Tho the Crown were rais'd to 10 sh. yet if a Ballance is due by Scotland, the Exchange will be above the Par, and 'tis not to be suppos'd an English Merchant will bring Crowns to Scotland, when for a 100 pay'd in at London, he can have 105 or 6 of the same Crowns payed him at Edinburgh.
If the ballance of Trade was equal, Forreign Money rais'd, and Scots Money not raised in proportion; Forreign Money would be brought in, and a greater value of Scots Money would be carried out. 'Tis the same loss to a Country when Money is rais'd, and Goods no not rise in proportion: (Ex.) If Forreigners send in Money to buy Goods, and this Money when exported is not valued so high as here; the Return in Goods will be so much less, besides the want of the Profit we would have had on the Export of our Goods.
If all Import, and Forreign Expense were discharged, Scotland would then be so much richer, as there was Bullion or Money imported:
But, if that Prohibition be suppos'd, Scotland would be richer by keeping the Money at the value it has; Because, a greater Quantity would be brought in, to buy the same Quantity of Goods.
If we could be suppos'd to be without any Commerce with other Nations, a 100 lib. may be allay'd and rais'd to have the same effect in Trade as a Million: but, if a Stranger were suffer'd to come to Scotland, he might purchase a great part of the Land or Goods with a small Sum. And a rich Man here would make a very small Figure Abroad.
Money is the Measure by which all Goods are valued; and unless Goods rise to the full proportion the Money is rais'd, the Goods are undervalued. If the yearly Value of Scotland in Product and Manufacture be 2 Millions, at 20 Years Purchase 40 Millions. The Money a 100000 lib. Raising the Money 20 per cent, makes it pass for a 120000 lib. Suppose the Goods rise only 10 per cent, then that a 120000 lib. is equal in Scotland to a 110000 lib. of the Money before it was rais'd; and Buys the same Quanitity of Goods. So, an addition is made of 20000 lib. to the late, and of 100000 lib. to the Value of Scots or Forreign Money, compar'd with the Value of Scots goods: but the measure by which goods are valued, being rais'd in the Denomination 20 per cent; And the Goods rising only 10 per cent:
Scotland is near 4 Million, or one Tenth less valuable than before.
And any Man who Sells his Estate, will receive a Tenth less Silver, or of any other Forreign Goods for it, than if he had Sold it before the Money was rais'd.
France and Holland are given as Examples of raising and alloying the Money. In France the Money is higher in the Denomination than in other Countries, but that does not hinder the Money of France to be Exported. When the Lue d'ore was at 12 Livres were pay'd then at Paris, for a 100 Lue d'ores of the same Weight and Fineness at Amsterdam, and passing there for 9 Guilders Bank Money; So 10 per Cent was got by Exporting Money From France. When the Lue d'ore was rais'd to 14 Livres, that did not make the Ballance against France less; The Exchange continued the same, 110 Lue d'ores tho at 14 Livres were payed for a bill of a 100 at Amsterdam, and the same Profit was made by Exporting Money. If the Exchange hapned to be lower, it ws from the Ballance of Trade due by France being less, and that would have lower'd the Exchange whether the Money had been rais'd or not. But the raising the Money, so far from bringing the Ballance to the French side, keeps the Ballance against France: For, as their Goods do not rise to the full proportion the Money is rais'd, so French Goods are Sold cheaper, and Forreign Goods are Sold dearer, which makes the Ballance greater, occasions a greater Export of Money, sets Idle so many of the People as that Money employ'd, lessens the Product or Manufacture, the yearly Value of the Country, and the number of the People.
It's thought the Dutch Coin Lue d'ores, and send them to France, where they pass at 14 Livres. And, that Guineas were sent from Holland to England, in the time of the Clipt Money, because they past there for 30 sh. But these People are misinformed. Ever since I have known any thing of Exchange, a Lue d'ore at Amsterdam whether new or old, has been of more Value by Exchange, than a new Lue d'ore at Paris. And in the time of the Clipt Money, a Guinea in Holland was worth more by Exchange, then a Guinea in England. These who were Ignorant of the Exchange, might buy up guineas or Lue d'ores, to carry to England or France, but they would have got more by Bill. There was a Profit then upon Exporting Guineas and Lue d'ores from England and France to Holland. The Pound English at that time was given for 8 guilders, or under; and the Exchange from Amsterdam to Paris has been these 8 or 10Years for the most part, considerably above the Par on the Dutch side.
I have known the Pound English at 7 guilders 13 Stives, and the French Crown of 3 Livres bought in Holland for 37 Stivers, in London for 39Pence half Penny.
Raising the Money in France is laying a Tax on the People, which is sooner pay'd, and thought to be less felt than a Tax laid on any other way. When the King raises the Lue d'ore from 12 Livres to 14, they are taken in at the Mint for 13 Livres, and given out for 14; So the King gains a Livre on the Lue d'oro, and this Tax comes to 20 or 25 Million of Livres, sometimes more, according to the Quantity of Money, it stops the Circulation: A part being kept up till there is occasion to Export it to Holland, from whence a return is made by Bill, of a sum of Livres equal to the same Quantity of new Lue d'ores that were Exported of old ones, and 8 to 10 per cent more, according as the Exchange is on the Dutch side. Others who won't venture to send the Money out, keep it till the new Money is cry'd down, so save a 13th part, which the King would have got if they had carried the Money to the Mint to be Recoin'd. This Tax falls heavy on the poorer sort of the People.