HAVING lately presented your Honours with An Essay on Coin and Credit, the chief Design whereof was to shew the Ne­cessity of Setling a well-ground­ed Credit in this Nation, for Support of the Government and carrying on its Trade; I do now with all Humility lay before you Proposals to answer that end, which I have not clogg'd with Compulsion to the Subject, supposing nothing of this Nature can be good, where a Common Consent, grounded on In­terest, doth not make it valuable.

[Page 2] BANKS, as I humbly conceive, ought chiefly to be Calculated for the Use of Trade, and modeled so as may best content the Tra­ders. What gives them Satisfaction will an­swer all other Occasions of the Kingdom. Money passes through the Hands of the No­bility and Gentry, only as Water doth through Conduit-Pipes into the Cistern, but Centers in the Hands of Traders, where it Circulates, and may be said to be used; and among these, Ease, Profit, and Security, are Arguments strong ennough to keep a Bank always full; Besides, when the Streights of the Govern­ment are taken off, greater Sums will come into Trade, which are now drawn out in or­der to make Advantages above what the Pro­fits of Trade will bring in.

The Heads whereon I propose to build this National Credit, are these which follow:

That a Bank be Erected on the Credit of the Parliament, the Profit or Loss thereof to redound to the Nation, whose chief Cham­ber shall be setled in London, but lesser Cham­bers in other Places of this Kingdom, at such Distances as may best Answer the Occasions of the Country; which Chambers to account with that of London, and that to Commissi­oners appointed by Parliament.

[Page 3] That this Bank shall take in what running Cash shall be offered, and shall give their Notes for it; and shall also allow Interest af­ter the Rate of [...] ⟨3½⟩ per Cent. per An­num after the first [...] ⟨14⟩ days till those Notes be paid, and shall also pay it again to the Proprietors, or any part thereof, when de­manded.

That if any Man puts in his Money for a time certain, not less then [...] ⟨6⟩ Months, he shall receive Interest from the time of paying it in, to the time he is repaid.

That this Bank shall let out any Sum again on reasonable Security, either Real, Personal, or Goods, receiving Interest after the Rate of [...] ⟨4½⟩ per Cent. per Annum, till the Borrower shall think fit to pay it in, which he shall do by such Parts as will best suit his Occasions, and be discharged from the Interest of what he so pays, and only pay af­ter the Rate aforesaid for so much as doth re­main in his hands.

That if any one desires to take up Money on such Security for a time certain, not less then six Months, he shall have it after the Rate of [...] ⟨4⟩ per Cent. Interest per Annum.

That Lombards be Erected to attend this Bank for the benefit of Traders, under Regu­lations which may encourage Trade.

[Page 4] That for the benefit of Returns, the Notes given in any one Chamber of this Bank shall be demandable in any other, together with the Interest due till payment, the Receiver al­lowing for such Returns after the Rate of [...] ⟨5s.⟩ for each Hundred pounds in the Chamber where he receives his Mo­ney.

That to prevent Counterfeits, all Notes given out at any Chamber, shall be made pay­able to A. B. or Order, and Assigned from one to another, each Assigner to be Warran­tee for the Note, both to the Bank, and also to every later Assignee.

That these Notes shall be taken by the King in all Payments, which will make them currant among the Subjects.

That this Bank do supply the King with all Loans at [...] ⟨4l.⟩ per Cent. Interest per Ann. from the time of borrowing, to the time the Money is paid in again, and that it hath the Taxes, or Funds settled by Act of Parliament, for its Security.

That all Debts Contracted to this Bank, shall be of the same Nature with Debts Con­tracted to the King, and be first paid out of the Estates of the Debtors; and that Extents shall lye accordingly.

[Page 5] That an Account be kept of Profit and Loss in each Chamber, together with the Charges of the Officers, &c. And that it be return'd up every Three Months, as also Account Currant, to the Grand Chamber in London, where the whole shall be Examined by the Commissioners, and they be liable to the inspection of the Parliament; by which means it will appear whither the Na­tion gets or looses by it. And Note, That if the Nation doth loose One hundred thou­sand Pounds per Ann. by the Charge of its Management, yet 'twill get many Millions in the increase of its Trade, though there is no doubt but this Bank will very much more than support its Charge.

