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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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to the said Merchants or others which doe practise vpon the Benefite of moneys to bee made betweene the exchange and moneys For the Rule is infallible That when the exchange doth answer the true value of our moneys according to their intrinsicke weight and finenesse and their extrinsicke valuation They are neuer exported because the Gayne is answered by exchange which is the Cause of Transportation This cause being preuented maketh the effect to cease and this is engraffed in euery mans iudgement according to the Maxime often noted heretofore Sublata Causa Tollitur effectus So that exchange still hath the command and striketh the Stroake insomuch that albeit the price thereof riseth and falleth according to Plenty or Scarcity of money yet moneys are ouerruled thereby For if you inhaunce the Coyne the exchange doth controlle it and rise accordingly And if you vndervalue the same The exchange in like manner doth fall in price Wherein note the operation of exchange both here and beyond the Seas in places where exchanges runne vpon the pound of 20. shillings Starlin If the inhauncing of Coyne be beyond the Seas and the exchange be not made accordingly Then our moneys are carried out If the inhauncing of Coyne were made here E contra moneys would bee imported But the merchant Stranger who obserueth the rule of exchange and will not be ouer-taken as wee ●…e will ouer-rule the same ipso facto and ●…e you so much lesse in exchange as we shall ●…haunce our Coine by valuation or imbase the ●…e by Allay In like manner if you Cry ●…wne moneys beyond the Seas Th' exchange ●…ll alter in price accordingly and if you Cry ●…wne moneys here or vnderualue them by ●…me Th' exchange ought to Rule and to make ●…e denomination accordingly in price and still ●…maineth Predominant ouer moneys and com●…odities For euen as Commodities being the ●…dy of Trafficke draw vnto them moneys and therein may seeme to be Actiue yet mo●…y being the right iudge or Rule which gi●…th or imposed a price vnto Commodities 〈◊〉 the Thing Actiue and Commodities become 〈◊〉 thing Passiue Euen so although money is ●…e Subiect whereupon exchanges are made 〈◊〉 ●…et still th' exchange is made to Rule moneys To the end that the value thereof should bee ●…nswered by the Publike Measure of exchange To preuent all abuses and inconueniences ari●…ng by the price of Commodities and the va●…uation of moneys in exchange which moneys are either Reall or imaginary according to the Custome of the place of exchange by the deuice of Bankers This was Seriously obserued in the yeere 1576. by diuers most honourable and Graue Counsellours of State Namely Sir Nichol●… Bacon Lord Keeper of the great Seale Sir Willam Burghley Lord Treasurour of England T●… mas Earle of Sussex Francis Earle of Bedfo●… Sir Francis Knowles Sir Iames Croft and M●… ster Secretarie Walsingham with the assistan●… of other worthy persons of experience nam●… ly Sir Thomas Chamberlaine Sir Thomas Gr●… ham Knight Master Peter Osborne Mast●… Iames Altham Master Thomas Riuet and M●… ster Richard Martin Master of the Minte 〈◊〉 they found that the following inconuenience were practised by Bankers or exchangers for th●… Priuate gaine and benefite for the aduancing some Common-weales and ●…e the destruction other Common-weales To lay their money with Gaine in any place of the world where exchange lyeth To Gaine and waxe Rich and neuer medd●… with any Princes Commodity or To buy any Princes Commodity with th●… Subiects money and not one pennie of their owne To vnderstand whether money employed on exchange or Commodities is more profit To liue and increase vpon euery Princes Subiect which take vp moneys To winde out euery Princes Treasure out of his Realme whose Subiects bring in more Wares then they carry out To make the Staple of money Runne where the Rich Prince will haue it To vnfurnish the poore Prince of his prouision of money in Warres To furnish their need of money that tarry the selling of their Wares or Commodities To take vp money to engrosse any Commodity or to incorporate any Trade To hide their carrying away of any Princes money To fetch away any Princes fine money with the baser money of other Princes To take vp Princes base money and turne it into fine and pay the party with his owne To get all Merchants money into their hands and gaine thereby and paying them with their owne To make that Realme gaine of all other Realmes whose Subiects liue most by their owne Commodities and sell yeerely the ouerplus into the world and both occupie that increase yeerely and also their old store of Treasure vpon exchange To vndoe Realmes and Princes that looke not to their Common-wealth when the Merchants wealth in such and the great houses of one Countrie conspire together so to rule th'xchange that when they will be Deliuerers they will receiue in an other place aboue the Standard of the Minte of the Princes money deliuered and when they will be Takers they will pay the same in an other place vnder the Standard of the Princes money taken vp To get ready money to buy any thing that is offered cheape and to raise the price of Wares To get a part and sometimes all his Gaines that employeth money taken vp by exchanges in Wares and so make others trauell for their Gaine To keepe Princes from hauing any Customes Subsidies or Taxes vpon their money as they employ it not To value iustly any Wares they carry into any country by setting them at a value as the money that bought them was then at by exchange in the Countrie whither they bee carried By the premisses we may see of what importance the operation of exchange is wherein the endeauours of Sir Thomas Gresham thinking to rule th' exchange of England by plenty of money proueth fruitlesse and might haue beene done with more facilitie by direction as shall be made manifest This was the cause that the French King Lewys the ninth and Philip the faire did Consiscate the Bankers Goods and so did Philip d●… Ualois who indited them as Coozeners of the Common-wealth for it was found that in a short time with 24. thousand pounds they had gotten ●…e and twentie hundred thousand pounds The kingdome of England would haue beene more sensible of the like losse if the hostile depredations heretofore made had not supplied the same notwithstanding that the offers of Queene Elizabeth of blessed memory ●…ere stored with seuen hundred thousand ●…unds Starlin before the Warres with the ●…rle of Tyrone in Ireland wherein more then ●…uble that Summe hath beene spent as I found 〈◊〉 the accompts For this disordred course of ●…change as I haue said is like to the cruelty of ●…e Planet Saturne which maketh his Spheri●…ll course in 30. yeeres with great operation ●…d it is not many yeeres lesse since I haue ob●…ued this inconuenience for the good of the ●…ealme albeit Enuy hath crossed