England's treasure by forraign trade
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Most notably, he is known for serving as the director of the East India Company. Due to his strong belief in the state and his prior experience as a merchant, Mun took on a prominent role during the economic depression which began in Through mercantilist principles, Mun created a proposed set of "means to enrich a kingdom" which centred on ensuring that exports exceeded imports.
In other words, Mun advocated for achieving a positive balance of trade which would cause England's wealth to steadily increase. Thomas Mun is also widely considered to be a sophisticated thinker and has become a hugely important part of the history of economic theory. Thomas Mun was born in June He was the third child of a substantial London family based in the vicinity of St Andrew Hubbardwhere he was baptised on 17 June His father, John Mun, and his stepfather both earned their livings as mercers.
Through his family ties It can be assumed that Thomas gained insight into matters pertaining to currency and to the economy as a whole.
At the age england treasure by foreign trade pdf file forty-one, Thomas married Ursula Malcott and together they had three children: John, Ann and Mary.
They chose the parish of St. Helen's Bishopsgate as their home. Nothing is known about his education, but Thomas's own career as a merchant started around where he was a member of the Mercers' company and engaged in Mediterranean trade, especially with Italy and the Middle East. He was successful as a practising merchant and was able to amass a large fortune. Indue to his prosperity, Mun was elected as the director of the East India Company and in was appointed as a member of the standing commission on trade.
The rest of his professional career was spent advocating for and promoting the East India Company 's interests. In conjunction with the British Crown, The East India Company was a trading business established to colonise new lands and to pursue trade with the East Indies.
In Mun was elected as the director of the company and set out to ensure that it was operating at full capacity. To achieve this meant that wealth would be maximised and exports would be increased. Induring the onset of the depression, Mun's role within the economy was greatly enhanced. He was forced to not only defend the East India Company and its practices, but also aid the government in correcting the economy.
The trade crisis that eventually led to the depression stemmed from two separate events. First, through the East India Company, England was importing from India at a much higher rate than it was exporting. This negative balance of trade, or trade deficit, meant that England was sending out more money than it was bringing in, a clear detriment to the economy according to the principles of mercantilism.
Second, to pay for all of their imports, England sent precious metals to India. As the only real determinant of affluence in the s, due to the fact that paper money was not yet in use in Northern Europe, exporting precious metals was generally unheard of.
For the East India Companyhowever, the exportation restrictions on bullion were reduced. Mun was thus put forward as a representative of the enterprise. His task was to clear the name of his company while also convincing his clients, and the general public, that the actions taken were ultimately for the best.
According to Mun, foreign trade was the best way to increase the wealth of a nation. More specifically, it was necessary for exports to exceed imports.
All other corrective economic policies were secondary. As he says in England's Treasure by Foreign Tradewe must "sell more to strangers yearly than we consume of theirs in value. Mun's work, A Discourse of Trade from England unto the East Indiesis in a large part a defence of company ethics. The book was authored in an attempt to answer the charge that the East India Company was responsible for the shortage of silver and, thus, the depression. It is said that Mun vehemently and convincingly argued that the loss of precious metals was, in itself, not a detriment to the economy.
Not only did some of the imported goods produce a greater profit when re-exported mostly to the Continentbut the growth england treasure by foreign trade pdf file the shipping industry and the employment of dock workers was greatly increased. Ultimately, Mun was successful in his attempt to salvage the name of the East India Company and alleviated the pressure from its biggest attackers.
His brilliant defence was one of the main reasons as to why he was appointed to be a member of the Standing Commission on Trade in While Mun's first publication earned him a strong reputation and high acclaim, it was ultimately his second authorship for which he is most well known. Although most likely written sometime between —, the book was not published for the public untilwhen it was "published for the Common good by his son John," and dedicated to the Earl of Southamptonlord high treasurer.
Influenced by his work as a merchant and his time spent as the director of the East India Companythe book covers a wide array of topics. Most notably, however, England's Treasure is considered to be a direct repudiation of arguments made in england treasure by foreign trade pdf file to foreign trade england treasure by foreign trade pdf file Gerard de Malynes and Edward Misselden.
Mun was opposed to a fixed exchange rate, as proposed by Malynes, and saw it as more of an impairment than a benefit to the economy. In the book we also find the first notion of Mun's theory of the balance of trade. It should be the focus of English policy, argued Mun, to export at a higher rate than it imports from abroad. In doing so, the wealth of the country england treasure by foreign trade pdf file inevitably increase. The publication, however, was not as optimistic as it is widely perceived it to be.
A large portion of the book is spent chastising the British for being too unlike the Dutch. A strong work ethic, a restraint from conspicuous consumption, and a vigorous trade regiment are all qualities which england treasure by foreign trade pdf file to the overall prosperity of the Dutch. They are also qualities, Mun contends, england treasure by foreign trade pdf file the British did england treasure by foreign trade pdf file possess .
This article incorporates text from a publication now in the public domain: Dictionary of National Biography. From Wikipedia, the free encyclopedia. For the politician, see Thomas Mun MP. Retrieved from " https: Views Read Edit View history.