Part 1
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A STIPTICK FOR A _Bleeding Nation_.
OR,
A Safe and Speedy WAY to Restore _Publick Credit_, and Pay the _National_ DEBTS.
[Printer's Decoration]
_LONDON_:
Printed for J. ROBERTS, near the _Oxford-Arms_ in _Warwick-Lane_. 1721.
[Printer's Decoration]
A STIPTICK FOR A _Bleeding Nation_.
OR,
A Safe and Speedy WAY to Restore _Publick Credit_, and Pay the _National_ DEBTS.
Do but a little consider, and you will soon find, _Pride_ and _Luxury_, _Corruption_ and _Bribery_, are the greatest Causes of our present Calamities; and if you do not discourage the Two first, and punish the Two last Evils, we shall speedily come to Destruction, and God will blast all our Endeavours.
The lively Instance of late, proves to us the _Ruin_ those Evils carry with them: And is there not one good Man, that dares to stem the Tide that is come in upon us, and save us from being drown'd?
Is there not one Man that has _Honesty_, _Interest_ or _Ability_, to put in Practice what is so necessary to _preserve_ their Country?
Let us shake off then those plaguy Sores that corrupt our _Vitals_; and if we intend to be a Happy and Flourishing People, we must promote _Piety_, which admits of no Corruption; _Honesty_, that listens to no Temptation; _Sincerity_, which never deceives his Neighbour; _Sobriety_ is the Way to Honour, and _Industry_ brings Riches, which Frugality preserves: He therefore that desires to be _truly Great_, must possess these Virtues, and prefer _Publick_ to _Private Interest_.
What is the Reason that all Inferior Places of Profit and Trust are _bought_ and _sold_, and true Merit wants its _Reward_? Is it not because the _Devil_, when bought, will be sold?
Are not our Exports of _Bullion_ so great, that, as fast as it arrives, it goes away? Which the Publick Entries every Week demonstrate. And were it not for the daily Supplies from _Portugal_, we should have nothing but our own _Specie_ to answer all Demands.
It is obvious, that One Single Corporation has put us into this Confusion: And will the _Government_ again trust to _that_, or any other? I should not desire a Friend of mind to be the _Adviser_.
Can all the Corporations in _London_, put together, be so well depended upon, as the _Exchequer_; which is supported by the _Government_, who are able and willing to make good all their own Contracts, but are not answerable for the Losses of any Corporation; all being oblig'd to sit down and be content with their own?
Can any Corporation desire more, than that the _Government_ compel their own Members, and their Estates, to make good to answer for their _Mismanagement_?
Separate then the _Standers-by_ from the _Gamesters_, and let the Unconcern'd declare their Opinion, Whether, in all Corporations, the _Directors_ have not an unknown Advantage over all the other Members? Is it so in the _Exchequer_?
Tell me then, why a Hundred Pound in a Corporation, is more valuable than a Hundred in the _Exchequer_? Is it not because you can part with your Property with much more Ease by way of _Transfer_ in _London_? Which is not practis'd at the _Exchequer_: Besides, the _Transferring_ is near at Hand.
The _Directors_ of any Corporation, if not truly _honest_, may impose at all Times upon the rest of the _Proprietors_, by making a Dividend above the intrinsick Value of the Nett Produce of _Profit_; and the _Legislature_ would do well to provide against such Practices for the future.
If due Encouragement was given for the Importation of _Iron_, _Hemp_, _Pitch_ and _Tar_, from our own _Plantations_, the Export of a great deal of our _Bullion_ would be sav'd, our _Colonies_ encourag'd, and we should be then able to supply the _Dutch_, _French_, _Spaniard_, _Italian_ and _Portugueze_ with Iron, and bring in Two Hundred Thousand Pounds _per Ann._ Balance of Trade.
If the _South-Sea_ Company would trade to our own Islands, _viz._ the _Bahama_, and to _Carolina_; that Trade alone would bring them in Five Hundred Thousand Pounds _per Ann._ and with a small Expence, if well manag'd.
A PROPOSAL
To Restore _Publick Credit_, and Pay the _Nation's_ DEBTS.
