Itappearstohavebeenthecommonpracticeofantiquity，makeprovision，duringpeace，forthenecessitiesofwar，andtohoarduptreasuresbefore—hand，astheinstrumentseitherofconquestordefence;withouttrustingtoextraordinaryimpositions，muchlesstoborrowing，intimesofdisorderandconfusion。Besidestheimmensesumsabovementioned，whichwereamassedbyATHENS，andbythePTOLEMIES，andothersuccessorsofALEXANDER;welearnfromPLATO，thatthefrugalLACEDEMONIANShadalsocollectedagreattreasure;andARRIANandPLUTARCHtakenoticeofthericheswhichALEXANDERgotpossessionofontheconquestofSUSAandECBATANA，andwhichwerereserved，someofthem，fromthetimeofCYRUS。IfIrememberright，thescripturealsomentionsthetreasureofHEZEKIAHandtheJEWISHprinces;asprofanehistorydoesthatofPHILIPandPERSEUS，kingsofMACEDON。TheancientrepublicsofGAULhadcommonlylargesumsinreserve。EveryoneknowsthetreasureseizedinROMEbyJULIUS
　　CAESAR，duringthecivilwars:andwefindafterwards，thatthewiseremperors，AUGUSTUS，TIBERIUS，VESPASIAN，SEVERUS，etc。
　　alwaysdiscoveredtheprudentforesight，ofsavinggreatsumsagainstanypublicexigency。
　　Onthecontrary，ourmodernexpedient，whichhasbecomeverygeneral，istomortgagethepublicrevenues，andtotrustthatposteritywillpayofftheincumbrancescontractedbytheirancestors:Andthey，havingbeforetheireyes，sogoodanexampleoftheirwisefathers，havethesameprudentrelianceontheirposterity;who，atlast，fromnecessitymorethanchoice，areobligedtoplacethesameconfidenceinanewposterity。Butnottowastetimeindeclaimingagainstapracticewhichappearsruinous，beyondallcontroversy;itseemsprettyapparent，thattheancientmaximsare，inthisrespect，moreprudentthanthemodern;eventhoughthelatterhadbeenconfinedwithinsomereasonablebounds，andhadever，inanyinstance，beenattendedwithsuchfrugality，intimeofpeace，astodischargethedebtsincurredbyanexpensivewar。Forwhyshouldthecasebesodifferentbetweenthepublicandanindividual，astomakeusestablishdifferentmaximsofconductforeach？Ifthefundsoftheformerbegreater，itsnecessaryexpencesareproportionablylarger;ifitsresourcesbemorenumerous，theyarenotinfinite;
　　andasitsframeshouldbecalculatedforamuchlongerdurationthanthedateofasinglelife，orevenofafamily，itshouldembracemaxims，large，durable，andgenerous，agreeablytothesupposedextentofitsexistence。Totrusttochancesandtemporaryexpedients，is，indeed，whatthenecessityofhumanaffairsfrequentlyrendersunavoidable;butwhoevervoluntarilydependonsuchresources，havenotnecessity，buttheirownfolly，toaccusefortheirmisfortunes，whenanysuchbefalthem。
　　Iftheabusesoftreasuresbedangerous，eitherbyengagingthestateinrashenterprizes，ormakingitneglectmilitarydiscipline，inconfidenceofitsriches;theabusesofmortgagingaremorecertainandinevitable;poverty，impotence，andsubjectiontoforeignpowers。
　　Accordingtomodernpolicywarisattendedwitheverydestructivecircumstance;lossofmen，encreaseoftaxes，decayofcommerce，dissipationofmoney，devastationbyseaandland。
　　Accordingtoancientmaxims，theopeningofthepublictreasure，asitproducedanuncommonaffluenceofgoldandsilver，servedasatemporaryencouragementtoindustry，andatoned，insomedegree，fortheinevitablecalamitiesofwar。
　　Itisverytemptingtoaministertoemploysuchanexpedient，asenableshimtomakeagreatfigureduringhisadministration，withoutoverburtheningthepeoplewithtaxes，orexcitinganyimmediateclamoursagainsthimself。Thepractice，therefore，ofcontractingdebtwillalmostinfalliblybeabused，ineverygovernment。Itwouldscarcelybemoreimprudenttogiveaprodigalsonacreditineverybanker’sshopinLondon，thantoimpowerastatesmantodrawbills，inthismanner，uponposterity。
