An Enquiry into the Diſpoſal of the Equivalent.

IT has been the Subject of Debate for ſometime, now whether we ſhould have an Equivalent in Scotland for ſuch Pay⯑ments as are to be made on a Coalition of the Nations? — but whether what was Propoſed, was Equal, was really an Equivalent or no? And the World has been long hurried with theſe Enquities.

But now here ariſes a new Cloud, and tho' 'tis not only no bigger than a Mans Hand, but is never like to be bigger; yet as it is dreſt up, it threatens mighty things: and this is, what you ſhall do with the Equivalent when you have it.

'Tis a little hard, People that cry up your National Sagaci⯑ty, in their Arguments againſt an Equivalent in general, ſhould queſtion your Sagacity in knowing what to do with the Mo⯑ney when you have it.

To Anſwer therefore the Doubts of ſome, and prevent the Objections of others, I ſhall enter a little briefly on an En⯑quiry into the manner of diſpoſing the Equivalent you are to have; or, in ſhort, Enquire how you ſhall employ the Money when it comes.

And in general, as to this Head, I think the nature of the Payment it ſelf, and the very words of the Treaty direct Us to the uſe to which this Money is to be employ'd, viz. An Equi⯑valent.

The Property here will have no alteration in its Denomina⯑tion, it remains an Equivalent to its laſt Circulation in⯑to the Chaos of the current Caſh of Britain; you receive it as an [2] Equivalent, and you pay it as an Equivalent, 'tis an Equivalent pay'd you for Money, which by your Cuſtoms and Exciſes will of courſe be appropriated to the uſes of another Nation after the Union, which Nation therefore advances you the Sum in ſpecie, that you may not be out of Purſe on their Account.

When you have it, you diſpoſe of it.

1. As an Equivalent to the African-Company for the demiſe and diſſolution of their Society, there being Companies in England already embark'd in thoſe Trades, and double Com⯑panies having prov'd incompatible, as in the two East-India-Companies, who if they had remain'd ununited to this time, had been both ruin'd: And the Members of this Company ha⯑ving by the Union full leave to come in to the ſaid Engliſh Company, as freely, and on the ſame Conditions as Engliſhmen may, It is agreed the Scots Company ſhall ceaſe, and for a Satisfaction, the firſt part of the Equivalent is appropriated to be an Equivalent for the ſaid Company, by paying the Subſcri⯑bers their Principal and Intereſt, and ſo [...] [...]ompany expiring, ſets them down juſt where it took them up, and I think they ought to eſteem it a very happy Landing, and what without the Aſſiſtance of England they could not have obtain'd by Trade in 20 Years.

2. Another Head for the diſpoſing this Money, is as an E⯑quivalent for the Coin, which by the Treaty is to be reduced to the Standard of the Engliſh Money.

I ſhall ſay very little to a Gentlemans Paper, who is for having this Equivalent made good before that to the African Company, as a thing of vaſt Moment to the Nation.

If I underſtand the Diſpute, one previous Queſtion well diſ⯑cuſs'd, will effectually Anſwer all his Objections; and that is, Whether there is not enough in the Equivalent, that Englond is to Pay, to Diſcharge both, and if that be true, the mighty Diſpute drops of courſe, and it is not one Farthing matter which of theſe two go firſt.

[3] I cannot but think the Gentleman that wrote that Sheet, went on a Calcul of the Coin as falſe, as he has done of the Equivalent it ſelf, where he miſtakes Ninety Thouſand Pound atone Clap, and no wonder he is in ſuch concern, ſince he has loſt ſuch a Sum out of the whole, juſt at his firſt ſetting out, for he ſays, 'tis 309885 l. 10 s. and the ſeveral Times, where⯑as if I think right, 'tis juſt 398085 l. 10 ſh.

I ſhall therefore attempt here two things, 1. Examine what the ſpecies of Coin are that are to be reduced. And 2ly To make a probable conjecture at the Deficiency.

For the ſpecies, I ſhall obſerve the words of the Treaty ſay, not the current Money in Scotland, but the current Coin of Scotland, and this diſtinction will immediatly lead me to this Negative.

That you are not to imagine, as ſome have very groſly done, that the Forreign Coins, which the Error of Cuſtom, the Diſ⯑aſter of Trade, and the Searcity of Bullion, have made cur⯑rent here at an extravagant rate, ſhould be brought into your Mint and be recoin'd; and the Owner of ſuch Money be allow'd the difference from the Rate of their preſent Valuation to the Price of that new Standard—, let no Men flatter themſelves with ſuch a Notion, if this were true, it would not only expoſe Scotland to innumerable Incoveniencies, but might in⯑deed ſoon eat up the whole Equivalent; ſince as there muſt be a certain ſtated time given for bringing in the Money into the Mint, all the Rix Dollars in Europe might be brought into Scotland, the difference between their real and imaginary Va⯑lue, be paid in ſpecie by the Publick, and the Owner receive the new Money for the Remainder, which difference would make it very well worth while, to bring the Dollars from Abroad, and carry back the Britiſh Crowns in their Room, or may lay out the Money in any part of Britain in Manufactures, Corn or Lead, and carry them cheaper to Market than any Na⯑tive of Britain can do it, his Money coſting him leſs than theirs does.

