THE INTRODUCTION
THE encouragement the Proposals for Land-Credit met from the Sessions of this Parliament Anno 93. Together with its, at least seeming, great Intrinsick worth, obliges me this Session to sollicit the establishing an Office in this Country for the same, either according to the first Proposall, or either of the following different Modells, which, being as truely Political, as the Coining of Money, fall more naturally under the examination States-men than Merchants, tho' the employment for Credit, as that for Money, being partly mercantile, may deserve the concurrence of Traders also.
Now, to recommend a mater of so general a Concern the more powerfully, it may not be amiss to inquire a little into the present Wants of this Kingdom: and then humbly to offer something towards a Remedy.
Is therefore Scotland under such present flourishing circumstances, as that there is no room left for new advantages? for example, are there Stocks, work-houses, & Employments for all the Poor? are there Hospitalls for the Aged, Maimed and Sick Poor? are all the Lands improved as [Page 10] much, as they are capable, and all profitable Mines wrought and discovered? are Manufactures multiplied, increased, or improved to perfection, sufficient for home consumption and forraign exportation? is there half a Million, or a Million ready for the service of the African Company, to Recover their late disapointments? are all necessaries supplied, no conveniences wanting, nor no more superfluitys desireable in this Country? and besides these there may be many more, too tedious to be here inserted. If these and more remain still to be wisht for? What can be a more speedy and proper remedy, than to discover a measure of Trade within their own Power, as certain, safe, and effectual, as Gold or Silver Money, and in such quantity, as their occasions may at any time require? without which Lands and hands, must remain a long time, if not always idle, or move but slowly: for, wherever there is plenty of a measure of Trade; whether money or current Credit, there the foresaid wants are much unknown; and, whereever there is scarcity of either of them, all Industry sl [...]eps. Money of Gold and Silver, and an indifferent Credit, as well as either, [...]e [...]ves these uses, by making current payments abroad in all Trading places; The first cannot be procured here in many years sufficient to an [...]wer the Nations occasions; The last, of a much better and more usefull sort, than in any other Cou [...]try, ca [...] be here provided, sufficient to supply all de [...]e [...]ts and Reasonable d [...]sires; and is humbly tendered in the ensueing Papers. As to the danger of having too much Credit, there can be non more than of having too mu [...]h Gold; for whatever becomes useless will never be sought after; therefore none will [Page 11] then venture abroad for Gold, nor any desire to raise Credit on their Estates. But besides, lett any measure of Trade be increast never so fast, the uses and occasions will ever Ride the fore Horse, as is evident in all wealthy Countries; and it would be but common prudence for every particular Family to keep the value of a Years expence in such a measure of Trade always dead in their Chest, to answer dangerous contingences, which alone would take up eight Millions at present, according to aprobable Computation, and much more hereafter.
TO HIS GRACE JAMES Duke of QƲEENSBERRY, His Majesty's High Commissioner, And to the Right Honourable ESTATES of PARLIAMENT, The following Memorial relating to Land-Credit, is humbly presented by Dr. Hugh Chamberlen.
HAving in the Year 1693 made by my friends a proposal to this Parliament for the establishing a Land-Credit, supposed then by many, not without seeming Reason, a great advantage to the Kingdom of Scotland, and accordingly it was very favourably received by that Session; [Page 12] And finding some Objections since raised against the Form as well as the matter, I have thought it my duty to offer to this Session Proposals of the same nature with some alterations; tho' the former as well as these may be supported, when the Parliament shall be pleased to command it, with such arguments, as 'tis hoped will satisfie evrey doubting Person: For the many Advantages without Loss by, and the easie Possibility of putting Land Credit in practice in this Kingdom, without any manner of danger, seems to plead boldly for its Admission, especially since the present State of Scotland; being capable of more and greater improvements, may tempt their prudent states men seriously to inquire, into what promises so largely: for Land-Credit can do this Nation that good, which is impossible for Gold or Silver: unless there were fewer forrain industrious Rivals to court them, or that they had Mines of their own; Nor is the possibility less obvious, than the utility by the Current and Common passing in all Trading Countries of a worse Credit, founded either upon publick Faith or privat Reputation, wherefore it may not without reason be hoped, such States-men will grant this a kind and generous entertainment.
The former Proposall was to raise Credit upon Land by anticipating one Hundred Years value of the present Rent of such Estates, as should be thereto assigned by Parliament, by which both the Publick and the Proprietor might reap very great advantage these since framed, are beneficial to the Publick and the Proprietor, and seem better suited to the present temper and inclination of this Country.
The Second Proposal is, that to every Heritor, that is [Page 13] able and willing to engage his Estate, shall be delivered in Credit to the value of as many Years Rent, as he pleases, [not exceeding twelve, He paying for the same 5 per Cent Yearly, either in the same Credit, or in money, for thirty Years only, without Obligation to return the Principal.
The Third Proposal is, that Fourscore Pounds of every Hundred Pounds per Annum and so proportionably for a greater or smaller Estate, shall be lent gratis for twenty Years to every Heritor, willing to engage his Estate to pay at twenty Years end, or within one Year after, a whole Years Rent in Credit or Money; now this, being not one per Cent. per Annum Interest for that Terme, is no inconsiderable profit, tho' there were no other: But, to make it yet more acceptable, the overplus twenty Pounds, in the mean time employed in a forain and domestick general Trade, are to be returned at the end of the said 21. Years into rhe proper Office, to indemnity, as far as that can, the Heritors Lands from paying more, than the fourscore Pounds, at first Received, for every Hundred Pounds per Annum.
And, in case any Heritor, by reason of some legal impediment, or for other considerations, should neglect the Offer, that then it may be lawful, after — Moneths, to such others, as shall be willing, to Double, Treble, or Quadruple the said Credit upon their proper Estates, with a liberty of having as many Years time after the twenty to return the Credit, as half the Yearly Rent will complete.
That all the overplus twenty Pounds are to be a Stock in Trade, to be managed by the direction of the Proposer, and under the inspection and controll of the Commissioners [Page 14] of Parliament and the other Trustees, that so no part of the Stock be Imbezeled or converted to private use; but kept up by repairing every loss out of the succeeding profits, before any future dividend be made; And that, during the whole term, and the continuance of the Office after, the nett Profits only be divided [...]n two equal Parts; the one to discharge the expense of the Office and management of the Trade, and the other to the sole use and behoof of the Proposer, his Heirs and Assigns without accompt; and the same benefit to be continued to them, as oft as Land-Credit shall be renewed or augmented within the first twenty Years, and to remain only for the forementioned termes after renovation or augmentation.
These several Proposals are humbly tendered to this August Senat for their consideration & choice, and many more of the same nature may be offered, when commanded; if once Land-Credit be approved; But a Proposal lately printed, for supplying the defects of Money & relief to the Poor, will appear upon examination to be attended with difficult and dangerous Circumstances except such as are apparently borrowed from the proposers Papers.
