DuringtheadministrationofMr。Pelham,theinterestofthepublicdebtwasreduced,oratleastmeasuresweretakenforreducingit,fromfourtothreepercent;thesinkingfundwasincreased,andsomepartofthepublicdebtwaspaidoff。In1755,beforethebreakingoutofthelatewar,thefundeddebtofGreatBritainamountedtoL72,289,673。Onthe5thofJanuary1763,attheconclusionofthepeace,thefundeddebtamountedtoL122,603,3368s。21/4d。TheunfundeddebthasbeenstatedatL13,927,5892s。2d。Buttheexpenseoccasionedbythewardidnotendwiththeconclusionofthepeace,sothatthough,onthe5thofJanuary1764,thefundeddebtwasincreased(partlybyanewloan,andpartlybyfundingapartoftheunfundeddebt)toL129,586,78910s。13/4d。,therestillremained(accordingtotheverywellinformedauthoroftheConsiderationsontheTradeandFinancesofGreatBritain)anunfundeddebtwhichwasbroughttoaccountinthatandthefollowingyearofL9,975,01712s。2
15/44d。In1764,therefore,thepublicdebtofGreatBritain,fundedandunfundedtogether,amounted,accordingtothisauthor,toL139,516,8072s。4d。Theannuitiesforlives,too,whichhadbeengrantedaspremiumstothesubscriberstothenewloansin1757,estimatedatfourteenyears’purchase,werevaluedatL472,500;andtheannuitiesforlongtermsofyears,grantedaspremiumslikewisein1761and1762,estimatedattwenty—sevenandahalfyears’purchase,werevaluedatL6,826,875。Duringapeaceofaboutsevenyears’continuance,theprudentandtrulypatriotadministrationofMr。Pelhamwasnotabletopayoffanolddebtofsixmillions。Duringawarofnearlythesamecontinuance,anewdebtofmorethanseventy—fivemillionswascontracted。
Onthe5thofJanuary1775,thefundeddebtofGreatBritainamountedtoL124,996,0861s。61/4d。Theunfunded,exclusiveofalargecivillistdebt,toL4,150,2633s。117/8d。Bothtogether,toL129,146,3225s。6d。Accordingtothisaccountthewholedebtpaidoffduringelevenyears’profoundpeaceamountedonlytoL10,415,47416s。97/8d。Eventhissmallreductionofdebt,however,hasnotbeenallmadefromthesavingsoutoftheordinaryrevenueofthestate。Severalextraneoussums,altogetherindependentofthatordinaryrevenue,havecontributedtowardsit。Amongstthesewemayreckonanadditionalshillinginthepoundland—taxforthreeyears;thetwomillionsreceivedfromtheEastIndiaCompanyasindemnificationfortheirterritorialacquisitions;andtheonehundredandtenthousandpoundsreceivedfromthebankfortherenewaloftheircharter。
Tothesemustbeaddedseveralothersumswhich,astheyaroseoutofthelatewar,oughtperhapstobeconsideredasdeductionsfromtheexpensesofit。Theprincipalare,Ls。
d。TheproduceofFrenchprizes690,44918
9CompositionforFrenchprisoners670,0000
0Whathasbeenreceivedfromthesaleofthecededislands95,5000
0IfweaddtothissumthebalanceoftheEarlofChatham’sandMr。Calcraft’saccounts,andotherarmysavingsofthesamekind,togetherwithwhathasbeenreceivedfromthebank,theEastIndiaCompany,andtheadditionalshillinginthepoundland—tax,thewholemustbeagooddealmorethanfivemillions。Thedebt,therefore,whichsincethepeacehasbeenpaidoutofthesavingstheordinaryrevenueofthestate,hasnot,oneyearwithanother,amountedtohalfamillionayear。Thesinkingfundhas,nodoubt,beenconsiderablyaugmentedsincethepeace,bythedebtwhichhasbeenpaidoff,bythereductionoftheredeemablefourpercentstothreepercents,andbytheannuitiesforliveswhichhavefallenin,and,ifpeaceweretocontinue,amillion,perhaps,mightnowbeannuallysparedoutofittowardsthedischargeofthedebt。Anothermillion,accordingly,waspaidinthecourseoflastyear;but,atthesametime,anewcivillistdebtwasleftunpaid,andwearenowinvolvedinanewwarwhich,initsprogress,mayproveasexpensiveasanyofourformerwars。*Thenewdebtwhichwillprobablybecontractedbeforetheendofthenextcampaignmayperhapsbenearlyequaltoalltheolddebtwhichhasbeenpaidofffromthesavingsoutoftheordinaryrevenueofthestate。Itwouldbealtogetherchimerical,therefore,toexpectthatthepublicdebtshouldeverbecompletelydischargedbyanysavingswhicharelikelytobemadefromthatordinaryrevenueasitstandsatpresent。*Ithasprovedmoreexpensivethanallofourformerwars;andhasinvolvedusinanadditionaldebtofmorethanonehundredmillions。Duringaprofoundpeaceofelevenyears,littlemorethantenmillionsofdebtwaspaid;duringawarofsevenyears,morethanonehundredmillionswascontracted。
