Money and Trade Considered [7]
all Goods exported are sold cheaper, and all Goods imported are sold dearer than before. (Ex.) If a Merchant send Goods yearly to England first Cost, Charges and Profit 6000 lib. Money in England of the same Standard with Money in Scotland, and no Ballance due; But a Ballance due to Holland, raising the Exchange 3 per cent above the par to Holland, and affecting the Exchange to England 2 per cent 5882 lib. 7 sh. in England pays the Goods, that Sum by Exchange being equal to 6000 lib. in Scotland. so that a Ballance due to Holland, by raising the Exchange to other Countries, occasions a Loss to Scotland of 17 lib. 13 sh. on the vlaue of 6000 lib. of Goods sent to England. English Goods are sold so much dearer. (Ex.) If an English Merchant send Goods yearly to Scotland, first Cost, Charges and Profit 6000 lib. 6120 lib. must be payed for these Goods in Scotland, being only equal to 6000 lib. in England. If the Exchange had been at the Par, the Scots Goods sent to England would have sold 117 lib. 13 sh. more, and the English Goods sent to Scotland 120 lib. less. Thus to all Places with whom Exchange is above the Par, Goods sent out are sold so much less, and Goods brought from thence are sold so much dearer, as the Exchange is above the Par; whether sent out, or brought in, by Scots or Forreign Merchants. The Merchant who deals in English Goods gains no more than when Exchange was at the Par, tho he sells dearer; Nor the Merchant who
deals in Scots Goods less, tho he sells cheaper; they have both the same Profit as when Exchange was at the Par. Scotland pays 2 per cent more for English Goods, and England 2 per cent less for Scots Goods: All, or a great part of the loss falls at last on the Landed Man in Scotland, and it is the Landed Man in England has all, or a great part of the Benefit. Nations finding the Export of Money or Bullion to pay the ballance due by Trade, a loss of so much Riches, and very hurtful to Trade, migh have discharg'd the Import of such Goods as the People could best want; Or laid a Duty on them, such as might have lessen'd their Consumption: They might have given encouragement to Industry, whereby the Product would have been encreas'd and improv'd, or discourag'd extravagant Consumption, whereby the Overplus to Export would have been greater; Any one of these Methods would have brought Trade and Exchange equal, and have made a Ballance due them: But in place of these measures, they Prohibit Bullion and Money to be Exported, which could not well have any other effect, than to raise the Exchange equal to the Hazard, such Laws added to the Export of Money or Bullion, which may be suppos'd 3 per cent more: And as these Laws by such effect were hurtful, making all Goods Exported sell yet 3 per cent cheaper, and all Goods Imported 3 per cent dearer; the stricter they were execut, the higher the Exchange rose, and the more they did hurt. The ballance was still sent out in Money or Bullion, by the Merchant who owed it, by the Banker who gave the Bills, or by the Forreign to whom it was due. Suppose the Money of Scotland, England, and Holland of the same weight and fineness. Scotland to Trade with no other places. The Exchange at the Par. The yearly Export from Scotland, first cost 300000 lib. Charges and Profit 30 per cent. Goods Imported 280000 lib. Charges and Profit 30 per cent. One half of the Trade to be carried on by Scots Merchants, the other half by English and Dutch.
Due to Scotland for one half of the Export carried out by their own Merchants 195000 Due for the other half carried out by English and Dutch. 150000 345000
Due by Scotland to England and Holland for Goods Imported by English and Dutch 182000 Due for Goods Imported by Scots Merchants 140000
deals in Scots Goods less, tho he sells cheaper; they have both the same Profit as when Exchange was at the Par. Scotland pays 2 per cent more for English Goods, and England 2 per cent less for Scots Goods: All, or a great part of the loss falls at last on the Landed Man in Scotland, and it is the Landed Man in England has all, or a great part of the Benefit. Nations finding the Export of Money or Bullion to pay the ballance due by Trade, a loss of so much Riches, and very hurtful to Trade, migh have discharg'd the Import of such Goods as the People could best want; Or laid a Duty on them, such as might have lessen'd their Consumption: They might have given encouragement to Industry, whereby the Product would have been encreas'd and improv'd, or discourag'd extravagant Consumption, whereby the Overplus to Export would have been greater; Any one of these Methods would have brought Trade and Exchange equal, and have made a Ballance due them: But in place of these measures, they Prohibit Bullion and Money to be Exported, which could not well have any other effect, than to raise the Exchange equal to the Hazard, such Laws added to the Export of Money or Bullion, which may be suppos'd 3 per cent more: And as these Laws by such effect were hurtful, making all Goods Exported sell yet 3 per cent cheaper, and all Goods Imported 3 per cent dearer; the stricter they were execut, the higher the Exchange rose, and the more they did hurt. The ballance was still sent out in Money or Bullion, by the Merchant who owed it, by the Banker who gave the Bills, or by the Forreign to whom it was due. Suppose the Money of Scotland, England, and Holland of the same weight and fineness. Scotland to Trade with no other places. The Exchange at the Par. The yearly Export from Scotland, first cost 300000 lib. Charges and Profit 30 per cent. Goods Imported 280000 lib. Charges and Profit 30 per cent. One half of the Trade to be carried on by Scots Merchants, the other half by English and Dutch.
Due to Scotland for one half of the Export carried out by their own Merchants 195000 Due for the other half carried out by English and Dutch. 150000 345000
Due by Scotland to England and Holland for Goods Imported by English and Dutch 182000 Due for Goods Imported by Scots Merchants 140000