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A06789 The maintenance of free trade according to the three essentiall parts of traffique; namely, commodities, moneys and exchange of moneys, by bills of exchanges for other countries, or, An answer to a treatise of free trade, or the meanes to make trade flourish, lately published. ... By Gerard Malynes merchant. Malynes, Gerard, fl. 1586-1641. 1622 (1622) STC 17226; ESTC S120064 50,433 116

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That the Actiue Part of sayling is to bee ascribed thereunto seeing it driueth the ship according to all the points of the winds and variation of the Compasse being fastened vpon the Paralell of the Keele of Equality Shipwrights will tell you That if it be not Rightly placed it doth interrupt sayling and if it be not of Competent length but that the vpper building of the ship doe sway the same it maketh a ship vnseruiceable That neither the direction of the Compasse nor the Receptacle of the Sailes forewind can make her performe her voyage as other shippes doe I perceiue you are like vnto him that did attribute to the letters of a clocke diall the shewing of the houre and not to the hand or Index which is the Actiue thing to shew you the same albeit it can not doe the same without the other which is the Thing Passiue you must therefore truely distinguish and attribute the efficient Cause of Sayling to the Rudder of a Ship and the other are called Secondary or meane Causes And they all agreed that this obseruation was true Is not the Moderne Merchant of Hackney or the Author of the Treatise of Free Trade like vnto these Nouices who perceiuing two great whales to haue assaulted the English ship of Traffique The cruellest being the warres in Christendome and the Pirates The other more gentle being the Policy of Princes and States in the Course of Trade hath published in the yeare of Grace 1622. The Causes of the decay of Trade in England and the meanes to make the same flourish without obseruation of the operatiue power of exchange which is the Rudder of the Ship of Traffique fastened vpon the Rule of the equalitie of Moneyes according to their weight and finenesse to bee denominated by the valuation of Princes as a matter peculiarly appertaining to their Praerogatiues And because that therein hee hath like vnto Esops Iay clad himself with the feathers of other Birds I hope it will not be impertinent To vnmaske his discourse and neuerthelesse to supply according to my former Treatises The maintenance of free Trade wherin I endeauour to be Compendious and Substantiall and to follow his Method and some distribution for the better vnderstanding as a most important businesse of State which is the cause that so many Statutes and lawes haue beene made concerning moneyes and exchanges 2. So many Proclamations for the due execution thereof haue bin published 3. Lastly so many Treatises and Conferences haue beene had from Time to Time Both with other Princes and within our selues which in the iudgement of the said Author are neglected as vnnecessary or by ignorance not mentioned concluding with him That as there are many causes discussed and discoursed of at this time of the decay of Trade So are there many Remedies propounded wherein if either the Principall Causes be mistaken as hee hath done or defectiue Remedies propounded The present disease of this Trade may increase and cast the Body into a more dangerous Sicknes For the effici●… Cause being vnknowne putteth out the Phisitians eye as the Prouerbe is Now let vs come to the handling of the particulars in order and afterward to the True Remedies which must arise from the matter of exchange as shall bee plainely demonstrated to the iudicious Reader voide of partiality for the exchange is the faculty or Spirit of the soule of moneyes in the Course of Traffique CHAP. I. The Causes of the VVant of Moneys in England THis Assertion we shall now bring to the hammer the Anuel and the Touchstone namely to firme Reason by his owne first Argument of the immediate Cause of the want of money in England alleaged by him to bee the vnderualuation of his Maiesties Coyne where he saith by way of interrogation Who will procure licence in Spaine to bring Realls into England to sell them here at Tenne in the hundred Gaine which is lesse then the exchange from thence will yeeld when he may haue for the same fiue and twenty in the hundred in Holland Here in an obscure manner he obserueth the exchange from Spayne to be Sixe pence the Reall as value for value or the Par in exchange whereby it is lesse as hee saith and hee doth account the price of 8. Reals at 