ThepublicfundsofthedifferentindebtednationsofEurope,particularlythoseofEngland,havebyoneauthorbeenrepresentedastheaccumulationofagreatcapitalsuperaddedtotheothercapitalofthecountry,bymeansofwhichitstradeisextended,itsmanufacturesmultiplied,anditslandscultivatedandimprovedmuchbeyondwhattheycouldhavebeenbymeansofthatothercapitalonly。Hedoesnotconsiderthatthecapitalwhichthefirstcreditorsofthepublicadvancedtogovernmentwas,fromthemomentinwhichtheyadvancedit,acertainportionoftheannualproduceturnedawayfromservinginthefunctionofacapitaltoserveinthatofarevenue;frommaintainingproductivelabourerstomaintainunproductiveones,andtobespentandwasted,generallyinthecourseoftheyear,withouteventhehopeofanyfuturereproduction。Inreturnforthecapitalwhichtheyadvancedtheyobtained,indeed,anannuityinthepublicfundsinmostcasesofmorethanequalvalue。Thisannuity,nodoubt,replacedtothemtheircapital,andenabledthemtocarryontheirtradeandbusinesstothesameorperhapstoagreaterextentthanbefore;thatis,theywereenabledeithertoborrowofotherpeopleanewcapitaluponthecreditofthisannuity,orbysellingittogetfromotherpeopleanewcapitaloftheirownequalorsuperiortothatwhichtheyhadadvancedtogovernment。Thisnewcapital,however,whichtheyinthismannereitherboughtorborrowedofotherpeople,musthaveexistedinthecountrybefore,andmusthavebeenemployed,asallcapitalsare,inmaintainingproductivelabour。Whenitcameintothehandsofthosewhohadadvancedtheirmoneytogovernment,thoughitwasinsomerespectsanewcapitaltothem,itwasnotsotothecountry,butwasonlyacapitalwithdrawnfromcertainemploymentsinortobeturnedtowardsothers。
Thoughitreplacedtothemwhattheyhadadvancedtogovernment,itdidnotreplaceittothecountry。Hadtheynotadvancedthiscapitaltogovernment,therewouldhavebeeninthecountrytwocapitals,twoportionsoftheannualproduce,insteadofone,employedinmaintainingproductivelabour。
Whenfordefrayingtheexpenseofgovernmentarevenueisraisedwithintheyearfromtheproduceoffreeorunmortgagedtaxes,acertainportionoftherevenueofprivatepeopleisonlyturnedawayfrommaintainingonespeciesofunproductivelabourtowardsmaintaininganother。Somepartofwhattheypayinthosetaxesmightnodoubthavebeenaccumulatedintocapital,andconsequentlyemployedinmaintainingproductivelabour;butthegreaterpartwouldprobablyhavebeenspentandconsequentlyemployedinmaintainingunproductivelabour。Thepublicexpense,however,whendefrayedinthismanner,nodoubthindersmoreorlessthefurtheraccumulationofnewcapital;butitdoesnotnecessarilyoccasionthedestructionofanyactuallyexistingcapital。
Whenthepublicexpenseisdefrayedbyfunding,itisdefrayedbytheannualdestructionofsomecapitalwhichhadbeforeexistedinthecountry;bytheperversionofsomeportionoftheannualproducewhichhadbeforebeendestinedforthemaintenanceofproductivelabourtowardsthatofunproductivelabour。Asinthiscase,however,thetaxesarelighterthantheywouldhavebeenhadarevenuesufficientfordefrayingthesameexpensebeenraisedwithintheyear,theprivaterevenueofindividualsisnecessarilylessburdened,andconsequentlytheirabilitytosaveandaccumulatesomepartofthatrevenueintocapitalisagooddeallessimpaired。Ifthemethodoffundingdestroysmoreoldcapital,itatthesametimehinderslesstheaccumulationoracquisitionofnewcapitalthanthatofdefrayingthepublicexpensebyarevenueraisedwithintheyear。Underthesystemoffunding,thefrugalityandindustryofprivatepeoplecanmoreeasilyrepairthebreacheswhichthewasteandextravaganceofgovernmentmayoccasionallymakeinthegeneralcapitalofthesociety。
