A PROPOSAL, SHOWING How this NATION may be vast Gainers by all the Sums of Money, given to the CROWN, without Lessening the Prerogative. Humbly Offered to the KING's Most Excellent Majesty; the Lords Spiritual and Temporal; and to the Knights, Citizens, and Burgesses, Assembled in Parliament. By WILLIAM KILLIGREW, To which is Prefixed, The late Honourable Sir James Sheene's Letter on the same Subject; And the PROPOSER's Answer. A LETTER from Sir JAMES SHEEN, (writ by himself Three Weeks before his Death.) SIR, I find our Leisure Hours, not happening at the same Time, we cannot Meet so often as I desire; But, if you please, we may some times Converse on Paper, for Diversion I have often reflected on our last Discourse of Banks and 〈…〉 England 〈…〉 ving found your Printed Proposals, amongst many others; which, comparing with Yours, I find Yours Metamorphosed, (but not Mended) in almost all their Designs: And I must Infinitely blame You, for not Reprinting your Proposals, with the Additions we discoursed of lately; this being a fit Time, when the whole Nation has approved of Banks, and the Currency of Credit, and the Usefulness thereof, as well as the Necessity our Coin has brought us to. Pray, First, do me the Favour, to Answer the following Questions, at your Leisure. I. How do you like the Securities Proposed by the other Banks? II. Do you believe, they will reap Advantages by their Undertake? III. Will their Banks make good the Word, NATIONAL, and for the Public Good, and Accommodation of Trade? IU. Why do you call your Paper, PROPOSALS, since by your Discourse, I find you design to do all, and more than the now Banks pretend to do, by adding Clauses in the Act of Parliament, if your Proposal had succeeded? V. You tell me, your Security is not only Greater than any of the other Banks, but greater than any in the known World; and a hundred times more Security, than would be Necessary, or demanded; Pray show me, how that can be? VI And Lastly, I desire your Leave to Reprint your Proposals, with the Additions, if you will not do it yourself; and you will extremely Oblige, SIR, Your Most Humble Servant, J. SHEEN. WILLIAM KILLIGREW his Answer to Sir James Sheene's Letter. SIR, ACcording to your Desire, I here send you my Proposals, with some Additions, and your Questions, Answered: You may believe, I am not a little Proud of your Approbation of my Proposals, which encourages me to Reprint Them myself; although, I do protest, I do not believe it will be set on Foot, unless I could back it with a large Stock, or an Estate; which many People take for Sense: Besides, I have met with strange Objections, which the Objectors positively Answer Themselves in the Affirmative, without hearing me speak. One Objection is this, This would be too Easy. Another asks, How will Men, in Power, be able to Impose on the King, and the People, if this were set on foot? I must confess, I did not imagine, a Bride could be too Handsome, or her Portion too well Paid. I do confess I see my PROPOSALS Metamorphosed in many others, but not Mended; I will not exclaim against their Industry, who, seeing my Proposals have no Effect, have made Proposals for their own private Advantage; But, in my Opinion, very dangerous to the Government: For, if they succeed, so great Power and Riches will accrue to the Undertakers, or Governors, that they will become our Masters: We must Vote, Elect, and Choose, as they please; or they will Call in, and allow no Prolongation, but Enter and Seize. And, if any Accident hinders their Success, or moved by Interest or Necessity, to stop Payments, pray, whom can you Sue? May we not be Necessitated to lose 5. 10. 15. or 20 l. per Cent. or more, and be glad we can get any thimg? May they not have People ready to buy the Bank-Notes of the Necessitous, with the Bank's-Money. I must confess, Dr. Hugh Chamberlen's Land-Bank the Best, if he has a Stock in ready Money to help the Circulation at first; altho' His is the least comprehended by the Generality: But still the Profits accrue to a particular Society, and not for the National Use. Mr. Robert Murray, who was the First that put my Thoughts on these kind of Banks, is (at last) become of my Opinion, to set up for a Real National Good, which heretofore he did not approve of: Now I look on his Design as the Best, because it is the same with Mine, only in other Words: