A short addition to the observations concerning trade and interest of money by the same hand. Child, Josiah, Sir, 1630-1699. 1668 Approx. 19 KB of XML-encoded text transcribed from 7 1-bit group-IV TIFF page images. Text Creation Partnership, Ann Arbor, MI ; Oxford (UK) : 2004-05 (EEBO-TCP Phase 1). A32837 Wing C3864 ESTC R23516 12071868 ocm 12071868 53494 This keyboarded and encoded edition of the work described above is co-owned by the institutions providing financial support to the Early English Books Online Text Creation Partnership. This Phase I text is available for reuse, according to the terms of Creative Commons 0 1.0 Universal . The text can be copied, modified, distributed and performed, even for commercial purposes, all without asking permission. Early English books online. (EEBO-TCP ; phase 1, no. A32837) Transcribed from: (Early English Books Online ; image set 53494) Images scanned from microfilm: (Early English books, 1641-1700 ; 864:7) A short addition to the observations concerning trade and interest of money by the same hand. Child, Josiah, Sir, 1630-1699. 3-14 p. Printed for Henry Mortlock ..., London : 1668. Reproduction of original in Huntington Library. Attributed to Sir Josiah Child. cf. NUC pre-1956. A continuation of his Brief observations concerning trade, and interest of money. Created by converting TCP files to TEI P5 using tcp2tei.xsl, TEI @ Oxford. Re-processed by University of Nebraska-Lincoln and Northwestern, with changes to facilitate morpho-syntactic tagging. Gap elements of known extent have been transformed into placeholder characters or elements to simplify the filling in of gaps by user contributors. 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Copies of the texts have been issued variously as SGML (TCP schema; ASCII text with mnemonic sdata character entities); displayable XML (TCP schema; characters represented either as UTF-8 Unicode or text strings within braces); or lossless XML (TEI P5, characters represented either as UTF-8 Unicode or TEI g elements). Keying and markup guidelines are available at the Text Creation Partnership web site . eng Interest -- Early works to 1800. 2004-01 TCP Assigned for keying and markup 2004-02 SPi Global Keyed and coded from ProQuest page images 2004-03 Mona Logarbo Sampled and proofread 2004-03 Mona Logarbo Text and markup reviewed and edited 2004-04 pfs Batch review (QC) and XML conversion A SHORT ADDITION TO THE OBSERVATIONS CONCERNING TRADE AND Interest of Money . By the same Hand . LONDON , Printed for Henry Mortlock , and are to be sold at the Sign of the White Heart in Westminster Hall 1668. A Short Addition to the Observations concerning Trade , and Interest of Money . Objection I. AS to that Objection , That the Low Interest in Holland , proceeds from their abundance of money , and not the force of Laws : I think I have sufficently answered it already in my printed Treatise : But this further may be said , which I knew not then : Laws have done it here , as hath been proved ; and Laws did do it there : For the very next year after Intrest was brought from ten to eight per cent . in England , the Dutch brought it by a Placart or Law to six per cent . in Holland ; and the same year that the Long Parliament were about to bring it to six , they brought it to five per cent . This I have from an unerring hand : And I presume they have since brought it by a Law to four per cent . but of that I know not . However of this I am certain , Let the Law bring it to five or four at this time , & the People of themselves , by encreasing the Riches of the Kingdom , will bring it to a lower ra●e ▪ which is manifest in all the Progressions of Nature . As for Example : A poor man that by his Labour can but just maintain his family , with much care and diligence ; if he have the good hap to light on a small stock of 50 or 100 l. or have so much given him ; upon that small Foundation he may arrive to an Estate of 1000 l. it may be 10000 l. and so i● often falls out : Whereas without such an opportunity , he might have laboured all his days for Bread onely . So it is in diseases in the Body natural ; remove but the cause , take but away the Shackles of Nature , and she will soon recover strength and flesh : so take off the Burthen from Trade ( whereof none is so heavy as that of Interest ) and the People will work out the rest to the prodigious increase of their Riches , as the Dutch have done . Objection II. Another Objection I have lately met with , is , That Holland is but a small Tract of Land , and consequently Land is dear there not because Interest of Money is low . I answer , This is a gross mistake : For Land and Interest of Money are , all over the Universe , like two Buckets ; if one go up , the other must go down , and the contrary , whether it be a great or small Territory ; as is evident in our own Plantations , as well as in all other places of the World mentioned in the former