Itisonlyduringthecontinuanceofwar,however,thatthesystemoffundinghasthisadvantageovertheothersystem。Weretheexpenseofwartobedefrayedalwaysbyarevenueraisedwithintheyear,thetaxesfromwhichthatextraordinaryrevenuewasdrawnwouldlastnolongerthanthewar。Theabilityofprivatepeopletoaccumulate,thoughlessduringthewar,wouldhavebeengreaterduringthepeacethanunderthesystemoffunding。Warwouldnotnecessarilyhaveoccasionedthedestructionofanyoldcapitals,andpeacewouldhaveoccasionedtheaccumulationofmanymorenew。Warswouldingeneralbemorespeedilyconcluded,andlesswantonlyundertaken。Thepeoplefeeling,duringthecontinuanceofthewar,thecompleteburdenofit,wouldsoongrowwearyofit,andgovernment,inordertohumourthem,wouldnotbeunderthenecessityofcarryingitonlongerthanitwasnecessarytodoso。Theforesightoftheheavyandunavoidableburdensofwarwouldhinderthepeoplefromwantonlycallingforitwhentherewasnorealorsolidinteresttofightfor。Theseasonsduringwhichtheabilityofprivatepeopletoaccumulatewassomewhatimpairedwouldoccurmorerarely,andbeofshortercontinuance。Those,onthecontrary,duringwhichtheabilitywasinthehighestvigourwouldbeofmuchlongerdurationthantheycanwellbeunderthesystemoffunding。
Whenfunding,besides,hasmadeacertainprogress,themultiplicationoftaxeswhichitbringsalongwithitsometimesimpairsasmuchtheabilityofprivatepeopletoaccumulateevenintimeofpeaceastheothersystemwouldintimeofwar。ThepeacerevenueofGreatBritainamountsatpresenttomorethantenmillionsayear。Iffreeandunmortgaged,itmightbesufficient,withpropermanagementandwithoutcontractingashillingofnewdebt,tocarryonthemostvigorouswar。TheprivaterevenueoftheinhabitantsofGreatBritainisatpresentasmuchencumberedintimeofpeace,theirabilitytoaccumulateisasmuchimpairedasitwouldhavebeeninthetimeofthemostexpensivewarhadthepernicioussystemoffundingneverbeenadopted。
Inthepaymentoftheinterestofthepublicdebt,ithasbeensaid,itistherighthandwhichpaystheleft。Themoneydoesnotgooutofthecountry。Itisonlyapartoftherevenueofonesetoftheinhabitantswhichistransferredtoanother,andthenationisnotafarthingthepoorer。Thisapologyisfoundedaltogetherinthesophistryofthemercantilesystem,andafterthelongexaminationwhichIhavealreadybestoweduponthatsystem,itmayperhapsbeunnecessarytosayanythingfurtheraboutit。Itsupposes,besides,thatthewholepublicdebtisowingtotheinhabitantsofthecountry,whichhappensnottobetrue;theDutch,aswellasseveralotherforeignnations,havingaveryconsiderableshareinourpublicfunds。
Butthoughthewholedebtwereowingtotheinhabitantsofthecountry,itwouldnotuponthataccountbelesspernicious。
Landandcapitalstockarethetwooriginalsourcesofallrevenuebothprivateandpublic。Capitalstockpaysthewagesofproductivelabour,whetheremployedinagriculture,manufactures,orcommerce。Themanagementofthosetwooriginalsourcesofrevenuebelongtotwodifferentsetsofpeople;theproprietorsofland,andtheownersoremployersofcapitalstock。
Theproprietoroflandisinterestedforthesakeofhisownrevenuetokeephisestateinasgoodconditionashecan,bybuildingandrepairinghistenants’houses,bymakingandmaintainingthenecessarydrainsandenclosures,andallthoseotherexpensiveimprovementswhichitproperlybelongstothelandlordtomakeandmaintain。Butbydifferentland—taxestherevenueofthelandlordmaybesomuchdiminished,andbydifferentdutiesuponthenecessariesandconveniencesoflifethatdiminishedrevenuemayberenderedofsolittlerealvalue,thathemayfindhimselfaltogetherunabletomakeormaintainthoseexpensiveimprovements。Whenthelandlord,however,ceasestodohispart,itisaltogetherimpossiblethatthetenantshouldcontinuetodohis。Asthedistressofthelandlordincreases,theagricultureofthecountrymustnecessarilydecline。
When,bydifferenttaxesuponthenecessariesandconveniencesoflife,theownersandemployersofcapitalstockfindthatwhateverrevenuetheyderivefromitwillnot,inaparticularcountry,purchasethesamequantityofthosenecessariesandconvenienceswhichanequalrevenuewouldinalmostanyother,theywillbedisposedtoremovetosomeother。
