Edinburgh。
PrintedbytheHeirsandSuccessorsofAndrewAnderson，PrintertotheQueensmostExcellentMajesty，AnnoDOM。1705。
ThereareseveralProposalsoffer’dtoRemedytheDifficultiestheNationisunderfromthegreatScarcityofMoney。
ThatarightJudgmentmaybemade，whichwillbemostSafe，AdvantageousandPracticable；ItseemsNecessary，1。ThattheNatureofMoneybeinquiredinto，andwhySilverwasus’dasMoneypreferabletootherGoods。2。ThatTradebeconsidered，andhowfarMoneyaffectsTrade。2。ThattheMeasureshavebeenus’dforpreservingandIncreasingMoney，andthesenowpropos’dbeexamin’d。
Chapter1
HowGoodsarevalued。OfBarter，ofsilver；ItsValueasaMettal，itsQualitiesfittingitforMoney，andtheAdditionalValueitreceivedfrombeingus’dasMoney。
GoodshaveaValuefromtheUsestheyareapply’dto；AndtheirValueisGreaterorLesser，notsomuchfromtheirmoreorlessvaluable，ornecessaryUses：AsfromthegreaterorlesserQuantityoftheminproportiontotheDemandforthem。Example。Waterisofgreatuse，yetoflittleValue；BecausetheQuantityofWaterismuchgreaterthantheDemandforit。Diamondsareoflittleuse，yetofgreatValue，becausetheDemandforDiamondsismuchgreater，thantheQuantityofthem。
GoodsofthesamekinddifferinValue，fromanydifferenceintheirQuality。（Ex。）OneHorseisbetterthananotherHorse。BarleyofoneCountryisbetterthanBarleyofanotherCountry。
GoodschangetheirValue，fromanyChangeintheirquantity，orintheDemandforthem。（Ex。）IfOatsbeingreaterQuantitythanlastyear，andtheDemandthesame，orlesser，Oatswillbelessvaluable。
MrLocksayes，TheValueofGoodsisaccordingtotheirQuantityinProportiontotheirVent。TheVentofGoodscannotbegreaterthantheQuantity，buttheDemandmaybegreater：（Ex。）IftheQuantityofWinebroughtfromFrancebea100Tunn，andtheDemandbefor500
Tunn，theDemandisgreaterthantheVent；andthe100TunnwillsellatahigherPrice，thaniftheDemandwereonlyequaltotheVent。SothePricesofGoodsarenotaccordingtotheQuantityinProportiontotheVent，butinProportiontotheDemand。
BeforetheuseofMoneywasknown，Goodswereexchang’dbyBarter，orContract；andContractsweremadepayableinGoods。
ThisStateofBarterwasinconvenient，anddisadvantageous。1。Hewhodesir’dtoBarterwouldnotalwaysfindPeoplewhowantedtheGoodshehad，andhadsuchGoodsashedesir’dinExchange。
2。ContractstakenpayableinGoodswereuncertain，forGoodsofthesamekinddiffer’dinvalue。
3。TherewasnomeasurebywhichheProportionofValueGoodshadtooneanothercouldbeknown。
InthisStateofBartertherewaslittleTrade，andfewArts—men。
ThePeopledependedontheLanded—men。TheLanded—menlabour’donlysomuchoftheLandasserv’dtheoccasionsoftheirFamilies，tobarterforsuchnecessariesastheirLanddidnotproduce；andtolayupforSeedandbadYears。Whatremain’dwasunlabour’d；orgiftedonconditionofVassalage，andotherServices。
TheLossesandDifficultiesthatattendedBarter，wouldforcetheLanded—mentoagreaterconsumptionoftheGoodsoftheirownProduct，andalesserConsumptionofotherGoods；ortosupplythemselves，theywouldturntheLandtotheproductoftheseveralGoodstheyhadoccasionfor；thoonlypropertoproduceofonekind。So，muchoftheLanduasunlabour’d，whatwaslabour’dwasnotemploy’dtothatbywhichitwouldhaveturn’dtomostAdvantage，northePeopletotheLabourtheyweremostfitfor。
SilverasaMetalhadavalueinBarter，asotherGoods；fromtheUsesitwasthenapply’dto。
AsGoodsofthesamekinddiffer’dinvalue，soSilverdiffer’dfromSilver，asitwasmoreorlessfine。
SilverwaslyabletoachangeinitsValue，asotherGoods，fromanychangeinitsQuantity，orintheDemandforit。
SilverhadQualitieswhichfitteditfortheuseofMoney。
1。ItcouldbebroughttoaStandardinFineness，sowascertainastoitsQuality。
2。ItwaseasieofDelivery。
3。ItwasofthesamevalueinonePlacethatitwasinanother；
ordiffer’dlittle，beingeasieofcarriage。
4。ItcouldbekeptwithoutLossorExpense；takinguplittleRoom，andbeingdurable。
5。ItcouldbedividedwithoutLoss，anOunceinfourPieces，beingequalinValuetoanOunceinonePiece。
SilverhavingtheseQualities，’itsreasonabletothinkitwasusedasMoney，beforeitwascoin’d。Whatismean’tbybeingusedasMoney，is，thatSilverinBullionwastheMeasurebywhichGoodswerevalued：TheValuebywhichGoodswereexchanged：AndinwhichContractsweremadepayable。
HewhohadmoreGoodsthanhehadusefor，wouldchoosetobarterthemforSilver，thohehadnouseforit；Because，SilverwascertaininitsQuality：Itwaseasieofdelivery：ItcouldbekeptwithoutLossorExpense：AndwithithecouldpurchaseotherGoodsashehadoccasion，inWholeorinPart，atHomeorAbroad，silverbeingdivisiblewithoutLoss，andofthesameValueindifferentPlaces。
