Volume 2

The works of John Locke, esq / in three volumes ... With alphabetical tables.

  • Locke, John, 1632-1704
Date:
1740
Catalogue details

Licence: Public Domain Mark

Credit: The works of John Locke, esq / in three volumes ... With alphabetical tables. Source: Wellcome Collection.

    15/766 (page 7)
    Iioufes, or fhips, as of money. He, that wants a veffel, rather than lofe his market, will not ftick to have it at the market-rate, and find ways to do it with fecurity to the owner, though the rate were limited by law: and, he that wants money, rather than lofe his voyage, or his trade, will pay the natural inte- reft for it; and fubmit to fuch ways of conveyance, as fhall keep the lender out of the reach of the law. So that your adt at bell, will ferve only to in- creafe the arts of lending, but not at all leffen the charge of the borrower: he, ’tis likely, fhall, with more trouble, and going farther about, pay alfo the more for his money; unlefs you intend to break in, only upon mortgages and con¬ tracts already made, and (which is not to be fuppoled) by a law, poll fadtum, void bargains lawfully made, and give to Richard what is Peter’s due, for no other real'on, but becaufe one was borrower, and the other lender. But, fuppoling the law reach’d the intention of the promoters of it; and that this adt be fo contriv’d, that it fixed the natural price of money, and hin- dred its being, by any body, lent at a higher ule than four per cent, which is plain it cannot: let us, in the next place, fee what will be the confequences of it. 1. It will be a lofs to widows, orphans, and all thofe, who have their eftates in money, one third of their eftates; which will be a very hard cafe up¬ on a great number of people; and it is warily to be confider’d, by the wifdom of the nation, whether they will thus, at one blow, fine and impoverifh a great and innocent part of the people, who having their eftates in money, have as much right to make as much of their money as it is worth, (for more they can¬ not) as the landlord has to let his land for as much as it will yield. To fine men one third of their eftates, without any crime, or offence committed, feems very hard. 2. As it will be a confiderable lofs and injury to the money’d man, fo it will be no advantage at all to the kingdom. For fo trade be not cramp’d, and the exportation of our native commodities and manufactures not hindred, it will be no matter to the kingdom, who amongft ourfelves gets, or lofes: only common charity teaches, that thofe fhould be moft taken care of, by the law, who are leaft capable of taking care for themfelves. 3. It will be a gain to the borrowing merchant. For if he borrow at four per cent, and his returns be twelve per cent, he will have eight per cent, and the lender four : whereas now they divide the profit equally at fix per cent. But this neither gets, nor lofes, to the kingdom, in your trade, fuppofing the mer¬ chant and lender to be both Englifhmen: only it will, as I have faid, transfer a third part of the money’d man’s eftate, who has nothing elfe to live on, into the merchant’s pocket; and that without any merit in the one, or tranfgreffion in the other. Private men’s interefts ought not thus to be negledted, nor facri- ficed to any thing, but the manifeft advantage of the publick. But, in this cafe, it wi 1 be quite the contrary. This lofs to the money’d men will be a pre¬ judice to trade: fince it will difcourage lending at fuch a difproportion of pro¬ fit, to rifque ; as we fhall fee more by and by, when we come to confider of what confequence it is to encourage lending, that fo none of the money of the nation may lie dead, and thereby prejudice trade. 4. It will hinder trade. For, there being a certain proportion of money, neceflary for driving fuch a proportion of trade, fo much money of this, as lies ftill, leffens fo much of the trade. Now it cannot be rationally expected, but that, where the venture is great, and the gains fmall, (as it is in lending in England, upon low intereft) many will chule rather to hoard up their money, than venture it abroad, on fuch terms. This will be a lofs to the kingdom, and fuch a lofs as, here in England, ought chiefly to be looked after: for, we ha¬ ving no mines, nor any other way of getting, or keeping of riches amongft us, but by trade, fo much of our trade as is loft, fo much of our riches mult necef- f .rily go with it; and the over-balancing of trade, between us and our neigh¬ bours, muft inevitably carry away our money, and quickly leave us poor, and expofed. Gold and filver, though they ferve for few, yet they command all the conveniencies of life, and therefore in a plenty of them confifts riches. 3 Every