THERE is no Science, the Stu­dy of which is more useful and commendable than the Knowledge of the true Interest of one's Coun­try; and perhaps there is no Kind of Learning more abstruse and intricate, more difficult to acquire in any Degree of Perfection than This, and therefore none more generally neglected. Hence it is, that we every Day find Men in Conver­sation contending warmly on some Point in Politicks, which, altho' it may nearly concern them both, neither of them un­derstand any more than they do each other.

Thus much by way of Apology for this present Enquiry into the Nature and Necessity of a Paper Currency. And if any Thing I shall say, may be a Means of fixing a Subject that is now the chief [Page 4] Concern of my Countrymen, in a clearer Light, I shall have the Satisfaction of thinking my Time and Pains well em­ployed.

To proceed, then,

There is a certain proportionate Quan­tity of Money requisite to carry on the Trade of a Country freely and currently; More than [...]hich would be of no Advantage in Trade, and Less, if much less, exceedingly detri­mental to it.

This leads us to the following general Considerations.

First, A great Want of Money in any Trading Country, occasions Interest to be at at a very high Rate. And here it may be observed, that it is impossible by any Laws to restrain Men from giving and receiving exorbitant Interest, where Mo­ney is suitably scarce: For he that wants Money will find out Ways to give 10 per Cent. when he cannot have it for less, al­tho' the Law forbids to take more than 6 per Cent. Now the Interest of Money being high is prejudicial to a Country several Ways: It makes Land bear a low Price, because few Men will lay out their Money in Land, when they can make a much greater Profit by lending it out [Page 5] upon Interest: And much less will Men be inclined to venture their Money at Sea, when they can, without Risque or Hazard, have a great and certain Profit by keeping it at home; thus Trade is discouraged. And if in two Neigbouring Countries the Traders of one, by Reason of a greater Plenty of Money, can bor­row it to trade with at a lower Rate than the Traders of the other, they will infal­libly have the Advantage, and get the greatest Part of that Trade into their own Hands; For he that trades with Money he hath borrowed at 8 or 10 per Cent. cannot hold Market with him that bor­rows his Money at 6 or 4. — On the contrary, A plentiful Currency will occasion Interest to be low: And this will be an Inducement to many to lay out their Money in Lands, rather than put it out to Use, by which means Land will begin to rise in Value and bear a better Price: And at the same Time it will tend to enliven Trade exceedingly, because Peo­ple will find more Profit in employing their Money that Way than in Usury; and many that understand Business very well, but have not a Stock sufficient of their own, will be encouraged to borrow [Page 6] Money to trade with, when they can have it a moderate Interest.

Secondly, Want of Money in a Country reduces the Price of that Part of its Pro­duce which is used in Trade: Because Trade being discouraged by it as above, there is a much less Demand for that Produce. And this is another Reason why Land in such a Case will be low, especially where the Staple Commodity of the Country is the immediate Produce of the Land, be­cause that Produce being low, fewer Peo­ple find an Advantage in Husbandry, or the Improvement of Land. — On the contrary, A Plentiful Currency will occasion the Trading Produce to bear a good Price: Because Trade being encouraged and ad­vanced by it, there will be a much great­er Demand for that Produce; which will be a great Encouragement of Husbandry and Tillage, and consequently make Land more valuable, for that many Peo­ple would apply themselves to Husban­dry, who probably might otherwise have sought some more profitable Employ­ment.

