[PDF]Essay on the actual resources, for reestablishing the finances of Great Britain

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Robert E. Gross
Collection

A Memorial to the Founder
of the


Business Administration Library

ll/uveriifit o^ XjoMomtia

Los Angeles


A N


ON THE


ACTUAL RESOURCES,

FOR

JREESTABLISHING THE FINANCES

0 F

GREAT BRITAIN,

B r

GEOP. GE CRAUFURD, Es^


Truths ivculd you Teach, or fa-ve a finhivg hvici ?
All fear, ?iotie aid you, and fe-~M under ji and.

Pope's EfTay on Man,


LONDON;

PRINTED FOR J. DEBRETT,
OPPOSITE BURLINGTON -HOUSE, PICCADILLY.

M Dec LX'XXV.

[ Entered at Statloners-Hall. ]


^^


CONTENTS,


IntroduHion, - - page i

SECTION I.

On the riches of a Jlale^ and on national^ and
private Indujiry, - . « ^

SECTION II.

On puhlic credit in general, and that of Great
Britain in particular. - - 16

SECTION III.

On real property J or capital and income, ^

SECTION IV.

On the circulation of money. - - 27

SECTION V.

On annual contributions or taxes. - o^S

SECTION Vf.

On public loans, - - 45

SECTION


[ iv ]

SECTION vn.

On the effc^ls, which ari/e in the circulation of
nmityfroin taxes^ and from hans. - - 5S

SECTION VIII.

Oil the means of rendering perpetual the ejfcacy
cf public loans without additional taxes. - 70

SECTION IX.

A refutation of the ohjcclions made to the fyjlem
tuhich is treated of in this work. - - 8^

SECTION X.

Recapiiuhlion. - - - 101


JNTRODUCTION.


1 H E fubjedl of the following (lieets has
already exercifed the minds of many en-
lightened individuals.

I fhall, however, wander from the beaten
track, and announce a fyftem, diametrically
oppofed to the received opinions, I may
even fay prejudices of mankind.

I am fenfible to what cenfures I expofe

myfelf by this feeming temerity, but,

knowing the iituation of my country's

finances, I (hould be wanting in duty to

A her.


[ o

her, and to my own feelings, were I to
fupprefs ideas, whicli may eventually prove
ufeful.

If my ardour for the public fervice could
have been cooled by the reception, whiclf
the firfh Iketch of this work met with from
feveral of thofe perfons, to whom it was
communicated, I fliould inftantly have
laid down my pen, and have renounced
every idea of the tafk, which J, now Impofe
•upon myfelf.

Feeling, however, invariably, and in the
ftrongeft manner, the truth of thofe prin-
ciples in finance, which I then announced,
I attribute my want of fuccefs to the man-
ner of ftating them, and think it incum-
bent on me to exert my powers of render-
ing them more clear, and conclufive.

If I am fortunate enough to be approved
of by the enlightened part of mankind,
and if I fucceed in being ultimately of fer-
vice to that community, of which I am

a member,


[ 3 ]

a member, I fliall feel myfelf amply re-
warded for my labour, and fully indemnified
for the temporary vexations, which 1 mufl
tiaturally encounter.

To Great-Britain alone I dedicate the
refult of my enquiries.

The fyllem which I am about to unfold,
cannot be effedual, but under fuch a go*
vernment^-as (he poiTeires,

In defpotic States the private interefl of
the Sovereign, or of his IMinifler, is too
frequently different from that of tlie Pub-
lic ; hut in a fi'ee country, particularly in
one, for which I write, individuals of every
clafs promote their own profperity, and
contribute to that of the nation by the
credit, which they grant, and by the taxes,
which they fubmit to.

Hitherto it has been thought, that the

moft efFedtual means of encreafing the credit

of Great-Britain, of ultimately promoting

A 2 her


[ 4 ]

her induflry, and extending her commerce,
confifted in eftablifhing a finking fund by
a furplus of taxes, and paying off gradually
an incurred debt.

I maintain on the contrary, that this
opinion is founded on error, and cannot be
too foon renounced.

The critical fituation, in which Greats
Britain at prefent flands, will indeed com-'
pel her to abandon all thoughts of a
iinkins: fund : recourfe even to annual loans
for the peace eftablifliment is become ne-
ceflary, and will, in my opinion, continue
to be at all times expedient, notwithftand-
ing that an increafe of induftry, of internal
confumption, and external commerce, (to
be procured by making ufe of loans with-
out new taxes, and by relieving the circu-
lation of money,) may raife the produce of
the exifting contributions to a level with
the annual exigencies of the flatc.

This


[ 5 ]

This Idea may at firll: fight be thought
paradoxical, but the probablHty of its being
well-founded Is apparent from a contrary
fydem having proved inefficient ; and it
follows, that the adoption of another is
now become indifpenfable.