　　Whatthenshallwesaytothenewparadox，thatpublicincumbrances，are，ofthemselves，advantageous，independentofthenecessityofcontractingthem;andthatanystate，eventhoughitwerenotpressedbyaforeignenemy，couldnotpossiblyhaveembracedawiserexpedientforpromotingcommerceandriches，thantocreatefunds，anddebts，andtaxes，withoutlimitation？Reasonings，suchasthese，mightnaturallyhavepassedfortrialsofwitamongrhetoricians，likethepanegyricsonfollyandafever，onBISIRISandNERO，hadwenotseensuchabsurdmaximspatronizedbygreatministers，andbyawholepartyamongus。
　　Letusexaminetheconsequencesofpublicdebts，bothinourdomesticmanagement，bytheirinfluenceoncommerceandindustry;
　　andinourforeigntransactions，bytheireffectonwarsandnegociations。
　　Publicsecuritiesarewithusbecomeakindofmoney，andpassasreadilyatthecurrentpriceasgoldorsilver。Whereveranyprofitableundertakingoffersitself，howexpensivesoever，thereareneverwantinghandsenowtoembraceit;norneedatrader，whohassumsinthepublicstocks，feartolaunchoutintothemostextensivetrade;sinceheispossessedoffunds，whichwillanswerthemostsuddendemandthatcanbemadeuponhim。Nomerchantthinksitnecessarytokeepbyhimanyconsiderablecash。Bank—stock，orIndia—bonds，especiallythelatter，serveallthesamepurposes;becausehecandisposeofthem，orpledgethemtoabanker，inaquarterofanhour;andatthesametimetheyarenotidle，evenwheninhisscritoire，butbringhiminaconstantrevenue。Inshort，ournationaldebtsfurnishmerchantswithaspeciesofmoney，thatiscontinuallymultiplyingintheirhands，andproducessuregain，besidestheprofitsoftheircommerce。Thismustenablethemtotradeuponlessprofit。Thesmallprofitofthemerchantrendersthecommoditycheaper，causesagreaterconsumption，quickensthelabourofthecommonpeople，andhelpstospreadartsandindustrythroughoutthewholesociety。
　　Therearealso，wemayobserve，inENGLANDandinallstates，whichhavebothcommerceandpublicdebts，asetofmen，whoarehalfmerchants，halfstock—holders，andmaybesupposedwillingtotradeforsmallprofits;becausecommerceisnottheirprincipalorsolesupport，andtheirrevenuesinthefundsareasureresourceforthemselvesandtheirfamilies。Weretherenofunds，greatmerchantswouldhavenoexpedientforrealizingorsecuringanypartoftheirprofit，butbymakingpurchasesofland;andlandhasmanydisadvantagesincomparisonoffunds。
　　Requiringmorecareandinspection，itdividesthetimeandattentionofthemerchant;uponanytemptingofferorextraordinaryaccidentintrade，itisnotsoeasilyconvertedintomoney。andasitattractstoomuch，bothbythemanynaturalpleasuresitaffords，andtheauthorityitgives，itsoonconvertsthecitizenintothecountrygentleman。Moremen，therefore，withlargestocksandincomes，maynaturallybesupposedtocontinueintrade，wheretherearepublicdebts;andthis，itmustbeowned，isofsomeadvantagetocommerce，bydiminishingitsprofits，promotingcirculation，andencouragingindustry。
　　But，inoppositiontothesetwofavourablecircumstances，perhapsofnoverygreatimportance，weighthemanydisadvantageswhichattendourpublicdebts，inthewholeinterioroeconomyofthestate:Youwillfindnocomparisonbetweentheillandthegoodwhichresultfromthem。
　　First，Itiscertain，thatnationaldebtscauseamightyconfluenceofpeopleandrichestothecapital，bythegreatsums，leviedintheprovincestopaytheinterest;andperhaps，too，bytheadvantagesintradeabovementioned，whichtheygivethemerchantsinthecapitalabovetherestofthekingdom。Thequestionis，whether，inourcase，itbeforthepublicinterest，thatsomanyprivilegesshouldbeconferredonLONDON，whichhasalreadyarrivedatsuchanenormoussize，andseemsstillencreasing？Somemenareapprehensiveoftheconsequences。Formyownpart，Icannotforbearthinking，that，thoughtheheadisundoubtedlytoolargeforthebody，yetthatgreatcityissohappilysituated，thatitsexcessivebulkcauseslessinconveniencethanevenasmallercapitaltoagreaterkingdom。
　　ThereismoredifferencebetweenthepricesofallprovisionsinPARISandLANGUEDOC，thanbetweenthoseinLONDONandYORKSHIRE。