（Ex。）IfA。B。hada100Sheep，anddesiredtoexchangethemforHorses；C。D。had10Horses，whichwereequalto，orworththe100
sheep，andwaswillingtoexchange：ButasA。B。hadnotpresentoccasionfortheHorses，ratherthanbeattheExpenseofKeepingthem，hewouldbarterhisSheepwithE。F。whohadtheValuetogiveinSilver，withwhichhecouldpurchasetheHorsesatthetimehehadoccasion。
OrifE。FhadnotSilver，butwassatisfiedtogivehisBondforheSilver，ortheHorses，payableatthetimeA。B。wantedthem；A。B。
wouldchoosetotaketheBondpayableinSilver，ratherthaninHorses：BecauseSilverwascertaininQuality，andHorsesdiffer’dmuch。SoSilverwasusedasthevalueinwhichContractsweremadepayable。
SilverwaslikewiseusedastheMeasurebywhichGoodswerevalued，becausecertaininQuality。（Ex。）IfA。B。hada100weightofLead，anddesiredtoexchangeitforBarley，thewaytoknowwhatquantityofBarleywasequalinvaluetotheLead，wasbytheSilver。
Ifthe100WeightofLeadwasequaltofiveOuncesoffineSilver，and5OuncesoffineSilverequalto20BollsofBarley，then20BollswastheQuantitytobegiveninexchangefortheLead。
SilverbeingeasieofCarriage，soequalinonePlacetowhatitwasinanother；wasusedastheMeasurebywhichGoodstobedeliver’dindifferentplaceswerevalued。（Ex。）IfaPieceofWinewastobedeliver’datGlasgowbyA。B。Merchantthere，totheOrderofC。D。
MerchantinAberdeen：AndtheValuetobedeliver’dinOatsatAberdeenbyC。D。totheOrderofA。B。TheWinecouldnotbevaluedbytheQuantityofOatsitwasworthatGlasgow，northeOatsbytheQuantityofWinetheywereworthatAberdeen。WineorOatsmightdifferinQuantity，orbemoreorlessvaluableattheonePlacethanattheother。ThewaytohaveknownwhatQuantityofOatswasequaltotheWine，wasbytheQuantityofSilvereachwasworthattheplacestheyweretobedelivered。IfthePieceofWinewasworthatGlasgow20OuncesoffineSilver，and20OuncesoffineSilverworth50BollsofOatsatAberdeen；then50BollswastheQuantityofOatstobegiventhereinreturnfortheWine。
SilverbeingcapableofaStamp，Princes，forthegreaterConvenienceofthePeople，setupMintstobringittoaStandard，andStampit；WherebyitsWeightandFinenesswasknown，withouttheTroubleofWeighingorFyning；buttheStampaddednothingtotheValue。
FortheseReasonsSilverwasusedasMoney；ItsbeingCoin’dwasonlyaConsequenceofitsbeingapplyedtothatuseinBullion，tho’
notwiththesameConvenience。
*MrLockandotherswhohaveWrotonthisSubject，say，ThegeneralConsentofMenplac’danimaginaryValueuponsilver，becauseofitsQualitiesfittingitforMoney。[*Lock，pag。31。uponInterest，andpag。1，uponMoney。]
IcannotconceivehowdifferentNationscouldagreetoputanImaginaryValueuponanything，expeciallyuponSilver，bywhichallotherGoodsarevalued；OrthatanyoneCountrywouldreceivethatasaValue，whichwasnotvaluableequaltowhatitwasgivenfor；OrhowthatImaginaryValuecouldhavebeenkeptup。But，supposeFrancereceivingSilveratanImagainaryValue，otherNationsreceiv’ditatthatValue，becausereceiv’dsoinFrance：ThenforthesameReasonaCrownpassinginFrancefor76Sols，shouldpassinScotlandfor76
Pence，andinHollandfor76Stivers。Butonthecontrair，eveninFrancewheretheCrownisrais’d，’tisworthnomorethanbeforewhenat60Sols。
ItisreasonabletothinkSilverwasBarter’dasitwasvaluedforitsUsesasaMettal，andwasgivenasMoneyaccordingtoitsValueinBarter。TheadditionalUseofMoneySilverwasapply’dtowouldaddtoitsValue，becauseasMoneyitremediedtheDisadvantagesandInconveniencesofBarter，andconsequentlythedemandforSilverencreasing，itreceivedanadditionalValueequaltothegreaterdemanditsUseasMoneyoccasioned。
AndthisadditionalValueisnomoreImaginary，thantheValueSilverhadinBarterasaMettal，forsuchValuewasbecauseitserv’dsuchUses，andwasgreaterorlesseraccordingtothedemandforSilverasaMettal，proportionedtoitsQuantity。TheadditionalValueSilverreceiv’dfrombeingusedasMoney，wasbecauseofitsQualitieswhichfitteditforthatUse；AndthatValuewasaccordingtotheadditionaldemanditsUseasMoneyoccasioned。
IfeitheroftheseValuesareImaginary，thenallValueisso，fornoGoodshaveanyValue，butfromtheusestheyareapply’dto，andaccordingtotheDemandforthem，inproportiontotheirQuantity。
ThusSilverhavingaValue，andQualitiesfittingitforMoney，whichotherGoodshadnot，wasmadeMoney，andforthegreaterconvenienceofthePeoplewasCoin’d。
TheNamesofthedifferentPiecesmighthavebeenNumber1。
