The Maintenance of Free Trade [8]
Commodities; which I have proved, by many reasons to proceed, by the abuse of exchange, according to which, they are both waies sold and bought. Is there any man of judgement, who seeth not, That this overballancing doth expell our moneys out of the Realme, and which are (in effect) as it were given to boote to other Nations to Countervaile this inequalitie? Let them consider of the Reasons following. First, moneys being undervalued in exchange, causeth the price of our home Commodities to be abated, and to bee sold better cheape in forraine parts, & is also the cause that our moneys are continually Transported. Secondly, the moneys being Transported, taketh away the lively course of Traffique of our said Commodities, and causeth young merchants to Runne by exchanges upon Bills to maintaine their Trade, paying great Interest for money, which they cannot take up at Use upon their single Bond, as they can doe by a Bill of exchange, without Sureties. This causeth the said young Merchants and others to make rash Sales of their Commodities beyond the Seas, to pay their Bills of exchanges, whereby they overthrow the Markets of others, and make them to Sell good cheape. So on the contrary, the Coynes being over-valued in exchange, and also inhaunced beyond the Seas, causeth the price of forraine Commodities to be increased more then our home commodities, and our Merchants are compelled of course, to make Returne thereby. For they cannot import those overvalued moneys, but to their exceeding great losse; and by exchange, they finde few Takers, unlesse it be our young Merchants, which doe consume their Estates by exchanges & Rechanges: For of the Three Essential Parts of Traffique, we have but the use of one, which is the buying of forraine Commodities to make Returnes homewards, and doth increase the consumption of the said Wares. Moneys remaining hereby plentifull beyond the Seas, the rather for that they make Bills obligatory, serve as ready Money, which they Transferre and set over betweene man and man for the paiment of Moneys or Wares; causeth there a lively course of Trade, whereby their Commodities are advanced in price & sale, neither are they compelled to sel them, but at their price, because they finde money at interest at 5 and 6 in the hundred. This money is made daily more plentifull, by our Spanish Merchants, which doe divert the Realls of Spaine, as before hath beene declared: hence it proceedeth, that our home Commodities, are many times sold beter cheape beyond the Seas then here; for although Merchants doe lose thereby, they make account to gaine more, by the low exchange, delivering their moneys there, or taking of them up here by exchange, to pay their Bills of exchange at an undervalue: insomuch, that many Merchants having no commodities there, may take up money here, and sending over the same in specie, will pay there with their Bill of exchange, and Gaine (by dexteritie of wit) 15 in the hundreth in lesse than two moneths time. Thus when Gaine is practised by exchange, the Commodities of the Realme are less vented, and the moneys are exported, which causeth the lesse employment here to be made upon our Commodities: Even as the importation of moneys being hindered (by the inhauncing of the Coynes beyond the Seas:) compelleth our Merchants to make the greater employment upon forreine Commodities at deere Rates. For the Commodities beyond the Seas, are in the hands of them that make sale of them, upon a certaine price (as it were) at their pleasure, having Plenty of Money, at a cheape Rate at interest, whereas also they have no man to undersell them, here and there, as our Merchants doe our Commodities, which (without all comparison:) are farre much fallen in price, then the forraine Commodities now somewhat abated in price. Concerning other Commodities imported, As Wines, Raisons, Corints, Tobacco, and Spices of the East Indies: Let us briefely observe, that the Wines of France might be bought better cheap, if the money of the Realme were not undervalued in exchange; for wheras