AN ESSAY Towards Settling a NATIONAL CREDIT.   

AN ESSAY Towards the Setlement of a NATIONAL CREDIT, In the Kingdom of ENGLAND, Humbly presented to the two Honourable Houses of Parliament.  
By John Cary, Merchant in Bristol.  
LONDON: Printed by Freeman Collins, and are to be sold by S. Crouch at the Corner of Popes-head-Alley in Cornhill, and E. Whitlock near Stationers-Hall. 1696.   

To the Right Honourable the LORDS Spiritual and Temporal, and to the Honourable the Commons of England in Parliament Assembled.  
HAVING lately presented your Honours with An Essay on Coin and Credit, the chief Design whereof was to show the Necessity of Settling a well-grounded Credit in this Nation, for Support of the Government and carrying on its Trade; I do now with all Humility lay before you Proposals to answer that end, which I have not clogged with Compulsion to the Subject, supposing nothing of this Nature can be good, where a Common Consent, grounded on Interest, doth not make it valuable.  
BANKS, as I humbly conceive, ought chief to be Calculated for the Use of Trade, and modelled so as may best content the Traders. What gives them Satisfaction will answer all other Occasions of the Kingdom. Money passes through the Hands of the Nobility and Gentry, only as Water doth through Conduit-Pipes into the Cistern, but Centres in the Hands of Traders, where it Circulates, and may be said to be used; and among these, Ease, Profit, and Security, are Arguments strong enough to keep a Bank always full; Besides, when the straits of the Government are taken off, greater Sums will come into Trade, which are now drawn out in order to make Advantages above what the Profits of Trade will bring in.  
The Heads whereon I propose to build this National Credit, are these which follow:  
That a Bank be Erected on the Credit of the Parliament, the Profit or Loss thereof to redound to the Nation, whose chief Chamber shall be settled in London, but lesser Chambers in other Places of this Kingdom, at such Distances as may best Answer the Occasions of the Country; which Chambers to account with that of London, and that to Commissioners appointed by Parliament.  
That this Bank shall take in what running Cash shall be offered, and shall give their Notes for it; and shall also allow Interest after the Rate of _____ 3½ per Cent. per Annum after the first _____ 14 days till those Notes be paid, and shall also pay it again to the Proprietors, or any part thereof, when demanded.  
That if any Man puts in his Money for a time certain, not less than _____ 6 Months, he shall receive Interest from the time of paying it in, to the time he is repaid.  
That this Bank shall let out any Sum again on reasonable Security, either Real, Personal, or Goods, receiving Interest after the Rate of _____ 4½ per Cent. per Annum, till the Borrower shall think fit to pay it in, which he shall do by such Parts as will best suit his Occasions, and be discharged from the Interest of what he so pays, and only pay after the Rate aforesaid for so much as doth remain in his hands.  
That if any one desires to take up Money on such Security for a time certain, not less than six Months, he shall have it after the Rate of _____ 4 per Cent. Interest per Annum.  
That Lombard's be Erected to attend this Bank for the benefit of Traders, under Regulations which may encourage Trade.  
That for the benefit of Returns, the Notes given in any one Chamber of this Bank shall be demandable in any other, together with the Interest due till payment, the Receiver allowing for such Returns after the Rate of _____ 5s. for each Hundred pounds in the Chamber where he receives his Money.  
That to prevent Counterfeits, all Notes given out at any Chamber, shall be made payable to A. B. or Order, and Assigned from one to another, each Assigner to be Warrantee for the Note, both to the Bank, and also to every later Assignee.  
That these Notes shall be taken by the King in all Payments, which will make them currant among the Subjects.  
That this Bank do supply the King with all Loans at _____ 4l. per Cent. Interest per Ann. from the time of borrowing, to the time the Money is paid in again, and that it hath the Taxes, or Funds settled by Act of Parliament, for its Security.  
That all Debts Contracted to this Bank, shall be of the same Nature with Debts Contracted to the King, and be first paid out of the Estates of the Debtors; and that Extents shall lie accordingly.  
