The works of John Locke, Esq. : [in three volumes] ..
Locke, John, 1632-1704 | John Adams Library (Boston Public Library) BRL | Adams, John, 1735-1826, former owner
ik!tiL^ J ^ »'^. "'fji^f ii^r j^>««iC:!f. ■^1 y V J: » < IN TME CUSTODY OF TME BOSTON PUBLIC LIBRARY. *ADA1KIS ; ' " . jtASUffetf*'" t 0 l^^^^ ^a-r^2^ THE O R K S OF ^ JOHN LOCKE, Efq; VOL. II. CONTAINING, Some confiderations of the confequences of the lowering of intereft, and raifmg the value of money. In a letter fent to a member of parliament, 1 69 1. Short obfervations on a printed paper, entitled. For encouraging the coining filver money in England, and after for keeping it here. Further obfervations concerning raifing the value of money. Wherein Mr. L o w N D E s's arguments for it, in his late report, concerning An eflay for the amendment of the filver coin, are particularly examined. Two treatifes of government. In the former, the falfe principles and founda- tion of Sir R o B E RT Fi L M E R, and his followers, are detefted and over- thrown. The latter is an efiay con- cerning the true original, extent, and end of civil government. A L E T T £ R concerning toleration. A Second letter concerning toleration. A Th I R D letter for toleration : to the author of the third letter concerning toleration. Th E reafonablenefs of Chriftianity, as delivered in the Scriptures. A Vindication of The reafonablenefs of Chriftianity, from Mr. Edwards's reflections. A Second vindication of The rea- fonablenefs of Chriftianity. The Fourth Edition. LONDON, 4? i %, Prjnted for E d m u n d Pa R k e r, at the Bible and Crown, in Lombard- 'Street; Edward Symon, againft the Royal-Exchange, in Cornhill; C H A R L^E s Hitch, at the Red-Lion, in Paternofter-Row ; and John Pemberton, at the Golden-Buck, in Fleetftreet. M. DCC. XL. ADAMS Some CONSIDERATIONS OF THE CONSEQUENCES O F T H E Lowering of Intereft, AND Raifing the Value O F MONEY. In a Letter fent to a Member of Parliament, Vol. II. 3 SOME CONSIDERATIONS O F T H E Lowering of Intereft, AND RAISING the VALUE O F MONEY. SIR,. HESE 7iofwis cmcernlng coinage havwg, for the mai?:, as you know, been put into ivriting, above twehe mo?iths fmce ; as thoje other, concerning ijiterefi, a great deal above Jo many years ; I put them tiow again into your hands, ijoith a liberty (fmce you will have it Jo) to communicate them farther^ as you pleafe. If, upon a review, you continue your favourable opinion cf them, and nothing lefs than publifmig will fat isfy you, I mujl defire you to }-emember, that you mi ft be anjwerable to the world, for thejlile ; which isjiich as a man writes carelefy to his friend, when he J'eeks truth, 7iot ornament; and ftudies only to be in the right, and to be undetjlood. I have, Jince you faw them lajl year, metivith Jome new obje5lions in print, which I have endeavoured to remove ; and particu- larly I have taken into conf deration a printed feet, entitled, "Remarks upon a " paper given in to the Lords, &c." becauje one may iiaturally fuppofe, that he^ that was fo much a patron of that cauj'e, would omit nothing, that could be faidin favour of it. To this I mufl here add, 'That I am juji now told from Holland, " That the States, finding themfelves abiifcd by coining a va/i quantity of their " bafe [Schillings^ money, made of their own ducatoons, and other finer Jilver, " melted down, have put a fop to the minting of any but fine filvcr coin, till they " Jhould fettle their mint upon a newfootT I know the fincere love and concern, you have for your country, puts you conflantly upon cajiing about, on all hands, for any means to ferve it ; and will not fiffer you to overlook any thing, you conceive, may be of any the leaf uje, though offer d you, from the meaneft capacities : you could not elje have put me upon looking out my old papers, concerning the reducing of intereft to 4 per cent, which have Jo long lain by, and forgotten. Upon this new Jurvey of them, I find not my thoughts now to differ, from thoJe I had near twenty years fince : they have to 77ie fill the appearance of truth ; nor floould I otherwije venture them, Jo much as to your fight. If my notions are wrong, 7ny intention, I amfure, is right ; and whatever I have fail' d in, I jhall at leaf let youj'ee with what obedience I am^ Nov. 7. 1691 » S I R, Your moft humble fervant. S I R, 4 Confiderations of the lowering of intereft, s I R, Have fo little concern In payings or receiving of " Intereft," that were I in no more danger to bb milled by inability and ig- norance, than I am to be biaffed by intereft and inclination, I might hope to give you a very perfed; and clear account, of the confequences of a law to reduce intereft to 4 per cent. But, fince you are pleafed to afk my opinion, I fliall endeavour fairly to ftate this matter of Ufe, with the beft bf my fklll. Th e firft thing to be confider'd is, " Whether the price of the hire of rao- " ney can be regulated by Law ?" And to that I think, generally fpeaking, one may fay, " 'tis manifeft it cannot." For, fince it's impoflible to make a law, that fhall