dents, or to both, according to the different Occurrences that may happen. The firft is, the Variation of the current Price Two Reasons of the Coins of any Country; the fecond, the De-for it. mand that happens to be in one Country, for Money in another. In order to prove the Rife and Fall of Exchange, agreeable to the Reafons before given, let us confider, in the first Place, the very Definition of Exchange, it will from thence appear, that the Variation of the current Prices of the Coins, or Money of any Country, muft neceffarily have a very great Influence upon the Exchange; which, according to the aforefaid Definition, is only the bartering or exchanging the Money of one Place, for that of another. And it not being in Effect the imaginary, but the real Money that is fo exchang'd, the Price of the Exchange muft neceffarily rife and fall with that of the Money. Secondly, the Demand there is in one Country, for Money in another, has likewise a very powerful Influence upon the Courfe of Exchange; this will eafily appear to any thinking Man, that will give himself but the trouble to make this one Reflection; that if, for Example, England lays out in buying of Goods, or otherways expends in Holland, Two Hundred Thoufand Pounds Sterling per Annum, and Holland lays out in England one half of that Sum, the English not knowing any other way to have the remaining One Hundred Thousand Pounds return'd, muft confent to be at fome Lofs, to remit it by Bills of Exchange. So that it plainly appears, that the Occafion of a great Demand for Money in any Country, can only proceed from the Demand that there is for the Goods of that Country, or the Neceffity of remitting Money thither, to be employ'd any other Way: The FIRST. Way For Example, the great Remittances that were made for the Subfiftance of the English Forces in Holland, must infallibly have contributed very much to make Bills upon that Country dearer, than they otherwife would have been. But because pofitive Examples have always more force than the moft weighty Arguments that can be us'd, I fhall here give two Inftances, which, I hope, will prove the Truth of what is here afferted, Two Examples About the Time that the clipp'd Money was to prove the call'd in, in England, in the Year 1691, and the Rife and Fall Guineas rofe to 30 Shillings, the Exchange to of Exchange Edinburgh was at 15 per Cent. that is to fay, they gave at London 115 Pounds to receive 100 at Edinburgh; but as foon as (the bad Money being call'd in, and new coin'd) the current Coins of the Kingdom, both of Gold and Silver, fell to their former Prices, the Exchange of Course, return'd to it's former Rate of 10 or 12 per Cent. Lofs to Scotland; that is to fay, for 100 Pounds receiv'd here, they paid 110, or 112 Pounds at Edinburgh.. The fecond Example. 1 The other Example that remains to be given, is that of the Exchange between England and France, which, foon after the Peace concluded at Ryfwick, was at 40, 41 and 42 Pence for the French Crown of 60 Solzs Tournois, and thus continu'd for a confiderable Time, because there was then but little Demand in England for Money in France, and the French Crown in Specie pass'd there at 72 Solzs: Befides that, the English began to export Spiceries, Sugars, and feveral Sorts of Goods to France, which fold very well at a time, when they had not feen' an English Ship there, (but fuch as had been taken as Prizes) for many Years together. But the worst was, that it was hard to find a way to remit the Money to England; becaufe, moft of all the French Commodities were (by the exceffive Duty laid on them) as good as prohibited here, and befides, the greatest greatest Part of the Product of the Goods fent from Scotland and Ireland, (which was very confiderable) was to be remitted by way of London, which ftill kept the Exchange very low; 'till at laft, to evade the Act of Parliament impofing a Duty of 50 1. per Ton upon all French Wines to be imported into England, the Merchants agreed upon a Scheme to export Wines from Bourdeaux to St. Sebaftian's, where removing them into Spanish Buts, &c. they imported them into England, under the Notion of Spanish Wines: which Commerce having lafted a confiderable time, and great Quantities of French Wines and Brandy having been by that means imported into England, that (with the confiderable Remittances made for the Ufe of the British Noblemen and Gentlemen then travelling in France) did not a