THE calamitous Circumstances in which too many are invol­ved, from the present languish­ing State of Publick Credit, is a Matter of too great Impor­tance to be pass'd by unregarded: It calls upon every Person who bears any Regard to the Interest of his Country, to exert himself in the Support of that Credit wherein no Briton can be unconcerned.

[Page 2]The Design of the few following Leaves is not to reflect but to examine, not to flat­ter but to state, not to aggravate but to reconcile every Man to his own Interest; by making an impartial and fair Examina­tion into the South-Sea Scheme, and endea­vouring to demonstrate the Reasonableness thereof, after the best Manner which a Per­son furnish [...]d only with such Materials as have been published, is enabled to do.

In order therefore, to conceive as clear­ly as possible, of the real Value of South-Sea Stock, as well as of the Reasonableness of the Terms given to all the Proprietors of the Debts redeemable and irredeemable, I shall pursue the following Method.

First, I shall lay down a short State of the several Branches which compose the Debts already subscribed, or to be subscribed into the South-Sea Stock: and those are com­monly distinguished as follows, viz.

[Page 3]The Government allowing the Company 20 Years Purchase for every long Annuity, and 14 Years Purchase for every short One, gives them a Liberty to create 30,981,698l. or thereabouts, new Stock, and thereby to enlarge their Capital till it amounts to 42,184,408l. Stock or thereabouts. Thus much for the particular Branches to be taken into the Stock.

Secondly, Let us enquire into the Amount of the South-Sea Stock, provided the whole Debt was subscribed upon the Terms pro­posed: And upon this Head, it will be necessary to distinguish, between that Part of the irredeemable Debt subscribed last April at 375l. and the remaining Part thereof, together with the redeemable Debt to be taken in at 400l. per Cent.

Subscribed in April at 375l. per Cent.

[Page 4]It is to be observed, that the last men­tioned Capital may not be perfectly exact, by reason no Distinction is made between the 99 Years Annuities, and the 14 per Cents, they both being included under one Head of Long Annuities, and the like Years Purchase in Stock given for each. The same is to be observed of the Lottery 1710, where Blanks and Prizes are likewise inclu­ded under the same Head: But this causes little Difference in the Capital Stock given for either, but only in the Bonds.

Remaining Part of the Debts, as well Redeemable as Irredeemable, to be taken into the Stock at 400l. per Cent.

[Page 5]Hence it is evident, that about 10,325,824l. Capital Stock, or thereabouts, would re­deem the whole 30,981,706l. of Debts, supposing the same to be all subscribed into the Stock upon the before-mentioned Terms: The Bonds excepted in this Account.

Supposing the whole Debt to be thus subscribed, what remains of the Stock, may either be sold, or divided out, in such manner as shall be most advantageous to the Company: Of which the underwritten Sums have been sold upon the following Considerations, viz.

[Page 6]Here it must be observ'd, that the South-Sea Capital, at present, does not amount to 34,689,121l. by reason the whole Debt is not subscribed in; so that probably there may be yet 10 Millions of Stock to dispose of.

Having thus far given some View of the Amount of the South Sea Capital, I shall endeavour to demonstrate the Reasonable­ness of the Terms given by the South-Sea Company, as well as the Advantageousness of accepting them. To do which in the most convincing manner, I shall beg Leave to set a Valuation upon the respective Funds, at the Time the Company first began to engage to redeem them: And then shew the Advantage accruing from the Exchange.

First, as to the Valuation of the re­spective Funds.

The Long Annuities never exceeded 25 Years Purchase, and were look'd upon as very dear at that Rate, it bringing but 4l. per Ann. to the Purchaser.

The 9 per Cents, and Lottery 1710, sold for about 14 Years Purchase.

[Page 7]The 5 and 4 per Cent. Redeemables can­not be valued at above Par, as they were liable to be paid off at any time without Notice. And I believe it is pretty certain, that the Proprietors of the 5l. per Cent. Funds would gladly have accepted of 4l. per Cent. rather than have been paid off.

If this be a fair Valuation, let us examine into the Reasonableness and Advantageous­ness of the Terms given by the South-Sea Company.

