat pays now two bolls the acre,payed then but one boll: which maybe known from old rentals. Money gave then 10 per cent in-tereft, and as 384 acres, rented at aboll the acre, victual at 8 fh. and 4 d* 0.2
  • 124 MONEY AND TRADEthe chalder; fo the property of thefeacres was equal to, or worth a ioo 1.for a ioo lib. gave 10 lib. intereft,and the 384 acres payed only fuch aquantity of victual, as was fold for10 lib. but as land ( being preferableto money for many reafons) is valu-ed now at 20 years purchafe, thomoney is at 6 per cent: fo that landthen may have been valued 14 yearspurchafe or 140 lib. As the quantity of money has in-creafed fince that time, much morethan the demand for it; and as thefame quantity of filver has receiveda higher denomination, fo of confe-quence money is of leifer value: alefler intereft is given for it: A greaterquantity of it is given for the famequantity of goods, and the land isworth more years purchafe.
  • CONSIDERED. I2J The value of fuch land now, theacre rented at 2 bolls, visual at 8 lib.6 ih. and 6 pence, money at 6 percent,fo land at 20 years purchafe, wouldbe 8000 lib. by this computationmoney is only worth the 20th partof goods, and the 57th part of land,it was worth 200 years ago. part ofthis difference is from the improve-ment made on land, and the greaterdemand for land, the quantity beingthe fame, whereby its value is greater:the reft: of the difference is, from themoney being more encreafed inquantity, than in demand, wherebyits value is leffer, and its ufe lower as :likewife from its being altered in thedenomination. There was then a greater quantityof filver in the fame number of pence
  • 126 MONEY AND TRADEthan there is now: which appears byfeveral acls of parliament made aboutthat time. Anno 1475, in the 8 par. of K.James the 3. the ounce of filverwasordered to be fold for 12 fh. Scots,and 12 groats was made of the ounceof filver. The 3d. of November 1554, byan acl of the town-council of Edin-burgh, the ounce of filver was orde-red to be fold at 18 fh. and 8 penniesScots; but thefe acts do not menti-on the finenefs the filver was of. fup-pofe the fame number of pence hadtwice or 4 times the value of filver inthem that they have now: then filveris only fallen to one tenth, or onefifth of the value it had to goods ; andto one 28th, or one 14 of the value
  • CONSIDERED. 1 27It had to land, but ftill money is fal-len to one 20th of the value it had togoods, and to one 57th of the value ithad to land. The manner of lending money inFrance, and I fuppofe in other RomanCatholick countries j is by way ofperpetual intereft, redeemable by thedebitor, and which the creditor maydifpone or affign, but can never de-mand the principal, and it is ufuryby law to take any intereft for money,if the creditor has power to call forthe principal, tho the term of pay-ment be many years after the moneyis lent, fuppofe the manner of lend-ing in Scotland was the fame 200 yearsago, and that A. B. having 768 acresof land, rented at a boll of victualthe acre, the yearly rent 48 chalder, at
  • 128 MONEY AND TRADE5 lib. Scots the chalder, 20 lib. fieri.C. D. worth a 100 lib. in money, tohave lent it to A. B. and intered be-ing at 1 o per cent, to have receivedan annual intereft of 1 o lib. which heleft to his fon, and thought he hadprovided fufficiently for him, 10 lib.being equal to, or worth 24 chalder ofvictual, but intereft being lowered to6 per cent, money being raifed in thedenomination, and of lefs value by itsgreater quantity : the 6 lib. now paidfor the annual intereft of that 100 1.is not worth one chalder of victual,and 384 acres, or the half of A. Bsland 200 years ago only equal to a100, or a 140 lib ; is now worth 57times that fum, the rental fuppofed tobe doubled, and its value at 20 yearspurchafe.
  • CONSIDERED. 129 In France it has been obferved,that about 200 years ago, the fameland was in 30 years worth double themoney it was worth before, fo landworth a 100 lib. anno 1500, wasworth 200 lib. anno 1530. 400 lib.anno 1560. and [o on, till withinthefe 50 or 60 years it has continuednear the fame value. In England 20 times the quantityof money is given for goods, that wasgiven 200 years ago. in thefe coun-tries tis thought goods have rofe; butgoods have kept their value, tis mo-ney has fallen. Moil goods have increafed inquantity, equal or near as the demandfor them has increafed ; and are at ornear the value they had 20oyearsago.land is more valuable, by improve- R
  • I30 MONEY AND TRADEment producing to a greater value,and the demand incrcafing, the quan-tity being the fame, filver and mo-ney are of lefler value, being moreincreafed in quantity, than in de-mand. * Goods will continue equal inquantity as they are now to the de-mand, or wont differ much: for theincreafe of mod goods depends onthe demand, if the quantity of oatsbe greater than the demand for con-fumption and magazines, what is o-ver is a drug, fo that product will beleffened, and the land imployed tofome other uferif by a fcarcity thequantity be leffer than the demand,that demand will be fupplyed frommagazines of former years ; or if themagazines are not fufficient to anfwer
  • CONSIDERED. 131the demand, that fcarcity cannot wellbe fuppofed to laft above a year ortwo. Land will continue to rife in value,being yet capable of improvement ;and as the demand increafes, for thequantity will be the fame. Silver will continue to fall in value,as it increafes in quantity, the demandnot increafing in proportion ; for theincreafe does not depend on the de-mand, mofl: people wont allow them-felves to think that filver is cheaperor lefs valuable, tho it appears plain-ly, by comparing what quantity ofgoods fuch a weight of fine filverbought 200 years ago, and whatquantity of the fame goods it willbuy now. if a piece of wine inFrance is equal in value to 20 bolls R 2
  • 132 MONEY AND TRADEof oats there, that quantity of oatscan never be worth more or lefs winefo long as the quality, quantity anddemand of both continues the fame:but any difproportioned change intheir quality, quantity or demand, willmake the fame quantity of the one,be equal to a greater quantity of theother, fo if a piece of wine in France,is equal to or worth 40 crowns thereit will always continue fo, unlefs fomedifproportioned change happen in thequantity, quality, or demand of thewine, or of the monev. The reafon is plain, why filverhasencreafed more in quantity thanin demand: the Spaniards bring asgreat quantities into Europe as theycan get wrought out of the mines,for it is dill valued tho not fo high.