51. Stiuers in Holland and the Rate of exchange at 33. shillings 4. pence Flemish to answer our 20. shillings Starlin as at Par pro Pari for those parts howbeit that 42. shillings 6. pence Flemish payde there for the 5. Realls of 8. make 25. shillings 6. pence Starlin according to that Computation howsoeuer wee see that this is grounded vpon the exchange which is the efficient Cause thereof otherwise the 15. in the hundreth to be gotten in Holland more then in England is altogether imaginary and not Reall For example let fiue of these Realls of 8. be bought here for 22. shillings Starlin and bee transported into Holland and there buy commodities with the same according as the price of them is inhaunced there no man maketh any doubt but that the said Commodities are also raised in price according to the money inhaunced So that the gayne becommeth vncertaine for the Commodities may be sold to losse But the merchants trading in Spaine which cause their Realls to be sent from Spaine thither or doe transporte them from the Downes Rely wholy vpon the lowe exchange whereby they are inabled to deliuer their money there by exchange at an vndervalue in giuing there but 33. shillings 4. pence and vnder to haue 20. shillings Starlin ●…ayed by Bill of exchange in England whereby ●…he kingdome maketh good vnto them the said ●…5 vpon the hundreth For this Reall of 8. was valued but at 42. Stiuers when the Par of exchange was made to be 33. shillings 4. pence in the yeare 1586 when Robert Dudley Earle of Leycester went to take the gouernment of those Countries And shal we now receiue in exchange the said price of 8. Reals for 51. Stiuers which is aboue fiue shillings and one penny Starlin because they haue inhaunced the same to their advantage and continue the Par of exchange at 33. shillings 4. pence by which Computation the said 42. Stiuers make but foure shillings two pence halfe penny or thereabouts in true value Absit ignorantia Whereas if our merchants of Spaine should giue the saide price there in exchange for 42. Stiuers as they did formerly and may be done by order of exchange They shall not finde thereby Ten in the hundreth gaine which they can make here more certaine and commodiously whereby this money will be imported without inhauncing of our Coyne This is so plaine in the vnderstanding of Merchants that there needeth no other explanation for it demonstrateth manifestly that if the lowe exchange were not This Gayne would prooue to be Imaginary as we haue noted And this causeth these Realls of Spayne to be diuerted from vs and might els be imported
price of our exchange and no●… by inhauncing of our monyes can bee easily preuented as heereafter shall bee declared This Doller is likewise since that time more inhaunced in Germany from time to time and leauing the excessiue alteration in Remote places let vs note the Ualuation of Hamborough where it hath beene at fifty foure Stiuers the Doller which maketh the exchange aboue forty shillings of their money for our twenty shillings And although we haue raised the price of exchange from twenty foure shillings nine to thirty fiue shillings or thereabours shall we rest here and goe no further haue we reason to doe it in part and not in the whole according to iustice equity and true Policy And shall we bee like a man that by halting in iest became same in earnest I say againe Absitignorantia Thus much Obiter CHAP. II. The Causes of the Decay of Trade in the Merchandize of England THE Moneyes of Christendome which haue their ebbing and flowing doe shew their operation vpon Commodities making by Plenty the price thereof deare or by Scarcity better cheape And on the contrary by exchange we finde that plenty of money maketh a Low exchange and the price of monyes to fall in exchange and that Scarcity of money maketh a high exchange and the price to rise ouerruling both the price of moneys and Commodities which beeing obserued by the great exchangers or Bankerers caused them to inuent all the meanes to compasse the same and to rule the course thereof at their pleasure hauing the maine sea of exchanges wherein the exchange of England runneth like a Riuer or Branche and is ouerruled by the generall Currant which may be preuented for we haue the head of exchange of 20. shillings Starlin for the places where most of our Commodities are sold which will command all the parts members of the body of Traffique and procure plenty of money whereby the other causes of the want of monyes in England as the waste of the treasure and the like will not be so sensible as ●…ow they are especially when needfull Commodities of Trade shal be imported from some