a concomitant effect. Besides that the speculation is curious, it may frequently be of use in the conduct of public affairs. At least, it must be owned that nothing can be of more use than to improve, by practice, the method of reasoning on these subjects, which of all others are the most important; though they are commonly treated in the loosest and most careless manner.
Another reason of this popular mistake with regard to the cause of low interest seems to be the instance of some nations, where, after a sudden acquisition of money or the precious metals by means of foreign conquest, the interest has fallen not only among them but in all the neighbouring states as soon as that money was dispersed and had insinuated itself into every corner. Thus, interest {p49} in Spain fell nearly a half immediately after the discovery of the West Indies, as we are informed by Garcilasso de la Vega; and it has been ever since sinking in every kingdom of Europe. Interest in Rome, after the conquest of Egypt, fell from 6 to 4 per cent., as we learn from Dion.
The causes of the sinking of interest upon such an event seem different in the conquering country and in the neighbouring states, but in neither of them can we justly ascribe