Some Considerations of the Lowering of Interest [0]
Some Considerations of the Consequences of the Lowering of Interest and the Raising the Value of Money
by John Locke, 1691.
Some Considerations of the Consequences of the Lowering of Interest and the Raising the Value of Money In a letter sent to a Member of Parliament, 1691 London Printed for Awnsham and John Churchill, at the Black Swan in Pater-Noster-Row,
Sir, These Notions, concerning Coinage, having for the main, as you know, been put into Writing above Twelve Months since; as those other concerning Interest, a great deal above to many Years: I put them now again into your Hands with a Liberty (since you will have it so) to communicate them further, as you please. If, upon a Review, you continue your favourable Opinion of them, and nothing less than Publishing will satisfie you, I must desire you to remember, That you must be answerable to the World for the Stile; which is such as a man writes carelesly to his Friend, when he seeks Truth, not Ornament; and studies only to be right, and to be understood. I have since you saw them last Year, met with some new Objections in Print, which I have endeavoured to remove; and particularly, I have taken into Consideration a Printed Sheet, entituled, Remarks upon a Paper given in to the Lords, &c. Because one may naturally suppose, That he that was so much a Patron of that Cause would omit nothing that could be said in favour of it. To this I must here add, That I am just now told from Holland, That the States, finding themselves abused by Coining a vast quatity of their base [Schillings] Money, made of their own Ducatoons, and other finer Silver, melted down; have put a stop to the Minting of any but fine Silver Coin, till they should settle their Mint upon a new Foot. I know the sincere Love and Concern you have for your Country, puts you constantly upon casting about on all hands for any means to serve it; and will not suffer you to overlook any thing you conceive may be of any the least use, though offer'd you from the meanest Capacities: You could not else have put me upon looking out my old Papers concerning the reducing of Interest to 4 per Cent. which have so long lain by forgotten, Upon this new Survey of them I find not my thought now to differ from those I have near Twenty years since: They have to me still the Appearance of Truth; nor should I otherwise venture thme so much as to your sight. If my Notions are wrong, my Intention, I am sure, is right: And whatever I have failed in, I shall at least let you see with what Obedience I am, Sir, Nov. 7, 1691. Your most humble Servant.
SIR, I HAVE so little Concern in Paying or Receiving of Interest, that were I in no more Danger to be misled by Inability and Ignorance, than I am to be biassed by Interest and Inclination, I might hope to give you a very perfect and clear Account of the Consequences of a Law, to reduce Interest to Four per Cent. But since you are pleased to ask my Opinion, I shall endeavour fairly to state this Matter of Use with the best of my Skill. The first thing to be consider'd, is, Whether the Price of the Hire of Money can be regulated by Law. And to that I think, generally speaking, one may say, 'tis manifest it cannot. For since it's impossible, to make a Law that shall hinder a Man from giving away his Money or Estate to whom he pleases, it will be impossible, by any Contrivance of Law, to hinder Men, skill'd in the Power they have over their own Goods, and the ways of Conveying them to others, to purchase Money to be Lent them at what Rate soever their Occasions shall make it necessary for them to have it. For it is to be Remembred, That no Man borrows Money, or pays Use, out of mere Pleasure: 'Tis the want of Money drives Men to that Trouble and Charge of Borrowing: And proportionably to this Want, so will every one have it, whatever Price it cost him. Wherein the Skilful, I say, will always so manage it, as to avoid the Prohibition of your Law, and keep out of its Penalty, do what you can. What then