Some Considerations of the Lowering of Interest [2]
to Swear, where they may have any Concernment of their own. And it will always be worthy the Care and Consideration of Law-makers, to keep up the Opinion of an Oath High and Sacred, as it ought to be, in the Minds of the People; which can never be done, where frequency of Oaths, biassed by Interest, has establisht a neglect of them; and Fashion (which it seldom fails to do) has given Countenance to what Profit rewards. But that Law cannot keep Men from taking more Use than you set (the want of Money being that alone which regulates its Price) will perhaps appear, if we consider how hard it is to set a Price upon Wine or Silks, or other unnecessary Commodities; but how impossible it is to set a Rate upon Victuals in a time of Famine. For Money being an universal Commodity, and as necessary to Trade, as Food is to Life, every body must have it, at what Rate they can get it; and unavoidably pay dear when it is scarce, and Debts, no less than Trade, have made Borrowing in Fashion. The Bankers are a clear Instance of this: For some Years since, the Scarcity of Money having made it in England worth really more than Six per Cent. most of those that had not the Skill to let it for more than Six per Cent. and secure themselves from the Penalty of the Law, put it in the Bankers Hands, where it was ready at their Call, when they had an Opportunity of greater Improvement. So that the Rate you set, profits not the Lenders, and very few of the Borrowers, who are fain to pay the Price for Money, that Commodity would bear, were it left free; and the Gain is only to the Banker. And should you lessen the Use to Four Per Cent. the Merchant, or Tradesman, that Borrows, would not have it one jot cheaper, than he has now; but probably these two ill effects would follow. First, That he would pay dearer; and Secondly, That there would be less Money left in the Country to drive the Trade. For the Bankers paying at most but Four per Cent. and receiving from Six to Ten Per Cent. or more, at that low Rate could be content to have more Money lye dead by them, than now when it is higher: By which means there would be less Money stirring in Trade, and a greater Scarcity; which would raise it upon the Borrower by this Monopoly. And what a part of our Treasure their skill and management, joined with others laziness or want of skill, is apt to draw into their Hands, is to be known by those vast Sums of Money, they were found to owe at the shutting up of the Exchequer. And though it be very true, yet it is almost beyond Belief, That one private Goldsmith of London should have Credit upon his single Security, (being usually nothing but a Note under one of his Servants Hands) for above Eleven hundred thousand Pounds at once. The same Reasons, I suppose, will still keep on the same Trade: And when you have taken it down by Law to that Rate, no body will think of having more than Four per Cent. of the Banker, though those who have need of Money, to employ it in Trade, will not then, any more than now, get it under Five or Six, or as some pay, Seven or Eight. And if they had then, when the Law permitted Men to make more Profit of their Money, so large a Proportion of the Cash of the Nation in their Hands, who can think, but that by this Law it should be more driven into Lombard-street now? there being many now who lend them at Four or Five Per Cent. who will not Lend to others at Six. It would therefore perhaps, bring down the Rate of Money to the Borrower, and certainly distribute it better to the Advantage of Trade in the Country, if the legal Use were kept pretty near to the natural; (by natural Use, I mean that Rate of Money which the present Scarcity of it makes it naturally at, upon an equal Distribution of it) for then Men being Licensed by the Law to take near the full natural Use, will not be forward to carry it to London, to put it into the Bankers Hands; but will Lend it to their Neighbours in the Country, where it is convenient for Trade it should be. But if you lessen the Rate of Use, the Lender, whose Interest it is to keep up the Rate of Money,