And First, Every Long Annuitant, who subscribed in April last, received in Stock, Bonds and Money, after the Rate of 36½ Years Purchase for an Annuity, which till then was not worth more than 25 Years Purchase.

In like manner, every Proprietor of the 9 per Cents, or Lottery 1710, received in Stock, Bonds, and Money, about 19½ Years Purchase for what would not have sold for 15.

As to the Terms at present given to the 2d Subscribers, they receive in Stock after the Rate of 35½ Years Purchase.

And the 9 per Cents, and Lottery 1710, receive in Stock about 18½ Years Purchase.

[Page 8]Every Proprietor of the Redeemables re­ceives 110l. Stock for 390l. (Interest be­ing allowed to them to Michaelmas 1720.) which in Effect is taking the Stock at 354l. 1 [...] s. per Cent.

It will easily be perceived from what is advanced, that the South-Sea Stock is va­lued at 400l. per Cent. which perhaps may be objected to, considering the Price it sells for.

And here it must be confess'd with the greatest Concern, that unreasonable Jealou­sies, groundless Fears, the most unaccounta­ble Apprehensions, or rather an universal Infatu [...]ion, has so far seized on Mankind, as to run down the Stock much below its Value and beyond all Expectation, to the un [...]ing of many, and the Loss of most: Although every Proceeding, which has in some measure occasioned these Losses, is far from being justifiable; yet a great Number of em must be attributed to the Misconduct of those upon whom they have fall [...] S [...]e arising [...] from an insa­tiable Des [...] [...] g [...]ing Treas [...], not thought of by our Ancestors, and thereby have neglected [...] Oppo [...] which would have [...] Happiness [...] to them­selves [Page 9] and their Families, while others by purchasing vastly beyond what their Abili­ties could make good, are plunged into ir­retrievable Ruin.

But to come to the main Point, which is to endeavour to shew the due Value of the Stock.

I hope no one will, in this Particular, too strictly adhere to Hudibras's Rule, which implies that nothing is worth more than it will bring: For at present it must be said, that the South-Sea Stock sells at a Discount, and below its Value.

For were the Stock to be sold only at 50l. per Cent. and every Man should determine to dispose of his own, it would be impossi­ble to find Purchasers for it; and yet the Stock in Reality would be no ways the worse for it. And to demonstrate this the more clearly: Suppose every Proprietor of a Landed Estate should resolve to sell it, it would not be possible among our selves to find Purchasers at 3 Years Purchase for the whole: Though every Man at present would look upon an Estate at 20 Years Purchase, as a most extraordinary Bargain: And yet no Man thinks the worse of his Estate, or would be induc'd to part with it upon so small a Consideration.

[Page 10]To judge of the real Value of the Stock, must be by the Dividends, the Company will be able to make upon the Stock, and the Continuance of them: And I hope to make it appear, that the Stock is worth 400l. per Cent. by shewing that the Company is able to divide after the Rate of 30 per Cent. upon their Stock, for such a Number of Years, as will reimburse every Proprietor his full Principal and Interest for every Share purchased at that Rate.

These Dividends are to be made good out of the Annual Sums payable by the Government, and out of the Profits which the Company gain or make by their Stock.

Their Profits arise three Ways, from the Stock already sold, the remaining Part to he disposed of, and the Loans upon the Stock.

I presume it is not to be expected from a private Person to point out at what Times, in what Proportions, and at what Rates the remaining Stock should be disposed of, that being submitted to the Ability and Management of those Gentlemen whose P [...] [...] is: But this I beg leave to say, that [...] payable by the Govern­ment to the Company, the Profits already [Page 11] made, the Advantages of their Loans, and a prudent Disposition of what remains, will enable the Company to divide 30 per Cent. upon their Stock, for such a Term of Years as will reimburse every Proprie­tor his full Principal and Interest.

As for Instance, every Long Annuitant subscribing 100l. per Annum, upon the first Proposal receives 254l. per Annum, which if continued 14 Years, Reimburses a Principal Sum of 2500l. with Interest of 5l. per Cent. thereon: Which Sum was the just Value or Worth of his Annuity: So that the Sub­scriber not only receives an annual Sum of 125l. in Lieu of 100l. but is a Gainer of 770l. Capital Stock, and 575l. in Bonds or Money, over and above the 2500l. by him subscribed.

