A PROPOSAL By Dr. Hugh Chamberlain in Essex-Street, FOR A BANK of Secure Current Credit To be Founded upon LAND. In order to the General Good of Landed Men. To the Great Increase of the Value of Land, and the no less Benefit and Augmentation of Trade and Commerce.
INTRODUCTION.
THE great Scarcity of Money, and danger of receiving bad, together with the uncertain Rates of Guineas, makes People willing to receive their Debts in Bank-Bills, or Goldsmith's Notes, rather than in Money in Specie; by which means Credit, securely Founded, may be easily brought into use: This hath encouraged several to propose the Establishing of Banks, the Notion of which, having met with so general Approbation, it is hoped that Dr. Chamberlain's Proposals shall not fail of good Encouragement; especially since he was the First Promoter of Banks upon Annual Incomes, to his great Expence of Money, Time and Pains; besides his Proposals offer Greater Advantages, both to the Nation in general, and Subscribers in particular, than any others whatsoever; and the Fund (by him proposed) is in all respects the Best and Safest: And, tho' all the Banks that are now Erecting, should flourish together, yet the Nation may, nay must, thrive the better; and indeed it will be a certain and effectual means to lower the Interest of Money, and bring the Usurers and Money'd Men to more conscionable Terms, and yet without damage to thesmelves, as it may be ordered. Thus may things be managed to the mutual Benefit, both of those whose Fortunes lye in Land, and those who have theirs in Money: Whereas at present, tho' the Landed-Man be never so willing to sell his Estate to pay his Debts, yet because he cannot get the Money, the merciless Money'd Man takes the Advantage of him, seizeth his Estate, imprisoneth his Person, fore-closeth the Equity of Redemption, and leaves the miserable Landed-Man's Family to starve, and many Traders to suffer Loss, to whom he was indebted: And what, except killing the Man, can our Enemies the French do more? This Proposal of Credit on Land, can only heal the aforesaid Evils, and fully Answer all our present Necessities; there being now no other known way left that can do. For the present Royal Bank refuses to supply Mortgagers, tho' they offer'd it in their Advertisements; and yet at the same time endeavour to engross all the Money in the Nation to themselves; which makes the other Money'd Men to put the more extravagant value on what they have; and this looks as if they had all combined together to undermine the Landed-Men, and seiz their Estates; and that this is carrying on, may be proved by there being at this instant near Two hundred Suits at Law for fore-closing the Equity of Redemption. It is the Interest of Landed-Men therefore, and the only Remedy left, nay it is absolutely necessary for the better support of their Families, and the preservation of the Value of their Lands, to agree together, and in their Defence to run Counter to the Designs of all unfair Dealers in Money, and to shake off their Slavery by engaging their Lands to make good all Bills and Tickets of Credit that shall be given out thereupon; and this will make Lands perform the Use of Money, as well as Gold and Silver when Coined. All Shopkeepers, and others whatsoever; may more safely take them in payment, than the present Royal Bank, or Goldsmith's Notes; these having no other Fund to make them good but their bare Reputation, which is nothing at all; for if they Break, it is lost; if Dye, it is an hazard; but the Land is [Page 2]the best and certainest Security the World can give: And by this Means the Interest of Money will be lower'd, the Landed-Man saved from Ruine, and Enabled to pay his Debts, and spend more f [...]e [...]ly, to the great Encouragement of Trade: For as the Case now stands, all our Land and Staple Commodities dance Attendance on Money, made of a Foreign Commodity, and of which we can therefore have no certainty; for that the Industry, Cunning, or Caprice of Foreign Princes and Merehants may not only debar its Entrance, but draw away what we are already possess'd of, which makes Landed-Men pay 8 l. or 10 l. per Cent. for all Moneys and Foreign Commodities, as Silk, Linnen, and Spices; Whereas the Merchant gives but 3 l. or 4 l. per Cent. for Land and its Product, as Wool, Corn, &c. So that by degrees the Landed-Men are eaten out of their Estates, for want of having the Ballance kept even between Interest of Money, and Rents of Land. But when once our Land shall be thus by Bills or Tickets of Credit, turn'd into the Nature of Money, it may wait on Commodities, and serve all our Occasions full as well as Money. Land-Banks have this Prerogative over all other Banks, viz. We are sure none but English shall have the immediate benefit of them, without any disobliging Exclusive Clauses. And whereas we can have no Certainty that the Royal Bank of England doth not belong intirely to Foreigners; 'tis sure a good part of it doth. Further, The Fund of Land can never be imbezled, nor transported; but 'tis possible all the Fund of Money'd Banks may be drawn out to Holland, France, or Constantinople, and nothing left to England, but an Hinc illae Lachrymae.
The Methods and Practices of Banks have fully discovered the Advantages and Benefits of the use of Credit, so that all which is now necessary to be insisted upon, is to recommend This to the Favour of the Nation, by shewing wherein it excells all the rest; and that it is safe, and therefore best, for all Persons to accept the Bills hence issued, tho upon an hundred years Rent, because there is no difference in the use of those to the Dealers in them, from such as are issued upon ten years.