Treatise . ( Viz. ) Barbadoes is a small Te●ritory , & the richest in the World , ordinary Land being worth there 10 l. per ann . the Acre ; Use of Mony by Law is 15 l. per annum , and their Plantations sell but at seven years purchase at most . New England is a Country where the Legal Interest is eight per cent . and I am told they are now about bringing of it down to six per cent . There the Plantations will sell at fourteen to fifteen years purchase , though it be a vast Continent . In Virginia Interest is at fifteen per cent . and Plantations sell not at above seven years purchase at most , And , which is more observable , all those Places are not rich or poor according to the goodness of their Soil , but exactly according to the Rate of Interest . Barbadoes the richest Land , hath the poorest People ; Virginia the next best Land , but a much poorer People than the New-English . New England incomparably is the worst Land of the three , and yet the richest People of them all , and increasing dayly to a miracle , unto those that know not that by their Laws about Interest of Money , they must necessarily suck the Blood of the other two places , with whom they have a constant intercourse in Trade ; which in effect is the same as if they lent them money . And the consequences of this to that Island of Barbadoes , are so visible and fatal , that if all the Planters or Owners of the Territory of that Island should now make up their accompts with the City of London , they would be found so much indebted to this City , that the sale of all their Lands and Goods to their very Shirts , would not pay one half of what they owe. This I have reason to know , having as much experience of the Trade of that place , and the condition of that people , as most Merchants in London : And this I have asserted in the company of many of the most considerable Barbadoes Planters now in London , who have ingeniously confess'd it to be true : Although most certain it is ▪ That the late Sir Iames Drax , Sir Thomas Muddiford , Collonel Birch now of Giddy-Hall in Essex , and some few other Planters , have arrived there to very great Estates , after they could bring their affairs to such a consistency as to stem the desperate current of that interest , and row with the stream , by ceasing to borrow , and becoming Lenders : It being the necessary and never-fayling consequence of a high Interest all the World over , to inrich a very few , and impoverish all the rest of the Nation : Which was the true reason that we had in former times about half a dozen such as Gresham , Sutton , Craven , and Spencer ; but besides them , not one man of 10000 l. Estate , for a hundred which we have now . Objection III. To that Objection , That Vsurers will call in their money if it be now brought to four per cent . whereas if it be brought but to five per cent . it is hoped ( by some Gentleman ) that the Vsurers will be more favourable . I think that Objection is likewise fully answered in the Printed Treatise . But to inlarge a little further upon it , I premise the Common Usurers qualifications ; for of such only I speak in this place ( viz. ) He is always a Sly , Subtile , Wary , Covetous , Timerous Thrifty ( alias , Miserable ) Person , and commonly well striken in years ; and if this Character be true , which I submit to the Judgment of those that are better acquainted with them ; Then I say it is impossible for the generality of Usurers to call in their Money , though it be brought to four per cent : To demonstrate this , I suppose the Usurers to be of two sorts ( viz. ) the Country Vsurer , and the City Vsurer . Suppose likewise the Law were past to reduce Interest to four per cent , and see what the Country Vsurer will do ? Very angry doubtless he will be ; but what then ? No question but he will threaten and talk of calling in his Money , but being no Fool but a subtile Person ( as hath been said ) his prudence will prompt him to consider how to mend himself , by being possest of his Money , and what to do with it when he hath it . Trade , or run it by Exchange he cannot , being too old to learn ; and too wise to be cheated ; as he must be sure to be ; if he precipitate himself into Business he understands not : Let it lie dead by him he dares not ; being possest already with several qualifications that will inhibit him ; Insomuch , that if he should doe it , he must never after think of Sleeping quietly ; his natural timerousness being such , that every noise he hears will put him into a panick fear of Thieves come to rob him ; and his Covetousness is such , that upon the very thoughts of having no Use-Money coming in , it will almost , if not altogether , break his heart ; and then his miserableness is such , that upon the frightful Apparition of no Income , or more properly the Disappearance of all his Incomes at once , it may be feared he will go near to starve himself . What other course then can he