$ 54 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 1814, 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 o 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 M'Culloch is convinced that, were the laws prohibiting importation repealed, the price would not exceed, on an average of years, the moderate sum of 50s.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 in 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determining, of course, in every particular case, the rate of diminution according to the date at which the loan was originally made. wor) 1000,000,0 In holding these views, our author avowedly adopts the opi nion of Mr. Malthus on the same subject, introduced into his pamphlet, On the Policy of restricting the Importation of Foreign Corn." It can scarcely be doubted," says that judicious 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 40s. a quarter, and labour and other commodities nearly in proportion, there can be no doubt that the stockholder would be benefited un fairly at the expense of the industrious classes of society, and, consequently, at the expense of the wealth and prosperity of th whole country. In the course of these twenty years (from 1794 to 1813) the government borrowed near, 500,000,000. of real capital, for which, on a rough average, exclusively of the sinking fund, it engaged to pay about 5 per cent. But if corn should fall to 50s, a quarter, and other commodities in proportion, instead of an interest of about 5 per cent, the government would 9 the really pay an interest of 7, 8, 9, and, for the last 200,000,000% 10 per cent bvb zul 1609 bar boboribios ew mid of sub jdon To this extraordinary generosity towards the stockholder," say noth say 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; that is by all those whose nominal incomes will vary with the varintions in the measure of value. The nominal revenues of this part of the society, compared with the average of the last five years, wilk be diminished one half; and out of this nominally reduced income, they will have to pay the same nominal amount of taxation." beIf 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 propor tion 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 the customs and excise, the pressure will appear to be absolutely intolerable. Nor would even the ad valorem taxes afford any real relief. The annual 40,000,000l. (now 45,000,000%.) must at all events be paid; and if some taxes fail, others must be imposed that will be more productive.sobozni poside loss 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 payment of the present interest of the national debt." is ugla sûoniborg 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 pro portion as money rises in value. tanta debita enw reblodbots 19Leaving out of sight, however, the gross breach of faith which such a step on the part of the government would seem to imply, we have great doubts of the efficacy of the whole plan, regarded as the means of relieving us from our financial embar rassments.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 objectioner the scheme proposed in the work before us, for restoring in some degree, the equilibrium between the means and the burthens of the people. But, viewed in the light of an Independent and original measure, instituted with a specific * corresponding to the price of wheat at 50s. the quarter, would, in a short time, lower the nominal amount of all incomes; 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 of 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 value but in other respects, financial respects we mean, we should find. ourselves exactly where we were. Trade would, no doubt, be somewhat benefited by 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. McCulloch. 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, 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 of the government in the time of peace. as As the only real plan for paying off the national debt consists in having a portion of free revenue, over and above the average expenditure of the country, it will be necessary to raise by a specific tax, such a sum of money as will, together with a certain part of the present sinking fund, still to be retained, enable the commissioners to redeem about ten millions yearly. Now, instead of imposing the tax in question on the stockholder alone, Ta 2 we would impose it on all real property, and also on certain de scriptions of income. Money, in all probability, will rise in value, notwithstanding the operation of the cornbill the high prices at present being, we imagine, the effect of the unusually unfavourable season, more than of any artificial cause; and, in this case, we so far agree with Mr. M'Culloch as to maintain that the fundholder would not have any just ground for com plaint, 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 many pers sonso 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. onotheir incomes; in every instance, at least, where there has been nol reduction of salary since the peace, and where that salary exceeds 500/per annum Allosinecures, also, should be subjected to the same taxe in fully and all pensions above 2004 a year. From the funds, sinecures, pensions, and large government salaries, the amount might be about 3,300,000l. During the operation of the late property tax bill, the proportion contributed by lands holders was rather more than 4,000,000%; and by the occupiers of lands fully one half of that sum, making in all more than 6,000,000l. Now if the former of these classes were to be taxed at 5 per cent. on their income, we should have, for the object under our consideration, an additional 2,000,000/ 28 Farmers paying rents of 1501. and upwards, should be taxed 2 per cent. on their income. Tradesmen and professional people should pay at the same rate, when their income amounts to 100/and does not exceed 500; above that sum its ought to be staked 5 per cent. 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 highest assessment. This modified property tax would, perhaps, produce not less than $6,000,000lia sum nearly equal to the saving contemplated by Mr. McCullochs in his plan for reducing the interest of the national debtisiz ybs9rle From property in the funds, at 10 per cent. 103,100,00010 From pensions, sinecures, and public salaries, ate ed aum ST 10 per cent.. DVD.Tlizom, is Ju...Ñ0150,000E I Is From landowners, and the proprietors or houses,deild.ates and at 5 per cent. brow arods Indi, pa 4000.000 2,000,0009l From occupiers of land 000.000.8.tur zqpdrag. 500,000 o From trades and professions: Heo Jul. W. buut 800,000d From naval and military establishments 90.91...000100,000da to enoit&Josqxs sur to list tigim ti toile 19vewod blow xet £6,550,000 B A 2 → |