Draft of MINT00702 (Mint 19/3/566)

<564r>

In obedience to your Lordships order of Reference of the 19th instant upon Mr Drummonds letter wherein he proposes that upon the receipt of 400 Tunns of Tin at Amsterdam or within 14 days after he will there pay 4 pound sterling per cwt which is 32000 poudns sterling in all, at the rate of 10 Gilders 10 stivers per pound, rebating 4 per cent for paying ready money; the freight, duly in Holland & all other charges after it is once on board to be for his account.

We humbly represent to your Lordship that the Tin put on board will stand her Majesty in 4li per cwt viz 3li. 16s the price sold at here, 3s custome & one shilling petty charges for shipping it. And that the payment of this money within 14 days after the arrival of the Tin at Amsterdam at 10 Gilders 10st per pound with a rebate of 4 per cent is equipollent to the giving him time till the tinn arrives at Amsterdam & for a yeaar & 14 days longer besides the hazzards of the sea & besides the lowness of the exchange at which he proposes to pay the money. All which renders the contract manifestly disadvantageous to her Majesty.

For since Mr Drummond has sold 400 Tunns of Tin in 10 months as he represents in his Letter if we should sell the like quantity in the Tower in that time i small parcels for ready money either to him r to other Merchants trading to Holland ‡

‡ the Tin being constantly selling would produce some of the money every day & about half of it in half the time of sale which would be as advantageous as if we were to receive the price of the whole at once in the middle of the tim of sale & this without any hazzard at sea or loss by exchange. For the use of one half of the money received by parcels in the first five months would recompence the want of the use of the other half to be received in like parcels in the last five months

Whence we humbly conceive that Mr Drummond should upon an equal contract be allowed interest only for five months dated from the delivery of the Tin at the Tower, or rather for so much of the five months as remain when he pays the money: which interest will exceed two per cent. And therefore the 4 per cent which he demands is about two per cent too much, besides the risque of the sea which by his proposing to pay for the Tin upon its arrival at Amsterdam, he seems to place upon her Majestys account, & which Merchants reccon at two per cent so that her Majesty by this contract would lose 2 per cent interest & 2 per cent insurance in all four per cent which in the whole price of 3200li amounts to 1280li, besides a further loss which may prove as great by paying the money in Holland at 10G 10st per pound sterling, which at present is there at 11 Gilders per pound sterling as we heare from Merchants.