Due in English money, for 50000l. } of goods exported by foreigners. } 48544 ------ The whole export 364078 ------ Of this deduce the value of goods imported. } 306086 And the expence abroad. } 40000 ------ There will be a ballance due to Scotland, } of } 17992 As this ballance due to Scotland, would bring exchange to the par, and 3 per cent on the Scots side; 3 more, because money in England is prohibited to be exported; 100 lib. in Scotland, would be worth 106 lib. in England, and proportionably in other places. so the state of trade would then be thus. Due in English money for 325000l. } first cost, charges and profit of Scots } 397500 goods sent out by Scots merchants, and } 50000l. exported by foreigners. } Of this spent abroad. } 40000 Imported from abroad. } 306086 ------ Ballance then due to Scotland. 51414 If the yearly export be as great as I suppose it, and the ballance only 20000 pounds; then lowering the money to the English standard, will make a ballance due of 51414 lib. tho’ the money is not allowed to be exported. It may be objected, that such an alteration in the exchange, lowering the value of foreign money; might hinder the sale of our goods abroad. for, linen-cloth bought in Scotland for a 100 lib. and sold at London for a 115 lib. yields by exchange 31 per cent profit. but if exchange were 6 per cent on the Scots side, the profit is only 9 per cent. It is answered. if an English merchant takes bills on Scotland for a 1000 lib. to lay out on linen-cloth, the exchange then at the par: the linen-cloth is sold in England according to the first cost, charges and usual profit. next year the exchange is on the English side, the linen is sold in England cheaper than before. the third year exchange returns to the par, the linen is then sold in England as the first year. if the first cost of linen is dearer, the consumer pays the more for it, the merchant’s profit is the same. All nations endeavour to get the exchange as much as they can on their side. the exchange from Holland to England is 12 or 15 per cent, to Scotland 30 per cent, to France 40 or 50, sometimes more; yet Dutch goods sell in these countries, the merchant has his profit the same as when exchange was lower, the consumer pays more for them. English cloth is sold at Paris from 18 to 20 livres the French ell. when the lued’ore is at 12 livres, from 20 to 23, when the lued’ore is at 14 livres: because the exchange to England is dearer, in proportion as the French money is rais’d.