Some Considerations of the Lowering of Interest [55]
Suppose that by an Overballance of their Trade (whether by a Sale of Pepper, Spices, and other East-India Commodities, it matters not) we have received great quantities of Goods, within these two or three Months, from Holland, and sent but little thither; so that the accounts ballanced between the Inhabitants of England and the United Provinces, we of England were a Million in their Debt: What would follow from hence? This: That these Dutch Creditors, desiring to have what is due to them, give Order to their Factors and Correspondents here, to return it to them. For enquiring, as we do, what are the effects of an over-ballance of Trade, we must not suppose, they invest their Debts in Commodities, and return their Effects that way. A Million then being to be returned from England to Holland in Money, every one seeks Bills of Exchange: but Englishmen not having Debts in Holland to answer this Million, or any the least part of it, Bills are not to be got. This presently makes the Exchange very high; upon which the Bankers, &c. who have the command of great quantities of Money and Bullion, send that away to Holland in Specie, and so take Money here to pay it again there, upon their Bills, at such a rate of Exchange, as gives them five, ten, fifteen, &c. per Cent. profit: And thus sometimes a 5 s. Piece of our mill'd Money may truly be said to be worth 5 s. 3 d. 4 d. 6 d. 9 din Holland. And if this be the great value of Silver in this part of the World, I easily grant it him. But this great value is to be remedied, not by the alteration of our Mint, but by the Regulation and Ballance of our Trade. For be your Coin what it will, our Neighbours, if they over-ballance us in Trade, will not only have a great value for our Silver, but get it too; and there will be more to be got by Exporting Silver to them, than by any other Thing can be sent. Remarks. The alteration ofthe Coins in Spain and Portugal are no way at all like this. For there they alter'd in Denomination near half, to deceive those they paid, with paying those to whom they owed one Ounce of Silver, but half an Ounce for it. But in the alteration here designed, to whoever an Ounce of Silver was owing, an Ounce will be paid in this Money; it being here only designed, that an Ounce of Money should equal an Ounce of Silver in value, at home, as well as abroad, which now it does not. Answer. In this Paragraph the Author Confesses the alteration of the Coin in Spain and Poitugal was a cheat; but the alteration here design'd, he says, is not: But the Reason he gives for it is admirable: viz. Because they there alter'd in Denomination near half, and here the Denomination is alter'd but 5 per Cent; for so in Truth it is, whatever be designed. As if 50 per Cent. were a Cheat, but 5 per Cent. were not; because perhaps less perceiveable. For the two Things that are pretended to be done here by this new Coinage, I fear will both fail, viz. 1. That to whomsoever an Ounce of Silver is owing, an Ounce of Silver shall be paid in this Money. For when an Ounce of Silver is Coin'd, as is proposed, into 5 s. 5 d. (which is to make our Money 5 per Cent. lighter than it is now) I that am to receive an 100 l. per Annum, Fee Farm Rent; shall I in this new Money receive 105 l. or barely 100 l.? The first I think will not be said. For if by Law you have made it 100 l. 'tis certain the Tenant will pay me no more. lf you do not mean that 400 Crowns, or 2000 Shillings of your new Coin shall be an 100 l. but there must be 5 per Cent. in tale, added to every 100, you are at the charge of new Coinage to no other purpose but to breed Confusion. If I must receive 100 l. by tale, of this new Money for my Fee Farm Rent, 'tis demonstration that I lose five Ounces per Cent. of the Silver was due to me. This a little lower he confesses in these Words, That where a Man has a Rent-SEC, that can never be more, this may somewhat affect it, but so very little, that it will scarce ever at all be perceived. This very little is 5 per Cent. And if a Man be cheated of that, so he perceives it not, it goes for