A BANK-Dialogue: OR, Doctor Chamberlen's Land▪Bank EXPLAINED, By way of Question and Answer.
Quest. WHat is the meaning or signification of the Word Bank?
A. The Word Bank hath several significations, and was often Antiently made use of in the Laws of England, tho' not now; but the more general meaning of that word, as now used, is a place, where great Wealth is laid up together, to be Let out at Use, or otherwise Disposed to Profit.
Q. How comes it then to pass, that Dr. Chamberlen calls his intended Bank, a Bank of Credit, intimating, as if Persons, who brought Wealth to his Bank, or Store house, should receive nothing for it back again but Credit; which is a meer empty Name, and ( as Merry Andrew says of Honour) will not pay for a Shoulder of Mutton?
A. You much mistake the meaning of Credit, when you call it an empty Name only; for daily Experience shows it to be more useful than Money; for certainly there's above Ten parts in Twelve of the Trade of this Nation managed, or transacted, by Credit, or upon Trust, which is but the same thing in another word: And, as England is at present more than ordinarily unhappy by the want of Money in general, and by having even the greatest part of that they do enjoy, so Adulterated, or Clipped, that the Intrinsick Value thereof cannot be known, unless you carry every Six-penny piece to a Say-Master, it is now more than ever necessary that Credit should pass.
Q. Ʋpon what must this Credit be found [...] to make it good, and not subject to as many Tricks and Inconveniences as Money?
A. Upon Land certainly, for that will be the best Fund or Security whereon to Issue Credit; because that can never be stole away, will never perish, nor die, but be always the same, and will always yield some Increase, without any, or with the least hazard.
Q. How can Land possibly be brought into a Bank, or made a Security for Credit?
A. Just in the same manner as Lands are now made a Security for Money by Mortgage, or other proper Conveyances in the Law.
Q. How must a Man receive Credit for his Land, so as that it may be known and useful to him?
A. By Bills of Credit, which are delivered to all Persons that make over, or convey their Land to the Bank.
Q. What do you mean by a Bill of Credit?
A. A Bill of Credit, is a Paper, or other Writing, whereby it is declared, that the said Bill is of the Value therein mentioned, (as Ten, or One Hundred Pounds) and that Land is made over to the Bank, to Answer, or make Good the Value of such Bill, to any Person that shall have the same.
Q. May any Body have Bills of Credit, that will come to Dr. Chamberlen 's Bank for them?
A. No; only such Landed Men as make over their Land to the Bank, for making good the Bills of Credit they take out thereupon.
Q. To what Value may Landed Men have Bills of Credit upon their Land?
A. That may be seen in the Doctor's Proprosal; but in short it is 8000 l. in Credit for every 100 l. a Year in Land.
Q. Does the Landed Man sell his Land to the Bank for such Bills of Credit?
A. No; only Charges his Land to make good, or pay into the said Bank such Yearly Sum of a Hundred Pound.
Q. For how long time must the said payment of a Hundred Pound a Year continue, to be made to the said Bank for 8000 l. Bills of Credit?
A. For a Hundred Years.
Q. Why for a Hundred Years? That will come to [...]0000 l. and Eighty Years will make good 8000 l.
A. The other 2000 l. is to enable the Office to defray the Charges past, and for Management for the Hundred Years to come; and the remainder, if any, is to be his Reward for his many Years Labour, and Charges, in bringing this Bank to pass.
Q. What must any Body do with these Bills of Credit when he hath them?
A. The same as with so much Money, buy Land, or Goods, or employ Persons in any sort of Work.
Q. Why do you say so? Will they pass in any payment as Money, and to any Person?
A. Yes, certainly; for these Bills are sure Pledges or Securities for such Sums of Money as are mentioned in each respectively; and so will pass as currently as Money among all people; tho' Credit, as now managed, passes only amongst Acquaintance, none caring to Trust those they do not know; because they cannot make any reasonable guess, whether they shall ever be paid for what they so Trust, or not.
Q. But may not this Office Issue out more Bills of Credit, than there is Land tyed to make good?
A. No; for there are Persons of great Honour and Stations in this Nation, who have considerable Yearly Salaries allowed them, purely to take care of that, one or more of whom is to Attest every Bill.
Q. What is to be done with the Hundred Pound a Year, which is to be paid into the Bank?
A. That is to be employed every Year in buying up, or paying off Bills of Credit which have been Issued out, that they may be destroy'd; so that in a Hundred Years there will be never a Bill left, nor no Land tyed, but all things will then become again (in slatu quo) just as they are now; and in the mean time Landed Men may play with Trade, and stake these Bills of Credit, as Counters instead of Money, and make the [...]ank their deposite, which will certainly fully Answer, and Satisfie all the said Bills at the end of the Term.
