‘ 
£993: on stagnation in businefs. 205 
he has made 301. more than if he had suffered his 
money to continue at interest for the time ; but the 
Englifhman has not a penny more than just the in- 
terest of his money, so will probably return his mo-= 
ney to interest again, while the Dutchman has encou- 
ragement to continue the trade. But suppose ano- 
ther merchant buys at the same time, and takes the 
credit: as he pays 71 per cent. more for his goods, 
though sold equally well with the others, his net 
proceeds do not exceed the original cost, and as his 
bills falls due, six months before he has his re- 
turns, he is obliged to put off the time, by the help 
of bills of accommodation, which cannot be supposed 
“to stand him lefs than 3 per cent. as they would be 
to renew twice in the time; so that he loses just as. 
much as the Dutchman gains, supposing all other cir- 
cumstances equal. yoy 
_ And so far the higher rate of interest and the long 
credit is against the export trade. To save this, so 
many merchants got into the trade of ifsuing pro- 
mifsary notes, instead of cafh, in their payments : and 
thus trading upon an imaginary stock, no wonder if 
they extended their businefs beyond all rule of pru- 
dence, and at the same time engrofsing all the trade 
to themselves, as they had such an advantage over the 
‘merchant who was trading on real stock, as the out. 
lay of the money must be reckoned. by him as an _ 
article-in the cost of his goods, viz. the interest the 
money would have brought him in the time, if he 
had not employed it in trade ; whereas the others lay 
out no money, though they seem still to buy for ready 
money. The multiplicity of daha banks, there- 
} 