little contribute to make an Alteration in the Courfe of Exchange; and the French King, having about that time, by feveral Edicts, brought down the current Price of the Species of his Kingdom about 10 per Cent. the Exchange of a fudden came to 48 d. English for the French Crown of 60 Solz Tournois; at which Rate it continued a pretty. while, 'till upon the Appearance of a fudden War, our Noblemen and Gentlemen being come home, and the Parliament likewife having fallen upon a Method to prevent the Importation of French Wines from Spain, or any other Place, the Demand for Money in France began to ceafe here; and on the contrary, vaft Sums of Money being remitted hither to the French Ambaffador, and probably to other Emiffaries of that Kingdom, for carrying on that Monarch's ambitious Designs against Europe, there was a great Demand in France, for Money in England, which was not a little augmented by the great Exportation of old Louis-d'Ors, and Spanish Pistoles, out of France into England, where fome Profit was to be made upon them at that time; fo that Twelve Parts that the Courfe of Exchange fell once more to 40, or. 41 d. per Crown; and I believe it remain'd' thereabouts 'till the Declaration of the late War, at which time it ceas'd altogether; fo that from what has been faid, it very plainly appears, that' the rifing and falling of Exchange muft neceffarily derive its Origin, either from the Variation of the Price of the Money to be exchang'd, or from the Demand that there happens to be in one Country or Place, for Money in another, or from both thefe Caufes together. After this fhort Account of the Par of Money and Exchange, and the rifing and falling thereof, I fhall now proceed to fay fomething of the Method of putting this advantageous Commerce into Practice, which I have already faid to be perform'd by means of an Inftrument in Writing, call'd, A Bill of Exchange; for the drawing, negotiating, prefenting, accepting, and protefting of which, I fhall' now give fome fhort Directions. In drawing Bills of Exchange, I advife every one to take Notice of the twelve following Parts, which I fhall here fet down; of which, if due Notice is taken, tho' fome Circumftances may render Bills of Exchange different in form, you may by the Help of the Models hereafter fet down, draw all Sorts of Bills in any Circumftances whatsoever. In drawing a Foreign Bill it is neceffary to obferve: ift, To fet down at the Top of the Bill, the to be obferv'd Place where, and the Time when the Bill is drawn, in drawing Fo- where the Difference between Old and New Stile reign Bills of Exchange. muft not be forgotten. 2dly, In the fame Line at top, fet down in Fi-' gures, the Sum for which the Bill is drawn, and the Exchange agreed on. 3dly, The Time of Payment. 5thly, 5thly, The Name of the Perfon, to whom the Bill is payable. 6thly, The Sum of Money to be paid, in Words at length. 7thly, The Quality of the Money. 8thly, The Price of the Exchange in Words at length. 9thly, of whom, and how, the Value is received. 10thly, To whofe Accompt it is to be plac'd. 11thly, The Drawer's Name fubfcrib'd. 12thly, An Addrefs, or Direction thereof to the Perfon, on whom the Bill is drawn. ment. The two first of these Articles need no Explănation. The third regards the Time of Payment Time of Payof Bills of Exchange, which muft neceffarily agree with one of the five following Distinctions; that is to fay, either 1ft, at Sight; 2dly, at fo many Days, Weeks, or Months Sight; 3dly, at one, two, or more Ufances; 4thly, at a Day specified in the Bill; 5thly, and laftly, at a certain Fair, either Lyons, Frankfort, Leipfick, Naumburgh, &c. As to Bills of Exchange drawn at Sight; in Default of Payment at Presentation, the Bearer of any fuch Bill is immediately to cause it to be protested for Non-payment. But note, that People ought to Bills at Sight; go at convenient and seasonable Hours to Bankers, how to proceed and Merchant's Houses, to demand Payment of in Cafe of Non their Bills; and if the Perfon to whom the Bill is prefented, (be he Clerk, Servant, or any other belonging to him) fays it is good, and defires the Bearer to return for the Money at any reasonable Hour that Day; fo that in Cafe of Non-payment, there may ftill remain Time enough to take proper Methods with the Bill, fuch a Favour is not generally refus'd, tho' indeed it depends on the Bearer of any fuch Bill, to grant, or deny it: But Ca tho' payment. |