Of Governed Trade, and therein of Monopoly.
Hitherto (saith the said Authour:) the matter of Trade hath been considered in Money and Merchandize, and the exchange of monyes is past over by him, as a matter not worthy the consideration: indeed it was good for him to saile between the two Rocks of Scylla and Charybdis, without further adventure, and not to suffer Shipwracke upon the dangerous Rocke of exchanges.
But divers merchants have much distasted, that a man of their profession should neglect one of the Essentiall Parts of Traffique, and the most operative in Trade, being the only measure betweene us and forraine nations, without which, all his discourse is without Rime or Reason. So that he cannot finde any Parity nor Purity in exchanges; like unto a fickle body, who by reason of the bitternesse of his tongue, can not relish.
Monsieur Bodine saith, that when a man is noted to be of experience, and to understand matters, wherein he is surpassing others: the Proverbe is, Il entend le Par, he doth understand his Par or Equality; which cannot bee applyed unto him that doth not understand the matter of exchange: for all his arguments are fram'd betweene Commodities and moneys, from whence this Syllogisme may bee drawne against him, to maintaine the undervaluation of our money in specie.
Nothing causeth Merchants to export more money out of the Realme, then they bring in: but onely the bringing of more Commodities into the Realme then they carried out. The undervaluation of our moneys, causeth no more Commodities to bee brought into the Realme, then is carried out: Ergo, the undervaluation of our moneys, causeth not more money to be carried out of the Realme, then is brought in. But lest this should breede a Dilemma, let us examine his words concerning exchanges.
It is not the Rate of exchanges, but the value of Monyes, here low, elsewhere high, which causeth their exportation, nor doe the exchanges, but the Pleny and Scarcity of moneys cause their values.
There are three waies to dissolve an argument, Deniall, Retorting and Distinction. Deniall is too hostile, favouring more of obstinacy, then of Arte; Retortion is more witty, then profitable. But Distinction is like to mature Remedies compared to Purges, which clense and feede. Now the said Authour taketh the course of Deniall, and prooveth nothing.
If monyes be here low, and elsewhere high, how is this knowen but by the Valuation of exchange? considering the diversity of moneys of severall Standards, wherein the exchange is like to the Assay, whereby the finenesse of Silver and Gold is knowne, grounded upon the quantity, which the exchange requireth according to the weight of fine Silver and Gold, contained in the monyes of each Countrey, which is the intrinsicke valuation, and not according to the extrinsicke valuation, which is altered by Denomination; for the name of a thing doth not alter the value Really, but the substance doth it, if it be altered; much lesse doth Plenty or Scarcity of moneys cause their values, it being contrary to the nature and properties of money. The publicke Measure, the yard doth measure the Cloth, but the Cloth doth not measure the yard. To illustrate the premisses by examples, I have heretofore shewed the consideration incident.
Suppose that some Merchants Strangers doe come over into the Realme, to buy a Packe of Tenne Clothes valued at 80 pounds starlin which they are to pay in Gold and Silver, and yet they doe not know, what the weight and finenesse of our Starlin money is, neither doth the English Merchants know the weight and fineness of the forraine Coyne, which they have brought over: hereupon to content both parties, the moneyes on either side must bee tried by the Subtill Assay according to their finenesse, calculated upon the pound weight they answer each other accordingly; and so this negotiation is (in effect) but a Permutation of monyes for Commodities, before exchange was invented.
This being not well observed, might cause men to be deceived, as the Pewterer (sometimes an Alderman of London) was, who beeing used to change old Pewter for new, taking a consideration for the fashion, would take the like course in the buying of Silver Plate of a Goldsmith, delivering his money by weight, whereby he sustained a losse, because hee did deliver him a quanity of old groates, which were lighter then their value; as also other Starlin moneys, which were worne out in continuance of time, and much under their true weight. And boasting of his good bargaine, hee was made to calculate what an ounce of silver did stand him, and he found that by these meanes, he had paide 6shillings the ounce of that, which was offered unto him for 5shillings, 6 pence. Fallere fallentem no est fraus.
The lighnesse of this Pewterers money may be compared to the low exchange in the undervaluation of our moneys, by exchange;for if a Merchant Stranger did bring over money in specie at this time, to buy commodities within the Realme, and deliver the same here according to the very value in payment by the Assay; and thereupon doe looke backe how his mony is overvalued in regard of the exchange, wherby he might have made over the same by a bill of exchange; he shall finde a farre greater losse then the Pewterer did, not of 6 pence in an ounce, but above nine pence in every ounce of Silver. Great are the gaines to be made by exchanges, without ever to deale or meddle with any Commodities at all.