  • CONSIDERED. 133and tho none of it come into Britain,yet it will be of lefs value in Britain,as it is in greater quantity in Europe. It may be objected that the de-mand for filver is now greater thanthe quantity, it is anfwered: tho thedemand is greater than the quantity;yet it has not increafed in proportionwith the quantity. 200 years agomoney or filver was at 10 per cent,now from 6 to 3. if the demand hadincreafed as much as the quantity,money would give 10 p. cent as then,and be equal to the fame quantity ofvictual, or other goods that havekept their value, if A. B. having a1000 lib. to lend, fhould offer it at10 per. cent, intereit, and defiredland of 240 chalder of victual rentfor his fecurity, as was ufed to be
  • 134 MONEY AND TRADEgiven 200 years ago: no law thoregulate the intereft of money, A.B.would find no borrowers on thcfeconditions ; becaufe filver havingincreafed more in quantity than indemand, and the denomination beingaltered, money is of lefs value, and isto be had on eafier terms, if the de-mand had encreafed in the fame pro-portion with the quantity, and themoney had not been raifed, the fameintereft would be given now as then,and the fame quantity of victual topay the intereft ; for money keepingits value, 8 fh. and 4 pence would beequal to a chalder of victual, as it wasthen. If 2000 lib. was laid out on plate20oyears ago, it is thought the lofson the plate was only the fafhion,
  • CONSIDERED. I35and the intereft ; but if the 2000 lib.had been laid out on land, the rentof that land would be more than thevalue of fuch plate. Tho money or filver is fo muchfallen from the value it had, yet itsgiven as a value for one half, or twothirds more tHan its value as filver,abftraci from its ufe as money. Suppofe filver to be no more ufedas money in Europe, its quantitywould be the fame,and the demand forit much leffer ; which might lowerit 2 thirds or more j for befides thatthe demand would be lefs, its ufes asplate, &c. are not near fo neceflary,as that of money. Goods given as a value, ought fortheir other ufes to be valuable, equalto what they are given for. filver was
  • I36 MONEY AND TRADEbartered as it was valued for its ufesas a metal, and was at firft given asmoney, according to the value it hadin barter, filver has acquired an ad-ditional value fince, that additionalufe it was applyed to occafioning agreater demand for it ; which valuepeople have not been fenfible of, thegreater quantity making it fall more:but it has kept it from falling fo lowit would have fallen, if it had notbeen ufed as money, and the famequantity had come into Europe. Tis uncertain how long filvermay keep that additional value: ifEngland fet up a money of anotherkind, filver will not fall to one third,becaufe ufed in other places as money;but the leffer demand, befides theordinary fall from the greater quanti-
  • CONSIDERED. 137ty coming intoEnrope, would occa-fion an extraordinary fall perhaps of10 per cent: if the new money thenin England did not encreafe beyondthe demand for it, it would keep itsvalue, and be equal to fo much morefilver at home or abroad than it wascoined for ; as filver would be of lefsvalue, from the ordinary and extraor-dinary fall. If England changed their money,other countries may do the fame, ifHolland alone kept to filver money,the price of filver may be fuppofed tofall immediately 50 percent, from thelelfer demand for it as money, and a100 lib. in Holland be worth no morethan 50 lib. new money in England,whether fent in fpecie or remitted byexchange ; and as more filver camein- S
  • I38 MONEY AND TRADEto Europe, it would fall yet lower,becaufe ofits greater quantity. It may be obje&ed, that in Scot-land the quantity of goods are pro-portioned to the demand as they havebeen fome years ago ; and moneyfcarcer, the demand for it the fameor greater, fo if goods and moneyare higher or lower in value, fromtheir greater or lefTer quantity in pro-portion to the demand for themmoney fhouldby its great fcarcity bemore valuable, and equal to a greaterquantity of goods, yet goods differlittle in price, from what they werewhen money was in greater quantity. To this its anfwered, the valueof goods or money differs, as thequantity of them or demand for themchanges in Europe; not as they
  • CONSIDERED. 139change in any particular country,goods in Scotland are at or near thefame value with goods in England,being near the fame in quantity inproportion to the demand as there :money in Scotland is not above one40th part of the money in England,proportioned to the people, land, orproduct; nor above a 10th part pro-portioned to the demand, if Scotlandwas incapable of any commercewith other countries, and in the ftateit is now, money here would buy 10times the quantity of goods it does inEngland, or more : but as Scotlandhas commerce with other countries,thomoney were much fcarcer thannow, or in much greater quantitythan in England ; if there were but10000 lib. in Scotland, or a million, S 2
  • I40 MONEY AND TRADEthe value of goods would not differabove 30 per cent, from what theywere abroad, becaufe for that diffe-rence goods may be exported, or im-ported, prohibitions may raife thedifference higher. Brittannia languens and otherson trade and money, are of opinionthat goods in any country fall in value,as money in that particular countrygrows fcarcer. that, if there was nomore than 500 lib. in England, theyearly rent of England would notexceed 500 lib. and an ox would befold for a penny, which opinion iswrong, for as the ox might be expor-ted to Holland, it would give a pricein England equal or near to that itwould give in Holland : if moneywere fuppofed to be equally fcarce in
  • CONSIDERED, 141Holland, and other places as in Eng-land, the ox might give no more thana penny, but that penny would havea value then equal to 5 lib. now;becaufe it would purchafe the famequantity of goods in England orother places, that 5 lib. does now. The fame anfwer may be given tothefe who think an addition to themoney of any particular countrywould undervalue it fo, that the famequantity of goods would coit doublethe money as before. If the money and credit currentin England be 15 millions, Scotlandreckoned as 1 to 10, the money inScotland encreafed to a million and ahalf, the demand in proportion tothe demand in England that ; additi-on to the money of Scotland, would
  • I42 MONEY AND TRADEnot make money of lefs value here,than it is now in England, goodsin Scotland would fell as they fell inEngland, the product of the countrywould perhaps be 10 or 20 per centdearer, to bring it equal to what itfells in England but ; all forts of ma-nufacture would be cheaper, becaufein greater quantity: and all goods im-ported would be cheaper, money be-ing eafier borrowed, merchants woulddeal for a greater value, and men ofeftates would be capacitate to trade,and able to fell at lefs profit, norwould land rife higher than in Eng-land, the buyer having in his choiceto buy elfewhere the ; better fecurityof a regifter may be fuppofed to adda years purchafe or two to the value. If the money of any particular
  • CONSIDERED, I43country fhould encreafe beyond theproportion that country bears to Eu-rope ; it would undervalue moneythere, or, according to the way offpeaking, it would raife goods: butas money would be undervalued everywhere the fame, or near to what itwere there ; it would be of great ad-vantage to that country, tho therebymoney were lefs valuable: for thatcountry would have the whole benefit f the greater quantity, and only beara (hare of the leffer value, accordingto the proportion money had to itsthe money of Europe, when theSpaniards bring money or bullion in-to Europe, they leffen its value, butgain by bringing it ; becaufe they havethe whole benefit of the greater quan-tity, and only bear a fliare of thelef-fer value.
  • 144 MONEY AND TRADE What has been faid, proves, ift.that filver money is an uncertain va-lue ; becaufe lyable to be altered inthe finenefs or denomination by thethe prince. A crown has no morefilver in it than half a crown or 15pence had a 150 or 200 years ago. 2dly. That as filver it has fallenfrom the value it had, the fame quan-tity not being worth thejthonothpart of what it was worth then.A moneyed man then worth a1000 lib. was richer at that time thana landed man of 240 chalder of victualrent: but a man of fuch a moneyeftate, would not now be worth one50th part of fuch a land eftate. 3<Jly, That tho fallen fo much,yet it is given as money or fold as bul-lion, for much more than its value as
  • CONSIDERED. I45a metal ; to which it will be reduced,fo foon as another money is fet up. Confidering the prefent ftate ofEurope, France and Spain being ma-ilers of the mines, the other unionsfcem to be under a neceflity of fettingup another money, the only reafon canbe given why it has not yet been done,is, that the nature of money has notbeen rightly underflood : or theywould not have continued buying fil-ver from Spain above its value as a me- when they had a more valuabletal,money of their own; and every waymore fitted for that ufe. The receiver of filver can have nogreat hopes that the value of it will begreater; for tis not to be fuppofed itwill be applyd to any other ufes, thanit is now applyd to, whereby the de- T
  • I46 MONEY AND TRADEmand for it may be encreasd : or thatthe quantity exported and confumd,will be greater than the quantity im-ported. Tho it be fcarce in any particularcountry, yet the moneyd men willhave no great benefit by fuch fcarci-ty, as has been mown : for unlefs thefcarcity is the fame in all places withwhich that country trades, moneywill not be valued much higher therethan in other countries. If it is alledged the mines in theWeft Indies may fail, tis the intereftof the Spaniards to give out that theirmines begin to fail, to keep up theprice of filver ; but if that were true,France ought not to have engaged herfelf in a war, when by the partitiontreaty fhe could have got any other
  • CONSIDERED. I47parts of that monarchy that are va-luable, allowing the mines do fail, weought the rather to provide ourfelveswith another money. CHAP. VI.The propofal given in to Parliament by Dr. H. C. ex- amined. I did not intend to have faid anything about the Drs propofal, thataffair having been referrd to a com-mittee, who are to make their report,but feveral people who are of opinionthat the Drs propofal is not practi-cable, being againft what I am topropofe, becaufe they think tis thefame with his in fome other drefs : Ithought it needful to give a fhort ac-count of the Drs propofal, and inwhat I differ from him. His propofal is to give out notes T 2
  • I48 MONEY AND TRADEupon land, to becancelfd by yearlypayments of about 2 and a quarterper cent, for 45 years, and that thefenotes be current as filver money, tothe value they are coind for. If notes given out after that man-ner, were equal in value to filver mo-ney ; then every landed man in Scot-land, would defire a fhare of this greatand certain advantage: and I dontfeehow it is practicable to give everylanded man a fhare. Suppofing it practicable, 45 yearspurchafe in thefe notes, will not be offomuch value, as 20 years purchafeof filver money. No anticipation is equal to whatalready is. a years rent now is worth15 years rent 50 years hence, becaufethat money let out at intereft, by that
  • CONSIDERED. 149time will produce fo much, and thothe parliament would force thefcnotes, yet they would not have cur-rency, any more than if the govern-ment coind pieces of gold equal inweight and finenefs, with a guinea,and ordered them to pafs for 5 lib. Thefe bills are proposd to be re-payd and cancelld in a term of years,without paying any intereft, but onlyfomuch as would defray the chargesof the office, which would not beabove one half per cent. There would then be many len-ders, but few if any borrowers, exceptfrom the land bank for as tis the lan- :ded man borrows of the moneyd man,he would fatisfie his creditor,and havebills to lend, the moneyd man wouldlikewife have of thefe bills to lend,
  • I3C MONEY AND TRADEbut there would be no borrowers orif any defired to borrow, they wouldhave thefe bills at a very low ufe. fup-pofe at 2 per cent, then thefe billswould be confiderably lefs valuablethan filver. Any thing that is proposd to havea currency as money, and is given fora leffer intereft than filver money, willbe of lefs value. It is not to be fupposd any perfonwill lend filver money at 2 per cent,when they can have 6 per cent inEngland, fo a 100 lib. filver money,will yield as much as 300 lib. of thefebills would and 100 : lib. in filver, willbe equal to 300 lib. in bills, the 6 lib.the ioo lib. of filver yields, being fil-ver, and the 6 lib. the 300 of billsyields, being payed in thefe bills : and
  • CONSIDERED. 151I lib. filver, being worth 3 lib. in billsfo the 6 lib. intereftof the 100 lib. infilver, would be equal to 1 8 lib. or theintereft of 900 lib. in bills. And tho they were given out to berepayd in 20 years, at 5 per cent forthat time ; or in 10 years, at 10 percent : they would not be equally va-luable with filver. the difference wouldnot be fo great, as when given out for45 years. The advantage the nation wouldhave by the Drs propofal is that tho ;thefe notes fell under the value of fil-ver money, and 500 lib. in notes wereonly equal to a 100 lib. in filver; yetthe nation would have the fame ad-vantage by that 500 lib. in notes, asif an addition of a 100 lib. had beenmade to the filver mone
  • IJ2 MONEY AND TRADE So far as thefe bills fell under the va-lue of the filver money, fo far wouldexchange with other countries beraisd. and if goods did not keep theirprice, ( i. e. ) if they did not fell for agreater quantity of thefe bills, equalto the difference betwixt them and fil-ver : goods exported would be under-valued, and goods imported wouldbe overvalued, as has been explaindpage 43 and 44 about exchange. The landed-man would have no ad-vantage by this propofal, unlefs heowed debt: for tho he received 50 lib.of thefe bills, for the fame quantity ofvictual he w as in ufe to receive, 10 r lib.filver money ; yet that 50 lib. wouldonly be equal in value to 10 lib. of fil-ver, and purchafe only the fame quan-tity of home or foreign goods.
