continued, but is to cease and determine at once, there could be no good objection to arming the commissioners with powers on such an occasion, which might perhaps be justly reckoned oppressive were they given them to enforce the collection of a con

stant tax.

Supposing, however, that all sorts of capital might be equally assessed, still it may be urged, as was done by Mr Hume, in his remarks on Mr Hutcheson's scheme, in his Essay on Public Credit, that the labouring classes, and persons possessed of professional incomes, pay a considerable portion of the taxes, and that it would be oppressive and unjust to charge capitalists with the whole burden of the debt, of which they now bear a part only. But this objection is really fallacious. Taxation must, in the long run, raise wages in the same proportion that it raises the price of the commodities necessarily consumed by the labourer. The price of the necessaries of life is, in fact, the cost of producing labour. The supply cannot be procured if it is not paid for-And although a certain period, of greater or less extent, according to the circumstances of the country at the time, must commonly elapse before wages and prices are proportionally adjusted, there can be no doubt that, in the end, this adjustment will take place. But when wages rise in consequence of an increase of taxation, that rise must occasion an equal deduction from the profits of the capitalists; and when, on the other hand, wages fall in consequence of a reduction of taxation, the fall occasions an equal addition to the profits of the capitalists.

It appears, therefore, that the owners of capital could have no reasonable ground of complaint, because of their being called upon to discharge the principal of that part of the public debt of which the interest is now paid by the labouring classes; for, any advantage they may appear to derive from this payment of interest, is not real but nominal, being purchased at the expense of a corresponding diminution of profit. It cannot, consequently, be justly maintained, that in sacrificing a portion of their capital for the purpose of paying off the public debt, capitalists would be taking on their own shoulders a burden which at present presses equally on all classes. In all old, settled, and fully peopled countries, wages are too low to admit of the labourer contributing any considerable portion of his earnings for the support of the state. After a tax has been imposed, it may press for a while with peculiar severity on the lower classes; but such a state of things cannot be permanent. A rise of wages is seldom or never, perhaps, exactly coincident with a rise in the price of necessaries; but they have a constant tend

ency to equality, and on the average of a considerable number of years must nearly correspond. It is a fundamental principle, that whatever taxes fall, either directly or indirectly, on wages, must in the end fall almost wholly on rent or profits; and hence it follows, that, in providing for their discharge, landlords and capitalists are making no extraordinary sacrifice for the public benefit; but, in reality, are only discharging an encumbrance, which, whatever immediate mischief it may occasion to others, must at last fall entirely on themselves.

Mr Hume's objection is somewhat better founded when restricted to the case of professional men, as lawyers, physicians, &c.; for, although the incomes of such persons must always bear some proportion to the price of necessaries, they are not so directly and immediately influenced by its rise or fall. There can be no doubt, however, that the repeal of so great an amount of taxes as would follow the extinction of half the public debt, would occasion such an enhancement in the exchangeable value of money, as would lead to the speedy reduction of the nominal or money incomes of professional men. The present scale of fees would be reduced; and whatever advances a capitalist might make in the first instance, on account of his professional advisers, would be compensated by the reduced rate at which he would henceforth obtain their services.

It has been further objected to this plan, that it would cause so large a quantity of land and other fixed property to be simultaneously brought to market, as would occasion a great loss to the sellers; and that property would be forced into the hands of persons incompetent to its management. But a little reflection will serve to satisfy every one that this objection is either wholly fallacious, or at all events very greatly exaggerated. The number of buyers and lenders would be increased in the same proportion as the number of sellers and borrowers. The public creditors who were to receive payment of their claims on the state, would want an investment for their stock, and would feel anxious either to lend it to landholders, manufacturers, &c., or to purchase the property they might have to dispose of. It does not, therefore, appear that the adoption of this plan could really have the effect to force any one to part with property he was inclined to retain; it might indeed force him to borrow money upon it; but as it would, on the other hand, relieve him from an equal payment to government, he would not be in this respect in a worse condition; while he would reap his full share of the various national advantages resulting from the reduction of taxation.

It might, perhaps, be advisable, in order to occasion as little derangement as possible to the ordinary transactions of the country during the progress of the measure, to issue an increased supply of government paper, to assist in carrying it into effect. Suppose government were to commence the measure by issuing fifty millions of Exchequer bills to the holders of fifty millions of stock, which bills should be receivable in payment of the contributions of capitalists, it being at the same time declared, that if they were not used for that purpose, they should be paid in money on a specified day: Fifty millions of stock might thus be paid off without any considerable demand for the circulating medium of the country; and by immediately renewing the bills, and re-issuing them from time to time, the whole operation might be effected in a moderate space.

