twenty years' purchase; it is necessary for the making their value truly equal, that they should produce an equal income, which the 100 at 51. per cent. interest is not likely to do.

1. Because of the many, and sometimes long intervals of barrenness, which happen to money more than land. Money at use, when returned into the hands of the owner, usually lies dead there, till he gets a new tenant for it, and can put it out again; and all this time it produces nothing. But this happens not to land, the growing product whereof turns to account to the owner, even when it is in his hands, or is allowed for by the tenant, antecedently to his entering upon the farm. For though a man, that borrows money at Midsummer, never begins to pay his interest from our Lady-day, or one moment backwards; yet he, who rents a farm at Midsummer, may have as much reason to begin his rent from our Lady-day, as if he had then entered upon it. elka

2. Besides the dead intervals of ceasing profit, which happen to money more than land, there is another reason why the profit and income of money let out should be a little higher than that of land; and that is, because money out at interest runs a greater risque than land does. The borrower may break, and run away with the money, and then not only the interest due, but all the future profit, with the principal, is lost for ever. But in land a man can lose but the rent due, for which usually too the stock upon the land is sufficient security: and if a tenant run away in arrear of some rent, the land remains; that cannot be carried away or lost. Should a man purchase good land in Middlesex of 5% per ann. at twenty years' purchase, and other land in Romney-marsh, or elsewhere, of the same yearly value, but so situated, that it were in danger to be swallowed of the sea, and be utterly lost, it would not be unreasonable, that he should expect to have it under twenty years' purchase; suppose sixteen and al half: this is to bring it to just the case of land at twenty years' purchase; and money at six per cent. where the uncertainty of securing one's money may well be J VOLIV. el fom# 96 ihupa to od JB Ipq JC to

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allowed that advantage of greater profit; and therefore, perhaps, the legal interest now in England at six cent. is as reasonable and convenient a rate as can well be set by a standing rule, especially if we consider that the law requires not a man to pay six per cent. but ties up the lender from taking more. So that if ever it falls of itself, the monied-man is sure to find it, and his interest will be brought down to it.

High interest is thought by some a prejudice to trade; but if we look back, we shall find that England never throve so well, nor was there ever brought into England so great an increase of wealth since, as in queen Elizabeth's and king James I. and Charles the First's time, when money was at ten and eight per cent. I will not say high interest was the cause of it. For I rather think that our thriving trade was the cause of high interest, every one craving money to employ in a profitable commerce. But this, I think, I may reasonably infer from it, That lowering of interest is not a sure way to improve either our trade or wealth.

To this I hear some say, That the Dutch, skilful in all arts of promoting trade, to out-do us in this, as well as all other advancements of it, have observed this rule, viz. That, when we fell interest in England from ten to eight, they presently sunk interest in Holland to four per cent. And again, when we lowered it to six, they fell it to three per cent., thereby to keep the advantage, which the lowness of interest gives to trade. From whence these men readily conclude, that the falling of interest will advance trade in England. To which I

answer,

1. That this looks like an argument rather made for the present occasion, to mislead those who arè credulous enough to swallow it, than arising from true reason, and matter of fact. For, if lowering of interest were so advantageous to trade, why did the Dutch so: constantly take their measures only by us, and not as well by some other of their neighbours, with whom they have as great, or greater commerce than with us? This is enough, at first sight, to make one suspect this

to be dust only raised to throw in people's eyes, and a suggestion made to serve a purpose. For,

2. It will not be found true, That, when we abated interest here in England to eight, the Dutch sunk it in Holland to four per cent. by law; or that there was any law made in Holland to limit the rate of interest to three per cent. when we reduced it in England to six. It is true, John de Witt, when he managed the affairs of Holland, setting himself to lessen the public debts, and having actually paid some, and getting money in a readiness to pay others, sent notice to all the creditors, that those who would not take four per cent. should come and receive their money. The creditors finding him in earnest, and knowing not how otherwise to emply their money, accepted his terms, and changed their obligations into four per cent. whereas before they were at five, and so (the great loans of the country being to the state) it might be said in this sense, That the rate of interest was reduced lower at that time: but that it was done by a law, forbidding to take higher interest than four per cent., that I deny, and require any one to show. Indeed, upon good security, one might lately have borrowed money in Holland at three, and three and a half per cent. but not by virtue of any law, but the natural rate of interest. And I appeal to the men, learned in the law of Holland, whether last year (and I doubt not but it is so still) a man might not lawfully lend his money for what interest he could get, and whether in the courts he should not recover the interest he contracted for, if it were ten per cent. So that, if money be to be borrowed by honest and responsible men at three, or three and a half per cent., it is not by the force of statutes and edicts, but by the natural course of things; which will always bring interest upon good security low, where there is a great deal of money to be lent, and little good security, in proportion, to be had. Holland is a country where the land makes a very little part of the stock of the country. Trade is their great fund; and their estates lie generally in money: so that all, who are not traders, generally

speaking, are lenders: of which there are so many, whose income depends upon interest, that if the States were not mightily in debt, but paid every one their principal, instead of the four per cent. use, which they give, there would be so much more money than could be used, or would be ventured in trade, that money there would be at two per cent. or under, unless they found a way to put it out in foreign countries.

Interest, I grant these men, is low in Holland: but it is so, not as an effect of law, or the politic contrivance of the government, to promote trade; but as the consequence of great plenty of ready money, when their interest first fell. I say, when it first fell: for being once brought low, and the public having borrowed a great part of private men's money, and continuing in debt, it must continue so, though the plenty of money, which first brought interest low, were very much decayed, 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 looked 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 public 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 called on to come and receive their money. This is the state of interest in Holland: their plenty of money, and paying their public 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 enforce 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 persuaded to lend to them but can it be expected, when the public gives seven or eight or ten per cent. that private men, whose security is certainly no better, shall have 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: if you 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 public at that rate. This would be a benefit to the kingdom, and abate a great part of our public charge. If you cannot do that, confess that it is 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 nation's care; for in that, and not in the falling of interest, lies the true advantage of the landed man, and with him of the public. It may be therefore not besides our present business to inquire 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 husbandry it will now produce but 50 bushels, the rent will be abated half. But this cannot be supposed general.