He talks of the Rational Part, and I state the Practical Part; which, I believe, he will concur with, as I do with Him. I call my Paper, PROPOSALS, because it is not a Bank; nor can I call it a Cantore, like the General Cantore in the United Provinces; because, This doing the Duty of Both, and more, it will bear neither of the Names, and would give our Critics occasion to Exercise their imaginary Wit; it may be Christened, if it sueceeds: And, having convinced You, I dare boldly say, I do not fear the Convincing any that will take the Pains to discourse the Matter fairly. What I have added since my First Printing these Proposals, will, I hope, answer your other Questions: Which is all, at present, from SIR, Your most Humble Servant, WILLIAM KILLIGREW. Note, Sir James Sheen fell Sick, and Died Eight Days after this Letter was writ. A PROPOSAL, showing how this Nation may be vast Gainers, by all the Sums of Money given to the Crown, etc. I Put this Design in Writing, at the Request of several considerable Members of both Houses of Parliament, in the Reign of King Charles II. when a War was voted against France; but a Peace being concluded, no Money was given; and since that, I have had no Opportunity to do my Country the Service I designed by this Proposal. But the general Approbation this Paper had from all that saw it, in Three several Parliaments, and very many considerable Members having declared, that they could not couch any one Rational Objection against what I here humbly offer; I have thought fit, in this juncture of Time, to Revive this Design; and most humbly refer it to the Wisdom of the KING, and both Houses of Parliament. As I have not the Nomination of the Sums now to be given to the Crown, so I shall only suppose a Sum of Two Millions; but the Case will hold on all Occasions, of the same Nature. I humbly beg Pardon, if I am plain and short; I pretend not to Eloquence; I shall first set down what I would have done, and then show what Advantage this Nation will reap by so doing: Lastly, I will Answer all Objections that have hitherto been made, and shall be ready to Answer any Objection that may hereafter be made. I cannot vary from my first Proposals; but have added something on Sir James Sheene's Letter and Approbation. PROPOSALS. I. SUppose, that a Tax be set, that will raise 300000 Pounds per Ann. this Tax to continue till 2000000 l. is paid, with the Interest and Charges. II. Let there be an Office erected in the City of London, near the Royal-Exchange; let the Tax of 300000 l. be paid into the said Office, in the same Species, as they receive it; Because most of the Taxes will be paid in Money, in small Sums, which they must not change for Bills; yet they must take Bills, where the Sums amount to so much. Now, this is necessary to create a Cash, to pay Interest, or Foreign Bills; which must be composed thus. 7 Commissioners, of which one or more to be Treasurers,———— 7000 l. per Ann. 1 Secretary,——————— 500 l. 10 Clerks,———————— 1200 l. 2 Doorkeepers,—————— 200 l. 6 Messengers,————— 300 l. House-Rent, Fire, Candle, Paper, etc.— 800 l. —— 10000 l. per Ann. III. The Tax and Office being framed, it must, by Act of Parliament, be ordered, that the Office shall be governed thus. IV. The Office must be open, and the Commissioners must sit from Eight of the Clock till Twelve every Morning (except Sundays, and holidays) and from Two till Four in the Afternoon. V. The Office must accommodate all Persons, without Fees or Delays. VI The Office must pay every Creditor, in as many Bonds as the Creditor pleases; and at the Creditor's Choice to have his Name in the Bonds, or Blanks; saying, Payable to A. B. or to the Bearer: This Last is Best, because of transferring them. VII. No Bonds to be above a Hundred Pounds, nor none under Five; for the lesser the Bonds are, the better they will pass in Trade. VIII. The Act of Parliament must also make it Treason for the Office to issue out more in Bond, than is ordered by the said Act; else, like too much Allay in Coin, the Bonds would be embased: These Bonds must also be Signed by Three Commissioners at the least, besides the Secretary. IX. At the Expiration of every Six Months, the Office must pay the Interest of every Bond standing out, and according to their Date; and mark those Bonds they design to pay off, at the Expiration of the next Six Months, by