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money from the fubject, and place the diftribution of it in the hand of the minifter.

It is the object of the publication under review to take money out of the hands of the minifter and to diftribute it among the people; he however, only wishes him to sow, that he may reap more abundantly.

Repeated and various obfervation has fully convinced our author, that induftry of every kind with its unnumbered effects on private happinefs, would be moft effectually excited, and generally diffufed throughout every part of the British Empire, by a new and proper regulation of the intereft of money-And he is of opinion, that fuch a regulation, according to the true principles of loans, would be attended with no public expence, but, on the contrary, would be a fource of public revenue; in the first inftance, as an inftitution; and in the fecond, as a promoter of general induftry.

In order to prepare the way to the plan which he lays down for the regulation of money, our author fhews, how much better industry is than the precious metals; analyses the caufes and the nature of wealth; and on this fubject, clearly refutes the opinion of Dr. Adam Smith and other writers on trade and finance, who hold, that it is not in the power of any nation by any act of legiflation to encrease its capital and industry, and that money finds its own way into the proper channels with greater readinefs and effect, than would refult from the application of the greatest human fagacity. Having examined the nature, and traced the history of the intereft of money, he concludes, that the "Laws of England refpecting intereft, are neither equitable nor politically expedient." Here he adds, a confideration which places the deficiency of the prefent laws refpecting intereft, and the neceffity of enacting new ones, in a very ftriking point of view, namely the nature and circumftances of the national or public loan, which fubject the ftock of the nation to the chance of a very fpeedy and very great diminution. He, farther affirms, and demonftrates, that the burthen of the loan falls firft and heaviest on a clafs of men the least able to bear it; he means men, who, either in whole or in part, carry on business with borrowed money. Our author juftly obferves, that it is not in the power of manufacturers to extend their bufinefs fo widely as thofe merchants known by the name of factors, who can call to their aid the wealth of

other men by affording equal fecurity. From this fubje&t, he paffes on to that of fecurity on mortgage, which he confiders as a bounty on goods for home confumption, and confequently as an embargo on foreign trade.”

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It is above all things neceffary to our author, before he propofes his plan, to remove the prejudice, and take off the odium against what is called ufurious intereft. Among other arguments intended to fhew the equity of taking intereft for money above the legal rate of five per cent. he reasons from the large discounts which are given for ready money, and from the history and laws of PAWNBROKING, which leads him by a natural tranfition to propofe his plan for raising money, to which that of raifing money on pledges bears fome affinity.

• When money is lent on undoubted fecurity, the borrower pays, first, the interest of the money borrowed; and, fecondly, for the trouble of tranfacting the loan. As to the intereft of the loan, it is always, in all cafes, exactly proportioned to the extent of the fum borrowed. But it is not fo with refpect to the trouble of tranfacting the bufinefs of the loan: for, in borrowing one hundred pounds for the space of only one year, there is almost as much trouble as in borrowing ten thoufand pounds for ten years. Hence, the lending of fmall fums is lefs advantageous than that of lending great ones.

In granting loans on doubtful fecurity, there is, befides the two above-mentioned expences, a third, not indeed certain, but con tingent; namely, the expence of a rifque of lofs which may at

tend it.

The true principle, then, of a fair loan, without adhering either to law or custom, would be, as in the following inftance:

L.

1000

50

25

S.

d.

1075 15 O

In order that the three different fums may follow the true proportion, they fhould be feparately charged, as in the above inftance, the intereft always being regulated by the fum and the time; the expence of tranfacting the bufinefs being neither regu lated by the fum and the time, (for it would be nearly the fame were it only half the fum), but by what it is judged it really may coft, or by what is has been found by experience to coft. And the infurance being regulated by the rifque that it is fuppofed will be run, according to the beft information that can be had, relative to the circumstances of the borrower.

As fmall loans do not afford fufficient profit for the time and trouble that would be required to examine with fufficient minuteness into the circumstances of the borrower; for that, as well as feveral other reafons, the rifque incurred is greater than in larger tranfactions, and ought to be paid for accordingly. It is reafonable, therefore, that an higher intereft fhould be paid for fmall loans than for large ones.

It very fortunately happens, that those who borrow fmall fums, and but for a fhort time, can in fact, afford to give higher interest than the borrower of a larger fum.

In confidering loans, therefore, regard ought to be had to their extent and amount, as well as to the credit of the borrower.

Thefe things being premifed, it is fuggefted, that a fund might with great advantage be established, for the purpose of supplying individuals with fums of money, in a lawful manner, upon fuch principles, and upon a plan, which, from the basis on which it hould be founded, might turn out to be very different in its advantages from any of thofe that have hitherto been inftituted,

The first regulation, in an institution of this fort, would require

to be.

That no loan fhould ever be granted which did not appear to be for the advantage of the borrower, whatever other circumstances might warrant the expediency of granting it.

That as the minds of men are often too apt to be biaffed by circumstances, there fhould be a limit fet to the highest rate of interest that may be taken, which must be regulated by the extent of the loan; that is to fay, the power of granting ufurious loans not to be left to the directors of fuch a bank.

The extent of the loan fhould be estimated by the interest which it produces during the whole time of the existence of the loan. Thus 500l. for two years fhould be reckoned the fame as 1000l. for one year.

• That the principal management be in the hands of men who have no intereft in exacting too high a premium of insurance, nor of increafing the expence of the negotiation.

