The New-Jersey gazette — Burlington [N.J.], 1778-09-09 00:00:00, page 1

( Continued from our lafl.)
^ N order to assist in pursuit of the knowledge
and practice of justice, equity and truth, I beg
ffl leave to offer the following observations:
I. That by reason of the opportunities the
monied part of the community has to extor
" tionate on the indigent, it becomes the legis
lature to interpose and regulate the interest.
2. That the lending and borrowing of money to
, jrchafe freeholds, is of vast advantage both to indi
duals and the community.—By limiting it to the
purchase of freeholds I mean to exclude that of mer
i rants, who entice people to buy many fuperfluities
upon credit, and afterwards not only get bonds or
1 otes, but even make them pay interest for their book
debts. This is ruin to a community, against which
tie legislature ought to guard as much as possible.
To make the proposition as above stated, evident,
Lt us suppose B borrows of A 10001. and buys with
it a farm worth that money. It is confeffed the pro
perty of that farm properly belongs to A. Allo D
lires a farm of C, worth 10001. Thus far these two
ire alike. The difference is here, B has the fte-limple,
aid whatever improvements he makes upon the farm,
edounds to his own advantage; which is a manifeit
ncitement to industry, prudence, care and ceconomy.
The case of D, who hires the farm, is the reverse.
All his improvements on the farm redounds to C, who
has the title. The natural result is, that farms thus
purchased, have been well improved, to their own
and the publick's advantage, while those hired have
been neglected. Hence has followed the matter of
fad which none will presume to deny, that where one
ran has made an estate by hiring farms in America,
five hundred, perhaps a thousand, have made them by
borrowing money.
Here permit me to express my surprise at the amaz
ing ignorance and stupidity of the Equal Taxer, who
<Aerts, that it cannot be the duty of an, fate, especially
these in America, to encourage usurers. If by usurers
he only means such as exad unlawful and immoderate
interest, I cordially join with him ; but from his rea
soning it is manifeft this is not his meaning. If the
Americans, from the beginning of its settlement, by
combating the men who live upon their money as use
less members of society, had so embarrassed the lend
ng of it that money could not have been borrowed,
ivhat would have been the consequence ? The answer
may be readily given—The monied gentlemen would
have laid out their money in lands, (as this friend to
his country would have it) and thousands of Ameri
can freeholders, who now live in affluence, and prove
the bulwark against English tyranny, would now have
been the tenants of some tyrannical lord, bidding up
against their neighbours the rents of farms, in order
to obtain a bare livelihood for themselves and families,
and thereby enable his lordship more effectually to ty
rannize over them. Is this what Equal Taxer aims
at? With his leave I ffiall here borrow his exclamati
on : Kind heaven ! deliver m, country from such Equal
Taxers.
Hence it appears, that though in point of equity
and justice it would be the fame, yet in point of po
licy to our national advantage and fafety, the taxing
of both landlord and tenant for the fame farm, would
be greatly preferable to that of the lender and bor
rower of money ; because it would have a natural
tendency to the purchase of freeholds, to private and
publick emolument.
3. I observe hence, that it is the duty of our legisla
tors to encourage the lending and borrowing of money
for the purchase of lands. He that contents to my
former observation, cannot deny this. Lending and
borrowing are relative terms, inseparable from each
other. If no money is to be lent, there can be no
borrower ; if there is no borrower, money cannot be
lent. The manifold advantages arising from the pur
chase of freeholds in the settlement of this new coun
try, are doubtless very strong incitements to the bor
rowing of money. Hence it is the duty of the legisla
ture to take care that the borrowing of it be not
so embarrassed by opportunities for extortion, or any
Let it also be observed, that the opportunity of bor
rowing money has been, and will be, the means, espe
cially in America, of keeping rents of farms within
bounds ; for a tenant, who by ceconomy and industry
has gained something while the terms of his lease
were moderate, finding that his landlord begins to
bear harder upon him, may borrow an additional
sum, and purchase a freehold ; so that the landlord
cannot here get his tenant in the dilemma of comply
ing with his demand or be ruined. Such attempted
oppression then only proves the means of advancing
the tenant's and the community's interest; which
would not be the case if money was not to be bor
rowed.