I. _That the =South-Sea= Company be put in =Statu quo=; and if the Estates of the late =Directors=, their Aiders and Abettors will not do it, the =Government= to make up what is wanting._
II. _That the =Subscriptions= at =Three Hundred=, =Four Hundred=, =Eight Hundred=, and a =Thousand=, be all paid into the =Exchequer= at =Two Hundred=, and there to have a Credit for =One Hundred=; for which the =Government= is to pay Ten =per Cent.= until the =One Hundred= shall be paid off: And that those who have not paid full =Two Hundred=, do make up that Sum within the Time limited by the late =Directors=._
III. _That a Proper Place in =London= be appointed to keep a =Book=, wherein each Person may be made =Debtor= and =Creditor=; and a Duplicate of such =Book= to remain in the =Exchequer=. And that there may be a =Book=, wherein every Person may =transfer= their Property._
IV. _The Debt of =Seven Millions, Five Hundred Thousand Pounds=, being forgiven the =South-Sea= Company, and they put in =Statu quo= by the =Government=; the =Nation= will stand =Debtor= and =Creditor= as followeth:_ Viz.
NATION Debtor.
_To =South-Sea= Company_, 11,746,384 _To Money-Subscribers_, 20,004,000 _To Redeemable Debts_, 13,886,486 _To Unredeemable Debts_, 12,070,343 _To Interest_, __________
NATION Creditor.
_By a Moiety of the Money-Subscribers_, 10,002,000 _By =Ditto= Redeemable Debts_, 6,993,247 _By =Ditto= Unredeemable Debts_, 6,035,178 ---------- 23,030,425
The _Government_ is only to pay Ten _per Cent._ for the Sum of _Twenty Three Millions, Thirty Thousand, Four Hundred Twenty Five Pounds_. The _South-Sea_ Company being in _Statu quo_, are to receive an Interest as the _Act_ directed before the last _Settlement_.
The other Moiety will enable the _Government_ to make good the _Deficiency_ (if any) to the _South-Sea_ Company, to forgive them the _Seven Millions, Five Hundred Thousand Pounds_, pay the _Interest_ due from the _Government_ and clear a great Part of the _Principal Debt_.
The _Scheme_, as before-mention'd, will restore our _Credit_, and pay Part of our _Debt_; but if we intend to pay the Remainder, we must endeavour to be at a _Par_ with our Neighbours in Trade: And if they outdo us in Policy therein, and we do not strive to follow their _Methods_, we must expect in the End to be the Losers, and never to have a Balance.
We ought to consult those Methods that will increase our _Exports_, and lessen the _Importation_ of such Goods as takes away our _Bullion_, and prevent our _Coin_ from being exported, in the best Manner we can.
* * * * *
Now, Sir, you having consider'd the _Proposal_, and what has been previously maintain'd give me Leave to ask you a few Questions: _Viz._
1. Whether the Corporation of the _South-Sea_ Company, if they could be sure that the _Government_ would forgive them the Debt of _Seven Millions, Five Hundred Thousand Pounds_, and put them in _Statu quo_, (that is, in the Condition they were in when Stock was at _One Hundred Twenty Five_) would not they readily embrace the _Offer_?
2. Whether either the _South-Sea_ Company, the Bank of _England_, or the _East-India_ Company, desire the _Ingraftment_ propos'd by Parliament?
3. Whether a more equal Distribution of _Loss_ can be made, to please all Parties, especially the major Part; or who will be the greatest _Loser_ by the _Proposal_ herein mention'd?
One great Calamity is the Loss of _Paper Credit_, on which our _Trade_ chiefly depended: We find already a great Decay, which will soon be more apparent. We have indeed at present too little _Cash_, and too little _Credit_, to support _Trade_; and if we do not take other _Methods_ than what has been yet practis'd, it will be entirely lost.
It is the Prudence of a _Government_, to establish _Credit_ on the most solid Foundation; and what can be so solid as a _Parliamentary Security_? Will the _Government_ be trusted with any future Loans, if their Debts are settled upon a _precarious Bottom_? And are _Corporation-Pillars_ a good Foundation?
The _Method_ already propos'd, is seemingly calculated for the Service of _Stock-Jobbing_, and a Parcel of _I know not who_, (_Sharpers_,) to reap the Benefit of it: And if so, the _Nation_ will be utterly ruin'd. For God's Sake, then, let us not run any more _Hazards_, but prudently take such _Measures_ as are most safe and advantageous.
If the _Government_ will forgive the _South-Sea_ Company the Debt of _Seven Millions, Five Hundred Thousand Pounds_, and put them in _Statu quo_; they ought to sit down contented, and be easy and thankful.
If the present _Scheme_ gives the Subscribers but _Twenty Five Pounds_ Capital Stock for a _Hundred_, and the _Government_ will give such Subscribers _Fifty Pounds_ for a _Hundred_, I hope they will have no Reason to complain.