As we have already experienced how much the Increase of our Currency by what Paper Money has been made, has [Page 7] encouraged our Trade; particularly to in­stance only in one Article, Ship-Building; it may not be amiss to observe under this Head, what a great Advantage it must be to us as a Trading Country, that has Work­men and all the Materials proper for that Business within itself, to have Ship-Building as much as possible advanced: For every Ship that is built here for the English Merchants, gains the Province her clear Value in Gold and Silver, which must otherwise have been sent Home for Re­turns in her Stead; and likewise, every Ship built in and belonging to the Pro­vince, not only saves the Province her first Cost, but all the Freight, Wages and Provisions she ever makes or requires as long as she lasts; provided Care is taken to make This her Pay Port, and that she always takes Provisions with her for the whole Voyage, which may easily be done. And how considerable an Article this is yearly in our Favour, every one, the least acquainted with mercantile Affairs, must needs be sensible; for if we could not Build our selves, we must either pur­chase so many Vessels as we want from other Countries, or else Hire them to carry our Produce to Market, which [Page 8] would be more expensive than Purchasing; and on many other Accounts exceedingly to our Loss. Now as Trade in general will decline where there is not a plentiful Currency, so Ship-Building must certainly of Consequence decline where Trade is declining.

Thirdly, Want of Money in a Country discourages Labouring and Handicrafts Men (which are the chief Strength and Support of a People) from coming to settle in it, and induces many that were settled to leave the Country, and seek Entertainment and Em­ployment in othe [...] Places, where they can be better paid. For what can be more dis­heartning to an industrious labouring Man, than this, that after he hath earned his Bread with the Sweat of his Brows, he must spend as much Time, and have near as much Fatigue in getting it, as he had to earn it. And nothing makes more bad Paymasters than a general Scarcity of Money. And here again is a Third Reason for Land's bearing a low Price in such a Country, because Land always increases in Value in Proportion with the Increase of the People settling on it, there being so many more Buyers; and its Value will infallibly be diminished, if the Number [Page 9] of its Inhabitants diminish. — On the contrary, A Plentiful Currency will encou­rage great Numbers of Labouring and Handi­crafts Men to come and Settle in the Country, by the same Reason that a Want of it will discourage and drive them out. Now the more Inhabitants, the greater De­mand for Land (as is said above) upon which it must necessarily rise in Value, and bear a better Price. The same may be said of the Value of House-Rent, which will be advanced for the same Reasons; and by the Increase of Trade and Riches People will be enabled to pay greater Rents. Now the Value of House-Rent rising, and Interest becoming low, many that in a Scarcity of Money prac­tised Usury, will probably be more in­clined to Building; which will likewise sensibly enliven Business in any Place; it being an Advantage not only to Brick­makers, Bricklayers, Masons, Carpenters, Joiners, Glaziers, and several other Trades immediately employ'd by Building, but likewise to Farmers, Brewers, Bakers, Taylors, Shoemakers, Shop-keepers, and in short to every one that they lay their Money out with.

[Page 10]Fourthly, Want of Money in such a Coun­try as ours, occasions a greater Consumption of English and European Goods, in Pro­portion to the Number of the People, than there would otherwise be. Because Mer­chants and Traders, by whom abundance of Artificers and labouring Men are em­ployed, finding their other Affairs require what Money they can get into their hands, oblige those who work for them to take one half, or perhaps two thirds Goods in Pay. By this Means a greater Quantity of Goods are disposed of, and to a greater Value; because Working Men and their Families ar [...] thereby induced to be more profuse and extravagant in fine Apparel and the like, than they would be if they were obliged to pay ready Money for such Things after they had earn'd and received it, or if such Goods were not imposed upon them, of which they can make no other Use: For such People cannot send the Goods they are paid with to a Foreign Market, without losing considerably by having them sold for less than they stand 'em in here; neither can they easily dispose of them at Home, because their Neigh­bours are generally supplied in the same Manner; But how unreasonable would it [Page 11] be, if some of those very Men who have been a Means of thus forcing People into unnecessary Expence, should be the first and most earnest in accusing them of Pride and Prodigality. Now tho' this extraor­dinary Consumption of Foreign Com­modities may be a Profit to particular Men, yet the Country in general grows poorer by it apace. — On the con­trary, As A plentiful Currency will occasion a less Consumption of European Goods, in Proportion to the Number of the People, so it will be a means of making the Balance of our Trade more equal than it now is, if it does not give it in our Favour; be­cause our own Produce will be encoura­ged at the same Time. And it is to be observed, that tho' less Foreign Commo­dities are consumed in Proportion to the Number of People, yet this will be no Disadvantage to the Merchant, because the Number of People increasing, will occasion an increasing Demand of more Foreign Goods in the Whole.

