The anatomy of a project for raising two millions

THE ANATOMY OF A PROJECT For raising Two Millions.

BEfore I enter upon the Project I will premise three things. First, That the Consumption amongst our selves of the wrought Silks, Bengals, and Painted Callico's of India is prejudicial to this Nation, and not only carries out our Money, but hinders our Silk and Woolen Manufactures at home. And here I shall not enter into a Dispute, whether the Indian Trade in general is beneficial to the Kingdom or not? for in my Opinion that ought to be made no part of the Question; but, whether, if those Manufactures were prohibited here, the Trade would not be more beneficial, or less destructive than it is?

I never heard but of two Objections against such a Prohibition that weighed with any body.

First, That the Trade cannot be carried on without these Ma∣nufactures, which is as much as to say, that the Kings of China and Japan will not sell us their Commodities unless we buy the Emperor of Persia's and the Great Mogul's; or that the Great Mogul will not sell us for ready Money raw Silks, Pepper, Muslins, white Callico's, Fans, Salt-petre, nor even these Manufactures unless we take as many as he pleases to impose upon us, and spend them in England too. If they say that the Trade will not turn to account without these Manufactures, they speak against mat∣ter of Fact; for they all know we carried on the Trade many years with great Success before they were thought on, this Mis∣chief being but of a few years date.

The second Objection is, That it is our Interest to spend the East-India Manufactures our selves, which cost but little, and so send our own to other Countries to a greater advantage. Now I would ask of these Gentlemen, Whether it is not full as reasona∣ble to let Corn come in from Dantzick and Poland, Cattel and Cloth from Ireland, Silks, Stuffs and Salt from France, &c. at a low Price, that we may sell our Corn, Cattel, Cloth, Stuffs and Salt to other Countries at a high one, as to say we must wear East-India Silks, Bengals and Callico's at home, that we may send our own Silks and Stuffs to Foreign Parts? as if the same reason which makes the East-India Commodities beat us out of our own Markets, will not beat us out of Foreign; and then we shall neither wear any of our own Manufactures at home, nor send them any where else: besides, we all know that many thou∣sands of both Woolen and Silk Manufacturers are ready to starve in England for want of Work; and that we do already sell as much Woolen Drapery abroad as we can have vent for, not∣withstanding all that is spent at home, and could make as much more if we could dispose of it.

The second thing I shall premise is, That we have sent former∣ly as many of these Commodities to the other Parts of Europe as we are like to do hereafter: France that took off a great part of them having already prohibited them intirely, and other Na∣tions may do the same. Besides, France as well as Holland, Den∣mark and Scotland, have East-India Companies, and other Coun∣tries in probability in time will have the like, who all will share in that Trade, which we formerly in a great measure ingross'd; so that if we increase much in it, it must be by our own Con∣sumption.

The third thing is, That there never was a Million per Annum (I believe not two thirds of it) spent in this Trade, (I mean original Stock outward bound) and there is no reason to believe this Project will enlarge the Trade; for no Person will have any liberty or advantage by it more than he hath at this time: for now every Man may trade for as much as he pleases without any limitation; whereas, if this Project takes, all that are not Subscribers will be restrained. When they talk of disco∣vering new Trades, I say, this Restraint will rather discourage than promote such a Discovery, for the Reasons before given;

nor is there any probability of such an Attempt, whilst they can make so great Advantage by these Commodities.

I am not positive in any thing I have here said; but as I am more or less mistaken in these Principles, so I shall be propor∣tionably in all the Deductions I make from them.

These things being premised, let us examine this Project, which runs thus, viz. Any Persons whatsoever that will subscribe 2000000 l. of Money to his Majesty's use, shall have 8 per Cent. perpetual Interest, redeemable by Parliament, issuing out of a double Duty upon Salt; and shall besides have a liberty of tra∣ding to the East-Indies for as much more; and if they will not trade themselves, may sell or rent that Liberty to any others, in the nature of Licenses to Hackny-Coachmen: so that here is 4000000 l. of Money to be raised, two for his Majesty, and two to trade with.

I do not pretend here to recite the Project offer'd to the House of Commons, for that I know nothing of; but this is a Project talk'd and cry'd up in Coffee-houses. Now I say, the Encourage∣ment offer'd to the Subscribers is not sufficient to bring in the Money; and if it was, it would bring utter Ruin to the King∣dom. To dissect it, let us enquire what the 8 per Cent. is worth as Exchequer Credit goes now. We may remember not many Months ago, that Salt-Tallies which had 7 per Cent. Interest, were sold for fifty per Cent. and now will not sell for above sixty four, tho it is the best Fund in England (it having paid off already near 80000 l. of the principal Money) and much bet∣ter than it can be when the Tax is doubled. I believe the Projectors will agree with me, that they are not like to sell bet∣ter for increasing our Funds; nothing being more certain than that the more Tallies or Stock we have, they will sell the cheaper: besides, when two Millions worth of Stock is to be sold together, it will not bear the same Price as when there is not above two or three thousand Pounds worth; for where lumping Sums are to be raised, there must be lumping Penniworths.