Andwhen,inordertoraisethosetaxes,allorthegreaterpartofmerchantsandmanufacturers,thatis,allorthegreaterpartoftheemployersofgreatcapitals,cometobecontinuallyexposedtothemortifyingandvexatiousvisitsofthetax—gatherers,thedispositiontoremovewillsoonbechangedintoanactualremoval。Theindustryofthecountrywillnecessarilyfallwiththeremovalofthecapitalwhichsupportedit,andtheruinoftradeandmanufactureswillfollowthedeclensionofagriculture。
Totransferfromtheownersofthosetwogreatsourcesofrevenue,landandcapitalstock,fromthepersonsimmediatelyinterestedinthegoodconditionofeveryparticularportionofland,andinthegoodmanagementofeveryparticularportionofcapitalstock,toanothersetofpersons(thecreditorsofthepublic,whohavenosuchparticularinterest),thegreaterpartoftherevenuearisingfromeithermust,inthelong—run,occasionboththeneglectofland,andthewasteorremovalofcapitalstock。Acreditorofthepublichasnodoubtageneralinterestintheprosperityoftheagriculture,manufactures,andcommerceofthecountry,andconsequentlyinthegoodconditionofitslands,andinthegoodmanagementofitscapitalstock。
Shouldtherebeanygeneralfailureordeclensioninanyofthesethings,theproduceofthedifferenttaxesmightnolongerbesufficienttopayhimtheannuityorinterestwhichisduetohim。Butacreditorofthepublic,consideredmerelyassuch,hasnointerestinthegoodconditionofanyparticularportionofland,orinthegoodmanagementofanyparticularportionofcapitalstock。Asacreditorofthepublichehasnoknowledgeofanysuchparticularportion。Hehasnoinspectionofit。Hecanhavenocareaboutit。Itsruinmayinsomecasesbeunknowntohim,andcannotdirectlyaffecthim。
Thepracticeoffundinghasgraduallyenfeebledeverystatewhichhasadoptedit。TheItalianrepublicsseemtohavebegunit。GenoaandVenice,theonlytworemainingwhichcanpretendtoanindependentexistence,havebothbeenenfeebledbyit。SpainseemstohavelearnedthepracticefromtheItalianrepublics,and(itstaxesbeingprobablylessjudiciousthantheirs)ithas,inproportiontoitsnaturalstrength,beenstillmoreenfeebled。
ThedebtsofSpainareofveryoldstanding。Itwasdeeplyindebtbeforetheendofthesixteenthcentury,aboutahundredyearsbeforeEnglandowedashilling。France,notwithstandingallitsnaturalresources,languishesunderanoppressiveloadofthesamekind。TherepublicoftheUnitedProvincesisasmuchenfeebledbyitsdebtsaseitherGenoaorVenice。IsitlikelythatinGreatBritainaloneapracticewhichhasbroughteitherweaknessordesolationintoeveryothercountryshouldprovealtogetherinnocent?
Thesystemoftaxationestablishedinthosedifferentcountries,itmaybesaid,isinferiortothatofEngland。I
believeitisso。Butitoughttoberememberedthat,whenthewisestgovernmenthasexhaustedallthepropersubjectsoftaxation,itmust,incasesofurgentnecessity,haverecoursetoimproperones。ThewiserepublicofHollandhasuponsomeoccasionsbeenobligedtohaverecoursetotaxesasinconvenientasthegreaterpartofthoseofSpain。Anotherwarbegunbeforeanyconsiderableliberationofthepublicrevenuehadbeenbroughtabout,andgrowinginitsprogressasexpensiveasthelastwar,may,fromirresistiblenecessity,rendertheBritishsystemoftaxationasoppressiveasthatofHolland,orevenasthatofSpain。Tothehonourofourpresentsystemoftaxation,indeed,ithashithertogivensolittleembarrassmenttoindustrythat,duringthecourseevenofthemostexpensivewars,thefrugalityandgoodconductofindividualsseemtohavebeenable,bysavingandaccumulation,torepairallthebreacheswhichthewasteandextravaganceofgovernmenthadmadeinthegeneralcapitalofthesociety。Attheconclusionofthelatewar,themostexpensivethatGreatBritaineverwaged,heragriculturewasasflourishing,hermanufacturersasnumerousandasfullyemployed,andhercommerceasextensiveastheyhadeverbeenbefore。Thecapital,therefore,whichsupportedallthosedifferentbranchesofindustrymusthavebeenequaltowhatithadeverbeenbefore。Sincethepeace,agriculturehasbeenstillfurtherimproved,therentsofhouseshaverisenineverytownandvillageofthecountry—aproofoftheincreasingwealthandrevenueofthepeople;andtheannualamountthegreaterpartoftheoldtaxes,oftheprincipalbranchesoftheexciseandcustomsinparticular,hasbeencontinuallyincreasing—anequallyclearproofofanincreasingconsumption,andconsequentlyofanincreasingproducewhichcouldalonesupportthatconsumption。GreatBritainseemstosupportwitheaseaburdenwhich,halfacenturyago,nobodybelievedhercapableofsupporting。Letusnot,however,uponthisaccountrashlyconcludethatsheiscapableofsupportinganyburden,norevenbetooconfidentthatshecouldsupport,withoutgreatdistress,aburdenalittlegreaterthanwhathasalreadybeenlaiduponher。
