Money and Trade Considered [5]
Abroad, the Nation gains 6000. If the People consume them, and in extravagant Uses, that's not the fault of the Trade, nor for that Reason should that Trade be call'd Disadvantageous; It is the fault of the Government, who ought to hinder the too great Consumption of Forreign Goods; Especially, such as might be wanted without causing a greater Consumption of the Goods of the Country. That care being taken, by making the vent less profitable at Home, than Abroad; Merchants would Export them, or for the future lessen the Import. If East-India Goods that Sell for a 1000 lib. in England, are only worth Abroad 800 Lib, the Duty payed at their entry being return'd, and more given as a draw-back to Encourage the Export, their Vent Abroad will be more Profitable than in England. A People may consume more of their own or Forreign Goods, than the Value of the Product, Manufacture, and Profits by Trade; but their Trade is not disvantageous, it is their too great consumption: And the too great consumption of the Product and Manufacture of the Country, may be als hurtful as that of Forreign Goods; For, if so much is consumed, that the remainder Exported won't pay the Consumption of Forreign Goods, a Ballance will be due, and that Ballance will be sent out in Money or Bullion. A Nation may gain where the Merchant loses, but wherever the merchant gains, the Nation gains equal, and so much more, as the Maintenance and Wages of the People employ'd and the Duty on the Goods amounts to. If a ship insur'd is lost, the Nation loses, and the Merchant loses nothing; But in that case the insurer is the Merchant, and loses equal to the Nation. As Trade depends on Money, so the encrease or decrease of the People depends on Trade. If they have Employment at Home, they are kept at Home: And if the Trade is greater than serves to Employ the People, it brings more from places where they are not Employ'd. Sir William Petty Values a Man at 20 years Purchase, by that Computation a Seaman whose Wages is 40 shil. a Month, is Valued 430 lib. Scotland has a very inconsiderable Trade, because she has but a very small part of the Money. There is a little Home Trade, but the Country is not Improv'd, nor the Product Manufactur'd. There is a little of the first Branch of Forreign Trade, and that is carried on with great Disadvantage to the People, who pay dearer for most Forreign Goods, and are worse serv'd, than other Nations: If they have any Cheaper, 'tis from the lower Duty on the Import. In Scotland low Prices are given for Goods Bought up to be Exported, the Merchants
Profit being great: If a 100 Stone of Wool is worth in Holland 10 Piece of Linen Cloth, these ten Pieces are Sold in Scotland for the Value of a 180 or 200 Stone of such Wool. Such Goods as do not yeild that great Profit; are not Exported; And these that do, are not Exported in any Quantity, the Merchants Stock being small. Scotland has no part of the other Branches of Forreign Trade, not being able to Trade so Cheap as other Nations. Some think if Interest were lower'd by Law, Trade would increase, Merchants being able to Employ more Money and Trade Cheaper. Such a Law would have many Inconveniencies, and it is much to be doubted, whether it would have any good Effect; Indeed, if lowness of Interest wre the Consequence of a greater Quantity of Money, the Stock applyed to Trade would be greater, and Merchants would Trade Cheaper, from the easiness of borrowing and the lower Interest of Money, without any Inconveniencies attending it. Tho' Interest were at 3 per cent in Holland, and continued at 6 in Scotland; if Money were to be had equal to the Demands at 6, the Advantages we have for Trade, which the Dutch have not, would enable us to extend Trade to its other Branches, notwithstanding the difference of Interest. If Money in Scotland were equal to the Demands at 6 per cent, the Dutch could not trade so cheap in Herring; The Hinderances of that Trade being the Consequences of the Scarcity of Money. The Materials
Profit being great: If a 100 Stone of Wool is worth in Holland 10 Piece of Linen Cloth, these ten Pieces are Sold in Scotland for the Value of a 180 or 200 Stone of such Wool. Such Goods as do not yeild that great Profit; are not Exported; And these that do, are not Exported in any Quantity, the Merchants Stock being small. Scotland has no part of the other Branches of Forreign Trade, not being able to Trade so Cheap as other Nations. Some think if Interest were lower'd by Law, Trade would increase, Merchants being able to Employ more Money and Trade Cheaper. Such a Law would have many Inconveniencies, and it is much to be doubted, whether it would have any good Effect; Indeed, if lowness of Interest wre the Consequence of a greater Quantity of Money, the Stock applyed to Trade would be greater, and Merchants would Trade Cheaper, from the easiness of borrowing and the lower Interest of Money, without any Inconveniencies attending it. Tho' Interest were at 3 per cent in Holland, and continued at 6 in Scotland; if Money were to be had equal to the Demands at 6, the Advantages we have for Trade, which the Dutch have not, would enable us to extend Trade to its other Branches, notwithstanding the difference of Interest. If Money in Scotland were equal to the Demands at 6 per cent, the Dutch could not trade so cheap in Herring; The Hinderances of that Trade being the Consequences of the Scarcity of Money. The Materials