(navigation image)
Home American Libraries | Canadian Libraries | Universal Library | Community Texts | Project Gutenberg | Biodiversity Heritage Library | Children's Library | Additional Collections
Search: Advanced Search
Anonymous User (login or join us)
Upload
See other formats

Full text of "Money and trade considered: with a proposal for supplying the nation with money. First published at Edinburgh 1705"

m 






m 



HH 



in 



I 




MM IB ■ 




fflMmfMMJw 



The 

Robert E. Gross 
Collection 

A Memorial to the Founder 
of the 



Business Administration Library 
Los Angeles 



MONEY 

AND 

TRADE 

con sidered: 

WITH A PROPOSAL FOR SUPPLYING 
THE NATION WITH MONEY. 

FIRST PUBLISHED AT EDINBURGH MDCCY. 

BY THE CELEBRATED 

JOHN LA W, Esq; 

AFTERWARD 
DIRECTOR TO THE MISSISIPI COMPANY. 



GLASGOW, 

PRINTED AND SOLD BY R. & A. FOIJLI 
MD CCL. 



MONEY AND TRADE 

CONSIDERED. 

THere arefeveral propofals of- 
fer'd to remedy the difficulties 
the nation is under from the great 
fcarcity of money. 

That a right judgment may be 
made, which will be mo ft fafe, advan- 
tageous and practicable ; it feems 
neceffary, i. that the nature of 
money be inquired into, and why 
filver was ufed as money preferable 
to other goods. 2. that trade be 
confidered, and how far money affects 
trade. 3. that the meafures have 
been ufed for preferving and increaf- 
ing money, and thefe now propofed, 
be examined. 



4 i MONEY AND TRADE 
C H A P. I. 

Hoiv goods are valued, of barter, of '/liver ; its value 
as a metal; its qualities fitting it for money, and of 
the additional value it received from being ufed as 
money. 

Goods have a value from the ufes 
they arc applyed to ; and their value 
is greater or leffer, not fo much from 
their more or lefs valuable, or necef- 
fary ufes, as from the greater orleiTer 
quantity of them in proportion to the 
demand for them, example; water is 
of great ufc, yet of little value; be- 
caufe the quantity of water is much 
greater than the demand for it. dia- 
monds are of little ufe, yet of great 
value, becaufe the demand for dia- 
monds is much greater, than the 
quantity of them. 

Goods of the fame kind differ in 
value, from any difference in their 



CONSIDERED. 5 

quality, one horfe is better than a- 
nother horfe. barley of one coun- 
try is better than barley of another 
country. 

Goods change their value,fromany 
change in their quantity, or in the 
demand for them. if oats be in 
greater quantity than laft year, and 
the demand the fame, or leffer, oats 
will be lefs valuable. 

Mr. Locke fays, the value of goods 
is according to their quantity in pro- 
portion to their vent, the vent of 
goods cannot be greater than the 
quantity, but the demand may be 
greater : if the quantity of wine 
brought from France be a 100 ton, 
and the demand be for 500 ton, the 
demand is greater than the vent } and 
the 100 ton will fell at a higher price, 



6 MONEY AND TRADE 

than if the demand were only equal 
to the vent, fo the prices of goods are 
not according to the quantity in pro- 
portion to the vent, but in proportion 
to the demand. 

Before the ufe of money was 
known, goods were exchanged by 
barter, or con tract; and contracts were 
made payable in goods. 

This ftate of barter was inconve- 
nient, and difadvantageous. I . he 
who defired to barter would not al- 
ways find people who w r anted the 
goods he had, and had fuch goods as 
he defired in exchange. 

2. Contracts taken payable in 
goods were uncertain, for goods of 
the fame kind differed in value. 

3. There was no meafure by 
which the proportion of value goods 



CONSIDERED. "J 

had to one another could be known. 

In this ftate of barter there was 
little trade, and few arts-men. the 
people depended on the landed-men. 
the landed-men laboured only fo 
much of the land as ferved the occa- 
fions of their families, to barter for 
fiich neceflaries as their land did not 
produce ; and to lay up for feed and 
bad years, what remained was unla- 
boured ; or gifted on condition of 
vaffalage, and other fervices. 

The loffes and difficulties that 
attended barter, would force the lan- 
ded-men to a greater confumption of 
the goods of their own product, and a 
lefler confumption of other goods ; or 
to fuplpy themfelves, they would turn 
the land to the product of the feve- 
ral goods they had occafion for;tho* 



8 MONEY AND TRADE 

only proper to produce of one kind, 
fo, much of the land was unlaboured, 
what was laboured was not employ'd 
to that by which it would have turned 
to molt advantage, nor the people to 
the labour they were mod: fit for. 

Silver as a metal had a value in 
barter, as other goods ; from the ufes 
it was then apply'd to. 

As goods of the fame kind differed 
in value, fo filver differ'd from filver, 
as it was more or lefs fine. 

Silver was lyableto a change in its 
value, as other goods, from any 
change in its quantity, or in the de- 
mand for it. 

Silver had qualities which fitted it 
for the ufe of money. 

i . It could be brought to a ftand- 



CONSIDERED. 9 

ard Infinenefs, fo was certain as to its 
quality. 

2. It was eafie of delivery. 

3. It was of the fame value in one 
place that it was in another; or dif- 
fered little, being eafie of carriage. 

4. It could be kept without lofs 
or expence ; taking up little room, 
and being durable. 

5. It could be divided without 
lofs, an ounce in four pieces, being 
equal in value to an ounce in one 
piece. 

Silver having thefe qualities, 'tis 
reafonable to think it was ufed as 
money, before it was coined, what 
is meant by being ufed as money, 
is, that filver in bullion was the mea- 
fure by which goods were valued: the 
value by which goods were exchanged: 
B 



IO MONEY AND TRADE 

and in which contracts were made 
payable. 

He who had more goods than he 
had life for, would choofe to barter 
them for filver, tho' he had no ufe for 
it; becaufe, filver was certain in it's 
quality : it was eafie of delivery: it 
could be kept without lofs or expence: 
and with it he could purchafe other 
goods as he had occafion,in whole 
or in part, at home or abroad, filver 
being divifible without lofs, and of 
the fame value in different places. 
If A. B. had ioo fheep, and de- 
fired to exchange them for horfes ; 
C. D. had 10 horfes, which were 
equal to,or worth the ioo fheep, and 
was willing to exchange : but as A. 
B. had not prefent occafion for the 
horfes, rather than be at the expence 



CONSIDERED. II 

of keeping them, he would barter 
his fheep with E. F. who had the 
value to give in filver, with which he 
could purchafe the horfes at the time 
he had occafion. 

Or if E. F. had not filver, but 
was fatisfied to give his bond for the 
filver, or the horfes, payable at the 
time A. B. wanted them ; A. B. 
would choofe to take the bond paya- 
ble in filver, rather than in horfes : 
becaufe filver was certain in quality, 
and horfes differed much, fo filver 
was ufed as the value in which con- 
trails were made payable. 

Silver was likewife ufed as the 
meafure by which goods were valu- 
ed, becaufe certain in quality, if A. 
B. hadaioo weight of lead, and de- 
fired to exchange it for barley, the 

B 2 



12 MONEY AND TRADE 

way to know what quantity of barley 
was equal in value to the lead, was by 
the filver. if the ioo weight of lead 
was equal to five ounces of tine filver, 
and 5 ounces of fine filver equal to 20 
bolls of barley, then 20 bolls was 
the quantity of barley to be given in 
exchange for the lead. 

Silver being eafie of carriage, fo 
equal in one place to what it was in 
another; was ufed as the meafure 
by which goods to be delivered in 
different places w r ere valued. If a 
piece of wine was to be delivered at 
Glafgow by A. B. merchant there, 
to the order of C. D. merchant in 
Aberdeen: and the value to be delive- 
red in oats at Aberdeen by C. D. to 
the order of A. B. the wine could 
not be valued by the quantity of oats 



CONSIDERED. 13 

k was worth at Glafgow, nor the oats 
by the quantity of wine they were 
worth at Aberdeen, wine or oats 
might differ in quality , or be more or 
lefs valuable at the one place than at 
the other, the way to have known 
what quantity of oats was equal to the 
wine, was by the quantity of filver 
each was worth at the places they 
were to be delivered, if the piece of 
wine was worth at Glafgow 20 ounces 
of fine filver, and 20 ounces of fine 
filver worth 50 bolls of oats at Aber- 
deen ; then 30 bolls w^as the quantity 
of oats to be given there in return for 
the wine. 

Silver being capable of a ftamp, 
princes, for the greater convenience 
of the people, fet up mints to bring it 
to a ftandard, and ftamp it; whereby 



14 MONEY AND TRADE 

its weight and finenefs was known, 
without the trouble of weighing or 
fyning ; but the ftamp added nothing 
to the value. 

For thefe reafons filver was ufed as 
money ; its being coined was only a 
confequence of its being applied to 
that ufe in bullion, tho' not with the 
fame convenience. 

Mr. Locke and others who have 
wrote on this fubject,fay, the gene- 
ral confent of men placed an imagi- 
nary value upon filver, becaufe of its 
qualities fitting it for money, 

I cannot conceive how different 
nations could agree to put an imagi- 
nary value upon any thing, efpecially 
upon filver, by which all other goods 
are valued ; or that any one country 
would receive that as a value, which 

* Locke p. 3 i . upon intereft, and p. I . upon money. 



CONSIDERED. 15 

was not valuable equal to what it was 
given for ; or how that imaginary va- 
lue could have been kept up. but, 
fuppofe France receiving filver at an 
imaginary value, other nations recei- 
ved it at that value, becaufe received Co 
in France : then for the fame reafon 
a crown paffing in France for j6 Sols, 
fhould pafs in Scotland for 76 pence, 
and in Holland for 76 Stivers, but 
on the contrair, even in France 
where the crown is raifed, 'tis worth 
no more than before when at 60 Sols. 
It is reafonable to think filver was 
bartered as it was valued for its ufes as 
a mettal, and was given as money ac- 
cording to its value in barter, the 
additional ufe of money filver was 
applied to would add to its value, be- 
caufe as money it remedied the dif- 



l6 MONEY AND TRADE 

advantages and inconveniencies of 
barter, and confequently the demand 
for filver increafing, it received an 
additional value equal to the greater 
demand its ufe as money occafioned. 

And this additional value is no 
more imaginary, than the value fil- 
ver had in barter as a metal, for fuch 
value was becaufe it ferved foch 
ufes, and was greater or leffer accor- 
ding to the demand for filver as a 
mettal, proportioned to its quantity, 
the additional value filver received 
from being ufed as money, was be- 
caufe of its qualities which fitted it for 
that ufe ; and that value was according 
to the additional demand its ufe as 
money occafioned. 

If either of thefe values are imagi- 
nary, then all value is fo, for no goods 



CONSIDERED. IJ 

have any value, but from the ufes 
they are apply'd to, and according 
to the demand for them, in proporti- 
on to their quantity. 

Thus filver having a value, and 
qualities fitting it for money, which 
other goods had not, was made money, 
and for the greater convenience of 
the people was coined. 

The names of the different pieces 
might have been number i . number 
2. and fo on ; number 60 would 
have been the fame as a crown ; for 
the name and (tamp was only to cer- 
tify, that the piece had fuch a quan- 
tity of filver ink, of fuch a finenefs. 

Goods of any other kind that 

have the fame qualities might then, 

and may now be made money equal 

to their value, gold and copper may 

C 



Itf MONEY AND TRADE 

be made money, but neither with fo 
much convenience as filver. pay- 
ments in copper being inconvenient 
by reafon of its bulk; and gold not 
being in fo great quantity as to ferve 
the ufe of money, in countries where 
gold is in great quantity, it is ufed as 
money ; and where gold and filver 
are fcarce, copper is ufed. 

Gold is coined for the more eafie 
exchange of that metal, and copper 
to ferve in fmall payments ; but filver 
is the meafure by which goods are 
valued, the value by w T hich goods are 
exchanged, and in which contracts 
are made payable. 

As money encreafed,thedifadvan- 
tages and inconveniences of barter 
were removed ; the poor and idle were 
employed, more of the land was la- 



CONSIDERED. ip 

boured, the product encreafed, ma- 
nufactures and trade improved, the 
landed-men lived better, and the peo- 
plewith lefsdependanceon them. 

chap ir. 

Of Trade, and how far it depends on money, that the 
increafe of the people depends on Trade, of exchange. 

Trade is domeffick, or foreign, 
domeftick trade is the imployment of 
the people, and the exchange of goods 
within the country. 

Foreign trade has feveral branches. 

i. The product and manufacture 
being more than the confumption, a 
part is exported, and in return foreign 
goods are brought home. 

2. Selling the goods exported at one 
port, and loading there to fell another; 
whereby a greater return is made, 
than if the goods exported had been 
carry'd directly there. 



20 MONEY AND TRADE 

3. Bringing home the product and 
manufacture of other countries, from 
whence, and when they are cheap ; 
to fnpply countries where, and when 
they are dear. 

4. Bringing home the product of 
other countries, and exporting it in 
manufacture. 

5. Freighting,orhireingoutfhips. 
Domeftick and foreign trade may 

be carried on by barter; but not for 
fo great a value as by money, nor 
with fo much convenience. 

Domeftick trade depends on the 
money, a greater quantity employs 
more people than a lefTer quantity, 
a limited fum can only fet a number 
of people to work proportioned to 
it, and 'tis with little fuccefs laws are 
made, for imploying the poor or idle 



CONSIDERED. 21 

in countries where money is fcarce; 
good laws may bring the money to 
the full circulation 'tis capable of, and 
force it to thofe employments that 
are mod profitable to the country: 
but no laws can make it go further, 
nor can more people be fet to work, 
without more money to circulate fo, 
as to pay the wages of a greater num- 
ber, they may be brought to work 
on credit, and that is not practicable, 
unlefs the credit have a circulation, fo 
as to fupply the workman with ne- 
ceffaries ; if that's fuppofed, then that 
credit is money, and will have the 
fame effects, on home, and foreign 
trade. 

An addition to the money adds 
to the value of the country, fo long 
as money gives intereft, it is imploy- 



22 MONEY AND TRADE 

ed ) and money imployed brings pro- 
fit, tho' the imployer lofes. if 50 
men are fet to work, to whom 25 
{hillings is payed per day, and the 
improvement made by their labour be 
only equal to, or worth 15 s. yet by 
fo much the value of the country is 
increafed. but as it is reafonable to 
fuppofe their labour equal to 40. s. fo 
much is added to the value of the 
country, of which the imployer gains 
15 s. 15 may be fuppofed to equal 
the confumption of the labourers, 
who before lived on charity, and 1 o s. 
remains to them over their confump- 
tion. 

If aftone of wooll is worth 10 s. 
and made into cloth worth 2 pound ; 
the product is improved to four times 
the value it had in wooll: the work- 



CONSIDERED. 23 

men may be fuppofed to confume 
more than when they were not im- 
ployed ; allow one 4th, the nation is 
gainer double the value of the pro- 
duct, fo an addition to the money, 
whether the imployer gains or not, 
adds to the national wealth, eafes the 
country of a number of poor or idle, 
proportioned to the money added, 
enables them to live better, and to 
bear a fhare in the publick with the 
other people. 

Thefirft branch of foreign trade, 
which is the export and import of 
goods, depends on the money, if one 
half of the people are imployed, and 
the whole product and manufacture 
confumed; more money, by imploy- 
ing more people, will make an o- 
verplus to export: if then the goods 



24 MONEY AND TRADE 
imported ballance the goods exported, 
a greater addition to the money will 
imploy yet more people, or the fame 
people before employed to more ad- 
vantage ; which by making a greater, 
or more valuable export, will make 
a ballance due. foifthe money lef- 
fens, a part of the people then imploy- 
ed are fet idle, or imployed to lefs ad- 
vantage ; the product and manufacture 
is lefs, or lefs valuable, the export of 
confequence lefs, and a ballance due 
to foreigners. 

The 2d and 3d branches of fo- 
reign trade, called the trades of car- 
riage ; are monopolized out of Eu- 
rope, by thefe countries who have 
colonies; and in Europe, by thefe 
who fell cheapeft. 

Scotland has advantages for trade 



CONSIDERED. 25 

by which the merchants might un- 
derfell merchants in Holland, as 
cheapnefs of living, paying lefs to the 
publick, having workmen, feamen, 
and provifions for victualling cheaper: 
but if the Dutch merchant's ftock is 
1 0000 lib. and his yearly expence 
500 ; he can trade at 1 o per cent pro- 
fit, and add yearly 500 lib. to his ftock. 
whereas a Scots merchant, whofe 
ftock is 500 lib. and his yearly ex- 
pence 50; cannot trade fo cheap. 

If 'tis ask't how a Dutch merchant 
trades who has only 500 lib. ftock ? 
he reftrids his expence fo as he can 
afford to trade at 10 per cent profit: 
or money being in greater quantity 
in Holland, whereby it is eafier bor- 
rowed, and at lefs ufe; he gets credit 
for more at 3 or 4 per cent, by which 
D 



l6 MONEY AND TRADE 

he gains 6 or 7. and unlefs money 
be in greater quantity in Scotland, or 
expence retrench'd, we cannot trade 
fo cheap as the Dutch ; tho' we have 
advantages for trade that they have 
not, and tho' they be under difadvan- 
tages we are not lyable to. by a greater 
quantity of money and oeconomy, 
the Dutch monopolize the trades of 
carriage even from the Englifh. 

The 4th branch of foreign trade, 
bringing home the product of other 
countries, and exporting it in manu- 
facture, depends on the quantity of 
money, we are fo far from compe- 
ting with the Dutch in this trade,that 
our wooll was fent to Holland, and 
imported from thence in manufacture; 
under the difficulty of a prohibition 
on the export of the wooll, and on 



CONSIDERED. 1J 

the import of the manufacture, yet 
befides the advantages already named, 
which we have for trade over the 
Dutch, the material is the product of 
our country, and greater privileges are 
granted to manufacturers here, than 
in Holland. 

'Tis alledged, if the prohibition 
had continued, manufactures might 
have come to perfection. 

The advantage fome men made by 
manufacture, may have occafion'd the 
fetting up of more, while the money 
has been diminifhing ; but that money 
fo imployed, has been taken from 
fome other ufe it was before imploy'd 
in: for money cannot ferve in two 
places at one time. 

'Tis alledged, that the allowing 
the wooll to be exported, occafioned 

D 2 



28 MONEY AND TRADE 

the exportation of the money, that at 
one time 5000 lib. was fent to Eng- 
land to buy wooll. 'tis afkt what be- 
came of that wooll? they anfwer, it 
was fent to France for wine, then, as 
5000 lib. of Englifh wooll may be 
worth 8 or 10 thoufand pound in 
France; fo the 5000 lib. fent to Eng- 
land, faved the fending out of 8 or 
1 0000 lib. to France. 

Tothcfe who don't throughly ex- 
amine the date of this country, it may 
feem odd that wooll mould be allow- 
ed by law to be exported: but if the 
product of Scotland cannot be ma- 
nufaclur'd with lefs than 50000 peo- 
ple, and the money that can be fpar'd 
to manufacture, be only capable to 
employ 25000, one half of the pro- 
dirt will be loft if it is not allowed to 
be exported. 



CONSIDERED. 29 

The 5th branch, the freightingor 
hireing out (hips, depends on the 
money, and the other branches of 
trade, where fhips are in ufe to be 
freighted by Grangers, and fupported 
by a great demand for their own 
trade; there all forts of (hips are to 
be hired cheaper than in other places; 
and merchants are fure offuch fhips 
as are proper for the goods they load 
with, and the countries they trade to. 
This trade of freighting brings the 
goods of other countries to Holland, 
tho' defign'd for fale elfewhere. if 
woollen manufacture from England 
to Portugal yields 25 per cent profit, 
and to Holland 15 ; the Englifh mer- 
chant will choofe to fend fuch goods 
to Holland for 15 per cent, rather 
than to Portugal for 2 5; and the Dutch 



30 MONEY AND TRADE 

merchant who is able to trade cheaper, 
from the cheapncfs of freight, etc. is 
fatisfied for the other 10 to carry to 
Portugal. 

Moft authors who have wrote on 
trade divide it into national and pri- 
vate, they fay, a merchant may gain 
where the nation lofes. if a iooolib. 
is exported to the Indies in money or 
bullion, and a iooolib. in goods or 
provifions; the return worth 8000 lib. 
the merchant gains 6000; but as thefe 
goods are all confumed in the coun- 
try, the nation lofes the 1000 lib. 
money or bullion exported. 