Number2。andsoon；Number60wouldhavethesameasaCrown；FortheNameandStampwasonlytocertify，thatthePiecehadsuchaQuantityofSilverinit，ofsuchafineness。
GoodsofanyotherkindthathavethesameQualitiesmightthen，andmaynowbemadeMoneyequaltotheirValue。GoldandCoppermaybemadeMoney，butneitherwithsomuchConvenienceasSilver。PaymentsinCopperbeingInconvientbyreasonofitsBulk；andGoldnotbeinginsogreatQuantityastoservetheUseofMoney。InCountrieswhereGoldisingreatQuantity，itisusedasMoney；Andwheregoldandsilverarescarce，Copperisused。
Goldiscoin’dforthemoreeasieExchangeofthatMettalandCoppertoserveinsmallPayments；butSilveristhemeasurebywhichGoodsareValued，theValuebywhichGoodsareExchang’d，andinwhichContractsaremadepayable。
AsMoneyencreas’d，theDisadvantagesandInconveniencesofBarterwereremov’d；thePoorandIdlewereemploy’d，moreoftheLandwasLabour’d，theProductencreas’d，ManufacturesandTradeimprov’d，theLanded—menLivedbetter，andthePeoplewithlessDependanceonthem。
Chapter2
OfTrade，andhowfaritdependsonMoney。ThattheEncreaseofthePeopledependsonTrade。OfExchange。
TradeisDomestick，orForreign。
DomestickTradeistheImploymentofthePeople，andtheExchangeofGoodswithintheCountry。
ForreignTradehasseveralBranches。
1。TheProductandManufacturebeingmorethantheConsumption，apartisExported，andinReturnForreignGoodsarebroughtHome。
2。SellingtheGoodsExportedatonePort，andLoadingtheretosellatanother；WherebyagreaterReturnismade，thaniftheGoodsExportedhadbeencarryeddirectlythere。
3。BringingHometheProductandManufactureofotherCountries，fromwhence，andwhentheyareCheap；TosupplyCountrieswhere，andwhentheyaredear。
4。BringingHometheProductofotherCountries，andExportingitinManufacture。
5。Freighting，orhireingoutShips。
DomestickandForreignTrademaybecarriedonbyBarter；ButnotforsogreataValueasbyMoney，norwithsomuchconvenience。
DomestickTradedependsontheMoney。AgreaterQuantityemployesmorePeoplethanalesserQuantity。AlimitedSumcanonlysetanumberofPeopletoWorkproportion’dtoit，and’tiswithlittlesuccessLawsaremade，forEmployingthePoororIdleinCountrieswhereMoneyisscarce；goodLawsmanybringtheMoneytothefullCirculation’tiscapableof，andforceittothoseEmploymentsthataremostprofitabletotheCountry：ButnoLawscanmakeitgofurder，norcanmorePeoplebesettoWork，withoutmoreMoneytocirculateso，astopaytheWagesofagreaternumber。TheymaybebroughttoWorkonCredit，andthatisnotpracticable，unlesstheCredithaveaCirculation，soastosupplytheWorkmanwithnecessaries；Ifthat’ssuppos’d，thenthatCreditisMoney，andwillhavethesameeffects，onHome，andForreignTrade。
AnadditiontotheMoneyaddstotheValueoftheCountry。SolongasMoneygivesInterest，itisimployed；andMoneyimployedbringsProfite，tho’theImployerloses。（Ex。）If50MenaresettoWork，towhom25shillingsispayedperday，andtheImprovementmadebytheirLabourbeonlyequalto，orWorth15sh。YetbysomuchtheValueoftheCountryisincreased。ButasitisreasonabletosupposetheirLabourequalto40sh。SomuchisaddedtothevalueoftheCountry，ofwhichtheImployergains15sh。15maybesupposedtoequaltheConsumptionoftheLabourers，whobeforelivedoncharity，and10sh。remainstothemovertheirConsumption。
IfaStoneofWoollisworth10sh。andmadeintoClothworth2
Pound；TheProductisimprov’dtofourtimestheValueithadinWooll：theWorkmenmaybesupposedtoconsumemorethanwhentheywerenotimployed；Allowone4th，theNationisGainerdoublethevalueoftheProduct。SoanAdditiontotheMoney，whethertheImployergainsornot，addstotheNationalWealth，easestheCountryofanumberofPoororidle，proportionedtotheMoneyadded，enablesthemtolivebetter，andtobearashareinthePublickwiththeotherPeople。
ThefirstBranchofForreignTrade，whichistheExportandImportofGoods，dependsontheMoney。IfonehalfofthePeopleareemploy’d，andthewholeProductandmanufactureconsum’d；MoreMoney，byemployingmorePeople，willmakeanOverplustoExport：IfthentheGoodsimportedballancetheGoodsexported，agreaterAdditiontotheMoneywillimployyetmorePeople，orthesamePeoplebeforeemployedtomoreAdvantage；whichbymakingagreater，ormorevaluableExport，willmakeaBallancedue。SoiftheMoneylessens，apartofthePeoplethenimployedaresetidle，orimployedtolessadvantage；theProductandManufactureisless，orlessvaluable，theExportofConsequenceless，andaBallanceduetoForreigners。
The2dand3dBranchesofForreignTrade，call’dtheTradesofCarriage；aremonopoliz’doutofEurope，bytheseCountrieswhohaveColonies；andinEuropebythesewhosellcheapest。
