An exchange hereof, wee have yet fresh in memorie, during the Raigne of the French King Charles the ninth, who after the Massacre of Paris, finding the Treasure of the Realme exhausted, nad his Subjects wealth to consist more of Plate then of ready Money, was advised by some, that under colour of the Supressing of Pride, it were good to prescribe every man, what store of Plate he should keepe, according to his degree & qualitie, & the rest to be turned into moneys: others were of opinion, that it would nto only breed a discontent unto his Subjects, but also a derogatin and dishonour to the Kings Reputation with forraine Nations: Seeing, That the State of a Prince, doth as much consist by reputation, as by strength, Therefore like good Politians, advised the King somewhat to imbase his money under the Standard of the Plate, which would cause the lesse exportation, and the Plate (of course) to bee turned into money: and this was done accordingly, and had also the same effect, saving that where they thought money, would not be Transported; they found themselves deceived, for the course of exchange was not looked into, which, not being answered according to the true values of the moneys, made a Gaine by the undervaluation of them in exchange, and so long as the Gaine remained, it was continually Transported, whereby at last the Plate of the Realme (turned into money) was lost; aswell as he lost his money before that time: and so it came to passe in England, during the Raigne of King Henry the eight, who Granted several Letters Patents, or Authorities to divers of his Nobles to make base moneys of their owne Plate, which did fall out ot be the greater prejudice to the Common-wealth, and to himselfe but a present shift for the time.
Concerning the Gold and Silver thread, I have heretofore endevoured to have the Manufacture thereof in England, upon plenty of money and Silver to bee procured from forraine parts by meanes of th'exchange. But finding of late such unreasonable Consumption of silver therein spent after the refining thereof, and the uncertainty in goodnnesse by the Wier-drawers: it pleased his Majestie with the advice of his most Honourable privy Councell, to forbid the same lately by Proclamation, and to admit the forraine silver Thread to come in; whereby our Silver is not only preserved, but the quantity also is increased, because after the wearing a good part, remaineth in burnt Silve, whereas the Silke lace is consumed to nothing. And such is the Gaine of Silver beyond the Seas (in regard of the lowe exchange by Bills, undervaluing our moneys,) that Purles & Oaeses (in some sort prepared here) have been (by way of Merchandise) Transported of purpose to melt the same downe there, for the making of moneys, as I have seene by divers Certificates from Dort in Holland.
The third Cause of the Want of Moneys in England, is the Consumption of forraine Commodities, which I have alwayes called, The overballancing of those Commodities, with the native Commodities of the Kingdome, in Price, and not so much in the quantitie. And the comparison hereof is, principally to be made in the Trade of cloth, and the Returne of it, made by Forraine Commodities, At Silkes, Linnen cloth, Cambrickes, Lawne, and other the like Commodities brought in by the Merchants Adventurours which have the Maine Trade, and buy these Commoditis (proportionably) dearer then they sell our home Commodities;which I have proved, by many reasons to proceed, by the abuse of exchange, according to which, they are both waies sold and bought. Is there any man of judgement, who seeth not, That this overballancing doth expell our moneys out of the Realme, and which are (in effect) as it were given to boote to other Nations to Countervaile this inequalitie? Let them consider of the Reasons following.
First, moneys being undervalued in exchange, causeth the price of our home Commodities to be abated, and to bee sold better cheape in forraine parts, & is also the cause that our moneys are continually Transported.
Secondly, the moneys being Transported, taketh away the lively course of Traffique of our said Commodities, and causeth young merchants to Runne by exchanges upon Bills to maintaine their Trade, paying great Interest for money, which they cannot take up at Use upon their single Bond, as they can doe by a Bill of exchange, without Sureties.
This causeth the said young Merchants and others to make rash Sales of their Commodities beyond the Seas, to pay their Bills of exchanges, whereby they overthrow the Markets of others, and make them to Sell good cheape.
So on the contrary, the Coynes being over-valued in exchange, and also inhaunced beyond the Seas, causeth the price of forraine Commodities to be increased more then our home commodities, and our Merchants are compelled of course, to make Returne thereby. For they cannot import those overvalued moneys, but to their exceeding great losse; and by exchange, they finde few Takers, unlesse it be our young Merchants, which doe consume their Estates by exchanges & Rechanges: For of the Three Essential Parts of Traffique, we have but the use of one, which is the buying of forraine Commodities to make Returnes homewards, and doth increase the consumption of the said Wares.
Moneys remaining hereby plentifull beyond the Seas, the rather for that they make Bills obligatory, serve as ready Money, which they Transferre and set over betweene man and man for the paiment of Moneys or Wares; causeth there a lively course of Trade, whereby their Commodities are advanced in price & sale, neither are they compelled to sel them, but at their price, because they finde money at interest at 5 and 6 in the hundred.
