[PDF]The present state of the nation: particularly with respect to its trade, finances, &c. &c

The

Robert E. Gross
Collection

A Memorial to the Founder
of the


Business Administration Library
Los Angeles


THE


PRESENT STATE


OF THE


N A T I O


Particularly with refpedl to its


TRADE, FINANCES, &c. &c.


ADDRESSED TO


The King and both Houfes of Parliament.


LONDON:

Printed for J. Almon, oppofite to Burlington-Houfe,
in Piccadilly. Mdcclxviii.


STATE


OF THE


N A T I O


NO nation ever terminated a war a-
gainft a powerful antagonist with
more reputation than did Great-
Britain the laft Ihe waged v/ith the united
power of the houfe of Bourbon. Her ar-
mies had frequently triumphed, and her fleets
were every where vi(5torious : her people,
regardlefs of their burdens, were eager for
the continuance of the war, and her trade
feemed to flourifh the more for the taxes
which were laid upon it. The expences
©f the ftate were beyond all example ; " but
her fucceffes gained her credit, and her
., credit gained her loans equal to her dif-
B burfements.


6 STATE OF the: NATroi^.

burfements. The Spirit of the times ani--
mated hcF foldieFy to atchieve what. Hi
other circumftances, it would have been
deemed madnefs to attempt; and the fame
zeal caught the frozen breafls of the wealthy
in foreign cotmtries, as well as in her own;
banifhed their cautious fcruples, and in-
cited them to render her their money up-
on parliamentary faith, without enquiring,
into the validity of the funds affigned them
for their fecurity. There could, therefore,
be no want of money to continue the war,
and money;^ it was not to be doubted,
would procure men.

The power of France ha4 fuTik under
the irrefiftible force of Great-Britain: her
marine graced the Englifli ports, her co-
lonies had put themfelves into our hands,
and her trade w^as confined to the conti-
nent of Europe ; the misfortunes of France
had deprived her of credit ; foreigners
would not trufl her with their money, and
the riches of her own fubjeds were not
inexhauftible. Of the fpecie £he remitted
to Germany to pay her army, but little re-
turned to her again ; for (he had not mer-
chandize fufficient to purchafe it, nor cre-
dit to borrow it. She had already feized
upon the annuities due for former loans to
her creditors ; and fuftered the bills, drawn
by the commanders of her foreign domi-
nions, to go back unpaid. The fubfidies

promikd


STATE OF THE NATIQ-N. 7

pfomifed her by Spain were become pre-
carious; for the portal through which bpaiii
received her trcafures, v/as now in the hands
of the Englifh ; and the utmoft efforts of
that, once formidable, monarchy, had been
found unequal to the conquefl of the little
kingdom of Portugal. This, then, fu rely
was the time for Great-Britain to purfue
her conquefts, and, by continuing the war
two or three more campaigns, crufli the
power of the houfe of Bourbon for ever.

Happily for England Ihe had a prince on
the throne who preferred the future wel-
fare of his own people to the glory of
making conquefts upon his enemies ; and
was willing to forego the honours of new
triumphs, to fecure to them the bleilings
of peace. Happily, too, he was then ad-
vifed by minifters, who did not fufFcr
themfelves to be dazzled by the glare of
brilliant appearances, but, knowing them
to be fallacious, they wifely refoived to
profit of their fplendour before our ene-
mies fhould alfo difcover the impoiition.
It was coniidered, that the moft faccefsful
enterprize could not compenfate to the na-
tion for the wafte of its people, by carry-
ing on a war in unhealthy clim.ates, and
the perpetual burdens laid upon its manu-
factures for payment of the exceffive rate
of interefl: at which money was to be bor-
rowed. The increafe in the exports was
B 2 found


8 STATE OF THE NATION.

found to have been occalioned chiefly by
the demands of our own fleets and armies,
and, infl:ead, of bringing wealth to the
nation, were to be paid for by opprellive
taxes upon the people of England -f.
While the Britifli feamen were confuming,
on board our men of war and privateers,
foreign jfliips and foreign feamen were em-
ployed in the tranfportation of our mer-
chandize, and the carrying trade, fo great
a fource of wealth and marine, was in-
tirely engroflfed by the neutral nations.
The number of Britifh fhips annually ar-
riving in our ports was reduced 1756 fail,
containing 92,559 tons, on a medium of
the fix years of war, compared with the
fix years of peace preceding it; and the
number of foreign fhips had increafed 863
fail, containing 85,678 tons*. The fhips

remaining

f Vide page 1 1 .
* Account of Britifh and foreign fhipping arriving in
the ports of Great-Britain, from the year 1749 to
J 754 incufive.


B R

I T

I S H.

Ships.

Ton So

J 749

5^368

460,607

1750

5,558

486,823

I75I

5,5^3

502,721

3752

5'759

508,755

J753

5,986

551,230

1754

5>769

494,772

Britifh fhips - - - - -

34,003

Toi

IS 3,004,908

Medium of 6 years peace

5^667

500,818

FC

)REIGN.