ScotlandhasAdvantagesforTradebywhichtheMerchantsmightunderselMerchantsinHolland，ascheapnessofLiving，payinglesstothePublick，havingWorkmen，Seamen，andProvisionsforvicutalingcheaper：butiftheDutchMerchantsStockis10000lib。andhisyearlyExpense500；hecantradeat10percentProfit，andaddyearly500
lib。tohisStock。WherasaScotsMerchant，whoseStockis500lib。
andhisyearlyExpense50；cannottradesocheap。
If’tisask’thowaDutchMerchanttradeswohasonly500lib。
Stock？HerestrictshisExpensesoashecanaffordtotradeat10percentProfit：OrMoneybeingingreaterQuantityinHolland，wherebyitiseasierborrowed，andatlessuse；HegetsCreditformorea3or4
percent，bywhichhegains6or7。AndunlessMoneybeingreaterQuantityinScotland，orExpenseretrench’d，wecannottradesocheapastheDutch；Tho’wehaveAdvantagesforTradethattheyhavenot，andtho’theybeunderDisadvantageswearenotlyableto。ByagreaterquantityofMoneyandOeconomy，theDutchmonopolizetheTradesofCarriageevenfromtheEnglish。
The4thBranchofForreignTrade，BringinghometheProductofotherCountries，andExportingitinManufacture，dependsontheQuantityofMoney。WearesofarfromCompetingwiththeDutchinthisTrade，thatourWoollwassenttoHolland，andimportedfromthenceinmanufacture；underthedifficultyofaProhibitionontheExportoftheWooll，andontheImportoftheManufacture。YetbesidestheAdvantagesalreadynamed，whichwehaveforTradeovertheDutch，theMaterialistheProductofourCountry，andgreaterPriviledgesaregrantedtoManufacturershere，thaninHolland。
’Tisalledged，iftheProhibitionhadcontinued，ManufacturesmighthavecometoPerfection。
TheAdvantagesomeMenmadebyManufacture，mayhaveoccasion’dthesettingupofmore，whiletheMoneyhasbeendiminishing；ButthatMoneysoemploy’d，hasbeentakenfromsomeotheruseitwasbeforeimploy’din：ForMoneycannotserveintwoPlacesatonetime。
’Tisalledg’d，ThattheallowingtheWoolltobeexported，occasionedtheExportationoftheMoney。Thatatonetime5000lib。
wassenttoEnglandtobuyWooll。’TisasktwhatbecameofthatWooll？
TheyAnswer，itwassenttoFranceforWine。Then，as5000lib。ofEnglishWoollmaybeworth8or10ThousandPoundinFrance；Sothe5000lib。senttoEngland，savedthesendingoutof8or10000lib。toFrance。
Tothesewhodon’tthroughlyExaminetheStateofthisCountry，itmayseemoddthatWoollshouldbeallowedbyLawtobeExported：
ButiftheProductofScotlandcannotbeManufactur’dwithlessthan50000People，andtheMoneythatcanbespar’dtoManufacture，beonlycapabletoemploy25000，onehalfoftheProductwillbelostifitisnotallowedtobeExported。
The5thBranch，theFreightingofHireingoutofShips，dependsontheMoney，andtheotherBranchesofTrade。WhereShipsareinusetobeFreightedbyStrangers，andsupportedbyagreatDemandfortheirownTrade；ThereareallsortsofShipsaretobehiredCheaperthaninotherplaces；AndMerchantsaresureofsuchShipsasareproperfortheGoodstheyLoadwith，andtheCountriestheyTradeto。
ThisTradeofFreightingbringstheGoodsofotherCountriestoHolland，thodesign’dforSaleelsewhere。IfWoollenManufacturefromEnglandtoPortugalyields25percentProfit，andtoHolland15；TheEnglishMerchantwillchoosetosendsuchGoodstoHollandfor15percent，ratherthantoPortugalfor25：AndtheDutchMerchantwhoisabletoTradecheaper，fromtheCheapnessofFreight，etc。issatisfiedfortheother10tocarrytoPortugal。
MostAuthorswhohaveWroteonTradedivideitintoNationalandPrivat。Theysay，AMerchantmaygainwheretheNationloses。Ifa1000Lib。isExportedtotheIndiesinMoneyorBullion，anda1000
Lib。inGoodsorProvisions；Thereturnworth8000Lib。theMerchantgains6000；ButastheseGoodsareallconsum’dintheCountry，theNationlosesthe1000Lib。MoneyorBullionExported。
Theydon’tconsiderwhetherthe8000Lib。ofGoodsimported（allsuppos’dtobeconsum’dintheCountry）doesnotlessentheConsumptionoftheProductorManufactureoftheCountry，soastooccasionanadditiontotheExport，atleastequaltothe1000lib。
MoneyorBullionExported。ButallowingtheydonotlessentheConsumptionoftheGoodsoftheCountry，andtheUseofthembenotatallnecessary；YettheseGoodsbeingworth8000lib。atHomeorAbroad，theNationgains6000。IfthePeopleconsumethem，andinextravagantUses，that’snotthefaultoftheTrade，norforthatReasonshouldthatTradebecall’dDisadvantageous；ItisthefaultoftheGovernment，whooughttohinderthetoogreatConsumptionofForreignGoods；Especially，suchasmightbewantedwithoutcausingagreaterConsumptionoftheGoodsoftheCountry。Thatcarebeingtaken，bymakingtheventlessprofitableatHome，thanAbroad；