They don't conllder whether the 
8000 lib. of goods imported (all fup- 
pofed to be confurn'd in the country) 
does not leffen the confmiption of 
the product or manufacture of the 



CONSIDERED. 31 

country, fo as to occafion an addition 
to the export, at leaft equal to the 
1 000 lib. money or bullion exported, 
but allowing they do not leffen the 
confumption of the goods of the 
country, and the ufe of them be not 
at all neceffary ; yet thefe goods being 
worth 8000 lib. at home or abroad, 
the nation gains 6000. if the people 
confume them, and in extravagant 
ufes, that's not the fault of the trade, 
nor for that reafon fliould that trade be 
call'd difadvantageous; it is the fault 
of the government, who ought to hin- 
der the too great confumption of fo- 
reign goods \ efpecially, fuch as might 
be wanted without caufing a greater 
confumption of the goods of the coun- 
try, that care being taken, by making 
the vent lefs profitable at home, than 



32 MONEY AND TRADE 

a broad ; merchants would export 
them, or for the future leflen the 
import. 

If Eaft-India goods that fell for a 
iooolib. in England, are only worth 
abroad 800 lib, the duty payed at their 
entry being returned, and more given 
as a draw- back to encourage the ex- 
port, their vent abroad will be more 
profitable than in England. 

A people may confume more of 
their ov/n or foreign goods, than the 
value of the product, manufac1:ure,and 
profits by trade ; but their trade is not 
difadvantageous, it is their too great 
confumption: and the too great con- 
fumption of the product and manu- 
facture of the country, may be as 
hurtful as that of foreign goods ; for, 
if fo much is confumed, that the re- 



CONSIDERED. 33 

mairider exported won't pay the con- 
fumption of foreign goods , a bal- 
lance will be due, and that ballance 
will be fent out in money or bullion. 

A nation may gain where the mer- 
chant lofes, but wherever the mer- 
chant gains, the nation gains equal, 
and fo much more , as the mainte- 
nance and wages of the people em- 
ploy'd and the duty on the goods a- 
mounts to. if a fhip infur'd is loft, 
the nation lofes, and the merchant 
lofes nothing; but in that cafe the in- 
fureris the merchant, and lofes equal 
to the nation. 

As trade depends on money, fo 
the encreafe or decreafe of the people 
depends on trade, if they have em- 
ployment at home, they are kept at 
home ; and if the trade is greater than 
E 



34 MONEY AND TRADE 

ferves to employ the people, it brings 
more from places where they are not 
employ 'd. Sir William Petty values a 
man at 20 years purchafe, by that 
computation a feaman whofe wages 
is forty fhil. a month, is valued 480 
lib. 

Scotland has a very inconfiderable 
trade, becaufe fhe has but a very fmall 
part of the money, there is a little 
home trade, but the country is not 
improv'd, nor the producl manufac- 
ture, there is a little of the firft 
branch of foreign trade, and that is 
carried on with great difadvantage to 
the people, who pay dearer for moft 
foreign goods, and are worfe ferv'd, 
than other nations: if they have any 
cheaper, 'tis from the lower duty on 
the import, in Scotland low prices 



CONSIDERED. 35 

are given for goods bought up to be 
exported, the merchants profit being 
great : if a 1 00 (lone of wooll is worth 
in Holland ten piece of linen cloth, 
thefe ten pieces are fold in Scotland 
for the value of a 180 or 200 ftone 
of fuch wooll. fuch goods as do not 
yield that great profit, are not expor- 
ted ; and thefe that do, are not expor- 
ted in any quantity, the merchant's 
ftock being fmall. Scotland has no 
part of the other branches of foreign 
trade, not being able to trade fo cheap 
as other nations. 

Some think if intereft were lowered 
bylaw, trade would increafe, mer- 
chants being able to employ more 
money and trade cheaper, fuch a law 
would have many inconveniencies, 
and it is much to be doubted, whe- 
E 2 



$6 MONEY AND TRADE 

ther it would have any good effeft; 
indeed, if lownefs of interefl were the 
confequence of a greater quantity of 
money, the Hock apply'd to trade 
would be greater, and merchants 
would trade cheaper, from theeafinefs 
of borrowing and the lower interefl 
of money, without any inconvenien- 
cies attending it. 

Tho' interefl: were at 3 per cent in 
Holland, and continued at 6 in Scot- 
land ; 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, notwith- 
ftanding the difference of interefl. 

If money in Scotland were equal 
to the demands at 6 per cent, the 
Dutch could not trade fo cheap in 



CONSIDERED. 37 

herring; the hinderances of that 
trade being the confequences of the 
fcarcity of money, the materials for 
carrying on the fifhing are cheaper in 
Holland, but the cheapnefs of vi&u- 
alling alone would ballance that, and 
the dearth of thefe materials, as ofo- 
ther foreign goods, coming from the 
fcarcity of money; that being reme- 
ded, thefe materials, and other foreign 
goods that are not the product of Hol- 
land, would be fold as cheap in Scot- 
land. 

Exchange, is when a merchant 
exports to a greater value than he 
imports, and has money due abroad ; 
another importing to a greater value 
than he exported, has occafion for 
money abroad: this laft by paying in 
money to the other, of the weight and 



38 MONEY AND TRADE 

finenefs with that is due him, or to 
that value, faves the trouble, hazard , 
and expence, to himfelf of fending 
money out, to the other of bringing 
money home, and to both the expence 
of re-coy ning. 

So long as foreign trade, and ex- 
pence kept equal, exchange was at the 
par: but when a people imported for 
a greater value, or had other occafions 
abroad, more than their export, and 
the expence of foreigners among them 
would ballance ; there was a neceflity 
offending out the ballance in money 
or bullion, and the merchant or gen- 
tleman who owed, or had occafion for 
money abroad, to fave the trouble, 
expence and hazard offending it out, 
gave fo much per cent to another, as 
the trouble, expence and hazard was 



CONSIDERED. 39 

valued at. thus exchange rofe above 
the par, and became a trade. 

Mr. Mun on trade, page 100, 
fays, the exchange being againft a na- 
tion, is of advantage to that nation, 
and fuppofes, if a 100 lib. at London 
is worth no more than 90 lib. of the 
fame money at Amfterdam, the Dutch 
to fend 500000 lib. of goods to En- 
gland, and the Englifh 400000 lib. of 
goods to Holland; it follows, that 
the money due the Englifh at Am- 
fterdam, will ballance 440000 lib. due 
to the Dutch at London: fo 60000 
lib. pays the ballance. Mr Mun does 
not confider, that the Dutch goods 
worth 500000 lib. when exchange 
was at the par, are worth at London 
555555 1- when 90 lib. at Amfter- 
dam is worth a 100 lib. at London. 



40 MONEY AND TRADE 

and the 400000 lib. of Englifh goods 
in Holland, are only worth 360000 
lib. that fum being equal by exchange 
to 400000 lib. in England, fo in place 
of England's having an advantage of 
40000 lib. as he alledges by the ex- 
change being againft her: fhe pays 
95555 lib.mcre,than if exchange had 
been at the par. 

When exchange is above the par, 
it is not only payed for the fums due 
of ballance, but affecls the whole ex- 
change to the place where the bal- 
lance is due. if the ballance is 20000 
lib. and the fums exchanged by mer- 
chants who have money abroad, with 
others who are owing, or have occa- 
fion for money there, be 60000 lib. 
the bills for the 60000 lib. are fold 
at or near the fame price, with the 
20000 lib. of ballance. 



CONSIDERED. ^t 

It likewife affe&s the exchange to 
countries where no hallance is due. 
if the exchange betwixt Scotland and 
Holland is 3 per cent, above the 
par againft Scotland, betwixt Eng- 
land and Holland at the par, tho' no 
ballance is due by Scotland to Eng- 
land, yet the exchange with England 
will rife ; for, a 100 lib. in England 
remitted to Scotland by Holland, will 
yield 103 lib. fo betwixt Scotland and 
England it may be fuppofed to be had 
at 2 per cent, being lefs trouble than 
to remit by Holland. 

Goods are fold to foreigners, ac- 
cording to the firft coft. if goods 
worth a 100 lib. in Scotland, are 
worth 130 lib. in England, thefe 
goods will be exported, 30 per cent 
being fuppofed enough for the charges 
F 



42 MONEY AND TRADE 

and profit* if the price of thefe goods 
lower in Scotland from a ioo lib. to 
80, the price in England will not con- 
tinue at a 1 30 ; it will lower propor- 
tionally, for either Scots merchants 
will underfell one another, or Englifh 
merchants will export thefe goods 
themfelves. fo if they rife in Scotland 
from a 100 lib. to 120 ; they will rife 
proportionably in England, unlefs 
the Englifh can be ferved with thefe 
goods cheaper from other places, or 
can fupply the ufeofthem with goods 
of another kind, this being fuppofed, 
it follows that, 

By fo much as exchange is above 
the par, fo much all goods exported 
are fold cheaper, and all goods impor- 
ted are fold dearer than before, if a 
merchant fend goods yearly to Eng- 



CONSIDERED. 43 

land firft coft, charges and profit 6000 
lib. money in England of the fame 
ftandard with money in Scotland, 
and no ballance due j but a ballance 
due to Holland, railing the exchange 
3 per cent above the par to Holland, 
and affecting the exchange to Eng- 
land 2 per cent, 5882 lib. 7 fh. in 
England pays the goods, that fum by 
exchange being equal to 6000 lib. in 
Scotland, fo that a ballance due to Hol- 
land, by raifing the exchange to other 
countries,occafions alofs to Scotland 
of 117 lib. 13 fh. on the value of 
6000 lib. of goods fent to England. 
Englifh goods are fold fo much 
dearer, if an Englifh merchant fends 
goods yearly to Scotland, firft cod, 
charges and profit 6000 lib. 6120 lib. 
rauft be payed for thefe goods in ' 
F 2 



44 MONEY AND TRADE 

Scotland , being only equal to 6000 
lib. in England, if the exchange had 
been at the par, the Scots goods fent 
to England would have fold 1 17 lib. 
14 fh. more, and the Englifh goods 
fent to Scotland 120 lib. lefs. 

Thus to all places with whom 
exchange is above the par, goods fent 
out are fold fo much lefs, and goods 
brought from thence are fold fo much 
dearer, as the exchange is above the 
par; whether fent out, or brought in, 
by Scots or foreign merchants. 

The merchant who deals in Eng- 
li(h goods gains no more than when 
exchange was at the par, tho' he fells 
dearer ; nor the merchant who deals 
in Scots goods lefs, tho' he fells chea- 
per ; they have both the fame profit 
as when exchange was at the par. 



CONSIDERED. 45 

Scotland pays 2 per cent more for 
Englifti goods, and England 2 per 
cent lefs for Scots goods: all, or a 
great part of the lofs falls at laft 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 mo- 
ney or bullion to pay the ballancc due 
by trade, a lofs of fo much riches, and 
very hurtful to trade, might havedif- 
charged the import of fuch goods as 
the people could beft want ; or laid a 
duty on them, fuch as might have 
leffen'd their confumption:they might 
have given encouragement to induftry, 
whereby the product would have been 
encreas'd and improv'd, or difcoura- 
ged extravagant confumption, where- 
by the overplus to export would have 



4^ MONEY AND TRADE 

been greater ; any one of thefe me- 
thods would have brought trade and 
exchange equal, and have made a bal- 
lance due them: but in place of thefe 
meafures, they prohibit bullion and 
money to be exported, which could 
not well have any other effect, than 
to raife the exchange equal to the ha- 
zard, fuch laws added to the export 
of money or bullion, which maybe 
fuppofed 3 per cent more : and as thefe 
laws by fuch effect were hurtful, ma- 
king all goods exported fell yet 3 per 
cent cheaper,and all goods imported 3 
per cent dearer; the ftricter they were 
execute, the higher the exchange rofe, 
and the more they did hurt, the bal- 
ance was (Hllfent out in money or bul- 
lion, by the merchant who owed it, by 
the banker who gave the bills, or by 
the foreigner to whom it was due. 



CONSIDERED. 47 

Suppofe the money of Scotland, 
England, and Holland of the fame 
weight and finenefs. Scotland to trade 
with no other places, the exchange 
at the par the yearly export from 
Scotland, firft cod 300000 lib. char- 
ges and profit 30 per cent, goods im- 
ported 280000 lib. charges and profit 
30 per cent, one half of the trade to 
be carried on by Scots merchants, the 
other half by Englifh and Dutch. 

Due to Scotland for one half*| 
of the export carried out by J> 195 OOO 
their own merchants J 

Due for the other half car- "J -* 

riedoutby Englifh and Dutch. J 150000J 34500© 



Due by Scotland to England"] 
and Holland for goods impor- j> 1 82000 
ted by Englifh and Dutch. — J 

Due for goods imported byl 1 

Scots merchants »— J 140000 J 322000 



48 MONEY AND TRADE 

The expence of Scots-men abroad, 
more than of foreigners in Scotland, 
40000 lib. if this is fuppofed the year- 
ly ftate of the trade and expence of 
Scotland, there will be a ballancedue 
of 17000 lib. and unlefs the Scots 
retrench the confumption of foreign 
goods, fo as to import lefs ; or retrench 
the confumption of their own goods, 
fo as to export more ; or increafe, or 
improve their product, fo as the ex- 
port be greater or more valuable ; or 
retrenchin their expence abroad, fince 
that ballance muft be paid it will go 
out in money or bullion : and occa- 
sions the exchange to rife 3 per cent, 
the prohibition on the export of mo- 
ney 3 more, if Scots-men export it, 
the Nation faves the 1020 1. exchange 
on the 17000 of ballance due, which 



CONSIDERED. 49 

is loft if Englifh merchants export 
it; but the lofs fuch a rife in exchange 
occafionson the goods, is more con- 
fiderable. the 195000 lib. due abroad 
for goods fent out of Scotland by 
Scots merchants, will be payed with 
183962 lib. Englifh or Dutch money, 
that fum being equal by exchange at 
6 per cent to 195000 lib. in Scot- 
land, the 150000 lib. due for firft 
coil of goods carried out by Englifh. 
or Dutch merchants, will be payed 
with 1 41 510 lib. Englifh or Dutch 
money, that fum being equal to 
150000 lib. in Scotland, the 182000 
lib. duebyScotland for goods impor- 
ted by Englifh and Dutch merchants, 
will come to 192920 lib. in Scotland, 
and the 140000 lib. firft coft of goods 
brought home by Scots merchants, 
G 



50 MONEY AND TRADE 

will come to 148400 lib. in Scotland, 
fothe accompt will run thus. 

Due to Scotland for goods exported 183962 
Brought from abroad firft cofl 1 40000 

Ballance of expence abroad 40000 

Due to Scotland abroad 3962 



Due by Scotland for goods impor-1 
ted by r nglifli and Dutch J 192920 

Englifh and Dutch take back in goods 1 5 0000 



Due to Englifh and Dutch in Scotland 42920 

3 9 6 2 lib . d ue abroad to Scotland in ~) 
Scots money j 41 99 

Remains due by Scotland. 38 "f 2 1 

So the rife in the exchange of 3 per 
cent by the ballance due of 17000 lib. 
and 3 more by the prohibition on 
the export of money, occafions a lofs 
to Scotland of2i72i 1. and makes 



CONSIDERED. 51 

the next year's ballance 38721 lib. 
the/ the trade be the fame as before, 
of which 2 1 72 1 lib. loft by exchange, 
one half would be faved if money 
were allowed to be exported. 

Since the exchange being 6 per cent 
above the par, occasions the lofs of 
2 1 72 1 lib. then raifing the money 8 
and a one third per cent, having raif- 
edthe exchange with England to 14 
per cent, and with Holland to 30, 
makes the lofs proportionably greater: 
Scots goods being fuppofed to conti- 
nue at the fame prices they were fold 
for, before the money was raifed, or 
not to rife in the fame proportion 
with the money, for when exchange 
was at the par, a 100 lib. of Scots 
goods were fold abroad for a 130 lib. 
Englifti money; but 114 lib.Englifh 
G2 



52 MONEY AND TRADE 

money, being now equal by exchange 
to a 130 lib. in Scotland, the Scots 
merchant can afford to fell the fame 
quantity of goods for a 114 lib. that 
he fold before at a 130, and have the 
fame profit. To foreign goods worth 
abroad a 100 lib. and fold in Scot- 
land for a 130 lib. when exchange 
was at the par ; cannot be fold now 
forlefsthana i5olib.inScotland,that 
fum being only equal to a 130 lib, 
Englifh money; and the merchant's 
profit is no greater, than when he 
fold the fame quantity of goods for 
a 130 lib. 

It may not be improper to con- 
fider what confequences would attend 
the lowering the money to the Eng- 
lifh ftandard, and allowing it to be 
exported. 



CONSIDERED. 53 

The former ftate of trade I have 
fuppofed to be carried on, one half 
by Scots merchants, the other half 
by Englifhand Dutch; but as moft 
of the trade is carried on by Scots 
merchants, I fhall fuppofe this ftate 
of trade accordingly, the one or the 
other will clear the matter in queftion. 

The ftate of trade now, and ex- 
change fuppofed at 1 5 per cent to Eng- 
land, and 30 to Holland, the whole 
export of Scotland to be 300000 lib. 
of which 250000 lib. carried out by 
Scots merchants, fold at 30 per cent 
profit and charges 325000 lib. 

In Englifh money 282608 

Exported by foreigners for 50000I. ^» 
Jn Englifh money J 43478 



The whole export 3 26086 



54 MONEY AND TRADE 

Goods imported 306086 

Spent abroad. 40000 

Due of ballance by Scotland. 30000 

Money being lowered to the P ijg- 
lifli ftandard, and aliow'd by law to 
be exported ; will bring the exchange 
with England to 2 or 3 per ^ent,and 
with Holland to 17 or 18, notwith- 
ftanding of the ballance due. for, as 
a 100 lib. in Edinburgh, would then 
be equal to 100 lib. at London, and 
being allowed to be exported ; none 
would give above 102, or 3 here for a 
100 lib. at London: becaufe the 
trouble and charge of fending it to 
London, would be valued no higher, 
the export, import, and expence a- 
jbroad fuppofed to continue the fame ; 
a ballance would then be due to Scot- 
land. 



CONSIDERED. 5$ 

The fere of trade, exchange at 
3 per cent to England, and propor- 
tionately to other places. 

Due in Englifti money, for 3 25000 1."| 
firft colt, charges and profit of goods fent f 3 1 $5 34 
out by Scots merchants. j 

Due in Englifh money, for $0000 1. 'J 
of goods exported by foreigners. J 48544 

The whole export 3 6407 8 



Of this deduce the value of goods im-"| 

ported. j 306086 

And the expence abroad. 40000 



There will be a ballance due to Scot- "1 

land, of j 17992 

As this ballance due to Scotland, 
would bring exchange to the par, and 
3 per cent on the Scots fide ; 3 more, 
becaufe money in England is prohi- 
bited to be exported ; 100 lib. in Scot- 



$6 MONEY AND TRADE 
land, would be worth 106 lib. in Eng- 
land, and proportionably in other 
places, fo the ftate of trade would then 
be thus. 



Due in Englifii money for 3 25000 1. 
firft coft, charges and profit of Scots 
goods fent out by Scots merchants, and 
5 0000 1. exported by foreigners . 



>397coo 



Of this fpent abroad . 40000 

Imported from abroad. 306086 

Ballance then due to Scotland. 5 1 4 1 4 

If the yearly export be as great as 
I fuppofe it, and the ballance only 
20000 pounds; then lowering the 
money to the Englifh ftandard, will 
make a ballance due of 514 14 lib. tho* 
the money is not allowed to be expor- 
ted. 

It may be objected, that fuch an 
alteration in the exchange, lowering 



CONSIDERED. 57 

the value of foreign money; might 
hinder the fale of our goods abroad.' 
for, linen-cloth bought in Scotland 
for a 100 lib. and fold at London for 
a 1 15 lib. yields by exchange 31 per 
cent profit, but if exchange were 6 per 
cent on the Scots fide, the profit is 
only 9 per cent. 

It is anfwered. if an Englim mer- 
chant takes bills on Scotland for a 
1 000 lib. to lay out on linen-cloth, the 
exchange then at the par: the linen- 
cloth is fold in England according to 
the firft coft, charges and ufual profit, 
next year the exchange is on the Eng- 
lifh fide, the linen is fold in England 
cheaper than before, the third year 
exchange returns to the par, the linen 
is then fold in England as the firit 
year, if the firft coft of linen is dearer, 
H 



58 MONEY AND TRADE 

the confumer pays the more for it, 
the merchant's profit is the fame. 

