THE UNIVERSITY OF ILLINOIS LIBRARY j332 BQ75 V/8 X FURTHER OBSERVATl ONS \ ON IHE PRACTICABILITY AND EXPEDIENCY OF LIQUIDATING THE public 53et)t OF THE UNITED KINGDOM ; WITH REFERENCE, PARTICULARLY, TO THE LANDED PROPRIETOR: INCLUDING SOME CONSIDERATIONS ON POPULATION AND THE POOR. BY RICHARD HEATHFIELD, Gfnt. AUTHOR OF " ELEMENTS OF A PLAN FOR THE LIQU l- DATION OF THE PUBLIC DEBT OF THE UNITED KINGDOM." LONDON : PRINTED FOR LONGMAN, HURST, REES, ORME, AND BROWN, PATERNOSTER-ROW ; J. M. RICH ARDSON, COUNHILL ; J. HARDING, ST. JAMES*S STREET; AND WAUGH AND INNES, EDINBURGH. 1^20, FURTHER OBSERVATIONS, It is stated, in the " Elements of a plan for the liquidation of the Public Debt of the Uni- ted Kingdom\," that an assessment of fifteen per cent, on all private property in the United Kingdom, including the consideration of the public debt, would be the means of effecting the immediate, or early relief of the nation from the demand of forty millions per annum, and might be rendered the key stone of measures, by which the further eventual relief would be obtained, of fourteen millions per annum : constituting the remission of demand on the nation, of an annual sum of fifty-four mil- lions. That statenaent was made with reference to B the public accounts ending the 5th of January 1819, and without regard to the subsequent measures of finance, by which twelve millions were diverted to the public service, from the sinking fund, and three millions of duties were imposed, in order that the sinking fund might not decline in efficiency below five millions. In order, therefore, to comprehend the subject, for the purpose of shewing the extent of the relief to be proposed, one million must be added to the sum of fifty-four millions above- mentioned.* Part of the effect of tiiis total sum of relief of fifty-five millions, would be experienced in the cessation of demand for an annual loan, or of assistance from the sinkifg fund, and part in relief from duties and taxes : the pro- portion to be assigned to each head cannot be accurately stated for the current year, until the annual account be made up, and the amount, if ascertained for the current year, would be an imperfect guide for future years. * The interest of the sinking fund has been taken at six- teen millions or thereabouts. Elements of a Plan for the Liquidation of the Public Debt, pp. 14. 43. 6th Edition. One million must, therefore, be added, to admit of a re- mainder of five millions, after the appropriation of twelve millions to the public service. 8 If the amount of loan or assistance from the sinking fund, be supposed to be twelve millions; The sum of forty -three millions would re- main, to be remitted in duties and taxes. Of which ; Twenty -nine millions would cease, upon and in immediate or early consequence of the legislative enactment of an assessment on pro- perty, of fifteen per cent. And, Fourteen millions more would cease, upon the final liquidation of the debt. Under the conviction that this represen- tation cannot be, materially, disturbed or va- ried, unfavourably to the object proposed, some observations are now submitted, with a view to shew that a measure which would produce consequences so important, would proceed upon an effective system of relief, without involving the risk of consequent dis- tress or inconvenience to the landed proprie- tor. B 2 It is proposed, that private property now within the United Kingdom, induding the claims of the public creditor, be assessed to the amount of five hundred millions*. The proposition is calculated, by its magni- tude, to check the exercise of the judgment; but if examined, it will be seen that in re- spect of the landed proprietor, the sum to be demanded would not nectssarily equal the sum of immediate or early rehef. Of the sum of ... . 500 millions, the public creditor, by re- mission of claim, would con- tribute .... about 125 millionst. leaving, 375 millions, to b6 contributed by the other classes of pro- prietors. Adopting the table of Dr. ColquhounJ as a basis, for the advantage of considering the subject, it appears that the contribution of this remaining sum of 375 millions would be reqviired in the following proportions ; viz. * Elements of a Plan for the Liquidation of the Public Debt, p 16. f Ibid. Table, p. 26. % Colquhoun on the Wealth, Power and Resources of the British Empire, p. 55. Estimated at Millions. 15 per Ct. From landed property in cultivation 1200 180,000,000 Tithes belonging to the laity, exclu- sive of tithes in possession of the clergy 80 12,000,000 Mines and minerals 75 11,250,000 Canals, tolls, and timber 50 7,-^00,000 Fisheries 10 l,50w,000 Dwelling houses 340 51,000,000 [263,250,000] Agricultural live and dead stock ... 230 34,500,000 Steam Engines and other machinery 60 9,000,000 Manufactured goods, and goods in process of manufacture 140 21,000,000 Foreign merchandize deposited in warehouses either paid for, or vir- tually paid for, by debts owing to this country by foreigners 40 6,000,000 British shipping 27 4,050,000 Domestic property, viz. — Furniture, jewellery, plate and other effects 248 37,200,000 [111,750,000] Millions, Total 2500* 375,000,000 This " attempt," as Dr. Colquhoun expresses it, "to estimate the private property in Great Britain and Ireland," has respect to the year ♦ Exclusive of waste lands, at present unproductive, es- timated by Dr. Colquhoun at 132 millions, after excluding all such as are incapable of any improvement, adequate to the expence. 1812, and is founded upon low rates of estimate*. Although some allowance must be made for the alteration in money prices, which would be inci- dent to the projected measure, it is presumed, notwithstanding, that the sum to be assessed would exceed two thousand five hundred mil- lions. A tendency to improvement, rather than decline, in rent, which is the chief basis of this estimate, at least until the full, final and complete liquidation of the debt and the cessation of the burthens incident to the liquidation, might be anticipated. The proposed reduction of the public burthens and the increase of demand upon the national industry, might be expected to enable the country to sustain the present rates of rent, and probably, in some instances, something more, with chearfulness and advan- tage. A liberal return from the land to the proprietor is necessary to the general pros- perity. The contribution to be required from private property is three hundred and seventy-five millions. Or, at the rate of eighteen millions seven hun- dred and fifty thousand pounds per annum, for interest, until the principal sum be paid. If,how- * The rent of the cultivated lands of England and Wales, is iaJcen at something less than ixjoenty shillings per acrey valued at tvoenty-Jive years purchase. ever, government stock should be received or al- lowed to be cancelled, at the par of 100, in sa- tisfaction of the principal sum to be assessed, the reduction of duties and taxes, in respect of the assessment on three hundred and seventy- five millions might decline to fifteen millions ; the assessment vrould, in this case, be less effec- tive, because one hundred pounds three per cent, stock, would cancel a principal debt of one hundred pounds sterling ; but, if all govern- ment stock below the 5 per cent, stock should be fixed, for the purpose of the re- demption, at a lower rate than the par of 100, the reduction of the duties and taxes, in re • spect of the assessment of three hundred and seventy-five millions, would approximate to the first mentioned sum accordingly, and if one hundred pounds sterling only, and not stock, were allowed to cancel one hundred pounds of the assessment, the assessment and the correspondent reduction of duties and taxes would extend to the full sum of eighteen millions seven hundred and fifty thousand pounds, first mentioned. The lowest sum, or fifteen millions onlg^ will be adopted for the purpose of these observa- tions. The proportion to be borne by the landed 8 proprietor, in respect of lands in cultivation, is one hundred and eighty miUions. Or, at the option of the proprietor, an annual pay- ment of interest, at 5 per cent*, amounting to nine millions. The proportion of which to be borne by each of the three divisions of the United King- dom, is as foliowsf : viz. IViUions ad ^ Wales England and ) 750 at 15 p. ct. 112iorat5 p.ct.-) I .u [-5,625,000 ) thereon, 3 ' ' 22| 1,125,000 45 2,250.000 Scotland ... 150 Ireland 300 Millions 1200 180 9,000,000 The landed proprietor, in respect of the cultivated lands, on the supposition of the non- pat/ment of the principal sum assessed, vv^ould be required to pay the annual sum of nine millions ; the proportion for England and Wales being five millions six hundred and twenty-five thousand pounds ^ for Scotland one million one hundred and twenty-five thou- sand pounds; for Ireland two millions two hundred and fifty thousand pounds. * The interest to be advanced to 6 per cent, if the tax be »ot redeemed at the expiration of ten years, •j- Dr. Colquhoun, page 56. One great end of political association is the complete cultivation of the soil; and a market for the produce, beneficial to the grower, is necessary to that end. If the United Kingdom were divested of external relations ; if the intercourse and bu- siness of the nation were confined to the or- dinary civil and social relations (abstracting the consideration of a pubhc debt*) and were limited to its own shores; the price, at market, of agricultural produce, if constant, or only affected by ordinary causes, would be unim- portant. The trade in agricultural produce, for the products of the useful and ornamental arts, would proceed to as great extent at a high price as at a low price; the price would be purely conventional, between parties ne- cessarily Connected with, and dependent upon, each other; and if a permanent advance upon a price jjreviously and duly adjusted^ between the produce of the country and the products of the town, were to be made by the culti- vator, the manufacturer would keep the ba- lance in adjustment, by advancing the price of his products, and so vice versa : the altera- tion, although inconvenient, would be with- out consequences, permanently prejudicial. * See Appendix (A.) p. 64. r: 10 But, the United Kingdom is not so isolated, and could not have maintained the pre-emi- nence in arts, and the ascendancy in arms, without the stimulus and encouragement of external commercial relations. The extent and duration of the national power depend upon the power of competing with foreign nations, in external markets : a price, comparatively high, even within the British Isles, creates uneasiness and dissatisfaction, and has the effect of a bounty on illicit traffic ; in a British colony, the same effect follows, accompanied by a higher degree of uneasiness and dis- satisfaction ; and in an open market, is followed by the entire loss of such market. Agriculture, the principal source of national power, receives its chief impulse from the population of towns and cities, the popu- lation of which, in the United Kingdom, is constituted to very considerable extent, by persons employed in artificery and manufac- tures for the trans-marine trade, and in the consequent business of export and import : the trans-manne consumer of British manu- factures and produce creates a market, 7vith-^ in the kingdom, by means of the persons whom he calls into employment therein, as well as an ea;ternal market for the whole combina- tion of materials, skill and labour, of which he requires the supply. 11 The market, therefore, which is required for the encouragement of the agriculture of the United Kingdom, must be supplied at prices which will command a preference, in compe- tition with the prices required by other coun- tries for similar productions; and, unless it be supposed that prices may be advanced, without narrowing the trans-marine market, it is not possible to devise any duty or tax which will not bear prejudicial!}^ upon the landed pro- prietor, nor to repeal any duty or tax without advantage to the landed proprietor. . The operation of public imposts may, in some degree, be illustrated thus ; On the supposition that the landlord and tenant were identified in one person, that the community, as such, were not charged with any expence or burthen, that the ordinary price of a bushel of wheat were three shil- lings and nine pence, and that the price of other agricultural products and of the products of the town were adjusted accordingly ; in this case, ten bushels of wheat would return t6 the grower one pound seventeen shillings and sixpence. If, in addition to the cultivator and the ar- tificer and manufacturer, a third party, namely, the order of clergy be created, to whom one bushel of the ten, and one tenth of other agri- C 2 n cultural produce be delivered without pay- ment, the remaining nine bushels must be sold at four shillings and two pence per bushel (and other agricultural produce proportionally) in order to produce, to the grower, the same sum of one pound seventeen shillings and sixpence; but that sum, if obtained, would not equally compensate the grower, because the rate of wages and the price of the products of the town and of all articles of supply and con- sumption, to be in future purchased by him, would advance in price, in consequence of the advance in the price of agricultural pro- duce. The products of the town must ad- vance, or the artificer and manufacturer must suffer. In a state not absolutely depressed by duties and taxes, the re-action from the town upon the country would be experienced in the advance of price in the products of the town ; the growler would discover, in the event, thati the rate of four shilhngs and two-pence for the nine bushels of wheat, would not re-place him in the situation of effective power in which he stood before the abduction of the tenth bushel: the sum of one pound seventeen shillings and sixpence would not command labour, either in working the farm, or when embodied in the products of the town, to the extent that the same sum commanded labour when he delivered wheat at three shillings and nine- pence for the bushel. He would, therefore, en- deavour, still further to advance the money price ; if that object were effected, a further re-action would be experienced, a second re- tort from the town upon the country ; which would again be followed by a train of alternate cause and effect, until the country and town should have divided the burthen between them through the medium of a money price. The advance of money price is the process by which the burthen is equalized on the pro- ductive classes. In the end, corn and goods produce more money, but then, money pro- cures less corn and goods. The circulating medium receives an increase in quantit}'^, either in metallic or paper currency, but the pound sterling recedes in effective value. In the progress of society, the clergy may be called upon to return some part in direct im- posts ^ and, under some circumstances, may share in the effect of the advance of money prices ; but the charge of the maintenance of the clerical order must, in effect, be borne by the productive classes. The alteration of money price cannot prevent this effect*. • See Appendix [B.] p. 67. 14 If a fourth party be established, by the m stitution of a political government, a contribu- tion for the maintenance of the government, is required from the cultivator and the manu- facturer, in common ; each, in consequence, advances the money price of the produce or goods Vi^hich he vends, each seeks an indem- nity in the increased money price ; an indem- nity which neither can Jind, and the effort ter- minates as in the instance of the clerical or- der ; the burthen is equalized or nearly equal- ized on the productive classes. In the end, corn and goods produce still more money, but money, again, procures less corn and goods. The circulating medium again receives an increase in quantity, but the pound ster- ling, also, again recedes in effective value. Persons on the government establishment may,, eventually, return some part in direct imposts, and if not kept in progressive advance of pay or allowance, will share, in some proportion, in the advance of money prices : but the charge of the government must, in effect, be borne by the productive classes. And the expense of the maintenance of the aged, sick and orphan poor, produces a similar chain of cause and effect. These are expenses, however, which pro- duce an undefinable reciprocation of good in 15 the office of priest, of king, and in the proper .exercise of the sympathetic affections -, and if an increased money price of the several pro- ductions of the national industry, in the fo- reign, as well as in the domestic market, en- sue ; all civilized states are subject to similar expenses, varying only in degree, and must advance the price of the productions of their skill and industry, accordingly : much relative inequality in price, will, therefore, not arise from these causes. But if t?vo new classes be added, namelj-, the public annuitant and the supernumerary poor, or poor, who being employed, are not adequately paid, new and undefinable claims, of the most anxious and dangerous descrip- tion arise. These classes must also be supported by the productive classes, and the consequent im- position of duties and taxes or other charge, leads to new and similar efforts for the ad- vance of money prices. Corn and goods, again produce still more mone}^, so far as the advance of the money prices can be effected, and similar increase in the currency and the like retro- cession in the effective value of the pound sterling ensue. But the power to advance the money prices finds a check in the moncj^ prices of neighbouring countries. Laws regu- 16 lating the importation of foreign produce, called, protecting laws; in effect, laws to force up the money prices, follow: successive im- posts require the extension of these protecting laws, and if not enacted to sufficient extent to enable the cultivator, manufacturer, or dealer, to incorporate in a money price, the amount of the imposts which may be exacted from him, he must not only suffer the jyartialy but the entire loss of the proportion of the impost not so incorporated in a money price*. The successive charges in respect of the public annuitant and capable poor, have at length affected the land in far more than the ordinary relative proportion. The mainte- nance of the clergy is derived, chiefly, direct from the land; the maintenance of the poor is derived, chiefly, direct from the land ; and the land contributes freely to the public revenue. The whole of these aggregated charges, is evidently, «oi now incorporated in a money jirice, and the proportion not so incorporated, is not only partial, hid entire loss to the cultivator'f. * See Appendix [C] p. 73. f By the words " cultivator** and " grower'* as used in this Tract, both landlord and tenant are to be understood. In a national view, the interest is one ; the division or distri- bution of profit or loss, between themselves, does not varj the general question. 