To The Most High and Mighty Monarch, James, by the grace of God, King of great Britaine, France and Ireland, Defender of the Faith, etc.
Traffique, (Most Dread and gracious Soueraigne) by Nature Admirable; and by Art Amiable; being the Sole peacible Instrument, to inrich Kingdomes and Commonweales: may properly be called, The Praeheminent Studie of Princes; the rather, because the Sacred wisdome hath approued this Axiom: That a King is miserable (how rich soever he be:) if he Raignes over a poore people; and that, that Kingdome is not able to subsist (how Rich and Potent soever the people be:) if the King bee not able to maintaine his Estate. Both which, (being Relatives) are depending upon Traffique and Trade, which is performed under Three Simples or Essentiall parts, namely, Commodities, Moneys, and Exchange for Moneys by Bills. Whereupon having lately perused a Treatise intituled Free Trade, or, The meanes to make Trade flourish; wherein the Author, either ignorantly or willfully, hath omitted to handle The Predominant Part of Trade, namely, the Mystery of Exchange: which is the Publike measure between us and other Nations, according to which, all our Commodities are bought and sold in forraine parts: his only Scape being, to have the Money of the Kingdome inhaunced in price, and the forraine Coynes made Currant within the Realme at high Rates. (whereby great inconveniences will follow:) I could not but bee moved, both by my faithfull alleagence due unto your Majestie, and the observant duty owing by mee, to the Publike good:) To make an answere to the materiall points of the saide Treatise, by comparing things by contraries for the better illustration; the rather for that it was published in Articulo temporis, when your Majesties vigilant Princely Care, had been pleased to referre the Consideration of this important businesse of State, to the Learned, Lord Vizcount Maundevile, Lord President of your Majesties most Honourable Privy Councell, and other persons of knowledge and experience: amongst whom (although unworthy) my selfe was called, and our opinions were certified unto your Highnesse.
For the Consideration of this weighty matter of great Consequence, is absolutely to be submitted unto your High Wisedome and Transcendent judgement, by means whereof (according to the saying of Epictetus the Philosopher, Hoc est Maxime iudicis, Aptare Vniuersalia singularibus,) All Causes both Ecclesiasticall and Civill, are observed, discerned and applyed to their proper and determinate ends.
Your Majestie therefore, may bee pleased to vouchsafe (with a gracious aspect) the reading of this small Treatise, which (like unto the little fish, mentioned by Plutarch, swimming before the great Whale, giving notice of dangerous shallow places;) shall be amply explained in a Volume (almost imprinted:) intituled Lex Mercatoria, or the Ancient Lawe Merchant, which (in all humility:) is to bee presented unto your most Sacred Majesty; wherein in the dangerous Rockes, (to be avoyded in the Course of Traffique, and the means thereunto conducing:) are manifested for the preservation and augmentation of the wealth of your Highnesse Realms and Dominions, to bee effected by the Rule of iustice grounded upon AEquality and Aequity according to ius gentium, which is chiefly maintained by the Lawe Merchant. The knowledge whereof, is of such moment, that all other Temporall Lawes (without it) are not complete, but imperfect.
Worthy of commendation, are those offices, who can by Providence preserve the Treasure of Kings and Commonweales; worthier are those that both (by honest and lawfull meanes) can preserve and augment them: but worthiest of all immortall praise, are these, who can and doe (by easie, just, and Politike meanes) inrich Kingdomes and Common-weales, and thereby fill the Princes Coffers with standing Treasure, to serve all occasions in the two seasons, which Princes are to care for; (observed by the Emperour Iustinian,) namely the Time of Warre, when Armes are necessary, and the time of Peace, more fitting wholesome Lawes. In the Theoricke Part of which Study, I have these forty yeares spent much time and charges at the pleasure of great personages: and albeit nothing did encounter mee but ingratitude, yet my constancy to spend the Remainder of my dayes therein, (in hope of Practise,) is as immoveable as the continuance of my daily prayers, to the Great Iehovah, to multiply your Majesties dayes as the dayes of heaven. London the 25 of October, 1622 Your Majesties most Loyall Subject Gerard Malynes.
The Maintenance of Free Trade, According to the Three Essentiall parts of Traffique, namely, Commodities, Monyes, and Exchange of Monyes by billes of Exchanges, for other Countries.
Natural Mother wit, did teach man, before Arts or Sciences were invented; that of all things and in all humane actions: the Beginning, Progresse, Continuance and Termination or End is to bee observed; whereupon Politicians or Statesmen have noted, that the often comparing of a thing unto his Princple or Originall produceth the longer continuance, shewing (by digression) how the same is decayed and may bee reduced to the first integrity and goodnesse. For there was never any thing by the wit of man so well devised, or so sure establihed; which in continuance of time hath not bin corrupted.
