Part 14

NATIONAL CREDIT.

By John Cary, Esq;

The Fifth Edition, Corrected.

LONDON:

Printed in the Year M.DCC.XLV.

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 shew 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 clogg’d with Compulsion to the Subject, supposing nothing of this Nature can be good, where a common Consent, grounded upon Interest, doth not make it valuable.

Banks, as I humbly conceive, ought chiefly to be calculated for the Use of Trade, and modeled 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 Centers in the Hands of Traders, where it circulates, and may be said to be used; and among these, Ease, Profit, and Security, are Arguments to keep a Bank always full: Besides, when the Streights of the Government are taken of, 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 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 ### per Cent. per Annum, after the first ### 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 put in his Money for a Time certain, not less than ### 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 ### 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 Lombards 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 ### 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 ### or Order, and assigned from one to another, each Assignee 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 current among the Subjects.

That this Bank do supply the King with all Loans at 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 lye accordingly.

That an Account be kept of Profit and Loss in each Chamber, together with the Charges of the Officers, &c. And that it be return’d up every three Months, as also Accompt Current, 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.

That Registers for Lands be erected in all Countries, &c. where desired, by Act of Parliament.

That Bills be past 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 Money, paid now for Procuration, Excessive Interest, &c. 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 ### 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 transfer’d to the Assignee.

That Trustees 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 Trustees 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.