The Credit raised by any of these Proposals, when returned into the Office, to discharge the engaged Land Funds, either by Annual Rents, or at the end of the Respective, Termes, must be cancelled, or no more issued without a settlement of new Land Estates.
I shall Humbly take leave to add, as a necessary circumstance to these Proposals, that a Council of Trade under a due Constitution, of which some models may be tender'd, when commanded, may be absolutely necessary in this [Page 15] Kingdom, to consider, how to remove all the impediments of Trade? how to provide and incourage all that may promote it? and how to keep the ballance to their advantage of all exportations and importations, without which, and a Court Merchant, Trade is not likely to flourish in this Kingdom so soon.
Several Passages collected out of Sir Thomas-Pope Blunt, and others, are thought necessary to be here inserted, to qualifie unreasonable prejudices, if there should be any such.
AN usefull Error hath often found free admission, when important Truths, contrary to mens Preconceptions or Interest, have been forbidden entrance.
Men judge all things by Anticipation; and condemn or applaud, as they differ or agree with their first opinions.
Some are confirmed in their Folly, beyond Possibility of Conviction. Wife-men suspend their Judgement, and are not forward to censure and condemn. As Antiquity cannot priviledge an Error, so Novelty cannot prejudice Tuth. Some declaim against new things, and set forth the danger of Alteration and Novelty: But let us not be frightned with shadows: if to be an Author of new things be a crime? how will the first Civilizers of men, and masters of Laws and founders of Government escapes? — Whatever now delights us in the Works of Nature, that excells the Rudeness of the first Creation, is new.— It is no Offence to introduce new things unless they prove Pernicious in themselves, or must extirpat better.— Nothing so ancient, but had a beginning, and was once a Novelty.
Men of great Power and Reputation have been Enemies to all sorts of Novelties.
The Bishop of Saltzburg was, at the complaint of the Arch-Bishop of Mentz, condemned for an Heretick, for asserting the Antipodes, supposing some damnable Doctrin was couched under that name.
The improving Trade, the Life and Soul of the Universe, is no slight matter. It is not the vastness of Territory: but the convenient situation: Nor the multitude of men: but their Address and Industry, which improves a Nation.
A Mind transported with Passion rejects the best reasons, and retains the worst opinions. The dull and unactive spirits trouble themselves not to examine things: but take them in the gross, and are for keeping the beaten Road.
Some Opinions strangely please, when at the same time others, recommended with much greater strength of Reason, are not hearkened to.
The following Passages are out of Doctor Stillingfleet's Sermons.
THESE, who will cavil at any thing, are resolved to be convinced by nothing, and such are not fit to be discoursed with.
The clearest Reason hath a difficult access to the Minds of such, who are governed by Interest and Prejudice.— When maters of fact cannot be denyed, then ill men seek to blast the Reputation of such as they hate.— Some have a strange Spirit of contradiction, even against Designes, that are for their own good.— It is fitt the grounds of Actions should be examined, and, if they cannot be justified 'tis time enough at last to condemn them.
The weakest part of mankind are most suspicious; the less they understand, the more they imagine Designs are layed for them.
For want of wisdom and Judgement, the generality of Mankind seldom sees to the End of Things, and hardly distinguish between the name and nature of them, till thir own dear bought Experience hath taught them the difference.
The greatest Good, done to an ungrateful People, does but attract their Malice instead of Gratitude. When men become slaves to their Lusts, they not only neglect their own true Interest, but the Nations also.
Interest and Education are strong Holds; Scoffs and Raillery the weaker Weapons of some persons.
Another Author hath this Passage.
NOnnulli vel ingeniosissima hominum Inventa contemptui habent, &c contra, Nugas omnium nugacissimas magna cum Admiratione suspiciunt.
Certain necessary Positions presented to Serious Consideration, follow.
ALL Materials, when made Money by a Government, whether Silver, Gold, Tobacco, Leather, Fish-Bones, shells, Credit, &c. becomes current living Pledges, and requires therefore no interest, tho' some of them are more fit than others, and none more so, than Land-Credit; but all Materials, not made Money, tho' Gold, Silver, or the most Precious commodity, and even a Bag of [...]olib in Money, if seald up, and not to be made use of, are but dead Pledges, and therefore not current, bur requires Interest.
2. It is indifferent of what Material, Weights & Measures are made, provided they agree with the Publick Standard; And 'tis as indifferent, of what Material, Form, or Impression, Money is framed, provided it be qualified so, as to Serve the Uses of Trade, and to secure Dealers from Loss, as well as Gold and Silver does.
3. Credit upon supposed or unknown funds now serves the uses of Trade, in making current Payments in all Trading Countries, as well as Money of Silver or Gold.
[Page 19]4. Credit upon Land must be always safer and better, than upon any other Fund whatever.
5. Credit upon Land, which Scotland does not want, may be made as usefull real Money, as any of Gold or Silver, which Scotland has not in Plenty.
6. Land-Credit can answer all things, when made current by Parliament, as well as Solomon says, Money of Gold and Silver does; It is is a spring to give motion to heads and hands, for improving Lands and Manufactures.
7. Credit upon Land known sufficient may as we [...]l pass in this Country in small or great Payments, by Bills accordingly fitted, without ever being changed at the Bank for Money, as it does, and has done, in other Countries for above 100 Years, upon only a Money Fund supposed sufficient; altho' such a fund of Money is subject to many real casualtys, when that of Land can be to no other, than imaginary dreams.
8. Money is but a Token with the Value in it, and Land-Credit is a better Token, Because it has a greater value, than it passes for, inseperably annext to it by Law.
9. Money being what only makes the European Princes Powrfull, can Scotland hope to make a figure among them, till they have mended their condition? It is not Necessity but Choice makes Scotland Poor; not because they must, but because they will be so.
10. The right and ready methods to obtain wealth honestly, must certainly be very desireable.
11. Scotland seems to acknowledge, they cannot have too much Money, and have now too little, because they are so earnest to increase, and regulate their Trade, which would else be to no purpose.
[Page 20]12. When money or Credit can be easier procured, and heads and hands, that is Invention and Labour, more encouraged, a much greater Stock can be here employed in Trade, than is now supposed to be wanting.
13. Current Land-Credit is without exception the best Worldly Advantage, and in its own nature as practicable, as most, and more practicable, then many valuable things now in use.
14. The Utility and Natural Possibility of Land Credit is certain, whither it will be thought so, is yet a Question.
15. Land is esteemed all the World over, as well where is Gold and Silver, as where there is none and the value still increases with the increase of Gold and Silver.
16. A good Land mortgage is esteemed equally valuable with a like Summ in Money, else none would give Money for it: the bills of Land-Credit are little Land Mortgages as safe, as the greater, and more usefull, because small, and therefore may be made by Parliament Current and living.
17. Land-Credit can soon furnish Scotland with as much Real Money, tho' not of Gold and Silver, yet equally usefull and profitable, as they now can, or at any time may, want, or know how to employ, and therefore 'tis now highly necessary for Scotland.
