That if a Man be contented to put in his Money into any of the New
Banks, at 3 _l. per Cent._ ’tis better worth to lend it at 5 _per Cent.
per Annum_, upon as good Security.
If it be reply’d, That a Man may take it out of a Bank when he will, and
his Money is always at Command: I answer, It is much more so when he has
it in his own Custody; For, he who shall have Four hundred Crown-pieces
by him, can make as much use of it to all Intents and Purposes, but of
Melting or Exporting, as if it were of an Intrinsick Value; and then
sure he who having Four hundred Pieces of Money by him of a Real Worth,
and applicable to any Lawful Use, can make Twenty Shillings a Year
Advantage by Keeping ’em; hath much the better of him who hath Four
hundred Pieces of other Money by him, of no more _Real_ Value, nor more
transferable, and hath no Profit by ’em, whilst they are in his Hands.
And whereas it may be said, _No Man can be entitled to the Interest of
that_ 20 l. _due to him from the Government, unless he keeps_ 80 _more
dead by him, as a Vehicle to convey the Interest of the_ 20 l. _to him_.
I answer the Government doth not intend to give Encouragement that Men
should keep more Money by ’em than they have, or may have Occasion for.
That is a sort of hoarding which we are to prevent.
And therefore this 5 _l. per Cent._ is not given as an Interest for dead
and unemploy’d Money, but to ascertain universally the real Value of it,
and to take off all the Objections that are made against a mere
extrinsick Value.
But if the Wisdom of the _Parliament_ thinks fit to give 10 _l. per
Cent._ Interest, whereby every 100 _l._ of new Coin’d Money will be
entitled to 40 _s. per Annum_ Interest; then the whole Interest of
500000 _l._ which the 2500000 _l._ half of the 5000000 _l._ wants of
intrinsick Value, amounts at 10 _l. per Cent._ but to 50000 _l. per
Annum_.
Or suppose by Combination ⅗ of the 5000000 _l._ demand Interest, then
will the whole Interest amount to but 60000 _l. per Annum_, which with
all the incident Charges, will be defrayed for little more than a
Three-half-penny in the Pound Land-Tax; and for much less than 2 _d._ in
the Pound.
And I am not at all against an Interest of 10 _l. per Cent._ because
beside the present Advantage it gives, it doth ascertain to the People
of _England_, not only a Promise that the _Parliament_ will; but that
there is a reason of good Husbandry likewise, why the Parliament should
as soon as possible save the Nation that Annual Charge, by the paying of
the principal Million that is wanting.
_Object._ II.
_These Ends may as well be pursued by transferable Notes or Bills
with Interest._
I answer that they cannot in the least, because here is 4 _l._ in 5 _l._
better secur’d than any Notes in the World can pretend to: for every Man
hath so much of his Money in his Pocket; and that, for which the
Security is given, is divisible into the _5th._ part of a Six-pence,
which transferable Bills cannot be.
_Object._ III.
_That if this Method will hold, the intrinsick Value of Money may be
but half as little as I propose, and the Subject will be always in
fear of farther Alterations._
_Answ._ This I confess would be a very material Objection against Mr.
_Lound_’s Method, but hath no force in ours, because the Government
saves nothing by lessening the intrinsick Value; for what it saves at
present, it must pay Interest for, and Principal too at the long run;
besides, the Government aims at nothing but to rectifie the Coin, and
keep it from being imbezil’d.
_Object._ IV.
_The Money of_ England _will be too much for_ 300 _Men to receive in
one Day_.
_Answ._ It is but 10000 _l._ a Man one with another; _i. e._ but 100
hundred Pound-bags, which may very well be weighed and seal’d up, and
entered in a Book in 5 hours time; _viz._ 20 in an hour; and as for the
great Banks and Cashes of _England_, such as the _Royal Bank_,
_East-India Company_, and the like, they need not remove their Money at
all; but Commissioners may be sworn and sent to their respective
Treasuries, taking sufficient Security of the said Treasurers and
Cashiers, that none of the said Money shall be remov’d or touch’d in 24
hours.
_Object._ V.
_It will be a great Trouble to carry_ 100 l. 10 _Miles for_ 20 _s._
_Answ._ It may not be 100 Men’s Case in all the Nation, and no Man is
forc’d to carry it; and he who don’t carry it, hath lost nothing but
what he might have gained.
For this is all clear Gains to every Man, who as soon as he has received
his 20 _s._ can keep the 20 _s._ and pay a Debt with the 100 _l._
_Object._ VI.
_The want of a less Intrinsick Value, than_ 20 _l._ per Cent. _will
answer all the aforesaid Ends_.
_Answ._ Less will not secure it against Exportation.
Foreigners have a knack at raising the price of Silver to draw over our
Money to ’em; and I hear they can afford what they now daily do, _viz._
To Export, rather than fail, Clipt Money; and the only way to keep our
Money at Home, _Is to fix, during the War, one considerable part of its
Value to the Kingdom_; and when those Foreigners who must deal with us,
cannot Export our Money, but with great disadvantage, they will be
forced to take our Commodities in lieu of it, and be as industrious to
make ’em valuable abroad as we are. And as to that Notion that we must
not glut the Markets abroad with our Commodities, it is a Vulgar Errour
unless we make this distinction, That ’tis dangerous when our _English_
Factories glut the Market; for when Foreigners see the Market full, they
combine together to keep down the Price, knowing that we must Sell; but
then Foreigners who are better acquainted with their own Markets and
Fairs than we are, and can spread a Trade much farther than our
Factories can do, when they Export our Commodities and cannot Trade at
all with us without exporting ’em; they can shift from one place to
another, and open secret Passages of Commerce, not yet found out.
