The Manner of lending Money in France, and I suppose in other Roman Catholick Countries; is by way of perpetual Interest, redeemable by the Debitor, and which the Creditor may dispose or assign, but can never demand the Principal. And it is Usury by Law to take any Interest for Money, if the Crditor has power to call for the Principal, tho the Term of payment be many years after the Money is lent. Suppose the manner of lending in Scotland was the same 200 years ago, and that A.B. having 768 Acres of Land, rented at a Boll of Victual the Acre, the yearly Rent 48 Chalder, at 5 lib. Scots the Chalder, 20 lib. sterl. C.D. worth a 100 lib: in Money, tohave lent it to A.B. and Interest being at 10 per cent, to have received an annual interest of 10 lib. which he left to his Son, and thought he provided sufficiently for him, 10 lib. being equal to, or worth 24 Chalder of Victual. But Interest being lowered to 6 per cent, Money being rais'd in the Denomination, and of less value by its greater Quantity: the 6lib. now payed for the Annual Interest of that 100 lib. is not worth one Chalder of Victual. And 384 Acres, or the half of A.B.'s Land 200years ago only equal to a 100, or a 140 lib; is now worth 57 times that Sum, the Rental supposed to be doubled, and its value at 20 years purchase.
In France it has been observ'd, that about 200 years ago, the same Land was in 30 years worth double the Money it was worth before.
So Land worth a 100 lib. anno 1500, was worth 200 lib. anno 1530. 400lib. anno 1560. and so on, till within these 50 or 60 years it has continued near the same Value.
In England, 20 times the Quantity of Money is given for Goods, that was given 200 years ago. In these Countries 'tis thought Goods have rose; but Goods have kept their value, 'tis Money has fallen.
Most Goods have increas'd in Quantity, equal or near as the Demand for them has encreas'd; and are at or near the Value they had 200 years ago. Land is more valuable, by improvement producing to a greater Value, and the Demand increasing, the quantity being the same.
Silver and Money are of lesser value, being more increas's in Quantity, than in Demand.
Goods will continue equal in Quantity as they are now to Demand, or won't differ much: For the increase of most Goods depends on the Demand (Ex.) If the Quantity of Oats be greater than the Demand for Consumption and Magazines what is over is a Drug, so that Product will be lessen'd, and the Land imployed to some other use: If by a Scarcity the Quantity be lesser than demand, that Demand will be supply'd from Magazines of former Years; or if the Magazines are not sufficient to answer the Demand, that Scarcity cannot well be suppos'd to last above a year or two.
Land will continue to rise in value, being yet capable of Improvement; And as the Demand increases, for the Quantity will be the same.
Silver will continue to fall in value, as it increases in quantity, the Demand not increasing in proportion; for the increase does not depend on the Demand. Most People won't allow themselves to think that Silver is cheaper or less valuable, tho it appears plainly, by comparing what Quantity of Goods such a weight of fine Silver bought 200 years ago, and what Quantity of the same Goods it will buy now. If a piece of wine in France is equal in value to 20 Bolls of Oats there, that Quantity of Oats can never be worth more or less Wine; so long as the Quality, Quantity and Demand of Both continues the same: But any Disproportion'd Change in their Quality, Quantity or Demand, will make the same Quantity of the one, be equal to a greater Quantity of the other. So if a piece of Wine in France, is equal to or worth 40 Crowns there; it will always continue so, unless some disproportion'd Change happen in the Quantity, Quality or Demand of the Wine, or of the Money.
The Reason is plain, why Silver has encreas'd more in Quantity than in Demand: The Spainiards bring as great Quantities into Europe as they can get wrought out of the Mines, for it is still valued tho not so high. And tho none of it comes into Brittain, yet it will be of less Value in Brittain, as it is in greater Quantity in Europe.
It may be objected that the Demand for Silver is now greater than the Quantity. It is answered, tho the Demand is greater than the Quantity; yet it has not increas'd in Proportion with the Quantity.
200 years ago Money or Silver was at 10 per cent, now from 6 ot 3. If the demand had increas'd als much as the Quantity, Money would give 10per cent as then, and be equal to the same Quantity of Victual, or other Goods that have kept their Value. If A.B. having a 1000 lib. to lend, should offer it at 10 per cent Interest, and desired Land of 240Chalder of Victual Rent for his Security, as was used to be given 200years ago: Tho no Law regulat the Interest of Money, A.B. would find no Borrowers on these Conditions; Because Silver having encreas'd more in quantity than in Demand, and the Denomination being alter'd, Money is of less Value, and is to be had on easier terms. If the Demand had encreas'd in the same proportion with the Quantity, and the Money had not been rais'd, the same Interest would be given now as then, and the same Quantity of Victual to pay the Interest; for Money keeping its Value, 8 sh and 4 pence would be equal to a Chalder of Victual, as it was then.
If 2000 lib. was laid out on Plate 200 years ago, it is thought the Loss on the Plate was only the Fashion, and the Interest; but if the 2000 lib. had been laid out on Land, the Rent of that Land would be more than the Value of such Plate.
Tho Money or Silver is so much fallen from the Value it had, yet it's given as a value for one half, or two Thirds more than its value as Silver, abstract from its use as money.
Suppose Silver to be no more us'd as Money in Eurrope, its Quantity would be the same, and the Demand for it much lessr; which might lower it 2 Thirds or more; for besides that the Demand would be less, it's Uses as Plate, etc. are not near so necessary, as that of Money.