Thus we have seen some of the many heavy Disadvantages a Country (espe­cially such a Country as ours) must la­bour under, when it has not a sufficient Stock of running Cash to manage its [Page 12] Trade currently. And we have likewise seen some of the Advantages which ac­crue from having Money sufficient, or a Plentiful Currency.

The foregoing Paragraphs being well considered, we shall naturally be led to draw the following Conclusions with Re­gard to what Persons will probably be for or against Emitting a large Additional Sum of Paper Bills in this Province.

1. Since Men will always be power­fully influenced in their Opinions and Actions by what appears to be their par­ticular Interest: Therefore all those, who wanting Courage to venture in Trade, now practise Lending Money on Security for exorbitant Interest, which in a Scarcity of Money will be done notwithstanding the Law, I say all such will probably be against a large Addition to our present Stock of Paper-Money; because a plen­tiful Currency will lower Interest, and make it common to lend on less Security.

2. All those who are Possessors of large Sums of Money, and are disposed to pur­chase Land, which is attended with a great and sure Advantage in a growing Country as this is; I say, the Interest of all such Men will encline them to oppose a large [Page 13] Addition to our Money. Because their Wealth is now continually increasing by the large Interest they receive, which will enable them (if they can keep Land from rising) to purchase More some time hence than they can at present; and in the mean time all Trade being discour­aged, not only those who borrow of them, but the Common People in general will be impoverished, and consequently obli­ged to sell More Land for less Money than they will do at present. And yet, after such Men are possessed of as much Land as they can purchase, it will then be their Interest to have Money made Plentiful, because that will immediately make Land rise in Value in their Hands. Now it ought not to be wonder'd at, if Peo­ple from the Knowledge of a Man's In­terest do sometimes make a true Guess at his Designs; for, Interest, they say, will not Lie.

3. Lawyers, and others concerned in Court Business, will probably many of them be against a plentiful Currency; be­cause People in that Case will have less Occasion to run in Debt, and consequently less Occasion to go to Law and Sue one another for their Debts. Tho' I know [Page 14] some even among these Gentlemen, that regard the Publick Good before their own apparent private Interest.

4. All those who are any way Depen­dants on such Persons as are above men­tioned, whether as holding Offices, as Tenants, or as Debtors, must at least ap­pear to be against a large Addition; be­cause if they do not, they must sensibly feel their present Interest hurt. And be­sides these, there are, doubtless, many well-meaning Gentlemen and Others, who, without any immediate private In­terest of their own in View, are against making such an Addition, thro' an Opi­nion they may have of the Honesty and sound Judgment of some of their Friends that oppose it, (perhaps for the Ends a­foresaid) without having given it any thorough Considerarion themselves. And thus it is no Wonder if there is a power­ful Party on that Side.

On the other Hand, Those who are Lovers of Trade, and delight to see Ma­nufactures encouraged, will be for having a large Addition to our Currency: For they very well know, that People will have little Heart to advance Money in Trade, when what they can get is scarce [Page 15] sufficient to purchase Necessaries, and sup­ply their Families with Provision. Much less will they lay it out in advancing new Manufactures; nor is it possible new Ma­nufactures should turn to any Account, where there is not Money to pay the Workmen, who are discouraged by being paid in Goods, because it is a great Dis­advantage to them.

Again, Those who are truly for the Proprietor's Interest (and have no se­parate Views of their own that are pre­dominant) will be heartily for a large Addition: Because, as I have shewn a­bove, Plenty of Money will for several Reasons make Land rise in Value exceed­ingly: And I appeal to those immedi­ately concerned for the Proprietor in the Sale of his Lands, whether Land has not risen very much since the first Emission of what Paper Currency we now have, and even by its Means. Now we all know the Proprietary has great Quanti­ties to sell.