  • CONSIDERED. I53 The landed-man who had his rentpayd him in money, would beagreatlofer. for by as much as thefe billswere under the value of filver, hewould receive fo much lefs than be-fore. The landed-man who owed debt,would pay his debt with a lefs valuethan was contracted for : but the cre-ditor would lofe what the debtorgaind. Dr. C. feems to be offended at mymeddling in this affair, having, ashe fays, borrowd what I know ofthis fubject from him. Two perfonsmay project the fame thing, but fofar as I can judge, what I am to pro-pofeis different from his, and what Ihad formd a fchemeoffeveral yearsbefore I had feen any of his papers U
  • 154 MONEY AND TRADEwhich I can prove,if that were neceffa-ry,by perfonsof worth I then fhowdit to. I have not, to my knowledge,borrowed any thing from Dr. C. landindeed is the value upon which hefounds his propofal.andtis upon landthat I found mine:if for that reafon Ihaveincroacheduponhispropofaljthebank of Scotland may be faid to havedone the fame: there were banks inEurope long before the Drs propofal,and books have been writ on the fub-je<ft before and fince. the foundationI go upon has been known [o long asmoney has been lent on land, and folong as an heretable bond has beenequal to a quantity of land, whetherthe ftruclnre he or I have built uponthat foundation be moft fafe, advanta-
  • CONSIDERED. 155gcous and practicable, the parliamentcan beft judge. Dr. Cs propofal is by anticipati-on, to make land worth 50 or a 100years purchafe; and maintains that a100 lib to be payed yearly for 10, 50,or a 1 00 y ears,is a valuable pledge for a1 000, 5000, or a 1 0000 1. of bills and :that thefe bills will be equal to filver-money. if he can fatisfie the nationthat his propofal is practicable, he doesa very great fervice, and gives a certainadvantage to the landed-man,withoutwronging the money d-man. I havefhown the reafons why I think thepropofal is not practicable ; and thatnotwithftanding any aft of parliamentmade to force thefe bills, they wouldfall much under the value of filver. butallowing they were at firft equal to fil- U 2
  • I56 MONEY AND TRADEver, it is next to impoffible that twodifferent fpecies of money, fhall con-tinue equal in value to one another. Every thing receives a value fromits ufe, and the value is rated, accor-ding to its quality, quantity and de-mand, tho goods of different kindsare equal in value now, yet they willchange their value, from any unequalchange in their quality, quantity, ordemand. And as he leaves it to choice ofthe debtor, to pay in filver-money orbills ; he confines the value of the bills,to the value of the filver-money, butcannot confine the value of the filver-money to the value of the bills : fothat thefe bills muft fall in value as fil-ver-money falls, and may fall lower :CJver may rife above the value of thefe
  • CONSIDERED. I57bills, but thefe bills cannot rife abovethe value of filver. What 1 (hall propofe, is to makemoney of land equal to its value; andthat money to be equal in value to fil-ver-money and not lyable ; to fall invalue as filver-money falls. Any goods that have the qualitiesneceflary in money, may be made mo-ney equal to their value. 5 ounces ofgold is equal in value to 20 lib. andmay be made money to that value, anacre of land rented at 2 bolls ofvictual, the victual at 8 lib. and land at20 years purchafe, is equal to 20 lib.and may be made money equal to thatvalue, for it, has all the qualities ne-ceflary in money, but that acre of landcannot be coind to the value of 50lib. no more than the 5 ounces ofgold.
  • IjS MONEY AND TRADEand tho the5 ounces of gold,the 20filver-money and the acre of land, benow equal in value; yet they cannotwell continue fo : for as I have fhownalready, any difproportiond changein the quality, quantity, or in the de-mand of either of them,will make thefame quantity of the one, equal to agreater or leffer quantity of the o-thers. land is what in all appearancewill keep its value beft, it may rife invalue, but cannot well fall :gold or fil-ver are lyable to many accidents,whereby their value may lefTen but ;cannot well rife in value. chap. VII. The propofal with reafins-for it. To fupply the nation with money,it is humbly proposd, that 40 com-miffioners be appointed by parlia-
  • CONSIDERED. 150inent, anfwerable to parliament fortheir adminiftration, and the adminis-tration of the officers under them : thenomination of thefe officers being leftto the commiffioners. That the commiffioners have pow-er to coin notes: which notes to be re-ceived inpayments, where offerd. That a committee of parliament beappointed to infpect the management,and that none of the commiffionersbe members. That the commiffion and commit-tee meet twice a year at Whifundayand Martinmafs 5 their meetings, tobegin 1 o days before, and to continue10 days after each term. There are three ways humbly of-ferd to the parliament, for giving out
  • l6o MONEY AND TRADEthefe notes they in their : wifdom maydetermine which will be moft fafe. i . To authorize the commiflion tolend notes on land fecurity, the debtnot exceeding one half, or two thirdsof the value and : at the ordinary in-tereft. 2. To give out the full price of land,as it is valued, 20 years purchafe moreor lefs, according to what it wouldhave given in filver-money, the com-miflion entring into poffeffion of fuchlands, by wadfet granted to the com-miflion or afllgneys j and redeemablebetwixt and the expiring of a term ofyears. 3. To give the full price of land,upon fale made of fuch lands, and dis-poned to the commiflion or afligneysirredeemably.
  • CONSIDERED. l6l That any perfon fliall have fuchbonds, wadfets, or eflates afligned ordifpond to them, upon paying in thevalue to the commiffion. That the commiffion dont receiveother money than thefe notes. That no perfon who has contrac-ted for thefe notes, fhall be obligedto receive filver or metal money. That the commiffion have notpower to coin more than 50000 lib. ata time, and that no more be coind folong as there is 25000 lib. remainingin the office. That for a year and a halfthe com-miffion be limited to a certain fum, af-ter that time to have power to coinwhat funis are demanded : unlefs re-flected by enfuing parliaments. That thefe who defire to have mo- x
  • l6z MONEY AND TRADEney from the commiffion, give in anote to the lawyers for the commiffi-on, a month before the term, of whatfunis they want, with therightsof thelands they offer in pledge: and thatthefe who have notes to pay in to thecommiffion, give warning 10 days be-fore the term. That the (tateof the commiffion,thefum of notes coind, the debt andcredit, with the highcft number ofthe different notes, be publifhd everyterm. That any perfon who fhall difco-ver2 notes of the fame number, or ofa higher number than thefe publifhd,fhall have a ioo lib. reward. Thattheunder-officersbeintruftedwith the fum of 20000 lib. to changenotes with; and that they attend thewhole year.