17 Until the latter accumulations of the public debt, the increase of the class of public an- nuitants was followed by an advance in the money prices. The successive advances in mo- ney prices have had, even the semblance oi pros- perity / a rising market, rising in money price, although falling in effective value to the cul- tivator*, has been favourable to speculation ; markets /i«i-e been '^brisky each successive year, the farmer, in his returns, has counted more money, and if, working upon a lease, has really, at the expence of the proprietor of the farm, de- rived a benefit. These are circumstances which have perplexed and misled the country ; but it is in the nature of evil to work its own exposure, and it is not now possible to mis- take the character of a pubhc debt. The incapacity of the cultivator to advance the money prices of agricultural produce, or to maintain sufficient prices to effect the equal distribution of the latter imposition of annuities and the rates for the maintenance of * Falling in effective value to the cultivator, because the increase of the class of annuitants and of the poor, to be supported by the productive classes, of which, the landed is the chief class, necessarily leaves less for the support and maintenance of the productive classes. The alteration of money prices may lead to miscalculation, but cannot pre- vent that final effect. See p. 11, and following pages. D IS the poor, has for some time past been appa- rent. Legislative measures have, in conse- quence, been resorted to at a heavy sacrifice of the principles of public economy, without adequate effect. Further measures, similar in kind, and at a fresh expense of principle, are called for. On either hand distress pre- sents itself: to comply, is to sacrifice the land in the injury to manufacturing industry ; to refuse, is to leave the landed proprietor with- out hope. The crisis displays the effect of ar- tificial contrivances and of resilience from prin- ciple, in the most distinct and effective point of view. If it had been possible to have succeeded in finally eluding or counteracting the effects of a departure from first principles, the industry, the enterprize, the constancy, the ingenuity, the skill and the energy of the in- habitants of the British Isles wo-uld have been equal to the pui-pose. Religious and political government are in- dispensably necessary to the social condition, and the protection of the incapable poor is a duty of strict obligation. The charges inci- dent to a system constituted for such purposes, do not, necessarily, involve any dangerous or inconvenient consequences, and ought to be defrayed with chearfulness, as the price of in- calculable benefits. 19 The supply of income to the capitalist who Jnay prefer the security of all the landsy chat- tels, tmd productive power of the country, for the principal and interest oi money ; and the maintenance of the capable poor, who either will not or cannot find employment, on ike contrary, so far from conducing to the har- mony and power of the social body, must be contemplated, each in its kind, as involving the elements of destruction : and it is obvious, at the present moment, that these combined causes, have involved this nation of unexam- pled energy and power, in distress and em- barrassment, which exhibit her as the prey and victim of her own mighty exertions. The extent to which the principle objected to, of raising money for the public service by public annuities, has been <:arried* and again partially counteracted in its tendency and effect, by the industry, exertion, and spirit of the country ; is the admiration of the ■pre- sent, as it will be of future ages : but the force of the objectionable principle, evident- * It is not questioned, tliat principles of a higher nature, have been vindicated and protected, by means of the de- parture from first principles, in the levy of money for the public use. The positive consequences, however, of such departure from principle, are not, less properly, the subject of enquiry and exposition. i:) 2 20 ly, now predominates, and the very principle ought to be eradicated : not by violence, not suddenly, but by measures of a clear and decisive character, to be first fully understood .and cordially approved throughout the king- dom. The industry and exertion which have, hitherto, sustained the nation, would have pro- duced a glowing state of prosperity and a high and healthy state of action and of effective power and authority, if not checked, repelled, and prostrated by the more powerful influence of the public debt. The effect of the repeal of twenty-nine millions of duties and taxes, and eventually of fourteen millions more, cannot be estimated, as respects duties, by considering the amount, simply, of the gross produce of the duties to be repealed. The duty payable in money on most articles of general consumption, before delivery, ren- ders a vast increase of capital necessary to the merchant and manufacturer. A gallon of Bri- tish spirits is sold at fifteen shillings and six- pence ; the duty is eleven shillings, leaving four shillings and sixpence to cover the cost of the materials, expense of the process of ma- nufacture and gross profit. It may be com- 21 puted that the capital required by the distiller, in respect of the revenue, approaches to three parts in four of the whole capital employed. A gallon of foreign spirits is sold for twen- ty-four shillings; the duty included in that price, is eighteen shillings and ten-pence-half- penny. The importation price of a pound of tobacco varies between four-pence and eleven pence ; the duty on a pound of tobacco is four shillings*. The importer or first holder of any article whereon duty may be paid, in regulating the price to the dealer who buys of him, must calculate loss in quantity, and the interest of money and risk of debt, on the whole of the capital which he confides on credit ; and it appears that the risk of debt has increased, not only in the proportion of the greater sum to the lesser, but that the immher of insol- vents has greatly increased with the increase of duties and taxes, as well as the amount * These particulars are instanced, for the purpose of shewing the operation and effect of duties paid to the crown. The argument applies, generally, but especially to beer, salt leather, tea, pepper, and other articles of general consump- tion, as well as to the articles abovcmentioned See Appen- dix (D.) The consideration of duties, by xvny oj rcgu'uiion, is a question, quite distinct. Under that view, a duty on all spirits, may be desirable. of debt in respect of any specific quantity of goods. The hazards of business are so greatly increased, by the effect of the progressive, ge- neral, increase of duties and taxes, that it is become difficult to assign any rate of advance on goods delivered on credit, equal to the risk of debt. In consequence, large apparent profits are found unequal to the protection of the pro- perty of capitalists, who, to a deplorable ex- tent, have of late, sunk their capitals. The state of trade has baflfled the calculations of the most sagacious merchants, and retreat from business, has alone presented to great num- bers any hope of safety. If then, the effect of calling a sum of twenty shillings into hazardous activity by means of a duty, be traced from the importer or first holder, through a chain of dealers, to the consumer, and particularly to the poor con- sumer who purchases in small quantities, and the temptation to lower and adulterate the quality, acting upon the lower description of dealers, be considered ; it is not too much to assume, that consumers pay from twenty-five to thirty shillings, in respect of every twenty shillings collected by the government, on articles of leading consumption. Revenue which is raised by means of articles of con- sumption, is, therefore, onerous in an excessive deyree. The consumer pays, on the average, 23 at least twenty-five shillings for every twenty shillings paid to the crown on articles con- sumed by him ; and yet, merchants, manu- facturers and dealers, with few exceptions, are depressed. The attempt to raise revenue through the poor, or non-proprietor is delusive. What can the non-proprietor pay, unless he be capaci- tated by the proprietor ? and what is the effect of the attempt so to raise revenue ? Either the proprietor, directly or indirectly, capaci- tates the non-proprietor to pay the duties and taxes, or, he is called upon to contribute to his support under a parish rate. The artificer and labourer 7nust be sustained, and can only satisfy demand by means of what they, se- verally, receive. Twenty shillings paid by the proprietor direct to the cronm, are equal, in effective revenue, to, at least, twenty-five shil- ings paid in respect of duties, through the me- dium of articles of consumption ; and this ex- pensive mode of supply, if even the impost be paid by the hand of the lower class of con- sumers, is, in effect, paid in the highest degree of aggravation, by the proprietor. It will indeed be said, that the difference be- tween the sum received by the crown and the sum paid by the consumer, consists in the profits of trade or the profits of stock : but such is §4 not the fact. Articles of consuriiptioti of 'the descriptions which are subject to the laws of customs and excise, do not, for the most part, reach the consumer until passed through a chain consisting of not less than three or four links : namely ; The importer, Wholesale dealer. Shopkeeper or huckster. Or, The importer or dealer in materials for the manufacturer. Manufacturer, ' Wholesale dealer in manufactured goods. Shopkeeper or huckster. These several parties have to seek an in- demnity in respect of the advance of money, and the great increase of risk of loss by the insolvency of the parties to whom they respec- tively deliver goods on credit, and they will endeavour to combine some additional profit on sales, something to keep pace with the higher prices, which, in consequence of the revenue system, they are required to pay for the articles which they have occasion to purchase for their own use and consumption. It will not be assumed, that no part of the ad- vance upon the duties can be resolved into profit to the merchant or dealer 5 but the state and condition of tlie merchant and dealer, are evidence that the additional profit is not equal to the increased expenses of living ; smce a mass of insolvency con- stantly presses upon the attention of most persons engaged in trade or busmess. In truth, great part of the several and successive advances upon the original amount of duties, made by the respective parties through whose hands the goods pass, from the first to the last in the chain of dealing, are so many premiums of insurance on the hazardous risk which each, excepting the dealer for ready money, incurs, and which premium, has too often been found unequal to the risk. The whole sum of advance on the duties, may be divided between the great and often repeated risk of debt, loss in quantity, interest of money, and the greater profit required by each dealer through whose hands the goods may pass, for his maintenance and support : but the greater proportion may be resolved into risk of debt J certainly, with few exceptions, not any part, into the means of acquiring pro- perty or of living better. If only twenty-five per cent, be added to meet these advances, the repeal of duties amounting to twenty-nine millions, would, in effect, be the removal of burthen from the £ 2G public, to the extent of, at least, thirty-six roiliions*. The effect of this vast extent of relief, could not fail to be so felt by every description of proprietor, as to render the proposed liquida- tion of the debt, a measure not only desirable in the highest degree, in which any object of social interest can be desirable, but of great practical facility : for the more distinct view and evidence of which, the several classes of proprietors will be considered, separately, in the order already statedf. The cultivator of the soil is the first and the last object of legislation, and the distress of the cultivator is the pressing and immediate ground for desiring the liquidation * If any part of the repeal should fall upon a descrip- tion of revenue not embraced by the customs or excise, the calculation must be reduced accordingly. But, if the assessed taxes, for instance, were to be repealed ; the simple amount of the taxes would be the amount of the public re- lief, in that respect. The repeal of duties^ would be the repeal, in effect, not only of the amount of duties, but of all the advances thereon paid by th'e consumer. t P. 5. 27 of the public debt ; the proteetion and en., coiiragement of the cultivator, are the com- manding reasons for prosecuting that object to the final extinction of the debt The security of the cultivator is a principal ground upon which national loans are objectionable, and the assurance to the cultivator of a li- beral return, is the first object to be proposed in the remission of duties and taxes. If, for instance, it be supposed that ten shillings for the bushel of wheat, and rateably for other grain, be necessary to the adequate compensation of the grower, and that the price of wheat be eight shillings only, for the bushel, and rateably for other grain : in this case, the earliest measures ought to embrace relief to the cultivator, equal to two shillings in the production of a bushel of wheat, ?ind rateably as to all other grain ; that is to say, before the reduction of the price of grain** The sum to be contributed by the proprie- tors of the cultivated lands of England and Wales, is estimated at one hundred and twelve * The illustration is limited to grain, because the insuf' ficiency of price is felt, principally, in respect of grain, but it may be carried further, at the will and according to the information and judgment of the reader. E 2 $8 millions and a half, or five millions six hundred and twenty-five thousand pounds annually*. The immediate or early beneficial remlls, to be anticipated by the landed proprietor, are, The conversion of a nominafy into a real rent. The great reduction in respect of personal and domestic expenditure. The deprivation of excuse to the employed peasant, for application for parish or public assistance. The opportunity of obtaining relief from the burthen of maintaining the un- employed capable poorf. Under this view, it is difficult, if not impos- sible to suppose any case, in which an English estate would be exposed to difficulty, as a con- sequence of the proposed impost. If the proprietor possess the means, either as a public annuitant, or otherwise, without having recourse to his landed property, of paying the principal sum assessed; his estate may be reKeved, the country be relieved, and an equal amount of the public debt be extinguished for ever, with simplicity and ease.^ If the proprietor do not possess such means, but.be limited to the means which his estate, * P. 8. t Sec Appendix (E.) p. 7^. 