writing on these Bonds, thus, This Bond shall be paid off, Principal and Interest, this day Six Months: This must also be Registered in the Folio of those Bonds, in the Office-Books. X. The Commissioners must issue out these Bonds or Warrants from the Treasury; by which Means, the Crown, nor the Treasury, are not lessened, but remain still the Fountainhead. XI. These Warrants must be brought by some Person or Persons, Authorised for that Purpose, to avoid false Warrants. The Treasury must also send a Letter of Advice, before such Warrants may be accepted. XII. If any Bonds are Lost, Stolen, or Burned, the Parties concerned must give Notice thereof to the Office; to the end that the Office may stop them that bring the Bonds, and give Notice thereof to the Owners: But, if the Bonds are so Lost, or Burnt, that they come not to the Office, than it must be made public in the Gazette several times; and if the Bonds appear not in Six Months, the Officers must give the Owners new Bonds, on good Security, that they are the Parties whose Names are last Registered in the Office-Books for the Lost or Burned Bonds. XIII. The same Act that settles the Office, and the Tax, must declare, That the Crown has Credit at the Office for Two Millions, payable thus; The Parties, concerned to receive the Money, shall, on Warrants from the Treasury, receive the Office-Bonds, and 6 l. per Cent. per Ann. Interest. That the Interest shall be paid every Six Months, and Six Months warning given before the Principal shall be paid off: This, because People shall have time to find out other ways to dispose of their Money, to new Advantages. XIV. The Act further declaring, That the Office-Bonds shall not only be transferrable, but Currant, as Money, in all Payments whatsoever, even into the Exchequer: And it must be made Treason for any of the public Receivers, to refuse the Office-Bonds, when tendered in the Payments. Counterfeiting of these Bonds must also be made Capital; altho' I know, 'tis impossible to Counterfeit the Bonds, which must be made on a Marbled, or Flourished Paper, fairly Tallied and Registered in the Office-Books, where the Counterparts must be kept. ☞ On this Paragraph depends the whole Proposals, the Objections, and Sir James Sheene's Questions: This causes the Bills, or Tallies, to be a new Specy of Money, superior to Money, made of Gold or Silver: This makes the Security a hundred times more than ever was proposed or given; because all the Revenues of the Crown, all our Trade and Consumption, is Security, as well as the Taxes, set to pay the Principal and Interest, and Charges; which Security, is far more than I have said, of a hundred times more than was ever given: This unites the King, and People, by the strongest Bonds; I mean, their Interest, to support each other: And it was an Argument for the Million-Lottery, That it would oblige so many Families to be Friends to this Government. I propose the Bonds on Marbled Paper, because less Burdensome, and easiest to Register, and turned to their Folio; else a Tally of Wood, or Metal, is as good. Now, I ask, If all our late Tallies had been made Currant by a Law, how would our illaffected, and our Money-Mongers, have imposed on the necessitous; who have been forced to sell at vast Loss, and intolerable Usury of the Buyers? Consider the vast Loss our Trade has had of late, by This, and the Bank-Bills, and what People have suffered for want of their Money: How impudently have Men been refused their own Money, payable on Demand; not that it is possible, that the Nation wants Money, or Bullion, to Circulate our Trade. Many cry out, That our Money, and Bullion, is Exported, never to return; I wish our Knavery, Usury, Factions, and Self-Interest, were Exported; and am confident, these Proposals will send away a great part of these Destroyer's of the Public Welfare; a worse People than our Coiners, Clippers, or Robbers. Pray, Is not a Government obliged to make Laws for the Public Good? And, do we not daily desire the Increase of Trade? Ought not a Government to oblige the People to do what is for their Advantage? Who will not force a Mad Man to be let Blood, and take wholesome Medicines? Is not the Nation in a Distraction about their Money and Credit? Is not this Method a Wholesome, Secure, and Infallible Cure for this National Distemper? Why then should not the