Friday, July 22, 2022

Pastor Alexander Hewat - Creating Wealth by Lending

 Hewatt, Alexander, An Historical Account of the Rise and Progress of the Colonies of South Carolina and Georgia, Volumes I and II (1779)


Creating Wealth

Or, if the poor emigrant be an artificer, and chuses to follow his trade, the high price of labour is no less encouraging. By the indulgence of the merchants, or by the security of a friend, he obtains credit for a few negroes. He learns them his trade, and a few good tradesmen, well employed, are equal to a small estate. 


 

Having got some hands, instead of a labourer he becomes an undertaker, and enters into contract with his employer, to erect his house; to build his ship; to furnish his plantations with shoes, or the capital with bricks. In a little time he acquires some money, and, like several thers in the city whose yearly gain exceeds what is requisite for the support of themselves and families, lays it out on interest. Ten and eight per cent given for money, proved a great temptation , and induced many who were averse from the trouble of settling plantations, or were unable to bestow that attention to them which they demanded, to take this method of increasing their fortune. 

If the money lender followed his employment in the capital , or reserved in his hands a sufficiency for family use , and allowed the interest to be added yearly to the capital stock , his fortune increased fast , and soon became considerable . Several persons preferred this method of accumulating riches to that of cultivation , especially those whom age or infirmity had rendered unfit for action and fatigue. money in NOTWITHSTANDINS the extensive credit commonly allowed the planting interest by the merchants , the number of borrowers always exceeded that of the lenders of money. Having vast extent of territory, the planters were eager to obtain numbers of labourers, which raised the demand for money, and kept up the high rate of interest . The interest of every country is for the most part according to the demand, and the demand according to the profits made by the use of it. The profits must always be great where men can afford to take money at the rate of eight and ten percent. and allow it to remain in their hands upon compound interest .

In Carolina labourers on good lands cleared their first cost and charges in a few years , and therefore great was the demand for money in order to procure them.

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