He that will justly estimate the value of any thing, must consider its quantity in proportion to its vent, for this alone regulates the Price. The value of any thing, compar'd with its self, or with a standing Measure, is greater, as its quantity is less in proportion to its vent: But in comparing it, or exchanging it with any other thing, the quantity and vent of that thing too must be allowed for in the computation of their Value. But because the desire of Money is constantly, almost every where the same, its vent varies very little, but as its greater scarcity enhanses its Price, and increases the scramble, there being nothing else that does easily supply the want of it. The lessening its quantity, therefore, always increases its Price, and makes an equal portion of it exchange for a greater of any other thing. Thus it comes to pass, that there is no manner of settled proportion between the value of an Ounce of Silver, and any other Commodity: For either varying its quantity in that Country, or the Commodity changing its quantity in proportion to its vent, their respective values change, i.e. less of one will barter for more of the other: Though in the ordinary way of speaking, 'tis only said, that the price of the Comnmodity, not of the Money is changed. For example, half an Ounce of Silver in England, will exchange sometimes for a whole Bushel of Wheat, sometimes for half, sometimes but a quarter, and this it does equally, whether by Use it be apt to bring in to the Owner Six in the Hundred of its own Weight per Annum, or nothing at all: It being only the change of the quantity of Wheat to its Vent, supposing we have still the same Summ of Money in the Kingdom; or else the change of the quantity of our Money in the Kingdom, supposing the quantity of Wheat, in respect to its Vent be the same too, that makes the change in the Price of Wheat. For if you alter the quantity or vent on either side, you presently alter the Price, but no other way in the World.
For it is not the Being, Adding, Increasing or Diminishing of any good quality in any Commodity, that makes its Price greater or less, but only as it makes its quantity or vent greater of less, in proportion one to another. This will easily appear by Two or Three Instances.
1. The Being of any good, and useful quality in any thing neither increases its Price, nor indeed makes it have any Price at all, but only as it lessens its quantity or increases its vent, each of these in proportion to one another. What more useful or necessary things are there to the Being or Well-being of Men, than Air and Water, and yet these have generally no Price at all, nor yield any Money: Because their quantity is immensly greater than their vent in most places of the World. But, as soon as ever Water (for Air still offers it self every where, without restraint or inclosure, and therefore is no where of any Price) comes any where to be reduced into any proportion to its consumption, it begins presently to have a Price, and is sometimes sold dearer than Wine. Hence it is, that the best, and most useful things are commonly the cheapest; because, though their Consumption be great, yet the Bounty of Providence has made, their production large, and suitable to it.
2. Nor does the Adding an excellency to any Commodity, raise its Price, unless it increase its Consumption. For suppose there should be taught a way (which should be published to the knowledge of every one) to make a Medicine of Wheat alone, that should infallibly Cure the Stone: 'Tis certain the discovery of this quality in that Grain, would give it an excellency very considerable: And yet this would not increase the Price of it one Farthing in Twenty Bushels, because its quantity or vent would not hereby, to any sensible degree, be alter'd.
3. Neither does the Increasing of any good quality, in any sort of things make it yield more. For though Teasels be much better this Year, than they were last, they are not one jot dearer, unless they be fewer too, or the consumption of them greater.
4. Nor does the lessening the good qualities of any sort of Commodity lessen its Price; which is evident in Hops, that are usually dearest those Years they are worst. But if it happen to be a Species of Commodity, whose defects may be supplyed by some other, the making of it worse does lessen its Price; because it hinders its Vent. For if Rye should any Year prove generally smutty or grown, no question it would yield less Money than otherwise, because the deficiency of that might be, in some measure, made up by Wheat, and other Grain. But if it be a sort of Commodity whose use no other known thing can supply, 'tis not its being better or worse, but its quantity and vent is that alone which regulates, and determines its value.
To apply this now to Money, as capable of different Rates of Interest. To Money considered in its proper use, as a Commodity passing in exchange from one to another, all that is done by Interest, is but the adding to it by agreement or publick Authority, a faculty, which naturally it has not, of increasing every Year Six per Cent. Now if publick Authority sink Use to Four per Cent. 'tis certain it diminishes this good quality in Money one Third. But yet this making the Money of England not one Farthing more than it was, it alters not the Measures upon which all changeable Commodities increase or sink their price, and so makes not Money Exchange for less of any Commodity, than it would without this alteration of its Interest. If lessening Use to Four per Cent. should at all alter the quantity of Money, and make it less, it would make Money, as it has the Nature of a Commodity, dearer, i.e. a less quantity of Money would Exchange for a greater quantity of another Commodity, than it would before. This perhaps will appear a little plainer by these following particulars.
1. That the Intrinsick Natural worth of any Thing, consists in its fitness to supply the Necessities or serve the Conveniencies of human Life; and the more necessary it is to our Being, or the more it contributes to our Well-being the greater is its worth: But yet,
2. That there is no such Intrinsick Natural settled value in any Thing, as to make any assign'd quantity of it, constantly worth any assigned quantity of another.
3. The Marketable value of any assign'd quantities of two or more Commodities, are pro hic nunc, equal, when they will Exchange one for another. As supposing one Bushel of Wheat, two Bushels of Barley, Thirty pound of Lead, and one Ounce of Silver, will now in the Market be taken one for another, they are then of equal worth: And our Coin being that which Englishmen reckon by, an Englishman would say, that now one Bushel of Wheat, two Bushels of Barley, thirty Pound of Lead, and one Ounce of Silver, were equally worth five Shillings.
4. The change of this Marketable value of any Commodity in respect of an other Commodity or in respect of a standing common Measure, is not the altering of any Intrinsick value or quality in the Commodity; (for musty and smutty Corn will Sell dearer at one time than the clean and sweet at another) but the alteration of some proportion, which that Commodity bears to something else.
5. This proportion in all Commodities, whereof Money is one, is the proportion of their quantity to the vent. The Vent is nothing else, but the passing of Commodities from one owner to another in Exchange; and is then call'd quicker, when a greater quantity of any species of Commodity, is taken off from the Owners of it, in an equal space of time.
6. This Vent is regulated, i.e. made quicker or slower, as greater or less quantities of any Saleable Commodity are remov'd out of the way, and course of Trade; separated from publick Commerce; and no longer lie within the reach of Exchange. For though any Commodity should shift Hands never so fast, and be Exchanged from one Man to another; yet if they were not thereby exempted from Trade and Sale, and did not cease to be any longer Traffick, this would not at all make, or quicken their Vent. But this seldom or never happening, makes very little or no alteration.
7. Things are removed out of the Market or Hands of Commerce, and so their Vent altered three ways; 1. By Consumption, when the Commodity in its Use is destroy'd, as Meat, Drink, and Cloths, c. all that is so consumed is quite gone out of the Trade of the World. 2. By Exportation; and all that is so carried away, is gone out of the Trade of England, and concerns Englishmen no more in the price of their Commodities among themselves for their own use, than if it were out of the World. 3. By buying and laying up for a Man's private Use. For what is by any of these ways shut out of the Market, and no longer moveable by the Hand of Commerce, makes no longer any part of Merchantable Ware, and so in respect of Trade, and the quantity of any Commodity, is not more considerable than if it were not in being. All these three terminating at last in Consumption of all Commodities, (excepting only Jewels and Plate, and some few others which wear out but insensibly) may properly enough pass under that Name. Ingrossing too has some influence on the present Vent: But this inclosing some considerable part of any Commodity, (for if the ingrossing be of all the Commodity, and it be of general Use, the price is at the will of the Ingrosser) out of the free common of Trade only for some time, and afterwards returning again to Sale, makes not usually so sensible and general an alteration in the Vent as the others do: But yet influences the price, and the Vent more, according as it extends its self to a larger portion of the Commodity, and Hoards it up longer.
8. Most other portable Commodities (excepting Jewels, Plate, c.) decaying quickly in their Use, but Money being less consumed or increased, i.e. by slower Degrees removed from, or brought into the free Commerce of any Country, than the greatest part of other Merchandize; and so the proportion between its quantity and Vent, altering slower than in most other Commodities, it is commonly look'd on as a standing measure to judge of the value of all Things, especially being adapted to it by its Weight and Denomination in Coinage.
