Decay of Trade. A TREATISE Against the abating of INTEREST. OR Reasons showing the inconveniencies which will ensue, by the bringing down of Interest money to six or five in the Hundred, and raising the price of Land in this Kingdom. By a well wisher of the Commonwealth. Printed at London for John Sweeting. 1641. Reasons Against the Abating the Rate OF INTEREST. Wherein first is showed how that it is not necessary to the raising of the price of Lands, for that (beside the too much assistance of accidental causes) Foreign Trade may by a more beneficial way effect the same. THe Purchase and price of Lands in this Kingdom, doth rise and fall by no other a The price of our Land may be raised also by a great increase of our people & strangers, which would cause the more consumption of foreign wares, & a less Exportation of our own, whereby the Kingdom would be soon impoverished. ways and means (for the common benefit) then by the profit or loss which is made by the over or underballance of our b We have no Treasure but by Trade. Foreign Trade, that is to say, when we bring in and consume yearly a less value in Foreign wares, than we export in our own Commodities, we may rest assured that the difference is brought in and doth remain to us in so much Treasure. And contrariwise, if we consume a greater value in foreign wares than we do export of our own Commodities, Then is our Treasure exhausted to balance the account with strangers. Daily experience doth also teach us, that in those Countries where moneys are scarce, there the Lands and native wares are c Ireland, Muscovia, Poland, the East Indies, and many other places: cheap, so likewise where money doth abound, there the lands and wares are d Spain, Italy, the Low Countries, etc. dear; And thus it appeareth that although this Kingdom may be rich in itself, yet it cannot be enriched but by e Our wares make us rich, our Treasure doth enrich us. Trade only, by adding Treasure to our wares, which Treasure being the price and measure of all our other means both personal and real, it doth thereby enable many, and multiply the number of Purchasers, which consequently doth cause the sellers of Lands to raise the price; But if Lands be too much raised, than the proprieties of moneys (or many of them) will endeavour to deliver it for more profit at Interest, to supply the occasions of those who will employ it in foreign Trade or otherwise; which doth increase his Majesty's Customs and Subjects Employments. The ill consequences of the Abatement of Interest. And if the Rate of the Interest be abated thereby to enforce the moneyed men to turn all their means into Lands, than many losses will presently follow both to the King and his Subjects; First, if we take the business as it now standeth in this Kingdom, There are many men who have great sums of ready money, although they have neither Skill nor f Much money is put to Interest by the Gentry, Widows, and Orphans. Will to manage it in Trade of Merchandise, except they should do it to the ruin of themselves and others also, who have more knowledge and experience; yet their money is still taken up at Interest and employed by able Merchants to the benefit of the King and his kingdom; Again, if the Rate of Interest be abated, it will presently decline the quantity of our Trade, for moneyed men will find means to make it over into the g The Banks of Italy do manage the moneys of their Gentry Widows, Orphans, or whosoever. Banks of Italy, and other places, where it may yield them greater profit. The proof of this Truth is seen in the practice of divers Nations, especially, I will instance the Dutch, whose Lands are h The Hollanders wealth & foundation for foreign Trade proceeds not from their Native wares, but from their fishing in the English Seas, & other industries which here I omit. little and very dear, because their people are many, and although the Interest usually given in their Country, doth yield them at least double the profit of their Lands, yet they convey a great part of their moneys into other Countries where they find most gain. And it is very probable that at least one third part of all the moneys which are delivered in London at Interest, appertaineth to the Dutch, who manage it here by their Factors. And if it be objected that it is our prejudice to suffer Strangers to carry away the profit of Interest from his Majesty's Subjects, The answer is, that (beside their freedom of Commerce) this loss by Interest is repaid with great advantage to his Majesty in his Customs and Imposts (outward and inward) by the increase of trade, which addeth also unto the Subject's employment in shipping and divers other kinds. The Merchant also who disbursteth the Interest to the Stranger, doth thereby reap a greater benefit to himself in his trade; which causeth him to take up the money at Interest: All which gains may import about 40 per Cent. yearly. Now if the Interest here were brought to a lower