Therefore taking it for granted, that the 8 per Cent. will not be Encouragement enough, then this Defect must be supplied by Licenses to trade to the East-Indies, to the value of 2000000 l.

Now I have supposed before that a Million of Money is as much as can be turned, especially for a great many years, in this Trade; which, if true, then here are twice as many Licenses as can be

made use of. Now it is certain that every Man will rather make something of his License than nothing, and then of consequence they will beat down one another so low, that some of them may be bought upon very reasonable terms to put under Tarts and Cheescakes. I would ask of our Projectors, whether, if there were twice or thrice as many Licenses for Hackny-Coaches as could be employ'd about the Town, some of them would not be us'd for Bumfodder?

To avoid this necessary Consequence, perhaps they will say that 2000000 l. per Annum may be imploy'd in the Trade: then let us see what consequence that will be to the Kingdom.

Dr. Davenant says in his Essay upon the East-India Trade, that we usually send forth 500000 l. per Annum in value to the East-Indies, whereof I believe he will allow that not above 200000 l. was in Commodities: now I do not see any probability of more than that quantity in Commodities being ever sent hereafter; for if they could have disposed of more, the East-India Company and Interlopers would rather have carried it out, tho they got but two per Cent. by it, than have sent empty Ships. Indeed all parts of the East-Indies are so hot that our Cloth is of little use to them; and that which is sent is a Clog on the East-India Company, and little Benefit to us, for they send most of it up the Persian Gulf, which prevents the Sale of as much from Turkey: then the other 1800000 l. must be sent out in Silver and Gold. Now if what the East-India Company says be true, the Returns for this Money will be five times as much, which will make 9000000 l. but be∣cause we will be sure to be within compass, we will take it to be but six; and if what I have said in my second Proposition be true, all Europe besides England will not take off above 500000 l. of this Sum, according to the Computations of Dr. Davenant, who without doubt makes the most it: then there must be the value of 5500000 l. per Annum of these Commodities spent in England, which must put an end to every Manufacture we have, and in a few years not leave one Penny of Money in the Nation. It is not material whether my Computations are exactly right; for I intend only to shew, that if 2000000 l. can be turn'd in the Trade, then much the greatest part of it (if not nine parts in ten) will be carried out in ready Money; and we have no assu∣rance of ever seeing any Proportion of it again, that depending upon the Fashions, and uncertain Humours of other Countries.

If I am answer'd, That the Parliament designs to keep the Trade within their own Power, and to lay what Impositions or Restraints upon it they please; I reply, That destroys the very Project: for nothing is more certain than that these Inconveni∣ences will happen, and 'tis very probable the Cries of the People will at last prevail upon the Parliament to prevent them, as hath been attempted four Sessions together, and twice Bills have pas∣sed the House of Commons to that purpose: and can it be con∣ceived that the Merchants will subscribe a vast Sum of Money at such Uncertainties, when every Year they will be in pain about losing the most beneficial part of the Trade? The same Objecti∣on lies against its being made redeemable by Parliament; for tho that is never likely to be done, yet the very mentioning it may spoil the Proposal: for it is telling the Subscribers after they have stood the brunt of the day, if another Set of Men hereafter, when Money is more plenty, shall offer to raise the same Sum upon easier Terms, then they shall be laid aside.

From all this I infer, That if 2000000 l. is not employed in the Trade, the Licences will be worth little or nothing; for no body will be restrained when there are more Licences than can be used: and if the whole 2000000 l. is employed in the Trade, the King∣dom is undone. Besides, the East India Company that now is must either be abolished, or continued; if the former, it seems to be great Injustice to them, when the King hath granted them a Patent pursuant to the Votes and Address of the House of Com∣mons; if the latter, then there will be a great Stock without limitation employed in the Trade over and above this 2000000 l. and so consequently much more Money will be carried out, and these Licences of much less value.

We may add to this, That nothing can be more fatal to the Nation than settling perpetual Funds; for they maim the Pub∣lick, and in effect cut off so many Counties from the Govern∣ment, by diverting more Supplies than they contribute towards the National Charge to private Uses. It's a most miserable thing to consider, besides the Funds that will expire in about 8 years time, that we shall pay, if this Project goes on, near 800000 l. per Ann. for Perpetuities or long Tracts of years; which will make the Publick as much weaker, as if the 6 Nor∣thern Counties, with all the People in them, were sunk in the Sea. This it is that hath brought Spain to so low an ebb, not∣withstanding

their great Territories in Europe, and the Riches of the East and West Indies. Besides, these long Funds strike at the very Foundation of our Government; for if in a future Reign the Court should shut up the Exchequer, what will become of our Constitution, and the Power of Parliaments, for which, in my Opinion, we have no Security but their Power of giving Mo∣ney? and therefore unless I was a Minister of State, I would ne∣ver consent to a Project that seems so pernicious to me.

