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to the price of wheat, of the value of money at the time, the debt due to him was contracted, and that his dividends should be regulated by the standard so obtained. For example, we shall suppose that the interest payable to a particular stockholder, who purchased in the funds any time between 1809 and 18145 was at that time worth twenty quarters of wheat, the average price of that article in the years now mentioned being 108S , if, then, wheat and other commodities should fall so much in price as to enable the same stockholder to purchase forty quarters of wheat with the interest payable to him, it is obvious, says, our author, that this person will reap an undue advantage to the prejudice of the public. From 1797 to 1813 the average price of bread-corn was about 85S., and Mr. M‘Culloch is convinced that were the laws prohibiting importation repealed, the price would not exceed, on an average

the moderate sum of 50s. ; wherefore, proceeding on this principle, he imagines no injury would be inflicted on the fundholder were his dividends, diminished in the ratio iņ which money, compared with corn, augments in real marketable value, determining, of course, in every particular case, the rate of diminution according to the date at which the loan was originally made. A wop 1000.000,00 * In holding these views, our author avowedly adopts, the opit, nion of Mr. Malthus on the same subject, introduced into his pamphlety: On the Policy of restricting the Importation of Foreign Corn. “It can scarcely be doubted,” says that judi, cious writer, " that one of the main causes which has enabled us, hitherto to support, with almost undiminished resources, the prodigious weight of debt which has been accumulated during the last 20 years, is the continued depreciation of the measure in which it has been estimated, and the great stimulus, to in dustry, and power of accumulation, which have been given to the industrious classes of society by the progressive rise of prices As far as this was occasioned by excessive issues of paper, the stockholder was unjustly treated, and the industrious classes of society benefited unfairly at his expense. But, on the, other hand, if the price of corn were now to fall to 40se a quarter... and labour and other commodities nearly in proportion, there can be no doubt that the stockholder would be benefited fairly, at the expense of the industrious classes of society, and, consequently, at the expense of the wealth and prosperity of t whole country. In the course of these twenty years (from 1794 to 1813), the government borrowed near 500,000,000l. of real capital, for which, on a rough average, exclusively of the sinking fundit engaged to pay, about 5 per cent. But if corn should fall to 50s, ta quarter, and other commodities in proportion, in, stead of an interest of about 5 per cent., the government would

of years,

really pay ani interest of 708, 9, and, for the last 200,000,000/. 10 per cent. bivi:) cul 18i?!

118' 10') W Blind ót 9.5 cm 9* To this extraordinary generosity towards the stockholder,"! sayy Mr. Malthus, I should be disposed to make no kind of objection, if it were not necessary to consider by whom it is to be paid; and a moment's reflection will show us that it can only be paid by the industrious classes of society and the landlords ; thati is, by all those whose nominal incomes will vary with the variations in the measure of value. The nominal revenues of this part: of the society, compared with the average of the last five years wil! be diminished one half; and out of this nominally reduced income, they will havě to pay the same nominal amount of taxation." h If we consider with what an increased weight the taxes on tea, sugar, leather, malt, soap, candles, &c. &c., would in this case bear on the labouring classes of society," and what propora tfon of their income all the active, industrious, middle orders of the state, as well as the higher orders, must pay in assessed taxes, and the various articles of tlie eustoms and excise, the pressure will appear to be absolutely intolerable. Nor would even the ad valorem taxes afford


real relief. The annual 40,000,000l. (now 45,000,000l.) must at all events be paid; and if some taxes fail

, others must be imposed that will be more productive!" . Dorin

JES: Virvoin 10" These are considerations sufficient to alarm even the stockholders themselves. Indeed, if the measure of value were really to fall, as we have supposed, there is great reason to fear that the country would be absolutely unable to continue the paymenti of the present interest of the national debt." Hin Borsboro 9" At this point Mr. Malthus stops. He calculates indeed that, were prices to fall, the amount to which the stockholder would be unfairly benefited, at the expense of the industrious classes, would not be less than 8,000,000l. annually; and Mr. M'Culloch steps in and says, Reduce the interest of the public debt in pro4 portion as money rises in value..., Stara 14 punta

