J I — ' -\' t ^ r P^-^A^ Kh' me Robert E. Gross Collection A Memorial to the Founder of the Business Administration Library ll/uveriifit o^ XjoMomtia Los Angeles A N ON THE ACTUAL RESOURCES, FOR JREESTABLISHING THE FINANCES F GREAT BRITAIN, B r GEOP. GE CRAUFURD, Es^ Truths ivculd you Teach, or fa-ve a finhivg hvici ? All fear, ?iotie aid you, and fe-~M under ji and. Pope's EfTay on Man, LONDON; PRINTED FOR J. DEBRETT, OPPOSITE BURLINGTON -HOUSE, PICCADILLY. M Dec LX'XXV. [ Entered at Statloners-Hall. ] ^^ CONTENTS, IntroduHion, - - page i SECTION I. On the riches of a Jlale^ and on national^ and private Indujiry, - . « ^ SECTION II. On puhlic credit in general, and that of Great Britain in particular. - - 16 SECTION III. On real property J or capital and income, ^ SECTION IV. On the circulation of money. - - 27 SECTION V. On annual contributions or taxes. - o^S SECTION Vf. On public loans, - - 45 SECTION [ iv ] SECTION vn. On the effc^ls, which ari/e in the circulation of nmityfroin taxes^ and from hans. - - 5S SECTION VIII. Oil the means of rendering perpetual the ejfcacy cf public loans without additional taxes. - 70 SECTION IX. A refutation of the ohjcclions made to the fyjlem tuhich is treated of in this work. - - 8^ SECTION X. Recapiiuhlion. - - - 101 JNTRODUCTION. 1 H E fubjedl of the following (lieets has already exercifed the minds of many en- lightened individuals. I fhall, however, wander from the beaten track, and announce a fyftem, diametrically oppofed to the received opinions, I may even fay prejudices of mankind. I am fenfible to what cenfures I expofe myfelf by this feeming temerity, but, knowing the iituation of my country's finances, I (hould be wanting in duty to A her. [ o her, and to my own feelings, were I to fupprefs ideas, whicli may eventually prove ufeful. If my ardour for the public fervice could have been cooled by the reception, whiclf the firfh Iketch of this work met with from feveral of thofe perfons, to whom it was communicated, I fliould inftantly have laid down my pen, and have renounced every idea of the tafk, which J, now Impofe •upon myfelf. Feeling, however, invariably, and in the ftrongeft manner, the truth of thofe prin- ciples in finance, which I then announced, I attribute my want of fuccefs to the man- ner of ftating them, and think it incum- bent on me to exert my powers of render- ing them more clear, and conclufive. If I am fortunate enough to be approved of by the enlightened part of mankind, and if I fucceed in being ultimately of fer- vice to that community, of which I am a member, [ 3 ] a member, I fliall feel myfelf amply re- warded for my labour, and fully indemnified for the temporary vexations, which 1 mufl tiaturally encounter. To Great-Britain alone I dedicate the refult of my enquiries. The fyllem which I am about to unfold, cannot be effedual, but under fuch a go* vernment^-as (he poiTeires, In defpotic States the private interefl of the Sovereign, or of his IMinifler, is too frequently different from that of tlie Pub- lic ; hut in a fi'ee country, particularly in one, for which I write, individuals of every clafs promote their own profperity, and contribute to that of the nation by the credit, which they grant, and by the taxes, which they fubmit to. Hitherto it has been thought, that the moft efFedtual means of encreafing the credit of Great-Britain, of ultimately promoting A 2 her [ 4 ] her induflry, and extending her commerce, confifted in eftablifhing a finking fund by a furplus of taxes, and paying off gradually an incurred debt. I maintain on the contrary, that this opinion is founded on error, and cannot be too foon renounced. The critical fituation, in which Greats Britain at prefent flands, will indeed com-' pel her to abandon all thoughts of a iinkins: fund : recourfe even to annual loans for the peace eftablifliment is become ne- ceflary, and will, in my opinion, continue to be at all times expedient, notwithftand- ing that an increafe of induftry, of internal confumption, and external commerce, (to be procured by making ufe of loans with- out new taxes, and by relieving the circu- lation of money,) may raife the produce of the exifting contributions to a level with the annual exigencies of the flatc. This [ 5 ] This Idea may at firll: fight be thought paradoxical, but the probablHty of its being well-founded Is apparent from a contrary fydem having proved inefficient ; and it follows, that the adoption of another is now become indifpenfable. Some confolatlon will, however, be derived from knowing, that it is not the reimburfement of a capital borrowed, which obtains the confidence of monled men, and fecures public credit In a Nation like Great Britain, but the increafe of faculty to pay the intercil:, and the re- gularity obferved in the terms of its pay- inent. When a free people have a moral cer- tainty, that the intereft of the fums, fub- fcrlbed.to the public fervlce, will never be dimlnifhed, unlefs accompanied with an offer of reimburfement, and that this inte-« reft will always be forthcoming at the ftated periods, an unbounded confidence in the Pubhc muft naturally enfue, be- caufc [ 6 ] caufe the ftabillty of the annual revenue will always fupport the intrinfic value of the capital. I confider the national debt as an ex- crefcence on the body politic, and fo in- herent to the conflitution from its nature, that its growth even has prevented worfe diforders from taking place ; an operation therefore to reduce it is impolitic, and dangerous, while cutting it oft would at- tack the principles of life. The Remedy, which I fhali propofe for putting a flop to the dangers, that threaten, Great Britain, will no doubt have the effect of augmenting the fize of this excre- fcence, but the body, to which it adheres^ will receive a much greater increafe of flrength for fupporting it, and finally be required to give a lefs quantity of nou- riihment for its exiflence, which can only terminate with their mutual diilblution. I repeat. f 7 ] I repeat, therefore, that it is not the reimburfement of a capital, but the foli- dlty, and regularity in the payment of the intereft, which produces public credit in Great Britain, and that the ufe of this credit may, and ought to be fubftituted in- ftead of taxes, in order to pay the peace eftablifhment. I affert moreover, that this fubilitution will increafe population, confumption, in- duflry, and trade ; and of courfe aug- ment the annual produce of the remaining taxes to a much greater degree, than is necei?[ary on account of thefe additional loans. But thefe general ideas require to be fully inveftigated, and proved, which Is the object of the following fc^lions. Paris, Mar do lo, 1785, AN A N ESSAY, c. SECTION I. t)n the Riches of a State, and on National^ and Private Indujlry^ 1. H E true riches of a State confifl: in its greatefl degree of indepcndance for every neceffary obje6l, and in the dependance of other nations on it, for procuring what tiieir exigencies may require. The fortunate aflen^lage, and proper combi- nation of three forts of riches, can alone produce the true riches of a State. Thefe three forts confifl; in the productions of its foil, which are natural riches ; in national in- duftry, which produces artificial riches; and in the quantity of exifiing money, which confolidates the whole, and may be called riches of convention. B The [ JO ] The extent of true riches creates the political faculties or (Irength of a nation. This confifts principally in the number of its inhabitants, who are fupported, and encieafed by Agriculture and Commerce. Agriculture takes precedency, becanre it affords the means of fubfiftence to more people, than thofe who cultivate, and of courfe encreafes po- pulation, the foundation of political flrength. It requires, however, to be affifled by Com- merce, or that interchange of various articles which arifes from mutual wants, and which is promoted by Induflry. . This principal agent, and fpur to commerce is the afiemblage of exertions, by which an indivi- dual fecures to himfelf whatever his wants my re- quire, and multiplies his own enjoyments, by lay- ing other perfoHs under contribution for thofe, which he procures to them. That pcrfon, who combines with mofl judg- ment his exertions, who is the mod: fortunate in furnifliing the objecls of enjoyment, required by fociety, and who feizes with mofl, addrefs every circumllancc, [ II 1 ciicumnanre, which time, place, and opinion may cffcr, po{Tc(1t\s of courfe the mod piodu6live fpe- cies of Iriduffry. It owes its origin to Genius, flimulated by ne- ccflity, and i« to trade what agility is to flrength. The co]lc61ion of the induftrious exertions of Individuals forms national induftry. The groundwork of both confifls in the re- foiirces, which arifa from the produflions of the foil by means of their general ufe in fupplying the wants of all countries; in the local advantages, which admit of thofe produdions being tranfport- ed with eafe from one place to another; in the more or lefs aptitude of the inhabitants to profit by thefe circumftances, and finally in the degree of forefight, which the government of a country dif- plays, and in the protedion, which it grants to individuals. This forefight and protedion conrft in the knowledge of thofe objects, which merit the moffc encouragement, in the generous manner of be- llowing fuch flimulus to produce them, and in the inviolable fecurity of all