hinder ia man from giving away his money, or eftate, to whom he plea- fes, it will be impoflible, by any contrivance of law, to hinder men, fkill'd in the power they have, over their own goods, and the ways of conveying them to others, to purchafe money to be lent them, at what rate foever their occa- fions fliall make it neceflary for them to have it. For it is to be remembered, that no man borrows money, or pays Ufe, out of mere pleafure : 'tis the want of money drives men to that trouble and charge of borrowing ; and, proportionably to this want, fo will every one have it, whatever price it coft him. Wherein the fkilful, I fay, will always fo manage It, as to avoid the prohibition of your Law, and keep out of its penalty, do what you can. What then will be the unavoidable confequences of fuch a law ? 1. It will make the difficulty of borrowing and lending much greater; whereby trade (the foundation of riches) will be obftrudted. 2. It will be a prejudice to none, but thofe who moft need afllftance and help; I mean widows and orphans, and others uninftrudled in the arts and manage- ment of more fkilful men ; whofe eftates lying in money, they will be hue, eipecially orphans, to have no more profit of their money, than what " inte- reft" the law barely allows. 3. It will mightily increafe the advantage of bankers and fcrlveners, and other fuch expert brokers ; who flciU'd in the arts of putting out money, ac- cording to the true and natural value, which the prefent ftate of trade, money and debts fliall always raife intereft to, they will infallibly get what the true Value of intereft fliall be above the legal. For, men finding the convenience of lodging their money in hands, where they can be fure of it, at fliort warn- ing, the ignorant and lazy will be forwardeft to put it into thefe men's hands, who are known willingly to receive it, and where they can readily have the whole, or a part, upon any fudden occafion, that may call for it. 4. I FEAR, I may reckon it as one of the probable confequences of fuch a law, that it is likely to caufe great perjury in the nation ; a crime, than which nothing is more carefully to be prevented by lawmakers, not only by penalties, that fliall attend apparent and proved peijury, but by avoiding and lefTening, as much as may be, the temptations to it. For Where thofe are ftrong, (as they are, where men fliall fweai" for their own advantage) there the fear, of penalties to follow, will have little reftrairit, efpecially if the crime be hard to be proved. All which) I fuppofe, will happen in this cafe, where ways will be found out to receive tnoney, upon other pretfences than for ufe, to evade the rule and ri- gor of the law : and there will be fecret trufts and collufions amongft men, that, though they may be fufpedted, can never be proved, without their own confeflion. I have heard very fober and obferving perfons complain of the dan- ger men's lives and properties are in, by the frequency and fafliionablenefs of perjury amongft us. Faith and truth, efpecially in all occafions of attefting it, upon the folemn appeal to heaven by an oath, is the great bond of fociety : this it becomes the wifdom of magiftrates carefully to fupport. and render as facred and awful. In the minds of the people, as they can. But, if ever frequen- cy of oaths fliall make them be looked on, as formalities of law, or the cuftom of and raifing the value of money. of ftraining of truth (which men's fwearing in their own cafes is apt to lead them to) has once dipp'd men in perjury, and the guilt, with the temptation, has ipread itfelf very wide, and made it almoft fafhionable in fome cafes, it wilt be impoflible for the fociety (thefe bonds being diffolved) to fubfift. All muft break in pieces, and run to confufion. That fwearing in their own cafes is apt by degrees to lead men into as little regard of fuch oaths, as they have of their ordinary talk, I think there is reafon to fulpedl, from what has been obferved, in fomething of that kind. Mailers of {hips are a fort of men generally induftri- ous and fober, and I fuppofe may be thought, for their number and rank, to be equally honell to any other fort of men ; and yet, by the difcourfe I have had with merchants in other countries, I find that they think, in thole parts, they take a great liberty in their cuftom-houfe oaths, to that degree, that I remem- ber I was once told, in a trading town beyond fea, of a mafter of a veffel, there efteemed a fober and fair man, who yet could not hold faying, " God forbid that a cuftom-houfe oath fhould be a fin." I fay not this to make any refledlion upon a fort of men, that I think as uncorrupt as any other ; and who, I am fure, oujht in England to be cherilhed and efteemed, as the moft induftrious and moft beneficial of any of its fubjefts. But I could not forbear to give this here, as an inftance, how dangerous a temptation it is, to bring men cuftomarily to fwear, where they have any concernment of their own. And it will always be worthy the care and confideration of law-makers, to