18. This Land Money or Land Credit, with prudent Trading, will soon furnish Scotland, with the Riches of the East and West Indies, as Gold, Silver, Jewels, Spice &c.
19. This Credit can augment both the growth of Land, and the Quantitie of Improved Manufactures to a much greater Value for Exportation, than is now possible, or [Page 21] at any time shall be, without Land-Credit, tho' Gold and Silver were multiplyed as much, as could reasonably be hoped for.
20 Such an Increase for Exportation may, in a well Regulated Trade, not only furnish this Nation with a greater plenty of Foraigne Wares for home Consumption, but also with a large overplus in Jewels, Plate &c,
21. More Money cannot be exported in Specie out of any Country, than is Imported, without great Damage: but, if by misfortune, any such necessity should happen. Land-Credit, being intended for local Money, can only make amends, by keeping such hands Employed, which must else be idle.
22. Land may well be Security, for what 'tis worth, above a present Incumbrance, and the necessary growing Charges, which therefore ought to be no Impediment, to a subsequent incumbrance, it within the value of the said Land; but be rectified by Law, especially for such Heritors, as are willing to engage their Estates for their own and the Publick Good.
23. If the benefit by Land-Credit exceeds the Charge, trouble, and Inconveneinces of putting it in Practice; all impediments of less Value ought to be removed; for Publick Good must be preferred before privat Advantages, even Laws and Customs, when deficient or inconsistent with a Publick Good, ought to be supplied, or Repealed, and not continued as the Laws of the Medes and Persians.
24. Supream Goverments ought to have, if they have not, a full power to make, what they judge safe and convenient to pass for Money. And Scotland lately exerted the same Power, in raising the Artificial Value of their [Page 22] Coin above the natural, tho' it proved no Advantage to the Country: how much better may they, when 'twill be no loss, but a great Benefite.
25. In matters of moment, no objection should be received, but such as the Ob [...]ector, is perswaded to be real, because neither time nor the Subject deserves to be trifled with▪ nor should any O [...]jection against Land Credit he admitted, which lyes as strong against Gold and Silver, till they by both first co [...]demned.
26. It may be time enough to doubt the validity of a Law for securing Land Funds to make Credit current, when the Laws become too weak to protect the Lives. Liberties, and properties of the Subject in general; And till then this usefull Good may be as well hazarded as the rest; since none can get by destroying it, and all must by preserving it.
27. The Constitution, prepared for the Management of Land-Credit, makes it, not only a knaves Interest to be honest, and none will then [...]e honester than he, if he is not a fool also; but puts it likewise out of his Power to play the Knave.
28. A bare en [...]ry in the publick Registers of Lands, setled for a fund o [...] Credit, with an Authentick Duplicat Signed by the Register, and delivered to the Office of Credit, ought to be a sufficient Legal Tye upon the said Lands, to answer the Credit Charged on them by Parliament.
29. When proofs are offered as full, as the nature of the subject can permitt, tho' not Ma [...]hematicall, 'tis fitt they should be received.
A few Arguments shall be here added to enforce the 4, 13 and 17 Positions, That Land Credit is the best of Credit. 2o. very Practicable, and 3o. now very necessary for Scotl [...]nd
1 BEcause all Credit Subsists either upon a reall or Imaginary Fund or Pawn, and every reall Pledge is better, than an Imaginary one, and of all real Pledges, Land is most secure, therefore the best Fund can b [...]st support the best Credit.
2. To prove the 2d no other demonstration is needfull, than the common use of a were Credit in all Trading Countries, and then certainly a better Credit must needs do as well.
3. To prove the 2d. may be offered, that this Country seems now more disposed to Tra [...]e, and better acquainted with the use and value of Credit, than formerly. That, when this Credit shall be secured by Parliament upon a known [...]und, [...]t becomes as truly Money as Gold and Silver, for all home uses certainly, the true design for Money, and must therefore force a larger Exportation of Manu [...]actures to answer the Nations forraign Occas ons: and lastly, that, being an Addition to this Kingdom's Stock of Money, which no other Credit can safely be it must necessarrly Employ all Heads and Hands: Improve all Arts; Increase Exportation and Consumption, both forraign and domestick, which must in avoidably make Scotland flourish and prosper more aboundantly, than it can without it.
These following Queres, way not be Impertinently added to the preceeding Positions.
Q. 1. Would a Million of God or more, lent Gratis to some few Heritors, willing to engage their Estates, [Page 24] for their own and the Publick Service, to repay it in one Hundred Years, by 10000 lib. a Year, be an Advantage, worth the Wisdom of this Nations incouragement; notwithstanding that the Sum, might be thought too great: that not all, but few, of the Heritors could partake of the immediat Benefit: That no part of the said Gold, should be exported, but only for repayment of the Annual Debt: that the Widows, Orphans, & others, should be in Danger of being put to their Shifts, how to dispose of their Money? And that there may be some difficulty in finding Persons, for Skill and Fidelity, fit to be trusted, with the Care and Management of the same?
2. Or would the loane of a like Sum, under like difficulties, for thirty Years, at only 5 per Cent. Interest, without being obliged ever to pay back the Principal: Or for 20 Years without Interest, among such Heritors, as would and could secure it by Land, deserve the Governments Encouragement. And should not all lesser Considerations give place to so great an Advantage?
3. Does not Credit, tho' but upon Publick Faith, or Private Reputation, supply, at least in all Trading Countries, the want of Money, by making Satisfactory Payments, even where there is already great Plenty of Money
4. Will not Credit upon Land serve those ends with more safety, than either of the aforesaid Credits.
5. Hath not Scotland Land enough very fitt, because of the Register, to be made a secure Fund for Credit.
6. May not Scotland find employment for a Million at least more, than they now have?
7. May not the Establishment by Parliament of a Land-Credit [Page 25] in this Kingdom bring the same or greater Advantage to it, than me loane of so much Gold?
8. Whilst Bullion is appointed the sole Material for Money, can there be as good Reasons offer'd, for it's exportation. as against it? Or did ever a Wise and considerate States-Man plead for it!
9. Does any Person now oppose this establishment, but such as are not fully inform'd, for want of leisure or Capacity: Or some few Money'd Men, who mistake their true Interest, since nothing can prove more advantageous to them
For a further Demonstration of the Nature, Ʋse, and safety of Land-Credit, a Comparison betwixt Money and the said Credit, with an Instance of the Circulation of both follow.
MOney is a common & secure Pledge, instituted to supply the Defects of Barter, & to be the measure, Medium, & Accompt of Trade; Whatever can answer these end sis duly qualified to be made Money by the Laws of any Nation.
Money must have these essential Qualities (viz.) 1. Value to make it a Securitie, in Exchange for all sorts of Goods. 2. Denomination, that the Value may be known. 3. Different Values, for convenience of smaller and greater payments. 4. Stamp of the Government, not to give, but to Attest, its Value, and to Authorize the currency of it; for, till Stampt, Silver is not Monie. 5. Durabilitie, to prevent loss by wearing out, or easily perishing 6. Portabilitie, for easie carriage.