9. Money, whilst the same quantity of it is passing up and down the Kingdom in Trade, is really a standing measure of the falling and rising value of other Things in Reference to one another: and the alteration of price is truly in them only. But if you increase or lessen the quantity of Money current in Traffick in any place, then the alteration of value is in the Money: And if at the same time Wheat keep its proportion of Vent to quantity, Money to speak truly alters its worth, and Wheat does not, though it Sell for a greater or less price than it did before. For Money being look'd upon as the standing measure of other Commodities, Men consider and speak of it still, as if it were a standing measure, though when it has varied its quantity, 'tis plain it is not.
10. But the value or price of all Commodities, amongst which Money passing in Trade is truly one, consisting in proportion, you alter this, as you do all other proportions, whether you increase one, or lessen the other.
11. In all other Commodities, the Owners when they design them for Traffick, endeavour as much as they can to have them vented and gone, i.e. removed out of the reach of Commerce, by Consumption, Exportation, or laying up: But Money never lying upon Peoples Hands, or wanting Vent, (for any one may part with it in Exchange when he pleases;) the provident publick, and private care, is to keep it from Venting or Consuming, i.e. from Exportation which is its proper Consumption; and from Hoarding up by others, which is a sort of Ingrossing. Hence it is that other Commodities have sometimes a quicker, sometimes a slower Vent: For no body lays out his Money in them but according to the use he has of them, and that has bounds. But every body being ready to receive Money without bounds, and keep it by him, because it answers all things: Therefore the Vent of Money is always sufficient, or more than enough. This being so, its quantity alone is enough to regulate and determine its value, without considering any Proportion between its quantity and vent, as in other Commodities.
12. Therefore the lessening of Use, not bringing one Penny of Money more into the Trade or Exchange of any Country, but rather drawing it away from Trade, and so making it less, does not at all sink its Value, and make it buy less of any Commodity, but rather more.
13. That which raises the natural Interest of Money, is the same that raises the Rent of Land, (i.e.) its aprness to bring in Yearly to him that manages it, a greater Overplus of Income above his Rent, as a Reward to his Labour. That which causes this in Land is the greater quantity of its Product, in proportion to the same Vent of that particular Fruit, or the same quantity of Product, in proportion to a greater Vent of that single Commodity: but that which causes increase of Profit to the Borrower of Money, is the less quantity of Money, in proportion to Trade, or to the Vent of all Commodities, taken together, vice versa.
14. The natural Value of Money, as it is apt to yield such an yearly Income by Interest, depends on the whole quantity of the then passing Money of the kingdom, in proportion to the whole Trade of the Kingdom, (i.e.) the general Vent of all the Commodities. But the natural Value of Money, in exchanging for any one Commodity, is the quantity of the Trading Money of the Kingdom, design'd for that Commodity, in proportion to that single Commodity and its Vent. For though any single Man's Necessity and Want either of Money, or any species of Commodity, being known, may make him pay dearer for Money, or that Commodity: Yet this is but a particular Case, that does not at the same time alter this constant and general Rule.
15. That supposing Wheat a standing Measure, that is, That there is constantly the same quantity of it in proportion to its Vent, we shall find Money to run the same variety of Changes in its Value, as all other Commodities do. Now that Wheat in England does come nearest to a standing Measure, is evident, by comparing Wheat with other Commodities, Money, and the Yearly Income of Land in Hen. 7. time and now. For supposing that primo Hen. 7. N. let 100 Acres of Land to A. for 6 d per An. per Acre, Rack-rent; and to B. another 100 Acres of Land, of the same Soil and yearly worth with the former, for a Bushel of Wheat per Acre, Rack-rent, (a Bushel of Wheat about that time being probably sold for about 6 d.) it was then an equal Rent. If therefore these Leases were for Years yet to come, 'tis certain that he that paid 6 d. per Acre, would pay now 50 s. per An. and he that paid a Bushel of Wheat per Acre, would pay about 25 l. per An. which would be near about the yearly Value of the Land, were it to be let now. The reason whereof is this, That there being ten times as much Silver now in the World, (the Discovery of the West-Indies having made the Plenty) as there was then, it is Nine Tenths less worth now than it was at that time; that is, it will exchange for Nine Tenths less of any Commodity now, which bears the same proportion to its Vent as it did 200 years since; which, of all other Commodities, Wheat is likeliest to do. For in England, and this part of the World, Wheat being the constant and most general Food, not altering with the Fashion, nor growing by chance; but as the Farmers sow more or less of it, which they endeavour to proportion, as near as can be guessed, to the Consumption, abstracting the Over-plus of the precedent Year in their Provision for the next; and vice versa, it must needs fall out, that it keeps the nearest Proportion to its Consumption, (which is more studied and designed in this than other Commodittes) of any thing, if you take it for 7 or 20 Years together: Tho' perhaps the Plenty or Scarcity of one Year, caused by the Accidents of the Season, may very much vary it from the immnediately precedent, or following. Wheat therefore, in this part of the World, (and that Grain which is the constant general Food of any other Country) is the fittest Measure to judge of the altered Value of things in any long tract of Time: And therefore Wheat here, Rice in Turkey, c. is the fittest thing to reserve a Rent in, which is designed to be constantly the same for all future Ages. But Money is the best Measure ofthe alter'd Value of things in a few Years: Because its Vent is the same, and its quantity alters slowly. But Wheat, or any other Grain, cannot serve instead of Money: Because of its Bulkiness and too quick Change of its quantity. For had I a Bond, to pay me 100 Bushels of Wheat next Year, it might be three Fourths Loss or Gain to me; too great an Inequality and Uncertainty to be ventured in Trade, Besides the different Goodness of several Parcels of Wheat in the same Year.
16. That supposing any Island separate from the Commerce of the rest of Mankind, if Gold and Silver, or whatever else, (so it be lasting) be their Money, if they have but a certain quantity of it, and can get no more, that will be a steady standing Measure of the Value of all other things.
17. That if in any Country they use for Money any lasting Material, whereof there is not any more to be got, and so cannot be increas'd; or being of no other use, the rest of the World does not value it, and so it is not like to be diminished; this also would be a steady standing Measure of the Value of other Commodities.
18. That in a Country where they had such a standing Measure, any quantity of that Money (if it were but so much that every body might have some) would serve to drive any proportion of Trade, whether more or less, there being Counters enough to reckon by, and the value of the Pledges being still sufficient, as constantly encreasing with the Plenty of the Commodity. But these three last, being built on Suppositions that are not like to be found in the Practice of Mankind, since Navigation and Commerce have brought all parts acquainted with one another, and introduced the use of Gold and Silver Money into all Trading parts of the World; they serve rather to give us some light into the nature of Money, than to teach here a new Measure of Traffick. Though it be certain, that that part of the World, which bred most of our Gold and Silver, used least of it in exchange, and used it not for Money at all.
19. That therefore in any Country that hath Commerce with the rest of the World, it is almost impossible now to be without the use of Silver Coin; and having Money of that, and Accounts kept in such Money, it is impossible to have any standing, unalterable measure of the value of things. For whil'st the Mines supply to Mankind more than wastes and consumes in its use, the quantity of it will daily grow greater in respect of other Commodities, and its value less.