9^^ alone, presents for the payment of the sum assessed, or the interest thereon; he will pay the interest on the amount of the assessment, until convenient to pay the principal sum. The lands of England are, now, declining in power to yield rent: and if the consideration be limited to the farmer being enabled to pay the present nominal rent; sufficient induce- ment and facility are presented for the pay- ment by the proprietor, of the interest on the amount of the proposed assessment: and to this consideration are to be added the great re- duction in personal and domestic expendilure, and the anticipated reduction in parish rates. If an estate be let for £1000 per annum, and be valued at £25,000, or twenty-five years purchase ; the principal sum assessed would be £3750, or annually, one hundred and eighty-seven pounds ten shillings. In the present state and progi'ess of affairs, what premium would assure the payment of the rent ? Is it to be conceived that taking the average of all England, the payment of the rents could be assured at a premium of twenty per cent.? And if paid, and again expended, what proportion is expended in parish rates, and indirectly, through the medium of consumption, to the revenue ? These questions cannot be accurately an- swered-; but the advantages to the proprie^ tor are too obvious to admit any ques- tion of difficulty in this case. It is not only fair to calculate that the proprietor would be enabled to pa}^ the annual interest on the as- sessment, but probably, would further, be en- abled to reduce and eventually to complete the payment of the principal sum assessed, by means of annual accumulation, without alter- ing his scale of living. If it be supposed that the estate be under mortgage, the adoption of the measure be- comes the object of more anxious desire. In the instance of an estate worth £60,000, under mortgage for £40,000; the great effect of the incidental relief would be experienced by the mortgager. Upon him, the effect of the ear- lier deficiencies of rent would fall, over him the risk of foreclosure and sale (through his ina- bility arising from the nonpayment of rent) impends J the relief in respect of the whole estate, is the relief of the proprietor, and the relief in respect of his personal or individual ex- penditure, is, also, proper to himself. The price ofthat great range of benefit, so long as the mort- gage continue, must be borne to the extent of two thirds, by the mortgagee. The whole class of property under mortgage, would therefore, be assisted and relieved in a peculiar and unex- 31 pected manner. It is not possible that objec- tion or difficulty can arise on the part of this description of proprietor. And the mortgagee would have sufficient motive for the chearful payment of the con- tribution to be required of him, if he expend the income of the mortgage within the kingdom, in the great relief which he would experience in the removal of the general burthens. If the mortgagee do not expend the income of the mortgage within the kingdom, or do not ex- pend it any where, the advantage of the mea- sure must be seen still more forcibly, in the subjection to contribution of a class of persons, who would, otherwise, receive large advantages under the social compact, without making any social return*. It would of course be necessary that provi- sion should be made in respect of entailed and settled property, as in the instance of the re- demption of the land tax. The sum to be contributed by the proprietors of the cultivated lands of Scotland is twenty- two millions and a half, or annually, one mil- * The mortgagee, might perhaps, attempt to throw the whole of the contribution upon the proprietor, which if ne- cessary might be guarded against by legislative provision. Sec Property Act, 4-6 Geo. III. c. Q5. ^ 195. .12 lion one hundred and twent3 -fiye thousand pounds*. By the proprietors of the cultivated lands of Ireland forty-five millions, or annually, two millions two hundred and fifty thousand pounds t, and excepting relief from the charge of maintaining the poor, the considerations which have been suggested with reference to the proprietor of the cultivated lands of Eng- land and Wales, apply in like manner to the proprietor of the cultivated lands of Scotland and Ireland. And the same considerations, excepting as to some points of detail in respect of minerals and timber, apply to the tithes belonging to the laity, to mines, minerals, canals, tolls, timber and fisheries; the collective assessment where- on is estimated at thirty-two millions two hundred and fifty thousand pounds, or annu- ally, one million six hundred and twelve thou- sand five hundred pounds. And also to dwelling houses, the assessment whereon is estimated at fifty-one millions, or annually, two millions five hundred and fifty thousand pounds. The principal of these several sums, which amount to tmo hundred and sixty-three millions * P. 8. t Ibid. 33 two hundred and fifty thousand poiimh^ , would be redeemable, with only trifliny exception, at the ivill of the proprietor^. The assessment on agricultural live and dead stock, fs estimated at thirty-tour millions and a half. The want of securitj^ in the substance of this branch of assessment, renders the ac- commodation to be proffered to the owner of fixed property, impracticable, and conse- quently, renders necessary somewhat more of pressure in the levy of the assessment. It is not, however, apprehended that a claim after the rate of three per cent, per annum, for five successive years, on the amount of agri- cultural stock, and the interest of five per cent, per annum, until paid, would be found, to press with undue or extreme severity, since^ it would be preceded by the relief incident to the discontinuance of a larye proportion of the pre- sent imposts, the great burthen and weiyht of which cause the distress of the agricidtural classX- It may fairly be considered, that the state and condition of the farmer would be retriev- * P. 5. \ Should it be observed that the stockholder would be left in uncertainty as to the time of payment, it is to be con- sidered that stock would continue to be the subject of trans* fer and sale until finally paid and discharged. J Suppose the stock to be assessed at the value of ,£2000 ; F 34 ed by the restoration of the country to ani- mation and vigour, and that less capital would be required for his purposes, under the change contemplated. The assessment on commercial property, in- cluding steam engines and other machinery, manufactured goods and goods in process of manufacture, foreign merchandize deposited in warehouses, either paid for, or virtually paid for, by debts owing to this country by foreigners, and British shipping, is stated, collectively, at forty millions and fifty thoU' sand pounds. It would, of course, be a nice and delicate duty to fix the assess- ment, in detail, upon this class of property : some uneasiness and some evasion are to be the sum to be paid for the first year would be c£'60 and interest on 300/. for one year 1 5 — 75 Second year - - - - - 60 and interest on 240/. for one year 12—72 Third year 60 and interest on 180/. for one year 9 — 69 Fourth year - - - - - 60 and interest on 120/. for one year 6 — 66 Fifth year 60 and interest on 60/. for one year S — 63 If collected half-yearly, the statement would vary accord- ingly. The various relief to a farmer holding 200 acres of land, could not fail, during a course of five years, to be far more than equal to this claim. The relief in parish rates only, might, in frequent instances, be expected, to greater extent. Sb appreheinded : but the amount, relatively to the whole sum of the assessment , is not very consi- derable j every individual of respectable mind, for such an object, would honourably and freely disclose the value of his property, and commissioners, judiciously selected for the re- gulation of the assessment, would so conduct a delicate and important trust, as to involve the lowest probability of injustice, either to the individual or the country, and would pre- vent, as far as possible, every inconvenience in point of feeling. The want of security in the substance of this branch of assessment, as in the instance of agricultural stock, renders the accommodation to be proffered to the owner of the land and other fixed property, impracticable ; but, with the exception of the buildings and machinery, this class of pro- perty would in yeneral"^ admit, with great fa- cility, the payment of three per cent, per an- num on the amount of capital for five successive years, and of the interest of five per cent, on the amount of the assessment until paid, be- cause the considerable reduction of duties and rates contemplated, would enable the merchant and trader to conduct the same * Particular cases of inconvenience or difficulty, would of course^ be the subject of coasideration and arrangement with the commissioners. F 2 36 extent of business, with a reduced capital ; and the effect of the rehef in their several expenses of establishment, both commer- cial and domestic, would also reduce their occasions for capital. The assessment would not, in any year, exceed nine millions: if the whole of the public imposts to be remitted, were to be resolved into duties, the amount of duties to be repealed would exceed twenty- nine millions. The assessment on domestic property is estimated at thirty-seven millions two hundred thousand pounds. This assessment would be divided generally and under the advantage of the effect of the great remission of duties and rates, the payment of three per cent, per annum on the amount of this pro- perty, for five successive years, and of the in- terest of five per cent, on the amount of the assessment, until paid, might unquestionably be met, and ought, with chearfulness, to be contributed, by all who are subject to the ge- neral range of duties, taxes and rates. The principal of these several sums, to be re- deemed in five successive years, is one hundred mid eleven millions seven hundred and fifty thou- sand pounds, and together with the sum of two hundred and sixty -three millions two hundred and fifty thousand loounds, the particulars of 37 which have already been considered*, presents the consideration of the whole of the assessment of 375 millions on the land and effects within the United Kingdom^. Under what head, then, to what class of pro- perty or proprietor, is difficulty to be assigned in the operation of the measure proposed for the liquidation of the Public Debt? The actual difficulties of the country are felt by the strongest minds, with a deep conviction of their severity, and the keenest apprehension of consequences. But what consequence, to which the epithet " difficult" ought to be ap- plied in respect of a great national object, can be apprehended, either to the collective body, or to any individual, from the measure under consideration ? The stockholder who does not expend the annual produce of his stock, or who expends his income from stock in another country, escapes from the burthens and out of all sym- pathy with the distresses of the country. The landed proprietor who expends in another country, the rent which he may receive, or who invests his rent in the purchase of government • P. 33. f P. 5. as annuities*, also avoids the national burthens, in respect of expenditure, but not in respect of property. The national imposts continue to bear upon his land. With these excep- tions, the proprietor, including the public ere ditor himself, is, ia effect, debtor to the public creditor: the property is inirthened with the debt, and it is not possible, without adding to the class of exceptions already mentioned, to pre•^ vent the individual consequences. The bur- then cannot, by any ingenuity, be removed to the non-proprietor : the non-proprietor may be oppressed, may be incapacitated, in the at- tempt to divide the burthen with him, but the re-action from his distress is felt in the accumulation of burthen on the pro- prietor : the activity and the comfort, the exer' tiou and the actual consumption of the non- proprietor, are the stay and invigoration of property ; his decline is the decline of the proprietor. Every impost upon the consump- tion of the lower classes, every check to in- dustry, lowers the active energy which gives value to property, and tends to repress the sense of independence, wh'ch is the foundation and only sure protection of moral worth. * Thereby replacing the capital of stockliolders, who may invest such capital in another country. 89 Comprehensively considered, the proprietor, including the stock holder, pays the pub- lic annuities, sustains the burthen of the sink- ing fund, so far as it is sustained; endures the heavy burthen of expense incident to the at- tempt to manage the unwieldy system, sup- ports a large proportion of the population in a state of vice and wretchedness, and in the result, property is reduced, by the mere effect of an artificial system, particularly the land, to a condition of great difficulty and embarrassment. And yet, what is more demonstrable than that the British Empire contains within itself mind and matter, in almost every variety of character and combination, necessary to in- dividual and public prosperity ? The strength and force of character which British seamen and British soldiers have every where dis- played, are evinced, daily, in the constancy and firmness with which the vast masses and combinations of machinery are worked and conducted: moral courage and fortitude of spirit, are as necessary in the arduous pur- suits of industry, as on the ocean or in the field. The inventions and arrange- ments of the spinner and manufacturer, which, under penalty of ruin, must be strict- ly practical, are the results of the most severe and anxious exertions of ingenui- 40 ty. The nobility and gentry are the pa- trons and example in the first of human pursuits, the culture of the soil. The em- pire is perfect, or nearly so, in the pos- session of most of the varieties of climate and soil, and presents, within itself, the means of extensive interchange in nearly all the varieties of natural and artificial productions. Each member and division of the empire is a market for the natural productions, and for the products of the skill and industry, peculiar to EACH. It is not, therefore, to be doubted, that the landed proprietor of this great and favoured nation is entitled to a liberal return from his property, and that he would receive such re-> turn, if artificial causes did not intervene and embarrass. The spindle, the loom and the anvil, are constructed and are employed, with a view to the immediate benefit of those who render them active; but the permanent and most desirable effects of these branches of national industry and exertion, are experienced by the landed proprietor. The landed proprietor has been a great example to his tenant, and by his enterprize and judgment, and attention to the economy of his neighbourhood, has contri- buted his fair contingent to the demands of 41 the country; but the consideration of the in- vention and labour of the machinist and ma nufacturer solve the problem of the financial resource and power of the nation during the late contest J and the same fertility of invention and habits of labour, unfettered by artificial public arrangements, and unembarrassed by a popidation, excessive, 7vilh reference to the de- mand for labour, would be powerfully instru- mental in conveying to the landed proprietor, and to all who are dependent upon and con- nected with him, the full compensation to which, each, in his degree is entitled. If the proposed measure should be adopted, the following may be considered as its opera- tive course. The sinking fund would immediately cease, together with the train of chafges incident to that arrangement. The amount proposed to be ap- plied to that fund*, is ... . 5,000,000 Fifteen per cent, on the amount of annuities and interest, payable in respect of the public debt, de- ducting the amount supposed to be payable to foreigners would like- wise cease, beingf 4,400,000 • Finance Resolutions of tlie House of Commons. 1819. t EUments of a Plao, Sec. Table, p. 2C. 42 Brought forward . . . .^9,400,000' And also, Fifteen per cent, on public ap- pointments, estimated, together with the decline in the price of stores for the public service incident to the reduction of duties, at* . . . . 4,000,000 13,400,000 In round nxxmherSy gross revenue, fourteen millions per annum, for which there would not be any fur- ther demand. It is not stated that fourteen millions would be required from all, or any part of the com- munity, in any other form. The country would be absolutely released from demand for duties, or for duties and taxes, to the amount of four- teen millions annually, upon the condition that a further sum, namely, fifteen millions duties or duties and taxes should be commuted for a pro- perty tax, redeemable at option in respectoftvvo hundred and sixty-three millions two hundred and fifty thousand pounds f, and redeemable * The revenue required for the current service is twenty- two millions. Fifteen per cent, whereon, is 3,300,000 Add for further anticipated reduction in price of stores 700,00 t P. 33. 4S compulsoriiy, in five successive years, in respect of one hundred and eleven millions seven hun- dred and fifty thousand pounds*, and that the public creditorshoiild relinquish an annual claim of four millions four hundred thousand pounds. Upon the commutation of fifteen millions annual duties, or duties and taxes, for a direct redeemable property-tax of equal amount, and the remission of claim, at the rate of fifteen per cent, by the public creditor, not only such fifteen millions duties, or duties and taxes might be repealed, but also, fourteen millions duties, or duties and taxes, more^ which in such case would cease to be i^equired; together, twenty-nine njillions. It has been shewn f that the duties of customs and excise carry a train of immediate consequences into trade, which force up the the amount paid for duties to, at least, twenty- five per cent, advance to the consumeVy on the sum j)aid to the customs or excise hoards and that the remission of duties to the extent of twenty-nine millions would, therefore, be relief to the country from the burthen of, at least, thirty-six millionsj ; and that great sum of relief, would precede the levy of the sum of fifteen millions^. « P. 36. t pp. 20, 26. X p. 25. § The burthen of thirty-six millions is notu to be sustained, without the advantage of any beneficial re action, in respect of G 2 44 It will probably be observed, that the pre-r ceding statement is defective, because the new taxes, 1819, are understood not to have been productive, to the e:j^tent of three millions, and because the revenue may be deficient, in other respects. It may be replied: that, if the new duties on tea, coffee, pepper and other articles, have not been productive to the extent calculated, the reduction of the rate of duty, would not be the less felt by the actual consumer ; and if the actual produce of the revenue for the current year, should not admit of the application of five millions to the sinking fund, it is to be considered that the claims upon the country remain the same, and that the greater the defi- ciency of revenue, the greater the necessity of adopting a system by which, upon principle, the claims upon the country may be reduced. The revenue which vvould, apparently, be required, after the application of the principal contribution of fifteen per cent, on property, (continuing tp estirnate that contribution at British income expended in foreign countries or in respect of British income, which may be the subject of annual ac* cumulation. The proposed contribution would be paid by all persons entitled to British income. The difference of dis* trihution of the burthen of the sutp tp be contributed by way of contribution, is, therefore, to be considered, as well as the vetluced amount to be required. 45 the amount already assumed) would be as fol- lows : Nelt revenue required to pay the dividends on remaining stock and annuities for lives and for terms of years* . 13 MilUotiB, Present amount of nett revenue required for current Millions, service f 22 Allow for reductioR of fif- teen per cent and reduced price of stores J ..... 4 — 18 Millions.. Total nett revenue to be required j 31 Millions- This sum of thirty-one millions would not be increased, whatever may be the deficiency of public income iipon the present system, but would be subject to reduction by the gra- dual and final extinction of the amount of stock, 350 millions, and annuities for lives and for terms of years, one million eight hun- dred thousand pounds§, in respect of which, * P. 3. — Wherein the sum mentioned of li millions, is grosSf equal to 13 millions ne/f. f Finance Accounts for the year ended 5th Jan. 1819. t P. 42. § Elements of a Plan for the Liquidation of the Public Debt, p. l^. Annuities for £"129.953 12*. id. created in 1795, expired on the 1st May, 1819: since the date of the account cited therein. 