Since the exchange being 6 per cent above the par, occasions the loss of 21721 lib. then raising the money 8 and a one third per cent, having raised the exchange with England to 14 per cent, and with Holland to 30, makes the loss proportionably greater: Scots goods being supposed to continue at the same prices they were sold for, before the money was raised, or not to rise in the same proportion with the money. for when exchange was at the par, a 100 lib. of Scots goods were sold abroad for a 130 lib. English money; but 114 lib. English money, being now equal by exchange to a 130 lib. in Scotland, the Scots merchant can afford to sell the same quantity of goods for a 114 lib. that he sold before at a 130, and have the same profit. so foreign goods worth abroad a 100 lib. and sold in Scotland for a 130 lib. when exchange was at the par; cannot be sold now for less than a 150 lib. in Scotland, that sum being only equal to a 130 lib. English money; and the merchant’s profit is no greater, than when he sold the same quantity of goods for a 130 lib.
It may not be improper to consider what consequences would attend the lowering the money to the English standard, and allowing it to be exported.
The former state of trade I have supposed to be carried on, one half by Scots merchants, the other half by English and Dutch; but as most of the trade is carried on by Scots merchants, I shall suppose this state of trade accordingly. the one or the other will clear the matter in question.
The state of trade now, and exchange supposed at 15 per cent to England, and 30 to Holland. the whole export of Scotland to be 300000 lib. of which 250000 lib. carried out by Scots merchants, sold at 30 per cent profit and charges 325000 lib.
| In English money | 282608 |
| Exported by foreigners for 50000l. in English money | 43478 |
| The whole export | 326086 |
| Goods imported | 306086 |
| Spent abroad. | 40000 |
| Due of ballance by Scotland. | 20000 |
Money being lowered to the English standard, and allow’d by law to be exported; will bring the exchange with England to 2 or 3 per cent, and with Holland to 17 or 18, notwithstanding of the ballance due. for, as a 100 lib. in Edinburgh, would then be equal to 100 lib. at London, and being allowed to be exported; none would give above 102, or 3 here for a 100 lib. at London: because the trouble and charge of sending it to London, would be valued no higher. the export, import, and expence abroad supposed to continue the same; a ballance would then be due to Scotland.
The state of trade, exchange at 3 percent to England, and proportionably to other places.
| Due in English money, for 325000l. first cost, charges and profit of goods sent out by Scots merchants. | 315534 |
| Due in English money, for 50000l. of goods exported by foreigners. | 48544 |
| The whole export | 364078 |
| Of this deduce the value of goods imported. | 306086 |
| And the expence abroad. | 40000 |
| There will be a ballance due to Scotland, of | 17992 |
As this ballance due to Scotland, would bring exchange to the par, and 3 per cent on the Scots side; 3 more, because money in England is prohibited to be exported; 100 lib. in Scotland, would be worth 106 lib. in England, and proportionably in other places. so the state of trade would then be thus.
| Due in English money for 325000l. first cost, charges and profit of Scots goods sent out by Scots merchants, and 50000l. exported by foreigners. | 397500 |
| Of this spent abroad. | 40000 |
| Imported from abroad. | 306086 |
| Ballance then due to Scotland. | 51414 |