property. B 2 Every [ 12 ] Every nation fliould encourage induilry to exert itfelf principally on the produ6lions of its own foil, and in giving the niofl ufeful, and the mofl variegated forms, becaufe that nation, which has the art of giving the greateft variety to its ovvi> produdions, is no doubt the mofl profitably in- duflrious, and the moil independent. In no country is property move facredly fecured, or every fpecies of induftry more encouraged than in Great-Britain : nor are greater abilities to be found for the purpofe of difculling the interefl; of the Nation, and for fuperintending public, and private induilry, than in both Houfes of Parlia- ment, compofed of Men of every profeflion. No Hiftory, like that of Great-Britain, affords examples of fuch generous encouragements, and of fuch ample rewards given to genius and abilities. The exertions of individuals mufl: naturally be in proportion, and Great-Britain is aniply repaid by the excellence of her Government, and by the patriotic zeal, which animates the whole Empire, for what Nature has refufed her in point of fitua- tion, or produdlions, and bellowed on other countries. The r -3 ] The encouragement given to Tnduftry fhould particulaily have in view the means of improving the quality of every neceflary article of confump- tion, iis alfo of facilitating their produ6lion, and the mode of manufaduring them, for the purpofe of dccreafing their price. The diminution of price will of courfe psrmit the purchafe of them by a greater number of In- dividuals, and increafe the national flrength ; be- caufe the advantages derived to a State confift in the greater confumption, which augments its ac- tual re.fources in finance, and, by encouraging greater pvoduftion, incieafcs the ftimulus to fur- ther population. Thofe people, who are of opinion, that, by laying luxury only under contribution, an equi- valent rcfource to that levied on articles of nc- ccffity is to be procured, are much deceived. Fiditious wants have certain bounds, which difcretion regulates, and which the generality of mankind do not pafs. They even renounce every idea of them, when incompatible with their faculty of indulging in them. Additional [ 14 ] Additional contributions mufl infallibly increafe their price, and, caufing lefs confumption, de- creafe the annual amount of thofe, which already exifted. No refource is then left for the deficiency, but that of reverting to the objeds of neceffity. This only alternative is the more alarming, if thofe obje61s of neceffity are overburthened with contributions, and may be compared to the opera- tion of bleeding a human body, already enervated. I conclude therefore, that private Induftry fhould be encouraged, aod directed towards im- proving, as well as reducing in price every article of neceffity, and giving more comforts to a greater number of Individuals. The increafe of population by thefe means is the furefl Cgn of perfeftion in the meafures of every goveinment, and a certain pledge of the accumulat- ing riches and profperity of a ftate. The import and export trades of a country are fo much conneded with internal Induftry, that the inveftigation of them in this place would not be improper, but as it would lead me into a difcuffion entirely [ '5 ] entirely foreign to the fubje^L of this work, and occafion my readers to lofe fight of the obJeiH: I have in view, I fhall confine myfclf to faying, that hberty of trade is the foul of Induftry ; thdt pro- hibitions and cxclufive Diivileges are the deRruc- tion of it; and that every wife, and enh'ghtened government has it in its power to flop the bad efPedls of this Hberty, by varying from time to time the duties on importation, and on exporta- tion, for the purpofe of encouraging national Jndullry, and for preventing a dearth as circum- ftances may aiife. SECTION [ ^6 ] SECTION II. On puUic credit in general^ end that of Great- Britain in particular. XUBLIC credit may be confiderecl as an eflential part of the political ilrength of a nation, and is a ftandard of the confidence, which indivi- duals have in the riches, and refources of a State. This confequence is more or lefs extenfive ac- cording to the abilities, and integrity of thofe, who dire£l the application of thefe refources, and wh@ watch over the interefts of the public creditors. That Government, therefore, which unites pru* dence and forefight in its deliberations, where crood faith is held mo ft facred, and where the pubhc is of courfe mod fecured in their property, muil naturally obtain the greateil degree of credit. The Britifli Conftitution infures in a very emi- nent degree thefe advantages, becaufe the reins of Government are not held by one Perfon, or by [ '7 ] hy the fervants of his choice, but the whole Nation participates in the adminiftration of public affairs through their reprefentatives in j-'arHament, over whom it watches, and to whom each indivi- dual may afpire to fucceed. By this fyftcm private intcreft, intrigue, party rage, and oppreffion, have Icfs power, and pro- duce lefs bad confequences, while patriotifm, which Simulates to public Tervice, has a nioft powerful afcendency. Whenever the events of war, or national efla- blifhments, which create great expences, and pro- duce flow advantages, increafe the exigencies of a ftate beyond its ufual revenue, the refources made ufe of for procuring the neccffary funds, are public loans. Thefe loans are preceded, accompanied, or fol- lowed, by taxes, or annual contributions, whofe produce is calculated to give the lenders fecurity for their intereft, and, in fome cafes, for the gra- dual repayment of their capital. While thefe taxes, in addition to thofe levied for the ufual exigencies of the flate, are in propor- tion to the number, and activity of the inhabitants, C as [ i8 ] as alfo to the exlQing mafs of money, and to the extent of its power in reprefenting Induilry, and commerce, the foundation, on which the (ccurity of the lenders is built, b'.comes folid ; public con- fidence mull fiouriih, and credit is certain, b.e- caufe the jundlion af the above-mentioned circum- fiances can alone facilitate every exchange, and fix at a proper value every fpecies of property. The principle of contribution arifes from a power in each individual of gaining more by his induQry, than is ncceffary for his exigencies. The prote6lion, which he receives from Govern, ment, engages him to fubfcribe a part of fuch fur- plus to the fervice of the public, through who,fe means that is obtained. But the manner, in which fuch part is at pre- fent levied, not only checks the accumulation of every individual's riches, but hurts alfo that of the whole cornrnunily by the introduftion of a forced circulation of money. A too ^reat extenfion of this forced circula- tion mu(t inevitably flrike at the root of popula- tion and induRry, while public credit will be foaken to iis foundacion. ■ The. [ '9 ] The adoption of principles which produce a contrary efFetl will always create, and fecure, public confideace, the parent of credit. The many wars fupported by Great Britain Cncfi the revolution, have forced her to a repeated ufe of the expedient, which public loans offer in every cafe of emergency, Thefe accumulated loans form the prefent na- tional debt. Though the prodigious amount of this debt proves the excellence of her conflitution, and the extent of her refources, there can be no doubt, that the annual contributions for paying the ih- tereft, and for providing fuch a peace eftablifli- ment, as is necedary for her defence, glory, and profperity, are increafed beyorvi her power of fupporting them, and that (he may foon lofe her credit from an unpcrceived error in its foundation, and a violation,., of the principles, on which it exills. I cannot here avoid announcing a truth, which i have difcovered in the courfe of my inveftiga- tions, and which experience will pqrhaps too foon confirm. C 2 The [ 20 ] The credit of Great Britain mufl; infallibly On the firfl: outfet of a war receive a moft violent fhock if her prefent fyilem of finance is per- fevered in. The a6lual amount of intercfl to be p:ld on the exifling debt is fo great, as to render it ne- cefTary to adopt a new one, for the peace efta- bhlhment. This arrangement, will offer every pofiible advantage, and has perhaps already prefented itfelf in part to the minds of thofe perfons, who have been entrufled with the executive part of the government, but the neceflaiy confequence of renouncing every idea of a finking fund has alarmed them, and prejudices, rendered facred by their antiquity, have intimidated the moft enlightened minds. Shall a nation, however, be flopped in its pro- grefs to further profperity by combating with, or defending a phantom ? Paying off the national debt is one of thofe projeCls, which every perfon thinks either im- prafticable, or improbable, but they ftill wifh to flatter themfelves, and vainly imagine, that the charm. I 21 ] charm, by which this debt Is fupported, conGRs in the belief of a power to extlnguilli it. Where Is the man, who, having meditated on the amount of the national debt, the population of the country, and the quantity of exiRing money, beheves, that this debt can be much di- minifhed during the courfe of a long peace ? I may even add, where is the monied man, who, having an interefl: in the public funds, will demand, or wifh for a reimburfement, when the liability of the annual revenue gives him the power of receiving his capital by a fale at the highell pofTible rate ? The certainty of the annual income will always fupport the intrinfic value of the capital. The intrinfic value being preferved, the pro- prietor will always have the faculty of felling the revenue, and receiving the capital. What therefore can intimidate a monied man from confiding his property to the ftate ? His private interefl: will be gratified, while he has at the fame time the fatisfadion of contri- buting to the public fervice. It [ " ] It would be an infult to the underftandlng of my readers were I to expatiate further on this idea, which prefents fuch advantageous confe- quences. 