A Discourse of Coin and Coinage [40]
should be more rigidly maintained,
and that all forrein coins should be absolutely banished, and
that the former Edict might be now reformed in that only point,
which was deficient (viz.) That the Sols might either be coined
of purer Silver, or if they did remain of the former Allay, that
the King would so dispose of the charge of the Allay and coinage
as they might answer in their Intrinsical value to the gold and
the Silver; and that for the remedy of the Penury of Money,
strict sumptuary Laws might be put in practice against Forrein
Manufactures, and superfluous Commodities.
But against this it was objected, That now they found by
experience the effect of the former Edict of 1577, and this
addition of sumptuary Laws would give little help, because the
licence of the times and difficulties in the thing it self were
such as they would never be put in execution.,
In conclusion a new Edict was set forth in Anno 1602 by which
the Contracts in the solid species in Crowns were abolished and
the Contracts in Livres again authorised. The Crown in Gold was
value at three Livres again authorised. The Crown in gold was
valued at three Libres and four sols, and all forrein coins were
made current in a proportionable rate: and upon it ensued that
the people did every day raise the price of all Gold both forrein
and domestick higher and higher by degrees, so as in the year
1614, the King by his Edict was enforced to make good the raising
of the people, and to set a value upon the French Crown, of 3
Livres and 15 sols, which is seven shillings and six pence
sterling, and yet still the people raised it higher, and all
other Gold in proportion, which hath yet this further
Inconvenience with it, That being raised by degrees, they cannot
raise the Silver together with it, so as in time it will breed so
great a Disproportion between the Silver and the Gold as they
will have little Silver left; and that such as through the
exceeding lightness cannot with profit be made away.
I shall not now need to speak any more of the Inconveniences
which may grow by ordaining of solid payments because they have
been sufficiently expressed in the relation of these proceedings
in France. But I will only add this, that there is not true
soliditie in payments, but to contract for so much in weight and
so much in fineness, for if you should ordain all payments to be
made in such or such species of Money, it is true that the
raising of those species of Money could breed no alteration in
your payments: but suppose the Prince should coin these species,
either baser in Allay or lighter in weight, then should your
payment be subject to the same alteration as if you had
contracted for abstracted sums.
Chapter 19
Of equalizing the Exchange.
The Author of Lex Mercatoriae doth hold, That in those
countries where great great Banks are kept, the Bankers do by
their Arts and Subtilties by the inequalite of the Exchange, draw
away the Gold and Silver out of other Countries: as for Example;
In Holland, suppose a man were by Exchange to make over 100 pound
sterling thither out of England, The Exchange, saiths he, is such
when it is at most advantage for England, by the practise and
subtilties of the Banker, as you shall receive for your hundred
pound there, less in intrinsical value than you gave; and if you
make over a hundred pound out of Holland into England by Exchange
you shall receive more in Intrinsical value than you gave. And if
this Position absolutely be true, as that the contrary doth
rarely or seldom happen, it necessarily follows, That it is more
advantage to carry over your Money thither in specie, than to
make it over by exchange, and it is more advantage to make over
your Money thence by exchange than to bring it over in specie.
But (saith he) if it be effectually ordained, That no man
shall give his Money here, to receive less in intrinsical value
there by Exchange; and that no man shall give his Money there, to
receive more in intrinsical value here by Exchange: it
and that all forrein coins should be absolutely banished, and
that the former Edict might be now reformed in that only point,
which was deficient (viz.) That the Sols might either be coined
of purer Silver, or if they did remain of the former Allay, that
the King would so dispose of the charge of the Allay and coinage
as they might answer in their Intrinsical value to the gold and
the Silver; and that for the remedy of the Penury of Money,
strict sumptuary Laws might be put in practice against Forrein
Manufactures, and superfluous Commodities.
But against this it was objected, That now they found by
experience the effect of the former Edict of 1577, and this
addition of sumptuary Laws would give little help, because the
licence of the times and difficulties in the thing it self were
such as they would never be put in execution.,
In conclusion a new Edict was set forth in Anno 1602 by which
the Contracts in the solid species in Crowns were abolished and
the Contracts in Livres again authorised. The Crown in Gold was
value at three Livres again authorised. The Crown in gold was
valued at three Libres and four sols, and all forrein coins were
made current in a proportionable rate: and upon it ensued that
the people did every day raise the price of all Gold both forrein
and domestick higher and higher by degrees, so as in the year
1614, the King by his Edict was enforced to make good the raising
of the people, and to set a value upon the French Crown, of 3
Livres and 15 sols, which is seven shillings and six pence
sterling, and yet still the people raised it higher, and all
other Gold in proportion, which hath yet this further
Inconvenience with it, That being raised by degrees, they cannot
raise the Silver together with it, so as in time it will breed so
great a Disproportion between the Silver and the Gold as they
will have little Silver left; and that such as through the
exceeding lightness cannot with profit be made away.
I shall not now need to speak any more of the Inconveniences
which may grow by ordaining of solid payments because they have
been sufficiently expressed in the relation of these proceedings
in France. But I will only add this, that there is not true
soliditie in payments, but to contract for so much in weight and
so much in fineness, for if you should ordain all payments to be
made in such or such species of Money, it is true that the
raising of those species of Money could breed no alteration in
your payments: but suppose the Prince should coin these species,
either baser in Allay or lighter in weight, then should your
payment be subject to the same alteration as if you had
contracted for abstracted sums.
Chapter 19
Of equalizing the Exchange.
The Author of Lex Mercatoriae doth hold, That in those
countries where great great Banks are kept, the Bankers do by
their Arts and Subtilties by the inequalite of the Exchange, draw
away the Gold and Silver out of other Countries: as for Example;
In Holland, suppose a man were by Exchange to make over 100 pound
sterling thither out of England, The Exchange, saiths he, is such
when it is at most advantage for England, by the practise and
subtilties of the Banker, as you shall receive for your hundred
pound there, less in intrinsical value than you gave; and if you
make over a hundred pound out of Holland into England by Exchange
you shall receive more in Intrinsical value than you gave. And if
this Position absolutely be true, as that the contrary doth
rarely or seldom happen, it necessarily follows, That it is more
advantage to carry over your Money thither in specie, than to
make it over by exchange, and it is more advantage to make over
your Money thence by exchange than to bring it over in specie.
But (saith he) if it be effectually ordained, That no man
shall give his Money here, to receive less in intrinsical value
there by Exchange; and that no man shall give his Money there, to
receive more in intrinsical value here by Exchange: it