Whennationaldebtshaveoncebeenaccumulatedtoacertaindegree,thereisscarce,Ibelieve,asingleinstanceoftheirhavingbeenfairlyandcompletelypaid。Theliberationofthepublicrevenue,ifithaseverbeenbroughtaboutbybankruptcy;
sometimesbyanavowedone,butalwaysbyarealone,thoughfrequentlybyapretendedpayment。
Theraisingofthedenominationofthecoinhasbeenthemostusualexpedientbywhicharealpublicbankruptcyhasbeendisguisedundertheappearanceofapretendedpayment。Ifasixpence,forexample,shouldeitherbyActofParliamentorRoyalProclamationberaisedtothedenominationofashilling,andtwentysixpencestothatofapoundsterling,thepersonwhoundertheolddenominationhadborrowedtwentyshillings,ornearfourouncesofsilver,would,underthenew,paywithtwentysixpences,orwithsomethinglessthantwoounces。Anationaldebtofaboutahundredandtwenty—eightmillions,nearlythecapitalofthefundedandunfundeddebtofGreatBritain,mightinthismannerbepaidwithaboutsixty—fourmillionsofourpresentmoney。Itwouldindeedbeapretendedpaymentonly,andthecreditorsofthepublicwouldreallybedefraudedoftenshillingsinthepoundofwhatwasduetothem。Thecalamity,too,wouldextendmuchfurtherthantothecreditorsofthepublic,andthoseofeveryprivatepersonwouldsufferaproportionableloss;andthiswithoutanyadvantage,butinmostcaseswithagreatadditionalloss,tothecreditorsofthepublic。Ifthecreditorsofthepublic,indeed,weregenerallymuchindebttootherpeople,theymightinsomemeasurecompensatetheirlossbypayingtheircreditorsinthesamecoininwhichthepublichadpaidthem。Butinmostcountriesthecreditorsofthepublicare,thegreaterpartofthem,wealthypeople,whostandmoreintherelationofcreditorsthaninthatofdebtorstowardstherestoftheirfellow—citizens。Apretendedpaymentofthiskind,therefore,insteadofalleviating,aggravatesinmostcasesthelossofthecreditorsofthepublic,andwithoutanyadvantagetothepublic,extendsthecalamitytoagreatnumberofotherinnocentpeople。Itoccasionsageneralandmostpernicioussubversionofthefortunesofprivatepeople,enrichinginmostcasestheidleandprofusedebtorattheexpenseoftheindustriousandfrugalcreditor,andtransportingagreatpartofthenationalcapitalfromthehandswhichwerelikelytoincreaseandimproveittothosewhicharelikelytodissipateanddestroyit。Whenitbecomesnecessaryforastatetodeclareitselfbankrupt,inthesamemanneraswhenitbecomesnecessaryforanindividualtodoso,afair,open,andavowedbankruptcyisalwaysthemeasurewhichisbothleastdishonourabletothedebtorandleasthurtfultothecreditor。
Thehonourofastateissurelyverypoorlyprovidedforwhen,inordertocoverthedisgraceofarealbankruptcy,ithasrecoursetoajugglingtrickofthiskind,soeasilyseenthrough,andatthesametimesoextremelypernicious。
Almostallstates,however,ancientaswellasmodern,whenreducedtothisnecessityhave,uponsomeoccasions,playedthisveryjugglingtrick。TheRomans,attheendofthefirstPunicwar,reducedtheAs,thecoinordenominationbywhichtheycomputedthevalueofalltheirothercoins,fromcontainingtwelveouncesofcoppertocontainonlytwoounces;thatis,theyraisedtwoouncesofcoppertoadenominationwhichhadalwaysbeforeexpressedthevalueoftwelveounces。Therepublicwas,inthismanner,enabledtopaythegreatdebtswhichithadcontractedwiththesixthpartofwhatitreallyowed。Sosuddenandsogreatabankruptcy,weshouldinthepresenttimesbeapttoimagine,musthaveoccasionedaveryviolentpopularclamour。
