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That even Money in Specie (much lefs Paper-Credit) is not the Subject of but an Incident and an Attendant on Trade; for Trade may be carried on, if not fo conveniently, yet effectually, by Barter: And as all Trade terminates in the ultimate Vent and Confumption of Commodities, if the Expence of a Country will be fufficiently fupply'd where there is no Money to be had, 'tis evident that Trade is not leffen'd in Refpect of that Country through the Want of Money; and we have a notorious Inftance of this in the Trade of our own American Colonies and Plantations, where formerly in all, and in fome to this Day, Payments are made in the Product of the Country: And even in Countries where Money is plenty, all Trading is but as it were a general Barter for Commodities, for he that fells to one is continually buying of another, and if Men knew their mutual Debts and Credits (which, as I have faid, are bett difcover'd by the Ufe of Banks) it would appear that a far lefs Sum is requifite to circulate the Grofs of Trade than People have generally imagin'd; and this is evident, beyond Contradiction, by the Management of the Dutch, who lock up the great Bulk of their Money in the Bank of Amfterdam, and make their Payments by transfering from one Man's Account to another in the Bank Books, fo that in Proportion to their vaft Dealing, there is no-where fo fmali an Appearance of Money in Specie, as in the greatest Trading Country in the World; our own Experience alfo, that the Trade of the Nation was effectually carried on while the Money was in recoining, is a farther Confirmation of this Notion.

But this Argument will yet be fet in a clearer Light, by obferving that the primary Design, and proper End of Silver and Gold, is Treasure, and 'tis from thence that they acquire their univerfal Value and Esteem, fo that Men will part with all other Commodities in Exchange for them, with this View, that befides that they will enable them to purchase whatsoever they ftand in need of, what they can fave to lay up will always be ready to serve their future Occafions. 'Tis true that Men foon found out Ways of improving and increafing their Treasure by purchafing Lands, lending at Intereft, and employing it in Trade, but how oft foever these Ways of Cultivation are iterated, ftill the acquiring of Treasure is propofed as the ultimate End.

Money then is no more than Silver and Gold, ftamp'd by the publick Authority, to warrant the Weight and Fineness of the feveral Species, and it was because of the univerfal Confent in the Worth and Efteem of these fine Metals, that Money became the Medium and Inftrument of Commerce through all Civilized Nations; but its Operation is no other but a fhort Way of accounting the Goods deliver'd, the Money paid, the Account is ended; and the Money takes the fame Turn in the Receiver's Hand, he parts with it in the fame Manner to even his Account for the next Commodity he buys or ftands indebted for; and thus the whole Trade of a Nation is managed, the Merchants buy of the Gentlemen, Farmers, Miners, and Manufacturers all the Product of the Country which they can find Vent for in Foreign Markets; the Gentlemen, Farmers, Miners and Manufacturers, buy (through the Hands of the Shopkeepers) and confume the Commodities which the Merchants import; if then we could fuppofe that the whole Body of Merchants fhould trade in a joint Company, and the whole Body of Shopkeepers should do the fame, there would need no more.

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Money to move this whole Engine of Trade than what would fuffice to ballance the Account between them. Nor will it be from our Purpose to add this farther Obfervation, That if the Commodities which a Country fends into foreign Parts fhall produce a greater Value than what will purchase all the foreign Commodities which that Country requires for its Home Expence, the Over-Ballance muft of Confequence be brought Home in Money or Bullion, which will then become fo far an Increafe of the national Treafure, diftributed into the Hands of fuch of the Subjects as have beft exerted their Skill and Induftry to gain it; it will then alfo follow, that those who gain moft will be able to gain the largest Share of the national Trade, though not to increase it, because as is noted before, nothing but the Increase of Confumption can truly increase Trade; for though Men that have Money may buy up Commodities to keep them for a Market, and thereby fecure the future Profit thereof to themselves, yet thofe Commodities muft lie dead in their Hands till Expence calls them

out.

It must yet be acknowledged, that there is a more immediate Ufe and Neceffity for Money in the minute Parts of Dealing, for though the Reason of this Argument will hold as to that too, yet the Affignment of fmall Payments is not practicable, wherefore People muft always keep themselves provided with Shillings and Pence to pay for daily Labour, and for Family Expences; and it is in this Way that what we call Plenty or Scarcity of Money is chiefly perceived, and yet it will eafily be admitted that a small Portion of the Money of a Nation will fuffice to circulate this Sort of Dealing.

Furthermore, let it be confider'd that the Trade of a Nation is principally acquired and carry'd on by the Industry of the Inhabitants, to procure Variety and Quantities of vendible Commodities from the Product of the Lands, Manufacturies, Fisheries, Shipping, and navigable Commerce, and whofoever abound in these are enabled to carry on a greater Trade than they that abound in Money without them; and this will appear plainly by a Comparison between the two Republicks of Hamburgh and Genoa, the former has a fmall Territory, and not more than a Competency of Money, and yet enjoys a great Trade; the latter has a much larger Dominion, is immensely rich in Money, and yet it drives but a fmall Trade, because it affords but a few Commodities.

