Some Considerations of the Lowering of Interest [31]
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