Itdoesnotappeartohaveoccasionedany。Thelawwhichenacteditwas,likeallotherlawsrelatingtothecoin,introducedandcarriedthroughtheassemblyofthepeoplebyatribune,andwasprobablyaverypopularlaw。InRome,asinalltheotherancientrepublics,thepoorpeoplewereconstantlyindebttotherichandthegreat,whoinordertosecuretheirvotesattheannualelections,usedtolendthemmoneyatexorbitantinterest,which,beingneverpaid,soonaccumulatedintoasumtoogreateitherforthedebtortopay,orforanybodyelsetopayforhim。Thedebtor,forfearofaverysevereexecution,wasobliged,withoutanyfurthergratuity,tovoteforthecandidatewhomthecreditorrecommended。Inspiteofallthelawsagainstbriberyandcorruption,thebountyofthecandidates,togetherwiththeoccasionaldistributionsofcornwhichwereorderedbythesenate,weretheprincipalfundsfromwhich,duringthelattertimesoftheRomanrepublic,thepoorercitizensderivedtheirsubsistence。Todeliverthemselvesfromthissubjectiontotheircreditors,thepoorercitizenswerecontinuallycallingouteitherforanentireabolitionofdebts,orforwhattheycalledNewTables;thatis,foralawwhichshouldentitlethemtoacompleteacquittanceuponpayingonlyacertainproportionoftheiraccumulateddebts。Thelawwhichreducedthecoinofalldenominationstoasixthpartofitsformervalue,asitenabledthemtopaytheirdebtswithasixthpartofwhattheyreallyowed,wasequivalenttothemostadvantageousNewTables。Inordertosatisfythepeople,therichandthegreatwere,uponseveraldifferentoccasions,obligedtoconsenttolawsbothforabolishingdebts,andforintroducingNewTables;andtheyprobablywereinducedtoconsenttothislawpartlyforthesamereason,andpartlythat,byliberatingthepublicrevenue,theymightrestorevigourtothatgovernmentofwhichtheythemselveshadtheprincipaldirection。Anoperationofthiskindwouldatoncereduceadebtofahundredandtwenty—eightmillionstotwenty—onemillionsthreehundredandthirty—threethousandthreehundredandthirty—threepoundssixshillingsandeightpence。InthecourseofthesecondPunicwartheAswasstillfurtherreduced,first,fromtwoouncesofcoppertooneounce,andafterwardsfromoneouncetohalfanounce;thatis,tothetwenty—fourthpartofitsoriginalvalue。BycombiningthethreeRomanoperationsintoone,adebtofahundredandtwenty—eightmillionsofourpresentmoneymightinthismannerbereducedallatoncetoadebtoffivemillionsthreehundredandthirty—threethousandthreehundredandthirty—threepoundssixshillingsandeightpence。EventheenormousdebtsofGreatBritainmightinthismannersoonbepaid。
Bymeansofsuchexpedientsthecoinof,Ibelieve,allnationshasbeengraduallyreducedmoreandmorebelowitsoriginalvalue,andthesamenominalsumhasbeengraduallybroughttocontainasmallerandasmallerquantityofsilver。
Nationshavesometimes,forthesamepurpose,adulteratedthestandardoftheircoin;thatis,havemixedagreaterquantityofalloyinit。Ifinthepoundweightofoursilvercoin,forexample,insteadofeighteenpennyweight,accordingtothepresentstandard,therewasmixedeightouncesofalloy,apoundsterling,ortwentyshillingsofsuchcoin,wouldbeworthlittlemorethansixshillingsandeightpenceofourpresentmoney。Thequantityofsilvercontainedinsixshillingsandeightpenceofourpresentmoneywouldthusberaisedverynearlytothedenominationofapoundsterling。TheadulterationofthestandardhasexactlythesameeffectwithwhattheFrenchcallanaugmentation,oradirectraisingofthedenominationofthecoin。
Anaugmentation,oradirectraisingofthecoin,alwaysis,andfromitsnaturemustbe,anopenandavowedoperation。Bymeansofitpiecesofasmallerweightandbulkarecalledbythesamenamewhichhadbeforebeengiventopiecesofagreaterweightandbulk。Theadulterationofthestandard,onthecontrary,hasgenerallybeenaconcealedoperation。Bymeansofitpieceswereissuedfromthemintofthesamedenominations,and,asnearlyascouldbecontrived,ofthesameweight,bulk,andappearancewithpieceswhichhadbeencurrentbeforeofmuchgreatervalue。WhenKingJohnofFrance,inordertopayhisdebts,adulteratedhiscoin,alltheofficersofhismintweresworntosecrecy。Bothoperationsareunjust。Butasimpleaugmentationisaninjusticeofopenviolence,whereastheadulterationisaninjusticeoftreacherousfraud。Thislatteroperation,therefore,assoonasithasbeendiscovered,anditcouldneverbeconcealedverylong,hasalwaysexcitedmuchgreaterindignationthantheformer。Thecoinafteranyconsiderableaugmentationhasveryseldombeenbroughtbacktoitsformerweight;butafterthegreateradulterationsithasalmostalwaysbeenbroughtbacktoitsformerfineness。Ithasscarceeverhappenedthatthefuryandindignationofthepeoplecouldotherwisebeappeased。
