The Several Measures now propos'd, consider'd. As, raising or allaying the Money. Coyning the Plate. Regulating the Ballance of Trade. Or, Re-establishing the Bank.
When I use the Words, Raising the Money, I desire to be understood raising it in the Denomination; For I do not suppose it adds to the Value.
There is no way Silver can be made more valuable, but by lessening the Quantity, or encreasing the Demand for it. If the Export and Consumption of Silver be greater than the Import, or the Demand be encreas'd; Silver wil be of more Value. If the Quantity Imported be greater than the Quantity Exported or Consumed, or the Demand lessen'd; Silver will be of less Value.
If raising or allaying the Money could add to its Value, or have any good Effect on Home or Forreign Trade; Then no Nation would want Money. A 100 lib. might be rais'd or allay'd to 2, to 10, to a 100times the Denomination it had, or more as there were occasion. But as 'tis unjust to raise, or allay Money; Because, then all contracts are payed with a lesser Value than was contracted for; And as it has bad effects on Home or Forreign Trade: So no Nation practices it, that has regard to Justice, or understands the nature of Trade and Money. If A.B. sell 12 Chalder of Victual for a 100 lib. payable in 6 Months, with which he is to pay Bills of Exchange of that Value, to be drawn on him then from France for Wine he has Commission'd; and in that time the Money is rais'd or ally'd to double, the 100 lib. A.B. receives will only pay half the Bill he has to pay, being only equal to 50 ib.
of the Money he Contracted for. Nor will that 100 lib. buy the same Quantity of Goods of the Country, that a 100 lib. brought before: It will pay where Money is due, and satisfie past Contracts made upon the Faith of the Publick, because the Prince says every Man shall take half what is owing him in full Payment. But in bargains to be made, the Value of the Money will be considered; Goods will rise, tho perhaps not to the Proportion the Money is rais'd: And such Persons as do not raise their Goods, equal to the Money, are impos'd on.
When 6 pence is raised to 12 pence, the 6 pence is worth 12pence; But the value of the pence is lower'd to Half-pence.
To explain this matter better, I shall suppose when Money is rais'd, Goods rise, or not.
If Goods rise, then raising the Money has not the effect design'd. If a piece of serge is sold for 40 sh. and the Shilling be raised to 18 pence, the piece of Serge will be sold for 3 pound. This adds to the Tale of the Money, and pays Debts with two Thirds of what is due, but does not add to the Money. this is the natural consequences of raising the Money; For, it is not the sound of the higher Denomination, but the value of the Silver is consider'd.
If, when Money is rais'd, Goods keep the Prices they had before.
Then all Goods exported are sold for a lesser Value abroad, and all Goods imported are sold dearer. (Ex.) A Half-crown is rais'd to 40pence, and that half-crown buys the same Quantity of Goods 40 Pence bought before; Then the Merchant who sends Goods to Holland, to the value of 300 lib. which are sold for 390 lib. there, would gain 220lib. on the value of 300 lib. exported: Because, 390 lib. in Holland would be equal to, or worth by Exchange at the Par, or sent in Bullion, 520 lib. in Scotland. 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 rais'd, had the same Quantity of Silver, that 520 lib rais'd Money would have; and bought als great a Quantity of Forreign Goods. But that Trade would be so profitable to the Merchant, that more People would deal in it than could get Goods to buy; and as more Buyers than Sellers would raise the Prices here, so one Merchant underselling the other would lower the Prices in Holland.
But tho the Prices kept low here, and our Merchants kept up the Prices Abroad; The Dutch knowing the Goods were so cheap in the Country, would buy none from our Merchants, but Commison them in return of Goods they sent.
Suppose the yearly Export first Cost 300000 lib. sold abroad 390000 lib. The Import, and Expense abroad 410000 lib. and 20000 lib.
sent in Money, to pay the Ballance. The Money rais'd one Third, and Goods to keep the Prices they hadbefore, 225000 lib. sent to Scotland in Forreign Money, or Goods, or by Exchange, would buy what was sold abroad for 390000 lib. The Export, Import, and Expense Abroad continuing the same, Scotland would be due a Ballance of 18500 lib.
for, tho Scots Goods were sold under the value, yet other Nations would not sell their Goods for less than before; or than they could have in other Places.
It may be alledg'd, we have more Product and Manufacture, than is consum'd, or exported; and selling cheaper, would occasion a greater Demand for our Goods Abroad.
The Product and Manufacture might be much increas'd, 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 consum'd or exported. Allow Selling cheaper would occasion a greater Demand; that the greater Demand, would occasion an increase in Product, and Manufacture, to the value of a 1000000 lib. and allow that the extraordinary cheapness of Goods, did not occasion a greater Consumption in the Country: Yet, we would be in the same Condition as before; 20000 lib. would be still due of ballance, and the Improvement would be given to Forreigners for nothing. But this Improvement is imaginary, for tho the Demand encreas'd, yet without more Money more People could not be imployed, so no further Improvement could be made: we would be forc'd to retrench near one half of the ordinary Consumption of Forreign Goods, and Expense Abroad; not having Money to pay the great ballance would be due.
Some think Forreign Money being rais'd, would bring in Money to Scotland.