20. That in a Country that hath open Commerce with the rest of the World, and uses Money made of the same Materials with their. Neighbours, any quantity of that Money will not serve to drive any quantity of Trade; but there must be a certain proportion between their Money and Trade. The reason whereof is this, because to keep your Trade going without loss, your Commodities amongst you, must keep an equal, or, at least, near the Price of the same Species of Commodities in the Neighbour Countries: Which they cannot do, if your Money be far less than in other Countries; for then, either your Commodities must be sold very cheap, or a great part of your Trade must stand still; there not being Money enough in the Country to pay for them (in their shifting of hands) at that high price, which the Plenty, and consequently low Value of Money makes them at in another Country. For the Value of Money in general is the quantity of all the Money in the World, in proportion to all the Trade: But the value of Money in any one Country, is the present quantity of the Current Money in that Country, in proportion to the present Trade. Supposing then, that we had now in England but half as much Money, as we had seven Years ago, and yet had still as much yearly Product of Commodities, as many Hands to work them, and as many Brokers to disperse them, as before; and that the rest of the World we Trade with, had as much Money, as they had before, (for 'tis likely they should have more by our Moiety shared amongst them) 'tis certain, that either half our Rents should not be paid, half our Commodities not vented, and half our Labourers not imployed, and so half the Trade be clearly lost; or else, that every one of these must receive but half the Money, for their Commodities and Labour, they did before, and but half so much as our Neighbours do receive for the same Labour and the same natural Product, at the same time. Such a state of Poverty as this, though it will make no scarcity of our Native Commodities amongst us, yet it will have these ill consequences.
1. It will make our Native Commodities vent very cheap.
2. It will make all Foreign Commodities very dear, both which will keep us Poor. For the Merchant making Silver and Gold his Measure, and considering what the Foreign Commodity costs him (i.e. how many Ounces of Silver) in the Country where Money is more Plenty, i.e. Cheaper; and considering too, how many Ounces of Silver it will yield him in another Country, will not part with it here, but for the same quantity of Silver, or as much as that Silver will buy here of our Commodity, which will be a great deal more than in another place. So that in all our exchange of Native for Foreign Commodities, we shall pay double the Value that any other Country does, where Money is in greater Plenty. This indeed will make a dearness, and, in time, a scarcity of Foreign Commodities; which is not the worst inconveniency that it brings upon us, supposing them not absolutely necessary. But,
3. It endangers the drawing away our People, both Handicrafts, Mariners, and Soldiers, who are apt to go where their Pay is best, which will always be where there is greatest plenty of Money; and in time of War, must needs bring great distress.
21. Upon this Measure too it is, That the variation of exchange of Money, between several Countries, does somewhat depend. For it is certain, that one Ounce of Silver is always of equal value to another Ounce of Silver considered in its Intrinsick worth, or in reference to the universal Trade of the World: But 'tis not of the same value at the same time, in several parts of the World, but is of most worth in that Country where there is the least Money, in proportion to its Trade: And therefore Men may afford to give 20 Ounces of Silver in one place, to receive 18 or 19 Ounces of Silver in another. But this is not all: To this then, (to find out the alteration of the exchange) the over-ballance of the Trade must be taken into consideration. These two together regulate the exchange in all the Commerce of the World, and in both the higher rate of exchange depends upon one and the same thing, viz. the greater plenty of Money in one Country, than in the other; Only with this difference, that where the over-ballance of Trade raises the exchange above the Par, there it is the plenty of Money, which private Merchants have in one Country, which they desire to remove into another: But where the Riches of the Country raises the exchange above the Par, there it is the plenty of the Money in the whole Country. In one the Merchant has more Money (or Debts, which is all one) in a Foreign Country than his Trade there will employ, and so is willing to allow upon exchange to him abr that shall pay him ready Money at home, 1, 2, 3, c. per Cent. more or less, proportionably as his or his Countrymens plenty of ready Money abr the danger of leaving it there, or the difficulty of bringing it home in Specie, and his present need of Money at home is greater or less: In the other, the whole Country has more Money, than can well be imploy'd in the Trade thereof, or at least, the proportion of the Money to the Trade is greater than in the Neighbouring Country, where the exchange is below the Par.
For, supposing the ballance of Trade to be equal between England and Holland, but that there is in Holland a greater plenty of Money, than in England, (which will appear by the lowness of the Natural Use in Holland, and the heighth of the Natural Use in England; and also by the dearness of Food and Labour in general in Holland, and the cheapness of it in England.) If N. has Ten thousand pounds in Holland, which the greater Advantage he could make of it in England, either by Use, or Purchase, tempts him to transfer into England, 'tis probable he will give as much to a Merchant in Holland to pay him Ten thousand pounds in England, as the ensurance at that time between Holland and England is worth. If this happen to be in a Country, where the Exportation of Bullion is Prohibited, he must pay the more: Because his Venture, ifhe carry it in Specie, will be greater. And, upon this ground, perhaps, the Prohibiting the Exportation of Money out of England, under Penalties, may be of some use, by making the rate of the exchange greater to those Countries, which Import upon us more, than they Export in Commodities; and so retain some part of the Money which their over-ballance of Trade would carry away from us, though after all, if we are over-ballanc'd in Trade it must go.
But, since the Holland Merchant cannot receive N's Ten thousand pounds in Money in Holland, and pay him Ten thousand pounds in England, unless his over-ballance of Trade make English-Men indebted to him Ten thousand pounds in Money, which he is not like to take in Commodities. I think the over-ballance of Trade is that which chiefly raises the exchange in any Country, and that plenty of Money in any Country does it only for so much of the Money as is transfer'd either to be let out to Use, or to be spent there. And though Lending to Foreigners, upon Use, doth not at all alter the ballance of Trade between those Countries, yet it does alter the exchange between those Countries for so much as is lent upon Use, by not calling away the Money, that should follow the over-ballance of Trade, but letting it rest there, as if it were accounted for; all one as if the ballance of Trade were for so much altered. But this being not much in comparison of the general Traffick between two Nations, or at least varying slower, the Merchant too regulating the exchange, and not the Usurer. I suppose it is the present ballance of Trade, on which the exchange immediately and chiefly depends, unless some accident shall make a great deal of Money be remitted at the same time, from one place to another, which will for that time raise the exchange all one as an over-ballance of Trade; and indeed, when examin'd is generally very little different from it.
To be able to estimate the Par with the rise and fall of the exchange, it is necessary to know the intrinsick value, i.e. how much Silver is in the Coins of the two Countries, by which you reckon and charge the Bill of Exchange.
Sir, If I have been led a little too far from one thing to another, in the consideration of Money, I beg your Pardon, hoping that these Particulars will afford some light to our present Subject.
To return to the Price of Land, 'Tis evident by what has been above-said, That the Years Purchase of Land do not increase with the fall of Interest, and the abating that good quality in Money of yielding Yearly Six per Cent. to Four, does not presently so sink its Value, in respect of Land, that One Third more is required in exchange: Falling of Interest from Six to Four, will not raise Land from Twenty to Thirty years Purchase. The rising and falling of the Price of Land, as of other things, depends much on the quantity of Land, set to Sale, compar'd with the quantity of Money design'd for that Traffick, or which amounts to the same thing, upon the number of Buyers and Sellers. For where there are many Sellers and few Purchasers, though Interest be lessened, Land will be cheap, as I have already shew'd. At least, this is certain, That making a Law to reduce Interest, will not raise the Price of Lands: It will only, by driving it more into the Bankers Hands, leave the Country barer of Money, whereby, if the price of Land about London, should be accidentally raised, that of remoter Counties would thereby have fewer Purchasers, and at lower Rates.
This being so, that the low rate of Land depends much on the great number of Sellers in proportion to Purchasers, the next thing to be inquir'd into, is, What makes plenty of Sellers? and to that the Answer is obvious, general ill Husbandry, and the consequence of it, Debts. If a neglect of Government and Religion, ill Examples, and depraved Education, have introduc'd Debauc'hery. and Art or Chance has made it fashionable for Men to live beyond their Estates, Debts will increase and multiply, and draw with them a necessity on Men, first of Incumbring, and then Selling their Estates. This is generally the cause why Men part with their Land: And I think there is scarce one of an hundred, that thinks of Selling his Patrimony, till Mortgages have pretty well Eat into the Freehold; and the weight of growing Debts force a Man, whether he will or no, out of his Possessions. When almost is there ever a clear and unincumbred Estate set to Sale? 'Tis seldom a thriving Man turns his Land into Money to make the greater advantage: The Examples of it are so rare, that they are scarce of any Consideration in the number of Sellers.