The consideration whereof is most requisite, in the reformation of the course of Traffique, as a matter eminent for the good and welfare of Commonweales, and especially for England. Quia vita civilis is societate posita est, Socretas autem in imperio commercio.
According to this rule, let us observe, that all the Traffique and Trade betweene us and forraine nations, is performed under three Simples, which are the essential Parts therefo, namely, Commodities, Monyes, and Exchange of money by Bills for forraine Parts; which may be aptly compared to the Body, Soule and Spirit of Traffique.
The First as the Body, upheld the world by Commutation and Bartring of commodities, untill money was devised to be coyned.
The Second, as the Souls in the Body, did infuse life to Traffique by means of Equality and Equity, preventing advantage betweene Buyers and Sellers.
The Third, as the Spirit and faculty of the soule (beeing seated every where) corroborateth the Vitall spirit of Traffique, directing and controlling (by just proportions) the prices and values of commodities and monyes.
Now even as monyes were invented to bee coyned of the purest mettals of silver and gold to bee the Square and Rule to set a price unto all commodities and other things whatsoever within the Realme, and therefore called Publica Mensura: even so is exchange of monyes by Bills, The Publike Measure between us and forraine countries, according to which, all commodities are bought and sold in the course of Traffique; for this exchange is grounded upon the weight, fineness and valuation of the money of each countrey: albeit the price thereof in exchange doth rise and fall according to scarcity and plenty of money, and the few or many deliverers and takers thereof.
These three essential parts of Traffique are to bee considered joyntly and divided for the good of Commonweales in the benefite to be procured for the generall welfare, or for the particular profit of some few persons; for albeit that the generall is composed of the particular: yet it may fall out, that the general shall receive an intollerable prejudice and losse, by the particular and private benefite of some: These (in this respect) are not to be regarded, especially if they may make the like benefite (in some measure) without hurt or detriment to the generall.
Some Merchants doe deale all for Commodities, others for Monyes, and other some altogether for Exchanges or all three, or that which yeeldeth them most gaine: and commonly without consideration had of the good of the Commonwealth, which is the cause that Princes and Governours are to fit at the stern of the course of Trade and Commerce.
For to speake ingeniously, Merchants cannot enter into consideration of the quantity of forraine commodities imported at deare rates, and the home commodities exported at lesser rates Respecitively in former time; by the disproportion whereof commeth an evident overballancing of commodities. Merchants doe not regard, whether the monyes of a Kingdome are undervalued in forraine parts, whereby our monyes are exported; when the exchange doth not answer the true value by Billes, and the monyes of other countryes cannot bee imported, but with an exceeding losse, which every man shunneth. True it is, that they observe within the Realme to keepe the price of money at a Stand, according to the Kings valuation: but in forraine parts, they runne with the streame, headlong downe with other nations, without consideration of their owne hinderance. Merchants doe not know the weight and finenesse of monyes of each Countrey, and the proportions observed betweene Gold and Silver, nor the difference of severall Standards of coyne; a matter so necessary for them to know, to make thereby profitable returnes of the provenue of our home commodities, either in Money, Bullion or Wares. Finally Merchants (seeking their Privatum Commodum) take notice onely of what is prohibited and commanded, whereas it may fall out also, that to require their opinion for the reformation of some abuses: they may bee thought many times as unfit, as to call the Vintner to the consultation of lawes to bee made against drunkards.
Kings and Princes therefore, which are the fathers of the great families of Commonweales are to be carefull for the generall good so that the expences doe not exceede or surmount the incombes and revenues thereof, according to the saying of Marcus Cato, Oportet Patrem, familias, vendacem esse, non emacem, Hee must bee a Seller, and not a Buyer.
For the effecting whereof, there is a serious study to bee had in the true understanding of the Three essential Parts of Traffique, whereof the course of exchange (which is the most neglected) will be found to bee the efficient Cause, which with us is Praedominant, and overruleth the course of Monys and Commodities, as shall be declared in this discourse. For these Three parts of Traffique concurre joyntly together in their proper function and nature, by an orderly carriage, according to their first invention and institution.
For as the Elements are joyned by Symbolization, the Ayre to the Fire by warmness; the Water to the Ayre, by moisture; the Earth to the Water, by coldness: So is exchange joyned to monyes, and monyes to commodities, by their proper qualities and effects. And ever as in a Clocke, where there be many wheeles, the fist wheel being stirred, driveth the next, and that the third, and so foorth, till the last that moveth the instrument that strikes the clocke; even so is it in the course of Traffique: for since money was invented and became the first wheele which stirreth the wheele of Commodities and inforceth the Action. But the third wheele of exchange of monyes betweene Countrey and countrey, being established and grounded upon monyes, is (in effect) like to the instrument that striketh the Clocke, being therein the thing Active, and Commodities Monyes are become things Passive: in so much that the Sequele thereof may be compared unto Archers shooting at the Buttes, directing their Arrowes according as the Blanke doth stand, high or low; for so do Merchants by exchange in the sale of commodities and negotiation of monyes, without which, commodities lie dead in all markettes. Since the Ancient Commutation of commodities in kind did cease, and the body of Commodities doth not worke without the Spirit which is exchange, so that this observation being neglected: the whole instrument of Trade must needes bee out of order, and discompounded, like a distemptered Lock, which wil neither open nor shut.