That an Account be kept of Profit and Loss in each Chamber, together with the Charges of the Officers, etc. And that it be returned up every Three Months, as also Account Currant, to the Grand Chamber in London, where the whole shall be Examined by the Commissioners, and they be liable to the inspection of the Parliament; by which means it will appear whither the Nation gets or loses by it. And Note, That if the Nation doth lose One hundred thousand Pounds per Ann. by the Charge of its Management, yet 'twill get many Millions in the increase of its Trade, though there is no doubt but this Bank will very much more than support its Charge.  
That Registers for Lands be erected in all Counties, etc. where desired, by Act of Parliament.  
That Bills be passed on the Bank by such as are appointed to buy for the Public Use of the Nation, payable at the time of their Agreement; by which means every one will endeavour to Furnish the Government Cheapest, when their payments shall be punctual, the King will save a great deal of Moneys paid now for Procuration, Excessive Interest, etc. and the Fleet and Army will be well paid.  
That the Commissioners do once every Year at least make up the Accounts depending between the Public and the Bank, allowing _____ 4l. per Cent. Interest as before; and make application to the Parliament for its Reimbursement.  
That Bills and Bonds be made Assignable by Law, and the Property be thereby transferred to the Assign.  
That trusties may put the Money belonging to Orphans into this Bank, which shall be a discharge to them for so much of their Trust, the Interest to be duly issued out for the maintenance of the said Orphans; and that all Plate and Bullion belonging to the said Orphans be by the trusties Coined up at the next Mint, and the Money put into the Bank for the use of the said Orphans.  
That the Money in this Bank be freed from Taxes.  
Concerning which Credit I shall briefly speak to these Four Things.  

I. First, Its Security.  
II. Secondly, Some of those Advantages the Nation will reap by it.  
III. Thirdly, I shall make some Comparison between this Credit, and the present Bank of England.  
IU. Fourthly, I shall set forth the necessity of settling the Nations Credit in this present Sessions.   
I. As to the First, It hath the Legislative Power of the Kingdom of England for its Foundation, a Security strong enough, and nothing else can be so, to build this Great Superstructure upon, the well Moddeling whereof, will keep it from being subject to the Designs of Private Persons; This will last so long as the People's Liberties last, for no Change can weaken it, so long as the People of England have a hand in making their own Laws, whose Common Interest will be so riveted and made up with the Security of this Bank, that they will in a short time become one thing, so that nothing less than a Conquest will be able to shake it; This we cannot fear from any Nation besides the French, nor from them neither till Holland is first subdued, therefore as those States must first truckel, so far will our Bank be more secure than theirs; France cannot Erect a Bank on any sort of Security, because the Will of that Prince being his Law, altars according to his present Occasions; Nor can Spain do it; where, not only the Government, but also the Profits thereof, are divided amongst its Ministers; As for Sweden, Denmark and Portugal, the Princes of Italy and Germany, few believe their Circumstances to be such as to render them capable of Erecting a Bank which may draw the Eyes of Europe to look towards it; England only can do it, for as an easy Government is its own Security, so that Security encourages Trade, and these two, accompanied with the Profits offered to a running Cash, will make all Europe desire to settle their Moneys here.  
Seeing then that nothing but the same Power which first Constituted this Bank can destroy it, (a Power with whom we intrust our Lives, Liberties, and Estates) I cannot see the least room left for distrust; for what advantage can any future Parliament expect by a design of seizing this Bank, when the Treasure thereof may be drawn out whilst they are framing the Law; and the Consequence will be the ruining their own Estates, for which they can promise nothing to themselves, save the being possessed of Empty Papers:  
What farther Hazard the Nation can run, must proceed from the Neglect of the Managers, or the Fraud of under Officers, which, Care in the First, and Security for the Last, will prevent.  
II. The next thing is to show the Advantages which England will reap by settling the Credit here proposed; whereof some do immediately attend it, others are Consequential.  
Those which immediately attend it are,  
1st, The Rate of Interest will hereby be brought lower, to the advance of our Lands, and Encouragement of our Trade, by Methods altogether as profitable to the Usurer, who will be willing to let his Money Cheaper, when it shall never lie dead without his Consent, his Security be unquestionable, and freed from the Charges of Litigious Suits, which so frequently accompany doubtful Mortgages.  