　　Theimmensegreatness，indeed，ofLONDON，underagovernmentwhichadmitsnotofdiscretionarypower，rendersthepeoplefactious，mutinous，seditious，andevenperhapsrebellious。Buttothisevilthenationaldebtsthemselvestendtoprovidearemedy。Thefirstvisibleeruption，orevenimmediatedanger，ofpublicdisordersmustalarmallthestockholders，whosepropertyisthemostprecariousofany。andwillmakethemflytothesupportofgovernment，whethermenacedbyJacobitishviolenceordemocraticalfrenzy。
　　Secondly，Publicstocks，beingakindofpaper—credit，haveallthedisadvantagesattendingthatspeciesofmoney。Theybanishgoldandsilverfromthemostconsiderablecommerceofthestate，reducethemtocommoncirculation，andbythatmeansrenderallprovisionsandlabourdearerthanotherwisetheywouldbe。
　　Thirdly，Thetaxes，whichareleviedtopaytheinterestsofthesedebts，areapteithertoheightenthepriceoflabour，orbeanoppressiononthepoorersort。
　　Fourthly，Asforeignerspossessagreatshareofournationalfunds，theyrenderthepublic，inamanner，tributarytothem，andmayintimeoccasionthetransportofourpeopleandourindustry。
　　Fifthly，Thegreaterpartofthepublicstockbeingalwaysinthehandsofidlepeople，wholiveontheirrevenue，ourfunds，inthatview，givegreatencouragementtoanuselessandunactivelife。
　　Butthoughtheinjury，thatarisestocommerceandindustryfromourpublicfunds，willappear，uponbalancingthewhole，notinconsiderable，itistrivial，incomparisonoftheprejudicethatresultstothestateconsideredasabodypolitic，whichmustsupportitselfinthesocietyofnations，andhavevarioustransactionswithotherstatesinwarsandnegociations。Theill，there，ispureandunmixed，withoutanyfavourablecircumstancetoatoneforit;anditisanilltooofanaturethehighestandmostimportant。
　　Wehave，indeed，beentold，thatthepublicisnoweakeruponaccountofitsdebts;sincetheyaremostlydueamongourselves，andbringasmuchpropertytooneastheytakefromanother。Itisliketransferringmoneyfromtherighthandtotheleft;whichleavesthepersonneitherrichernorpoorerthanbefore。Suchloosereasoningsandspeciouscomparisonswillalwayspass，wherewejudgenotuponprinciples。Iask，Isitpossible，inthenatureofthings，tooverburthenanationwithtaxes，evenwherethesovereignresidesamongthem？Theverydoubtseemsextravagant;sinceitisrequisite，ineverycommunity，thattherebeacertainproportionobservedbetweenthelaboriousandtheidlepartofit。Butifallourpresenttaxesbemortgaged，mustwenotinventnewones？Andmaynotthismatterbecarriedtoalengththatisruinousanddestructive？
　　Ineverynation，therearealwayssomemethodsoflevyingmoneymoreeasythanothers，agreeablytothewayoflivingofthepeople，andthecommoditiestheymakeuseof。InGREAT
　　BRITAIN，theexcisesuponmaltandbeeraffordalargerevenue;
　　becausetheoperationsofmaltingandbrewingaretedious，andareimpossibletobeconcealed;andatthesametime，thesecommoditiesarenotsoabsolutelynecessarytolife，asthattheraisingoftheirpricewouldverymuchaffectthepoorersort。
　　Thesetaxesbeingallmortgaged，whatdifficultytofindnewones！whatvexationandruinofthepoor！
　　Dutiesuponconsumptionsaremoreequalandeasythanthoseuponpossessions。Whatalosstothepublic，thattheformerareallexhausted，andthatwemusthaverecoursetothemoregrievousmethodoflevyingtaxes！
　　Werealltheproprietorsoflandonlystewardstothepublic，mustnotnecessityforcethemtopractisealltheartsofoppressionusedbystewards;wheretheabsenceornegligenceoftheproprietorrenderthemsecureagainstenquiry？
　　Itwillscarcelybeasserted，thatnoboundsoughtevertobesettonationaldebts;andthatthepublicwouldbenoweaker，weretwelveorfifteenshillingsinthepound，land—tax，mortgaged，withallthepresentcustomsandexcises。Thereissomething，therefore，inthecase，besidethemeretransferringofpropertyfromtheonehandtoanother。In500years，theposterityofthosenowinthecoaches，andofthoseupontheboxes，willprobablyhavechangedplaces，withoutaffectingthepublicbytheserevolutions。