Page:The Economic Journal Volume 1.djvu/300

 278 THE ECONOMIC JOURNAL Mary, borrowed 3,457 about the same time, on similar con- ditions. On his side Cantilion was firmly convinced that the stock would fall. His plan was to charge a high rate for the loan on the plea that French specie would fall, and the exchange with London rise, then to obtain actions enough as security to cover he whole loan, and to sell the actions before they fell. By this means he gained the interest without parting with the principal, and profited by any downward turn of the stock; while his risk in case of a rise was limited to his stake in the business. The bills at length became due, in addition to 20,000 which had been advanced upon the note of hand of Lady Carington, Lord Montgomery's aunt. Cantilion sued Lord Montgomery upon the notes in the King's Bench, and got judgment on May 19, 1731, for over 40,000. Lady Carington endeavoured to get her liability set aside by an action against Cantilion in the Court of Exchequer. And Lord Montgomery filed several Chancery bills, accusing Cantilion of usury and fraud, and claiming an account of the proceeds of his stock. The proceedings were kept open by successive bills until Cantillon's death. Meanwhile, Hughes had died suddenly in Paris, June 9, 1723, whereupon Cantilion ordered his cashier, George Yetdon, to pay the debts of the firm, and remit the books, balance of effects, &c., to Cantilion. Soon after this the widow, Esther Hughes, came upon Cantilion for an account, and to some extent made common cause with the Herbert family. The allegations of the Herberts are best explained by their production and interpretation of the following extracts of letters from Richard Cantilion to the firm: ' London, 29 April, 1720... the dividend of Actions will hardly exceed 3 per centum per annran. They will hardly sell freely higher than 1,200. Be that as it will, where you have no want of money it will be best keeping Actions, because you are to repay Actions. But, upon the whole, if you should want a parcel of them, I don't much fear you should come to any great loss upon them above twenty-eight pence. As to Carrolls  and the others, they seem merely to run upon the Goddesses scent [meaning Lady Mary Herbert], and perhaps have their informations from some persons near her; but I cannot help thinking they play a desperate Game, even on the supposition of keeping Actions. I am every day more sanguine that Scaramouch will brighten, and that you have the finest Game in the World to play 1 See p. 284, post. - An unprincipled but ingenious trickster, the story of whose expedients to gain a living was very popular at this tine. See La vie de Scara,muche, lr Angelo Constantini, Paris, 1695.