MerchantswouldExportthem，orforthefuturelessentheImport。
IfEast—IndiaGoodsthatSellfora1000lib。inEngland，areonlyworthAbroad800Lib，theDutypayedattheirentrybeingreturn’d，andmoregivenasadraw—backtoEncouragetheExport，theirVentAbroadwillbemoreProfitablethaninEngland。
APeoplemayconsumemoreoftheirownorForreignGoods，thantheValueoftheProduct，Manufacture，andProfitsbyTrade；buttheirTradeisnotdisvantageous，itistheirtoogreatconsumption：AndthetoogreatconsumptionoftheProductandManufactureoftheCountry，maybealshurtfulasthatofForreignGoods；For，ifsomuchisconsumed，thattheremainderExportedwon’tpaytheConsumptionofForreignGoods，aBallancewillbedue，andthatBallancewillbesentoutinMoneyorBullion。
ANationmaygainwheretheMerchantloses，butwhereverthemerchantgains，theNationgainsequal，andsomuchmore，astheMaintenanceandWagesofthePeopleemploy’dandtheDutyontheGoodsamountsto。Ifashipinsur’dislost，theNationloses，andtheMerchantlosesnothing；ButinthatcasetheinsureristheMerchant，andlosesequaltotheNation。
AsTradedependsonMoney，sotheencreaseordecreaseofthePeopledependsonTrade。IftheyhaveEmploymentatHome，theyarekeptatHome：AndiftheTradeisgreaterthanservestoEmploythePeople，itbringsmorefromplaceswheretheyarenotEmploy’d。SirWilliamPettyValuesaManat20yearsPurchase，bythatComputationaSeamanwhoseWagesis40shil。aMonth，isValued430lib。
ScotlandhasaveryinconsiderableTrade，becauseshehasbutaverysmallpartoftheMoney。ThereisalittleHomeTrade，buttheCountryisnotImprov’d，northeProductManufactur’d。ThereisalittleofthefirstBranchofForreignTrade，andthatiscarriedonwithgreatDisadvantagetothePeople，whopaydearerformostForreignGoods，andareworseserv’d，thanotherNations：IftheyhaveanyCheaper，’tisfromthelowerDutyontheImport。InScotlandlowPricesaregivenforGoodsBoughtuptobeExported，theMerchantsProfitbeinggreat：Ifa100StoneofWoolisworthinHolland10
PieceofLinenCloth，thesetenPiecesareSoldinScotlandfortheValueofa180or200StoneofsuchWool。SuchGoodsasdonotyeildthatgreatProfit；arenotExported；Andthesethatdo，arenotExportedinanyQuantity，theMerchantsStockbeingsmall。ScotlandhasnopartoftheotherBranchesofForreignTrade，notbeingabletoTradesoCheapasotherNations。
SomethinkifInterestwerelower’dbyLaw，Tradewouldincrease，MerchantsbeingabletoEmploymoreMoneyandTradeCheaper。SuchaLawwouldhavemanyInconveniencies，anditismuchtobedoubted，whetheritwouldhaveanygoodEffect；Indeed，iflownessofInterestwretheConsequenceofagreaterQuantityofMoney，theStockapplyedtoTradewouldbegreater，andMerchantswouldTradeCheaper，fromtheeasinessofborrowingandthelowerInterestofMoney，withoutanyInconvenienciesattendingit。
Tho’Interestwereat3percentinHolland，andcontinuedat6
inScotland；ifMoneyweretobehadequaltotheDemandsat6，theAdvantageswehaveforTrade，whichtheDutchhavenot，wouldenableustoextendTradetoitsotherBranches，notwithstandingthedifferenceofInterest。
IfMoneyinScotlandwereequaltotheDemandsat6percent，theDutchcouldnottradesocheapinHerring；TheHinderancesofthatTradebeingtheConsequencesoftheScarcityofMoney。TheMaterialsforcarryingontheFishingarecheaperinHolland，butthecheapnessofVictuallingalonewouldballancethat。AndtheDearthoftheseMaterials，asofotherForreignGoods，comingfromthescarcityofMoney；thatbeingremeded，theseMaterials，andotherForreignGoodsthatarenottheProductofHollandwouldbesoldascheapinScotland。
Exchange，iswhenaMerchantexportstoagreaterValuethanheImports，andhasMoneydueAbroad；Anotherimportingtoagreatervaluethanheexported，hasoccasionforMoneyabroad：ThislastbypayinginMoneytotheother，oftheWeightandFinenesswiththatisduehim，ortothatValue，savestheTrouble，Hazard，andExpense，tohimselfofoffendingMoneyout，totheotherofbringingMoneyhome，andtoboththeExpenseofRe—coyining。
SolongasForreignTrade，andExpensekeptequal，ExchangewasatthePar：ButwhenaPeopleimportedforagreaterValue，orhadotherOccasionsAbroad，morethantheirExport，andtheExpenseofForreignersamongthemwouldballance；therewasanecessityofsendingouttheBallanceinMoneyorBullion，andtheMerchantorGentlemanwhoowed，orhadoccasionforMoneyabroad，tosavetheTrouble，ExpenseandHazardofsendingitout，gavesomuchpercenttoanother，astheTrouble，ExpenseandHazardwasvaluedat。ThusExchangeroseabovethePar，andbecameaTrade。