1 Leaving out of sight, however, the gross breach of faith which such a step on 71 imply, we have great doubts of the efficacy of the whole plan, regarded as the means of relieving us from our financial embarrassments." Were money, indeed, from the operation of natural causes to rise considerably in value, and were a corresponding inability to be experienced by the country at large to pay the usual contributions to the state, we could, in such circumstances, see no objection to the scheme proposed in the work before us, for restoring, 'n some degree, the equilibrium between the means and the burthens of the people. But, viewed in the light of an independerit and driginal measure, ' nstituted with a specific

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object, and proceeding on a positive interference of the legislature, it does not appear to us as at all likely to realize the advantages which it is meant to produce, nor to compensate for the many evils which could not fail to attend upon an open violation of the public faith.

29199 e 1909 9 TOT ELTA 9200 In the first place, were the scheme in question adopted, were prices lowered, and the interest of the national debt reduced, the government would instantly find it incumbent upon them to construct a new scale of taxation for land-owners and land occupiers for it is extremely obvious, and our author himself admits it, that, were the value of agricultural produce to be lessened by legislative interference, the agriculturists would have a just claim to demand a diminution of their burdens. In the event of a repeal of the corn-laws and this repeal forms the basis of the whole system wheat, as has been already mentioned, would probably sell in this country, on an average of years, at 50s. the quarter on which account the landlord and farmer would have an unquestionable right to insist, that all taxes imposed on land, when corn sold for 80 or 100s., should be reduced in proportion to the fall of their produce consequent on the repeal.

ofred DLOOW 'It deserves to be noticed, too, in the second place, that as, in the

circumstances now imagined, the most of manufactured commodities would be expected to fall in price, in order to meet the

standard of value, so would it become expedient to lower several of the taxes affecting those commodities, otherwise the tax, bearing a greater proportion than formerly to the whole expense of any particular article, would not only be felt as "a greater burden both by manufacturer and consumer; but would also present a much stronger temptation to the mischievous prace tice of smuggling. In many instances, indeed, nearly the whole fall that would take place in the price of goods would have to come off the wages of labour, and as the raw material in gene ral makes but a small part of the gross price of manufactures, the fall now spoken of, supposing taxes to remain undiminished, could not be such as to enable the manufacturer to carry wares much cheaper to market. Were it expected, for example, that, a pair of shoes, sold at present at 12., should, on the change anticipated in the value of money, be sold at 9., it is évident the greater part of the difference would have to be deducted from the wages of the workmen ; for any fall in the price of hides, short of giving them for nothing, would not enable the shoemaker to sell his shoes three shillings cheaper. Taxes must be lowered, as well as labour and the raw material, to secure a fall in prices equal to the projected rise in the value of money. ona BSCIBISA 90 o de Doutore

to tika HIBI in the third place, a rise in the value of money 9001s 19810090€ 901 nro Sole Surp H 901 tao go to 089126


corresponding, to the

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the price

e of wheat. at 50s, the quarters would, in a short time, lower the nominal amount of all comes; not only those of landlords, farmers, proprietors of houses, and of the clergy over the whole kingdom ; but also those arising from the higher species of labour in the arts, as well as from the liberal professions : and this change in the income of individuals would necessarily lead to a new scale of taxation in every department of the revenue. In fact, the rise of value in the currency, on which the whole argument of our author turns, could not possibly take place but as the effect or the accompaniment of a diminished circulation ; and as every person would, in that case, have a smaller portion for his share than formerly, it it scarcely necessary to add that he could not pay to the government, in the shape of taxes, as much as he used to do when his share was greater. It would, therefore, be

