England's Treasure by Foreign Trade [20]
I think verily that neither Doctor Faustus nor Banks his Horse could ever do such admirable feats, although it is sure they had a Devil to help them; but wee Merchants deal not with such Spirits, we delight not to be thought the workers of lying wonders, and therefore I endeavour here to shew the plainness of our dealing (in these supposed feats) to be agreeable to the laudable course of Trade. And first, To lay our Money with gains to any place of the World where Exchange lieth. How can this be done (will some men say) for Amsterdam, when the losse by Exchange is sometimes eight or ten per cent more or lesse for one moneths usance? The answer is, That here I must consider, first, that the principal efficient cause of this losse, is a greater value in Wares brought from Amsterdam then we carry thither, which make more Deliverers then Takers here by Exchange, whereby the Mony is undervalued to the benefit of the taker: hereupon the Deliverer, rather then he will lose by his Money, doth consider those Countreys, unto which we carry more Wares in value than we receive from them; as namely, Spain, Italy,and others; to which places he is sure (for the reasons aforesaid) that he shall ever deliver his money with profit. But now you will say, that the mony is further from Amsterdam than before; How shall it be got together? yes, well enough; and the farther about will prove the nearest way home, if it come at last with good profit; the first part whereof being made (as we have supposed) in Spain, from thence I consider where to make my second gain, and finding that the Florentines send out a greater value in cloth of Gold and Silver, wrought Silks, and Rashes to Spain, than they receive in Fleece Woolls, West-India Hides, Sugar and Cochineal, I know I cannot miss of my purpose by delivering my money for Florence; where (still upon the same ground) I direct my course from thence to Venice, and there finde that my next benefit must be at Frankfurt or Antwerp, untill at last I come to Amsterdam by a shorter or longer course, according to such occasions of advantage as the times and place shall afford me. And thus we see still, that the profit and loss upon the Exchange is guided and ruled by the over or under ballance of the several Trades which are Predominant and Active, making the price of Exchange high or low, which is therefore Passive, the contrary whereof is so often repeated by the said Malynes. To the second, fourth, fourteenth, and twenty third, I say, that all these are the proper works of the meer Exchanger, and that his actions cannot work to the good or hurt of the Commonwealth, I have already sufficiently shewed in the last Chap. and therefore here I may spare that labour. To the third. It is true, I can deliver one thousand pounds here by exchage to recieve the value in spaine, where with this Spanish money I can buy and bring away so much Spanish wares. But all this doth not prove, but that in the end the English money or commodities must pay for the said wares: for if I deliver my thousand pounds here to an English-man, he must pay me in Spain, either by goods already sent, or to be sent thither; or if I deliver it here to a Spaniard, he takes it of me, with intent to employ it in our wares; so that every way we must pay the Stranger for what we have from him: Is there any feats in all this worthy our admiration? To the firth, thirtenth, twentieth, and twenty first. I must answer these Wonders by heaps, where I finds them to be all one matter in divers formes, and such froth also, that every Idiot knowes them, and can say, that he who hath credit can contract, buy, sell, and take up much money by Exchange, which he may do as well also at Interest: yet in these courses they are not alwayes gainers, for sometimes they live by the losse, as well as they who have less credit. To the sixth and seventh. Here is more poor stuff; for when I know the current prices of my Wares, both here and beyond the Seas, I may easily conjecture whether the profit of the Exchange or the gain which I expect upon my Wares