46 the annual sum of thirteen milhons is entered m the statement. The means suggested for this purpose, are^ an impost on British Colonial and Asiatic pro- perty for a term of years to be limited, so far as such property can be subjected thereto j in; effect, an income tax. The appropriation of any eventual surplus of taxes. The amount of stock which may for ever iremain unclaimed. The probable greater amount of the private property, than 2.300 millions. The expiration of annuities for lives or for terms of years*. The impost on Colonial and Asiatic property, would be in immediate effect, in respect of property consigned and remitted to this coun- try. The excess of duties and taxes, would also be effective, if the duties and taxes, according to the present rate of production, should be * Tt is also suggested, Elements of a Plan, &c. p. 19, tl)at the impost of 15 per cent, might be continued in re- spect of property to (ir acquired uithin the United Kingdom* after the deduction of all expenditure, until the final liquida- toon of the debt, but it does not appear to be probable that Kccourse to that measure would become necessary. 47 fixed at thirty-one millions, as proposed in the statement: in proportion as the demand in re* spect of the sum of thirteen millions therein mentioned, might decline by the progressive iiqiiidation of the debt, an excess of revenue would arise. That excess would also be greatii/ increased by the greater produce of the continuing duties and taxes, and a large and progressively increasing surplus wouki become applicable to the liquidation of the remaining debt. In order not to incur the risk of stating the figures too favourabl}^ the «um of thirteen millions is stated at upwards of half a million more than the probable sum to be required, for the payment of the public creditor. The excess, if not required by the public creditor, would become applica- ble to the discharge of the principal debt, and the increasing surplus would be applied in like manner. As the debt might be reduced, and as the continuing duties and taxes might be- come more productive, in like proportion would the remaining debt yield to the force of this combined action. If the d'ebt should at any time be reduced to ten millions per annum, and the duties and taxes (now estimated at thirty-one millions) should produce thirty-four millions, which is an advance of ten per cent, only, for improved circumstances ; the sum up])li(;able, 48 m this case, to the reduction of the debt, from this source, would be six millions, and in the following year would be more, because the amount of the dividends on stock would be less. The effective power of liquidating the debt, under this head, would be considerable. The amount of stock which may remain for ever unclaimed, would constitute a further annual sum in reduction of the amount of stock, in respect of which dividends would be payable, and under the great actual reduction of the debt, and the progression towards the li- quidation of the whole debt, it might be consider- ed justifiable, not to continue to issue dividends from the Exchequer to the Bank of England, in respect of stock whereon the dividend re- mained unclaimed for three successive issues : such dividends, when claimed, might become the subject of notice one month before a half- yearly issue, and then be issued from the Ex^ chequer accordingly. The contribution of fifteen per cent, on the probable greater amount of private property in the United Kingdom than 2,500 millions, cannot be relied or insisted upon as a resource : but persons of considerable information and j^espectable judgment, are of opinion, that the private property exceeds that sum very con- siderably ; the assessment of fifteen per cent. 49 OH the excess, if any, would accelerate the discharge of the remaining debt. Of the annuities for lives and for terms of years, amounting to one million eight hun- dred thousand pounds, one million three hun- dred and fifty thousand pounds will expire in the year I860. The relief under this head, if not rapid, is certain. In considering the operation of the measure, two particulars press upon the attention. First — The care and protection due to the holders of goods, whereon the duty may have been paid. Second — The sufficient advancement of the object, to assure the receipt into the Ex- chequer, of the equivalent from property for the sum of fifteen millions, duties, or duties and taxes, to be remitted, before the operative repeal thereof. The first particular might be met, by not giving effect to the repeal of the duties until, at least, three months after the enactment of the repeal, and by returning the duty on the stock remaining on hand at the expiratiqn of such- time. The second must depend upon the activity with which the assessment on property might be fixed; for which purpose the extensive in- formation and experience of the government, H 50 in the instance of the property -tax, must pre- sent great facilities. The rate or price of stock to be fixed for the liquidation of the debt, has been the subject of much animadversion and discussion. The question is important, and undoubtedly, admits of two views ; namely, The mere construction of the letter of the contract. The application of the principle of equaliz- ing the burthen of liquidating the debt, upon every description of proprietor, with only a limited regard to the contract rights of the stockholder. Under the first view, all stock would settle at the par of 100. The debt funded in the several stocks is . . . * 797,401,119 10^ Deduct for foreign pro- prietors 15,000,000 782,401,119 10| Deduct Contribution of 15 per tt. 117,860,167 17 1 Principal sum to be re- deemed, at the par of 100 £.665,040,951 3 9i * Elements of a Plan for the Liquidation of the Public, Debt, Table p. 2n. ■ 51 Under the second view, before any rate of price for three per cent, and other low stock be fixed, it is necessary to consider, that these stocks pay less annual interest for the money laid out, than five per cent, stock ; and that the holders have elected to compound for less income, because they have calculated upon a superior chance of improvement in their principal, by the probabiUty of greater ad- vance upon the lower stocks, than upon the five per cent, stock. The holders have deliberate- ly and really, made a sacrifice of present ad-' vantage, upon the calculation (founded on the contract) of the great room for advance on the lower stocks, between the cost of the stock SLud the principal stock created. It can only, therefore, be considered rea- sonable, upon the view now under considera- tion, to allow an advance or bonus, upon the lower stocks, and to take five per cent, stock at a market price. Taking then*, the price of, 3 per cent, stock at £.6ei—£lOO laid out in the purchase of this stock, will produce, per annum 4 7 7 Si per cent, at £.n^—£.100m\\ produce . 4 10 4 4 per cent. . 88^— 100 4 10 8 5 per cent. . I04i— 100 .... . 4 15 5 * March, 1820. h2 62 If £.3. 10s. be added to the three per cent, stock, in consideration of the difference of income to be derived from £.100 laid out in three per cent, stock, and £.100 laid out in five per cent, stock, being seven shiUings and ten-pence per cent, per annum; the price will be advanced to ^.72. And, adding after the same rate of compen- sation, in proportion to the difference of in^ come produced by the other low stocks, re- spectively, as compared with five per cent, stock; the prices will stand thus^ 3| per cent, stock will he advanced to 79 15 5 4 per cent 90 7 5, The application of these figures, to the liqui<; dation of the debt, is shewn as follows ^ 53 ties . 4 per c 5 per c 03 "-J Amoun cent. Deduct prop rt) rD 2. «^ in 5' C3 3 p o • JO 3 « o^S. OS •-J 2". O c« « • • :3 . 2 fc "^ 3 O Q- • ^0,-5 3 ?? ^ 1 •1 "1_ J3 CD O ^ !1^ ^ "f^ 00 Or O 00 h- OS Ox 03 > o c ;^ rfs- 00 to '^ *^ j-5 ■ •"* p • O^ ^ 1^ to to 00 o« Ot ? "-3 2 2 ^ 00 O^ ^3 03 w 3 3 o o O CO 03 t— 1 — 1 P P P ■♦tw P 4vlM 1 C 'T3 S- r<- c^ Ci O CO -5 i® 1 •13 4>- O CO %. s* 't C;\ ^ O 1—-; O a a' © Ot Ot :5* «-• » 2 it> . J^ J^ Or OS 4^ CO to O^ C:> 03 02> 4i- CO 0» QO — "• v» ». vJ® "oi'o . 00 o» 05^ H- 03 ^ 54 By the adoption of this latter view, the dif- ference, or greater facility in liquidating the debt, is one hundred and thirty millions. The first mentioned, and least favourable ■view has been adopted, for the purpose of raising the question of the liquidation of the debt for public consideration, because the contract as it stands, prescribes that mode of statement, and because the result from that principle of statement is free from the pos- sibility of misleading the reader by a specu- lative or too sanguine view of the proposed measure. The objections which have been urged to the application of this principle are forcible, and without presuming to speak in terms of decision, upon a question which is peculiarly a question for the arbitrament and decision of the legislature, the following considerations are submitted. In support . of the principle of taking nU stock at the par of 100, it may be considered : That the stockholder is entitled to all the chances of benefit which may flow to him finder the letter of his contract. That his annuitj^ is perpetual, unless voluntarily surren- dered in the market, at the price of the day, as in every instance of purchase by the; com- missioners for-the x'edeniption .of the national debt, or unless otherwise disposed of by con- sent, or redeemed at the price of 100. That stock has been raised or created, by inscrip- tion on the national books in the Bank of EngUvnd, for one hundred pounds, in favour of the stockholder, as the condition upon which a sum of money has been advanced for the service of the state, and that he has incurred the chances of decline of market, and of ultimate loss J and if only vipon that ground, cannot be justly deprived of the advantage of any favour- able contingency. In support of the principle of valuing stock at a market price, it may be stated : That the question cannot be fairly consi- dered, under an abstract, special or partial view: that it is, peculiarly, a question to be decided upon an enlarged and liberal view, and to be governed by the rule, which, in the application, would approach the nearest to the equalization of the charge of liquidating the debt upon every class of proprietor. That the distribution of this charge w^ould not be equal, if the stock-holder, in relinquish ing fifteen per cent, of his income from the state, were, at the same time, to be allowed an increase upon the principal, excepting as already proposed, in respect of the inferior income derived from money laid out in the purchase of the lower stocks. 55 I'hat the measure under contemplation, h Hot to be considered as a circumstance upow which the stock-holder can have calculated, either at the time of contract with the state, of at the time of purchase in the market. That the loans which have been made to the state, have been made, chiefly, in a very reduced currency, and that the repayment would be made in a currency in progress towards restoration. That the contemplated measure has for its object, the advantage of every description of proprietor, by means of a common exertionv That it does not admit of being controlled into any other than a course of equal contri- bution, and consequently, does not admit the recognition of an arrangement, which would not only disturb the principle of equal contribu- tion, but would convert, by means of the mea- sure itself^ the name of a contribution into a sub- stantial and extensive benefit to the exclusive advantage of one large class, and to the great, relative, loss and prejudice of every other class of proprietor. The duties, or duties and taxes to be re- pealed, in the first instance, in the event of the latter principle being adopted, would be encreased from twenty-nine to thirty -three mil- Jions, and the remainder of stock unliqui- 67 dated, would be two hundred and twenty mil- lions only, and not three hundred and fifty millions as previously stated*, and the nett "revenue required to pay tlio dividends on re- maining stock and annuities for lives and for *erms of years, would be reduced from thirteen «iillionst ^o nine millions. Notwithstanding the unconquerable objec-. •tion, in principle, to the system of burthening a whole people with the obligation, in respect of advances of money, to pay an annuity to an individual, and without, in any manner, de- clining from the consideration of the poli- tical and moral evils inseparable from that sys- tem, it is indispensable to a correct view of the British system of public annuities, to em- brace the situation of persons who may be so incorporated in the system, as not to admit of disengagement, without some approach to- wards violence and injustice, if a zealous feeling should arise in respect of the liquida- tion of the public debt of the United Kingdom, * P. A5. t IIs'^- 58 it may fairly be hoped and expected, thci-t that feeling will flow from the perception of the political, and more especially, from a sense of the moral ills, of which the system of debt is the parent. Persons thus actuated will not permity so far as may depend upon them, the eradication of an existing evil, by evil means^. Better endure the ill that has come upon us, than be, ourselves, the authors and instruments of ill. It is therefore expedient, if only for the accommodation of persons who ma:y have relied upon the public exertion for their in^ come, not to break down the entire system of debt, suddenly. How long some accommo- dation, in the way of the public security for money, should or might be continued, under any circumstances, it cannot now be neces sary to define. If the country were in a state not to require the accession of new annuitants^ with reference to the public interests, the na- tional security, undoubtedly, ought to be with- held from fresh applicants. The actual annui- tant, v/ould alone remain to be considered : his convenience would command respect and attention, and a remainder of stock, although in train of gradual and early liquidation, would afford the means of consideration in this respect. But i* need not be apprehended that this ccmntiy of enterprize and .resource, would cease, for a very considerable length of time to come, if ever, to afford security for money not employed by the capit^^li^t. If the nation were relieved fiNDm debt, and the intention were entertained to strengthen the means of private security, such security would be found. At present, excepting the Bank of England, and the privileged banks of Scotland and Ireland, the law authoritatively interposes to preyent the uriion of more than six persons, for banking purposes*. Provincial banks, al- though thus restricted, are banks of deposite for money at interest, to considerable extent ; and if individuals were permitted to embody themselves in sufficient numbers to fully assure the ^public mind, the confidence may be rea- sonably entertained, that unquestionable se- curity would be obtainable for deposites of money, at a moderate rate of intere^st, without the guarantee of the government. Tbe insti- tution of a bank or banl^s of deposite, sup- posing government security to be discontinued, -would become the object of general a,ttention and desire, and if formed and conducted upon * 8 & 9 Wm. III. c. 20. § 28. 6 Ann. c. 22; j 9. 12 00 sound and enlarged principles, would be effec- tual to great and important ends. In particu- lar, the supposed difficulty with reference to persons to whom capital might be paid in re- spect of stock, would be removed, and great facilities might arise in respect of persons desiring to borrow money on security*. The great and paramount object of liqui- dating, the public debt, is again proposed to public attention and examination, with great deference and submission to the enlightened and powerful judgment of the British Nation, The interests which are embraced by the ques- tion are various and extensive, and every re- solve on the subject, whether to act or to for- * See Appendix [F.] p. 94. ' Various objections to the proposal for the liquidation of the public debt, contained in the *♦ Elements of a Plan," &c. are very ably urged in Blackwood's Edinburgh Magazine for January, and in the Edinburgh Monthli/ Review, for Fe- bruary 1820. The writers are actuated, evidently, by a candid, liberjal^ «id public spirit, and the author acknowledges the conside- ration with which hi§ labours are treated. He has endea- voured to render the answer contained or implied in the text, in respect of these objections, complete, by the observa-. tions in Appendix [G.] p. 103. 