Front Page Titles (by Subject) CHAP. XIV.: The benefits which do grow to the State by the not raising of Money, and the Prejudices which do grow by the raising of it. - A Select Collection of Scarce and Valuable Tracts on Money
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CHAP. XIV.: The benefits which do grow to the State by the not raising of Money, and the Prejudices which do grow by the raising of it. - John Ramsay McCulloch, A Select Collection of Scarce and Valuable Tracts on Money 
A Select Collection of Scarce and Valuable Tracts on Money from the Originals of Vaughan, Cotton, Petty, Lowndes, Newton, Prior, Harris, and Others, with a Preface, Notes, and Index (London: Printed for the Political Economy Club, 1856).
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The benefits which do grow to the State by the not raising of Money, and the Prejudices which do grow by the raising of it.
THE Benefit which groweth to the State by the not raising of money, is only this, To avoid alteration: But the Prejudices which are alledged to grow by the raising of it, are many;
First, by the Injustice and Oppression which all they undergo who contract for Money current, at the time of the Contract, and are after paid with extream Disadvantage in other Money really less in value, though in Name the same: and although to this it be said, The Creditor is not interested herein, because he paieth away the Money which he receiveth at the same rate he received it; yet that answer is not satisfactory, because admitting this Position for true, That when the Intrinsical value is diminished, the Price of things bought with Money doth rise in Proportion, the Creditor when he paieth out his Money at the same rate, at which he received it cannot notwithstanding with it buy the same Commodities, which he might have bought with the Money, for which he contracted, and consequently is diminished so much thereby, as the price of things is raised.
And although I did in a former Chapter shew, That the price of things doth rise by experience, as the value of Money is raised, yet because the Truth or Falsehood of this Position doth mainly import all the Deliberations incident to this subject of Money, as I have formerly observed in some Experiments where it did so fall out; so I will now set down the Reasons, why of necessity it must be so, One reason is this:
When the Merchant stranger brings his Commodities, whether he intends to make his return in Moneys or in Commodities, he maketh his own sale by the measure of the Money here, and then examines how much this Money will amount to in the Moneys of his own Countrey, where he bought his Commodities; and if he find the Money here diminished in intrinsical value, he must then demand so much the higher price, or else he cannot make his Accompt.
One other Reason is this, when the extrinsical value of the Money is raised, by which the intrinsical is abased, there is then so much the more profit to return Money into the Kingdom, instead of Forrein Commodities; and by daily experience it is seen that more is returned when the price of Money is raised. Now it is manifest that the less importation you have of forrein Commodities the price of them is so much the more: and both these Reasons do shew, and Experience it self doth confirm, that when Money is raised, the price of forrein Commodities doth first rise: And the price of forrein being once raised, the price of Domestick Commodities will of necessitie be raised also; for the price of forrein Commodities will make great plenty of them to be imported, and the high price of Money will inforce that they must be returned in domestick Commodities: By which means domestick Commodities being much sought for, will of necessity be raised in price, and, the price of both these being raised, it follows that the rate of all mens sallaries and hire of Labourers and Endeavorers must rise in Proportion, or else men shall be forced to defer their Trades and Endeavours, and then the scarcity will encrease the price. By these means it comes to pass, by the raising of Money, that all those who have contracted for antient Rights and Rents are prejudiced, and such as have Rights and Rents settled in perpetuity, can never receive help in this case; and therefore in divers other Countries, there have been very many famous Judgments giv’n in this case, and great volumes written by the Civilians, to prove that the Rents which they call feodats and fanniers, penalties and amercements, which are set down uncertain, ought to be paied according to the value of the Moneys then Current when the said Rents and Penalties were established; and if we do examine it, we shall find it, that much the greatest part of the Common-wealth is prejudiced whensoever Money is raised.
First, all those who have let Leases of their lands. Then all such as live upon Pensions and Wages.
All those that live by their professions either Civil or Military.
All those that live by Trade or Handy crafts, or Labourers. And although it be true when the Leases do come out, the Lords may recompence themselves, and that when the hire and salaries of several professions and endeavorers shall be raised, (as I have showed) that of necessity in time it must come to pass, that Prejudice doth cease unto them, yet in mean time they suffer. But the King who is head of the Common-wealth, and whose Revenue is only truly publick, doth of all suffer most, and most irreparably: Colledges are helped by the Stat. of Corn, and other Corporations do in some sort repair themselves by the fines they take. But the King’s Revenue, which of necessity is managed by multitude of Officers, doth perpetually diminish, as much as the price of Money is raised, so as the same lands yield, in name the same Revenue to the King which they did in Edward the Thirds time, but in truth not the third part: and besides much of his Revenue is assessed by the Parliament by prescription to a certain Summ, all which doth continually diminish so much as the price of Money riseth.
One other Mischief that groweth by the raising of Money is this, When you do so raise your Money, as that you do give a greater price than before unto the Merchant, yo do conceive that he is thereby the rather allured to bring the Materials of Money to your Mint, and so withdraw them from other Nations. But if other nations find that, they will raise the price of their Money likewise, and then what shall you get by raising of yours? or if you raise upon them again, there will be no period to rest in, but you shall continually sow Confusion, until you be constrained to abolish your coins and invent new species, and new measures of weight and fineness, or else with infinite loss to the people, to bring the price back again to an ancient standard.
One other Mischief that groweth by the raising of Money is this, a very great part of the Gold which cometh into Europe, and almost all the Silver doth first aboard in Spain: so that when you raise the price of these mettals, you raise the proper commodities of Spain, and by that means you encrease the greatness and power of that King, of whose greatness and power, of all others, you have cause to be most jealous and apprehensive: And again, in a Kingdom as this is, which hath more Commodities to vent into Forrein parts than it hath occasion to consume of Forrein Commodities, and which hath no materials of Money, as this hath not in any considerable quantity, but must have all their Gold and Silver supplied by the return of their Commodities, as ours is, it is most expedient to keep the price of Money as low as may be, to the end your Commodities may return you the greater quantity of these materials in fineness and weight.
As for Example, If you should raise the ounce of sterling standard to six shillings; then the Real of eight would be worth near hand six shillings likewise; would it not then follow of Necessity, that you should have by so much the fewer of them in number, for the return of your Commodities? And the like may be said of Gold.
Lastly, when you raise your Money, it bringeth a great confusion.
First, by giving stop and hindrance to Trade and Commerce, all men being fearful and doubtful how to make their Contracts and Exchanges, until there be a settlement by time.
And again, if you coin new species of less intrinsical value than the old either in weight or fineness, or both, there is danger of melting or exporting the old; if you raise the price of the old species, you introduce Fractions and Confusions in reckoning, and do many times inforce him that pays to give more than he intends, especially in reward and gratifications and fees, which are more exactly defined.