Of Riches, and the Value of Things.

ALL the Arguments in Mr. Lock's Book against the raising the Value of Money, are drawn from this single Supposition, That there is an Intrinsick Value in Silver, which is the Price or Estimate that Common Consent hath placed on it, by which it comes to be the Measure of the Value of all other Things: which, if that should not be true, then all his Consequences must be mistaken.

[Page 2]And to prove that he is so, It will be necessary to discourse of RICHES in gene­ral, and to shew how the Value of Things do arise.

By Riches, is meant all such Things as are of great Value.

By Value, is to be understood the Price of Things; that is, what any thing is worth to be sold: according to the old Maxim, Valet quantum vendi potest.

The Value of all Things, arise from their Use.

Things of no Use, are of no Value; as the English Phrase is, They are good for no­thing.

There are two general Uses by which all Things have a Value: They are either use­ful to supply the Wants of the Body, or the Wants of the Mind.

Things that have a Value from being ne­cessary to supply the Wants of the Body, are all such Things as are useful to support Life, such as all sorts of Food and Physick.

Things that have their Value by being useful to supply the Wants of the Mind, are all such Things that satisfy Desire, (Desire implies Want; it is the Appetite of the Mind, and as natural as Hunger to the Body:) such are all those Things that are any ways useful [Page 3] to satisfy the Mind, by contributing to the Ease, Pleasure, or Pomp of Life.

By supplying these two general Wants, all sorts of Things have a Value: But the greatest Number of them have their Value from supplying the Wants of the Mind; and Things of the greatest Value are used, to set orth the Pomp of Life; such as all sorts of fine Draperies, Gold; Silver, Pearl, Diamonds, and all sorts of precious Stones. They are used to adorn and deck the Body. They are Badges of Riches, and serve to make distin­ction of Preference amongst men.

These two general Wants Mankind is born with, and they are so natural to him, that he is better distinguished by what he wants, than what he enjoys. A Poor Man wants a Pound, a Rich Man an Hundred, others Thousands, and a Prince Hundreds of Thou­sands. Desire and Wants increase with Riches. And from thence it is, that the Con­tented Man is the only Rich Man, because he wants nothing.

Things that supply the Wants of the Bo­dy, and support Life, may be accounted to have a real and natural value: They are at all times and in all places of value; and if any things could have an Intrinsick Value in them­selves, they would be Cattel and Corn; and therefore in Ancient times the computation of [Page 4] Riches was by the number of Cattel, ac­cording to the saying, Pauperis est numerare pecus.

Some are of an opinion, that there is a re­al Intrinsick value in Gold and Silver, and that they are only to be accounted Riches or Treasure.

This, it seems, has been an ancient opi­nion, which Ovid endeavours to con­fute by the Story of Midas. For Bacchus be­ing entertained by Midas at a Feast, told him, in requital, he would give him whatsoever he should desire; and being of an opinion that Gold was the only Riches, desir'd that whatsoever he touch'd might be turn'd into Gold. His request was granted, with which he was very well pleased; but being hungry, was convinc'd of his Mistake: For as soon as he touch'd his Wine and Meat, they turn'd into Gold; and Midas had been starv'd, had not Bacchus for his kind entertainment sent him to a River to wash in, and gave him leave to change his Gold for Water, after he had experienc'd that Water was of more va­lue to quench his thirst than Gold.

Things that supply the wants of the Mind, have only an Imaginary or Artificial Value, which depends only on opinion, and change their Values according to the Humor and Fancy of the persons that use them; and [Page 5] are like rich Apparel, that lose their Va­lue because they are out of fashion.

It is the occasion and usefulness of things that creates the Value of them: And it is the Plenty or Scarcity of things, in respect of their occasion or use, that makes them of greater or lesser Value: Plenty makes things Cheap, and Scarcity Dear.

By this rule the Value of all things is go­verned; because the Value of things depend­ing only on their use, if there be more than can be used, the remainder can be of no Use, and so of no Value. For the two common wants of the Body and Mind being either for Food or Ornament; those Commodities that are for Food are perishable, and if not us'd in time, are lost and good for nothing; and those Commodities that are for Ornament, Plenty making them common and cheap, lose their use, and from thence their Va­lue.

Rarity and Scarcity are the chief reasons for the value of those things that are us'd for Ornament, and not for any excellent quality in the things themselves. That's the reason that a Bracelet of Glass-Beads is of more va­lue in Guiney than a Bracelet of Gold; because it is there more rare, those people being not acquainted with the Art of making Glass, and having more plenty of Gold than Glass; [Page 6] and by the same reason, Knives, and things made of Iron and Steel are of more value in those Countries where there are no Iron-Mines, and have plenty of Silver-Mines: And if the value of things were to arise from the Qualities that belong to them, those Things that are made of Iron and Steel, ought to have a greater Value than those that are made of Silver, because they are much more useful.

There is nothing that troubles this Con­troversy more, than for want of distinguish­ing betwixt Value and Vertue.

Value is only the Price of Things: That can never be certain, because it must be then at all times, and in all places, of the same Value; therefore nothing can have an In­trinsick Value.

But Things have an Intrinsick Vertue in themselves, which in all places have the same Vertue; as the Loadstone to attract Iron, and the several qualities that belong to Herbs, and Drugs, some Purgative, some Diuretical, &c. But these things, though they may have great Virtues, may be of small or no Value or Price, according to the place where they are plenty or scarce; as the Red-Nettle, though it be of excellent Virtue to stop Bleeding, yet here it is a Weed of no Value from its plenty: And so are Spices [Page 7] and Drugs in their own Native soil of no va­lue, but as common Shrubs and Weeds; but with us of great Value, and yet in both pla­ces of the same Excellent Intrinsick Ver­tues.

Things common have no Value: For no Man will pay for that which he may have for gathering.

The Plenty of one Commodity do's not alter the Value of another, unless it be for the same use. Plenty of Iron or Lead will not make either Corn or Cloth cheaper or dearer, because Iron or Lead can neither sup­ply the want of Food or Clothing.

Gold and Silver are Commodities as well as Lead or Iron; and according to their Plenty or Scarcity will make those things that are made of them Dearer or Cheaper; to wit, Gold and Silver-Plate, Lace, &c. but they cannot make Corn, Cloth, Lead, or Iron Dearer or Cheaper, because they cannot supply the uses of those Commodities.

There is no difference or distinction in things of equal Value: That is, one Com­modity is as good as another that's of the same Value. An Hundred Pounds worth of Lead or Iron, is of as great a value as an Hundred Pounds worth of Silver or Gold: And an Hundred Pounds worth of course Cloth is of as great a value as an Hundred Pounds worth [Page 8] of fine. The Man is as Rich that has an Hundred Pounds worth of Corn or Cattel, as he that has an Hundred Pounds in Money by him, for his Corn and his Cattel may be soon turn'd into so much Money: And the Merchant and Trader are always changing their Money for Commodities, because they can get more by them than by Money; ei­ther by Transporting of them where such Commodities are most scarce, or else by changing the shapes of them, by which they are made more Useful, and thereby of more Value.

Now if the Value of all things arise from their use: If Plenty or Scarcity makes things Dear or Cheap: If Silver be a Commodity for several uses, and more plentiful in some places than in others; then it must necessarily follow, that Silver can have no Certain or In­trinsick Value, and if Silver be of an uncer­tain Value, then it can never be the Instru­ment of Commerce and Traffick: For, that which it uncertain in its own Value, can ne­ver be a certain Measure of another Va­lue.

Mr. Lock agrees this Consequence, and in Page 21 allows Gold, and Lead, and other Metals to be Commodities of uncertain va­lues, [Page 9] and therefore cannot be the Measure of another value; but it do's not appear to me why he has separated Silver from Gold, which in all Discourses us'd to go together; or why that should not be a Commodity as well as other Metals, which, had he pleas'd to have allow'd, would have much shorten'd the Debate.

What Mr. Lock means when he says that the Intrinsick Value of Silver is the Estimate that common consent hath placed on it, I do not well understand, therefore must be excused if I do not well answer it. If he means that the Estimate that Common consent hath placed on Sil­ver, that Mankind have agreed to set a cer­tain and fixt Price upon Silver; he ought to have given account how and when they made such agreement; I must confess I never hear'd of any; if there was any such, it must be lately: For there is no Goldsmith that has been any considerable time at his Trade, but has bought the same Sterling Silver for Four Shillings Eight pence, Four and Ten pence, and Five Shillings per Ounce, for which he has given Five and Eight pence, Five and Ten pence, and Six shillings per Ounce.

If he means by the Estimate that Common con­sent hath placed on Silver, That all Governments [Page 10] have agreed to make their Silver Monies equal both for Weight and Fineness, that too will prove a mistake. For the Silver Coins in all Governments in Europe have been at one time or other raised and alter'd; and they never did agree in equal Quantities of fine Silver, as will be shown in the Discourse of Money, and the Par of the several Coins.

That which I have endeavour'd to prove in this Discourse, of Riches, and the Value of Things, are these Five several Maxims, which I have here set together, because I shall have occasion to make use of them hereafter. viz.

• 1. That nothing has a Price or Value in it self.
• 2. That the Price or Value of every thing arises from the occasion or use for it.
• 3. That Plenty and Scarcity, in respect to their occasion, makes things of greater or lesser Value.
• 4. That the Plenty or Scarcity of one Com­modity do's not alter the Prices of other Commodities which are not for the same uses.
• [Page 11]5. That in Trade and Commerce there is no difference in Commodities when their Values are equal; that is, Twenty shil­lings worth of Lead or Iron to some Merchants is the same as Twenty shil­lings in Silver or Gold.

Of Money, and the Par of the several Coins.

MR. Lock says, pag: 22. That Money dif­fers from Vncoin'd Silver only in this, That the Quantity of Silver in each piece of Mo­ney, is ascertain'd by the Stamp it bears; which is set there, to be a Publick Voucher of its Weight and Fineness.

That it is the Quantity of Silver Mankind give or take, or contract for, that they estimate the value of other things, and satisfy for them; and thus by its Quantity, Silver becomes the Measure of Commerce.

The Question betwixt us here will be, Whether Money has its sole Value from the Quantity of Silver in each piece of Coin? Or whether Money has not some Value from the Authority of the Government where it is Coin'd, above the Value of the Silver in each piece?

[Page 13]For the better answering this Question, it will be necessary to discourse in general of Money, and the Par of the several Coins.

Money is a Value given to a piece of Metal by the Stamp of Publick Authority, which is commonly greater than the Value of the Metal that bears the Impression.

The Value of each piece of Money is known by the difference of the Stamp, Size and Colour of the piece.

Money is commonly made of some Metal, but it is more for conveniency, than of abso­lute necessity. For the Value arising from Publick Authority, it may as well be set to any thing else that is as convenient, and can be as well preserv'd from being counterfeited. For in several Countries Money is not made of Metals; as in some parts of Guiney Mo­ney is made of Shells. And Mr. Lock ob­serves, in India Money is by Yards of Wam­pompeak. And in England it was formerly made of Leather, and from thence came the Name of a Hide of Land, which did as well describe the value of Land, now to say ten, twenty, or a hundred pounds worth of Land.

In ancient times, in the most civiliz'd parts of the world, the Money was made of Cop­per or Brass.

It was Four hundred eighty four years before the Romans had any Silver Money, and [Page 14] Sixty two years after, before they had any Money made of Gold. And had but very little of either, till they had greatly enlarg'd their Empire. And from the Spoils of those conquer'd rich Cities, Carthage, Athens, and Alexandria, brought a greater plenty of Sil­ver and Gold into their Exchequer. And it always continued scarce in Europe, till the discovery of the West-Indies.

There are now in most Countries of Eu­rope three sorts of Money, Copper, Gold, and Silver Money, and they are of equal Value, according to what they are stamp'd at. The Farthings of England, the Duyts of Hol­land, the Deniers of France, the Reas of Por­tugal, and the Malvedies of Spain, &c. do buy and pay for all sorts of Commodities, as well as the Money that is made of Silver or Gold. And the Merchants both in their Bills of Exchange, and in their Accompts, do as often reckon by the Copper Money, as by the Silver Money. And the Computation of the Silver Money is often made from the Value of the Copper Money; as in Portugal, the Merchant does often draw his Bills of Exchange to be paid in Rials of Four hun­dred Reas, or Four hundred and fifty Reas.

And so in Spain, he draws his Bill to be paid in Rials of Three hundred seventy two Malvedies, or more, according to the rise of the Exchange. And in Holland some [Page 15] Merchants draw their Bills to be paid by Groats, which is a base Money, as well as others do to be paid by Shillings.