That Registers for Lands be erected in all Counties, &c. where desired, by Act of Par­liament.

That Bills be past on the Bank by such as are appointed to buy for the Publick Use of the Nation, payable at the time of their Agreement; by which means every one will endeavour to Furnish the Government Cheapest, when their payments shall be punctual, the King will save a great deal of Moneys paid now for Procuration, Exces­sive Interest, &c. and the Fleet and Army will be well paid.

That the Commissioners do once every Year at least make up the Accounts depen­ding [Page 6] between the Publick and the Bank, allowing [...] ⟨4l.⟩ per Cent. Interest as before; and make application to the Parliament for its Reimbursement.

That Bills and Bonds be made Assignable by Law, and the Property be thereby trans­ferr'd to the Assigne.

That Trustees may put the Money be­longing to Orphans into this Bank, which shall be a discharge to them for so much of their Trust, the Interest to be du­ly issued out for the maintenance of the said Orphans; and that all Plate and Bullion be­longing to the said Orphans be by the Tru­stees Coined up at the next Mint, and the Money put into the Bank for the use of the said Orphans.

That the Money in this Bank be freed from Taxes.

Concerning which Credit I shall briefly speak to these Four Things.

• I. First, Its Security.
• II. Secondly, Some of those Advantages the Nation will reap by it.
• III. Thirdly, I shall make some Compa­rison between this Credit, and the pre­sent Bank of England.
• [Page 7] IV. Fourthly, I shall set forth the ne­cessity of setling the Nations Credit in this present Sessions.

I. As to the First, It hath the Legislative Power of the Kingdom of England for its Foundation, a Security strong enough, and nothing else can be so, to build this Great Superstructure upon, the well Mod­deling whereof, will keep it from being subject to the Designs of Private Persons; This will last so long as the Peoples Liber­ties last, for no Change can weaken it, so long as the People of England have a hand in making their own Laws, whose Common Interest will be so rivited and made up with the Security of this Bank, that they will in a short time become one thing, so that no­thing less than a Conquest will be able to shake it; This we cannot fear from any Nation besides the French, nor from them neither till Holland is first subdued, there­fore as those States must first truckel, so far will our Bank be more secure than theirs; France cannot Erect a Bank on any sort of Security, because the Will of that Prince being his Law, alters according to his pre­sent Occasions; Nor can Spain do it; where, not only the Government, but also the Pro­fits thereof, are divided amongst its Mini­sters; [Page 8] As for Sweden, Denmark and Portu­gal, the Princes of Italy and Germany, few believe their Circumstances to be such as to render them capable of Erecting a Bank which may draw the Eyes of Europe to look towards it; England only can do it, for as an easie Government is its own Security, so that Security encourages Trade, and these two, accompanied with the Profits offered to a running Cash, will make all Europe desire to settle their Moneys here.

Seeing then that nothing but the same Power which first Constituted this Bank can destroy it, (a Power with whom we in­trust our Lives, Liberties, and Estates) I cannot see the least room left for distrust; for what advantage can any future Parlia­ment expect by a design of seizing this Bank, when the Treasure thereof may be drawn out whilst they are framing the Law; and the Consequence will be the ru­ining their own Estates, for which they can promise nothing to themselves, save the being possest of Empty Papers:

What farther Hazard the Nation can run, must proceed from the Neglect of the Ma­nagers, or the Fraud of under Officers, which, Care in the First, and Security for the Last, will prevent.

[Page 9] II. The next thing is to shew the Advan­tages which England will reap by setling the Credit here proposed; whereof some do immediately attend it, others are Conse­quential.

Those which immediately attend it are,

1st, The Rate of Interest will hereby be brought lower, to the advance of our Lands, and Encouragement of our Trade, by Methods altogether as profitable to the Usurer, who will be willing to let his Money Cheaper, when it shall never lye dead without his Consent, his Security be unquestionable, and freed from the Charges of Litigious Suits, which so frequently accompany doubtful Mortgages.