MrMunonTradePage100，says，TheExchangebeingagainstaNation，isofadvantagetothatNation。andsupposes，ifa100lib。atLondonisworthnomorethan90lib。ofthesameMoneyatAmsterdam，theDutchtosend500000lib。ofGoodstoEngland，andtheEnglish400000lib。ofGoodstoHolland；Itfollows，thattheMoneyduetheEnglishatAmsterdam，willballance440000lib。duetotheDutchatLondon：So60000lib。paystheBallance。MrMundoesnotconsider，thattheDutchGoodsworth500000lib。whenExchangewasatthePar，areworthatLondon555555l。when90lib。atAmsterdamiswortha100
lib。atLondon。Andthe400000lib。ofEnglishGoodsinHolland，areonlyworth360000lib。thatSumbeingequalbyExchangeto400000lib。
inEngland。SoinplaceofEnglandshavinganAdvantageof40000lib。
ashealledgesbytheExchangebeingagainsther：Shepays95555lib。
more，thanifExchangehadbeenatthePar。
WhenExchangeisabovethePar，itisnotonlypayedfortheSumsdueofballance，butaffectsthewholeExchangetothePlacewheretheBallanceisdue。IftheBallanceis20000lib。andtheSumsExchangedbyMerchantswhohaveMoneyabroad，withotherswhoareowing，orhaveocasionforMoneythere，be60000lib。theBillsforthe60000lib。
aresoldatornearthesamePrice，withthe20000lib。ofBallance。
ItlikewiseaffectstheExchangetoCountrieswherenoBallanceisdue（Ex。）IftheExchangebetwixtScotlandandHollandis3percentabovetheParagainstScotland，betwixtEnglandandHollandatthePar，tho’noballanceisduebyScotlandtoEngland，yettheExchangewithEnglandwillrise；For，a100lib。inEnglandremittedtoScotlandbyHolland，willyield103lib。SobetwixtScotlandandEnglanditmaybesupposedtobehadat2percent，beinglessTroublethantoremitbyHolland。
GoodsaresoldtoForreigners，accordingtothefirstCost。（Ex。）
IfGoodswortha100lib。inScotland，areworth130lib。inEngland，theseGoodswillbeexported，30percentbeingsuppos’denoughfortheChargesandProfit。IfthePriceoftheseGoodslowerinScotlandfroma100lib。to80，thePriceinEnglandwillnotcontinueata130；Itwilllowerproportionably，foreitherScotsMerchantswillunderseloneanother，orEnglishMerchantswillexporttheseGoodsthemselves。SoiftheyriseinScotlandfrom100lib。to120；theywillriseproportionalbyinEngland，unlesstheEnglishcanbeserv’dwiththeseGoodscheaperfromotherplaces，orcansupplytheuseofthemwithGoodsofanotherkind。Thisbeingsupposed，itfollowsthat，BysomuchasExchangeisabovethePar，somuchallGoodsexportedaresoldcheaper，andallGoodsimportedaresolddearerthanbefore。（Ex。）IfaMerchantsendGoodsyearlytoEnglandfirstCost，ChargesandProfit6000lib。MoneyinEnglandofthesameStandardwithMoneyinScotland，andnoBallancedue；ButaBallanceduetoHolland，raisingtheExchange3percentabovethepartoHolland，andaffectingtheExchangetoEngland2percent5882lib。7sh。inEnglandpaystheGoods，thatSumbyExchangebeingequalto6000lib。
inScotland。sothataBallanceduetoHolland，byraisingtheExchangetootherCountries，occasionsaLosstoScotlandof17lib。
13sh。onthevlaueof6000lib。ofGoodssenttoEngland。
EnglishGoodsaresoldsomuchdearer。（Ex。）IfanEnglishMerchantsendGoodsyearlytoScotland，firstCost，ChargesandProfit6000lib。6120lib。mustbepayedfortheseGoodsinScotland，beingonlyequalto6000lib。inEngland。IftheExchangehadbeenatthePar，theScotsGoodssenttoEnglandwouldhavesold117lib。13sh。
more，andtheEnglishGoodssenttoScotland120lib。less。
ThustoallPlaceswithwhomExchangeisabovethePar，Goodssentoutaresoldsomuchless，andGoodsbroughtfromthencearesoldsomuchdearer，astheExchangeisabovethePar；whethersentout，orbroughtin，byScotsorForreignMerchants。
TheMerchantwhodealsinEnglishGoodsgainsnomorethanwhenExchangewasatthePar，thohesellsdearer；NortheMerchantwhodealsinScotsGoodsless，thohesellscheaper；theyhaveboththesameProfitaswhenExchangewasatthePar。Scotlandpays2percentmoreforEnglishGoods，andEngland2percentlessforScotsGoods：
All，oragreatpartofthelossfallsatlastontheLandedManinScotland，anditistheLandedManinEnglandhasall，oragreatpartoftheBenefit。
NationsfindingtheExportofMoneyorBulliontopaytheballanceduebyTrade，alossofsomuchRiches，andveryhurtfultoTrade，mighhavedischarg’dtheImportofsuchGoodsasthePeoplecouldbestwant；OrlaidaDutyonthem，suchasmighthavelessen’dtheirConsumption：TheymighthavegivenencouragementtoIndustry，wherebytheProductwouldhavebeenencreas’dandimprov’d，ordiscourag’dextravagantConsumption，wherebytheOverplustoExportwouldhavebeengreater；AnyoneoftheseMethodswouldhavebroughtTradeandExchangeequal，andhavemadeaBallanceduethem：Butinplaceofthesemeasures，theyProhibitBullionandMoneytobeExported，whichcouldnotwellhaveanyothereffect，thantoraisetheExchangeequaltotheHazard，suchLawsaddedtotheExportofMoneyorBullion，whichmaybesuppos’d3percentmore：AndastheseLawsbysucheffectwerehurtful，makingallGoodsExportedsellyet3
