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 Interest 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 increasing 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 only. 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 Burden 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.)  
Barbadoss is a small Territory, & the richest in the World, ordinary Land being worth there 10 l. per ann. the Acre; Use of Money 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. Barbadoss 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 daily 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 accounts 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 confessed it to be true: Although most certain it is▪ That the late Sir james Drax, Sir Thomas Muddiford, Colonel 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 Lender's: It being the necessary and never-failing consequence of a high Interest all the World over, to enrich 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 Usurers 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 Usurers will be more favourable.  
I think that Objection is likewise fully answered in the Printed Treatise. But to enlarge 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, Subtle, Wary, Covetous, Timorous Thrifty (alias, Miserable) Person, and commonly well stricken in years; and if this Character be true, which I submit to the Judgement 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 Usurer, and the City Usurer. Suppose likewise the Law were past to reduce Interest to four per cent, and see what the Country Usurer 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 subtle Person (as hath been said) his prudence will prompt him to consider how to mend himself, by being possessed 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 possessed already with several qualifications that will inhibit him; Insomuch, that if he should do it, he must never after think of Sleeping quietly; his natural timerousness being such, that every noise he hears will put him into a panic fear of Thiefs 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 Usurer's great subtlety that now directs him to t●ke 6 per cent. for his Money, rather than buy Lands at Eighteen and Ninteen years' Purchase, will then advise him to continue his Money at four per cent, rather than 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 Expense without calling in the Principal.  
The City Usurer differs from the Country Usurer 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 Expense, 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 whereover Interest of Money is lowest; Securities are safest to the Lender's, and easiest to the Borrowers, and were-ever Interest of Money runs high, they are more dangerous to the Lender's, and difficult to the Borrowers. Whither this be true or no universally, I appeal to the Experience and Observation of all Travellers and Merchants, so far as the Teder of my Conversation hath suffered me to range, I am sure it never failed.  
For Instance; in Barbadoss, it is a more difficult thing to take up 100 l. Value in Sugar (which is the Money of that Country) at 15 per cent. than 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 men's 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 Impourish 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 ruin, 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 Usurer's Objection, for I commonly meet with it from them (viz.) They say all the Money in the Nation is employed; and although they employ it not themselves, they lend to others that do, and more cannot be employed than we have, though Interest were at three or two per cent.  
I answer, That no Money is employed to the advantage of any Kingdom; but that only which is Employed in Foreign Trade, or by Artificers, and in Manufacture, or Improvement of Land. And that no Money is or can be Employed 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 Employ with all his Art and Skill above one fourth, or half at most of his said Stock in Foreign 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 than is now employed in Foreign Trade, or those other profitable employments to the Kingdom.   

Objection, 5.  
Another Objection I frequently meet with, which I may not Improperly call the Merchant's Objection, 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 Objection is, That we have already so many Traders, and so much Stock employed 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 Controversy in public 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 satisfy 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: Only with this difference: Every individual Gentleman now possessed 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 only 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 persuaded 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. Walls, and other places, to the Baltic 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 profitable 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.