2dly, Both Gentlemen and Traders will hereby be supplied with Money to serve their Occasions on such reasonable Security as they are able to give, when that Security shall be strengthened by having the Preheminence above all other Obligations; They may also have liberty to pay it in by such Pro­portions as they can best spare it, when it shall be equally the Interest of the Bank to receive it so, which will never want new op­portunities to let it out again.

[Page 10] 3dly, This Credit will give us an Esteem in Foreign Parts, Draw their Moneys hither, and consequently their Trade, and thereby their People, all which will be an Advantage to England.

4ly, It will supply the Government with Money to carry on the War on moderate In­terest, and make its Credit good; whereby the Publick Revenues will reach farther to serve its Occasions, and the Ministers of State be freed from many anxious Thoughts which now make them uneasie.

5ly, It will make Returns from place to place in England both cheap and certain, which will help our Inland Trade, and pre­vent Robberies, now too much encouraged by travelling with Money; It will also be profitable to our Foreign Trade, by bringing Exchanges low in our favour.

6ly, The Frauds put on the Country by Counterfeit Notes will be prevented; for though the method of Indentures and Stain­ed Paper now used by the Bank of England may be a Security to it self, yet it is not so to any one else, seeing Art is able to Coun­terfeit every thing, at least so like, as not to be easily discovered; Now what Satisfaction [Page 11] will it be to those who have received their Notes instead of Money, to be told by the Managers that they are Counterfeit, when they know not where, nor from whom to get Reparation; whereas being Assigned from Man to Man, they are taken on the Credit of the Assignor, who runs no o­ther risque thereby, save his Warrant that they are truly what he pays them for.

7ly, This Bank will be free from Stock-Jobbing, the Bane of all good Designs, which will find no room here, because it cannot be divided into private and perticu­lar Interests.

The Consequential Advantages will be these,

1st, By this means the Taxes for carrying on the War the ensuing Year, together with the Twenty five hundred and sixty four thousand Pounds which fell short on the Salt Fund, may be raised, by Methods wherein the Kings Revenue and the Peoples Profits shall go hand in hand, without Anti­cipations.

2ly, The Funds now setled on our Ma­nufactures, which discourage our Trade, and ruin our Poor, may be sunk and taken off; [Page 12] such are those on the Glass-makers, Tobacco-pipe-makers, Distillers, and others, many whereof have yielded little to the Govern­ment above the Charge of Collecting, and the best of them have done great mischief to our Trade; Now seeing these are only so many several Modus's of raising Money, those methods must doubtless do best, which least injure our Trade.

3ly, The Debt due to the Transport-Ships may be paid off, and those People, to whose early Loyalty the Reduction of Ireland is very much owing, be contented.

4ly, The Mints may be kept imployed, and the Kingdom thereby filled with Coin.

5ly, Our Wooll may be kept at home, which I humbly conceive can never be done till a good Credit be settled, any thing less will not be large enough to cover the Sore intended to be Cured.

6ly, The Plantation Trade may be better secured, especially that of Tobacco, and Me­thods may be proposed to render it more pro­fitable, both to the King, and also to the Subject.

[Page 13] 7ly, The Bank of Englands Notes may be brought to Par, and Tallyes of all sorts in a short time be paid off at their full Valew, which I hum­bly conceive will be difficult to be done any other way; the setling a Credit on either, or grafting them both together, seem improbable Methods to answer those ends.

I humbly hope to make Proposals in this present Sessions for putting these into Practise, if a good Credit be timely setled.

Besides these, many other Advanta­ges will accrue to the Nation, many of which I have set forth in my be­fore recited Essay on Coin and Credit. Pag. 27, 28, 29.

III. The Third thing is to make some Comparison between the Credit here proposed, and the present Bank of England; which I Humbly conceive is so shaken in its Reputation, as hath rendred it uncapable to be made the Foundation of a National Credit; and [Page 14] whilst we labour to recover it, we may run the hazard of destroying our Trade, disturbing the Government, and keeping our selves under a lingring War, whilst we encourage the French King to try his utmost Efforts, hoping that our Difficulties at home will force us to accept of a dishonourable Peace.