  • CONSIDERED. 163 That any member of parliamentmay infpecl the (late of the commifli-on. That no notes be coined, moneylent, or rights affigned by the commif-fion, but at the terms of Whitfundayand Martinmafs and in prefence ofat :leaft 20 commiffioners, and one thirdof the committee. That the revenue of the commif-fion, over what pays the charges, andwhat part the parliament thinksneedful to make good any loffes mayhappen to the commiilion, be apply-ed by way of drawback, for encou-raging the export, and manufactureof the nation. That paper-money do not rifemore than 10 per cent above filver-money ; fo that he who contracts to X 2
  • I<$4 MONEY AND TRADEpay in paper, may know what he isto pay in cafe he cannot get paper-money. The paliament may enter into arefolve, that the next feflions of thisor the next enfuing parliament, thefrate of the commiffion be taken intoconfideration, preferable to all otherbufinefs: and if found hurtful to thecountry, the parliament may dif-charge any more notes to be givenOut, and order what notes are thenout to be called in. That after 3 months from thedate of the aft, Scots and foreign mo-ney be reduced to the Englifh ftand-ard. the Englifti crown to 60 pence,and the other money in proportionto its value of filver. the 40 pence to38 pence, the new mark to 13 pence
  • CONSIDERED. 165J, the old mark to its weight, the du-catdowns to 68 pence, dollars totheir weight, guineas not topafs 22 fh. That 4 months no Scots mo- afterney, (except what fhall be coined af-ter the act) nor any foreign moneyexcept the Englifh money, be receiv-ed in any payments, or be fold as bul-lion but at the mint. That for what old money or bul-lion is brought to the mint, the mintreturn to the full value in new mo-ney of 12 pence, 6 pence, and 3pence pieces of eleven deniers fine, ;the 12 pence of 3 drops 3 grainsweight, the other pieces to weigh inproportion : the expence of coinageto be payed out of the funds appro-priated to that ufe. That for 3 months, after the acl,
  • J 66 MONEY AND TRADEthe new money pafs for 13 pence,6 pence half-penny, and 3 pence*. That after 3 months, bullion andwrought plate be of eleven deniersfine, and 5 fh. and 2 d. the ounce offilver, gold not to pafs 4 lib. The paper-money propofed willbe equal in value to filver, for it willhave a value of land pledgd equal tothe fame fum of filver-money thatit is given out for. if any lofles fhouldhappen, one 4th of the revenue ofthe commiflion, will in all appea-rance be more than fufficient to makethem good. This paper-money will not fall invalue as filver-money has fallen, ormay fall : goods or money fall in va-lue, if the increafein quantity, or ifthe demand leffens. but the commit-
  • CONSIDERED. I 67Hon giving out what fums are demand-ed, and taking back what fums areoffered to be returned ; this paper-money will be keep its value, andthere w ill always be as much money ras there is occafion, or imploymentfor, and no more. If a contract for paper-money couldbe fatisfied by paying the fame quan-tity of filver money, then that paper-money could not rife above the valueof filver, and would fall with it. butas the paper money is a differentfpecies from filver, fo it will not belyable to any of the changes filvermoney is lyable to. Tho the parliament could givefilver money to the people, in asgreat quantity as there were occafi-on: the parliament could not juftly
  • l68 MONEY AND TRADEknow what fum would ferve thecountry, for the demand changes, ifthe quantity of money is lefs thanthe demand, the landed man is wron-ged : for a ioo lib. then being morevaluable, will buy a greater quantityof the landed mans goods, if thequantity of money is greater than thedemand, the moneyd-man is wron-ged, for a ioolib. then is not fo va-luable, fo will not buy the fame quan-tity of goods a i oo lib. bought before. If the commiffion do not give outmoney when it is demanded, wheregood fecurity is offerd ; tis a hard-ship on theperfon who is refufed, anda lofs to the country : for few if anyborrow money to keep by them ; andif employ d it brings a profit to thenation, tho the employer lofes.
  • CONSIDERED. I 69 If the commiilion did not take backwhat funis were offerd to be returnd,it were a hardfhip on the moneydman, who has a funi payed him, anddoes not know how to employ it ; andthe quantity being greater than the de-mand for it, would fall in value. After the method proposd, thequantity being always equal to the de-mand for it, it will keep its value, andbuy the fame quantity of goods 50years hence, as now: unlefs the goodsalter in their value, from any changein their quantity, or in the demand forthem. Suppofe this comrniffion had beeneftablifht 200 years ago, land then at14 years purchafe, money at 10 percent, viclualat 8fhil. and 4 pence thechalder, and paper money to have been Y
  • I70 MONEY AND TRADEgiven out upon land ; 8 fliil. and 4pence of that paper money, wouldnow have been equal to a chalder ofvictual, and to 8 lib. 6 fh. and 4 pencefilver-money : becaufe filver-moneyhaving increasd in quantity, morethan the demand; and having been al-tered in the denomination, has fallento one 20th of the value it had then,nor would the landed man have re-ceivd lefs for his victual, than now;for that paper-money would havebought him 20 times the quantity ofgoods, filver-money will buy. Land has amore certain value thanother goods, for it does not encreafein quantity, all other goods may. theufesofgoodsmaybedifcharged, or bycuftom be taken from them, and givento other goods : the ufe of bread may
  • CONSIDERED. I7I be taken from oats, and wholly given to wheat: the ufe of money may be taken from filver, and given to land: the ufe of plate, and the other ufes of filver as a metal, may be taken from filver, and given to fome other metal,. or fome mixture that may be more fit- ted for thefe ufes. in any of thefe cafes, thefe goods lofe a part of their value, proportionate the ufes are taken from them but land cannot : lofe any of its ufes. for as every thing is produced by land, fo the land muft keep its value, becaufe it can be turnd to produce the goods that are in ufe. if wheat is more usd, and oats lefs, as the land can produce both, it will be turnd to produce what is mod: ufed, becaufe moil: valuable. This money will not receive any ad- Y 2
  • 172 MONEY AND TRADEditional value from being ufed as mo-ney, fo the receiver will be certain hecan be no lofer, tho after a term ofyears the ufe of money is taken fromit. the land will receive an additionalvalue, from being ufed as the pledgeupon which the money is iffued ;and that additional value would begreater than what filver received :be-caufe, tho land be ufed as the pledgeto ilfue out money upon, yet none ofits other ufes would be taken from it:filver cannot be usd as money andplate at the fame time, but as land isin greater quantity than there will beoccafion for to give out money uponfo the additional value it receives, willnot be near fo great as that filver-mo-neyhasreceivd. Suppofe the additional value land
  • CONSIDERED. I73received were one 4th, land now at 20years purchafe, would then be at 25years purchafe. if the parliament calldin the paper money, he who had pa-per money could be no lofer by it,tho the land loft the additional valuefor no more of it is given out than thevalue of the land abftraft from its ufeas money, whereas if filver was nomore ufed as money, he who had fil-ver, would lofe a half, or 2 thirds; fil-ver falling then to its value as a metal. So that this paper money proposd,having a better value than filver ; andreceiving no addition to its value, frombeing ufed as money and not being ;lyable to any change in its value,the quantity and demand encreafinganddecreafing together : it is fo farmore qualified to be the meafure by
  • 174 MONEY AND TRADEwhich goods are valued, the value bywhich goods are exchanged, and inwhich contracts are made payable. The other qualities neceflary inmoney, are, i.Eafy of delivery. 2. Of the fame value in one place towhat it is in another. 3. To be kept without lofs or ex-pence. 4. To be divided without lofs. 5. To be capable of a (lamp. Paper money has thefe qualities ina greater degree than filver. 1. It is eafier of delivery: 500 lib.in paper may be payed in lefs time,than 5 lib. in filver. 2. It is nearer the value in one placeto v/hat it is in another, being of eafiercarriage.
