ABSTRACT
This chapter describes interest and explores that lowness of interest is ascribed to plenty of money. Prices have risen near four times since the discovery of the Indies; and it is probable gold and silver have multiplied much more: But interest has not fallen much above half. The rate of interest is not derived from the quantity of the precious metals. High interest arises from three circumstances: A great demand for borrowing; little riches to supply that demand; and great profits arising from commerce. An encrease of commerce, by a necessary consequence, raises a great number of lenders, and by that means produces lowness of interest. The chapter considers how far this increase of commerce diminishes the profits arising from that profession, and gives rise to the third circumstance requisite to produce lowness of interest. Those who have asserted, that the plenty of money was the cause of low interest, commonly acquires great abundance of the precious metals.