For should the _Subscriptions_ be ty'd down to _Four Hundred_, Thousands of Families will be ruin'd.
If we consider the Debt we owe to _Foreigners_, and how they, on the _Advance of Stocks_, drain us of our Money; we shall find it very dangerous to suffer _Stocks_ to be sold above the intrinsick Value.
If Common Interest be reduc'd to Four _per Cent._ as was intended; what _Proprietor_ can say he shall be a Loser? Setting aside the _Subscriptions_ and _Stock_, bought and sold at extravagant Prices; which is impossible to redress, without making a far greater Number of Sufferers.
Will the _Proposal_ of Tying down the _Subscribers_ at _Four Hundred_, give a greater Interest than Ten _per Cent._ for the Capital? And what will the Capital be, when paid off? Will that be more than _Twenty Five Pounds_ for a _Hundred_? Does not this _Proposal_ give _Fifty Pounds_ for _One Hundred_, with a double Advantage to all; and at the same Time pays a great Part of our Debt, and settles our Credit on a solid Foundation?
A Nation cannot flourish without _Virtue_; nor _Virtue_ without _good Conscience_. Sudden Ways of _growing rich_, must be ruinous to the _Publick_: There are of late those who have too suddenly got vast Estates, and others as soon stripp'd of great Fortunes.
_Industry_ is therefore the true natural Way to Wealth, as _Idleness_ is to Poverty. Riches cannot be honestly got without _Industry_, therefore it ought to be encourag'd, and all _idle Persons_ made to work; and such as will not work, ought to be serv'd as they are in _Holland_, that is, exercis'd with the _Pump_.
Has not the easy Way of getting Money prevented the _South-Sea_ Company from Carrying on _their Trade_, and the _Fishery_, that Noble and Profitable Branch; which if they would heartily set their Shoulders to, they might increase their Stock a Hundred _per Cent._ and not set it above its intrinsick Value? And our _Poor_ being very numerous, all of 'em may be provided for that way.
Our _Trade_ has decay'd ever since we have promoted _Stock-Jobbing_, that easy Way of getting Money: Our _Manufactories_ have diminish'd; which have increas'd our _Poor_, and lessen'd our _Imports_ and _Exports_; and the King, in Time, will lose his _Customs_.
I shall offer some few Heads, necessary to promote _Trade_, and to put us in a Way speedily to pay our _Debts_, and prevent _Stock-Jobbing_, or else _Trade_ can never flourish.
* * * * *
We must _Recoin_ our Money, and make the _Agio_ so large, as will prevent its being exported; and thereby hinder the _East-India_ Company from purchasing _Bullion_ in _Holland_: For if they are suffer'd to buy _Bullion_ there, we had better by the Half give them free Liberty to export our Coin, unless the _Exchange_ is Eight _per Cent._ in our Favour, (which is now so much to the contrary) we shall at all Times be Losers. By which it appears, how great Losers we are at present, by not making our Coin of a Value, as it may be exported without Damage to the Nation.
Our _Government_ may have _Bullion_ in Plenty, if they will be the Merchant for that Commodity, and give but a small Matter more for it than our Neighbours; which we may very well afford to do, if we settle a like _Agio_.
* * * * *
One great Help to _Trade_ in the Nation, would be to have _Sixpences_ (nay, even _Shillings_) coined with a much greater Allay than our present Coin; as also _Groats_, _Three-pences_, and _Twopenny Pieces_: The Government would receive such a Benefit thereby, as cannot be well here express'd. And I dare answer to find a _Method_, with fine Copper so intermix'd with Silver, that it shall not be worth any Person's Time, Trouble and Hazard, to counterfeit it.
Our Silver being coined with so great an _Allay_ as will prevent its being exported, will in a short Time cause a Currency of _Cash_: The _Gentry_ will not hoard it; whereby _Traders_ will be better paid, and our _Manufactures_ encourag'd, and carry'd on to a greater Degree.
I remember when there was a great deal of _Clipt_ and _Counterfeit Money_, and very Plenty of both, that every one that had either a Counterfeit Piece, or Money that was cut very small, always studied what to _buy_ with it, that they might pass the one away, or part with the other.
The Difference to the _East-India_ Company, in buying _Bullion_, or _Pieces of Eight_, in _Holland_, is Seven or Eight _per Cent._ more than what it stands them in when they can be supply'd with it at Home; and if they were prohibited the _Exportation_ of _Bullion_ from _Foreign Countries_, and suffer'd to export our own _Coin_, or such Ingots as shall have the _Tower-Mark_, our _Government_ would have the Advantage which the _Dutch_ now gain, and no Loss to the _East-India_ Company. For it will be then equally the same to them, whether they export it from hence, or from _Holland_, to _India_.