All nations endeavour to get theex- 
change as much as they can on their 
fide, the exchange from Holland to 
England is 1 2 or 15 per cent, to Scot- 
land 30 per cent, to France 40 or 50, 
fometimes more ; yet Dutch goods 
fell in thcfe countries, the merchant 
has his profit the fame as when ex- 
change was lower, the confumer pays 
more for them. Englifh cloth is fold 
at Paris from 18 to 20 livres the 
French ell. when the lued'ore is at 
12 livres, from 20 to 23, when the 
lued'ore is at 14 livres : becaufe the 
exchange to England is dearer, in pro- 
portion as the French money is rais'd. 
Moft goods fent from Scotland are 
fuch as foreigners won't want, tho' 



CONSIDERED. 59 

they payed 10 or 20 per cent more 
for them, we have an example of 
this in thewoolL during --the prohi- 
bition, wooll fold in Holland and 
France for double the firft coft. now 
it has fallen to 30 or 40 per cent 
profit, prices are given for goods, ac- 
cording to their firfl: coft, charges, and 
ufual profit ; where prohibitions are, 
the hazard of exporting contrair to 
law is valued, wooll is of lefs value 
now in Holland than in time of peace, 
becaufe the vent of their woollen ma- 
nufacture is lefs; but tho' wooll were 
as valuable in Holland as before, and 
tho'a Dutch manufacturer would give 
200 lib. for wooll that coft only a 
100 lib. in Scotland, rather than want 
it: yet as he knows the prohibition is 
taken off, and that the Scots merchants 
Hz 



60 MONEY AND TRADE 

can afford to fell cheaper ; he won't 
buy unlefs he can have it at a reafon- 
able profit, fo either the Scots mer- 
chants bring down the price, by un- 
derfelling one another ; or the Dutch 
merchant commiffions it himfelf. if 
a duty were put on fuch goods whofe 
value abroad would bear it, the mer- 
chant would gain the fame, 'tis the 
foreigner pays the duty, 

Befides, lowering the money may 
not lower the prices abroad, for, as 
when money was raifed, goods may 
have rofe in proportion, or have been 
made worfe ; fo as a i oo lib. after the 
money is lower'd will have 33 crowns 
and I more filver in it, than a 1 00 lib. 
had before ; fo a greater quantity of 
goods may be bought with a 100 
lib. than before, or the goods may 



CONSIDERED. 6l 

be made better : efpecially the linen- 
cloth, fince the material would be 
imported forlefs. but, allowing that 
upon the lowering the money, goods 
fold in Scotland as before, and were 
made no better ; and allowing that 
one third or more of the goods ex- 
ported, could not be raifed in their 
prices abroad; becaufe foreigners 
might be ferved cheaper with the fame 
kind of goods from other places, or 
might fupply the ufe of them with 
goods of another kind ;or might con- 
fume lefs of them ; yet, that ought 
notto hinder fucha regulation of the 
money and exchange ; for a draw- 
back might be given upon the export 
of fuch goods, whofe prices abroad 
were not great enough to yield a rea- 
fonable profit. 



6z MONEY AND TRADE 

But left fuch an alteration in the 
exchange, or undervaluing foreign 
money, fhould leiTen the export of 
goods : it may not be advifeable, un- 
lefs a fund were given, out of which 
draw- backs might be payed to encou- 
rage export, and an addition be made 
to the money, whereby the people 
may be fet to work, for without fome 
addition to the money, 'tis not to be 
fuppofed next year's export can be e- 
qual to the laft: it will leiTen as money 
has leflened;a part of the people then 
imployed being now idle ; not for 
want of inclination to work, or for 
want ofimployers, but for want of 
money to imploy them with. 



CONSIDERED. 6$ 

CHAP. III. 

Of the different meafures which have been ufed topre- 
ferve and increafe money, and of banks. 

1 he meafures have been ufed to 
preferve and increafe money, have 
in fome countries been oppofite to 
what has been ufed in others rand op- 
pofite meafures have been ufed in the 
fame countries, without any differing 
circumftances to occafion them. 

Some countries have raifed money 
in the denomination, when others 
have lowered it ; fome have allay'd it, 
when others who had allay'd it have 
rectified it j fome have prohibited the 
export of money under fevered penal- 
ties, when others have by law allow- 
ed it to be exported ;fome thinking to 
add to the money, have obliged tra- 
ders to bring home bullion, in pro- 



64 MONEY AND TRADE 

portion to the goods they imported, 
mod countries have tryed fome or 
all of thefe meafures, and others of 
the fame nature, and have tryed con- 
trary meafures at one time, from what 
they nfed immediately before, from 
the opinion, that fince the method 
ufed had not the effecl: defigned, acon- 
trary would: yet it has not been found, 
that any of them have preferved or 
increafed money ; but on the contrair. 
The ufe of banks has been the 
befl: method yet practifed for the in- 
creafe of money, banks have been 
long ufed in I taly, but as I am inform- 
ed,the invention of them was owing to 
Sweedland. their money was copper, 
which was inconvenient, by reafon 
of its weight and bulk ; to remedy 
this inconveniency, a bank wasfet up 



CONSIDERED. 65 

where the money might be pledged, 
and credit given to the value, which 
paftin payments, and facilitate trade. 

The Dutch for the fame reafon fet 
up the bank of Amfterdam. their 
money was filver, but their trade was 
fo great as to find payments even in 
filver inconvenient, this bank like 
that of Sweedland, is a fecure place, 
where merchants may give in mo- 
ney, and have credit to trade with, 
befides the convenience of eafier and 
quicker payments, thefe banks fave 
the expence of cafheers, the expence 
of bags and carriage, lofies by bad mo- 
ney, and the money is fafer than in 
the merchants houfes, for 'tis lefs ly- 
abletofireor robbery, the neceffary 
meafn res being taken to prevent them. 

Merchants v/ho have money in 
I 



66 MONEY AND TRADE 

the bank of Amfterdam, and people 
of other countries who deal with 
them, are not lyable to the changes in 
the money, by its being allay'd or al- 
tered in the denomination : for. the 
bank receives no money but what's of 
value, and is therefore called bank- 
money ; and tho' raifed in current 
payments, it goes for the value it was 
pledged for in bank-payments, the 
AG o of the bank changes a quarter 
or a half p # cent, as current money is 
more or lefs fcarce. 

Banks where the money is pledg'd 
equal to the credit given, are fure; 
for, tho' demands are made of the 
whole, the bank does not fail in pay- 
ment. 

By theconftitution of this bank, the 
whole fum for which credit is given, 



CONSIDERED. 6j 

ought to remain there, to be ready at 
demand; yet a fum is lent by the ma- 
nagers for a itock to the lumbar, and 
'tis thought they lend great fums on 
other occafions. fo far as they lend 
they add to the money, which brings 
a profit to the country, by imploying 
more people, and extending trade; 
they add to the money to be lent, 
whereby itiseafier borrowed, and at 
lefs ufe;and the bank has a benefit: 
but the bank is lefs fure, and tho' none 
fuffer by it, or are apprehenfive of 
danger, its credit being good ; yet if 
the whole demands were made, or 
demands greater than the remaining 
money, they could notallbefatisfied, 
till the bank had called in what fums 
were lent. 

The certain good it does, will more 

12 



63 MONEY AND TRADE 

than ballance the hazard, tho' once in 
two or three years it failed in pay- 
ment ; providing the fums lent be well 
fecured : merchants who had money 
there, might be difappointed of it at 
demand, but the fecurity being good, 
and intereft allowed ; money would be 
had on a fmall difcount, perhaps at 
the par. 

Laft war, England fetup a bank 
to have the conveniencies of that at 
Amsterdam, and by their conftitu- 
tion to increafe money, this bank 
was made up of fubfcribers, who lent 
the King 1200000 lib. at 8 and a 
third per cent, for 1 1 years, on a par- 
liamentary fund ; and were priviledg- 
ed bankers for that time, the fumdue 
by the government was a fecurity to 
the people, to make good any lolfcs 
the bank might fuffer. 



CONSIDERED. 6<) 

This bank was fafer than thegold- 
fmiths notes in ufe before, it made a 
great addition to the money, having 
a much greater fum of notes out, than 
money in bank, and the fum lent the 
King, which was the fund belonged to 
the fubfcribers, was negotiated at pro- 
fit, and had the fame effect in trade as 
money. I don't know how their notes 
came to be at difcount, whether from 
the circumftances of the nation, or 
from ill management. 

The fund of the bank of Scot- 
land was a i ooooo 1. of which a tenth 
was payed in. this bank was fafer than 
that of England, there being a regi- 
fter whereby moft fums lent were fe- 
cured. its notes went for 4 or 5 times 
the value of the money in bank, and 
by fo much as thefe notes went for 



70 MONEY AND TRADE 

more than the money in bank ; fo 
much was added to the money of me 
nation. 

This bank was more ufeful than 
that of Amfterdam, or Engiar. J ; its 
notes pafling in molt payments, and 
through the whole country :the bank 
of Amfterdam being only for that 
town, and that of England of little 
ufe but at London. 

The ftop of payments which hap- 
pened to the bank of Scotland, was 
forefeen, and might have been pre- 
vented, the confumption of foreign 
goods, andexpencein England, be- 
ing more than the export of goods 
did pay ; the ballance fent out in mo- 
ney leflened the credit of the bank, 
for as credit is voluntary, it depends 
on the quantity of money in the 



CONSIDERED. Jl 

country, and increafes or decrcafes 
v ith it coy ning notes of one pound 
fupported the bank, by furnijhing 
pa; crfor fraall payments, and there- 
by preventing a part of the demand 
for Ttoney: by thefe notes the bank 
might have kept its credit, till other 
methods had been taken to fupply the 
country with aoney ; had not a report 
of raiung the money occafioned an 
extraordinary demand, which in few 
days exhaufted the money in bank, 
and put a flop to payments. 

It would not have been eafie in 
that fcarcity of money to have got 
enough to fupport the bank, tho' men 
of the belt credit had undertaken it ; 
that report of raifing the money ha- 
ving only occafioned a demand from 
the people inEdinburgh. in a ihort 



JZ MONEY AND TRADE 

time notes would have come in fo faft 
from the country, that what money 
could have been got, would not have 
anfvvered the demand. 

If the privy council had lowered 
the money, the Englifh crown to 5 s. 
and the other money in proportion, 
to take place 2 pence p. crown in 3 
days, and the other 3 pence in a 
month ; theoccafion of the demand 
being removed, in all appearance mo- 
ney would have been returned to the 
bank. 

If the ftateof the bank had been 
known, or fufpected by the people; 
fuch a proclamation would have had 
the fame effect, tho' the ftop of pay- 
ment had then happen'd. in that cafe, 
the fupport of the bank might have 
been the narrative of the proclamation; 



CONSIDERED. 73 

the fecurity being good, few or none 
would have kept their money tolofs, 
rather than return it to the bank, and 
if in 3 days money had not come in 
fo faft as expected, their lordfhips by 
a 2d. proclamation might have low- 
ered the crown to 5 fh. to take place 
then, and 6 pence more in 3 days, 
when the credit of the bank had been 
re-eftablifhed, the money might have 
been cryed up, if that had been ne- 
ceflary, the crown to 5 fh. and 5 pence, 
and the other money in proportion 
as it was before. 

Some are againft all banks where 
the money does not lie pledged equal 
to the credit. 1. they fay the demand 
may be greater than the money in 
bank, fecondly, if we are declining 
in our trade, or money, we are not at 
K 



74 MONEY AND TRADE 
all, orarelefsfenfible of it: and if the 
bank fail, we are in a worfe condition 
than before. 

To the firftit's anfwered,Tho' the 
nation had no benefit by the addition 
the bank makes to the money ; nor 
the people by being fupply'd with 
money when otherwife they could 
not, and at lefs intereft; and tho' the 
proprietors had no gain by it: the other 
conveniencies, as quicker and eafier 
payments, &c. are more than equal 
to that hazard; or bank notes, gold- 
fmithsand bankers notes, would not 
be preferred to money, every body 
knowing fuch a ftop may happen to 
the bank, and that gold-fmiths and 
bankers may fail. 

The other objection is the fame 
as to fay, a merchant who had a fmall 



CONSIDERED. J5 

itock, and was capable of imploying 
a greater ; if a fum were offered him 
without intereft,equal to what he had, 
and more as his own increafed, mould 
refufe it, becaufe he might fancy him- 
felf richer than he was, and if his own 
ftock decreafed, that fum lent would 
betaken from him. 

If 15000 isfuppofed the money 
in bank, and 75000 lib. of notes out; 
60000 lib. is added to the money of 
the nation, without intereft: for what 
is payed by the borrowers, is got by 
the proprietors, as the money of the 
nation increafes, the credit of the 
bank increafes, and the fum of notes 
out is greater ; and fb far from making 
the people lefs fenfible of the conditi- 
on of the country, a furer judgment of 
the (late of trade and money may be 
K2 



j6 MONEY AND TRADE 

made from the books of the bank,than 
any other way. 

If trade can be carried on with a 
iooooo lib. and a ballance then due 
by foreigners ; the fame meafures, and 
a greater quantity of money, would 
make the ballance greater, nor is 
that additional money the bank fur- 
nifhes, to be fuppofed will be loft, if 
by a ballance due from trade the di- 
ver money increafes: that credit may 
fail from an accident when money is 
plentiful, and would foon be recovered; 
'tis only loft by a fcarcity of money, 
fuch a credit may fupport trade, in 
cafes where without it trade would 
fink, but cannot do prejudice. 

Another objection is made againfl: 
the bank, that it encouraged the ex- 
portation of money, by furnilhing 



CONSIDERED. jy 

Cims in fuch fpecies as were of moft 
vaJue abroad, to anfwer this objection, 
I fhall make a fuppofition. A. B. 
merchant has occafion for a iooolib, 
in Holland, and defiresC. D. banker 
to give him a bill for that value ; 
there is no money due in Holland to 
Scots merchants, fo C. D. muft ex- 
port the money to pay the bill he 
draws: but, there being no bank, nor 
any poffibility of getting a iooo lib, 
in 40 pence pieces, he fends out mo- 
ney of different fpecies. this does not 
hinder the money to go out, but 
makes the exchange dearer by 2 or 3 
percent, than it would have been if 40 
pence pieces could have been got. and 
tho' no other money were left, but 
old marks, if a ballance is due, thefe 
will go out, tho* not worth 10 pence: 



78 MONEY AND TRADE 

the exchange will be fo much higher, 
the profit of exporting is the fame ; 
and fo far from doing hurt to the 
country, the bank by furnifhing fuch 
pieces as could be exported to lead 
lofs, kept the exchange 2 or 3 per cent 
lower than otherwife it would have 
been, and faved yearly the fending 
out a confiderable fum to pay a grea- 
ter ballance, the higher exchange 
would have occafioned. 

CHAP. IV. 

The fever -almeafures now propofed y confidered. as t rai- 
fingor allaying the money, coynhg the plate, regulat- 
ing the ballance of trade. or> re-cflablijhing the hank. 

When I ufe the words, raifing the 
money, I defire to be underftood 
raifing it in the denomination ; for I 
do not fuppofe it adds to the value. 

There is no way filver can be made 



CONSIDERED, 79 

more valuable, but by leflenlng the 
quantity, or increafing the demand 
for it. if the export and confumption 
of filver be greater than the import, 
or the demand be increafed; filver 
will be of more value, if the quantity 
imported be greater than the quanti- 
ty exported or confumed, or the de- 
mand leflened; filver will be of lefs 
value. 

If raifing or allaying the money 
could add to its value, or have any 
goodeffeft on home or foreign trade ; 
then no nation would want money, 
a ioolib. might beraifed or allayed 
to 2, to 10, to a ioo times the deno- 
mination it had, or more as there were 
occafion. but as 'tis unjufl to raife, or 
allay money ;becaufe, then all con- 
tra&s are payed with a leffer value 



So MONEY AND TRADE 

than was contracted for ; and as it has 
bad effects on home or foreign trade: 
fo no nation praclifes it, that has re- 
gard to juftice, or underftands the na- 
ture of trade and money, if A. B. 
fell 12 chalder of victual for a ioolib. 
payable in 6 months, with which he 
is to pay bills of exchange of that va- 
lue, to be drawn on him then from 
France for wine he has commifllon'd ; 
and in that time the money israifed 
or allayed to double, the ioolib. A. 
B. receives will only pay half the bill 
he has to pay, being only equal to 
50 lib. of the money he contracted 
for. nor will that 100 lib. buy the 
fame quantity of goods of the coun- 
try, that a 100 lib. bought before: it 
will pay where money is due, and 
fatisfie part contracts made upon the 



CONSIDERED. 8l 

faith of the pnblick, becaufe the 
prince fays every man fhall take half 
what is owing him in full payment. 
but in bargains to be made, the value 
of the money will be confidered ; 
goods will rife, tho' perhaps not to 
the proportion the money is raifed ; 
and fuch perfons as do not raife their 
goods, equal to the money, are im- 
pofed on. 

When 6 pence is raifed to 1 2 pence, 
the 6 pence is worth 12 pence ; but 
the value of the pence is lowered to 
half-pence. 

To explain this matter better, I 
fhall fuppofe when money is raifed, 
goods rife, or not. 

If goods rife, then railing the mo- 
ney has not the effecl: defigned. if 
•a piece of ferge is fold for 40 fh. and 
L 



82 MONEY AND TRADE 

the fhillingbe raifed to 1 8 pence, the 
piece of ferge will be fold for 3 lib. 
this adds to the tale of the money ,and 
pays debts with two thirds of what 
is due, but does not add to the mo- 
ney, this is the natural confequence 
ofraifing the money; for, it is not 
the found of the higher denomination, 
but the value of the filver is confide- 
red. 

If, when money is raifed, goods 
keep the prices they had before : then 
all goods exported are fold for a lefler 
value abroad, and all goods imported 
are fold dearer, a half-crown is raif- 
ed to 40 pence, and that half-crown 
buvs the fame quantity of goods 40 
pence bought before ; then the mer- 
chant who fends goods to Holland., 
to the value of 300 lib. which are fold 



CONSIDERED. 83 

for 390 lib. there, would gain 220 lib. 
on the value of 300 lib. exported: be- 
caufe, 390 lib. in Holland, would be 
equal to, or worth by exchange at the 
par, or fentin bullion, 520 lib. in Scot- 
land, that trade would bring no more 
profit to the nation, than when the 
return of the goods yielded only 
390 lib. for, 390 lib. before it was 
raifed, had the fame quantity of filver, 
that 520 lib. rais'd money would have; 
and bought as great a quantity of 
foreign goods, but that trade would 
be fo profitable to the merchant, that 
more people would deal in it than 
could get goods to buy ; and as more 
buyers than fellers would raife the 
prices here, fo one merchant under- 
felling the other would lower the 
prices in Holland, but tho' the prices 
L2 



84 MONEY AND TRADE 

kept low here, and our merchants 
kept up the prices abroad: the Dutch 
knowing the goods were fo cheap in 
the country, would buy none from 
our merchants, but commiflion them 
in return of goods they fent. 

Suppofe the yearly export firft coft 
300000 lib. fold abroad 390000 lib. 
the import, and expence abroad 
410000 lib. and 20000 lib. fent in 
money, to pay the ballance. the mo- 
ney raifed one third, and goods to keep 
the prices they had before, 225000 1. 
fent to Scotland in foreign money, or 
goods, or by exchange, would buy 
what was fold abroad for 3 90000 lib. 
the export, import, and expence a- 
broad continuing the fame, Scotland 
would be due a ballance of 1 85000 lib. 
for, tho' Scots goods were fold under 



CONSIDERED. 85 

the value,yet other nations would not 
fell their goods for lefs than before; 
or than they could have in other 
places. 

It may be alledgcd, we have more 
product and manufacture, than is 
confumed, or exported ; and felling 
cheaper, would occafion a greater de- 
mand for our goods abroad. 

The product and manufacture 
might be much increafed, if we had 
money to imploy the people : but, 
I'm of opinion we have not any great 
quantity of goods, more than what is 
confumed or exported, allow felling 
cheaper would occafion a greater de- 
mand; that the greater demand, 
would occafion an increafe in the pro- 
duct, and manufacture, to the value 
of a 1 00000 lib. and allow that the 



%6 MONEY AND TRADE 

extraordinary chcapnefs of goods, did 
not occafion a greater confumption 
in the country: yet, we would be in 
the fame condition as before ; 20000 1. 
would be ftill due of ballance, and the 
improvement would be given to fo- 
reigners for nothing, but this im- 
provement is imaginary, for tho' the 
demand increafed, yet without more 
money more people could not be im- 
ployed, fo no further improvement 
could be made: we would be forced to 
retrench near one half of the ordinary 
confumption of foreign goods, and 
expence abroad; not having money to 
pay thegreat ballance would be due. 

Some think foreign money being 
raifed, would bring in money to Scot- 
land. 