For the Value of Money arising from the Authority of the Government, if the Au­thority be the same, the Value of the Cop­per, Silver, or Gold money, must be the same in proportion to what they are set at: And Copper being a Metal of lesser Value than either Gold or Silver, is much better to make small money of, because the pieces are there­by made larger and fitter for use and hand­ling.

There are more Bargains made with Cop­per Money then either with Silver or Gold: For those Commodities that are bought in great parcels are sold by retail in small par­cels for common use; and for one Bargain made with Silver or Gold Money, there are ten made with Copper Money. Five or Ten Quarter of Wheat which may cost Five or Ten Pound in Silver Money at one Bargain, is divided into Twopeny▪ Peny, and Halfpeny Loaves, and afterwards bought perhaps by a Hundred persons, and paid for by the Cop­per Money of the Countrey: And there are but few Bargains that can be made without the use of some Copper Money to make the Sum even. All Sums here in England between Sixpence and Twelvepence are made up with Farthings and Halfpence.

[Page 16]This shews Mr. Lock's mistake, where he says, That 'tis by the Quantity of Silver men give or take, or contract for, that they Estimate the Value of other things, and satisfy for them, &c.

For the Baker, the Grocer, the Coffee-man, and all the Retailers, sell great quanti­ties of Goods for the Copper Money wherein there is not one grain of Silver, and yet they are as well paid and satisfied for their Goods with such Money, as the Farmer or Merchant of whom they first bought those Goods are with the Silver Money. For the Copper Money may be Coin'd as near to the Value of the Copper, as the Silver or Gold Money may be to the Value of the Silver or Gold; and the Authority of the Go­vernment that makes them all current being the same, all sorts of Money must be of an equal Value according to what they are Stamp'd at.

For the nature of the Metals can make no difference if the Values be equal: That be­ing done only by proportioning the quantities of the Metals in each piece of Money to their different Values: For instance, supposing Cop­per to be at Twelvepence a pound, and Sil­ver to be at Three pound per pound, an Ounce of Silver, which is Five Shillings, is equal to Five pound of Copper: And there being Threescore pence in Five Shillings, and Threescore Ounces in Five pound, an Ounce [Page 17] of Copper being a piece of money about the bigness of a Crown in Silver, is equal to the value of a Penny in Silver; and an Half-penny being half an Ounce, and of the size of Half-acrown, is equal to an Half-penny in Silver.

If it had been the Quantity of Silver that Men take, and contract for, Men would have made their Bargains by the weight of Silver, and not by the tale of money: For Silver is as well divided for Traffick by weight, as money is divided by number, and there would be no occasion for Coining. For it is as easy in making of a Bargain, when the Question is ask'd, What shall I give? or what will you take for such and such Com­modities? to say, I will give or take so many Grains, Penny-weight, Ounces, or Pounds of Silver; as to say, that I'll give or take so many Pounds, Shillings, Pence, or Half-pence.

But Silver being a Commodity for other Uses besides the making of money, and ac­cording to the Plenty or, Scarcity to supply those Occasions is dearer or cheaper; there­fore money was invented, which by Publick Authority sets and fixeth a certain value to each piece of money; and it is that which men give and take by tale and number of the pieces, in exchange for all other Commodi­ties, without regarding the weight and quan­tity [Page 18] of Silver in each piece. And if a man should offer to buy Goods in the Market, by saying, I'll give so many Grains, Ounces, or Pounds of Silver; he would be presently ask'd, What is Silver worth an Ounce? and would be no more understood by Mr. Lock's answer, That an Ounce of Silver is worth an Ounce of Silver, than if a Country-man in a market being ask'd, What is Corn worth a Bushel? should say, 'Tis worth a Bushel of Corn.

And yet if Mr. Lock's definition of money be true, That it differs from uncoin'd Silver only in this, That the Quantity of Silver in each piece of money, is ascertain'd by the Stamp it bears, which is set there to be a Publick Voucher of its weight and fineness; there can be no other Answer given to know the value of Silver by. For if the Stamp to a Crown-piece, which is an Ounce of Silver, be set only to describe its weight and fineness; if any man be ask'd the Question, What Silver is worth? he can mean no more when he says, 'Tis worth a Crown an Ounce, than that an Ounce of Silver is worth an Ounce of Silver: so that by his description of mo­ney, no man can describe the value of Silver.

But that Mr. Lock is mistaken in his defi­nition of money, will appear more plainly, by discoursing of the Par of the several Coins.

[Page 19] He says, That the Par of Monies is certain number of pieces of the Coin of one Country, con­taining an equal Quantity of Silver in another number of pieces of the Coin of another Coun­try.

This is a general Opinion, and therefore it is no wonder to find it here asserted by a Gentleman who, I suppose▪ is only acquainted with the Speculation and Theory of Foreign Coins; when many Merchants and Traders, whose business it has been to know the pra­ctick part, and the difference of the value of the several Coins, are of the same Opi­nion.

And yet if it be but consider'd, it will be found to be a vulgar Error; and that the Par of money is made, by computing the Valuation that the several Governments set on their Coins; which is not from the equal Quantity of Silver in each piece of money. For there is scarce two Mints that agree in the Standards of their Coin. The Standard of Spain is Eleven Ounces Four-penny weight fine, in a Pound Troy. Mexico Eleven Ounces Three-penny weight, Ten Grains. England Eleven Oun­ces Two-penny weight. France Ten Ounces Ten-penny weight. Holland Nine Ounces. And the same difference might be observ'd in all the other Mints of Europe.

[Page 20]Besides, The Pound Troy is divided into a number of pieces differing in their weight, and that no two Mints divide their money alike. That in most pieces of money the very Grains of Silver are divided, in some a tenth, thirteenth, fifteenth, twentieth part of a Grain and more; and that there is scarce any one piece of money without Fra­ctions of Grains of Silver: so that in those very Coins that are nearest in value by com­putation, it will be found altogether impra­cticable for any Merchant to keep an account of the Par of the several Coins, by the quan­tity of Silver in each piece of money.

It would puzzle a good Arithmetician to state the difference of the Grains of Silver in those pieces that seem most to agree; as to Instance:

It is no easy matter to number the dif­ference of Grains betwixt those Pieces of Eight, that of Mexico and Spain, with the Pound Troy, being both divided into thirteen pieces and an half.

It is much more difficult to examine the difference of the grains of silver in such pieces, as the Sixpence of England, the Riall of Spain, the Shilling of Holland, with other Coins about that value. But if the difference of the Grains, with the innumerable Fractions of Grains be examin'd in the Stivers of the Low-Coun­tries, the Souz of France, the Crutizes of Germany, [Page 21] with the Silver Pence of England, and the rest of the small Silver monies of other Coun­tries, it will be found almost impossible for the Merchant or any one else to keep an ac­count of the quantity of Silver in each piece of Coin.

This difference in the Standards of the several Mints, and in the unequal division of their money, shews plainly that there is no common agreement about the quantity of Silver in their Coins, and that Mr. Lock is mistaken if this be his meaning of the Intrin­sick Value of Silver, by the Estimate which com­mon consent hath placed on it, by the quantity of Silver in their Coins.

If the measure of Commerce and Traffick were by the Quantity of Silver in the Coin, the Governments would certainly have a­greed to have made their money of fine Sil­ver without any Allay, and to have divided it into pieces of equal weight; or, if it had been necessary, to have put in some Allay, that the money might bear the impression the better, which is the Reason that Mr. Lock gives for doing it; all the Mints by this time would have certainly found out and agreed in that proportion which is most con­venient for that purpose, or at least the greatest number of them. And therefore I cannot agree to his Reason for putting in an Allay; and the rather, because I have seen [Page 22] some Medals made of fine Silver that have bore the impression very well, and look'd more beautiful than the Stamp of any New-coin'd money. And anciently in Eng­land, from Osbright the Saxon King, to Ed­ward III. the money was without any Allay. And the Coin of the Great Mogul is now made of all fine Silver, and bears the Stamp very well.

Besides, It seems to be the only Reason for making the money of such different Al­lays, that the quantity of Silver in each piece, and the mystery of the Mint, might not be easily discovered, and the money not be va­lued after the price of Bullion, and thereby prevent the Merchants, and those that deal in Bullion, from buying and selling the Coin, and melting it down upon a sudden rise of Bullion. And this might reasonably be thought a way to prevent it, because the knowledge of the different Allays▪ and fine­ness of Gold and Silver, is a mystery that belongs only to a small number of men that deal in it; who are either Moniers that be­long to Mints, or Goldsmiths that serve an Apprenticeship to acquire skill in it; and yet, perhaps, not all of those acquainted with the Chymical part of the mystery▪ the know­ledge of refining and essaying of Silver and Gold; but content themselves to judge of the difference of the fineness of the several [Page 23] Coins by the Touchstone, and colour of the Metal.

And it will yet more plainly appear, That men do not buy and sell by the quantity of Silver in the Coin, if it be consider'd, that the Merchants and Traders buy and sell all their Commodities by weight or measure, and often make their Contracts by the price of what one Yard, or one Pound will a­mount to; which price is generally for an odd sum of money, as Two-pence-farthing, Three-pence-farthing, Half-penny▪ Three Farthings, &c. And that the loss of a Far­thing in the Pound or Yard by the Par of the money, if they were to buy or sell by the quantity of Silver, would make a great alte­ration in the profit of the Bargain in a great sum, and much greater in the making of many Bargains, and a continued Trade; since it appears that there is no money with­out fractions in the grains of Silver.

Besides, It is no advantage to a Merchant to make a computation of the quantity of Silver in the several Foreign Coins: For he always makes up the Accompt of the Profit or Loss, by the mony of the Country where he lives; and there can be no Accompt made up, till the effects of his Commodi­ties, which he sends out, are return'd. And if his Goods are sold by money not of the same Par to the Coin of his own Country, [Page 24] yet if such money buys the same quantity of Goods as the Coin of his own Country would do, it will be the same thing to him as if the money was Par, and that there was an equal quantity of Silver in the money that bought those Goods. For Instance: If an English Merchant sends into Portugal so many Serges, or other Commodities, as cost him here an hundred pounds, and they should be sold for the Reas, which is the Copper mo­ney of that Country, or other Coin of un­equal Par; and with that money Portugal Wines are bought, and sent over into England: The Merchant makes up the Accompt when the Wines are sold, and if they produce him an hundred and twenty pounds clear of all charge, he gets twenty pound by the return. And 'tis to no purpose for him to take an Accompt of the difference of the Par be­twixt the Portugal and English Coin, or whether his Goods were sold for Copper or Silver money.

If the Par of monies was to be reckon'd by the Quantity of Silver in each piece, and that men made their Bargains only for the quantity of Silver, to what purpose is there any Copper money coin'd? which, reckoning one Country with another, is a third part of all the money in Europe.

It's true, Mr. Lock will not allow any other but Silver money to be the measure of [Page 25] Commerce and Traffick; and refuseth Gold and all other Metals, because he allows them to be Commodities which rise and fall in their Value, and therefore not fit to make Money of. This is grounded upon the sup­position, that there is an Intrinsick Value in Sil­ver, and therefore do's not alter its Price. As to the Intrinsick I have already answer'd; and as to that, whether Gold and Copper are not as fit to make Money of as Silver, I'll leave it to those that continually take them in Pay­ments, to give a reason why they take such Money, if they did not think the Value of them to be as good as the Silver Money.

Money at all times, and in all places, has been made of Copper and Gold: And if they should not be allow'd as Money, there would not be enough left to carry on Com­merce and Traffick.

'Tis the Publick Authority upon the Metal that makes it Money; and without such Au­thority, Silver would no more pass for Money than Gold. There can't be a plainer demon­stration of this, than by what appears since the Parliament has been debating about New Coining of the Money, and setling the Value of the Guineas: For, before their meeting, the Clipt Money pass'd currant, as if it were Unclipt. But their Considerations about calling of it in, presently put a stop to the [Page 26] currancy of it; because, by their Debates, the Value of it was made uncertain, and no man knew where the Loss would fall. And the same may be observ'd from their Debates about setling the price of Guineas; For Guineas, before their meeting, went currant at Thirty shilings; but, upon the House of Commons voting that they should not ex­ceed Eight and twenty, every man present­ly refus'd to take 'em for more. And upon another resolution, That they should not ex­ceed Six and twenty, and not declaring at what price they should be currant, no man since will take them for more than Six and twenty, most refuse to take 'em at so much, and some refuse the taking of 'em at any price: So that Silver would no more pass for Money than Gold, unless the price of each piece were fixt by Publick Authority.