NEW-JERSEY GAZETTE.
[Vol. I.]
WEDNESDAY, September 9, 1778.
other way, that the disadvantages of borrowing over
balance the advantages in purchasing. It is manifeft
from the nature of things, that as soon as this be
comes the case, such purchases will decrease and
flop ; also that the lending of it be not so embarrassed,
that those who have it may have no inducement to
let it to others for use. It is vety evident and natu
ral to suppose, that if persons who have the money, fee
it to be to the fafety and emolument of their estates
to apply it any other way, they will not let it to inte
rest. And I hope it will be allowed, that men have
as good a right to dispose of their money as their
other possessions. And here it is evident, whatever
inducements may be for purchase, none can be made
if no money is to be hired, save only by the few who
have it, and consequently the most profitable improve
ment of America will cease. Thus it appears to me
that the foregoing observation is undeniable.
4. That any law which fubjedts the money bor
rowed for the pui chafe of freeholds to a double tax in
proportion to other taxables, is of pernicious ten
dency to the State, as well as unjuftin its nature. I
conceive this proposition to be undeniably evident
from all what I have before offered.
5. I observe that it is the duty and business of the
legislature so to regulate the paying of the tax afore
faid, as may do justice to lender and borrower,
and prove an encouragement to both : He that con
sents to the former proportions, will not presume to
deny this. Here, however, is the grand point, to
wit, How the legislature is to conduct the matter,
in order to obtain this valuable end in view! Here I
think one important confidcration is, to guide in the
deliberation. If the circumstances of times and
things are such, when the law is about to be passed,
as plainly insinuates that the borrower has got so tar
the advantage of the lender, by the rife of the value of
his farm and its income, as to enable him to pay the
tax, and then leave him upon such good conditions
to his advantage as when he took the money, he
ought to pay the tax. Ifby the fall of the price of
lands and its produce, the lender has got the advan
tage ofthe borrower as that he may pay the tax, and
be then left upon equal terms of advantage with the
borrower, he ought to do it; and when circumstances
are such that neither should pay the whole, that then
the parts ought to be regulated in proportion to the
foregoing rules. Such regulations would leave this
matter on its former footing, which has proved, by
long experience, of great advantage to individuals
and the community.
6. I observe, in the last place, that it becomes the
legislature to regulate this matter between lender and
borrower in such a manner as may be most agreeable
and advantageous to both, which certainly will prove
an encouragement to both, before proved to be ne
cessary and profitable. And thus in forming this
plan two things ought to be avoided; on the one
hand, to oblige the borrower to render an account of
what he owes ; and on the other, the lender of what
he has due. The disagreeable nature and bad conse
quences ofthe former, I think are such as ever to de
ter the legislature from attempting it, if possible to
be avoided. The reasons are not only the disagree
able feelings it must produce in the mind of an honest
and industrious person, who has been obliged to en
cumber himlclf, tor the present, in order to promote
his future advantage, to have a state of his debts laid
open to every afielfor, and also to every one who may
infped the duplicate in the hands of the collector, but
also the grand abuse which ill-disposed neighbours
might make of it, to the great damage ofhimfelf and
family. And as to the latter, although they may be
out of the reach of such abuse, yet those among them
who arc men of honour and tender feelings, nil! feel
disdain rife in their breasts from such injury. Though
some persons of a contrary character may be disposed
to trifle with this remark, yet if I may be permitted to
suppose that men of honour at different times and
places may have the fame feelings, I appeal, for a
corroboration of this remark, to the effed of the at
tempt which Philip the second made in the United
Netherlands. Every one acquainted with the history
of that nation, knows what was the effed of the laws
which that tyrant caused to be made, exacting the
tenth, fiftieth and hundredth penny. One of the
grand objections was, that an inquiry was necessary to
be made into private estates, to which reference was
had in the laws, in order to levy the tax. The then
Dutch were men of such feelings, that when the in
quiry was at.empted to be made, they absolutely re
futed to submit; and this proved one of the main
causes of their general revolt.
