Chapter 10 and 11

The Statute of Employments by Foreigners cannot Increase our Wealth

January 23, 2020

Keeping our money in the nation is just as useless as debasing our money because the causes of their preservation and production are the same in nature. The statute to allow free importation aims to employ foreign goods into our commodities. They say that the statute’s intent is for encourage imports to be employed in our commodities which will then be exported at a higher value than imports. It might seem as a good policy to increase our wealth.

But on further examination, we shall find that it cannot produce such good effects. This is because it delays the payment and inflow of money. In other countries, we sell our goods and take their money because they have few goods that we need. In some places, we need their commodities but they have little use of ours, so they take our money.

There are three ways a merchant may exchange his goods=

  1. Through money
  2. Through commodities
  3. Through barter

The Statute of employment restrains money and bills of exchange. It is unique only to our country. This will violate the Law of Commerce in three ways=

  1. This law will lead to reciprocal laws in other countries. This will reduce our imports and exports and cause our foreign trade to decay. It will deprive us of the money-revenues from foreign trade. Without such treasure, we cannot sell to distant places. This would cause our trade and treasure to decay together. Other countries will impose the same law against us, reducing the treasure in foreign trade.
  1. It allows exports only through English state-owned corporations. This causes our private merchants, sailors, and shipping to have recourse to those corporations. It would make our goods cheaper to foreign buyers than if we sold it to them in their own countries, as explained in Chapter 3.

  2. Our money will go overseas if we import more than we export.

How can we repeal this statute? Can we restrain foreigners while letting the English loose?

It will destroy much trade which will reduce the customs revenue and profits of the Kingdom. This statute, when reciprocated by foreign statues, will keep our money in the Kingdom. This remedy is far worse than the disease.

It is true that other Nations will sell more of our commodities than we consume of theirs. But this would happen anyway without the Statute. All the Statute does is to add hurtful restrictions.

Chapter 11= Exporting our food and weapons for money will not increase our wealth

The food and weapons for war are so precious in a nation. It should be restrained from being sold overseas or it should be charged a high price because Spain and other countries willingly buy such goods.

We must gain in every exchange and bring in treasure into our nation. This gain can only be done by the overbalance of our trade. This overbalance is reduced by restrictions. Therefore, such restrictions hinder the increase of our wealth.

Vain men think that we should not restrict the exports of food or weapons. But if this were true, the exports of such food and weapons would still not give us more money. This is because what goes in must come out. Only the overbalance of the trade can give us real gains.