This I think may be the Reason, why in Queen Elizabeth's days (when Sobriety, Frugality, and Industry, brought in daily Increase, to the growing Wealth of the Kingdom) Land kept up its Price, and Sold for more Years Purchase, than corresponded to the Interest of Money, then busily imploy'd in a thriving Trade, which made the natural Interest much higher than it is now, as well as the Parliament then set it higher by Law.
On the contrary side, what makes scarcity of Purchasers?
1. The same Reason, Ill Husbandry. When the Tradesman lives up to the heighth of his Income, and the vanity of Expences either drains the Merchants Coffers, or keeps them from over-flowing, he seldom thinks of Purchasing. Buying of Land is the result of a full and satiated Gain: And Men in Trade seldom think of laying out their Money upon Land, till their Profit has brought them in more, than their Trade can well employ; and their idle Bags cumbring their Counting Houses, put them upon emptying them on a Purchase.
2. Another thing that makes a scarcity of Buyers of Land, are doubtful and ill Titles: Where these are frequent and fatal, one can no more expect, that Men, who have Money, should be forward to Purchase, than Ships richly laden to venture themselves amongst Rocks and Quicksands. 'Tis no wonder such Seas should not be much frequented, where the Examples, and remains of daily Wrecks, shew the folly, and hazard of the Venture, in the number of those who have Miscarried.
3. A general decay ofTrade discourages Men from Purchasing: For this threatens an Universal Poverty, which is sure to fall first and heaviest upon Land. The Merchant who furnishes the improvident Landholder, will not fail to have Money for his Wares with Gain, whether the Kingdom get by his Trade or no; and he will keep his Money rather employed in Trade, which brings him in profit, (for the Merchant may get by a Trade that makes the kingdom Poor) than lay it out in Land, whose Rents he sees sinking, and foresees by the course of Trade, is likely to continue on to do so: When a Nation is running to decay and ruin, the Merchant, and Monied Man, do what you can, will be sure to starve last: Observe it where you will, the decays that come upon, and bring to Ruin any Country, do constantly first fall upon the Land: And though the Country Gentleman, (who usually securely relies upon so much a Year as was given in at his Marriage Settlement, and thinks his Land an unmoveable Fund for such an Income) be not very forward to think so: Yet this nevertheless is an undoubted truth, that he is more concern'd in Trade, and ought to take a greater care, that it be well manag'd, and preserv'd, than even the Merchant himself. For he will certainly find, when a decay of Trade has carried away one part of our Money out of the kingdom, and the other is kept in the Merchant and Tradesman's Hands, that no Laws he can make, nor any little Arts of Shifting Property amongst our selves, will bring it back to him again; but his Rents will fall, and his Income every day lessen, till general Industry, and Frugality join'd to a well order'd Trade, shall restore to the kingdom the Riches and Wealth it had formerly.
This by the way, if well consider'd might let us see, that Taxes, however contriv'd, and out of whose Hand soever immediately taken, do in a Country, where their great Fund is in Land, for the most part terminate upon Land. Whatsoever the People is chiefly maintained by, that the Government supports it self on: Nay, perhaps it will be found, that those Taxes which seem least to affect Land, will most surely of all other, fall the Rents. This would deserve to be well considered in the raising of Taxes, lest the neglect of it bring upon the Country Gentleman an Evil which he will be sure quickly to feel, but not be able very quickly to remedy. For Rents once fallen are not easily raised again. A Tax laid upon Land seems hard to the Landholder, because it is so much Money going visibly out of his Pocket: And therefore as an ease to himself, the Landholder is always forward to lay it upon Commodities. But if he will throughly consider it, and examine the Effects, he will find he Buys this seeming Ease at a very dear rate: And though he pays not this Tax immediately out ofhis own Purse, yet his Purse will find it by a greater want of Money there at the end of the year, than that comes to, with the lessening of his Rents to boot; which is a settled and lasting evil, that will stick upon him beyond the present Payment.
To make this clear, let us suppose in the present State of Affairs in England, that the Rents of England are Twelve Millions, and that the Charge and Necessities of the Government requires a supply of Three Millions from the Parliament, which is laid on Land. Here is one fourth part of his Yearly Income goes immediately out of the Landlords and Landholders Pocket. This is a Burthen very apt to be felt. The Country Gentleman, who actually pays the Money out of his Pocket, or finds it deducted out of his Rent at Quarter-day for Taxes, sees and very sensibly observes what goes thus out of his Estate. But though this be a Quarter of his yearly Income, and out of an Estate of Four hundred pounds a Year, the publick Tax now openly takes away One hundred: Yet this influences not at all the yearly Rent of the Land, which the Rack-renter, or under Tenant pays: It being the same thing to him, whether he pays all his Rent to the King, or his Landlord, or half, or a quarter, or none at all to the King; the Case is all one to him, what Hand receives his Rent, when due: So Trade Nourishes, and his Commodities go off well, he will be able to pay his Rent on. This lessens not any more the Value of his Farm, than an high or a low chief Rent does paid out of it to the Lord of the Fee: The Tenant's Bargain and Profit is the same, whether the Land be charg'd, or not charg'd with an Annuity payable to another Man. We see this in College Leases, where though the College Tenant pays for it to the College some years five times as much as he does others, upon the varying Rate of Corn: Yet the Under Tenant feels not this Alteration in the least, nor finds a Reason to have his Rent abated, because a greater part of it is diverted from his Landlord. All this is but changing the Hand, that receives the Rent, without any influence at all upon the yearly Value of the Estate; which will not be let for one Penny more or less to the Renter, however, or amongst whomsoever, the Rent he pays, be divided. From hence it is evident, That Taxes laid on Land do not in the least make Rents fall.
But suppose, to shift off the Burthen from the Land, some Country Gentlemen should think fit to raise these three Millions upon Commodities, to let the Land go free. First, it is to be consider'd, That since the publick Wants require three Millions, (for that we supos'd for Argument sake; let it be three Millions, or one Million, that's all one;) and so much must go into the King's Coffers; or else the Necessities of the Government will not be supplied; That for raising these three Millions on Commodities, and bringing so much into the Exchequer, there must go a great deal more than three Millions out of the Subjects Pockets. For a Tax of that nature cannot be levied by Officers, to watch every little Rivulet of Trade, without a great Charge, especially at first trial. But supposing no more Charge in raising it, than of a Land Tax, and that there are only three Millions to be paid, 'tis evident that to do this out of Commodities, they must to the Consumer be raised a quarter in their Price; so that every thing, to him that uses it, must be a quarter dearer. Let us see now who at long run must pay this quarter, and where it will light. 'Tis plain, the Merchant and Broker, neither will nor can; for if he pays a quarter more for Commodities than he did, he will sell them at a Price proportionably raised. The poor Labourer and Handicraftsman cannot: For he just lives from hand to mouth already, and all his Food, Clothing and Utensils, costing a quarter more than they did before, either his Wages must rise with the Price of things, to make him live; or else, not being able to maintain himself and Family by his Labour, he comes to the Parish; and then the Land bears the Burthen a heavier way. If the Labourer's Wages be rais'd in proportion to the encreas'd Rates of things, the Farmer, who pays a quarter more for Wages, as well as all other things, whilst he sells his Corn and Wool, either at the same rate, or lower, at the Market, (since the Tax laid upon it makes People less forward to buy) must either have his Rent abated, or else break and run away in his Landlord's Debt: And so the yearly Value of the Land is brought down. And who then pays the Tax at the Years end, but the Landlord: When the Tenant, not able to raise his Rent by his Commodities, either runs away in his Landlord's Debt, or cannot be continued in the Farm without abatement of Rent? For when the yearly charge in his Farm is greater by the increase of the Labourers Wages, and yet his product Sells cheaper by reason of the Tax laid on his Commodities; how will the Farmer be able to make up his Rent at Quarter-Day? For this may be worth our Notice, that any Tax laid on Foreign Commodities in England, raises its price, and makes the Importer get more for his Commodity. But on the contrary a Tax laid on your Native Product, and home-made Commodities, lessens their price, and makes them yield less to the first Seller.