And since a Plentiful Currency will be so great a Cause of advancing this Pro­vince in Trade and Riches, and increasing the Number of its People; which, tho' it will not sensibly lessen the Inhabitants of [Page 16] Great Britain, will occasion a much grea­ter Vent and Demand for their Commo­dities here; and allowing that the Crown is the more powerful for its Subjects in­creasing in Wealth and Number, I can­not think it the Interest of England to oppose us in making as great a Sum of Paper Money here, as we, who are the best Judges of our own Necessities, find convenient. And if I were not sensible that the Gentlemen of Trade in England, to whom we have already parted with our Silver and Gold, are misinformed of our Circumstances, and therefore endea­vour to have our Currency stinted to what it now is, I should think the Government at Home had some Reasons for discour­aging and impoverishing this Province, which we are not acquainted with.

It remains now that we enquire, Whe­ther a large Addition to our Paper Curren­cy will not make it sink in Value very much; And here it will be requisite that we first form just Notions of the Nature and Va­lue of Money in general.

As Providence has so ordered it, that not only different Countries, but even different Parts of the same Country, have their peculiar most suitable Productions; [Page 17] and likewise that different Men have Ge­nius's adapted to Variety of different Arts and Manufactures, Therefore Commerce, or the Exchange of one Commodity or Manufacture for another, is highly con­venient and beneficial to Mankind. As for Instance, A may be skilful in the Art of making Cloth, and B understand the raising of Corn; A wants Corn, and B Cloth; upon which they make an Exchange with each other for as much as each has Occasion, to the mutual Advan­tage and Satisfaction of both.

But as it would be very tedious, if there were no other Way of general Deal­ing, but by an immediate Exchange of Commodities; because a Man that had Corn to dispose of, and wanted Cloth for it, might perhaps in his Search for a Chapman to deal with, meet with twen­ty People that had Cloth to dispose of, but wanted no Corn; and with twenty others that wanted his Corn, but had no Cloth to suit him with. To remedy such Inconveniences, and facilitate Ex­change, Men have invented MONEY, properly called a Medium of Exchange, be­cause through or by its Means Labour is exchanged for Labour, or one Commo­dity [Page 18] for another. And whatever particu­lar Thing Men have agreed to make this Medium of, whether Gold, Silver, Cop­per, or Tobacco; it is, to those who pos­sess it (if they want any Thing) that ve­ry Thing which they want, because it will immediately procure it for them. It is Cloth to him that wants Cloth, and Corn to those that want Corn; and so of all other Necessaries, it is whatsoever it will procure. Thus he who had Corn to dispose of, and wanted to purchase Cloth with it, might sell his Corn for its Value in this general Medium, to one who wanted Corn but had no Cloth; and with this Medium he might purchase Cloth of him that wanted no Corn, but perhaps some other Thing, as Iron it may be, which this Medium will immediately pro­cure, and so he may be said to have ex­changed his Cloth for Iron; and thus the general Exchange is soon performed, to the Satisfaction of all Parties, with abun­dance of Facility.

For many Ages, those Parts of the World which are engaged in Commerce, have fixed upon Gold and Silver as the chief and most proper Materials for this Medium; they being in themselves va­luable [Page 19] Metals for their Fineness, Beauty, and Scarcity. By these, particularly by Silver, it has been usual to value all Things else: But as Silver it self is of no certain permanent Value, being worth more or less according to its Scarcity or Plenty, therefore it seems requisite to fix upon Something else, more proper to be made a Measure of Values, and this I take to be Labour.

By Labour may the Value of Silver be measured as well as other Things. As, Suppose one Man employed to raise Corn, while another is digging and refining Sil­ver; at the Year's End, or at any other Period of Time, the compleat Produce of Corn, and that of Silver, are the natural Price of each other; and if one be twen­ty Bushels, and the other twenty Ounces, then an Ounce of that Silver is worth the Labour of raising a Bushel of that Corn. Now if by the Discovery of some near­er, more easy or plentiful Mines, a Man may get Forty Ounces of Silver as easily as formerly he did Twenty, and the same Labour is still required to raise Twenty Bushels of Corn, then Two Ounces of Silver will be worth no more than the same Labour of raising One Bushel of [Page 20] Corn, and that Bushel of Corn will be as cheap at two Ounces, as it was before at one; caeteris paribus.