Government oblige Men to take this proposed Currant Credit, grounded on so Solid, and so great a Security, and so generally Advantageous? XV. It must also be made Capital for the Office to make any Use, or Private Advantage of the Public Cash; and they must order it so, as to have a good Cash, because many times the Tax may not be paid in, time enough; it may be, a Month or two later than the Interest is due. And a considerable Cash may be kept, to answer Foreign Bills, if ready Money be required: This I add, to answer a Noble Lord's Objection: But, suppose these Bonds, or Bills, will not pay Foreign Bills, I shall make Use of a Saying of Dr. Chamberlain, viz. That a Stage-Coach is a good Convenience to a Man, to go to York; yet that Coach cannot set another Man down at Exeter. And what is hereafter added, will bring in Cash enough, to answer any Foreign Bills; besides, how will the Bills be paid, without this Proposal, which must, of necessity, make Gold and Silver Coin free and common in the Nation? XVI. These Bonds being thus made Currant, and Grounded on a Law, and the Security of the whole Nation, they will not only be of an Intrinsic Value, equal with Gold and Silver, but superior to either; and of the same Consequence, as if so much Money were Imported, and given this Nation, to Trade with. XVII. I say, these Bonds will be superior to Gold or Silver, because these Bonds cannot be Counterfeited, Lost, Stolen, or Burnt, without Recovery; they will be a new Speices of Money, that will grow in our Coffers, every day increasing; which Gold nor Silver does not, but is liable to many Inconveniencies; as Thiefs, False and Clipped Money, Counterfeiting, Loss of Time in Counting, and Chargeable to carry in large Sums. XVIII. These Bonds will soon become our best Payments, and Coin, for every one will covet them; nor will any scruple to fetch their Payments at the Office, more than now they do fetch their Money at the Exchequer, or Lombardstreet; and the Bonds must be transferred at the Office, because the Counterparts are kept there; the Office becomes Witness to the Payments, and avoids Disputes at Law. XIX. All Mankind must confess, That Credit grounded on a good and solid Security, if it can be made currant, is not only as good, but better than Money itself; for Money does no Man good, until he has disposed of it for good Security: And I desire to know what Security can be offered so great, and of so Intrinsic a Value, as these Bonds. Note, There is no end of Security, as long as there is a Fund to support it; it runs ad infinitum, and we can never be overburthen'd with it; for it stops when there is no Occasion for it. The First Years Account stated. XX. In Bonds the Debt is——— 2000000 l. For Interest at 5 l. per Cent. 120000 l. 130000l. For the Office Charges— 10000 l. The Tax comes to——— 300000 l. The Charges————— 130000 l. There will rest in Cash—— 170000 l. Thus then at Twelve months' end the Interest & Charges of the Office will be paid, and there will be 170000 l. in Cash; out of which may be paid 150000 l. of the Bonds, and keep 20000 l. in Cash, and for the future Pay off Part of the Debt, proportionable every Six Months, keeping still a Cash of 20000, or 30000 l. more or less, as shall be thought fit. Thus the Debt of 2000000 l. at the Years end, is diminished to 1850000 l. and will dwindle away in a few Years, by a Rebate of Interest upon Interest; and by a small Tax, the Nation will not feel. XXI. Now, in case greater Sums must be given, or a War carried on, which may require large Sums, and yearly, so long as a War lasts, than the Taxes must be made proportionable. But still there will be no necessity ever to set any Tax above what will pay double or triple the Interest of the Money given to the Crown: And now, let us see the Advantages that will arise from this Method of giving Money. Benefits arising to the Crown, and to the Nation, by this way of giving Money. I. BY this means the Crown receives the entire Sums of Money, given by the Parliaments; and the Crown has the Money immediately, without staying till the Taxes come in, or being obliged to take up Money, or buy Stores at hard Rates, and paying by uncertain Assignments; so that, part by the raising and collecting the Taxes, part by taking up Money, and buying Goods on Credit; This will save very near one Third Part of what is given