There is no other Way of preventing our _Bullion_ and _Silver_ being carry'd out of the Land, but by the Prohibition of the one, by paying a Difference to the _Government_; _viz._ such a Difference as comes pretty near to what is lost by _Remittances_; and suffering the other (_viz._ our _Crowns_ and _Half-Crown Pieces_, coin'd with a proportionable Allay) to be exported. All which would help to pay off the _Nation's Debts_, and make us a Flourishing People.
Our _Half-Crowns_ and _Crowns_ being recoined to such a Standard, I say, would be of equal Advantage to the _East-India_ Company, whether they exported _Bullion_ or _Pieces of Eight_, from hence or from _Holland_: For by the Bank of _Holland_, or rather _Amsterdam_, all _Exchanges_ are chiefly govern'd; and as the _Hollanders_ are the nearest concern'd with us in _Trade_, so by them we are to regulate and proportion the Difference between our _Bank-Money_ and our Current Cash.
* * * * *
The Bank of _England_ is establish'd upon the Standard of our present _Coin_: Let it so remain, till the _Government_ sees fit to alter, or pay them off; and let _Bills of Exchange_ be paid _in Banco_, or, if they so please, in Current Cash; the Difference or _Agio_ to be allow'd in like manner as they do in _Holland_.
There has been a considerable Profit made, by _Melting down_ and _Exporting_ our own Coin; and there will always be those that will do it, tho' punish'd with Death, as in _Portugal_. And where there is a great Loss in Melting down, or Exporting the _Current Coin_, tho' there is no _Penalty_, the Money will be preserv'd; as in _Holland_.
Let the Merchant have a _Profit_ in carrying Gold and Silver to the _Mint_ to be coined, or there will little or none go there: But if the Merchant finds a _Profit_ (tho' small) in the Coinage, there will be great Quantities coined.
That they who act with the greatest _Prudence_ and _Honour_, and have most Money, will always have most Credit; this needs no Proof.
While our _Money_, which is the Blood of the _Body Politick_, is suffer'd to run out, and there is no Supply, all _Projects_ for restoring _Credit_, and keeping up the Spirits of the _People_, will prove abortive. _Trade_, and the Noblest Undertakings for Employing the _Poor_, must be at a full Stop, if Money be wanting to carry them on.
'Tis certain, that until we have a greater Plenty of Money, _Trade_ and all other Business must be assisted with _Paper Credit_; and if it does not receive Voluntary Credit, it will never be made by Force. And if our Affairs are rightly managed, our Estates are doubled, and secur'd; if not, the best Estates will soon be worth nothing.
That _Paper Credit_ may have an immediate Currency, it is necessary for the _Exchequer_ to issue out as many _Notes_ as they shall be able to circulate, with a _Tax_ of a _Guinea_ on every _Transfer_; the one Half to be paid by the _Buyer_, and the other by the _Seller_.
That those _Bills_ be to discharge the Debts due and owing by the _Government_: And that the said _Bills_ be circulated in _London_.
Some make a mighty Noise, that if our _Coin_ be raised, _Foreigners_ will not take it. I answer, For that Reason we ought to raise it. If we are to pay _Foreigners_ any Thing upon the Balance of an Accompt, we ought to pay them as near as we can in their own Coin.
That no Person (under severe _Penalty_) presume to raise the _Price_ of any Thing, on Account of the Alteration of the _Coin_; otherwise the _Name_ is only alter'd, and not the _Value_ of our Coin: There being as much Reason for the _Parliament_ to put a _Value_ thereon, as for a _Goldsmith_ to do it on wrought Plate.
But the first Care to be taken, is, How the _Nation_ may prevent any Advance in _South-Sea_ Stock above what it was before; so that _Foreigners_ concern'd may not receive a _greater Principal_ than a Hundred Pound, and Five _per Cent._ as they did before this unhappy _Ingraftment_: For the Stock, by the said _Ingraftment_, will be of such a Magnitude, that a Hundred _per Cent._ Advance will, in all Probability, give the Strangers such a Capital, as will amount to more than the whole _Cash_ of the Kingdom.
The _Foreigners_ have taken an Alarm since our late _unhappy Mismanagement_; and are only waiting for some _New Project_, to sell out, and strip us entirely: So that if we will consider our own _Preservation_, we must rather _depretiate_ our Stocks, than seek Means to _augment_ them.