1 infill therefore, and repeat, that, in the pre- fent fituation of Great Britain, her credit muft be fupported and regenerated by flrengthening the faculty of paying the intereft on the incurred debts, and on thofe intended to be made, the ne- ceffary confidence in which cannot be wanting, as the fecurity of the lenders will be made co«i» fpicuous. , SECTION t ^3 3 SECTION III. Cw real property, or capital and income, -tl CAPITAL is the aggregation of feveral pro- perties. An income is the produdion of this aggrega- tion in a limited time. The earth, the fea, and their produce, form the fubftance of all real property. The induftry of mankind is the fpring, which gives the neceffary motion to, and regulates thcfe produ6lions. Money is the reprefentative fign, which confo- lidates every property by eftimating its value. The intrinfic value of thefe three parts requires their union, and they are even dependent on one another for producing an annual income. The [ 24 j The facility of eftimating real property hy the medium of money has occafioned the denomina- tion of capital being chiefly given to a certain number of fhefe reprefentative figns, as anfwering to a certain quantity of other property, and for the fame reafon an income is eflimated by the greater or lefTer quantity of money received in re- turn for, or as reprefcnling any produdions in the fpace of a year. The revolution of the four feafons, bringing to perfeQion whatever the earth produces, has no doubt given rife to the limits of a year for fixing the income of every capital. This annual income forms the value of each fort of real property. Mankind have indeed eftablifihed a tarif, or table of what each kind ought to produce in proportion to the time employed, the care it demands, the rifk it runs, and the enjoyment it procures, as alfo in proportion to the exifting quantity of money in a ftate ; but this tarif tho' founded on rational principles is fubje6l to great variations. Every property, when regulated by induflry, produces an annual augmentation or income ; but this [ ^5 ] ihls incoine being dedfned in part for the exiaencies of Individuals, the fuperfluity only is converted into capital, which afterwards produces another infomp. All property may therefore be confidered as a perpetually growing chain of capital and income, forged, an4 linked ttJgether with the fubflantial quality of money, and by the induftrious exeitions of individuals. National induftry has been reprefented as a part of the riches of a ftate, and confidered in the ab- flra6l it forms the artificial riches of an individual, being to him a capital, which produces an income in proportion to liis exertions. The income of induftry is always dependent on the interefl of money, as is alfo that of natural richer, pr piodu^lions of the foil. Thefe ar;e how£V£r entitled to Icfs income than the artificial riches of an individual, which require more care, are lefs ^o^icj, and terminate with the life of the poCTefTor. Mankind therefore by their induftry augm^if, and modify, every produdion turning tliem fuc- iceQlveJy ^nto ijicome, and capital. D This [ 26 ] This occafions a perpetual expanfion, and con- tra£lion, in the property of individuals, which is performed by the reprefentative fign. The agency of this fign conftitutes its circula- tion, whofe operations, efiFefts, and refources re- quire to be explained. This is the fubje£l of the following fe6lion; SECTION t 27 ] SECTION IV. On the circulation of money, J- H E embarranments, and the lofs of time, to which trade by barter was expofed, induced all nations to adopt a medium of exchange, for fa- cilitating every transfer of property, by ftating its value, and paying its amount. This medium of exchange was accordingly placed in the precious metals, to which forms were given, for the purpofe of facihtating their circulation. Each fovereign, and each ftate, put their par- ticular ftamp on thefe forms, and thereby certified their value. The precious metals fo formed, and fo flamped, are called coins, D t The [ 28 3 The interefl of every nation dctnands, that the! value of thefe coins fhould approach to that, univerfally allowed to the metals in their natural flate, in order to prevent a loii inthair tranfaftions with other countries. It njuft alfo be obferved, that tliefe coins have: no other value than by their currency in going from hand to hand, becaule having been eftabliflied as a medium of exchange, the not applying them to that life annihilates their faculty, and reduces them to a ftate of nature. Money, however, confidered as a compofition of the precious metals, is an object of commerce, which has its price. This price is regulated by the quantity confumed through luxury, and by what is put into a flate of circulation. The price of each kind, as reprefenting one ano- ther, depends on their comparative quantities over and above the price as merchandize. If there exifls more gold than iilver, the latter rifes in proportion ; if on the contrary the formef is in lefs abundance, it becomes dearer. Money^ [ ^9 ] Money, considered as a reprefentative lign, U a mercenary agent, to whom a recompenfe mufl be given. This recompenfe is called interell or annual in- come. The ahundance and competition between thefe mercenary agents occafion their procuring lefs in« come, and of courfe interefl of money rifes in pro- portion to their fcarcity. There exifls in every country a certain quantity of thefe coins irregularly, and difproportionably, difperfed amongft the inhabitants. Labor and induftry rectify this unequal diflri- btttion, and procure to all the objeifls of ne- cefhty. Thefe wants being fatisfied, thofe individuals who have a fuperfluity exchange it foi- enjoy- ments, while thofe who have none endeavour to draw it to thcmfelves by producing, and pro- curing, through their induflry, the comforts de- manded. TIic The neceffary wants, therefore, and the mutual depcndar.ce of individuals for fatisfying thein, create a continual interchange of property. Thefe exchanges occafion the perpetual transfer of the reprefentative figns from one hand to ano- ther, which is called circulation. Nature, the parent of all earthly things, in cHablifhing this mutual dependance, founded the circulation of money. Every wife government, therefore, ought to follow, and fecond thefe parental proceedings, by facilitating, as much as pofTible, its natural pro- pen fity. The circulating coin, which is difperfed amongft the individuals of a flate, ferves for the purpofe of buying, and felling real property, and for pro- ducingj and procuring, every obje^l of confump- tion. Commerce and induftry are kept in motion, by thefe two operations, and are the refervoir, arid condudors of the circulating mafs of reprefenta- tive figns; Their [ 3' ] Their free, and regular palTage through diflFerent channels, as well as the prcfervatioa of their re* produ(flivc quality, caufe an increafe of ftrength in, every part of the body politic. This vivifying circulation of money may be juftly compared to that of the blood in the hu- nian frame. The purchafe and fale, or expanHon and con- traftion of real property, refemble the operations of the heart, from which the blood takes its depar- ture, and to which, after pervading every part of the animal ceconomy it inceffantly returns. To complete this fimlle, which mufl offer a very ftriking refemblance to every refletling mind, I have to obferve, that intereft of money is the pulfe, whofe beating announces either health or diforder. Whenever the regularity in the circulation of money is deflroyed by the interference of govern-, ment, a more powerful agent reflores it, but the political frame leceives at the fame time a fhock, and a diminution of ftrengch mud infallibly cnfue. Thus, [ 3^ J Thus, thereforp, when by an ill comtjined oper- ation in finance the circulating medium is carried in too great quantities to one part of the body, the other part mufl; naturally fufFer from its abfence, and the whole becoipes difordered. The confequence of this is vifible in the in- creafed interefl of money, which demands every attention from government. The interefl: of money, however, becoming higher, nature points out the remedy to be in }efs produdion and lefs confumption, and unlefs the derangement is carried beyond the powers of re- covery, Ihe will always prevail. If it be fuppofed that the quicker circulation in one part, produces an equivalent for the languor in another part, I have to obferve that this would be taking, for a Cgn of health, the temporary, and convulfive exertions, which a fever produces, and which are the forerunners of enfuing weak- nefs. Whenever the interefl of money increafes, a chain of inconveniences is produced, which I