Some confolatlon will, however, be
derived from knowing, that it is not the
reimburfement of a capital borrowed,
which obtains the confidence of monled
men, and fecures public credit In a Nation
like Great Britain, but the increafe of
faculty to pay the intercil:, and the re-
gularity obferved in the terms of its pay-
inent.

When a free people have a moral cer-
tainty, that the intereft of the fums, fub-
fcrlbed.to the public fervlce, will never be
dimlnifhed, unlefs accompanied with an
offer of reimburfement, and that this inte-«
reft will always be forthcoming at the
ftated periods, an unbounded confidence
in the Pubhc muft naturally enfue, be-

caufc


[ 6 ]

caufe the ftabillty of the annual revenue
will always fupport the intrinfic value of
the capital.

I confider the national debt as an ex-
crefcence on the body politic, and fo in-
herent to the conflitution from its nature,
that its growth even has prevented worfe
diforders from taking place ; an operation
therefore to reduce it is impolitic, and
dangerous, while cutting it oft would at-
tack the principles of life.

The Remedy, which I fhali propofe for
putting a flop to the dangers, that threaten,
Great Britain, will no doubt have the effect
of augmenting the fize of this excre-
fcence, but the body, to which it adheres^
will receive a much greater increafe of
flrength for fupporting it, and finally be
required to give a lefs quantity of nou-
riihment for its exiflence, which can only
terminate with their mutual diilblution.

I repeat.


f 7 ]

I repeat, therefore, that it is not the
reimburfement of a capital, but the foli-
dlty, and regularity in the payment of the
intereft, which produces public credit in
Great Britain, and that the ufe of this
credit may, and ought to be fubftituted in-
ftead of taxes, in order to pay the peace
eftablifhment.

I affert moreover, that this fubilitution
will increafe population, confumption, in-
duflry, and trade ; and of courfe aug-
ment the annual produce of the remaining
taxes to a much greater degree, than is
necei?[ary on account of thefe additional
loans.

But thefe general ideas require to be
fully inveftigated, and proved, which Is
the object of the following fc^lions.

Paris, Mar do lo, 1785,


AN


A N


ESSAY,


c.


SECTION I.

t)n the Riches of a State, and on National^ and
Private Indujlry^

1. H E true riches of a State confifl: in its greatefl
degree of indepcndance for every neceffary obje6l,
and in the dependance of other nations on it, for
procuring what tiieir exigencies may require.

The fortunate aflen^lage, and proper combi-
nation of three forts of riches, can alone produce
the true riches of a State.

Thefe three forts confifl; in the productions of
its foil, which are natural riches ; in national in-
duftry, which produces artificial riches; and in
the quantity of exifiing money, which confolidates
the whole, and may be called riches of convention.

B The


[ JO ]

The extent of true riches creates the political
faculties or (Irength of a nation.

This confifts principally in the number of its
inhabitants, who are fupported, and encieafed by
Agriculture and Commerce.

Agriculture takes precedency, becanre it affords
the means of fubfiftence to more people, than
thofe who cultivate, and of courfe encreafes po-
pulation, the foundation of political flrength.

It requires, however, to be affifled by Com-
merce, or that interchange of various articles which
arifes from mutual wants, and which is promoted
by Induflry. .

This principal agent, and fpur to commerce is
the afiemblage of exertions, by which an indivi-
dual fecures to himfelf whatever his wants my re-
quire, and multiplies his own enjoyments, by lay-
ing other perfoHs under contribution for thofe,
which he procures to them.

That pcrfon, who combines with mofl judg-
ment his exertions, who is the mod: fortunate in
furnifliing the objecls of enjoyment, required by
fociety, and who feizes with mofl, addrefs every

circumllancc,


[ II 1

ciicumnanre, which time, place, and opinion may
cffcr, po{Tc(1t\s of courfe the mod piodu6live fpe-
cies of Iriduffry.

It owes its origin to Genius, flimulated by ne-
ccflity, and i« to trade what agility is to flrength.

The co]lc61ion of the induftrious exertions of
Individuals forms national induftry.

The groundwork of both confifls in the re-
foiirces, which arifa from the produflions of the
foil by means of their general ufe in fupplying the
wants of all countries; in the local advantages,
which admit of thofe produdions being tranfport-
ed with eafe from one place to another; in the
more or lefs aptitude of the inhabitants to profit
by thefe circumftances, and finally in the degree of
forefight, which the government of a country dif-
plays, and in the protedion, which it grants to
individuals.

This forefight and protedion conrft in the
knowledge of thofe objects, which merit the moffc
encouragement, in the generous manner of be-
llowing fuch flimulus to produce them, and in
the inviolable fecurity of all property.