For which Reasons therefore, and the following, the Doctor's Land-Bank ought to have the Preference. Because,
- 1. There are more Landed-Men in the Nation than Money'd-Men.
- 2. There is a greater Value of Land than there is of Money.
- 3. There is no Money but what is the Product of this Land.
- 4. The Landed-Men have chiefly contributed to the Support of this War.
- 5. The Landed-Men are the most that want Money, and the least esteem'd and consider'd.
- 6. The Land doth yearly yield its increase, for our Support, but Commodities perish in their use.
- 7. The Land remains a sure Fund, when Money or Commodities are carried away, or worn out.
We will now shew wherein This Excells all the rest. And,
- 1. Because whatever Money you deposit, you may have Bills, or Tickets of Credit, with Interest at [...] per Cent. per diem for the same.
- 2. It furnisheth Landed-Men with double the Value of their Estates in Credit, which will not only enable them to pay off all their Debts and Mortgages, and clear their Titles, but likewise to purchase much more, or to improve the same by building or otherwise: Whereas no other Bank will supply them with the full value of their Estate.
- 3. It affords likewise a Stock to manage in Trade, which at Ten per Cent. does not only pay the Annuity, but gives twice as much clear gain; by which returns the Subscribers can the better make good the Bills.
- 4. It will enable the Society to erect, and carry on, the so much desired Fishing Trade, or any other necessary Undertaking that the Subscribers shall think fit.
- 5. It will lower the Interest of Money, more than any other Bank, and more Effectually than by the Restraint of Laws.
The next is, that it's as safe to accept Bills secured by one Hundred Years Rent, as those by Ten, or on demand, and no difference to the Dealers in them for first.
1. No Bank can find Money for all their Credit, if call'd in at once; If there be but a Fund to make it good sometime or other 'tis sufficient, and more than in any of the present Banks besides this; therefore this Bank of Land can no more be dislik'd for that reason than any other; and 'tis very unreasonable to require, his Bank should discharge all at once, which is not expected from others. And these Bills may as well pass in the mean time as any other; for most of the Credit of the Banks abroad hath pass'd above one Hundred Years, without drawing out any Money, and most of our Lands have yielded Rent very much longer: These joyned make this Bank; for One Hundred Years Rent paid can fully satisfy One Hundred Years Credit of like value.
2. The sole end of giving out Bills is to supply the Money not now to be had in England: If then an Estate be Mortgag'd for One Hundred Years purchase, and Bills given out thereupon, [Page 3]and if all be return'd at Ten Years end, and then the same, or another Estate be Mortgaged for Ten Years more, and so on to One Hundred or One Thousand Years, still the Bills are passing in the Nation as Money, and are the same in Effect. Now in the Doctor's you have above double your Estate in Bills presently, as Estates are now valued, which is the encouragement, and makes you amends for tying your Estate so long as One Hundred Years: In the other Bank you can have but two Thirds of the present value of your Estate, which does but just ease you for the presen [...], by paying off the Mortgages, but still leaves you as much in debt to the Bank, tho' with small [...] Interest. And as you pay the Bills away, it answers your ends; for after your wants are supplyed, what matter is it it to you, whether that Bill you have payd away be cancell'd Ten Years or one Hundred Years hence? And it is all one to the Dealers, when they know it is well secur'd at last, and can Trade with them the while, and that the Number of these Bills will be limitted to the Fund, being under a severe check by the Directors, and will all be certainly bought up, so that the Nation will not loose. Whereas, the Bills of the other Banks are not limitted, but may abundantly exceed their Fund: And therein lies the secre [...] gain to themselves, but apparent danger of loss hereafter to the Nation.
3. There will be a great Number of Subscribers engaged, whose Lands lye scattered in all parts of England, and these will agree to receive the said Bills in all payments of Rents, and Fines from their Tenants, and all other Persons they Deal with; and likewise will purchase Comodities of all such Tradesmen and Merchants, that will accept them, before any other.
4. There will be a great Number of Traders and Merchants, who will find it their Interest by engaging so many Subscribers to be their Customers, to take these Bills and Tickets for their Goods, so that all may be Supply'd by them, with what Necessarys they shall want, as well as for ready Money; which will save the trouble of telling, as well as fear of taking bad Money.
5. There will be a great Summ of ready Money deposited in the Bank to exchange (if there be occasion) Tickets, or Bills; so that no Person need scruple to take them, when he can turn them into Money as any time: And this will be a means to prevent long Accounts, and all the inconveniences of Law-suits that usually attend them; and a sufficient Encouragement for the Trader to take the Bills or Tickets, and discharge the Gentleman or Debtor: His business being afterwards only with the Bank, which is well secured by the Fund of Land that is tyed to make all good, which it effectually does by the annual payment into the Bank where they are cancel'd: I hope here is enough said of the following Proposal, to encourage Landed Men to Subscribe, and to promote the general Currency of the Bills, to th [...] perfecting of this great and good Undertaking.