Tho' the crown were rais'd to 10 s. 



CONSIDERED. 87 

yet if a ballance is due by Scotland, 
the ex^ hange will be above the par, 
and, 'tis not to be fuppofed an Englifh 
merchant will bring crowns to Scot- 
land, when for a 100 payed in at Lon- 
don, he can have 1 05 or 6 of the fame 
crowns payed him at Edinburgh. 

If the ballance of trade was equal, 
foreign money raifed, and Scots mo- 
ney not raifedin proportion ; foreign 
money would be brought in, and a 
greater value of Scots money would 
be carried out. 'tis the fame lofs to a 
country when money is raifed, and 
goods do not rife in proportion: if fo- 
reigners fend in money to buy goods, 
and this money when exported is not 
valued fo high as here ; the return in 
goods will be fo much lefs,befides the 
want of the profit we would have had 
on the export of our goods* 



88 MONEY AND TRADE 

If all import, and foreign expence 
were difcharged, Scotland would then 
befo much richer, as there was bullion 
or money imported: but, if that pro- 
hibition be fuppofed, Scotland would 
be richer by keeping the money at the 
value it has ; becaufe, a greater quan- 
tity would be brought in, to buy the 
fame quantity of goods. 

If we could be fuppofed to be 
without any commerce with other 
nations, a ioo lib. may be allayed and 
raifed to have the fame effect in trade 
as a million: but, if a Granger were 
fuffered to come to Scotland, he might 
purchafe a great part of the land or 
goods with a fmall fum. and a rich 
man here would make a very fmall 
figure abroad. 

Money is the meafure by which 



CONSIDERED. 8iJ 

all goods are valued ; and unlefs goods 
rife to the full proportion the money 
is raifed, the goods are undervalued, 
if the yearly value of Scotland in pro- 
duct and manufacture be 2 millions, 
at 20 years purchafe 40 millions, the 
money a 1 00000 lib. raifing the mo- 
ney 20 per cent, makes it pafs for a 
120000 lib. fuppofe the goods rife 
only 10 per cent, then that a 120000 1. 
is equal in Scotland to a 1 10000 1. 
of the money before it was raifed ; and 
buys the fame quantity of goods, fo, 
an addition is made of 20000 lib. to 
the tale and of 1 0000 lib. to the value 
of Scots or foreign money, compared 
with the value of Scots goods : but the 
meafure by which goods are valued, 
being raifed in the denomination 20 
per cent; and the goods rifing only 10 
M 



90 MONEY AND TRADE 

per cent: Scotland is near 4 million, 
or one tenth lefs valuable than before, 
and any man who fells his eftate, will 
receive a tenth lefs filver, or of any 
other foreign goods for it, than if he 
had fold it before the money was 
raifed. 

France and Holland are given as 
examples of raifing and allaying the 
money, in France the money is high- 
er in the denomination than in other 
countries, but that does not hinder 
the money of France to be exported, 
when the lued'ore was at 1 2 livres, the 
ballance was againft France, exchange 
10 per cent above the par: and a no 
lued'ores at 12 livres were payed then 
at Paris, for a 1 00 lued'ores of the fame 
weight and flnenefs at Amfterdam, 
and pafTing there for o guilders bank 



CONSIDERED. OI 

money; fo 10 per cent was got by 
exporting money from France, when 
the lued'ore was raifed to 14 livres, 
that did not make the ballance againft 
France lefs ;the exchange continued 
the fame, no lued'ores tho' at 14 
livres were payed for a bill of a 100 
at Amfterdam, and the fame profit 
was made by exporting money, if 
the exchange happened to be lower, 
it was from the ballance of trade due 
by France being lefs, and that would 
have lowered the exchange whether 
the money had been raifed or not. but 
the raifing the money, fo far from 
bringing the ballance to the French 
fide, keeps the ballance againft France: 
for, as their goods do not rife to the 
full proportion the money is raifed, 
fo French goods are fold cheaper, 
M 3 



92 MONEY AND TRADE 

and foreign goods are fold dearer, 
which makes the ballance greater, oc- 
cafions a greater export of money, 
fets idle fo many of the people as that 
money employed, lefTens the product 
or manufacture, the yearly value of 
the country, and the number of the 
people. 

'Tis thought the Dutch coin lue- 
d'ores, and fend them to France, 
where they pafs at 14 livres. and, 
that guineas were fent from Holland 
to England, in the time of the dipt 
money ; becaufe they pafr there for 
30s. but thefe people are misinformed, 
ever fince I have known any thing of 
exchange, a lued'ore at Amfterdam 
whether new or old, has been of more 
value by exchange, than a new luc- 
dore at Paris, and in the time of the 



CONSIDERED. 93 

dipt money, a guinea in Holland was 
worth more by exchange, than a 
guinea in England, thefe who were 
ignorant of the exchange, might buy 
up guineas or lued'ores, to carry to 
England or France, but they would 
have got more by bill, there was a 
profit then upon exporting guineas 
and hied' ores from England and 
France to Holland, the pound Eng- 
lifh at that time was given for 8 guil- 
ders, or under; and the exchange 
from Amfterdam to Paris has been 
thefe 8 or 10 years for the mod part, 
confiderably above the par on the 
Dutch fide. I have known the pound 
Englifh at 7 guilders 13 (livers, and 
the French crown of 3 livres bought 
in Holland for 37 (livers, in London 
for 39 pence halfpenny. 



94 MONEY AND TRADE 

Raifing the money in France is 
laying a tax on the people, which 
is (boner payed, and thought to be 
lefs felt than a tax laid on any other 
way. when the King raifes the lued'ore 
from 12 livres to 14, they are taken 
in at the mint for 1 3 livres, and given 
out for 14; fo the King gains a livre 
on the lued'ore, and this tax comes 
to 20 or 25 million of livres, fome- 
times more, according to the quantity 
of money in the country, but fo far 
from adding to the money, it ftops the 
circulation : a part being kept up till 
there is occafion to export it to Hol- 
land, from whence a return is made 
by bill, of a fum of livres equal to the 
fame quantity of new lued'ores that 
were exported of old ones, and 8 or 
10 per cent more, according as the 



CONSIDERED. 95 

exchange is on the Dutch fide, others 
who won't venture to fend the mo- 
ney out, keep it till the new money 
is cryed down, fo fave a 13th part, 
which the King would have got if 
they had carried the money to the 
mint to be recoined. this tax falls 
heavy on the poorer fort of the peo- 
ple. 

'Tis generally thought the Dutch 
money is not worth half what it paffes 
for. but it will prove otherwife when 
examined, the bank by which moft 
payments are made, receive and pay 
in bank money, which is better than 
theEnglifli, ducatdownsareat3 guil- 
ders, and other bank money in pro- 
portion ; and I'm informed the cur- 
rent money has filver in it to the value 
or near, except fome of their fkellings 



J>6 MONEY AND TRADE 

which are worfe than others: the 
making them worfe was not defign'd, 
it was an abufe occafioned by too 
many towns having power to coin: 
which abufe was ftopt fo foon as 
known, and that fpecies cryed down 
to 5 ftivers and a half. 

Some propofe the money may be 
raifed, to give the little we have left 
a better circulation, and to bring out 
hoarded money, the lowering it by 
degrees to take place in 3 or 4 months, 
will have the fame effect ; and other 
good confequences: for, from what 
has been faid, page 54 and 55* there 
isreafon to think, if the money were 
lowered to the Englilh ftandard, ex- 
change would be on our fide, and a 
ballance due us: providing the export, 
the import, and expence abroad con- 
tinued as now. 



CONSIDERED. 97 

There is another argument for 
raifingthemoney,which is, that fome 
goods don't yield profit enough a- 
broad, fo are not exported, if ferges 
worth in Scotland a ioo lib. are 
worth 120 in Holland, the merchant 
won't export them for 20 per cent 
profit : but if the money is raifed 20 
per cent, and goods keep at the prices 
they had before, the fame money that 
bought 100 lib. of ferges, buying now 
to the value of 120 lib. and thefe 
goods being worth in Holland 144 lib: 
that addition to the profit by raifing 
the money, will occafion the export 
of them. 

This is the fame as if a merchant 

who had a 1 00 different forts of goods, 

and was offered 30 per cent profit 

upon 90 of them ; but no body of- 

N 



98 MONEY AND TRADE 

fering above 20 per cent profit for the 
other 10 forts, fhouldadda quarter to 
the meafure by which he meafured 
his goods, and fell all the 100 forts 
for the fame price he fold them before: 
as this merchant would find himfelf 
a confiderable lofer by this expedient, 
fo will a nation who raifes their mo- 
ney. 

For the fame reafon, it would be 
a great lofs to Scotland if all goods 
were allowed to be exported without 
duty ;fome ought to be free of duty, 
and fome not, according to their value 
abroad. 

The true and fafe way to encou- 
rage the export of fuch goods, as do 
not yield great enough profit ; is by a 
draw-back, if ferges fent to Holland 
give only 20 percent profit, 10 per 



CONSIDERED. 99 

cent given as a draw-back will encou- 
rage their export: thedraw-backgiven 
to the merchant is not loft to the 
nation, and what is got by the ma- 
nufacture or export of the goods, is 
gained by the nation. 

A draw-back is the beft method 
yet known for encouraging trade, 
and it may be made appear, that 10 
or 1 5000 apply ed that way, will occa- 
sion an addition to the export to the 
value of a iooooo lib. nor is any part 
of that 10 or 15000 lib. loft to the 
nation; for, if A. B. and C. Scotfmen 
get fuch draw-back, it is the fame 
thing to the nation, as if it had not 
been given, when draw-backs are paid 
out of funds for the fupport of the 
government, little money is applyed 
that way ; becaufe, fo much is taken 
N 2 



IOO MONEY AND TRADE 

from the prince: but, if there was a 
national fund for the encouragement 
of trade, that nation might improve 
trade, and underfell other nations 
that did not follow the fame meafures. 
but this is fuppofing there was money 
in the country to imploy the people. 
Coining the plate were a lofs of 
the fafhion, which may be valued 
one 6th, and would add little to the 
money: the plate at the reftauration 
was inconfiderable, having been cal- 
led in a little before, fince there may 
have been wrought one year with an- 
other about 60 ftone weight; of that 
a great part has been melted down, 
or exported, the remainder won't be 
of great value, what plate has been 
imported belongs to a few men of 
quality, who will fend it out of the 



CONSIDERED. IOI 

country rather than lofe the fafhion ; 
and in that they do a fervice to the 
country, providing they don't fpend 
it abroad, becaufe wrought plate will 
fell for more filver at London, than 
it will melt to here. 

IfYispropofed the money be al- 
layed, and the advantage of the allay 
be given to the owners of the plate, 
fuppofe the new money with allay be 
raifed to double the denomination ; 
5fh. of plate with the fafhion worth 
6 fh. will giveat the mint i o fh. allay'd 
money: but even then the plate will 
not be brought in voluntarily , for that 
plate fold in England, and the value 
brought back by bill, will yield from 
II to 12 fh. exchange being above 
the par, and 6 pence fuppofed to be 



102 MONEY AND TRADE 

got for the fafhion of the ounce of 
plate. 

If itbe necefTary to coin the plate, 
fuch plate fhould be allowed to be 
exported as can be fold abroad for 
more than its weight: fecurity being 
given to import money or bullion to 
the value. 

Some propofea regulation of the 
ballance of trade, by retrenching the 
confumption of foreign goods, and 
expence in England: fo the ballance 
being brought to be on our fide, we 
may become rich by living within our 
yearly value, as we became poor by 
Spending beyond it. 

Such a regulation will have its diffi- 
culties, i. to difcharge all or a great 
part of the import, will lelTen confide* 
rably the revenue of the crown ; and 



CONSIDERED. 103 



hermajeftymaynot think good to give 
the royal aflent to fuch a regulation, 
unlefs an equivalent be given. 2. fuch 
a regulation would not be fo ftriclly 
kept, but a part of what was ufed to 
be imported would be itole in. 3. the 
refidence of our princes being in 
England, we are under a neceffityof 
having a miniftry there: imployments 
being at the difpofal of the prince, 
and London being a place of more 
diverfion than Edinburgh, the gentry 
w r ill continue to go to London for 
places or pleafure. 

But allowing the royal afTent 
were given to fuch a regulation ; ei- 
ther with or without an equivalent; 
and the regulation could be fo ftriclly 
kept, that nothing were imported con- 
trair to that law 5 and allow 20000 lib. 



104 MONEY AND TRADE 

could be faved of the expencein Eng- 
land, fo that the import and expence 
abroad mould be 60000 lib. lefs than 
laft year: yet there are other difficul- 
ties, that I fear will make the regula- 
tion ineffectual. 

1. Suppofe the ballance laft year 
due by us was 20000 lib. the import 
and expence abroad leffened 60000 1. 
thefe who propofe this regulation 
may think a ballance will be due to 
us of 40000 lib. but as the bank may 
have fupplyed us with 60000 lib. 
of notes, more than the money in 
bank: and as 20000 lib. is fuppofed 
to have been exported laft year: fo 
our money being lelTened 80000 lib. 
the next year's export maybe fo much 
lefs valuable, the want of that money 
having fet idle a part of the people 



CONSIDERED. IO5 

were then imployed: and a greater 
ballance be due than laft year, not- 
withstanding of the regulation. 

2. 40000 lib. firft coft of goods 
imported, and 20000 lib. fpent a- 
broad, leffened the confumption of 
the goods of the country ; and the 
export was by fo much greater, as the 
confumption of the goods of the 
country was leffened. but this regu- 
lation occafioning a greater confump- 
tion of the goods of the country, the 
export will be lefs. 

3. Several merchants may have 
exported goods, tho' they had not 
much profit upon the export of them j 
but becaufeofthe profit to be made 
upon theimport; which being lefTen'd, 
may likevvife leffen the export. 

4. If Scotland difcharge or put a 

O 



lo6 MONEY AND TRADE 

very high duty on the goods of other 
nations, other nations may difcharge 
Scots goods. 

Allowing there were no difficul- 
ties in regulating the ballance of trade, 
and that the fame meafures were fol- 
lowed as are followed in Holland ; 
we would grow richer,but their riches 
would increafein the fame proporti- 
on: an d 50 years hence Scotland would 
beaspoorasnow, in comparifon with 
Holland. 

If two countries equal in their 
producT, people, &c. the one with 
a 1 00000 lib. of money, and living 
within its yearly value ; fo that the 
firft year a ballance is due of 20000 1. 
the fecond year of 25000 lib. and fo 
on. the other country with 20 milli- 
ons of money, and confuming more 



CONSIDERED. I07 

than the yearly value; fo that a milli- 
on is fent out to pay the ballance, 
the fecond year 1200000 lib. and fo 
on. this country will be foon poor, 
and the other be foon rich :but if that 
people who has 20 millions of money, 
will retrench in proportion to the o- 
ther ; they will be rich and powerful 
in comparifon with the other. 

Confidering how fmall a fhare 
we have of the money of Europe, 
and how much trade depends on mo- 
ney: it will not be found very practi- 
cable to better our condition, but by 
an addition to our money, or if it is 
practicable without it, it is much more 
fo with it. 

The bank will add little to the 
money ; for as credit is voluntary, it 
depends on the quantity of money in 
O 2 



Ic8 MONEY AND TRADE 

the country, and tho' the bank had 
never failed, yet it could not have kept 
its credit much longer, becanfe, the 
quantity of money in Scotland is not 
fufficient to give a circulation to fuch 
a fum of notes, as will pay the charges 
of the bank, and the intereft to the 
owners. 

'Tis thought the proprietors of 
the bank deflgn to apply to the par- 
liament for further priviledges: but as 
their defign is not yet made publick, 
I (hall only fay in general, that if o- 
ther priviledges are to be given, then 
it is not the fame bank; at leaf! not 
on the fame eftablifhment it was: in 
either of thefe cafes, every perfon 
fhould be allowed to fhare in it. 

When a bank is eftablifh'd every 
perfon may have a fhare, upon the 



CONSIDERED. IO<? 

terms of the act of parliament ; and 
he that offers firft is preferred, fup- 
pofe upon thefettingup of the bank, 
A. B. and C. did not fubfcribe to it, 
becaufe they thought the eftabliih- 
mentnot favourable enough: fo long 
as they who did fubfcribe can fupport 
the bank upon the terms of the acl: of 
parliament, none will pretend to any 
fhare in it; unlefs the fubfcribers are 
pleafed to fell, but if other priviledges 
are given, A. B. and C. as any others 
of the country may defirethe books 
to be opened, that they be allowed 
to fhare in it ; and any other fet of 
men who offer the fame fecurity, may 
at the fame time be allowed to fet up 
a bank with the fame priviledges: fo 
every (hire in Scotland will defire 
one. and if new priviledges are given 



110 MONEY AND TRADE 

to this bank, it were a hardship to 
refufc the fame to others, who are 
able and willing to give the fame 
fecurity, efpecially when the nation 
ftands in need of more money than 
this bank would be allowed to give out. 
chap. v. 

That any meafures propofed for increafing the filver 
money or eflablifhing a credit promifing a payment of 
filver money are ineffectual, that filver money has 
fallen much from the value it had. that land is of grea- 
ter value, that filver may lofe the additional value it 
received from being ufed as money. 

National power and wealth con- 
fiftsin numbers of people, and maga- 
zines of home and foreign goods, 
thefe depend on trade, and trade de- 
pends on money, fo to be powerful 
and wealthy in proportion to other 
nations, we fhould have money in 
proportion with them; for the bell: 



CONSIDERED. Ill 

laws without money cannot employ 
the people, improve the product, or 
advance manufacture and trade* 

The meafures have been ufed to 
preferve and increafe money, or fuch 
as are now propofed, are attended 
with difficulties ; and tho' the diffi- 
culties were removed, are ineffectual, 
and not capable to furnifh money fo 
as to improve the country, or extend 
trade in any proportion to the im- 
provements and trade of other na- 
tions. 

Credit that promifes a payment 
of money, cannot well be extended 
beyond a certain proportion it ought 
to have with the money, and we have 
fo little money, that any credit could 
be given upon it, would be inconsi- 
derable. 



112 MONEY AND TRADE 

It remains to beconfidered, whe- 
ther any other goods than filver, can 
be made money with the famefafety 
and convenience. 

From what has been faid about 
the nature of money, chap. i. it is 
evident, that any other goods which 
have the qualities neceflary in mo- 
ney, may be made money equal to 
their value, with fafety and conveni- 
ence, there was nothing of humour 
or fancy in making filver to be mo- 
ney ; it was made money, becaufe it 
was thought bed qualified for that 
ufe. 

I fhall endeavour to prove, that an- 
other money may be eftablifht, with 
all the qualities neceffary in money 
in a greater degree than filver ; with 
other qualities that filver has not: and 



CONSIDERED. II3 

preferable for that ufe, tho' filver were 
the product of Scotland, and that by 
this money, the people may be em- 
ployed, the country improved, ma- 
nufacture advanced, trade domeftick 
and foreign be carried on, and wealth 
and power attained. 

What I propofe, will I hope be 
found fafe, and practicable ; advanta- 
geous in general to Scotland, and in 
particular to every Scots-man. 

But as I offer to prove, that what 
I fhall propofe is more qualified for 
the ufe of money than filver: fo before 
I come to the propofal, I fhall fhew 
fome defects in filver money ; and 
that it has not, nor does not anfwer 
the defign of money. 

Money is the meafure by which 
goods are yalued, the value by which 
P 



114 MONEY AND TRADE 

goods are exchanged, and in which 
contracts are made payable. 

Money is not a pledge, as fomc call 
it. it's a value payed, or contracted to 
be payed, with which 'tis fuppofed 
the receiver may, as his occafions re- 
quire, buy an equal quantity of the 
fame goods he has fold, or other 
goods equal in value to them : and that 
money is the moft fecure value, either 
to receive, to contract for, or to value 
goods by ; which is leaft liable to a 
change in its value. 

Silver money is more uncertain in 
its value than other goods, fo lefs 
qualified for the ufe of money. 

The power the magiitrate has to 
alter the money in its denomination 
or finenefs, takes away the chief qua- 
lity for which filver was made money. 



CONSIDERED. 115 

in countries where the money is often 
changed in the denomination or 
finenefs, 'tis more uncertain to con- 
tract for money, than it was in the 
ftate of barter to contract for goods, 
if a 100 ounces of fllver are lent, or 
contracted for, and a bond given for 
them denominat pounds, payable in 
a year: in that time half a crown is 
raifed to a crown, and 50 ounces pays 
the 100 lent, or contracted for. 

Tho' themagiftrate did never alter 
the money in its denomination or 
finenefs, yet it is more uncertain in 
its value than other goods. 