  • CONSIDERED. 175 3. It can be eafier kept; taking uplefs room, and without lofs ; becaufeit may be exchanged at the office, theconfumption of paper is not of fomuch value as the confumption of (li-ver, the confumption of the paper isa lofs to the office, the confumptionof filver is a lofs to the owner. 4. It can be divided without lofs :becaufe it may be changed for leffernotes at the office. 5. It is capable of a ftamp, and lefsliable to be counterfeit. The practice of more trading nati- ons confirms, that paper is more qua- lified for the ufe of money, than fil- ver ; providing it hath a value, in Hol- land filver is pledgd, and paper is ufed as money, that land pledgd is a better value than filver pledgd, is evident
  • I76 MONEY AND TRADEfrom what has been faid. in England,before the bank was fet up, gold-fmiths notes were received in pay-ments preferable to gold or filver:which mows that paper money had allthe qualities necelfary in money, fomuch more than gold or filver, as toequal the danger of a gold-fmithsbreaking, of which there were manyexamples. Mr. Lock, pag. 7th on in-tereft of money, fays, that one gold-fmiths credit (being ufually a noteunder one of his fervants hands) wentfor above eleven hundred thoufandpounds at a time. The notes of the bank in Scotlandwent, tho there was no money in thebank, and tho their acceptance wasvoluntary, the fecurity for the paperproposd will be as good, the adminif-
  • CONSIDERED. 177tration may be more fafe and fatisfac-tory than that bank, or any other pri-vate bank; becaufeitis more public,and the commiffion has not any fhareof the profits, befides it will not beliable to the hazard banks are liable to,from the fale of fhares. And it feems ftrange that the admi-niftration of fuch a commiffion fliouldbe doubted, when the parliament hasthe nomination of the managerswhen the managers are to be accoun-table to the parliament; when the truftis to be fo fmall, for more notes cannotbe coindfolong as 25000 lib. is in theoffice; a committee of parliament is tobe appointed to infpedt the manage-ment, the books are to be open to theinfpeclion of any member of parlia-ment, and the ftate of the commiffi-on is to be publifhed in print. Z
  • 173 MONEY AND TRADE Since the notes of the bank wentupon a voluntary acceptance, thothere was no money in bank ; tis rea-fonable to think the paper money pro-posd will at leaft have the fame cur-rency being current by law does not :make it lefs valuable, he who tookbank notes,could not be fure the bankwould be in a condition to give mo-ney for them ; and the perfon he wasto pay money to, might refufe them :fo he was more uncertain, than if theyhad been current by law. The filver money being to fall be-twixt 8 and 9 per cent in 3 months,it is not to be fupposd that filver willbe preferd to paper money ; fincethe notes of the bank, which is paperupon the fame fund, went at the ordi-nary intereft: and tho the receiverwas not certain of the money at the
  • CONSIDERED. I79time it was promifed, or that the per-fon he was owing to would receive it. may be objected, that paper went Itbecaufe filver could be got for it whendemanded, or at a certain time. That was very reafonable, butwould not be fo in this cafe : the fecu-rity pledgd for that paper money,wasfilver. the fecurity pledgd for this pa-per money, is land, this money has norelation to gold or filver, more thanto other goods, and it were more extra-vagant to fay, I wont take a 100 lib.of fuch paper money for the goods Ifell,becaufe I am not fure if 6 monthshence it will buy me fuch a quantityof filver ; for filver may grow dearer:as it would be to fay now, I wont takea 1 00 lib. in filver for the goods I fell ;becaufe I am not fure if 6 months Z 2
  • l8o MONEY AND TRADEhence, it will buy me fuch a quantityof wine, for wine may grow dearer. 4 Crowns wont buy a guinea, thothey were coind for the fame valuenor wont buy the ioth part of goods4 crowns bought 200 years ago, yetfilver is received as a value, and con-tracted for, tho its value leffens everyyear, and tho tis not perhaps worthabove a third of what tis given or con-tracted for, abftraft from the ufe ofmoney, this paper proposd will notonly keep its value ; the encreafe ofthe quantity depending on the de-mand, and the quantity decreafmg asthe demand decreafes : but likewifethe land pledgd is as valuable as thepaper given out, abftratt from its ufeas money, and encreafes in value. The objection may bemadeagainfi:
  • CONSIDERED. l8lfilver money, and with good reafon ;for it falls fatter in its value than othergoods, and may foon be reduced to itsvalue as a metal. The paper money proposd is equalto its felf ; but to continue equal tofuch a quantity of any other goods, isto have a quality that no goods canhave for that depends on the changes :in thefe other goods.it has a better andmore certain value than filver money,and all the other qualities neceffary inmoney in a much greater degree, withother qualities that filver has not, andis more capable of being made moneythan any thing yet known, land iswhat is mod: valuable, and what en-creafes in value more than othergoods ; fo the paper money iiTuedfrom it, will in all appearance not on-
  • l82 MONEY AND TRADEly keep equal to other goods,but rifeabove them. Becaufe of the extraordinary fear-city of filver in Scotland, and the in-clination people have to it, from itshaving been long ufed as money; itmay be neceffary to reftricl: its price to5 fh. and 2 pence the ounce: but itwill foon fall from that value of paper,ifitcomein greater quantity into Eu-rope, than is exported orconfumd. Suppofe an ifland belonging to oneman, the number of tenents a 100,each tenent 10 in family, in all a1000 ; by thefe the ifland is labourd,part to the product of corns, the reftfor pafturage befides the tenents and :their families, there are 300 poor oridle, who live by charity, there is nomoney, but rents are paid in kind, and
  • CONSIDERED. 183if one tenent has more of one pro-duct, and lefs of another than his fa-mily has occafion for, he barters withhis neighbour. The people of this ifland know no-thing of manufacture; the ifland beingplentiful, fumifhes enough for theirconfumption, and an overplus whichthey exchange on the continent forcloaths, and what other goods theywant:but as that overplus is only fuffi-cient to make a return of fuch a quan-tity of goods as they confume yearly,fo they have no magazines of theirown or foreign goods to ferve them inbad years, nor no magazines of arms,ammunition, &c. for their defence. Tis proposd to the proprietor, thatif a money were eftablifhd to pay thewages of labour, the 300 poor might
  • 184 MONEY AND TRADEbe imployed in manufacturing fuchgoods as before were exported in pro-duct ; and as the 1000 that labour theground were idle one half of theirtime, they might be imployed fo astheir additional labour would be equalto that of 500 more, which would lef-fen their import by providing themwith a part of fuch goods as beforethey brought from the continent, andraife their export to 3 or 4 times thevalue it had: the return of which wouldfurnifh them with greater quantitiesof foreign goods than they wantedfor confumption, which might be laidup in magazines. The money proposd is after thismanner, the proprietor to coin piecesof paper figured number 1, number 2,and fo on ; number 4 to be equal to
  • CONSIDERED. 185a certain meafure of corn, the poorand other labourers would be fatisfiedto take number 4 for the wages of adays labour, providing it be fo con-trivd that number 4 purchafe themthe meafure of corn; for as that corncan be barterd with other goods, fonumber 4 would purchafe an equalvalue of any other goods. To make number 4 equal to thatmeafure of corn, the proprietor callshis tenents together; tells them for thefuture, he will have his rent payed inpaper,fo renews their leafes, and wherea 1 00 meafures of corn was payed,they oblige themfelves to pay himnumber 400. the other kinds the pro-prietor was payed in are valued, accor-ding to the value they had in barterwith corn and ; leafes made for paper. Aa
  • lS6 MONEY AND TRADE The proprietor coins paper to thevalue of a years rent, imploys fuch asare willing to work, and gives them pa-per-money as the price of their labour,the tenent gives corn or any othergoods he has to the labourers for pa-per-moneyed the proprietor receivesit for his rent, but as the confumptionof the labouring man may be fupposdto be only equal to number 2 ; fo thetenents cannot get the whole fum hTu-ed by the proprietor, and confequentlynot enough to pay their rent, if thiswere not remeeded, the labouringmen being matters of the remainingpart of the paper, and having no occa-lion for more goods from the tenents,might raife the value of the paper, toprevent this, the proprietor coins agreater quantity, which brings a part
  • CONSIDERED. 187of the poor and idle of the continent tothe ifland, and occafionsa greater con-fumption, whereby the tenents areable to pay their rent in paper as con-tracted for. the addition to the peopleis an advantage to the ifland for it adds jto the power of the ifland, and theirlabour is worth double what theyconfume. This money tho it has no valuebut what the proprietor gives it, byreceiving it in payments of his rent;yet it will be efteemd equal to the pro-duct payed before. If the proprietor would give it avalue in land, computing after thismanner an : acre of land pays number1 00, at 20 years purchafe worth num-ber 2000. and difpone the propertyof land for paper at that value ; who Aa 2
  • l88 MONEY AND TRADEwould not be fatisfied to receive orcontract for that money, fince it notonly bought the product, but the pro-perty ofland at a reafonable price? Money is not the value for whichgoods are exchanged, but the value bywhich they are exchanged the ufe of :money is to buy goods, and filver whilemoney is of no other ufe. Tho filver were our product, yet itis not fo proper to be made moneyas land, land is what produces everything, filver is only the product, landdoes not increafe or decreafe in quan-tity, filver or any other product may.fo land is more certain in its valuethan filver, or any other goods. Land is capable of improvement,and the demand for it may be greater ;fo it may be more valuable, filver can-
  • CONSIDERED. 189not be fupposd to be apply d to any-other ufes, than it is now apply d to ;or that the demand will encreafe morethan the quantity. Land cannot lofe any of its ufes, fowill not be lefs valuable ; (liver maylofe the ufe of money it is now applydto, fo be reducd to its value as a metal. It may likewife lofe a part of itsufes as a metal, thefe ufes being fup-plyd by other goods : fo lofes a part ofits value as a metal, but nothing canfupply the ufes of land. Land may be convey d by paper,and thereby has the other qualitiesneceffary in money, in a greater degreethan filver. Land has other qualities fitting itfor the ufe of money, that fdver hasnot.