take ? I say there are but two left him in the world , Viz. Either to purchase Lands , or improve those he hath . All Lands after such a Law will certainly advance six years purchase : So that New Purchasers shall never , by buying Lands , make 3 per cent . of their Money , and in consequence , the Usurers great subtilty that now directs him to t●ke 6 per cent . for his Money , rather then buy Lands at Eighteen and Ninteen years Purchase , will then advise him to continue his Money at four per cent , rather then buy Lands at twenty six years Purchase , which he must give after the making of this Law. For Improvement of his own Lands , if he take to that , I will not offer a word to hinder him ; he may certainly make the best profit that way , after this Law : but what shall be called in to that purpose , I know , cannot much affect Gentlemen in Debt , because the Use-money the Usurers receive , will be sufficient to carry on that Work , being a gradual Expence without calling in the Principal . The City Vsurer differs from the Country Vsurer only in this , that he hath formerly had some Experience of Trade , and hath now the opportunity of laying out his Money by Building , which the Country Usurer hath not . For the first ( viz. ) Trade , they have been so long out of it , that very few of them will now settle to it again themselves , but they will bring up their Children to it , which otherwise they would not have done . For Building , I know many of them will be doing in that , but that likewise is a gradual Expence , somewhat like improvement of Lands , and the great Usurers may Build annually as much as it is convenient for one man to have in hand at one time , upon the receipt of their growing Interest only , that is let out upon Personal Security . Further , I do affirm Catigorically , That in all Parts of the World where-●ver Interest of Money is lowest ; Securities are safest to the Lenders , and easiest to the Borrowers , and were-ever Interest of Money runs high , they are more dangerous to the Lenders , and difficult to the Borrowers . Whither this be true or no universally , I appeal to the Experience and Observation of all Travelers and Merchants , so far as the Teder of my Conversation hath suffered me to range , I am sure it never failed . For Instance ; in Barbadoes , it is a more difficult thing to take up 100 l. Vallew in Sugar ( which is the Money of that Country ) at 15 per cent . then it is to take up 1000 l. at 6 per cent . in England ; the like is in Tobacco in Virginia . In Ireland the like , at the rate of that Country ; with this also that whoever can be credited for 1000 l. there must give 4000 l. worth of Land for Security ; whereas 2000 l. worth of Land is esteemed in England a good Security for 1000 l. Money at 6 per cent . In Holland , likewise any man that is a competent good Husband , Prudent and Careful in his business , may take up 500 l. or 1000 l. at 3 per cent . upon his own Note only , whereas in England where the present rate is double , the Usurers require three good Mens Bonds at the least , for 500 l. at 6 per cent . which safety to the Usurer and ease of giving Security by the Borrower , must needs proceed from the Lowness of the rate , because the Usurer being a crafty Fox , knows that 6 per cent , will certainly Impovrish the Gentlemen ; and weaken the Merchant and Tradesman , if they take up much at Interest , and the rather , because he knows the Merchant must beyond the Seas meet with a Dutch Competitor , that hath his Money at 3 per cent . and therefore is so wise as to have two or three Securities , that if one be undone , he may have time enough to force in his Money from the rest before they be all ruined : Whereas when Money is here at four per cent , the Usurer that hath his Money out at present upon Mortgages , will find his Security he already hath bettered , and therefore it will be his wisdom to continue it , that Land being then worth 2600 l. which is now worth but 2000 l. and the Merchant or Tradesmen tha● he knew six per cent . would ruine , may subsist under four per cent . and consequently the Usurer will not be so jealous of his standing , as it appears they are not in Holland , because that at a low rate they may live comfortably , that must break at a high . Objection 4. There is another Objection , which I may properly call the Vsurers Objection , for I commonly meet with it from them ( viz. ) They say all the Money in the Nation is imployed ; and although they imploy it not themselves , they lend to others that do , and more cannot be imployed then we have , though Interest were at three or two per cent . I answer , That no Money is imployed to the advantage of any Kingdom ; but that only which is Imployed in Forreign Trade , or by Artificers , and in Manufacture , or Improvement of Land. And that no Money is or can be Imployed in those profitable ways , but so much only as we can make above six