Thus the Riches of a Country are to be valued by the Quantity of Labour its Inhabitants are able to purchase, and not by the Quantity of Silver and Gold they possess; which will purchase more or less Labour, and therefore is more or less va­luable, as is said before, according to its Scarcity or Plenty. As those Metals have grown much more plentiful in Eu­rope since the Discovery of America, so they have sunk in Value exceedingly; for, to instance in England, formerly one Penny of Silver was worth a Days La­bour, but now it is hardly worth the sixth Part of a Days Labour; becaus [...] [...]ot less than Six-pence will purchase the La­bour of a Man for a Day in any Part of that Kingdom; which is wholly to be attributed to the much greater Plenty of Money now in England than formerly. And yet perhaps England is in Effect no richer now than at that Time; because as much Labour might be purchas'd, or Work got done of almost any kind, for 100 l. then, as will now require or is now worth 600 l.

[Page 21]In the next Place let us consider the Nature of Banks emitting Bills of Credit, as they are at this Time used in Ham­burgh, Amsterdam, London and Venice.

Those Places being Seats of vast Trade, and the Payment of great Sums being for that Reason frequent, Bills of Credit are found very convenient in Business; because a great Sum is more easily counted in Them, lighter in Carriage, concealed in less Room, and therefore safer in Tra­velling or Laying up, and on many other Accounts they are very much valued. The Banks are the general Cashiers of all Gentlemen, Merchants and great Traders in and about those Cities; there they de­posite their Money, and may take out Bills to the Value, for which they can be certain to have Money again at the Bank at any Time: This gives the Bills a Credit; so that in England they are ne­ver less valuable than Money, and in Ve­nice and Amsterdam they are generally worth more. And the Bankers always reserving Money in hand to answer more than the common Run of Demands (and some People constantly putting in while others are taking out) are able besides to lend large Sums, on good Security, to [Page 22] the Government or others, for a reason­able Interest, by which they are paid for their Care and Trouble; and the Money which otherwise would have lain dead in their Hands, is made to circulate again thereby among the People: And thus the Running Cash of the Nation is as it were doubled; for all great Payments being made in Bills, Money in lower Trade becomes much more plentiful: And this is an exceeding great Advantage to a Trading Country, that is not over-stock'd with Gold and Silver.

As those who take Bills out of the Banks in Europe, put in Money for Se­curity; so here, and in some of the neigh­bouring Provinces, we engage our Land. Which of these Methods will most effec­tually secure the Bills from actually sink­ing in Value, comes next to be consi­dered.

Trade in general being nothing else but the Exchange of Labour for Labour, the Value of all Things is, as I have said before, most justly measured by Labour. Now suppose I put my Money into a Bank, and take out a Bill for the Value; if this Bill at the Time of my receiving it, would purchase me the Labour of one [Page 23] hundred Men for twenty Days; but some time after will only purchase the Labour of the same Number of Men for fifteen Days; it is plain the Bill has sunk in Value one fourth Part. Now Silver and Gold being of no permanent Value; and as this Bill is founded on Money, and therefore to be esteemed as such, it may be that the Occasion of this Fall is the increasing Plenty of Gold and Silver, by which Money is one fourth Part less va­luable than before, and therefore one fourth more is given of it for the same Quantity of Labour; and if Land is not become more plentiful by some propor­tionate Decrease of the People, one fourth Part more of Money is given for the same Quantity of Land, whereby it appears that it would have been more profitable to me to have laid that Money out in Land which I put into the Bank, than to place it there and take a Bill for it. And it is certain that the Value of Money has been continually sinking in England for several Ages past, because it has been con­tinually increasing in Quantity. But if Bills could be taken out of a Bank in Europe on a Land Security, it is probable the Value of such Bills would be more [Page 24] certain and steady, because the Number of Inhabitants continue to be near the same in those Countries from Age to Age.