The Argument that has been us'd to shew that 'tis impracticable to make up the Rar of the Coins from the quantity of Money in each piece, because of the great difference in the Standard; the unequal division of the Mo­ney, and the Infinite number of fractions in the quantity of Silver in every piece, is of use to prove that the Par of Monies is from the Valuation that each Government sets up­on their Coin: Or else there could be no Bargain made upon an equal foot, there being [Page 27] such a certain difference in the Quantity of the Silver in the several Coins, which could never be remedied unless publick Authority had fixt the Value to their Money, by which all those Fractions and Inequalities in the se­veral Coins are even'd. And one piece of Money is as good as another in the Countrey where each piece is Coin'd according to the Valuation that is set upon it, which is describ'd by the Stamp and Size of the piece, tho' they differ greatly in the Quantity of Silver.

Now if it be true in it self, That nothing has a Value or Price: That the Value of all things arises from their Use, it will be no strange Consequence that Money should have a Value, from the great use of it, above the price of Bullion, or the Metal that bears the Impression: And that the Government should have power to set and fix a Value or Price up­on their Money, as well as the Merchant and Trader upon their Goods and Wares: And that 'tis as reasonable to allow the Govern­ment some Value for their Stamp upon their Money above the price of the Metal, as to pay the Goldsmiths for the Fashion of their Plate, or the Ingraver or Carver for the Impression on his Medal. And why should it seem so strange that a new piece of Coin should have a Value above the price of the Metal, which [Page 28] is seldom above Sixpence or Eight pence in Five shillings, being not above a Tenth part more than the Value of the Metal, when an old piece of Coin grown scarce, is seldom less than double the Value; and some of them exceed ten, twenty, and a hundred times the Value of the Metal. A Mill'd Crown of Oliver's is now worth Twenty shillings to be sold; and an Otbo's Head, and some other Roman Coins, are worth a hundred times the Value of the Metal that bears the Impres­sion.

Besides, there is a greater reason for the Value of the Money; because by the Autho­rity of the Government it is made current and lawful Money, and every body is ob­lig'd to take it; and therefore no person can be a loser by taking of it, because another person is to take it of him again for the same Value.

The Stamp upon the Money is the Seal of the Government; so that if there was not a Law to make it current, and had only the King's Seal or Stamp upon it, it ought ra­ther to have a better, or at least the same Va­lue as a Bank Note, or any Private Person's Bond or Seal; which only shews, that the person whose Note or Seal it is, is oblig'd to pay or exchange it. And it there were no other obligation from the King's Stamp than [Page 29] to show that the King would take it in his Re­venue, it would give it a sufficient currency, tho' there were no Law to make it cur­rent.

It is the currancy of the Coin that all men regard more than the quantity of the Siver in it: For the difference of the Fineness of the Silver, and the number of the grains in each piece of Silver, few persons are acquainted with. Not one in a thousand can tell how many grains of fine Silver there are in a Crown, Halscrown, Shilling, or Sixpence. Therefore, to what purpose should the Stamp be set to be a Voucher to the Weight and Fineness, as Mr. Locke affirms, which no per­son inquires after or desires to know. 'Tis the Currant and Lawful Money of England that men contract for, and oblige themselves in their Bonds to pay; and if it were the quantity of Silver in the Money that men re­garded, they certainly would express it in their Bonds and Contracts; and have faid Currant and Lawful Money contain­ing so many Ounces and Grains of fine Silver. For, Money do's wear and grow lighter by often telling over; so that if it were true, that 'tis the quantity of Silver in the Money that men give, take, and contract for in exchange for all other Commodities, they ought to make their Bargains to be paid in Money Coin'd such [Page 30] and such a year, and so set the Price of their Goods according to the Date of the year the Money was Coin'd in: Or else they will lose more by the difference in the quantity of Silver, by the age and wearing of the Money, than the profit by the Goods amounts to. For 'tis very plain, that the old Unclipp'd Broad Money of England is worn Ten per Cent. lighter than the new-Mill'd Mo­ney: So that is the quantity of the Silver in the Money were to be regarded, it would make Ten per Cent. difference in the profit of the Bargain. And yet no man will deny, but that the Broad Unclipp'd Money will buy as many Goods of the same Value, as the New-mill'd Money will do: And that all Bonds and Contracts are as well paid and satisfied by such old Money, as by the new.

It is the Denomination and Currency of the Money that men regard in Bargaining, and not the quantity of Silver: For in all parts of Europe men buy and sell by the Deno­mination of several sorts of Money, both of Gold and Silver, that were formerly currant, but now out of Use, and not in being: As by several sorts of Dollars, Guilder-Pieces, Florens, Marks, Nobles, and Groats of England, &c. For when Prin­ces are forced by the rise of Bullion to raise their Coin and make their Money lighter, [Page 31] they often change the Denomination; and yet men keep their custom of making their Bargains by the old Weighty Money, and pay for their Goods by the New-coin'd lighter Money. As to instance; in many Countries here in England, they buy and sell their Cat­tel by Groats and Nobles, which was the currant Money, and way of reckoning till Edward the VIth's days; there being till then, very little other Silver Money Coin'd but Groats, and they were double the weight in proportion to what the Money is now Coin'd at. And yet in paying and receiving they expect no more than to be paid by the now current Money, though the quantity of Silver be much less in this Money.

The Judges in setting their Fines com­monly use the old Denomination of a Mark, which is the name of the Weight of Gold and Silver in most places of Europe, contains Eight Ounces of the pound Troy; and in Edward the Third's time, when our pound Sterling weigh'd a pound Troy, a Mark was a common name in payment, which then contain'd Eight Ounces of Silver; and yet the Judges by their Fine, intend no more than that it should be paid by the Current Money now in being, which is two Thirds of a pound Sterling by tale, and not two Thirds of a pound Troy by Weight, as the [Page 32] Mark signifi'd when first in Use, which would now amount to Forty shillings by Tale, instead of Thirteen and Four pence; which shews that Money is paid by a compu­ted Valuation, and not by the quantity of Silver in it.

The same may be observ'd in examining the Par of the several Coins; and that the Par of Money is made solely by the Valuation of the Coin according to what it is current at, and not from the quantity of Silver in each piece. In the Reign of Queen Elizabeth, Anno 1586. there was a Par of Monies agreed on betwixt the Earl of Essex, and the States of the Uni­ted Provinces; which was, That Three and thirty of their shillings and Four Stivers, should be equal to our Twenty shillings, an English shilling being then valu'd at 10 Stivers. And if any person will examine the quantity of Silver in this Par, they will find that there is more Silver in our Twenty shillings, than in Eight and Thirty shillings of their Money. In the year 1622, the States set out a Pla­cate, wherein they prohibited all Foreign Coins to pass, except what were nam'd in that Ordinance of the States, according to the Valuation there express'd, The English shillings was one of the Foreign Coins that was allow'd to be there current, which was to pass for Ten Stivers and an half; so [Page 33] that by this second Valuation of our English Money, they allow'd the Par of our Twen­ty shillings, to be equal to Five and Thirty shillings two Stivers of their Money; and yet our shilling was made lighter betwixt the first time of the Valuation and the second, by Two shillings in Three pounds. The French Crown, which us'd to pass for Five and fifty Stivers, is now current in Flanders for Seven and fifty Stivers, since the French have rais'd the Value of their Money; though there is no more Silver in the Crown-piece than there was before; which shews plainly that the Par of Monies is a computed Valuation, and not from the quantity of Silver in each piece of Coin.

There is a Par betwixt the Monies made of Gold and Silver: That likewise is uncertain, and depends somewhat upon the Valuation of the Money; but because Gold is a Commodity of great Value, the Gold Money is generally Coin'd nearer to the Market-price of Gold, than the Silver Money is to the Silver; and therefore the Gold Money is often weigh'd, because the difference of a grain or two greatly alters the Value of the Piece of Mo­ney.

To shew what the Par is betwixt Gold and Silver, will be more proper in the Dis­course [Page 34] of raising the Coin; therefore I shall conclude this Debate of money, and the Par of money, and submit the Question betwixt us to consideration upon the Arguments that have been us'd to prove, That Money has some Valuation from the Authority of the Government where 'tis Coin'd, and not its sole Value from the quantity of Silver in each piece.

That men regard the Currency and Stamp of the Coin, and take it more upon the account that it will pass again for the same value to another, than for the quantity of Silver in each piece.

And not as Mr. Lock has asserted; that is,

That the Stamp upon the Money is set there only to be a Publick Voucher of its weight and fineness.

That in buying and selling, 'tis the quantity of Silver that men give or take, or contract for, that they estimate the value of other things, and satisfy for them; and thus by its quantity, Sil­ver becomes the measure of Commerce.

Of the Balance of Trade, and Foreign Exchange.

THE Balance of Trade, is us'd by Mr. Lock as an Argument against raising the Value of the Money; because the Balance of all Foreign Accompts, as he supposes, are paid in Money, which must be sent out to balance the Accompt; and let the Value of it be what it will that is set upon the Money, it will go for no more in Foreign Countries, than according to the quantity of Silver that is in it.

This is a very popular Notion, and gene­rally believ'd; yet if it be consider'd, it will be found to be a mistake, and that there is no such Usage as Balancing the Foreign Accompts of Merchants, by the Money of a Foreign Na­tion: But, if there were such an Usage, 'tis the greatest Argument for raising the Value of the Money.

That which is commonly meant by the Balance of Trade, is the equal importing of [Page 36] Foreign Commodities, with the exporting of the Native. And they reckon that Nation has the advantage in the Balance of Trade, that exports more of the Native Commo­dities, and imports less of the Foreign. And the reason that is given for it is, That if the Native Commodities be of a greater Value that are exported, the Balance of that Ac­compt must be made up in Bullion or Money; and the Nation grows so much richer, as the Balance of that Account amounts to.

This Opinion is grounded upon this Sup­position, That Gold and Silver are the only Riches.

Some men lay so great a stress about the enquiring into this Balance, that they are of Opinion, That a Trading Nation may be ru­in'd and undone, if there been't Care taken, by Laws, to regulate the Balance. And yet there is nothing so difficult, as to find out the Balance of Trade in any Nation; or to know whether there ever was, or can be such a thing as the making up the Balance of Trade betwixt one Nation and another; or to prove, if it could be found out, that there is any thing got or lost by the Ba­lance.

For a Nation, as a Nation, never Trades; 'tis only the Inhabitants and Subjects of each Nation that Trade: And there are no set days or times for making up of a general [Page 37] Accompt, every Merchant makes up his own private Accompt; and that's not done at any set time, one Merchant makes it up one week, and another in another week; so that there can be no set time when to begin that Balance.

Therefore those that rely so much upon finding out the Balance of Trade, do it by taking the Computation from the Trade of several years of one Nation with another, and think it may be done by examining the Accompt of the Custom-House Books, and us'd to give for Instance the French Trade; because the Revenue that arose from those Duties on French Wines, and other Commo­dities that were imported, were so much greater than the Duties on those Goods that were sent into France, and therefore us'd to cry out very much against the French Trade: Tho', perhaps, if that were throughly con­sider'd, the French Trade was as profitable to the Nation as any other Foreign Trade; which might be made to appear, if it were proper for this Debate.

But to make up the Balance of Trade by the Custom-House Books, is a very uncertain way of reckoning: For all Foreign Goods that are imported, pay a greater Duty than the Native Goods exported. 'Tis the In­terest of all Trading Nations to lay easy Customs (if any) upon their Native Com­modities, [Page 38] that they may be sent cheap to Foreign Markets, and thereby encourage both the making and exporting of them: And to lay high Duties upon Foreign Wares, that they might be dear, and so not lessen by their cheapness the consumption of the Native Commodities: So that there can be no Computation of the Balance of Trade from the difference of the Sum of Money that's paid at the Custom-House for the Fo­reign Goods imported, and the Native ex­ported.

But suppose there should be an Allowance made, in casting up the Accompt, for the greatness of the Duties that the Foreign Goods pay more than the Native, yet that can be no advantage in the discovering the Balance of Trade; because they cannot dis­cover by the Custom-House Books, what the Native Goods that are exported are sold for: For the Balance of the Trade must arise from the Value of the Goods that are sold, and not from the Quantity that are exported or imported. And that's known only to the Merchant that sells the Goods, and 'tis not for his Interest to acquaint others with it, and thereby discover the Profits of his Trade: So that there can be no finding out the Balance of Trade by the Custom-House Books.

