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 6 shillings the ounce of that, which was offered unto him for 5 shillings, 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.
I know that to the judicious Merchants, I have given cause of offence, to have written so much in the defence of exchange; But knowing that many grave and discreete persons have given over this Princely Study, imagining therein more mystery then there is, rather then they would take paines to understand it: I have bin prolixe, wishing that the saide Authour had the Purity of understanding to know the Parity of so many exchanges, as have been divised in Italy, Germany, France, Spaine, The Low Countries, Eastland, Poland, and other places, at large declared in my booke, Lex Mercatoria, serving all Societies and Companies of Merchants to bee mindfull of the Common Wel-fare, wherein Master Hussy Governour of the Merchants Adventurers company in the beginning of Queene Elizabeths Raigne tooke great paines with others, To find and establish the True Par of exchange, which was examined and altered in the yeares, 1564, and 1576 as also in the yeares 1586 and 1600, my selfe being a Commissioner in the later: But the true Remedy to rule the course of exchange, was but lately found out.
Concerning the government of Trade, wee have noted heretofore, that in all Traffiques, the generall doth governe the particular. some would have other nations to come to buy the Commodities of us, within the Realme, for, say they, there is according to the Proverb, twenty in the hundreth difference between Will you buy? and Will you sell? These men have no consideration of the maintenance of navigation, which is the greatest strength of the Realme, whose defence (next under God) consisteth most of Ships and well experienced Marriners. Whereas also the transporting of our Cloth to certaine places, causeth other nations to resort thither to buy them, which may bee more properly called to be Will you sell? Seeing that those nations doe bring their owne Commodities unto our Merchants to the places by them appointed, as Delf and Hamborough; which is (in effect) as much as Will you buy? And would not this be, Will you buy? if in a dispersed and stragling manner, our Cloth were carried to all markets beyond the seas in severall places; which would take away the desire of buying: for he that buyeth, doth it in hope of gaine to be had in places where he intendeth to carry the Commodities, which Commodities if hee knoweth to bee extant in most places to be vented, will quench his desire of buying: and hee that commeth to barter other Commodities for ours, hath the like consideration.
But let us admit, that our Cloth would bee advanced in price, when men (should by multitudes) run to the markets, or into the countrey in al places to buy it: what would be the event of it? It would not onely bee solde beyond the seas with a smaller gaine and many times to losse (we being naturally to make speedy returne:) but we should also pay dearer for the forraine Commodities, which wee should obtaine by way of Permutation, or for the Billes obligatory of the Merchants to who wee sell our Cloth: and if our Merchants were cut off, and that other nations should buy the Cloth within the Realme, and so advance the price thereof: (as it happeneth most commonly in France and Spaine at the Vintage time with their Wines Raisons:) Then forraine Commodities would be sold dearer unto us by them againe: for the small gaine had upon our Commodities causeth us, and would cause them to seeke a better gaine upon the forraine Commodities to the generall hurt.
Others would have all things at large in the course of Traffique, and that there should be no societies or corporations of Merchants for any places of Trade (terming them to be Monopolies) but that by way of partnership Merchants might associate themselves, according to the manner of some other Countries: These men have no regard, that innovations are as dangerous, as to remoove the corner stones of a building; neyther doe they observe a momentary difference betwixt the Government of a Monarchy, and that especially in an Iland: and the government of a Democracy which is popular, or of an Aristocracy, which is governed by the better sort of the people; these seeking by all meanes to make their Countries populous by the inhabiting of all nations for the increase of their meanes collected by impositions and Aczises, and that upon all things consumed and most upon victuals; the other, namely the Monarchy, avoiding asmuch as they can, the multitude of forraine nations to inhabite within their government, and holding impositions and Taxes to bee done with great advisement. And that the overballancing of forraine Commodities with the native Commodities may be prevented; which by the other is not regarded, neither can it bee by them observed.
The Providence of the State hath also a great consideration in the course of Trade, under government in appointed places, especially in that of the Merchant Adventurers company, (who have the managing of the creame of the land, the maine Trade of the kingdome, and doe expose to adventure the greatest part of the wealth therof with forraine nations in troublesome times of wars:) because they may by this order be soone remooved or called home upon occasion, which cannot be done conveniently otherwise: where there is no vigilant eye to take care for the generall wealth of the Realme, for no nation of Christendome Traffiques so much in Bulke of Staple Commodities, as the Realme of England; which Boters (though altogether Spanish in times past, and no friend to England) confesseth, that two yeares before the taking of Andwarpe, all the wares of Christendome being valued, and summed by the offices of that City, (which were vented there in one yeare.) The whole being divided into sixe parts: the English amounted to foure parts thereof.