The Reason whereof is plain. For the Merchant Importing no Commodity but what the necessity, or fashionable Wantonness of your People gives him Vent for, will not only proportion his Gain, to the Cost and Risque which he has been at before Landing; but will expect profit of his Money paid here, for any Tax laid on it; and take advantage from thence to raise his price above what his Tax comes to; and if he cannot do that, he will Trade no more in that Commodity. For it being not the Product of his Farm, he is not tied to bring it to Market, if he finds its price not answer his Expectation there, but turns himself to other Wares, which he finds your Markets take off better. A Merchant will never continue to Trade in Wares, which the change of Fashion, or Humour, amongst your People, has made less vendible, though he may be sometimes caught by a sudden alteration. But that seldom happens in the course of Trade, so as to influence the great bulk of it. For things of Necessity must still be had, and things of Fashion will be had as long as Men have Money or Credit, whatever Rates they cost, and the rather because they are dear. For it being Vanity not Use that makes the Expensive Fashion of your People, the Emulation is, who shall have the finest, that is, the dearest things, not the most convenient or useful. How many things do we value or buy, because they come at dear rates from Japan and China, which if they were our own Manufacture or Product, common to be had, and for a little Money, would be contemned and neglected? Have not several of our own Commodities offered to Sale at reasonable Rates been despised, and the very same eagerly bought and brag'd of, when sold for Fiench at a double Price? You must not think therefore that the raising their Price will lessen the Vent of Fashionable Foreign Commodities amongst you, as long as Men have any way to purchase them, but rather increase it. French Wine is become a Modish Drink amongst us, and a Man is asham'd to Entertain his Friend, or almost to Dine himself Without it. The Price is in the Memory of Man rais'd from 6 d. to 2 s. and does this hinder the Drinking of it? No, the quite contrary, a Man's way of Living is commended, because he will give any Rate for it: And a Man will give any Rate rather than pass for a poor Wretch, or Penurious Curmudgeon, that is not able or knows not how to live well, nor use his Friends civilly. Fashion is for the most part nothing but the Ostentation of Riches, and therefore the high price of what serves to that, rather increases than lessens its Vent. The contest and glory is in the Expence, not the Usefulness of it; and People are then thought, and said to live well, when they can make a shew of rare and foreign things, and such as their Neighbours cannot go to the Price of.
Thus we see how Foreign Commodities fall not in their Price by Taxes laid on them, because the Merchant is not necessitated to bring to your Market any but Fashionable Commodities, and those go off the better for their high rate. But on the contrary your Landholder being forced to bring his Commodities to Market, such as his Land and Industry affords them, common and known things, must sell them there at such price as he can get. This the buyer knows; and these home-bred Commodities being seldom, the Favourites of your People, or any farther acceptable, than as great conveniency recommends them to the Vulgar, or downright necessity to all, as soon as a Tax is laid on them, every one makes as sparing a use of them as he can, that he may save his Money for other necessary, or creditable Expences, whereby the price they yield the first Seller is mightily abated, and so the yearly value of the Land, which produces them, lessen'd too.
If therefore the laying of Taxes upon Commodities does, as it is evident, affect the Land, that is out at Rack-rent, it is plain it does equally affect all the other Land in England too, and the Gent. will, but the worst way, increase their own Charges, that is by lessening the Yearly Value of their Estates, if they hope to ease their Land, by charging Commodities. It is in vain in a Country whose great Fund is Land, to hope to lay the publick charge of the Government on any thing else; there at last it will terminate. The Merchant (do what you can) will not bear it, the Labourer cannot, and therefore the Landholder must: And whether he were best do it, by laying it directly, where it will at last settle, or by letting it come to him by the sinking of his Rents, which when they are once fallen every one knows are not easily raised again, let him consider.
Holland is brought as an instance of laying the Charge of the publique upon Trade, and 'tis possibly (excepting some few small Free Towns) the only place in the World that could be brought to favour this way. But yet when examin'd will be found to shew the quite contrary, and be a clear Proof, that lay the Taxes how you will, Land every where, in proportion, bears the greater share of the burthen. The publick Charge of the Government, 'tis said, is, in the United Provinces, laid on Trade. I grant it is, the greatest part of it; But is the Land Excus'd or Eas'd by it? By no means, but on the contrary so ld, that in many places half, in others a quarter, in others one eighth of the Yearly value does not come into the owners Pocket: And if I have not been misinformed, the Land in some places will not pay the Taxes: So that we may say, that the Charge of the Government came not upon Commodities till the Land could not bear it. The burthen unavoidably settles upon the Land first, and when it has pressed it so, that it can yield no more, Trade must be brought in in aid to help to support the Government rather than let all sink: But the first stress is always upon Land, and as far as that will reach, it is unavoidably carried, lay your Taxes how you will. 'Tis known what a share of the publick charges of the Government is supported by the Trade of Amsterdam alone, as I remember that one Town pays Thirty-six in the Hundred of all the publick Taxes raised in the United Provinces. But are the Lands of Guelderland eas'd by it? Let any one see in that Country of Land more than Trade, what they make clear of their Revenues, and whether the Country Gentlemen there grow rich on their Land, whilst the Merchant having the Taxes laid on his Commerce is impoverish'd? On the contrary Guelderland is so low and out of Cash, that Amsterdam has been fain for many Years to lay down the Taxes for them, which is, in effect, to pay the Taxes of Guelderland too.
Struggle and contrive as you will, lay your Taxes as you please, the Traders will shift it off from their own Gain; the Merchants will bear the least part of it, and grow poor last. In Holland it self, where Trade is so ld, who, I pray, grows richest, the Land-holder or the Trader? Which of them is pinch'd, and wants Money most? A Country may thrive, the Country Gentleman grow rich, and his Rents encrease (for so it has been here) whilst the Land is Taxed: But I challenge any one to shew me a Country, wherein there is any considerable publick Charge raised, where the Land does not most sensibly feel it, and in proportion bear much the greater part of it.
We must not therefore impute the falling of the Rents, or of the price of Land, to high Interest; Nor, if ill Husbandry has wasted our Riches, hope by such kind of Laws to raise them to their former value. I humbly conceive we shall in vain endeavour it by the fall of Interest: The number of Buyers must be increased, and Sellers lessen'd, which must be done by other ways, than regulating of Interest, or else the Landed-man will neither find Chapmen for his Land, nor for the Corn that grows on it, at the rate he desires.
But could an Act of Parliament, bring down Interest to Four per Cent. and the lowering of that immediately raise the Purchasers Fine from 20 to 25 Years Purchase; yet it may be doubted, whether this be fit to be made into a Law, because it would be of no advantage to the Kingdom. For what profit would it be to the Nation to make a Law, that he who sells Land should instead of Four have Five hundred pounds of the Purchaser? This indeed a little alters the distribution of the Money, we have amongst us Englishmen here at home, but neither helps to continue what we have, nor brings in more from abr Which being the only concernment of the Kingdom, in reference to its Wealth, is apt to be supposed by us without doors to be the only care of a Parliament. For it matters not, so it be here amongst us, whether the Money be in Thomas or Richards Hands, provided it be so order'd, that, whoever has it, may be encouraged to let it go into the current of Trade, for the improvement of the general stock, and wealth of the Nation.
As this increase of the Fine in the purchase of Land is not an advantage to the kingdom, so neither is it to the Landholder, who is the person, that bearing the greatest part of the burthens of the Kingdom, ought, I think, to have the greatest care taken of him, and enjoy as many Privileges, and as much Wealth, as the favour of the Law can (with regard to the Publick-weal) confer upon him. But pray consider: The raising the Price of Land in Sale by increasing the number of Years Purchase to be paid for it, gives the advantage not to the Landholder, but to him that ceases to be so. He that has no longer the Land has the more Money, and he who has the Land is the poorer. The true advantage of the Landholder is, that his Corn, Flesh, and Wool, sell better, and yield a greater price; this indeed is a profit, that benefits the owner of the Land, and goes along with it: It is this alone raises the Rent, and makes the Possessor richer: and this can only be done by increasing our Wealth, and drawing more Money into England, which the falling of Interest, and thereby (if it could effect it) raising the Purchase of Land is so far from doing, that it does visibly and directly one way hinder our increase of Wealth, that is, by hindring Foreigners to come here, and buy Land, and settle amongst us. Whereby we have this double loss; First we lose their Persons, increase of People being the increase both of Strength and Riches. Secondly we lose so much Money. For tho' whatever an Englishman gives to another for Land, though raised to Forty Years Purchase, be not one Farthing advantage to the kingdom; yet whatever a Foreigner, who purchases Land here, gives for it, is so much every Farthing clear gain to the Nation: For that Money comes clear in, without carrying out any thing for it, and is every Farthing of it as perfect Gain to the Nation as if it drop'd down from the Clouds.