by the Nation; besides the great Disappointments our Kings have met with by Delays, and the Nation also; who expect from the Crown the same thing, as if the Crown had the whole Sums given, and in due time. II. The Crown will buy all Stores, at least, 20 per Cent. cheaper than usually; for Men will prefer these Bonds before any Assignments, or Money itself; because these Bonds will increase in their Coffers, and are not liable to a Postpone. For the Crown may as easily 〈◊〉 back the Money paid out ●● the Exchequer, as stop what is given out for Money, and made currant by a Law; besides, these Bonds will be in the Hands and Possession of the People. III. This Currant Credit will do the duty of Gold and Silver; and is the same thing in all respects, as so much Money, Imported and Distributed, and added to the general Stock of the Nation; which will increase our Trade proportionably, as the Crown will soon find, by the Increase of the Revenue; for we have not Seven Millions in Money, to support our Trade, and Consumption; and by adding Two or more Millions of this currant Credit, we add proportionably to our Trade and Consumption. IV. These Bonds will produce a double Gain to the Nation; first, by drawing out the Money, which lies dead for want of Security; secondly, Men will Trade with these Bonds, or draw the Interest, which makes the Bonds daily of more Value, altho' they lie dead in their Coffers. V. Our poorer sort of People may improve their small Talents, without the Expenses of Scriveners, Brokers, and the like, who daily make a Prey of them, and often let their Money lie dead, and take not always good Security: But, by this Method, Men may put their Money to a secure Interest, and without Charges, and have their Money still in their own keeping, ready to make a new Advantage by it; which they cannot do by our usual ways, nor be secured, that they shall have their Money or Interest, when it is due. This Paragraph ought to be well considered; It shows great Advantages. VI This undeniable Security will bring Bullion from abroad, as Holland, and other Places, where they draw but 4 per Cent. and it will disperse our own Money, which now lies dead, for want of Security, and make it more free and common amongst us. VII. Our Retailers, into whose Hands paseth the greatest part of our currant Cash, will Change or Buy these Bonds, as soon as they have but 5 or 10 l. in their Shops; for they let such Sums lie by them, till they have a Stock, either to pay a Debt, or go to Market, which they may as well do with these Bonds; by which they will gain more in the Interest, than their Share of the Tax will come to; therefore they'll pay Taxes with Joy. VIII. These Bonds (like Money) will pass through five or six Hundred Hands in the Year, every Trade gaining 10 l. per Cent. as they must needs do, or they cannot subsist; because most Traders pay 6l. per Cent. for the Money they Trade with. Now, I will suppose these Bonds, the one with the other, pass through forty Hands only in a Year, every Trader gaining but 5 l. per Cent. then every 100 l. in these Bonds produce 200 l. per Ann. gains to the Nation, as long as they are standing out. If so, than the Nation may well dispense with the Charges of the Office and Interest, since for 2000000 l. given, the Nation will gain 4000000 l. the first Year, little less the second and third Years: Consider, then, the Advantage accrues to the Nation on the whole, and before all the Bonds are paid off. IX. I could say much more on every Paragraph, in this Paper, but am loath to be too tedious; besides, this Business requires to be discoursed; and it does not become me to say more, till commanded. Note, This Nation would soon be weary of paying a yearly Tax, to support a Years War; and it is easier to pay 20 s. a Year, for twenty Years successively, than to pay down 20 l. at once: Now, by this Method, the Taxes will not be felt, altho' they last many Years; and, if required, I could name Taxes, that would scarce be felt. Thus far, this may be accounted a Cantore, like that of the States-General. A Clause may be added to the Act, Declaring, That the Office may issue out Bills to any Person, on Lands, Houses, Ground-Rents, Merchants Goods, or any thing that is a good Security, at per Cent. and Redeem the same by Parcels, in equal Sums; the Merchancs paying Warehouse-Room for Bulky