Emory Miller

HH205P

26APR04

 

English Expansion – Thomas Mun’s “England’s Treasure by Foreign Trade”

 

  1.  Background:

A.     1694:  Bank of England founded

B.     1717:  distant German relative of James I becomes King George I of England

1.      period of Hanovarian kings characterized by Parliamentary dominance

2.      laissez-faire capitalism thrived economically

C.     1717:  Isaac Newton, as head of the English Mint, establishes gold standard that lasts until after WWI

1.      allows for economic stability unlike the Spanish silver standard in previous centuries

D.     1757-1763:  Seven Years War with France

1.      established English empire and world dominance

2.      economic practices allowed Great Britain and colonies to thrive

 

  1.  Thomas Mun – “England’s Treasure by Foreign Trade”

A.      “The Qualities Which Are Required in a Perfect Merchant of Foreign Trade”

1.      equates the duties of a merchant with the duties of a patriot

2.      “love and service”

3.      “the Merchant is worthily called The Steward of the Kingdoms Stock”

4.      “great skill and confidence”

5.      orders that the merchant know the duties, tolls, taxes, monies, etc. of the trade

6.      must speak languages

B.     “The Means to Enrich This Kingdom, and to Increase Our Treasure”

1.      gifts from other countries are uncertain – need to establish commerce

a.      basic principle:  sell more to strangers than we buy of their products.  Will increase the treasure held by England.

C.     “The Exportation Of Our Moneys In Trade Of Merchandize Is A Means To Increase Our Treasure”

1.      England has a limited amount of natural resources

a.      cannot trade with wares, but use its monies to trade

b.      this is against conventional wisdom

 

Questions:

 

  1. According to Mun, the merchant needs not be a scholar, yet he should know Latin, be well versed in worldly affairs, know currencies, be proficient in accounting.  What does this say about the economic and social conditions in Europe and especially in England at the time?
  2. England has a lack of natural resources.  How do the expansionist practices being undertaken at the time follow Mun’s ideas of exporting monies and investments?
  3. Do you think the Mun’s glorification of trade and merchants was shared throughout England?