England's treasure by forraign trade/Chapter 13
Chap. XIII
The Merchant who is a mere Exchanger of money by Bills cannot increase or decrease out treasure.
There are certain Merchants which deal onely upon all advantages in th' Exchange, and neither export nor import wares into the Kingdom, which hath caused some men to affirm, that the money which such mere Exchangers bring in or carry out of the Realm is not comprehended in the ballance of our forraign trade; for (say they) sometimes when our sterling mony hath been undervalued and delivered here for Amsterdam at ten. per cent less than the equal value of the respective Standards, the said mere Exchanger may take here one thousand pounds sterling. & carry over onely nine hundred thereof in specie, which will be sufficient to pay his Bill of Exchange. And so upon a greater or a lesser summe the like gain is made in three months time.
But here we must know, that although this more Exchanger deal not in wares, yet notwithstanding the money which he carrieth away in manner afore-written must necessarily proceed of such wares as are brought into the Kingdom by Merchants. So that still it falleth into the ballance of our forraign trade, and worketh the same effect, as if the Merchant himself had carried away that money, which he must do if our wares be overballanced, as ever they are when our money is undervalued, which is expressed more at large in the 12. Chapter.
And on the contrary, when the mere Exchanger (by the said advantages) shall bring money into the Kingdom, he doth no more than necessarily must be done by the Merchant himself when our commodities overballance forraign wares. But in these occasions some Merchants had rather lose by delivering their money at an under-value in Exchange, than undertake to hazard all by the Law; which notwithstanding these mere Exchangers will perform for them in hope of gain.