William Petty

“ And when one man furnisheth another with money at some distant place, and engages under great Penalties to pay him there, and at a certain day besides; the consideration for this, is that we call Exchange or local Usury [1] .
As for example, if a man wanting money at Carlisle in the heat of the late Civil Wars, when the way was full of Souldiers and Robbers, and the passage by Sea very long, troublesome, and dangerous, and seldom passed; why might not another take much more then an 100 1. at London for warranting the like Summe to be paid at Carlisle on a certain day? ”

“ Now the Questions arising hence are; what are the natural Standards of Usury and Exchange? As for Usury, the least that can be, is the Rent of so much Land as the money lent will buy, where the security is undoubted; but where the security is casual, then a kinde of ensurance must be enterwoven with the simple natural Interest, which may advance the Usury very conscionably unto any height below the Principal it self. ”

“ I should here enlarge upon a Paradox, to prove that if every mans Estate could be alwayes read in his forehead, our Trade would much be advanced thereby, although the poorer ambitious man be commonly the more industrious. ”

“ As for the natural measures of Exchange, I say, that in times of Peace, the greatest Exchange can be but the labour of carrying the money in specie, but where are hazards [er 1] emergent uses for money more in one place then another, &c. or opinions of these true or false, the Exchange will begoverned by them.
5. Parallel unto this, is something which we omit [er 2] concerning the price of Land; for as great need of money heightens Exchange, so doth great need of Corn raise the price of that likewise, and consequently of the Rent of the Land that bears Corn, and lastly of the Land it self ”

“ And as for the proportion of every Contributor, why should any man hope or accept [8] to ease himself by his craft and interest in a confusion? or why should he not fear, though he may be advantaged this time, to suffer in the next.
↑ The attempted analogy between usury and exchange is hardly established. In case of usury he who is to receive gets the consideration, in case of exchange he who is to pay. ”

“ Credit every where, but chiefly in London, being become a meer conceit, that a man is responsible or not, without any certain knowledge of his Wealth or true Estate. Whereas I think the nature of credit should be limited onely to an opinion of a mans faculties to get by his art and industry. ”

“ Hence it comes to pass, that Lands intrinsically alike near populous places, such as where the perimeter of the Area that feeds them is great, will not onely yield more Rent for these Reasons, but also more years purchase then in remote places, by reason of the pleasure and honour extraordinary of having Lands there ”

“ Wherefore we must adde to the premises, the know-|33|ledge of the difference of the numbers of the people, and conclude, that if all the money in the Nation were equally divided amongst all the people both then and now, that that time wherein each Devisee had wherewith to hire most labourers, was the richer. ”