Goods of the fame kind and 
quality differ in value, from any 
change in their quantity, or in the de- 
mand for them: in either of thefe 
cafes goods are {aid to be dearer, or 
P 2 



Il6 MONEY AND TRADE 

cheaper, being more or lefs valuable, 
and equal to a greater or leffer quan- 
tity of other goods, or of money. 

Silver in bu Hion or money changes 
its value, from any change in its 
quantity, or in the demand for it: in 
either of thefe cafes goods are faid 
to be dearer, or cheaper; but 'tis fil- 
ver or money is dearer or cheaper, 
being more or lefs valuable, and equal 
to a greater or leffer quantity of goods* 

Perifhable goods as corns, ckc. 
increafe or decreafein quantity as the 
demand for them increafes or de- 
creafes ; fo their value continues e- 
qual or near the fame. 

More durable goods as mettals, 
materials for (hipping, ckc. increafe 
in quantity beyond the demand for 
them, foare lefs valuable. 



CONSIDERED. l\J 

Silver or money increafes in quan- 
tity by fo much as is imported to Eu- 
rope, more than is confumed or ex- 
ported, the demand has encreafed, 
but not in proportion to the quan- 
tity ; for, ift. the fame quantity of 
filver or money, won't purchafe the 
fame quantity of goods as before. 
2dly. 10 per cent was payed for the 
ufeofit ; now 'tis to be had at 6, in 
Holland at 3 or 4. 

An ounce of filver being worth 
5 fh. and 2 pence, and a crown 
worth 60 pence, unlefs altered by 
the prince, makes mod: people in- 
fenfibleof any change in the value of 
filver or money: but as one year the 
boll of barley is fold for 2 crowns, 
and the year after for 3 ; this diffe- 
rence comes from a change in the 



Il8 MONEYANDTRADE 

quantity or demand of the barley, or 
of the money: and that of the money 
will occafion a difference in the price, 
as well as that of the barely. 

If laftyear a ioo fheep were fold 
for a ioo crowns, and the pcrfon 
fold them defires this year to buy the 
fame number of fheep; tho' the quan- 
tity of the fheep, and the demand for 
them be the fame as laft year: yet if 
themoneyisincreafedinquantity,and 
the demand for it not increafed in 
proportion, the ioo fheep will be e- 
qual in value to more money than the 
year before, fo the money is cheaper, 
if the quantity of the money, and 
the demand for it be the fame as be- 
fore ; yet if the fheep are leffer in quan- 
tity, or the demand for them grea- 
ter: the ico fheep will be equal to a 



CONSIDERED. lip 

greater quantity of money, fo the 
fheep are dearer. 

So tho' the magiftrate did never 
alter the money, yet 'tis liable to a 
change in its value as (liver; from 
any change in its quantity, or in the 
demand for it: and the receiver is 
doubly uncertain whether the mo- 
ney he receives or contracts for, will, 
when he has occafion, buy him the 
fame goods he has fold, or other 
goods equal in value to them ; becaufe 
of the difference may happen in the 
value of the money, or the goods 
he is to buy. 

And this uncertainty is, tho' both 
money and goods were certain in their 
quality. 

The difference of the prices of 
moft goods, from changes in their 



120 MONEY AND TRADE 

quantity, or in the demand for them> 
would be much prevented, if maga- 
zines were kept ; but the difference 
in their prices from the greater or 
lefTer quantity of, or demand for mo- 
ney ; cannot be prevented fo long as 
filver is the money. 

That money is of much lefTer va- 
lue than it was ; will appear by the 
value goods, land, and money had 
200 years ago. 

By the afts of the council of E- 
dinburgh, it appears, that anno 1495, 
the fiars for wheat was 6 fh. and 8 
pennies Scots money the boll. 

Anno 1520, claret and white 
French wines were ordered to be fold 
in the taverns at 6 pennies Scots the 
pint, and ale at 20 pennies Scots the 
gallon. 



CONSIDERED. 121 

Anno 1526, the milns belonging 
to the town were lett for4oomerks 
Scots, now they give 13000. 

The petty cuftoms atLeith then 
lett for 1 I5merks. 

Anno 1 532, the load of malt con- 
taining 9 firlots, was ordered to be fold 
at 32 fh. Scots the load. 

Anno 1551, ordered that the beft 
mutton bulk be fold for 12 pennies 
Scots, the2d. fort for 10 pennies, and 
the worft fort for 3 pennies. 

A.nno 1553, the 9 firlots of malt 
old meafure, with the charity, is or- 
dered to be fold for 36 fh. Scots, the 
landwart bread to weigh 40 ounces, 
and thetownbread 36 ounces the 4 
penny or plack loaf. 

Anno 1555, the bakers are orde- 
red for each boll of wheat, to deliver 



122 MONEY AND TRADE 

7fcore loafs, at 16 ounces the loaf. 

By an act of the 5th parliament of 
Queen Mary, anno 1551. 'tis ordain- 
ed, that wines imported upon the eaft 
and north coafr, fhould not be fold 
dearer than 20 lib. Scots the tun of 
Bourdeaux wine, and 16 lib. the tun 
of Rochel wine, the pint of Bour- 
deaux wine 10 pennies, and the pint 
of Rochel wine 8 pennies, and that 
wine imported upon the weft coaft, 
be fold no dearer than 16 lib. Scots 
the tun of Bourdeaux wine, and 12 
or 13 lib. the tun of Rochel wine. 
8 pennies the pint of Bourdeaux wine, 
and 6 pennies the pint of Rochel 
wine. 

So that what 5 lib. bought 200 
years ago, will not be bought now 
for a 1 00 lib. nor were goods in great- 



CONSIDERED. 123 

er plenty, or of lefs value than now: 
on the contrail-, as thefe acls were 
made to regulat the prices of goods, 
'tis reafonable to think they were in 
leffer quantity than now, proportion- 
ed to the demand, fo of more value, 
but money having increafed in quan- 
tity, more than in demand, and ha- 
ving been altered by the prince ; is 
fallen in value: and a 100 lib. now 
is not worth what 5 lib. was worth 
before. 

Land may be computed to have 
been improved in 200 years, that 
what pays now two bolls the acre, 
payed then but one boll: which may 
be known from old rentals. 

Money gave then 10 per cent in- 
tereft, and as 384 acres, rented at a 
boll the acre, victual at 8 fh. and 4 d* 

0.2 



124 MONEY AND TRADE 

the chalder; fo the property of thefe 
acres was equal to, or worth a ioo 1. 
for a ioo lib. gave 10 lib. intereft, 
and the 384 acres payed only fuch a 
quantity of victual, as was fold for 
10 lib. but as land ( being preferable 
to money for many reafons) is valu- 
ed now at 20 years purchafe, tho' 
money is at 6 per cent: fo that land 
then may have been valued 14 years 
purchafe or 140 lib. 

As the quantity of money has in- 
creafed fince that time, much more 
than the demand for it; and as the 
fame quantity of filver has received 
a higher denomination, fo of confe- 
quence money is of leifer value: a 
lefler intereft is given for it: A greater 
quantity of it is given for the fame 
quantity of goods, and the land is 
worth more years purchafe. 



CONSIDERED. I2J 

The value of fuch land now, the 
acre rented at 2 bolls, visual at 8 lib. 
6 ih. and 6 pence, money at 6 percent, 
fo land at 20 years purchafe, would 
be 8000 lib. by this computation 
money is only worth the 20th part 
of goods, and the 57th part of land, 
it was worth 200 years ago. part of 
this difference is from the improve- 
ment made on land, and the greater 
demand for land, the quantity being 
the fame, whereby its value is greater: 
the reft: of the difference is, from the 
money being more encreafed in 
quantity, than in demand, whereby 
its value is leffer, and its ufe lower : as 
likewife from its being altered in the 
denomination. 

There was then a greater quantity 
of filver in the fame number of pence 



126 MONEY AND TRADE 

than there is now: which appears by 
feveral acls of parliament made about 
that time. 

Anno 1475, in the 8 par. of K. 
James the 3. the ounce of filverwas 
ordered to be fold for 12 fh. Scots, 
and 12 groats was made of the ounce 
of filver. 

The 3d. of November 1554, by 
an acl of the town-council of Edin- 
burgh, the ounce of filver was orde- 
red to be fold at 18 fh. and 8 pennies 
Scots; but thefe acts do not menti- 
on the finenefs the filver was of. fup- 
pofe the fame number of pence had 
twice or 4 times the value of filver in 
them that they have now: then filver 
is only fallen to one tenth, or one 
fifth of the value it had to goods ; and 
to one 28th, or one 14 of the value 



CONSIDERED. 1 27 

It had to land, but ftill money is fal- 
len to one 20th of the value it had to 
goods, and to one 57th of the value it 
had to land. 

The manner of lending money in 
France, and I fuppofe in other Roman 
Catholick countries j is by way of 
perpetual intereft, redeemable by the 
debitor, and which the creditor may 
difpone or affign, but can never de- 
mand the principal, and it is ufury 
by law to take any intereft for money, 
if the creditor has power to call for 
the principal, tho' the term of pay- 
ment be many years after the money 
is lent, fuppofe the manner of lend- 
ing in Scotland was the fame 200 years 
ago, and that A. B. having 768 acres 
of land, rented at a boll of victual 
the acre, the yearly rent 48 chalder, at 



128 MONEY AND TRADE 

5 lib. Scots the chalder, 20 lib. fieri. 
C. D. worth a 100 lib. in money, to 
have lent it to A. B. and intered be- 
ing at 1 o per cent, to have received 
an annual intereft of 1 o lib. which he 
left to his fon, and thought he had 
provided fufficiently for him, 10 lib. 
being equal to, or worth 24 chalder of 
victual, but intereft being lowered to 

6 per cent, money being raifed in the 
denomination, and of lefs value by its 
greater quantity : the 6 lib. now paid 
for the annual intereft of that 100 1. 
is not worth one chalder of victual, 
and 384 acres, or the half of A. B's 
land 200 years ago only equal to a 
100, or a 140 lib ; is now worth 57 
times that fum, the rental fuppofed to 
be doubled, and its value at 20 years 
purchafe. 



CONSIDERED. 129 

In France it has been obferved, 
that about 200 years ago, the fame 
land was in 30 years worth double the 
money it was worth before, fo land 
worth a 100 lib. anno 1500, was 
worth 200 lib. anno 1530. 400 lib. 
anno 1560. and [o on, till within 
thefe 50 or 60 years it has continued 
near the fame value. 

In England 20 times the quantity 
of money is given for goods, that was 
given 200 years ago. in thefe coun- 
tries 'tis thought goods have rofe; but 
goods have kept their value, 'tis mo- 
ney has fallen. 

Moil goods have increafed in 
quantity, equal or near as the demand 
for them has increafed ; and are at or 
near the value they had 20oyearsago. 
land is more valuable, by improve- 

R 



I30 MONEY AND TRADE 

ment producing to a greater value, 
and the demand incrcafing, the quan- 
tity being the fame, filver and mo- 
ney are of lefler value, being more 
increafed in quantity, than in de- 
mand. * 

Goods will continue equal in 
quantity as they are now to the de- 
mand, or won't differ much: for the 
increafe of mod goods depends on 
the demand, if the quantity of oats 
be greater than the demand for con- 
fumption and magazines, what is o- 
ver is a drug, fo that product will be 
leffened, and the land imployed to 
fome other uferif by a fcarcity the 
quantity be leffer than the demand, 
that demand will be fupplyed from 
magazines of former years ; or if the 
magazines are not fufficient to anfwer 






CONSIDERED. 131 

the demand, that fcarcity cannot well 
be fuppofed to laft above a year or 
two. 

Land will continue to rife in value, 
being yet capable of improvement ; 
and as the demand increafes, for the 
quantity will be the fame. 

Silver will continue to fall in value, 
as it increafes in quantity, the demand 
not increafing in proportion ; for the 
increafe does not depend on the de- 
mand, mofl: people won't allow them- 
felves to think that filver is cheaper 
or lefs valuable, tho' it appears plain- 
ly, by comparing what quantity of 
goods fuch a weight of fine filver 
bought 200 years ago, and what 
quantity of the fame goods it will 
buy now. if a piece of wine in 
France is equal in value to 20 bolls 
R 2 



132 MONEY AND TRADE 

of oats there, that quantity of oats 
can never be worth more or lefs wine ; 
fo long as the quality, quantity and 
demand of both continues the fame: 
but any difproportioned change in 
their quality, quantity or demand, will 
make the fame quantity of the one, 
be equal to a greater quantity of the 
other, fo if a piece of wine in France, 
is equal to or worth 40 crowns there ; 
it will always continue fo, unlefs fome 
difproportioned change happen in the 
quantity, quality, or demand of the 
wine, or of the monev. 

The reafon is plain, why filver 
hasencreafed more in quantity than 
in demand: the Spaniards bring as 
great quantities into Europe as they 
can get wrought out of the mines, 
for it is dill valued tho' not fo high. 



CONSIDERED. 133 

and tho' none of it come into Britain, 
yet it will be of lefs value in Britain, 
as it is in greater quantity in Europe. 
It may be objected that the de- 
mand for filver is now greater than 
the quantity, it is anfwered: tho' the 
demand is greater than the quantity; 
yet it has not increafed in proportion 
with the quantity. 200 years ago 
money or filver was at 10 per cent, 
now from 6 to 3. if the demand had 
increafed as much as the quantity, 
money would give 10 p. cent as then, 
and be equal to the fame quantity of 
victual, or other goods that have 
kept their value, if A. B. having a 
1000 lib. to lend, fhould offer it at 
10 per. cent, intereit, and defired 
land of 240 chalder of victual rent 
for his fecurity, as was ufed to be 



134 MONEY AND TRADE 

given 200 years ago: tho' no law 
regulate the intereft of money, A.B. 
would find no borrowers on thcfe 
conditions ; becaufe filver having 
increafed more in quantity than in 
demand, and the denomination being 
altered, money is of lefs value, and is 
to be had on eafier terms, if the de- 
mand had encreafed in the fame pro- 
portion with the quantity, and the 
money had not been raifed, the fame 
intereft would be given now as then, 
and the fame quantity of victual to 
pay the intereft ; for money keeping 
its value, 8 fh. and 4 pence would be 
equal to a chalder of victual, as it was 
then. 

If 2000 lib. was laid out on plate 
20oyears ago, it is thought the lofs 
on the plate was only the fafhion, 



CONSIDERED. I35 

and the intereft ; but if the 2000 lib. 
had been laid out on land, the rent 
of that land would be more than the 
value of fuch plate. 

Tho' money or filver is fo much 
fallen from the value it had, yet it's 
given as a value for one half, or two 
thirds more tHan its value as filver, 
abftraci from its ufe as money. 

Suppofe filver to be no more ufed 
as money in Europe, its quantity 
would be the fame,and the demand for 
it much leffer ; which might lower 
it 2 thirds or more j for befides that 
the demand would be lefs, its ufes as 
plate, &c. are not near fo neceflary, 
as that of money. 

Goods given as a value, ought for 
their other ufes to be valuable, equal 
to what they are given for. filver was 



I36 MONEY AND TRADE 

bartered as it was valued for its ufes 
as a metal, and was at firft given as 
money, according to the value it had 
in barter, filver has acquired an ad- 
ditional value fince, that additional 
ufe it was applyed to occafioning a 
greater demand for it ; which value 
people have not been fenfible of, the 
greater quantity making it fall more: 
but it has kept it from falling fo low 
it would have fallen, if it had not 
been ufed as money, and the fame 
quantity had come into Europe. 

'Tis uncertain how long filver 
may keep that additional value: if 
England fet up a money of another 
kind, filver will not fall to one third, 
becaufe ufed in other places as money; 
but the leffer demand, befides the 
ordinary fall from the greater quanti- 



CONSIDERED. 137 

ty coming intoEnrope, would occa- 
fion an extraordinary fall perhaps of 
10 per cent: if the new money then 
in England did not encreafe beyond 
the demand for it, it would keep its 
value, and be equal to fo much more 
filver at home or abroad than it was 
coined for ; as filver would be of lefs 
value, from the ordinary and extraor- 
dinary fall. 

If England changed their money, 
other countries may do the fame, if 
Holland alone kept to filver money, 
the price of filver may be fuppofed to 
fall immediately 50 percent, from the 
lelfer demand for it as money, and a 
100 lib. in Holland be worth no more 
than 50 lib. new money in England, 
whether fent in fpecie or remitted by 
exchange ; and as more filver camein- 
S 



I38 MONEY AND TRADE 

to Europe, it would fall yet lower, 
becaufe ofits greater quantity. 

It may be obje&ed, that in Scot- 
land the quantity of goods are pro- 
portioned to the demand as they have 
been fome years ago ; and money 
fcarcer, the demand for it the fame 
or greater, fo if goods and money 
are higher or lower in value, from 
their greater or lefTer quantity in pro- 
portion to the demand for them ; 
money fhouldby its great fcarcity be 
more valuable, and equal to a greater 
quantity of goods, yet goods differ 
little in price, from what they were 
when money was in greater quantity. 

To this it's anfwered, the value 
of goods or money differs, as the 
quantity of them or demand for them 
changes in Europe; not as they 



CONSIDERED. 139 

change in any particular country, 
goods in Scotland are at or near the 
fame value with goods in England, 
being near the fame in quantity in 
proportion to the demand as there : 
money in Scotland is not above one 
40th part of the money in England, 
proportioned to the people, land, or 
product; nor above a 10th part pro- 
portioned to the demand, if Scotland 
was incapable of any commerce 
with other countries, and in the ftate 
it is now, money here would buy 10 
times the quantity of goods it does in 
England, or more : but as Scotland 
has commerce with other countries, 
tho' money were much fcarcer than 
now, or in much greater quantity 
than in England ; if there were but 
10000 lib. in Scotland, or a million, 
S 2 



I40 MONEY AND TRADE 

the value of goods would not differ 
above 30 per cent, from what they 
were abroad, becaufe for that diffe- 
rence goods may be exported, or im- 
ported, prohibitions may raife the 
difference higher. 

Brittannia languens and others 
on trade and money, are of opinion 
that goods in any country fall in value, 
as money in that particular country 
grows fcarcer. that, if there was no 
more than 500 lib. in England, the 
yearly rent of England would not 
exceed 500 lib. and an ox would be 
fold for a penny, which opinion is 
wrong, for as the ox might be expor- 
ted to Holland, it would give a price 
in England equal or near to that it 
would give in Holland : if money 
were fuppofed to be equally fcarce in 



CONSIDERED, 141 

Holland, and other places as in Eng- 
land, the ox might give no more than 
a penny, but that penny would have 
a value then equal to 5 lib. now; 
becaufe it would purchafe the fame 
quantity of goods in England or 
other places, that 5 lib. does now. 

The fame anfwer may be given to 
thefe who think an addition to the 
money of any particular country 
would undervalue it fo, that the fame 
quantity of goods would coit double 
the money as before. 

If the money and credit current 
in England be 15 millions, Scotland 
reckoned as 1 to 10, the money in 
Scotland encreafed to a million and a 
half, the demand in proportion to 
the demand in England ; that additi- 
on to the money of Scotland, would 



I42 MONEY AND TRADE 

not make money of lefs value here, 
than it is now in England, goods 
in Scotland would fell as they fell in 
England, the product of the country 
would perhaps be 10 or 20 per cent 
dearer, to bring it equal to what it 
fells in England ; but all forts of ma- 
nufacture would be cheaper, becaufe 
in greater quantity: and all goods im- 
ported would be cheaper, money be- 
ing eafier borrowed, merchants would 
deal for a greater value, and men of 
eftates would be capacitate to trade, 
and able to fell at lefs profit, nor 
would land rife higher than in Eng- 
land, the buyer having in his choice 
to buy elfewhere ; the better fecurity 
of a regifter may be fuppofed to add 
a year's purchafe or two to the value. 
If the money of any particular 



CONSIDERED, I43 

country fhould encreafe beyond the 
proportion that country bears to Eu- 
rope ; it would undervalue money 
there, or, according to the way of 
fpeaking, it would raife goods: but 
as money would be undervalued every 
where the fame, or near to what it 
were there ; it would be of great ad- 
vantage to that country, tho' thereby 
money were lefs valuable: for that 
country would have the whole benefit 
f the greater quantity, and only bear 
a (hare of the leffer value, according 
to the proportion its money had to 
the money of Europe, when the 
Spaniards bring money or bullion in- 
to Europe, they leffen its value, but 
gain by bringing it ; becaufe they have 
the whole benefit of the greater quan- 
tity, and only bear a fliare of thelef- 
fer value. 



144 MONEY AND TRADE 

What has been faid, proves, ift. 
that filver money is an uncertain va- 
lue ; becaufe lyable to be altered in 
the finenefs or denomination by the 
the prince. A crown has no more 
filver in it than half a crown or 15 
pence had a 150 or 200 years ago. 

