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
There are, however, in France at this day, many persons who are still
in possession of large sums of those notes. This makes some people
believe, that all the paper was called down without any equivalent
given. The reason of those notes remaining, is, that either the
proprietors neglected the occasion offered by the _arret_ of the 10th
of October, or that they were in hopes that perhaps the bank might
again recover its credit. They were mistaken, and the notes are lost.
Let us next examine the state of interest.
The interest at the last was,
1_mo_, Of rents constituted in June 1720, on the
town-house, at 2½ _per cent._ or at the 40th penny 25 millions.
2_do_, Ditto of the 10th of October 1720, at 2
_per cent._ or at the 50th penny 8 millions.
3_tio_, Ditto at ditto upon lives at 4 _per
cent._ or at the 25th penny 4 millions.
4_to_, Due to the company upon the original
stock of 100 millions still paid them at this day
at 5 _per cent._ 5 millions.
5_to_, For the 200 millions of credit at the
bank, suppose at the rate of 3 _per cent._ 6 millions.
6_to_, For the last 200 millions provided for in
different ways, suppose at 2½ _per cent._ 5 millions.
7_to_, Allowed to the company to indemnify them
for the loss they sustained by these arbitrary ways
of reckoning with them, 80 millions at 5 _per
cent._ still paid them 4 millions.
——
57 millions.
The interest at first was 80 millions
The interest at last was 57 millions
——
Defrauded by the scheme 23 millions a year.
This is (as near as I can guess at it) the state of the French
bankruptcy in 1720.
The creditors were _robbed_ of 23 millions a year. I call it _robbed_,
because the interest due to them was diminished by that sum, without
their consent, and in consequence of the most arbitrary proceedings;
whereas, had the system been conducted with ability, the whole of the
debts would have been brought to an interest of 48 millions, instead of
57, and no body would have complained of injustice.
Money likewise might have been brought to 2 _per cent._ The 1600
millions borrowed of the company at 3 _per cent._ would then have been
reduced to two; which would have brought the 48 millions of interest,
upon the whole, to 32 millions: and France, from being reduced to
beggary by the King’s wars, would have become the most flourishing state
in Europe.
Let us next guess at what may reasonably be supposed to have been the
largest sum of coin ever collected in this bank.
Public-domain text, read in full here on John Shaqi.
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