keep up the opinion of an oath, high and facred, as it ought to be, in the minds of the people : which can never be done, where frequency of oaths, biaffed by intereft, has eftabliftied a negledt of them; and fiftiion (which it feldom fails to do) has given countenance to what profit rewards. But that law cannot keep men from taking more ufe, than you fet (the want of money being that alone which regulates its price) will perhaps appear, if we confider how hard it is to fet a price upon wine, or iilks, or other unnecef- fary commodities ; but how impoflible it is to fet a rate upon vid:uals, in a time of famine. For, money being an univerfal commodity, and as neceflary to trade as food is to life, every body muft have it, at what rate they can get it ; and unavoidably pay dear, when it is fcarce j and debts, no lefs than trade, have made borrowing in faftiion. The bankers are a clear inftance of this : For fome years fince, the fcarcity of money having made it in England worth re- ally more than fix per cent, moft of thofe that had not the fkill to let it for more than fix per cent, and fecure themfelves from the penalty of the law, put it in the bankers hands, where it was ready at their call, when they had an opportunity of greater improvement. So that the rate, you fet, profits not the lender'^, and very few of the borrowers, who are fain to pay the price for mo- ney, that commodity would bear, were it left free; and the gain is only to the banker. And fhould you leflen the ufe to four per cent, the merchant or tr.;defman, that borrows, would not have it one jot cheaper than he has now ; but probably thefe two ill eflTedfs would follow : Firft, That he would pay dearer; and. Secondly, That there would be lefs money left in the country, to drive the trade. For the bankers, paying at moft but four per cent, and receiving from fix to ten per cent, or more, at that low rate could be content to have more mo- ney lie dead by them, than now, when it is higher: by which means there would be lefs money ftirring in trade, and a greater fcarcity ; which would raife it upon the borrower, by this monopoly. And what a part of our trea- fure their fkill and management, join'd with others lazinefs, or want of fkill, is apt to draw into their hands, is to be known by thofe vaft fums of money, they were found to owe, at the fliutting up of the Exchequer : and though it be very true, yet it is almoft beyond belief, that one private goldfmith of London fliould have credit, upon his fingle fecurity, (being ufually nothing but a note, under one of his fervant's hands) for above eleven hundred thoufand pounds at once. The fame reafons, I fuppofe, will ftill keep on the fame trade : and, when you have taken it down by law, to that rate, no body will think of ha- ving more than four per cent, of the banker j though thofe, who have need of Vol. II. B money 6 Confiderations of the lowering of intereft, money, to employ it in trade, will not then, any more than now, get it under five or fix, or, as feme pay, feven or eight. And if they had then, when the law permitted men to make more profit of their money, fo large a proportion of the cafti of the nation in their hands, who can think, but that, by this law, it fhould be more driven into Lombard-ftreet now ? there being many now, who lend them at four or five per cent, who will not lend to others at fix. It would therefore, perhaps, bring down the rate of money to the borrower, and certainly diftribute it better to the advantage of trade in the country, if the legal ufe were kept pretty near to the natural; (by natural ufe, I mean that rate of money, which the prefent fcarcity of it makes it naturally at, up- on an equal diftribution of it) for then men, being licenfed by the law to take near the full natural ufe, will not be forward to carry it to London, to put it into the banker's hands ; but will lend it to their neighbours in the country, where it is convenient for trade it fliould be. N o w, I think, the natural intereft of money Is raifed two ways : firft. When the money of a country is but little, in proportion to the debts of the inhabitants, one amongft other. For fuppofe ten thoufand pounds were fuffi- cient to manage the trade of Bermudas, and that the ten firft planters carried over twenty thoufand pounds, which they lent to the feveral tradefmen and in- habitants of the country, who living above their gains, had fpent ten thoufand pounds of this money, and it were gone out of the ifland : 'tis evident, that, fhould all the creditors at once call in their money, there would be a great fcar- city of money, when that, employed in trade, muft be taken out of the tradef- men's hands to pay debts ; or elfe the debtors want money, and be expofed to their creditors, and fo intereft will be high. But this feldom happening, that all, or the greateft part, of the creditors do at once call for their money, un- iefs it be in fome great and general danger, is lefs and feldomer felt than the fol- lowing, unlefs where the debts of the people are grown to a