Money Answers All Things [51]
Years ago: For then it was a very common Thing for People, from small Beginnings to raise L. 5000 or more for each Child, tho' the Families were as large as my Estimates supposes: Which is a Truth so well known, that I shall not attempt any Proofs of it, but take it for granted, not doubting that the Observation of the aged and judicious Tradesman will allow it me: and further concur, that the State of Trade in general will now by no means admit of making 40 per cent per ann. on a Capital of L. 1000 or perhaps hardly more than half as much. Yet I will not say there are no Instances of such Profits; for perhaps such there will be, as long as there is Trade amongst us: But I am certain they are few, and hard to be found or guess'd at, there being too many People in almost every Occupation to admit of such Gains. And I am as certain, that the Instances of raising pretty Fortunes for Children, about forty or fifty Years ago, from very small Beginnings, were vastly more numerous than any are to be found, at this Time, that can make any thing near 40 per cent per annum on a capital of L. 1000. And therefore, I think, I may justly conclude, that Trade is now in much worse Circumstances than it formerly was. But were our Trade to be put on the Foot I am pointing out, less than 30 per cent per annum on such a Capital, wou'd be as sufficient for the Support and Provision of such a Family, as 40 per cent per annum is, as the Prices of Things now go: And then the Demand for, and Consumption of every Thing would be so much augmented, that it would be as easy to make 30 per cent per ann. on such a Capital, as it is now to make 20; for then our Trade would be in that flourishing State I am aiming at. But from what I have now said, and also from this Estimate, it must appear, that the Wealthy have the Business and Affairs of the trading Part of the People transacted, on Terms as much below the reasonable and just Value thereof, as the Profits such a Sum will generally make, are less than the Estimate shews to be needful for a middling Family in this Rank of Life. Therefore such diffusing Property amongst the People in general, as hath been before in this Essay represented, is absolutely needful, not only for the Sake of the labouring People, but for the trading Part too; who together undoubtedly are more than 19 Parts in 20 of the People of the Kingdom;(32*) the Generality of whom, by the several Estimates, appear to be in equal Difficulties, in Proportion to their Stations in Life. And if so, is there any room to wonder at the Misery we see amongst the Poor, or the Ruin which so frequently befals the middling People; since by both the Estimates it appears, the Nature of Things, in our present Circumstances, is so big with these Evils, that we may much rather wonder the Misery and Ruin are not universal? Again it must appear by this Estimate, that if 1000 l. employ'd in Trade, ought to make so large a Gain as about 40 per cent per ann. all necessary Means should be used, to make as large a Consumption of all Kinds of Goods, as the Nature of Things is well capable of; which, as hath been before sufficiently shewn, can hardly ever be equal to the Wants of the People, according to their several Ranks and Stations only, will necesarily require. And this should also be done, for the sake of returning the Capitals employed in Trade, as frequently as possible; since the quicker the Returns are made, the cheaper will the Goods come to the Consumer; and the slower the Returns are made, so much larger should the Profits always be, that is, so much dearer ought the Goods to be sold to the Consumer. If this is not the Case, the Tradesman must suffer, which is very unreasonable, since all Trade is carried on solely for the Use and Benefit of the Consumer. Again, this Estimate shews, how unfit it is to give or take long Credit in Trade; since the Advance of the Price of goods sold on time, ought not to be reckon'd with any Regard to the Interest of Money on Securities, but by the Rates of the Profits which the Capitals employ'd may require