But we must not seeme to flatter Companies or Societies, when it is found that they deale unadvisedly, or that by their meanes, things are out of order in the course of Trade; for then the Kings authority or the Royall Merchant of great Brittaine, must be the true Palynurus, and sit at the Rudder of the Ship of Traffique, to reforme abuses. For a Society may become to be A Monopoly in effect, when some few Merchants have the whole managing of a Trade to the hurt of a Common-wealth, when many others might also Traffique and negotiate for the Common good, having their Stockes employed therein to sell the Commodities of the Realme with reputation at convenient times, and not upon a suddaine to pay Billes of exchanges or moneys taken up at interest.
To make a Definition of a Monopoly, we neede not use many words, for the abuse of Monopolium hath made the same swell to be understood as the word of Usura, I meane biting Usury. The parts of it are to be considered.
The Restraint of the freedome of commerce to some one or few, and the setting of the price, at the pleasure of one or few; to their private benefits, and the prejudice of the Common- Wealth. And as this may be done by authority, so may the above- said course also be committed under the color of authority by the Princes grant or letters Patents.
Commendable is the custome of the City of Norenborough in Germany, where to maintaine the people on worke, they receive all their manufactures and pay them weekely, afterward sell them for a reasonable profit, which thereby become dispersed in all countreys; whereby they have made a great Trade for the West Indies, they maintaine therby their Common-wealth as an Aristocratick government: and this is neither A Monopoly, nor properly An engrossing, beeing dome by publike authority. Such therefore as sel the Commodities of the Realme unto forraine nations with advantage of private benefite, (albeit within the Compasse of a Monopoly:) are more to be tolerated then those that undersell the Commodities of the kingdome, and procure their Gaines by the Commodities of other nations to bee solde deare within the Realme.
Here I call to mind our former observation of that Royall Commodity Tinne, which above one hundred yeares past, was sold for 40 shillings the hundreth, when the best velvets were sold for 10 shillings the yard: how the Merchants trading Turky found fault of his Majesties Praemption, and caused the same to be abolished, to keepe the price at 55 shillings the hundred; and bringing in Corints, Levant wines, Spices, and Indicoe (at deare rates:) used all meanes to suppresse the rising thereof: which caused forraine nations to fall into consideration thereof, and using meanes to incorporate the same, it brought that Commoditiy in estimation againe. And the saide Praemption was reestablished againe, which hath advanced the price to double the rate; whereby the stocke or wealth of the kingdome, hath been since increased 600 thousand pounds Starlin, and his Majestie hath received for his benefite 150 thousand pounds, which was gotten by forraine nations, who justly paid the same according to the value; the price of forraine Commodities considered. On the contrary, another Commodity minerall, namely Copperas, which was sold for 10 and 12 pound the Tunne, and whereof a great Trade might have beene made for other Countries: hath beene so ill governed by workmens underselling one another, and for want of good order, that the same is sold for 3 pounds the Tunne, and is become out of request in all countreys. For the best things may be marr'd in handling, which by the wisedome of the State, is to be foreseene by meanes of Merchants of experience, who might have maintained the same.
In like manner the sole importation of Spanish Tobacco, doth gaine and save the kingdome many thousand pounds yearely. For Bayes, Sayes, Perpetuanoes, and the like Commodities, which these two yeares have been solde in Spaine with 15 upon the hundred losse to procure money to buy the same, are now sold to so much profite, besides the benefite of his Majesties imposition and advancement of the Virginia and Bermodaes Plantation: the like may bee practised upon other Commodities, without incurring the inconvenciences of Monopolie.
Concerning Companies or Societies to deale in a joynt Stocke or apart: it may be thought convenient to have joynt Stockes for Remote places, as the East Indies and Persia. And albeit that some would have the same to be only outward in the employment, but in Returne to bee divided in kinde or Species of the Commodities which they Receive: yet the manner of the Portugals, is (by experience) found better to sell aslo joyntly, considering we sell unto other Nations, who pay for it, although some part thereof is sold deerer thereby within the Realme to the Subjects and inhabitants. But for other places neerer, the Merchants to deale apart under some Government, may seeme convenient.
The generall intention of all Grants by Letters Patents, for the making of any kinde of Manufactures hath Relation to set the people on worke, to recompence the Inventor for some yeares with a priviledge: but most especially, that thereby the said Manufactures or Commodities may be sold better cheape to the Subjects. What shall wee say then of those Grants, which make the Commoditie deerer to the Subject, and sell the same better cheape to the Transporter or Stranger? Surely they may be thought to be, for to set the people on worke upon the common Purse, but otherwise there is but little pollicie in it; much like unto the Silver Mines of the Duke of Brownswicke, which he maintained to his charges, called the Wilde man: which causeth him to coyne Dollers, having on the one side his Armes, and on the other side a Savage man, holding a burning Candle in his hand with an inscription, Alijs inserviendo, Consumor.
To end this point, wherein the said Author hath made good distinctions, I shall onely adde moreover, that when new inventions are found out, for the good of the Common-wealth: That the next is, to augment them by Trade in forraine parts. And to prevent that the same be not overthrowne by the knowledge of their servants or others, but that by some good priviledges and meanes, they may be maintained to the increase of Trade, for the Generall welfare of the Kingdome.
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