ALL Men have not all things ; therefore to a plentiful Living there is a necessity of exchanging one thing for another .

We do not always meet with an opportunity of exchanging what we have superfluous , for what we want ; therefore necessity doth enforce us to find out some Medium of Commerce .

When this Medium grows scarce , Trading will be low , and all Commodities will be cheap as at this day .

These inconveniences may be avoided , if another Medium , that costs nothing , as transferrable as Money might be found out .

Credit , that shall never fail , founded upon our own Commodities , will in greater payments every way answer Money ; for Money is nothing but a Medium of Commerce , a Security that when we part from one thing we can spare , we may procure another thing we want , of the like value .

A plain Demonstration of this would quickly be made , if the Chamber of London should set up an Office to this purpose , which I think may be easily done in this manner .

1. Convenient places must be appointed , suppose Ware-houses near the Custom-house for grosser Goods , and Stowage for fine Goods near Guild-hall .

2. Fitting persons must be appointed for the managing this business : These are to be of two sorts .

3. When places are fitted , and persons provided , the Chamber declare , they are ready to receive all Goods , as Pawns , upon which they will advance Bills of Credit to two thirds , three fourths , or four fifths of the value , or higher , according as the Nature of the Goods are . I do not see why Credit may not be raised upon Lands , where the Title is good , and upon personal Security , that is unquestionable .

4. When Goods are brought in , they shall be appraised , marked , and lodged , and a Bill of Sale Registred of them in the Book , Signed and Sealed by the Deliverer , for the Offices security , and the Goods are entred Debtor .

5. The Deliverer is entred Creditor , and hath a Bill of Credit payable at seven months , for which he allows three per Cent ; which Credit is written off to others to whom he is or may be indebted , as things present . I think a way may be proposed , how these Bills may be given out payable at sight ; but of that I shall give an account in a second Paper .

6. The time for which these Goods are deposited , must be according to the Nature of them , as they are more or less perishable . that is , for one month , two , three , ten months ; but not to exceed twelve months .

7. The person depositing his Goods hath liberty at all times to see and sell his Goods .

8. If he sells his Goods within the time limited , he satisfies the Office , pays Interest only for the time his Goods have been there , and takes the Overplus to himself .

9. If the Goods be not redeemed within the time limited , the Office sells them by the Inch of Candle , satisfies it self , and restores the Overplus to the Pawner of the Goods , unless he gives the Office new Security , they like of .

10. If the party depositing his Goods be under such Circumstances , that he must have Money in Specie , ( which will seldom occur ) the Office will exchange his Bill into Money at four per Cent .

11. No Goods shall be pawn'd in this Office that will not bear the Credit of Ten Pounds ; but other petty Offices may be erected , subordinate to this ; some of which may take in Goods under Ten Pounds , others under Five , for the benefit of the Poor , upon which Money must be advanced at such rates as may be agreed upon .

12. All persons that desire it , may have Stowage for their Goods in the Ware-houses belonging to these Offices ; though they do not advance Credit upon them , they will lye more conveniently for a Market , then in their own Ware-houses , because the Buyer perhaps may have occasion for Credit ; the Goods being there , he may easily satisfie the Seller : Suppose a Merchant lays in a Hundred Pieces of Wine , he sells them to a Vintner , that advances Credit upon them , with which he satisfies the Merchant , and takes them out of the Office , as he can clear them by Money or Credit .

Suppose a Clothier brings upon a hundred and fifty Pounds worth of Cloth which he cannot sell , he must have Money , or he cannot Trade ; he brings his Goods to this Office , they advance him a Bill of Credit of 100 l. two Thirds of the value , in this or the like manner .