B 2 Every


[ 12 ]

Every nation fliould encourage induilry to exert
itfelf principally on the produ6lions of its own
foil, and in giving the niofl ufeful, and the mofl
variegated forms, becaufe that nation, which has
the art of giving the greateft variety to its ovvi>
produdions, is no doubt the mofl profitably in-
duflrious, and the moil independent.

In no country is property move facredly fecured,
or every fpecies of induftry more encouraged than
in Great-Britain : nor are greater abilities to be
found for the purpofe of difculling the interefl; of
the Nation, and for fuperintending public, and
private induilry, than in both Houfes of Parlia-
ment, compofed of Men of every profeflion.

No Hiftory, like that of Great-Britain, affords
examples of fuch generous encouragements, and
of fuch ample rewards given to genius and abilities.

The exertions of individuals mufl: naturally be
in proportion, and Great-Britain is aniply repaid
by the excellence of her Government, and by the
patriotic zeal, which animates the whole Empire,
for what Nature has refufed her in point of fitua-
tion, or produdlions, and bellowed on other
countries.

The


r -3 ]

The encouragement given to Tnduftry fhould
particulaily have in view the means of improving
the quality of every neceflary article of confump-
tion, iis alfo of facilitating their produ6lion, and
the mode of manufaduring them, for the purpofe
of dccreafing their price.

The diminution of price will of courfe psrmit
the purchafe of them by a greater number of In-
dividuals, and increafe the national flrength ; be-
caufe the advantages derived to a State confift in
the greater confumption, which augments its ac-
tual re.fources in finance, and, by encouraging
greater pvoduftion, incieafcs the ftimulus to fur-
ther population.

Thofe people, who are of opinion, that, by
laying luxury only under contribution, an equi-
valent rcfource to that levied on articles of nc-
ccffity is to be procured, are much deceived.

Fiditious wants have certain bounds, which
difcretion regulates, and which the generality of
mankind do not pafs.

They even renounce every idea of them, when
incompatible with their faculty of indulging in
them.

Additional


[ 14 ]

Additional contributions mufl infallibly increafe
their price, and, caufing lefs confumption, de-
creafe the annual amount of thofe, which already
exifted.

No refource is then left for the deficiency, but
that of reverting to the objeds of neceffity.

This only alternative is the more alarming, if
thofe obje61s of neceffity are overburthened with
contributions, and may be compared to the opera-
tion of bleeding a human body, already enervated.

I conclude therefore, that private Induftry
fhould be encouraged, aod directed towards im-
proving, as well as reducing in price every article
of neceffity, and giving more comforts to a greater
number of Individuals.

The increafe of population by thefe means is the
furefl Cgn of perfeftion in the meafures of every
goveinment, and a certain pledge of the accumulat-
ing riches and profperity of a ftate.

The import and export trades of a country are
fo much conneded with internal Induftry, that the
inveftigation of them in this place would not be
improper, but as it would lead me into a difcuffion

entirely


[ '5 ]

entirely foreign to the fubje^L of this work, and
occafion my readers to lofe fight of the obJeiH: I
have in view, I fhall confine myfclf to faying, that
hberty of trade is the foul of Induftry ; thdt pro-
hibitions and cxclufive Diivileges are the deRruc-
tion of it; and that every wife, and enh'ghtened
government has it in its power to flop the bad
efPedls of this Hberty, by varying from time to
time the duties on importation, and on exporta-
tion, for the purpofe of encouraging national
Jndullry, and for preventing a dearth as circum-
ftances may aiife.


SECTION


[ ^6 ]


SECTION II.

On puUic credit in general^ end that of Great-
Britain in particular.

XUBLIC credit may be confiderecl as an
eflential part of the political ilrength of a nation,
and is a ftandard of the confidence, which indivi-
duals have in the riches, and refources of a State.

This confequence is more or lefs extenfive ac-
cording to the abilities, and integrity of thofe, who
dire£l the application of thefe refources, and wh@
watch over the interefts of the public creditors.

That Government, therefore, which unites pru*
dence and forefight in its deliberations, where
crood faith is held mo ft facred, and where the
pubhc is of courfe mod fecured in their property,
muil naturally obtain the greateil degree of credit.

The Britifli Conftitution infures in a very emi-
nent degree thefe advantages, becaufe the reins
of Government are not held by one Perfon, or

by


[ '7 ]

hy the fervants of his choice, but the whole
Nation participates in the adminiftration of public
affairs through their reprefentatives in j-'arHament,
over whom it watches, and to whom each indivi-
dual may afpire to fucceed.

By this fyftcm private intcreft, intrigue, party
rage, and oppreffion, have Icfs power, and pro-
duce lefs bad confequences, while patriotifm, which
Simulates to public Tervice, has a nioft powerful
afcendency.

Whenever the events of war, or national efla-
blifhments, which create great expences, and pro-
duce flow advantages, increafe the exigencies of a
ftate beyond its ufual revenue, the refources made
ufe of for procuring the neccffary funds, are
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