But farther, if consideration be to be had only of Sellers of Land, the lowering of Interest to Four per Cent. will not be in their favour, unless, by it, you can raise Land to Thirty Years Purchase, which is not at all likely: And I think no Body by falling of Interest to Four per Cent. hopes to get Chapmen for their Land at that Rate. Whatsoever they have less, if Law can regulate Interest, they lose of their value of Land, Money being thus abased. So that the Landed man will scarce find his account neither by this Law, when it comes to trial. And at last, I imagine, this will be the result of all such Attempts, that Experience will shew, that the price of Things will not be regulated by Laws, though the endeavours after it will be sure to prejudice and inconvenience Trade, and put your Affairs out of Order.
If this be so, that Interest cannot be regulated by Law, or that if it could, yet the reducing of it to Four per Cent. would do more harm than good: What then should there (will you say) be no Law at all to regulate Interest? I say not so. For,
1. It is necessary that there should be a stated Rate of Interest, that in Debts and Forbearances, where Contract has not setled it between the Parties, the Law might give a Rule, and Courts of Judicature might know what Damages to allow. This may, and therefore should, be Regulated.
2. That in the present current of running Cash, which now takes its course almost all to London, and is Ingrossed by a very few Hands in Comparison, young Men, and those in Want, might not too easily be exposed to Extortion and Oppression; and the dextrous and combining Money Jobbers not have too great and unbounded a Power, to Prey upon the Ignorance or Necessity of Borrowers. There would not be much danger of this, if Money were more equally distributed into the several quarters of England, and into a greater number of Hands, according to the Exigences of Trade.
If Money were to be hired, as Land is; or to be had as Corn, or Wool, from the Owner himself; and known good security be given for it, it might then probably be had at the Market (which is the true) Rate, and that rate of Interest would be a constant gauge of your Trade and Wealth. But when a kind of Monopoly, by consent, has put this general Commodity into a few Hands, it may need Regulation, though what the stated Rate of Interest should be in the constant change of Affairs, and flux of Money, is hard to determine. Possibly it may be allowed as a reasonable Proposal, that it should be within such Bounds, as should not on the one side quite Eat up the Merchants, and Tradesman's Profit, and discourage their Industry; nor on the other hand so low, as should hinder Men from Risquing their Money in other Mens Hands, and so rather chuse to keep it out of Trade, than venture it upon so small profit. When it is too high, it so hinders the Merchants gain, that he will not Borrow; when too low, it so hinders the Monied Man's profit, that he will not Lend; and both these ways it is a hinderance to Trade.
But this being perhaps too general, and loose a Rule, let me add, that if one would consider Money and Land alone, in relation one to another, perhaps it is now at Six per Cent. in as good a proportion as is possible, Six per Cent. being a little higher than Land, at Twenty Years Purchase, which is the Rate pretty near, that Land has generally carried in England, it never being much over nor under. For supposing 100 l. in Money, and Land of 5 l. per Annum, be of equal value, which is Land at Twenty Years Purchase: 'Tis necessary for the making their value truly equal, that they should produce an equal Income, which the 100 l. at 5 l. per Cent. Interest is not likely to do.
1. Because of the many, and sometimes long intervals of Barrenness, which happen to Money, more than Land. Money at Use, when return'd into the Hands of the Owner, usually lies dead there, till he gets a new Tenant for it, and can put it out again; and all this time it produces nothing. But this happens not to Land, the growing product whereof turns to account to the Owner, even when it is in his Hands, or is allow'd for by the Tenant, antecedently to his entring upon the Farm. For though a Man that Borrows Money at Midsummer, never begins to pay his Interest from our Lady-Day, or one moment backwards, yet he who Rents a Farm at Midsummer, may have as much reason to begin his Rent from our Lady-Day, as if he had then entred upon it.
2. Besides the dead intervals of ceasing Profit, which happen to Money more than Land, there is another Reason, why the Profit and Income of Money let out, should be a little higher than that of Land; and that is, because Money out at Interest runs a greater Risque, than Land does. The Borrower may break, and run away with the Money, and then not only the Interest due, but all the future Profit, with the Principal, is lost for ever. But in Land a Man can lose but the Rent due, for which usually too the Stock upon the Land is sufficient security: And if a Tenant run away in Arrear of some Rent, the Land remains, that cannot be carried away, or lost. Should a Man Purchase good Land in Middlesex of 5 l. per Annum, at Twenty Years Purchase, and other Land in Rumney-Marsh, or elsewhere of the same Yearly value, but so situated, that it were in danger to be swallowed of the Sea, and be utterly lost, it would not be unreasonable, that he should expect to have it under Twenty Years Purchase; suppose Sixteen and an half. This is to bring it to just the case of Land at Twenty Years Purchase, and Money at Six per Cent. where the uncertainty of securing ones Money may well be allowed that advantage of greater Profit; and therefore perhaps the legal Interest now in England at Six per Cent. is as reasonable and convenient a Rate as can well be set by a standing Rule, especially if we consider that the Law requires not a Man to pay Six per Cent. but ties up the Lender from taking more. So that if ever it falls of it self, the Monied-man is sure to find it, and his Interest will be brought down to it.
High Interest is thought by some a Prejudice to Trade: But if we look back, we shall find, that England never throve so well, nor was there ever brought into England so great an increase of Wealth since, as in Queen Elizabeth's and King James I. and King Charles I. time, when Money was at Ten and Eight per Cent. I will not say high Interest was the cause of it. For I rather think that our thriving Trade was the Cause ofhigh Interest, every one craving Money to employ in a profitable Commerce. But this I think I may reasonably infer from it, That lowering of Interest is not a sure way to improve either our Trade or Wealth.
To this I hear some say, That the Dutch, Skilful in all Arts of promoting Trade, to out-do us in this, as well as all other Advancements of it, have observed this Rule, viz, That when we fell Interest in England from Ten to Eight, they presently sunk Interest in Holland to Four per Cent. and again, when we lower'd it to Six they fell it to Three per Cent. thereby to keep the Advantage which the lowness of Interest gives to Trade. From whence these Men readily conclude, That the falling of Interest will advance Trade in England. To which I answer,
1. That this looks like an Argument, rather made for the present Occasion, to mislead those who are credulous enough to swallow it, than arising from true Reason, and matter of Fact. For if lowering of Interest were so advantageous to Trade, why did the Dutch so constancy take their measures only by us, and not as well by some other of their Neighbours, with whom they have as great or greater Commerce than with us? This is enough at first sight to make one suspect this, to be Dust only raised, to throw in Peoples eyes, and a Suggestion made to serve a Purpose. For,
2. It will not be found true, That when we abated Interest here in England to Eight, the Dutch sunk it in Holland to Four per Cent. by Law; or that there was any Law made in Holland to limit the Rate of Interest to Three per Cent. when we reduced it in England to Six. It is true, John de Witt, when he managed the Affairs of Holland, setting himself to lessen the publick Debt, and having actually paid some, and getting Money in a readiness to Pay others, sent notice to all the Creditors, That those who would not take Four per Cent. should come and receive their Money. The Creditors finding him in earnest, and knowing not how other Wise to employ their Money, accepted his Terms, and changed their Obligations into Four per Cent. whereas before they were at Five, and so (the great Loans of the Country being to the State) it might be said in this sense, That the Rate of Interest was reduced lower at that time: But that it was done by a Law, forbidding to take higher Interest than Four per Cent. that I deny, and require any one to shew. Indeed upon good Security one might lately have borrowed Money in Holland at Three, and Three and an half per Cent. but not by vertue of any Law, but the natural Rate of Interest. And I appeal to the Men learned in the Law of Holland, whether last Year (and I doubt not but it is so still) a Man might not lawfully lend his Money for what Interest he could get, and whether in the Courts he should not recover the Interest he contracted for, if it were Ten per Cent. So that if Money be to be borrowed by honest and responsible Men, at Three, or Three and an half per Cent. it is not by the force of Statutes and Edicts; but by the natural Course of things, which will always bring Interest upon good Security low, where there is a great deal ofMoney to be lent, and little good Security, in proportion, to be had. Holland is a Country where the Land makes a very little part of the Stock of the Country. Trade is their great Fund; and their Estates lie generally in Money: So that all, who are not Traders, generally speaking, are Lenders: Of which there are so many whose Income depends upon Interest, that if the States were not mightily in Debt, but paid every one their Principal, instead of the Four per Cent. Use, which they give, there would be so much more Money than could be used, or would be ventured in Trade, that Money there would be at Two per Cent. or under, unless they found a way to put it out in Foreign Countries.
