By this usage the goods lay on hand, and every month the money remained the goldsmith demanded a guinea per cent. forbearance, besides the interest, till at last by leakage, decay, and other accidents, the wines began to lessen. Then the goldsmith begins to tell the merchant he is afraid the wines are not worth the money he has lent, and demands further security, and in a little while, growing higher and rougher, he tells him he must have his money. The merchant--too much at his mercy, because he cannot provide the money--is forced to consent to the sale; and the goods, being reduced to seventy pipes sound--wine and four unsound (the rest being sunk for filling up), were sold for 13 pounds per pipe the sound, and 3 pounds the unsound, which amounted to 922 pounds together.
Pounds s. d The cooper's bill came to . . . . . . . . . 30 0 0 The cellarage a year and a half to . . . . 18 0 0 Interests on the bond to . . . . . . . . . 63 0 0 The goldsmith's men for attendance . . . . . 8 0 0 Allowance for advance of the money and forbearance . . . . . . . . . . . . 74 0 0 ====== 193 0 0 Principal money borrowed . . . . 700 0 0 ======= 893 0 0 Due to the merchant . . . . . . . . . . 29 0 0 ======= 922 0 0
By the moderatest computation that can be, these wines cost the merchant as follows:-
First Cost with Charges on Board. Pounds s. d In Lisbon 15 mille reis per pipe is 1,500 mille reis; exchange, at 6s. 4d. per mille rei . . . . . 475 0 0 Freight to London, then at 3 pounds per ton . . . . . . . . . . . . . . . . 150 0 0 Assurance on 500 pounds at 2 per cent. . . 10 0 0 Petty charges . . . . . . . . . . . . . 5 0 0 ======= 640 0 0
So that it is manifest by the extortion of this banker, the poor man lost the whole capital with freight and charges, and made but 29 pounds produce of a hundred pipes of wine.
One other office of this bank, and which would take up a considerable branch of the stock, is for lending money upon pledges, which should have annexed to it a warehouse and factory, where all sorts of goods might publicly be sold by the consent of the owners, to the great advantage of the owner, the bank receiving 4 pounds per cent. interest., and 2 per cent. commission for sale of the goods.
A third office should be appointed for discounting bills, tallies, and notes, by which all tallies of the Exchequer, and any part of the revenue, should at stated allowances be ready money to any person, to the great advantage of the Government, and ease of all such as are any ways concerned in public undertakings.
A fourth office for lending money upon land securities at 4 per cent. interest, by which the cruelty and injustice of mortgagees would be wholly restrained, and a register of mortgages might be very well kept, to prevent frauds.
A fifth office for exchanges and foreign correspondences.
A sixth for inland exchanges, where a very large field of business lies before them.
Under this head it will not be improper to consider that this method will most effectually answer all the notions and proposals of county banks; for by this office they would be all rendered useless and unprofitable, since one bank of the magnitude I mention, with a branch of its office set apart for that business, might with ease manage all the inland exchange of the kingdom.
By which such a correspondence with all the trading towns in England might be maintained, as that the whole kingdom should trade with the bank. Under the direction of this office a public cashier should be appointed in every county, to reside in the capital town as to trade (and in some counties more), through whose hands all the cash of the revenue of the gentry and of trade should be returned on the bank in London, and from the bank again on their cashier in every respective county or town, at the small exchange of 0.5 per cent., by which means all loss of money carried upon the road, to the encouragement of robbers and ruining of the country, who are sued for those robberies, would be more effectually prevented than by all the statutes against highwaymen that are or can be made.