England's Treasure by Foreign Trade [17]
declared; And contrariwise if we carry more wares to Spain, and other places than we consume of theirs, then do we bring away their treasure, and likewise in the Merchants exchange we overvalue our own money. Yet still there are some who will seem to make this plain by Demonstration, that the undervaluing of our money by Exchange doth carry it out of the Kingdom: for, say they, we see daily great store of our English Coins carried over, which pass current in the Low-Countries, and there is great advantage to carry them thither, to save the loss which the Low-Countrymen have in the Exchange; for if one hundred pounds sterling deliverd here, is so much undervalued, that ninty pounds of the same sterling money carried over in specie shall be sufficient to make repayment and full satisfaction of the said hundred pounds at Amsterdam: Is it not then (say they) the undervaluing of our Mony which causeth it to be carried out of the Realm? To this Objection I will make a full and plain Answer, shewing that it is not the undervaluing of our money in exchange, but the overballancing of our trade that carrieth away our treasure. For suppose that our whole trade with the Low-Countries for wares brought into this Realm be performed onely by the Dutch for the value of five hundred thousand pounds yearly; and that all our commodities transported into the said Low-Countries be performed onely by the English for four hundred thousand pounds yearly: Is it not then manifest, that the Dutch can exchange only four hundrd thousand pounds with the English upon the Par pro Pari or equal value of the rspective Standards? So the other hundred thousand pounds which is the overballance of the trade, they must of necessity carry that away in mony. And the self same loss of treasure must happen if there were no exchange at all permitted: for the Dutch carrying away our mony for their wares, and we bringing in their forraign Coins for their commodities, there will be still one hundred thousand pounds loss. Now let us add another example grounded upon the aforesaid proportion of trade between us and the Low Countreys. The Dutch (as aforewritten) may exchange with the English for four hundred thousand pounds and no more upon the equal value of the monies, because the English have no further means to satisfie. But now suppose that in respect of the plenty of mony, which in this case will be here in the hands of the Dutch to deliver by exchange, our mony (according to that which hath been already said) be undervalued ten per cent. then is it manifest that the Dutch must deliver four hundred and forty thousand pounds to have the Englishmans four hundred thousand pounds in the Low Countreys; so that there will then remain but 60000 pounds for the Dutch to carry out of the Realm to ballance the accompt between them and us. Whereby we may plainly perceive that the undervaluing of our money in exchange, will not carry it out of the Kingdom, as some men have supposed, but rather is a means to make a less quantity thereof to be exported, than would be done at the Par pro pari. Further let us suppose that the English Merchant carrieth out as much wares in value as the Dutch Merchant bringeth in, whereby the means is equal between them to make their returns by exchange without carrying away of any mony to the prejudice of either State. And yet notwithstanding the Dutch Merchant for this occasions or advantage will forsake this course of exchange, and will venture to send part of his returns in ready mony. To this the answer is, that hereupon it must follow of necessity, that the Dutch shall want just so much means in exchange with the English, who therefore shall be forced to bring in the like sum of mony from beyond the Seas, as the Dutch carried out of this Realm; so that we may plainly perceive that the monies which are carried from us within the ballance of our trade are not considerable, for they do return to us again: and we lose those monies only which are made of the over-ballance of our general trade, that is to say, That which we spend