  • 100 MONEY AND TRADE Land applyd to theufe of money,does not lofe any of the other ufes itis applyd to : filver cannot ferve theufe of money, and any of its other ufesas a metal. Trade and money depend mutuallyon one another ;when trade decays,money leffens ; and when money lef-fens, trade decays, power and wealthconfifts in numbers of people, and ma-gazines of home and foreign goodsthefe depend on trade, and trade onmoney, fo while trade and moneymay be effected directly and confe-quentially ; that which is hurtful to ei-ther, mufl: be fo to both, power andwealth will be precarious. If a money is eftablifhd that has nointrinfick value, and its extrinfick va-lue to be fuch, as it will not be expor-
  • CONSIDERED. ipited ; nor will not be lefs than the de-mand for it within the country .-wealthand power will be attained, and be lefsprecarious, money not being liable tobeleflend directly, nor consequenti-ally ; and trade not liable to decay con-fequentially. fo the power and wealthof that country will only be precari-ous, from what may be directly hurt-ful to trade. The paper money proposd beingalways equal in quantity to the de-mand, the people will be employed,the country improvd, manufactureadvancd, trade domeftick and foreignwill be carried on, and wealth andpower attained, and not being liableto be exported, the people will not befet idle, <kc. and wealth and powerwill be lefs precarious.
  • Ip2 MONEY AND TRADE From whence it is evident, thatland is more qualified for the ufe ofmoney than filver ; and preferable forthat ufe tho filver were the product ofScotland being more certain in : its va-lue,and having the qualities neceffaryin money, in a greater degree : with o-ther qualities that filver has not; fomore capable of being the generalmeafure by which goods are valued,the value by which goods are exchan-ged, and in which contracts are taken. If 2000 lib. of paper money, is e-qual to the property of land worth2000 lib. in filver; then that 2000 lib.of paper money, is equal to 2000 lib.of filver. What buys land, will buy everything the land produces ; and whatbuys the product of land, will buy
  • CONSIDERED. I93all other goods whether home or fo-reign. if wine is brought from France,the merchant defigns to lay out hismoney on goods, at intereft, or onland the commiffion does not receive :filver money, fo he cannot have abond from the commiffion, unlefs hegive the value in paper ; and many ofthe landed men wont take filver fortheir goods or lands, having occafionfor paper to pay the commiffion. fothe merchant will choofe to fell hiswines for paper money, becaufeit willpurchafe him goods, bonds or landswhere filver money will,being equal-ly valuable: and in cafes where filvermoney will not. And this is fuppofing filver wereequally qualified for the ufe ofmoney,as land is. but as filver is an uncertain Bb
  • 194 MONEY AND TRADEvalue, and is given for much morethan its value as a metal; and has notall the qualities neceffary in money,nor in fo great a degree as paper mo-ney : fo paper money will for thefe o-ther reafons be preferd to filver. Some object that a paper moneythouponagood fund, and current inthe country; yet will not be valuedabroad, equal to what it were in Scot-land. The goods of Scotland will al-ways be valued abroad, equal togoodsof the fame kind and goodnefs and ;that money tho of paper, which buysgoods in Scotland, will buy goods ormoney in other places, if a iooo lib.in ferges, linen cloth, &e. be worthabroad all charges payed 1300 lib. themerchant who exports fuch goods,
  • CONSIDERED. 195will give a bill for that money at thepar, having 1300 lib. for what cofthim a 1000. When a nation eftablifhes a mo-ney, if the money they fetup, have avalue equal to what it is made moneyfor, and all the other qualities necef-fary in money; they ought to have noregard what value it will have in o-ther countries, on the contrair, asevery country endeavours by laws topreferve their money, if that peoplecan contrive a money that will not bevalued abroad ; they will do what o-ther countries have by laws endea-vour din vain. No nation keeps to filver becaufeit is ufed in other countries, it is be-caufe they can find nothing fo fafeand convenient, trade betwixt nations Bb 2
  • 1 96 MONEY AND TRADEis carried on by exchange of goods,and if one merchant fends out goodsof a lefs value, than he brings home ;he has money furnifhd him abroadby another who brings home for alefs value than he fent out : if there isno money due abroad, then the mer-chant who defigned to import for agreater value than he exported, is re-ftricled ; and can only import equalto his export, which is all the manylaws to regulate trade have been en-deavouring. It is objected that we are under aneceflity of having goods from coun-tries who will take none of ours.France does not allow money to beexported, nor any fliip to importgoods, unlefs French goods are expor-ted from the fame port ; to the value of
  • CONSIDERED. 197the goods which were imported, byour law we are forbid to export mo-ney. but as I dont think the exampleof nations agoodanfwer, I fhall en-deavour to give a better, fuppofe ourmoney is not valued abroad, and wehave occafion for goods from Den-mark, who takes none of ours, thefegoods being necefTary here, will bevalued higher than other goods thatare not fo necefTary ; and the value ofScots goods fold in other countries,will be carried to Denmark, in fuchgoods as will fell there, or in foreignmoney, and thefe necefTary goods bebrought home : becaufe the tradermakes a greater profit by them, thanby fuch goods as could have been im-ported from that country, where thegoods exported were fold.
