3Of Credit good & counterfeitbad, & of the usefulness of the first & danger of the last. former.

p. 13Mr P, (sect 26) tells us that the allowing of paper to pass as money must have (& we have found by experience it has had) yethe same effect as yethe permission of two sorts of coyn one false & little worth little & the other time & valuable. Here he callscompares all paper credit to false money & a little after (sect 27) he adds that paper when it passes for money is as a false coyne. I answer that there are two sorts of paper credit, the one good upon the other counterfeit, the first upon good security, the other upon more upo credit with it. without it.one good orthe others bad. The good is upon good security & may be compared to good money The first is good & may mostmost properly be called d circulatinyg security the other was counterfeit the bad is upon bad security or without any security at all takesecurity & may be compared to counterfeit money.. The first I defend, the other Mr P. opposes. For credit ing paper credit or to speak more pap Tis opinion thatpaper security if it be godod is not of yethe same intrinsic value with good money. If security upon a Bond or Mortgage or Bill of Exchange or a Bank Bill &c be good, its as good as money. For otherwise no man would part wthwith his money upon such security. Good security is a phrase for wchwhich signifies security of yethe same value with money. For otherwise men would not part with their mo So long as we beleivebelieve it good so long we are content with it in lieu of orour money & when we begin to suspect its goodness we call it or money & givereturn it for take in orour money & return back yethe security. Tis mere opinion that sets a value upon money we value it because with it we can havepurchase all sorts of commodities for it & the same opinion sets a like intrinsic value upon circulatingpaper security. For We value it because with it we can purchase all sorts of commodities & money too. All the difference is that the value of gold & silver is set upon their internal substance or matter & therefore called intrinsic & that the value of circulating securityof paper credit security upon the apparent form of the writing & therefore called extrinsic & that yethe value of yethe former is more universal then that of yethe latter. But if Gold & Silver be preferable to credit theirpaper circulating paper security for their more universal value & circulation then for yethe same reason good circulating security is preferable to Bonds & Mortgages wchwhich have no circulation. For by circulatingion they areit paper security is rendred more usefull.. One sort of paper credit are Bills of exchange. These are so necessary to Trade that without them Trade could not be carried on, & their use consists in paying of debts wthwithout the trouble hazzard & tediousness of sending of money from nation to nation place to place. The like is done by Bank Bills Exchequer Bills & other sorts of good paper credit. And this makes such dispatch in business as enlarges Trade exceedingly, as is very planeplain by yethe great strop put to business & trade at prsentwhich the by yethe sinking of paper credit a month ago. last Ianuary this winter put to business & trade. Nor of is this desired by Mr P. p 13 But he Mr P. tell us that we cannot be certain that plenty of coyn will be obteined by a large trade for unless trade be good as well as great it may happen with a nation as with particular men that are often undone by enlarging their trades too far. I answer that The objection lies against Trade as well as against credit & not against either but against the excess of both., If & so makes as much against virtue as against paper credit because the virtue it self by running into extremes become vice If the too much credit & trade by unsafe let us use the have them in a moderate degree.

But he adds thosate the increasing of orour trade by more paper will have a natural tendency to enlarge those trades that are carried on by the exportation of orour coyn or Bullion, but how it can or will encourage any any trade, that will bring in Bullion (wchwhich are yethe trades that are grounded upon yethe labour of orour people) should be made out before we make any addition to yethe paper credit we have.

p 16 Mr P. allows that paper credit may be used sometimes as a cordial in cases of necessity but not as constant food & instances reccons the first ExcheqrExchequer Bills issued out in yethe late warr to be of this kind & ytthat it may be convenient upon pressing occasions to make us of yethe same method thereafter provided such Bills be issued out upon some fund & not for more then yethe tax may yeildyield & be paid off when yethe money comes in. For, saith he, the danger of using paper as money does not arise from yethe immediate use of the paper but from yethe misapplication of ytthat deposit & there for that reason he advises that as such paper cannot be discharged finally discharged but by payment of money so coyn so care should be taken to preserve coyn in yethe nation for that piurpose. He saith also that as such a way of giving a supply to the nation publick may be convenient in cases of necessity so it may be necessary to have a Bank in yethe City for yethe keeping of money & yethe ease of making payment by assignmtassignment, but in no case to allow of Notes & Bills to pass as money unless a pdepositum be secured. And By all this he allows paper credit so far aswherever yethe security is good, & so far thus f so far we are agreed.I agree with him. But then he seems to doubts whethser any paper credit be upon good security except where there depositum is a book in yethe City or We are also agreedI agree wthwith him also that where that where there is no deposition or yethe deposition is in danger of being withdrawn the security is not go bad & the paper credit to be condemnedunsafe. & such paper credit (not good circulating security) I would compare to counterfeit money & say that it may be used sometimes used as a cordial ins cases of necessity (like the brass money of K.King IJames in Ireland) &but is not to be used as constant good. And of such bad security This sort of Credit Paper credit Mr P. seems to understand when he compares it to counterfeit money & says that it is to be used only as a cordial. Thus far there For he speaks of credit where the deposit is in danger of being withdrawn.

So then the dispute against Paper Credit in general is at an end & the Question wchwhich remains is only about the goodness of the security of the safety of the Deposit on wchwhich this or that sort of Paper credit is grounded.

Credit upon a standing Bank if equal value is allowed to be good

And Credit upon land security is as good

And so is credit upon Parliamentary funds so long as the Government lasts & there is but money enough of our own to pay Taxes. Of this kind are Excheqruer bills, Bank of England Bills, Mault Tickets, Million Lottery Tickets, Annuity Tickets &c AndBut this security is weakended by the stocks of Forreigners in those funds. Five millions of money by circulating will pay a debt of 20 millions to orour own people, but it will not pay a debt of six millions to Forreigners. Their money is no safe depositum

The credit of particular Merchants is more apt to fail then ytthat of parliamtparliament unless in Barrs & yet must be tenderly dealt with because of the life of their trade

But Mr P represents &c

And so the Question wchwhich remains is only about ytthat security the goodness ofof paper on the several sorts of of paper credit on ytthat several sorts of security.

Credit upon a standing Bank of equal value is allowed to be good.

And Credit upon land security is as good.

And so is credit upon Parliamentary funds so long as ytthat Government lasts & there is but money enough to pay Taxes. Of this kind are excheqrexchequerBills, Bank of England Bills, Mault Tickets, Million lottery Tickets, Annuity Tickets &c † † The credit of particular merchants is more apt to fail & yet must be tenderly dealt with because the life of their trade.

But Mr P. represents &c