The Merchant who deals in English Goods gains no more than when Exchange was at the Par, tho he sells dearer; Nor the Merchant who deals in Scots Goods less, tho he sells cheaper; they have both the same Profit as when Exchange was at the Par. Scotland pays 2 per cent more for English Goods, and England 2 per cent less for Scots Goods:
All, or a great part of the loss falls at last 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 Money or Bullion to pay the ballance due by Trade, a loss of so much Riches, and very hurtful to Trade, migh have discharg'd the Import of such Goods as the People could best want; Or laid a Duty on them, such as might have lessen'd their Consumption: They might have given encouragement to Industry, whereby the Product would have been encreas'd and improv'd, or discourag'd extravagant Consumption, whereby the Overplus to Export would have been greater; Any one of these Methods would have brought Trade and Exchange equal, and have made a Ballance due them: But in place of these measures, they Prohibit Bullion and Money to be Exported, which could not well have any other effect, than to raise the Exchange equal to the Hazard, such Laws added to the Export of Money or Bullion, which may be suppos'd 3 per cent more: And as these Laws by such effect were hurtful, making all Goods Exported sell yet 3per cent cheaper, and all Goods Imported 3 per cent dearer; the stricter they were execut, the higher the Exchange rose, and the more they did hurt. The ballance was still sent out in Money or Bullion, by the Merchant who owed it, by the Banker who gave the Bills, or by the Forreign to whom it was due.
Suppose the Money of Scotland, England, and Holland of the same weight and fineness. Scotland to Trade with no other places. The Exchange at the Par. The yearly Export from Scotland, first cost 300000 lib. Charges and Profit 30 per cent. Goods Imported 280000 lib.
Charges and Profit 30 per cent. One half of the Trade to be carried on by Scots Merchants, the other half by English and Dutch.
Due to Scotland for one half of the Export carried out by their own Merchants 195000Due for the other half carried out by English and Dutch.
150000
345000
Due by Scotland to England and Holland for Goods Imported by English and Dutch 182000Due for Goods Imported by Scots Merchants 140000322000
The Expense of Scots-men Abroad, more than of Forreigners in Scotland, 40000 lib. If this is suppos'd the yearly state of the Trade and Expense of Scotland, there will be a ballance due of 17000 lib.
And unless the Scots retrench the Consumption of Forreign Goods, so as to Import less; Or retrench the Consumption of their own Goods, so as to Export more; Or encrease, or improve their Product, so as the Export be greater or more valuable; Or retrench in their Expense Abroad. Since that ballance must be paid it will go out in Money or Bullion; And occasions the Exchange to rise 3 per cent, the Prohibition on the Export of Money 3 more, if Scots Men Export it, the Nation saves the 1020 l. Exchange on the 17000 of ballance due, which is lost if English Merchants Export it: But the loss such a Rise in Exchange occasions on the Goods, is more considerable. The 195000 lib.
due Abroad for Goods sent out of Scotland by Scots Merchants, will be pay'd with 183962 lib. English or Dutch Money, that Sum being equal by Exchange at 6 per cent to 195000 lib. in Scotland. The 150000 lib. due for first Cost of Goods carried out by English or Dutch Merchants, will be pay'd with 141510 lib. English or Dutch Money, that Sum being equal to 150000 lib. in Scotland. The 182000 lib. due by Scotland for Goods Imported by English and Dutch Merchants will come to 192920 lib.
in Scotland. And the 140000 lib. first cost of Goods brought Home by Scots Merchants, will come to 148400 lib. in Scotland. So the Accompt will run thus.
Due to Scotland for Goods Exported183962Brought from Abroad first Cost140000Ballance of Expense Abroad 40000Due to Scotland Abroad3962Due by Scotland for Goods Imported by English and Dutch192920English and Dutch take back in goods150000Due to English and Dutch in Scotland 429203962 Lib. due abroad to Scotland in Scots Money4199Remains due by Scotland38721So the Rise 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, occasions a loss to Scotland of 21721 l. and makes the next years ballance 38721 lib. tho the Trade be the same as before. Of which 21721 lib. lost by Exchange, one half would be sav'd if Money were allowed to be Exported.
Since the Exchange being 6 per cent above the Par, occasions the loss of 21721 lib. then raising the Money 8 and a 1/3 per cent, having rais'd the Exchange with England to 14 per cent, and with Holland to 30, makes the loss proportionably greater: Scots Goods being suppos'd to continue at the same Prices they were Sold for, before the Money was rais'd, or not to rise in the same proportion with the Money. For whn Exchange was at the Par, a 100 lib. of Scots Goods were Sold Abroad for a 130 lib. English Money; But 114 lib. English Money, being now equal by Exchange to a 130 lib. in Scotland, the Scots Merchant can affor to Sell the same Quantity of Goods for a 114 lib. that he Sold before at a 130, and have the same Profit. So Forreign Goods worth Abroad a 100 lib. and Sold in Scotland for a 130 lib. when Exchange was at the Par; cannot be Sold now for less than a 150 lib.
in Scotland, that Sum being only equal to a 130 lib. English Money;And the Merchants profit is no greater, than when he Sold the same Quanity of Goods for a 130 lib.
It may not be improper to consider what Consequences would attend the lowering the Money to the English Standard, and allowing it to be Exported.