If the _Portugueses_ for instance could not have Money for their Wine,
would they (I desire to know) rather leave of Trading with us, than take
our Cloth for their Wine. Or if heretofore we had drank no _French_
Wine, but what we had paid for in Tin, would they have found a Vent for
our Tin, or ploughed up their own Vineyards?
_Object._ VII.
_This will be forcing Foreigners then, to Export our Commodities._
_Answ._ Not at all: For if the Ballance of Trade shall continue after
all, to our disadvantage, here’s nothing in all this matter that hinders
our exporting Bullion.
But if ’tis absolutely necessary to export Bullion to make good the
Ballance of Trade, then we should take the more care, not to export more
than is absolutely necessary; and whilst we carry on our Trade abroad,
not to let this at home be at a stand, but secure Money enough for the
Nations In-land Trade, and to pay the Taxes without pretence of
impossibility.
_Object._ VIII.
_Five Millions will not be half enough for our In-land Trade._
_Answ._ And I am clearly of that Opinion; and that Ten Millions is
little enough, or else what need had there been, to have Coin’d Fifteen
Millions in three Reigns, as the most industrious Mr. _Lounds_ hath
delivered to us?
But we are providing for a present necessity and not abundance.
And yet should we Coin five Millions more, in all Ten Millions; less
than 2 _d._ in the Pound Land-Tax, would pay Interest for all, and the
Million gained out of it would save 2 _s._ in the Pound that Year, which
is making a very good Bargain for the Government.
But you may vary the _Postulata_, as I said before, how you please.
_Object._ IX.
_The new Coined Money will appear very small to the Eye._
_Answ._ Go which way you will, it must be smaller than it was, or of
greater value, because Bullion is dearer than when the Mill’d Money was
Coin’d, and if the new Coin’d Money were to have an Intrinsick Value, it
must necessarily be ⅕ less than it now is, and according to these
Proposals it will be but about ⅓.
Supposing Silver at this extraordinary Price, I don’t see how it can
possibly be larger than as 8 to 10, and this Proposition is as 8 to 12.
_Object._ X.
[Sidenote: _Cotton Post._ p. 294.]
The Mint is the Pulse of the Common-Wealth, _and this would discover
us to be in a weak Condition_.
_Answ._ It will discover us doubtless, to be in a borrowing Condition
upon good Interest and Security; but that’s the worst of it; whereas if
the Mint should only give us an imaginary Valuation, then we are
discovered to be in an imaginary Habit of Wealth.
CHAP. IX.
_Advantages and Conveniencies most of which may be expected from this
Method._
1. The Subject will be assured by the giving intire Satisfaction for
Clipt Money, that the Coin of _England_ Minted by Authority, is an
inviolable and an unalterable Property which the _Parliament_ will for
ever maintain, even in the worst of times; the Consideration of which,
will give the real and additional Value of the new Coin’d Money, a
Credit throughout the World. And People will be the better able to pay
Taxes if they are at no loss by their Clipt Money.
2. The Denomination of the Silver Coin will not hereby be raised above
the real value.
3. The Trade and Circulation of Bullion in and out of the Kingdom, will
not be at all hinder’d, so that as much Silver and Gold may be yearly
transported into _Flanders_, as the occasions of the War require,
without loss of Coinage; and Money which is the Vital warmth of In-land
Trade, by which People are enabled to pay Taxes, always preserved among
us.
4. The frequent Rises and Falls of Money beyond Sea, will be no longer
an effectual trick to cheat us, as it hath hitherto been.
5. If it should after all be exported, it will be 20 _l. per Cent._ more
to the Exporters loss, than if it had a full Intrinsick Value.
6. That 20 _l. per Cent._ which the Exporters lose, will be gain’d by
the Government; because for what is exported, no Interest will be paid,
nor no Principal at the end of the War.
7. The Coin’d Silver of the whole Nation, may in times of Peace be
reduced to the old Standard, and Intrinsick Value, without recoining or
altering the Species.
8. Those who hide and hoard up their Money, to defeat the Intents of a
_Tax_ upon it, will be disappointed of their Ends, and become greater
Losers than by producing it; whereby Money may be affected by _Taxes_,
which now cannot so easily be done.
9. All the Benefits and Advantages which can be proposed by a raising of
the extrinsick and denominated Value of Money, will be hereby secured,
and all the Inconveniencies of that Method obviated.
10. All the Advantages which can be proposed to the Publick by Coining
after the old Standard, will hereby be effected, at a very
inconsiderable present Expence, and no more than one Million at the end
of the War.
11. Guineas will hereby fall in their Estimation, by an easie, natural,
and gradual Abatement.
12. The Plenty of Money will be much greater, the Intrinsick Value more,
and the Certainty of what a Man takes clearer than is at present.
_And the real Value of our Coin, as great as ever, to all Intents
and Purposes, but of Exporting, Melting-down, and Hiding._