Interest, I grant these Men, is low in Holland: But it is so not as an effect of Law, or the politick Contrivance of the Government, to promote Trade; but as the Consequence of great Plenty of ready Money, when their Interest first fell. I say when it first fell: For being once brought low, and the Publick having borrowed a great part of private Mens Money, and continuing in Debt, it must continue so though the Plenty of Money, which first brought Interest low, were very much decay'd, and a great part of their Wealth were really gone. For the Debt of the State affording to the Creditors a constant Yearly Income, that is look'd on as a safe Revenue, and accounted as valuable as if it were in Land; and accordingly they buy it one of another; and whether there be any Money in the publick Coffers or no, he, who has to the value of Ten thousand pounds owing him from the States, may sell it every day in the Week, and have ready Money for it. This Credit is so great an advantage to private Men, who know not else what to do with their Stocks, that were the States now in a condition to begin to pay their Debts, the Creditors, rather than take their Money out to lie dead by them, would let it stay in, at lower Interest, as they did some Years since, when they were call'd on to come and receive their Money. This is the state of Interest in Holland: Their plenty of Money, and paying their publique Debts, some time since lowered their Interest. But it was not done by the command and limitation of a Law, nor in consequence of our reducing it here by Law to Six per Cent. For I deny, that there is any Law there yet, to forbid lending of Money for above Three, or Six, or Ten per Cent. Whatever some here suggest, every one there may hire out his Money as freely as he does any thing else, for what rate he can get; and the Bargain being made, the Law will inforce the Borrower to pay it.
I grant low Interest, where all Men consent to it, is an advantage to Trade, if Merchants will regulate their Gains accordingly, and Men be perswaded to lend to them: But can it be expected, when the Publique gives Seven, or Eight, or Ten per Cent. that private Men, whose Security is certainly no better, shall have it for Four? And can there be any thing stranger, than that the same Men who look on, and therefore allow high Use as an encouragement to lending to the Chequer, should think low Use should bring Money into Trade? The States of Holland some few Years since, paid but Four per Cent. for the Money they owed: Ifyou propose them for an example, and Interest be to be regulated by a Law, try whether you can do so here, and bring Men to lend it to the Publique at that Rate. This would be a benefit to the kingdom, and abate a great part of our publique Charge. If you cannot do that, confess, that 'tis not the Law in Holland has brought the Interest there so low, but something else, and that which will make the States, or any body else pay dearer now, if either their Credit be less, or Money there scarcer.
An infallible sign of your decay of Wealth is the falling of Rents, and the raising of them would be worth the Nations Care: For in that, and not in the falling of Interest lies the true advantage of the Landedman, and with him of the Publick. It may be therefore not besides our present business, to enquire into the cause of the falling of Rents in England.
1. Either the Land is grown Barrener, and so the Product is less, and consequently the Money to be received for that Product is less. For it is evident that he whose Land was wont to produce 100 Bushels of Wheat communibus annis, if by long Tillage, and bad Husbandry it will now produce but 50 Bushels, the Rent will be abated half. But this cannot be suppos'd general.
2. Or the Rent of that Land is lessen'd. 1. Because the use of the Commodity ceases: As the Rents must fall in Virginia, were taking of Tobacco forbid in England. 2. Or because something else supplies the room of that Product: As the rate of Copis-lands will fall upon the discovery ofCoal Mines. 3. Or, because the Markets are supplied with the same Commodity, cheaper from another place. As the breeding Countries of England must needs fall their Rents, by the importation of Irish Cattle. 4. Or, because a Tax laid on your Native Commodities, makes what the Farmer sells, cheaper; and Labour, and what he buys dearer.
3. Or, the Money in the Country is less. For the exigencies and uses of Money not lessening with its quantity, and it being in the same proportion to be imploy'd and distributed still in all the parts of its circulation, so much as its quantity is lessen'd, so much must the share of every one, that has a right to this Money, be the less; whether he be Landholder, for his Goods; or Labourer, for his Hire; or Merchant, for his Brokage. Though the Landholder usually finds it first. Because Money failing, and falling short, People have not so much Money as formerly to lay out, and so less Money is brought to Market, by which the price of things must necessarily fall. The Labourer feels it next. For when the Landholder's Rent falls, he must either bate the Labourer's Wages, or not imploy, or not pay him; which either way makes him feel the want of Money. The Merchant feels it last. For though he sell less, and at a lower rate, he buys also our Native Commodities, which he Exports, at a lower rate too: and will be sure to leave our Native Commodities unbought, upon the Hands of the Farmer, or Manufacturer, rather than Export them to a Market, which will not afford him Returns with Profit.
If one Third of the Money imployed in Trade were lock'd up, or gone out of England, must not the Landholders necessarily receive one Third less for their Goods, and consequently Rents fall; A less quantity of Money by one Third being to be distributed amongst an equal number of Receivers? lndeed, People not perceiving the Money to be gone, are apt to be jealous one of another; and each suspecting anothers inequality of Gain to rob him of his share, every one will be imploying his skill, and power, the best he can, to retrieve it again, and to bring Money into his Pocket in the same plenty as formerly. But this is but scrambling amongst our selves, and helps no more against our want, than the pulling of a short Coverlet will, amongst Children, that lye together, preserve them all from the Cold. Some will starve, unless the Father of the Family provide better, and enlarge the scanty Covering. This pulling and contest is usually between the Landed-man and the Merchant. For the Labourer's share, being seldom more than a bare subsistence, never allows that body of Men time or opportunity to raise their Thoughts above that, or struggle with the Richer for theirs, (as one common Interest,) unless when some common and great Distress, uniting them in one universal Ferment, makes them forget Respect, and emboldens them to carve to their Wants with armed force: And then sometimes they break in upon the Rich, and sweep all like a deluge. But this rarely happens but in the mal-administration of neglected or mis-manag'd Government.
The usual struggle and contest, as I said before, in the decays of Wealth and Riches, is between the Landed Man and the Merchant, with whom I may here join the Monied Man. The Landed Man finds himself aggrieved, by the falling of his Rents, and the streightning of his Fortune; whilst the Monied Man keeps up his Gain, and the Merchant thrives and grows rich by Trade. These he thinks steal his Income into their Pockets, build their Fortunes upon his Ruin, and Ingross more of the Riches of the Nation than comes to their share. He therefore endeavours, by Laws, to keep up the value of Lands, which he suspects lessened by the others excess of Profit: But all in vain. The cause is mistaken, and the remedy too. 'Tis not the Merchants nor Monied Man's Gains that makes Land fall: But the want of Money and lessening of our Treasure wasted by extravagant Expences, and a mis-manag'd Trade, which the Land always first feels. If the Landed Gentleman will have, and by his example make it fashionable to have, more Claret, Spice, Silk, and other Foreign Consumable Wares, than our Exportation of Commodities does exchange for. Money must unavoidably follow to ballance the Account, and pay the Debt. And therefore I fear that another Proposal, I hear talked of, to hinder the Exportation of Money and Bullion, will shew more our need of care to keep our Money from going from us, than a way and method, how to preserve it here.