This Clothier goes and buys such Commodities as he wants , as Oyls , Spanish Wool , dying Stuff , &c. and tells his Chapmen he will pay them with Credit in the Chamber , which all Men will accept of , rather then to make a Book Debt ; nay it is better then an ordinary Citizens Bond ; for it hath a sure found kept in responsible hands , it will pass from one Man to another at present , because it will be Money at the time appointed ; for either the Clothier hath sold his Cloth in the six months , and deposited the Money ; or the Office hath sold them in the seventh month , and kept the Money ; So that the Office shall always be in a condition to make payment of all Bills brought to them : This being granted , the Clothier appoints his Chapmen to meet him at the Office , and writes off so much credit from himself as satisfies them , suppose to the value of fifty Pounds ; fifty Pounds yet remains to this Clothier , which he must carry into the Country , and he is ordered by his Neighbour at home to pay it to a Silk-man in London , his Neighbour will give him the Money in Specie at his return ; few Citizens will refuse this Credit , unless they have a Chapman in the Country that is a very sure Card ; but admit the worst , the Silk-man refuses the Bill , the Clothier then sells it as he can , or at the last brings it to the Office , who gives him Money for it at four per Cent change .

When the Office is once settled , their Bills of Credit will readily change for Money , as it is at Venice , where the Bank never pays out Money , but gives Bills of Credit to those interessed ; which Bills will sell readily for Ducats out of the Chest at ten per Cent exchange .

In a short time the Credit in the Bank here will be as good , if not better then Money .

OBJECTIONS .

Obj. 1. It is a new Whimsie .

Ans. 1. So were all things at their first using , which Adam had not in his first Creation ; the Post-Office was more ridiculous then this can be , not many years since , yet now it yields a good Revenue .

Ans. 2. This is not new , It is practised in our Lee-ward Islands , where the Planters bring their Goods to the Ports ; when Ships are not there , they lodge them in a Ware-house , take a Bill of the Ware-house-keeper , that they have such Goods there ; this Bill will pass as currently as money , so far as the Ware-house-keeper is known ; much more it will do so here ; their practise is an exact pattern of what I propose .

Obj. 2. No body will trust such an Office at the first setting up , till by a long tract of time people are habituated to it .

Ans. 1. All Men do every day trust worse Security ; to be sure there is no better in England , then the whole City of London . Wise-men , that understand there is a real Found , kept in good hands , will not scruple it ; and Middle-witted Men in a little time will follow their Example .

Ans. 2. If Men should be so superstitiously scrupulous , as not to adventure their Goods upon a Bill , they may have a Bond from the chief persons concern'd , only that will be a little more chargeable and troublesome .

Obj. 3. Men may be injured in their Goods , and oppressed by the persons supervising this Office .

Ans. 1. So they may at home by their Servants .

Ans. 2. They may complain to the Court of Aldermen , or may use the Law , if Covenants be not kept .

Obj. 4. It will be troublesome to transmit Credit thus from one to another .

Ans. 1. It will be far more easie , then if a Man had Cash in his Chest . Suppose a Merchant had Credit for a Thousand Pounds here , which he is to pay to Twenty Men ; he desires them all to meet him at the Office , and writes off Credit from himself to them , with more ease then he could tell the Money .

Obj. 5. It will he a discredit for a Man to pledge his Goods , especially at the first setting up .

Ans. 1. If none but necessitous persons do bring in their Goods to this Office , it will be so : But the Richer Citizens , if they desire the flourishing of this Office , may deposit Goods here without any prejudice , it may be they may do it to profit , which will take off the scandall :

Ans. 2. Many persons that do not need Money at all , will lay in their Goods to these Ware-houses , rather then into their own Sellars , meerly for the convenience of selling , as I have shewed in the twelfth Particular .

Ans. 3. Persons of the middle sort , that are of good Credit , and in no great necessity for Money , will lay in their Goods here for their profit , to have Money at three per Cent ; as suppose a Merchant Lands a Cargo of three thousand Pounds worth of Goods , he lays them into these Offices , and takes Credit upon them for two thousand Pounds at three per Cent , with which he prepares for another Voyage , before his Goods brought in are sold ; and so drives a double Trade with the same Stock ; or the same Trade with half the Stock .