IntheendofthereignofHenryVIIIandinthebeginningofthatofEdwardVItheEnglishcoinwasnotonlyraisedinitsdenomination,butadulteratedinitsstandard。ThelikefraudswerepractisedinScotlandduringtheminorityofJamesVI。Theyhaveoccasionallybeenpractisedinmostothercountries。
ThatthepublicrevenueofGreatBritaincanneverbecompletelyliberated,oreventhatanyconsiderableprogresscaneverbemadetowardsthatliberation,whilethesurplusofthatrevenue,orwhatisoverandabovedefrayingtheannualexpenseofthepeaceestablishment,issoverysmall,itseemsaltogetherinvaintoexpect。Thatliberation,itisevident,canneverbebroughtaboutwithouteithersomeveryconsiderableaugmentationofthepublicrevenue,orsomeequallyconsiderablereductionofthepublicexpense。
Amoreequalland—tax,amoreequaltaxupontherentofhouses,andsuchalterationsinthepresentsystemofcustomsandexciseasthosewhichhavebeenmentionedintheforegoingchaptermight,perhaps,withoutincreasingtheburdenofthegreaterpartofthepeople,butonlydistributingtheweightofitmoreequallyuponthewhole,produceaconsiderableaugmentationofrevenue。Themostsanguineprojector,however,couldscarceflatterhimselfthatanyaugmentationofthiskindwouldbesuchascouldgiveanyreasonablehopeseitherofliberatingthepublicrevenuealtogether,orevenofmakingsuchprogresstowardsthatliberationintimeofpeaceaseithertopreventortocompensatethefurtheraccumulationofthepublicdebtinthenextwar。
ByextendingtheBritishsystemoftaxationtoallthedifferentprovincesoftheempireinhabitedbypeopleofeitherBritishorEuropeanextraction,amuchgreateraugmentationofrevenuemightbeexpected。This,however,couldscarce,perhaps,bedone,consistentlywiththeprinciplesoftheBritishconstitution,withoutadmittingintotheBritishParliament,orifyouwillintothestatesgeneraloftheBritishempire,afairandequalrepresentationofallthosedifferentprovinces,thatofeachprovincebearingthesameproportiontotheproduceofitstaxesastherepresentationofGreatBritainmightbeartotheproduceofthetaxeslevieduponGreatBritain。Theprivateinterestofmanypowerfulindividuals,theconfirmedprejudicesofgreatbodiesofpeopleseem,indeed,atpresent,toopposetosogreatachangesuchobstaclesasitmaybeverydifficult,perhapsaltogetherimpossible,tosurmount。Without,however,pretendingtodeterminewhethersuchaunionbepracticableorimpracticable,itmaynot,perhaps,beimproper,inaspeculativeworkofthiskind,toconsiderhowfartheBritishsystemoftaxationmightbeapplicabletoallthedifferentprovincesoftheempire,whatrevenuemightbeexpectedfromitifsoapplied,andinwhatmannerageneralunionofthiskindmightbelikelytoaffectthehappinessandprosperityofthedifferentprovincescomprehendedwithinit。SuchaspeculationcanatworstberegardedbutasanewUtopia,lessamusingcertainly,butnotmoreuselessandchimericalthantheoldone。
Theland—tax,thestamp—duties,andthedifferentdutiesofcustomsandexciseconstitutethefourprincipalbranchesoftheBritishtaxes。
Irelandiscertainlyasable,andourAmericanandWestIndianplantationsmoreabletopayaland—taxthanGreatBritain。Wherethelandlordissubjectneithertotithenorpoor—rate,hemustcertainlybemoreabletopaysuchataxthanwhereheissubjecttoboththoseotherburdens。Thetithe,wherethereisnomodus,andwhereitisleviedinkind,diminishesmorewhatwouldotherwisebetherentofthelandlordthanaland—taxwhichreallyamountedtofiveshillingsinthepound。