Q. May every Landed Man for a 100 l. a Year in Land, have 8000 l. Bills of Credit presently down, to dispose of as he pleases?
A. He shall at several payments, in four Years time, have 5000 l. at his own Disposal, and 3000 l. more in a Joint-stock, to manage a Trade, of which he shall have the Sole Advantage and Management.
Q. Why will the Bank be four Years in Issuing out the said Bills of Credit, and not do it presently?
A. One reason is, because the said Bills will be some time a making, but the main Reason is, because the Nation should not be clogged with them all at once, nor Chapmen abused by raising the price of Goods.
Q. I am told every Landed Man must pay 1000 l. in Money into the said Bank, for every 100 l. a Year that he settles, why must that be done?
A. It is to Change 1000 l. of the 3000 l. Bills in the Joint-stock into Money, for which 1000 l. in Money, they have 1000 l. in Bills of Credit, and so no hurt done.
Q. What need is there of such chopping and changing, of Money for Bills, and Bills for Money, since they are both of equal Value?
A. It is to enable the said Bank to turn into Money all such Bills of Credit, as shall be brought to be changed, which will never be desired, but by cross, and peevish, or ignorant Persons.
Q. Why will the cross and ignorant bring their Bills to the Bank to be changed into Money?
A. The cross will do it (as the Devils do every thing) purely for mischief sake, to give trouble, and make a bustle; and the ignorant, because they know nothing but Money.
Q. Why must the 3000 l. of the 8000 l. be put into a Joint-stock?
A. That is not done purely for Advantage to the Landed Men, tho' it is certainly true, that great Stocks generally drive or carry on the most profitable Trades, or Undertakings, but chiefly as a Caution or Security to make good the 100 l. a Year, which is to be paid, to Answer the Bills of Credit Issued thereupon; and so not to be alienated from that Land; at least it is in the first place to make good the said payment.
Q. Is not 10000 l. too great a Credit to Issue upon 100 l. a Year Land?
A. No; in regard the Land is able to make it good, being never required to pay more than 100 l. a Year, and not the whole 10000 l. at one payment.
Q. But if any Person should make over an Estate to the Bank, which he is not intituled to, how must such be made good unto the Bank?
A. By the 3000 l. such Persons hath in [Page]the Joint-stock; which if it produce but Four per Cent. per Annum, is sufficient; and I never yet heard of any Tradesman that made so little.
Q. If the Lands settled should fall in their Yearly Rent by Taxes, or otherwise, will not the Bank, in such case, be a Loser?
A. No; unless they fall more than ever yet was known; for 150 l. per Annum is settled, to make good the payment of 100 l. per Annum, and for 150 Years to make good 100 Yearly payments, now 150 l. per Annum for 150 Years, comes to 22500 l. which is above double what it is obliged to make good [...] and no doubt but Land by this Bank, will be improved, and not lessened in Value.
Q. Is not 100 Years too long a Term for any Landed Man to charge, or incumber his Estate?
A. No, certainly; for now it is commonly done. Mortgages are often made for a 1000 Years, and for Ever, if not redeemed before; and here it is for 100 Years certain; and Leases are frequently made for Fines paid down, and Small Rents reserved for 99 Years, or Three Lives; and this Bank gives a sufficient Satisfaction for such Incumbrance.
Q. Will not the Issuing out so many Bills of Credit clog the Nation; and enhaunce the Price of Goods?
A. No; for Forty Millions will not pay the Debts that are owing upon Mortgages, and by one Trader to another; and it requires 400000 l. a Year in Land, to raise such a number of Bills: And to continue Trade, by employing those who are already employed, as well as such who are now ready to starve for want of Employment, will need a further mighty Cash; and Foreigners will come hither from all parts, when they are sure to be employed; which will enrich and strengthen this Nation; besides every Year a hundredth part of these Bills will be destroyed.
Q. Can this Bank be Established without an Act of Parliament?
A. Yes; for nothing is done by the Bank against Law.
Q. Why then did the Doctor Apply to the Parliament, to get an Act to Establish this Bank?
A. That was only to get them to enforce the Circulation of the Bills, and to give them the Name of Money; and since that time, necessity and experience, have made the Nation wise enough to take them withou [...].
Q. Cannot the Parliament Suppress the Bank, and so force every one that has taken the Bills to Lose by them?
A. No; with all reverence to that August Assembly be it spoken; for Parlaments have Bounds, and they can no more [...] than they can make a Law for A. to [...] joy B's Estate; which all who have treat [...] of the power of Parliaments, say they ca [...] not do; they are to preserve, and not to d [...] destroy Property; and I never yet heard it was a Crime for any Person to Len [...] 10000 l. upon 100 l. a Year Security; no [...] for any one to Borrow so much, if he could.