2dly, Both Gentlemen and Traders will hereby be supplied with Money to serve their Occasions on such reasonable Security as they are able to give, when that Security shall be strengthened by having the Pre-eminence above all other Obligations; They may also have liberty to pay it in by such Proportions as they can best spare it, when it shall be equally the Interest of the Bank to receive it so, which will never want new opportunities to let it out again.  
3dly, This Credit will give us an Esteem in Foreign Parts, Draw their Moneys hither, and consequently their Trade, and thereby their People, all which will be an Advantage to England.  
4ly, It will supply the Government with Money to carry on the War on moderate Interest, and make its Credit good; whereby the Public Revenues will reach farther to serve its Occasions, and the Ministers of State be freed from many anxious Thoughts which now make them uneasy.  
5ly, It will make Returns from place to place in England both cheap and certain, which will help our Inland Trade, and prevent Robberies, now too much encouraged by travelling with Money; It will also be profitable to our Foreign Trade, by bringing Exchanges low in our favour.  
6ly, The Frauds put on the Country by Counterfeit Notes will be prevented; for though the method of Indentures and Stained Paper now used by the Bank of England may be a Security to itself, yet it is not so to any one else, seeing Art is able to Counterfeit every thing, at least so like, as not to be easily discovered; Now what Satisfaction will it be to those who have received their Notes instead of Money, to be told by the Managers that they are Sergeant, when they know not where, nor from whom to get Reparation; whereas being Assigned from Man to Man, they are taken on the Credit of the Assignor, who runs no other risk thereby, save his Warrant that they are truly what he pays them for.  
7ly, This Bank will be free from Stock-Jobbing, the Bane of all good Designs, which will find no room here, because it cannot be divided into private and particular Interests.  
The Consequential Advantages will be these,  
1st, By this means the Taxes for carrying on the War the ensuing Year, together with the Twenty five hundred and sixty four thousand Pounds which fell short on the Salt Fund, may be raised, by Methods wherein the King's Revenue and the People's Profits shall go hand in hand, without Anticipations.  
2ly, The Funds now settled on our Manufactures, which discourage our Trade, and ruin our Poor, may be sunk and taken off; such are those on the Glass-makers, Tobacco-pipe-makers, Distillers, and others, many whereof have yielded little to the Government above the Charge of Collecting, and the best of them have done great mischief to our Trade; Now seeing these are only so many several Modus' of raising Money, those methods must doubtless do best, which lest injure our Trade.  
3ly, The Debt due to the Transport-Ships may be paid off, and those People, to whose early Loyalty the Reduction of Ireland is very much owing, be contented.  
4ly, The Mints may be kept employed, and the Kingdom thereby filled with Coin.  
5ly, Our Wool may be kept at home, which I humbly conceive can never be done till a good Credit be settled, any thing less will not be large enough to cover the Sore intended to be Cured.  
6ly, The Plantation Trade may be better secured, especially that of Tobacco, and Methods may be proposed to render it more profitable, both to the King, and also to the Subject.  
7ly, The Bank of England's Notes may be brought to Par, and Tallies of all sorts in a short time be paid off at their full Value, which I humbly conceive will be difficult to be done any other way; the settling a Credit on either, or grafting them both together, seem improbable Methods to answer those ends.  
I humbly hope to make Proposals in this present Sessions for putting these into Practice, if a good Credit be timely settled.  
Besides these, many other Advantages will accrue to the Nation, many of which I have set forth in my before recited Essay on Coin and Credit. Pag. 27, 28, 29.  
III. The Third thing is to make some Comparison between the Credit here proposed, and the present Bank of England; which I Humbly conceive is so shaken in its Reputation, as hath rendered it uncapable to be made the Foundation of a National Credit; and whilst we labour to recover it, we may run the hazard of destroying our Trade, disturbing the Government, and keeping ourselves under a lingering War, whilst we encourage the French King to try his utmost Efforts, hoping that our Difficulties at home will force us to accept of a dishonourable Peace.  