[4] This was exactly the Caſe in England, when Guineas roſe from 21 s. 6 d. each to 30. The Merchants in Holland & Ham⯑burgh immediatly fall to buying of Gold, and ſend it to Eng⯑land by all poſſible Conveyance, ſo much as by the very Poſt, and ſuch was the hurry, that had it held much longer, all the Gold in Europe would have flow'd into England.

The Conſequence of this was, that the Engliſh Merchants were ſtruck out of their own Trade. A Dutch Merchant could buy Bayes at Colchester, or Sarges at Exeter, and ſend them to Spain, and ſell 10 per Cent. cheaper than the Engliſh Merchants that liv'd at the ſame Town: The Caſe was plain, the Gold which in Holland ſtood them in 4 l. to 4 l. 7 s. 6 d. and tho' at laſt it riſe up to 5 l. per Ounce, yet in England went for a⯑bove 6 Pound, and ſo their Money coſt them 25 per Cent. leſs than the Engliſh Merchant could buy for.

From this Example I think 'tis evident, that the Forreign Coin has no concern in this Reduction.

If it had been anſwered, that this then will be an immediate Loſs to the Nation, and to private Perſons alſo: I Anſwer,

To the Nation it can be no Loſs, becauſe, when ever ſuch Pieces came into Scotland, the imaginary Value was an Addi⯑tion to its real Value; and ſo raiſed its Currency to the Credit of the general Stock: And when ever it goes away again, the Difference is only an imaginary Diminution, and ſtands to the Debit of the publick Stock in the ſame manner; and the gene⯑ral Value of Scotland receives no real Alteration.

Money is a real intrinſick Species appointed by Cuſtom, as the Medium of Trade to bring Commerce in all its particular States to a Ballance—So much as its real Value amounts to, ſo much real Wealth is in that Nation, and this real Value is every where the ſame; But its Received Value differs in the ſeveral Nations, according to the particular Circumſtances of thoſe Nations, as to Coin, Standards, Plenty or Scarcity of Money.

[5] Theſe Differences are again reconcil'd among Merchants, and all is brought to PAR in their Negotiating, by adding or diminiſhing, as the imaginary Differences in Value require between Nation and Nation, or Port and Port, and this is called Exchange, a thing full of Nicety, and which I take to be the beſt Accompliſhment of a compleat Merchant.

'Tis true the Rates of Exchange differ, riſe and fall, accor⯑ding to the Quantities of Money that lye to Draw or to Re⯑mitt: But this is a thing that depends ſo much on the Artifice of the Merchant or Exchanger, that it has little regard to the real Differences of the Species; and therefore it is not to my purpoſe.

2. The next Negative relates to the Coin of England, which is now current here, ſuch as Guineas of Gold and Silver Pieces, of the Crown, Half Crown, Shilling and Sixpence; Theſe I preſume ſhall find no Alteration here, and being the ſame to which the Coin of Brittain is to be reduced, there can be no melting them down, for that would be to do nothing at all, but melt the Half Crown into Half a Crown, and a Shilling into a Shilling, and ſo on.

As to the Loſs upon this Money, it is impoſſible to have it Rectified by any Law, or any juſt Equivalent given for it; Since, ſhould any time be given for that, it would make a wild Trade to fetch a Million or two of it from England, carry it into the Mint, demand 1 d. per Shilling, and immediately carry back the very ſame Species again.

I confeſs I ſhould have thought theſe Negatives of no Uſe, had I not ſeen abundance of People weak enough to ima⯑gine they ſhould receive Satisfaction here from the Publick for all the Deficiency of the imaginary Value of Forreign Money.

I could ſpend ſome time to ſhew Examples, but I think it needleſs; England made three Eſſays about Money, and theſe are Examples enough; in two of them they made no Equiva⯑lent for Loſs, and in the third they did, and they exactly hit the Caſe.

[6] Firſt, They reform'd the Guineas, and gave no Equivalent for the Loſs; they ſunk them from 30 to 22 ſhil. each at one Blow, and ſome rich Engroſſers of thoſe pleaſant Manufactories loſt great Sums of Money by it.—The Reaſon was plain, it was a Diſtemper in Trade, and wanted a Cure, every Man had a Share in the Benefit at firſt, and every Body ought to bear their Share of the Burden, and take their Chance for their Particulars.

Another time, the Parliament finding Trade oppreſt by a Flux of French Piſtoles, reduc'd them to 17 ſhil. each, and for this there was no Equivalent offered, for the Evil was of the ſame Original.