STATE OF THE NATION. 9

remaining to Great-Britain were, in great
part, manned by foreign feamen, who,
when peace came, would return to their
own, or other countries, and carry with

them


1749
1750
J751
1752

1753

1754


F 0

R

E

I G N.

Ships.

Tons.

465
462

381
461

70*398

74*507
54,189

65,088

507

572

65*055
63*3^7

Foreign fhips - 2,848 Tons - - 392,624

Medium of 6 years peace - 474 65,437

Account of Britlfh and foreign (hipping arriving in
the ports of Great-Britain, from the year 1756 t»
1 76 1 inclufive.


1756

1757
1758

1759

1760
1761


B R I

T I

S H.

'Ships.

Tons.

4,012

373*479

3*499

350,126

3*997

3605628

4,170

479*737

3,568

35^*028

4,164

527*557

Britifh fhips 23,410 Tons 2,449,555

Medium of 6 years war 3,911 408,259

Medium of 6 years peace 5,667 500,818

Decreafe of Britifh fhips 1,756 92^559

FOREIGN.


lO


STATE OF THE NATION.


them the profits cf our trade, and our fkill
in navigating our fhips. The conqueft of
the Havannah had, indeed, ftopped the
remittance of fpecie from Mexico to Spain,
but it had not enabled England to feize it:
on the contrary, our merchants fuffered by
the detention of the galleons, as their cor-
refpondents in Spain were difabled from
paying them for their goods fent to Ameri-
ca. The lofs of the trade to Old Spain
was a further bar to an influx of fpecie ;
and the attempt upon Portugal, had not
only deprived us of an import of bullion
from hence, but the payment of our troops
employed in its defence v/as a freih dram
opened for the diminution of our circulat-
ing fpecie. While foreigners lent us back,


1756
1757
1758
1759
1760
1761


FOREIGN.

Ships.

Tons.

1,060

128,067

1,429

163,188

1,277

149,671

1,322

154,884

i,o8B

130,778

1,848

1 80, 1 02

Foreign fliips 8,024 Tons 906,690

Medium of 6 years war - 1,337 151,115

Medium of 6 years peace - 474 65,437

Increafc of foreign fhips - - 863 85,678

the


STATE OF THE NATION. if

the money we fpent among them, it was
true, we Ihould feel no want of money,
nor fliould we be deprived of our national
coin. Neither does the fpendthrift, who
mortgages every year, feel the want of
money, fo long as his eflate lafls, or his
creditors forbear to call upon him ; but
equally fatal would the day of account
have been to Great-Britain as to him, had
fhe been deluded into a belief of the reali-
ty of fuch falfe wealth. The high pre-
miums given for new loans J, had funk the

price

X The firft million that was borrowed,, having been
obtained at an intereft of 3 percent, it is but juft to
confidcr every increafe of the rate of interefl:,. as a
premium to the fubfcribers for the fubfequent loans:
the value, therefore, of the feveral premiums given,
for the refpeftive fums borrowed during the war, mav
be thus eftimated :

In 1756, a premium, of one-half per cent, per
annum, was given for the loan of 1,500,000!. to
continue till redeemed by parliament. It has conti-
nued 12 years, and has, therefore, coft the nation
90,000!. exclufive of compound intereft.

In 1757, the premium was one per cent, for the
lives of the fubfcribers, or their fubflitutes ; this
annuity, at 14 years purchafe, upon 3 millions, is
worth 472,500.

In 1758, the premium was one-half per cent, per
annum, to continue till redeemed by parliament. It
has now been paid for 10 years, which, upon
4,500,000!. amounts to 225,000!.

In 1759, the premium was 15 per cent, added to
the capital of the fufcribers, which, on 6,6oo,oooI.
amounted to 990,000!. "I'his premium has been carry-
in cr


12 STATE OF THE NATIOK.

price of the old flock near a third of its ori-
ginal value, fo that thepurchafers had an ob-
ligation from the ftate to repay them with
an addition of 33 per cent, to their capital.
Every new loan required new taxes to be

impofed;

ing intereft at three per cent, thefe nine years, which
amounts to 267,300!. The charge already brought
upon the nation for this premium is therefore
1,167,3001.

In 1760, the premium was one per cent, per
annum for 20 years, and an addition of three per cent.
to the capital of the fubfcribers, to carry an intereft
of four per cent, for 20 years : the nation has now
paid this annuity for feven years, in which time it
has amounted to 560,000 1. upon eight millions.
The 13 years to come are now eftimated at 11 years
purchafe, which amounts to 880, coo 1. The whole
of that annuity is, therefore, to be eftimated at
1,440,000)1. The three per cent, addition to the
fubfcribers capital is 240,000!. the intereft: on which,
at four per cent, for the feven years it has already
been paid, amounts to 67,200]. and the remaining
13 years is worth, at 11 years purchafe, 105,600!.
which makes 412,800!. a's the value of the three per
cent, capita! and intereft. This fum, added to the
value of the one per cent, for 20 years, gives
1,852,800!. the expence of the premium for the loan
of eight millions at three per cent.