greater proportion ; for that, conftantly caufing more borrowers than there can be lenders, will make money fcarce, and confequently intereft high. Secondly, That, which conftantly raifes the natural intereft of money, is, when money is little, in proportion to the trade of a country. For in trade every body calls for money, according as he wants it, and this difproportion is always felt. For, if Eng- liftimen owed in all but one million, and there were a million of money in England, the money would be well enough proportioned to the debts : but, if two millions were neceflTary to carry on the trade, there would be a million want- ing, and the price of money would be raifed, as it is of any other commodify in a market, where the merchandize will not ferve half the cuftomers, and there are two buyers for one feller. 'Ti s in vain therefore, to go about effedlually to reduce the price of intereft by a law i and you may as rationally hope to fet a fix'd rate upon the hire of houfes, and raffing the value of money. houfes, or fliips, as of money. He, that wants a veffel, rather than lofe his market, will not ftick to have it at the market-rate, and find ways to do it with fecurity to the owner, though the rate were Umited by law : and, he that wants money, rather than lofe his voyage, or his trade, will pay the natural inte- refl for it; and fubmit to fuch ways of conveyance, as fhall keep the lender out of the reach of the law. So that your ad at beft, will ferve only to in- creafe the arts of lending, but not at all leflen the charge of the borrower : he, 'tis likely, fhall, with more trouble, and going farther about, pay alfo the more for his money ; unlefs you intend to break in, only upon mortgages and con- tradls already made, and (which is not to be fuppofed) by a law, poft faftum, void bargains lawfully made, and give to Richard what is Peter's due, for no other reafon, but becaufe one was borrower, and the other lender. But, fuppofing the law reach'd the intention of the promoters of it; and that this adl be fo contriv'd, that it fixed the natural price of money, and hin- died its being, by any body, lent at a higher ufe than four per cent, which is plain it cannot : let us, in the next place, fee what will be the confequences of it. 1. It will be a lofs to widows, orphans, and all thofe, who have their eftates in money, one third of their eftates ; which will be a very hard cafe up- on a great number of people ; and it is warily to be confider'd, by the wifdom of the nation, whether they will thus, at one blow, fine and impoverifh a great and innocent part of the people, who having their eftates in money, have as much right to make as much of their money as it is worth, ( for more they can- not) as the landlord has to let his land for as much as it will yield. To fine men one third of their eftates, without any crime, or offence committed, feems very hard. 2. As it will be a confiderable lofs and injury to the money'd man, fo it will be no advantage at all to the kingdom. For fo trade be not cramp'd, and the exportation of our native commodities and manufadlures not hindred, it will be no matter to the kingdom, who amongft ourfelves gets, or lofes : only common charity teaches, that thofe fliould be moft taken care of, by the law, who are leaft capable of taking care for themfelves. 3. It will be a gain to the borrowing merchant. For if he borrow at four per cent, and his returns be twelve per cent, he will have eight per cent, and the lender four : whereas now they divide the profit equally at fix per cent. But this neither gets, nor lofes, to the kingdom, in your trade, fuppofing the mer- chant and lender to be both Englifhmen : only it will, as I have faid, transfer a third part of the money'd man's eftate, who has nothing elfe to live on, into the merchant's pocket ; and that without any merit in the one, or tranfgreflion in the other. Private men's interefts ought not thus to be negledled, nor facri- ficed to any thing, but the manifeft advantage of the publick. But, in this cafe, it will be quite the contrary. This lofs to the money'd men will be a pre- judice to trade : fince it will difcourage lending at fuch a difproportion of pro- fit, to rifque ; as we fliall fee more by and by, when we come to confider of what confequence it is to encourage lending, that fo none of the money of the nation may lie dead, and thereby prejudice trade. 4. I T will hinder trade. For, there being a certain proportion of money, neceflary for driving fuch a proportion of trade, fo much money of this, as lies ftill, leffens fo much of the trade. Now it cannot be rationally expefted, but that where the venture is great, and the gains fmall, (as it is in lending in England, upon low intereft) many will chufe rather to hoard up their money, than venture it abroad, on fuch terms. This will be a lofs to the kingdom, and fuch a lofs as, here in England, ought chiefly to be looked after : for, we ha- ving no mines, nor any other way of getting, or keeping of riches amongft us, but by trade, fo much of our trade as is loft, fo much of our riches muft necef- firily go with it ; and the over-balancing of trade, between us and our neigh- bours, muft inevitably carry away our money, and quickly leave us poor, and expofed. Gold and filver, though they ferve for few, yet they command all the conveniencies of life, and therefore in a plenty of them confifts riches. 