An Inquiry into the Principles of Political Oeconomy (Vol. 2 of 2): Being an essay on the science of domestic policy in free nations. In which are particularly considered population, agriculture, trade, industry, money, coin, interest, circulation, banks, exchange, public credit, and taxesSteuart, James, Sir
General
An Inquiry into the Principles of Political Oeconomy (Vol. 2 of 2): Being an essay on the science of domestic policy in free nations. In which are particularly considered population, agriculture, trade, industry, money, coin, interest, circulation, banks, exchange, public credit, and taxes
Steuart, James, Sir
Economics
The actions being brought, by four successive creations, of the 13th and
28th of September, the 2d and 4th of October, to their full number, the
company, during that interval, obtained the general receipt of the whole
revenue. Thus, says Dutot, vol. ii. p. 197. the company was intrusted
with the whole revenue, debts and expences of the state, and all
unnecessary charge was avoided in collecting and administring it.
In the month of November 1719, the credit of the bank, and of the
company, was so great, that the actions rose to 10,000 livres.
Notwithstanding, says Dutot, vol. ii. p. 198. that the company did what
they could to keep down the price, by throwing into the market, in one
week, for no less than 30 millions. He assigns seven different reasons
for this, which, all put together, are not worth one; to wit, that the
Regent was ready to buy up every one that lay upon hand, in concert with
the company.
If the company had been inclined to keep down the price of the actions,
they had nothing more to do than to deliver part of the vast number they
still had unsold, at the standard value of 5000 livres, at which they
were rated when created; and this would have effectually prevented their
rising to 10,000 livres.
But it was the interest of the Regent, who was at that time well
provided with actions, to stock-job, and to buy with one hand, while he
was selling with the other: these operations were then as well known in
the street called Quinquempoix, as now in Change-alley.
As a proof of the justness of my allegation, that the Regent was doing
all he could to raise the price of the actions, Dutot informs us, in the
place above cited, that the bank, at this very time, was lending money,
upon the security of actions, at 2 _per cent._ If that was the case, how
was it possible that an action, with 200 livres dividend, should sell
for less than 10,000 livres, which is the capital corresponding to 200
livres, at 2 _per cent._?
This is evident; and were it necessary, it may be proved to
demonstration, that the rise of the actions was the consequence of a
political combination.
But _if_ money, at that time, came to bear no more than 2 _per cent._
and if the company was able to afford 200 livres upon the action; where
was the inequity of raising the actions to 10,000 livres? I confess I
can see none, nor do I perceive either the impossibility or
improbability of the two postulata, had matters been rightly conducted.
Public-domain text, read in full here on John Shaqi.
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