That men of character fhould be employed to inquire into the particular circumftances of borrowers, under the beft regulations that can be devised for coming at the true state of their affairs.

That a certain time elapfe, between the asking a loan and the granting of it, unlefs it be under fuch particular circumstances as may be excepted from the general regulations.

That, in order to avoid making any kind of monopoly of the lending of money, where fecurity is fo good as not to require much premium of infurance, this bank be never allowed to lend money without a premium, nor unless that premium amounts to twofifths of the intereft,

That, in order alfo to render the institution quite competent to the equalizing the monied affairs of the kingdom, and without re fpect, in this inftance to public revenue, any perfon may be allowed to take, for the loan of money on uncertain fecurity, two-fifths premium of infurance more than what, at the time of fuch loan being granted is given for the loan of money on mortgage. This laft general licence for taking premia not to extend to loans above a certain amount.

'Regifters of all tranfactions to be fo kept, that the circums ftances attending them may be known at any tiine afterwards.

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Probably the regulation of the inftitution might with advantage be fubjected in fome degree to the yearly infpection of a committee

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of the House of Commons; and, at all events, as there would be a good deal of difcretionary power vested in the managers, it ought to have every poffibie check, which frequent and minute inspection into the exercie of fuch an office might afford.

6 To attempt laying down regulations now for a company of this fort would be ab urd, as it could not be done with any kind of propriety by an individual; and as it would alfo be very ufeleis, the whole intention being fimply to fuggeft the out lines, and demonftrate the expediency of the plan.

The intention of fuch a plan is public good, and as fuch it ought to be promoted as far as the nature of things will allow in obtaining that end.

A high rate of intereft will be taken because it is only meant to be applied to cafes where a high rate can be afforded, and where on account of the rifque run, it is required. As every man who has either property, induftry, or character, ought to have fome degree of credit, however limited, this plan ought to extend to debtors in prifon, when circumstances are fuch as to warrant it in any degree. This would, if it proved to answer, be a noble purpose.

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Even debtors in confinement have fome degree of credit, and they ought not to be excluded from the common privilege of humanity, that of ufing the little credit they poffefs. In this, however, as in every other cafe, the invariable rule of not granting affiftance unless it appeared that it would be of advantage to the borrower in the end, ought ftrictly to be adhered to.

This laft, however, if well attended to, would make one very material part of the plan; and it ought not to be confidered as a matter of indifference, but, on the contrary, of very great importance, as the increase of national wealth and individual happiness ought ever to be purfued.'

This plan for railing money our author recommends by very folid and unobjectionable arguments. In general, as he obferves, the circumftances moft in favour of a project are, when it can be tried at a fmall rifque, and upon a small fcale that allows, and this is another argument in its favour, and admits of alterations and increafe as it goes on, and does not involve the whole profperity of the projector. In the formation of any project it is alfo a confiderable circumftance that the money laid out in making a trial, be laid out on fuch things as may be of ufe in cafe of failure. Now our author fhews beyond contradiction that all thefe circumftances concur to recommend the plan he propofes.

Our author disclaims all pretenfions to literary fame, or to that eloquence which fets off and inculcates with effect fchemes already fuggefted. But he propofes a plan entirely new, a plan that may be tried by the nation without any lofs, and whofe benefits, if they fhould exift in any degree would be extenfive: this plan he has laid in a deep knowledge of the principles that govern trade, commerce, ma

nufactures

nufactures and general industry; a knowledge derived from books, from reflection, and from actual obfervation on the bufy walk of life, in which, it would appear that he has not been unconcerned. For it is, from practice alone that fuch minute information, on numberlefs particulars could have been acquired. The philofopher who fpeculates on trade, for the most part wants experience, and the man of bufinefs, on the other hand, funk in minutiae or particulars, is incapable of ascending the higher grounds from whence he may take a view of what is general and comprehenfive. Our author, to various and minute obfervation adds a faculty for abstraction fitted for the contemplation of the grandeft as well as the minutest objects.

There are two ways only, by which an individual, or a fociety can improve their fortune: either by retrenching their expences, or enlarging their revenue. But all the favings that can be made by a mighty nation, are but trifling when caft in the balance with the enormity of its neceffary difburfcments. It is the gradual extenfion of commerce, fince the revolution, which has enabled England to bear burthens which the writers of every period almost unanimously pre dicted muft foon overwhelm her. There is a mystery in the faculty of bearing fuch an accumulation of national debt, not yet clearly unfolded. It is certain, that the money levied on the people returns to them by a thoufand channels, and operates as a general capital to ftimulate general industry. It is undoubtedly true policy to increase the national force by excit ing and fupporting the induftry of individuals. And our author's plan for this purpofe, is the moft feasible of any that we have found among all the political productions that we have perufed. Something fimilar to what our author propofes is carried into execution every day by landlords, who improve their eftates by advancing money to their induftrious tenants, or making discounts of rent, where improvements are made, that must redound to the advantage of both tenant and mafter. A particular example of improving an eftate, by ad vancing money on pledges, is given by the Duke of Bedford, in the buildings in Bedford-fquare and other parts of his eftate in London.

Our author confiders his plan, juftly, as connected with an extenfion of civil liberty. As liberty, which is but another name for juftice protects property, fo increase of property nourishes a fpirit of liberty and opposes a growing bulwark against the gradual encroachments of the executive on the deliberative or legiflative part of government, and the rights and privileges of the people.

ART.