3 Every 8 Confiderations of the lowering of intereft, Eve RY one knows that mines alone furnifli thefe : but withal 'tis obfervable, that moft countries, ftored with them by nature, are poor. The digging and re- fining of thefe metals taking up the labour, and wafting the number of the people. For which reafon the wife policy of the Chinefe will not fuffer the mines, they have, to be wrought. Nor indeed, things rightly confidered, do gold and filver, drawn out of the mine, equally enrich, with what is got by trade. He, that would make the lighter fcale preponderate to the oppofite, will not fo foon do it, by adding increafe of new weight lo the emptier, as if he took out of the heavier what he adds to the lighter, for then half fo much will do it. Riches do not confift in having more gold and filver, but in having more in proportion than the reft of the world, or than our neighbours, where- by we are enabled to procure to ourfelves a greater plenty of the conveniencies of life, than comes within the reach of neighbouring kingdoms and ftates, who, fharing the gold and filver of the world in a lefs proportion, want the means of plenty and power, and fo are poorer. Nor would they be one jot the richer, if, by the difcovcry of new mines, the quantity of gold and filver in the world becoming twice as much, as it is, their fliares of them ftiould be doubled. By gold and filver in the world, I muft be underftood to mean, not what lies hid in the earth ; but what is already out of the mine, in the hands and pofleftions of men. This, if well confider'd, would be no fmall encou- ragement to trade, which is a furer and fhorter way to riches, than any other, where it is managed with fkill and induftry. In a country not fiirniflied with mines, there are but two ways of growing rich, either conqueft, or commerce. By the firft the Romans made themfelves mafters of the riches of the world j but I think that, in our prefent circum- ftances, no body is vain enough to entertain a thought of our reaping the pro- fits of the world with our fwords, and making the fpoil and tribute of van- quiftied nations, the fiind for the fupply of the charges of the government, with an overplus for the wants, and equally craving luxury, and faftiionable vanity of the people. Commerce, therefore, is the only way left to us, either for riches, or fubfiftence : for this the advantages of our fituation, as well as the induftry and inclination of our people, bold and fkilfiil at fea, do naturally fit us : by this the nation of England has been hitherto fupported, and trade left almoft to it felf, and affifted only by the natural advantages above-mentioned, brought us in plenty and riches, and always fet this kingdom in a rank equal, if not fu- perior to any of its neighbours j and would, no doubt, without any difficulty have continued it fo, if the more enlarged, and better underftood intereft of trade, fince the improvement of navigation, had not raifed us many rivals ; and the amazing politicks of fome late reigns, let in other competitors with us for the fea, who will be fure to feize to themfelves whatever parts of trade, our mifmanagement, or want of money, ftiall let flip out of our hands : and when it is once loft, 'twill be too late to hope, by a mif-tim'd care, eafily to re i ieve it again. For the currents of trade, like thofe of waters, make themfelves channels, out of which they are afterwards as hard to be diverted, as rivers that have worn themfelves deep within their banks. Trade, then, is neceflary to the producing of riches, and money necefla- ry to the carrying on of trade. This is principally to be looked after, and taken care of. For if this be negledled, we fliall in vain by contrivance amongft ourfelves, and fliuffling the little money we have, from one another's hands, endeavour to prevent our wants : decay of trade will quickly wafte all the re- mainder ; and then the landed-man, who thinks, perhaps, by the fall of inte- reft to raife the value of his land, will find himfelf cruelly miftaken, when the money being gone, (as it will be, if our trade be not kept up ) he can get neither farmer to rent, nor purchafer to buy his land. Whatfoever, therefore, hinders the lending of money, injures trade : and fo the reducing of money to four per cent, which will difcourage men from lending, will be a lofs to the kingdom, in Hopping fo much of the current money, which turns the wheels of trade. and raifing the value of money. trade. But all this upon a fuppofition, that the lender and borrower are both Engliflimen. If the lender be a foreigner, by lefTening intereft from fix to four, you get to the kingdom one third part of the interefl we pay yearly