[Page 39]Some are of the opinion, that the way to find out the Balance of Trade, is by the Foreign Exchange. And they reckon that if the Ex­change run high upon a Nation, 'tis a sign that there are more Foreign Goods imported, than there are of the Native exported; and therefore there are Bills of Exchange drawn to answer the Effects, and make up the dif­ference in the Value of what the Native Goods were sold for less than the Foreign. This seems to be the nearest way of guessing of the Balance of the Trade of a Nation; but this is altogether as uncertain.

For Exchanges rise and fall every week, and at some particular times in the year run high against a Nation, and at other times run as high on the contrary. As against a Vin­tage, a great Mart, or some Publick Sale, the Exchange may run higher to Bourdeaux, Franc­fort, or Holland, upon an East-India Sale: And at other times the Exchange may have run to the same places as much on the contrary; for no Exchange can constantly run high against a Nation; for then the Merchants that trade to that Country, must always lose by their Trade: For if the Goods that they export, don't yield them as much profit as the Goods they import, they must lose by the Return. And it cannot be suppos'd that Merchants will always Trade to a Country, where they must always lose by Trading; therefore there [Page 40] can be no account of the Balance of Trade by Foreign Exchange.

As to the rise of the Exchange betwixt Holland and England, that's not to be reck­on'd as a Rule, because of the extraordinary charge of the War at this time.

But if there could be an account taken of the Balance of Trade, I can't see where the advantage of it could be. For the reason that's given for it, That the Overplus is paid in Bullion, and the Nation grows so much the richer, because the Balance is made up in Bullion, is altogether a mistake: For Gold and Sil­ver are but Commodities; and one sort of Commodity is as good as another, so it be of the same value. An hundred pounds worth of Copper is as good to a Merchant, as if he imported an hundred pounds worth of Silver, and he may get as much by it. Besides, some Countries have no Gold and Silver, and yet the Trade to these Countries may be as profitable to the Merchant and Nation, as to the other Countries from whence they fetch the Gold and Silver; as the Trade to Denmark and Sueden, and the Northern parts of the World, from whence they fetch Pitch, Tar, Hemp, and Timber, is as profitable to England, as the Trade to Spain, from whence the Merchant fetches the Bullion; tho' those very Goods, Pitch, Tar, Hemp, &c. are bought, for the most part, [Page 41] with the Bullion that's brought from Spain: For all Merchants get by their Trade; and if they grow rich, the Nation thrives.

For a Nation grows rich, by the Inhabi­tants growing rich. Besides, those Goods, Pitch, Tar, and Hemp, are more profitable Commodities to England, than Bullion; be­cause they are Materials for the building of Ships, and employ more hands in the work­ing of them after they are imported, than Bullion does.

And the only way to know what sort of Goods and Trade are most profitable to a Nation, is by examining which sort of Goods employ most hands by importing and manu­facturing. For every man that works, is paid for his time; and the more there are employ'd in a Nation, the richer the Nation grows: And therefore the importing of unwrought Goods, such as Flax, Raw-silk, Cottons, &c. and all sorts of bulky and weighty Goods, such as Wine, Pitch, Tar, &c. are more profitable to a Nation, than Wrought-silks, Linnens or Callicoes; or Gold, Silver, and Goods of little Bulk in re­spect to their weight: Because the Nation gets the profit by the making of the Raw­silk, Flax and Cottons into Wrought silks, Linnen, and all such things as are made of of Cotton. And by the bulky Goods, a great profit from their Freight. But this [Page 42] Rule all Trading Nations are acquainted with, and therefore lay high Duties upon all manufactur'd Goods, and a less Duty upon those unmanufactur'd.

Some, upon this Consideration, are for prohibiting not only almost all sorts of ma­nufactur'd Goods, but several other Com­modities; because they think they hinder the making and consuming of their own Manu­factures, and Native Commodities. But in this they are under a great mistake; and, perhaps, there is nothing so prejudicial to the Trade of England, as the many Laws for prohibiting Commodities, or laying too high a Duty, which amounts to a Prohibition: For by such Prohibition, the Trade to such a Country is wholly lost, by which the profit that the English Merchant us'd to get by sel­ling the Foreign Goods, the profit of the Owners of the Ship for the Freight, the profit from the Native Commodities that us'd to be sent in Exchange, with the profit of the Customs to the Government, are lost. By such Laws, several sorts of Linnens, and other Commodities, are prohibited, and the Trade to several parts of Germany, Russia, Muscovy, &c. is thereby almost lost.

A well-regulated and proportion'd Duty laid upon Foreign Wares, may be very use­ful to a Trading Nation; but then it must be so proportion'd, that it may not hinder the [Page 43] importation of such Foreign Goods, nor lessen the make and consumption of the Na­tive Commodities that are for the same uses; which may be done by setting the Duties so high, as that the Native Commodities may be afforded much cheaper. And then the Foreign Wares will only be bought and us'd by the richer sort of People, and the Native Commodities will be us'd by the rest, which are the great Body of the People, that cause the great consumption. And that proportion of the Native Commodities which, perhaps, might have been us'd by the richer sort, if such Foreign Wares had not been imported, will be exported in Exchange by the Mer­chant, and be consum'd by the richer People of those Countries from whence such Goods were imported: So that the same quantity of the Native Commodities will be made and consum'd; the Owners of Ships, and Mariners, will have profit by the Freight; the Merchant by his Trade, and the King by his Customs.

For things have no Value in themselves; It is opinion and fashion brings them in­to use, and gives them a value: And all Fo­reign Wares, especially the dearer sort, are us'd chiefly for Ornaments, and as Badges of Riches, because they are Foreign and rare; and not from any extraordinary quality or goodness in the make of them. And the [Page 44] same humor and opinion is in all Nations. The French value the English Cloth, Hats, Gloves, and other English Wares, more than their own; as we us'd to do French Stuffs, Hats, and Jessamin Gloves, and other French Goods. And this particular humor and o­pinion of valuing Foreign Commodities, is the chief support of Foreign Trade, which is so beneficial to all Nations. Therefore there is nothing of so great a Concern to a Trading Nation, as the well-regulating the Custom House Rates.

Those Gentlemen that discourse much of the Balance of Trade, do often find fault with the wearing and consuming so much Foreign Wares, which hinder, in their opinion, the consumption of the Native. And therefore us'd to exclaim much against the wearing of Silk, and drinking so much French, and o­ther Wines: And do believe, that if such quantities of Foreign Goods were not im­ported and worn, the Return would be made in Bullion, which would make the Na­tion much richer. This is their general Complaint: But, if it be consider'd, it will be found that there is little reason for't; and that the wearing of Silk, may be as profi­table to the Nation as the wearing of Cloth. That the importing of Wines makes the Na­tion as rich, as by importing of Bullion. And that if the Inhabitants did not wear [Page 45] Silk, and drink Wine, they would neither have Silk, Wine, nor Bullion.

For this is a certain Maxim in Trade, That the foundation of all Foreign Trade is from the Native or Staple Commodities of each Country. It is by the Exchange of the Staple Commodi­ties of England, Tin, Lead, and all sorts of Woollen Manufactures, that Gold, Silver, Silk, Wines, and all sorts of Foreign Goods are imported. And as a Nation has nothing else at first to begin Traffick, but with its Native Commodities, so it cannot be conti­nued without. And whensoever those are prohibited, the Trade to that Country must be lost, with the profit that was got by that Trade;) for there is no Foreign Trade but is profitable to a Nation, or at least may be made so;) and it is not for the Interest of a Trading Nation, to use none but their own Native Commodities. And therefore if Silks were not worn here, then there would be none imported; nor no Cloth nor Serges ex­ported and worn in those Countries from whence we fetch our Silk: because they have nothing to give in Exchange but Silk, which is their Native Commodity.

And it is more profitable for the Nation, that the Woollen Manufactures should be worn in Foreign Countries, than in their own: because the profit of the carriage, which is the exporting of the Woollen Ma­nufactures, [Page 46] and importing of the Silk, is gain'd by it. And the same general Rule maybe observ'd in the Trade for Wines, and all Foreign Wares.

And tho' the importing of Wines be ex­tremely cry'd out against, yet it is one of the best Trades to England; for, being a very bulky Commodity, it pays a great Freight: And being for the use of the richer People, it pays a greater Duty to the King, and that without complaint. For England being an Island, and the Riches and Strength of it being from Trade and Shipping, those Com­modities that are bulky, ought to be valued as most profitable.

And if some Gentlemen object, That the greatest part of the French Wines us'd to be bought with Bullion: They will answer them­selves, if they reflect that we have no Bullion here in England; and therefore must have it at first by the Exchange of some of our Na­tive Commodities. And if it be fetch'd from Spain by Bays, Serges, or other Com­modities, and afterwards carried into France, that's no disadvantage: For the Merchants are paid for the double carriage of it, in the price of the Wines by those that sell 'em; for every Merchant expects profit in making his Bargain.

But some Gentlemen are of opinion, That it is a great disadvantage to a Nation to carry [Page 47] out the Bullion, which is a Treasure, and not perishable; and bring in Wines that are con­sum'd, and the Nation never the richer for them after they are drank. And it is by this way that they make up the account of the Balance, whether a Nation gets or loses by Trade, And for Argument, commonly use a Simile, formerly publish'd by Mr. Mun in his Discourse of the Balance of Trade; and compare the Stock of a Nation to a private person, suppos'd to have a thousand pound a year, and two thousand pound in his Chest: If he spends fifteen hundred a year, in four years time his two thousand pound will be spent. And so on the contrary, if he spends but five hundred pounds a year, in the same time he will double his money in his Chest. The same will be to a Nation; so much as is imported and consumed more of the Foreign Commodities than is exported of the Native, so much will the Stock of the Nation be wasted. And so on the contrary, by how much less is consumed of Foreign Wares than is exported of the Native, so much will the Stock of the Nation be increased, because the Balance on either side must be return'd in Bullion.

Upon this Simile is founded the opinion for the Balance of Trade, which is to enquire, Whether a Nation gets or loses by any parti­cular Trade, from the difference that each Na­tion [Page 48] consumes in the perishable Goods of each Country. But as the Arguments are grounded on a Simile, so they have the Fate of all such Arguments, to be lame, and not run upon all four; according to the saying, Similitudo non currit quatuor pedibus.

For the Stock of a Nation is vafily dif­ferent from that of a private persons; the one is infinite, the other finite. There is every year a Harvest, a perpetual increase of Cattel, and the Mines can never be exhaust­ed. So that the two thousand pounds in the Chest may be spent, which is a limited Sum; yet the Tin, Lead, Wooll, and those Manu­factures that are made of them, can never be consum'd; for no sort of Trade can waste the Stock of a Nation.

But if we consider a Nation as consisting of a Body of People, the inhabitants may be made richer or poorer; but it is not by consuming the Stock of the Nation, but for want of improving the Stock. It is not by Trading, but for want of Trade. That Nation is accounted rich, when the greatest number of the inhabitants are rich. And they are only made rich by Industry, Arts, and Traffick. By Industry and Art, the Minerals are dug out of the earth, and made useful; the Land made more fertile, by which is produced a greater increase of the Native Stock: And from the profit of [Page 49] this increase of Stock, the People are paid for their Time, Art and Industry, which makes such inhabitants rich. And by Traf­fick and Commerce the Merchant, Owners of Ships, and Sailers grow rich, by being paid for carrying away the surplus of what is improved more than can be used in the Country, and exchanging it for something that's useful which that Country could not produce; which surplus, if it was not car­ried away, would by its plenty bring down the Value of the Native Stock, and put a stop to the Labour and Industry of the People, in further improving the Wares of the Country.

It is not material what sort of Foreign Wares the surplus is exchang'd for, whether they are perishable or not, so they do not lessen the Industry of the People; which is easily prevented, by putting such a Duty up­on them, as may make them too dear for common use. For the Merchant, and those that are concern'd in the shipping, grow rich, and get as much by importing Wines, Oils, Fruit, and other perishable Goods, as they would do by importing Iron, Copper, Silver, Gold, or other Goods as durable: or perhaps more, because of the bulkiness of the Oils, Wines, &c. which pays a greater Freight than the other Goods. And it is an advan­tage to the Merchant, and to all Traders in [Page 50] general, that the Goods they deal in are pe­rishable; because there is a continual occa­sion to make and fetch more as fast as those are spent. And if they were to deal only in Wares that were not perishable, in a short time there would be more imported of such Goods than there was occasion for; and so there would be an end of their Trade, and a stop to the Industry of the People.

So that the question of which Nation thrives most, cannot be determined by ob­serving which imports most Goods in value that are perishable; but by observing which imports most of such sorts of Goods that most increase or lessen the Labour and Indu­stry of the People, and which Nation im­ports or exports most of such Goods by which the greatest number of the Inhabi­tants are made rich.