2dly. That as filver it has fallen 
from the value it had, the fame quan- 
tity not being worth thejthonoth 
part of what it was worth then. 
A moneyed man then worth a 
1000 lib. was richer at that time than 
a landed man of 240 chalder of victual 
rent: but a man of fuch a money 
eftate, would not now be worth one 
50th part of fuch a land eftate. 

3<Jly, That tho' fallen fo much, 
yet it is given as money or fold as bul- 
lion, for much more than its value as 



CONSIDERED. I45 

a metal ; to which it will be reduced, 
fo foon as another money is fet up. 

Confidering the prefent ftate of 
Europe, France and Spain being ma- 
ilers of the mines, the other unions 
fcem to be under a neceflity of fetting 
up another money, the only reafon can 
be given why it has not yet been done, 
is, that the nature of money has not 
been rightly underflood : or they 
would not have continued buying fil- 
ver from Spain above its value as a me- 
tal, when they had a more valuable 
money of their own; and every way 
more fitted for that ufe. 

The receiver of filver can have no 
great hopes that the value of it will be 
greater; for 'tis not to be fuppofed it 
will be apply'd to any other ufes, than 
it is now apply'd to, whereby the de- 
T 



I46 MONEY AND TRADE 

mand for it may be encreas'd : or that 
the quantity exported and confum'd, 
will be greater than the quantity im- 
ported. 

Tho' it be fcarce in any particular 
country, yet the money'd men will 
have no great benefit by fuch fcarci- 
ty, as has been mown : for unlefs the 
fcarcity is the fame in all places with 
which that country trades, money 
will not be valued much higher there 
than in other countries. 

If it is alledged the mines in the 
Weft Indies may fail, 'tis the intereft 
of the Spaniards to give out that their 
mines begin to fail, to keep up the 
price of filver ; but if that were true, 
France ought not to have engaged her 
felf in a war, when by the partition 
treaty fhe could have got any other 



CONSIDERED. I47 

parts of that monarchy that are va- 
luable, allowing the mines do fail, we 
ought the rather to provide ourfelves 
with another money. 

CHAP. VI. 

The propofal given in to Parliament by Dr. H. C. ex- 
amined. 

I did not intend to have faid any 
thing about the Dr's propofal, that 
affair having been referr'd to a com- 
mittee, who are to make their report, 
but feveral people who are of opinion 
that the Dr's propofal is not practi- 
cable, being againft what I am to 
propofe, becaufe they think 'tis the 
fame with his in fome other drefs : I 
thought it needful to give a fhort ac- 
count of the Dr's propofal, and in 
what I differ from him. 

His propofal is to give out notes 
T 2 



I48 MONEY AND TRADE 

upon land, to becancelfd by yearly 
payments of about 2 and a quarter 
per cent, for 45 years, and that thefe 
notes be current as filver money, to 
the value they are coin'd for. 

If notes given out after that man- 
ner, were equal in value to filver mo- 
ney ; then every landed man in Scot- 
land, would defire a fhare of this great 
and certain advantage: and I don't 
fee how it is practicable to give every 
landed man a fhare. 

Suppofing it practicable, 45 years 
purchafe in thefe notes, will not be of 
fomuch value, as 20 years purchafe 
of filver money. 

No anticipation is equal to what 
already is. a years rent now is worth 
1 5 years rent 50 years hence, becaufe 
that money let out at intereft, by that 



CONSIDERED. 149 

time will produce fo much, and tho' 
the parliament would force thefc 
notes, yet they would not have cur- 
rency, any more than if the govern- 
ment coin'd pieces of gold equal in 
weight and finenefs, with a guinea, 
and ordered them to pafs for 5 lib. 

Thefe bills are propos'd to be re- 
pay'd and cancell'd in a term of years, 
without paying any intereft, but only 
fomuch as would defray the charges 
of the office, which would not be 
above one half per cent. 

There would then be many len- 
ders, but few if any borrowers, except 
from the land bank : for as 'tis the lan- 
ded man borrows of the money'd man, 
he would fatisfie his creditor,and have 
bills to lend, the money'd man would 
likewife have of thefe bills to lend, 



I3'C MONEY AND TRADE 

but there would be no borrowers \ or 
if any defired to borrow, they would 
have thefe bills at a very low ufe. fup- 
pofe at 2 per cent, then thefe bills 
would be confiderably lefs valuable 
than filver. 

Any thing that is propos'd to have 
a currency as money, and is given for 
a leffer intereft than filver money, will 
be of lefs value. 

It is not to be fuppos'd any perfon 
will lend filver money at 2 per cent, 
when they can have 6 per cent in 
England, fo a 100 lib. filver money, 
will yield as much as 300 lib. of thefe 
bills would : and 100 lib. in filver, will 
be equal to 300 lib. in bills, the 6 lib. 
the ioo lib. of filver yields, being fil- 
ver, and the 6 lib. the 300 of bills 
yields, being payed in thefe bills : and 



CONSIDERED. 151 

I lib. filver, being worth 3 lib. in bills ; 
fo the 6 lib. intereftof the 100 lib. in 
filver, would be equal to 1 8 lib. or the 
intereft of 900 lib. in bills. 

And tho' they were given out to be 
repay'd in 20 years, at 5 per cent for 
that time ; or in 10 years, at 10 per 
cent : they would not be equally va- 
luable with filver. the difference would 
not be fo great, as when given out for 
45 years. 

The advantage the nation would 
have by the Dr's propofal is ; that tho' 
thefe notes fell under the value of fil- 
ver money, and 500 lib. in notes were 
only equal to a 100 lib. in filver; yet 
the nation would have the fame ad- 
vantage by that 500 lib. in notes, as 
if an addition of a 100 lib. had been 
made to the filver mone 



IJ2 MONEY AND TRADE 

So far as thefe bills fell under the va- 
lue of the filver money, fo far would 
exchange with other countries be 
rais'd. and if goods did not keep their 
price, ( i. e. ) if they did not fell for a 
greater quantity of thefe bills, equal 
to the difference betwixt them and fil- 
ver : goods exported would be under- 
valued, and goods imported would 
be overvalued, as has been explain'd 
page 43 and 44 about exchange. 

The landed-man would have no ad- 
vantage by this propofal, unlefs he 
owed debt: for tho' he received 50 lib. 
of thefe bills, for the fame quantity of 
victual he w r as in ufe to receive, 10 lib. 
filver money ; yet that 50 lib. would 
only be equal in value to 10 lib. of fil- 
ver, and purchafe only the fame quan- 
tity of home or foreign goods. 



CONSIDERED. I53 

The landed-man who had his rent 
pay'd him in money, would beagreat 
lofer. for by as much as thefe bills 
were under the value of filver, he 
would receive fo much lefs than be- 
fore. 

The landed-man who owed debt, 
would pay his debt with a lefs value 
than was contracted for : but the cre- 
ditor would lofe what the debtor 
gain'd. 

Dr. C. feems to be offended at my 
meddling in this affair, having, as 
he fays, borrow'd what I know of 
this fubject from him. Two perfons 
may project the fame thing, but fo 
far as I can judge, what I am to pro- 
pofeis different from his, and what I 
had form'd a fchemeoffeveral years 
before I had feen any of his papers : 
U 



154 MONEY AND TRADE 

which I can prove,if that were neceffa- 
ry,by perfonsof worth I then fhow'd 
it to. I have not, to my knowledge, 
borrowed any thing from Dr. C. land 
indeed is the value upon which he 
founds his propofal.and'tis upon land 
that I found mine:if for that reafon I 
haveincroacheduponhispropofaljthe 
bank of Scotland may be faid to have 
done the fame: there were banks in 
Europe long before the Dr's propofal, 
and books have been writ on the fub- 
je<ft before and fince. the foundation 
I go upon has been known [o long as 
money has been lent on land, and fo 
long as an heretable bond has been 
equal to a quantity of land, whether 
the ftruclnre he or I have built upon 
that foundation be moft fafe, advanta- 



CONSIDERED. 155 

gcous and practicable, the parliament 
can beft judge. 

Dr. C's propofal is by anticipati- 
on, to make land worth 50 or a 100 
years purchafe; and maintains that a 
100 lib to be payed yearly for 10, 50, 
or a 1 00 y ears,is a valuable pledge for a 
1 000, 5000, or a 1 0000 1. of bills : and 
that thefe bills will be equal to filver- 
money. if he can fatisfie the nation 
that his propofal is practicable, he does 
a very great fervice, and gives a certain 
advantage to the landed-man,without 
wronging the money 'd-man. I have 
fhown the reafons why I think the 
propofal is not practicable ; and that 
notwithftanding any aft of parliament 
made to force thefe bills, they would 
fall much under the value of filver. but 
allowing they were at firft equal to fil- 
U 2 



I56 MONEY AND TRADE 

ver, it is next to impoffible that two 
different fpecies of money, fhall con- 
tinue equal in value to one another. 

Every thing receives a value from 
its ufe, and the value is rated, accor- 
ding to its quality, quantity and de- 
mand, tho' goods of different kinds 
are equal in value now, yet they will 
change their value, from any unequal 
change in their quality, quantity, or 
demand. 

And as he leaves it to choice of 
the debtor, to pay in filver-money or 
bills ; he confines the value of the bills, 
to the value of the filver-money, but 
cannot confine the value of the filver- 
money to the value of the bills : fo 
that thefe bills muft fall in value as fil- 
ver-money falls, and may fall lower : 
CJver may rife above the value of thefe 



CONSIDERED. I57 

bills, but thefe bills cannot rife above 
the value of filver. 

What 1 (hall propofe, is to make 
money of land equal to its value; and 
that money to be equal in value to fil- 
ver-money ; and not lyable to fall in 
value as filver-money falls. 

Any goods that have the qualities 
neceflary in money, may be made mo- 
ney equal to their value. 5 ounces of 
gold is equal in value to 20 lib. and 
may be made money to that value, an 
acre of land rented at 2 bolls of 
victual, the victual at 8 lib. and land at 
20 years purchafe, is equal to 20 lib. 
and may be made money equal to that 
value, for it, has all the qualities ne- 
ceflary in money, but that acre of land 
cannot be coin'd to the value of 50 
lib. no more than the 5 ounces of gold. 



IjS MONEY AND TRADE 

and tho' the5 ounces of gold,the 20 L 
filver-money and the acre of land, be 
now equal in value; yet they cannot 
well continue fo : for as I have fhown 
already, any difproportion'd change 
in the quality, quantity, or in the de- 
mand of either of them,will make the 
fame quantity of the one, equal to a 
greater or leffer quantity of the o- 
thers. land is what in all appearance 
will keep its value beft, it may rife in 
value, but cannot well fall :gold or fil- 
ver are lyable to many accidents, 
whereby their value may lefTen ; but 
cannot well rife in value. 

chap. VII. 

The propofal with reafins-for it. 

To fupply the nation with money, 
it is humbly propos'd, that 40 com- 
miffioners be appointed by parlia- 



CONSIDERED. 150 

inent, anfwerable to parliament for 
their adminiftration, and the adminis- 
tration of the officers under them : the 
nomination of thefe officers being left 
to the commiffioners. 

That the commiffioners have pow- 
er to coin notes: which notes to be re- 
ceived inpayments, where offer'd. 

That a committee of parliament be 
appointed to infpect the management, 
and that none of the commiffioners 
be members. 

That the commiffion and commit- 
tee meet twice a year at Whifunday 
and Martinmafs 5 their meetings, to 
begin 1 o days before, and to continue 
10 days after each term. 

There are three ways humbly of- 
fer'd to the parliament, for giving out 



l6o MONEY AND TRADE 

thefe notes : they in their wifdom may 
determine which will be moft fafe. 

i . To authorize the commiflion to 
lend notes on land fecurity, the debt 
not exceeding one half, or two thirds 
of the value : and at the ordinary in- 
tereft. 

2. To give out the full price of land, 
as it is valued, 20 years purchafe more 
or lefs, according to what it would 
have given in filver-money, the com- 
miflion entring into poffeffion of fuch 
lands, by wadfet granted to the com- 
miflion or afllgneys j and redeemable 
betwixt and the expiring of a term of 
years. 

3. To give the full price of land, 
upon fale made of fuch lands, and dis- 
poned to the commiflion or afligneys 
irredeemably. 



CONSIDERED. l6l 

That any perfon fliall have fuch 
bonds, wadfets, or eflates afligned or 
difpon'd to them, upon paying in the 
value to the commiffion. 

That the commiffion don't receive 
other money than thefe notes. 

That no perfon who has contrac- 
ted for thefe notes, fhall be obliged 
to receive filver or metal money. 

That the commiffion have not 
power to coin more than 50000 lib. at 
a time, and that no more be coin'd fo 
long as there is 25000 lib. remaining 
in the office. 

That for a year and a half the com- 
miffion be limited to a certain fum, af- 
ter that time to have power to coin 
what funis are demanded : unlefs re- 
flected by enfuing parliaments. 

That thefe who defire to have mo- 

x 



l6z MONEY AND TRADE 

ney from the commiffion, give in a 
note to the lawyers for the commiffi- 
on, a month before the term, of what 
funis they want, with therightsof the 
lands they offer in pledge: and that 
thefe who have notes to pay in to the 
commiffion, give warning 10 days be- 
fore the term. 

That the (tateof the commiffion, 
thefum of notes coin'd, the debt and 
credit, with the highcft number of 
the different notes, be publifh'd every 
term. 

That any perfon who fhall difco- 
ver2 notes of the fame number, or of 
a higher number than thefe publifh'd, 
fhall have a ioo lib. reward. 

Thattheunder-officersbeintrufted 
with the fum of 20000 lib. to change 
notes with; and that they attend the 
whole year. 



CONSIDERED. 163 

That any member of parliament 
may infpecl the (late of the commifli- 
on. 

That no notes be coined, money 
lent, or rights affigned by the commif- 
fion, but at the terms of Whitfunday 
and Martinmafs : and in prefence of at 
leaft 20 commiffioners, and one third 
of the committee. 

That the revenue of the commif- 
fion, over what pays the charges, and 
what part the parliament thinks 
needful to make good any loffes may 
happen to the commiilion, be apply- 
ed by way of drawback, for encou- 
raging the export, and manufacture 
of the nation. 

That paper-money do not rife 
more than 10 per cent above filver- 
money ; fo that he who contracts to 
X 2 



I<$4 MONEY AND TRADE 

pay in paper, may know what he is 
to pay in cafe he cannot get paper- 
money. 

The paliament may enter into a 
refolve, that the next feflions of this 
or the next enfuing parliament, the 
frate of the commiffion be taken into 
confideration, preferable to all other 
bufinefs: and if found hurtful to the 
country, the parliament may dif- 
charge any more notes to be given 
Out, and order what notes are then 
out to be called in. 

That after 3 months from the 
date of the aft, Scots and foreign mo- 
ney be reduced to the Englifh ftand- 
ard. the Englifti crown to 60 pence, 
and the other money in proportion 
to its value of filver. the 40 pence to 
38 pence, the new mark to 13 pence 



CONSIDERED. 165 

J, the old mark to its weight, the du- 
catdowns to 68 pence, dollars to 
their weight, guineas not topafs 22 fh. 

That after 4 months no Scots mo- 
ney, (except what fhall be coined af- 
ter the act) nor any foreign money 
except the Englifh money, be receiv- 
ed in any payments, or be fold as bul- 
lion but at the mint. 

That for what old money or bul- 
lion is brought to the mint, the mint 
return to the full value in new mo- 
ney of 12 pence, 6 pence, and 3 
pence pieces ; of eleven deniers fine, 
the 12 pence of 3 drops 3 grains 
weight, the other pieces to weigh in 
proportion : the expence of coinage 
to be payed out of the funds appro- 
priated to that ufe. 

That for 3 months, after the acl, 



J 66 MONEY AND TRADE 

the new money pafs for 13 pence, 
6 pence half-penny, and 3 pence*. 

That after 3 months, bullion and 
wrought plate be of eleven deniers 
fine, and 5 fh. and 2 d. the ounce of 
filver, gold not to pafs 4 lib. 

The paper-money propofed will 
be equal in value to filver, for it will 
have a value of land pledg'd equal to 
the fame fum of filver-money that 
it is given out for. if any lofles fhould 
happen, one 4th of the revenue of 
the commiflion, will in all appea- 
rance be more than fufficient to make 
them good. 

This paper-money will not fall in 
value as filver-money has fallen, or 
may fall : goods or money fall in va- 
lue, if the increafein quantity, or if 
the demand leffens. but the commit- 



CONSIDERED. I 67 

Hon giving out what fums are demand- 
ed, and taking back what fums are 
offered to be returned ; this paper- 
money will be keep its value, and 
there w r ill always be as much money 
as there is occafion, or imployment 
for, and no more. 

If a contract for paper-money could 
be fatisfied by paying the fame quan- 
tity of filver money, then that paper- 
money could not rife above the value 
of filver, and would fall with it. but 
as the paper money is a different 
fpecies from filver, fo it will not be 
lyable to any of the changes filver 
money is lyable to. 

Tho' the parliament could give 
filver money to the people, in as 
great quantity as there were occafi- 
on: the parliament could not juftly 



l68 MONEY AND TRADE 

know what fum would ferve the 
country, for the demand changes, if 
the quantity of money is lefs than 
the demand, the landed man is wron- 
ged : for a ioo lib. then being more 
valuable, will buy a greater quantity 
of the landed mans goods, if the 
quantity of money is greater than the 
demand, the money'd-man is wron- 
ged, for a ioolib. then is not fo va- 
luable, fo will not buy the fame quan- 
tity of goods a i oo lib. bought before. 
If the commiffion do not give out 
money when it is demanded, where 
good fecurity is offer'd ; 'tis a hard- 
ship on theperfon who is refufed, and 
a lofs to the country : for few if any 
borrow money to keep by them ; and 
if employ 'd it brings a profit to the 
nation, tho' the employer lofes. 



CONSIDERED. I 69 

If the commiilion did not take back 
what funis were offer'd to be return'd, 
it were a hardfhip on the money'd 
man, who has a funi payed him, and 
does not know how to employ it ; and 
the quantity being greater than the de- 
mand for it, would fall in value. 

After the method propos'd, the 
quantity being always equal to the de- 
mand for it, it will keep its value, and 
buy the fame quantity of goods 50 
years hence, as now: unlefs the goods 
alter in their value, from any change 
in their quantity, or in the demand for 
them. 

Suppofe this comrniffion had been 
eftablifht 200 years ago, land then at 
14 years purchafe, money at 10 per 
cent, viclualat 8fhil. and 4 pence the 
chalder, and paper money to have been 
Y 



I70 MONEY AND TRADE 

given out upon land ; 8 fliil. and 4 
pence of that paper money, would 
now have been equal to a chalder of 
victual, and to 8 lib. 6 fh. and 4 pence 
filver-money : becaufe filver-money 
having increas'd in quantity, more 
than the demand; and having been al- 
tered in the denomination, has fallen 
to one 20th of the value it had then, 
nor would the landed man have re- 
ceiv'd lefs for his victual, than now; 
for that paper-money would have 
bought him 20 times the quantity of 
goods, filver-money will buy. 

Land has amore certain value than 
other goods, for it does not encreafe 
in quantity, all other goods may. the 
ufesofgoodsmaybedifcharged, or by 
cuftom be taken from them, and given 
to other goods : the ufe of bread may 



CONSIDERED. I7I 

be taken from oats, and wholly given 
to wheat: the ufe of money may be 
taken from filver, and given to land: 
the ufe of plate, and the other ufes of 
filver as a metal, may be taken from 
filver, and given to fome other metal, 
. or fome mixture that may be more fit- 
ted for thefe ufes. in any of thefe cafes, 
thefe goods lofe a part of their value, 
proportionate the ufes are taken from 
them : but land cannot lofe any of its 
ufes. for as every thing is produced by 
land, fo the land muft keep its value, 
becaufe it can be turn'd to produce 
the goods that are in ufe. if wheat is 
more us'd, and oats lefs, as the land 
can produce both, it will be turn'd to 
produce what is mod: ufed, becaufe 
moil: valuable. 
This money will not receive any ad- 
Y 2 



172 MONEY AND TRADE 

ditional value from being ufed as mo- 
ney, fo the receiver will be certain he 
can be no lofer, tho' after a term of 
years the ufe of money is taken from 
it. the land will receive an additional 
value, from being ufed as the pledge 
upon which the money is iffued ; 
and that additional value would be 
greater than what filver received :be- 
caufe, tho' land be ufed as the pledge 
to ilfue out money upon, yet none of 
its other ufes would be taken from it: 
filver cannot be us'd as money and 
plate at the fame time, but as land is 
in greater quantity than there will be 
occafion for to give out money upon ; 
fo the additional value it receives, will 
not be near fo great as that filver-mo- 
neyhasreceiv'd. 