to foreigners : which let any one, if he pleafe, think conliderable. But then, upon lelTening intereft to four per cent, it is likely one of thefe things will happen : that either you fall the price of your native commodities, or leffen your trade, or elfe prevent not the high ufe, as you intended. For, at the time of leflening your intereft, you want money for your trade, or you do not. If you do not, there is no need to prevent borrowing at a high rate of your neighbours. For no country bor- rows of its neighbours, but where there is need ot money for trade : no body will borrow more of a foreigner, to let it lie ftill. And, if you do want mo- ney, neceflity will ftill make you borrow where you can, and at the rates your necelTity, not your laws, fliall fet : or elfe, if there be fcarcity of money, it muft hinder the merchant's buying and exportation, and the artiian's manu- facture. Now the kingdom gets, or lofes by this (for no queftion the mer- chant, by low intereft, gets all the while) only proportionably (allowing the confumption of foreign commodities to be ftill the lame) as the paying of ufe to foreigners carries away more, or lefs, of our money, than want of money and rtopping our trade keeps us from bringing in, by hindringour gains, which can be only eftimated by thofe, who know how much money we borrow of foreigners, and at what rate -, and too, what profit in trade we make of that money. Borrowing of foreigners upon intereft, it's true, carries away fome of our gain : but yet, upon examination it will be found, that our growing rich, or poor, depends not at all upon our borrowing upon intereft, or not ; but only, which is greater or lefs, our importation, or exportation of confumable com- modities. For, fuppoling two millions of money wiil drive the trade of Eng- land, and that we have money enough of our own to do it ; if we confume of our own produdl and manufacfture, and what we purchafe by it of foreign com- modities, one million, but of the other million confume nothing, but make a return of ten per cent, per annum, we muft then every year be one hundred thoufand pounds richer, and our ftock be fo much increas'd: but, if we import more confumable commodities, than we export, our money muft go out to pay for them, and we grow poorer. Suppofe, therefore, ill hufbandry had brought us to one million ftock, and we borrow the other million (as we mult, or lofe half our trade) at fix per cent. If we confume one moiety, and make ftill ten per cent, per ann. return of the other million, the kingdom gets forty thou- fand pounds per ann. though it pay fixty thoufand pounds per ann. ufe. So that, if the merchant's return be more than his ufe, (which 'tis certain it is, or elfe he will not trade) and all that is fo traded for, on borrowed money, be but the over-balance of our exportation to our importation, the kingdom gets, by this borrowing, fo much us the merchant's gain is above his ufe. But, if we borrow only for our own expence?, we grow doubly poor, by paying money for the commodity we confume, and ufe for that money ; though the mer- chant gets all this while, by making returns greater than his ufe. And there- fore, borrowing of foreigners, in itfelf, makes not the kingdom ricli, or poor; for it may do either : but fpcnding more than our fruits, or manufactures, will pay for, brings in poverty, and poverty borrowing. Fo R money, as neceffary to trade, may be doubly confidered. Firft, as in his hands that pays the labourer and landholder, (for here its motion terminates, and through whofe hands foever it paffes between thefe, he is but a broker) and if this man want money, (as for example, the clothier) the manufadure is not made ; and fo the trade ftops, and is loft. Or, fecondly, money may be con- fidered, as in the hands of the confumer, under which name I here reckon the merchant, who buys the commodity, when made, to export: and, if he want money, the value of the commodity, when made, is leffened, and fo the king- dom lofes in the price. If, theiefore, ufe be leflened, and you cannot tie fo- VoL. II. C rcigners I o Confiderations of the lowering of intereft, rei^^ners to your terms, then the ill efFeds will fall only upon your landholders and artifans : if foreigners can be forc'd, by your law, to lend you money, only at your own rate, or not lend at all, is it not more likely they will rather take it home, and think it fafer in their own country at four per cent, than abroad, in a decaying country ? Nor can their overplus of money bring them to lend to you, on your terms : for, when your merchants want of money fliall have funk the price of your market, a Dutchman will find it more gains, to buy your commodity himfelf, than lend his money at four per cent, to an Engliili merchant to trade with. Nor will the aft of navigation hinder their coming, by making them come empty, fince even already there are thofe who think, that many, who go for Engliili merchants, are but Dutch fidlors, and trade for others in their own names. The kingdom, therefore, will lofe by