This can never be discern'd by the value of Goods in the Custom-House Books, or by any other Calculation that is propos'd for the taking an account of the Balance of Trade. For tho' a Nation should import and con­sume less in value of the Foreign Commo­dities, than are exported of the Native; and the rest, which is the Balance, should be paid in Bullion: yet such a Nation may grow poor, and be undone.

For suppose Antwerp were the Staple for Wooll, (as 'twas formerly, before England [Page 51] had the knowledge of making Cloth) and the English Wooll was carried thither; and in Exchange, the Merchants brought back as much Cloth as was necessary to supply Eng­land, and the rest they return'd in Bullion: yet it is plain the Nation would be a great loser by such a Trade, tho' it did not con­sume so much of their Foreign Cloth in va­lue, as the Flemings did of our Wooll. For by such a Trade, all those that us'd to make the Cloth and Stuff, would grow poor for want of employment, and the Nation would lose the profit of their labour.

And the same Argument might be us'd in exporting of Raw Hides, or any other Com­modity that's unwrought. So that it is not from the value of the Goods imported, but from the difference in the nature and quality of the Goods, that makes a Nation richer or poorer.

And the importing of Wines, or any other Commodities that are only for the use of the richer sort of People, which do not hinder the labour and industry of the Nation, are as profitable as the importing, of Bul­lion. So that the taking an account of the Poverty or Riches of a Nation by such a Ba­lance of Trade from the value of Goods, if such accounts could be taken, would be of no use.

There is but one infallible Symptom to know when Trading Nations thrive and [Page 52] grow rich; that is, when the Inhabitants grow more populous; when they enlarge and new-build their Cities and Towns; and when they increase their Ships and Naval Strength.

I have insisted longer on this Subject than was necessary in this Discourse; and the ra­ther, because the Balance of Trade does so generally perplex all Debates concerning Trade. And that the Notion seems as if it were at first invented by some Merchants, on pu pose to mislead Mens Reasons about Trade; because it is commonly us'd for an Argument against any flourishing Trade, That such a Trade is not for the Interest of the Na­tion.

The Spanish Merchants us'd to cry out a­gainst the French. The Turky Company a­gainst the East-India Company. And now, all of them against the Dutch. And all their Arguments are drawn from the Balance of Trade. By which Arguments they too often prevail to get Prohibitions, and great Im­positions, to lessen such and such Trades, for each Merchant's particular advantage, and too often against the Interest of the Nation.

But to return to the Question; that is, Whether, if the Balance of Trade be against a Nation, the Money will be carried out to pay the Debt, be the Value of it rais'd or not?

[Page 53]And tho' I am of an opinion, there never was any Balance of Trade made up, nor can be by any methods propos'd, as I have yet hear'd of; nor any such uses to be made by it, as is expected, if it could be found out: yet because I cannot think that Gentlemen may on a sudden alter their opinions by any thing that I have wrote, against a Subject so gene­rally believ'd, I will therefore, for Argu­ment's sake, suppose there is a Balance of Trade, and that it is, or may be cast up eve­ry year with every Nation; yet it will not follow that the Balance of the Account must be paid in money. For if the Balance be paid by Value, it is no matter by what sort of Goods that Value is paid: For one sort of Wares are as good as another, if the Values be equal. An hundred pounds worth of Lead or Iron, is as good as an hundred pounds worth of Silver or Gold.

The general way of Balancing all Ac­compts in Foreign Trade, is by Bills of Ex­change. For Foreign Exchange is the pay­ing a Sum of Money in one Country, to be repaid the same Sum in the Foreign Coin of another Country; with allowance of In­terest for the time of paying it, according to the Agreement; which is call'd with single or double Usance.

In the Infancy of Foreign Trade in Eng­land, all Foreign Exchange was made in an [Page 54] Office, set up on purpose to return Bills of Exchange; which Office at first was setled by Act of Parliament, and afterwards the Kings granted Patents for the keeping of it. The last Patent was granted to the Lord Bur­leigh, then Lord Treasurer, in the Reign of Queen Elizabeth. Those that kept the Of­fice did generally belong to the Mints, and were well acquainted with Bullion and Fo­reign Coins, but with no other Commodi­ties.

In those days, being the beginning of Fo­reign Trade, all sorts of Foreign Coins were in all Trading Countries currant. In the Vnited Provinces Foreign Coins were currant till the year 1622, at which time a Placate was set out, forbidding all Foreign Coins to pass any otherwise than as Bullion, by weight; except about half a score sorts of Gold Coins, and as many Silver therein ex­pressed.

In France all Foreign Coins were cur­rant till the year 1614, in the Reign of Lewis XIII.

In those days, all sorts of Money being currant, the Money was often sent over in Specie, from one Country to another to buy Goods, and Balance Accompts. And there­fore in the Reign of Harry VIII. the Mo­ney in the Kingdom being grown very scarce, there was a great Complaint against [Page 55] the Exchangers, for sending away the Money of the Kingdom; whereupon he ordered a stop upon the Office of Foreign Exchange; and prohibited, for some time, any Foreign Bills to be either accepted or drawn, to pre­vent the sending away of the Money.

But since Foreign Trade is grown more dispers'd and enlarg'd, almost every Merchant accepts and draws Bills of Exchange. And since no money now passes currant but in that Country where it is coin'd, it is not usual to send over Money in specie to buy Goods, or balance the Accompt: For the Merchants that draw and accept Bills of Exchange be­ing general Traders, and acquainted with the Value of all sorts of Goods; and Money being a Commodity, and reckon'd as Bullion in a Foreign Country, if there be Effects of the same Value to answer the Bill in any sort of Goods, it is the same thing as if Money was sent to answer it. And if the Merchant has no effects in the Countrey where the Bill is to be paid; yet if he has in any Foreign Countrey, to which Bills of Exchange are usually drawn, he may answer his Bill, and pay the Balance of his accompt without Mo­ney, by drawing Bills from one place to another where his effects are.

And therefore, when Mr. Lock says, That the Balance of the Foreign accompt must be sent over and paid in Money, he must suppose that [Page 56] the Nation has no other effects in any other Foreign Countrey; but, that they are at the self-same time even every where else, which never was, nor never can be as long as a Nation continues in Trade.

And also that there must be a stop put to Trade, till such an accompt be Balanc'd by the payment of the Money; or else, a Nati­on that has any effects in Value, might send over Goods to balance the accompt, without sending over their Money.

Besides, some Nations have little or no Bullion in their Countrey; as Denmark, Sueden, and the Northern parts of the World. And yet the Merchants Accompts are as well Paid and Balanc'd, as in any other coun­trey where there is more plenty of Gold and Silver.

For, as the course of Foreign Trade now is, there is no occasion to send over Money to buy Goods, or Balance the Account; for the Money is paid at the time when the Bill is first drawn: So that there is no occasion to send Money over where the Bill is to be accepted and repaid; and the buying of Goods, or Balancing of the Accompt, is done by the Foreign Money of the Countrey, which is receiv'd from the person that ac­cepts the Bill.

Money is never carried out of any Coun­trey where it is Coin'd, except it be to [Page 57] those Countries where the Bullion bears a higher price than what the Money is cur­rant at: Or when the Exchange runs so high to any Country, as it will be more pro­fit to the Merchant to melt down the money, and send it over in Bullion, than by Bills of Exchange. And in both these Cases it may often fall out, that the money may be sent over to a Country, and yet no Debt con­tracted in that Country. And therefore the Balancing the Accompt, can't be the reason of drawing the money out of a Nation.

For tho' Spain were not indebted to any Nation, yet the Gold and Silver would be brought away: For being more plentiful there than in any part of Europe, because of the West-Indies that belong to 'em, is conse­quently there of a lower Value. And being their chief Staple Commodity, having little other Goods of Value, if they will Trade with other Nations, and have their Com­modities, they must give their Bullion in Ex­change, tho' their Laws are Capital that pro­hibit it. And yet every time they Traffick with other Nations, there may be no Debts left on either side.

And the same likewise may be observ'd in the course of Foreign Exchange. For the rise [Page 58] and fall of Foreign Exchange, is from the dif­ference of the Sums that are to be return'd in the Exchange: Just as all sorts of Goods are cheaper or dearer, from their plenty or scarcity; so the Exchange to any place is ei­ther higher or lower, according to the greater or lesser quantity of money that is to be re­turn'd by the Exchange. Sometimes an hun­dred pound may be worth five or ten per cent. to be return'd; and a little while after, to the same place, may be worth as much to the contrary. And if it happens when the Exchange is high, that there is as great a con­veniency in sending to the same place the Bullion, as there is to get a Bill of Exchange; the Merchant, to save five or ten per cent. will send away the money. And this may fall out, when there is no Debt owing at the place. As to instance:

If a Merchant were to buy Goods at Francfort, or Amsterdam, at the Fair, or East-India Sale; if the Exchange be high, a [...] 'tis generally at those times, he'll send a­way Bullion thither, rather than Bills, i [...] there be any thing to be got by't, t [...] buy Goods in those places; and yet h [...] might owe nothing there: so that th [...] money is not sent away to Blance the A [...] ­compt.

[Page 59]The Inferences from this Discourse of the Balance of Trade, and Foreign Exchange, are:

That a Trading Nation is made Rich by Traffick, and the Industry of the Inhabitants. And that the Native Stock of a Nation can never be wasted.

That no sort of Commodities ought to be totally prohibited. And that the freer the Trade is, the better the Nation will thrive.

That the Poverty and Riches of a Nation, does not depend upon a lesser or greater consum­ption of Foreign Goods, nor on the difference of the Value of those Goods that are con­sum'd.

That the Balance of Trade is a Nation that serves rather to puzzle all Debates of Trade, than to discover any particular Advantages that a Nation may get by regulating of Trade.

That the Balance of Trade (if there be one) is not the cause of sending away the Money out of a Nation: But that proceeds from the difference of the Value of Bullion in several Countries, and from the Profit that the Mer­chant [Page 60] makes by sending it away, more than by the Bills of Exchange.

That there is no Occasion to send away Money or Bullion to pay bills of Exchange, or Balance Accompts.

That all sorts of Goods of the Value of the Bill of Exchange, or the Balance of the Ac­compt, will answer the Bill, and Balance the Accompt as well as Money.

Of Raising the Value of Money, with the Cau­ses of it, and the Ef­fects.

IT has been a Custom in all Ages, and amongst all Nations, to Raise the Value of their Money, and is as Ancient as the Coinage of Money, and not a late Invention, as some are of Opinion.

It was a Custom among the Assyrians, He­brews and Grecians, as might be made ap­pear, if it were necessary. But, to shew that it was no Modern Invention, will suf­ficiently appear by the Romans Raising the Value of their Coin. The As, being the Copper Money of the Romans, was at first Coin'd of a pound Weight. And in the first Punick War, in the Dictatorship of Fabius Maximus, it weigh'd but two Ounces, and all the lesser pieces of it were abated in pro­portion. [Page 62] The As was afterwards reduced to an Ounce, and again by Papirius to half an Ounce. When the Romans began first to Coin Silver Money, the Denarius, which was an Ounce of fine Silver, and about the Value of our Crown, was made current for ten Ases. The Half- Denarius, the Sestertius, and the Sextula, which was Six in an Ounce, were Coin'd to the same proportion. After­wards the Denarius was Coin'd to Seven in an Ounce; and after that to the Weight of a Drachma, which is Eight in an Ounce: And the lesser parts, as, the Sestertius, Sextula, &c. were abated in propor­tion.

Their Gold Money was also from time to time Raised: Those Pieces called Solidi Aurei, which were at first Coin'd to Forty Eight Pieces in the pound, were at several times Rais'd. And in the time of Iustinian the Emperor, were coin'd to Seventy two Pieces in the Pound.

The Romans did not only Raise the Value of their Money, by Coining of it Lighter; but they did also Raise it by putting in an Allay, which they did at several times, and by several proportions. And in the time of Livius Drusus, the Allay was so excessive, that the mixture was Eight Ounces Copper, and Four Ounces fine Silver in a Pound Troy. This base Money created a disturbance [Page 63] amongst the People; which was the oc­casion of that saying in Tully's Offices,

Whereupon Marius Gratidianus, being Trium­vir Monetae cudendae, brought in an Ordinance for the Calling in, and Regulating this Mo­ney, for which he was in great Efteem amongst the People.

This is sufficient to shew, that the Rai­sing the Value of the Money is no late In­vention.