At the time when some conversation with respect to this plan took place in the House of Commons, it was contended that it would have the effect of throwing the whole landed property of the country into the hands of low and designing attorneys. But all apprehensions on this account might, we should think, be casily got rid of. The title of all land sold for the purpose of raising money to defray the assessment on capital, should be declared, by an act of the legislature, to be a perfect and unquestionable title. And it is easy to see, that although the title of such land might not have been good without this act, no injustice could be perpetrated by its enactment. Suppose, to illustrate this principle, that A sells a portion of an estate to defray the contribution on account of the public debt which is subsequently ascertained to belong to B; it is clear that B sustains no injury from this sale; for though his right to the estate had been previously established, he must equally have parted with the same extent of land, or its value, which has been sold under authority of the statute. There is not, therefore, any ground for supposing that this plan would have the effect of throwing the whole landed property of the country into the courts of law. On the contrary, it seems quite evident that no estates would be held by so good a title as those that were sold under the sanction of Parliament; and attorneys would certainly have less to do with them than with most others.

We do not, however, mean to say, that the adoption of this plan would not be attended with very considerable inconvenience. It was truly observed by Mr Fox, in a debate on the Bank Restriction Act, That he who talks of positive plans to go at once to the disease, who hopes to produce great good ' without hazarding some evil, is not the person from whom, in

' a situation of difficulty, much advantage is to be expected. All that is left is a choice of evils. He that talks rationally will rejoice if he can discover a remedy that, with a mix❝ture of evil, will be able to overcome the mortality of the dis' ease.'

Now, it is on the ground here laid down that we are disposed to recommend that the capital of the country should be assessed in order to procure the means of extinguishing a portion of the public debt. It is to no purpose to contend, in opposition to this measure, that it would be productive of serious inconveniences. We admit that such would be the case; but these inconveniences would necessarily be of very temporary duration, while, by consenting to submit to this sacrifice, we should get rid of a burden that must otherwise be permanent, and would enable all those taxes to be repealed which press most severely on the lower and middle classes. We have shown on former occasions that there is very little reason indeed for thinking that any considerable progress will ever be made in the extinction of our present encumbrances, by applying the surplus revenue of the country to buy up stock; and it is not very easy to conjecture what might be the consequence of so immense a debt were we again involved in war. But though peace were to be preserved for a long series of years, still our situation would not be, by any means, free from danger. The high rate of taxation to which we are subjected, must, under any circumstances, be a heavy clog on the industry of the country; and though it may not occasion our decline, it must at all events operate powerfully to retard our progress.

In his Essay on Public Credit, Mr Hume has stated, perhaps too strongly, that either the country must destroy the debt, or the debt will destroy the country. But sound policy, and the most obvious principles of justice, require that the burden should not be permitted to fall exclusively on those who have lent their capitals to the state. A real national burden cannot be removed by shifting it from the shoulders of those who justly ought to bear it, to those of another class who ought to bear no more than their fair proportion. Let us, therefore, make one great exertion to stop the farther progress of pauperism, and to relieve the pressure on the resources of the country. Let the national capital be assessed in order to pay off a large proportion of the debt; and let us not hesitate to subject ourselves to a temporary sacrifice for the sake of future security and prosperity. A country,' says Mr Ricardo, which has involved itself in the dif'ficulties attendant on a large public debt, would act wisely in VOL. XLVI. No. 92. 2 E

⚫ ransoming itself from them, at the sacrifice of any portion of its property which might be necessary for the redemption of 'the debt.'

Before concluding, we may observe, that it has sometimes been argued, that supposing this plan were carried into effect, the advantages derived from it would not really be so great as has been represented. Those who take this view of the matter contend, that as the capitalists who are at present burdened with taxes on account of the interest of the public debt, would, in the event of these taxes being repealed, and the debt paid off, have to transfer a corresponding portion of their property to the stockholders, their loss on the one hand would be exactly equivalent to their gain on the other, and the effect of the measure would therefore be really nugatory. Nothing, however, can be more marvellously incorrect than this representation. Suppose, for the sake of illustration, that the measure in question is actually carried into effect, and that a half of the public debt has been paid off. On this hypothesis, property worth about three hundred millions will have been transferred to the fundholders, and about fifteen millions of taxes will have been repealed. It is clear, therefore, on the first blush of the matter, that nothing has been lost by this proceeding; but is it not equally clear that a great deal has been gained?-By enabling fifteen millions a-year of taxes to be repealed, a reduction would be effected in the price of a vast number of commodities, and consequently in the expense of living; a rise would, therefore, take place in the rate of profit, and an immediate stop would, in consequence, be put to the efflux of capital to foreign countries; the foreign commerce of the country would be extended; and a powerful stimulus would be given to all the operations of industry-A portion of the public debt being placed to the account of every individual, and made a burden directly and exclusively affecting his own fortune, a new spirit of industry and economy would be infused into all classes. Every one would be as anxious to discharge his fortune of the encumbrances entailed upon it, in consequence of this measure, as if they had been contracted directly by himself. And if this measure were combined with the repeal of those indirect taxes to which we have already called the reader's attention, it is most probable that in a few years that portion of the capital of individuals which had been taken away by the assessment would be fully made up by increased frugality and activity.