'Tis certain nothing can be the sup­port of a National Credit, which is not better, or at least so good as Mo­ney; and this is not to be found in the Bank of England, whose Notes whilst they are One per Cent. worse then Spe­cie will always keep their Coffers empty, because no Man will put into it a Hundred Pounds in Money, when he can have a Note of the same Va­lue for Ninety Nine; and the Conse­quence will be this, that the Lender, or rather the Jobber, will never rest till he is repaid, that so he may be making advantage by a New Purchase; And if this will be the effect of a Credit worse only by One per Cent. than Money, what will it be when 'tis sunk to Sixteen? Whereas on the o­ther side, when a Credit is better than [Page 15] Money, the Coffers will ever be full, because all Men will endeavour to put in their Money, and be impatient till 'tis done; And thus it will be, when the Lender thinks himself secure, and makes more profit by having his Mo­ney in the Bank then in his Chest, who will therefore receive out no more at a time then his necessities shall re­quire, and for the same Reason, those to whom he pays it, will endeavour to return it thither again so soon as they can.

IV. As to the Fourth thing Pro­posed, The necessity the Nation lies under to have its Credit setled this present Sessions. it will appear, if we consider how London now stands in Competition with all England besides as to the Specie of Money, and how it will stand before another Sessions; 'Tis generally agreed, that about One Moiety of the Money of England is already Center'd in that great City, and the rest is not enough to pay the Debts owing to it, together with His Majesties Revenues, Bonds already en­tered into, and Taxes now to be giv­en, [Page 16] for Six Months longer, besides the Foreign Bills, which are generally made payable there, all which must be re­turned in Specie; for though by an Act of this present Sessions: Intituled, An Act for the farther remedying the ill State of the Coin of this Kingdom, it is among other things Provided, That all Money that shall be brought in upon Account of Taxes, or Revenues, or Loans, at Five Shillings and Eight Pence per Ounce, shall be carryed to the next adjacent Mint, in order to be Recoin­ed, yet this will no way be Service­able to the Country, unless a Credit be settled, it must otherwise be sent up to London after Coined for want of Returns, the Debts due to the Coun­try being paid there in Bank, which is Sixteen per Cent. worse than Money, and those due from the Country de­manded in Specie, so that the Money of England is every Week brought up thither; and then, if it be next consi­dered what Methods are left to the Country to draw it back again, viz. by Provisions and some few other things, 'twill be reasonable to believe, that see­ing the supply made from that City to the Country is greater then what is [Page 17] made from the Country thither, all the Cash of England will Center there in a short time, to the Ruining of the other Trading Cities, and disabling of the Country to pay future Taxes; And this will make the dependance on London still greater, till by its own Bloatiness it must at last burst, when the Estates of the Traders shall consist only in Debts due from the Country, which must still lye out, for want of a Specie to pay them in; so that all the advantage London will receive is, that it will be last Ruined.

Now if a good Credit be settled out of Hand, and the Mints conti­nued in the Country, the Money that is now there may be still kept there, and Methods found out to increase it, and the Trade of England carryed on with an equal Circulation in all places; this will keep up the Rents of the Lands of England, which must otherwise fall in their Values, suitable to the di­stance they stand in from that great Me­tropolis.

If it be Objected, That the Manage­ment of this Credit will be very cost­ly [Page 18] to the Nation; I humbly conceive, that the Profits thereof will not only support its Charge, but also bring in a great Overplus, which may be use­fully imployed to the Nations advan­tage; yet were this Objection true, no­thing can be termed good Husbandry which spoils our Trade, the stopping whereof but for one Month will be many Millions lost to the Kingdom; therefore, whatever Charge is necessa­ry to keep it on foot, 'twill be the Nations Interest to be at, especially such a Bank as this is, whose Profits or Losses are Compatible with the In­terest of the Subject, for, if the Bank looses 'tis because the Subject gets, and if the Bank gets, the Nation hath the Profits, whilst at the same time the Go­vernment is supported, and our Trade carried on.

If by rectifying this, or any better Proposal from a more thinking Head, the Credit of the Nation may be set­tled in this present Sessions, I have reap­ed the end I aimed at, the Good and Welfare of my Native Country; which I Humbly submit to your Ho­nours great Wisdom, and shall be rea­dy [Page 19] to explain any thing that may seem doubtful, when I am thereto Commanded.