The Landed-man who had his Rent pay'd him in Money, would be a great loser. For by als much as these Bills were under the Value of Silver, he would receive so much less than before.
The Landed-man who owed Debt, would pay his Debt with a less Value than was contracted for: But the Creditor would lose what the Debitor gain'd.
Dr. C. seems to be offended at my meddling in this Affair, having, as he says, borrow'd what I know of this Subject from him. Two Persons may project the same thing, but so far as I can judge, what Iam to propose is different from his, and what I had form'd a Scheme of several years before I had seen any of his Papers: Which I can prove, if that were necessary, by persons of worth I then show'd it to. Ihave not, to my knowledge, borrowed any thing from Dr. C. Land indeed is the Value upon which he funds his Proposal, and 'tis upon Land, that I fund mine: If for that Reason I have incroach'd upon his Proposal, the Bank of Scotland may be said to have done the same:
There were Banks in Europe long before the Drs. Proposal, and Books ahve been writ on the Subject before and since. The Fundation I go upon has been known so long as Money has been lent on Land, and so long as an heretable Bond has been equal to a Quantity of Land.
Whether the Structure he or I have built upon that Fundation be most safe, advantageous and practicalbe, the Parliament can best judge.
Dr. C's Proposal is by Anticipation, to make Land worth 50 or a 100 years Purchase; and maintains that a 100 lib. to be payed yearly for 10, 50 or a 100 years, is a valuable Pledge for a 1000, 5000, or a 10000 lib. of Bills: And that these Bills will be equal to Silver-money. If he can satisfie the Nation that his Proposal is practicable, he does a very great Service, and gives a certain advantage to the Landed-man, without wronging the Money'd-man. I have shown the Reasons why I think the Proposal is not practicable; and that notwithstanding any Act of Parliament made to force these Bills, they would fall much under the value of Silver. But allowing they were at first equal to Silver, it is next to impossible that two different Species of Money, shall continue equal in value to one another.
Every thing receives a value from its use, and the Value is raised, according to its Quality, Quantity and Demand. Tho Goods of different kinds are equal in value now, yet they will change their Value, from any unequal Change in their Quality, Quantity, or Demand.
And as he leaves it to the choice of the Debitor, to pay in Silver-money or Bills; he confines the value of the Bills, to the value of the Silver-money, but cannot confine the Value of the Silver-money to the value of the Bills: So that these Bills must fall in value as Silver-money falls, and may fall lower: Silver may rise above the value of these bills, but these Bills cannot rise above the value of Silver.
What I shall propose, is to make Money of Land equal to its value; and that Money to be equal in value to Silver-money: And not lyable to fall in value as Silver-money falls.
And Goods that have the Qualities necessary in Money, may be made Money equal to their value. 5 Ounces of Gold is equal in value to 20lib. and may be made Money to that Value. An Acre of Land rented at 2Bolls of Victual, the Victual at 8 lib. and Land at 20 years purchase, is equal to 20 lib. and may be made Money equal to that Value, for it has all the Qualities necessary in Money. But that Acre of Land cannot be coin'd to the Value of 50 lib. no more than the 5 Ounces of Gold.
And tho the 5 Ounces of Gold, the 20 lib. Silver Money, and the Acre of Land, be now equal in value; yet they cannot well continue so: For as I have shown already, and disproportion'd Change in the Quality, Quantity, or in the Demand of either of them, will make the same Quantity of the others. Land is what in all appearance will keep its Value best, it may rise in value, but cannot well fall: Gold or Silver are lyable to many Accidents, whereby their Value may lessen; but cannot well rise in value.