For as Bills issued upon Money Secu­rity are Money, so Bills issued upon Land, are in Effect Coined Land.

Therefore (to apply the Above to our own Circumstances) If Land in this Pro­vince was falling, or any way likely to fall, it would behove the Legislature most carefully to contrive how to prevent rhe Bills issued upon Land from falling with it. But as our People increase exceed­ingly, and will be further increased, as I have before shewn, by the Help of a large Addition to our Currency; and as Land in consequence is continually rising, So, in case no Bills are emitted but what are upon Land Security, the Money-Acts in every Part punctually enforced and ex­ecuted, the Payments of Principal and Interest being duly and strictly required, and the Principal bona fide sunk according to Law, it is absolutely impossible such Bills should ever sink below their first Value, or below the Value of the Land on which they are founded. In short, there is so little Danger of their sinking, [Page 25] that they would certainly rise as the Land rises, if they were not emitted in a pro­per Manner for preventing it; That is, by providing in the Act That Payment may be made, either in those Bills, or in any other Bills made current by any Act of the Legislature of this Province; and that the Interest, as it is received, may be again emitted in Discharge of Publick Debts; whereby circulating it returns again into the Hands of the Borrowers, and becomes Part of their future Payments; and thus as it is likely there will not be any Diffi­culty for want of Bills to pay the Office, they are hereby kept from rising above their first Value: For else, supposing there should be emitted upon mortgaged Land its full present Value in Bills; as in the Banks in Europe the full Value of the Money deposited is given out in Bills; and supposing the Office would take no­thing but the same Sum in those Bills in Discharge of the Land; as in the Banks aforesaid, the same Sum in their Bills must be brought in, in order to receive out the Money: In such Case the Bills would most surely rise in Value as the Land rises; as certainly as the Bank Bills founded on Money would fall if that Mo­ney [Page 26] was falling. Thus if I were to mort­gage to a Loan-Office, or Bank, a Parcel of Land now valued at 100 l. in Silver, and receive for it the like Sum in Bills, to be paid in again at the Expiration of a certain Term of Years; before which, my Land rising in Value, becomes worth 150 l. in Silver: 'Tis plain, that if I have not these Bills in Possession, and the Of­fice will take nothing but these Bills, or else what it is now become worth in Sil­ver, in Discharge of my Land; I say it appears plain, that those Bills will now be worth 150 l. in Silver to the Possessor; and if I can purchase them for less, in order to redeem my Land, I shall by so much be a Gainer.

I need not say any Thing to convince the Judicious that our Bills have not yet sunk, tho' there is and has been some Difference between them and Silver; be­cause it is evident that that Difference is occasioned by the Scarcity of the latter, which is now become a Merchandize, ri­sing and falling, like other Commodities, as there is a greater or less Demand for it, or as it is more or less Plenty.

Yet farther, in order to make a true Estimate of the Value of Money, we must [Page 27] distinguish between Money as it is Bul­lion, which is Merchandize, and as by being coin'd it is made a Currency: For its Value as a Merchandize, and its Va­lue as a Currency, are two distinct Things; and each may possibly rise and fall in some Degree independent of the other. Thus if the Quantity of Bullion increases in a Country, it will proportionably decrease in Value; but if at the same Time the Quantity of current Coin should decrease, (supposing Payments may not be made in Bullion) what Coin there is will rise in Value as a Currency, i. e. People will give more Labour in Manufactures for a certain Sum of ready Money.

In the same Manner must we consider a Paper Currency founded on Land; as it is Land, and as it is a Currency

Money as Bullion, or as Land, is valua­ble by so much Labour as it costs to procure that Bullion or Land.

Money, as a Currency, has an Additional Value by so much Time and Labour as it saves in the Exchange of Commodities.