It is a receiv'd Maxim, _Salus Populi Suprema Lex esto_: This I take to be meant of the _whole Body_, not of some Parts of the _People_. And tho' _Thousands_ may suffer, yet it is a receiv'd Rule, That the _Whole_ is first to be consider'd, when it comes in Competition with any _Parts_.
Therefore, in our present Case, the _Whole_ is to be consider'd; and the _Preservation_ of that, is to weigh down against all the Hardships that may happen to _Particulars_.
Now, if this Maxim stands good, it is the Obligation of every true Lover of his _Country_, to have that in View; and not, from a Regard to _Particulars_, run the Hazard of sacrificing the _Whole_. Their _Misfortunes_ ought to have no Weight, nor any _Contrivance_ to ease them, prevail, in Balance with our _Country_.
Our late _Project_, if it could have been held up, would have created such a _Luxury_, that that very Thing alone would have undone the _Nation_, and would have sunk us; tho' not with such a _Rapidity_, as the Way which we have now in some measure escap'd.
* * * * *
The _Matter_ standing in this Light, the only View is the _Benefit_ of our _Country_.
The _Body Politick_ is very weak, and requires an honest and able _Physician_; and where to find him, is the only Thing in Question.
Let us consider, whether this design'd _Ingraftment_ of _Nine Millions_ into the _Bank_, and _Nine Millions_ into the _East-India_ Company, will prove any real Benefit to the _Nation_ as a _Nation_? No surely, that cannot be pretended; but only, that they making greater Dividends, may be of Service to _Individuals_; and yet that is much to be doubted.
For as to the _Bank_, the Capital was too big before to render any great _Advance_: And had it not been for a new Practice, first begun by the _South-Sea_ Company, of Lending Money on their _Stock_; had it not been, I say, for their imitating (tho' with Caution) that _infamous Practice_, their Dividends would have been reduc'd to _Seven per Cent._ or under.
And for the _East-India_ Company, their _Trade_ is so far extended, especially at this Juncture, when they are forc'd to _over-trade_ themselves, in order to ruin the _Ostenders_, that it's look'd on already as a _Grievance_: And yet by adding _Nine Millions_, they must divide _Four Hundred and Fifty Thousand Pounds_ Profit more than before. And notwithstanding their _Trade_ (as I said before) was then a _Grievance_; to what an Extension must it be driven now, to _divide_ such a Profit; when hitherto they never _divided_ above _One Hundred and Sixty Thousand Pounds_ a Year Profit?
But will it not be a Second _Injustice_ to the _Annuitants_, after so great a _Diminution_ of their Estates, to have _Two Thirds_ of it _ingrafted_ on a _precarious Bottom_? All Stocks having been suffer'd to divide above the Value of the _Nett Produce_ of their Capital; a sure Way to distress _Trade_: Especially when Corporations are suffer'd to issue out _Bonds_, without Trading with the _Money_, but purely to advance their _Stock_.
The _Two Ingraftments_ are brought in, in order to help the _Proprietors_, by Advantages of _Dividends_, to a greater Income than the Stock could make, if retain'd in the _South-Sea_; and so to raise the Nominal Price of Stock. Whether it will do the former, is a Doubt; but if so, the Stock had better been kept where it was; and if the latter, it will be only a _New Bubble_, to ruin us.
Neither the _Bank_, nor the _East-India_ Company, seem fond of the Project of this _Ingraftment_; and nothing can be argued, but that Something must be done, at least to amuse People with _vain Hopes_: Whereas, the true Interest of our _Country_ would have been, to have laid the _Wound_ open to every one's View; to have shewn the World, what _Dividend_ could be made out of the _Interest_, and what they might expect. Then _Foreigners_ would have sat still; for they could no where else make Five _per Cent._ of _One Hundred Pounds_; and their Money have remain'd here.
But if we come to make _Dividends_ of Twelve _per Cent._ and by that means advance the Stock to _Three Hundred_; then those Strangers that had _Four Millions_ Capital, and receiv'd _Two Hundred Thousand Pounds_ per Ann. will have _Four Hundred and Eighty Thousand Pounds_ per Annum, and have a _Demand_ of _Twelve Millions_ on you; which will entirely finish what the late _South-Sea_ Directors so gloriously began.
Is this a Time to endeavour at new _Projects_, when the Nation is at so low an Ebb; and when the World is ready, on the least Opportunity given, to put to the _Finishing Stroke_?