per cent . of , as for example : A Merchant in London that hath an Estate of 30000 l. or 40000 l. can hardly Imploy with all his Art and Skil above one fourth , or half at most of his said Stock in Forreign Trade to make above six per cent . because all other Trades that afford a less profit ( all hazards considered ) are supplied by the Dutch , and must necessarily be so till Interest of Money be abated . Whereas , were Interest of Money here at four per cent . Merchants Own Wisdom would induce them to Trade with all their Stocks ; or at least so much as they could make a greater gain of then four per cent . which would be just one third more then is now imployed in Forreign Trade , or those other profitable imployments to the Kingdom . Objection , 5. Another Objection I frequently meet with , which I may not Improperly call the Merchants Obiection , because it generally comes from them ( and their Language and Designs I may pretend in part to understand , if I understand any thing at all . ) The said Obiection is , That we have already so many Traders , and so much Stock imployed in Trade , that we can scarce live by what we do ; and if we should bring a greater Stock into Trade , which the sequel of this Law will do ; and multiply Traders , no Trade will be worth the following . Before I answer this Objection , I must do right to my fellow Citizens and Merchants , in confessing that although at the first starting of this Controversie in publick discourses ; above ninetenths of all those I conversed with were against it ; yet that since , upon reading and hearing what hath been said and printed for it , above three fourth parts of all those I have had communication with , are come over to acknowledge . That the abatement of Interest from six to four per cent . will be a real advantage to the Kingdom in general . But further , To satisfie such as are yet in doubt , I say , Those Merchants that have great Stocks , and would have Interest continued at six per cent . if they prefer their own private Gain to the Common Good , they are in the right as to themselves ; for the abatement of Interest will certainly and necessarily increase Industry and good Husbandry ; it will as certainly multiply Traders and Stock in Trade , and in consequence the gain of the present Merchant who employs his own Stock , and lends to others , will be the less . But he must be wilfully blind that cannot see the advantage of the King and Kingdom will be the more , by the multiplication of Merchants , and increase of stock in Trade , the effect & success whereof in this particular ( as already it hath been ) will be Mathematically the same as in the advance of Land , viz. All the Land of this Kingdom will be advanced one third in value ; and the very same properties will the gain of the Kingdom be advanced by the increase of Trade and Traders : Onely with this difference : Every individual Gentleman now possest of Lands will receive his proportional benefit thereby presently ; Whereas the benefit by Trade will redound to the King and Kingdom in general , and not to the particular advantage of any of the present Merchants , except such onely as pay Interest for all or part of their Stock in Trade . But the rest of Merchants who receive not a present benefit , will partake of the future advantage thereof to themselves and Children in common with their Country : Which when well weighed and meditated upon , I am perswaded will convince those worthy Merchants that are yet unreconciled to this Principle . Query . But here it may be said , How shall we increase our Trade , when we cannot get by what we have already ? If it be seriously considered , this question is answered in what I have before said . But further to explain it : The Dutch drive a great Trade in Salt from Rochel , St. Vvals , and other places , to the Baltick Seas ; by which , if they can get eight or nine per cent . they are very well content : We , while Money is at six per cent . cannot live on so small a profit as is the surplusage of that above the Interest and in consequence we look not after it , but rather choose to put out our Money at six per cent . Whereas were Money with us at four per cent . we should then be content with the surplusage of that profit , and follow it closely . But if it be here objected , from what I formerly published , That we have no such Bulky Ships to sail with little charge as the Dutch have : I answer , We are composed of the same Elements as they are , and have hands and heads as well as they ; and that a Low interest is the cause of these and many other profi●able Engines , which they work withal . And that he hath not half considered this point , who doth not know infallibly , That a low Interest is a Spur to Invention as well as Industry and Good Husbandry : Nay further , That it multiplies men , as well as increaseth Trade in any Nation , the latter naturally generating the former . FINIS .