fliall hereafter fully explain, and which ends in the di- niiniflicd [ 3i ] minifhed confumption of every article of necelfity, attacking thus the fource of future population and profperity. It becomes therefore an eflfential principle in finance to avoid every thing which can contribute to the rifing of intereft, and to fupport as much as poffible the natural circulation of money as well as its generative quaHty. It follows alfo from thefe principles, that the circulating coin of a country ftiould be kept in conftant motion through the channels, which com- merce and induftry f urnifh ; that fuffering any part of it to be hoarded up in the national treafury is the fign of an ill-informed government, and that fuch part well deferves the name of Dead-Jiock^ which is generally bellowed upon it. It muft further be acknowledged a falfe prin- ciple to accelerate its circulation in one part, and to check it in another, and finally, that the care of every government Ihould be direfted towards mak- ing it flow regularly through every part of the body, for the purpofe of giving a due proportioa of its falutary influence. E [ 34 ] I have already mentioned, that the natural cir- culation of money augments the profperity iti a ftate by increafing induflry as well as confumption, and population ; but as it might be feared that bad effe6ls would even refult from this circum- (lance, without a proportionable increafc in the reprefcntative figns, it becomes necelFary to ob- ferve, that the balance of foreign Commerce pro- duces not only the principal fpur to increafing induftry, but gives alfo the faculty of fupport- ing it. Enlightened governments add to thofe means by working their mines, or by the intioduclion of paper money. This lafl refource is no doubt very ingenious, but the permanency of its ufe depends on the (oii- dity of its principles, and in proportion as it is ex- tended, its fecurity is weakened, and it is eafily deftroyed, in the fame manner as the phyfical mat- ter, of which that money is compofed. France in the time of Law, and America during the late revolution, experienced the bad cfFefts of its immoderate ufe. Without [ 3S ] Without fixing the limits, to which each ftate m:iy with fafety go in the ifluing out of paper money, I fliall only obfcrve, that thofe of Great Britain are from the nature of her government the mod extended. Having now explained the origin, the effe61s, and the advantages, of the regular circulation of money, I mufl proceed to inveltigate the nature of taxes with their eGFctls on this adion in the re- prcfcnfative fign. E 2 SECTION [ 36 ] SECTION V. On annual Contrihutions , or Taxes. XjL N M U a L contributions are to be confidered coMe6lively, and particularly. In the firfl: point of view, they may be defined as the means through which government makes each individual contribute to the expences of a flate, by railing money on ^very article produced and confumed. In the particular fenfe of the word contributions are fpecific fums, raifed on particular objefts. The word tax has been adopted in Great- Britain as a fignification of this a6l in the fove- reign power. This manner of making each individual contri- bute to the exigencies of a ftate may be traced to the primitive eftabliHiment of fociety anoongft men. It [ 37 3 It is a natural right of governors, in confe- quence of the expences incurred by prote6ling the governed, and njuft originally have been colleQed in kind. Its principle was then fimple and jufl;, while it was at the fame time founded in wifdom, and falutary in ils effe6ls. This claufe in the focial contra6l made amongft mankind would flill have merited the appellation of a durable fupport to all nations, had not an abufe which vitiates the moft prudent eftablifti- ments crept into the whole fyflcm, and converted this falutary and beneficent lefource into a mofl violent and corrofive poifon both for a (late, and for individuals. I fhall hereafter fiiew by what chain of events this change in its quality took place, and in what manner it was deprived of the advantage, which became natural to it, of forming a bafis of fup- port, by being made ufe of as the fupport iifelf. This unfortunate error has been propagated to this n)onjent, by mankind's having attended to forae defultory good efFe6ls, without enquiring into their origin, and ho^v much they were cur- tailed [ 38 ] taikd in their extent by the adoption of thi« im- perfect fyftem. Any government therefore, which applies taxes as a remedy to annihilate thofe, which exift, is nourifhing a fatal error, and it is evidently be- come expedient for the recovery of every depreflTed ftate not only to defill from laying on any more, but alfo if poflTible, to fupprefs a part of thofe which are adlually levied, in the fame manner as humanity requires, that a man, bending under too great a weight, be relieved from a part of his burthen, in order to produce in him the faculty of fupporting the remainder with eafe. The truth, which I here difclofe is applicable to many ftates in PZurope, but having principally confidered it with refpeft to Great-Britain, thefe pages are intended for her conviction. If in difcovering fuch a truth, I had not at the fame time enjoyed the fatisfaftion of perceiving the means to remedy the inconveniences, and to avoid the dangers, which I am going to unveil, my thoughts on the fubjedl fliould have remained con- cealed from the public eye ; but the fignal, which I propofe to hold out, as a warning of being on the brink [ 39 ] brink of a precipice, will alio point out the path for avoiding it. The pTOgreffive aggrandifement of the flate, and the increafed pi ice of every fervice, (from the adoption of an erroneous principle in finance,) having multiplied the annual wants of the public, fuch contributions, as the objedls of neceflTity pre- fented, became doubly infufficient. The governors of the Exchequer exercifed there- fore their power, and their genius, on ever}' article of confumption, whether of neceflity, of com- merce, or of luxury. A fallacious mode therefore of raifing what was wanted for the public fervice, as well as the man- ner in which it has often been fquandered, render- ed it conftantly neceiLiry to apply for new ex- pedients : and in this manner has been perpetuated through every fucceffivc adminiftration, the erro- neous, the de(lru8ive principle, that every new want demanded a new contribution. Yet in fpite of the great variety, and the trou- blcfome form of many taxes, which arc deemed neceffary, thofe perfons, who from time to time are entrulled with the adminiftration of public affairs J [ 40 ] affairs, do not appear fufficiently alarmed, either by the knowledge of their efFefts, or by the doubt of a poffibility to create any more. If the a£lual ftate of taxation in Great-Biitain be, however, ferioufly, and candidly confidered, it will be admitted, that every hope of receiving further fupport in that way i$ vanifhed, and that the puvfuit is dangerous. Every thing taxable is at prefent taxed, beyond its proper bounds. The neceffary objects of confumption cannot be further touched without attacking population ; thofe of commerce without difcouraging induftry ; and thofe of luxury, which are to be preferred as belonging to the rich, are burthened as much as dicy will admit of. Luxury requires to be treated with delicacy, and, when purfued by the Exchequer, like Pro- teus in the fable, endeavours by taking various forms to effectuate an efcape. I {late therefore, and have proved, that it would be difficult to invent new taxes ; I add alfo, that ic uould be dangerous to .adopt them on account of the [ 41 ] the cffeQs, which naturally rcfult in the prefent ft ate of Great Britain. In order to feci with more force the truth of this afTcrtion, my readers mud take into confider- ation the ftate of the nation, as reported to the Houfe of Commons. They mufl alfo be fully convinced of the prin- ciple, that every new tax infallibly viciates the cir- culation of money, and (if not relieved by a pro- portionable augmentation of ligns from induftry, ©r from the purchafe of public funds by foreigners,) turns it out of its ufual courfe, raifes the intereft, and occafions a diminilhed produ6lion and con- fumption. In fa6l, the moment a new tax is eftabhfhed, the contributing article is raifed in price above the fum levied. The money circulating for that purpofe cannot of courfe procure, or reprefent, the fame quantity, and whatever is wanted mufl be taken from thofe figns, which tranfafl the buGnefs of purchafe and fale of fuch property as gives an annual income. F Th^ [ 42 1 The diminution of their number naturally aug- ments their pay, and this increafe in the intereft of money raifes in its turn the price of every kind of indulhy, which rnuft. again be provided for, by additional reprefentative figns. In this manner do thefe two never failing prin- ciples, excite one another by emulation, and ferve as a mutual vehicle for railing their value. Which woitld be carried to an indefinable length, if the equilibrium was not reftored by the violence of the diforder. The remedy, which reflores this equilibrium, is a diminifhed produftion and confumption, to which mankind are compelled by the high intercft of money, and which returns a certain quantity of fjgns to their original duty. This confequence reduces the produce of the new tax to little more than what would have been found by the