And here by the way I muſt Note, That it was not a Miſ⯑chief to England to have a Flux of Gold, either Guineas or Piſtoles; Nor can it be to Scotland, if SHE had ten Millions of Dollars among her current Money; But the Evil is, theſe ſeveral Coins going There or HERE at an Advance in Price, by which Your Neighbours always have this Advantage, That They draw Your Goods a⯑way at the Price of all that imaginary Value.

At laſt the Parliament of England fell to work with their own Coin, Reduc'd it all to the Standard, and Recoin'd it; And then they allow'd an Equivalent to the Proprietor—Becauſe now they did not Reduce advanc'd Value, but took in the very Species; At which time Clipping, Counterfeiting, and ſuch like Abuſes had made it really Deficient in the Spe⯑cies: This the Government was obliged to, and ſo in Scotland it will be of Courſe.

Now, the Gentleman that Quarrels at this, argues, this is a mighty Concern, and is angry 'tis put off to the laſt, or Ex⯑creſcence, as he calls it of the Equivalent, ſince 'twill Ʋn⯑doubtedly be an Ʋnknown and Inſupportable Loſs and Hazard to the Nation.

[7] Now, not to ſpend time to be merry upon the blunder of the Loſs, being inſupportable firſt, and then unknown; I would be glad this inſupportable Burden might be examined, and I'll go the neareſt way to it that I can.

It is plain none but the Coin is to be reduced, and when all the preſent Coin is call'd in, I believe no Man will ſay it is likely it ſhould amount to 100000 lib. Sterling in Silver.

Of this a great part is in the new Coin, 5 d. 10 d. 20 d. 40 d. Pieces, and of theſe there can be no Loſs, if the Gentle⯑men who have carried ſo great a Quantity Abroad lately in ſpecie ſhould be pleaſed to carry away a few more, there would be ſo few left as would effectually take off the Loſs on that Head.

As to the old 14 ſh. Pieces, and 7 d. and 3 d. and 3 d. Half Penny, the Quantity is very ſmall, and all the reſt is Copper-Money, the deficiency of which cannot be much. And upon the whole, if this Gentleman will pleaſe to procure a Tack or Farm upon this Caſuality, I ſhall at any time bring him People, that giving unqueſtionable Security to the Go⯑vernment, ſhall undertake all the Loſs and Deficiency, and make it good to Scotland, the Coinage excepted, on the whole Coin of Scotland for 30000 lib. Sterling.

If this be ſo then, the mighty weight of inſupportable Loſs is at an end.

I know it is enquir'd here, Whether on reducing the Coin to the Standard, the Prices of Goods, Labour, &c. ſhall not fall in all places, and ſo Scotland ſuffer a Loſs here, which may be indeed inſupportable, and tho' I know a long Anſwer is expected to this, mine will be very ſhort.

I Anſwer, This is no Loſs at all, for this only Reaſon.

There is a ſinking the imaginary Value indeed, but no ſink⯑ing the real Value.

The Species is not debaſed, nor your Standard allayed, and therefore tho' your Goods, Manufactories and Labour ſeem to ſink, they really do not ſink.

[8] 'Tis true you ſhall buy as much for 12 d. then as you do for 13 d. now, but that you buy for 12 d. now, ſhall ſell for as much Abroad as that you bought for 13 d. before, and you ſhall remit Home at the ſame Price too.

The Poor Man ſhall Labour as much now for 12 d. as he did before for 13 d. but then his 12 d. ſhall now buy as much Proviſion for his Family as his 13 d. would do be⯑fore.

The Landlord ſhall receive but 12 d. for his Farm, that be⯑fore pay'd him 13, but he ſhall buy as many Horſes or Houſes, Lands or Goods for his 12 d. as he could before for his 13 d. ſo that every way the Intrinſick remains the ſame, and the Na⯑tion has no Loſs.

In Forreign Exchanges it is the ſame, your Value is all over the World the ſame, from England you ſhall draw without Gain, but then you remit without Loſs, and which way ſoever you turn as to Ballance of Exchange, 'tis the ſame thing, becauſe the intrinſick Value of the ſpecies remains the ſame.

All the imaginary Inconveniencies about the Coin, with re⯑ſpect to the time of Coinage, may as effectually be Anſwered as this: And the Practice in England is a Precedent to go by, if the Currency of the Mint be ſupported by a ſmall Sum of new Money before Hand, there can be no inconvenience of time or ſtop of ſpecies, & therefore the ſad Complaint the Author of that Sheet makes of Forreign Bills being Proteſted, or Landlords ruin⯑ing the poor Tennent for want of ſpecies of current Money, is at an end.

Indeed if the old Money was to be call'd in before the new Money was to be given out, there might be ſome ſtop, and for want of Money Trade might ſuffer ſome Inconvenience, Bills be Proteſted, and the like.

But 'tis but keeping the old Money current till the groſs of the new Money be delivered out, it will circulate inſenſibly, and not the leaſt ſenſible heſitation be felt.