55© A. D. 1670, 



land, its great rival therein, but to Holland and Germany, in a very 

 great degree. 



Moreover, the rule of judging of the general balance of trade from a 

 nation's exports and imports, is very exceptionable when applied to par- 

 ticular trades. Seeing it may happen, that although we may really im- 

 port much more in value from iome certain countries than we export 

 thither, yet the trade to thofe very countries m^ay be fuch an one, as 

 either in its own nature we cannot be without, or elfe, in its confe- 

 quences, is really productive of greater profit by the re-exportation of 

 its merchandize firfl imported hither. 



Let us, for inflance, fuppofe, what will readily be granted, that naval 

 fkores, Spanifli wool, and faltpetre, are three commodities which we can- 

 not be without : the firft, for our whole navigation and commerce ; the 

 fecond, for our fine woollen cloth trade ; and the third, for gunpowder. 

 Then, we fay, we fhould be neccilitated to carry on a trade with the 

 countries which furnilh thofe three commodities, let the balance be ever 

 fo much againft us ; or, in other words, let our imports from thence 

 ever fo much exceed our exports thither. As to the firft, viz. naval 

 flores, the balance is greatly againft us ; Denmark, Norway, and Swe- 

 den, from whence we have the moft of our timber, taking off but very 

 few of our merchandize in comparifon v/ith the quantity we take of 

 their timber, marts, deals, and tar, befides flockfidi, &c. ; and the like 

 mav be faid of the other countries within the Sound, trom whence our 

 other kinds of naval fi:ores come ; as hemp, from Livonia and Ruflia ; 

 oak-plank, from Pruffia, &c. Yet, until we can bring our own North- 

 American plantations into a method of fupplying us entirely with na- 

 val fk)res, there is no remedy. The like might be faid of the other 

 two commodities, even though the balance fhould be againfl us ; nei- 

 ther of which however is the cafe. 



The fecond rule to judge of the general balance of our trade, is, to 

 obferve carefully the courfe of exchange between us and foreign coun- 

 tries. And if that be generally found againft us, that is to fay, if it be 

 generally above the intrinfic value or par of the coins of thofe foreign 

 countries, we certainly lofe by the general courfe of our foreign com- 

 mer^'e : or, in other v.'ords, they certainly fend us more of their mer- 

 chandize than they take of ours. And certainly (fays Sir Jufiah Child) 

 when once the exchange comes to be five or fix per cent above the true 

 value or par of foreign monies, our treafure will be carried out, wiiar- 

 ever laws we may make to pre\'ent it. On the contrary, we fliould be 

 gainers if the exchange were fo much in our favour ; which is our cafe 

 with Portugal, and alio with fome other countries, though perhaps not 

 in quite fo great a degree ; from vA-hence we atlually import much of 

 their coin, by means of the balance being in our tavour. 



Yet even this rule, drawn from exchanges, though a very plaufible 