They tell us this Fund shall be made redeemable by Parlia∣ment; which is a Chimera, when there is the united Interest of such a number of People to continue it, and 2000000 l. of Money must be raised to redeem it: and whoever doubts this, let him consider not only what the East India Company hath done to pre∣serve themselves, but what Interest the African, Russia, Hambo∣rough, and other Companies, have always made when they have been in danger, and he will be satisfied that so great a body of Men armed with such a Revenue and such Privileges, will not only preserve themselves, but almost govern the Kingdom.

But farther, if this takes, in all probability it will destroy the Bank of England, not only by lessening the Price of their Stock, but by making such Demands upon them as 'tis impossible they should pay; and if they should be broke a second time, they must not expect another Resurrection; the consequence of which must be the destroying the Credit, and depretiating all the Tallies in England, which have advanced or decreased always with the Bank-Stock: nay, even this very Stock will have the same fate.

Besides, the doubling the Salt Fund in all likelihood will not double the Income, as we have experimented already in the Ex∣cise upon Beer and Ale; and then it will lessen the Security of the Salt Tallies, which now pays off every year part of the Prin∣cipal Money, and then perhaps will not pay off the Interest, and by that means make that Fund perpetual, which otherwise would clear it self in less than 20 years.

Before I have done, I will take notice of a Saying that is in al∣most every ones mouth, viz. That we must settle the East India Trade one way or other, or else it will be lost; tho, by the way, this can't be such a settling it; for this Project gives no Man any Advantage, Benefit, or Facility in Trading that he had not be∣fore, but only says, No Man shall trade that is not so qualified.

Now let us consider what Trades we are in possession of, and that we are likely to lose. We have little or no Trade but to Persia, India, China, or Japan, for the Commodities of those Countries, most of which we buy with our ready Money. Now I would ask, whether if we should discontinue this Trade for 20 years (which cannot be the case) they would not sell us their Commodities for ready Money whenever we offer'd it. The English and Dutch East India Companies know this by woful Ex∣perience; for tho they have had the Monopoly of these Trades for many years, yet now the Interlopers beat them both out of them.

There is one part of the Trade to the East Indies which would be beneficial to us if we could get it, which perhaps requires joynt Counsels, Stock, and Forts to manage, which is the Trade for Spices to the Molucca and Philippine Islands. The reason that Forts may be necessary here is, because they are small Islands inhabited by few People, and may be seized by the Dutch and other Nations, if we do not protect both them and our selves: but this Reason will not hold in those vast Dominions where Forts cannot defend us against the Natives, and the Natives will protect us against other Nations: so that nothing can be more ridiculous than to have Forts there to secure the Trade of the Coasts of 10000 Miles; as if we should have a Fort at Archangel to secure the Trade to Turky.

This Trade for Spices would be a prodigious Advantage to the Kingdom, tho not so great Profit to the East India Company as the Manufactures they now trade in; which is the reason they have never yet applied themselves to get it, as might be easily done if Dampeir tells us true, who says, that many of the Philip∣pine Islands have Spices which the Dutch know nothing of; and some of them have made Overtures to the Company, but without success: so that upon the whole matter it appears to me, the pre∣judicial part of the Trade we can't lose, and the other we either will not, or cannot get.

But after all, if we are resolved to encourage these Manufa∣ctures, in my Opinion the best way will be to establish the East India Company, not for the Reasons they give, but because it will discourage the Trade; for as they would manage a beneficial Trade to least Advantage, so they will a destructive one to least Disadvantage.

I do not pretend here to have recited the Project exactly, nor am I positive in any of my Computations, but have endeavoured to take them the strongest against my self; and if I am mistaken in them, there must be proportionable Allowances made: and yet I believe the Substance of what I have said will hold true. Be∣sides, I have not entred into the Practicableness of the Project, as how it will be possible to confine Men to trade for no more than they ought to do, when Gold, Silver, or Jewels, may be carried out privately, and Money may be transmitted by Bills of Ex∣change; and then what will become of the Licences? but this I will leave till I know more of it, and then I will either own my self in the wrong, or shew it to be a sensless Project.

It cannot be doubted but those whose business it was, consider∣ed of all the Proposals for raising of Money before the Parliament sat; and since they thought this a good one, they would have done their Country great Service if they could have offered it sooner: for by that means they might have saved the great Dis∣counts we have paid; they might have discharged a great many thousand Seamen, which we have kept in constant Pay for want of Money to clear them; they might have disbanded all the Army which the Parliament have not allowed, and have been kept up since at the expence of that Money which is and must be given to maintain those that were allowed, because a few thousand Pounds could not be got to disband them; besides the great Inconveni∣ence it has been to the Country-Gentlemen, who have been kept from their Affairs at home, and at last may be under a necessity to leave the whole Business of Parliament to those whose Occasi∣ons require them to be about Westminster.

I will conclude, with my hearty Wishes for raising the Money by the most effectual means, for his Majesty's and the King of Spain's Life, and a Triennial Parliament.

F. S.