That a Guinea in Holland and Flanders is now but 26 s. or to speak more properly and plainly too, so many Rials, or Dolars and Stivers as bear Proportion to 26 s. of our Money.
At that Rate they there buy our Guineas of Officers, which they can’t be hindered carrying over in their Pockets; then the Holland and Flemming Merchants send back to us the same Guineas to buy therewith our Staple Goods and Manufactures.
Here they are received at 30 s. And their Factors here, who buy our Manufactures as cheap of the Clothier or Stocking-Seller as our own Merchants, send back for 1000 Guineas. (for Instance) Received from Holland 1500 Pounds worth of our Goods, which when the Dutch or Flemming Merchant receives, he finds by his Accompts that these Goods stand him in no more than 1300 l. So that he has received beyond Sea the like Goods for 1300, &c. which hath stood our English Merchant in 1500 l. The English and Flemming Merchants then ship off each their Goods for Spain, Turkey, the East or West-Indies, and there they go to Market to sell these Goods, and the Flemming under-sells the English 13 per Cent. even in these Commodities which are the Product of England.
And now what is the plain Inference? but inevitable Ruine to the whole Trade of the Nation. Here’s an End of Merchandise, and (in Time of Peace) all Use of Shipping.
This I think is the natural and the present Effect of the Rise of Guineas.
But to return to my proper Subject, fare it as it will with Gold, the current Silver Coin of England is, by 3 Parts in 5 too little for our In-Land Trade, and must ruine in Process of time all those Traders who are wont to make several Returns of their Money in a Year; for the Scarcity of Money occasions the giving of longer Credit than is usual, and the giving of Credit hinders the Frequency of Returns.
Again, the Want of Silver Coin occasions the taking of Gold at such high Rates; and the Value of Gold Coin being uncertain, which Silver Coin hath not hitherto been, the Receiver will always allow himself for a probable Loss: (which would be the certain Effect too of making the Valuation or Silver Coin alterable and uncertain) that Allowance makes things bought so much the dearer, and that Dearness puts a Damp upon Trade.
So that the Scarcity of Silver is not only at present too visible, but so long as the Balance of Trade is lightest on our Side, is like to be more and more felt.
Yet the great Naval Stores we buy from abroad, the great Remittances to be provided for the Subsistence of our Armies and Fleets, are things inevitable, and ’tis impossible to hinder the Exportation of Bullion.
But ’tis very easie to hinder the Exportation of Money.