percentcheaper，andallGoodsImported3percentdearer；thestrictertheywereexecut，thehighertheExchangerose，andthemoretheydidhurt。TheballancewasstillsentoutinMoneyorBullion，bytheMerchantwhoowedit，bytheBankerwhogavetheBills，orbytheForreigntowhomitwasdue。
SupposetheMoneyofScotland，England，andHollandofthesameweightandfineness。ScotlandtoTradewithnootherplaces。TheExchangeatthePar。TheyearlyExportfromScotland，firstcost300000lib。ChargesandProfit30percent。GoodsImported280000lib。
ChargesandProfit30percent。OnehalfoftheTradetobecarriedonbyScotsMerchants，theotherhalfbyEnglishandDutch。
DuetoScotlandforonehalfoftheExportcarriedoutbytheirownMerchants195000
DuefortheotherhalfcarriedoutbyEnglishandDutch。
150000
345000
DuebyScotlandtoEnglandandHollandforGoodsImportedbyEnglishandDutch182000
DueforGoodsImportedbyScotsMerchants140000
322000
TheExpenseofScots—menAbroad，morethanofForreignersinScotland，40000lib。Ifthisissuppos’dtheyearlystateoftheTradeandExpenseofScotland，therewillbeaballancedueof17000lib。
AndunlesstheScotsretrenchtheConsumptionofForreignGoods，soastoImportless；OrretrenchtheConsumptionoftheirownGoods，soastoExportmore；Orencrease，orimprovetheirProduct，soastheExportbegreaterormorevaluable；OrretrenchintheirExpenseAbroad。SincethatballancemustbepaiditwillgooutinMoneyorBullion；AndoccasionstheExchangetorise3percent，theProhibitionontheExportofMoney3more，ifScotsMenExportit，theNationsavesthe1020l。Exchangeonthe17000ofballancedue，whichislostifEnglishMerchantsExportit：ButthelosssuchaRiseinExchangeoccasionsontheGoods，ismoreconsiderable。The195000lib。
dueAbroadforGoodssentoutofScotlandbyScotsMerchants，willbepay’dwith183962lib。EnglishorDutchMoney，thatSumbeingequalbyExchangeat6percentto195000lib。inScotland。The150000lib。dueforfirstCostofGoodscarriedoutbyEnglishorDutchMerchants，willbepay’dwith141510lib。EnglishorDutchMoney，thatSumbeingequalto150000lib。inScotland。The182000lib。duebyScotlandforGoodsImportedbyEnglishandDutchMerchantswillcometo192920lib。
inScotland。Andthe140000lib。firstcostofGoodsbroughtHomebyScotsMerchants，willcometo148400lib。inScotland。SotheAccomptwillrunthus。
DuetoScotlandforGoodsExported183962
BroughtfromAbroadfirstCost140000
BallanceofExpenseAbroad40000
DuetoScotlandAbroad3962
DuebyScotlandforGoodsImportedbyEnglishandDutch192920
EnglishandDutchtakebackingoods150000
DuetoEnglishandDutchinScotland42920
3962Lib。dueabroadtoScotlandinScotsMoney4199
RemainsduebyScotland38721
SotheRiseintheExchangeof3percentbytheballancedueof17000lib。and3morebytheProhibitionontheExportofMoney，occasionsalosstoScotlandof21721l。andmakesthenextyearsballance38721lib。thotheTradebethesameasbefore。Ofwhich21721lib。lostbyExchange，onehalfwouldbesav’difMoneywereallowedtobeExported。
SincetheExchangebeing6percentabovethePar，occasionsthelossof21721lib。thenraisingtheMoney8anda1/3percent，havingrais’dtheExchangewithEnglandto14percent，andwithHollandto30，makesthelossproportionablygreater：ScotsGoodsbeingsuppos’dtocontinueatthesamePricestheywereSoldfor，beforetheMoneywasrais’d，ornottoriseinthesameproportionwiththeMoney。ForwhnExchangewasatthePar，a100lib。ofScotsGoodswereSoldAbroadfora130lib。EnglishMoney；But114lib。EnglishMoney，beingnowequalbyExchangetoa130lib。inScotland，theScotsMerchantcanaffortoSellthesameQuantityofGoodsfora114lib。thatheSoldbeforeata130，andhavethesameProfit。SoForreignGoodsworthAbroada100lib。andSoldinScotlandfora130lib。whenExchangewasatthePar；cannotbeSoldnowforlessthana150lib。
inScotland，thatSumbeingonlyequaltoa130lib。EnglishMoney；
AndtheMerchantsprofitisnogreater，thanwhenheSoldthesameQuanityofGoodsfora130lib。
ItmaynotbeimpropertoconsiderwhatConsequenceswouldattendtheloweringtheMoneytotheEnglishStandard，andallowingittobeExported。