natural increafe, as well as by what is loft in the old. The new tax therefore does not procure the rc- fource wanted, and exterminates alfo what a con- trary fyllem would have produced,, giving at the fame time a violent fhock t© thfe fiate. This [ 43 3 This fhock and its eEFe6ls mufl; naturally derange the powers of the political body, as well as its organifation, and by frequent repetition, compleat at Lift its dellruftion. To this erroneous mode of calculating the na- tural powers of exertion in a ftate, by not con- fidering the influence of taxes on the circulation of money, may be added the charge of colle6lion, by which the Exchequer is no ways benefited, as alfo the frauds committed, which neither relieves the ftate, nor the confumers of the article taxed, and is only profitable to fome daring adventurers. I muft alfo obfcrve, that frauds increafe with taxes, and are encouraged in proportion as taxes are high. The confequences of all thefe principles are, that exterior commerce muft fuffer and decay, while internal induftry over-burthened, and weighed down in its faculties, muft languifli, and be checked in its fprings, and in its combinations. The great machine, which inceftandy turns in- come into capital, and capital into income, will rnove more heavily, the indigent clafs of people F 2 will [ 44 1 will augment, and a more general emigration muft enfue. Thefe dreadful fymptoms have always been tb® forerunners, and have ever indicated the approach^* ing diGTolution of a ftate. It appears therefore incontrovertibly, that the levying of new taxes is an unneceffary, as well as a dangerous expedient, and that if any deficiency in the wanted revenue exifts another refource muft be adopted. Public loans prefent themfelves naturally in place of taxes, but their quality muit be enquire4 into, before their fuperiority is acknowledged. SECTION [ 45 ] SECTION VI. On public loans, J\ Public loan is the anticipation of the future revenues of a flate, which is rendered neceflary by its immediate exigencies. The fubfcribers to thefe loans confent to wait their reimburfement in confideration of an annual allowance, and ofien alienate the fum wanted on the affurance of a limited or perpetual annuity, founded on good g-ounds of fecurity, and rcguU- rity in the terms of its payment. Confidence is the eflential bafis of all loans, but particularly fo in the laft mentioned cafe, which \s adapted to the prefent form of borrowing in Great Britain. Thefe dates, whofe ufual income could not Tap- ply their wants, and who found themfelves in fuch critical iituations, as to require inllantaneous, and abundant r 46 ] abundant refources, adopted fiifl this mode of an- ticipating their future revenues. I fhall not go back to the period, in which this fyflem commenced, but confine myfelf to faying that it was neceffarily introduced amongd many nations about the fame time, becaufe general poHcy requires, that each ftate ftiould fecure thofe ad- vantages, which are enjoyed by others, as far as the nature of its government will admit of, and its political fituation may require, for the purpofe of fupporting a kind of balance, and in order to make the fame exterior appearance. The firft public loans, which took place, were founded on additional revenues, raifed by taxes within the year, and were intended to be liquidated within the fame period. This mode appeared fimple, and jull, becaufe it foon liberated the flate, and the lenders, from a fituation precarious, and totally new. It proved indeed very delufive in its eflFe6ls, and I confider its adoption as the caufe of thofe com- plicated, and repeated derangements in finance, ■which have fmce been produced. By [ 47 ] By not attending to the iofiuence of taxes on the circulation of money, and on induftry, the in- tended efFefts of this operation could not be rc- alifed ; the contraded debts were only paid in part, and in fome cafes, their liquidation became totally fufpended. Each fubfidy proved deficient, the public debts accumulated, their value diminifhed, and the term of their reimburfement was necelTarily prolonged. Experience, however, did not prevent mankind from perfevering in a falfe fyftem, which involved them flill farther in the labyrinth of public debts, and of increaling expence for the fervice of the Hate. In this manner was negle6led on the firfl: intro- dutlion of loans the refource of credit and induftry, when excited and propagated by one another. New taxes, for the payment of the capital re- ceived, went hand in hand with new loans, and the eftablifhment of this fatal connexion occafioned an evil, whofe origin was not traced, and which dellroyed the effeds intended to be produced. Thefe [ 48 ] Thefe confequenccs could not be hid from the eyes of money lenders, and their confidence in the public dimilhed. Neceflity then called for the adoption of life rcrn>, of annuities for a fixed term of years, and of lotteries, in order to attratfl the avarice of man- kind by offering a fuperior chance to each fortu- nate individual. The two former modes of raifing money, how- ever conftitute in faft expenfive reimburfements, and are not fo advantageous to a ftate as repip- fented by thole, who adopt them ; they indeed fatisfy for a time the public wants, but they pre* pare at the fame time an increafing expence. In reading the hiflory of the national debt of Great Britain, I perceive fhe underwent the com- mon fate of all nations in her firfl anticipa- tions ; but the fuperior form of her government furmounted every inconvenience, and flie at laft adopted wifer principles m finance, than any other nation. The mofl material, though imperfect, improve- nieat was that of creating taxes fur the intereft of pabHc [ 49 ] public loans only, without any view to their reim- burfement. I muft at leaft prefume, that this principle was intended by the name of perpetual annuities, which was then given to them. I am however ignorant, if the idea of paying off the national debt was confidered as chimerical, un- neceflary, and impolitic, and if the Phantom only was allowed to fubfift. out of refpeft to ancient pre- judices, or whether from not invefligating this mat- ter the proje£l was ferioufly intended. But I fee that in the year 1716 Parliament en- afted, that the aggregate and accumulating fur- plulfes Ihould be confecrated to that purpofe. An attempt to carry this plan into execution has alfo been tried during each interval of peace. The infufficlency of the means, procured by this refource, might, however, have demonftrated the abfurdlty of the projeft, and we have to lament the infatuation of thofe, who could not read its fentence of condemnation in the flatemcnt of its progrefs. G It [ 50 ] It is not a part of my duty to explain by what fort of rcafoning the nation ft ill amules itfelf in be- lieving, and attempting, what experience in al- ternate periods of peace, and war, renders incre- dible and impracticable. I beg leave therefore to refer my readers to what I have faid on that fubjeCl in the introduflion to this work, and fhall proceed to fliew how public loans may yet fupply the urgent wants, and in- crcaCng expences of Great Britain from the nature of her government, and in defiance of the aflual ilate of her finances. I think it fuperfluous to obferve, that the ift- terefl; of public loans lliould be lower than the in- come from any other objeft^ to which money is employed, becaufe the folidity of the interefl, and the certainty, as well as facility to obtain it, when due, muft fecure an eflential preference. The indications of the credit, and the profperity, of a ftate may be found in its public loans by at« tending to the interefl; granted, as well as to the natural, and eafy manner of providing it. In admitting this principle, which I coniider as incontrovertible, the dread and anxiety., with which " [ 5' 1 which government opens every budget, and the very high interr't paid on every loan, muft con- firm the fr d truth already announced, that the fta:e is declining, and that the prolperity of the nation is attacked in its vital parts. The prefent apparent ineRicacy of public loans muft, however, be afcribed to the original error of thofe perfons, who adopted them, and who by unneceffarily joining them at firft with a tax for the repayment of the capital, and afterwards for their interell only, viciated not only their nature, but rendered them aifo precarious in their utility, and alarming in their effe^is. To this ill combined jundion may be attributed the deSciencies, which Parliament is conftantly called upon to provide for, the augmentation of the public expences, the confequently more rapid increafe of the national debt, and the gradual rife of intereft, which have been the general, and im-» mediate, confequences of all public loans. Miniilers have alfo been in fome degree unjuflly charged with want of oeconomy, and v.'ith neglect in their duty, as the evils, attributed to their con- daft, arofe chiefly from the general opinion, that jt was neccfTary to levy new contributions, and not Q 2 froin [ 5* ] from the particular quality of the refource de-^ manded. The choice of proper objeSs for taxation pro- duces no doubt fecondary confequences by making their tffe6"ls more or lefs fenfibly felt, in the fame manner as difiPerent kinds of food, taken by a fick perfon, raife or keep under the fever, which at- tends the diforder. If any man accufes me of placing