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。