It is indeed but too true, that there is a fenfible Diminution of the Trade of this Kingdom, but to imagine that this happens through a Scarcity of Money, or because fo much is employ'd in Stocks or in Loans to the Government, is but a vulgar Error, for our Manufacturers have always continued to make as much Goods as they could vend, and our Merchants have never ceafed to export as many Commodities as foreign Markets would take off; but the true Reason is the Stop of the Spanish Trade, together with the great Obstruction of Trade in general, through the long Continuance of the Wars, and other publick Calamities, in our own and foreign Nations: People are reduced to Neceffities, whereby the Expence of Commodities is much leffen'd; and when the Merchant finds a flow Vent abroad he ftops his Hand in buying, and then the Manufacturer flackens in his making, and thus the Circulation of Money among the common People is obftructed, and this caufes the Complaints of the Scarcity of Money, VOL. III. when

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when there may be vaftly more than enough to carry on Trade to the highest P.tch, if there were but Encouragement to draw it out.

Let us next examine the Paper-Credit, by which we mean no more than the Bills or Notes of Banks or Bankers which they give out to pay at Demand, and we shall find these to be no other than Attendants upon Money, and as they pass from Hand to Hand, every Man takes them upon Confidence that the Money lies always as ready at his Command as if it were in his own Cheft, and whenever he finds himself disappointed therein, the Banker lofes his Credit, and for the future his Bills will fignify no more than wafte Paper. It is plain therefore that Banks and Bankers are obliged both in Prudence and Juftice to be very cautious in their Dealing, and whenever they adventure to lend other Men's Money, that they do it upon the most valid Securities, and with a certain Profpect that they can command it at a fhort Warning, and by fuch a Management this Kind of Business may become beneficial to themselves and a Convenience to Trade; but whenever they run out and engage themselves beyond the Power of their Stock, and Traders give in to it fo far as to produce a precarious Credit, this is so far from a Convenience, that it becomes a Mischief; and as in the Time of our clip'd Money, People were lefs fcrupulous to receive it whilst they could as easily pay it away again, and pleafed themfelves in the Opinion that Money was very plenty; (though if the Government had not been fo indulgent to make up the Lofs at the publick Charge, they would have repented their Imprudence in not refufing it at firft) fo Paper-Credit was lately very plenty among us, Payments were made easy, and all Things went fmooth and pleafing, till People entertain'd Sufpicions and Jealoufies, and then the wary Men call'd for their Money to fecure it in their own Chefts, and this has caufed fo much Uneafiness among Traders: The national Stock of Money is not leffen❜d, neither is Paper-Credit, nor ever will be, provided always that it be fuch as People like, but they are afraid of a precarious Credit, and they have Reason, it is a Vice in Trade fit to be difcouraged, and it is good to have it fhock'd fometimes, that Bankers may be warn'd to keep within Compafs, and Traders may have a Care of being too credulous, they know Business may be done very well without it; Bristol, Exeter, and other confiderable trading Places in this Kingdom know little or nothing of it, and we never hear any fuch Noife of the deftroying of Credit from them; and if the London Traders fhould think it beneath them to take Example from Places of fo much less Figure than themselves, furely they need not think themselves too wife to be inftructed by the Dutch in their niceft Managements of Trade, but among them they will find no fuch Precedent.

I have afferted, That Banks and Paper-Credit add nothing to the Increase or Diminishing of Trade, and that there is neither more or lefs Money employ'd in it than would be if the fame Sums had been actually paid from Hand to Hand. Now against this I have heard it argued that daily Experience feems to evince the contrary; for, faid they, If four Men lodge each a thousand Pounds in a Banker's Hands, he is thereby enabled to fupply à Merchant that has an immediate Occafion for one thousand Pounds, and hopes to have it repaid him again before the four should draw out three thousand Pounds of their Money, and for this

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very Loan he only gives out à Note of his Hand, fo that by this Means the Merchant is enabled to carry on his Trade to the Value of one thousand Pounds "more than his own Stock, and this Banker's Bill, without the Payment of one Penny, does in all Refpects answer the End of fo much Money, and confequently this Sort of Paper-Money must certainly conduce much to the Increase of Trade. I have put the Objection as far as I think it can be carry'd, and yet I believe the Argument will appear very flight and fuperficial when it comes to be confider'd.

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1. That if the Banker has no proper Stock of his own in the World to make good the thousand Pounds to his Principals in Cafe of Lofs, he is a Knave to adventure upon the lending of other Men's Money.