Suchatithewillbefoundinmostcasestoamounttomorethanafourthpartoftherealrentoftheland,orofwhatremainsafterreplacingcompletelythecapitalofthefarmer,togetherwithhisreasonableprofit。Ifallmodusesandallimpropriationsweretakenaway,thecompletechurchtitheofGreatBritainandIrelandcouldnotwellbeestimatedatlessthansixorsevenmillions。IftherewasnotitheeitherinGreatBritainorIreland,thelandlordscouldaffordtopaysixorsevenmillionsadditionalland—taxwithoutbeingmoreburdenedthanaverygreatpartofthemareatpresent。Americapaysnotithe,andcouldthereforeverywellaffordtopayaland—tax。ThelandsinAmericaandtheWestIndies,indeed,areingeneralnottenantednorleasedouttofarmers。Theycouldnotthereforebeassessedaccordingtoanyrent—roll。ButneitherwerethelandsofGreatBritain,inthe4thofWilliamandMary,assessedaccordingtoanyrent—roll,butaccordingtoaverylooseandinaccurateestimation。ThelandsinAmericamightbeassessedeitherinthesamemanner,oraccordingtoanequitablevaluationinconsequenceofanaccuratesurveylikethatwhichwaslatelymadeintheMilanese,andinthedominionsofAustria,Prussia,andSardinia。
Stamp—duties,itisevident,mightbeleviedwithoutanyvariationinallcountrieswheretheformsoflawprocess,andthedeedsbywhichpropertybothrealandpersonalistransferred,arethesameornearlythesame。
Theextensionofthecustom—houselawsofGreatBritaintoIrelandandtheplantations,provideditwasaccompanied,asinjusticeitoughttobe,withanextensionofthefreedomoftrade,wouldbeinthehighestdegreeadvantageoustoboth。AlltheinvidiousrestraintswhichatpresentoppressthetradeofIreland,thedistinctionbetweentheenumeratedandnon—enumeratedcommoditiesofAmerica,wouldbeentirelyatanend。ThecountriesnorthofCapeFinisterrewouldbeasopentoeverypartoftheproduceofAmericaasthosesouthofthatCapearetosomepartsofthatproduceatpresent。ThetradebetweenallthedifferentpartsoftheBritishempirewould,inconsequenceofthisuniformityinthecustom—houselaws,beasfreeasthecoastingtradeofGreatBritainisatpresent。TheBritishempirewouldthusaffordwithinitselfanimmenseinternalmarketforeverypartoftheproduceofallitsdifferentprovinces。SogreatanextensionofmarketwouldsooncompensatebothtoIrelandandtheplantationsallthattheycouldsufferfromtheincreaseofthedutiesofcustoms。
TheexciseistheonlypartoftheBritishsystemoftaxationwhichwouldrequiretobevariedinanyrespectaccordingasitwasappliedtothedifferentprovincesoftheempire。ItmightbeappliedtoIrelandwithoutanyvariation,theproduceandconsumptionofthatkingdombeingexactlyofthesamenaturewiththoseofGreatBritain。InitsapplicationtoAmericaandtheWestIndies,ofwhichtheproduceandconsumptionaresoverydifferentfromthoseofGreatBritain,somemodificationmightbenecessaryinthesamemannerasinitsapplicationtothecyderandbeercountiesofEngland。
Afermentedliquor,forexample,whichiscalledbeer,butwhich,asitismadeofmolasses,bearsverylittleresemblancetoourbeer,makesaconsiderablepartofthecommondrinkofthepeopleinAmerica。Thisliquor,asitcanbekeptonlyforafewdays,cannot,likeourbeer,bepreparedandstoredupforsaleingreatbreweries;buteveryprivatefamilymustbrewitfortheirownuse,inthesamemannerastheycooktheirvictuals。
Buttosubjecteveryprivatefamilytotheodiousvisitsandexaminationofthetax—gatherers,inthesamemanneraswesubjectthekeepersofalehousesandthebrewersforpublicsale,wouldbealtogetherinconsistentwithliberty。Ifforthesakeofequalityitwasthoughtnecessarytolayataxuponthisliquor,itmightbetaxedbytaxingthematerialofwhichitismade,eitherattheplaceofmanufacture,or,ifthecircumstancesofthetraderenderedsuchanexciseimproper,bylayingadutyuponitsimportationintothecolonyinwhichitwastobeconsumed。
BesidesthedutyofonepennyagallonimposedbytheBritishParliamentupontheimportationofmolassesintoAmerica,thereisaprovincialtaxofthiskindupontheirimportationintoMassachusettsBay,inshipsbelongingtoanyothercolony,ofeightpencethehogshead;andanotherupontheirimportation,fromthenortherncoloniesintoSouthCarolina,offivepencethegallon。Orifneitherofthesemethodswasfoundconvenient,eachfamilymightcompoundforitsconsumptionofthisliquor,eitheraccordingtothenumberofpersonsofwhichitconsisted,inthesamemannerasprivatefamiliescompoundforthemalt—taxinEngland;oraccordingtothedifferentagesandsexesofthosepersons,inthesamemannerasseveraldifferenttaxesareleviedinHolland;ornearlyasSirMatthewDeckerproposesthatalltaxesuponconsumablecommoditiesshouldbeleviedinEngland。