It is Proposed by Dr. Hugh Chamberlain,
That every Freeholder, who will, for a General, so well as for his own Private Good, subscribe One hundred and fifty Pound per Annum, for One hundred and fifty Years, (unless sooner Discharged) to secure the Payment of One hundred, Pound per Annum, only for One hundred Years (the first Rent not Commencing till two or three Years after the Subscription) and will further Exchange One Thousand Pound in Gold or Silver, current Money of this Kingdom, into this Societies Bills, payable on Demand, at the several Times, and in such Proportions as is hereafter mentioned: That is to say,
- 400 l. down, Shall Receive 1000 l. At the same respective Times in the said Bills, or Current Credit.
- 300 l. at a years end, Shall Receive 1100 l. At the same respective Times in the said Bills, or Current Credit.
- 200 l. at two years end, Shall Receive 1200 l. At the same respective Times in the said Bills, or Current Credit.
- 100 l. at three years end, Shall Receive 1300 l. At the same respective Times in the said Bills, or Current Credit.
- And 1400 l. more in the same Credit, at Four years end, from the time of the First Payment.
And he shall have also 3000 l. viz. The Thousand Pound he paid in Money, and Two Thousand Pound in like current Credit, paid into a Joynt Stock of Trade for his own particular Advantage, to be managed by Persons chosen by the Subscribers; which Stock shall not be Alienable, nor Transferable, but together with his said Estate, and will (if it should yield but Five per Cent. per Annum, tho' much more may [Page 4]reasonably be expected) not only pay the Rent Reserved, but also make good Defective Titles, put Money yearly into his Purse; and, being added to the Five Thousand Pound advanced to him in manner aforesaid, will be a very large clear Gain; and all this for nothing in effect, more than a Collateral Security of One hundred and fifty Pounds per Annum in Lands. And the like Manner and Proportion will be observed for any greater or lesser Yearly Payment subscribed.
And, for preventing all manner of Loss and Hazard to the Subscribers, both Freeholders and Traders, Trustees shall be appointed at first, to whom the Estates shall be Convey'd; and also Directors (with good Salaries, and without Interest in the Profit) shall be Elected to take Care, that no Credit be issued without a sufficient Fund first setled, or Money equivalent thereto paid in.
For a plainer Illustration of this Proposal, observe, That every Freeholder, subscribing One hundred and fifty Pound per Annum, as above, hath Eight Thousand Pound lent him in the whole, at the yearly Interest of a quarter, or Five Shillings per Hundred Pounds; which being Twenty Pounds per Annum for Eight Thousand Pounds, and computed for One hundred years, makes Two thousand Pounds; and being added to the Eight thousand Pounds, makes together in the whole Ten thousand Pounds, and no more. Now, because Ten thousand Pound is too great a Sum to be left to one Payment at the last, or to be made good by the subscribed Security in less than the whole Term; therefore, as well for mutual Convenience, as preventing all hazards, the whole Sum is to be repaid by One hundred equal Annual Payments of One hundred Pound each; which, considering the Sum advanced, the easie Payments, and the low Interest, is of a far greater Advantage to the Subscriber than any thing of this kind was ever yet proposed, or can be by any other Methods effected; and yet here the Credit is secured by a much better Constitution, as well as a surer Fund, & more ready Money in proportion is here reserved to circulate the Bills, than in any other Bank or Fund of Credit whatever in the known World. So that from the Premises, may follow this strong natural Conclusion, That 'tis highly the Interest of the Nation, especially of the subscribing Freeholders and Tradesmen, to endeavour industriously to promote the Universal Currency and Credit of these Bills; and the rather, because 'tis morally, as well as naturally impossible, any Person can suffer Loss hereby, tho' very probable all may be great Gainers; for if all receive them, none can lose by them; and when 'tis found that none can lose by them, all will receive them.
If any Landed Man, that doth approve of this Proposal, should refuse to subscribe for want of ready Money, as is herein required; for his Satisfaction, there may be another Expedient found out to help him, that is not necessary to be mention'd here.
If it were necessary, it might be here taken Notice, That this Proposal was Approved by one Committee of Parliament, and Reported to be Practicable, and Profitable to the Nation, by another. And it is now Resolved to begin to put the same in Practice, as soon as 50000 l. per Annum shall be subscribed, of which a good part is already, and the Remainder daily filling up.
For a Demonstration that nothing is hereby intended but what is Just and Fair, and that no Man can run any hazard by subscribing Lands, or receiving any of these Bills or Tickets of Credit; It is further proposed. That if, upon a years Tryal, this Bank or Office shall be found Unsuccessful, which seems very unlikely, if not impossible, Then all the Subscribers, being obliged by Covenant to return the whole Credit at first received, shall have their Money again, and their Lands Released.