Q. Why should any Person make over their Lands to the Bank for Bills of Credit; when they may have Money at any Scriveners upon them?
A. Because here they can have 8000 l. when the Scriveners will Lend but 1500 l. at most; and here they pay but 5 s. or a quarter of one per Cent. per Annum Interest; and the principal in 100 Years by 20 Shillings a Year for every 100 l. or which is the same thing, 25 Shillings a Year Interest for every Hundred Pound for 100 Years, and never repay the principal: And at a Scriveners you must pay 3 l. per Cent. per Annum at least, and the principal again. Which as will be Demonstrated by the Learned in Arithmetick, makes the going to the Bank, above 60 times more Advantageous, than taking Money at Interest any where else.
Q. Do other Banks, namely Doctor Barebone 's, the Orphans, &c. do so as well as the Doctor's?
A. No; they are purely Contrivances for profit to themselves, and Excel Scriveners only in this, that they Lend 1500 l. upon 100 l. a Year, and Scriveners commonly Lend but 1000 l. and they take but 3 l. per Cent. per Annum Interest, when Scriveners and Misers take 6 pound and somtimes 20 l. per Cent. per Annum Interest Procuration and Continuation.
Q. Will it not be Ʋnjust for the Doctor to set up such a Bank now after other Banks are set up before him, which must be ruined by this Bank?
A. First the Doctor, as he is ready to make appear, was the first Contriver of a Bank of Credit upon Land-rents, and all other Banks now in being, or going to be (for ought appears) are but imperfect Sketches or Imitations of his, and those too Stolen from him, so it is his Right. But whoever thought it unjust to root up a Thistle, to plant a Cedar in its room; and tho' Turn-spits were once useful, yet Jacks for Ages past have been admitted into this Nation.
Q. Will not these Bank-Bills make Money useless?
A. No; for Money will still be useful in all small payments, and to Change these Bills; as Silver to Change 5 l. pieces of Gold, and Farthings to Change Silver.
Q. What shall great Monied Men do with [...]ir Money?
A. Bring it into this Joint-Stock, or [...]nd it to Merchants, or Trades-Men, or [...]pon any other Security that is more hazar [...]ous than Land, and so they will do the Nation good; for now they do good only [...]o themselves; adding Wealth to Wealth, by the Labour and Industry of others, Userers not caring now to lend their Money to any, but those who will Mortgage Land to secure it; or if they do Lend a Merchant, or a Sea Captain, or a Trader any, they will have at least 10 l. per Cent. per Annum, which is a mighty Clog to Trade, and very unequal.
Q. Cannot these Bills of Credit be Counterfeited?
A. Not near so easily as Money, Mortgages, Bonds, Bills of Exchange, or Goldsmiths Notes, all which are notwithstanding of use; for here several Hands must be Counterfeited, besides other things, which is almost impossible; at least provision is Effectually made that none need to be deceived by them.
Q. How may any one that is not able to pay 1000 l. in Money, and yet can settle a 100 l. a Year in Land, come into the Bank?
A. He may get some Friend to pay it for him, and take so many Bills as the 1000 l. comes too; else there are Persons that will do it for a reasonable Consideration.
Q. Where may such Persons be found, as will pay the 1000 l. in Money, and take the Bills?
A. Any Person that asks the Doctor may be informed.
Q. May any Person who has Mortgaged his Estate, come into the Bank?
A. Yes, as well as remove a Mortgage any where else, which is daily done.
Q. But the Doctor proposes to pay down for Engaging 100 l. a Year, but 1000 l. in Bills, and 400 l. must be paid down in Money, so that the Landed Man receives but 600 l. down, and many times his Estate is Mortgaged for more, and how must such be supplied?
A. The Doctor will supply all such with Bills sufficient to pay off their Incumbrances, as far as 4000 l. if necessary, paying only discount at 5 l. per Cent. per Annum, for what they shall so Borrow.
Q. Where may one come to have the Benefit of this Bank?
A. At Doctor Chamberlen's House in Essex-street, Mr. White's Chamber at Numb. 7. in the New Buildings in Lincolns-Inn; and at Mr. Puckles, at the Outropers-Office on the Royal Exchange.
Q. Does this Bank issue out Bills of Credit already upon Land, or not; and if not, when will they?
A. They do not yet, but will so soon as 50000 l. per Annum in Land is Subscribed?
Q. When may that be reasonably supposed to be done?
A. Very speedily, more than Half that Sum being already Subscribed, although very little publication hath hitherto been made of the Books being open for Subscriptions.