I see no reason why the East India Company , who now give five per Cent , may not with profit ( the hinge upon which Merchants move ) lay their Goods here , where they shall pay but three per Cent , and be discharged of this when they please ; these things being granted it can be no discredit , being none knows who lays in Goods out of necessity , and who lays them in out of choice .

Obj. 6. The Charges will be great .

Ans. 1. The Interest is but three per Cent .

Ans. 2. An allowance for the Ware-house Room must be proportionable to the Goods , as they are more or less bulkie , as it is in other places .

Ans. 3. The apprising , registring , stowing , careful keeping from accidental dammage may be one Penny for every five Pounds .

The transmitting the Credit need not be excessive ; suppose one Penny for five Pounds , for twenty five Pounds two Pence , for fifty Pounds three Pence , for a hundred Pounds four Pence ; this is nothing like the borrowing Money of the Scrivener , where the Security is usually sealed at a Tavern , and the Borrower pays the Reckoning .

If the chief Magistrates , when they see the great benefit such Banks bring to the Nation , should concern themselves in the settling of them , the Charge would be much less , and Gain greater . All beginnings are hard , and small inconveniences , for the effecting so great a thing , must be born : We creep before we can go .

Obj. 7. Men will have Money , and not Credit ; such hath been the Custom of the Nation .

Ans. Men desire Credit at Venice , ( though never answered out of the Bank in Specie ) rather then Money ; because it is more safe , and more transferrable then Money ; and so they will do here , when they know what is best , their Ease , Security and Interest will byass them to choose it ; if they will have Money , they may at the Market Price .

Obj. 8. Where shall the Chamber have Money .

Ans. All Monied Men ( if they may ) will lodge their Money here at three per Cent , because they can make four , five , or six per Cent by lending out these Bills upon personal Security .

The benefits arising from such a Bank must needs be very great .

1. The Chamber hath the Interest of whatever Credit they issue out for nothing , if it should be to the value of a hundred Millions .

2. The Coine of the Nation is immediately doubled . Monied Men will lodge their Money in these Banks at three per Cent , because they can let out their Credit at three or four per Cent again ; whereas Bonds and Bills lye dead . The Chamber lets out the Money in Specie , deposited with them , which is in motion also ; whereas before the Money was only the running Cash ; now the Credit , founded upon this Money , is as much a running Cash , as the Money it self .

3. The running Cash of the Nation will be increased , it may be a hundred-fold , answerable to the Credit issued out ; let it be what it will , it may be a hundred Millions , and a hundred .

4. The Trade of this Nation , all Manufactures and Husbandry will be exceedingly increased , proportionable to the Credit raised in the Office .

5. The Kings Customs and Excise will be improved according to the increase of Trade .

6. England , being so conveniently scituated , stored with safe Harbours , and blessed with plenty of staple Commodities and Provisions , may become the Empory of the World , when by such Offices it is supplyed with such an endless running Cash .

7. Our Merchants will have Credit in forreign Parts to buy Commodities without Money , and may engross any Commodities , as the Dutch do at present .

8. Men will not be under such a necessity of selling their Goods at an under Rate for want of Money , when they may have Credit upon them at three per Cent equivalent to Money , till they can light upon a Chapman .

9. Men with small Stocks may drive great Trades ; as suppose a Silk-man hath one thousand Pounds , he buys Silk with it , pawns it in the Office for eight hundred ; this he lays out again in Silk , and pawns that for seven hundred Pounds , and so downwards ; by the help of these Banks he lays in four or five thousand Pounds worth of Commodities with one thousand Pound of Money , and is not tied to a particular Man ; he fetches out his Goods as he vends or uses them , by two , three , or five hundred Pound at a time .

10. Most Men will rather deal with persons that have Credit in the Office , then upon their simple Credit ; this is secure , that is not , as divers can tell you , who have smarted through the deceitfulness of Men .