61 hear^ involves consequences of the deepest im- portance. But, however various and impor- tant the bearings and details may be, the question, in common with all other questions of conduct, admits of being simphfied and resolved into principle. Thus simplified and reduced, the liquidation of the public debt cannot fail to be the object of anxious and general desire. The time and modes of action, can alone remain for deliberation. If de- parture from first principles, unless corrected, be inevitably fatal to the individual, the most awful consequences are to be apprehended, from a departure from principle, in the af- fairs of states. History is a continued illusr t rat ion of this observation ; and it is difRcuU to imagine a wider deviation from principle, than a system of public annuities presents, or, to conceive a state of society, more preg- nant with evidence of the ill effects flowing from a public debt, than the actuajl state of the United Kingdom. THE END. APPENDIX. (A. Pages.) IT is not probable that the body politic, even on the supposition of the complete isolation of the United Kingdom, would adjust itself hap- pily, to the condition of an extensive and eur creasing class of public annuitants: the existence x)f such a class cf perso}is, does not appeal- to be recognis:€d hy, nor reconciieable, to, any original principle in the constitution of society. The relation of the Sovereign or other chief to th« community, is w^ell un'derstoodj this relation, which is indispensable to the -so- cial condition, cannot be maintained, without a .contribution, which contribution ought to be made by all the members of the community, possessing the means of contribution -, but it never ought to be argued that this expence, is, in itself a good, that it becomes national wealth, because the money so contributed, is again 63 ^xpetided, by means of the personage who is thus enabled to become the best customer of the manufacturer and artificer : And it is so ar^ gued by persons who contend that taxation, as such, is of beneficial operation. The cultivator and manufacturer might pro^ duce as much corn and cattle, and as many woollen and cotton fabrics, and articles of arti- ficery, without, as with this expense, and pro- ducing the same quantity, each would have the power of controlling into his own possession, an additional quantity of the commodities Which each might desire, in exchange for his own productions, equal to the extent of the commodities now controlled into the posses- sion of the Sovereign. It may indeed be said, that the cultivator and manufacturer would be less industrious, if not thus called upon to contribute to the support of the Sovereign; but the taste for comforts and luxuries, and the disposition to labour and enterprize, are too general and too habitual in this country, to allow any force to the observation. It is not to be argued that the guardian- ship of the Sovereign is not desirable, but that the charge of his maintenance is ex- Jjence, and does not create additional wealth by means of the peculiar circulation of money to which the appointment gives occasion. 64 The same course of argument applies to the officers of government and to the national clergy. But 7ioi to the public annuitant, who is of an order or class 7wt necessary, if he can be satis- fied by the liquidation of his claim. He does notstand inany order of social relation, except- ing the strange relation of an individual member of a community, having the rights of a creditor, holding in mortgage all the lands, chattels, and productive power of the country. The office of Sovereign is necessary, and the relation is in its nature and character, pa- ternal, protective and endearing. The office of the ministers of religion is paternal and peculiarly endearing. The relation of landlord to tenant is in it's nature and character, patriarchal. The relation of the cultivator of the land to the manufacturer and artificer, is established in reciprocal service, and when properly con- ducted, produces mutual good-will. The relation of the individual lender and borrower of money at interest, is founded on a compact, having for its basis, the communi- cation by the lender of the means of power, by the exertion of which the borrower hopes to acquire an equivalent, at least, to his obli- gationin respect of interest to the lender. — If 65 to be employed in trade, manufactures, of agriculture, it is in principle, an agreement to divide profit. The relation of the pauper poor to the rich, is the relation of the weak to the powerful. But, the public annuitant is free from all necessary reciprocation of duty and reciprocity of relation j he, like the Sovereign, is sustained by all the members of the community; but, unlike the Sovereign, he is free from the obliga- tions of duty in return. The order of society, in the instance of the public annuitant, is inverted; instead of being a subordinate, and, in his degree, a dependent part of the whole, all the productive power of the society becomes subservient to the individual, and it cannot fairly be put in supposition, that a community, if even perfectly isolated, could support a class of persons of such description, to the extent of a large proportion of its entire income, and subject to indefinite increase, without great irregularity and difficulty in re- spect of the circulating medium, and in the relative price of commodities, nor without the risk of ultimate confusion. It will not be understood that the rights of the annuitant, or the consideration of respect to the lender or annuitant, are in any manner brought into question. The public obligations K 6Q cannot be infracted without disgrace to every member of the community, and the lender whose spirit was commended and applauded when the obligation was incurred, cannot, when the day of account arrives, be treated with slight or disrespect, without reflecting the heaviest censure. APPENDIX, (B. Page 18.) It is unquestionable, with respect to any or- dinary article of merchandize, that the whole amount of a duty is, ordinarily, in the first in- stance, thrown into the money price of the goods, together with an advance uponthe actual amount of the duty ; and it follows, that the Consumer of the goods retorts the advance upon th6 vender, when he, in his turn, becomes a buyer, and in this way a system of action and re- action, in money prices, ensues. Each ad- vance in money price, from effect, becomes a cause ; but the precise point at which an alter- ation or advance in money prices will rest, in respect of a particular impost, cannot be defin- ed. It is plain, however, that the money prices will be advanced, generally, in a proportion considerably exceeding the amount of any specific duty, which may occasion an alteration in money prices. A duty of twenty per cent, upon leather, by way of instance, would pro- K 2 68 bably, be increased to thirty per cent, before it reached the vilbage in shoes>for the peasant, or in equipment for the farmf. The cultivator would, in consequence, seek a full indemnity for this additional demand of thirty per cent^ on leather, by a proportional advance in the money price of grain and other produce : a further advance would theft ensue in the price of leather, and in other products of the town; which would, again, actuate the cultivator to the attempt further to advance the price of his produce, and so on in an alternate action and re-action of the price of one commodity upon the other, until the society should adjust itself to the altered condition, as to money prices, produced by the imposition of the duty on leather. In this instance, the money price wouW settle at an advance very considerably exceeding the amount of the specific duty, occasioning the advance, without enabling the vender to avoid the contribution of his own proportion or share of the impost*. * It is not denied that the relation of supply and demand, imTrtediately, governs price ; but the extent of supply depends, vltimately, upon the price at market, and the price must, idtimatelyy depend upon the cost ; if the cost be not covered by the price at market, production will decline until the cost be covered. The cost therefore, in effect, controls the price ; the relation of supply and demand is, ullimatelyy governed and controlled by the relation of cost and market price. 69 In the instance of the wheat, if the first ad* vance in money price be limited, even to the money price or value of the tenth bushel, a course of action and reaction, similar to that which takes place upon the imposition of a duty would terminate in an ultimate advance upon the price of wheat, considerably exceeding the money price or value of the tenth bushel of wheat. Wheat, although thus increased in money price, beyond the whole sum of the im- post, is met by prices relatively high throughout the community, and no other advantage from the advance of price remains to the grower, than the distribution of the impost; in which dis- tribution, he must, himself, bear his proportion. The tenth bushel cannot be taken away from the productive classes, for the maintenance of the unproductive, without diminishing the pro- perty of the productive classes. Less ex- changeable property or effective value, remains with them in their several branches of occu- pation and pursuit. The apparent increase of price, has prevented the clear perception of this consequence, by the cultivator and manu- facturer, but the consequence is inevitable, and cannot be effectually eluded by any contri- vance or alteration affecting the currency, nor by any alteration in money prices. This exposition tends to explain the cause of 10 an advance in the money prices of agricultural produce, exceeding the increase of duties and taxes, not only without producing advantage, but without preventing severe distress to the agricultural interest.* Apprehensions have been expressed lest the repeal of duties and taxes should have the effect of lowering money prices, to the great loss and prejudice of persons holding any de- scription of moveable stock; and it is clear that money prices would be lowered; First — By means of the direct effect of the repeal of duties, in respect of the article whereon the duty might be repealed. Second — By the consequent and generaP effect of the repeal or diminution of duties and other imposts, which would be calculated t» operate in the inverse ratio of the effect pro- duced on money prices by the impost, when charged. As money prices have advanced be- yond the amount of the impost, when laid on, so money prices are to be expected to de- cline below the amount of the impost, when removed. * See a letter to the Right Hon. Robert Peel on the causes of the depression of trade, and of the distressed statd of the industrious classes.---Anon. published by Hatchard' and Son* n With regard to the first consideration t Material loss could not be suffered, provided the act be not rendered operative until three months (or more in instances which might re- quire more time) after it should become a law; and provided further, that the duty on stock re- maining on hand after the act should become operative, were to be returned, so far as the stock could be ascertained with sufficient ac- curacy. With regard to the second consideration : It is material to remark that in most branches of occupation and trade, particularly in agriculture, considerable relief in the cost of production would be necessary, in favour of the cultivator and manufacturer, including the peasant and working manufacturer, before any abatement in money prices could be afforded. That the money prices do not in general, so readily feel the causes of decline, as the causes of advance ; that the immediate price will be governed, in a considerable de- gree, by the relation of the actual stock to the demand, and, that the relief of the country, as proposed, would be calculated to quicken and increase demand. And it may be added that the effect of a reduced money price of goods, would also be counteracted, by the more effec- 72 tlve power of the money, which goods would produce. But without following these questions into detail, doubt need not be entertained of the generality of merchants and dealers, interested in the several articles, being entirely willing to submit to any consequences which might ensue to them, from the repeal of duties, after the adoption of such provision as the several in- stances might fairly and reasonably admit. Until the ultimate and lowest reduction of money prices, markets might be expected to be unfavourable to speculation. And the speculative holder of produce or goods, might suffer some prejudice by the alteration in money prices; but it is not apprehended that at the present moment, this class of persons is considerable as to extent of dealing, APPENDIX. (C. Page 15.) The public annuitant, if he expend his annui- ty within the kingdom, restores some part in di- rect imposts and participates in the effect of the advance in money prices. If, for instance, the annuity be purchased during an average price of ninepence for the quartern loaf and the suc- cessive creation of annuities cause an average price of twelvepence for the quartern loaf, and a correspondent increase in prices generally; the annuitant in this way, in some proportion, shares the burthens of the country with the productive classes; that is to say, he obtains less of the produce of their capital and exer- tion than might have been contemplated, when the annuity was purchased. All that he does obtain, however, he obtains from the produc- tive classes, and even these efforts towards relief are unavailing, if the annuitant do not expend the annuity , or expend the amount in another country. The foreign consumer, also, contributes in some proportion, provided the price paid by him include the entire cost of the goods and charges. It ma^, however, be considered ; 74 First — ^That the risks of foreign trade are. very great, and that the competition of the venders, and the consequent low rates of prices, leave the venders, as a body, exposed to great losses. Second — That the working manufacturer, to great extent, has not received more than half the amount of wages necessary to his subsist- ence, and that the master manufacturer may be presumed to have sold the goods to the fo- reign consumer, upon the calculation of the wages paid by him and not upon a calculation of the actual cost of the maintenance of the workman. In this manner the British nation may clothe foreign nations, at a very cheap rate to the wearer, but upon a principle of exhaustion to the United Kingdom. The participation of foreigners in the national burthens, cannot therefore be relied upon, for the present cal- culation ; nor can the principle of taxing fo- reign nations, through the medium of their demand upon the national industry, be sup- ported upon any principle, unless indeed by way of exception, under extraordinary circum- stances. The demand of foreign nations for British produce and upon British industry, is too valuable and important to be exposed, jus- tifiably, to any avoidable impediment oc check. [-- thep into 1 s, to be remitted, should lie, and the net sum paid s become the subject of irade heavy advance upon the amodthe contrary, is effective for tl ggested that the follow- ing lof twenty-nine millions r ended 5th Jan. 1819." woul addi Payn _1,079,98.5 927,281 4 H, 64-9 X515^652 APPENDIX (IXPugc2l.) to frovprn the soleotion of tliu Dutii;s niiil Tuxes, lir imii.iitri! by three pnrticulars : — namely; I" i>v> , ,, III, , Ktent of the burthen upon tlu' publit "' 'iin!'^ ••{ British Manufacture. ng repeal ,>r .Imi, •ould adiiiil. 'I'll 1 produce of the Ne\ Duties. eer The whole : . £.4,978,1 ID I0P» piribi. . . . Vine wcets and Mead . yder and Perry . . ditto . . . Two-thirds . i i One-half . ; . One-half . . . The whole . . . . 1,-''- - 111,7111 oals offee and Cocoa ■ruit lelasses . . . . epper . . . . . ditto . . . Two-thirds . . . Two-lliirds . . . The whole . , . The whole . . . . l,02a,3C)7 , 188,930 , 3S2,SC2 12,000 . 124,787 IS been drawn : into J,.1.<0 »il| „,„b.,bl, bedcemejesoediert. ea Two thirds .... 2,582,303 obacco .... Seven-eighths . . . 2,471,939 iilegar and Verjuice Tlie whole .... 40,tOO h ye Stuffs . . ides and Skins . . ditto . . ditto ditto . . , . 218,070 Inelnde 773,(151 Include 101,050 inted Goods . . . ditto ..... 487,76 1 (Manufo ags ... . arn— Mohair "^TheVhole. . :~ . . ditto ..... . . ditto ^-W50- -ff 4,670 9,517 otton Wool . eep and Lamb ass ... . icks and Tiles ood . . . . er centage on um . . . . Dpperas . . . . ditto s Wool ditto . . ditto . . . ■ . . . ditto . . ditto . . One-third . . . British Goods, outwards . , On Export .... . . ditto .... 554,475 87,050 515,632 315,841 60,000 430,'>71 87,428 810 866 6,171 76,069 187,427 onnage . . . onnage . . . . Outwards .... . Inwards .... >ntinuc a'auty on Foreign rPiro Exclusive of Duties paid, and again drawn bi >uragement of illicit trade, i;^ not only an iacitcnitnt to, and bounty upon, irregular tiabits; but is cliilling and dis- juraging to the efforts of regular industry. The expectation of an amelioration and improvement of manners^ ndcr a high revenue system, cannol be rationally entertained. the year endeu 6th January, Cliina i\o 70,851 1 Italian Thrown Silk . . . . 2flO.S89 Total . , . 62y,2i3 T for tlie year ended 5th January, 1819. The whole amount of duly on Sugar APPENDIX, (K. Page 28.) It is not necessary to entertain the question* of the comparative value and importance of agricultural labour, and of labour directed to the useful arts ; each is essential to the power and well-being of the United Kingdom, each is entitled to the enlightened protection of the Government ; but it is not the less proper to mark the distinction between the agricultural and the manufacturing classes, with reference to their relative tendency and disposition to excess of numbers. The employment of the agricultural class, is comparatively constant and is general j the children of that class are distributed, with their parents, over the whole surface of the king- dom : they succeed their parents, in the same manner as the children of the manufacturer, in their own departments of occupation ; they are introduced as parish apprentices, or other- wise, into the families of farmers, and of the L2 76 gentry and nobility in their several neighbour- hoods ; the supply of domestic servants is de- rived, chiefly, from the offspring of the lowejr classes, employed in or connected w^ith agri- culture: the children of the same class are also received into the class of manufacturers j and the great range of sea coast, bordered by agricultural districts, is favorable to the relief of the agricultural class, by attracting boys to> maritime employment. The working manufacturing class, on the con- trary, is confined to particular districts, and is more bounded in individual resource; the chil- dren of this class are not equally draughted into families; the request for young children, in many departments of manufacture, has habi- tuated parents of that class to seek employ- ment for them, even at a tender age, in the manufactories J the manufacturing class wast considerably augmented, during the first thirty years after the introduction of the mo- dern cotton and worsted spinning machinery^ by draughts of poor children from the work- houses and whence soever they could be pro- cured : this class has not only been aggregated^ by means of the natural increase of numbers, but by great accession of numbers from other sources. The habits of the manufacturer are unfavorable to change ; most of the depart- 7T ments of manufacture require considerable practice and skill, very valuable to the master manufacturer, highly valuable and important to the country, if in request; but if not in re- quest, operating upon the individual as a ne- gation of his faculties for most of the other departments of occupation ; his skill and abi- lity, when applied to any one purpose, may^ without irreverence, be pronounced creative ; but if the object of his production be not re- quired, he becomes dependent and unapt for any other mode of employment. The guard and provision in respect of the population, are therefore, to be considered with reference, more particularly, to the ma- nufacturing class; and under the advantage of this discrimination, the following draught or outline is submitted to examination : namely; That, excepting such places or parishes as are regulated under the authority of a special Act of Parliament, parochial relief be limited to the sick and infirm, to persons being objects of relief, exceeding the age of sixty years, and children, being orphans, not exceeding the age of seven years. That, ESTABLISHMENTS be instituted in dis^ tricts of more extent, for the reception and re- gulation of every other description of pauper poor. That, such establishments be formed with a IS view, particularly, to instruction and occupa- tion in the use of the spade and other rura! employment, and upon a plan sufficiently comprehensive, to admit of the appointment of a person competent to the various and responsible duties, the discharge of which, the station of superintendent, would necessarily require. That, no individual exceeding the age of six- teen years, and not exceeding the age of sixty years, being able to work, be permitted to re j main on the establishment more than sij? months, nor be received on the establishment a second time. That, all persons having been received ort the establishment, and discharged therefrom, be provided, on a second application, with a pass to a sea port, with a view to embarkation for New South Wales, or such other Colony or settlement as may be arranged for the pur- pose ; the passport to be used or not, at thfe option of the receiver. These suggestions proceed upon the con- ceptions : First — That, the relative rights and duties of the poor and of parish officers, cannot be so defined as to admit of sound legislative re- gulations, excepting as respects the descriptions of poor mentioned in the first paragraph. 