The Bills of Credit or Land-Monie proposed will have [Page 26] all those Qualities of Money, equallie with Money of Gold and Silver in all Respects, and Superior in some.
As to Value: Money of Gold and Silver exceeds not i'ts Value by Weight at the most, and is very often short of it, either by too great an Alloy in Coinage, or by Washing, Filing, Clipping, Wearing, &c: Whereas every Bill of this Credit will be secured by Land of greater worth, than it's Coined for, and is not Subject to any Alloy, nor to have its Value diminished by any fraudulent Arts whatsoever. As to different Values, that s [...]all be setled, as shall be Judged most efficacious for the ends of Trade. Denomination, Stamp of the Government, Durability, And lastly Portability are equally provided for, as in Gold and Silver: indeed more, as to Portability, for 100. lib. in Credit will never equall an Ounce of Silver in Weight or Bulk
Money is not so convenient in these Respects, as this Credit (viz.)
For the Danger of Robberie in carrying and keeping: for daily use in large Payments: For the loss of time in telling and retelling: For the Danger of Clipt & Counterfeit Monie: For the Trouble of carrieing great Summs from House to House; for its being Subject to be Tranported to other Nations, and to be hoarded by Misers, who Fondlie doate upon the Metalls.
Monie is onlie a secure pledge of a known Value, that a Man shall be repayed to the full in some other Commoditie, for the Commodities he parts withall: and it serves, but to supply the intervals of time, between the selling of one Commoditie and the buying of another.
Now the proposed Credit can well supply that intervall, [Page 27] & is yet a more secure Pledge, than Money of Gold or Silvers; for 10000 lib. in Money is of no greater Value, than what it pretends, and is very often of a less: But 10000 lib. in this Credit will be secured by a much greater Value in Land.
The difference between the true Value of Land & Monie is evident, in that Monie is willingly turn'd into Land: but Land is not turn'd into Money, but through necessitie & constraint. All Men allow Land a sufficient and the best security for Money, what secures must then be more eligeable, than what is secured.
The Use. Validity, & safety, of this Credit is also confirm'd in little, by daily practice at play with Counters, where the Gamesters stake their Money as securitie in the Box, &, according to their stakes, receive so many Counters, which by agreement amongst themselves, are call'd either Pence, Shillings, or Pounds, according to the Value of their Stakes: Now so long as such Stakes are lodged in the Box, so long the Counters pass as currently amongst them, & all By standers, that knows the Stakes are in the Box, as the best Monie of like Value, tho' it were for Years or Ages, without the least fear or doubt of loss or Damage, because the Value is in the Box. Even so it ought and will be with Land-Credit, when setled by Parliament: For the Land is the Box, the Bents are the Stakes, and the Bills are the Counters: and so long, tho' never so long, as the Land Rents remain ingaged, and sufficient to make good the Bills, so long will the Bills continue as good and usefull, as the like Value in Monie, tho' for many Ages: because the Land-Rents are sufficient, and cannot escape making good the Bills to the full, at the time appointed, and in [Page 28] the mean time they serve the Nation by their currency as well, as so much Money.
In short, all Money are counters with an inherent value and Land Bills, of Credit are Counters with an adherent value: Land Bills of Credit is Land Money, coined out of Land virtually, as Silver-Money is actually out of Plate, and as good and secure, and more usefull, than Silver or Gold Money.
Bills of Credit made Current by Parliament are Petit Mortgages in respect of Security as safe, as Mortgages of 10000 lib. and, in respect of use, they are living pledges, as good as Money, answering the same ends with Money, by making as satisfactory Payments in all Trading parts; Therefore they Yeeld no Annual-Rent, as large Mortgages but may be let out for Annual rent as Money is, which great Mortgages might also do, by Act of Parliament, if their Greatness did not make them seldom usefull.
An Instance of the Circulation of Gold and of Credit.
A. settles his Land to pay 100 lib. in Gold at a certain Term of Years to B. he having received from B. before a like Summ in Gold.
C. settles his Land to pay 100 lib. in Bills of Credit at the same Term to the Office, having received from the Office before, a like Summ in Bills of Credit.
A. payes a Debt of 50 lib. in Gold to his Coach-Maker; the Coach-Maker payes the same to a Currier for Leather; the Currier payes the same to a Tanner; the Tanner payes the same to a Butcher for raw Hides; the Butcher to a Grasier for Cattle; The Grasier payes the same to a Farmer for Pasture; the Farmer pays, it to A. his Land Lord for Rent; and A. payes the same in Gold to B. from whom at fi [...]st he Bo [...]row'd it.
Not take the Payments as running in Bills of Credit.
C. payes a Debt of 50 lib. in Bills of Credit to his Coach-Maker; the Coach-Maker payes the same to a Currier for Leather; the Currier payes the same to a Tanner; the Tanner the same to the Butcher; the Butcher the same to the Grasier for Cattle; the Grasier payes them to a Farmer; the Farmer payes them to C. his Land-Lord and C. returns them in Payment to the Office, where at first he borrowed them.
Now by this Instance 'tis plain, that in the Circulation and course of dealing, all their occasions are answered, and none the worse for the Payments in Credit than in Gold; And the Office is no poorer in receiving back the Credit, nor B. any Richer in receiving back his Gold, than both were at the issueing of their severall Summs in Credit and Gold.
Some of the many Advantages, which necessaryly attend the establishment of Land-Credit, are as follow.
1. EVery Million of Land Credit, made current by Parliament, must yield at least a Million Benefit yearly to this Kingdom, during the whole Term of its Currency.
2. Credit, made current by Parliament, does ipso facto become Real Money, and must Work the same Effect and Advantage, as Gold or Silver Money; And therefore an Addition or increase of Land-Credit must unavoidably multiply Consumption, which makes a Trade, and, where that prospers, thither will Numbers of Labourers & Artificers flock, to encrease both wrought and unwrought [Page 30] Commodities, for home Service, and foraign Exportation: And, when more shall be exported, more Gold and Silver may be returned, if Trade be wisely managed.
4. Methods may be proposed, if wanted, to buy up all the Wool of the Kingdom at a middle Price, of what it had yielded any Year, this 20 Years, and to continue the Contract as long, as the establishment for Land-Credit shall be setled by Parliament, that so the exportation of unwrought Wool may be certainly prevented, without loss to the Wool-masters. As also for taking in Widows & Orphans Money at 5 per Cent. to be returned at 6 Months Warning any time after two Years. And lastly, to furnish al that want, with Bils of Exchange, Payable where their Occasions require, upon Payments made here in Bils of Land-Credit.
5. Plentie of Land-Credit will help Land-lords to their Rents, and Money'd-Men to their Interest, much easier, than is now possible with the present scarcity of Money.
6. It will enable the Heritors to cultivate their Lands to greater profit, and the Husband-Man to find a better market for all he can raise, tho' double, to what he now does.