the finances of Great Britain in too gloomy a fituation, and flat- ters himfelf with the dangers being exaggerated, I muft refer him to the reports of the commifTioncrs of accounts. The truth of the afiertions, and the folidity of the reafoning, contained in thofe reports, created in my mind the firft idea of attempting to difcover a radical cure for the diforders, which they de- fer ibe. The unaccountable indifference, with which the public receives fuch alarming truths, ftrikes me with aftonifhrnent, but I am not difcouraged from hoping, that any plan, which appears calculated to benefit the nation, will meet vrith a fair, and liberal, difcuffion. By L 53 ] By comparing the (ituation of our finances in. the year 1776 with that arifing after the budget of 1783, and, which appear^; by the furns voted in the year 1784, the fatal effects of new taxes on the pre-exifling revenue, as well as the mediocrity of the produce of thofe new taxes, will be fenfibly felt, and occahon infinite regret for the enormous load with which the nation has been opprelTed. The fupplies of 1784 fhovv, that at that period the taxes created before the year 1776 produced ^.1,400,000 per annum lefs. They alfo difcover, that thofe created during the War, including the augment .tion in the malt and land taxes, ought to have produced j£'.4,8oo,ooo per annum, while their real amount did not ex- ceed £^.3,400.,ooo. By deducing therefore from this lafl. reality the diminution of ^f. 1,400,000 in the old revenue, the additional refource arifing to the fiate is only two millions, Thefe two millions have alfo been purchafed by very great facrifices, and no pcrfoa can on mature confidejation helatate to conclude, that the value obtained C 5+ ] obtained is hy much too fmall to juftify the incon- veniences. What will however be faid ? when further re- flexion points out, that thefe new taxes occafioned the intereft of the loans, which were made, to rife gradually above two per cent per annum: that they alfo increafed very confiderably every year the public expences, and that independent of the _^. 1,400,000 lofl in the old revenue, an annual in- creafe of ^.150,000, which arofe in the fmking fund from accumulating induftry before the war was, by means of this fyflem of raifing new con* tributions, cut off at its fource. Had they been de filled from we may prefume, that the accumulating quality of induftry by repro- du£lion, during eight years, would have confider- ably augmented that progrelGve increafe ; but in flating it only at ^T. 150,000 per annum, an addi- tional force of £".1,200,000 has been deftroyed, and may with juftice be added to the chapter of our loiles. I may alfo add the check given to public credit by the notorious infufficiency of the means adopt- ed ; the injury done to induftry and to interior, as well as exterior, corrjmerce by deranging the circulation [ 55 ] circulatioil of money, and by dimlnifliing the pro- dutflion, and the confumption of every article. The bad confequences evidently exceed the good effeds produced, which mull remove all doubts, and confirm in the flrongefl: manner that the fyftem purfued was erroneous. But let us not deceive ourfelves by imagining, that the progrefs of the evil is flopt. The a6luai flate of peace may prevent all the bad effefis from being felt, but this fituation can only be compared to the flumbers of the Cck, which deaden their pains, while the firfl; extraor- dinary event, which difturbs that tranquility, will produce a violent commotion, and caufe the evil to augment more rapidly, until that fatal period, when the poifon, which the flate has from time to time been imbibing, lliall have fo far corrupted the whole mafs, as to deilroy the neceflary functions of the body, and produce the moll dreadful fitu- ation. After having thus ftated the fatal quality of public loans, when accompanied by new taxes, I muft in order to comfirm my opinion on this fub- jtfl, as v.'ell as to dilfipate every doubt, and, to carry [ 56 3 carry further convi6lion into the mind of every unprejudiced man, examine the quality of public loans, when difencumbered from this dreadful companion, and Ihow the enlivening pi6lure of that refource in this new point of view. I mufl; admit, that they are evils, which the wants of a ftate render neceffary ; but diey may be fo combined as not to give rife to an additional burthen. To produce the greatell advantages, which loans are capable of, they ought to give an additional force for vivifying, and increafmg that, which al- ready exifted in the ftate. This additional force may be propagated through public, as well as private loans, if employed in promoting induftry, becauie induftry gives more income than intereft of money. Public loans therefore, when made ufe of for the fupport of a ftate, without a new tax being levied, do not raife the price of any objeifl of con- fumption, further than is neceffary for the encour- agement to produce more ; nor do they tend to a general increafe in the price of labor, or in a di- minifhed confumption of various articles, which are [ 57 ] are the confequences of raifing a contjibution on any objcft of neceffity. The money obtained is on the contrary difperfed without difHculty through every channel, which induftry, and commerce, offer ; affifts in creating new incomes, as well as new capitals ; and being fuppoited therein by the annual balance, or in- creafe of reprefentative figns, its value receives no material augmentation, its power invigorates every necelTary fun6lion, and each part of the body fruc- tifies, while 'Jie dreary fymptoms of diflrefs, arifing to individuals from a flate of war, are in fome degree mitigated by national r.bundance, and pro* fperi ty. But thefe effeCls will be further explained in the folio iving feftion, in which the influence of loans, and of taxes, on the circulation of money will be more amply treated of, and the natural as well as forced paflage of the reprefentative llgns through ^ndviftry explained. H SECTION [ 5S ] SECTION VIL On the eff'eEl.s, -which arije in the circulation of moncy^ from taxes andjrom loans* A H E circulation of money has been reprefented as file principle of life in a (late, in the fame man- ner as the circulation of the blood is the principiie of human exiltence. The touch- ftone, therefore, for trying the mean,s which may be propofed towards fupporting, or re- coveriaig the vigor of a nation, mull be the con- neClion of thofe means with that circulation, as well as their influence on it. Every flatefman, wIjo wiflies to be fully afifured of tlie efficacy of any phm, mufl of courfe examine if it tends to facilitate, to turn out of its natural courfe, or to obfliu6l the circulation cf the repre- fentative figns. The [ 59 } The principle I am enablifhinj, and the means I propofe, have not I believe hitherto been fug- guefted by any peiToii : but I flatter myfelf that what has preceded this fettion will infpire my readers with fome degree of confidence refpefling the one and the other ; and they cannot with any fort of jullice refufe their concurrence to my fenti- meiits, if wiih this principle I explain all thofe phe- nomena, v/hich have already happened, and which may yet happen to Great Britain ; becaufe the doftrine of her refloration can only arife from a peife£l knowledge of what has been detrimental to her. I have already explained the general principles of circulation in the reprefentative figns, but I have rcferved to myfelf a further examination of ihcni afier having treated of taxes, and of loans. The different parts of this fyftem are fo inti- mately conne(!n:ed, that the placing of them in one fingle point of view, and fliewing at once their general, as well as their particular, connexion with one asother would no doubt be very defirable; but fuch an attempt mull dellroy the necelTary petfpi- cuity of my work by extending, and dividing, the attention on a fubjciV, which in its nature is fuffi-« citntly complicated and abflrufe. J] z I mali [ 6o ] I fhall therefore imitate a painter, who is ex- ecuting a great pidlure, and who after fketching out his defign, works at different parts of it one after the other, alternatively leaving and returning to each in proportion as the general perfedion, and the harmony of compofition may require. The reprefentative figns follow naturally im- mutable laws in their aftion, and reaQion, by being inceflantly attraded to the great objed o reprefenting real property, and from thence re- pelled into every channel of induftry and com- merce, in the fame manner as the blood, to which it has been compared, returns to the heart, and is again repelled into the arteries, and veins of the human frame. The fame principles of equilibrium, freedom of cu-culation, and nutritive attraftion, which are known to cxift in the animal oeconomy, reign over thefe reprefentative figns in the moral conRitution of a ft ate. "While they follow thefe principles their circu- lation is natural ; when they deviate from them, it becomes forced ; and in this cafe the ftate is ne^ cefiarily affedcd with a diforder in fome part. The [ 6i ] The natural circulation of money may be faid to confift in its free and fpontaneous communica- tion for exchanging every thing wanted towards produdlion, and reprodudion, of income, and of capital, as well as in its regular motion through every branch of induftry, and of commerce. Forced circulation on the