Suppofe the additional value land 






CONSIDERED. I73 

received were one 4th, land now at 20 
years purchafe, would then be at 25 
years purchafe. if the parliament call'd 
in the paper money, he who had pa- 
per money could be no lofer by it, 
tho' the land loft the additional value ; 
for no more of it is given out than the 
value of the land abftraft from its ufe 
as money, whereas if filver was no 
more ufed as money, he who had fil- 
ver, would lofe a half, or 2 thirds; fil- 
ver falling then to its value as a metal. 
So that this paper money propos'd, 
having a better value than filver ; and 
receiving no addition to its value, from 
being ufed as money ; and not being 
lyable to any change in its value, 
the quantity and demand encreafing 
anddecreafing together : it is fo far 
more qualified to be the meafure by 



174 MONEY AND TRADE 

which goods are valued, the value by 
which goods are exchanged, and in 
which contracts are made payable. 

The other qualities neceflary in 
money, are, 

i.Eafy of delivery. 

2. Of the fame value in one place to 
what it is in another. 

3. To be kept without lofs or ex- 
pence. 

4. To be divided without lofs. 

5. To be capable of a (lamp. 
Paper money has thefe qualities in 

a greater degree than filver. 

1. It is eafier of delivery: 500 lib. 
in paper may be payed in lefs time, 
than 5 lib. in filver. 

2. It is nearer the value in one place 
to v/hat it is in another, being of eafier 



carriage. 



CONSIDERED. 175 

3. It can be eafier kept; taking up 
lefs room, and without lofs ; becaufe 
it may be exchanged at the office, the 
confumption of paper is not of fo 
much value as the confumption of (li- 
ver, the confumption of the paper is 
a lofs to the office, the confumption 
of filver is a lofs to the owner. 

4. It can be divided without lofs : 
becaufe it may be changed for leffer 
notes at the office. 

5. It is capable of a ftamp, and lefs 
liable to be counterfeit. 

The practice of more trading nati- 
ons confirms, that paper is more qua- 
lified for the ufe of money, than fil- 
ver ; providing it hath a value, in Hol- 
land filver is pledg'd, and paper is ufed 
as money, that land pledg'd is a better 
value than filver pledg'd, is evident 



I76 MONEY AND TRADE 

from what has been faid. in England, 
before the bank was fet up, gold- 
fmiths notes were received in pay- 
ments preferable to gold or filver: 
which mows that paper money had all 
the qualities necelfary in money, fo 
much more than gold or filver, as to 
equal the danger of a gold-fmith's 
breaking, of which there were many 
examples. Mr. Lock, pag. 7th on in- 
tereft of money, fays, that one gold- 
fmith's credit (being ufually a note 
under one of his fervants hands) went 
for above eleven hundred thoufand 
pounds at a time. 

The notes of the bank in Scotland 
went, tho' there was no money in the 
bank, and tho' their acceptance was 
voluntary, the fecurity for the paper 
propos'd will be as good, the adminif- 



CONSIDERED. 177 

tration may be more fafe and fatisfac- 
tory than that bank, or any other pri- 
vate bank; becaufeitis more public, 
and the commiffion has not any fhare 
of the profits, befides it will not be 
liable to the hazard banks are liable to, 
from the fale of fhares. 

And it feems ftrange that the admi- 
niftration of fuch a commiffion fliould 
be doubted, when the parliament has 
the nomination of the managers ; 
when the managers are to be accoun- 
table to the parliament; when the truft 
is to be fo fmall, for more notes cannot 
be coin'dfolong as 25000 lib. is in the 
office; a committee of parliament is to 
be appointed to infpedt the manage- 
ment, the books are to be open to the 
infpeclion of any member of parlia- 
ment, and the ftate of the commiffi- 
on is to be publifhed in print. 
Z 



173 MONEY AND TRADE 

Since the notes of the bank went 
upon a voluntary acceptance, tho' 
there was no money in bank ; 'tis rea- 
fonable to think the paper money pro- 
pos'd will at leaft have the fame cur- 
rency : being current by law does not 
make it lefs valuable, he who took 
bank notes,could not be fure the bank 
would be in a condition to give mo- 
ney for them ; and the perfon he was 
to pay money to, might refufe them : 
fo he was more uncertain, than if they 
had been current by law. 

The filver money being to fall be- 
twixt 8 and 9 per cent in 3 months, 
it is not to be fuppos'd that filver will 
be prefer'd to paper money ; fince 
the notes of the bank, which is paper 
upon the fame fund, went at the ordi- 
nary intereft: and tho' the receiver 
was not certain of the money at the 



CONSIDERED. I79 

time it was promifed, or that the per- 
fon he was owing to would receive it. 

It may be objected, that paper went 
becaufe filver could be got for it when 
demanded, or at a certain time. 

That was very reafonable, but 
would not be fo in this cafe : the fecu- 
rity pledg'd for that paper money,was 
filver. the fecurity pledg'd for this pa- 
per money, is land, this money has no 
relation to gold or filver, more than 
to other goods, and it were more extra- 
vagant to fay, I won't take a 100 lib. 
of fuch paper money for the goods I 
fell,becaufe I am not fure if 6 months 
hence it will buy me fuch a quantity 
of filver ; for filver may grow dearer: 
as it would be to fay now, I won't take 
a 1 00 lib. in filver for the goods I fell ; 
becaufe I am not fure if 6 months 
Z 2 



l8o MONEY AND TRADE 
hence, it will buy me fuch a quantity 
of wine, for wine may grow dearer. 

4 Crowns won't buy a guinea, tho' 
they were coin'd for the fame value ; 
nor won't buy the ioth part of goods 
4 crowns bought 200 years ago, yet 
filver is received as a value, and con- 
tracted for, tho' its value leffens every 
year, and tho' 'tis not perhaps worth 
above a third of what 'tis given or con- 
tracted for, abftraft from the ufe of 
money, this paper propos'd will not 
only keep its value ; the encreafe of 
the quantity depending on the de- 
mand, and the quantity decreafmg as 
the demand decreafes : but likewife 
the land pledg'd is as valuable as the 
paper given out, abftratt from its ufe 
as money, and encreafes in value. 

The objection may bemadeagainfi: 



CONSIDERED. l8l 

filver money, and with good reafon ; 
for it falls fatter in its value than other 
goods, and may foon be reduced to its 
value as a metal. 

The paper money propos'd is equal 
to its felf ; but to continue equal to 
fuch a quantity of any other goods, is 
to have a quality that no goods can 
have : for that depends on the changes 
in thefe other goods.it has a better and 
more certain value than filver money, 
and all the other qualities neceffary in 
money in a much greater degree, with 
other qualities that filver has not, and 
is more capable of being made money 
than any thing yet known, land is 
what is mod: valuable, and what en- 
creafes in value more than other 
goods ; fo the paper money iiTued 
from it, will in all appearance not on- 



l82 MONEY AND TRADE 

ly keep equal to other goods,but rife 

above them. 

Becaufe of the extraordinary fear- 
city of filver in Scotland, and the in- 
clination people have to it, from its 
having been long ufed as money; it 
may be neceffary to reftricl: its price to 
5 fh. and 2 pence the ounce: but it 
will foon fall from that value of paper, 
ifitcomein greater quantity into Eu- 
rope, than is exported orconfum'd. 

Suppofe an ifland belonging to one 
man, the number of tenents a 100, 
each tenent 10 in family, in all a 
1000 ; by thefe the ifland is labour'd, 
part to the product of corns, the reft 
for pafturage : befides the tenents and 
their families, there are 300 poor or 
idle, who live by charity, there is no 
money, but rents are paid in kind, and 



CONSIDERED. 183 

if one tenent has more of one pro- 
duct, and lefs of another than his fa- 
mily has occafion for, he barters with 
his neighbour. 

The people of this ifland know no- 
thing of manufacture; the ifland being 
plentiful, fumifhes enough for their 
confumption, and an overplus which 
they exchange on the continent for 
cloaths, and what other goods they 
want:but as that overplus is only fuffi- 
cient to make a return of fuch a quan- 
tity of goods as they confume yearly, 
fo they have no magazines of their 
own or foreign goods to ferve them in 
bad years, nor no magazines of arms, 
ammunition, &c. for their defence. 

'Tis propos'd to the proprietor, that 
if a money were eftablifh'd to pay the 
wages of labour, the 300 poor might 



184 MONEY AND TRADE 

be imployed in manufacturing fuch 
goods as before were exported in pro- 
duct ; and as the 1000 that labour the 
ground were idle one half of their 
time, they might be imployed fo as 
their additional labour would be equal 
to that of 500 more, which would lef- 
fen their import by providing them 
with a part of fuch goods as before 
they brought from the continent, and 
raife their export to 3 or 4 times the 
value it had: the return of which would 
furnifh them with greater quantities 
of foreign goods than they wanted 
for confumption, which might be laid 
up in magazines. 

The money propos'd is after this 
manner, the proprietor to coin pieces 
of paper figured number 1, number 2, 
and fo on ; number 4 to be equal to 



CONSIDERED. 185 

a certain meafure of corn, the poor 
and other labourers would be fatisfied 
to take number 4 for the wages of a 
day's labour, providing it be fo con- 
triv'd that number 4 purchafe them 
the meafure of corn; for as that corn 
can be barter'd with other goods, fo 
number 4 would purchafe an equal 
value of any other goods. 

To make number 4 equal to that 
meafure of corn, the proprietor calls 
his tenents together; tells them for the 
future, he will have his rent payed in 
paper,fo renews their leafes, and where 
a 1 00 meafures of corn was payed, 
they oblige themfelves to pay him 
number 400. the other kinds the pro- 
prietor was payed in are valued, accor- 
ding to the value they had in barter 
with corn ; and leafes made for paper. 
Aa 



lS6 MONEY AND TRADE 

The proprietor coins paper to the 
value of a year's rent, imploys fuch as 
are willing to work, and gives them pa- 
per-money as the price of their labour, 
the tenent gives corn or any other 
goods he has to the labourers for pa- 
per-moneyed the proprietor receives 
it for his rent, but as the confumption 
of the labouring man may be fuppos'd 
to be only equal to number 2 ; fo the 
tenents cannot get the whole fum hTu- 
ed by the proprietor, and confequently 
not enough to pay their rent, if this 
were not remeeded, the labouring 
men being matters of the remaining 
part of the paper, and having no occa- 
lion for more goods from the tenents, 
might raife the value of the paper, to 
prevent this, the proprietor coins a 
greater quantity, which brings a part 



CONSIDERED. 187 

of the poor and idle of the continent to 
the ifland, and occafionsa greater con- 
fumption, whereby the tenents are 
able to pay their rent in paper as con- 
tracted for. the addition to the people 
is an advantage to the ifland j for it adds 
to the power of the ifland, and their 
labour is worth double what they 
confume. 

This money tho' it has no value 
but what the proprietor gives it, by 
receiving it in payments of his rent; 
yet it will be efteem'd equal to the pro- 
duct payed before. 

If the proprietor would give it a 
value in land, computing after this 
manner : an acre of land pays number 
1 00, at 20 years purchafe worth num- 
ber 2000. and difpone the property 
of land for paper at that value ; who 
Aa 2 



l88 MONEY AND TRADE 

would not be fatisfied to receive or 
contract for that money, fince it not 
only bought the product, but the pro- 
perty ofland at a reafonable price? 

Money is not the value for which 
goods are exchanged, but the value by 
which they are exchanged : the ufe of 
money is to buy goods, and filver while 
money is of no other ufe. 

Tho' filver were our product, yet it 
is not fo proper to be made money 
as land, land is what produces every 
thing, filver is only the product, land 
does not increafe or decreafe in quan- 
tity, filver or any other product may. 
fo land is more certain in its value 
than filver, or any other goods. 

Land is capable of improvement, 
and the demand for it may be greater ; 
fo it may be more valuable, filver can- 



CONSIDERED. 189 

not be fuppos'd to be apply 'd to any- 
other ufes, than it is now apply 'd to ; 
or that the demand will encreafe more 
than the quantity. 

Land cannot lofe any of its ufes, fo 
will not be lefs valuable ; (liver may 
lofe the ufe of money it is now apply'd 
to, fo be reduc'd to its value as a metal. 

It may likewife lofe a part of its 
ufes as a metal, thefe ufes being fup- 
ply'd by other goods : fo lofes a part of 
its value as a metal, but nothing can 
fupply the ufes of land. 

Land may be convey 'd by paper, 
and thereby has the other qualities 
neceffary in money, in a greater degree 
than filver. 

Land has other qualities fitting it 
for the ufe of money, that fdver has 
not. 



100 MONEY AND TRADE 

Land apply'd to theufe of money, 
does not lofe any of the other ufes it 
is apply'd to : filver cannot ferve the 
ufe of money, and any of its other ufes 
as a metal. 

Trade and money depend mutually 
on one another ; when trade decays, 
money leffens ; and when money lef- 
fens, trade decays, power and wealth 
confifts in numbers of people, and ma- 
gazines of home and foreign goods ; 
thefe depend on trade, and trade on 
money, fo while trade and money 
may be effected directly and confe- 
quentially ; that which is hurtful to ei- 
ther, mufl: be fo to both, power and 
wealth will be precarious. 

If a money is eftablifh'd that has no 
intrinfick value, and its extrinfick va- 
lue to be fuch, as it will not be expor- 



CONSIDERED. ipi 

ted ; nor will not be lefs than the de- 
mand for it within the country .-wealth 
and power will be attained, and be lefs 
precarious, money not being liable to 
beleflen'd directly, nor consequenti- 
ally ; and trade not liable to decay con- 
fequentially. fo the power and wealth 
of that country will only be precari- 
ous, from what may be directly hurt- 
ful to trade. 

The paper money propos'd being 
always equal in quantity to the de- 
mand, the people will be employed, 
the country improv'd, manufacture 
advanc'd, trade domeftick and foreign 
will be carried on, and wealth and 
power attained, and not being liable 
to be exported, the people will not be 
fet idle, <kc. and wealth and power 
will be lefs precarious. 



Ip2 MONEY AND TRADE 

From whence it is evident, that 
land is more qualified for the ufe of 
money than filver ; and preferable for 
that ufe tho' filver were the product of 
Scotland : being more certain in its va- 
lue,and having the qualities neceffary 
in money, in a greater degree : with o- 
ther qualities that filver has not; fo 
more capable of being the general 
meafure by which goods are valued, 
the value by which goods are exchan- 
ged, and in which contracts are taken. 
If 2000 lib. of paper money, is e- 
qual to the property of land worth 
2000 lib. in filver; then that 2000 lib. 
of paper money, is equal to 2000 lib. 
of filver. 

What buys land, will buy every 
thing the land produces ; and what 
buys the product of land, will buy 



CONSIDERED. I93 

all other goods whether home or fo- 
reign. if wine is brought from France, 
the merchant defigns to lay out his 
money on goods, at intereft, or on 
land : the commiffion does not receive 
filver money, fo he cannot have a 
bond from the commiffion, unlefs he 
give the value in paper ; and many of 
the landed men won't take filver for 
their goods or lands, having occafion 
for paper to pay the commiffion. fo 
the merchant will choofe to fell his 
wines for paper money, becaufeit will 
purchafe him goods, bonds or lands 
where filver money will,being equal- 
ly valuable: and in cafes where filver 
money will not. 

And this is fuppofing filver were 
equally qualified for the ufe of money, 
as land is. but as filver is an uncertain 
Bb 



194 MONEY AND TRADE 

value, and is given for much more 
than its value as a metal; and has not 
all the qualities neceffary in money, 
nor in fo great a degree as paper mo- 
ney : fo paper money will for thefe o- 
ther reafons be prefer'd to filver. 

Some object that a paper money 
tho'uponagood fund, and current in 
the country; yet will not be valued 
abroad, equal to what it were in Scot- 
land. 

The goods of Scotland will al- 
ways be valued abroad, equal togoods 
of the fame kind and goodnefs ; and 
that money tho' of paper, which buys 
goods in Scotland, will buy goods or 
money in other places, if a iooo lib. 
in ferges, linen cloth, &e. be worth 
abroad all charges payed 1300 lib. the 
merchant who exports fuch goods, 



CONSIDERED. 195 

will give a bill for that money at the 
par, having 1300 lib. for what coft 
him a 1000. 

When a nation eftablifhes a mo- 
ney, if the money they fetup, have a 
value equal to what it is made money 
for, and all the other qualities necef- 
fary in money; they ought to have no 
regard what value it will have in o- 
ther countries, on the contrair, as 
every country endeavours by laws to 
preferve their money, if that people 
can contrive a money that will not be 
valued abroad ; they will do what o- 
ther countries have by laws endea- 
vour 'din vain. 

No nation keeps to filver becaufe 
it is ufed in other countries, it is be- 
caufe they can find nothing fo fafe 
and convenient, trade betwixt nations 
Bb 2 



1 96 MONEY AND TRADE 

is carried on by exchange of goods, 
and if one merchant fends out goods 
of a lefs value, than he brings home ; 
he has money furnifh'd him abroad 
by another who brings home for a 
lefs value than he fent out : if there is 
no money due abroad, then the mer- 
chant who defigned to import for a 
greater value than he exported, is re- 
ftricled ; and can only import equal 
to his export, which is all the many 
laws to regulate trade have been en- 
deavouring. 

It is objected that we are under a 
neceflity of having goods from coun- 
tries who will take none of ours. 
France does not allow money to be 
exported, nor any fliip to import 
goods, unlefs French goods are expor- 
ted from the fame port ; to the value of 



CONSIDERED. 197 

the goods which were imported, by 
our law we are forbid to export mo- 
ney. but as I don't think the example 
of nations agoodanfwer, I fhall en- 
deavour to give a better, fuppofe our 
money is not valued abroad, and we 
have occafion for goods from Den- 
mark, who takes none of ours, thefe 
goods being necefTary here, will be 
valued higher than other goods that 
are not fo necefTary ; and the value of 
Scots goods fold in other countries, 
will be carried to Denmark, in fuch 
goods as will fell there, or in foreign 
money, and thefe necefTary goods be 
brought home : becaufe the trader 
makes a greater profit by them, than 
by fuch goods as could have been im- 
ported from that country, where the 
goods exported were fold. 



I98 MONEY AND TRADE 

But as this addition to the money 
will employ the people who are now 
idle, and thefe nowemploy'd to more 
advantage : fo the product will be en- 
creas'd, and manufacture advanc'd. if 
the confumption of the nation conti- 
nues as now, the export will be grea- 
ter, and a ballance due to us : and as the 
exchange depends on the ballance, fo 
paper money here, will be equal to a 
greater quantity of filver money a- 
broad. 

Suppofe the yearly value of Scot- 
land a million and a half, the yearly 
value of England 40 millions ; the va- 
lue of Scotland, is only about one 2 Sth 
part of the value of England, yet the 
quantity and quality of the lands, and 
the numbers of people confider'd ; 
Scotland will be at leaft as 1 to 6. and 



CONSIDERED. . Ip^ 

if there was money to employ the 
people, we w r ould be as one to 6 ■ for 
we have advantages peculiar to us, 
that do more than equal the Planta- 
tion an-d Eaft-India trades. 

England is not improved fo far as it 
might be, by a greater quantity of mo- 
ney, we may have money equal to the 
demand, by applying our land to that 
ufe. fo our country may be improv'd 
above the proportion of one to 6. but 
if the propos'd addition to our money, 
improved the country only fo as to 
bear a proportion with England of 
one to 13, our yearly value would be 
3 millions -and our confumption not 
being half what the fame number of 
people confume in England ; if the 
confumption continued as now, the 
ballance due to Scotland would be 



200 MONEY AND TRADE 

greater, than the ballance due to Eng- 
land. 

This addition to our yearly value 
may be thought by fome people, a 
fuppofition that's extravagant, but I 
defire thefe people will confidcr what 
confequences the plenty of money 
has had in other places, as the money 
of England has increas'd, the yearly 
value has increas'd ; and as the money 
has decreas'd, the yearly value hasde- 
creas'd. 

I don't doubt but the paper-money 
propos'd being given out equal to the 
demand, would bring the yearly va- 
lue of Scotland to 3 millions, tho' the 
fifhingand other branches of foreign 
trade ( which might be improv'd to 
great advantage) were neglected, but 
fuppofe the yearly value increas'd only 



CONSIDERED. 201 

half a million, of which a 4th (pent in 
•a greater confumption of the product 
and manufacture of the country, a 
4th in the greater confumption of fo- 
reign goods and expence abroad,a 4th 
laid up in magazines of foreign goods, 
a 4th would ftill be due of ballance 
and brought home in filver. 