Goods, with Money, or Office-Bills, which must be concealed. The Office to be obliged to impart no Man's Concerns to any other Person, unless the Party concerned desire it. By this; Men will be free from the Charges of Procuration, and Prolongation-Money; and, by redeeming by Parcels, it will be more easy; and a great Help to the Borrowers. Now, we need not fear too many Bills will be standing out; because, if not necessary, they will not be issued out; and if necessary, the Necessitous aught to be helped; and, as fast as they Redeem, so much of the Office-Bonds will be cancelled. Note, This Addition makes this Office different from a Cantore. And the Act may further declare, That a distinct Apartment, in this Office, shall be fitted; where all Merchants, and Others, may lodge their Cash, as in the Public, or Private Banks; Provision being made, by the Act, for the Security of such as lodge their Cash there, against any Objections of our Critics. And this being under the Security of the Government, Men will not be liable to such Losses, as has been by Private Banks. Credit, thus Established, will of necessity make Money more Plentiful, and Common amongst us. As it is not my Part, to write how much must be raised, or advise how; I shall on'y set down some Things, and the Sums Blank. Millions. Suppose the Debts of the Nation, and Anticipations, that can be paid off, amount to————— To carry on the War the Year 97.——— —— The Interest, and Charge, comes to——— Than the Taxes must be only double the Interest,— —— Towards this: First, The Excise, if set on Malt, it would be easily Collected, and with a third part of the Charges the now Excise is Collected,———— The Customs, according to the old Book of Rates,— The Window-Tax, as it now is,——— The Land-Tax, if the Excise continue on Beer,—— Millions. A Tax on Course Cloth——— A little on each On Fine Cloth,—— On Stuffs,—— On Silks and Velvets,— The Salt-Tax——— The Paper-Tax,———— These Taxes, or any other that shall be thought fit, must amount to so much as will pay what is necessary. OBJECTIONS Answered. Obj. I. THIS is a new Project; and England has long been a Glorious Na●●on, without this Proposal; and new Methods will not be easy, Answ. This Objector should then wear a Ruff and Trowses, in lieu of Rowling-Breeches, and a Cravat, which his Great Grandfather never wore; and, that we have now altered our Habit, is, because the Habit we now wear, is easier than formerly were worn: Nay, a Government is alterable, when not easy; and altered for the Better. Obj. II. Some think this Credit will lessen the Value of Houses and Lands. Answ. These Objectors allow then the Credit to be good, and better than Houses or Lands. Let these Men make the Titles of their Lands and Houses to be Clear and Good, than this Credit will do them no harm, but the contrary; if we have more Trade and Credit, Men will become more able to buy Lands and Houses, which are always preferable. Holland has vast Sums standing out in Obligations, or Bonds, transferrable, but Currant; yet so valuable, that I have sold them in London, at 6¼ per Cent. and this does not hinder Lands to be at 40 and 50 Years purchase: And it was this kind of Credit, or Obligations, that raised that State, and supported it. Obj. III. How secure us against the Misfortune of the Bankers, or a Strong Hand? Answ. The Bankers Money was in the Exchequer; These Bonds will be in the Hands and Possession of the People: And I have already said, the Crown may as easily call back the Money, paid out of the Exchequer, as stop what is paid out for Money, and made currant by a Law. Secondly, The Office will have little in it, worth seizing; and we may as well fear the Plundering of Lombardstreet, or the City. Obj. IU. We shall have nothing but Paper-Money. Answ. If it does the same Duty, it is as good. By adding this Currant Credit, we do not Banish Gold nor Silver, but make it more Free and Common amongst us; and Men will rather hoard up these Bonds than Money, because this Species increaseth in their Coffers. Obj. V. My own Objection is, That Men will hoard up these Bond●, as the Best and Securest-Treasure, and so spoil my Design of making them run in Trade. But, if they do, they must purchase them with Money or Goods; which then will turn to the same Account. If more Objections arise, They shall be readily Answered by William Killigrew.