contrary confifls in the imprefiion made by a foreign agent, indifcreetly introduced into the operations of thefe reprefenta- tive figns, which interrupts their fpontaneous, and natural aftion, alters the reprodu6live quality in many, carries them by a forced, and irrelillable impulfe towards other obje£ls of exchange, and accumulates them with violence, until the rife of intereft, which takes place in their abfence, draws fome of them back to the objedts they had quitted. Government as poflfefiTed with the power of levy- ing taxes, is the principal agent, and the caufe of all forced circulation. Whenever the fovereign power is diftreOTed by new wants, and raifes a new contribution in order to relieve them, a part of the circulating figns are withdrawn from their natural funQions. But [ 6z ] But as that power returns them again to indivi- duals of the fame community, by expendincr it amongft them, the Turn contributed for that pur- pofe is the lead part of the evil to be com- plained of. The great danger, and fatal confequences, con- fifl in the augmented price of the article taxrd, which occaiions a further rife to take place in all thofe obje6ls, that have the mofl: dillant connetlion ivith it. It would be impoflil)le to point out the link which terminates the chain of connection with any article on which an impofition is railed, and of eourfe to give a precife, as well as gradual calcu- lation of the fatal effeds, which, by viciating the circulation of money, refult from each new con- tribution, I fhall therefore only mention, tint the confc- quences are numberlefs, but I mud at the fame time not omit to obferve, that the augmentation of price is never in the exacl proportion of the; tax levied, but always fuperior to it, becaufe in- duflry, in retaliating on the confumcrs the injury done to it by the Exchequer, exacts m Jie than it [ 63 ] pays, as an indemnification for difburfing the con- tribution. This manner of calculating is afterwards pro- pagated through every obje61-, which that tax raifes in price by fecondary means, and adds intereft on intereft, evil on evil in the general diforder. It will be afked, how a tax viciates the circula- tion of money. I anfvver •, becaufe it increafes the natural price of every objeft, and at :he fame time extinguifhes the powers of reprodu6lioa in the reprefentativc figns employed to that purpole. Each obje6l has in the fcale of wants an intrinfic value, which a general agreement gives to it ; that Value has gradations which particular circumftances produce, but which are ingrafted with its nature. As long as that value, generally agreed on, is retained to every obje6t, the circulation of money is natural and free ; the road of exchange is always plain and eafy ; each article goes through its na- tural procefs with facility, and each individual may prevent his being impofed upon in whatever he acquires or difpofes of. But [ 64 ] But when government interferes by taxing any article, an ideal as well as an exaggerated price ia added to it by authority, and it receives at that moment an indelible ftain, with which it circu- lates, . This (lain, which is imprinted with force, generates the virulent matter that attacks the con- tributing objeft, and viciates at the fame time thofe articles which it touches in its paiTage, becaufe every obje6l participates according to its degree of con- taft with the infefted one ; and in this manner is propogated the epidemical dillemper, which, produces fuch alarming and terrible confequences. But to return to the language of Snance, let me obferve, that if the increafing intereft of money, occafioned by this derangement, fhould be checked through an effort of nature to rellore the equili- brium by lefs produ£lion and lefs confumption, or by an increafe of the reprefentative figns, "the value, at which the taxed article and all its connexions are rated, remains ftill above its natural price. That furplus value paffes through every channel without acquiring a procreating faculty, becaufe an ideal price can never be produdive of a real income to an individual. In t 65 ] In vain will Jndpniy and comtnerce augment the reprerentatlvc figns, and produce fome addi- tional lliengLh. The greater appearance of profperity^^will con- fjfl chiefly in exterior form, and the ftate may in fuch vill keep from our view the decline of the Britife Empire. SECTION [ loi ] SECTION X. RECAPITULA T I N. J. H E doubts and difficulties, which apparent- ly obftruft the execution of the plan, contain» ed in the foregoing fe6lions, being I hope fatisfaftorily removed, 1 propofe to conclude my work with a recapitulation of the leading prin- ciples, on which it is founded, and, as far as the fubje6l will admit of. prefent to my readers in one point of view the general connexion of the whole. The fituation of Great Britain, with refpe6l to her revenue and her expences, are too well known to make it necellary for me to ftate the deficiency, which at prefent exifts. It is obvious, that fome plan mufl; be adopted, not only for fupplying this deficiency, but alfo for furnifhing eventual means towards carrying on fu- tT;ve xvajs. The [ 102 ] The general opinion has hitherto been, that new- taxes mufl be reforted to for that purpofe, and that the credit of Great Britain can only be fup- poited by an exilling furplus in the revenue, and the appropriation of it to the gradual diminution of her debt. This opinion is however erroneous in principle, and, having failed in practice during more happy periods, has confequently been refuted by ex- perience. But the reverfe of this fyftem is entitled to the appellation of a falutary and permanent refource, from the confideration, that the alienation of a perpetual annuity, without creating new taxes, retains the natural circulation to more reprefenta- tive hgns, excites and auginents induftry and com- merce, while it increafes at the fame time the pro- duce of the remaining taxes. I make ufe of the term, aliencting a perpetual annuity, in the place of the word borrowing, as the latter tends to miflead, hy carrying with it the idea of reimburfmg the fums obtained. It [ 1^3 ] It will be univerfally admitted, that tht profperity of a ftate confiHs in its flrength and in its riches. Thefe two words are indeed almofl fynonimous, becaufe a ftate cannot be powerful without being rich, or rich without being powerful, in the poli- tical fenfe of thefe words. An independent ftate is of courfc more or lefs rich. Its riches increafe by population, and population by agriculture and commerce. Commerce is excited by induflry, and induflry by money, which is the center from which every objedl receives an influence. Thefe advantages, when united, form the true riches of a ftate, and lUmulate one another to reproduclion. The}' alfo conftitute the balls of fi6litious richest- called credit. A free government poflefTes the mofl: powerful means of creating and making ufe of thefe fi6litious riches, [ 104 ] riches, which in their confequences are equal ta true riches, A loan is the mode of making ufe of credit. A debt is the confequence, and the alienation of an income, for paying the intereft, the effe£l ; the facility of providing for a momentary an-d urgent want is the advantage which refalts from it. Great Britain has been compelled to make ufe of this credit to an immenfe amount ; but fhe founded it on erroneous principles, which have occafioned a greater extention of it than was ne- ceilary •, and her annual expences for the intereft, as well as her peace and war eftabUIhments, became gradually more exorbitant. The idea of liquidating a part may indeed be flattering to the nation, but the molt fuccefsful attempt, which the prefent circumilances will ad- mit of, can only be compared to a few drops of water taken from the ocean. It is even neceflary to eradicate hopes, which can never be realized, and which ferve to miflead. The [ '»S ] The national faith, however, and the confidence of the public demand, that the interell or income of all fums fubfcribed, or to be fubfcribed, be pro- vided for and regularly paid, becaufe the intereft of this national debt conftitutes the claim to a very confiderable property or capital. A capital is the accumulation of incomes, which produces a further annual income, and repre* fents it in perpetuity. An income is the produ6lion of nature com- bined with the induflry of man, and Rimulated to aOiion by money, which is the reprefentative fign, and which by means of its univerfal power obtains alfo an annual income called intereft. This focus, to which every objeQ: is attra£led, and from which every object receives an influence, produces abapdance or fcarcity in proportion to its extent. The a6lion of this reprefentative fign conflfts in its circulation through the channels of induftry and commerce. It refembles the operation of the blood in the Jbuman frame, and, when forced out of its natural courfe, produces diforder and weaknefs. O Money [ io6 ] Money in is natural circulation has alfo a repro- du6live quality, which it is necefifary to preferve as it forms the principle of every increafe in flrength and in riches. The lofs of this quality arifes from the num- berlefs contributions, which are levied on every obje6l of confumption and of commerce for the fervice of the public. Originally they were colle6led in kind, but lat- terly in money. The firft mode was Cmple and natural, while the latter is