a Branch of the Muscovia-Company; the other sort are Companies who trade not by a joynt Stock, but only are under a Government and Regulation, such are the Hambrough-Company, the Turkey-Company, the Eastland-Company, the Muscovia-Company.
It hath for many Years been a moote case, whether any Encorporating of Merchants, be for publik Good or not.
For my own part I am of Opinion:
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I. That for Countries with which his Majesty hath no Allieance, nor can have any by reason of their distance, or Barbarity, or non-Communication with the Princes of Christendom, &c., where there is a necessity of Maintaining Forces and Forts (such as East-India and Guinia), Companies of Merchants are absolute necessary.
II. It seems evident to me that the greatest part of these two Trades ought for publick Good, to be managed by joynt Stock.
[Since that time the English have found the secret of reconciling the liberty and protection of commerce on the coast of Africa. See GRANDE BRETAGNE, its commerce.6]
III. It’s questionable to me, whether any other Company of Merchants are for publick good or hurt.
IV. I conclude however, that all restrictions of Trade are naught, and consequently that no Company whatsoever, whether they Trade in a Joynt Stock or under Regulation, can be for publick Good, except it may be easie for all, or any of his Majesty’s Subjects to be admitted into all, or any of the said Companies, at any time for a very inconsiderable Fine, and that if the Fine exceed 20 l. including all Charges of admission, it is too much, and that for these Reasons.
1. Because the Dutch who thrive best by Trade, and have the surest rules to thrive by, admit not only any of their own People, but even Jews and all kind of Aliens, to be Free of any of their Societies of Merchants, or any of their Cities or Towns Corporate.
2. Nothing in the World can enable us to coape with the Dutch in any Trade, but encrease of Hands and Stock, which a general admission will do; many Hands and much Stock being as necessary to the Prosperity of any Trade, as Men and Money to warfare.
3. There is no pretence of any good to the Nation by Companies, but only Order and Regulation of Trade; and if that be preserved (which the admission of all that will come in and submit to the Regulation, will not prejudice) all the good to the Nation that can be hoped for by Companies, is obtained.
4. The Eastland, besides our Native Commodities, spend great quantities of Italian, Spanish, Portugal, and French Commodities, viz. Oyle,
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Wine, Fruit, Sugar, Succads, Shoomack, &c. Now, in regard our East-Country Merchants of England are few, compared with the Dutch, and intend principally that one Trade out and home, and consequently are not so conversant in the aforesaid Commodities, nor forward to adventure upon them, and seeing that by the Companies Charter our Italian, Spanish, Portugal and French Merchants, who understand those Commodities perfectly well, are excluded those Trades, or at least, if the Company will give them leave to send out those Goods, are not permitted to bring in the Returns; it follows, that the Dutch must supply Denmark, Sweeden, and all parts of the Baltique, with most of those Commodities, and so it is in fact.
5. The Dutch who have no Eastland-Companies, yet have ten times the Trade to the Eastern parts as we have; and for Italy, Spain and Portugal, where we have no Companies, we have yet left full as much, if not more Trade, then the Dutch. [If, in this situation, English trade was equal to that of Holland in the countries just named, it is evident that either this trade was increased by the liberty of Northern shipping, or that England resold to Holland a part of its return cargo, and thereby deprived itself of a substantial portion of its benefit. It is an effect of all restricted shipping, because large stocks alone procure large sales.] And for Russia and Greenland where we have Companies (and I think Establisht by Act or Acts of Parliament) our Trade is in effect wholly lost, while the Dutch have, without Companies, encreased theirs to above forty times the Bulk of what the residue of ours now is.
From whence may be inferred:
1. That restrained limitted Companies are not alone sufficient to preserve and encrease a Trade.
2. That limitted Companies, though Established by Act of Parliament, may lose a Trade.
3. That Trade may be carried on to any part of Christendom, and encreased without Companies.
4. That we have declined more, at least have encreased less, in those Trades limitted to Companies, then in others where all his Majesties Subjects have had equal freedom to Trade.
The common Objections against this easie admission of all his Majesties Subjects into Companies of Merchants, are:
Object. 1. If all persons may come into any Company of Merchants on such easie terms, then young Gentlemen, Shop-keepers and divers others
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will turn Merchants, who through their own unskillfulness will pay dear for our native Commodities here, and sell them cheap abroad; and also buy Foreign Commodities dear abroad, and sell them here for less then their cost, to the Ruin of themselves, and Destruction of Trade.
I answer, first, caveat emptor, let particular Men look to themselves,7 and so doubtless they will in those Trades for which there are now Companies, as well as they do in others for which there are no Companies.
It is the care of Law-makers first and principally, to provide for the People in gross, not particulars, and if the consequence of so easie an admission, should be to make our Manufactures cheap abroad, and Foreign Commodities cheap here (as is alledged), our Nation in general would have the advantage both ways.
Object. 2. If all should be admitted &c. Shop-keepers, being the Retailors, of the same Commodities the Company Imports, would have so much the advantage of the Merchant, that he would beat the Merchant wholly out of the Trade.
I answer, first, We see no such thing in Holland, nor in the open Trades, viz. France, Spain, Portugal, Italy, and all our own Plantations, neither can that well be, for to drive a retail Trade to any purpose, requires a Mans full Stock, as well as his full attendance, and so doth it to drive the Trade of a Merchant, and therefore few can find Stock and time to attend both; from whence it follows, that of the many Hundreds which in memory have turned Merchants, very few continued long to follow both, but commonly after two or three Years Experience, betake themselves wholly to Merchandizing, or returned to the sole Exercise of their Retail way; but whether they do, or do not, concerns not the Nation in general, whose common Interest is to buy cheap, whatever appellation the Seller hath, whether that of a meer Merchant, Gentleman, or a Shop-keeper.
Object. 3. If Shop-keepers and other unexperienced persons may turn Merchants, &c. they will through Ignorance neglect buying and sending out our Native Manufactures, and will send out our Money, or Bills of Exchange to buy Foreign Commodities, which is an apparent National loss.
I answer, that Shop-keepers are, like all other Men (led by their profit) and if it be for their Advantage to send out Manufactures, they will do it without forcing; and if it be for their Profit to send over Money or
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Bills of Exchange, they will do that, and so will Merchants as soon and as much as they.
Object. 4. If any may be admitted, &c. what do we get by our seven Years Service, and the great Sums of Money our Parents gave to bind us Apprentices