this lower- ing of intereft, if it makes foreigners withdraw any of their money, as well as if it hinders any of your people from lending theirs, where trade has need of it. In a treatife, writ on purpofe for the bringing down of intereft, I find this argument, of foreigners calling away their money, to the prejudice of our trade, thus anfwer'd, " That the money of foreigners, is not brought into the land by " ready coin, or bullion, but by goods, or bills of exchange, and, when it is " paid, muft be returned by goods, or bills of exchange ; and there will not " be the lefs money in the land." I could not but wonder to fee a man, who undertook to write of money and intereft, talk fo direftly befides the matter, in the bufinefs of trade. " Foreigner's money, he lays, is not brought into *' the land by ready coin, or bullion, but by goods, or bills of exchange." How then do we come by bullion, or money ? For gold grows not, that I know, in our country, and filver fo little, that one hundred thoufandth part of the filver we have now in England, was not drawn out of any mines in this ifland. If he means, that the monied man in Holland, who puts out his money at intereft here, did not fend it over in bullion, or fpecie hither : that may be true, or falfe ; but either way helps not that author's purpofe. For, if he paid his mo- ney to a merchant, his neighbour, and took his bills for it here in England, he did the fame thing, as if he had fent over that money, fince he does but make that merchant leave in England the money, which he has due to him there, and otherwife would carry away. " No, fays our author, he cannot carry it " away J for, fays he, when it is paid, it muft be returned by goods, or bills *' of exchange." It muft not be paid and exported in ready money, fo fays our law indeed, but that is a law to hedge in the cookoe, and ierves to no pur- pofe. For, if we export not goods, for which our merchants have money, due to them in Holland, How can it be paid by bills of exchange ? And for goods, one hundred pounds worth of goods can no where pay two hundred pounds in money. Let us fuppofe England peopled, as it is now ; and its woollen manufiifture in the fame ftate and perfedlion, that it is at prefent ; and that we, having no money at all, trade with this our woollen manufidlure, for the value of two hundred thoufand pounds yearly to Spain, where there actually is a million in money : fiirther, let us fuppofe that we bring back from Spain yearly in oil, wine and fruit, to the value of one hundred thoufand pounds, and continue to do this ten years together : 'tis plain that we have had for our two millions va- lue in woollen manufafture, carried thither, one million returned in wine, oil, and fruit : but what is become of t'other million ? Will the merchants be con- tent to lofe it ? That you may be fure they would not, nor have traded on, if they had not, every year, returns made, anfwering their exportation. How then were the returns made ? In money, it is evident. For the Spaniards ha- ving, in fuch a trade, no debts, nor the pofilbility of any debts in England, cannot pay one farthing of that other million, by bills of exchange: and, ha- ving no commodities, that we will take off, above the value of one hundred thoufand pounds per ann, they cannot pay us in commodities. From whence I it and raifing the value of money. 1 1 it nectffarily follows, that the hundred thoufand pounds per ann. wherein we over-balance them in trade, muft be paid us in money ; and fo, at the ten years end, their million of money, (though their law make it death to export it) will be all brought into England ; as, in truth, by this over-balance of trade, the grcatcft part of our money hath been brought into England, out of Spain, L E T us fuppofe ourfelves now pofTeffed of this million of money 3 and ex- porting yearly out of England, to the feveral parts of the world, confumable commodities, to the value of a million, but importing yearly in commodities, which we confume amongft us, to the value of eleven hundred thoufand pounds. If fuch a trade as this be managed amongft us, and continue ten years, it is evident, that our million of money will, at the end of the ten years, be inevi- tably all gone from us to them, by the fame way that it came to us ; that is, by their over-balance of trade ; for we, importing every year one hundred thou- fand pounds worth of commodities, more than we export, and there being no foreigners, that will give us one hundred thoufand pounds every year for no- thing, it is unavoidable, that one hundred thoufand pounds of our money muft go out every year, to pay for that over-plus, which our commodities do not pay for. 