If the confumption and expence 
increas'd equal to, or beyond the im- 
provement; as the paper-money could 
not be exported, fo the people would 
notbe fet idle,nor the manufacture de- 
cay : that money being like an eflate 
intail'd. we might continue to con- 
fume equal to the yearly value, but 
could not leffen the yearly value, nor 
be poorer if we would. 

If a greater value of goods was im- 
ported than was exported, and credit 
Cc 



202, MONEY AND TRADE 

given for the ballance ; foreigners to 
pay themfelves, would fend a leffer 
value of goods the year after, but fuch 
reftriclions may be put on the con- 
fumption of our own and foreign 
goods, as may make a ballance due. 

The revenue of the commiflion 
will be a great help toward the advan- 
cing our trade in its infancy : w hat en- 
courages the export of goods, encou- 
rages the manufacture of them ; and 
that money given as a draw-back, will 
not only encourage the export and 
manufacture; but likwife regain the 
reputation our goods have loft, and 
give them a better reputation than 
the goods of other nations. 

The draw-back ought not to be 
given to all goods,but to fuch as do not 
yield a reafonable profit abroad, and 



CONSIDERED. 203 

upon condition they are found fuf- 
ficient. 

The feal of the office of draw-back 
ought to be apply'd to thefe goods 
that receive the draw-back; and thefe 
intruded with the draw-back, fliould 
give fecurity to pay the price of fuch 
goods, with all charges, if found in- 
fufficient. 

When manufa&ureand trade pro- 
fpers, the landed man's rent is well 
payed, and increafes : when they de- 
cay, his rent is ill pay 'd , and decreafes. 
a draw-back is fo effectual a way to 
encourage and promote manufa&ure 
and trade ; that it were the landed 
men's inter eft to tax themfelves, ra- 
ther than a draw-back fliould not be 
given, where it is neceffary. 

A draw-back is more neceffary 
Cc 2 



204 MONEY AND TRADE 
here than in other countries, for we 
do not manufacture fo well as other 
nations: we are not able to fell for 
the fame profit,our (locks being much 
fmaller; and the goods of other na- 
tions will be preferr'd to ours,becaufe 
our goods are fufpected. 

Some object that this propofal is 
new, and has not been practis'd in 
any nation. 

The example of another nation 
ought not to determine us, to follow 
the fame meafures, without examin- 
ing whether that nation was the better 
or the worfe by fuch meafures; and 
whether our circumftances and theirs 
don't differ fo, as to make that hurt- 
ful or ineffectual to us, which was of 
advantage to them, on the other hand, 
it is no argument againft any thing 



CONSIDERED. 205 

proposed for the general good, to fay 
it is new, and what has not been 
pracYis'd. 

When any thingpropos'd has been 
already pra&is'd by other nations, 'tis 
a prefumption in favours of fuch a 
propofal ; and it's a prefumption a- 
gainft it, if it has been refufed : but a 
wife nation ought not to be determi- 
ned by example, to follow or refufe 
without examining. 

This propofal has not been re- 
fus'd. theefTential partis nowpractis'd 
in France, for paper is current by 
law: and tho' after a manner that in 
all appearance ought to have hindred 
its currency , yet I'm inform'd fo- 
reign bills are bought with paper mo- 
ney, the fame as with filver or gold. 

The example of nations in relation 



2o6 MONEY AND TRADE 

to money would be a very uncertain 
rule, for as has been faid page 70, 
oppofite meafures have been us'd in 
fome countries to what have been 
ufed in others, and contrary meafures 
have been ufed in the fame countries 
to what was ufed immediately before, 
not becaufe of any difference in their 
circumftances, but from the opinion, 
that fince the method ufed had not 
the effect defign'd, a contrary would ; 
and there are good reafons to think 
that the nature of money is not yet 
rightly underftood. 

Any other objections that I have 
yet heard againft this propofal, are 
fuch as may be fully anfwered, and fo 
far as I can fee into it, with all the 
application I have been capable of, 
I cannot find any objection but what 



CONSIDERED. 10J 

may be fully anfwer'd ; nor any dif- 
ficulty in the execution, but what 
may be removed : if there is any fal- 
lacy in the pofitions I lay down, or 
any wrong confequences drawn from 
thefe pofitions, I have not been able 
to difcover them. 

CHAP. VIII. 

The low condition this country is reduced to, notwitb- 
flanding its natural advantages. 

The natural advantages the Dutch 
have for trade, are, their fituation at 
the mouths of the rivers of Germany, 
and being near the bulky trade. 

Their natural difadvantages are, 
fmallnefs of territory, barrennefs of 
foil, producing little but what's forc'd; 
want of mines; long winters; un- 
wholfome air ; marifhy, fo oblig'd to 
great expence for foundation to their 



208 MONEY AND TRADE 

buildings, in making and keeping up 
the high-ways, and in draining the 
country yearly ; a dangerous coaft ; 
difficult entry to their rivers ; the fea 
to defend againft on one fide, and 
powerful neighbours on the other ; 
and heavy taxes, the confequence of 
thefe other difadvantages. 

Yet they have fo improv'd their 
few advantages ,that they are become 
a rich and powerful people, what has 
contributed to their riches and power, 
was the early protection and favour 
the government gave to trade; the 
liberty which was given to people of 
different religions; the freedom of 
trade allowed to Grangers ; the ex- 
ample of their rulers in oeconomy; 
but chiefly the neglect of trade in o- 
ther countries, particularly in Spain, 



CONSIDERED. 20£ 

who forced the people and trade of 
Flanders to Holland. 

Scotland has by nature many ad- 
vantages for trade; a large territory ; 
of eafie defence ; plenty of people ; a 
wholfome air ; mines ; a proper fitua- 
tion for the eaftern and weftern trades ; 
near the bulky trade; a fafe coaft; 
rivers of eafie entry; the feas and ri- 
vers ftockt with fifh. 

But numbers of people, the great- 
eft riches of other nations, are a bur- 
den to us; the land is not improv'd, 
the product is not manufacture ; the 
fifhing and other advantages for fo- 
reign trade are neglected : and the rea- 
f on generally given is, that lazinefs and 
want of honefty are natural to us. 

If want of honefty and lazinefs 
were natural, they would be fo to 
Dd 



2tO MONEY AND TRADE 
mankind ; or if peculiar to a people, 
this would be fo to the Dutch rather 
than to us : the air of Holland is grof- 
fer which inclines to lazinefs;and the 
country not producing wherewith to 
maintain the inhabitants, would force 
them to rob or cheat their neighbours, 
or one another, but it is more reafon- 
able to think lazinefs and want of 
honefty are vices, the confequences 
of poverty ; and poverty the confe- 
quence of a faulty adminiftration. if 
the fame meafures had been taken in 
Scotland for encouraging trade, as 
was taken in Holland, we had been a 
more powerful and richer nation than 
Holland, if Spain, France and Britain, 
or any one of them had apply'd to 
trade, as early, and upon the fame 
meafures Holland did; Holland 



CONSIDERED. 211 

would not have been inhabited, but by 
their early application, and the wrong 
meafures of other countries, they 
have got fuch great magazines of 
what's neceflary for their maintenance 
and defence; of rich commodities to 
fell to other nations, of materials for 
fhipping, &c. and fuch a quantity of 
filver, efteem'd above its value as a 
metal by being ufed as money : that 
in all appearance fo long as filver is 
ufed as money, the great quantity 
they have of it, with their great oeco- 
nomy, enabling them to under-fell 
other nations \ they will maintain the 
rank they hold in trade, and confe- 
quently in power ; notwithftanding 
their natural difadvantages, the pre- 
fent application, and natural advan- 
tages of other nations, 
Dd z 



212 MONEY AND TRADE 

This country is more capable of an 
extended trade than any other coun- 
try of Europe, yet it is redue'd to a 
very low ftate. trade is ruin'd; the na- 
tional ftock is wafted ; the people for- 
fake the country ; the rents of land 
are unpay'd; houfes in towns, and 
farms in the country are thrown upon 
the owners hands; the creditor can- 
not have the intercft of his money 
to live upon ; and the debitor's pcrfon 
and eftate are expos'd to the law. 

The landed man, by having en- 
gaged his perfon and eftate for the 
payment of a fpecies, which is not in 
his power to perform ; and having no 
alternative: by the law his perfon is 
at the mercy of the creditor, and his 
eftate to be fold for fo much of that 
fpecies as it will yield, if 2 or 3 mo- 



CONSIDERED. 213 

ney'd men call in their money, with 
a defign to force their debitors to part 
with their eftetes, at what prices they 
pleafe to impofe: they may bring the 
price of land to 15 or 10 years pur- 
chafe, for they would not take bonds 
in payment, and few or none would 
be in a condition to buy with mo- 
ney. 

If victual fhould prove fcarce, as 
we have not goods or money for any 
value to fend out for corns ; fo only 
a part of the people could be main- 
tained : the better part would have 
bread, but the more neceflary part, 
the labouring men, would be fore'd 
to leave the country, or to ftarve in it. 
nor would they fare better in Eng- 
land; for as the fcarcity of money 
has fet idle many of the people of 



214 MONEY AND TRADE 

England, fo there are more already 
than there is employment for:and our 
people, at leaft many of them, would 
meet the fame fate they had endea- 
voured to evite. 

The landed men would want peo- 
ple to labour the ground ; they would 
perhaps get food and cloathing for 
themfelves and families, but thefe 
they were owing to, in all appearance, 
would get nothing : for the cafe being 
general, and the landed men the 
ftronger party ; they would not fuffer 
their liberty and eflates to be taken 
from them, but tho' the law could be 
put in execution, and the eftates of the 
landed men were put to fale ; as there 
would be few purchafers, the price of 
land would fall very low. fuppofe the 
land were fold or given among the 



CONSIDERED, £l£ 

creditors for 15 years purchafe, or 
lefs ; it would be fold for more than it 
were worth, for they would not find 
people to labour it : fo many would 
be fufFerers, and none gainers. 

If neither of thefe cafes happen ; 
yet this country cannot well fubfift in 
the condition 'tis in : if this oppor- 
tunity is negle&ed, if wrong or inef- 
fectual meafures are taken, in all 
appearance we will be in confufion 
before we have another opportunity. 

To raife or allay the money, to 
coin the plate, or regulate trade, are 
ofFer'd as meafures to fupply the want 
of money: and 'tis thought any one 
of them will bring us out of our dif- 
ficulties, when they come to be exa- 
min'd, raifing or allaying the money 
will be found no help but a hurt to 



$l6 MONEY AND TRADE 

the country, whatever our circum- 
ftances are. the others may prove inef- 
fectual. 

'Tis thought our import and ex- 
pence abroad this lafl year exceeded 
our export by a veryconfiderable fum, 
fo to make the ballance equal we mull: 
not only retrench equal to the money 
which was fent out laft year ; but like- 
ways fo much more as the want of that 
money, and of the addition the bank 
made to our money may have leffen'd 
the yearly value, fo tho' 'tis poffible 
that coining the plate and regulating 
trade may bring the ballance to our 
fide, yet 'tis to be fear'd the confe- 
quences will fhowthat it is not very 
practicable ; for that and other rea- 
already given, however they may af- 
fift, but in regulating our import, re- 



CONSIDERED. 1\J 

gard ought to be had that the fale of 
our goods abroad be no way hindred, 
for if that is not taken care of, we fhall 
lofe more for want of a market, than 
we fhall fave by importing lefs. and 
tho' all necelfary care be taken, yet 
the afliftance may reafonably be ex- 
pected from thefe meafures, will not 
relieve us ; they may keep us lingring 
in the (rate we are, expos'd to confu- 
fion at home, and to infults from a- 
broad. 

Moft people think fcarcity of mo- 
ney is only the confequenceof abal- 
lance due ; but 'tis the caufe as well 
as the confequence, and the effectual 
way to bring the ballance to our fide, 
is to add to the money. 

Our poor have been computed 
200000, our people were then more 
Ee 



2l8 MONEY AND TRADE 

than now, but our poor may be as 
many as then ;fuppofe only iooooo, 
and by the addition to our money 
50000 of them were imployed, and 
only for one half of the year, their 
labour to be payed 3 pence, and 
worth 3 pence more to the imployer, 
their confumption a penny more 
than now: the yearly value of the na- 
tion would be increas'd by fuch labour 
189583 lib. 6 fh. and 8 pence. 

If the country people about Perth 
and Stirling, have to the value of 
20000 1. of linen, ferges, and other 
manufacture more than is bought up ; 
tho' thefe goods exported will yield 
20 or 3 o per cent, profit, yet the own- 
ers can't export them, thegoods being 
in fo many different hands, and not 
having correfpon dents abroad to 



CONSIDERED. 2l£ 

whom they could truft the fale of 
them. A. B. and C. are fatisfied for 
that profit to take the trouble and ha- 
zard of exporting them, but money 
being fcarce they cannot get any to 
borrow, tho' their fecurity be good; 
nor cannot well have credit for the 
goods from fo many different people 
they are Grangers to. if they could 
have credit for them, yet thefe coun- 
try people muft be idle till A. B. and 
C. pay them out of their returns 
from abroad, fo for want of money 
to exchange by, goods fall in value, 
and manufacture decays. 

It cannot well be known what fum 
will ferve the occafions of the nation, 
for as manufacture and trade advance, 
the demand for money will increafe ; 
but the many poor we have always 
Ee 2 



220 MONEY AND TRADE 

had, is a great prelum prion we have 
never had money enough. 

England has been computed to have 
had 14 millions in gold and filver, 
and at the fame time had paper-mo- 
ney for a great fum; yet England 
never had money enough to imploy 
the people: 50 million would not 
improve England fo far as it is capable 
of improvement, if all the people wck 
then imployed and to the beft advan- 
tage, more money would bring more 
people from other countries, the pro- 
vince of Holland by a great quantity 
of money, and numbers of people 
the confequence of much money, is 
able to bear a lhare in the wars of 
Europe, equal to many times the fame 
number of acres of better land in 
England; yet Holland has not the 



CONSIDERED. 221 

advantages for trade that England 
has. fo that country that can have mo- 
ney equal to the demand,will betnore 
powerful than any other country 
with the fame advantages, whofe mo- 
ney is lefs than the demand. 

If money were given to a people 
in greater quantity than there was a 
demand for, money would fall in its 
value ; but if only given equal to the 
demand, it will not fall in value. 

At prefent perhaps 3 or 400000 
lib. is more than there is a demand 
for ; but as trade and manufacture in- 
creafe, the demand for money will be 
greater. 

What I have propos'd to fupply 
the country with money, may be re- 
duced to this, if an eftate of a 100 1. 
rent is worth 2000 1. in filver-mo- 



222 MONEY AND TRADE 

ney, and this eftate can be convey'd 
by paper, and this paper be capable 
of being divided ; then that eftate 
may be made current money for 2000 
lib. and any perfon who receives fuch 
paper money, receives a value equal 
to the fame fum of filver money,as fil- 
ver is valued now. if it is coin'd for 15 
years purchafe, then that paper-mo- 
ney will be more valuable than filver, 
for 1500 lib. in that paper will pur- 
chafe land worth 2000 lib. filver-mo- 
ney. if it is coin'd for 25 years pur- 
chafe,then that paper money will not 
be fo valuable as filver, for 2000 lib. 
in filver will buy as much land as 2500 
lib. in paper. 

Since it is very practicable to make 
land money, it would be contrary to 
reafon to limit the induftry of the peo- 



CONSIDERED. 223 

pie, by making it depend on a fpecies 
that is not in our power, but in the 
power of our enemies ; when we have 
a fpecies of our own every way more 
qualified. 

And confidering the ftate of this 
country from the great fcarcity of 
money ; that the value of lands fall, 
rents are unpayed, farms are thrown 
upon the matter's hand,and the debi- 
tor's perfon and eftate expos'd to the 
law, being engag'd to pay a lpecies 
of which there is fcarce any in the 
nation. 

2. The hazard the money'd man 
is in from the uncertainty of the value 
of money, and the danger of con- 
fufion, in which cafe the money'd 
man maylofeall. 

3. The low ftate of trade, that 



224 MONEY AND TRADE 

many of the people who depended 
on trade and liv'd well, are ftarving or 
fore'd abroad. 

4. That the other degrees of the 
people fuffer in proportion. 

5. That the nation in this con- 
dition may run into confufion, and 
is expos'd to its enemies. 

Confidering the benefit the nation 
will have by this addition to the mo- 
ney ; that the land will be improv'd, 
fo be more valuable, rents be well 
payed, and that debitors by paying a 
value equal to what is contracted for, 
may free their perfons and eftates 
from the danger they are now expo- 
fed to. 

2. That the money'd man will re- 
ceive punctual payment, in a money 
of a more certain value than filver or 



CONSIDERED. 22$ 

any other goods, and be in no danger 
of confufion. 

3. That erade will flourifh, and 
thefe who depend on it be encou- 
raged. 

4. That the condition of the other 
degrees of the people will be better'd. 

5. That the nation will be able to 
maintain itelfin order, and refill its 
enemies. 

Thefe reafons confidered, the ques- 
tion then will be, whether we will 
improve the country as much as it is 
capable, without being at any expence 
for a meafure of trade, or continue as 
we are in hopes of filver from other 
nations. 

It will be a great advantage to this 
nation, that by the regifler we are ca- 
pable of putting this propofal in exe- 
cution, and enjoying the benefit of 
Ff 



226 MONEY ANE TRADE 

it ; when other nation s, tho' they re- 
folv'd upon it, would forfome years 
be incapable of it. tho' for the general 
good of Europe it were to be wifh'd 
England were as capable ofitaswe 
are. 

I have not had time to put my 
thoughts in that order they ought to 
have been, and am forc'd to leave 
out anfwers I defign'd to have given 
to fome objections I have heard made 
againfl this propofal; but if the par- 
liament think good to enter upon the 
confideration of it, I don't doubt 
but it may be made appear to be of 
great and certain advantage ; that it 
cannot poffibly be any way hurtful 
to the country in general, and that it 
may be fo ordered, as not to be hurt- 
ful to any perfon, but on the contrair. 
finis. 



Books printed and fold by Robert 
and Andrew Foulis. 

In pure Greek, on fine writing paper, in quarto. 

HOmeri Ilias, 2 vols 
^fchylus 
Sophocles 

With Latin tranflations in quarto, 
j&fchylus, 2 vols 
Demetrius Phalereus deelocutione 

In pocket volumes the following, 
Homeri Ilias, 2 vols 
Hippocratis ^phorifmi 
Xenophontis de Agefilao rege oratio 
Pindari opera 
Anacreon 
jEfchylus, 2 vols 
Sophocles, 2 vols 
Ariftotelis poetica 
Demetrius Phalereus 
Xenophontis Hiero 
Theophrafti characleres 
Epicletus 
M. Antoninus 
Ariftotelis de mundo 
Cebetis tabula cum notulis 
Lucretius 

Ciceronis opera omnia, 20 vols 
Horatius, editio altera 
Terentius 



Phaedrus 

Philofophiae moralis lnftitutio compendiaria, auo 

tore Fr. Hutchefon, editio 2da auctior 
Cornelii Nepotis vitae excellentium imperatorum ; 

of the fame fize of page and type, with Cicero's 

works 
Profeilbr Hutchefon's introduction to moral philo- 

fophy, tranflated from the Latin 
An efTay on the compofition and manner of writing 

of the ancients, particularly Plato, by J. Geddes 

Advocate 
The meditations of Marcus Aurelius Antoninus, 

newly tranflated from the Greek, with notes, and 

a life of the author, 2d edition 2 vols 
Profeflbr Leechman's fermon on prayer, 4th edition 
- — ^Sermon on the temper, character, and duty of 

a Minifter, 5 th edition 
Sir J. Davies on the immortality of the foul 
The Earl of Shaftesbury's characlerifticks and let- 
ters, 4 vols 
Dr. Henry More's dialogues on the attributes and 

providence of God 
SirT. More's Utopia, tranflated by Bifliop Burnet, 
Milton's Paradife regain'd, and mifcellany poems, 
Ramfay's Gentle Shepherd, with the fangs 
Xenophon's Hiero, tranflated from the Greek. 
De optimo reipublicaeftatu, deque nova infula U- 

topia, libri II. Auctore T. Moro, Angliae can- 

cellario 
C. Julii Caefaris commentarii, of the fame fize of 

type and page with Cicero 

In theprefs, 
C. Plinii Caecilii Secundi epiftolarum libri X. 
Minucii Felicis Oclavius 




Helmuth Halbach 

Buchbindermeister 
Nicderhochstadt/Tt. 




iH 









*BH 




■ "HP