When the Art of navigation and shipping had continued many yeares, and marriners did imitate each others obsrevation, before the Science of the Mathematics was invented: It hapned that two great Whales with a great volubility swimming in furious manner, did approach an English ship of Traffique which was bound for the Coast of Barbary, laden with disvers good Commodities and Staple wares. The marriners (as the manner was:) did with al diligence cast overboard divers empty barrels for the whales to play with all, and to keepe them from the ship. The whales not pleased therewith, and a suddaine storm arising, did endanger their ship, which made them unawares to cast overboard many good wares and rich Commodities, wherewith one of the whales was playing. But the other whale more fierce, strook the Ship many times with his Taile, and at last broake the Rudder of the Ship, whereby they were much hindered in their Sailing, and all the shippes of their fleete tooke the Start of them and arrived to their destined ports, the rather because they lost also their sayling Compasse by the violence of the saide Stormy wind and tempest. And the marriners had leisure (with a Calme) to discourse of the Accident to question which was the most necessary and Active thing of True sailing.
Some did attribute the same to the winds and Currant of the Seas; Others to the sailes and agitations of the winds in them. And others to the compasse made by the admirable virtue of the loadstone. But all of them were Novices in their profession; whereupon a merchant standing by (being a passenger in that voyage) used these or the like speeches. My friends and good fellows, I doe not a little admire to heare you thus ignorant in matter of your profession: Can not the losse of the Rudaer of our ship make you sensible to understand, That the Active Part of sayling is to bee ascribed thereunto, seeing it driveth the ship according to all the points of the winds and variation of the Compasse being fastened upon the Paralell of the Keele of Equality? Shipwrights will tell you, That if it be not Rightly placed, it doth interrupt sayling: and if it be not of Compentent length, but that the upperbuilding of the ship doe sway the same, it maketh a ship unserviceable: That neither the direction of the Compasse, nor the Recptacle of the Sailes forewind, can make her performe her voyage as other shippes doe. I perceive you are like unto him that did attribute to the letters of a clocke diall, the shewing of the houre, and not to the hand or Index, which is the Active thing to shew you the same, albeit it can not doe the same without the other, which the Thing Passive: you must therefore truely distinguish and attribute the efficient Cause of Sayling to the Rudder of a Ship, and the other are called Secondary or mean Causes. And they all agreed that this observation was true.
Is not the Moderne Merchant of Hackney or the Author of the Treatise of Free Trade like unto these Novices? who perceiving two great whales to have assulted the English ship of Traffique, The cruellest being the warres in Christendome and the Pirates, The other more gentle, being the Policy of Princes and States in the Course of Trade; hath published in the yeare of Grace, 1622. The Causes of the decay of Trade in England, and the means to make the same flourish, without observation of the operative power of exchange, which is the Rudder of the Ship of Traffique fastened upon the Rule of the equalitie of Moneyes according to their weithg and fineness, to be denominated by the valuation of Princes as a matter perculiarly appertaining to their Praerogatives.
And because that therein, hee hath like unto Esops Jay clad himself with the feathers of other Birds: I hope it will not be impertinent, To unmaske his discourse, and nevertheless to supply (according to my former Treatises) The maintenance of free Trade, wherin I endeavour to be Compendious and Substantiall, and to follow his Method and some distribution for the better understanding, as a most important businesse of State, which is the cause that so many Statutes and lawes have beene made concerning moneyes and exchanges. 2. So many Proclamations for the due execution thereof have bin published. 3. Lastly, so many Treatises and Conferences have beene had had from Time to Time, Both with other Princes and within our selves, which in the judgement of the said Author are neglected as unnecessary, or by ignorance not mentioned; concluding with him, That as there are many causes discussed and discoursed of, at this time of the decay of Trade: So are there many Remedies propounded, wherein if either the Principall Causes be mistaken (as hee hath done) or defective Remedies propounded: The present disease of this Trade may increase and cast the Body into a more dangerous Sicknes. For the efficient Cause being unknown, putteth out the Phisitians eye, as the Proverbe is.
Now let us come to the handling of the particulars in order, and afterward to the True Remedies, which must arise from the matter of exchange, as shall bee plainely demonstrated to the judicious Reader, voide of partiality; for the exchange is the faculty or Spirit of the soule of moneyes in the Course of Traffique.
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