In 1 76 1, the premium was an annuity of il. 2s. 6d.
per cent, for 99 years, upon 11,400.000!. This
annuity has continued for fix years, in which time it
has amounted to 769,500!. It is ftill eftimated at
2/^ years purchafe, which amounts to 3,526,875!.
and, added to what has already been paid, makes
4,296,375!. as the expence to the nation for raifing
this fum of 11,400,000!.

In 1762, the premium was one per cent, per annum
for 19 years, and one per cent, annuity for 98 years,

upon


STATE OF THE NATION. ij

impofed ; new taxes mufl add to the price
of our manufactures, and leflen their con-
fumption among foreigners. The decay
of our trade mull: neceflarily occaiion a de-
ereafe of the public revenue, and a de-

upon 12 millions. The nation has paid both
annuities for five years, which amounts to 1,200, cool.
The remaining 13 years of the one per cent, for ig
years is now eftimatcd at 1 1 years purchafe, which
makes 1,320,000!. and the one per cent, for 98 years
is eftimated at 27^ years purchafe, which amounts to
3,300,0001. The whole cxpence of this premium to
the nation is, therefore, 5,820,000!. for the loan 6f
12 millions at three per cent.

It is impoiTibie to look upon this account, withdut
being aftonifhed at the prodigious increafe of the
premium in the laft four years of the war, and the
enormous height to which it was carried in 1762. I
knov/ very well, that the feveral annuities, which I
have eftimated at their prefent value, were rated at
much lefs when the bargains were made, and that the
fubfcribcrs were not benefited to the amount at v/hich
I have computed their value. The expence to the
nation is, however, the fame, whether the fubfcri-
bcrs, or the prefent flock-holders receive it. But it
ought to have been the care of the finance minifiers toi
have made the bargain for the public, in a m.anner lei's
expenfive to the nation,' if it could have been done
with the fame benefit to the fubfcribers. For inilance,
had an intereft of fix per cent, redeemable by parlia-
ment, been given for the 12 millions in 1762, the
additional three per cent, would have amounled to
360,0001. per ann. but parliament Could have begun
redeeming it almoft as foon as peace was made j and
It would probably nave been all redeemed in the five
years fince the peace; in which cafe it would not have
amounted to one million, inliead of 5,820,000!.'
which the premium that VvM? given now ftands the
Ration in.

C ficicncv


14 3TATE GF THE NATION:

ficiency of our funds muft either be mad^
up by fre/li taxes, which would only add
to the calamity, or our national credit
mufl: be deflroyed, by fhewing the publie
creditors the inability of the nation to re-
pay them their principal money.

With money obtained upon fuch con-
ditions, and attended with fuch confequen-
ces, men were to be procured ; but as the
idle and licentious had long been gleaned
from the country, the laborious and in-
duftrious muft now fupply our levies ^
bounties had already been given for re-
cruits, which exceeded the year's wages of
the plowman and reaper, and as thefe were
exhauflied, and Hufbandry flood flill for
want of hands, the manufad:urers were
next to be tempted to quit the anvil and
the loom by higher offers. Armies, fup-
plied by hufbandmen and manufadurers,
make expenlive conquefts. The want of
their labour lelfens the w^ealth of the na-
tion, and the- high wages paid them in-
creafes her burdens ; and it is the higheit
aggravation of the evil, to employ them
in climates deiirudiive of the human fpe-
cies, and in countries from whole bourn
few travellers return.

France, bankrupt France, had no fuch
calamities impending over her ; her dif-
treffes were great, but they were imme-
diate and temporary ; her v/ant of credit

preferved


STATE OF THE NATION. 15

preferved her from a great increafe of debt,
iind the lofs of her ultra-marine dominions
lelTened her prefent expences.

Her colonies had, indeed, put them-
ielves into the hands of the Englifli ; but
ithe property of her fubjecfts had been pre-
^ferved by capitulations^ and a way opened
for making her thofe remittances, which
the war had before fnfpended, with as
much fecurity as in time of peace. The
navigation of France had been ruined ;
l3ut her lituation on the continent fccured
to her accefs to many markets for the fale
of her manufactures^ and by her league
with Spain (he had obtained the excluiive
fupply of that monarchy. Her armies in
Germany had been hitherto prevented from
feizing upon Hanover; but they continued
to encamp en the iame ground on wliich
the firft battle was fought, and, as it muft
ever happen from the policy of that go-
vernment, the laft troops flie fent into the
field were always found to be the beli, and
her frequent loffes only ferved to fill her
I'egiments with better foldiers. The con-
queft of Hanover became, therefore, every
campaign more probable, efpecially as the
army of prince Ferdinand was greatly di-
miniilied, from the difhculty of procuring
recruits. By having neither marine to fup-
poTt, nor colonies to protect, France was
at liberty to exert her whole force upon the
C 2 continent^


|g STATE OF THE NATION.

jcontinent, and there only did flie carry on
an offenfivc war. Her revenues, howeveir'
impaired *, were ftill equal to the fupply

of

* Ordinary unappropriated revenue of France.
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