7. It will be to Money'd-men, what a Rich Cully is to tooking Gamesters. For most of it in few Years must be Lodged in their Hands.
8. It may increase the Publick Revenues, and enable the Subject to pay cherefully greater Taxes, when necessary.
9. It wil mightily quicken Trade, to the great benefit of all Professions, and Employments.
[Page 31]10. It will discover new, and Work old, Mines; and by Increase of Manufactures enlarge exportations,
11. It only can effectally sett up the Fisherie, the Original of all the Dutch Wealth and power.
12. It will in time advance the Value of Lands in Rent and Purchase, and sink the Interest of Money so, as to force it into Trade, which by a new Constitution may be no less safe to the Owners, than their present Interest scured by Land, and much more easie, honest, and profitable; and to the Nation exceedingly more Beneficial.
13. It may make Rivers Navigable, Roades Passable, and such Houses and Towns Habitable, as are not so now.
14. It may employ the able Poor, and help better to maintain the Impotent, for both which, Proposals may be offer'd, when commanded, to put an End to the dreadful Cryes in the Streets, none of the least of God's Judgements on a Land.
16. It will immediately do all things more effectually, than the like Sum in Silver could. And as an industrious Merchant with a large Stock may sooner raise a mighty Estate, than another equally qualified, can possibly in the same time and place with a smal Stock, even so will a Nation thrive in proportion to the largeness of their Stock of current Credit, being the Proper Tooles of Trade, fastler than its possible for them to do with a smal Stock of Money, tho' their Industrie, Frugalitie, Skill, and Fortune were the same.
That Land-Credit may stand the fairer for Judgement, some supposed Disadvantages are Subjoyned.
THe Advantages in short are all the same, that a supply of so much Money, as this Kingdom may at any time have Occasion for, or know how to employ, would produce; and what Money can do, is too obvious to need an Explanation.
The disadvantages, which can but be supposed, there being really none likely; may be either the mischief of too much Money, which I confess I do not understand, Mismanagement, Tyranny, or Conquest.
To begin therefore with Mismanagement, that must be either by Counterfeit Bills; issueing Credit without a Fund; or by not cancelling the Credit at last, when the Land-Fund is to be discharged; for all which; there is as good a Provision at least made, as there is for any of the present Publick Trusts; And, if that will not serve to Recommend this it seems Reasonable, all the rest should be rectified, or Discharged.
As to Tyranny, there seems to be but one expedient, which is, that every one should now loose their Heads, lest hereafter Tyrant should arise, cruel enough to Order it.
As to conquest, there can be no great Danger; for Fools seldom become Conquerors, and the wise will never consent to put out both their own Eyes, that they may the better put out one of the Nations.
By this it may appear, the hazard is nothing, but of being Rich, and the Benefits are many.
Some are of Opinion, Scotland wants no such Assistance.
Then certainly it wants no money, which if the Individuals of the Nation were examined would scarce find a Suffrage among 10000. For the very necessities of this [Page 33] Country requires a great Summ; the conveniencies a much greater; but the Superfluities an infinite Summ.
If ever there should hereafter happen to be too much Money in any place, as never yet has happened, None will venture afterwards for Guinia or the Indies for Gold or Silver; And whenever it shall be found by experince, there is too much Land-Credit, none will raise more upon their Estates. But,
In proportion to the Credit or Money, that is Current, not dormant in the Chest or Plate, does all the World thrive.
Such Objections, as have occurred, are here endeavoured to be fully answered.
1. Obj. That an addition, of so great a Summ in current Credit, to the present Stock of Money in the Nation, will raise the price of all necessaries.
1. Answ. So world an addition of a like Value in Metall in Money, and Yet such an Offer would hardly be here rejected, and therefore it deserves no answer: but
2. It is granted, if the whole Summ were to be issue'd in a short time; but that is impracticable, and yet such care is taken, that the Bills can come forth but gradually so, as Sellers and Goods may Increase propostionably with the Buyers, as is evident in London, Paris, &c. where, tho' there is plenty both of Money and Credit, Yet most things are cheaper, than in Edinburgh, where there is greater Scarcity of both: But, if that were not to be avoided, the Proverb says, a Capon of half a Crown in London is cheaper than one for a Groat in York; because half a Crown is sooner gained in London, that Groat in York.
2. Obj. That, when this Credit shall be made current by Parliament, Tradesmen will not sell their Good, without [Page 34] at previous Contract to be payed in Silver, of else at extravagant Rates.
1. Answ. 'Tis very unlikely, that such, as now gladly sell for a dead Credit, will not then more readily sell for a living Credit.
2. This will however be impossible, if Parliaments have Authority to make them current, and power to Punish the Offenders severely: For none can lose, when all must take them.
3. It has not this effect in Amsterdam and other places, therefore such deserve the highest severities; because of the great injury they offer their Country and Country-men, without the least benefit to themselves.
3. Obj. This Land-Credit will be no immediat addition of Riches to this Kingdom.
Answ. 1. Nor would the Loane Gratis of a like Summ in Gold for as many Years; yet none will deny, but the use of so much so long must be no small advantage.
2. Coining the Plate in this Kingdom would make no addition of wealth to it, and yet few are so ignorant, as to deny it a means to make it Richer, than it now can, by lyeing dead to loss.
3. Money and Credit are the Tools and Instruments by which men are Inriched. A Joiners Tools adds little to his wealth: but yet without them he would sooner Starve, than thrive.
4. Obj. This will Impoverish the Rich, and inrich the Poor, that is, the Poor landed Creditor may be hereby enabled to pay off his Incumbrance; And the gripping Usurer be Impoverished, by the ceasing of his Annual-Rents, and by Paper Payments, instead of his hard Silver.
[Page 35]1. Answer No Rich Amsterdammer is ruined by the currency o [...] that Credit, and therefore 'tis as reasonable to say, it wil [...] make a man a Woman, and the contrary, for whatever enriches the Poor must unavoidably enrich the wealthy, because of their wealth. Friends, and oportunities: And, if the Parliament has any Power, which ought not to be questioned, the Bills of Credit will do all the same service, that th [...]ir hard Silver can be imagined to do.
5 Obj. this will Supersede the use of Money, and drive it out of the Nation.
Answ. Amssterdam Credit hath nor yet wrought this effect: but 'tis much more probable, it will keep and increase the Money; for nothing can carry it out of any Nation to its loss; but an over-balance of Importation and Forraigne Expense; And nothing can keep it but the increase of the growth of the Country and of Manufactures, with a well regulated Trade, to which this Credit will contribute very much: Nor is there any more danger, that Credit should Supersede the use, or expell the present stock of Money, than Guineas has Crowns, or Crowns Coppar Money: for the nature of Trade requires as well Copper for small Payments, as Guinias for greater.
6. Obj. This Proposal was rejected by the Parliament of England.
1. Answ. If it had? there might have been plausible Reasons for so doing in England, which may not be so here, as less necessity, the want of a Register, and the Lawyers fears, that it would in time introduce one to the prejudice of their Practice.