  • I98 MONEY AND TRADE But as this addition to the moneywill employ the people who are nowidle, and thefe nowemployd to moreadvantage : fo the product will be en-creasd, and manufacture advancd. ifthe confumption of the nation conti-nues as now, the export will be grea-ter, and a ballance due to us and as the :exchange depends on the ballance, fopaper money here, will be equal to agreater quantity of filver money a-broad. Suppofe the yearly value of Scot-land a million and a half, the yearlyvalue of England 40 millions ; the va-lue of Scotland, is only about one 2 Sthpart of the value of England, yet thequantity and quality of the lands, andthe numbers of people confiderd ;Scotland will be at leaft as 1 to 6. and
  • CONSIDERED. . Ip^if there was money to employ thepeople, we w ould be r as one to 6 forwe have advantages peculiar to us,that do more than equal the Planta-tion an-d Eaft-India trades. England is not improved fo far as itmight be, by a greater quantity of mo-ney, we may have money equal to thedemand, by applying our land to thatufe. fo our country may be improvdabove the proportion of one to 6. butif the proposd addition to our money,improved the country only fo as tobear a proportion with England ofone to 13, our yearly value would be3 millions -and our confumption notbeing half what the fame number ofpeople confume in England ; if theconfumption continued as now, theballance due to Scotland would be
  • 200 MONEY AND TRADEgreater, than the ballance due to Eng-land. This addition to our yearly valuemay be thought by fome people, afuppofition thats extravagant, but Idefire thefe people will confidcr whatconfequences the plenty of moneyhas had in other places, as the moneyof England has increasd, the yearlyvalue has increasd ; and as the moneyhas decreasd, the yearly value hasde-creasd. I dont doubt but the paper-moneyproposd being given out equal to thedemand, would bring the yearly va-lue of Scotland to 3 millions, tho thefifhingand other branches of foreigntrade ( which might be improvd togreat advantage) were neglected, butfuppofe the yearly value increasd only
  • CONSIDERED. 201half a million, of which a 4th (pent in•a greater confumption of the productand manufacture of the country, a4th in the greater confumption of fo-reign goods and expence abroad,a 4thlaid up in magazines of foreign goods,a 4th would ftill be due of ballanceand brought home in filver. If the confumption and expenceincreasd equal to, or beyond the im-provement; as the paper-money couldnot be exported, fo the people wouldnotbe fet idle,nor the manufacture de-cay that : money being like an eflateintaild. we might continue to con-fume equal to the yearly value, butcould not leffen the yearly value, norbe poorer if we would. If a greater value of goods was im-ported than was exported, and credit Cc
  • 202, MONEY AND TRADEgiven for the ballance ; foreigners topay themfelves, would fend a leffervalue of goods the year after, but fuchreftriclions may be put on the con-fumption of our own and foreigngoods, as may make a ballance due. The revenue of the commiflionwill be a great help toward the advan-cing our trade in its infancy : w hat en-courages the export of goods, encou-rages the manufacture of them ; andthat money given as a draw-back, willnot only encourage the export andmanufacture; but likwife regain thereputation our goods have loft, andgive them a better reputation thanthe goods of other nations. The draw-back ought not to begiven to all goods,but to fuch as do notyield a reafonable profit abroad, and
  • CONSIDERED. 203upon condition they are found fuf-ficient. The feal of the office of draw-backought to be applyd to thefe goodsthat receive the draw-back; and thefeintruded with the draw-back, fliouldgive fecurity to pay the price of fuchgoods, with all charges, if found in-fufficient. When manufa&ureand trade pro-fpers, the landed mans rent is wellpayed, and increafes : when they de-cay, his rent is ill pay d , and decreafes.a draw-back is fo effectual a way toencourage and promote manufa&ureand trade ; that it were the landedmens inter eft to tax themfelves, ra-ther than a draw-back fliould not begiven, where it is neceffary. A draw-back is more neceffary Cc 2
  • 204 MONEY AND TRADEhere than in other countries, for wedo not manufacture fo well as othernations: we are not able to fell forthe fame profit,our (locks being muchfmaller; and the goods of other na-tions will be preferrd to ours,becaufeour goods are fufpected. Some object that this propofal isnew, and has not been practisd inany nation. The example of another nationought not to determine us, to followthe fame meafures, without examin-ing whether that nation was the betteror the worfe by fuch meafures; andwhether our circumftances and theirsdont differ fo, as to make that hurt-ful or ineffectual to us, which was ofadvantage to them, on the other hand,it is no argument againft any thing
  • CONSIDERED. 205proposed for the general good, to fayit is new, and what has not beenpracYisd. When any thingproposd has beenalready pra&isd by other nations, tisa prefumption in favours of fuch apropofal ; and its a prefumption a-gainft it, if it has been refufed : but awife nation ought not to be determi-ned by example, to follow or refufewithout examining. This propofal has not been re-fusd. theefTential partis nowpractisdin France, for paper is current bylaw: and tho after a manner that inall appearance ought to have hindredits currency , yet Im informd fo-reign bills are bought with paper mo-ney, the fame as with filver or gold. The example of nations in relation
  • 2o6 MONEY AND TRADEto money would be a very uncertainrule, for as has been faid page 70,oppofite meafures have been usd infome countries to what have beenufed in others, and contrary meafureshave been ufed in the fame countriesto what was ufed immediately before,not becaufe of any difference in theircircumftances, but from the opinion,that fince the method ufed had notthe effect defignd, a contrary wouldand there are good reafons to thinkthat the nature of money is not yetrightly underftood. Any other objections that I haveyet heard againft this propofal, arefuch as may be fully anfwered, and fofar as I can fee into it, with all theapplication I have been capable of,I cannot find any objection but what
  • CONSIDERED. 10Jmay be fully anfwerd ; nor any dif-ficulty in the execution, but whatmay be removed : if there is any fal-lacy in the pofitions I lay down, orany wrong confequences drawn fromthefe pofitions, I have not been ableto difcover them. CHAP. VIII.The low condition this country is reduced to, notwitb- flanding its natural advantages. The natural advantages the Dutchhave for trade, are, their fituation atthe mouths of the rivers of Germany,and being near the bulky trade. Their natural difadvantages are,fmallnefs of territory, barrennefs offoil, producing little but whats forcd;want of mines; long winters; un-wholfome air ; marifhy, fo obligd togreat expence for foundation to their
  • 208 MONEY AND TRADEbuildings, in making and keeping upthe high-ways, and in draining thecountry yearly ; a dangerous coaftdifficult entry to their rivers ; the feato defend againft on one fide, andpowerful neighbours on the otherand heavy taxes, the confequence ofthefe other difadvantages. Yet they have fo improvd theirfew advantages ,that they are becomea rich and powerful people, what hascontributed to their riches and power,was the early protection and favourthe government gave to trade; theliberty which was given to people ofdifferent religions; the freedom oftrade allowed to Grangers ; the ex-ample of their rulers in oeconomy;but chiefly the neglect of trade in o-ther countries, particularly in Spain,
  • CONSIDERED. 20£who forced the people and trade ofFlanders to Holland. Scotland has by nature many ad-vantages for trade; a large territoryof eafie defence plenty of people ; a ;wholfome air ; mines a proper ; fitua-tion for the eaftern and weftern tradesnear the bulky trade; a fafe coaft;rivers of eafie entry; the feas and ri-vers ftockt with fifh. But numbers of people, the great-eft riches of other nations, are a bur-den to us; the land is not improvd,the product is not manufacture ; thefifhing and other advantages for fo-reign trade are neglected and the rea-:f on generally given is, that lazinefs andwant of honefty are natural to us. If want of honefty and lazinefswere natural, they would be fo to Dd
  • 2tO MONEY AND TRADEmankind ; or if peculiar to a people,this would be fo to the Dutch ratherthan to us the : air of Holland is grof-fer which inclines to lazinefs;and thecountry not producing wherewith tomaintain the inhabitants, would forcethem to rob or cheat their neighbours,or one another, but it is more reafon-able to think lazinefs and want ofhonefty are vices, the confequencesof poverty ; and poverty the confe-quence of a faulty adminiftration. ifthe fame meafures had been taken inScotland for encouraging trade, aswas taken in Holland, we had been amore powerful and richer nation thanHolland, if Spain, France and Britain,or any one of them had applyd totrade, as early, and upon the famemeafures Holland did; Holland
  • CONSIDERED. 211would not have been inhabited, but bytheir early application, and the wrongmeafures of other countries, theyhave got fuch great magazines ofwhats neceflary for their maintenanceand defence; of rich commodities tofell to other nations, of materials forfhipping, &c. and fuch a quantity offilver, efteemd above its value as ametal by being ufed as money : thatin all appearance fo long as filver isufed as money, the great quantitythey have of it, with their great oeco-nomy, enabling them to under-fellother nations they will maintain therank they hold in trade, and confe-quently in power ; notwithftandingtheir natural difadvantages, the pre-fent application, and natural advan-tages of other nations, Dd z
