’Tis thought the Dutch coin lued’ores, and send them to France, where they pass at 14 livres. and, that guineas were sent from Holland to England, in the time of the clipt money; because they past there for 30 s. but these people are misinformed. ever since I have known any thing of exchange, a lued’ore at Amsterdam whether new or old, has been of more value by exchange, than a new lued’ore at Paris. and in the time of the clipt money, a guinea in Holland was worth more by exchange, than a guinea in England. these who were ignorant of the exchange, might buy up guineas or lued’ores, to carry to England or France, but they would have got more by bill. there was a profit then upon exporting guineas and lued’ores from England and France to Holland. the pound English at that time was given for 8 guilders, or under; and the exchange from Amsterdam to Paris has been these 8 or 10 years for the most part, considerably above the par on the Dutch side. I have known the pound English at 7 guilders 13 stivers, and the French crown of 3 livres bought in Holland for 37 stivers, in London for 39 pence half penny.
Raising the money in France is laying a tax on the people, which is sooner payed, and thought to be less felt than a tax laid on any other way. when the King raises the lued’ore from 12 livres to 14, they are taken in at the mint for 13 livres, and given out for 14; so the King gains a livre on the lued’ore, and this tax comes to 20 or 25 million of livres, sometimes more, according to the quantity of money in the country. but so far from adding to the money, it stops the circulation: a part being kept up till there is occasion to export it to Holland, from whence a return is made by bill, of a sum of livres equal to the same quantity of new lued’ores that were exported of old ones, and 8 or 10 per cent more, according as the exchange is on the Dutch side. others who won’t venture to send the money out, keep it till the new money is cryed down, so save a 13th part, which the King would have got if they had carried the money to the mint to be recoined. this tax falls heavy on the poorer sort of the people.
’Tis generally thought the Dutch money is not worth half what it passes for. but it will prove otherwise when examined. the bank by which most payments are made, receive and pay in bank money, which is better than the English, ducatdowns are at 3 guilders, and other bank money in proportion; and I’m informed the current money has silver in it to the value or near, except some of their skellings which are worse than others: the making them worse was not design’d, it was an abuse occasioned by too many towns having power to coin: which abuse was stopt so soon as known, and that species cryed down to 5 stivers and a half.
Some propose the money may be raised, to give the little we have left a better circulation, and to bring out hoarded money. the lowering it by degrees to take place in 3 or 4 months, will have the same effect; and other good consequences: for, from what has been said, page 54 and 55. there is reason to think, if the money were lowered to the English standard, exchange would be on our side, and a ballance due us: providing the export, the import, and expence abroad continued as now.
There is another argument for raising the money, which is, that some goods don’t yield profit enough abroad, so are not exported. if serges worth in Scotland a 100 lib. are worth 120 in Holland, the merchant won’t export them for 20 per cent profit: but if the money is raised 20 per cent, and goods keep at the prices they had before, the same money that bought 100 lib. of serges, buying now to the value of 120 lib. and these goods being worth in Holland 144 lib: that addition to the profit by raising the money, will occasion the export of them.
This is the same as if a merchant who had a 100 different sorts of goods, and was offered 30 per cent profit upon 90 of them; but no body offering above 20 per cent profit for the other 10 sorts, should add a quarter to the measure by which he measured his goods, and sell all the 100 sorts for the same price he sold them before: as this merchant would find himself a considerable loser by this expedient, so will a nation who raises their money.
For the same reason, it would be a great loss to Scotland if all goods were allowed to be exported without duty; some ought to be free of duty, and some not, according to their value abroad.
The true and safe way to encourage the export of such goods, as do not yield great enough profit; is by a draw-back. if serges sent to Holland give only 20 percent profit, 10 per cent given as a draw-back will encourage their export: the draw-back given to the merchant is not lost to the nation, and what is got by the manufacture or export of the goods, is gained by the nation.
A draw-back is the best method yet known for encouraging trade, and it may be made appear, that 10 or 15000 applyed that way, will occasion an addition to the export to the value of a 100000 lib. nor is any part of that 10 or 15000 lib. lost to the nation; for, if A. B. and C. Scots-men get such draw-back, it is the same thing to the nation, as if it had not been given. when draw-backs are paid out of funds for the support of the government, little money is applyed that way; because, so much is taken from the prince: but, if there was a national fund for the encouragement of trade, that nation might improve trade, and undersell other nations that did not follow the same measures. but this is supposing there was money in the country to imploy the people.
Coining the plate were a loss of the fashion, which may be valued one 6th, and would add little to the money: the plate at the restauration was inconsiderable, having been called in a little before. since there may have been wrought one year with another about 60 stone weight; of that a great part has been melted down, or exported, the remainder won’t be of great value. what plate has been imported belongs to a few men of quality, who will send it out of the country rather than lose the fashion; and in that they do a service to the country, providing they don’t spend it abroad, because wrought plate will sell for more silver at London, than it will melt to here.