[Footnote 6:  P. Fitzgerald says “which they have not been able or willing to pay.” [W.S.J.]]

[Footnote 7:  Dr. Gilbert Burnet. [ORIGINAL NOTE.]]

I was moved to speak thus, because I am very well satisfied, that the pernicious counsels of borrowing money upon public funds of interest, as well as some other state lessons, were taken indigested from the like practices among the Dutch, without allowing in the least for any difference in government, religion, law, custom, extent of country, or manners and dispositions of the people.

But when this expedient of anticipations and mortgages was first put in practice, artful men, in office and credit, began to consider what uses it might be applied to; and soon found it was likely to prove the most fruitful seminary, not only to establish a faction they intended to set up for their own support, but likewise to raise vast wealth for themselves in particular, who were to be the managers and directors in it.  It was manifest, that nothing could promote these two designs so much, as burthening the nation with debts, and giving encouragement to lenders:  for, as to the first, it was not to be doubted, that moneyed men would be always firm to the party of those who advised the borrowing upon such good security, and with such exorbitant premiums and interest; and every new sum that was lent, took away as much power from the landed men, as it added to theirs:  so that the deeper the kingdom was engaged, it was still the better for them.  Thus a new estate and property sprung up in the hands of mortgagees, to whom every house and foot of land in England paid a rent-charge, free of all taxes and defalcations, and purchased at less than half value.  So that the gentlemen of estates were, in effect, but tenants to these new landlords; many of whom were able, in time, to force the election of boroughs out of the hands of those who had been the old proprietors and inhabitants.  This was arrived at such a height, that a very few years more of war and funds would have clearly cast the balance on the moneyed side.

As to the second, this project of borrowing upon funds, was of mighty advantage to those who were in the management of it, as well as to their friends and dependants; for, funds proving often deficient, the government was obliged to strike tallies for making up the rest, which tallies were sometimes (to speak in the merchants’ phrase) at above forty per cent, discount.  At this price those who were in the secret bought them up, and then took care to have that deficiency supplied in the next session of Parliament, by which they doubled their principal in a few months; and, for the encouragement of lenders, every new project of lotteries or annuities proposed some farther advantage, either as to interest or premium.