2. Tho it did not pass into a Law, it was reported to the House by the Committee to be both practicable and very [Page 36] Profitable to the Nation, as appears by the Votes Febry. 93 And it occasioned the passing about 15. Millions Sterling in Credit by Parliament, as Dr. Davenant Computes it.
But, because it had no other Fund, than the Publick Faith, it was not thought sufficient to impose it, and therefore they supplied that defect by an Interest, and made it transferable by Law, tho' not Current, which 15. Millions Credit, notwithstanding the Wealth of England, was so farr from being too much, that it was found much too little; as appears by publick Debts yet remaining
2. Some Governments have Rejected that in hast, which they have repented at leisure: Or which hath endangered the calling their Judgements in question. Columbus's offer of America, refused by several Princes, is an Instance of the first, And Englands not admitting a Register, tho' often moved in Parliament, is of the last.
7. Obj. There will, by the addition of this Credit, be a greater Stock current than can be employed.
1. Answ. When more Credit shall be extant, than can be employed, it will Naturally stop of it self, tho' if it should not, it may be then time enough to put a restraint upon the Increase.
2. No Nation hath ever yet been so Rich, as to refuse an addition of either money or good Credit: for occasions Increase as Riches, and in the most opulent Cityes there are not a few, who can employ more than they have both to their own and the publick emolument.
3. Above 5 Millions may be employed in Scotland more, than they have, only to augment locall Riches and conveniencies, besides what may be necessary for Forraign Exportations and home comsumption.
[Page 37]4. When all the Subject of Trade in Scotland is taken up, and all hands employed, there may not only be a stock and People in other Countries employed; But Unwrought Materials may be Imported, and Forraigne Artificers invited to Manufacture them in this Kingdom.
8. Obj. This offereth what is altogether new, and unheard of before,
1. Answ. He it granted; Yet, if it appears Practicable and Profitable, this ought to be no Objection.
2. All things were once New; and, if then Rejected for that reason, we might at this day have fully possest the naked enjoyment o Adam; & all known Inventions, which now serves our necessities, Conveniencies, and Pleasures, had been still reserved for a wiser posterities discovery.
3. There was a time, when Banks were new, and, if they had then waited for a precedent, they would have been still unknown. This here offered is a Nobler designe, and has less of difficulty to be apprehended, now Banks are known, than Banks had, when first contrived.
4. Here is nothing new, but the use and application, Mortgaging Land & passing Credit are of Ancient practice. Nor is the Sanction of Authority new, no Law having a force without it; All, that is new, is the joyning Land and Credit together by Act of Parliament, to make the Credit current. Or Coining Land virtually into Money, as Metalls are now actually Coined; it is only the application of an old known Subject, or material to a new use; And if the Reasons are as Plain and cogent for Coining Land, as they are for Bullion, will a wise Nation refuse it only for its novelty?
[Page 38]5. One Argument, often used against Novelties, is that none can forsee the dangerous Consequences, which may indeed be a good Caution against hasty Proceedings, and may advise a diligent inquiry into matters: but it can by no means be a general rule to reject new Proposals at all adventures, without entring into the merits of them
9. Obj. These Bills of Credit may in a little time be counterfeited.
1. Answ. If that were possible, the Damage would not be so great, as now happens by Counterfeit Money, and Yet the World continues as fond as formerly, because the advantages by the use of Money are greater, than the loss by counterfeits can be.
2. Every ordinary capacity will sooner learn to know a true Bill from a false, than they can good Money.
3. It will require a large Stock to Counterfeit these Bills, and diverse persons of different Trades to be in the Confederacy; and the severall necessaries to compleat a Bill will be so numerous, so bulky, and so notorious, that 'twill he impossible to be concealed; especially when 't will be the Interest of the Confederats, as well as of all others, by reason of the great rewards and severe Punishments, to make the discovery.
4. There will be publick Offices in all places of Trade and dealing, where the Bills may at any seasonable time be compared with their Counter parts gratis, to prevent any persons being deceived by them; So that what will be almost, if not altogether, Impossible to be imitated, and hard to be putt off without imediat discovery, may well discourage, even undaunted men in their Wits, to attempt; besides every Bill, having a Particular distinction, [Page 39] may be easily traced, by entring in the Books of Accompts their particular marks.
10. Obj. This Act may be repeled.
1. Answ. It can never need nor deserve it, and, being every mans concerne, 't will be very unlikely; for htat would destroy the reputation of former Acts, and the Possibility of passing more to any purpose.
2. If it must be supposed? The Nation will be the better for the time it continued; Nor will any then loose by it; for the Land must be obliged in a Year or two to repurchase the Credit, Charged upon them Respectivly, So that, tho' the Heritors may be disappointed of an advantage, neither they, the receivers, nor Possessors, can suffer any loss.
11. Obj. More Bills may be issued, than funds secured in Land.
1. Answ. If any thing is improbable, this must, because there [...]re not only many Checqs in the Office; but 'tis also in every private mans power, that pleases with a small charge & pains to discover it; for the whole management and transactions will be plain, fair, regular, and Publick, and accounts of the Lands engaged, and the Bills issued, will be constantly Printed.
12. Obj. This undertaking may miscarry.
1. Answ. Such an Objection, if not well proved, would hinder the admission of all good Proposals; for all, that is possible, is not always probable.
2. When once past by Parliament, 't will be almost impossible to miscarry; for that gives it Authority and currency; the Land gives it Credit and Stock, And, as for Skill in Trade, and wayes for employing the Stock, the Author, if none else, knows where to Provide.
[Page 40]13. Obj. This Land-Credit may be Suspected to interfere with, or Prejudice the present Money-Bank established by Parliament.
1. Answ. If it appear to be a greater good, it ought to be encouraged, tho' it should; But this Office will be truly a Mint, and no Bank, for it coines Land into Money, as the Mint does Plate, and neither Lends upon Real nor Personal Securities, as the Bank does; Nor will it keep any mans Books or Cash as Banks usually do. But,
2. It must rather Increase, than Diminish the Advantage of the Bank; for, without an unfortunate neglect, and imprudence in the Regulation of Trade, there must follow a vast increase of Gold and Silver, which will necessarily fall into ther hands and add to their profit.
14. Obj. This Credit will not pass beyond Sea.
1. Answ. It is farr from impossible, nay highly probable, it may; but it is neither fitt, nor necessa [...]y, Example, Policy, Interest, and Reason makes it unfit; And a Regulated Trade will prevent a necessity.
15. Obj. Money is Universall Riches, But Land-Credit is not, Therefore unfit for a measure of Trade.
1. Answ. Money is farr from Universall Riches, tho' Gold and Silver are generaly esteemed but not by much fo generally as Land, and when made Money will be every whit as usefull and desireable, as Money of those Metals.