complicated in its efFeds, and the evil it creates has neither been inveftigated, nor provided againft. When the falutary tendency of this fyflem be- came overpowed by the bad confequences it pro- duced, loans were reforted to, in order to remove to a more diltant period the contributions de- manded. They were therefore not made ufe of at firfl: from principle, but only to temporize, which, as a fundamental error, plunged the.ftate into various difficulties. Latterly [ 107 J Latterly they ha\'e approached more to their natural utihty, by being adopted from principle. They are however ftill impcrfe6l, and require to be founded on new principles to adrnit of their extention, which can only relieve the nation from the weight of taxes, and the dangers of a forced circulation. The introdu6lion of this vice in the circulation of money is particularly to be attributed to taxes adding an ideal price to the generally agreed Qtj value of every objeft, This ide«l price, which never reproduces, is alfo added to every obje61; connected with the contributing article. An extenGve lofs therefore of reprodudlive quality exills, and diminifhes the faculties of in- duflry and trade. It mufl alfo ultimately crufli them, if further extended. ijjk. The only means of regenerating this power is to take away the caufe, which fufpend^ its func- tions, and to deliver as many figns as is polhbl? O 2 from r '08 ] from the efiFefts of this deftrudive quality, hy fqp^ preffing a part of the exifting taxes. The deficiency occafioned thereby mufi; be fup"^ plied by loans without new taxes. This procefs will of courfe reftore the generative quality to more reprefentative iigns, whofe in- fluence in the general circulation will provide for more than the intereft to be paid, by an increafe in the produce of the remaining taxes, will favour indtirtry, augment commerce and confumption, as well as population. The riches and the ftrength of the ftate will then increafe progreflively and naturally. The falutary effe6ls will alfo be immediately felt, and will lead to the fuppreffion of every ex- cefs in the exifting taxes, above what is wanted for the intereft; of the national debt, and the efta- bliftiment of the civil lift, while the continuation of annual loans will require no new burthens. The profperity to which Great Britain can at- tain, will then be in its natural courfe, and every thing will concur in producing the greateft degree of perfeftion in her maturity. The. [ 109 ] The Miniflerj who fhall accomplifli this objcd-» will obtain his recompence in the happinefs of the piefcnt arfd future generations, while their admi- ration and gratitude will raife to his memory an everlafting monument. My fatisfa61ion will be compleat, if the refult of my enquiries fhould lead to fo glorious a period in the adminiftration of Great Britain, and form the cCra of a fortunate revolution in the finances of py country. FINIS. BOOKS printed for J. DEBRETT, oppofite Burlingtoa* Houfe, Piccadilly. '^HE PARLIAMENTARY REGISTER No. IV. of I _ the prefeni, being the Second Sefiion of the Sixteenth Parliament of Gre^c Britain. Containing an accarcite, full, and impartial Account of all the Debates of the prefent Sef- fion, collated with the Notes and Papers of feveral Gentle- men, who have very obligi/igly cumn-, unicated the fame. ^ At the defire of feveral Perfons of dillinguidi-d Abili- ties and Rank, this Work was undertaken. The favourable Reception it has met with during the whole of the two laft Parliaments, not only demands the moft grateful Acknow- ledgements of the Editors, but encourages them to a Con- tinuation of the fame through the prefent Parliament. For this Purpofe, and to prevent mifreprefentation, they beg leave again to folicit the AfiilUnce of their former Friends, and every other Gentleman. A Ilri(5l Aitentitm will be paid, to all their Commands and Favours; nor will any Afliduity or Care be wanting to prefetve that Truth and Accuracy, for which this Work has hitherto been diftinguifhed. The PARLIAMENTARY REGISTER of the laft Sef. fion complete, being the FIRST of the PRESENT PAR- LIAVIFNT. Containing, amongll a great Number of in- terefting Debates, the Debates on Mr. Pitt's India Bill; on the Affairs of the Eaft India Company ; on the Parliamentary Reform ; on the Wellminlie-- Eledion ; the Report at length of the PRIVY COUNCIL, concerning the INTER- COURSE between the CONTINENT of AMERICA atid the WEST INDIA ISLANDS, which is no where elfe printed for file, &c. &c. Sec. in Two Volumes. Price 155. JKilf bound and {'"tiered. 'i'he PARLIAMENTARY REGISTER of the lad P.r- ]i;;mpnr, complete, vis. from 1780 to :784, in Fourteen Volumes. Price 5I. 83. half bound and lettered. The PARLIAMENTARY REGISTER of the former P.iiiiamenf, from 1774 to 1780, in Seventeen VolumeSj^ Price 61. 6^i half bound and lettered. Th^ REMEMBRANCER; or IMPARTIAL REPO- SITORY ..f rUlJLIC EVENTS. The American War g^ve ri<"e to this Woik in 1775. Every authentic P^per re- lative !o that War, as alfo with France and Spain, whether piibi/Pncd in England, or America, by the Bkitish IVji:;:5.TRV, or the A.merican Congress, are all care- fully BOOKS PRINTED FOR J. DEBRETT. fully infcrted in this Work. The Letters of the feveral Commanding Officers, Addrefies, Refo!utions of the various Commicteeb, Conventions, &c. To thefe have been pre- fixfd, at the defire of many Ferfons, a Colieftion of authen- tic Papers refpe»::ting the Diipute with America before the Commencement of HolUlities, from the Refolutinns which gave rife to the Stamp Aft in 1764, to tlic Battle of Lexinp;tori in 1775. Compleie Sets of this valuable and intereiling Work may be had of the Publilher in Seventeen Voiu.Tiei. Price Six Guineas, half bound and lettered. ''^* Thofe Gentlemen who are in want of any particular Numbers to complete their Sets, are earnellly entreated to order them as fpecvaiy as pofllble. The NEW FOUNDLING HOSPITAL FOR WIT: Being a Colleftion of Fugitive Pieces in Profe and Verfe, not in any other CoIIedlion. A new Edition, confiderably im- proved and enlarged ; in which are inferted fever.il curious Pieces, by Lady Craven, the Marquis of Carmarthen, the Earls of Carlille, Buchan, Nugent ; the Lords Palmer'ton. Mulgrave, Holland ; Sir J. Moore, Right Hon. C J. Fox, Right Hon. R. Fitzpatrick, birW. Jones, Dr. B. Franklin, J. Wilkes, D. Garrick, R. B. Sheridan, and C. Whitefoord, Efqrs. Sir Charles Hanbury Williams, Mr. Gray, Mv. Mafon, G. Ellis, R.Cumber'and, B. Edwards, Captain E. Thompfon, &c. &c. which were not in the hirmT Edition ; together with feveral Pieces, now firft printedTrBm the .Ar.- thor's Manufcripts. The Whole carefully revifed, arranged, and corre6led, in Six Volumes. Price iSs. fewed. An ASYLUM for FUGITIVE PIECES, in Profe and V.:rfe, not in any other Colleftion : with fcvcal Pieces never before publifhed ; including the CRITIQUES on the ROL- LIAD, to the prefent time, revifed ; Lord G m's Diary ; Lord M e on Eloquence; and feveral Jeu dcs Efprils. written by Perfons of Falhion, on many late Public Topics, intended as a Supplement to the above Work. Price 2s. ievved. OBSERVATIONS on the COMMERCE of the A.ME- RICAN STATES, with ;m Ap]>endix, conraini/)g Remuks on the Trade and Mavig3:ion of BRITAIN, and on the late Proclamations, The Sixth Edition, with confidcrah!'» Additions, and feveral interclHng Tables. By JOliN LORD SHEFFIELD. Price 6s. in boards. fff To this Edition is pr-.fxed an Introdufiion, in R-pI/ to the Remarks and Objeft ons which have been pubhlherd againll this Work. OBSERVATIONS BOOKS PRINTED. FOR J. DE3RETT. OBSERVATIONS on tlie MANUFACTURES, TRADE, and PRESENT STATE of IRELAND. By JOHN LORD SHEFFIELD. Price 7s ii boards. XiX This Work includes the interefting Qaeltion relative to the opening the Ports of Great Britain to the Manufaftnres of Ireland, and alfo to the Colonial and Foreign Produce from that Kingdom. REMARKS on the GOVERNMENT and the LAWS of the UNITED STATES of AMERICA, in Four Letters, addrefled to Mr. ADAMS, Minifter Plenipotentiary from the United Slates of America to thofe of Holland. Tranflat- ed from the French of the ABBE de MABLY, with Noies by the Tranflator. Price 4.5. fewed. The COMMERCIAL REGULATIONS with IRE- L-^ND explained and confidered, in the Speech of the Right Hon. THOMAS ORDE, upon opening the fame in the HOUSE of COMMONS in IRELAND ; with an au^ thentic Copy of the Propofitions, and of the Obfervations made U'^^on them by the Committee of MERCHANTS and TRADERS of the City of LONDON. Price is. OPINIONS on the interefting Subjedls of Public Law*- and CoM.vTERciAL Policy; arifing from AMERICAN INDEPENDENCE. The Second Edition, with Additions. By GEORGE CHALMERS, Efq. Price 3s. •An EbTPiATEof the COMPARATIVE STRENGTH of BRITAIl^, during the prefent and four preceding reigns; nnd ofthe Lodes of her Trade from e.very War fince the Re- volution. By GEORGE CHALMERS, Efq. To which i^addeds anEc^SAY on POPULATION, by Lord Chief j.uiMce HALE. Price 5s. An ENQUIRY into the EXTENT and POV/ER of JURIES, on Trials of fndiftnients, or Informations, for publilhing fediiious, or other criminal Writings, or Libels ; extratled fro.^^ a Colledion of Papers, intitied Additional Papers concerning the Province of Quebec. Price is. 6d. OBSERVATIONS on thf Righs and Duties of JURIES, on Trials for LIBELS; together with Remarks on th^#.. Origin and Nature of the Law of Libeb. By JOSEPH TOWERS, LL.D. Price 2i. 6d. .-r- \ M f>^, ...■