The Merchant who merely Exchanges money by Bills cannot Affect our Wealth

Some Merchants deal only on the advantages in the Exchange. They do not sell nor buy goods into the nation. This causes people to say that the money of such Exchangers does not make up the balance of our foreign trade.

They say that sometimes when our sterling money is undervalued and delivered here for Amsterdam at 10% less than the equal value of the respective Standards, the said mere Exchanger may take here £1,000 and carry over only £900, enough to pay his Bill of Exchange. And so such a sum is gained in three months time.

But although this mere Exchanger deals only in money which he carries away, his money comes from the imported goods of Merchants. So it still is based on the balance of our forraign trade. It has the same effect as if the Dutch Merchant had carried away that money, which he must do if Dutch goods are overbalanced which makes our money undervalued. This is explained in Chapter 12.

And on the contary, when the mere Exchanger brings in money into England, he does the same thing that the Merchant does when our commodities overbalance foreign goods.

But in these occasions some Merchants had rather lose by delivering their money at an under-value in Exchange, than undertake to hazard all by the Law; which notwithstanding these mere Exchangers will perform for them in hope of gain.