2. Tho' Credit is no measure of Trade by Publick sanction, Yet 'tis every where practiced as such in defect of the other; for there is scarce a Country in the World without lending or borrowing, which is Credit, either upon the opinion of the Person or a Pawn; but Land is universal Riches, valued in all places, as well where there is Money as where there is none.
[Page 41]16. Obj. That Credit of Banks is only Current; because Men may draw out their Money at pleasure.
Answ. 1. It is the supposed Securitie and convenience, which gives Reputation to the Bank-Credit; and only necessitie for smaller payments than are past in Bank, & for such persons or places, where Credit is unknown, or unusefull, that compels any to change Credit into Money: for, Many, if not most payments, are daily made here, without seeing or touching Money at the Bank, and all payments are made at Amsterdam without it, which plainly demonstrates a possibilitie of payments, without ever changing at Banks, and when Credit shall be made current by Parliament, and fitted for smaller payments, the necessitie of changing will be totally removed.
17. Obj. This Credit ought not to be imposed by Parliament, but left to choice, as the Credit of other Banks is.
Answ. 1. This Credit ought to be imposed, because 'tis certain, and safe; and because, by being imposed, it becomes an Addition of so much Real Money to the Nations Stock, which is the great Advantage intended, and wanted.
2. Since common Bank-Credit is chosen, tho' not imposed, before Money, 'tis plain, it must answer the end and Use of Money, better than Money, or 't would never be chosen, therefore a more secure & convenient Land-Credit may with much more Reason and Prudence be imposed.
3, The very same Reasons and Motives, which have hitherto prevail'd upon all Governments to impose Gold or Silver Money, will justify the imposing this Credit: [Page 42] besides the present Occasion this Countrey has for some such supply.
4. But the Credit of Money-Banks ought to be lest to choice and not imposed; because, as above alledged, it is more Subject to deceit or force, and can never be so secure as upon Land, and may prove a loss upon the People, when Land-Credit cannot. And yet, at Amsterdam and other Banks, Credit is partly imposed, because all foraign Bils of Exchange are obliged to be payed in the Banks, and custome and convenience makes it always by Transfer in Credit: moreover 'tis but Reasonable, Money-Credit should be Exchanged for Money, when demanded at the Bank, because there is no other proof, that they have a Fund, for which uncertainty it is unfit to be imposed, and therefore cannot serve all Occasions, nor smal payments: So that p [...]rsons otherwise unwilling, are constrained sometimes, to demand their Money from the Banks, except at Amst [...]rdam, where the Credit hath such a Reputation, that it yields upon the Exchange in Money 2, or 3 per Cent. sometimes above the Par; so that 't would be a loss to draw it out of the Bank, and is therefore never practised, except upon approaching Dangers.
18. Obj. This Land Credit will not so readily pass in Payments; because the Office does not undertake to change it at any time into Money.
1. Answ. When Land Credit shall be made current by Law, there can be no more need of such a provision, than there is for the Mint to keep Silver enough always to change the Gold Coined there.
2. Credit will be then so safe, usefull and convenient, that every person will be more ready to change it in Money; [Page 43] than they are now at Amsterdam, and other places where there are Banks; so there can be no need of such a provision.
3. None now changes Bills but such as are jealous of the Security, or have occasions for small Payments, or for Persons and Places, where Credit is unknown and useless; when therefore the Credit shall be secured by Land, made current by Parliament, and fitted for small occasions, both the jealousy and necessity for changing Bills into Money at the Office, will be quite removed.
4. But the Cheif Reason, since there can be no necessity, why the Office should not be obliged to exchange Money for their Bills, is, because they must either deprive the Nation of the great benefite, intended to Increase the Stock of Money, by keeping in the Office as much Money, as they have Credit abroad; Or els run the Hazard of being undone by Malicious and capricious Peoples demanding their Money in Specie by surprise, which would Change the Designe from a Land O [...]ce into a Money Bank, and only exchange the use of Money for the use of Credit without other advantage.
19 Obj. If the Government should raise the present Money to double the Value, upon Publick Faith, it might be as safe and usefull to the Nation, as Land-Credit.
Answ. 1. This may well be denied, for 'tis as much as to say, that Credit upon publick faith only, can secure the Nation from loss by it, as well as Credit upon private Estates in Land, which I suppose few will assert, & [...]ewer trust.
[Page 44]2. Had Governments always maintained their reputation unspotted, as when the Proverb was verified, as sure as Checq, this might have been proposed: But that hath been for some time out of Fashion.
3. A private persons Estate in Land was, is, and ever will be, the best of Funds or pawns for securitie and duration, tho' any pawn is safer, than either Honour, Reputation, or even publick Faith.
20. Obj. That no person must be hinderd from calling in his Money at pleasure,
Answ. 1. No Mans private Advantage ought to obstruct a publick Good, especiallie when he can suffer no other loss by it, than of a cross Humour, or knavish design.
2. A Proviso in an Act may easily reconcile such an inconsistencie: either by continueing the Debt sufficientlie secured, after the Office shall be indemnified: Or by disposing of the Estate at a Years Value less, whereby the Burden charged upon the Estate to the Office might be secured at the end of the Term.
21. Obj. That the persons, entrusted with the Management, may, thro' carelesness or unfaithfulness, discharge the Land at the end of the Term, without satisfieing the Credit raised upon it.
Answ. 1. The Benefit by this Office will so farr transcend the suspected damage by unfaithful Management, that in prudence it ought to be hazarded: For this will be the only Life and Spring to set all things else at Work.
2. This may be as faithfully discharged, as other great Trusts now are, as the Chancerie, Courts of Judicature, the Treasurie, the Mint, & the like, lodged in the Hands of persons, chosen by the King, or, may be, appointed by Parliament.
[Page 45]3. Great and severe Penalties may be Enacted to deterr them.
4. By the Establishment, such Provision is made, that, tho' all the persons, entrusted, were neither wise nor honest; 'twill be impossible to behave themselves deceitfully.
23. Obj. Such proposals coming from a Stranger may be justly suspected.
Answ. 1. Not in the least, when there is no trust, nor other Reward, but what must arise out of his own Industry. But let it be suspected, provided it be fairly & wisely examined, and no doubt but 't will appear plainly, that this Stranger has offer'd no contemptible advantage to this Kingdom, as well as to the Heritors, unless a Strangers service be here accounted a Crime, contrary to the practice of the King of France, who, knowing very well the advantageous consequences of his Generositie, usually rewards Strangers, as well as his own Subjects, for any new or beneficial Invention, farr beyond their expectations.
'Tis tedious and unpleasant to be bound to answer Objections, that are neither pertinent nor probable.
A Calculation, by which may be guest, what Sum may conveniently serve the Occasions of this Kingdom.
SUppose there may be in Scotland two Millions of Soules, & that their Yearly Expence may amount to 8 Millions, at 4 lib. Sterling per Head, one with another.
Suppose also, that the Yearly Rent of the Land Estates may yield one Million, and that all the readie Money may be half a Million, then must one of the 8 Millions be defray'd [Page 46] by the Rents, and the remaining seven by Industry, Labour, and Trade.