In these Latter Ages all the Kingdoms and States of Europe have from time to time Rais'd the Value of their Money, is very plain. In France, the Ounce of their Standard Silver, which is the French Crown, was at first di­vided in Sixty Sous, afterwards the Crown was rais'd to Sixty five, and of late to Se­venty two Sous: And the New Crown was from time to time made Lighter; that is, the Pound Troy, which contains Twelve Ounces, was at first divided into Twelve Crowns, and afterwards into Thirteen Crowns, and of late into Fourteen Crowns and almost an half. And there are Old [Page 64] Crowns still current in France that have the Stamps upon them, which shew how they have been several times Rais'd.

The Ounce or Dollar of the United Pro­vinces, was at first divided into Thirty six Stivers, afterwards Rais'd to Forty, and since higher, tho' they have another way of Raising their Money, which is, by adding a greater Allay. The Ounce, or Rix-Dollar of the Emperor, which was at first Coin'd at Fifty Crutzers, was Raised to Fifty five, and after that to Sixty. In Spain and Portu­gal, every Merchant knows that has Traded thither, that the Values, of their Monies have been several times Raised.

In England, from Osbright the Saxon King, till Edward the Third, the Peny was a Peny weight of fine Silver, and the Pound was a Pound Troy Weight of fine Silver. He Rais'd the Value of the Money by putting Eighteen peny Weight of Allay into the Pound Troy. And Mr. Lownds in his Report containing an Essay for the Amendment of the Silver Coins, has given a very exact Account since Edward the Third's Time, taken from the Records of the Mint, how the Money of England has been from time to time Rais'd. By which it appears, that the Silver Peny which in the beginning of his Reign weigh'd a Peny-Weight, there being then but Twen­ty [Page 65] pence in an Ounce, has been by Degrees, in several Kings Reigns Coin'd lesser and lighter; and the Ounce has been divided in­to Twenty five pence, Thirty, Thirty seven pence halfpeny, Forty five pence. And in the beginning of Queen Elizabeth's Reign, the Crown, or Ounce, was divided into Sixty pence: And in the latter end of her Reign into Sixty two pence.

The Standard and course of the Mint has continued to this time without any altera­tion, except what was made by an Act in the Reign of King Charles II. which gave away the charge of Coinage, being Two shillings in the Pound Troy advantage, for an incouragement to those that brought Bul­lion into the Mint; which rais'd the price of Bullion to the Nation, instead of raising the Value of the Coin.

The several States and Princes. of Italy have Rais'd their Coins; and if it were ne­cessary, it might be easily prov'd, that there is not one Mint in Europe that has been of any continuance, but has Coin'd their Money lighter then they did at the first beginning of their Coinage.

The way of raising the Value of the Mo­ney is not in all Countries alike. In the Vnited Provinces, Flanders, Germany, and the Northern parts of Europe, it has been usual­ly [Page 66] by putting in a greater Allay, and making of it a little courser, and a little lighter.

The Standard of the Vnited States was at first Nine Ounces and an half fine Silver, and Two and an half Allay in the pound Troy: But since, by degrees, their Standard has been brought to Nine Ounces fine, and Three Ounces Allay. And likewise their new Dol­lars have been Coined lighter; so that the old Dollars that went before at Six and thir­ty Stivers, were rais'd to Forty. And the same might be observ'd in all the rest of the Mints of Flanders, Germany, and the Nor­thern parts.

In Italy, France, and England, the way of raising their Coin, has been generally by keeping the old Standard for fineness, and only by altering the weight; from time to time Coining their New Money lighter, as they had occasion to raise the Value of their Money.

In Portugal and Spain, the usual method of raising their Money has not been by alter­ing their Standard either in fineness or weight; but by giving a Rise to their Mo­ney, by a Computation made from the Value of the Copper Money; that is, a Riall of Eight, which in Spain was formerly of the Value of Three hundred and seventy Malvedies, was raised to pass currant for Four hundred Mal­vedies, [Page 67] which is their Copper Money, and so higher from time to time.

And the same is to be observ'd in Portu­gal: They raise the Value of their Money by their Reas, which is their Copper Money. And the Ducat, or Crusado, that us'd to pass for Four hundred Reas, has been rais'd to Four hundred and fifty, and higher.

The usual Proportion of Value that Princes and States give to their Silver and Gold Mo­ney when they Raise the Value of them, is generally betwixt Ten and Fifteen per cent. above the Market-price of Silver and Gold. The French Crown was Raised from Sixty Sous, to Sixty five, which is about Ten percent. And about three or four Years since, the Crown was Raised to Seventy two Sous, which is near Fifteen per cent. The Rix-Dol­lar, Coin'd at Fifty Stivers, was Raised to Fifty five Stivers, and since to Sixty, which is about Ten per cent.

The Kings of England have Rais'd their Money from Twenty, to Twenty five, Thirty, Thirty seven, &c. whch is after the same pro­portion as the Emperor, the French King, and other Princes and States have done.

The Dutch raise the Value of their Money by adding a greater Allay (as has been ob­serv'd) which is less taken notice of, and so does not disturb the minds of those persons [Page 68] who think the value of Money is solely from the quantity of fine Silver in each piece.

The Reason why Princes and States do ob­serve to give no greater Proportion of Value to their Money when they new raise it, than betwixt Ten and Fifteen per cent. above the currant price of Bullion, is, to prevent coun­terfeiting.

For tho' there are Laws in all Countries, with severe Penalties, to prohibit the coun­terfeiting of Money, yet none are kept and observed, where there is great Profit to be got by breaking of them. And no persons will counterfeit the Stamp, and make the Money the same both in weight and fineness, for only Ten or Fifteen per cent. Profit. For they must Coin a great quantity, to make their Profit considerable; if they make the Money of the same weight and fineness, it will not be One hundred and forty pound clear Profit in Coining of a Thousand pound at Fifteen per cent. because of the charge of Coinage. And none but the rich man can vent a great quantity, and he'll not hazard the loss of his Life and Estate for such small Gain. The poor man cannot attempt it, be­cause he can neither get Bullion to Coin, nor vent a quantity after 'tis Coin'd. And why should any man venture his Life for such small Profit, when every Merchant and Trades­man gets more without any such hazard?

[Page 69]Therefore those that coin false Money, coun­terfeit the Metal as well as the Stamp, to make it profitable. But then it is much easier discovered, and they are often punish'd with death: For they must counterfeit the weight, colour, and size of the Piece, as well as the Stamp; which is much more difficult than only to counterfeit the Stamp

So that the Princes and States may as safely coin their Money Ten or Fifteen per cent. above the price of Bullion, without danger of coun­terfeiting, as if they should coin it exactly to the Market-price.

The Reason why the Princes and States, when they have rais'd the Value of their Money, have not coin'd it nearer to the price of Bullion, than about the difference of Ten per cent. is to avoid the too often raising the Value of their Coin; which, when ever it is done, is apt to create some little murmur and discontent amongst the People. And if they should coin it near the Value, they would be forced to raise their Money as oft as Silver rises in its price above the Value of the Coin, which would be every Five or Ten Year; whereas by raising of it betwixt Ten of Fifteen per cent. they have not usually rais'd it but once in Fifty or Threescore Years.

As to instance from Edward the Third's time to Queen Elizabeth, which was betwixt [Page 70] Two hundred and fifty, and Three hundred Years from the first raising of the Money, from Twenty pence in an Ounce of Silver to Threescore pence, is betwixt Ten or Twelve per cent. for every Fifty Years. And the like might be observ'd, if it were neces­sary, in all the Mints of Europe.

In the Reign of Edward VI. when there was so great an Allay put into the Money as rais'd it to Forty or Fifty per cent. profit above the price of Silver, there were Barrels of counterfeit Money seiz'd at the Custom-house, that were sent from Foreign parts. The knowledge of that created so great a jea­lousy and disturbance in the minds of the People, that scarce any Money would pass, for fear of receiving that which was coun­terfeit.

For the knowledge of the goodness of Silver, is a Mystery that few are acquainted with; and when there is so great an Allay put into the Money, those that counterfeit may make the Metal as good, if not better than the true Money, because there's profit sufficient by only counterfeiting the Stamp. And that may be so well imitated, as not one in a thousand may discover the difference betwixt the true and the false Stamp. And tho' the Metal may be as good or better than the true Money, yet it being counterfeited, it's none of the Government's Money. And want­ing [Page 71] their Authority, by which it is made currant, no man is oblig'd to take it; and therefore every body refuses the Money in ge­neral, for fear the loss should fall upon him that last takes it; so that the Money becomes useless, having lost the currancy and quality of Money, and all the murmur and disorder ensues that usually attends a Nation that want Money to drive their Trade and Com­merce.

Other Instances might be given, but this, with the common usage of not exceeding Ten or Fifteen per cent. when the Money is rais'd, may be sufficient to answer Mr. Lock's Objection, That the Governments cannot raise their Money as high as they please; nor make them­selves as Rich as they please.

The great Objection that Mr. Lock makes against the raising the Value of Money, is, That if the Government have a Power to give a Value of Ten per cent. to their Money, why not Twenty, Fifty, or as high as they please? And then it would be in the Government's Power at any time to make themselves as rich as they please.

Such a Power, at this time, were to be wish'd for, when the Nation is engag'd in so chargeable a War: But that's the misfor­tune that attends us, that such a Power can be only wish'd for.

[Page 72]For tho' Princes and States have a Power to give a Value to their Money, yet that Power is limited. And when ever they have attempted to exceed those Limits, which up­on an extraordinary emergency they have sometimes done, they have fallen under greater mischiefs, by reason the Money has been always counterfeited, than the advan­tages they propos'd to themselves amounted to by doing of it; and have always been forc'd to call in such Money, and reduce the Value within its usual limits and bounds.

There are two Causes why Princes and States raise the Value of their money; the one is Ordinary, and the other Extraordi­nary.

The Ordinary and Common Cause of Rai­sing the Value of the Coin, is the Rise of Bullion.

Gold and Silver are Commodities for other Uses, besides the making of money; as for making of Plate, Lace, Gilding, &c. And besides, it's scarcer in some Countries, and more plenty in others: And the Value of all things arising from their Occasions; and Plenty and Scarcity making things cheap and dear; when ever the Goldsmiths, and the Makers of Plate, Lace, &c. and the Merchants to export it to the Indies, or those Countries [Page 73] where 'tis more scarce, will give more for Bullion to supply such occasions, than the Mints can afford to do, according to the Value the money is at, the Princes and States have been forced from time to time to raise the Value of their Coin▪ to prevent it from being melted down, and carried away.

The knowledge when Bullion is risen above the Value of the money, is discover'd by the Mints: For the Mints are the common Shops and Market place for the Merchants to carry in their Bullion. And when ever they forbear the bringing of it thither, it is certain it will yield them a better price in another place: For Bullion never continues long in a place unalter'd, because it yields no profit while it continues so. But if it be carried to the Mint to be Coin'd, it becomes useful for Trade and Commerce, and saves the charge of bor­rowing money, or else may be put out to In­terest. And if it be wrought into Plate, Lace, &c. it pays for the fashion and work­manship. And if it be transported to the Indies, or some Country where it's dearer, it produces profit by the exchange of those Goods that are bought with it.

When ever any of the Princes and States in Europe Raise the Value of their Coin, the rest generally follow. It were too long to give particular Instances; but if it be ex­amin'd by the Records of the Mints of the [Page 74] Kings of France, with those of the Mints of the Kings of England, it will appear, that they have Rais'd their Money from time to time, as the Kings of England have done, or rather higher. For that, since the time of St. Lewis, who was co-temporary with Ed­ward the IIId. the Sols and Crowns con­tained then near six times more of fine Silver, than the Sols and French Crowns do that are lately Coin'd; which is a greater proportion than the Money has Risen in En­gland since Edward the Third's Time, being not quite four times lighter: The reason is, it's almost a hundred years since the English have Raised the Value of their Silver Coin; and in the same time the French have Rais'd theirs twice; which would have made the English Money much of the same Rise, with giving of allowance to the custom of the En­glish, who have always undervalued their Silver Money, and overvalued their Gold, in respect to their Neighbour Nations; and have since twice Rais'd the value of their Gold; to wit, in King Iames the First's time, who Coin'd a twenty-Shilling-piece of Gold lighter by Two shillings, than that which he Coin'd in the beginning of his Reign; which rais'd the value of his first Iacobus's to Two and Twenty Shillings. And in King Charles the Second's time, who Coin'd the Guinea Two shillings lighter [Page 75] han the Broad-Piece: So that when the Guinea was currant at Twenty shil­lings, the Broad-Piece went for Two and Twenty.