no use whatever, as far as an immediate accommodation to the financier is considered, to reduce the interest of the national debt after having raised the value of money; for it must be clear, we think, from the facts just stated, that the taxes, which it would be necessary to reduce would amount nearly to the whole sum saved by diminishing the dividends. We should only have changed our scale of prices and lowered our standard of values but in other respects, financial respects we mean, we should find ourselves exactly where we were. Trade would, no doubt, be somewhat benefited such a measure, and our manufacturers would be placed on more advantageous ground: but agriculture, on the other hand, would suffer a corresponding depression; much fixed capital would be lost, and the annual amount of produce would be considerably lessened. It is a question of the very first magnitude, then, to determine whether our condition would or would not be improved on the whole, by the change urged upon us by Mr. M‘Culloch. He thinks, decidedly, it would be improved; that is, he holds commerce to be of more consequence to this country than agriculture, and we intend, by and by, to give his reasoning on this subject somewhat at length, as being, in our opinion, closely connected with the leading doctrines of finance meantime, we will venture to propose our own ways and means for effectuating an actual reduction of the public debt, and for meeting the ordinary exigencies the government in the time of peace, w do 299 Vi eroil bstaub

As the only real plan for paying off the national debt consists in having a portion of free

ree revenue, over and above the average expenditure of the country, it will be

necessary to specific tax, such a sum of money as will, together with tain part of the present sinking fund, still to be retained, enable the commissioners to redeem about ten millions yearly:bi Now, instead of imposing the tax in question on the stockholder alone,

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we would impose it on all real property and also on certain de scriptions of income Money, in all probability, swill rise aan value, j notwithstanding the operation of the cornbilly the high prices at present being, we imagine, the effect of the unusually unfavourable season, more than of any artificial cause; 5 and, uin this cases we so fari agree with Mr. M‘Culloch as too maintain that the fundholder would not have any justi: ground for complaint, although a tax of ten per cent were laid upon the divi. dends. This tax alone, as applied to the funds, would produce upwards of three millions. There are, too, a great manya personso holding offices under government, whose salaries were raised during the war, and expressly because money had fallen in value. These should all pay ten per cent. on their incomes, in every instance, at least, where there has been nol reduction of salary since the peace, and where that salary exceeds 500uper annumo - All sinecures, also, should be subjected to the same tax in full, and all pensions above 2001. a year. From the funds, sinecures, pensions, and large government salaries, the amount might be about 3,300,0001. During the operations of the late property tax bill, the proportion contributed by i dandholders was rather more than 4,000,000k; and by the loccapients of landfully one half of that sum, making in aldmore Iohana 6,000,000l. Now if the former of these classes were to be taxed at 5 per cent. on their income, we should have, e for the lobject under our consideration, an additional 2,000,000/ 2. Farmers paying rents of 150l. and upwards, should be taxed 94 per centi on their income. Tradesmen and professional people should pay at the same rate, when their income amounts to loole rand does not exceed 500k; above that sum it ought ito be taked

per cento Military and naval officers, not having more thah regimental pay, should be rated at the lowest scale of taxation; but those having regiments, flag-ships, or the appointments of governors, or deputy-governors, of forts and colonies, should be charged on the higheste assessment. This modified property tax would, perhaps produce not less than 6,000,000liz a sum nearly equal to the saving contemplated by Mr. M Cullochy in his plan for reducing the interest of the national debtisie vbesilo Jo From property in the funds, at 10 per 8,100,00010 90 From pensions, sinccures, and public salariesat sd 12101

T 10 per cent. od ove old body0.1676.-1015090003 I de From landowners, and the proprietors or houses, 19 ildeteg deri at:51 per cent.

bol.2.410.000 2,000,000 9. tu Erom occupiers of land ...002.000...1020da90 1800,000.0

From trades and professionsDorbudall..buot 2800,00003

From naval and military establishinents d.ot.c.000 100.000di lo enota199qxs out to list 1:19jm ti trone Tevgwowow ***


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