Amongst the Labourers, with respect to this computation, may be reckoned all, that receive no more than their Profit, but live on Rents, Usury, or Salary, as Ministers of State, Noble Men & Gentle-Men, all Divines, Physitians, Lawyers, Shoolmasters, Journey-men, Soldiers, Sea-men, Labourers, and the like.
Amongst Traders, all may be numbred, that receives the return of their Stock, together with their Profit, which generally is the least part of their receipts, as Merchants, Shop-keepers, Artificers, Countrey Farmers, & the like, that make use of Stocks.
Suppose half the ready Money being 250000 lib. circulate among the first sort, and that their Expence comes to 4 Millions per Annum. And suppose the remaining 250000 lib. is employ'd among the last, and that they expend the other 4 Millions per Annum. To discharge the Expenses of one Year of the first sort, the 250000 lib. must circulate 16 times, which makes 4 Millions: But the same Sum must circulate very many more times among the Traders; because they must not only measure their profit of 4 Millions, but their Stock also every return, which may exceed 2, or 300 times a Year viz.
When Traders make but 5 per Cent. profit of their Money every, return, the 250000 lib. must circulate at least 320 times, to measure their Stock as often, which amounts to 80 Millions in a Year.
If they make 10 percent. then 250000 lib. must circulate 160 times, and measure but 40 Millions.
If they gain 20 per Cent. each return, 250000 lib must circulate 80 times, and measure but 20 Millions in a Year.
For example, if a Trader gaines 100 lib. per Annum. profit, with 100 lib. Stock, and makes 5 per Cent. each return, his Stock must be turned 20 times a Year, & pay 2000 lib. If he gaines 10 per Cent. then he returns his Stock but 10 times, and payes 1000 lib And if he he gaines 20 per Cent. then 5 returns, & 500 lib. payed produces the same 100 lib profit a Year.
Note, That what is not actually measured with Money in Specie, must be discounted with some sort of Credit or other.
BY this Calculation, half a Million ready Money, discharges at least 16 times its own Value in a Year, and may circulate above 3 [...]0 times, & measure in Goods above 80 Millions, for no more than 4 Millions Annual profit. So that a Million in current Credit added to the Stock of Money must at least produce a Million profit to the Nation Yearly more than is now gain'd.
After these Papers had been finished for the Press, and approved by some of the greatest men in the Kingdome, there appeared a Printed Proposall to supply the defect of Money, and to relieve the Poor, by an Anonymus Author, I. A. And because he has borrowed much from my Papers, and yet seems not fully informed of the method of my Proposals, tho' he is pleased to make a kind mention of me; I think it not a miss to bestow a few lines upon his Paper to Rectifie his mistake of mine, & also to shew what he hath borrowed from mine, and that [Page 48] what he has not borrowed interferes with the established Bank, or else is so far from improving the Designe of a current Credit, that it much impairs aha endangers it.
For, I belive I may safely appeal to the World whither all former Banks did not pass their Credit by an accompt in Books, and not by Bills? And whither any other Fund but Money was ever setled for the passing of Credit? And whether ever the Credit and the Fund was proposed to be discharged or cancelled by an Annual income, before I published and practised the same in London? Or lastly, whither Publick Credit of any sort was ever offered to the Parliament in this Kingdom before mine, in the Year 93.
Now this Author proposes a Fund partly of Money, and so farr he incroaches on the present Bank, and partly upon some other Fund, besides Money to be exhausted by a Yearly Interest, and so far he borrows from me: but his Funds are divers, uncertain, and perplext; mine certain and easy; his much upon personal security and Money; mine upon Land a Real security: His to serve the Merchants and Mechanicks, Subservient to the Lords of the Soil; and mine the Heritors the true Lords of the soil, by whom the rest live and who in all Countryes are naturaly first to be provided for; He proposes the cancelling or exhausting the Credit by a Yearly Revenue; and so does my first and second Proposal: He proposes the passing Credit by Bills, and so does mine; But, He proposes to support and answer all his Bills with ready Money, which mine does not; because 'tis impossible, where the Service of the Country is Intended and where that Fund is so well known to be short of the Credit, for if the tenth man only would call for his Money, in less than a Year, the whole species would be [Page 49] drawn out, but if that a Mobb, a Plague, a Fire, a War, a Conquest, or Revolution should happen, it cannot avoid an Immediat Ruine.
He is pleased to call his Proposal A National Bank which can no more deserve that Epithite or title, than the present Bank, my proposed Office, or any the like, unless the credit or the profits were distributed in proportion to every individual in the Nation, for otherwise all doe, or may, equally serve the whole Nation, tho' each Family may not have a property in it; He tenders his at 1 per Cent. cheaper than my second, which may spoil his whole design for I have both thro'ly considered the Charge and Contingences, to which such an undertaking may be subjected, and also the imploying Money in the service, and have Rejected both as dangerous and inconvenient; but Yet my first and and last are so Calculated as to make them a far easier Bargain than his.
He reflects on the Joint Stock Proposed by me, as not deserving much Credit, since the Misfortunes and Mismanagement of the African Company, without first knowing, what provision was made to render my Stock as certain and safe as Land-Secu [...]ity, and forgets that most of the Security proposed by him is upon jo [...]nt Stocks. He also Pittys the condition of such Heirs, whose Estates shall be settled in the Office I propound, being likewise Ignorant what expedients may be offered to make them not uneasy, but at the same time he does not consider, that the Heirs of Persons to be concerned in his Proposal are in no letter State, if not in a worse.
He plainly mistakes, when he affirms my Credit to be built upon publick Faith, whereas private Gentlemens [Page 50] Land-Estates, more than sufficient to di [...]arge the whose Credit raised, is only propounded by [...] but 3 [...] of [...]our of his may be searcht for where it can be found [...] only supported upon private Faith, as uncertain as publick Faith, and the Remainder on Money, a slippery Commodity.
In short, the proceedings in his Proposal are sedious & perplext; mine easie and familiar: His cannot exceed [...] tions Stock of Money without hazard of ruine, min [...] [...] be extended as large as the Value of the Lands, the exigencies or Occasions of the Nation, may require; His diverts a great part of the ready Money out of the usual Channel of Trade and Husbandry: mine leaves the whole to operate as formerly, and as the owners please; His interferes manifestly with the present Bank, being truly a Money Bank with a new Title Page; mine differs in name, nature and Management.
But if he has invented a better and more usefull Form or Method for Bills, than is already known, he may deserve a generous Reward, but that cannot entitle him justly to supplant me in my Right, as the first Proposer of passing a Current Credit in this Kingdom upon any Fund.
There are some other Proposals as I am inform'd made about Land-Credit, but however they may vary from mine in Circumstantials, I cannot but look upon them as so many Advocats for me, because all the Arguments alledged in the behalf of theirs, must equally Recommend mine; So that I submit mine to the Wisdom and Justice of the Nation to determine, whether the first or any latter Proposer deserves best their Favour and Encouragement.