There seems to be an absolute necessity for the Princes aud States of Europe to Raise the value of their Money much about the same time, or else they cannot preserve it in their Countries, notwithstanding any severe Laws to prohibit the Melting and Exporting of it. For there being a constant Commerce and Traffick betwixt all the Countries of Europe; If one Prince sets a much higher value on his Money than another, the Merchants, whose business it is to observe where they can get most profit, will melt down the Coin of one Countrey, and carry it to the Mint of another Countrey, where the Money is Rais'd, and will yield the greatest price.

This will appear plain by an Instance here in England: For the Kings of England ha­ving not Rais'd their Silver Money since the Reign of Queen Elizabeth, which is about a hundred years ago; and the rest of the Princes and States of Europe having since that time twice rais'd their several Coins, to wit, in the Reign of King Iames the First, and about Four or Five years since: That al­though there has been since that time Coin'd in England (with allowance of what was Coin'd in Queen Elizabeth's Reign) the [Page 76] Sum of 19429061 l. 19 s. 6 d. as ap­pears by the Records of the Mint; yet by the Computation that Mr. Lownds makes, there is not above Five Millions Six hundred thousand pounds remaining; which, in my opinion, is more than will be found to be, upon the new Coinage of the Money, by the calculation he makes from the Worn and Clipp'd Money. So that there has been near Fourteen Millions melted down and carried away within this space of time. And had it not been for some accidental causes that brought Bullion to the Mint since the Foreign Princes have rais'd the value of their Coins, there had been very little Silver Money Coin'd, and much less to be found now in England.

For in King Charles the First's time, by the Civil Wars of England, the Plate was brought to the Mints to be Coin'd; which was the cause of the great sum of Silver Money Coin'd in his Reign.

The Calling in the Parliament-Money in King Charles the Second's time, and new Coining of it: The Two or Three hundred thousand pounds that were yearly sent into England from France, upon some particular occasions during his Reign, with the Money that Dunkirk was sold for: And the Act of Parliament for giving away the charge of Coinage, to incourage the Merchants to [Page 77] bring Bullion to the Mint, being almost Three and an Half per cent. were the occa­sion of the Silver money Coin'd in his Reign.

And if the two Sums Coined in these two Kings Reigns, which make about Twelve Millions, with the Money that was Coin'd in Queen Elizabeth's Reign, and a Million that was Coin'd in the Reign of King Iames the First, before the Foreign Princes Rais'd the value of their Coins, be put together, they will make near eighteen Millions: So that were it not for these accidental Causes, there had not been Coin'd in the Mint of England Two Millions of Silver Money since the Fo­reign Princes Rais'd the Value of their Coins. And had it not been for the wearing of some of the old Money lighter by often telling it over; and Clipping of the rest, by which they were made unprofitable to melt down, by this time, in all probability, there had scarce been a Silver piece of Money to be seen in England.

And that the Raising the Coin in Fo­reign parts, and the not Raising the Silver Coin in England, was the cause of melting it down, and Transporting it, will plainly appear from the plenty of the Gold here com­pared with the Silver. For, since the Forty third of Queen Elizabeth, being the last time that the Silver Money was rais'd here in Eng­land, the Gold has been twice greatly rais'd; [Page 78] by which means, there is here double, if not treble the quantity of Gold for Silver; whereas in all other Kingdoms and States in Europe, there is ten times more Silver Money than Gold.

For in the Forty third Year of Queen Elizabeth (according to Mr. Lownds's account from the Records of the Mint, which all men agree is very exact) a pound weight Troy of Gold of the Standard of Twenty two Carats fine, and Two Carats Allay, was Coin'd into Thirty three Soveraigns and an half, at Twenty shillings a piece, making Thirty three pounds ten shillings.

In the Reign of King Iames I. the Gold was rais'd, and the same pound weight and standard of Gold was coin'd into as many Units, Double-Corowns, and other pieces of Gold, as made up Forty pound eighteen shillings and four pence.

And in King Charles the Second's time, the Gold was again rais'd, and the same stan­dard and weight was coin'd into Forty four Guineas and an half, at Twenty shillings a piece. So that from Thirty three pound ten shillings in Queen Elizabeth's time, to Forty four pound ten shillings in King Charles's Reign, the Gold was rais'd near Three and thirty per cent. since the Silver money has been rais'd; which is the reason of the great plen­ty of Gold, and scarcity of Silver. What [Page 79] was the reason that these two Princes rais'd their Gold, and not their Silver, is not to be imagin'd; unless it was from some powerful Argument offer'd by the Guiney Company, whose Interest it is to have Gold rais'd; which does not appear.

And that this raising the Gold is the cause that it is more plentiful here in England than Silver, will appear yet more plain, if the Re­cords of the Mint be examin'd since King Charles the Second's Restauration: For since that time there has been coin'd in the Mint of England 7263836 l. 1 s. 5 d. and in Sil­ver but 4319585 l. 9 s. 5 d. which does not want much of double the quantity of Gold Money that has been coin'd more than Silver.

And when the Guineas had an extraor­dinary Rise here in England, as to be currant at Eight and twenty and Thirty shillings a piece, there was above Seven hundred and twenty thousand pounds in Gold coin'd in little more than Nine months time; which was more than was coin'd in six or eight Years before; which shews plainly, that the raising the Value of the Gold money here in England, is the cause that so much is imported and coin'd here. And on the contrary, the not raising of the Silver money in propor­tion, as the Foreign Mints have done, is the cause of its being cons [...]ntly melted down, [Page 80] and carried away, notwithstanding the many Laws to prohibit it.

For there are severe Laws in all King­doms and States, that prohibit the counter­feiting, clipping, melting, and exporting the money. In all Countries 'tis death to counterfeit and clip the money. In France, England, and several other Countries, it is a high Crime to melt it down, and forfeiture of the money to export it; and in Spain, 'tis death to transport it. And yet, when ever it has been profitable, it has been always melted down, and carried away. So that by experience Princes and States have found, that there is no other way to preserve it in the Country, but by raising the Value of their money so much above the price of Bul­lion, that the Merchant may get more by carrying away the Bullion, than the Money.

The cause of raising the Money here in Europe will always continue, as long as the Europeans continue in Traffick and Com­merce; for Trade makes a People rich, and Gold and Silver are Badges of Riches; and therefore as the People grow rich, the price of Gold and Silver will rise, because the occasions for Gold and Silver will still in­crease.

Especially as long as the Trade continues to the Mogul's Country in the East-Indies: For [Page 81] the Princes and great People there believe; that the possession of Gold and Silver is not only an Honour to them while they are alive, but that they shall have a Respect in the next World, according to the quantity of Gold and Silver they die possess'd of: And therefore what-ever Gold and Silver they get more than is absolutely necessary for Commerce and Traffick, they from time to time melt into a Mass, or Tank, which is bu­ried with them; so that great part of what's dug out of the West, is buried in the East.

And altho' there have been great quanti­ties of Gold and Silver brought into Europe since the Discovery of the West-Indies, yet the price of them has always risen; and will always continue so, as long as the People grow rich by Trade; which will make the occasions for them greater than the quantity, which is the Rule by which all things are made dear.

This continual Rise of Gold and Silver will be no prejudice to the Princes and States, if they do but observe to raise and keep up their money above the price of Silver and Gold; for there will be the same quantity of Silver and Gold in the Country, tho' the money be lighter. And the difference will be only, that there will be more in every man's House, and less in his Pocket. And the mo­ney [Page 82] will have the same Value, tho' the im­pressions be less, because it has its Value from the Authority of the Government: Just as if the Ingraver should cut the impres­sion of the Great Seal less, it would not al­ter the Authority of the Seal.

This may be sufficient to prove, That the Ordinary Cause of Raising the Value of the Money, is from the Rise of Bullion; which will always continue in Europe, as long as the Inha­bitants grow rich by Trade.

The Extraordinary Cause of raising the Va­lue of money, has been the Extraordinary Oc­casion for it. When Princes and States have been engag'd in great Wars, and wanting money, they have sometimes rais'd the Value of it to increase it, and make it last longer; In such Cases they have not observ'd the usual Bounds and Limits of raising the Va­lue of money Ten or Fifteen per cent. above the Market price of Bullion; but have great­ly exceeded it to Thirty, Forty, Fifty per cent. and more. But then, in all such Cases, as soon as those extraordinary occasions were over, they have call'd in such money as has been so greatly rais'd, and reduc'd the Va­lue of it to its usual Bounds.

In the first Punick War, the Romans want­ing money, rais'd the Value of the As, which was their Brass Coin, to six times more in V [...]lue than it was coin'd at; it weighing at [Page 83] first twelve Ounces, and afterwards but two. And again wanting money, Hannibal pressing hard upon the City, they increased their money, by coining the As to an Ounce. And the third time, Papirius raised the money to double its Value, by coining it at half an Ounce. They also rais'd their Denarius, which was their Silver money, in proportion. By which they carried on the War against the Carthagenians, and suppli'd themselves under great Necessities, and want of money. Livius D [...]usus also greatly rais'd the Value of the Sil­ver money, by putting in a great Allay: But these excessive Rises were afterwards regula­ted and reduc'd by Marius Gratidianus.

In the Wars betwixt England and France, Harry the Fifth having conquer'd great part of France, Charles the Seventh rais'd the Va­lue of the French money in six Years time, from Eight Livres, Nine Sols, the Mark, by degrees to Three hundred and sixty Livres, the Mark: which was rais'd, in that time, above Forty times the Value. And as those that write of the Mints of France observe, 'twas the chief means by which he expell'd the English out of France. But as soon as ever the War was over, he reduc'd the mo­ney to Seven Livres Ten Sols; which was within the usual Limits of raising the money.

At the same time Harry the Fifth raised the money of England from Twenty five shil­lings [Page 84] in a Pound weight, to Thirty. And Harry the Sixth, his Son, the next Year rais'd it to Thirty seven and six-pence: so that it was rais'd a third part more in Value in two Years time, than it had been ever since the Twenty seventh of Edward the Third. And in the Fourth Year of Harry the Sixth, after Charles the Seventh had reduc'd his money, he lower'd the English money again to 30 s.

When Harry the Eighth alter'd the Stan­dard of England, and extraordinarily rais'd the Value of the money by putting in a great Allay; which alteration at first was by put­ting in but two Ounces Allay, to ten Ounces of fine Silver; afterwards six Ounces, and at last eight Ounces Allay, to four Ounces of fine Silver. By which, in three Years time, he rais'd the Value of the money above three times higher than it was before; but it was when he had spent his money in the War of Bullen. And the Nation was never at peace and quiet in their Commerce and Traffick, till the Value of the money was reduc'd with­in its Bounds; which was begun by Edward the Sixth, and finish'd by Q. Elizabeth.

These are the Extraordinary Causes of rai­sing the Value of money, to supply Extraordi­nary Necessities; which have no sooner been over, but the Value of the money has been reduc'd within its usual Limits: For if the Rise had been continued, the Mischiefs would [Page 85] have been greater than the Advantages they receiv'd, by raising it so high. And there can be no Rule or Measure taken of the Value that the money may be rais'd to from such Pre­sidents, but only from the ill effects in con­tinuing it.

The Effects of Raising the Value of the Money, are:

That it increases the species of the Money, and preserves it in the Countrey where 'tis Coin'd. If the English Crown were Rais'd to Six shil­lings, or Coin'd in such a proportion lighter, there will be a Sixth part more Money in En­gland than if it be Coin'd to the old Standard. And, if the Money be Rais'd above the price of Bullion, it will not be the Interest of Goldsmiths and Merchants to melt it down. From both which Effects a Nation receives great Advantage.

Mr. Lock is of a contrary opinion, and thinks that the Raising of the Money will produce Two great Mischiefs, viz.

That the Raising the Value of the Money will Raise the Value of all Commodities.

That the Landlords and Creditors will lose just so much in their Rents, Bonds, Debts, and Contracts, as the Money is Rais'd.

These are the Two great Objections that are commonly us'd in all Debates about Raising the Value of the Money; and are grounded upon this supposition, That the Va­lue [Page 86] of the Money is solely from the quantity of Silver in each piece; and that 'tis the quantity of Silver that in Buying and Selling, Men give, take, and contract for: So that if there be less Sil­ver in the Money, men will have less Goods for it; and just so much as the Money is Rais'd in Value, the Goods will Rise: And the same Consequence will be if the Land­lords did let their Land according to the quantity of Silver in the Money; they will lose just so much Rent if the Money be Rais'd, as it has less Silver in it: And so will the Creditors in their Bonds, Debts, and Contracts.

