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Front Page arrow Titles (by Subject) arrow SECT. II.: The several kinds of Forreign Trade, of trading with Home or Forreign Navigation, some general Application. - A Select Collection of Early English Tracts on Commerce from the Originals of Mun, Roberts, North, and Others

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SECT. II.: The several kinds of Forreign Trade, of trading with Home or Forreign Navigation, some general Application. - John Ramsay McCulloch, A Select Collection of Early English Tracts on Commerce from the Originals of Mun, Roberts, North, and Others [1856]

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A Select Collection of Early English Tracts on Commerce from the Originals of Mun, Roberts, North, and Others, with a Preface and Index (London: Printed for the Political Economy Club, 1856).

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SECT. II.

The several kinds of Forreign Trade, of trading with Home or Forreign Navigation, some general Application.

IT will be then proper to consider how a Forreign Trade may be driven to most Advantage for the increase of National Treasure, People, and Navigation.

A Forreign Trade may be driven by a Nation with Forreign Navigation, or with Home Navigation.

A Forreign Trade driven with Forreign Navigation, is when a Nation sells its Commodities at Home to such Forreigners as come thither to Buy and Export them.

This sort of Forreign-Trade may enrich a Nation with Treasure more or less, as the Commodities so sold are of greater or lesser quantity and value.

But it is very plain, that if the Natives had Exported the same Commodities to the same Forreigners in Shipping of their own, the same Commodities would have yielded a greater Rate in the Forreign Ports, because the Natives must have been also paid for the Carriage; which by so much would have increased the National Gain; wherefore it is more advantagious for a Nation to Export its own Commodities by Navigation of its own.

But it will not follow, that ’tis therefore necessary or fit to confine all Exportations to Home Navigation by Penal Laws, especially in England, as will be shewn.

Nor does it follow that a Nation which doth Export its own Commodities, shall be alwayes richer than another that sells at home; for the Commodities of one Nation sold at home may yield ten times more money at home than the Commodities exported by the other shall yield abroad, and therefore must make it ten times richer.

This may be verified in the Trade of France; whose Commodities sold at home to the Dutch, English, and others, for many years past, have brought vast quantities of money into France, perhaps more than all the Neighbour Nations have gotten by their exported Commodities, by which means, and no other, France is become the Terrour of the World, as I shall more particularly and fully shew.

A beneficial Forreign Trade, with home Navigation, may be said to be of two sorts.

The one consists in the meer Exportation of home Commodities into Forreign Nations where they may be vended, of which I have spoken before.

The other, in Trading and Huxtering from Port to Port.

The benefit of Trading or Huxtering from Port to Port consists in buying Commodities cheaper in one Forreign Port, and selling them dearer in some others; in which case the Nation Trading ordinarily gets more or less, in proportion, as the Merchants buy for less and sell for more, and as the Stock and Navigation imployed in this sort of Trade is more or less.

The Dutch being to buy much of their Victuals, Cloaths, and other necessaries from abroad, and having little Commodities of their own to Export, put themselves upon this Trading from Port to Port; which Trade they have improved to that degree, that they are become, as it were, the Common Carriers of the World, imploying near 30000 Trading-Vessels, (including those which belong to their Fishery.) In this way of Trade have this Industrious People yearly bought up vast quantities of French Manufactures and Commodities, and uttered them again for present profit in other parts of the World, not foreseeing those dangers they have been bringing upon themselves and all Europe.

The English have never attained to near so Universal Manufacture as the French, or so general a huxtering Trade as the Dutch; But yet until this last Age had a greater proportion of each then the Dutch or French; their Trade hath chiefly consisted in the Exportation of their own Commodities, and Manufactures made of their own home Materials; of which that of our Wooll being the Principal, was long thought and really still is, or might be, the greatest and richest in the World; This, with our exported Tin, Lead, Iron, Allome, Fish, and other valuable things, brought in a sufficient quantity of Forreign Commodities to serve our National Occasions, Pomp and Ornament, and left an Annual Increase of Imported Treasure, which in length of time had much enriched the Nation, though our neat Annual Gain by Forreign Trade did never bring in much above 250000l. or 300000 per annum increase of Treasure, one year with another (taking any number of 20 years together) as may be reasonably collected by what will follow; nor was that a Contemptible Gain (as the Trade of this part of the World formerly stood) since it had rendred this Kingdom as Rich and Happy at home, and as formidable abroad, as any in Europe.