date

30 Oct 1801 A Political Economy
30 Oct 1801

A

Political Economy

Method

3

{Non-Agenda - I. Broad Measures. I 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.

When National Debt is paid off, it produces this effect, without the objection.

The money produced by taxes (imposed principally on income) is, in the buying in

or paying off of the Government Annuities, in which the debt consists, put into

the hands of the expelled Annuitants, who, to make it afford them an income as

before must employ it themselves in the shape of capital, or lend it to others

who will employ it in that shape.

II. Encreasing money: an indirect Income tax. Labour not money is the real

source of wealth All hands, being employ'd and employ'd in the most advantageous

manner, wealth could admitt of no further encrease: but money could be

encreasable ad infinitum.[Marginal note:] ? on Fixed-incomists. III

Reducing interest: viz: the lawful rate of interest on money borrowed by

individuals of individuals. A direct and (to the state) unproductive income-tax,

on those whose source of income arises out of a mass of money lent out at

interest. In Ireland, Ao 1788 or thereabouts this was proposed in the House of

Commons as a means of encreasing wealth, but rejected after a great struggle.

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

a 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 encreased. In the British Empire at least it is a principle that all

expences - establishments civil military, naval - and occasional wars - are to

be borne by the Mother Country. The capital employ'd 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

rati of profit upon capital so employ'd but 7 per Cent: the common calculation

gives for 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.
Similar Items
  • Title: [nd [wm 1800] Ch. 2. Leading Features]
    Description: nd [wm 1800]

    Ch. 2. Leading Features.

    '.2. Wealth. 2. Non Agenda

    4

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

    Ch. 2. Leading Features.

    '.2. Wealth. 2. Non Agenda

    5

    3

    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 employed within the Mother Country, 15 per

    cent. Whatever capital is bestowed upon this employment, is so much taken from

    other more lucrative ones.(d)

    II. Narrow or Particular Measures: applying to particular sources of wealth.

    1. Wealth being the produce of Capital, (which is no more than labour, employed

    through the intervention of money (pecuniary capital) or otherwise) and capital

    being limited (for labour at least is limited) whatever is given to any one such

    branch, is so much taken from the rest.(e)

    2. If the encouragement be by donation of Capital - (of money to be employed in

    the shape of capital) - it belongs to the first head of Non Agenda, Forced

    Frugality.

    3 An encouragement which is indefensible with reference to encrease of general

    wealth, may be eligible with reference to Subsistence (instance expence of

    Magazines for Corn):- or to National Defence:- (Instance - Measures for keeping

    up an extra-supply of Ships and Mariners.)

    (d) Notes. p.4.

    (e) Notes p.4. }