Upon the last Proposal, every long An­nuitant receives 264l. for his subscribed 100l. per Annum; which gives the like Ad­dition to his yearly Income, and will reim­burse the Sum of 2500l. with 5l. per Cent. Interest in 13 Years; and he be further entitled to 88 [...] l. Capital Stock without Bonds.

Every short Annuitant will, in 14 Years, be reimbursed the respective Sum by him [Page 12] subscribed, the same being valued at 1 [...] Years Purchase, with Interest thereon at 5 [...] per Cent. and be a Gainer of so much Stock or Bonds, as he received for them.

As to the Redeemable Proprietors, they receive the Stock, as has been before observed, at the Rate of 354l. 10s. per Cent ▪ which bears Interest after the Rate of abou [...] 8l. 9s. 3d. upon the Sum subscribed▪ Which continued for 16 Years, will reimburse the Principal and Interest to the Proprietors at 4l. per Cent. and in 18 Years, a [...] 5l. per Cent. and they be Gainers of the Stock they possess.

Whatever further may be thought upon for the Service of the Company, 'tis not to be doubted but the Legislative Power will grant every thing reasonable, to enable them to go thro so great an Undertaking, as that of reducing the whole National Debt.

Having gone through all the Particulars I at first proposed, and endeavour'd to de­monstrate the Reasonableness of the South-Sea Scheme, as well as to shew the Advan­tages arising thereby; I beg Leave to ad­dress my self to every body, in Defence and Support of the Publick Credit; be­cause [Page 13] the Evil being from our selves, must by our selves be relieved.

I shall call upon every Body, because no Person is unconcerned, as every one will find when 'tis too late, that does not exert himself in this Just and National Cause.

Those who enjoy Favours from the Go­vernment, are first obliged by their Au­thority, Example and Advice to engage themselves and all others over whom they have any Influence in this just Cause. Those who receive no particular Favours from the Government, but live in the quiet and pea­ceable Enjoyment of their own, and profess themselves and would be treated as Friends to this present happy Establishment, ought not to be unactive for its Support, much less, if not necessitated, to make any De­mand to distress the Publick Credit.

Those not engaged in the publick Funds, are as much concerned to support the Cre­dit of them, as those engaged, as all will feel the good or ill Effects of their Sup­port or Decay.

A Decay of Credit must unavoidably end in a Decay of Substance. The Farmer will find no Market to take off the Produce and [Page 14] Effects of his Labour, and consequently be unable to pay his Landlord. The Mer­chants will find no Demands for their Com­modities, and the industrious Manufacturer no Employment for his Hands. As the Poor will increase, the Means of relieving them will lessen daily.

These are Circumstances which should awaken all of us to guard against them, as they are more easy to be prevented than remedied.

Let us not join Hands to work out our own Destruction, and give up that Peace, Trade and Wealth, which the united Power and Artifices of our Enemies has hitherto in vain laboured to rob us of.

Let no Man through unjust Fears or groundless Jealousies, lock up his Treasure in his Coffers, and boast himself upon a Security which will prove imaginary: Let every Man place his Strength in the Sup­port of the Government, and the Prospe­rity of his Country: And as there is no Attempt made to hurt us, let every Man consider where such Interest is allowed, or such Security given for Money, as in Great Britain? Where has publick Faith ever been so inviolably maintained? What great­er [Page 15] Security can be desired, where all the publick Funds are appropriated, the Interest, Wealth and Credit of the whole Nation is engaged to support, as it now is by the late happy and seasonable Agreement be­tween the Bank of England and the South-Sea Company?

Upon the whole, as we are blessed with a wise and good Prince, a faithfull and able Ministry, and a Parliament capable and disposed to concert such Measures as tend to the common Interest of all: Let us join our Endeavours to their Resolutions, to re­trieve the Difficulties we labour under; then will our Credit soon revive, our Trade flou­rish, and we become a great, happy and powerful People to all succeeding Ge­nerations.