Rate, than our Trade would certainly decline, and the afore written profits to his Majesty and his Subjects would be lost, and lands would fall in price. For there is no doubt that not only Strangers, but also the English would convey their moneys and their plate also (if it be coined into money) into those i Italy, Turkey, Spain, the East Indies, Ireland. etc. Counties where they can find greater profit: Nor can any strict law prevent this evil if gain may be obtained. And if it be yet further objected that a low Interest will give the Merchant greater encouragement to take up money to enlarge his trade. The answer is already given, that when the Interest is low, the Merchant shall find little or no money to take up, which would disaccomodate and perplex others also who are no Traders, and force them daily to sell Lands at k Where money fails there land must fall. low rates to supply their occasions, unto which I add only, that 2 or 3 per Cent. abated in Interest, is fare less considerable in the Merchant's gain than it would prove in the moneyed man's loss. I might produce some other reasons to prove that the abating of Interest will carry our money out of this Kingdom, decline our Trade, and bring down the price of our Lands, etc. but I omit them for brevity. The Interest which is given in several Countries: 12 per Cent. yearly. 15 per Cent. yearly. 18 per Cent. yearly. 20 per Cent. yearly. 25 per Cent. yearly. 30 per Cent. yearly. The Exchanges for Italy upon the Fairs ●f Piacenza and other places, give 8, 9, 10.11, ●2, per Cent. more or less according to the ●●mes of plenty or scarcity of money in those Countries. Reasons against raising the Price of our LANDS. IF the price of Lands should be improved to thirty year's purchase as is desired, shall not the fruits thereof, the Labourers hire, the Cattles, and all men's expenses be raised in proportion? Shall not the Native Commodities of this Kingdom, which serve for foreign trade, as Corn, Wool, and the like together with their manufactures be proportionably raised? Italy is a rich Country, and very populous, which makes their Land worth near thirty year's purchase, whereby also their Corn Victuals, Cloth, etc. are sold at fare greater prices than we pay here in England, where Land is much cheaper, and the people nothing near so many in proportion, each Country's bigness duly considered. When our wares are thus made dear, whether shall we carry them? in what Country shall we vent them? when at the prices they are already raised of late years, we find that the Merchant's gain is so little that many are discouraged to follow their Trade as formerly they did; Is not the use of our Wares in Foreign parts much declined, Mines of Lead and Tin being lately found out in other Countries. The Company of Merchant Adventurers did heretofore vent fourscore thousand yearly in the Nether-lands. And now (since the disturbance by the Project of Dying and dressing of our here, which had a fair show, but a bad effect) they vent not above thirty thousand yearly, which it seemeth also they perform to very little profit; for the Netherlanders of late years do make as well, and as good cheap as we can do, with Wools from Spain, which are of our English race granted them in the Reign of King Henry the seventh, and Queen Mary. Now, consider I pray you, how, and where we shall vent our Native Wares, if we raise their price to a higher rate than other Nations can and do afford them. The Exportation of our Corn which formerly returned us much money is now totally lost by its a The multitude of strangers which are now in this kingdom do much increase our consumption of foreign wares & decrease the Exportation of our native commodities, which is a direct way to impoverish this kingdom. They also beggar our poor people by depriving them of their manufactures & raising the price of corn, victuals, rents, & the like. dearness here, And if our exportations thus decrease daily, how shall we perform our Importations without exhausting our treasure. I must confess that within the time of my remembrance the vent of our Cloth in Turkey is increased about ten thousand yearly, but the reason why, is worth our observation. The Venetians for a long time did serve Constantinople and divers places in Turkey with broad Cloth, until the English about 50 years past, entering into the Trade in those parts, and being able to afford their Cloth better cheap than the Venetians, they did in few years drive them totally from that trade of Cloth in Turkey. And thus we see by plain proof that cheap wares do increase trade, and dear wares do not only cause their less consumption, but also decline the Merchant's trade, impoverish the Kingdom of Treasure, lessen his Majesty's Customs and Imposts, and abate the Manufactures and Employments of the poor in Shipping, Clothing, and the like, which are matters very considerable to be well and duly ordered for the good of the Commonwealth. FINIS.