Some Considerations of the Lowering of Interest [34]
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,