If, as a Currency, it saves one Fourth Part of the Time and Labour of a Coun­try; it has, on that Account, one Fourth added to its original Value.

[Page 28]When there is no Money in a Coun­try, all Commerce must be by Exchange. Now if it takes one fourth Part of the Time and Labour of a Country, to ex­change or get their Commodities exchan­ged; then, in computing their Value, that Labour of Exchanging must be ad­ded to the Labour of manufacturing those Commodities: But if that Time or La­bour is saved by introducing Money suf­ficient, then the additional Value on Ac­count of the Labour of Exchanging may be abated, and Things sold for only the Value of the Labour in making them; because the People may now in the same Time make one Fourth more in Quan­tity of Manufactures than they could be­fore.

From these Considerations it may be gathered, that in all the Degrees between having no Money in a Country, and Mo­ney sufficient for the Trade, it will rise and fall in Value as a Currency, in Pro­portion to the Decrease or Increase of its Quantity: And if there may be at some Time more than enough, the Overplus will have no Effect towards making the Currency, as a Currency, of less Value than when there was but enough; because [Page 29] such Overplus will not be used in Trade, but be some other way disposed of.

If we enquire. How much per Cent. In­terest ought to be required upon the Loan of these Bills; we must consider what is the Natural Standard of Usury: And this appears to be, where the Security is un­doubted, at least the Rent of so much Land as the Money lent will buy: For it cannot be expected that any Man will lend his Money for less than it would fetch him in as Rent if he laid it out in Land, which is the most secure Property in the World. But if the Security is ca­sual, then a kind of Ensurance must be enterwoven with the simple natural In­terest, which may advance the Usury ve­ry conscionably to any height below the Principal it self. Now among us, if the Value of Land is twenty Years Purchase, Five per Cent. is the just Rate of Interest for Money lent on undoubted Security. Yet if Money grows scarce in a Country, it becomes more difficult for People to make punctual Payments of what they borrow, Money being hard to be raised; likewise Trade being discouraged, and Business impeded for want of a Currency, abundance of People must be in declining [Page 30] Circumstances, and by these Means Secu­rity is more precarious than where Mo­ney is plenty. On such Accounts it is no wonder if People ask a greater Interest for their Money than the natural Interest; and what is above is to be look'd upon as a kind of Praemium for the Ensurance of those Uncertainties, as they are greater or less. Thus we always see, that where Money is scarce, Interest is high, and low where it is plenty. Now it is certainly the Advantage of a Country to make In­terest as low as possible, as I have alrea­dy shewn; and this can be done no other way than by making Money plentiful. And since, in Emitting Paper Money a­mong us, the Office has the best of Secu­rity, the Titles to the Land being all skilfully and strictly examined and ascer­tained; and as it is only permitting the People by Law to coin their own Land, which costs the Government nothing, the Interest being more than enough to pay the Charges of Printing, Officers Fees, &c. I cannot see any good Reason why Four per Cent. to the Loan-Office should not be thought fully sufficient. As a low In­terest may incline more to take Money out, it will become more plentiful in [Page 31] Trade; and this may bring down the com­mon Usury, in which Security is more dubious, to the Pitch it is determined at by Law.

If it should be objected, That Emitting It at so low an Interest, and on such easy Terms, will occasion more to be taken out than the Trade of the Country really requires▪ It may be answered, That, as has already been shewn, there can never be so much of it emitted as to make it fall below the Land it is founded on; because no Man in his Senses will mortgage his Estate for what is of no more Value to him than That he has mortgaged, especially if the Posses­sion of what he receives is more precarious than of what he mortgages, as that of Paper Money is when compared to Land: And if it should ever become so plenty by in­discreet Persons continuing to take out a large Overplus, above what is necessary in Trade, so as to make People imagine it would become by that Means of less Value than their mortgaged Lands, they would immediately of Course begin to pay it in again to the Office to redeem their Land, and continue to do so till there was no more left in Trade than was absolute­ly necessary. And thus the Proportion [Page 32] would find it self, (tho' there were a Mil­lion too much in the Office to be let out) without giving any one the Trouble of Calculation.