  • 212 MONEY AND TRADE This country is more capable of anextended trade than any other coun-try of Europe, yet it is redued to avery low ftate. trade is ruind; the na-tional ftock is wafted ; the people for-fake the country ; the rents of landare unpayd; houfes in towns, andfarms in the country are thrown uponthe owners hands; the creditor can-not have the intercft of his moneyto live upon and the ; debitors pcrfonand eftate are exposd to the law. The landed man, by having en-gaged his perfon and eftate for thepayment of a fpecies, which is not inhis power to perform and having no ;alternative: by the law his perfon isat the mercy of the creditor, and hiseftate to be fold for fo much of thatfpecies as it will yield, if 2 or 3 mo-
  • CONSIDERED. 213neyd men call in their money, witha defign to force their debitors to partwith their eftetes, at what prices theypleafe to impofe: they may bring theprice of land to 15 or 10 years pur-chafe, for they would not take bondsin payment, and few or none wouldbe in a condition to buy with mo-ney. If victual fhould prove fcarce, aswe have not goods or money for anyvalue to fend out for corns ; fo onlya part of the people could be main-tained : the better part would havebread, but the more neceflary part,the labouring men, would be foredto leave the country, or to ftarve in it.nor would they fare better in Eng-land; for as the fcarcity of moneyhas fet idle many of the people of
  • 214 MONEY AND TRADEEngland, fo there are more alreadythan there is employment for:and ourpeople, at leaft many of them, wouldmeet the fame fate they had endea-voured to evite. The landed men would want peo-ple to labour the ground they would ;perhaps get food and cloathing forthemfelves and families, but thefethey were owing to, in all appearance,would get nothing : for the cafe beinggeneral, and the landed men theftronger party ; they would not fuffertheir liberty and eflates to be takenfrom them, but tho the law could beput in execution, and the eftates of thelanded men were put to fale ; as therewould be few purchafers, the price ofland would fall very low. fuppofe theland were fold or given among the
  • CONSIDERED, £l£creditors for 15 years purchafe, orlefs ; it would be fold for more than itwere worth, for they would not findpeople to labour it : fo many wouldbe fufFerers, and none gainers. If neither of thefe cafes happen ;yet this country cannot well fubfift inthe condition tis in : if this oppor-tunity is negle&ed, if wrong or inef-fectual meafures are taken, in allappearance we will be in confufionbefore we have another opportunity. To raife or allay the money, tocoin the plate, or regulate trade, areofFerd as meafures to fupply the wantof money: and tis thought any oneof them will bring us out of our dif-ficulties, when they come to be exa-mind, raifing or allaying the moneywill be found no help but a hurt to
  • $l6 MONEY AND TRADEthe country, whatever our circum-ftances are. the others may prove inef-fectual. Tis thought our import and ex-pence abroad this lafl year exceededour export by a veryconfiderable fum,fo to make the ballance equal we mull:not only retrench equal to the moneywhich was fent out laft year ; but like-ways fo much more as the want of thatmoney, and of the addition the bankmade to our money may have leffendthe yearly value, fo tho tis poffiblethat coining the plate and regulatingtrade may bring the ballance to ourfide, yet tis to be feard the confe-quences will fhowthat it is not verypracticable ; for that and other rea-already given, however they may af-fift, but in regulating our import, re-
  • CONSIDERED. 1Jgard ought to be had that the fale ofour goods abroad be no way hindred,for if that is not taken care of, we fhalllofe more for want of a market, thanwe fhall fave by importing lefs. andtho all necelfary care be taken, yetthe afliftance may reafonably be ex-pected from thefe meafures, will notrelieve us ; they may keep us lingringin the (rate we are, exposd to confu-fion at home, and to infults from a-broad. Moft people think fcarcity of mo-ney is only the confequenceof abal-lance due ; but tis the caufe as wellas the confequence, and the effectualway to bring the ballance to our fide,is to add to the money. Our poor have been computed200000, our people were then more Ee
  • 2l8 MONEY AND TRADEthan now, but our poor may be asmany as then ;fuppofe only iooooo,and by the addition to our money50000 of them were imployed, andonly for one half of the year, theirlabour to be payed 3 pence, andworth 3 pence more to the imployer,their confumption a penny morethan now: the yearly value of the na-tion would be increasd by fuch labour189583 lib. 6 fh. and 8 pence. If the country people about Perthand Stirling, have to the value of20000 1. of linen, ferges, and othermanufacture more than is bought up ;tho thefe goods exported will yield20 or 3 o per cent, profit, yet the own-ers cant export them, thegoods beingin fo many different hands, and nothaving correfpon dents abroad to
  • CONSIDERED. 2l£whom they could truft the fale ofthem. A. B. and C. are fatisfied forthat profit to take the trouble and ha-zard of exporting them, but moneybeing fcarce they cannot get any toborrow, tho their fecurity be good;nor cannot well have credit for thegoods from fo many different peoplethey are Grangers to. if they couldhave credit for them, yet thefe coun-try people muft be idle till A. B. andC. pay them out of their returnsfrom abroad, fo for want of moneyto exchange by, goods fall in value,and manufacture decays. It cannot well be known what fumwill ferve the occafions of the nation,for as manufacture and trade advance,the demand for money will increafe ;but the many poor we have always Ee 2
  • 220 MONEY AND TRADEhad, is a great prelum prion we havenever had money enough. England has been computed to havehad 14 millions in gold and filver,and at the fame time had paper-mo-ney for a great fum; yet Englandnever had money enough to imploythe people: 50 million would notimprove England fo far as it is capableof improvement, if all the people wckthen imployed and to the beft advan-tage, more money would bring morepeople from other countries, the pro-vince of Holland by a great quantityof money, and numbers of peoplethe confequence of much money, isable to bear a lhare in the wars ofEurope, equal to many times the famenumber of acres of better land inEngland; yet Holland has not the
  • CONSIDERED. 221advantages for trade that Englandhas. fo that country that can have mo-ney equal to the demand,will betnorepowerful than any other countrywith the fame advantages, whofe mo-ney is lefs than the demand. If money were given to a peoplein greater quantity than there was ademand for, money would fall in itsvalue ; but if only given equal to thedemand, it will not fall in value. At prefent perhaps 3 or 400000lib. is more than there is a demandfor ; but as trade and manufacture in-creafe, the demand for money will begreater. What I have proposd to fupplythe country with money, may be re-duced to this, if an eftate of a 100 1.rent is worth 2000 1. in filver-mo-
  • 222 MONEY AND TRADEney, and this eftate can be conveydby paper, and this paper be capableof being divided ; then that eftatemay be made current money for 2000lib. and any perfon who receives fuchpaper money, receives a value equalto the fame fum of filver money,as fil-ver is valued now. if it is coind for 15years purchafe, then that paper-mo-ney will be more valuable than filver,for 1500 lib. in that paper will pur-chafe land worth 2000 lib. filver-mo-ney. if it is coind for 25 years pur-chafe,then that paper money will notbe fo valuable as filver, for 2000 lib.in filver will buy as much land as 2500lib. in paper. Since it is very practicable to makeland money, it would be contrary toreafon to limit the induftry of the peo-
  • CONSIDERED. 223pie, by making it depend on a fpeciesthat is not in our power, but in thepower of our enemies when we have ;a fpecies of our own every way morequalified. And confidering the ftate of thiscountry from the great fcarcity ofmoney ; that the value of lands fall,rents are unpayed, farms are thrownupon the matters hand,and the debi-tors perfon and eftate exposd to thelaw, being engagd to pay a lpeciesof which there is fcarce any in thenation. 2. The hazard the moneyd manis in from the uncertainty of the valueof money, and the danger of con-fufion, in which cafe the moneydman maylofeall. 3. The low ftate of trade, that
  • 224 MONEY AND TRADEmany of the people who dependedon trade and livd well, are ftarving orfored abroad. 4. That the other degrees of thepeople fuffer in proportion. 5. That the nation in this con-dition may run into confufion, andis exposd to its enemies. Confidering the benefit the nationwill have by this addition to the mo-ney ; that the land will be improvd,fo be more valuable, rents be wellpayed, and that debitors by paying avalue equal to what is contracted for,may free their perfons and eftatesfrom the danger they are now expo-fed to. 2. That the moneyd man will re-ceive punctual payment, in a moneyof a more certain value than filver or
  • CONSIDERED. 22$any other goods, and be in no dangerof confufion. 3. That erade will flourifh, andthefe who depend on it be encou-raged. 4. That the condition of the otherdegrees of the people will be betterd. 5. That the nation will be able tomaintain itelfin order, and refill itsenemies. Thefe reafons confidered, the ques-tion then will be, whether we willimprove the country as much as it iscapable, without being at any expencefor a meafure of trade, or continue aswe are in hopes of filver from othernations. It will be a great advantage to thisnation, that by the regifler we are ca-pable of putting this propofal in exe-cution, and enjoying the benefit of Ff
  • 226 MONEY ANE TRADEit ; when other nation s, tho they re-folvd upon it, would forfome yearsbe incapable of it. tho for the generalgood of Europe it were to be wifhdEngland were as capable ofitasweare. I have not had time to put mythoughts in that order they ought tohave been, and am forcd to leaveout anfwers I defignd to have givento fome objections I have heard madeagainfl this propofal; but if the par-liament think good to enter upon theconfideration of it, I dont doubtbut it may be made appear to be ofgreat and certain advantage ; that itcannot poffibly be any way hurtfulto the country in general, and that itmay be fo ordered, as not to be hurt-ful to any perfon, but on the contrair. finis.
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