'Tis ridiculous to fay, that bills of exchange (hall pay our debts abroad : that cannot be, till fcrips of paper can be made current coin. The Englifli merchant, who has no money owing him abroad, cannot expert to have his bills paid there. Or, if he has credit enough with a correfpondent, to have his bills anfwered ; this pays none of the debt of England, but only changes the creditor. And, if upon the general balance of trade, Englifli merchants owe to foreigners one hundred thouland pounds, or a million, if commodities do rot, our money muft go out to pay it, or elfe our credit be loft, and our trade ilop, and be loft too. A Kingdom grows rich, or poor, juft as a farmer doth, and nootherwiie. Let us fuppofe the whole ifle of Portland one firm ; and that the owner, be- fides what ferves his family, carries to market to Weymouth and Dorchefter, &c. cattle, corn, butter, cheefe, wooll or cloth, lead and tin, all commodi- ties, produced and wrought within his farm of Portland, to the value of a thoufand pounds yearly ; and for this, brings home in fait, wine, oil, fpice, linnen and filks, to the value of nine hundred pounds, and the remaining hun- dred pounds in money. 'Tis evident he grows every year a hundred pounds richer, and fo at the end of ten years will have clearly got a thoufand pounds. If the owner be a better huft)and, and contenting himfelf with his native com- modities, buy lefs wine, fpice, and filk, at market, and fo bring home five hundred pounds in money yearly, inftead of a thoufand pounds, at the end of ten years, he will have five thoufand pounds by him, and be fo much richer. He dies, and his fon fucceeds, a fafhionable young gentleman, that cannot dine without Champagne and Burgundy, nor fleep but in a damafk bedj whofe ■wife muft fpread a long train of brocard, and his children be always in the neweft French cut and ftuff". He, being come to the eftate, keeps on a very bufy family ; the markets are weekly frequented, and the commodities of his farm carried out, and fold, as formerly, but the returns are made fomething different ; the faftiionable way of eating, drinking, furniture and clothing, for liimfelf and family, requires more fugar and fpice, wine and fruit, filk and ribbons, than in his father's time ; fo that inftead of nine hundred pounds per annum, he now brings home of confumable commodities, to the value of ele- ven hundred pounds yearly. What comes of this ? He lives in fplendor, 'tis true, but this unavoidably carries away the money his father got, and he is every year an hundred pounds poorer. To his expences, beyond his income, add debauchery, idlenefs, and quarrels amongft his fervants, whereby his ma- nufadlures are difturbed, and his bufinefs neglecfled, and a general diforder and confufion through his whole family and farni : this will tumble him down tlie hill the fafter, and the ftock, which the induftry, frugality, and good order of his father had laid up, will be quickly brought to an end, and he faft in prifon. A farm and a kingdom in this refpeft differ no more, than as greater and $ 1 Confiderations of the lowering of intereit, and lefs. We may trade, and be bufy, and grow poor by if, iinlefs we regu-* late our expences ; if to this we are idle, negligent, diflioneft, malicious, and difturb the fober and induftrious in their bufinefs, let it be upon what pretence it Will, we fliall ruin the fafter. S o that, whatever this author, or any one elfe may lay, money is brought into England by nothing, hut Ipending here lefs of foreign commodities, than what we carry to market, can pay for ; nor can debts, we owe to foreigners, be paid by bills of exchange, till our commodities exported, and fold beyond fea, have produced money, or debts, due tliere to fome of our merchants. For no- thing will pay debts, but money, or money's worth, which three or four lines writ in paper, cannot be. If fuch bills have an intriniick value, and can fers'e inftead of money, why do we not fend them to market, initead of our cloth, lead and tin, and at an ealier rate purchafe the com.moditics we want ? All, that a bill of exchange can do, is to direc^t to whom mcMiey due, or taken up upon credit, in a foreign country, Ihall be paid : and if we trace it, we Ihall find, that what is owing already, became fo for commodities, or money carri- ed from hence : and, if it be taken up upon credit, it muft (let the debt be fhifted from one creditor to another, as often as you will) at laft be paid by money, or goods, carried from hence, or elfe the merchant here mufl turn bankrupt. We have feen how riches and money are got, kept, or loft, in any country; and that is by confuming lefs of foreign commodities, than what by commodi- ties, or labour, is paid for. This is in the ordinary courfe of things : but where great armies and alliances are to be maintained abroad, by fupplies fent out of any country, there often, by a ftiorter and more fcnfible way, the treaiiire is di- miniflied. But this, fince the holy war, or at leaft fince the improvement of navigation and trade, feldom happening to England, whofe princes have found the enlarging their power by fea, and the fecuring our navigation and trade, more the intereft of this kingdom than wars, or conqueils, on the continent ; expences in arms beyond fea have had little influence on our riches, or poverty. The next thing to be confidered, is, how money is necefliiry to trade. 