'Tis Death in Spain to export Money. And yet they, who furnish all the World with Gold and Silver, have least of it amongst themselves. Trade fetches it away from that lazy and indigent People, notwithstanding all their artificial and forced contrivances to keep it there. It follows Trade against the rigour of their Laws; and their want of Foreign Commodities makes it openly be carried out at Noon-Day. Nature has bestowed Mines on several parts of the World: But their Riches are only for the Industrious and Frugal. Whomever else they visit, 'tis with the Diligent and Sober only they stay. And ifthe Vertue, and provident way of Living of our Ancestors (content with our Native conveniences of Life, without the costly Itch after the Materials of Pride and Luxury from abr were brought in fashion and countenance again amongst us; this alone would do more to keep, and increase our Wealth, and inrich our Land, than all our Paper helps about Interest, Money, Bullion, c. which however eagerly we may catch at, will not, I fear, without better Husbandry, keep us from sinking, whatever contrivances we may have recourse to. 'Tis with a Kingdom, as with a Family. Spending less than our own. Commodities will pay for, is the sure and only way for the Nation to grow Rich. And when that begins once seriously to be consider'd, and our faces and steps are in earnest turn'd that way, we may hope to have our Rents rise, and the publick Stock thrive again. Till then, we in vain, I fear, endeavour with noise, and weapons of Law, to drive the Wolf from our own, to one anothers Doors: The Breed ought to be extirpated out of the Island. For Want, brought in by ill management, and nursed up by expensive Vanity, will make the Nation Poor, and spare no body.
If Three Millions were necessary for the carrying on the Trade of England, whereof One Million were for the Landholder, to maintain him; and another were for the payment of the Labourer and Handicraftsman; and the Third were the share of the Brokers, coming to them for their care and pains in distributing; If One Million of this Money were gone out of the Kingdom, must not there be One Third less to be shared amongst them for the product of their Land, their Labour and their Distribution? I do not say they will feel it at the same time. But the Landholder having nothing, but what the Product of his Land will yield; and the Buyer according to the Plenty or Scarcity of Money he has, always setting the Price upon what is offered to Sale; The Landholder must be content to take the Market-Rate, for what he brings thither, which always following the scarcity or plenty of Money, if any part of our Money be gone, he is sure first to find it in the price of his Commodities. For the Broker and Merchant, though he Sell cheaper, yet he Buys cheaper too: And he will be sure to get by his Returns, or let alone a Commodity, which will not produce him Gain: And whatsoever is so let alone, and left upon hands, always turns to the Landholders loss.
Supposing that of our Woollen Manufacture, Foreign Markets took off one half, and the other half were consumed amongst our selves: If a sensible part, (as One Third) of our Coin were gone, and so Men had equally One Third less Money than they had (for, 'tis certain, it must be tantamount, and what I 'scape of One Third less, another must make up) it would follow, That they would have less to lay out in Cloaths, as well as other things, and so would either wear them longer, or pay less for them. If a Clothier finds a want of Vent, he must either Sell cheaper or not at all: If he Sells cheaper, he must also pay less, both for Wool and Labour: And if the Labourer hath less Wages, he must also pay less for Corn, Butter, Cheese, Flesh, or else forbear some of these quite. In all which cases, the Price of Wool, Corn, Flesh, and the other Products of Land are brought down, and the Land bears the greatest part of the loss. For where-ever the Consumption or Vent of any Commodity is stopt, there the Stop continues on till it comes to the Landholder. And where-ever the Price of any Commodity begins to fall, how many Hands soever there be between that and the Landholder, they all take reprisals one upon another, till at last it comes to the Landholder; and there the abatement of Price, of any ofhis Commodities, lessens his Income, and is a clear loss. The Owner of Land, which produces the Commodity, and the last Buyer, who consumes it, are the two extreams in Commerce. And though the falling of any sort of Commodity in the Landholder's Hand, does not prove so to the last consumer, the Arts of intervening Brokers and Ingrossers keeping up the Price to their own advantage: Yet whenever want of Money, or want of desire in the consumer, make the Price low, that immediately reaches the first Producer: No body between having any Interest to keep it up.
Now, as to the two first causes of falling of Rents, falling of Interest has no Influence at all. In the latter, it has a great part: Because it makes the Money of England less, by making both English-Men and Foreigners withdraw or with-hold their Money. For that which is not let loose into Trade, is all one whil'st Hoarded up, as if it were not in Being.
I have heard it brought for a reason, why Interest should be reduced to Four per Cent. That thereby the Landholder, who bears the burthen of the Publick Charge, may be, in some degree eased by falling of Interest.
This Argument will be put right, if you say it will ease the Borrower, and lay the loss on the Lender: But it concerns not the Land in general, unless you will suppose all Landholders in Debt. But I hope, we may yet think that Men in England, who have Land, have Money too; and that Landed Men, as well as others, by their providence and good Husbandry, accommodating their Expences to their Income, keep themselves from going backwards in the World.
That which is urged, as most deserving consideration and remedy in the case, is, That it is hard and unreasonable, that one, who has Mortgaged half his Land, should yet pay Taxes for the whole, whil'st the Mortgagee goes away with the clear profit of an high Interest. To this I answer,
1. That if any Man has run himself in Debt, for the Service of his Country, 'tis fit the Publick should reimburse him, and set him free. This is a care, that becomes the Publick Justice; That Men, if they receive no Rewards, should, at least, be kept from Suffering, in having Served their Country. But I do not remember the Polity of any Nation, who altered their Constitution, in favour of those, whose mismanagement had brought them behind-hand; possibly as thinking the Publick little beholding to those, who had misemployed the Stock of their Country, in the excess of their private Expences, and, by their Example, spread a fashion that carries ruin with it. Mens paying Taxes of Mortgaged Lands, is a punishment for ill-husbandry, which ought to be discouraged: But it concerns very little the Frugal and the Thrifty.
2. Another thing to be said in reply to this, is, That it is with Gentlemen in the Country, as with Tradesmen in the City. If they will own Titles to greater Estates than really they have, it is their own faults, and there is no way left to help them from Paying for them. The Remedy is in their own hands, to discharge themselves when they please. And when they have once Sold their Land, and paid their Debts, they will no longer pay Taxes, for what they own, without being really theirs. There is another way also, whereby they may be relieved, as well as a great many other inconveniencies remedied; and that is by a Registry: For if Mortgages were Registred, Land Taxes might reach them, and order the Lender to pay his proportion.
I have met with Patrons of Four per Cent. who (amongst many other fine things they tell us of) affirm, That if Interest were reduced to Four per Cent. then some Men would borrow Money at this low Rate, and pay their Debts; Others would borrow more than they now do, and improve their Land; Others would borrOw more, and imploy it in Trade and Manufacture. Gilded words indeed, were there any thing substantial in them! These Men talk, as if they meant to shew us, not only the Wisdom, but Riches of Solomon, and would make Gold and Silver as common, as the Stones in the Street: But at last, I fear, 'will be but Wit without Money; and, I wish it amount to that. 'Tis without question, That could the Countryman, and the Tradesman take up Money cheaper, than now they do, every Man would be forward to Borrow, and desire, that he might have other Mens Money to imploy to his advantage. I confess, those who contend for Four per Cent. have found out a way, to set Mens Mouths a watering for Money at that Rate, and to increase the number ofthe Borrowers in England; if any body can imagine it would be an advantage to increase them. But to answer all their fine Projects, I have but this one short question to ask them: Will Four per Cent. increase the number of the Lenders? If it will not, as any Man at the very first hearing, will shrewdly suspect it will not, then all the plenty of Money these Conjurers bestow upon us, for Imnprovement of Land, Paying of Debts, and Advancement of Trade, is but like the Gold and Silver, which Old Women believe, other Conjurers bestow sometimes, by whole Lapfuls, on poor credulous Girls, which, when they bring to the light, is found to be nothing but wither'd Leaves; and the Possessors of it are still as much in want of Money as ever.
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