Alexander Gromnitsky's Blog

The ruinous rate

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"The pecuniary resources of the [West India] Company were exhausted by the various expeditions to Seregipe, Maranham, Angola, and Chili. Money became scarce at Recife. Hitherto all transactions had been carried on on credit; but now credit was stopped, and money had to be borrowed at the ruinous rate of 3 or 4 per cent. interest per month. Many of the planters were ruined by the floods and the subsequent ravages of the worm; whilst the small-pox committed great havoc amongst the valuable negroes imported from Angola.

So great was the pecuniary distress that the most desperate measures were resorted to, and which only made matters worse. Some creditors endeavoured to procure payment of their debts by means of large abatements; others threw their debtors into prison; whilst the government felt itself compelled to exact its dues by seizing the sugar produce at harvest time. Thus a conflict arose between the government and the public as to the priority of their respective claims, and the result was embarrassing and ruinous."

THE RUINOUS RATE OF 3%!

Those were the days.

http://www.gutenberg.org/files/52252/52252-h/52252-h.htm


Tags: quote, netherlands
Authors: ag