JB_017_156.xml

Title: [nd [wm 1800] Ch. 2. Leading Features]

Description: nd [wm 1800]

Ch. 2. Leading Features.

'.2. Wealth. 2. Non Agenda

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2

Non Agenda may be distinguished into - I. Broad Measures - II. Narrow Measures.

I. Broad Measures, applying to all sources of wealth, without distinction.

I. Forced Frugality. Adding to National Capital (real capital) by money raised

on purpose; which must be by Taxes. Of all ineligible measures this is the least

ineligible, and most effective. The objection is - that it is a defalcation from

individual property without necessity. The addition /collation/ how great soever

the ratio of it to the defalcation /ablation/ is not compatible with justice:

the defalcation is from the property of Paul; the addition is to the property of

Peter.(a)

II. Encreasing Money: an indirect Income Tax on fixed-incomists. Labour, not

money, is the real source of wealth. All hands being employed, and employed in

the most advantageous manner, wealth could admitt of no further encrease: but

money would be encreasable ad infinitum.(b)

III. reducing Interest: viz. the lawful rate of Interest of money, borrowed by

individuals of individuals: - a direct and (to the state) unproductive

Income-Tax, on those whose Income arises out of a mass of money lent out at

Interest. In Ireland, in 1788 or thereabouts, this was proposed as a means of

increasing wealth, but rejected after a {great} /hard/ struggle.(c) +

IV. Increasing Land: viz. by Colonization: eligible, when there is a prospect of

deficiency of land with reference to Population: ineligible, in every other

point of view. The Taxes borne by the Mother Country are not diminished by it,

but increased. In the British Empire at least, it is a principle - that all

expences - in establishments civil, military, and naval, and occasional wars,

are

(a) Notes p.1

(b) Notes p.2.

(c) Notes. p.3

+ To Dumont. The defence of navy[?], which I sat over at the time contributed to

throw out the measure: as Parnel[?] their Chancr of the Exchequer, very good

[...?] to acknowledged [...?].

[Marginal note:] Interest is the price for the use of capital. As capital abounds

becomes more abundant (in [...?] of [...?]) the price of it, as any other

commodity lessens. By [...?] the price while [...?] should be permitted to }

JB_017_261.xml

Title: [31st Octr 180[...?] Polit Econ. Method]

Description: 31st Octr 180[...?]

Polit Econ. Method & Leading Features

Ch.1. Method

5

61

IV. Encreasing Land.

not diminished by it, but increased. {In the British Empire at least it is a

principle - that all expences in establishments, civil, military, naval - and

occasional wars, are to be borne by the Mother Country.-} The capital employed

in the cultivation of the Colonies by the Mother Country is so much sent out of

it, without adequate return. Bryan Edwards, even in magnifying the utility of

colonies, makes the rate of profit upon capital so employed but 7 per cent: the

common calculation gives, for the profit on capital employ'd within the Mother

Country, 15 per cent. Whatever capital is bestowed upon this employment is so

much taken from other more lucrative ones.

Note

Encrease of Money.

Income-Tax, the effect of it.

b Note The following is an Indication of the Indirect Income Tax, resulting from

Increase of Money.-

In Britain, Money is about 72,000,000; income (Ao 1801) about ,216,000,000

[72:216::1:3] Each million added to money, adds therefore three million for ever

to pecuniary Income; and thus (setting aside the 15 per cent for ever (,150,000)

for profit on the million if employed in the shape of capital) without addition

to real income - if, in every year, ,2,000,000 be added to money, (plus ,300,000

for an equivalent to the addition made as above to real wealth) in 36 Years (Ao

1837) the nominal or pecuniary amount of a mass

JB_017_264.xml

Title: [nd [wm 1800] Institute Ch.]

Description: nd [wm 1800]

Institute

Ch. 2. Leading Features.

'.3.I. Wealth. 3. Non Agenda

Broad Measures

3. Reducing Interest

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5

66

4. The expectation that the reduction of interest would produce an addition to

the aggregate mass of wealth is an illusion which has its source in another

illusion. Encrease of wealth, though not the effect, is apt to be an

accompaniment of a reduction in the rate of interest. As capital encreases,

wealth encreases: and as capital encreases, if the effectual demand for capital,

(for money in the shape of capital) does not encrease in so great a proportion,

men will not give so high a price for the use of it as they did before. The

reduction, in this case, is the result of freedom: and though it does not itself

encrease wealth, it cannot take place any further than as wealth is encreased by

other causes. The reduction, here contended against, is the product of coercion:

and whenever the illusion prevails, it may be carried into effect at any time,

in the poorest country as well as the richest, in the most declining as well as

the most prosperous, accelerating and aggravating the decline.

* The mischief that would be produced by a reduction in the rate of lawful

interest, is over and above the constant mischief produced by the fixation of

that rate: {concerning which, see the "Defence of Usury".}

* In Ireland, in 1788 or thereabouts, the reduction of the rate of interest,

from 6 to 5 per cent, was proposed in Parliament, as a means of encreasing

wealth; but, though proposed by Administration there, rejected after a hard

struggle.+ The Defence of Usury which I sent over at the time contributed to

throw out the Measure as Parnell, then Chancellor of the Exchequer very good

humouredly acknowledged to me.

 Four pages more of Non Agenda are to follow. viz: 2 on Encreasing Land: 2. on

Narrow Measures

Section 7. Rates of Interest Evils of fixation. p.320 to 335.

+ To Dumont. The Defence of Usury which I sent over at the time contributed to

throw out the Measure as Parnel, then Chancellor of the Exchequer, very good

humouredly acknowledged to me.