2. If he takes not what he believes to be valuable and fufficient Security from the Borrower, he is a Fool.

3. I never faid that it was not very helpful to Trade to borrow Money at Intereft, and this is in Reality the fame Thing, with this Difference (if it may be fo call'd) that the Perfons who lodge the Money lose, and the Banker gets the Interest; and if there were no Bankers, this Occafion in Trade would be fupply'd as well, for all People who can give undoubted Security will find Men enough to lend them Money for a gainful Premium, as we see by Experience in fuch Places where there are no Banks.

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They will perhaps continue to object, That the Bankers give out their Bills ' for more Money than is in their Poffeffion, and then they have the fame Ope❝ration as an Increase of the Species.' I answer to this, That they must either have it in Specie, or the Money is in being, and they know where to command it (which is the fame Thing in our Argument) or elfe they run into a precarious Credit, which is a Cheat in the Bottom, and ought to be avoided as much as the paffing of clip'd Money: But further, Men feldom or never borrow in this Way but for a very fhort Time,and that only to answer fome present Neceffity, but not to depend upon for the carrying on their Trade, and so the Bulk of Trade is not (in their Notion) increased by it.

Again, they inftance The Government's iffuing out Exchequer-Bills to a much greater Value than the Provifion made to change them, and thus they fupply the Place of Money, and do in Effect increase it. Now here it is to be noted, that the Dealing of the Publick is in a quite different Way from the Management of Trade by buying and felling, theirs is in Effect borrowing Money of the Subjects at Intereft or other advantageous Terms, to fupport the National Charge,and it is true that Exchequer-Bills have been serviceable to the Government; yet neither will their Argument hold in this Inftance, for, with refpect to the People, they never did, nor ever will operate any otherwise, but (like other Paper-Credit) according to the Opinion the World entertains of them; they began with Difficulty and Discount, but when it was found that those which had paffed through the Exchequer were exchanged for ready Money to all that defired it, every Body was fatisfied, and they grew into fo general an Esteem that they came to be circulated with a fmall Proportion of ready

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ready Money, and it is much fitter to admit of fuch an Advantage, or to give Way to an implicit Credit that may redound to the Benefit of the Publick, than to allow the fame to the Subjects; but though fuch Expedients may with prudent Management become helpful for a Time, yet it will be a Fault for any Miniftry to depend upon them for the Support of the Government, for when the People fhall come to confider them as precarious, and that they do not certainly command ready Money, they will difefteem them, as we see in the prefent Exchequer-Bills, which are fallen to a Discount of three per Cent, so that to explain the Matter rightly, it is now no other but that thofe that buy them know they gain an Intereft of nine per Cent. for lending their Money upon the Funds appropriated to them. After all, the true Way, in my humble Opinion, to make them uteful to the Government, and their Credit lafting. among the People, would be, to iffue them to no greater Value than the Taxes payable within the Year, and no more than half a Million to bear Date on the fame Day, charging them with daily Intereft till paid, and when the first half Million is brought into the Exchequer from the Taxes, to make Publication that those who are poffefs'd of the Bills of the first Date shall fetch their Money, the Intereft ceafing from that Day; thus when one or two Payments are punctually made, it is not to be doubted but those that bear Interest will be esteem'd better than Money, because of the daily Increase, and thofe that become Specie will pafs currently through many Hands before the Money is called for, by which means fuch a Credit will grow up in the Exchequer, as that probably at the Year's End a Stock may remain in Hand fufficient to circulate two or three Editions of the next Year's Bills to be iffued in the fame Manner.

I now hope that the foregoing Reafoning may be fufficient to induce: judicious Men to agree with me in the following Conclufions.

That Vendible Commodities, and not Money, are the Foundation of Trade. That Trade cannot be increased by any other Means than Industry to procure, and Markets to take off vendible Commodities.

That a little Money well managed will be fufficient to carry on a great Trade, and this Kingdom has abundantly enough to answer that Purpose.

That Paper-Credit is really ufeful to Trade, and that thofe Banks or Bankers who always keep Money enough by them, or within Command, to answer all their Bills, will never lofe their Credit nor injure their Creditors; but those that do not, run into a precarious Credit, which ought to be looked upon as a common Cheat, and to be discouraged to the utmost. And confequently,

That I have fufficiently maintain'd my Affertion, that neither Banks nor Paper-Credit add any thing to the Increase of Trade, and that there is not more or less employ'd in Trade by that means, than would be if the Money were actually paid from Hand to Hand.

I am further cavil'd at for faying, 'That neither Bank nor Bankers give out their Bills till the Money is actually lodged in their Hands.' Unwary I, that had not the Forefight to add, or Money's Worth, that fore had taken away all Occafion from fuch cunning Objectors; but let's come to Demonftration, if they will tell us where the Bank or Bankers grow that will lend their

Bills

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