England's Treasure by Foreign Trade [18]
more in value in forraign wares, than we utter of our own commodities. And the contrary of this is the only means by which we get our treasure. In vain therefore had Gerald Malines laboured so long, and in so many printed books to make the world beleeve that the undervaluing of our money in exchange doth exhaust our treasure, which is a mere fallacy of the cause, attributing that to a Secondary means, whose effects are wrought by another Principal Efficient, and would also come to pass although the said Secondary means were not at all. As vainly also hath he propounded a remedy by keeping the price of Exchange by Bills at the par pro pari by publick Authority, which were a new found Office without example in any part of the world, being not only fruitless but also hurtful, as hath been sufficiently proved in this Chapter, and therefore I will proceed to the next.
Chapter 13.
The Merchant who is a mere Exchanger of money by Bills cannot increase or decrease out treasure.
There are certain Merchants which deal onely upon all advantages in th' Exchange, and neither export nor import wares into the Kingdom, which hath caused some men to affirm, that the money which such mere Exchangers bring in or carry out of the Realm is not comprehended in the ballance of our forraign trade; for (say they) sometimes when our sterling mony hath been undervalued and delivered here for Amsterdam at 10 per cent less than the equal value of the respective Standards, the said mere Exchanger may take here one thousand pounds sterling. & carry over onely nine hundred thereof in specie, which will be sufficient to pay his Bill of Exchange. And so upon a greater or a lesser summe the like gain is made in three months time. But here we must know, that although this more Exchanger deal not in wares, yet notwithstanding the money which he carrieth away in manner afore-written must necessarily proceed of such wares as are brought into the Kingdom by Merchants. So that still it falleth into the ballance of our forraign trade, and worketh the same effect, as if the Merchant himself had carried away that money, which he must do if our wares be overballanced, as ever they are when our money is undervalued, which is expressed more at large in the 12 Chapter. And on the contary, when the mere Exchanger (by the said advantages) shall bring money into the Kingdom, he doth no more than necessarily must be done by the Merchant himself when our commodities overballance forraign wares. But in these occasions some Merchants had rather lose by delivering their money at an under-value in Exchange, than undertake to hazard all by the Law; which notwithstanding these mere Exchangers will perform for them in hope of gain.
Chapter 14
The admirable feats supposed to be done by Bankers and the Merchants Exchange.
Although I have already written something concerning the Merchants Exchange, and therin of the undervaluation of our money, and of the mere Exchanger, with their true causes and effects; Nevertheless it will not be impertinent to pursue this business yet a little further, and thereby not onely to strengthen our former Arguments, but also to avoid some cunning delusions which might deceive the unskilful Reader of those books entituled, Lex Mercatoria, pag. 409, and The maintenance of free trade, pag. 16. wherein the Author Gerard Malynes setteth down the admirable feats (as he termeth them) which are to be done by Bankers and Exchangers, with the use and power of the Exchange: but how these wonders may be effected he altogether omitteth, leaving the Reader in a strange opinion of these dark mysteries, which I cannot think he did for want of knowledge, for I find him skilful in many things which he hath both written and collected concerning th' affairs of Merchants, and in particular he discourses well of divers uses, forms and passages of the Exchange, in all which as he hath taken great pains for the good of others, so do his Works of this kind deserve much praise: but where he hath disguised his own knowledge with Sophistry to further
Chapter 13.
The Merchant who is a mere Exchanger of money by Bills cannot increase or decrease out treasure.
There are certain Merchants which deal onely upon all advantages in th' Exchange, and neither export nor import wares into the Kingdom, which hath caused some men to affirm, that the money which such mere Exchangers bring in or carry out of the Realm is not comprehended in the ballance of our forraign trade; for (say they) sometimes when our sterling mony hath been undervalued and delivered here for Amsterdam at 10 per cent less than the equal value of the respective Standards, the said mere Exchanger may take here one thousand pounds sterling. & carry over onely nine hundred thereof in specie, which will be sufficient to pay his Bill of Exchange. And so upon a greater or a lesser summe the like gain is made in three months time. But here we must know, that although this more Exchanger deal not in wares, yet notwithstanding the money which he carrieth away in manner afore-written must necessarily proceed of such wares as are brought into the Kingdom by Merchants. So that still it falleth into the ballance of our forraign trade, and worketh the same effect, as if the Merchant himself had carried away that money, which he must do if our wares be overballanced, as ever they are when our money is undervalued, which is expressed more at large in the 12 Chapter. And on the contary, when the mere Exchanger (by the said advantages) shall bring money into the Kingdom, he doth no more than necessarily must be done by the Merchant himself when our commodities overballance forraign wares. But in these occasions some Merchants had rather lose by delivering their money at an under-value in Exchange, than undertake to hazard all by the Law; which notwithstanding these mere Exchangers will perform for them in hope of gain.
Chapter 14
The admirable feats supposed to be done by Bankers and the Merchants Exchange.
Although I have already written something concerning the Merchants Exchange, and therin of the undervaluation of our money, and of the mere Exchanger, with their true causes and effects; Nevertheless it will not be impertinent to pursue this business yet a little further, and thereby not onely to strengthen our former Arguments, but also to avoid some cunning delusions which might deceive the unskilful Reader of those books entituled, Lex Mercatoria, pag. 409, and The maintenance of free trade, pag. 16. wherein the Author Gerard Malynes setteth down the admirable feats (as he termeth them) which are to be done by Bankers and Exchangers, with the use and power of the Exchange: but how these wonders may be effected he altogether omitteth, leaving the Reader in a strange opinion of these dark mysteries, which I cannot think he did for want of knowledge, for I find him skilful in many things which he hath both written and collected concerning th' affairs of Merchants, and in particular he discourses well of divers uses, forms and passages of the Exchange, in all which as he hath taken great pains for the good of others, so do his Works of this kind deserve much praise: but where he hath disguised his own knowledge with Sophistry to further