pla●…es which shall supply as in times past the exportation of much money when the Commodities of Russia being Tallow Waxe Hides retransported into France and Spaine did by exchange furnish the Realme with Wines Corints Raisons and the like Commodities The Want of Money there is the first cause of the Decay of Trade for without money Commodities are out of request And when they fall againe into Permutation or Barter Traffique is subiect to the necessity of Merchants which ●…endeth to the destruction of one Common-weale and to the inriching of an other And this is effected by the exchange as the graue and wise Coūsellors of State before mentioned haue very well obserued whereof Aristotle and Seneca could take no notice in the infancy of Traffique which maketh me to forbeare to alleadge their opinions and definitions howbeit Commercium is quasi Commutatio Mercium which the said Author would turne againe by a change of wares for wares and not money for wares No maruell therefore that hee doth inuert things and runneth into a Labyrinth without distinction betweene the thing Actiue and the Passiue by approouing Money to bee the rule and square whereby things receiue estimation and price And yet commending the Commutation before Money was deuised to be coyned Aristotle saith That Action and Passion are meerely Relatiues and that they differ no more then the way from Thebes to Athens and from Athens to Thebes We will therefore leaue this Merchant to walke betweene both vntill hee can discerne the one from the other And then he shall finde that as the Liuer Money doth minister Spirits to the heart Commodities and the heart to the Braine Exchange so doth the Brayne exchange minister to the whole Microcosme or the whole Body of Traffique Let the heart therfore by the liuer receiue his Tinctured Chilus by his owne mouth and stomacke and the blood full of Spirits shall fill all the Ueines and supply the want of monyes The easie course and recourse of whose exchange shall bring all things in time and serue all mens turnes For euen as there are two Courses obserued of the Sunne the one Annuall and the other by dayly declination rising and going vnder euen so must wee obserue in exchange two Courses the one according to Par pro Pari or value for value the other rising and falling from time to time as wee haue already declared The second Cause of the decay of Trade saith he is Vsury meaning Vsury Politicke wherein he is preuented to speake because of a Treatise made against Vsury by an vnknowne Authour and presented to the last Parliament for whom he taketh great care that hee be not abused as Virgill was by proclaiming too late Hos ego versiculos feci tulit alter honores True it is that the said Authour doth not attribute vnto himselfe the making of verses but taketh the whole substance of his discourse out of other mens workes published aboue twenty yeares since Turpe est Doctori dum culpa redarguit ipsum Cato Usury in a Common-wealth is so inherent and doth properly grow with the decay of Trade as Pasturage doth increase with the decrease of Tilling Albeit in some respects Trade is increased by monyes deliuered at vse or interest vpon occasions when the Vsurer is glad to finde a taker vp of his monyes and doth pray him to doe the same by reason of the abundance of money which maketh the price of Vsury to fall more then any Law or Proclamation can euer doe So that to abate the Rate of Tenne vpon the hundred to eight as the saide Tract against vsury would haue had the Parliament to do will be effected of course which alwaies hath the greatest command This doth also much preuent that the Rule of Concord and Equality is not so soone broken and ouerthrowne in Common-weales some growing very rich and others extreame poore not able to liue in their vocation The most pregnant cause of discord causing many times Ciuill warres as Cornelius Tacitus hath noted and appeareth in another Treatise where the operations of Usury are described The biting Vsury intolerable extortion committed by certen vncharitable men commonly called Brokers for pawnes is not to bee touched in a word for this is the only the remarkable sin I meane extortion oppression for which the first world was drowned which feedeth vpon the sweat blood of the meere merchanicall poore taking 40 50. 60. 100. vpon the 100. by the yeare besides Bili money and for feiture of the pawnes when charitable persons haue offered aboue 20 yeares since to giue largely and to lend moneys Gratis as also after 10. in the 100. to supply by way of pawn-houses by some called Lombards the need and occasions of the poore mechanicke people the neglect