79 Second —That, the establishments for tha reception and regulation of other descriptions of poor, might be arranged with a view to the following purposes ; namely. The education of boys to habits of rural industry, and of similar instruction and prac- tice to men. The education of girls to domestic habits and habits of rural industry, and of similar iu' struction and practice to women. And the employment of the inmates also, in artificery and manufactures, as now praC' tised to some extent, in houses of industry and charitable institutions. The use and practice of the spade is parti- cularly recommended, because. The implement is simple. Is in itself perfect and does not require any establishment of cattle. Admits of the easy attainment of the prac- tical use. The labourers, being employed in bodies, are superintended with facility. Deep loamy soils, tilled by means of the spade, will produce very considerably more than the same ground tilled by means of the plough. The use and practice of the spade are o( great value and importance in forming 80 good cottage habits, and in the event of emigration to an asylum beyond the seas, the spade may still be made the instrument of support. And because, the article of flax is best cultivated by means of the spade, and flax, in proper soils, is an object of cultivation peculiarly eligible for the employment of the poor, since the la- bour of the field, would also supply the means of labour in the house*. Third— -That it is necessary that pains and penalties, should await and reach the poor* who do not maintain their position in their town or village, by their industry, sobriety and care. A merchant or trader who miscarries in his business, is subjected to the bankrupt laws, which in their principle, partake of the criminal law. He may be and gene- rally, is, compelled to surrender his last shil- ♦ During the first year, after the introduction at Hull, of the machinery invented by the late Mr. James Lee, for pre- paring flax and hemp by the dry process (in substitution for steeping in water or exposure to the atmosphere) under the recommendation of Lord A melius Beauclerk ; it appears that 602 applicants for public relief were referred by tickets to the flax preparation factory, established by the guardians of the poor of that town, and that of that number, 253 only, availed themselves of the use of the tickets ; 349 disappeared. 81 ling, although his education and habits of life ordinarily preclude him, in his distress, from having recourse to parochial or eleemosy- nary relief. A merchant or trader conducts his business under all the hazards of these severe consequences, and whether the bankrupt law^s be or be not, in any respect, exceptionable, it is unquestionably right and fitting that a se- vere responsibility should await persons who embark in considerable pursuits on credit. To impress the mind with a conviction of the deep responsibility under which all human ac- tion proceeds, is an early and principal object of education. Careful habits are inseparable from rectitude of character, and a strong sense of impending consequences is necessary, cer- tainly, in the majority, to the structure of such habits. It appears, therefore, to be indispen- sable to the regulation of poor persons, that they should be brought under the clear con- viction that if each do not maintain himself, in his station, by his industry, frugality, care, and some exercise of foresight, he must in the first instance, abandon his home with his family, if he have any, and accept an asylum, where, for a time, he or they would be under close observation, and as far as may be prac- ticable, subjected to labour : That this de- scription of accommodation and rehef, could M 82 not he allowed to exceed six months, and could not he repeated, and that the individual must afterwards, either find employment for himself, or for himself and family, or abide the conse- quences, unless he should choose to avail him- self of the option, which would be tendered to him, of embarking for a distant shore, there to be subjected to regulation, and devoted to useful labour. It is not presumed that it would be practica- ble to found such a system, in the prestnt state of the country, with reference to the depends ent poor. The dependent poor are too nu- merous. Bpfore regard to principle, can with any propriety be enforced towards the poor, it is necessary that they who stand higher on the social scale, should, themselves, set the example of a return to first principles : that at least, the rate of labour should equal the cost of subsistence. Until such be the case, the good and humane, cannot look very nicely into the claims of the poor. The return to first principles, in the general direction of the body politic, would lead to all the consequences necessary to the management and direction of the poor. The duties which are imposed directly and hidirectly, upon the principal arti- ples consumed by the poor, incapacitate \\\evi\ 8S JTrom supporting themselves, at the present rates of wages. The cessation of demand upon the working classes for the recruit of the army and navy, the recoil upon those classes from the public service, in consequence of the peace; the natural increase of numbers; the want of re- lief, by proportional increase of employment, particularly in the manufacturing classes ; oc- casion a pressure at this time, on the part of the poor, to relieve which appears to be a hopeless undertaking, without the facility of some great and Comprehensive measure. The liquidation of the public debt, is that great and comprehensive measure, and the only measure, which appears to be calculated to lay sufficient foundation for the institution of a system for the government and direction of the dependent poor. An extensive remission of duties could not fail to give fresh impulse to the industry of the United Kingdom, in every branch: without lowering the rate of wages generally, but on the contrary, under the advantage of an advance of wages, in many departments of industry. By the effect of the reduction of duties, the price of the necessaries of life would gradually subside ; an increase of employment, an increase of wages (where necessary) and cheaper living, would quickly thin the ranks M 2 «4 of the dependent poor. Then, the effect of weH aFranged and well conducted establishments for the Poor would be felt, in the following particulars. First — The inmates would not be increased, by those who might desire an asylum for idle- ness. Second — The inmates would be formed to in- dustry, in the habits of labour, which are the most generally useful, and which are required every where ; namely, the industry of the field; and of course with proper regard to moral and religious habits. Tliird^ — The considerable expense at law, with reference to the right of settlement might be avoided. Fourth — ^A test would be established by which it might be ascertained, with some degree of accuracy, whether the population of the kingdom exceeded the actual means of employment or not. Fifth — Means could be provided, for the vo- luntary removal of such persons as might not find employment within the kingdom, and who, upon their own shewing might be considered, for the time being, as supernumerary, and treated accordingly. Sixth — The district establishments would af- ford facilities to the supply of hands, if wanted. 85 for any purposes, either of agriculture, manu- factures, or public improvement. The advantages of this system must depend, like most undertakings, upon simplicity in ar- rangement, fidelity and activity in the execu- tion, and especially, upon an undeviating re- gard to the principles upon which it would be founded. In particular, it should never cease to be considered; That, the pursuits of industry, considered as the pursuits of profit^ are in all cases, best di- rected and conducted in the way of individual enterprize, and that the discrimination cannot be too strongly marked, between labour di- rected to the purposes of gain, and labour im- posed for the purposes of punishment and re- clamation, or of educating poor children, in- structing the adult poor, or of testing the state and condition of the poor. The accumu- lation of numbers, upon the proposed establish- ment, is therefore, to be contemplated with anxiety, and to be guarded against by the strict execution of the laws of the establish- ment. Public labour, under public direction, cannot be brought to press upon the limits of individual employment, without producing more evil than good. It is the object of the public to have occasion, directly, to actuate m the least possible extent of labour; it is the object of the private individual, to actuate the greatest extent of labour, from which gain can be derived. The consideration of Situation for any pur- pose of emigration, or colonization, is par- ticularly important, because, the more flou- rishing the condition of the United Kingdom, the greater the tendency to ultimate excess of population. It is in the nature of the human race if supported in employment, to increase beyond the powers of sustentation in any given space. Extreme misery may keep the numbers, in any community, in constant and sorrowful check ; but, it is impossible, without first sub- duing the best feelings of human nature, to acquiesce in a system of rule, constituted upon a principle of repressing population, by means of disease and famine : nor is a cold and insensible temper to be found, either in the rulers, or, the ruled, of this na- tion. The happiness of the people and the maintenance of the state, in effective power, are the undoubted objects of the British go- vernment. The means necessary to those great f^nds abound, and an increase of population m is, consequently, to be presumed. Whether, at this time, supposing an increase of employ- ment, consequent upon the repeal of duties, there be or be n-ot, any excess of numbers in the United Kingdom : Whether an ex- cess of numberij, be destined to manifest itself, a few years sooner or later ^ it is the peculiar province of political wisdom, to pro- vide and guard against that ^rea^ political evil. The wisdom of government, with reference to an excess of numbers, is to be exerted, ra- ther in guarding against, in preventing an ex- cessive accumulation y than in the remedy of the inconvenience, when severely felt. If it be presumable, tliat the present and admitted excess of numbers, relatively to the actual de- mand for labour, would be corrected by the repeal of duties ; similar means of remedy could not be resorted to, in the event of the nation being liberated and kept free, from the operation of an artificial system of finance. The late and present distress, in the poor of the manufacturing class, has proceeded, not «o much from any temporary decline of de- mand upon their labour, as from the gradual accretion of numbers, through a period of several years. If it be supposed, that the num- ber of manufacturers, in the working class, is one million two hundred thousand (the num- bers are not quoted with any pretension to ac- curacy) and that there be employment, for one million, only, the consequences are not con- fined, to the necessity of supporting two hun- dred thousand unemployed persons. The class of manufacturers, during a considerable time, has been excessive in numbers, and in consequence, that class, including the mas- ters, as well as the working orders, have been in a state of unceasing agitati©*! : the compe- tition for employment, on the part of the work- ing manufacturer, arising from the r=^|j|||(|fcftant numbers, has'enabled the more k^^h and ar- dent, and less established master manufacturer, by engaging hands, at a rate of price below the established rate of wages, to compete to advantage, with his more established neigh- bour, who, in his own defen^Ffras been com- pelled to lower the rate of wages, with his more extensive class of hands. In this manner the rate of wages has, gra- dually been broken down, particularly with the weaving classes, until the severe labour of^a week, has become unequal to a hard subsistence for one half that time. An excess of manufac- turers, in the working classes, is therefore, not only the cause of the revulsion of the excess upon the public ; but in its operation, breaks 89 down the whole class to a state the most pitia- ble, and at the same time, reasoning upon ge- neral principles, the most dilficult of remedy. The peculiar condition and circumstances of the United Kingdom, appear however, to present considerable means of remedy, in the liquidation of the public debt ; and if such means do not prove to be adequate, a pro- tective, mild, gradual, permissive and humane system of colonisation, is presented. New Holland has been mentioned, as a transmarine asylum for the poor not finding employment at home : because ; The country is sufficiently capacious, to ad- mit of an enlarged and permanent system of government and regulation. The climate is particularly good and congenial to the constitu- tion of the natives of the British Isles, and not subject to variatiqiiio intense cold. The soil is very Igood and productive, and both soil and climate are favourable to the growth of hemp and flax, and are, consequently, eligible for the prosecu- tion of a system of compulsory labour. The United Kingdom imports from foreign coun- tries, annually, during peace, upwards of twenty-seven thousand tons of hemp, and eighteen thousand tons of flax, equal in value to one million eight hundred thou- sand pounds. In time of war both the N 90 quantity and rate of value are considerably more. If the great distance of New Holland, and the consequent expense of removing persons to that situation, be objected : it may be replied. That maritime distance, as such, is an ad- vantage and 7iot an objection, to a nation depending upon navigation for defence and command. That, on the supposition of South Carolina and Bengal being both British dependencies, and in other respects the same, excepting distance and the cost of cultivation 3 that rice could be pro- cured at Calcutta at one halfpenny per pound, and that the price at Charleston* were one * The relative price between the two countries is consi- derably less favourable to Carolina : the proposition state*? in the text, is by way of shewing that maritime distance mu3t be considered in combination with the price of pro- duce, before distance can be decided to be an objec- tion to commercial intercourse. In point of fact, the free labour of India is so cheap, and the slave labour of Carolina, is, comparatively, so expensive, as to enable the former to supply Europe with most of the products of the low latitudes, notwithstanding the greater distance, at prices, with which it is, and must continue to be, wholly out of the power of the United States of America to compete. Some descrip- tions of produce are indeed, at present, grown in the United States of America, which India does not yield of similar quality ; but, if tin; quality can be obtained in India, the com- petition of the American planter must cease. 