Hence remains the only fafe, equitable, just and
easy way ; and that is the regulation of the "interest,
which in effect answers all the valuable purposes be
THE
fore mentioned, and avoids all inconveniences. To
make this evident, let us suppose that B pays 7 pel
cent. interest ; circumstances change, so that justice
requires that A should pay the tax for that sum, which
ye will suppose to be 1 per cent. Query, what is the
difference to the borrower whether he pays the tax
and has it deducted from the interest, or whether he
pays the interest in full, and has that sum deducted
from his tax ? or whether in stead of 7 he pays 6 per
cent ? In every case the borrower, who has the im
provement of the farm purchased for that money,
pays igL And let the borrower fay whether he chose
rather to pay 701. interest, and then be obliged to give
up this sum to the alfeffor, and expose his debt to the
view ofthe world, and the lender pay icl. of it, or pay
601. and be free of all the other disagreeable encum
brances ? I am sure he would not hesitate a moment.
The remarks of the animadverter on the fourth ob
jection of T. W. is a piece of such mean scurrility, as
demeans it below the notice of any man of candour ;
as for me, I shall regard it no other. I do honestly
declare, that though I reap as much benefit from such
a taw, in proportion to what I am worth, as any man
in the State poiHbly can do, yet I find my mind sensi
bly afieded with the fubjed of T. W's fourth objecti
on. How can I avoid feeling, when I recollect how
many widows and orphans there be, whole deceased
guardian has directed by his last will, that his estate
Should be fold, and his widow and orphans be main
tained out of the income of the amount, which at
that time afforded them a comfortable fubfifterce ?
The depreciation of the Continental currency, which
a set of tory villains have firft begun, and a set of ex
tortioners, more abandoned, if possible, than the for
mer, have lince encouraged and supported, has re
duced their principal to less than half its firft value.
And what can they now purchase for the income to
wards their maintenance ? While they get 5 or 6 per
cent, they must pay 500 or 600, and many things 800
or 1000 per cent, for the necessaries of life. In the
fame predicament are many honest friends to their
country, who have fled from a tyrannical enemy and
left their abodes and employments, in hopes of pro
curing a livelihood by some money they had out in the
country, and some they took along with them, and
have taken shelter among us.
These things considered, it is evident that no people
among us nave been obliged to make a greater facrifice
of property, or, in other words, no property has paid
greater taxes than money, in the present glorious
Itruggle for liberty ; for, while the farmer, mecha
nick and day-labourer follows the track of the ex
tortionate trader, the widow, the orphan, the super
annuated, and many virtuous refugees, remain con
fined within bounds. I fear this will open a vein, if
kind heaven does not prevent, which will make many
an innocent bleed to death. I cordially with that
Equal Taxer, who so eagerly pursues the miser, as the
useless member of society, (of which, I am persuaded,
he shall overtake but a small number in this State, in
comparison with the extortioner, and even the inno
cent luffcrers I have mentioned) would here do what
he with great parade was about to do in another case,
that is, put on his fpedacles, and try whether he can
not difeover fuffcring innocence, and thereby recover
bowels of pity, if ever he had the feelings of it ; then
I am sure he would not endeavour to add unjust taxa
tion to the oppressive load of unjust depreciation of
their property at d its income.
If I have erred in what I have here offered to the
consideration of others, I do declare it has not been in
tentional ; my pursuit is after equity, justice and
truth : And 'till I be otherwise convinced by better
reasons than I have hitherto seen, I shall remain fa
tiffed that I have argued on the right fide of the
quthion. lam. Sir,
Tour and the publick's humble feraant,
A true PATRIOT.
From the Burlington Almanack.
To the Author of the Burlington Almanack.
AT a time when fweetenirg has become so very
scarce and dear as not to be come at by many,
it may be agreeable to some of thy readers to know
that a very good syrup, nearly equal to Weft-India
melaffes, may be made of Indian corn stalks, in the
following manner:
As soon as the grain is hard enough to save with
care, and before the leaves lose their verdure, hulk the
corn, clear the stalks of leaves, and cut them close to
the ground ; the tassel, with three or four joints .of
the top, may then be taken off, and the rest ofthe stalk
How far the reasons I have offered on this fubjeCt
are founded on equity, justice and truth, Ileave to
the candid publick tojudge.
[Numb. 40.]