'Tis certain nothing can be the support of a National Credit, which is not better, or at least so good as Money; and this is not to be found in the Bank of England, whose Notes whilst they are One per Cent. worse than Specie will always keep their Coffers empty, because no Man will put into it a Hundred Pounds in Money, when he can have a Note of the same Value for Ninety Nine; and the Consequence will be this, that the Lender, or rather the Jobber, will never rest till he is repaid, that so he may be making advantage by a New Purchase; And if this will be the effect of a Credit worse only by One per Cent. than Money, what will it be when 'tis sunk to Sixteen? Whereas on the other side, when a Credit is better than Money, the Coffers will ever be full, because all Men will endeavour to put in their Money, and be impatient till 'tis done; And thus it will be, when the Lender thinks himself secure, and makes more profit by having his Money in the Bank then in his Chest, who will therefore receive out no more at a time than his necessities shall require, and for the same Reason, those to whom he pays it, will endeavour to return it thither again so soon as they can.  
iv As to the Fourth thing Proposed, The necessity the Nation lies under to have its Credit settled this present Sessions. it will appear, if we consider how London now stands in Competition with all England besides as to the Specie of Money, and how it will stand before another Sessions; 'Tis generally agreed, that about One Moiety of the Money of England is already Centred in that great City, and the rest is not enough to pay the Debts owing to it, together with His Majesty's Revenues, Bonds already entered into, and Taxes now to be given, for Six Months longer, besides the Foreign Bills, which are generally made payable there, all which must be returned in Specie; for though by an Act of this present Sessions: Entitled, An Act for the farther remedying the ill State of the Coin of this Kingdom, it is among other things Provided, That all Money that shall be brought in upon Account of Taxes, or Revenues, or Loans, at Five Shillings and Eight Pence per Ounce, shall be carried to the next adjacent Mint, in order to be Recoined, yet this will no way be Serviceable to the Country, unless a Credit be settled, it must otherwise be sent up to London after Coined for want of Returns, the Debts due to the Country being paid there in Bank, which is Sixteen per Cent. worse than Money, and those due from the Country demanded in Specie, so that the Money of England is every Week brought up thither; and then, if it be next considered what Methods are left to the Country to draw it back again, viz. by Provisions and some few other things, 'twill be reasonable to believe, that seeing the supply made from that City to the Country is greater then what is made from the Country thither, all the Cash of England will Centre there in a short time, to the Ruining of the other Trading Cities, and disabling of the Country to pay future Taxes; And this will make the dependence on London still greater, till by its own Bloatiness it must at last burst, when the Estates of the Traders shall consist only in Debts due from the Country, which must still lie out, for want of a Specie to pay them in; so that all the advantage London will receive is, that it will be last Ruined.  
Now if a good Credit be settled out of Hand, and the Mints continued in the Country, the Money that is now there may be still kept there, and Methods found out to increase it, and the Trade of England carried on with an equal Circulation in all places; this will keep up the Rents of the Lands of England, which must otherwise fall in their Values, suitable to the distance they stand in from that great Metropolis.  
If it be Objected, That the Management of this Credit will be very costly to the Nation; I humbly conceive, that the Profits thereof will not only support its Charge, but also bring in a great Overplus, which may be usefully employed to the Nations advantage; yet were this Objection true, nothing can be termed good Husbandry which spoils our Trade, the stopping whereof but for one Month will be many Millions lost to the Kingdom; therefore, whatever Charge is necessary to keep it on foot, 'twill be the Nation's Interest to be at, especially such a Bank as this is, whose Profits or Losses are Compatible with the Interest of the Subject, for, if the Bank loses 'tis because the Subject gets, and if the Bank gets, the Nation hath the Profits, whilst at the same time the Government is supported, and our Trade carried on.  
If by rectifying this, or any better Proposal from a more thinking Head, the Credit of the Nation may be settled in this present Sessions, I have reaped the end I aimed at, the Good and Welfare of my Native Country; which I Humbly submit to your Honour's great Wisdom, and shall be ready to explain any thing that may seem doubtful, when I am thereto Commanded.  
Your Honour's Most Obedient Servant, John Cary. January 5 th', 1696.