91 peuny per pound ; the quality being supposed to be equal : the freight and insurance from Calcutta one penny per pound, and the freight and insurance from Charleston, one halfpenny per pound j in this case, the rice of each country, would be delivered to the British pub- lic at the same price. But the consumer of Bengal rice would con- tribute, nearly, twice as much to British navi- gation, as the consumer of Carolina rice. The maritime distance is an advantage, in propor- tion to its extent, provided the charge of navi- gation be counterbalanced by the price, in the market of production, of the commodity to be imported : that is to say, if a common price must be paid by the consumer, whether the production be of near or distant growth : and it is to be considered, not only that navigation creates seamen, but that the chief part of the cost of freight, paid to the owner of a British ves- sel, is expended in British materials, artificery and manufactures, which, in a ship, are brought into a course of rapid expenditure and con- sumption. New Holland is not yet become, to any extent, an exporting coimtry; but the ex- penses of the colonies of New South Wales and Van Dieman's land, can only be defrayed by the colonists, by means of the exportation of N ^ the produce of the soil. As in the supposed case of Bengal and South CaroHna, so with respect to New Holland and the Cape of Good Hope ; the great extent of territory, the va- riety of natural productions, the great riches of the soil, and the excellence of the climate of New Holland, concur in justifying the con-^ elusion, that the greater length of voyage would be counterbalanced, in expense, as com- pared with the Cape of Good Hope, by the superior cheapness of production. If the freight of a ton of flax from the Cape of Good Hope be supposed to be eight pounds, and from New Holland, twelve pounds, and one pound per ton more, be allowed for difference in the insurance, and the ton of flax in the British market, be worth fifty pounds ; it may readily be conceived, that New Holland would combine advantages in the cultivation and preparation of the flax, considerably more than ec^ual to the difference of five pounds per ton. The expense of conveyance to New Holland, cannot be deemed a consideration of much weight to a maritime country, abounding in unemployed ships: the poor who cannot find employment, or for whom employment cannot be provided, within the kingdom, must he sup- ported on shore, for an indefinite time, if not 93 supported on board ship for four or five months. And if the nation be relieved from the burthen of debt, what proportion will even the incon- venience of the expense of conveyance, bear to the evil of a population exceeding the means of employment? These observations are offered on the pre- sumption, that in the event of New Holland being chosen as an asylum for persons not find- ing employment at home, the transport of con^ victs to that country would cease; and that the individuals who might proceed thither, under the protection of the government, would be placed at a distance from the convict set^ tlements. It may be added, that the coloniza- tion of a distant land is proposed, in the event, only, of an excess, for the time being, of native population, under a supposed system of rule, the most favourable to demand for labour within the limits of the United Kingdom, APPENDIX. (F. Page 59.; In the event of the liquidation of the public debt, banks of deposite would be calculated for very useful and beneficial purposes. A bank of that description, reg^ulated and protected by law, wonld afford much greater public facilities, than the system of government annuities. The public annuitant, f©r the time being, sinks his principal. The principal in respect of which the annuity may have been originally granted, was expended and sunk, upon the original ad* vance of the capital. The purposes of the state were effected, when the money was advanced ; a purpose continues to be effected, in respect of the actual annuitant, so long as the payment of the annuity continue. So long as confidence fjontinue in the ability of the state, to pay the annuity, and money offer for investment in the purchase of that description of security, the an^. nuitant, although his money be sunk, may rea- lize his capital, subject to variation in the mar- ket price, by means of other persons who may 95 be willing to sink capital in the like manner. In this case, however, facilities are not pre- sented for the advance of money to indivi- duals, upon any description of security. There is not, in this case, any fund for that purpose : the money, in respect of which the annuity is payable, has been expended, and the industry and productive power of the country, alone re- main, as the resource for the payment of the annuity. Not so, in the instance of a hank of deposits^ The bank would present a point from which money would flow, on loan, for every useful purpose, so far as the sums in deposite, and the prudent direction of the bank would permit. It is not questionable that considerable sums, ate deposited at interest of three per cent, per annum, in many of the provincial banks. Ex- chequer bills are issued at three per cent. i»- terest. It will not be questioned, that in the event of the liquidation of the public debt, and of the government being placed in a condition to refuse all government security, at a higher rate than three per cent, interest, large sums would be invested in government securities, if obtainable at that rate of interest. It must follow, that if the government should cease to grant security for money, large sums would be lodged in a bank of deposite properly 95 eonstituted and duly established by law, aJ three per cent, interest. In the event of the liquidation of the public debt, the doubt cannot be entertained, that money would flow into the bank of deposite, at the interest of three per cent. The questions remaining to be examined, «re ; Whether the money thus seeking interest on deposite, could be safely employed by the bank of deposite ? Whether, if safely employed, the risk would Hot be incurred of the money being so locked up, as to disable the bank from returning the several sums when required ? The government stock and unfunded debt, are in effect, an undefined mortgage on all property, in its present operation producing effects upon every description of property, of a complicated, aggravated, and destructive chjb racter. The proposal for the liquidation of the public debt, if adopted, would render this undefined and ruinous mortgage, a defined and specific mortgage (without the form) to the extent of fifteen per cent, on the value of property. The facility which a bank of deposite would afford to proprietors who might desire to borrow money, for the purpose of paying off this last 97 nifentioned mort^ag-e, would probjibly present a numerous and respectable class of bor- rowers, and it might be made a condition of the charter or act of incorporation of a bank of deposite, that more than four per cent, interest should not be received from mortgagers, in respect of money to be borrowed for, and applied to, the purpose of discharging the mort- gage or assessment of fifteen per cent. In a country in which prudence of conduct is so chequered by indiscretion and imprudence in expence, and in the management of private property, and in which a spirit of enterprize and exertion prevails, a state of society is not to be brought into supposition, in which exten- sive classes of borrowers of money, upon good security, would not be found. It is now difficult to negotiate any desciiption of security, except- ing the most approved commercial bills, at short dates, and there can be little ground of doubt that the preference of most of the other de^ scriptions of security, would be offered to tliQ supposed establishment. It is not, however, proposed that it shall be obligatory on a bank of deposite to receive money at interest. l\\ therefore, securities could not be obtained, money would not be received in deposite. The progress of the liquidation of the public debt would sufficiently admit the O 9S gradual ex])erience of the practical usesof snch an institution, if contemporaneous in its institution with the adtption of that principal measure. The assurance of the ability of the bank of deposite to return money, when required, must rest upon confidence in the capital and in the discreet and judicious management of the bank. In this, as in other instances, much must be left to the course of circumstances; but it is not dif35cult to sug-gest some leading considerations. If all government security were to be with- held ;— The rate of interest on the money to be deposited, might be made, in some measure, dependent upon the time for which it should be deposited. Trustees under marriaoe settlements would have little difficulty, in general, ui defining a time durmg which money would remain in deposite. Executors and testamentary ir ^stees would be enabled, generally, to be equally or more explicit. And the same observation applies, with more or less qualiHcation, to the great and extensive range of trusts for corporations, charitable and other public institutions, and for private pur- po '^S. The directors would not be without the means 99 of judging- as to the claims whicli they would be called upon, from time to time, to satisfy, and would regulate their advances accordingly ; and the principles which men of judgment and of extensive commercial experience, know how to apply in the conduct of large and responsible affairs, and proper activity in the application of those principles, could not fail to be found in the directors of a metropolitan bank of deposite. Upon that assurance, and the assurance which the capital of the bank would afford, the depositor must confide for the condact of tue establishment. Persons who will not, or cannot, manage property, must plnce coi fidence s«;me- where, and where could they conhde with more assurance and with less probability of injury to themselves or to their neighbour, than in a metropolitan bank of deposite, founded upon an adequate capital and sanctioned by law ? If it should be apprehended that such an establishment would become too large j'.nd too powerful, the capital might be hmited, the amount of deposites might be limited, and if inadequate in point of extent, under such limita- tion, to all the purposes which might oe re- quired ; other metropolitan banks might be founded, upon the evidence of the public im- portance of the first and original institution, 02 loo tn contemplating this object, the distinction cannot be too strongly marked or too keenly felt, between income derived by way of pnblic annuity, and income which would be derived through the medium of a bank of deposite. In the instance of income derived through the medium of a bank of deposite, the bank would become r- " onsible for the interest, because more than an eq iivalent could be obtained from per- sons to wiiom the bank would advance the money; such persons having, voluntarily, sought to charge themselves with that burthen, in con- sideration of the great use and value of the money which would be actually advanced to thiem. Here is a complete case of reciprocity; all parties are essentially benefited : the lender, by securing to himself a certain income, without risk or trouble, in respect of his capital ; the bank proprietors, by the higher rate of interest at which they would lend, than they would receive^ money, and the borrower, by the command of capital which he would acquire. In the instance of the public annuity, the price of the annuity is sunk, and the great body of per- sons from whom the income is derived, so far from being assisted with capital, as the means under active management, of producing the sum of 101 income required; are crippled, incapacitated, and exhausted, in proportion to the amount or extent of the annuity or demand. APPENDIX. (G, Page 59.; The Edinburgh Monthly Review for February, 1820. The leading objections stated in this able work, appear to be reducible to four general heads ; — namely. The inefficiency of the measure, in the form proposed. lis impr a cticahility, in the only form, which, as the reviewer represents, would enti- tle it to the character of efficiency. The defect in the outline of the plan, in- asmuch as the redemption of a large remainder of 350 millions of stock, would not be adequately provided for : And the gratuitous and unsupported as- sumption, that the interest of money would decline, and that government would be able to borrow money at the rate of 3 per cent, interest. 103 The proposed impost, is, in round numbers, twenty millions per annum, in respect of pro- perty. The principal sum which would be required to cancel that impost, is five hundred millions; namely. By reduction of stock and unfunded debt . . . 125 Millions. By capital to be paid at the will ot the proprietor . 263 By capital to be paid by equal instalments, in five successive years . . .112 500 Millions. The permanent relief which would precede all demand, in respect of the proposed impost, including the advance on the duties of cus- toms and excise, charged by dealers to the consumer, would amount to, at least, thirty-six millions annually, which sum is more than suffi- cient to establish the efficiency/ of the measure, if carried into effect. If the objection of inefficiency be removed, the second objection falls to the ground; be- cause the reviewer's proposal is brought under consideration, on the assumption of the inefficiency of the author's proposal. Some of the objections which are urged by 104 the REVIEWER, in considering liis otvn pro- posal, may, however, admitting the efficiency of the author's proposal ; be considered as bearing adversely : particularly as they are urged by the REVIEWER with great strength of language, and evidently under the apprehen- sion of the consequences which the Reviewer predicts. It is apprehended ; That property to great extent would be forcedinto a market for sale, to the great loss of the seller, and again, that the proceeds of such forced and injurious sales would be forced back upon hands incompetent to the active manage- ment of property, to the great inconvenience, prejudice and loss, of all the parties. That the actual proprietor would be dispossessed of the property in the management of which he is advantageously employed, and for which his edu- cation and habits qualify him, for the purpose of procuring sums of money, to be paid over to persons, without either the disposition or the ca- pacity, to employ money safely or advantage- oubiy to themselves or to the community. In the endeav^our to obviate these objec- tions, a reply will also be attempted with reference to the third and fourth heads of objection, since the several subjects will be considered to most advantage in connexion. 105 The points thus to be considered in con- nexion, are ; The anticipated difficulty and loss of the compelled vender of property. The anticipated difficulty and prejudice to the party to be compelled to receive back capital. The amount of stock — 350 millions, for which the redemption is not adequately provided. The question of interest of money. On the supposition of the precedent relief of the nation from a burthen of thirty-six mil- lions, and the consequent quickening of the active powers of the country, it is difficult to suppose any extensive class of cases, in which either forced or disadvantageous sales of pro- perty, would become necessary for the purpose of meeting the object of the proposed mea- sure : common prudence of conduct being supposed, with what description of persons could the necessity arise ? The relief in the expense of living and pa- rish rates, would very far more than enable the resident landed proprietor who expends the rent which he may receive, to pay the interest on the proposed assessment. The same relief might also, in connexion with the y?«// payment of his rent, enable him to pay the principal of the assessment by instalments. If he do not expend the amount of his rent, he cannot have P 106 aiiy difficulty in paying the interest on the as- sessment, nor, it may be presumed, in paying the principal sum assessed. Neither of these descriptions of proprietors can be driven to the necessity of making an ill-timed, compul- sory sale of property ; and if the rent be ex-- pended in another country, the necessity of the measure becomes the more apparent. If the situation of the proprietor under mortgage be considered, the measure pro- posed is peculiarly favorable to the extrica- tion of his property from trammel and diffi- culty; and the interest of the mortgagee, although not co-extensively, sympathizes inti- mately with the interest of the mortgager. The payment of the rent is essential to both : if the tenant be incapacitated from paying any rent, both suffer, and every step of the tenant towards that state, is the subject of anxiety to- the mortgagee. But the great advantage to the mortqaqer, would consist in the relief of his whole property from the imposts to be discontinued, such rehef being purchased by the mortgagee, so long as the mortgage continue, in the proportion to which the mortgage may extend. The liquida- dation of the debt, as proposed, is therefore the road from, and not to, the entangiement of legal arrangements. 107 And it isegtiitable that the mort(jaffeeshould^?ky the interest on the assessment to the extent of the mortgage, because he would be relieved by the discontinuaiice of imposts, and in respect of his income under the mortgage, is for the time being, in place of the PROPRIETOR. These observations apply to property, to the amount of two hundred and sixty-three millions. The assessments remaining to be considered* are. The assessment on. Agricultural stock, Commercial property. Domestic property and effects. The assessment on agricultural stock is estimated at thirty-four and a half millions, and the time proposed to be allowed for the payment is five successive years, or during that period, at the rate (including interest) of about three and a half per cent, per annum on the amount of stock. This would undoubtedly press, if unaccom- panied by great relief; but the demand would be preceded by such relief. The price of all stores expended by the farmer would be re- duced in the proportion of a third to a half ^ the parish rates, under any good system of ma- nagement, would decline in the proportion of at least two-thirds. His domestic expenditure, P2 108 depending upon the market or village, would decline in a considerable degree. With the pru- dent, difficulty could not arise as a consequence of the new impost, and for the imprudent re- medy cannot be provided. The assessment on commercial property could not be felt inconveniently, because the whole sum to be required, in five successive years, is forty millions and interest until paid, and the duties, the repeal of the whole of which might precede the claim, even, of the first pay- ment, amount to the sum of twenty-nine mil- lions: the capital required by merchants, manu- facturers and dealers, for the present extent of business, would decline in a ratio which would produce great facility to this class, and the relief in eyery description of establishment and ex- penditure would tend further to liberate commercial capital. *S'ome individual instances of difficulty may, however, be supposed under this head, which it may be presumed would be fairly and judiciously considered and treated, upon the merits of the several cases. The assessment on domestic property and ef- fects estimated at thirty-seven millions, payable, with interest, in five successive years, could not press inconveniently upon persons of prudent conduct, who would antecedently experience yelief equal to a considerable proportion of the 109 annual sum expended by them, several!