It may perhaps be objected to what I have written concerning the Advantages of a large Addition to our Currency, That if the People of this Province increase, and Husbandry is more followed, we shall over­stock the Markets with our Produce of Flow­er, &c. To this it may be answered, that we can never have too many People (nor too much Money) For when one Branch of Trade or Business is overstocked with Hands, there are the more to spare to be employed in another. So if raising Wheat proves dull, more may (if there is Mo­ney to support and carry on new Manu­factures) proceed to the raising and ma­nufacturing of Hemp, Silk, Iron, and ma­ny other Things the Country is very ca­pable of, for which we only want Peo­ple to work, and Money to pay them with.

Upon the Whole it may be observed, That it is the highest Interest of a Tra­ding Country in general to make Money plentiful; and that it can be a Disadvan­tage to none that have honest Designs. [Page 33] It cannot hurt even the Usurers, tho' it should sink what they receive as Interest; because they will be proportionably more secure in what they lend; or they will have an Opportunity of employing their Money to greater Advantage, to them­selves as well as to the Country. Neither can it hurt those Merchants who have great Sums out-standing in Debts in the Country, and seem on that Account to have the most plausible Reason to fear it; to wit, because a large Addition being made to our Currency, will increase the Demand of our Exporting Produce, and by that Means raise the Price of it, so that they will not be able to purchase so much Bread or Flower with 100 l. when they shall receive it after such an Addition, as they now can, and may if there is no Addition: I say it cannot hurt even such, because they will get in their Debts just in exact Proportion so much the easier and sooner as the Money becomes plentier; and therefore, considering the Interest and Trouble saved, they will not be Losers; because it only sinks in Value as a Cur­rency, proportionally as it becomes more plenty. It cannot hurt the Interest of Great Britain, as has been shewn; and it [Page 34] will greatly advance the Interest of the Proprietor. It will be an Advantage to every industrious Tradesman, &c. because his Business will be carried on more free­ly, and Trade be universally enlivened by it. And as more Business in all Manu­factures will be done, by so much as the Labour and Time spent in Exchange is saved, the Country in general will grow so much the richer.

It is nothing to the Purpose to object the wretched Fall of the Bills in New-Eng­land and South-Carolina, unless it might be made evident that their Currency was emitted with the same Prudence, and on such good Security as ours is; and it cer­tainly was not.

As this Essay is wrote and published in Haste, and the Subject in it self intri­cate, I hope I shall be censured with Can­dour, if, for want of Time carefully to revise what I have written, in some Pla­ces I should appear to have express'd my self too obscurely, and in others am lia­ble to Objections I did not foresee. I sin­cerely desire to be acquainted with the Truth, and on that Account shall think my self obliged to any one, who will [Page 35] take the Pains to shew me, or the Pub­lick, where I am mistaken in my Con­clusions, And as we all know there are among us several Gentlemen of acute Parts and profound Learning, who are very much against any Addition to our Money, it were to be wished that they would fa­vour the Country with their Sentiments on this Head in Print; which, supported with Truth and good Reasoning, may probably be very convincing. And this is to be desired the rather, because many People knowing the Abilities of those Gentlemen to manage a good Cause, are apt to construe their Silence in This, as an Argument of a bad One. Had any Thing of that Kind ever yet appeared, perhaps I should not have given the Pub­lick this Trouble: But as those ingenious Gentlemen have not yet (and I doubt never will) think it worth their Concern to enlighten the Minds of their erring Countrymen in this Particular. I think it would be highly commendable in eve­ry one of us, more fully to bend our Minds to the Study of What is the true Interest of PENNSYLVANIA; whereby we may be enabled, not only to reason pertinently with one another; [Page 36] but, if Occasion requires, to transmit Home such clear Representations, and must inevitably convince our Superiors of the Reasonableness and Integrity of our Designs.