It's thought the Dutch Coin Lue d'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 sh. But these People are misinformed. Ever since I have know any thing of Exchange, a Lue d'ore at Amsterdam whether new or old, has been of more Value by Exchange, than a new Lue d'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 Lue d'ores, to carry to England or France, but they would have got more by Bill. There was a Profit then upon Exporting Guineas and Lue d'ores from England and France to Holland. The Pound English at that time was given 8 Guilders, or under; and the Exchange from Amsterdam to Paris has been these 8 or 10years 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 pay'd, and thought to be less felt than a Tax laid on any other way. When the King raises the Lue d'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 Lue d'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 Lue d'ores that were exported of old ones, and 8 to 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 cry'd down, so save a 13th part, which the King would have got if they had carried the Money to the Mint to be Recoin'd. This Tax falls heavy on the poorer sort of the People.
Its 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 inform'd 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 cry'd down to 5 Stivers and a half.
Some propose the Money may be rais'd, 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 30 and 31. There is reason to think, if the Money were lower'd to the English Standard, Exchange would be on our side, and a Ballance due us: Providing the Export, the Import, and Expense abroad continued as now.
There is another Argument for raising the Money, which is, that some goods don't yield Profit enought abroad, so are not exported.
(Ex.) If Serges worth in Scotland a 100 lib. are worth 120 in Holland, the Merchant won't export them for 20 per cnet profit: But if the Money is rais'd 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 offer'd 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 measur'd 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. (Ex.) If Serges sent to Holland give only 20 per cent 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 gain'd 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. Scotsmen get such draw-back, it is the same thing to the Nation, as if it had not been given. When Draw-backs are payed 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 undersel other Nations that did not follow the same Measure. But this supposing there was Money in the Country to imploy the People.