}^, in the range of the principal articles consumed in a family. The compulsori/ and injurious sales of property are, consequently, not the subject of reasonable apprehension. The situation of persons who might be com- pelled to receive back, without any means of employing, capital, is undoubtedly to be con- sidered, and admits the consideration re- quired. The case supposed includes three particulars : First — That the security of the British na- tion for the principal and interest of mo- ney, is so desirable, at least for a time, as to threaten great inconvenience if entirely withdrawn. Second — and consequently, that if means could be found to redeem the national debt, loans of money would be tendered to the State at a very moderate rate of interest. And; Tliird — That it would be expedient to conti- nue some part of the ohjecled remainder of three hundred and fifty millions of stock, for a time, in order that persons who have sunk their money, and adjusted their habits of life to the accommodation 110 <)i that description of security, and also public bodies and official and other trusts, to whom such security might, for a time, be of great importance, might not be exposed suddenly, to the inconvenience antici- pated by the REVIEWER. Upon these grounds, the AUTHOR has not felt desirous of pressing the whole object into immediate execution. Upon these grounds? he has presumed that money to great extent, would be proffered to the British government at three per cent, in the event of government securities ceasing to be the subject of sale at market. Great individual inconvenience might en- sue from the hasty redemption of the whole of the government stock. The AUTHOR'S pro- posal does not proceed upon the view of the im~ mediate redemption of the whole : He is fully aware of the great extent of inconvenience which might ensue from the sudden break- ing down of the whole system, and he feels the A^alue and importance of that consideration to the country. The change to the nation would be great and beneficial indeed, from the condition of necessitous borrowers, upon terms, which as between individual and individual, would bear the character of enormous, complex and in- defensible usury ; to the situation of deposito- Ill ties of money, at modem te interest, for the spe- cial convenience and accommodatiou of indi- viduals or associations, because that descrip- tion of security became the object of request or desire, under circumstances wliich would not fairly justify the refusal. That great chamje is one of the most desirable of the consequences to be anticipated, from the undertaking to li- quidate the public debt. The refusal of the security of the govern- ment, at three per cent, interest, would proba- bly not be judicious, in respect of a nu- merous class of the present stock-holders, and within certain limits as to amount, each of such persons might be allowed the privilege of advancing money to government, for a period of time to be limited, at three per cent j the principal of the loan not being subject to fluc- tuation. Without pretending to anticipate to what extent this accommodation would be re- quired, it is sufficient to suggest that it would be unnecessary to displace the whole body of stock-holders, without regard to the situation of individuals : the object proposed is the na- tional goodj the good of all who constitute the nation, and the oppression or injury or even severe inconvenience of any individual, now constituting any part of the whole, is unne- cessary for any purpose contemplated. 112 It is clear that regard may be had tcr tlie circumstances of persons, who, being actual stock-holders, would be exposed to inconvenience, if deprived of the advantage of the security of the government. But how- ever proper it may be to keep that object in view, other means of investing money would arise out of the liquidation of the debt ; particularly, in the specific mortgage of land- ed property, provided money for that pur- pose, couid be obtained at four per cent. It is sufficiently plain that all immoveable property is deeply mortgaged to the public creditor. It is proposed that this general, undefined, and overwhelming mortgage, be reduced and defined in respect of the principal part, as a mortgage (without the Jbrm of a security) to the extent of fifteen per cent, on the value of property, and that, until the mortgage be redeemed, interest after the rate of five per cent, per annum, be paid on such amount. That is the true cha- racter and definition of the proposed mea- sure : call it a redeemable property-tax, or a defined mortgage, with great facilities for the redemption, the measure remains the same. Considered, then, as a mortgage to the State, without the form of a mortgage ; provided se- curities for the advance of money should be 113 required by persons to whom capital might be paid over by the government, in satis- faction for stock; and, that such capital would be advanced on specific mortgage, as between individual and individual, at four per cent ; the facilities wanted would be pre- sented. The proprietor of the immoveable property would be enabled to pay to the go- vernment, the full amount of the assessment j which, again, would accelerate the liquidation of the debt : he would be relieved to the ex- tent of one per cent, on the interest of his mortgage, and by such means advanced in his object of redeeming his property entirely out of mortgage ; and the ex-stockholder would obtain an eligible security for the money which he might desire to invest at interest. Should a metropolitan bank of deposite be established, these operations would be con- ducted with peculiar facility. The funding system derives its strength from the great extent and variety of persons and asso- ciations, seeking the safe and easy means of se- curing interest for money, and the assurance of the restitution of capital when required. Per- sons and associations of that description are the foundation and support of that system; it may fairly be presumed, that a considerable pro portion of that class of stockholders, if not Q 114 presented with more advantageous government security, would accept such security at three per cent, interest, without being ruled by the general rate of interest; and that in the event of government security being withheld, on the provision of other forms of security, by the establishment of a bank of deposite or other- wise, the like rate of interest Avould be accepted under this new security. The stock standing in the name of the account- ant-general, is supposed to exceed thirty millions. The Assurance Offices hold large amounts of stock, and the stock held by trus- tees to charitable institutions, trustees in many other of the great variety of trusts, and be- longing to elderly and infirm persons, must extend to a very large amount. These several descriptions of stock-holders could only require the security of the government, until the accommodation of other sufficient modes of security could be provided, and if in the result, it should be found that the go- vernment securities, even at three per cent., would not be relinquished so speedily as the power to redeem the debt, and the general in- terests of the country, would render desirable ; it would be better, even, that some incon- venience should be borne, for a limited timey by the whole, than that the departure from 115 a long established system, should press heavily apon the interests of any individual incorpo- rated in the system. The AUTHOR, therefore, ventures to pre- sume; Thaty apprehension need not he entertained with reference to the forced payment of capital to the stock-holder. That, the continuance, for a time, of some remainder of slock, may he contemplated as a convenience and recommendatioHy and not as an objection : And, That, there are sufficient grounds for conclud- ing, without supposing the reduction of the inte- rest of money for the active purposes of business, that government security would be in request, at the rate, even, of three per cent, interest. The Reviewer objects ; That, persons exer- cising professions and engaged in business, would be released, gratuitously, in respect of their future gain, from the duties, taxes and rates to be repealed and remitted. But neither professional nor any other ser- vice wliich may now be adequately compen- Q2 116 sated would be entitled, if the public debt were liquidated, to compensation after the rate now paid. The rate of compensation for service should be regulated by the effective value of money. And, if in the event, this anticipation should not be justified, the landed and other proprietor will not be restrained from using the plain and obvious means of extrication from difficulty, because others who are employed by them, would, in the result, be relieved from pressure upon their labour and exertion. The objections which are urged by the Reviewer, in Blackwood's Edinburgh Magazine, are not less entitled to attention ; but having been chiefly, in effect, already re- plied to, two points, only, remain to be noticed : namely ; The difficulty which the Reviewer supposes might arise in respect of the circulating medium, necessary to effect the liquidation of the Debt j And, The difficulty of preventing the abuse which might be attempted, by the transfer of stock into the names of foreigners, who would not be subject to the contribution of fifteen per cent. ; and by the transfer of British commercial and manufactured property into foreign hands. 117 The Reviewer states, that where it is " pro- " posed to levy £o()0,00(),()00 for the purpose " of paying off the public creditors, it is ob- " vious, that a great quantity of money or cir- " culating medium would be necessary for ** carrying the operation into effect. Govern' " ment must levy from the holders of property, ** and then it must pay the public creditors. '* That operation cannot be performed other- ** wise than by a medium of exchange." The E.EV1EAVER then proceeds to detail the various impediments which he anticipates to the l€vy and re-issue of this large sum. The Author does not apprehend that this objection has any force. The extraordinary facility, in respect of the circulation, with which the business of every day is transacted, is evidence of the great re- source of the community, for the purpose of transferring property, by means of symbols, whether consisting of bank notes, bills, or bank- ers' checques. The good understanding which obtains for the ordinary purposes of busi- Hess, would not be suspended, when a great and special public object required a similar facility. The question is, however, very much over- stated by the Reviewer : The proportion of the contribution to be borne by the public cre^ ditor, would not, in any manner, be the subject 118 of levy ; it would only be necessary to reduce the numerical amount of stock or debt belongmg or due to the public creditor, not being an ex-resi- dent foreigner. The proportion of the contribu- tion to be thus borne by the public creditor, is one hundred and twenty-five millions or one fourth of the whole sum. Of the remaining three hmidred and seventy- five millions, a considerable proportion might be expected to be paid and satisfied by means of cancelling stock. Ail persons being required tt) contribute in respect of other property and also holding stock, would naturally cance" stock, to satisfy the claim of contribution. The capitals of merchants, manufacturers, ship owners and others included in the assessment of £111,750,000*, would be very extensively re- lieved by the proposed remission of duties : the time proposed to be allowed for the payment of these branches of the assessment is five years, and the assessment on land is proposed to be without limit of time for the payment of the principal sum : the question raised by the Re- viewer, cannot, therefore, be entertained as involving any difl[iculty. The transfer of government stock, after the origination of the " Act of Liquidation," would, * P. 36. 119 of course, be rendered unavailinof for the pur- pose of giving- tlie transferee the privilege of a foreign proprietor, and the act might be ren- dered retrospective in operation, if the extent of the actual transfers should justify tlie appre- hension of designing or fraudulent dealing in this respect. The transfer of moveable property into foreign hands, could not be carried to such extent as to become an objection to the measure proposed. In general, the property of merchants and ma- nufacturers is connected by local ties, and the period of returning and increasing activity and prosperity, is not the time which either mer- chant or manufacturer would choose, to re- move either person or property. Some ad- vantage might be taken, in this respect, by the less principled and less established : but this consideration, amplified in the highest degree to which the imagination can carry it, vanishes before the consideration of the present and in- creasing loss, incident to non-residence, and the frightful mass of fraud, expence, loss, and pre- judice to natural health, by means of illicit trade, of illicit distillation, and of deleteriou.^ mixtures. 120 All opinion having been expressed that a claim of fifteen per cent upon the value of the land, would press inconveniently, and that a lower rate of assessment would be preferable j it is confidently presumed, that the perception of the great preponderance of advantage, in favour of every class of proprietor, will con* elude the judgment, particularly of the landed proprietor, in favour of the proposed rate of assessment, in preference to a lower rate. The objects in prospect, are of too near and deep interest, to be hazarded by measures of a short or temporizing character, and do not appear to be within the reach of command, by means of an inferior rate of contribution. The relief and encouragement of honest and honourable industry and exertion j the re- pression of illicit trade; the repression, to great extent, of fraudulent and injurious deal- ing, and the cure andprevention oHhe (jr eat e.w\\ of population exceeding the means of employ- ment; are objects which appear tobe withinthe national grasp, by means which are facile, and are recommended by the force of every sound and honourable principle. Every description of fixed property in the United Kingdom ; every description of establishment for the ac- tive purposes of human life ; all the power of the country, in scientific and skilful knowledge 121 and in commercial experience, talent and con- nexion, would be quickened and restored by the proposed measure, if adopted and applied in sufficient amplitude. All former evidences of national power would quickly be surpassed, and a simple and energetic state of society, would be as favourable to the increase of vir- tuous and correct sentiment and to right conduct, as the present state of society is repulsive and discouraging. The higher rate of contribution, renders the result immediate and certain ; the lower rate of contribution, would leave fruition uncer- tain, and in any event, would protract the day of relief J unquestionably, to the prejudice of every active and effective interest of the com- munity. The entire estimate of the sum, to bear the proposed assessment of fifteen per cent, is 3,334 millions : namely ; Amount of debt funded and unfunded .... 834 millions. Amount of private property 2,500 millions. 3,334 millions*. * Elements of a Plan, &c. p. 16. R 122 The first mentioned sum of 834 millions does not, in any manner, admit of being reduced so as to affect this estimate, unfavourably. And it is again to be observed, that the estimate of private property proceeds upon the basis, chiefly, of rent, and that the cultivated lands in England and Wales, are taken at twenty- five years purchase of an average annual rent of something less than twenty shillings per acre. The rent of dwelling houses is taken at very low rates of estimate, being for Great Britain, at an average annual rent of six pounds twelve shillings and sevenpence and at twenty years purchase, or something more than one hundred and thirty pounds for the average value of the houses*. Of the estimate of 3,334 millions. One fourth is derived from the actual amount of the funded and unfunded debt. One half, nearly, is founded upon the basis of rent of land and dwelling houses. The remainder of the estimate is deduced from less exceptionable data, but the great range of property included in this last-mentioned pro- * Colquhoun, p. 56. The number of" houses, whereon tliis average is calculated, is represented to have been de- rived from authentic returns presented to Parliament. Ibid. p. 43. 123 portion, nanit'ly, all the privalc properly, of every description, in the United Kingdom, ex- cepting Government stock, lands in cultivation, and dwelling houses, does not admit the pos- sibihty of any material error under this head. The expectation of a higher, and not a lower result, might be entertained*. It may he added, thai the value of properfi/, in respect of the assessment^ must be considered with reference to the previous relief from the Imr- thens to he removed, and not with reference to the present state of depression and distress. * The estimated value of agricultural live and dead stock, of every description, upon the land, (p 5.) gives an average for value of the stock, of less than £5. per cultivated acre, calculated on 48,000,000 acres. eflO. per acre is presumed to be necessary to stock an English farm. The estimated value of domestic property, namely, furni- ture, jewellery, plate, and other effects, (p. 5.) gives about X'lOO. for the average value of such property, in each house, calculated upon 2,150,000 houses. FINIS. H. Bryer, Printer, Hii(l