TheformerstateofTradeIhavesuppos’dtobecarriedon，onehalfbyScotsMerchants，theotherhalfbyEnglishandDutch；ButasmostoftheTradeiscarriedonbyScotsMerchants，IshallsupposethisstateofTradeaccordingly。TheoneortheotherwillclearthematterinQuestion。
ThestateofTradenow，andExchangesuppos’dat15percenttoEngland，and30toHolland。ThewholeExportofScotlandtobe300000
lib。ofwhich250000lib。carriedoutbyScotsMerchants，Soldat30
percentprofitandcharges325000lib。
InEnglishMoney282608
ExportedbyForreignersfor50000lib。
inEnglishMoney43478
ThewholeExport326086
GoodsImported。306086
SpentAbroad40000
DueofBallancebyScotland20000
Moneybeinglower’dtotheEnglishStandard，andallow’dbyLawtobeExported；WillbringtheExchangewithEnglandto2or3percent，andwithHollandto17or18，notwithstandingoftheBallancedue。For，asa100lib。inEdinburgh，wouldthenbeequalto100lib。
atLondon，andbeingallowedtobeexported；nonewouldgiveabove102，or3herefora100lib。atLondon：BecausetheTroubleandChargeofsendingittoLondon，wouldbevaluednohigher。TheExport，Import，andExpenseabroadsuppos’dtocontinuethesame；aBallancewouldthenbeduetoScotland。
TheStateofTrade，Exchangeat3percenttoEngland，andproportionablytootherplaces。
DueinEnglishMoney，for325000lbi。firstCost，ChargesandProfitofGoodssentoutbyScotsMerchants315534
DueinEnglishMoney，for50000lib。ofGoodsexportedbyForreigners。
48544
TheWholeExport364078
OfthisdeducetheValueofGoodsImported。
306086
AndtheExpenseAbroad40000
TherewillbeaBallanceduetoScotland，of17992
AsthisBallanceduetoScotland，wouldbringExchangetothePar，and3percentontheScotsSyde；3more，becauseMoneyinEnglandisprohibittobeexported；100lib。inScotland，wouldbeworth106lib。inEngland，andproportionablyinotherplaces。SotheStateofTradewouldthenbethus，DueinEnglishMoneyfor325000lib。firstCost，ChargesandProfitofScotsGoodssentoutbyScotsMerchants，and50000lib。exportedbyForreigners。
397500
Ofthisspentabroad40000
Importedfromabroad306086
BallancethenduetoScotland51414
IftheyearlyExportbeasgreatasIsupposeit，andtheBallanceonly20000Pounds；thenLoweringtheMoneytotheEnglishStandard，willmakeaBallancedueof51414Pounds，thotheMoneyisnotallowedtobeexported。
Itmaybeobjected，thatsuchanAlterationintheExchange，loweringtheValueofForreignMoney；mighthindertheSaleofourGoodsabroad。For，LinenClothboughtinScotlandfora100lib，andsoldatLondonfora115lib。yieldsbyExchange31percentprofit。
ButifExchangewere6percentontheScotsSide，theProfitisonly9percent。
Itisanswered。IfanEnglishMerchanttakesBillsonScotlandfora1000lib。tolayoutonLinen—cloth，theExchangethenatthePar：TheLinen—clothissoldinEnglandaccordingtothefirstCost，ChargesandusualProfit。NextyeartheExchangeisontheEnglishside，theLinenissoldinEnglandcheaperthanbefore。ThethirdyearExchangereturnstothePar，theLinenisthensoldinEnglandasthefirstyear。IfthefirstCostofLinenisdearer，theConsumerpaysthemoreforit，theMerchantsProfitisthesame。
AllNationsendeavourtogettheExchangeasmuchastheycanontheirside。TheExchangefromHollandtoEnglandis12or15percent，toScotland30percent，toFrance40or50，sometimesmore；YetDutchGoodssellintheseCountries，theMerchanthashisProfitthesameaswhenExchangewaslower，theConsumerpaysmoreforthem。EnglishClothissoldatParisfrom18to20LivrestheFrenchEll，whentheLued’oreisat12Livres，from20to23，whentheLued’oreisat14
Livres：BecausetheExchangetoEnglandisdearer，inProportionastheFrenchMoneyisrais’d。
MostGoodssentfromScotlandaresuchasForreignerswon’twant，thotheypayed10or20percentmoreforthem。WehaveanExampleofthisintheWooll。DuringtheProhibition，WoollsoldinHollandandFrancefordoublethefirstCost，nowithasfallento30or40percentProfit。PricesaregivenforGoods，accordingtotheirfirstCost，Charges，andusualProfit；WhereProhibitionsare，theHazardofexportingcontrairtoLawisvalued。WoollisoflessvaluenowinHollandthanintimeofPeace，becausetheventoftheirWoollenManufactureisless；ButthoWoollwerealsvaluableinHollandasbefore，andthoaDutchManufacturerwouldgive200lib。forWoollthatcostonlya100lib。inScotland，ratherthanwantit：YetasheknowstheProhibitionistakenoff，andthattheScotsMerchantscanaffordtosellcheaper；hewon’tbuyunlesshecanhaveitatareasonableProfit。SoeithertheScotsMerchantsbringdownthePrice，byundersellingoneanother；ortheDutchMerchantCommissionsithimself。IfaDutywereputonsuchGoodswhoseValueabroadwouldbearit，theMerchantwouldgainthesame，’tistheForreignerpaystheDuty。