But if it appear by what has been said on this Subject, and that Mr. Lock is mistaken in his supposition, That the Money has its Va­lue from the Authority of that Government where it is Coin'd, by which it is made Current and Lawful Money: And that 'tis the Current and Lawful Money of England that men contract and sell their Goods for, and in their Bonds and Leases Covenant to pay, Then there will be no such ill effects from Raising of the Old Money, and Coining the New Lighter.

And if it be true, That the Plenty or Scarcity of all Commodities, in respect to their occasion, makes them Cheaper or Dearer; And that the Plenty of one Commodity do's not make another Commodity dearer or cheaper that is not for the same use; then the Plenty of Gold and Silver, or a greater or lesser quantity of it in the [Page 87] money, will no more alter the price of Goods, than the Plenty of Lead or Iron can alter the price of Butter or Cheese, which are not to supply the same Occasions.

And Mr. Lock in Page 52 seems to be of this opinion, and answers himself, tho' he con­cludes quite otherwise.

He says, Corn it is evident do's not rise or fall by the difference of more or less plenty of Money; but, by the plenty and scarcity that God gives. For our Money in appearance remaining the same, the price of Corn is double one year, to what it was the precedent: But from thence infers, we must certainly make account, that if the Money be made a fifth Lighter, it will buy one fifth less Corn Communibus Annis. I must confess I cannot understand this consequence, when in the beginning he says, Corn do's not rise and fall from the difference of the Money.

For, if the Lightness or Heaviness of the Money had any influence over the price of Commodities, then all sorts of Commodities ought to be cheap when the Money is Heavy, and dear when the Money is Light: And the price of things could never alter, but when the Money alters; for the cause being the same, the Effects ought to be the same.

Whereas it is plain some Goods never alter their price: As the Beer and Ale that's sold: The Brewer runs the Risque of the dearness of the Coals, Hops, and Mault. [Page 88] When those Goods are dear, he gains less by Brewing; but always sells his Beer and Ale at one price, let the Money be what it will: Other Goods, such as all sorts of Grain, Coals, and other Commodities alter their price almost every Month: And the Coals are sometimes but half the value to what they were the Month before. So that if these diffe­rent Alterations in prices arose from the value of the Money, it will follow that both the good and bad Money makes things dear as well as cheap; and the same cause at the same time to have two contrary effects, which cannot be.

But to conclude with answering this Objection, If the Arguments that have been already us'd to shew that Money has not its Value from the quantity of Silver in each piece, do not satisfy; I would advise such Gentlemen always to receive their Money by Weight, and try if they can introduce such a custom: For, they can never have their Money equal by Tale: For, if any man re­ceives and Hundred pounds, and divides it in­to Five twenties, there will be the difference (unless it be all new Money) of five or ten shillings in the Weight of some of the twen­ty pounds, tho' by the Tale they are even.

As to the Objection that Mr. Lock makes from a simile when he says, That Money is the Measure of Commerce and Traffick; so that if the Mo­ney be made lighter, 'twould be the same thing as if [Page 89] the Government should cut their Yard shorter. The Cloth that is measur'd by such a Yard would be so much less; and so will the quantity of the Goods be that are bought with the Mo­ney that's made lighter. It is grounded up­on the same supposition, and would be true, if Money were the measure of Commerce by the quantity of Silver in each piece. But if it be the Measure of Commerce from the Authority of the Government; if the Autho­rity be the same, the Measure will no more be alter'd by making the Money lighter, than if the Yard were split in two, so that the length be not alter'd, it will then make two Yards, and measure as much Cloth as if it had not been split, tho' there be but half the quantity of Wood in each Yard.

As to the other Objection of the Land­lords and Creditors, That if the Money should be made lighter, they'l lose so much in their Rents, Debts, and Contracts. The Answer is; That the Money having its Value from the Au­thority of the Government, is always of the same Goodness and Value. And that the Money, if it were made Lighter, would be as good to all purposes, as Money, as it was in the Reign of Harry the Sixth, when it had double the weight of Silver in it, which would be no advantage but to those that melt it: And therefore they cannot lose in t [...]eir Rents, Debts, &c. if [Page 90] the Money be always of the same Value.

And if they are not satisfied with the Arguments that have been us'd to prove that Money has its Value from the Authority of the Government; That such persons may not be losers in their imagination, if the Parliament should think fit to alter the Standard, and raise the Crown to Six shillings, they shall have my Vote for a Proviso in the Act, That all such per­sons that have let their Land, or lent Mo­ney upon Mortgage, Bonds, or Contracts, within these last one or two and twenty years, (which is as long as Leases are Let, and longer then Mortgages or Bonds generally continue) shall have the same weight of Money paid them out of the Exchequer, as the Money Weigh'd when they Let such Land, or Lent it upon Bonds, Mortgages, or Contracts. And because such Gentlemen, perhaps, may not keep an account of what their money weigh'd then, let the accompt be taken from the Teller's Book in the Exchequer, it be­ing their custom to weigh every Hundred pounds after 'twas told, and enter the weight in their Books, and put a Ticket of the weight to the Bag, to save 'em the trouble of telling the money twice. By this Proposal such Gentlemen will have no reason to complain; for, according to [Page 91] their own opinion, if they have the same weight of Silver they can't be losers. And yet, I believe the Government would be a gainer by the Proposition, though the money were Coin'd a Sixth part ligh­ter than according to the present Standard.

For if those Books were examin'd, per­haps it will be found, that an Hundred Pound has not weigh'd, one Bag with ano­ther, Seven and twenty Pound, for these last One or two and twenty Years; whereas it ought to weigh. according to the Standard, Thirty two Pound three Ounces. By such a Proviso these Gentlemen being sav'd, they may thereupon consent to the raising of the money, to prevent those great Inconve­niences which, in my opinion, will certainly follow, if the money be not rais'd.

There is another Objection which some Gentlemen use against Raising the Value of the Money, That it will be a Discredit to the Nation, to make their Money lighter. And in their Arguments contend much for the Ho­nour of the Standard of England, and think it is their Duty to defend it: And that His Majesty's Money ought to be of as great Weight and Value as His Predecessors; be­ing of the opinion, That the Money has its sole Value from the quantity of Silver in it.

By this Argument, in my opinion, they seem to be but young Courtiers, and make an ill sort [Page 92] of Compliment to His Majesty, by giving a greater Value and Respect to the Metal, than to the Effigies of the King, when they won't allow that the Stamp and Effigies up­on the Coin, gives a Value to the money, and that the King's Authority makes it currant; when all the Coins of his Predecessors were no otherwise made the current money of England, but by their Proclamation.

These are the chief Objections against Raising the Value of the Money, which, I hope, I have fully answer'd, and shewn, That they are only imaginary Mischiefs. But if the Money be not Rais'd, the Mischiefs will be real, and Consequences very fatal to the Nation.

For, if the money be new-coin'd according to the old Standard, it will be certainly melted down, and carried away as fast as 'tis Coin'd, notwithstanding all the Laws that can be made to prevent it, and the Na­tion be left without money: The Conse­quence whereof will be; That Trade will be at a stand; The prices of all Commodities will fall; And a general Poverty and Cla­mour over the whole Nation ensue.

For Money is the measure of Commerce; And for a Nation to be without money, is the same thing as if it were without measures, and had neither Yards, Scales, nor Bushels in the Country; without some of which, no Bargain can be made.

[Page 93]In those Countries where the Inhabitants do not live upon Trade, but a Country-life, every man having always Provisions suf­ [...]icient to sustain life, they may shift without money, and barter one Commodity for ano­ther. But in England, where the great Body of the People depend upon Trade, and that by selling of such Goods, the greatest part of which the People are under no great ne­cessity of having, but may shift without; and have no way of feeding themselves but [...]y the profit of such Bargains, they cannot [...]ive without money; and if there were no money, would starve, because no persons will [...]arter for those Goods that they have no ab­ [...]olute occasion for, if they want money.

Besides, the want of money in a Nation, will bring down the price of all Commo­ [...]ities; for according to the Consumption of [...]l Goods, and the occasion there is for 'em, [...]he price will rise. When money is wanting, men consume less: They are better Hus­ [...]ands, and make every thing last longer; which lessens the consumption of the Native Commodities, and makes the price of them [...]o fall; and if the price of the Native Com­modities fall, the Rents of the Land will [...]nk: For the Tenants cannot pay the same [...]ent, when the Corn and Wooll, and other Commodities, which are the Product of the and, fall to half the Value.

[Page 94]To conclude; There is nothing so much the Interest of the Nation, as at this time to raise their Money. It will increase the speties of the Coin, and save the Nation near a Million of Money, now they are engag'd in a chargeable War. And if there were no other Reason but this, which has been the cause that several Prince▪ and States have rais'd their Money, and have found great Success by't, it were an Argument sufficient.

For if all the money should be new-coin'd to th [...] old Standard, it would not produce much above ha [...] the quantity of the money before it was new-coin'd And there might be several Instances given beside that of the Romans and French, where Princes and States have Rais'd their money in time of War, o [...] purpose to increase the quantity of it: But not on President, where by new-coining of it in the tim [...] of War, the quantity has been made less.

Besides, There is a greater Reason for Raising th [...] money, while the War continues in Foreign Part because, during the continuance of the Army i [...] Flanders, the Exchange to those places will he high because of the constant occasion to remit mon [...] to those Parts to pay the Army. But if the mon [...] be Rais'd above the price of Bullion, the Dutch [...] Flemish Merchants that pay the Bills of Exchange [...] Flanders with their money, with which the Army [...] paid, will send for their Effects in Bullion, or the N [...] ­tive Commodities of England, because it will [...] more profitable to them if the money be Rais'd; b [...] if it be not Rais'd, it will be more profitable to me [...] down the money, and send it away, than Bills of E [...] ­change. By which, in a short time, there will be [...] money left in the Nation.

For, the Merchant is paid for the remitting t [...] money, at the first making of the Bargain; and no [...] ever expected to make an advantage by melting do [...] the money of the Country, and sending it away. F [...] if so, the Merchant need not pay for the Bill of E [...] ­change. [Page 95] But he proposes to have his Return made of his Bill, by the Goods and Effects of the Country from whence the Bill was sent, and that will be much more for the advantage of the Nation; for the Stock of the Nation is perpetual. There is a new Crop of Corn and Wooll every Year, and the Mines are never to be exhausted. And the paying of the Foreign Bills with the Native Stock of the Country, which is the usual way that all Foreign Bills are paid, can never prejudice a Nation.

Besides, If it were not in a time of War, the Sil­ver money ought to be Rais'd, because the Foreign Princes have Rais'd their money twice, since the Sil­ver money has been Rais'd in England. And 'tis the constant usage of all the Foreign Princes and States in Europe, to set a pretty equal Valuation upon their money above the price of Bullion, and to Raise their money much about the same time; or else the money of the Country where 'tis not Rais'd, would be melted down by the Merchants, and carried to the Mints of those Countries where it is Rais'd, and the Bullion yields a greater profit; and so, in a short time, there would be no money left in that Country. The truth of which has been sufficiently shewn from the great quantity of Silver money, being above Fifteen Millions, that has been melted down since the Silver money was Rais'd in England; and there will be the same Consequence, if the money be now coin'd to the old Standard, because the money is of more Va­lue when 'tis melted into Bullion, than in Coin.

Some are of opinion, that the way to keep the Sil­ver Money in the Nation, is to sink the price of the Gold; And would have Guineas brought to Two and twenty, believing that the Silver Money will be bought up by the Gold, and exported. By this way of arguing, they must agree that Silver is of a greater Value in another Country; or else, there would be no advantage got by exporting it. And if the Gold [Page 96] be set at Two and Twenty, or Five and twenty, it won't preserve the Silver; because every Merchant and Trader may take the Silver Money by the Sale of his Goods, and need not buy it with the Gold. And if Guineas be sunk to Two and twenty, it will be a severe Loss to those People that have taken them at higher Rates; And a damage to the Nation, by less­ning the quantity of the Coin; and by low'ring the price of them, may cause them to be exported: So that there will be neither Gold nor Silver left in the Nation.

To conclude this Discourse: If nothing in it self has a certain Price or Value; If Gold and Silver are Commodities of uncertain Values. If Money has its Value from the Authority of the Government, which makes it currant, and fixes the price of each piece of Metal; Then the Money will be of as good Value, to all intents and purposes. when it is coin'd lighter. For, the Authority being the same, the Value will be the same. It will buy as much Goods: The Landlord will have as much Rent; And the Nation will save a Million of Money▪ at a time when they have so great occasion for it. Besides the preventing those fatal Consequences that follow the Coining the Mo­ney too weighty; As, The Loss of the Money; De­cay of Trade; The Fall of Rents; And a general Poverty and Clamour all over the Nation.